PENSION PLAN

12 Months Ended

Dec. 31, 2013

Notes to Financial Statements

Note 16 - PENSION PLAN

 One of the Company’s foreign subsidiaries maintains a defined benefit pension plan that provides benefits based on length of service and final average earnings. The following table sets forth the benefit obligation, fair value of plan assets, and the funded status of the Company’s plan; amounts recognized in the Company’s consolidated financial statements; and the assumptions used in determining the actuarial present value of the benefit obligations as of December 31:

($ in thousands)	2013			2012
Change in benefit obligation:
Benefit obligation at beginning of year	$	2,031		$	1,846
Service cost		2			2
Interest cost		94			87
Actuarial (gain) loss		577			(7	)
Effect of exchange rate changes		117			103
Effect of curtailment		—			—
Benefits paid		—			—
Benefit obligation at end of year		2,821			2,031
Change in plan assets:
Fair value of plan assets at beginning of year		1,630			1,455
Actual return of plan assets		41			36
Company contributions		43			42
Benefits paid		—			—
Effect of exchange rate changes		76			97
Fair value of plan assets at end of year		1,790			1,630
Funded status		(1,031	)		(401	)
Unrecognized actuarial loss (gain)		922			317
Unrecognized prior service (benefit) cost		—			—
Additional minimum liability		(922	)		(317	)
Unrecognized transition (asset) liability		—			—
Net amount recognized	$	(1,031	)	$	(401	)
Plan Assets
Pension plan assets were comprised of the following asset categories at December 31,
Equity securities		10.4	%		11.5	%
Debt securities		83.1	%		81.0	%
Other		6.5	%		7.5	%
Total		100	%		100	%
Components of net periodic benefit cost are as follows:
Service cost	$	2		$	2
Interest cost on projected benefit obligations		94			87
Expected return on plan assets		—			—
Amortization of prior service costs		—			—
Amortization of actuarial loss		—			—
Net periodic benefit costs	$	96		$	89
The weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, were
Discount rate		3.9	%		4.6	%
Expected return on plan assets		4	%		4	%
Rate of pension increases		2	%		1	%
Rate of compensation increase		N/A			N/A
The following discloses information about the Company’s defined benefit pension plan that had an accumulated benefit obligation in excess of plan assets as of December 31,
Projected benefit obligation	$	2,821		$	2,031
Accumulated benefit obligation	$	2,821		$	2,031
Fair value of plan assets	$	1,790		$	1,630

 As of December 31, 2013, the following benefit payments are expected to be paid as follows:

2014	$	—
2015	$	18
2016	$	19
2017	$	101
2018	$	103
2019 — 2023	$	630

 The Company made contributions to the plan of approximately $43,000 and $42,000 during years 2013 and 2012, respectively.

 The investment objectives for the plan are the preservation of capital, current income and long-term growth of capital. The Company’s pension assets are classified within Level 1 of the fair value hierarchy, as defined under ASC 820, because they are valued using market prices. The pension assets are primarily comprised of the cash surrender value of insurance contracts. All plan assets are managed in a policyholder pool in Germany by outside investment managers. The measurement date used to determine the benefit information of the plan was January 1, 2014.