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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:
91
U.S. Pension
Non
-
U.S. Pension
Postretirement
Benefits
Benefits
Medical Benefits
(In Millions)
2008
2007
2008
2007
2008
2007
Change in projected benefit obligation:
Beginning benefit obligation
$
291
$
345
$
794
$
686
$
213
$
204
Service cost
14
18
64
70
12
12
Interest cost
16
17
42
37
12
11
Plan participants
’
contributions
—
—
10
10
3
3
Actuarial (gain) loss
244
(31
)
(157
)
(59
)
(60
)
(11
)
Currency exchange rate changes
—
—
13
77
—
—
Plan amendments
—
(
25
)
—
—
—
—
Plan curtailments
1
—
—
(
20
)
—
—
—
Plan settlements
1
—
—
(
27
)
—
—
—
Benefits paid to plan participants
(23
)
(33
)
(28
)
(27
)
(7
)
(6
)
Ending projected benefit obligation
$
542
$
291
$
691
$
794
$
173
$
213
U.S. Pension
Non-U.S. Pension
Postretirement
Benefits
Benefits
Medical Benefits
(In Millions)
2008
2007
2008
2007
2008
2007
Change in plan assets:
Beginning fair value of plan assets
$
227
$
245
$
548
$
447
$
1
$
1
Actual return on plan assets
(6
)
15
(132
)
(1
)
(1
)
Employer contributions
105
—
5
4
Plan participants
’
contributions
—
—
3
3
Currency exchange rate changes
—
—
—
—
Plan settlements
1
—
—
(
)
—
—
—
Benefits paid to participants
(23
)
(33
)
(28
)
(30
)
(7
)
(6
)
Ending fair value of plan assets
2
$
303
$
227
$
457
$
548
$
1
$
1
1
2008 curtailments and settlements were primarily related to the divestiture of our NOR flash memory business for
employees at our Israel and Philippines facilities.
2
As of December 27, 2008, our plan financial assets and liabilities were valued using the provisions of SFAS No. 157.