Employee Benefits Plans

ALTERA CORPORATION SAVINGS AND RETIREMENT PLAN | We provide a retirement savings option to our eligible U.S. employees through the Altera Corporation Savings and Retirement Plan (the "401(k) Plan”). As allowed under Section 401(k) of the Internal Revenue Code, the 401(k) Plan allows tax deferred salary deductions for eligible employees. Our Retirement Plans Committee administers the 401(k) Plan. Participants in the 401(k) Plan may make salary deferrals of up to 75% of their eligible compensation (when combining regular and catch-up contributions), limited by the maximum dollar amount allowed by the Internal Revenue Code. For every dollar deferred under the 401(k) Plan, we make a matching contribution equal to 100% of the salary deferred per pay period with a maximum of $4,500 per participant in each of 2013, 2012 and 2011. All matching contributions are immediately vested.

Participants who reach the age of fifty before the close of the 401(k) Plan year may be eligible to make catch-up salary deferral contributions, limited by the maximum dollar amount allowed by the Internal Revenue Code. Catch-up contributions are not eligible for matching contributions. Total matching contributions to the 401(k) Plan were $6.2 million, $5.8 million, and $5.4 million in 2013, 2012 and 2011, respectively, and were expensed as incurred.

ALTERA CORPORATION NON-QUALIFIED DEFERRED COMPENSATION PLAN | We allow our U.S.-based officers and director-level employees to defer a portion of their compensation under the Altera Corporation Non-Qualified Deferred Compensation Plan (“NQDC Plan”). Our Retirement Plans Committee administers the NQDC Plan. As of December 31, 2013, there were 122 participants in the NQDC Plan who self-direct their investments in the NQDC Plan, subject to certain limitations. In the event we become insolvent, the NQDC Plan assets are subject to the claims of our general creditors. Since the inception of the NQDC Plan, we have not made any contributions to the NQDC Plan and we have no commitments to do so in the future. There are no NQDC Plan provisions that provide for any guarantees or minimum return on investments. NQDC Plan participants are prohibited from investing NQDC Plan contributions in Altera common stock. The balance of the NQDC Plan assets and related obligations was $83.2 million and $77.4 million as of December 31, 2013 and December 31, 2012, respectively.

The following tables summarize the fair value of our deferred compensation plan assets by significant investment category:



(In thousands)	December 31, 2013		December 31, 2012

Deferred compensation plan assets: (1)

Level 1:
Restricted cash equivalents	$	16,699	$	17,116
Equity securities	32,628		29,902
Mutual funds	32,521		27,073
Subtotal	81,848		74,091

Level 2:
Fixed income securities	1,306		3,346
Total	$	83,154	$	77,437

(1) Included in Deferred compensation plan - marketable securities and Deferred compensation plan - restricted cash equivalents in the accompanying consolidated balance sheets as of December 31, 2013 and December 31, 2012.

Investment income or loss earned by the NQDC Plan is recorded as (Gain) loss on deferred compensation plan securities in our consolidated statements of comprehensive income. The investment (gain) loss also represents an (increase) decrease in the future payout to participants and is recorded as Compensation expense (benefit) - deferred compensation plan in our consolidated statements of comprehensive income. Compensation expense (benefit) associated with our NQDC Plan obligations is offset by (gain) loss from related securities. The net effect of investment income or loss and related compensation expense or benefit has no impact on our income before income taxes, net income, or cash balances.

(Gain) loss on deferred compensation plan securities from our NQDC plan assets for 2013, 2012 and 2011 was comprised of the following:



(In thousands)	2013		2012			2011
Gross realized gains from sale of trading securities	$	2,639	$	1,530		$	823
Gross realized losses from sale of trading securities	—		(5		)	—
Dividend and interest income	876		1,483			808
Net unrealized holding gains (losses)	7,090		4,047			(3,595		)
(Gain) loss on deferred compensation plan securities	$	10,605	$	7,055		$	(1,964	)

OTHER EMPLOYEE BENEFIT PLANS We offer participation in a Service Award Program (“SAP”) to U.S. employees below the Vice President level and to non-U.S. employees. The SAP provides employees with one to four weeks of additional paid vacation upon their achievement of five, ten, fifteen, twenty and twenty-five year service anniversaries. The following table presents the total long-term and short-term liabilities for this program, which are included in Accrued compensation and related liabilities and Other non-current liabilities.



(In thousands)	December 31, 2013		December 31, 2012

Accrued compensation and related liabilities	$	2,564	$	2,261
Other non-current liabilities	5,370		6,888
	$	7,934	$	9,149