Defined Benefit Plans

6 Months Ended

Jun. 30, 2017

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Maxwell SA Pension Plan

Maxwell SA has a retirement plan that is classified as a defined benefit pension plan. The employee pension benefit is based on compensation, length of service and credited investment earnings. The plan guarantees both a minimum rate of return as well as minimum annuity purchase rates. The Company’s funding policy with respect to the pension plan is to contribute the amount required by Swiss law, using the required percentage applied to the employee’s compensation. In addition, participating employees are required to contribute to the pension plan. This plan has a measurement date of December 31.

Components of net periodic pension cost are as follows (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Service cost	$	245		$	297		$	486		$	587
Interest cost	57			62			114			123
Expected return on plan assets	(252		)	(298		)	(499		)	(589		)
Prior service cost amortization	39			38			75			75
Deferred loss amortization	—			62			—			122
Net periodic pension cost	$	89		$	161		$	176		$	318

Employer contributions of $0.1 million and $0.2 million were paid during the three months ended June 30, 2017 and 2016, respectively. Employer contributions of $0.3 million were paid during each of the six months ended June 30, 2017 and 2016. Additional employer contributions of approximately $0.3 million are expected to be paid during the remainder of fiscal 2017.

Korea Employee Severance Plan

In connection with the Nesscap Acquisition, the Company assumed the accrued severance liability related to Nesscap Korea’s employees. Pursuant to the Labor Standards Act of Korea, employees and most executive officers with one or more years of service are entitled to severance benefits upon the termination of their employment based on their length of service and rate of pay.

Components of net cost related to the employee severance plan are as follows (in thousands):



	Three and Six Months Ended June 30, 2017
Service cost	$	88
Interest cost	13
Net cost	$	101

Employer contributions of $1,000 were paid during each of the three and six months ended June 30, 2017. Additional employer contributions of approximately $5,000 are expected to be paid during the remainder of fiscal 2017.