EMPLOYEE BENEFIT PLANS

Defined contribution plans

We sponsor defined contribution retirement plans in which the majority of employees are eligible to participate. Our contributions to the defined contribution plans were $1.9 million, $1.1 million, and $0.9 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Pension plans

We sponsor a defined benefit pension plan and a supplemental defined benefit pension plan (collectively, the “Pension Plans”) for certain employees of the SemCAMS segment hired before June 30, 2001. The following table shows the projected benefit obligations and plan assets of the Pension Plans (in thousands):



	December 31, 2014			December 31, 2013
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	24,036		$	28,357
Service cost	477			577
Interest cost	1,080			1,047
Actuarial (gains) losses	6,228			(3,022		)
Benefits paid	(521		)	(968		)
Currency translation adjustment	(2,034		)	(1,955		)
Projected benefit obligation at end of year	29,266			24,036
Change in fair value of plan assets:
Fair value of plan assets at beginning of year	25,582			22,727
Employer contributions	601			1,144
Actual return on plan assets	2,915			4,397
Benefits paid	(521		)	(968		)
Currency translation adjustment	(2,209		)	(1,718		)
Fair value of plan assets at end of year	26,368			25,582
Funded status:	$	(2,898	)	$	1,546
Accumulated benefit obligation at end of year	$	26,544		$	22,687

The following table sets forth the assumptions used to determine the projected benefit obligation of the Pension Plans for the periods indicated:



	Year Ended December 31, 2014		Year Ended December 31, 2013
Discount rate	3.80	%	4.70	%
Compensation increase rate	4.50	%	3.50	%

We recorded other noncurrent liabilities of $2.9 million at December 31, 2014, and other noncurrent assets of $1.5 million at December 31, 2013, to reflect the funded status of the Pension Plans. We recorded changes in the funded status of the Pension Plans to other comprehensive income (loss), net of income taxes. These amounts were a loss of $3.7 million for the year ended December 31, 2014, a gain of $4.8 million for the year ended December 31, 2013 and a loss of $0.4 million for the year ended December 31, 2012.

The following table summarizes the components of the net periodic benefit cost related to the Pension Plans (in thousands):



	Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2012
Service cost	$	477		$	577		$	596
Interest cost	1,080			1,047			1,134
Expected return on plan assets	(1,469		)	(1,298		)	(1,263		)
Settlement loss	—			—			(55		)
Other	(7		)	186			118
Net periodic benefit cost	$	81		$	512		$	530

The following table sets forth the assumptions used to determine net periodic benefit cost related to the Pension Plans for the periods indicated:



	Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012
Discount rate	4.70	%	3.90	%	4.25	%
Expected long-term rate of return on plan assets	6.00	%	6.00	%	6.00	%
Compensation increase rate	3.50	%	3.50	%	3.50	%

The expected return on plan assets is determined annually based upon a review of the historical returns experienced for each of the various classes of assets held within the plan, combined with the general economic industry outlook.

We estimate that benefit payments from the Pension Plans will be as follows for the years 2015 – 2024 (in thousands):



Year	Estimated Benefit Payments
2015	$	4,800
2016	$	2,809
2017	$	2,046
2018	$	987
2019	$	1,114
2020 - 2024	$	12,178

We estimate that we will make contributions of $0.6 million to the Pension Plans during the year ended December 31, 2015.

Substantially all of the plan’s assets are invested in pooled funds that hold highly-liquid securities. The value of each share of a pooled fund is calculated based on the quoted market prices of the assets held by the fund. The following table shows the value of each category of plan assets at December 31, 2014 and 2013 and the target investment allocation under our investment policy at December 31, 2014:



	Asset Value at December 31, 2014 (in thousands)		Asset Value at December 31, 2013 (in thousands)		Actual Allocation at December 31, 2014		Normal Allocation Per Investment Policy		Minimum Allocation Per Investment Policy		Maximum Allocation Per Investment Policy
Cash and cash equivalents	$	—	$	171	0.0	%	—	%	0.0	%	10.0	%
Pooled funds—fixed income	8,938		8,381		33.9	%	40.0	%	32.5	%	47.5	%
Pooled funds—Canadian equities	8,828		8,324		33.5	%	30.0	%	22.5	%	37.5	%
Pooled funds—non-Canadian equities	8,602		8,706		32.6	%	30.0	%	22.5	%	37.5	%
Total	$	26,368	$	25,582

Our investment policy for plan assets permits investments in a wide variety of assets, including certain types of derivatives. Our policy prohibits investments of plan assets in certain types of assets, including commodities, mineral rights and collectibles. Our investment policy requires us to maintain an investment allocation within the ranges shown in the table above, and also contains more specific requirements that are designed to achieve an appropriate level of diversification.

The following information discloses the fair values of our Pension Plan assets, by asset category, for the periods indicated (in thousands):



	December 31, 2014						December 31, 2013
	Quoted Price in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Quoted Price in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	—	$	—	$	—	$	171	$	—	$	—
Fixed income mutual funds (a)	—		8,938		—		—		8,381		—
Equity mutual funds (a)	—		17,430		—		—		17,030		—
Total	$	—	$	26,368	$	—	$	171	$	25,411	$	—

(a) Mutual funds are valued daily in actively traded markets by an independent custodian for the investment manager. For purposes of calculating the value, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on a basis of last reported sales prices, or if no sales are reported, based on quotes obtained from a quotation reporting system, established market makers, or pricing services. Investments initially valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from pricing services.

Retiree medical plan

We sponsor an unfunded, post-employment health benefit plan (the “Health Plan”) for certain employees of the SemCAMS segment. The projected benefit obligation related to the Health Plan was $1.7 million at December 31, 2014 and $1.6 million at December 31, 2013, and is reported within other noncurrent liabilities on the consolidated balance sheets.