Defined Benefit Plan
 9 Months Ended
Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]  
Defined Benefit Plan
Defined Benefit Plan
In connection with the acquisition of Arnold, the Company has a defined benefit plan covering substantially all of Arnold’s employees at its Lupfig, Switzerland location. The benefits are based on years of service and the employees’ highest average compensation during the specific period.
The unfunded liability of $4.6 million is recognized in the consolidated balance sheet as a component of other non-current liabilities at September 30, 2016. Net periodic benefit cost consists of the following for the three and nine months ended September 30, 2016 and 2015 (in thousands):

 
Three months ended September 30,
 
Nine months ended September 30,
 
2016
 
2015
 
2016
 
2015
Service cost
$
111

 
$
121

 
$
325

 
$
455

Interest cost
35

 
34

 
103

 
132

Expected return on plan assets
5

 
(282
)
 
15

 
(416
)
Effect of curtailment
—

 
37

 
—

 
(864
)
Net periodic benefit cost
$
151

 
$
(90
)
 
$
443

 
$
(693
)


During the first half of 2016, Arnold recognized an increase in the unfunded pension liability primarily as a result of a decrease in the discount rate used to measure the pension benefit obligation. The discount rate decreased from 1.00% at December 31, 2015 to 0.15% at September 30, 2016, resulting in an increase to the pension benefit obligation at September 30, 2016.
During the three and nine months ended September 30, 2016, per the terms of the pension agreement, Arnold contributed $0.1 million and $0.3 million, respectively, to the plan. For the remainder of 2016, the expected contribution to the plan will be approximately $0.1 million.
The plan assets are pooled with assets of other participating employers and are not separable; therefore the fair values of the pension plan assets at September 30, 2016 were considered Level 3.