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 $13.0 million, $14.7 million and $15.4 million in fiscal years 2016, 2015 and 2014, 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 accrues 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 $9.7 million and $11.8 million in fiscal years 2016 and 2015, respectively. Total accumulated other comprehensive income benefit related to this retirement plan was $1.1 million, $3.7 million and $3.3 million for the fiscal years 2016, 2015, and 2014, respectively.

U.S. Employees Medical Expense & Funded Status Reconciliation



	June 25, 2016			Estimated Fiscal Year 2017 Expense		June 27, 2015			Fiscal Year 2016 Expense
	(in thousands, except percentages)
Accumulated Postretirement Benefit Obligation [APBO]:
Retirees and beneficiaries	$	(22,641	)			$	(22,414	)
Active participants	(3,162		)			(2,850		)

Funded status	$	(25,803	)			$	(25,264	)

Actuarial gain (loss)	$	—				$	524
Prior service cost	—					—

Amounts Recognized in Accumulated Other Comprehensive Income:
Net actuarial loss	$	7,390				$	8,425
Prior service cost	1,675					2,031
Total	$	9,065				$	10,456

Net Periodic Postretirement Benefit Cost/(Income):
Interest cost				663					994
Amortization:
Prior service cost				356					356
Net actuarial loss (1)				—					1,035
Total net periodic postretirement benefit cost				$	1,019				$	2,385

Employer contributions				$	666				$	809

Economic Assumptions:
Discount rate	3.7%					4.0%
Medical trend	7.0%-5.0%					7.5%-5.0%

(1) Unrecognized losses are amortized over average remaining service period of active participants of 4.7 years at June 25, 2016.

The following benefit payments are expected to be paid:



	Non-Pension Benefits
	(in thousands)
2017	$	666
2018	685
2019	721
2020	724
2021	781
Thereafter	22,226
	$	25,803

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

The Company had $5.3 million and $5.1 million included in Other Assets as of June 25, 2016 and June 27, 2015, respectively, associated with the limited collateral assignment to the policy. The Company had a $6.7 million and $6.5 million obligation included in Other Liabilities as of June 25, 2016 and June 27, 2015, respectively, related to the anticipated continued funding associated with the policy.