BENEFITS

Defined contribution plan

U.S. employees are automatically enrolled in the Maxim Integrated 401(k) plan when they meet eligibility requirements, unless they decline participation. Under the terms of the plan Maxim Integrated matches 100% of the employee contributions for the first 3% of employee eligible compensation and an additional 50% match for the next 2% of employee eligible compensation, up to the IRS Annual Compensation Limits. Total defined contribution expense was $12.4 million, $13.0 million and $14.7 million in fiscal years 2017, 2016 and 2015, respectively.

Non-U.S. Pension Benefits

The Company provides defined-benefit pension plans in certain countries. Consistent with the requirements of local law, the Company deposits funds for certain plans with insurance companies, with third party trustees, or into government-managed accounts, and/or accrues for the unfunded portion of the obligation.

Maxim Integrated is enrolled in a retirement plan for employees in the Philippines. This plan is a non-contributory and defined benefit type that provides retirement to employees equal to one month salary for every year of credited service. The benefits are paid in a lump sum amount upon retirement or separation from the Company. Total defined benefit liability was $10.3 million and $9.7 million as of June 24, 2017 and June 25, 2016, respectively. Total accumulated other comprehensive income benefit related to this retirement plan was $0.6 million, $1.1 million and $3.7 million for the fiscal years 2017, 2016, and 2015, respectively.

U.S. Employees Post-Retirement Medical Expense & Funded Status Reconciliation

The Company provides post-retirement medical expenses to certain former employees of Dallas Semiconductor as a result of the Company's acquisition of Dallas Semiconductor in 2001 as well as specific Maxim employees. A reconciliation of the funded status of these post-retirement benefits, is as follows:



	June 24, 2017			Estimated Fiscal Year 2018 Expense		June 25, 2016			Fiscal Year 2017 Expense
	(in thousands, except percentages)
Accumulated post-retirement benefit obligation (APBO):
Retirees and beneficiaries	$	(15,983	)			$	(22,641	)
Active participants	(2,110		)			(3,162		)

Funded status	$	(18,093	)			$	(25,803	)

Actuarial gain (loss)	$	99				$	—
Prior service cost	—					—

Amounts recognized in accumulated other comprehensive income:
Net actuarial loss	$	225				$	7,390
Prior service cost	1,318					1,675
Total	$	1,543				$	9,065

Net periodic post-retirement benefit cost/(income):
Interest cost				674					663
Amortization:
Prior service cost				356					356
Total net periodic post-retirement benefit cost				$	1,030				$	1,019

Employer contributions				$	699				$	710

Economic assumptions:
Discount rate	3.8%					3.7%
Medical trend	6.5%-5.0%					7.0%-5.0%

The following benefit payments are expected to be paid:



	Non-Pension Benefits
	(in thousands)
2018	$	699
2019	736
2020	740
2021	797
2022	838
Thereafter	14,283
	$	18,093

Dallas Semiconductor Split-Dollar Life Insurance

As a result of the Company's acquisition of Dallas Semiconductor in 2001, the Company assumed responsibility associated with a split-dollar life insurance policy held by a former Dallas Semiconductor director. The policy is owned by the individual with the Company retaining a limited collateral assignment.

The Company had $5.3 million and $5.3 million included in Other Assets as of June 24, 2017 and June 25, 2016, respectively, associated with the limited collateral assignment to the policy. The Company had a $6.2 million and $6.7 million obligation included in Other Liabilities as of June 24, 2017 and June 25, 2016, respectively, related to the anticipated continued funding associated with the policy.