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 401(k)Plan was $8.2 million, $7.1 million and $6.1 million in the fiscal years ended December 31, 2020, 2019 and 2018, respectively.

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.


(In thousands)	2020		2019
Change in benefit obligation:
Benefit obligation at beginning of year	$	6,946	$	7,308
Service cost	31		26
Interest cost	37		54
Actuarial (gain) loss	137		471
Benefits paid	(322)		(636)
Curtailment	—		(346)
Other	—		—
Foreign exchange impact	449		69
Benefit obligation at end of year	7,278		6,946
Change in plan assets:
Fair value of plan assets at beginning of year	910		835
Return on plan assets	31		35
Employer contributions	73		93
Benefits paid	(41)		(63)
Foreign exchange impact	69		10
Fair value of plan assets at end of year	1,042		910
Funded status:
Plan assets less than benefit obligation - Net amount recognized	$	(6,236)	$	(6,036)


(In thousands)	2020		2019
Projected benefit obligation	$	7,278	$	6,946
Accumulated benefit obligation	6,480		6,030
Fair value of plan assets	1,042		910


(In thousands)	2020		2019		2018
Pension benefits:
Service cost	$	31	$	26	$	50
Interest cost	37		54		62
Expected return on plan assets	(15)		(16)		(18)
Curtailments	—		95		—
Settlements	21		—		—
Amortization of prior service cost	36		67		69
Amortization of plan loss	38		17		20
Net periodic pension benefit cost	$	148	$	243	$	183

Assumptions used in determining the benefit obligation and net periodic benefit cost for the Company’s pension plans for the years ended December 31, 2020, 2019 and 2018 are presented in the following table as weighted-averages:


	2020		2019		2018
Benefit obligations:
Discount rate	0.39	%	0.53	%	0.76	%
Rate of compensation increase	2.33	%	2.91	%	3.08	%
Net periodic benefit cost:
Discount rate	0.98	%	1.29	%	1.66	%
Rate of compensation increase	2.33	%	3.51	%	3.18	%
Expected return on plan assets	1.82	%	1.51	%	1.89	%

The pension 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.

At December 31, 2020, the majority of the Company’s pension plan assets are deposited with the 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 remaining portion of the Company’s plan assets is deposited in a German insurance company’s investment fund.


(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)	$	827	$	827	—	—
Germany plan assets (b)	215		215		—	—
	$	1,042	$	1,042	—	—

(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.

(b)This category includes investments in an insurer’s balanced asset fund. The insurer is responsible for the strategy and allocation of the investment contributions. The Company selects a pre-packaged portfolio pooled investment fund that is conservative. The majority of the funds are invested broadly in German mortgage bonds, construction loans and government bonds with good credit ratings.


(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)	$	729	$	729	—	—
Germany plan assets (b)	181		181		—	—
	$	910	$	910	—	—

(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.