Benefits

12 Months Ended

Jun. 26, 2021

Retirement Benefits [Abstract]

Retirement Benefits [Text Block]

BENEFITS

Defined contribution plan

U.S. employees are automatically enrolled in the Maxim Integrated 401(k) Plan (the "Plan") when they meet eligibility requirements unless they decline participation. Under the terms of the Plan, the Company 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 $11.7 million, $11.2 million and $11.6 million in fiscal years 2021, 2020 and 2019, respectively.

Non-U.S. Pension Benefits

The Company sponsors 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 accrues for the unfunded portion of the obligation.

The Company sponsors retirement plans for employees in the Philippines and certain other countries. These plans are non-contributory and defined benefit types that provide 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 $19.1 million and $18.0 million as of June 26, 2021 and June 27, 2020, respectively. Total accumulated other comprehensive loss related to this retirement plan was $4.6 million, $6.3 million and $3.0 million for the fiscal years 2021, 2020, and 2019, respectively.

U.S. Employees Postretirement Medical Expense & Funded Status Reconciliation

The Company provides postretirement medical expenses to certain former employees of Dallas Semiconductor and to certain Maxim Integrated executives. The Company adopted the postretirement medical plan as a result of the Company's acquisition of Dallas Semiconductor in 2001. A reconciliation of the funded status of these postretirement benefits, is as follows:

	June 26, 2021		Estimated Fiscal Year 2022 Expense		June 27, 2020		Fiscal Year 2021 Expense
	(in thousands, except percentages)
Accumulated postretirement benefit obligation:
Retirees and beneficiaries	$	(19,483)			$	(19,115)
Active participants	—				(1,413)
Funded status	$	(19,483)			$	(20,528)
Actuarial gain (loss)	$	1,152			$	705
Prior service cost	—				—
Amounts recognized in accumulated other comprehensive income:
Net actuarial loss	$	725			$	1,877
Prior service cost	—				249
Total	$	725			$	2,126
Net periodic postretirement benefit cost:
Interest cost			$	527			$	524
Amortization:
Prior service cost			—				249
Total net periodic postretirement benefit cost			$	527			$	773
Employer contributions			$	420			$	740
Economic assumptions:
Discount rate	2.9%				2.6%
Medical trend	6.75%-5.00%				7.00%-5.00%

The following benefit payments are expected to be paid:

	Non-Pension Benefits
Fiscal Year	(in thousands)
2022	$	851
2023	819
2024	870
2025	919
2026	903
Thereafter	15,121
Total	$	19,483

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 $8.4 million and $8.5 million included in Other assets in the Consolidated Balance Sheets as of June 26, 2021 and June 27, 2020, respectively, associated with the limited collateral assignment to the policy. The Company had a $9.4

million and $9.7 million obligation included in Other Liabilities in the Consolidated Balance Sheets as of June 26, 2021 and June 27, 2020, respectively, related to the anticipated continued funding associated with the policy.