Employee Benefits

12 Months Ended

Dec. 31, 2015

Employee Benefits

Employee Benefits

16.  Employee Benefits

401(k) Plan

The Company has a defined contribution 401(k) plan, or the Plan, whereby eligible employees voluntarily contribute up to a defined percentage of their annual compensation. The Company matches contributions at a rate of 50% on the first 4% of employee contributions, or up to 2% of their annual compensation, and pays the administrative costs of the Plan. Employer contributions vest over four years. Total employer contributions for the years ended December 31, 2015, 2014, and 2013 were approximately $0.7 million, $0.7 million, and $0.6 million, respectively.

Defined Benefit Pension Plan

In connection with the Merck API Transaction, the Company assumed an obligation associated with a defined-benefit plan for eligible employees of AFP. This plan provides benefits to the employees from the date of retirement and is based on the employee’s length of time with the Company. The calculation is based on a statistical calculation combining a number of factors that include the employee’s age, length of service, and AFPs turnover rate.

The liability under the plan is based on a discount rate of 1.75% as of December 31, 2015 and 2014. The liability is included in accrued liabilities in the accompanying consolidated balance sheets. The plan is currently unfunded, and the benefit obligation under the plan was $1.6 million and $1.1 million at December 31, 2015 and 2014, respectively.   Expense under the plan was $0.1 million and $0.2 million for the years ended December 31, 2015 and 2014, respectively. For the year ended December 31, 2015, the Company recorded an immaterial amount of unrecognized loss in its accumulated other comprehensive loss related to the change in actuarial valuation of the Company’s defined benefit pension plan. The Company recorded an unrecognized gain of$0.2 million in its accumulated other comprehensive loss during the year ended December 31, 2014 related to the change in actuarial valuation of the Company’s defined benefit pension plan.