Note 11 – Other Liabilities

Other liabilities are summarized as follows:


(Dollars in thousands)	June 30, 2018		December 31, 2017
Current liabilities
Lease liability	$	5,900	$	5,900
Liability for demolition costs		2,654		2,781
Accrued pension		684		2,907
Security deposit payable		75		91
Other		29		--
Other current liabilities	$	9,342	$	11,679
Other liabilities
Straight-line rent liability	$	15,570	$	13,444
Lease make-good provision		5,612		5,648
Accrued pension		4,921		5,228
Environmental reserve		1,656		1,656
Deferred revenue - real estate		9		18
Acquired leases		137		186
Other		441		469
Other liabilities	$	28,346	$	26,649

On August 29, 2014, the Supplemental Executive Retirement Plan (“SERP”) that has been effective since March 1, 2007, was ended and replaced in accordance with the terms of a 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 this 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. 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.

In February 2018 we made a payment of $2.4 million relating to the annuity representing payments for the 42 months outstanding at the time. Monthly ongoing payments of $57,000 are now being made.

As a result of the above, included in our current and non-current liabilities are accrued pension costs of $5.6 million at June 30, 2018. The benefits of our pension plan are fully vested and therefore no service costs were recognized for the quarter and six months ended June 30, 2018 and 2017. Our pension plan is unfunded.

During the quarter and six months ended June 30, 2018, the interest cost was $45,000 and $90,000 respectively, and actuarial loss was $52,000 and $104,000 respectively. During the quarter and six months ended June 30, 2017, the interest cost was $45,000 and $90,000 respectively, and actuarial loss was $51,000 and $103,000.