Note 15 International Retirement Plan

The Company sponsors a non-contributory defined benefit pension plan for certain employees of a non-U.S. subsidiary initiated by a predecessor of the subsidiary. The Company maintains insurance contracts that provide an annuity that is used to fund the current obligations under this plan. The net present value of that annuity was $3,144 and $2,819 as of December 31, 2013 and 2012, respectively. The net present value of that annuity is included in “Other assets, net” on the Company’s consolidated balance sheets at December 31, 2013 and 2012. The following table provides a reconciliation of the changes in the projected benefit obligation for the years ended December 31, 2013 and 2012:


(in thousands)	2013		2012
Reconciliation of benefit obligations:
Obligations as of January 1	$	5,240	$	3,936
Service cost		144		92
Interest cost		198		191
Actuarial loss		246		1,030
Benefit payments		(122)		(98)
Effect of foreign currency exchange rate changes		281		89
Obligations as of December 31		5,987		5,240
Funded status as of December 31 (net of tax benefit)	$	(5,987)	$	(5,240)

The projected benefit obligation in the table above includes $246 and $1,030 of unrecognized net loss for the years ended December 31, 2013 and 2012, respectively. At December 31, 2013, the Company recorded the $246 loss, net of a $78 tax benefit, as a $168 adjustment to “Accumulated other comprehensive income” in accordance with ASC 715, “Compensation – Retirement Benefits.” At December 31, 2012, the Company recorded the $1,030 loss, net of a $316 tax benefit, as a $714 adjustment to “Accumulated other comprehensive income” in accordance with ASC 715, “Compensation – Retirement Benefits.”

The Company has recognized the following amounts in the consolidated balance sheets at December 31, 2013 and 2012:


(in thousands)	2013		2012
Accrued liabilities	$	127	$	101
Other liabilities		5,860		5,139
Projected benefit obligation		5,987		5,240
Accumulated other comprehensive income		(1,076)		(908)
Total	$	4,911	$	4,332

The following projected benefit obligation and accumulated benefit obligation were estimated as of December 31, 2013 and 2012:


(in thousands)	2013		2012
Projected benefit obligation	$	5,987	$	5,240
Accumulated benefit obligation	$	5,553	$	4,840

The following table shows the components of net periodic benefit costs and other amounts recognized in other comprehensive income:


(in thousands)	2013		2012
Net periodic benefit cost:
Service cost	$	144	$	92
Interest cost		198		191
Amortization of actuarial loss		55		—
Total	$	397	$	283
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net loss		168		714
Total expense recognized in net periodic benefit cost and other comprehensive income	$	565	$	997

The following assumptions are used to determine benefit obligations as of December 31:

The following benefit payments, including expected future service cost, are expected to be paid:


(in thousands)
Estimated future benefit payments:
2014	$	153
2015		156
2016		176
2017		179
2018		183
2019-2023		1,224

Discount rate

Rate of compensation