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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Postretirement Medical Benefits.
Upon retirement, eligible U.S. employees are credited with a defined dollar amount based on
years of service. These credits can be used to pay all or a portion of the cost to purchase coverage in an Intel
-sponsored
medical plan. If the available credits are not sufficient to pay the entire cost of the coverage, the remaining cost is the
responsibility of the retiree.
Funding Policy.
Our practice is to fund the various pension plans in amounts sufficient to meet the minimum requirements of
U.S. federal laws and regulations or applicable local laws and regulations. Additional funding may be provided as deemed
appropriate. The assets of the various plans are invested in corporate equities, corporate debt instruments, government
securities, and other institutional arrangements. The portfolio of each plan depends on plan design and applicable local laws.
Depending on the design of the plan, local customs, and market circumstances, the liabilities of a plan may exceed qualified
plan assets. We accrue for all such liabilities.
Benefit Obligation and Plan Assets
The changes in the benefit obligations and plan assets for the plans described above were as follows:
The following table summarizes the amounts recognized on the consolidated balance sheet as of December 29, 2007:
82
U.S. Pension
Non
-
U.S. Pension
Postretirement
Benefits
Benefits
Medical Benefits
(In Millions)
2007
2006
2007
2006
2007
2006
Change in projected benefit obligation:
Beginning benefit obligation
$
345
$
317
$
686
$
473
$
204
$
193
Service cost
18
4
70
50
12
12
Interest cost
17
13
37
27
11
10
Plan participants
’
contributions
—
—
10
9
3
3
Actuarial (gain) loss
(31
)
13
(59
)
115
(11
)
(8
)
Currency exchange rate changes
—
—
77
43
—
—
Plan amendments
(25
)
—
—
—
—
—
Benefits paid to plan participants
(33
)
(2
)
(27
)
(31
)
(6
)
(6
)
Ending projected benefit obligation
$
291
$
345
$
794
$
686
$
213
$
204
U.S. Pension
Non-
U.S. Pension
Postretirement
Benefits
Benefits
Medical Benefits
(In Millions)
2007
2006
2007
2006
2007
2006
Change in plan assets:
Beginning fair value of plan assets
$
245
$
226
$
447
$
340
$
1
$
2
Actual return on plan assets
15
12
20
41
(1
)
(1
)
Employer contributions
—
9
52
60
4
3
Plan participants
’
contributions
—
—
10
9
3
3
Currency exchange rate changes
—
—
49
28
—
—
Benefits paid to participants
(33
)
(2
)
(30
)
(31
)
(6
)
(6
)
Ending fair value of plan assets
$
227
$
245
$
548
$
447
$
1
$
1
U.S. Pension
Non-
U.S. Pension
Postretirement
(In Millions)
Benefits
Benefits
Medical Benefits
-
term assets
$
—
$
53
$
—
Accrued compensation and benefits
—
(
6
)
(10
)
-
term liabilities
(64
)
(293
)
(202
)
Accumulated other comprehensive loss
49
146
15
Net amount recognized
$
(15
)
$
(100
)
$
(197
)