(10)

Employee Benefit Plans

Defined Contribution Plan

The Company has a defined contribution plan that conforms to Section 401(k) of the Internal Revenue Code. Under this plan, employees may contribute a minimum of 1% of their compensation (no maximum) to the Plan. However, the Internal Revenue Code limited contributions to $18,000 (or $24,000 if aged 50 years or older) in 2016 and 2017. No employer matching contributions have been made to the defined contribution plan in 2016 and 2017. On November 1, 2016, the Company merged the Greater Media defined contribution plan into the Company’s defined contribution plan.

Defined Benefit Plan

On November 1, 2016, the Company assumed the frozen Greater Media defined benefit plan (”Pension Plan”). The projected benefit obligation in excess of the fair value of plan assets of $4.0 million is reported in other long-term liabilities in the balance sheet as of December 31, 2016. The discount rate is based on matching the projected cash flows of the plan to the Citigroup Pension Discount Curve. The mortality assumptions are based on the RP-2014 Mortality Tables using the MP-2014 and MP-2016 Mortality Improvement Scales for 2016 and 2017. Effective May 31, 2017, the Company terminated the Pension Plan. The investment policy is to maximize the expected return on plan assets while maintaining an acceptable level of risk. The target asset allocation for the pension plan is currently set as follows: 65% fixed income, 35% cash. Plan assets are invested in mutual funds and fair value is based on quoted prices in active markets for identical funds (Level 1). The long-term rate of return on plan assets was selected based on input from the investment advisor and publicly available survey information on expected returns by asset class. No contributions were made to the Pension Plan in 2016 or 2017. In December 2017, lump sum payments were made from the trust to participants who elected to receive a lump sum payment. In January 2018, a payment of $52.0 million was made from the trust to an insurance company to purchase annuities for the remaining participants who elected to receive annuity payments. The Company contributed $0.2 million to the Pension Plan in January 2018.

Supplemental Employee Retirement Plan

On November 1, 2016, the Company assumed the frozen Greater Media supplemental employee retirement plan (“SERP”). The $8.8 million and $9.6 million benefit obligations related to the SERP are reported in other long-term liabilities in the balance sheet as of December 31, 2016 and 2017, respectively. The discount rate is based on matching the projected cash flows of the plan to the Citigroup Pension Discount Curve. The mortality assumptions are based on the RP-2014 Mortality Tables using the MP-2014 and MP-2016 Mortality Improvement Scales for 2016 and 2017. The Company contributed $0.3 million to the SERP in 2017.

Postretirement Medical and Life Insurance Benefits

On November 1, 2016, the Company assumed the frozen Greater Media postretirement medical and life insurance benefits plan (“Postretirement Benefits”). The $1.8 million benefit obligation related to Postretirement Benefits is reported in other long-term liabilities in the balance sheet as of December 31, 2016. The discount rate is based on matching the projected cash flows of the plan to the Citigroup Pension Discount Curve. The mortality assumptions are based on the RP-2014 Mortality Tables using the MP-2014 and MP-2016 Mortality Improvement Scales for 2016 and 2017. The plan was not impacted by the healthcare cost trend assumption because the reimbursements to retirees are fixed amounts. Effective May 31, 2017, the Company terminated the Postretirement Benefits and reversed the accrued liability of $1.8 million which is reported on a separate line in the consolidated statements of comprehensive income for the year ended December 31, 2017.

The following tables summarize the Pension Plan, SERP and Postretirement Benefits as of December 31, 2017:


	Pension Plan			SERP			Postretirement Benefits
Change in Projected Benefit Obligation
Benefit obligation at beginning of year	$	87,861,806		$	8,751,848		$	1,756,423
Service cost		—			—			11,860
Interest cost		2,958,903			340,262			26,269
Amendments		—			—			(1,678,920	)
Actuarial (gain) loss		(2,426,328	)		836,680			(67,772	)
Settlements		(33,447,301	)		—			—
Benefits paid		(2,749,560	)		(312,088	)		(47,860	)

Benefit obligation at end of year	$	52,197,520		$	9,616,702		$	—

	Pension Plan			SERP			Postretirement Benefits
Change in Plan Assets
Fair value of plan assets at beginning of year	$	83,868,508		$	—		$	—
Actual return on plan assets		4,531,725			—			—
Employer contribution		—			312,088			47,860
Settlements		(33,447,301	)		—			—
Benefits paid		(2,749,560	)		(312,088	)		(47,860	)

Fair value of plan assets at end of year	$	52,203,372		$	—		$	—

Funded Status	$	5,852		$	(9,616,702	)	$	—
Unrecognized net actuarial (gain) loss		(992,724	)		421,264			—

Cumulative employer contributions in excess of the net periodic pension cost	$	(986,872	)	$	(9,195,438	)	$	—


	Pension Plan			SERP			Postretirement Benefits
Amounts Recognized in the Statement of Financial Position
Noncurrent assets	$	5,852		$	—		$	—
Current liabilities		—			(505,169	)		—
Noncurrent liabilities		—			(9,111,533	)		—

Net amount recognized	$	5,852		$	(9,616,702	)	$	—


	Pension Plan			SERP			Postretirement Benefits
Amounts Recognized in Accumulated Other Comprehensive Income
Net actuarial loss (gain)	$	(992,724	)	$	421,264		$	—

Total (before tax effects)	$	(992,724	)	$	421,264		$	—


	Pension Plan			SERP			Postretirement Benefits
Information for Pension Plans with an Accumulated Benefit Obligation in excess of Plan Assets
Projected benefit obligation	$	52,197,520		$	9,616,702		$	—
Accumulated benefit obligation	$	52,197,520		$	9,616,702		$	—
Fair value of plan assets	$	52,203,372		$	—		$	—

	Pension Plan			SERP			Postretirement Benefits
Weighted-average assumptions for Disclosure
Discount rate		1.80	%		3.35	%		3.75	%
Rate of compensation increase		N/A			N/A			N/A
Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income

	Pension Plan			SERP			Postretirement Benefits
Net periodic benefit cost
Service cost	$	—		$	—		$	11,860
Interest cost		2,958,903			340,262			26,269
Expected return on plan assets		(3,562,150	)		—			—
Recognized actuarial (gain) loss		—			—			(2,079	)
Curtailment charge (credit)		—			—			(1,678,920	)
Recognized actuarial (gain) loss due to settlements		(636,121	)		—			(169,089	)

Net periodic benefit cost	$	(1,239,368	)	$	340,262		$	(1,811,959	)


	Pension Plan			SERP			Postretirement Benefits
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income
Net actuarial (gain) loss	$	(3,395,903	)	$	836,680		$	(67,772	)
Recognized actuarial (gain) loss		—			—			2,079
Prior service cost (credit)		—			—			(1,678,920	)
Prior service cost (credit) due to curtailment		—			—			1,678,920
Recognized actuarial (gain) loss due to settlements		636,121			—			169,089

Total recognized in other comprehensive income (before tax effects)	$	(2,759,782	)	$	836,680		$	103,396

Total recognized in net benefit cost and other comprehensive income (before tax effects)	$	(3,999,150	)	$	1,176,942		$	(1,708,563	)


	Pension Plan			SERP			Postretirement Benefits
Amounts Expected to be Recognized in Net Periodic Cost in the Coming Year
(Gain) loss recognition	$	(992,724	)	$	—		$	—
Prior service cost recognition	$	—		$	—		$	—
Net initial obligation (asset) recognition	$	—		$	—		$	—

	Pension Plan			SERP			Postretirement Benefits
Weighted-average assumptions used to determine Net Periodic Benefit Cost
Discount rate		3.59	%		3.80	%		4.00	%
Expected return on plan assets		7.00	%		N/A			N/A
Rate of compensation increase		N/A			N/A			N/A
Corridor		10.00	%		10.00	%		10.00	%

	Pension Plan			SERP			Postretirement Benefits
Weighted-Average Assets Allocation
Fixed income		65.40	%		N/A			N/A
Cash equivalents		34.60	%		N/A			N/A

Total		100.00	%		N/A			N/A


	Pension Plan			SERP			Postretirement Benefits
Asset Category (all Level 1)
Fixed income funds		34,141,339			N/A			N/A
Money market funds		18,062,033			N/A			N/A

Total		52,203,372			N/A			N/A

Estimated Future Benefit Payments
2018	$	52,237,000		$	505,169		$	—
2019	$	—		$	515,688		$	—
2020	$	—		$	511,503		$	—
2021	$	—		$	536,062		$	—
2022	$	—		$	532,639		$	—
2023-2027	$	—		$	2,825,601		$	—
	Pension Plan			SERP			Postretirement Benefits
Contributions
Estimated contributions for 2018	$	200,000		$	505,169		$	—

The following tables summarize the Pension Plan, SERP and Postretirement Benefits as of December 31, 2016:



	Pension Plan			SERP			Postretirement Benefits
Change in Projected Benefit Obligation
Benefit obligation at beginning of year	$	—		$	—		$	—
Service cost		—			—			8,169
Interest cost		530,839			51,696			11,097
Plan participants’ contributions		—			—			1,939
Actuarial (gain) loss		(965,046	)		(415,416	)		(103,396	)
Business combinations		88,705,097			9,154,118			1,859,010
Benefits paid		(409,084	)		(38,550	)		(20,396	)

Benefit obligation at end of year	$	87,861,806		$	8,751,848		$	1,756,423


	Pension Plan			SERP			Postretirement Benefits
Change in Plan Assets
Fair value of plan assets at beginning of year	$	—		$	—		$	—
Actual return on plan assets		(1,731,372	)		—			—
Employer contribution		—			38,550			18,457
Business combinations		86,008,964			—			—
Plan participants’ contributions		—			—			1,939
Benefits paid		(409,084	)		(38,550	)		(20,396	)

Fair value of plan assets at end of year	$	83,868,508		$	—		$	—

Funded Status	$	(3,993,298	)	$	(8,751,848	)	$	(1,756,423	)
Unrecognized net actuarial (gain) loss		1,767,058			(415,416	)		(103,396	)

Cumulative employer contributions in excess of the net periodic pension cost	$	(2,226,240	)	$	(9,167,264	)	$	(1,859,819	)


	Pension Plan			SERP			Postretirement Benefits
Amounts Recognized in the Statement of Financial Position
Noncurrent assets	$	—		$	—		$	—
Current liabilities		—			(422,656	)		(113,268	)
Noncurrent liabilities		(3,993,298	)		(8,329,192	)		(1,643,155	)

Net amount recognized	$	(3,993,298	)	$	(8,751,848	)	$	(1,756,423	)


	Pension Plan			SERP			Postretirement Benefits
Amounts Recognized in Accumulated Other Comprehensive Income
Net actuarial loss (gain)	$	1,767,058		$	(415,416	)	$	(103,396	)

Total (before tax effects)	$	1,767,058		$	(415,416	)	$	(103,396	)


	Pension Plan			SERP			Postretirement Benefits
Information for Pension Plans with an Accumulated Benefit Obligation in excess of Plan Assets
Projected benefit obligation	$	87,861,806		$	8,751,848		$	—
Accumulated benefit obligation	$	87,861,806		$	8,751,848		$	—
Fair value of plan assets	$	83,868,508		$	—		$	—

	Pension Plan			SERP			Postretirement Benefits
Weighted-average assumptions for Disclosure
Discount rate		3.62	%		3.80	%		4.00	%
Rate of compensation increase		N/A			N/A			N/A

Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income

	Pension Plan			SERP			Postretirement Benefits
Net periodic benefit cost
Service cost	$	—		$	—		$	8,169
Interest cost		530,839			51,696			11,097
Expected return on plan assets		(1,000,732	)		—			—

Net periodic benefit cost	$	(469,893	)	$	51,696		$	19,266


	Pension Plan			SERP			Postretirement Benefits
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income
Net actuarial (gain) loss	$	1,767,058		$	(415,416	)	$	(103,396	)

Total recognized in other comprehensive income (before tax effects)	$	1,767,058		$	(415,416	)	$	(103,396	)

Total recognized in net benefit cost and other comprehensive income (before tax effects)	$	1,297,165		$	(363,720	)	$	(84,130	)


	Pension Plan			SERP			Postretirement Benefits
Amounts Expected to be Recognized in Net Periodic Cost in the Coming Year
(Gain) loss recognition	$	—		$	—		$	—
Prior service cost recognition	$	—		$	—		$	—
Net initial obligation (asset) recognition	$	—		$	—		$	—

	Pension Plan			SERP			Postretirement Benefits
Weighted-average assumptions used to determine Net Periodic Benefit Cost
Discount rate		3.60	%		3.40	%		3.60	%
Expected return on plan assets		7.00	%		N/A			N/A
Rate of compensation increase		N/A			N/A			N/A
Corridor		10.00	%		10.00	%		10.00	%

	Pension Plan			SERP			Postretirement Benefits
Weighted-Average Assets Allocation
Equity securities		28.92	%		N/A			N/A
Fixed income		71.08	%		N/A			N/A

Total		100.00	%		N/A			N/A

Pension Plan

SERP

Postretirement
Benefits

Asset Category (all Level 1)

U.S. equity funds

8,764,507

N/A

International equity funds

15,489,743

N/A

Fixed income funds

59,614,258

N/A

Total

83,868,508

N/A