($ in thousands)

2013

2012

Change in benefit obligation:

Benefit obligation at beginning of year

$

2,031

$

1,846

Service cost

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

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