Employee Benefit Plans

3 Months Ended

Mar. 31, 2016

7. Employee Benefit Plans

The Company sponsors a defined benefit pension plan, with benefits frozen as of March 1, 2012, and postretirement health and life insurance benefits for union employees. The Company also sponsors a cash balance pension plan for nonunion employees, with benefits frozen as of April 1, 2007, and certain management employees receive postretirement health and life insurance under grandfathered provisions of a terminated plan.

The following provides the components of benefit costs (income) for the three months ended March 31, 2016 and 2015 (dollars in thousands):

Pension


	Three Months Ended
	March 31,
	2016		2015
Interest cost	$	1,996	$	2,073
Expected asset return		(2,678)		(3,394)
Amortization of loss		129		22
Net periodic benefit income		(553)		(1,299)
Settlement loss		—		850
Total benefit income	$	(553)	$	(449)

Other Postretirement Benefits


	Three Months Ended
	March 31,
	2016		2015
Service cost	$	259	$	259
Interest cost		655		589
Amortization of loss		119		149
Total benefit cost	$	1,033	$	997

During the three months ended March 31, 2015, the Company’s pension plan for union employees paid lump-sum benefits to plan participants in full settlement of obligations due amounting to $6.0 million. During the three months ended March 31, 2015, the Company’s pension plan for management employees paid lump sum benefits in full settlement amounting to $0.6 million. This resulted in the recognition of a loss on settlement for both pension plans amounting to $0.9 million for the three months ended March 31, 2015. Because of the settlements, the Company measured its union and management pension plan obligations and plan assets as of March 31, 2015. The Company used a discount rate of 3.54% as of March 31, 2015 to measure the union pension plan obligations. The Company used a discount rate of 3.57% to measure the management plan obligations as of March 31, 2015. The new measurements resulted in a retirement plan loss which was charged to other comprehensive loss of $2.2 million for the three months ended March 31, 2015. For the three months ended March 31, 2016, lump sum benefits paid did not exceed the threshold requiring settlement accounting.

The Company previously disclosed in its consolidated financial statements for the year ended December 31, 2015 that it expected to contribute $9.3 million to its pension plan in 2016. As of March 31, 2016, the Company has contributed $1.9 million. The Company presently expects to contribute the full amount during the remainder of 2016.