BENEFITS

Defined contribution plan:

Starting January 1, 2011, Maxim reinstated its 401(k) employer matching contribution for U.S. employees. U.S. employees are automatically enrolled in the plan when they meet eligibility requirements, unless they decline participation. Under the terms of the plan Maxim matches 100% of the employee contributions up to 3% of employee eligible compensation and 50% of additional employee contributions up to 5% of employee eligible compensation, up to the IRS Annual Compensation Limits. Total defined contribution expense was $6.8 million and $6.0 million in fiscal years 2012 and 2011, respectively.

Non-U.S. Pension Benefits

We provide defined-benefit pension plans in certain countries. Consistent with the requirements of local law, we deposit funds for certain plans with insurance companies, with third-party trustees, or into government-managed accounts, and/or accrue for the unfunded portion of the obligation.

Post-Employment Benefits

The Company has outstanding obligations associated with certain former Maxim employees to provide post-employment medical benefits. The total amount of this obligation was $4.8 million and included in other liabilities in the Consolidated Balance Sheet as of June 25, 2011. The Company accounted for this obligation in accordance with ASC 712.

As a result of the Company's acquisition of Dallas Semiconductor in 2001, the Company assumed the obligation to continue medical coverage for certain former officers and directors. The total amount of this obligation was $10.0 million and included in other liabilities in the Consolidated Balance Sheet as of June 25, 2011. The Company accounted for the obligation under ASC 715.

During the fourth quarter of fiscal year 2012, the Company formalized a post-retirement benefits plan merging the former and current Maxim employees with the Dallas Semiconductor participants under one pool. The plan gained the proper approvals and, accordingly, the Company has accounted for both plans as of June 30, 2012 under ASC 715.

Medical Expense & Funded Status Reconciliation



	June 25, 2011			Fiscal Year 2012 Expense		June 30, 2012			Estimated Fiscal Year 2013 Expense
	(in thousands, except percentages)
Accumulated Postretirement Benefit Obligation [APBO]:
Retirees and beneficiaries	$	(9,989	)			$	(20,427	)
Active participants	—					(1,780		)

Funded status	$	(9,989	)			$	(22,207	)

Actuarial loss	—					$	1,507
Prior service cost	—					3,100

Amounts Recognized in Accumulated Other Comprehensive Income:
Net actuarial loss	$	7,484				$	8,603
Prior service cost	—					3,100
Total	$	7,484				$	11,703

Net Periodic Postretirement Benefit Cost/(Income):
Interest cost				500					877
Amortization:
Prior service cost				—					356
Net actuarial loss (1)				388					734
Total net periodic postretirement benefit cost				$	888				$	1,967

Employer contributions				$	150				$	581

Economic Assumptions:
Discount rate	5.1%					4.0%
Medical trend	9.5% -5%					9% -5%

(1) Unrecognized losses are amortized over average remaining service period of active participants of 8.7 years at June 30, 2012.

The following benefit payments are expected to be paid:



	Non-Pension Benefits
2013	$	581
2014	631
2015	682
2016	738
2017	799
Thereafter	18,776
	$	22,207

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 certain split-dollar life insurance policies held by certain former Dallas Semiconductor officers and directors. The policies are owned by the individuals with the Company maintaining a limited collateral assignment on each policy.

The Company had $3.0 million and $2.9 million included in Other Assets as of June 30, 2012 and June 25, 2011, respectively, associated with the limited collateral assignment to the policies. The Company had a $4.6 million and $4.4 million obligation included in Other Liabilities as of June 30, 2012 and June 25, 2011, respectively, related to the anticipated continued funding associated with these policies.