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Employee Benefit Plans
 9 Months Ended
Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]  
Employee Benefit Plans
Employee Benefit Plans
The Company sponsored a qualified defined-benefit pension plan and a post-retirement benefit plan (collectively, “the Pension Plans”). The Pension Plans were frozen as of September 30, 1986, and since then there have been no new entrants to the Pension Plans.
The following table provides the components of the net periodic benefit cost of the qualified defined-benefit pension plan (in millions):

Three Months Ended

Nine Months Ended

September 30,

September 30,

2016

2015

2016
 
2015
PENSION BENEFITS COSTS







Interest cost
$
0.3


$
0.5


$
0.9


$
1.3

Expected return on plan assets
(0.4
)

(0.5
)

(1.4
)

(1.5
)
Amortization of net actuarial loss
0.1


0.2


0.5


0.5

Settlement charge
1.2

 
0.9

 
1.2

 
0.9

Total pension expense
$
1.2


$
1.1


$
1.2


$
1.2


The Company incurred less than $0.1 million in net periodic benefit costs related to the post-retirement benefit plan for the three and nine months ended September 30, 2016 and 2015.
The Company made contributions of $1.9 million to the Pension Plans during the three and nine months ended September 30, 2016. The Company made no contributions to the Pension Plans during the three and nine months ended September 30, 2015. During the remainder of 2016, the Company expects to contribute a total of $0.2 million to the post-retirement benefit plan and does not expect to make any further contributions to the defined-benefit pension plan.
The Company offers certain plan participants the option to receive a lump sum payment in lieu of future annuity pension benefits. For the nine months ended September 30, 2016 the Company had settled accumulated benefits of $2.7 million (pre-tax) for participants who accepted lump sum payments. The Company re-measured its pension plan obligation as of September 30, 2016 and recorded a settlement charge of $1.2 million, as the lump sum payments exceeded thresholds calculated under GAAP. In addition, the Company recognized a $0.9 million deferred actuarial loss in accumulated other comprehensive loss, increasing the pension liability by the same amount. The Company expects to recognize additional settlement charges between $0.1 million and $0.2 million in the fourth quarter of 2016 related to lump sum payments and other pension settlement activities.
On September 14, 2016, the Board of Directors approved a motion to terminate the Company’s qualified defined-benefit pension plan. The Company expects to complete the settlement in approximately 12 to 18 months. Pension liabilities will be settled through either lump sum payments or purchasing annuities from an insurance company.

At settlement, the Company expects to recognize a non-cash charge related to unrecognized actuarial losses in accumulated other comprehensive income estimated between $16.0 million and $19.0 million. The Company expects to make additional cash contributions between $4.0 million and $6.0 million to settle its pension obligations in 2017. Settling the plan will eliminate cash contributions, lower future expenses and eliminate the risk of rising Pension Benefit Guaranty Corp premiums.