Note 10, Benefit Plans:

During the fourth quarter of 2014, we settled the obligations associated with our defined benefit pension plan (the "Pension Plan"). The Pension Plan covered substantially all employees hired on or before December 31, 2005 and was closed to any employees hired after that date. The benefits are based on years of service and the employee's final average compensation. No new benefits were earned under the Pension Plan for additional years of service after December 31, 2006.

Plan participants not yet retired received vested benefits from the plan assets by electing either a lump sum distribution, roll-over contribution to a 401(k) or individual retirement plans, or an annuity contract with a third-party insurance company. Retired participants automatically received annuities. Pension settlement charges of $21,623,000 million, before tax, were recorded during the fourth quarter of 2014 as payments were made from the Plan in accordance with the participants' elections.

The remaining $813,000 plan assets will fund additional plan termination professional fees, administration expenses and any required adjustments identified to amounts settled, with the remainder distributed equally to current plan participants after final IRS approval is obtained. Accordingly, we have no future obligations related to the terminated Pension Plan.

We also have a non-qualified, non-contributory supplemental executive retirement plan (the "SERP") for employees whose retirement benefits are reduced due to their annual compensation levels. The SERP provides annual benefits amounting to 55% of final average earnings less benefits payable from our pension plan and Social Security benefits. The SERP limits the total amount of annual retirement benefits that may be paid to a participant from all sources (Retirement Plan, Social Security and the SERP) to $125,000. The SERP is not funded so we pay benefits directly to participants.

The following table summarizes information about our pension plan and SERP.

	Pension Plan						SERP
(In thousands)	2014			2013			2014			2013
Change in benefit obligation:
Benefit obligation at beginning of the year	$	73,456		$	80,610		$	5,974		$	6,368
Service cost		—			—			117			134
Interest cost		3,232			3,278			289			259
Plan settlements		(83,453	)		—			—			—
Special termination benefits		813			—			—			—
Actuarial losses (gains)		10,700			(6,838	)		1,095			(595	)
Benefits paid		(3,935	)		(3,594	)		(205	)		(192	)
Benefit obligation at end of year		813			73,456			7,270			5,974
Change in plan assets:
Fair value of plan assets at beginning of year		82,904			73,842			—			—
Employer contribution		—			4,200			205			192
Actual return on plan assets		5,297			8,456			—			—
Plan settlements		(83,453	)		—			—			—
Benefits paid		(3,935	)		(3,594	)		(205	)		(192	)
Fair value of plan assets at end of year		813			82,904			—			—
Funded status of the plan – (underfunded)	$	—		$	9,448		$	(7,270	)	$	(5,974	)

Accumulated benefit obligations	$	—		$	73,456		$	7,270		$	5,974

Amounts recognized in the consolidated balance sheets consist of:

	Pension Plan				SERP
(In thousands)	2014		2013		2014			2013
Noncurrent assets	$	—	$	9,448	$	—		$	—
Current liabilities		—		—		(228	)		(214	)
Noncurrent liabilities		—		—		(7,042	)		(5,760	)
	$	—	$	9,448	$	(7,270	)	$	(5,974	)

Amounts recognized in accumulated other comprehensive income (loss) before the effect of income taxes consist of:

	Pension Plan							SERP
(In thousands)	2014			2013				2014				2013
Prior service cost		$	—		$	—			$	(432	)		$	(641	)
Net actuarial loss			—			(11,176	)			(1,663	)			(568	)
		$	—		$	(11,176	)		$	(2,095	)		$	(1,209	)

Net pension cost included the following components:

	Pension Plan									SERP
(In thousands)	2014			2013			2012			2014		2013		2012
Service cost-benefits earned during the period	$	—		$	—		$	—		$	117	$	134	$	97
Interest cost on projected benefit obligation		3,232			3,278			3,506			289		259		262
Expected return on plan assets		(4,475	)		(4,948	)		(4,474	)		—		—		—
Amortization of prior service cost		—			—			—			210		210		210
Amortization of actuarial loss		244			1,627			1,847					68		26
Settlement loss recognized		20,810			—			—			—		—		—
Special termination benefit recognized		813			—			—			—		—		—
Net pension costs	$	20,624		$	(43	)	$	879		$	616	$	671	$	595

The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic cost in 2015 is approximately $324,000 for the SERP.

Assumptions

We use a measurement date of December 31 for our pension and SERP plan. Assumptions used to determine benefit obligations at December 31 are as follows:

	Pension Plan				SERP
	2014		2013		2014		2013
Discount rate		n/a		4.93%		4.09%		4.96%
Rate of compensation increase		n/a		n/a		3.50%		3.50%

Assumptions used to determine net periodic benefit cost for years ended December 31 are as follows:

	Pension Plan						SERP
	2014		2013		2012		2014		2013		2012
Discount rate		4.93%		4.13%		4.60%		4.96%		4.08%		4.60%
Expected long-term return on plan assets		6.00%		6.65%		6.75%		n/a		n/a		n/a
Rate of compensation increase		n/a		n/a		n/a		3.50%		3.50%		3.50%

For purposes of determining the periodic expense of our defined benefit plan, we use fair market value of plan assets as the market related value.

Prior to the termination and settlement of the obligations of the pension plan its assets were held in audited institutional mutual funds and collective trusts. Since the net asset values of these funds were not quoted on actively traded markets, they were classified in a Level 2 valuation category. Some of the holdings in these funds were valued using quoted market prices for similar instruments in active markets, a Level 2 valuation technique. The remaining assets were valued using quoted market prices, a Level 1 valuation technique. The fair values by asset category are as follows (in thousands):

	Fair Value Measurements
	December 31, 2014						December 31, 2013
	Total		Level 1		Level 2		Total		Level 1		Level 2
Money Market Funds	$	813	$	813	$	—	$	380	$	380	$	—
Equity Securities:
Haverty Class A Common Stock								6,348		6,348
U.S. Large Cap Passive^(a)								9,151				9,151
U.S. Small/Mid Cap Growth								1,183				1,183
U.S. Small/Mid Cap Value								1,174				1,174
International Equity								6,316				6,316
Emerging Markets Equity								1,530				1,530
		—		—		—		25,702		6,348		19,354

Fixed Income:
Opportunistic^(b)								8,143				8,143
Passive								4,294				4,294
Long Duration Active^(c)								16,964				16,964
Long Duration Passive								6,478				6,478
Long Duration Investment Grade^(d)								20,943				20,943
		—		—		—		56,822		—		56,822
Total	$	813	$	813	$	—	$	82,904	$	6,728	$	76,176

(a)	This category comprises low-cost equity index funds not actively managed that track the S&P 500.

(b)

This fund invests primarily in U.S. dollar-denominated, investment grade bonds, including government securities, corporate bonds, and mortgage and asset-backed securities. This fund may also invest a significant portion of its assets in any combination of non-investment grade bonds, non-U.S. dollar denominated bonds, and bonds issued by issuers in emerging capital markets.

(c)	This category invests primarily in U.S. dollar-denominated, investment grade bonds, including government securities, corporate bonds, and mortgage and asset-backed securities, among others.

(d)	This category invests primarily in U.S. dollar-denominated, investment grade corporate bonds as well as U.S. Treasury bonds.

Cash Flows

We did not make any contributions to the pension plan in 2014 and its remaining assets are expected to be distributed in 2015. The following schedule outlines the expected benefit payments related to the SERP in future years. These expected benefits were estimated based on the same actuarial assumptions used to determine benefit obligations at December 31, 2014.

(In thousands)	SERP
2015	$	228
2016		260
2017		369
2018		372
2019		379
2020-2024		2,098

Other Plans

We have an employee savings/retirement (401(k)) plan to which substantially all our employees may contribute. We match employee contributions 100% of the first 1% of eligible pay and 50% of the next 5% contributed by participants. We expensed matching employer contributions of approximately $3,449,000, $3,104,000 and $2,907,000 in 2014, 2013 and 2012, respectively.

We offer no post-retirement benefits other than the plans discussed above and no significant post-employment benefits.