17.

Pension plan

The Company has

one

defined benefit pension plan (the “Plan”), which was assumed in connection with a business acquired during

2016.

The Plan covers eligible employees in the Netherlands and provides old age, survivor, orphan and disability benefits. Effective

December

31,

2016,

enrollment in the Plan was frozen and no additional employees are entitled to join the Plan. The Plan is covered by an insurance contract which limits the Company’s exposure to returns below a fixed discount rate.

The following table details the net periodic pension cost of the Plan:

	2016

Gross employer service cost	$	1,378
Plan participant contributions		(336	)
Interest cost on service cost		34
Employer's service cost		1,076
Interest cost		794
Expected net return on plan assets		(787	)
Other costs		168
Total employer's pension expense	$	1,251

The following tables provide reconciliations of projected benefit obligations and plan assets (the net of which represents the Company’s funded status), as well as the funded status, of the Plan.


Change in benefit obligation:	2016

Projected benefit obligation - January 1, 2016	$	31,421
Current service cost		1,076
Plan participant / third party contributions		336
Interest cost		794
Benefits paid		(438	)
Foreign exchange		(969	)
Expected projected benefit obligation, December 31, 2016		32,220
Actuarial loss, net of foreign exchange		4,438
Projected benefit obligation - December 31, 2016	$	36,659

Change in plan assets:	2016

Fair value of plan assets - January 1, 2016	$	30,627
Expected net return on plan assets		787
Contributions
Employer		603
Plan participants		336
Benefits paid		(438	)
Other costs		(168	)
Foreign exchange		(916	)
Expected fair value of plan assets - December 31, 2016		30,830
Actuarial gain, net of foreign exchange		2,185
Fair value of plan assets - December 31, 2016	$	33,016

Defined benefit pension plan amounts recorded in the consolidated balance sheet are shown in the table below:

	December 31, 2016

Present value of accumulated benefit obligation	$	(34,934	)
Effect of future compensation increases		(1,724	)
Present value of projected benefit obligation		(36,659	)
Fair value of plan assets		33,016
Net liability for pension benefits	$	(3,643	)

The following table details the amount recognized in other comprehensive income:

	2016

Actuarial loss on remeasurement of projected benefit obligation	$	4,654
Actuarial gain on remeasurement of fair value of assets		(2,292	)
Total loss recognized in other comprehensive income	$	2,362

The assumptions used in developing the projected benefit obligation as of

December

31,

2016

are as follows:

Discount rate used in determining present values			1.8	%
Annual increase in future compensation levels			2.0	%

The assumptions used in determining net periodic cost for the period ended

December

31,

2016

are as follows:

Discount rate used in determining present values	1.8	%
Annual increase in future compensation levels	2.0	%
Expected long-term rate of return on assets	1.8	%

The discount rate assumption used for the Plan was derived from the expected yield of Euro-denominated “AA”-rated corporate bonds with durations consistent with the liabilities of the Plan.

The expected long-term rate of return on assets is based on the current level of return expected on the funds invested or to be invested to provide for the benefits included in the projected benefit obligation. The expected return for each asset class is weighted based on the target asset allocation to develop the expected long-term rate of return on assets assumption for the portfolio.

For the period ended

December

31,

2016

the actual return on assets was

$3,079

composed of an expected return on assets of

$787

and an actuarial gain of

$2,292.

Plan assets measured at fair value and cash are presented in the following table with the overall allocation of assets.

	December 31,		Fair value measurements
	2016		Level 1		Level 2		Level 3

Equity type investments	$	2,693	$	2,693	$	-	$	-
Fixed interest type investments Government bonds		30,117		30,117		-
Cash		83		83		-		-
Other		122		-		-		122
Total	$	33,016	$	32,894	$	-	$	122

The Plan’s assets are invested with a

third

party insurance company in the Netherlands that insures the performance of Plan assets. The valuation of the insurance assets is included in the “Other” category in the tables above.

The Company expects the following pension benefit payments over the next

years:

Year ending December 31
2017	$	464
2018		546
2019		617
2020		644
2021		687
2022 - 2026		4,375