NOTE 11—EMPLOYEE BENEFIT PLANS

The Company sponsors frozen non-contributory qualified and non-qualified defined benefit pension plans generally covering all employees who, prior to the freeze, were age 21 or older and had completed at least 1,000 hours of service in their first twelve months of employment, or in a calendar year ending thereafter, and who were not covered by a collective bargaining agreement. The Company also offered eligible retirees the opportunity to participate in a health plan. Certain employees were eligible for subsidized postretirement medical benefits. The eligibility for these benefits was based upon a participant's age and service as of January 1, 2009. The Company also sponsors a postretirement deferred compensation plan.

On December 31, 2013, the Company's Board of Directors approved revisions to the Company's Postretirement Medical and Life Insurance Plan effective April 1, 2014 and the changes were communicated to the plan participants. As a result of these revisions, the Company recorded a prior service credit of approximately $15,197,000 through other comprehensive income to be amortized over nine years starting in calendar 2014, based on expected future service of the remaining participants.

On January 12, 2015, the Compensation Committee and the Board of Directors of Holdings, adopted resolutions to terminate the AMC Postretirement Medical Plan with an effective date of March 31, 2015. During the three months ended March 31, 2015, the Company notified eligible associates that their retiree medical coverage under the plan will terminate after March 31, 2015. Payments to eligible associates were approximately $4,300,000 during the twelve months ended December 31, 2015. The Company recorded net periodic benefit credits of $18,118,000, including curtailment gains, settlement gains, amortization of unrecognized prior service credits, and amortization of actuarial gains recorded in accumulated other comprehensive income related to the termination and settlement of the plan during the twelve months ended December 31, 2015.

The measurement dates used to determine pension and other postretirement benefits were December 31, 2015, December 31, 2014, and December 31, 2013.

Net periodic benefit cost for the plans consists of the following:

	Pension Benefits									Other Benefits
(In thousands)	12 Months Ended December 31, 2015			12 Months Ended December 31, 2014			12 Months Ended December 31, 2013			12 Months Ended December 31, 2015			12 Months Ended December 31, 2014			12 Months Ended December 31, 2013
Components of net periodic benefit cost:
Service cost	$	—		$	—		$	180		$	2		$	36		$	195
Interest cost		4,277			4,609			4,513			7			214			870
Expected return on plan assets		(4,666	)		(5,230	)		(4,707	)		—			—			—
Amortization of net (gain) loss		45			(1,034	)		—			(2,797	)		(348	)		(78	)
Amortization of prior service credit		—			—			—			(2,888	)		(1,665	)		—
Curtailment gain		—			—			—			(11,867	)		—			—
Settlement		254			—			—			(575	)		—			—

Net periodic benefit cost (credit)	$	(90	)	$	(1,655	)	$	(14	)	$	(18,118	)	$	(1,763	)	$	987

The following table summarizes the changes in other comprehensive income:

	Pension Benefits						Other Benefits
(In thousands)	12 Months Ended December 31, 2015			12 Months Ended December 31, 2014			12 Months Ended December 31, 2015			12 Months Ended December 31, 2014
Net (gain) loss	$	(345	)	$	21,641		$	73		$	561
Prior service credit		—			—			(1,223	)		—
Amortization of net gain		(45	)		1,034			2,797			348
Amortization of prior service credit		—			—			2,888			1,665
Curtailment		—			—			11,867			—
Settlement		(254	)		—			575			—
Allocated tax expense (benefit)		251			(8,843	)		(6,620	)		(1,003	)

Total recognized in other comprehensive (income) loss	$	(393	)	$	13,832		$	10,357		$	1,571
Net periodic benefit cost (credit)		(90	)		(1,655	)		(18,118	)		(1,763	)

Total recognized in net periodic benefit cost (credit) and other comprehensive (income) loss	$	(483	)	$	12,177		$	(7,761	)	$	(192	)

The following tables set forth the plan's change in benefit obligations and plan assets and the accrued liability for benefit costs included in the Consolidated Balance Sheets:

	Pension Benefits						Other Benefits
(In thousands)	12 Months Ended December 31, 2015			12 Months Ended December 31, 2014			12 Months Ended December 31, 2015			12 Months Ended December 31, 2014
Change in benefit obligation:
Benefit obligation at beginning of period	$	113,955		$	98,883		$	5,686		$	5,718
Service cost		—			—			2			36
Interest cost		4,277			4,609			7			214
Plan participants' contributions		—			—			101			419
Actuarial (gain) loss		(6,152	)		23,532			73			561
Plan amendment		—			—			(1,223	)		—
Benefits paid		(4,665	)		(2,247	)		(357	)		(1,262	)
Administrative expenses		(106	)		(81	)		—			—
Settlement paid		(296	)		(7,166	)		(4,289	)		—
Settlement gain		(44	)		(3,575	)		—			—

Benefit obligation at end of period	$	106,969		$	113,955		$	—		$	5,686

	Pension Benefits						Other Benefits
(In thousands)	12 Months Ended December 31, 2015			12 Months Ended December 31, 2014			12 Months Ended December 31, 2015			12 Months Ended December 31, 2014
Change in plan assets:
Fair value of plan assets at beginning of period	$	70,424		$	73,658		$	—		$	—
Actual return on plan assets (loss) gain		(1,184	)		3,546			—			—
Employer contribution		448			2,714			4,545			843
Plan participants' contributions		—			—			101			419
Benefits paid		(4,665	)		(2,247	)		(357	)		(1,262	)
Administrative expense		(106	)		(81	)		—			—
Settlement paid		(296	)		(7,166	)		(4,289	)		—

Fair value of plan assets at end of period	$	64,621		$	70,424		$	—		$	—


Net liability for benefit cost:
Funded status	$	(42,348	)	$	(43,531	)	$	—		$	(5,686	)

	Pension Benefits						Other Benefits
(In thousands)	December 31, 2015			December 31, 2014			December 31, 2015		December 31, 2014
Amounts recognized in the Balance Sheet:
Accrued expenses and other liabilities	$	(152	)	$	(152	)	$	—	$	(629	)
Other long-term liabilities		(42,196	)		(43,379	)		—		(5,057	)

Net liability recognized	$	(42,348	)	$	(43,531	)	$	—	$	(5,686	)


Aggregate accumulated benefit obligation	$	(106,969	)	$	(113,955	)	$	—	$	(5,686	)

The following table summarizes pension plans with accumulated benefit obligations and projected benefit obligations in excess of plan assets:

	Pension Benefits
(In thousands)	December 31, 2015			December 31, 2014
Aggregated accumulated benefit obligation	$	(106,969	)	$	(113,955	)
Aggregated projected benefit obligation		(106,969	)		(113,955	)
Aggregated fair value of plan assets		64,621			70,424

Amounts recognized in accumulated other comprehensive income consist of the following:

	Pension Benefits					Other Benefits
(In thousands)	December 31, 2015			December 31, 2014		December 31, 2015			December 31, 2014
Net actuarial (gain) loss	$	(345	)	$	21,641	$	73		$	561
Prior service credit		—			—		(1,223	)		—

Amounts in accumulated other comprehensive income expected to be recognized in components of net periodic pension cost during the calendar year 2016 are as follows:

(In thousands)		Pension Benefits
Net actuarial loss		$	27

Actuarial Assumptions

The weighted-average assumptions used to determine benefit obligations are as follows:

Pension Benefits

Other Benefits

December 31,
2015

December 31,
2014

December 31,
2015

December 31,
2014

Discount rate

4.10

3.80

N/A

3.37

Rate of compensation increase

N/A

The weighted-average assumptions used to determine net periodic benefit cost are as follows:

	Pension Benefits									Other Benefits
	12 Months Ended December 31, 2015			12 Months Ended December 31, 2014			12 Months Ended December 31, 2013			12 Months Ended December 31, 2015			12 Months Ended December 31, 2014			12 Months Ended December 31, 2013
Discount rate		3.80	%		4.73	%		4.17	%		3.37	%		4.00	%		3.90	%
Weighted average expected long-term return on plan assets		7.81	%		7.81	%		7.27	%		N/A			N/A			N/A
Rate of compensation increase		N/A			N/A			N/A			N/A			N/A			N/A

In developing the expected long-term rate of return on plan assets at each measurement date, the Company considers the plan assets' historical returns, asset allocations, and the anticipated future economic environment and long-term performance of the asset classes. While appropriate consideration is given to recent and historical investment performance, the assumption represents management's best estimate of the long-term prospective return.

At the measurement date of December 31, 2014, the Company selected the new RP-2014 Mortality Tables to measure benefit obligations. As a result of using the updated mortality assumptions, the pension and postretirement medical liabilities increased by approximately $6,658,000.

Cash Flows

The Company does not expect to contribute to the pension plans during the calendar year 2016.

The following table provides the benefits expected to be paid (inclusive of benefits attributable to estimated future employee service) in each of the next five calendar years, and in the aggregate for the five years thereafter:

(In thousands)	Pension Benefits
2016	$	2,790
2017		3,926
2018		3,656
2019		4,238
2020		4,034
Years 2021 - 2025		33,228

Pension Plan Assets

The Company's investment objectives for its defined benefit pension plan investments are: (1) to preserve the real value of its principal; (2) to maximize a real long-term return with respect to the plan assets consistent with minimizing risk; (3) to achieve and maintain adequate asset coverage for accrued benefits under the plan; and (4) to maintain sufficient liquidity for payment of the plan obligations and expenses. The Company uses a diversified allocation of equity, debt, commodity and real estate exposures that are customized to the plan's cash flow benefit needs. The target allocations for plan assets are as follows:

Asset Category	Target Allocation
Fixed(1)		15	%
Equity Securities—U.S.		25	%
Equity Securities—International		15	%
Collective trust fund		25	%
Private Real Estate		15	%
Commodities broad basket		5	%

		100	%


(1)	Includes U.S. Treasury Securities and Bond market fund.

Valuation Techniques. The fair values classified within Level 1 of the valuation hierarchy were determined using quoted market prices from actively traded markets. The fair values classified within Level 2 of the valuation hierarchy included pooled separate accounts and collective trust funds, which valuations were based on market prices for the underlying instruments that were observable in the market or could be derived by observable market data from independent external valuation information.

The fair value of the pension plan assets at December 31, 2015, by asset class is as follows:

			Fair Value Measurements at December 31, 2015 Using
(In thousands)	Total Carrying Value at December 31, 2015		Quoted prices in active market (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash and cash equivalents	$	289	$	289	$	—	$	—
U.S. treasury securities		1,452		1,452		—		—
Equity securities:
U.S. companies		16,884		16,884		—		—
International companies		9,888		9,888		—		—
Bond market fund		8,526		8,526		—		—
Collective trust fund		15,771		—		15,771		—
Commodities broad basket fund		2,823		2,823		—		—
Private real estate		8,988		—		8,988		—

Total assets at fair value	$	64,621	$	39,862	$	24,759	$	—

The fair value of the pension plan assets at December 31, 2014, by asset class is as follows:

			Fair Value Measurements at December 31, 2014 Using
(In thousands)	Total Carrying Value at December 31, 2014		Quoted prices in active market (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash and cash equivalents	$	300	$	300	$	—	$	—
U.S. treasury securities		1,615		1,615		—		—
Equity securities:
U.S. companies		18,513		18,513		—		—
International companies		10,109		10,109		—		—
Bond market fund		9,173		9,173		—		—
Collective trust fund		17,485		—		17,485		—
Commodities broad basket fund		2,918		2,918		—		—
Private real estate		10,311		—		10,311		—

Total assets at fair value	$	70,424	$	42,628	$	27,796	$	—

Defined Contribution Plan

The Company sponsors a voluntary 401(k) savings plan covering certain employees age 21 or older and who are not covered by a collective bargaining agreement. Under the Company's 401(k) Savings Plan, the Company matches 100% of each eligible employee's elective contributions up to 3% and 50% of contributions up to 5% of the employee's eligible compensation. The Company's expense under the 401(k) savings plan was $3,353,000, $2,696,000, and $2,817,000, for the twelve months ended December 31, 2015, December 31, 2014, and December 31, 2013, respectively.

Union-Sponsored Plans

Certain theatre employees are covered by union-sponsored pension and health and welfare plans. Company contributions into these plans are determined in accordance with provisions of negotiated labor contracts. Contributions aggregated $72,000, $207,000, and $265,000, for the twelve months ended December 31, 2015, December 31, 2014, and December 31, 2013, respectively.

As of both December 31, 2015 and December 31, 2014, the Company's liability related to the collectively bargained multiemployer pension plan withdrawals was immaterial.