Note 12. Employee Benefit Plans

(a) Defined Contribution Plan

We maintain the Axcelis Long-Term Investment Plan, a defined contribution plan. Eligible employees may contribute up to 35% of their compensation on a before-tax basis subject to Internal Revenue Service (“IRS”) limitations. Highly compensated employees may contribute up to 16% of their compensation on a before-tax basis subject to IRS limitations. In 2019, 2018 and 2017 we provided an employer match of 50% of employees’ pre-tax contributions on the first 6% of eligible compensation. Total related matching contribution expense was $1.9 million, $1.6 million and $1.2 million, for 2019, 2018 and 2017, respectively.

(b) Other Compensation Plans

We operate in foreign jurisdictions that require lump sum benefits, payable based on statutory regulations, for voluntary or involuntary termination. Where required, an annual actuarial valuation of the benefit plans is obtained.

We have recorded an unfunded liability of $4.8 million and $4.3 million at December 31, 2019 and 2018, respectively, for costs associated with these compensation plans in foreign jurisdictions. The following table presents the classification of these liabilities in the Consolidated Balance Sheets:


	Year ended
	December 31,
	2019		2018
	(in thousands)
Current:
Accrued compensation	$	1,040	$	973
Total current liabilities	$	1,040	$	973
Long-term:
Other long-term liabilities		3,753		3,327
Total liabilities	$	4,793	$	4,300

The expense recorded in connection with these plans was $1.2 million, $1.3 million and $1.0 million during the years ended December 31, 2019, 2018 and 2017, respectively.