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Pension Plans and Other Postretirement Benefits (Tables) | 12 Months Ended
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Dec. 31, 2016
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, |
|  | 2016 |  | 2015 |  | 2014 |
401(k) plan |  |  |  |  |  |  |  |  |  |
Contributions to employees’ accounts |  | $ | 6,918 |  | $ | 6,466 |  | $ | 2,753 |
Total assets at the end of the year |  |  | 177,352 |  |  | 161,956 |  |  | 132,053 |
Qualified defined contribution plan |  |  |  |  |  |  |  |  |  |
Contributions to employees’ accounts |  |  | - |  |  | - |  |  | 4,580 |
Total assets at the end of the year |  |  | - |  |  | 9,118 |  |  | 123,008 |
Non-qualified defined contribution plan |  |  |  |  |  |  |  |  |  |
Contributions to employees’ accounts |  |  | 72 |  |  | 122 |  |  | 74 |
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, 2014 was primarily attributable to loss recognition in 2014, due to settlement accounting as well as loss amortization included in net periodic benefit cost for 2014. This loss recognition was partially offset by liability losses in 2014 due to a decrease in the discount rate as well as a change in the mortality assumption.
|  |  |  |  |  |  |  |  |  |  |  |  | Supplemental |
|  | Defined Benefit Plan |  |  | Defined Benefit Plans |
|  | Year Ended December 31, |  |  | Year Ended December 31, |
|  | 2016 |  | 2015 |  |  | 2014 |  |  | 2016 |  | 2015 |  |  | 2014 |
Components of net periodic pension (income) expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Service cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Benefit accrual |  | $ | - |  | $ | - |  |  | $ | - |  |  | $ | - |  | $ | - |  |  | $ | - |
Other expenses |  |  | 650 |  |  | 450 |  |  |  | 360 |  |  |  | - |  |  | - |  |  |  | - |
Interest cost |  |  | 1,244 |  |  | 1,189 |  |  |  | 1,679 |  |  |  | 687 |  |  | 654 |  |  |  | 716 |
Expected return on plan assets |  |  | (1,675) |  |  | (1,875) |  |  |  | (2,402) |  |  |  | - |  |  | - |  |  |  | - |
Settlement loss |  |  | - |  |  | - |  |  |  | 2,668 |  |  |  | - |  |  | - |  |  |  | - |
Amortization of: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Prior service cost |  |  | - |  |  | - |  |  |  | - |  |  |  | - |  |  | - |  |  |  | - |
Actuarial loss |  |  | 393 |  |  | 1,626 |  |  |  | 1,371 |  |  |  | 233 |  |  | 273 |  |  |  | 157 |
Net periodic pension expense |  | $ | 612 |  | $ | 1,390 |  |  | $ | 3,676 |  |  | $ | 920 |  | $ | 927 |  |  | $ | 873 |
Changes in plan assets and benefit obligations included in other comprehensive income (loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Prior service cost |  | $ | - |  | $ | - |  |  | $ | - |  |  | $ | - |  | $ | - |  |  | $ | - |
Net actuarial loss (gain) |  |  | 175 |  |  | 930 |  |  |  | (1,037) |  |  |  | 488 |  |  | (845) |  |  |  | 2,431 |
Amortization of: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Prior service cost |  |  | - |  |  | - |  |  |  | - |  |  |  | - |  |  | - |  |  |  | (2) |
Actuarial loss |  |  | (393) |  |  | (1,626) |  |  |  | (1,371) |  |  |  | (233) |  |  | (273) |  |  |  | (157) |
Total recognized in other comprehensive income (loss) |  | $ | (218) |  | $ | (696) |  |  | $ | (2,408) |  |  | $ | 255 |  | $ | (1,118) |  |  | $ | 2,272 |
Weighted average assumptions used to determine expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  |  | 4.20 | % |  | 3.66 | % |  |  | 4.46 | % |  |  | 4.20 | % |  | 3.66 | % |  |  | 4.46 | %
Expected return on plan assets |  |  | 6.50 | % |  | 6.75 | % |  |  | 7.50 | % |  |  | 6.50 | % |  | * |  |  |  | * |
Annual rate of salary increase |  |  | * |  |  | * |  |  |  | * |  |  |  | * |  |  | * |  |  |  | * |
Weighted average assumptions used to determine benefit obligations as of December 31: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  |  | 3.90 | % |  | 4.20 | % |  |  | 3.66 | % |  |  | 3.90 | % |  | 4.20 | % |  |  | 3.66 | %
Expected return on plan assets |  |  | 6.50 | % |  | 6.75 | % |  |  | 7.50 | % |  |  | 6.50 | % |  | * |  |  |  | * |
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, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |
Asset category |  |  |  |  |  |  |  |  |  |  |  |  |
Equity security funds (1) |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 9,836 |  | $ | - |  | $ | 9,836 |  | $ | - |
International |  |  | 2,492 |  |  | - |  |  | 2,492 |  |  | - |
Fixed income funds |  |  | 12,402 |  |  | - |  |  | 12,402 |  |  | - |
Short-term investment funds |  |  | 716 |  |  | 716 |  |  | - |  |  | - |
Total |  | $ | 25,446 |  | $ | 716 |  | $ | 24,730 |  | $ | - |
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 |  |  | - |
Short-term investments funds |  |  | 422 |  |  | 422 |  |  | - |  |  | - |
Total |  | $ | 27,667 |  | $ | 422 |  | $ | 27,245 |  | $ | - |
| (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 |
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 |  |  | * |
Effect of a one percentage point decrease |  |  | * |
Weighted average assumptions used to determine benefit obligations as of December 31: |  |  |  |
Discount rate |  |  | 3.66 | %
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 | %
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 |  |  | * |
| * | 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 2017 |  | $ | - |  |  | N/A |
Expected contributions (approximations) for the year ended December 31, 2017 as of the time of this Form 10-K (1) |  |  | - |  | $ | 1,318 |
N/A - Not applicable.
(1) | HMEC’s Annual Report on Form 10-K for the year ended December 31, 2016.
Estimated future benefit payments | Estimated future benefit payments as of December 31, 2016 were as follows:
|  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022-2026 |
Pension plans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defined benefit plan |  | $ | 2,850 |  | $ | 2,752 |  | $ | 3,043 |  | $ | 2,431 |  | $ | 2,180 |  | $ | 10,275 |
Supplemental retirement plans |  |  | 1,318 |  |  | 1,305 |  |  | 1,291 |  |  | 1,274 |  |  | 1,256 |  |  | 5,909 |
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 (the measurement date) 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 |
Change in accumulated postretirement benefit obligations: |  |  |  |
Accumulated postretirement benefit obligations at beginning of year |  | $ | 1,130 |
Changes during fiscal year: |  |  |  |
Service cost |  |  | - |
Interest cost |  |  | 46 |
Plan amendment |  |  | - |
Settlements |  |  | (965) |
Employer payments net of participant contributions |  |  | (95) |
Actuarial (gain) loss |  |  | (116) |
Accumulated postretirement benefit obligations at end of year |  | $ | - |
Unfunded status |  | $ | - |
Total amount recognized in Consolidated Balance Sheets, all in Other liabilities |  | $ | - |
Amounts recognized in accumulated other comprehensive income (loss) (“AOCI”): |  |  |  |
Prior service cost (credit) |  | $ | - |
Net actuarial loss (gain) |  |  | - |
Total amount recognized in AOCI |  | $ | - |
|  | Year Ended |
|  | December 31, |
|  | 2014 |
Components of net periodic benefit: |  |  |  |
Service cost |  | $ | - |
Interest cost |  |  | 46 |
Curtailment gain |  |  | (713) |
Settlement gain |  |  | (1,439) |
Amortization of prior service cost |  |  | (628) |
Amortization of prior gain |  |  | (246) |
Net periodic income |  | $ | (2,980) |
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, 2016, 2015 and 2014 (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, |
|  | 2016 |  | 2015 |  | 2014 |  | 2016 |  | 2015 |  | 2014 |
Change in benefit obligation: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Projected benefit obligation at beginning of year |  | $ | 31,233 |  | $ | 34,279 |  | $ | 39,483 |  | $ | 17,004 |  | $ | 18,524 |  | $ | 16,706 |
Service cost |  |  | 650 |  |  | 450 |  |  | 360 |  |  | - |  |  | - |  |  | - |
Interest cost |  |  | 1,244 |  |  | 1,189 |  |  | 1,679 |  |  | 687 |  |  | 654 |  |  | 716 |
Plan amendments |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Actuarial loss (gain) |  |  | (220) |  |  | (1,371) |  |  | 1,254 |  |  | 488 |  |  | (845) |  |  | 2,431 |
Benefits paid |  |  | (3,500) |  |  | (3,314) |  |  | (1,737) |  |  | (1,332) |  |  | (1,329) |  |  | (1,329) |
Settlements |  |  | - |  |  | - |  |  | (6,760) |  |  | - |  |  | - |  |  | - |
Projected benefit obligation at end of year |  | $ | 29,407 |  | $ | 31,233 |  | $ | 34,279 |  | $ | 16,847 |  | $ | 17,004 |  | $ | 18,524 |
Change in plan assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year |  | $ | 27,667 |  | $ | 31,408 |  | $ | 35,879 |  | $ | - |  | $ | - |  | $ | - |
Actual return on plan assets |  |  | 1,766 |  |  | 200 |  |  | 2,535 |  |  | - |  |  | - |  |  | - |
Employer contributions |  |  | - |  |  | - |  |  | 2,000 |  |  | 1,332 |  |  | 1,329 |  |  | 1,329 |
Benefits paid |  |  | (3,500) |  |  | (3,314) |  |  | (1,737) |  |  | (1,332) |  |  | (1,329) |  |  | (1,329) |
Expenses paid |  |  | (487) |  |  | (627) |  |  | (509) |  |  | - |  |  | - |  |  | - |
Settlements |  |  | - |  |  | - |  |  | (6,760) |  |  | - |  |  | - |  |  | - |
Fair value of plan assets at end of year |  | $ | 25,446 |  | $ | 27,667 |  | $ | 31,408 |  | $ | - |  | $ | - |  | $ | - |
Funded status |  | $ | (3,961) |  | $ | (3,566) |  | $ | (2,871) |  | $ | (16,847) |  | $ | (17,004) |  | $ | (18,524) |
Prepaid (accrued) benefit expense |  | $ | 8,653 |  | $ | 9,265 |  | $ | 10,656 |  | $ | (11,210) |  | $ | (11,622) |  | $ | (12,024) |
Total amount recognized in Consolidated Balance Sheets, all in Other liabilities |  | $ | (3,961) |  | $ | (3,566) |  | $ | (2,871) |  | $ | (16,847) |  | $ | (17,004) |  | $ | (18,524) |
Amounts recognized in accumulated other comprehensive income (loss) (“AOCI”): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Prior service cost |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |
Net actuarial loss |  |  | 12,613 |  |  | 12,831 |  |  | 13,527 |  |  | 5,637 |  |  | 5,382 |  |  | 6,500 |
Total amount recognized in AOCI |  | $ | 12,613 |  | $ | 12,831 |  | $ | 13,527 |  | $ | 5,637 |  | $ | 5,382 |  | $ | 6,500 |
Information for pension plans with an accumulated benefit obligation greater than plan assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Projected benefit obligation |  | $ | 29,407 |  | $ | 31,233 |  | $ | 34,279 |  | $ | 16,847 |  | $ | 17,004 |  | $ | 18,524 |
Accumulated benefit obligation |  |  | 29,407 |  |  | 31,233 |  |  | 34,279 |  |  | 16,847 |  |  | 17,004 |  |  | 18,524 |
Fair value of plan assets |  |  | 25,446 |  |  | 27,667 |  |  | 31,408 |  |  | - |  |  | - |  |  | - |

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