Intel 1994 Annual Report Download - page 29

The Company provides defined-benefit pension plans in certain foreign countries where required by statute. The Company's funding policy for
foreign defined- benefit plans is consistent with the local requirements in each country. Pension expense for 1994, 1993 and 1992 for the
foreign plans included the following:
The funded status of the foreign defined-benefit plans as of December 31, 1994 and December 25, 1993 is summarized below:
At fiscal year-ends, the weighted average discount rates and long-term rates for compensation increases used for estimating the benefit
obligations and the expected return on plan assets are as follows:
Plan assets of the foreign plans consist primarily of listed stocks, bonds and cash surrender value life insurance policies.
OTHER POSTEMPLOYMENT BENEFITS. As of December 31, 1994, Intel does not offer the types of benefits covered by SFAS No. 106,
"Employers' Accounting for Postretirement Benefits Other Than Pensions," and thus is not affected by this statement. SFAS No. 112,
"Employers' Accounting for Postemployment Benefits," does not materially impact the Company.
(In millions) 1994 1993 1992
- -------------------------------------------------------------------------
Service cost-benefits earned
during the year $ 5 $ 5 $ 5
Interest cost of projected
benefit obligation 5 6 5
Actual investment (return)
on plan assets (8) (7) --
Net amortization and deferral 3 2 (5)
----- ----- -----
Net pension expense $ 5 $ 6 $ 5
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Assets
exceed Accumulated
1994 accumulated benefits
(In millions) benefits exceed assets
- -------------------------------------------------------------------------------
Vested benefit obligation $ (32) $ (4)
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Accumulated benefit obligation $ (34) $ (9)
======= =======
Projected benefit obligation $ (49) $ (16)
Fair market value of plan assets 51 3
------- -------
Projected benefit obligation less than
(in excess of) plan assets 2 (13)
Unrecognized net loss 2 2
Unrecognized net transition obligation -- 1
------- -------
Prepaid (accrued) pension costs $ 4 $ (10)
======= =======
Assets exceed Accumulated
1993 accumulated benefits
(In millions) benefits exceed assets
- -------------------------------------------------------------------------------
Vested benefit obligation $ (27) $ (3)
======= =======
Accumulated benefit obligation $ (28) $ (7)
======= =======
Projected benefit obligation $ (39) $ (12)
Fair market value of plan assets 41 2
------- -------
Projected benefit obligation
less than (in excess of) plan assets 2 (10)
Unrecognized net transition obligation -- 1
------- -------
Prepaid (accrued) pension costs $ 2 $ (9)
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1994 1993 1992
- -------------------------------------------------------------------------
Discount rate 5.5%-14% 5.5%-14% 5.5%-24%
Rate of increase in
compensation levels 4.5%-11% 4.5%-11% 4.5%-18%
Expected long-term
return on assets 5.5%-14% 5.5%-14% 5.5%-24%