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EMPLOYEE BENEFIT PLANS
 3 Months Ended
Mar. 31, 2021
EMPLOYEE BENEFIT PLANS  
EMPLOYEE BENEFIT PLANS

10.  EMPLOYEE BENEFIT PLANS

The Company participates in a multiple employer Retirement Income Plan, sponsored by RPC, Inc. (“RPC”). The following represents the net periodic cost (benefit) and related components for the plan for the three months ended March 31, 2021 and 2020.

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Three months ended

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March 31, 

(in thousands)

    

2021

    

2020

Interest cost

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$

37

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$

58

Expected return on plan assets

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(72)

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(73)

Amortization of net losses

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18

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24

Net periodic cost (benefit)

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$

(17)

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$

9

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The Company did not contribute to this plan during the three months ended March 31, 2021 and March 31, 2020.

In October 2020, RPC amended the Retirement Income Plan to add a limited lump-sum payment window for vested terminated participants who had terminated employment before July 1, 2020 and for active employees who reached age 59 ½ by December 1, 2020, with a vested balance. The participants could elect to receive their vested balance immediately as a lump-sum or by initiating monthly annuity payments. The lump-sum payment window offering ended during the fourth quarter of 2020 and plan assets were used to fund participant elections. The resulting non-cash settlement charges represented the accelerated recognition of actuarial losses reflected in accumulated other comprehensive income (AOCI). During the fourth quarter of 2020, a settlement loss of $0.6 million associated with the acceptance of these lump-sum payments was recorded as part of selling, general and administrative expenses in the consolidated statements of operations.

The Company permits selected highly compensated employees to defer a portion of their compensation into a non-qualified Supplemental Executive Retirement Plan (“SERP”). The Company maintains certain securities primarily in mutual funds and company-owned life insurance (“COLI”) policies as a funding source to satisfy the obligation of the SERP that have been classified as trading and are stated at fair value totaling approximately $10,851,000 as of March 31, 2021 and $10,622,000 as of December 31, 2020. Trading gains related to the SERP assets totaled approximately $63,000 during the three months ended March 31, 2021, compared to trading losses of approximately $1,078,000 during the three months ended March 31, 2020. The SERP assets are reported in other non-current assets on the consolidated balance sheets and changes to the fair value of the assets are reported in selling, general and administrative expenses in the consolidated statements of operations.

The SERP liabilities include participant deferrals net of distributions and are stated at fair value of approximately $13,209,000 as of March 31, 2021 and $12,524,000 as of December 31, 2020. The SERP liabilities are reported on the consolidated balance sheets in long-term pension liabilities and any change in the fair value is recorded as compensation cost within selling, general and administrative expenses in the consolidated statements of operations. Changes in the fair value of the SERP liabilities represented unrealized gains of approximately $163,000 during the three months ended March 31, 2021, compared to unrealized losses of approximately $1,427,000 during the three months ended March 31, 2020.