10. Accrued Severance Benefits

The majority of accrued severance benefits are for employees in the Company’s Korean subsidiary. Pursuant to the Employee Retirement Benefit Security Act of Korea, eligible employees and executive officers with one or more years of service are entitled to severance benefits upon the termination of their employment based on their length of service and rate of pay. As of June 30, 2018, 98% of employees of the Company were eligible for severance benefits.

Changes in accrued severance benefits are as follows (in thousands):


	Three Months Ended			Six Months Ended			Three Months Ended			Six Months Ended
	June 30, 2018						June 30, 2017
Beginning balance	$	152,780		$	149,795		$	140,878		$	130,144
Provisions		4,653			9,165			3,390			10,776
Severance payments		(3,507	)		(5,754	)		(10,558	)		(18,082	)
Translation adjustments		(7,551	)		(6,831	)		(2,816	)		8,056

		146,375			146,375			130,894			130,894
Less: Cumulative contributions to the National Pension Fund		(236	)		(236	)		(245	)		(245	)
Group severance insurance plan		(597	)		(597	)		(599	)		(599	)

Accrued severance benefits, net	$	145,542		$	145,542		$	130,050		$	130,050

The severance benefits funded through the Company’s National Pension Fund and group severance insurance plan will be used exclusively for payment of severance benefits to eligible employees. These amounts have been deducted from the accrued severance benefit balance.

The Company is liable to pay the following future benefits to its non-executive employees upon their normal retirement age (in thousands):


	Severance benefit
Remainder of 2018	$	—
2019		589
2020		1,093
2021		1,565
2022		1,329
2023		1,791
2024 – 2028		27,725

The above amounts were determined based on the non-executive employees’ current salary rates and the number of service years that will be accumulated upon their retirement dates. These amounts do not include amounts that might be paid to non-executive employees that will cease working with the Company before their normal retirement ages.

Korea’s mandatory retirement age is 60 under the Employment Promotion for the Aged Act.