16. Executive Benefit Agreements, Employee Savings Plans and Collective Bargaining Agreements

We are party to an individual benefit agreement (“1992 Agreement”) with a former executive and a death benefit agreement (“2005 Agreement”) with Jack E. Golsen, who retired as discussed in Note 17-Related Party Transactions. The 1992 Agreement provides for annual benefit payments for life payable in monthly installments.

The 2005 Agreement provides that, upon Mr. Golsen’s death, we will pay to the designated beneficiary, a lump-sum payment of $2,500,000 to be funded from the net proceeds received by us under certain life insurance policies on his life that are owned by us. We are obligated to keep in existence life insurance policies with a total face amount of no less than $2,500,000 of the stated death benefit.

The following table includes information about these agreements:

	December 31,
	2017		2016
	(In Thousands)
Total undiscounted death benefits (1)	$	2,424	$	4,208
Total accrued death benefits (1)	$	2,533	$	4,007

Total undiscounted executive benefits	$	191	$	201
Total accrued executive benefits	$	191	$	168

	December 31,
	2017		2016			2015
	(In Thousands)
Costs (recovery of costs) associated with executive benefits included in SG&A, net (2)	$	9	$	(341	)	$	(561	)

(1)

See discussion concerning the termination of a 1981 Agreement during 2017 and the sale of certain life insurance policies during 2016 in Note 17 – Related Party Transactions. In addition, we also surrendered certain life insurance policies on former employees for the policies’ cash value during 2016.

(2)

During 2016 and 2015, the employment of certain executives, subject to the provisions of the 1981 and 1992 Agreements, were terminated, resulting in the forfeiture of the respective benefits. As a result of these events, the accrual for these estimated benefits was derecognized resulting in a net recovery of costs associated with certain executive benefits.

Accrued death and executive benefits under the above agreements are included in current and noncurrent accrued and other liabilities. We accrue for such liabilities when they become probable and discount the liabilities to their present value.

To assist us in funding the benefit agreements discussed above and for other business reasons, we purchased life insurance policies on various individuals in which we are the beneficiary. Some of these life insurance policies have cash surrender values that we have borrowed against. The net cash surrender values of these policies are included in other assets.

16. Executive Benefit Agreements, Employee Savings Plans and Collective Bargaining Agreements (continued)

The following table summarizes certain information about these life insurance policies.

	December 31,
	2017			2016
	(In Thousands)
Total face value of life insurance policies	$	4,500		$	4,670

Total cash surrender values of life insurance policies	$	1,804		$	2,270
Loans on cash surrender values		(1,482	)		(1,409	)
Net cash surrender values	$	322		$	861

	2017		2016			2015
	(In Thousands)
Cost of life insurance premiums	$	14	$	481		$	1,040
Decreases (increases) in cash surrender values		162		(51	)		(586	)
Net cost of life insurance premiums included in SG&A	$	176	$	430		$	454

Employee Savings Plans - We sponsor a savings plan under Section 401(k) of the Internal Revenue Code under which participation is available to substantially all full-time employees. We do not presently contribute to this plan except for certain employees, which amounts were not material for each of the three years ended December 31, 2017.

Collective Bargaining Agreements - As of December 31, 2017, we employed 569 persons, 166 of whom are represented by unions under agreements, which will expire in July of 2018 through November of 2019.