13)	Pension Plans

As a result of the Newport Merger, the Company has assumed all assets and liabilities of Newport’s defined benefit pension plans, which cover substantially all of its full-time employees in France, Germany, Israel and Japan. In addition, there are certain pension liabilities relating to former employees in the United Kingdom. The German plan is unfunded, as permitted under the plan and applicable laws.

For financial reporting purposes, the calculation of net periodic pension costs was based upon a number of actuarial assumptions including a discount rate for plan obligations, an assumed rate of return on pension plan assets and an assumed rate of compensation increase for employees covered by the plan. All of these assumptions were based upon management’s judgment, considering all known trends and uncertainties. Actual results that differ from these assumptions would impact future expense recognition and the cash funding requirements of the Company’s pension plans.

The Company has included the net periodic benefit costs for the plans from the date of the acquisition on April 29, 2016 through June 30, 2016. The net periodic benefit costs included the following components:


	Two months ended June 30, 2016
Service cost	$	403
Interest cost on projected benefit obligations		80
Expected return on plan assets		(31	)

	$	452

The projected benefit obligation and plan assets assumed as part of the acquisition, the changes to these amounts and their balances as of June 30, 2016 were as follows:


	June 30, 2016
Change in projected benefit obligations:
Liabilities assumed through acquisition on April 29, 2016	$	22,563
Service cost		403
Interest cost		80
Benefits paid		(121	)
Currency translation adjustments		(598	)

Projected benefit obligation as of June 30, 2016	$	22,327

Change in plan assets:
Assets assumed through acquisition on April 29, 2016		7,907
Company contributions		35
Gain on plan assets		23

Fair value of plan assets as of June 30, 2016		7,965

Funded status	$	(14,362	)

Amounts recognized in the balance sheet:
Current portion of pension liabilities	$	(100	)
Pension liabilities		(14,262	)

Net amount recognized	$	(14,362	)

The Company’s Israeli subsidiaries have pension plans that are accounted for using the shut-down method of accounting. Under the shut-down method, the liability is calculated as if it was payable as of each balance sheet date, on an undiscounted basis and plan assets are reported separate from the pension liability. As a result, the Israeli plan assets and vested benefit obligation are not included in the Company’s plan assets and projected benefit obligation shown above. These Israeli plans had assets of $13,611 and vested benefit obligations of $16,147, which were presented on a gross basis as of June 30, 2016. Israeli plan assets and liabilities are included in other assets and other liabilities, respectively in the accompanying condensed consolidated balance sheet.

Other Pension-Related Assets

As of June 30, 2016, the Company had assets with an aggregate market value of $5,930, which it has set aside in connection with its German pension plans. These assets are invested in group insurance contracts through the insurance company administering these plans, in accordance with applicable pension laws. Because these assets were not separate legal assets of the pension plan, they were not included in the Company’s plan assets shown above. However, the Company has designated such assets to pay pension benefits and these assets are included in long-term investments in the accompanying condensed consolidated balance sheet.