We have a defined benefit pension plan (pension plan) that covers certain U.S. citizen employees and other employees who are permanent residents of the United States. Benefits are based on years of service and employee compensation. In December 2009, the Board of Directors amended the pension plan to discontinue the accrual of benefits once the plan was frozen on December 31, 2010 for the approximately 60 active employees who participated in the plan. As of December 31, 2018, approximately 20 active employees are covered by this plan. We did not contribute to the defined benefit pension plan during the twelve-month period ended December 31, 2018. We did not contribute to the defined benefit plan during the nine-month period ended December 31, 2017. We contributed $3.0 million to the defined benefit pension plan during the twelve-month period ended March 31, 2017. We do not yet know whether a contribution will be necessary during calendar 2019.

We also offer a non-contributory, defined benefit supplemental executive retirement plan (supplemental plan) that provides pension benefits to certain employees in excess of those allowed under our tax-qualified pension plan. A Rabbi Trust was established to provide us with a vehicle to invest in a variety of marketable securities that were recorded at fair value with unrealized gains or losses included in other comprehensive income. Effective March 4, 2010, the supplemental plan was closed to new participation. We contributed $0.9 million during the twelve month period ended December 31, 2018. We contributed $0.1 million during the nine-month period ended December 31, 2017 and $0.2 million to the supplemental plan during the twelve-month period ended March 31, 2017.

On October 16, 2017, we announced that Jeffrey M. Platt had retired from his position as our President and Chief Executive Officer and resigned as a member of our board of directors (the “Board”), effective October 15, 2017. As a result of Mr. Platt’s retirement, he received in April 2018 an $8.9 million lump sum distribution in settlement of his supplemental executive retirement plan obligation which was funded by substantially all of the investments held by the Rabbi Trust. A settlement loss of $0.3 million was recorded at the time of distribution.

In December 2017, in an attempt to reduce costs, the Board of Directors amended the supplemental plan to discontinue the accrual of benefits and any other contributions effective January 1, 2018. On this date, previously accrued pension benefits under the supplemental plan were frozen for the remaining active participants. This change does not affect the benefits earned by any participants prior to January 1, 2018. Any future accrual of benefits under the supplemental plan or other contributions to the supplemental plan will be determined at our sole discretion.

Investments held in a Rabbi Trust in the supplemental plan were included in current assets at fair value. The following table summarizes the carrying value of the trust assets and obligations under the supplemental plan:

The following table summarizes the unrealized (loss) gains in carrying value of the trust assets:

The unrealized gains or losses in the carrying value of the trust assets, net of income tax expense, are included in accumulated other comprehensive income. The trust assets were liquidated to fund the payment to the former President and Chief Executive Officer.

Qualified retired employees were covered by a program which provided limited health care and life insurance benefits. This plan terminated on January 1, 2019 resulting in a gain of $4.0 million. Costs of the program were based on actuarially determined amounts and were accrued over the period from the date of hire to the full eligibility date of employees who were expected to qualify for these benefits. This plan was funded through payments as benefits were required.

We eliminated the life insurance portion of our postretirement benefit effective January 1, 2018, resulting in a $1.9 million reduction in benefit obligations.

Effective November 20, 2015, we eliminated our post-65 medical coverage for all current and future retirees effective January 1, 2017. The medical coverage remains unchanged for participants under age 65. This plan amendment resulted in an additional net periodic postretirement benefit of $2.0 million for the twelve month period ended March 31, 2017.

The obligations of our pension plan are supported by assets held in a trust for the payment of benefits. We are obligated to adequately fund the trust. For the pension plan assets, we have the following primary investment objectives: (1) closely match the cash flows from the plan’s investments from interest payments and maturities with the payment obligations from the plan’s liabilities; (2) closely match the duration of plan assets with the duration of plan liabilities and (3) enhance the plan’s investment returns without taking on undue risk by industries, maturities or geographies of the underlying investment holdings.

If the plan assets are less than the plan liabilities, the pension plan assets will be invested exclusively in fixed income debt securities. Any investments in corporate bonds shall be at least investment grade, while mortgage and asset-backed securities must be rated “A” or better. If an investment is placed on credit watch, or is downgraded to a level below the investment grade, the holding will be liquidated, even at a loss, in a reasonable time period. The plan will only hold investments in equity securities if the plan assets exceed the estimated plan liabilities.

The cash flow requirements of the pension plan will be analyzed at least annually. Portfolio repositioning will be required when material changes to the plan liabilities are identified and when opportunities arise to better match cash flows with the known liabilities. Additionally, trades will occur when opportunities arise to improve the yield-to-maturity or credit quality of the portfolio.

Our policy for the pension plan is to contribute no less than the minimum required contribution by law and no more than the maximum deductible amount. The plan does not invest in Tidewater stock.

With the lump sum distribution paid in April 2018 combined with the December 2017 amendment to discontinue the accrual of benefits and any other contributions, we do not expect to hold any significant assets in trust for the payment of benefits to the participants in the supplemental plan. As of December 31, 2018, $18,000 of cash and cash equivalents were held in the Rabbi Trust by the supplemental plan.

The following table provides the target and actual asset allocations for the pension plan and the supplemental plan:

The pension plan assets are periodically evaluated for concentration risks. As of December 31, 2018, we did not have any individual asset investments that comprised 10% or more of each plan’s overall assets.

The pension plan assets are primarily invested in debt securities. In the event that plan assets exceed the estimated plan liabilities for the pension plan, up to two times the difference between the plan assets and plan liabilities may be invested in equity securities, and so long as equities do not exceed 15% of the market value of the assets. Investments in foreign securities are restricted to American Depository Receipts (ADR) and stocks listed on the U.S. stock exchanges and may not exceed 10% of the equity portfolio.

Tidewater’s plan assets are accounted for at fair value and are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement, with the exception of investments for which fair value is measured using the net asset value per share expedient.

The fair value hierarchy for the pension plans assets measured at fair value as of December 31, 2018 (Successor), are as follows:

(In thousands)	Fair Value		Quoted prices in active markets (Level 1)		Significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Measured at Net Asset Value
Pension plan measured at fair value:
Equity securities:	$	900		900		—		—		—
Debt securities:
Government securities		4,044		4,044		—		—		—
Corporate debt securities		47,667		684		46,983		—		—
Cash and cash equivalents		1,214		717		497		—		—
Other		2,384		—		2,384		—		—
Total	$	56,209		6,345		49,864		—		—
Accrued income		581		581		—		—		—
Total fair value of plan assets	$	56,790		6,926		49,864		—		—

The following table provides the fair value hierarchy for the pension plans and supplemental plan assets measured at fair value as of December 31, 2017 (Successor):

(In thousands)	Fair Value			Quoted prices in active markets (Level 1)			Significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Measured at Net Asset Value
Pension plan measured at fair value:
Debt securities:
Government securities	$	4,238			4,238			—		—		—
Collateralized mortgage securities		1,032			—			1,032		—		—
Corporate debt securities		49,420			—			49,420		—		—
Cash and cash equivalents		834			219			615		—		—
Other		1,404			172			1,232		—		—
Total	$	56,928			4,629			52,299		—		—
Accrued income		608			608			—		—		—
Total fair value of plan assets	$	57,536			5,237			52,299		—		—
Supplemental plan measured at fair value:
Equity securities:
Common stock	$	3,599			3,599			—		—		—
Foreign stock		183			183			—		—		—
American depository receipts		1,429			1,429			—		—		—
Preferred American depository receipts		12			12			—		—		—
Real estate investment trusts		72			72			—		—		—
Debt securities:
Government debt securities		1,692			851			841		—		—
Open ended mutual funds		1,676			—			—		—		1,676
Cash and cash equivalents		246			27			170		—		49
Total	$	8,909			6,173			1,011		—		1,725
Other pending transactions		(1	)		(1	)		—		—		—
Total fair value of plan assets	$	8,908			6,172			1,011		—		1,725

Changes in plan assets and obligations and the funded status of the U.S. defined benefit pension plan, Norway’s defined benefit pension plan, and the supplemental plan (referred to collectively as “Pension Benefits”) and the postretirement health care and life insurance plan (referred to as “Other Benefits”), are as follows:

				Pension Benefits
	Successor						Predecessor
				Period from			Period from
	Twelve Months			August 1, 2017			April 1, 2017			Twelve Months
	Ended			through			through			Ended
(In thousands)	December 31, 2018			December 31, 2017			July 31, 2017			March 31, 2017
Change in benefit obligation:
Benefit obligation at beginning of the period	$	103,443			101,490			97,941			95,830
Increase in benefit obligation due to business combination		5,474			—			—			—
Service cost		294			546			393			1,182
Interest cost		3,605			1,599			1,313			3,814
Plan curtailment		—			(432	)		—			—
Benefits paid		(5,467	)		(2,059	)		(1,610	)		(4,895	)
Actuarial (gain) loss (A)		(8,105	)		2,322			3,322			2,082
Settlement		(8,885	)		—			—			—
Foreign currency exchange rate changes		(112	)		(23	)		131			(72	)
Benefit obligation at end of the period		90,247			103,443			101,490			97,941
Change in plan assets:
Fair value of plan assets at beginning of the period	$	57,536			58,148			57,146			57,174
Increase in plan assets due to business combination		5,463			—			—			—
Actual return		(2,128	)		1,182			2,138			577
Expected return		112			32			16			51
Actuarial loss		(275	)		(217	)		(109	)		(148	)
Administrative expenses		(36	)		(15	)		(7	)		(27	)
Plan curtailment		—			(100	)		—			—
Employer contributions		10,546			625			435			4,465
Benefits paid		(5,467	)		(2,059	)		(1,610	)		(4,895	)
Settlement		(8,885	)		—			—			—
Foreign currency exchange rate changes		(76	)		(60	)		139			(51	)
Fair value of plan assets at end of the period		56,790			57,536			58,148			57,146
Payroll tax unrecognized in benefit obligation at end of the period		84			76			91			83
Unfunded status at end of the period	$	(33,541	)		(45,983	)		(43,433	)		(40,878	)
Net amount recognized in the balance sheet consists of:
Current liabilities	$	(1,380	)		(10,731	)		(1,791	)		(1,791	)
Noncurrent liabilities		(32,161	)		(35,252	)		(41,642	)		(39,087	)
Net amount recognized	$	(33,541	)		(45,983	)		(43,433	)		(40,878	)

(A) The actuarial gain in the twelve months ended December 31, 2018 was primarily attributable to an increase in the discount rate.

				Other Benefits
	Successor						Predecessor
				Period from			Period from
	Twelve Months			August 1, 2017			April 1, 2017			Twelve Months
	Ended			through			through			Ended
(In thousands)	December 31, 2018			December 31, 2017			July 31, 2017			March 31, 2017
Change in benefit obligation:
Benefit obligation at beginning of the period	$	2,924			4,817			4,811			5,573
Service cost		61			29			23			81
Interest cost		117			75			64			201
Participant contributions		218			65			58			411
Plan amendment		(2,954	)		(1,861	)		—			—
Benefits paid		(595	)		(526	)		(346	)		(1,170	)
Actuarial (gain) loss		229			325			207			(285	)
Benefit obligation at end of the period		—			2,924			4,817			4,811
Change in plan assets:
Fair value of plan assets at beginning of the period	$	—			—			—			—
Employer contributions		377			461			288			759
Participant contributions		218			65			58			411
Benefits paid		(595	)		(526	)		(346	)		(1,170	)
Fair value of plan assets at end of the period		—			—			—			—
Unfunded status at end of the period	$	—			(2,924	)		(4,817	)		(4,811	)
Net amount recognized in the balance sheet consists of:
Current liabilities	$	—			(282	)		(418	)		(418	)
Noncurrent liabilities		—			(2,642	)		(4,399	)		(4,393	)
Net amount recognized	$	—			(2,924	)		(4,817	)		(4,811	)

The following table provides information for pension plans with an accumulated benefit obligation in excess of plan assets (includes both the pension plans and supplemental plan):

Net periodic benefit cost for the pension plans and the supplemental plan include the following components:

	Successor						Predecessor
				Period from			Period from
	Twelve Months			August 1, 2017			April 1, 2017			Twelve Months
	Ended			through			through			Ended
(In thousands)	December 31, 2018			December 31, 2017			July 31, 2017			March 31, 2017
Service cost	$	294			546			393			1,182
Interest cost		3,605			1,599			1,313			3,814
Expected return on plan assets		(2,042	)		(882	)		(691	)		(2,246	)
Administrational expenses		36			19			3			28
Payroll tax of net pension costs		42			29			—			56
Amortization of net actuarial losses		30			131			—			32
Recognized actuarial loss		—			—			748			1,785
Curtailment (gain) loss		335			(99	)		—			—
Net periodic pension cost	$	2,300			1,343			1,766			4,651

Net periodic benefit cost for the postretirement health care and life insurance plan include the following components:

The components of the net periodic pension cost and the net periodic postretirement benefit, except for the service costs are included in the caption “Interest income and other, net.”

Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss include the following components:

				Pension Benefits
	Successor					Predecessor
				Period from		Period from
	Twelve Months			August 1, 2017		April 1, 2017			Twelve Months
	Ended			through		through			Ended
(In thousands)	December 31, 2018			December 31, 2017		July 31, 2017			March 31, 2017
Net (gain) loss	$	(3,441	)		1,939		1,877			3,821
Fresh-start accounting fair value adjustment		—			—		(22,333	)		—
Amortization of net (loss) gain		—			—		(748	)		(1,785	)
Settlement recognized		(335	)		—		—			—
Total recognized in other comprehensive (income) loss, before tax	$	(3,776	)		1,939		(21,204	)		2,036
Net of tax		(3,776	)		1,939		(21,204	)		1,323

				Other Benefits
	Successor						Predecessor
				Period from			Period from
	Twelve Months			August 1, 2017			April 1, 2017		Twelve Months
	Ended			through			through		Ended
(In thousands)	December 31, 2018			December 31, 2017			July 31, 2017		March 31, 2017
Net (gain) loss	$	229			325			207		(285	)
Prior service (cost) credit		—			(1,861	)		—		—
Amortization of prior service (cost) credit		1,861			—			927		4,346
Fresh-start accounting fair value adjustment		—			—			19,055		—
Amortization of net (loss) gain		(554	)		—			335		1,138
Total recognized in other comprehensive (income) loss, before tax	$	1,536			(1,536	)		20,524		5,199
Net of tax		1,536			(1,536	)		20,524		3,379

Amounts recognized as a component of accumulated other comprehensive income (loss) are as follows:

We do not expect to recognize any unrecognized actuarial (loss) gain or unrecognized prior service credit (cost) as a component of net periodic benefit costs during the next fiscal year.

To develop the expected long-term rate of return on assets assumption, we considered the current level of expected returns on various asset classes. The expected return for each asset class was then weighted based on the target asset allocation to develop the expected return on plan assets assumption for the portfolio.

Based upon the assumptions used to measure our qualified pension benefit obligations at December 31, 2018, including pension benefits attributable to estimated future employee service, we expect that benefits to be paid over the next ten years will be as follows:

Prior to February 2013, we maintained two defined contribution plans described below. The plans were merged in February 2013 to provide administrative efficiencies, potential savings on service provider fees and to simplify the participant experience. Following the business combination, the provisions of the two plans remained substantially similar with the exception of cost neutral changes that were approved to simplify the administration of the combined plan.

All eligible U.S. fleet personnel, along with all new eligible employees hired after December 31, 1995 are eligible to receive retirement contributions. This benefit is noncontributory by the employee, but we contribute, in cash, 3% of an eligible employee’s compensation to a trust on behalf of the employees. The active employees who participated in the frozen defined benefit pension plan may receive an additional 1% to 8% depending on age and years of service. Our contributions vest over five years. We ceased contributing to the employee retirement plan effective January 1, 2018. Any future employer contributions to this plan will be determined at our discretion.

Upon meeting various citizenship, age and service requirements, employees are eligible to participate in a defined contribution savings plan and can contribute from 2% to 75% of their base salary to an employee benefit trust. Effective January 1, 2016, we match, in cash, 50% of the first 8% of eligible compensation deferred by the employee. Prior to January 1, 2016, we matched, with company stock, 50% of the first 8% of eligible compensation deferred by the employee. Company contributions vest over five years. Effective January 1, 2018, we no longer provides a matching of 50% of the first 8% of eligible compensation in an attempt to reduce costs. Any future employer contributions to this plan will be determined at our discretion.

The plan held the following number of shares of Tidewater common stock, series A warrants and series B warrants:

The amounts charged to expense related to the above defined contribution plans are as follows:

A non-qualified supplemental savings plan is provided to executive officers who have the opportunity to defer up to 50% of their eligible compensation that cannot be deferred under the existing 401(k) plan due to IRS limitations. A company match may be provided on these contributions equal to 50% of the first 8% of eligible compensation deferred by the employee to the extent the employee is not able to receive the full amount of company match to the 401(k) plan due to IRS limitations. In January 2018, our match was discontinued. The plan also allows participants to defer up to 100% of their bonuses. In addition, an amount equal to any refunds that must be made due to the failure of the 401(k) nondiscrimination test may be deferred into this plan.

Effective March 4, 2010, the non-qualified supplemental savings plan was modified to allow us to contribute restoration benefits to eligible employees. Employees who did not accrue a benefit in the supplemental executive retirement plan and who are eligible for a contribution in the defined contribution retirement plan automatically became eligible for the restoration benefit when the employee’s eligible retirement compensation exceeded the section 401(a)(17) limit. The restoration benefit was noncontributory by the employee, but we contributed, in cash, 3% of an eligible employee’s compensation above the 401(a)(17) limit to a trust on behalf of the employees. The active employees who participated in the frozen defined benefit pension plan were eligible for an additional 1% to 8% depending on age and years of service. We ceased contributing restoration compensation to eligible employees effective January 1, 2018. Any future contributions to this plan will be determined at our discretion.

We also provided retirement benefits to our eligible non-U.S. citizen employees working outside their respective country of origin pursuant to a self-directed multinational defined contribution retirement plan (multinational retirement plan). Non-U.S. citizen shore-based and certain offshore employees working outside their respective country of origin were eligible to participate in the multinational retirement plan provided the employees were not enrolled in any home country pension or retirement program. Participants of the multinational retirement plan could contribute 1% to 50% of their base salary after the first month following hire or transfer to eligible positions. We matched, in cash, 50% of the first 6% of eligible compensation deferred by the employee which vests over five years. We ceased contributing to this retirement plan effective January 1, 2018. Any future contributions to this plan will be determined at our discretion.

The amounts charged to expense related to the multinational retirement plan contributions are as follows:

We also have a defined benefit pension plan that covers certain Norway citizen employees and other employees who are permanent residents of Norway. Benefits are based on years of service and employee compensation. As of December 31, 2018, approximately 175 active employees, of which 106 were added through the GulfMark business combination. We contributed a respective 1.9 million NOK, 2.7 million NOK and 3.6 million NOK (approximately $0.2 million, $0.3 million and $0.4 million respectively) to the defined benefit pension plan during the twelve month period ended December 31, 2018 and the nine month period ended December 31, 2017 and the twelve month period ended March 31, 2017, respectively. We expect to contribute approximately 4.3 million NOK, or $0.5 million during calendar 2019. The preceding fair value hierarchy tables and pension plan assets and obligations tables include the Norway pension plan.

We also provide certain benefits programs which are maintained in several other countries that provide retirement income for covered employees.

Certain of our current and former U.K. subsidiaries are participating in a multi-employer retirement fund known as the Merchant Navy Officers Pension Fund, or MNOPF. At December 31, 2018, we had accrued $0.8 million related to this liability. The status of the fund is calculated by an actuarial firm every three years. The last assessment was completed in March 2018 and resulted in a significantly improved funding position. As a result, the MNOPF trustee did not propose to collect any additional deficit contributions related to the new deficit. Our contributions make up less than one percent of total contributions to the plan.

In addition, we participate in the Merchant Navy Ratings Pension Fund, or MNRPF, in a capacity similar to our participation in the MNOPF. As of December 31, 2018, we had accrued $0.6 million for this fund. The most recent actuarial valuation was completed as of March 31, 2017 and deficit information was communicated in the fourth quarter of 2017. We continue to accrue $0.2 million per annum in respect of expected future deficit. Our contributions make up less than one percent of total contributions to the plan.