Note 8—Benefit Plans

Defined Contribution Plan

The Company currently maintains a retirement plan intended to provide benefits under section 401(K) of the Internal Revenue Code, under which employees are allowed to contribute portions of their compensation to a tax-qualified retirement account. Under the 401(K) plan, the Company provides matching contributions equal to 100% of the first 6% of employees’ eligible compensation contributed to the plan. The Company recorded compensation expense of $0.7 million, $0.7 million and $0.9 million related to matching contributions, classified under general and administrative in the consolidated statements of operations, for the years ended December 31, 2017, 2016, and 2015, respectively.

Defined Benefit Plan

The Company maintained a defined benefit pension plan until October 2015. The plan covered 28 employees, of which two were retired, four had deferred vested termination, and one was a survivor. Benefits were based on the employees’ years of service and compensation. As a result of the Oxford Acquisition on June 26, 2013, the Company assumed the defined benefit pension plan, and therefore, no pension benefit plan was in effect prior to such date. Effective March 31, 2014, benefit accruals in the plan were frozen resulting in a gain on reduction of pension liability of $2.2 million for the year ended December 31, 2014. The plan was terminated during October 2015 and lump sum payments were made to the remaining participants.

The authoritative guidance for defined benefit pension plans requires an employer to recognize the overfunded or underfunded status as an asset or liability in its statement of financial position and to recognize changes in that funded status in the year in which the changes occur through other comprehensive income.

A summary of the pension benefit obligation as of the year ended December 31, 2015 is set forth in the below tables (in thousands):

	2015
Change in benefit obligation
Benefit obligation at beginning of year	$	6,800
Service cost		—
Interest cost		239
Gain on reduction of pension liability		—
Actuarial (gain) loss		(775	)
Benefits paid		(6,264	)
Benefit obligation at end of period	$	—
Change in plan assets
Fair value of plan assets at beginning of year	$	5,479
Actual return on plan assets		14
Employer contributions		771
Benefit paid		(6,264	)
Fair value of plan assets at end of period	$	—

The funding level of the qualified pension plan was in compliance with standards set by applicable law or regulation. The plan was terminated during October 2015.

	2015

Beginning amount recorded in other accumulated comprehensive income (loss)	$	(548	)
Amounts recorded in accumulated other comprehensive income (loss) consist of:
Pension obligation adjustment, net of tax		548
Total recorded in accumulated other comprehensive income	$	—

The long-term expected rate of return on funded assets shown below was established for the benefit plan by developing a forward-looking, long-term return assumption for each asset class, taking into account factors such as the expected real return for the specific asset class and inflation. A single, long-term rate of return was then calculated as the weighted average of the target asset allocation percentages and the long-term return assumption for each asset class. The discount rate was determined by constructing a portfolio of high quality, noncallable bonds with cash flows that match estimated outflows for benefit payments.

	For the Year Ended December 31,
	2015
Components of net periodic benefit cost (in thousands)
Service cost	$	—
Interest cost		239
Expected return on plan assets		(246	)
Amortization of transition obligation		—
Amortization of net (gain) loss		42
Effect of settlement		224
Net period benefit cost	$	259