EMPLOYEE BENEFIT PLANS
 12 Months Ended
Dec. 31, 2014
EMPLOYEE BENEFIT PLANS [Abstract]  
EMPLOYEE BENEFIT PLANS
NOTE 10: EMPLOYEE BENEFIT PLANS

Employee Retirement Plan

Effective May 9, 1997, the Company adopted a Defined Contribution 401(k) and Profit Sharing Plan (the “401(k) Plan”) for its United States and Canada employees. The 401(k) Plan covers all regular full-time and part-time employees who have completed three months of service and attained the age of twenty-one. United States employees can contribute up to 100 percent of their annual compensation but are limited to the maximum annual dollar amount allowable under the Internal Revenue Code. The 401(k) plan permits matching and discretionary employer contributions. The Company’s matching contributions for its United States and Canada employees vest ratably over a five-year period. During the years ended December 31, 2014 and 2013, the Company contributed approximately $0.2 million and $0.1 million, respectively, to the 401(k) Plan for matching contributions.

The Company also sponsors a non-U.S. defined benefit plan covering its employees in its Japan subsidiary (the “Benefit Plan”). Benefits under the Benefit Plan are based on a point system for position grade and years of service. The Company utilizes actuarial methods. Inherent in the application of these actuarial methods are key assumptions, including, but not limited to, discount rates and expected long-term rates of return on plan assets. Changes in the related Benefit Plan costs may occur in the future due to changes in the underlying assumptions, changes in the number and composition of plan participants, and changes in the level of benefits provided. The Company uses a measurement date of December 31 to evaluate and record any post-retirement benefits related to the Benefit Plan.
 

Projected Benefit Obligation and Fair Value of Plan Assets

The Benefit Plan’s projected benefit obligation and valuation of plan assets were as follows for the years ended December 31 (in thousands):

Projected benefit obligation:
 
2014
  
2013
 
Balance, beginning of year
 
$
629
  
$
714
 
Service cost
  
88
   
106
 
Interest cost
  
3
   
6
 
Liability losses
  
(6
)
  
59
 
Benefits paid to participants
  
(122
)
  
(121
)
Special termination benefit
  
34
   
—
 
Prior service cost
  
—
   
—
 
Foreign currency
  
(77
)
  
(135
)
Balance, end of year
 
$
549
  
$
629
 
 
Plan assets:
 
2014
  
2013
 
Fair value, beginning of year
 
$
—
  
$
—
 
Company contributions
  
122
   
121
 
Benefits paid to participants
  
(122
)
  
(121
)
Fair value, end of year
 
$
—
  
$
—
 

Funded status of the Benefit Plan as of December 31 (in thousands):
 
2014
  
2013
 
Benefit obligation
 
$
(549
)
 
$
(629
)
Fair value of plan assets
  
—
   
—
 
Excess of benefit obligation over fair value of plan assets
 
$
(549
)
 
$
(629
)

Amounts recognized in the accompanying Consolidated Balance Sheets consist of, as of December 31 (in thousands):
 
2014
  
2013
 
Accrued benefit liability
 
$
(549
)
 
$
(629
)
Transition obligation and unrealized gain
  
(372
)
  
(458
)
Net amount recognized in the consolidated balance sheets
 
$
(921
)
 
$
(1,087
)

  
Years Ended December 31,
 
Other changes recognized in comprehensive income/loss (in thousands):
 
2014
  
2013
 
Net periodic cost
 
$
85
  
$
64
 
Current year (gain) loss
  
(6
)
  
59
 
Amortization of transition obligation
  
(4
)
  
(4
)
Total recognized in other comprehensive income
  
(10
)
  
55
 
Total recognized in comprehensive income (loss)
 
$
75
  
$
119
 
 
  
As of December 31,
 
Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive gain/loss (in thousands):
 
2014
  
2013
 
Transition obligation
 
$
13
  
$
66
 
Prior service cost
  
353
   
447
 
Net actuarial gain
  
6
   
(55
)
Total recognized in accumulated other comprehensive loss
 
$
372
  
$
458
 

2015 estimated amounts of amortized transition obligation (in thousands):
2015
 
Transition obligation
 
$
(4
)

 
As of December 31,
 
Aggregate Benefit Plan information and accumulated benefit obligation in excess of plan assets (in thousands):
2014
 
2013
 
Projected benefit obligation
 
$
549
  
$
629
 
Accumulated benefit obligation
  
549
   
629
 
Fair value of plan assets
  
—
   
—
 

The weighted-average assumptions to determine the benefit obligation and net cost are as follows:

  
2014
  
2013
 
Discount rate
  
0.50
%
  
0.50
%
Rate of increase in compensation levels
  
—
%   
—
%

Components of Expense

Pension expense for the Benefit Plan is included in selling, general and administrative expenses in the Consolidated Statements of Operations and is comprised of the following for the years ended December 31 (in thousands):

  
2014
  
2013
 
Service cost
 
$
88
  
$
106
 
Interest cost
  
3
   
6
 
Amortization of transition obligation
  
4
   
4
 
Gain
  
—
   
(4
)
Special termination
  
34
   
—
 
Prior service cost
  
(44
)
  
(48
)
Benefit adjustment
  
—
   
—
 
Total pension expense
 
$
85
  
$
64
 

Estimated Benefits and Contributions

The Company expects to contribute approximately $66,000 to the Benefit Plan in 2015. As of December 31, 2014, benefits expected to be paid by the Benefit Plan for the next ten years is approximately as follows (in thousands):

2015
 
$
66
 
2016
  
60
 
2017
  
57
 
2018
  
54
 
2019
  
50
 
Next five years
  
293
 
Total expected benefits to be paid
 
$
580