Employee Benefit Plans

12 Months Ended

Dec. 31, 2016

Employee Benefit Plans

Employee Benefit Plans

Note 13. Employee Benefit Plans

(a)          Defined Contribution Plan

The Company maintains the Axcelis Long-Term Investment Plan, a defined contribution plan. All regular employees are eligible to participate and may contribute up to 35% of their compensation on a before-tax basis subject to Internal Revenue Service (“IRS”) limitations. Highly compensated employees may contribute up to 16% of their compensation on a before-tax basis subject to IRS limitations. In 2015, the Company implemented a matching contribution of up to one thousand U.S. dollars on a dollar-for-dollar basis on contributions by eligible participants. In 2016, the Company increased the matching contribution to a maximum of one thousand two hundred U.S. dollars, on the basis of one dollar matched for each two dollars contributed by eligible participants. Total related expense for 2016 and 2015 was $0.4 million.

(b)          Other Compensation Plans

The Company operates in foreign jurisdictions that require lump sum benefits, payable based on statutory regulations, for voluntary or involuntary termination. Where required, an annual actuarial valuation of the benefit plans is obtained.

The Company has recorded an unfunded liability of $4.0 million and $3.9 million at December 31, 2016 and 2015, respectively, for costs associated with these compensation plans in foreign jurisdictions. The following table presents the classification of these liabilities in the Consolidated Balance Sheets:

	Year ended
	December 31,
	2016		2015
	(in thousands)
Current:
Accrued compensation	$	902	$	857
Total current liabilities	$	902	$	857
Long-term:
Other long-term liabilities		3,057		3,052
Total liabilities	$	3,959	$	3,909

The expense recorded in connection with these plans was $0.8 million, $0.7 million and $0.7 million during the years ended December 31, 2016, 2015 and 2014, respectively.