NOTE L - EMPLOYEE BENEFITS

Savings Plan

The Company maintains a 401(k) Savings and Retirement plan that covers all of its employees. Under the plan, employees may defer a portion of their compensation up to the levels permitted by the Internal Revenue Service. The Company recorded matching contributions of approximately $6.2 million, $6.0 million and $4.2 million under this plan during 2014, 2013 and 2012, respectively, which were included within “Personnel costs” and “General and administrative expenses” on the Company’s consolidated statements of operations and comprehensive (loss) income.

Supplemental Executive Retirement Plan (“SERP”)

Effective January 2004, the Company implemented an unfunded noncontributory defined benefit plan (the “Plan”) for certain senior executives. The Plan, which is administered by the Company, calls for fifteen annual payments upon retirement with the payment amount based on years of service and final average salary. Benefit costs and liabilities balances are calculated based on certain assumptions including benefits earned, discount rates, interest costs, mortality rates and other factors. The Company engaged an independent actuary to calculate the related benefit obligation at December 31, 2014 and 2013 as well as net periodic benefit plan expense for the years ended December 31, 2014, 2013, and 2012. As of December 31, 2014, the average remaining service period of plan participants is 10.7 years. The Company believes the assumptions used are appropriate; however, changes in assumptions or differences in actual experience may affect our benefit obligation and future expenses. Actual results that differ from the assumptions are accumulated and amortized over future periods, affecting the recorded obligation and expense in future periods.

The Plan’s net benefit cost is as follows:

Change in Benefit Obligation

(in thousands)
Benefit obligation at December 31, 2011 (As Restated)	$	20,830
Service cost	894
Interest cost	782
Amortization of loss	40
Payments	(706		)
Actuarial loss	1,174
Benefit obligation at December 31, 2012 (As Restated)	23,014
Service cost	556
Interest cost	713
Amortization of loss	121
Payments	(1,247		)
Actuarial gain	(1,551		)
Benefit obligation at December 31, 2013 (As Restated)	21,606
Service cost	518
Interest cost	807
Amortization of loss	—
Payments	(1,271		)
Actuarial loss	1,394

Benefit obligation at December 31, 2014	$	23,054


Unfunded status	$	23,054
Unamortized net (gain) loss	—

Net amount recognized	$	23,054


Amounts Recognized in the Consolidated Balance Sheet at December 31, 2014
Current: Accrued compensation related costs	$	1,799
Long-Term Liabilities: Other liabilities	21,255

Total accrued benefit obligation	$	23,054

The Company recorded actuarial (losses) gains under the Plan of ($1.4 million), $1.6 million, and ($1.2 million) in 2014, 2013, and 2012, respectively, in other comprehensive (loss) income. Immaterial amounts were recognized within the consolidated statement of operations from accumulated other comprehensive income during 2014, 2013, and 2012. As of December 31, 2014, the Company does not expect to recognize amounts from accumulated other comprehensive income as a component of net periodic benefit cost in fiscal years 2015. There were no other components such as prior service costs or transition obligations relating to the Plan costs recorded within accumulated other comprehensive (loss) income during 2014, 2013 or 2012.

The following weighted average assumptions were used to determine the benefit obligation as of December 31 of each year and net benefit cost for each year ended December 31. The Company used a third party actuarial specialist to assist in determining, among other things, the discount rate for all three years presented.

	2014		2013		2012
Discount rate	3.34	%	4.03	%	3.25	%
Average rate of increase in compensation	3.00	%	3.00	%	3.00	%

At December 31, 2014, the estimated accumulated benefit obligation is $23.1 million. Future payments under the Plan are as follows:

(in thousands)
2015	$	1,847
2016	1,847
2017	1,847
2018	1,920
2019	1,920
Thereafter	13,673

Total	$	23,054

In connection with the SERP obligation, the Company maintains a COLI policy. The carrying value of the COLI is measured at its cash surrender value and is presented within “Other assets” on the Company’s consolidated balance sheets. See Note J - “Other Current Assets and Other Assets” for additional information.

Defined Contribution Supplemental Executive Retirement Plan

On May 1, 2013, the Company established a Defined Contribution Supplemental Executive Retirement Plan. The Company has a corresponding investment in a company owned life insurance policy. The Company has not made any explicit or implicit commitments to maintain life insurance on any specific executive that would benefit the executive or his or her beneficiaries. Each participant is given a notional account to manage his or her annual distributions and allocate the funds among various investment options (e.g. mutual funds). These accounts are tracking accounts only for the purpose of calculating the participant’s benefit. The participant does not have ownership of the underling mutual funds. When a participant initiates or changes the allocation of his or her notional account, the Company will generally make an allocation of its investments in its insurance policy, to match those chosen by the participant. While the allocation of the Company’s sub accounts is generally intended to mirror the participant’s account records (i.e. the distributions and gains or losses on those funds), the employee does not have legal ownership of any funds until payout from the Company upon retirement. The underlying investments are owned by the insurance company (and the Company in turn owns an insurance policy). To date, the Company’s contributions to this plan have not been material.