BENEFITS

Defined contribution plan:

U.S. employees are automatically enrolled in the Maxim Integrated 401(k) plan when they meet eligibility requirements, unless they decline participation. Under the terms of the plan Maxim Integrated matches 100% of the employee contributions for the first 3% of employee eligible compensation and an additional 50% match for the next 2% of employee eligible compensation, up to the IRS Annual Compensation Limits. Total defined contribution expense was $14.7 million, $15.4 million and $14.1 million in fiscal years 2015, 2014 and 2013, respectively.

Non-U.S. Pension Benefits

The Company provides defined-benefit pension plans in certain countries. Consistent with the requirements of local law, the Company deposits 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.

Maxim Integrated is enrolled in a retirement plan for employees in the Philippines. This plan is a non-contributory and defined benefit type that provides retirement to employees equal to one month salary for every year of credited service. The benefits are paid in a lump sum amount upon retirement or separation from the Company. Total defined benefit liability was $11.8 million and $9.6 million in fiscal years 2015 and 2014, respectively. Total accumulated other comprehensive income benefit related to this retirement plan was $0.5 million, $3.3 million and $0 million for the fiscal years 2015, 2014, and 2013, respectively.

U.S. Employees Medical Expense & Funded Status Reconciliation



	June 27, 2015			Estimated Fiscal Year 2016 Expense		June 28, 2014			Fiscal Year 2015 Expense
	(in thousands, except percentages)
Accumulated Postretirement Benefit Obligation [APBO]:
Retirees and beneficiaries	$	(22,414	)			$	(21,602	)
Active participants	(2,850		)			(2,626		)

Funded status	$	(25,264	)			$	(24,228	)

Actuarial gain (loss)	$	524				$	(3,819	)
Prior service cost	—					—

Amounts Recognized in Accumulated Other Comprehensive Income:
Net actuarial loss	$	8,425				$	8,863
Prior service cost	2,031					2,387
Total	$	10,456				$	11,250

Net Periodic Postretirement Benefit Cost/(Income):
Interest cost				994					1,002
Amortization:
Prior service cost				356					356
Net actuarial loss (1)				1,035					961
Total net periodic postretirement benefit cost				$	2,385				$	2,319

Employer contributions				$	809				$	749

Economic Assumptions:
Discount rate	4.0%					4.2%
Medical trend	7.5%-5%					8.0% -5%

(1) Unrecognized losses are amortized over average remaining service period of active participants of 5.7 years at June 27, 2015.

The following benefit payments are expected to be paid:



	Non-Pension Benefits
	(in thousands)
2016	$	809
2017	858
2018	907
2019	961
2020	984
Thereafter	20,745
	$	25,264

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 policy is owned by the individual with the Company retaining a limited collateral assignment.

The Company had $5.1 million and $4.2 million included in Other Assets as of June 27, 2015 and June 28, 2014, respectively, associated with the limited collateral assignment to the policy. The Company had a $6.5 million and $5.7 million obligation included in Other Liabilities as of June 27, 2015 and June 28, 2014, respectively, related to the anticipated continued funding associated with the policy.