Retirement Benefit Plans

Defined Benefit Plan

The following tables present the components of net periodic benefit cost (gains are denoted with parentheses and losses are not):



	Nine Months Ended September 30, 2017
(in thousands)	Hourly Employees’ Pension Plan			Employees’ Retirement Plan				Total
Service cost		$	—		$	3		$	3
Interest cost		—			624			624
Expected return on plan assets		—			(956		)	(956		)
Amortization of net loss		—			324			324
Net periodic benefit		$	—		$	(5	)	$	(5	)



	Nine Months Ended September 30, 2016
(in thousands)	Hourly Employees’ Pension Plan				Employees’ Retirement Plan				Total
Service cost		$	6			$	3		$	9
Interest cost		300				666			966
Expected return on plan assets		(486		)		(898		)	(1,384		)
Amortization of net loss		213				330			543
Net periodic benefit cost		$	33			$	101		$	134

The Company amortizes annual pension income or expense evenly over four quarters. Pension income was $2,000 and pension expense was $45,000 for the three months ended September 30, 2017 and September 30, 2016, respectively. Pension income for the nine months ended September 30, 2017 was $5,000 and pension expense for the nine months ended September 30, 2016 was $134,000 . The Company is not required to contribute to the pension plans for the 2017 plan year but may do so.

On April 6, 2016 we notified all participants in the Gradall Company Hourly Employees’ Pension Plan of our decision to terminate the plan. Participants in the plan did not lose any benefits but were given a choice between obtaining certain continued annuity benefits that match the benefits offered under the plan or receiving an immediate one-time lump sum payment in total settlement of benefits. The Company made a final contribution and met all legal requirements to effectuate a proper termination of the plan before December 31, 2016.

Supplemental Retirement Plan

In May of 2015, the Board amended the SERP to allow the Board to modify the retirement benefit percentage either higher or lower than 20%. In May of 2016, the Board added additional key management to the plan. As of September 30, 2017, the current retirement benefit (as defined in the plan) for the participants ranges from 10% to 20%.

The net period expense for the three months ended September 30, 2017 and 2016 was $202,000 and $148,000, respectively and $606,000 and $443,000 for the nine months ended September 30, 2017 and 2016, respectively.