Employee Benefit Plans

In the fourth quarter of 2014, the Company completed the migration of its retirement benefits from defined-benefit pension plans to defined-contribution retirement plans, utilizing its 401(k) plan.

The Company previously sponsored two qualified defined-benefit pension plans that covered substantially all employees. In 2007, the Company amended its hourly and salaried defined-benefit pension plans so that employees no longer accrued benefits under them. This action “froze” the benefits for all employees and prevented future hires from joining the plans. A third defined-benefit pension plan was non-qualified and covered certain executive officers of the Company.

The Company sponsors a defined-contribution 401(k) plan that covers substantially all employees. The Company matches employee contributions to their 401(k) accounts using the “safe harbor” guidelines provided in the Internal Revenue Code. In addition, the Company provides discretionary supplemental contributions to substantially all employees' individual 401(k) accounts.

Defined-Benefit Plans

In December 2014 the Company terminated its defined benefit pension plans and settled all obligations to employees. As a result of the termination of the plans, the Company recognized a one-time charge to expense of $41.0 million in the fourth quarter of 2014, primarily comprised of the recognition of previously deferred actuarial losses.

Active employees, all of whom were 100 percent vested in their pension benefits, were given the option of rolling the actuarially determined present value of their benefits into their 401(k) accounts, receiving deferred annuity contracts issued by an insurance carrier, or receiving a lump sum payment.

The Company contributed $7.5 million to the frozen pension plans in 2014 in order to fully fund the settlement, representing the shortfall of the existing pension fund assets on the termination date to the settlement value. The Company contributed $3 million and $3 million to these frozen pension plans in 2013 and 2012, respectively, which satisfied the required minimum contribution in each year. Since the plans have been fully funded and settled, no further cash contributions will be required in future years.

The measurement dates of the assets and liabilities of all plans presented for 2014 and 2013 were December 31, 2014 and December 31, 2013, respectively.

Summarized information on the Company's defined-benefit pension plans is as follows:

Obligations and Funded Status at December 31,	2014			2013

Change in Benefit Obligation
Benefit obligation at beginning of year	$	77,484		$	85,516
Service cost		-			-
Interest cost		3,595			3,349
Actuarial (gain) loss		5,855			(7,921	)
Benefits paid		(3,301	)		(3,460	)
Settlement of obligations		(83,633	)		-
Benefit obligation at end of year		-			77,484

Change in Plan Assets
Fair value of plan assets at beginning of year	77,993		65,890
Actual return on plan assets	311		12,403
Employer contributions	8,630		3,160
Benefits paid	(3,301	)	(3,460	)
Settlement of obligations	(83,633	)	-
Fair value of plan assets at end of year	-		77,993

Funded Status
Funded status		-		509
Unrecognized net actuarial loss		-		30,284
Unrecognized prior service cost		-		-
Net amount recognized	$	-	$	30,793

Weighted Average Assumptions for the years ended December 31,	2014		2013
Discount rate	4.75	%	4.00	%
Expected long-term return on plan assets	N/A		8.00	%
Rate of compensation increases	N/A		N/A

Components of Net Periodic Pension Cost		2014			2013
Service cost	$	-		$	-
Interest cost		3,595			3,349
Expected return on assets		(6,114	)		(5,238	)
Recognized gains		997			1,645
Net periodic pension cost	$	(1,522	)	$	(244	)
Benefit plan termination costs (see above)		40,999			-
Net periodic pension cost and benefit plan termination costs	$	39,477		$	(244	)

Amounts Recognized on the Balance Sheet		2014		2013
Accrued benefit liability	$	-	$	509
Accumulated other comprehensive loss, net of tax		-		19,379
Deferred tax asset		-		10,905
	$	-	$	30,793

Weighted Average Assumptions as of December 31,	2014	2013
Discount rate	N/A	4.75	%
Rate of compensation increases	N/A	N/A

Information for Pension Plans with an Accumulated Benefit Obligation in excess of plan assets		2014		2013
Projected benefit obligation	$	-	$	77,484
Accumulated benefit obligation	$	-	$	77,484
Fair value of plan assets	$	-	$	77,993

Pension Weighted Average Asset Allocations as of December 31,	2014	2013
Debt securities	-	-
Equity securities	-	6	%
Real estate	-	-
Money market funds	-	94	%
	-	100	%

In conjunction with the termination and settlement of the defined-benefit pension plans, the additional minimum pension liability was fully recognized. The Company recorded an adjustment to the additional minimum pension liability, net of tax, which increased comprehensive income by $10.2 million in 2013, and decreased comprehensive income by $2.1 million in 2012, respectively.

Plan Assets

As a result of the termination and settlement of the defined-benefit pension plans, there are no plan assets as of December 31, 2014. The following table sets forth the defined-benefit plans' assets at fair value as of December 31, 2013:

December 31,		2014		2013

Pooled separate accounts:
Equity securities:
International equity funds	$	-	$	4,458
Money market fund		-		73,535
	$	-	$	77,993

Defined-Contribution Plans

Prior to 2007, the Company also sponsored two qualified defined-contribution plans that covered substantially all of its hourly and salaried employees. Effective January 1, 2007, the qualified defined-contribution plans were merged into a single 401(k) plan. Under the terms of the 401(k) plan, the Company matches a certain portion of employee contributions. Expenses related to matching employee contributions to the 401(k) plan were $3.2 million, $3.0 million, and $2.3 million in 2014, 2013, and 2012, respectively.

Additionally, in 2014, 2013, and 2012 the Company provided discretionary supplemental contributions to the individual 401(k) accounts of substantially all employees. Each employee received a supplemental contribution to their account based on a uniform percentage of qualifying compensation established annually. The cost of these supplemental contributions totaled $5.6 million, $4.9 million, and $3.3 million in 2014, 2013, and 2012, respectively.