Note 18 – Retirement Plans

We have an unfunded salary continuation plan covering certain directors, officers and other key members of management. We purchase life insurance policies on certain participants to provide, in part, for future liabilities. Cash surrender value of these policies, totaling $8.2 million and $8.0 million at June 30, 2018 and December 31, 2017, respectively, are included in other non-current assets in the company’s condensed consolidated balance sheets. Subject to certain vesting requirements, the plan provides for a benefit based on final average compensation, which becomes payable on the employee’s death or upon attaining age 65, if retired. The plan was closed to new participants effective February 3, 2011. We have measured the plan assets and obligations of our salary continuation plan for all periods presented.

For the six months ended June 30, 2018, payments to retirees or their beneficiaries totaled approximately $0.7 million. We presently anticipate benefit payments in 2018 to total approximately $1.4 million. The following table summarizes the components of net periodic pension cost for the three and six-month periods ended June 30, 2018 and June 25, 2017.


	Three Months Ended				Six Months Ended
	June 30, 2018		June 25, 2017		June 30, 2018		June 25, 2017
(Dollars in thousands)
Service cost	$	—	$	—	$	—	$	—
Interest cost		272		298		543		596
Net amortization		109		67		219		134

Net periodic pension cost	$	381	$	365	$	762	$	730