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. Beginning on January 1, 2022, the maximum match contribution increased to 5% of the employee’s eligible wages. The employer matching contribution expense under the 401(k) Plan was $10.1 million, $8.2 million and $7.1 million in the fiscal years ended December 31, 2021, 2020 and 2019, 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.

The tables below set forth the Company’s estimated funded status as of December 31, 2021 and 2020:


(In thousands)	2021		2020
Change in benefit obligation:
Benefit obligation at beginning of year	$	7,278	$	6,946
Service cost	35		31
Interest cost	28		37
Actuarial (gain) loss	547		137
Benefits paid	(455)		(322)


Foreign exchange impact	(383)		449
Benefit obligation at end of year	7,050		7,278
Change in plan assets:
Fair value of plan assets at beginning of year	1,042		910
Return on plan assets	16		31
Employer contributions	74		73
Benefits paid	(157)		(41)
Foreign exchange impact	(6)		69
Fair value of plan assets at end of year	969		1,042
Funded status:
Plan assets less than benefit obligation - Net amount recognized	$	(6,081)	$	(6,236)

Amounts recognized in the consolidated balance sheets consist of:


(In thousands)	2021		2020
Noncurrent liability	$	(6,081)	$	(6,236)
Accumulated other comprehensive loss, net of taxes	1,222		840

Amounts recognized in accumulated other comprehensive loss, (pre-tax):


(In thousands)	2021		2020
Net actuarial loss	$	1,195	$	713
Prior service cost	422		454
Gross amount recognized	$	1,617	$	1,167

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


(In thousands)	2021		2020
Projected benefit obligation	$	7,050	$	7,278
Accumulated benefit obligation	5,995		6,480
Fair value of plan assets	969		1,042

The components of the net periodic benefit cost for the years ended December 31, 2021, 2020 and 2019 were as follows:


(In thousands)	2021		2020		2019
Pension benefits:
Service cost	$	35	$	31	$	26
Interest cost	28		37		54
Expected return on plan assets	(12)		(15)		(16)
Curtailments	—		—		95
Settlements	—		21		—
Amortization of prior service cost	38		36		67
Amortization of plan loss	41		38		17
Net periodic pension benefit cost	$	130	$	148	$	243

Assumptions used in determining the benefit obligation and net periodic benefit cost for the Company’s pension plans for the years ended December 31, 2021, 2020 and 2019 are presented in the following table as weighted-averages:


	2021		2020		2019
Benefit obligations:
Discount rate	0.47	%	0.39	%	0.53	%
Rate of compensation increase	3.94	%	2.33	%	2.91	%
Net periodic benefit cost:
Discount rate	0.70	%	0.98	%	1.29	%
Rate of compensation increase	2.51	%	2.33	%	3.51	%
Expected return on plan assets	1.32	%	1.82	%	1.51	%

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, 2021, the majority of the Company’s pension plan assets were 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.

The fair value measurements of the Company’s pension plan assets at December 31, 2021, 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)	$	712	$	712	—	—
Germany plan assets (b)	257		257		—	—
	$	969	$	969	—	—

(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.

The fair value measurements of the Company’s pension plan assets at December 31, 2020, 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)	$	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.