NOTE I – Employee Benefit Plans

Defined Benefit Plan

We have a contributory defined benefit plan that covers certain employees in the United Kingdom (“U.K.”). The net pension and supplemental retirement benefit obligations and the related periodic costs are based on, among other things, assumptions regarding the discount rate, estimated return on plan assets and mortality rates. These obligations and related periodic costs are measured using actuarial techniques and assumptions. The projected unit credit method is the actuarial cost method used to compute the pension liabilities and related expenses.

Net periodic benefit costs associated with the defined benefit plan were less than $1 million for both the three months ended June 30, 2015 and 2014, and $1 million for both the six months ended June 30, 2015 and 2014.

The following tables set forth the benefit obligation, the fair value of plan assets, and the funded status of our plan (in thousands):

	Defined Benefit Plan
Change in benefit obligation:
Balance at December 31, 2014	$	159,715
Service cost		152
Interest cost		2,840
Actuarial gain		(2,881	)
Benefits paid		(2,064	)
Currency changes		1,318
Benefit obligation at June 30, 2015	$	159,080
Change in plan assets:
Fair value of plan assets at December 31, 2014	$	122,780
Actual return on plan assets		1,944
Employer contribution		305
Benefits paid		(2,064	)
Currency changes		1,068
Fair value of plan assets at June 30, 2015	$	124,033
Underfunded status at June 30, 2015	$	(35,047	)

Based on an actuarial study performed as of June 30, 2015, the plan is underfunded and a liability is reflected in our consolidated financial statements as a long-term liability. The weighted-average discount rate assumption used to determine benefit obligations as of June 30, 2015 was 3.9%.

The following weighted-average assumptions were used to determine net periodic benefit costs for the three months ended June 30, 2015:

Discount rate		3.7	%
Expected long-term return on plan assets		5.2	%

During the second quarter of 2012, we adopted a payment plan with the trustees of the defined benefit plan, under which we would pay approximately British Pound (“GBP”) 2 million (approximately $3 million based on a USD:GBP exchange rate of 1.6:1) every year from 2012 through 2019. In 2015, based on the pension deficit, we adopted (as required every three years) an amended payment plan that Zetex had in place with the trustees of the defined benefit plan in which we will pay contributions of approximately GBP 2 million (approximately $3 million based on a USD:GBP exchange rate of 1.6:1) annually through 2030. This revised payment plan resulted in an increase of total required contributions from GBP 8 million to GBP 33 million (approximately $52 million at June 30, 2015).

We also have pension plans in Germany and Asia for which the benefit obligation, fair value of the plan assets and the funded status amounts are deemed immaterial and therefore, are not included in the figures or assumptions above.

Deferred Compensation

We maintain a Non-Qualified Deferred Compensation Plan (the “Deferred Compensation Plan”) for executive officers, key employees and members of the Board of Directors (the “Board”). The Deferred Compensation Plan allows eligible participants to defer the receipt of eligible compensation, including equity awards, until designated future dates. We offset our obligations under the Deferred Compensation Plan by investing in the actual underlying investments. These investments are classified as trading securities and are carried at fair value. At June 30, 2015, these investments totaled approximately $5 million. All gains and losses in these investments are materially offset by corresponding gains and losses in the Deferred Compensation Plan liabilities.