Pension Plans and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2015

Defined Benefit Plan Disclosure [Line Items]

Summary of contributions to qualified defined contribution plan, 401(k), non-qualified defined contribution plan and total assets of the plans

Contributions to employees' accounts under the qualified defined contribution plan, the 401(k) plan and the non-qualified defined contribution plan, as well as total assets of the plans, were as follows:

		Year Ended December 31,
		2015		2014		2013
401(k) plan
Contributions to employees’ accounts	$	6,466	$	2,753	$	2,781
Total assets at the end of the year		161,956		132,053		134,897

Qualified defined contribution plan
Contributions to employees’ accounts		-		4,580		4,616
Total assets at the end of the year		9,088		123,008		135,097

Non-qualified defined contribution plan
Contributions to employees’ accounts		122		74		110
Total assets at the end of the year		-		-		-

Defined benefit plan and the supplemental defined benefit plans

The change in the Company’s AOCI for the defined benefit plans for the year ended December 31, 2013 was primarily attributable to the performance of the plan assets and an increase in the discount rate, which was partially offset by a change in the mortality assumption.

										Supplemental
	Defined Benefit Plan									Defined Benefit Plans
	Year Ended December 31,									Year Ended December 31,
	2015			2014			2013			2015			2014			2013
Components of net periodic pension (income) expense:
Service cost:
Benefit accrual	$	-		$	-		$	-		$	-		$	-		$	-
Other expenses		450			360			360			-			-			-
Interest cost		1,189			1,679			1,369			654			716			616
Expected return on plan assets		(1,875	)		(2,402	)		(2,238	)		-			-			-
Settlement loss		-			2,668			867			-			-			-
Amortization of:
Prior service cost		-			-			-			-			-			124
Actuarial loss		1,626			1,371			1,602			273			157			203
Net periodic pension expense	$	1,390		$	3,676		$	1,960		$	927		$	873		$	943

Changes in plan assets and benefit obligations included in other comprehensive income (loss):
Prior service cost	$	-		$	-		$	-		$	-		$	-		$	-
Net actuarial loss (gain)		930			(1,037	)		(1,888	)		(845	)		2,431			(783	)
Amortization of:
Prior service cost		-			-			-			-			(2	)		(124	)
Actuarial loss		(1,626	)		(1,371	)		(1,602	)		(273	)		(157	)		(203	)
Total recognized in other comprehensive income (loss)	$	(696	)	$	(2,408	)	$	(3,490	)	$	(1,118	)	$	2,272		$	(1,110	)

Weighted average assumptions used to determine expense:
Discount rate		3.66	%		4.46	%		3.51	%		3.66	%		4.46	%		3.51	%
Expected return on plan assets		6.75	%		7.50	%		7.50	%		*			*			*
Annual rate of salary increase		*			*			*			*			*			*

Weighted average assumptions
used to determine benefit
obligations as of December 31:
Discount rate		4.20	%		3.66	%		4.46	%		4.20	%		3.66	%		4.46	%
Expected return on plan assets		6.75	%		7.50	%		7.50	%		*			*			*
Annual rate of salary increase		*			*			*			*			*			*

* Not applicable.

Fair value hierarchy for the Company's defined benefit pension plan assets

Fair values of the equity security funds and fixed income funds have been determined from public quotations. The following table presents the fair value hierarchy for the Company’s defined benefit pension plan assets, excluding cash held.

			Fair Value Measurements at
			Reporting Date Using
	Total		Level 1			Level 2		Level 3
December 31, 2015
Asset category
Equity security funds (1)
United States	$	10,844		$	-	$	10,844		$	-
International		2,681			-		2,681			-
Fixed income funds		13,720			-		13,720			-
Total	$	27,245		$	-	$	27,245		$	-

December 31, 2014
Asset category
Equity security funds (1)
United States	$	12,718		$	-	$	12,718		$	-
International		2,790			-		2,790			-
Fixed income funds		15,591			-		15,591			-
Total	$	31,099		$	-	$	31,099		$	-

(1) None of the trust fund assets for the defined benefit pension plan have been invested in shares of HMEC’s common stock.

Summary of change in accumulated postretirement benefit obligations

A one percentage point change in the assumed health care cost trend rate for each year would change the accumulated postretirement benefit obligations as follows:

	December 31,
		2014			2013
Accumulated postretirement benefit obligations
Effect of a one percentage point increase		*		$	-
Effect of a one percentage point decrease		*			-

Service and interest cost components of the net periodic postretirement benefit expense
Effect of a one percentage point increase		*		$	2
Effect of a one percentage point decrease		*			(2	)

Weighted average assumptions used to determine benefit obligations as of December 31:
Discount rate		3.66	%		4.46	%
Healthcare cost trend rate		*			*
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)		*			*
Year the rate is assumed to reach the ultimate trend rate		*			*
Expected return on plan assets		*			*

Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate		4.46	%		3.51	%
Healthcare cost trend rate		*			7.50	%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)		*			5.00	%
Year the rate is assumed to reach the ultimate trend rate		*			2022
Expected return on plan assets		*			*

Not applicable.

Summary of minimum funding requirement and the expected full year contributions for the Company's plans

The following table discloses that minimum funding requirement and the expected full year contributions for the Company’s plans.

	Defined Benefit Pension Plans
	Defined		Supplemental
	Benefit		Defined Benefit
	Plan		Plans

Minimum funding requirement for 2016	$	-		N/A
Expected contributions (approximations) for the year ended December 31, 2016 as of the time of this Form 10-K (1)		-	$	1,319

N/A - Not applicable.

(1)

HMEC’s Annual Report on Form 10-K for the year ended December 31, 2015.

Estimated future benefit payments

Estimated future benefit payments as of December 31, 2015 were as follows:

	2016		2017		2018		2019		2020		2021-2025
Pension plans
Defined benefit plan	$	3,207	$	2,716	$	2,645	$	3,042	$	2,485		$11,148
Supplemental retirement plans		1,319		1,308		1,295		1,281		1,264		5,995

Postretirement Benefit Costs [Member]

Defined Benefit Plan Disclosure [Line Items]

Funded status of the defined benefit, supplemental retirement pension plans and postretirement benefits other than pensions

The following table presents the funded status of postretirement benefits other than pensions of active and retired employees (including employees on disability more than 2 years) as of December 31, 2014 and 2013 (the measurement dates) reconciled with amounts recognized in the Company's Consolidated Balance Sheets. The tables present postretirement expenses and liabilities only for those years in which the Company incurred expenses or accrued liabilities.

	December 31,
	2014			2013
Change in accumulated postretirement benefit obligations:
Accumulated postretirement benefit obligations at beginning of year	$	1,130		$	2,862
Changes during fiscal year:
Service cost		-			-
Interest cost		46			92
Plan amendment		-			(1,393	)
Settlements		(965	)		-
Employer payments net of participant contributions		(95	)		(491	)
Actuarial (gain) loss		(116	)		60
Accumulated postretirement benefit obligations at end of year	$	-		$	1,130
Unfunded status	$	-		$	(1,130	)

Total amount recognized in Consolidated Balance Sheets, all in Other Liabilities	$	-		$	(1,130	)

Amounts recognized in accumulated other comprehensive income (loss) (“AOCI”):
Prior service cost (credit)	$	-		$	(1,341	)
Net actuarial loss (gain)		-			(604	)
Total amount recognized in AOCI	$	-		$	(1,945	)

	Year Ended December 31,
	2014			2013
Components of net periodic benefit:
Service cost	$	-		$	-
Interest cost		46			92
Curtailment gain		(713	)		-
Settlement gain		(1,439	)		-
Amortization of prior service cost		(628	)		(52	)
Amortization of prior gain		(246	)		(236	)
Net periodic income	$	(2,980	)	$	(196	)

Pension Plan [Member]

Defined Benefit Plan Disclosure [Line Items]

Funded status of the defined benefit, supplemental retirement pension plans and postretirement benefits other than pensions

The following tables summarize the funded status of the defined benefit and supplemental retirement pension plans as of December 31, 2015, 2014 and 2013 (the measurement dates) and identify (1) the assumptions used to determine the projected benefit obligation and (2) the components of net pension cost for the defined benefit plan and supplemental retirement plans for the following periods:

										Supplemental
	Defined Benefit Plan									Defined Benefit Plans
	December 31,									December 31,
	2015			2014			2013			2015			2014			2013
Change in benefit obligation:
Projected benefit obligation at beginning of year	$	34,279		$	39,483		$	40,994		$	18,524		$	16,706		$	18,192
Service cost		450			360			360			-			-			-
Interest cost		1,189			1,679			1,369			654			716			616
Plan amendments		-			-			-			-			-			-
Actuarial loss (gain)		(1,371	)		1,254			624			(845	)		2,431			(783	)
Benefits paid		(3,314	)		(1,737	)		(1,715	)		(1,329	)		(1,329	)		(1,319	)
Settlements		-			(6,760	)		(2,149	)		-			-			-
Projected benefit obligation at end of year	$	31,233		$	34,279		$	39,483		$	17,004		$	18,524		$	16,706
Change in plan assets:
Fair value of plan assets at beginning of year	$	31,408		$	35,879		$	32,757		$	-		$	-		$	-
Actual return on plan assets		200			2,535			4,396			-			-			-
Employer contributions		-			2,000			3,103			1,329			1,329			1,319
Benefits paid		(3,314	)		(1,737	)		(1,715	)		(1,329	)		(1,329	)		(1,319	)
Expenses paid		(627	)		(509	)		(513	)		-			-			-
Settlements		-			(6,760	)		(2,149	)		-			-			-
Fair value of plan assets at end of year	$	27,667		$	31,408		$	35,879		$	-		$	-		$	-
Funded status	$	(3,566	)	$	(2,871	)	$	(3,604	)	$	(17,004	)	$	(18,524	)	$	(16,706	)

Prepaid (accrued) benefit expense	$	9,265		$	10,656		$	12,331		$	(11,622	)	$	(12,024	)	$	(12,479	)

Total amount recognized in
Consolidated Balance Sheets, all in Other Liabilities	$	(3,566	)	$	(2,871	)	$	(3,604	)	$	(17,004	)	$	(18,524	)	$	(16,706	)

Amounts recognized in accumulated other comprehensive income (loss) (“AOCI”):
Prior service cost	$	-		$	-		$	-		$	-		$	-		$	-
Net actuarial loss		12,831			13,527			15,935			5,382			6,500			4,227
Total amount recognized in AOCI	$	12,831		$	13,527		$	15,935		$	5,382		$	6,500		$	4,227

Information for pension plans with an accumulated benefit obligation greater than plan assets:
Projected benefit obligation	$	31,233		$	34,279		$	39,483		$	17,004		$	18,524		$	16,706
Accumulated benefit obligation		31,233			34,279			39,483			17,004			18,524			16,706
Fair value of plan assets		27,667			31,408			35,879			-			-			-