Defined Benefit Plans

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 September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Service cost	$	251		$	295		$	737		$	883
Interest cost	59			62			172			185
Expected return on plan assets	(258		)	(296		)	(757		)	(885		)
Prior service cost amortization	38			38			113			113
Deferred loss amortization	—			61			—			183
Net periodic pension cost	$	90		$	160		$	265		$	479

Employer contributions of $0.2 million and $0.1 million were paid during the three months ended September 30, 2017 and 2016, respectively. Employer contributions of $0.5 million were paid during each of the nine months ended September 30, 2017 and 2016. Additional employer contributions of approximately $0.1 million are expected to be paid during the remainder of fiscal 2017.

Korea Defined Benefit Plan

In connection with the Nesscap Acquisition, the Company assumed the defined benefit plan 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 lump sum separation benefits upon the termination of their employment based on their length of service and rate of pay.

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



	Three Months Ended September 30, 2017		Nine Months Ended September 30, 2017
Service cost	$	134	$	221
Interest cost	20		34
Net cost	$	154	$	255

Employer contributions of $2,000 and $4,000 were paid during the three and nine months ended September 30, 2017, respectively. Additional employer contributions of approximately $2,000 are expected to be paid during the remainder of fiscal 2017.