EMPLOYEE RETIREMENT PLANS

Pension

The Company has an unfunded supplemental pension plan which provides defined pension benefits to certain former salaried employees upon retirement. Benefits under the plan are based on the salaries of individual plan participants in the year they were admitted into the plan. The plan has been frozen, no additional participants will be added to the plan in the future and there are no active employees in the plan.

The following table presents the changes in the plan’s projected benefit obligation, fair value of plan assets, and funded status for the years ended December 31 (in thousands):



	2017			2016
Projected benefit obligation at January 1	$	1,377		$	1,685
Interest cost	46			59
Actuarial losses (gains)	7			5
Benefits paid	(360		)	(372		)
Projected benefit obligation at December 31	1,070			1,377
Fair value of plan assets	—			—
Under funded status	(1,070		)	(1,377		)
Unamortized prior service cost	2			4
Unrecognized actuarial gain	(173		)	(200		)
Net amount recognized	$	(1,241	)	$	(1,573	)

Amounts recognized in the consolidated financial statements consisted of (in thousands):



	2017		2016
Accrued pension liability:
Current portion	$	327	$	360
Long term portion	743		1,016
Pre-tax accumulated other comprehensive income – retirement benefit liability adjustment	171		197
Net amount recognized	$	1,241	$	1,573

The plan’s accumulated benefit obligation equaled the projected benefit obligation as of December 31, 2017 and 2016. The measurement date used to determine pension benefit measures was December 31.

Components of net periodic pension cost for the years ended December 31 were as follows (in thousands):



	2017			2016			2015
Interest cost	$	46		$	59		$	66
Amortization of unrecognized prior service cost	2			6			14
Gain amortization	(19		)	(13		)	—
Net periodic pension cost	$	29		$	52		$	80
Assumptions used to calculate the benefit obligation:
Discount rate	3.55		%	3.81		%	3.94		%

Expected benefit payments from the plan for the years ended December 31 are as follows (in thousands):



	2018		2019		2020		2021		2022		2023 - 2027
Expected benefit payments	$	327	$	228	$	137	$	100	$	100	$	292

401(k)

Employees of all U.S. subsidiaries are eligible to participate in the Company’s 401(k) Plan.

Multiemployer Pension Plans

In addition, the Company contributes to a number of multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover union-represented employees. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects:


a)	Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.


b)	If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.


c)	If the Company chooses to stop participating in some of the multiemployer plans, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability.

At December 31, 2017, the Company employed 2,022 people, of which approximately 11% were represented by unions through various collective bargaining agreements (CBAs). Three of the Company's six CBAs expired and were successfully renegotiated in 2016. None of our CBA's expire until April 30, 2018.

The Company’s participation in these plans for the year ended December 31, 2017 is outlined in the table below. The “EIN/ Pension Plan Number” column provides the Employee Identification Number (EIN) and three-digit plan number, if applicable. Unless otherwise noted, the most recent Pension Protection Act (PPA) zone status available in 2017 and 2016 is for the plan’s year ended December 31, 2016 and 2015, respectively. The zone status is based on information that the Company received from the plans and is certified by the plans’ actuaries. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded.



	EIN/ Pension	PPA Zone Status		Surcharge
Pension Fund	Plan Number	2016	2015	Imposed
National Integrated Group Pension Plan	22-6190618-001	Red	Red	Yes
Sheet Metal Workers’ National Pension Plan	52-6112463-001	Yellow	Yellow	Yes
Sheet Metal Workers’ Pension Plan of Northern California	51-6115939-001	Red	Red	Yes

All of the funds have rehabilitation plans in place. Each plan with a rehabilitation plan requires minimum contributions from the Company. Given the status of these plans, it is reasonably possible that future contributions to the plans will increase although the Company cannot reasonably estimate a possible range of increased contributions as of December 31, 2017.

The Company did not contribute more than 5% of any fund’s total contributions in any of the three years in the period ended December 31, 2017. The table below sets forth the contributions made by the Company to each multiemployer plan for the years ended December 31 (in thousands):



Pension Fund	2017		2016		2015
National Integrated Group Pension Plan	$	220	$	218	$	246
Sheet Metal Workers’ National Pension Plan	42		50		56
Sheet Metal Workers’ Pension Plan of Northern California	30		28		31
	$	292	$	296	$	333

At the date the financial statements were issued, Forms 5500 were not available for the plan year ended December 31, 2017.

Total Retirement Plan Expense

Total expense for all retirement plans for the years ended December 31 was (in thousands):



2017		2016		2015
$	3,044	$	2,887	$	2,934