DEFERRED COMPENSATION PLANS
In the United States, we maintain a retirement savings plan under which eligible employees may defer compensation for income tax purposes under Section 401(k) of the Internal Revenue Code (Gilead Plan). Under the Gilead Plan, employees may contribute up to 60% of their eligible annual compensation, subject to IRS plan limits. We make matching contributions under the Gilead Plan. We contributed up to 50% of an employee's contributions up to an annual maximum match of $7,500 in 2013 and 2012 and $5,000 in 2011.
In certain foreign subsidiaries, we maintain defined benefit plans as required by local regulatory requirements. We may deposit funds for these plans with insurance companies, third party trustees, or into government-managed accounts consistent with local regulatory requirements, as applicable.
Our total matching contribution expense under the Gilead Plan and other defined benefit plans was $32.4 million during 2013, $26.8 million during 2012 and $18.8 million during 2011.
We maintain a deferred compensation plan under which our directors and key employees may defer compensation for income tax purposes. The deferred compensation plan is a non-qualified deferred compensation plan which is not subject to the qualification requirements under Section 401(a) of the Internal Revenue Code. Compensation deferred after December 31, 2004 is subject to the requirements of Section 409A of the Internal Revenue Code. Under the plan, officers and other U.S. senior level employees may contribute up to 70% of their annual salaries and up to 100% of their annual bonus and commissions while directors may contribute up to 100% of their annual retainer fee. Effective 2011, non-employee Board members may also defer up to 100% of their RSU awards. Amounts deferred by participants are deposited in a rabbi trust and the corresponding plan assets are recorded in other long-term assets and the corresponding plan liabilities are recorded in other long-term obligations on our Consolidated Balance Sheets. Beginning in 2004, non-employee Board members could also elect to receive all or a portion of their annual cash retainer in phantom shares, which gives the participant the right to receive an amount equal to the value of a specified number of shares over a specified period of time and which will be payable in shares of our common stock (with fractional shares paid out in cash) as established by the plan administrator. As of December 31, 2013, we had 54,109 phantom shares outstanding. Participants can elect one of several distribution dates or events available under the plan at which they will receive their deferred compensation payment.
