The aggregate principal payment requirements subsequent to December 31, 2015 are as
follows:
{in thousands) Amount
2016 $ 4,120
2017 4,952
2018 5,180
2019 5,416
2020 5,680
2021 and thereafter 184,824
Total $ 210,172
Our practice is to recognize interest and/or penalties related to income tax matters in “Other,
Net” in the Consolidated Statements of Income. We incurred no interest in 2015 and 2014.
We incurred $3,000 and $0 of penalties during the years ended December 31, 2015 and 2014,
respectively.
Note 10 — Debt
Long-term debt as of December 31, 2015 and 2014 consisted of the following:
We had a federal net operating loss in 2015 and 2014 in the amounts of approximately $3.5
and $1.8 million, respectively. The federal tax benefit of the cumulative net operating loss is
approximately $3.3 million which begins to expire in 2032, and is included in deferred
income taxes in the Consolidated Balance Sheet as of December 31, 2015.
Note 9 — Income Taxes
The components of the federal and state income tax provision (benefit) as of December 31,
2015 and 2014 were as follows:
(in thousands) 2015 2014
Federal $ (79) $ 343
State 420 24]
Amortization of investment tax credits G3} (33)
Total $ 308 $ 551
Current $ (1) $ (33)
Deferred 309 584
Total $ 308 $ 551
The following is a reconciliation between the statutory federal income tax rate and the
effective income tax rate for 2015 and 2014:
For assets and liabilities measured at fair value on a recurring basis, the fair value measure-
ment by levels within the fair value hierarchy used as of December 31, 2015 and 2014 were
as follows:
December 31, 2015
(in thousands) Total Level 1 Level 2 Level 3
Assets:
U.S. government bonds $ 17,210 $ 17,210 § - $ -
Liabilities:
Interest rate swap $ (548) § - $ (548) $ -
December 31, 2014
(in thousands) Total Level 1 Level 2 Level 3
Liabilities:
Interest rate swap $ (583) $ - $ (583) § -
Note 7 - Commitments and Contingencies
Operating Leases
We lease our corporate office space as well as certain office equipment under operating lease
agreements. Total rent expense was approximately $307,000 and $315,000 for the years
ended December 31, 2015 and 2014, respectively.
Our remaining non-cancelable lease commitments for our corporate office space and leased
equipment as of December 31, 2015 were as follows:
(in thousands) Amount
2016 $ 301
2017 176
2018 9
2019 and thereafter -
Total $ 486
The following table presents a period-end reconciliation of DB Plan assets measured and
recorded at fair value on a recurring basis, using significant unobservable inputs (Level 3):
(in thousands) 2015 2014
Balance, beginning of year $ 2,625 $ 2,940
Plan transfers 182 (494)
Contributions 187 537
Benefits paid (497) (438)
Return on plan assets (net of investment expenses) 84 80
Balance, end of year $ 2,581 $ 2,625
=—=—_ —aEaE
(continued)
(in thousands) Totals Level 1 Level 2 Level 3
OPEB Plans:
Common stocks 287 287 - >
Mutual funds 104 104
Fixed income funds 185 185 . -
Cash and cash equivalents:
Money market funds 43 - 43 -
Total OPEB Plans 619 576 43 -
Totals $ 14,491 $576 $ 11,334 $ 2,581
The fair value of DB Plan and OPEB Plan assets by levels within the fair value hierarchy
used as of December 31, 2014 was as follows:
The DB Plan also holds assets under an immediate participation guarantee group annuity
contract with a life insurance company. The assets under the contract are invested in pooled
separate accounts and in a general investment account. The pooled separate accounts are
valued based on net asset value per unit of participation in the fund and have no unfunded
commitments or significant redemption restrictions at year-end. The value of these units is
determined by the trustee based on the current market values of the underlying assets of the
The assets of our Post-65 Plan are held in two separate Voluntary Employee Beneficiary
Association (“VEBA”) trusts. We maintain our VEBA plan assets in directed trust accounts
at a commercial bank.
