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 $4.4 million, $3.2 million and $3.0 million in the fiscal years ended December 31, 2014, 2013 and 2012, 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, 2014 and 2013:



(In thousands)	2014			2013
Change in benefit obligation:
Benefit obligation at beginning of year	$	9,855		$	12,607
Service cost	64			98
Interest cost	111			122
Actuarial loss (gain)	336			(158		)
Benefits paid	(922		)	(1,072		)
Foreign exchange impact	(962		)	(1,742		)
Benefit obligation at end of year	8,482			9,855
Change in plan assets:
Fair value of plan assets at beginning of year	384			382
Return on plan assets	9			5
Employer contributions	9			9
Foreign exchange impact	(22		)	(12		)
Fair value of plan assets at end of year	380			384
Funded status:
Plan assets less than benefit obligation - Net amount recognized	$	(8,102	)	$	(9,471	)

Amounts recognized in the consolidated balance sheets consist of:



(In thousands)	2014			2013
Noncurrent liability	$	(8,102	)	$	(9,471	)
Accumulated other comprehensive loss, net of taxes	1,007			857

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



(In thousands)	2014			2013
Net actuarial loss	$	1,043		$	811
Prior service cost	227			259
Unrecognized transition obligation	(9		)	(11		)
Gross amount recognized	1,261			1,059
Deferred income taxes	(254		)	(202		)
Net amount recognized	$	1,007		$	857

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



(In thousands)	2014		2013
Projected benefit obligation	$	8,482	$	9,855
Accumulated benefit obligation	7,180		8,651
Fair value of plan assets	380		384

The components of the net periodic benefit cost for the years ended December 31, 2014, 2013 and 2012 were as follows:



(In thousands)	2014			2013			2012
Pension benefits:
Service cost	$	64		$	98		$	89
Interest cost	111			122			163
Expected return on plan assets	(8		)	(7		)	(7		)
Amortization of prior service cost	18			19			19
Amortization of net transition obligation	(1		)	(1		)	(1		)
Amortization of plan loss	22			219			20
Recognized actuarial net loss	7			8			1
Acquisition	—			—			—
Curtailments	—			—			—
Net periodic pension benefit cost	$	213		$	458		$	284

The estimated amount that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2015 is as follows:



(In thousands)
Transition obligation	$	(1	)
Prior service cost	17
Net actuarial loss	44
	$	60

Assumptions used in determining the benefit obligation and net periodic benefit cost for the Company’s pension plans for the years ended December 31, 2014, 2013 and 2012 are presented in the following table as weighted-averages:



	2014		2013		2012
Benefit obligations:
Discount rate	1.13	%	1.23	%	1.19	%
Rate of compensation increase	4.41	%	4.10	%	4.18	%
Net periodic benefit cost:
Discount rate	1.83	%	1.41	%	1.80	%
Rate of compensation increase	3.38	%	2.01	%	2.84	%
Expected return on plan assets	1.35	%	0.70	%	1.14	%

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, 2014 and 2013, the Company’s pension plan assets are deposited in Bank of Taiwan in the form of money market funds, where the 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, 2014, 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)	$	380	$	380	—	—
	$	380	$	380	—	—


(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, 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.

Cash Flows

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



(In thousands)	Contributions		Payments
2015	$	9	$	195
2016	—		129
2017	—		239
2018	—		264
2019	—		216
Years 2019-2023	—		2,297