Pension Plans

Japan defined benefit pension plans

In connection with its acquisition of NeoPhotonics Semiconductor in 2013, the Company assumed responsibility for two defined benefit plans that provide retirement benefits to its NeoPhotonics Semiconductor employees in Japan: the Retirement Allowance Plan (“RAP”) and the Defined Benefit Corporate Pension Plan (“DBCPP”). The RAP is an unfunded plan administered by the Company. Effective February 28, 2014, the DBCPP was converted to a defined contribution plan (“DCP”). In May 2014, LAPIS transferred approximately $2.0 million into the newly formed DCP which was the allowable amount that can be transferred according to the Japanese regulations. LAPIS also paid the Company approximately $0.3 million in connection with the conversion of the plan. Additionally, the Company transferred the net unfunded projected benefit obligation amount from the DBCPP to the RAP and froze the RAP benefit at the February 28, 2014 amount. Under the RAP, lump sum benefits are provided upon retirement or upon certain instances of termination. In 2014, the Company reclassified $0.2 million and $0.1 million from accumulated other comprehensive income to cost of goods sold and operating expenses, respectively.

The funded status of these plans for the years ended December 31, 2018, 2017 and 2016 was as follows (in thousands):



	2018			2017			2016
	RAP			RAP			RAP
Change in projected benefit obligation:
Projected benefit obligation, beginning of period	$	4,616		$	4,802		$	5,086
Service cost	—			—			—
Interest cost	4			5			11
Benefits paid	(517		)	(411		)	(551		)
Actuarial (gain)/loss	95			32			72
Curtailment/Settlement	—			—			—
Transfer from DBCPP to RAP	—			—			—
Currency translation adjustment	110			188			184
Projected benefit obligation, end of period	$	4,308		$	4,616		$	4,802
Change in plan assets:
Plan assets at fair value, beginning of period	$	—		$	—		$	—
Employer contributions	—			—			—
Benefits paid	—			—			—
Transfer to DCP	—			—			—
Currency translation adjustment	—			—			—
Plan assets at calculated amount, end of period	$	—		$	—		$	—
Amounts recognized in consolidated balance sheets:
Accrued and other current liabilities	$	257		$	488		$	393
Other noncurrent liabilities	$	4,051		$	4,128		$	4,409
Amount recognized in accumulated other comprehensive loss:
Defined benefit pension plans adjustment	$	373		$	271		$	230
Accumulated benefit obligation, end of period	$	4,308		$	4,616		$	4,802

Net periodic pension cost associated with these plans for the years ended December 31, 2018, 2017 and 2016 included the following components (in thousands):



	2018		2017		2016
	RAP		RAP		RAP
Service cost	$	—	$	—	$	—
Interest cost	4		5		11
Other	—		—		—
Curtailment/settlement (gain) loss	—		—		—
Net periodic pension costs	$	4	$	5	$	11

The projected and accumulated benefit obligations for the RAP were calculated as of December 31, 2018 and 2017 using a discount rate assumption of 0.1% and 0.1%, respectively.

Estimated future benefit payments under the RAP are as follows (in thousands):



2019	$	188
2020	513
2021	626
2022	295
2023	—
2024 - 2026	1,631
Thereafter	1,055
	$	4,308

401(k) Plan

The Company maintains a savings and retirement plan qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended (the "IRC"). The Company currently matches a portion of all eligible employee contributions which vest immediately. The Company’s matching contributions to the plan totaled $0.4 million, $0.5 million and $0.4 million, respectively, for the years ended December 31, 2018, 2017, and 2016.