Note 11 – Other Liabilities

Other liabilities are summarized as follows:


(Dollars in thousands)	June 30, 2016		December 31, 2015
Current liabilities
Lease liability	$	5,900	$	5,900
Security deposit payable		148		180
Accrued pension		1,881		1,539
Other		64		21
Other current liabilities	$	7,993	$	7,640
Other liabilities
Straight-line rent liability	$	10,741	$	10,823
Accrued pension		5,984		6,236
Lease make-good provision		5,064		5,228
Deferred revenue - real estate		4,516		4,596
Environmental reserve		1,656		1,656
Interest rate swap		394		156
Acquired leases		225		866
Other		530		501
Other liabilities	$	29,110	$	30,062

On August 29, 2014, the Supplemental Executive Retirement Plan (“SERP”) that was effective since March 1, 2007, was ended and replaced with a new pension annuity. As a result of the termination of the SERP program, the accrued pension liability of $7.6 million was reversed and replaced with a new pension annuity liability of $7.5 million. The valuation of the liability is based on the present value of $10.2 million discounted at a rate of 4.25% over a 15- year term, resulting in a monthly payment of $57,000 payable to the Cotter Estate or Cotter Trust (as defined herein). The discount rate of 4.25% has been applied since 2014 to determine the net periodic benefit cost and plan benefit obligation and is expected to be used in future years. The discounted value of $2.7 million (which is the difference between the estimated payout of $10.2 million and the present value of $7.5 million) as of August 29, 2014 will be amortized and expensed based on the 15-year term. In addition, the accumulated actuarial loss of $3.1 million recorded, as part of other comprehensive income will also be amortized based on the 15-year term.

As a result of the above, included in our current and non-current liabilities are accrued pension costs of $7.9 million at June 30, 2016. The benefits of our pension plans are fully vested and therefore no service costs were recognized for the quarter and six months ended June 30, 2016 and 2015. Our pension plans are unfunded. During the quarter and six months ended June 30, 2016, the interest cost was $45,000 and $90,000, respectively, and actuarial loss was $32,000 and $64,000, respectively. During the quarter and six months ended June 30, 2015, the interest cost was $45,000 and $90,000, respectively, and actuarial loss was $52,000 and $104,000, respectively.