Note 12. Employee Benefit Plans

(a) Defined Contribution Plan

We maintain the Axcelis Long-Term Investment Plan, a defined contribution plan. Eligible employees 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, we 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, we 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, we increased the matching contribution to 50% of employees’ pre-tax contributions on the first 6% of eligible compensation contributed to the plan. Total related matching contribution expense was $1.6 million, $1.2 million and $0.5 million, for 2018, 2017 and 2016, respectively.

(b) Other Compensation Plans

We operate 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.

We have recorded an unfunded liability of $4.3 million and $4.6 million at December 31, 2018 and 2017, 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,
	2018		2017
	(in thousands)
Current:
Accrued compensation	$	973	$	967
Total current liabilities	$	973	$	967
Long-term:
Other long-term liabilities		3,327		3,583
Total liabilities	$	4,300	$	4,550

The expense recorded in connection with these plans was $1.3 million, $1.0 million and $0.8 million during the years ended December 31, 2018, 2017 and 2016, respectively.