Employee Benefit Plans

12 Months Ended

Dec. 31, 2017

Employee Benefit Plans

Employee Benefit Plans

Note 10. 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 $1,200, on the basis of one dollar matched for each two dollars contributed by eligible participants. In 2017, the Company increased the matching contribution to 50% of employees’ pre-tax contributions on the first 6% of eligible compensation contributed to the plan. Total related expense was $0.5 million, $0.4 million and $0.4 million, for 2017, 2016 and 2015, respectively.

(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 $4.6 million and $4.0 million at December 31, 2017 and 2016, 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,
	2017		2016
	(in thousands)
Current:
Accrued compensation	$	967	$	902
Total current liabilities	$	967	$	902
Long-term:
Other long-term liabilities		3,583		3,057
Total liabilities	$	4,550	$	3,959

The expense recorded in connection with these plans was $1.0 million, $0.8 million and $0.7 million during the years ended December 31, 2017, 2016 and 2015, respectively.