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EMPLOYEE BENEFIT PLANS

U.S. Defined Benefit Pension Plan

The company has 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. Effective April 1, 1996, the pension plan was closed to new participation. 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. This change did not affect benefits earned by participants prior to January 1, 2011. The pension plan is currently adequately funded and the company did not contribute to the pension plan during the quarters and six months ended September 30, 2015 and 2014, and does not expect to contribute to the plan during the remaining quarters of fiscal 2016.

Supplemental Executive Retirement Plan

The company also maintains a non-contributory, defined benefit supplemental executive retirement plan (supplemental plan) that provides pension benefits to certain employees in excess of those allowed under the company’s tax-qualified pension plan. A Rabbi Trust has been established for the benefit of participants in the supplemental plan. The Rabbi Trust assets, which are invested in a variety of marketable securities (but not Tidewater stock), are recorded at fair value with unrealized gains or losses included in accumulated other comprehensive income (loss). Effective March 4, 2010, the supplemental plan was closed to new participation. The supplemental plan is a non-qualified plan and, as such, the company is not required to make contributions to the supplemental plan. The company did not contribute to the supplemental plan during the quarters and six months ended September 30, 2015 and 2014, and does not expect to contribute to the plan during the remaining quarters of fiscal 2016.

Investments held in a Rabbi Trust for the benefit of participants in the supplemental plan are included in other assets at fair value. The following table summarizes the carrying value of the trust assets, including unrealized gains or losses at September 30, 2015 and March 31, 2015:


(In thousands)	September 30, 2015	March 31, 2015

Investments held in Rabbi Trust	$ 9,136		9,915
Unrealized gains (losses) in fair value of trust assets	444		235
Obligations under the supplemental plan	26,599		25,510

To the extent that trust assets are liquidated to fund benefit payments, gains or losses, if any, will be recognized at that time. The company’s obligations under the supplemental plan are included in ‘accrued expenses’ and ‘other liabilities and deferred credits’ on the consolidated balance sheet.

Postretirement Benefit Plan

Qualified retired employees currently are covered by a program which provides limited health care and life insurance benefits. Costs of the program are based on actuarially determined amounts and are accrued over the period from the date of hire to the full eligibility date of employees who are expected to qualify for these benefits. This plan is funded through payments by the company as benefits are required.

Net Periodic Benefit Costs

The net periodic benefit cost for the company’s U.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 collectively as “Other Benefits”) is comprised of the following components:


	Quarter Ended September 30,					Six Months Ended September 30,
(In thousands)	2015			2014		2015		2014

Pension Benefits:
Service cost	$	234			206		468		412
Interest cost		935			968		1,870		1,936
Expected return on plan assets		(530	)		(685)		(1,060)		(1,370)
Amortization of prior service cost		9			12		18		24
Recognized actuarial loss		567			247		1,134		494

Net periodic benefit cost	$	1,215			748		2,430		1,496

Other Benefits:
Service cost	$	75			68		150		136
Interest cost		211			226		421		452
Amortization of prior service cost		(510	)		(508)		(1,021)		(1,016)
Recognized actuarial benefit		(245	)		(325)		(489)		(650)

Net periodic benefit cost	$	(469	)		(539)		(939)		(1,078)