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 $12.6 million, $12.4 million and $13.0 million in fiscal years 2018, 2017 and 2016, 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 retirement plans for employees in the Philippines and certain other countries. These plans are non-contributory and defined benefit types that provide 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 $11.2 million and $10.3 million as of June 30, 2018 and June 24, 2017, respectively. Total accumulated other comprehensive income benefit related to this retirement plan was $1.0 million, $0.6 million and $1.1 million for the fiscal years 2018, 2017, and 2016, respectively.

U.S. Employees Post-Retirement Medical Expense & Funded Status Reconciliation

The Company provides post-retirement medical expenses to certain former employees of Dallas Semiconductor as a result of the Company's acquisition of Dallas Semiconductor in 2001 as well as specific Maxim employees. A reconciliation of the funded status of these post-retirement benefits, is as follows:



	June 30, 2018			Estimated Fiscal Year 2019 Expense		June 24, 2017			Fiscal Year 2018 Expense
	(in thousands, except percentages)
Accumulated post-retirement benefit obligation (APBO):
Retirees and beneficiaries	$	(18,023	)			$	(15,983	)
Active participants	(1,367		)			(2,110		)

Funded status	$	(19,390	)			$	(18,093	)

Actuarial gain (loss)	$	(1,279	)			$	99
Prior service cost	—					—

Amounts recognized in accumulated other comprehensive income:
Net actuarial loss	$	1,054				$	225
Prior service cost	962					1,318
Total	$	2,016				$	1,543

Net periodic post-retirement benefit cost (income):
Interest cost				$	741				$	674
Amortization:
Prior service cost				356					356
Total net periodic post-retirement benefit cost				$	1,097				$	1,030

Employer contributions				$	796				$	656

Economic assumptions:
Discount rate	3.9%					3.8%
Medical trend	7.5%-5.0%					6.5%-5.0%

The following benefit payments are expected to be paid:



	Non-Pension Benefits
	(in thousands)
2019	$	796
2020	811
2021	882
2022	938
2023	946
Thereafter	15,017
	$	19,390

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 $5.5 million and $5.3 million included in Other assets in the Consolidated Balance Sheets as of June 30, 2018 and June 24, 2017, respectively, associated with the limited collateral assignment to the policy. The Company had a $6.3 million and $6.2 million obligation included in Other Liabilities in the Consolidated Balance Sheets as of June 30, 2018 and June 24, 2017, respectively, related to the anticipated continued funding associated with the policy.