PENSION PLAN

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

PENSION PLAN

One of the Company’s dormant 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)	2016			2015			2014
Change in benefit obligation:
Benefit obligation at beginning of year	$	3,068		$	3,488		$	2,821
Service cost		—			—			—
Interest cost		75			70			106
Actuarial (gain) loss		542			(123	)		1,003
Effect of exchange rate changes		(114	)		(356	)		(442	)
Effect of curtailment		—			—			—
Benefits paid		(31	)		(11	)		—
Benefit obligation at end of year		3,540			3,068			3,488
Change in plan assets:
Fair value of plan assets at beginning of year		1,557			1,654			1,790
Actual return of plan assets		142			40			47
Company contributions		28			34			43
Benefits paid		(31	)		—			—
Effect of exchange rate changes		(51	)		(171	)		(226	)
Fair value of plan assets at end of year		1,645			1,557			1,654
Funded status		(1,895	)		(1,511	)		(1,834	)
Unrecognized actuarial loss (gain)		1,831			1,413			1,911
Unrecognized prior service (benefit) cost		—			—			—
Additional minimum liability		(1,831	)		(1,413	)		(1,911	)
Unrecognized transition (asset) liability		—			—			—
Net amount recognized	$	(1,895	)	$	(1,511	)	$	(1,834	)
Plan Assets
Pension plan assets were comprised of the following asset categories at December 31,
Equity securities		5.7	%		5.0	%		6.4	%
Debt securities		87.2	%		89.3	%		87.4	%
Other		7.1	%		5.7	%		6.2	%
Total		100	%		100	%		100	%
Components of net periodic benefit cost are as follows:
Service cost	$	—		$	—		$	—
Interest cost on projected benefit obligations		75			70			106
Expected return on plan assets		—			—			—
Amortization of prior service costs		—			—			—
Amortization of actuarial loss		—			—			—
Net periodic benefit costs	$	75		$	70		$	106
The weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, were
Discount rate		1.7	%		2.4	%		2.2	%
Expected return on plan assets		4.0	%		4.0	%		4.0	%
Rate of pension increases		2.0	%		2.0	%		2.0	%
Rate of compensation increase		N/A			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	$	3,540		$	3,068		$	3,488
Accumulated benefit obligation	$	3,540		$	3,068		$	3,488
Fair value of plan assets	$	1,645		$	1,557		$	1,654

As of December 31, 2016, the following benefit payments are expected to be paid as follows (in thousands):

2017	$	76
2018	$	78
2019	$	80
2020	$	81
2021	$	97
2022 — 2026	$	624

The Company made contributions to the plan of approximately $28,000 during year 2016, $34,000 during year 2015 and approximately $43,000 during 2014.

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, 2017.