BENEFITS

Defined contribution plan:

Starting January 1, 2011, Maxim Integrated 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 Integrated 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 $14.1 million and $13.8 million in fiscal years 2013 and 2012, 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

During the fourth quarter of fiscal year 2012, the Company formalized a post-retirement benefits plan merging the former and current Maxim Integrated 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 29, 2013 and June 30, 2012 under ASC 715.

Medical Expense & Funded Status Reconciliation



	June 30, 2012			Fiscal Year 2013 Expense		June 29, 2013			Estimated Fiscal Year 2014 Expense
	(in thousands, except percentages)
Accumulated Postretirement Benefit Obligation [APBO]:
Retirees and beneficiaries	$	(20,427	)			$	(18,162	)
Active participants	(1,780		)			(2,128		)

Funded status	$	(22,207	)			$	(20,290	)

Actuarial gain (loss)	$	1,507				$	(2,369	)
Prior service cost	3,100					—

Amounts Recognized in Accumulated Other Comprehensive Income:
Net actuarial loss	$	8,603				$	5,500
Prior service cost	3,100					2,744
Total	$	11,703				$	8,244

Net Periodic Postretirement Benefit Cost/(Income):
Interest cost				877					858
Amortization:
Prior service cost				356					356
Net actuarial loss (1)				734					457
Total net periodic postretirement benefit cost				$	1,967				$	1,671

Employer contributions				$	424				$	676

Economic Assumptions:
Discount rate	4.0%					4.3%
Medical trend	9% -5%					8.5% -5%

(1) Unrecognized losses are amortized over average remaining service period of active participants of 7.6 years at June 29, 2013.

The following benefit payments are expected to be paid:



	Non-Pension Benefits
2014	$	676
2015	721
2016	777
2017	834
2018	861
Thereafter	16,421
	$	20,290

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 officer. The policies are owned by the individual with the Company retaining a limited collateral assignment.

The Company had $3.2 million and $3.0 million included in Other Assets as of June 29, 2013 and June 30, 2012, respectively, associated with the limited collateral assignment to the policy. The Company had a $4.8 million and $4.6 million obligation included in Other Liabilities as of June 29, 2013 and June 30, 2012, respectively, related to the anticipated continued funding associated with the policy.