Employee Benefits

Defined Benefit Plans

According to the French law and the Syntec Collective Agreement, French employees are entitled to compensation paid on retirement.

The following table summarizes the changes in the projected benefit obligation:



	Year Ended December 31,
	2014			2015			2016
	(in thousands)
Projected benefit obligation present value—beginning of period	$	1,276		$	1,245		$	1,445
Service cost	492			441			524
Interest cost	33			22			37
Actuarial losses (gains)	(512		)	(128		)	1,335
Change in consolidation scope	119			—			19
Currency translation adjustment	(163		)	(135		)	(139		)
Projected benefit obligation present value—end of period	$	1,245		$	1,445		$	3,221

The Company does not hold any plan assets for any of the periods presented. The reconciliation of the changes in the present value of projected benefit obligation with the Consolidated Statements of Income for the presented periods is illustrated in the following table:



	Year Ended December 31,
	2014			2015			2016
	(in thousands)
Service cost	$	(492	)	$	(441	)	$	(524	)
Research and development expenses	(167		)	(163		)	(211		)
Sales and operations expenses	(188		)	(153		)	(144		)
General and administrative expenses	(137		)	(125		)	(169		)
Interest cost	(33		)	(22		)	(37		)
Financial income (expense)	(33		)	(22		)	(37		)
Actuarial gains (losses)	512			128			(1,335		)
Accumulated other comprehensive income	512			128			(1,335		)
Amortization of net loss (gain)	12			—			—

The main assumptions used for the purposes of the actuarial valuations are listed below:



	Year Ended December 31,
	2014	2015	2016
Discount rate (Corp AA)	1.5%	2.5%	1.9%
Expected rate of salary increase	5.0%	5.0%	5.0%
Expected rate of social charges	44.0% - 47.6%	48.0% - 51.0%	49.0% - 51.0%
Expected staff turnover	0 - 15%	0 - 15%	0 - 10.5%
Estimated retirement age	65 years old	65 years old	Progressive table
Life table	INSEE - 2007 - 2009	TGHF 2005	TH-TF 2000-2002 shifted

Defined Contribution Plans

The total expense represents contributions payable to these plans by us at specified rates.

The Group makes earnings-related payments, in accordance with local customs, to the national organizations responsible for paying pensions and similar financial benefits. The main contributions concern France, the United States, for 401k plans, and the United Kingdom.



	Year Ended December 31,
	2014			2015			2016
	(in thousands)
Defined contributions plans included in personnel expenses	$	(6,522	)	$	(8,320	)	$	(11,061	)