2017 Issued Kimley-Horn Financials - Final with Disclaimer

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KIMLEY‐HORN AND ASSOCIATES, INC. NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 AND 2016 (SEE INDEPENDENT ACCOUNTANT’S REVIEW REPORT) 17 Note 10—Other liabilities (continued) The net (gain) loss and prior service costs (credit) that will be amortized from accumulated other comprehensive income into net periodic post-retirement benefits cost over the next fiscal year are $26,939 and ($1,692), respectively. The accumulated post-retirement benefit obligation was determined using a discount rate of 3.24% and 3.65% for 2017 and 2016, respectively. The assumed healthcare cost trend rate for 2017 is 7.0%, decreasing by 0.1% in each future year to 5.0% for 2028 and remaining at that level thereafter. Increasing the assumed healthcare cost trend rates by one percentage point would increase the accumulated post-retirement benefit obligation as of December 31, 2017 by approximately $124,000. The benefits projected to be paid from the post-retirement benefit plan in each year 2018 - 2022 are approximately $79,000, $81,000, $83,000, $85,000, and $86,000, respectively. The aggregate benefits projected to be paid in the five years from 2023 - 2027 are approximately $432,000. The projected benefits are based on the same assumptions used to measure the Company’s benefit obligation as of December 31. Note 11—Concentrations of credit risk The Company places its cash and cash equivalents on deposit with financial institutions in the United States. The Federal Deposit Insurance Corporation covers $250,000 for all interest-bearing deposit accounts. During the year, the Company may have had amounts on deposit in excess of the insured limits. The cash balances are maintained at financial institutions with high credit quality ratings and the Company believes no significant risk of loss exists with respect to those balances. Note 12—Commitments and contingencies The Company has a Health Insurance Continuation Plan, which allows certain principals to continue their group health coverage under the Company’s existing group health plan. Participants pay the cost of health insurance premiums for this coverage. Note 13—Subsequent events The Company has evaluated subsequent events through March 13, 2018, the date these financial statements were available to be issued, and has determined there are no subsequent events that require disclosure.