BENEFIT PLANS

401(k) Plan The Company maintains the Entegris, Inc. 401(k) Savings and Profit Sharing Plan (the 401(k) Plan) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the Plan, eligible employees may defer a portion of their pre-tax wages, up to the Internal Revenue Service annual contribution limit. Entegris matches employees’ contributions to a maximum match of 4% of the employee’s eligible wages. The employer matching contribution expense under the Plan was $3.2 million, $3.0 million and $3.2 million in the fiscal years ended December 31, 2013, 2012 and 2011, respectively.

Defined Benefit Plans The employees of the Company’s subsidiaries in Japan, Taiwan and Germany are covered in defined benefit pension plans. The Company uses a December 31 measurement date for its pension plans.

The tables below set forth the Company’s estimated funded status as of December 31, 2013 and 2012:



(In thousands)	2013			2012
Change in benefit obligation:
Benefit obligation at beginning of year	$	12,607		$	16,364
Service cost	98			89
Interest cost	122			163
Actuarial gain	(158		)	367
Benefits paid	(1,072		)	(3,329		)
Foreign exchange impact	(1,742		)	(1,047		)
Benefit obligation at end of year	9,855			12,607
Change in plan assets:
Fair value of plan assets at beginning of year	382			357
Return on plan assets	5			4
Employer contributions	9			8
Foreign exchange impact	(12		)	13
Fair value of plan assets at end of year	384			382
Funded status:
Plan assets less than benefit obligation - Net amount recognized	$	(9,471	)	$	(12,225	)

Amounts recognized in the consolidated balance sheets consist of:



(In thousands)	2013			2012
Noncurrent liability	$	(9,471	)	$	(12,225	)
Accumulated other comprehensive loss, net of taxes	857			1,059

Amounts recognized in accumulated other comprehensive loss, net of tax consist of:



(In thousands)	2013			2012
Net actuarial loss	$	811		$	1,028
Prior service cost	259			287
Unrecognized transition obligation	(11		)	(12		)
Gross amount recognized	1,059			1,303
Deferred income taxes	(202		)	(244		)
Net amount recognized	$	857		$	1,059

Information for pension plans with an accumulated benefit obligation in excess of plan assets:



(In thousands)	2013		2012
Projected benefit obligation	$	9,855	$	12,607
Accumulated benefit obligation	8,651		11,293
Fair value of plan assets	384		382

The components of the net periodic benefit cost for the years ended December 31, 2013, 2012 and 2011 are as follows:



(In thousands)	2013			2012			2011
Pension benefits:
Service cost	$	98		$	89		$	1,268
Interest cost	122			163			290
Expected return on plan assets	(7		)	(7		)	(65		)
Amortization of prior service cost	19			19			126
Amortization of net transition obligation	(1		)	(1		)	(1		)
Amortization of plan loss	219			20			49
Recognized actuarial net loss	8			1			1
Acquisition	—			—			16
Curtailments	—			—			(726		)
Net periodic pension benefit cost	$	458		$	284		$	958

The estimated amount that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2014 is as follows:



(In thousands)
Transition obligation	$	(1	)
Prior service cost	19
Net actuarial loss	29
	$	47

Assumptions used in determining the benefit obligation and net periodic benefit cost for the Company’s pension plans for the years ended December 31, 2013, 2012 and 2011 are presented in the following table as weighted-averages:



	2013		2012		2011
Benefit obligations:
Discount rate	1.23	%	1.19	%	1.40	%
Rate of compensation increase	4.10	%	4.18	%	4.22	%
Net periodic benefit cost:
Discount rate	1.41	%	1.80	%	1.38	%
Rate of compensation increase	2.01	%	2.84	%	5.14	%
Expected return on plan assets	0.70	%	1.14	%	1.52	%

The plans’ expected return on assets as shown above is based on management’s expectations of long-term average rates of return to be achieved by the underlying investment portfolios. In establishing this assumption, management considers historical and expected returns for the asset classes in which the plans are invested, as well as current economic and capital market conditions. The discount rate primarily used by the Company is based on market yields at the valuation date on government bonds as well as the estimated maturity of benefit payments.

Plan Assets

At December 31, 2013 and 2012, the Company’s pension plan assets are deposited in Bank of Taiwan in the form of money market funds, where Bank of Taiwan is the assigned funding vehicle for the statutory retirement benefit.

The fair value measurements of the Company’s pension plan assets at December 31, 2013, by asset category are as follows:



(In thousands)			Quoted prices in active markets for identical assets		Significant observable inputs	Significant unobservable inputs
Asset category	Total		(Level 1)		(Level 2)	(Level 3)
Taiwan plan assets (a)	$	384	$	384	—	—
	$	384	$	384	—	—


(a)	This category includes investments in the government of Taiwan’s pension fund. The government of Taiwan is responsible for the strategy and allocation of the investment contributions.

The fair value measurements of the Company’s pension plan assets at December 31, 2012, by asset category are as follows:



(In thousands)			Quoted prices in active markets for identical assets		Significant observable inputs	Significant unobservable inputs
Asset category	Total		(Level 1)		(Level 2)	(Level 3)
Taiwan plan assets (a)	$	382	$	382	—	—
	$	382	$	382	—	—


(a)	This category includes investments in the government of Taiwan’s pension fund. The government of Taiwan is responsible for the strategy and allocation of the investment contributions.

Cash Flows

The Company expects to make the following contributions and benefit payments:



(In thousands)	Contributions		Payments
2014	$	9	$	242
2015	—		123
2016	—		195
2017	—		265
2018	—		293
Years 2019-2023	—		2,340