(7)	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 company did not contribute to the pension plan during the period from August 1, 2017 through September 30, 2017 (Successor) and the period from April 1, 2017 through July 31, 2017 (Predecessor). The company currently does not expect to contribute to the pension plan during the period October 1, 2017 to December 31, 2017. The company contributed $3.0 million to the pension plan during the quarter and six-month period ended September 30, 2016.

Supplemental Executive Retirement Plan

In 1991, the company adopted a Supplemental Executive Retirement Plan (“SERP”) for certain employees. The SERP provides for retirement benefits payable in the form of a joint and survivor annuity, equivalent installments, or a lump sum. In general, the SERP provides pension benefits determined based on the average of the participant’s highest compensation for any consecutive five year period during the ten years immediately preceding retirement multiplied by the participant’s benefit service. The annuity is reduced by benefits paid or which would have been paid under the pension plan, or if not eligible for the pension plan, a hypothetical retirement benefit plan. A rabbi trust has been established to hold assets for the benefit of participants in the SERP. The rabbi trust assets are invested in a variety of marketable securities (but not the company’s stock) and recorded at fair value with unrealized gains or losses included in accumulated other comprehensive income (loss). Effective March 4, 2010, the SERP was closed to new participants. The SERP is a non-qualified plan and, as such, the company is not required to make contributions to the SERP. The company contributed $0.1 million to the supplemental plan during the period from August 1, 2017 through September 30, 2017 (Successor) and did not contribute to the plan during the period from April 1, 2017 through July 31, 2017 (Predecessor). The company does not expect to contribute to the supplemental plan during the period October 1, 2017 to December 31, 2017. The company contributed approximately $0.1 million to the supplemental plan during the quarter and six-month period ended September 30, 2016,

On October 16, 2017, Tidewater Inc. (the “Company”) announced that Jeffrey M. Platt had resigned from his position as the Company’s President and Chief Executive Officer and as a member of the Company’s board of directors (the “Board”), effective October 15, 2017. Larry T. Rigdon, one of the Company’s directors, will serve as the Company’s President and Chief Executive Officer on an interim basis, effective October 16, 2017.

As a result of Mr. Platt’s retirement, he is expected to receive in April 2018 an approximate $9.6 million lump sum distribution in settlement of his supplemental executive retirement plan obligation. A settlement loss, which is currently estimated to be $0.5 million, will be recorded at the time of distribution.

Investments held in a Rabbi Trust 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, 2017 and March 31, 2017:

	Successor		Predecessor
	September 30,		March 31,
(In thousands)	2017		2017
Investments held in Rabbi Trust	$	8,846		8,759
Unrealized gain (losses) in fair value of trust assets		82		(95	)
Unrealized losses in fair value of trust assets are net of income tax expense of		—		(223	)
Obligations under the supplemental plan		30,631		29,108

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

The company provides limited post-retirement health care and life insurance benefits for certain U.S. employees. Costs of the plan 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.

Effective November 20, 2015, the company eliminated its post-65 medical coverage for all current and future retirees effective January 1, 2017. The medical coverage remains unchanged for participants under age 65.

Net Periodic Benefit Costs

The net periodic benefit cost for the company’s defined benefit pension plans and 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:

	Successor			Predecessor
	Period from			Period from
	August 1, 2017			July 1, 2017			Three Months
	through			through			Ended
(In thousands)	September 30, 2017			July 31, 2017			September 30, 2016
Pension Benefits:
Service cost	$	203			99			254
Interest cost		624			328			941
Expected return on plan assets		(332	)		(173	)		(548	)
Administrative expenses		2			1			2
Amortization of prior service cost		—			—			—
Recognized actuarial loss		—			187			446
Net periodic benefit cost	$	497			442			1,095
Other Benefits:
Service cost	$	12			6			20
Interest cost		30			16			50
Amortization of prior service cost		—			(232	)		(1,086	)
Recognized actuarial benefit		—			(83	)		(285	)
Net periodic benefit cost	$	42			(293	)		(1,301	)

	Successor			Predecessor
	Period from			Period from
	August 1, 2017			April 1, 2017			Six Months
	through			through			Ended
(In thousands)	September 30, 2017			July 31, 2017			September 30, 2016
Pension Benefits:
Service cost	$	203			393			506
Interest cost		624			1,313			1,882
Expected return on plan assets		(332	)		(691	)		(1,097	)
Administrative expenses		2			3			4
Amortization of prior service cost		—			—			—
Recognized actuarial loss		—			748			892
Net periodic benefit cost	$	497			1,766			2,187
Other Benefits:
Service cost	$	12			23			40
Interest cost		30			64			100
Amortization of prior service cost		—			(927	)		(2,172	)
Recognized actuarial benefit		—			(335	)		(570	)
Net periodic benefit cost	$	42			(1,175	)		(2,602	)

The company also has 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. The company contributed approximately 3.0 million NOK (approximately $0.4 million) to the Norway defined benefit pension plan during the period from April 1, 2017 through July 31, 2017 (Predecessor) and did not contribute to the plan during the period from August 1, 2017 through September 30, 2017 (Successor). The company contributed approximately 3.4 million NOK (approximately $0.5 million) to the Norway defined benefit pension plan during the six-month period ended September 30, 2016. The company currently does not expect to contribute to the Norway pension plan during the period October 1, 2017 to December 31, 2017. The preceding net periodic benefit cost table includes the Norway pension plan.