Intel 2012 Annual Report Download - page 82

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Non-U.S. Pension Benefits. We also provide defined-benefit pension plans in certain other countries, most significantly
Ireland, Israel, Germany and Japan. Consistent with the requirements of local law, we deposit funds for certain plans with
insurance companies, with third-party trustees, or into government-managed accounts, and/or accrue for the unfunded
portion of the obligation. As of June 20, 2012 (the effective date), Ireland closed its pension plan to employees hired on or
after the effective date.
U.S. Postretirement Medical Benefits. Upon retirement, eligible U.S. employees are credited with a defined dollar amount,
based on years of service, into a U.S. Sheltered Employee Retirement Medical Account (SERMA). These credits can be
used to pay all or a portion of the cost to purchase coverage in the retiree’s choice of medical plan. If the available credits
are not sufficient to pay the entire cost of the coverage, the remaining cost is the retiree’s responsibility.
Funding Policy. Our practice is to fund the various pension plans and the U.S. postretirement medical benefits plan 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. Depending on the design of the plan, local
customs, and market circumstances, the liabilities of a plan may exceed qualified plan assets.
Benefit Obligation and Plan Assets
The changes in the benefit obligations and plan assets for the plans described above were as follows:
U.S. Pension Benefits
Non-U.S. Pension
Benefits
U.S. Postretirement
Medical Benefits
(In Millions)
2012
2011
2012
2011
2012
2011
Change in projected benefit obligation:
Beginning benefit obligation ................................
$ 1,480
$ 739
$ 1,121
$ 902
$ 369
$ 297
Service cost..........................................................
98
51
64
63
30
18
Interest cost ..........................................................
69
42
52
52
17
16
Plan acquisitions...................................................
—
—
—
68
—
—
Plan participants’ contributions.............................
—
—
11
10
4
4
Actuarial (gain) loss..............................................
108
688
172
98
75
45
Currency exchange rate changes.........................
—
—
15
(38)
—
—
Plan curtailments..................................................
—
—
—
(6)
—
—
Plan settlements...................................................
—
—
—
(13)
—
—
Benefits paid to plan participants..........................
(13)
(40)
(23)
(15)
(11)
(11)
Ending projected benefit obligation .................
$ 1,742
$ 1,480
$ 1,412
$ 1,121
$ 484
$ 369
U.S. Pension Benefits
Non-U.S. Pension
Benefits
U.S. Postretirement
Medical Benefits
(In Millions)
2012
2011
2012
2011
2012
2011
Change in plan assets:
Beginning fair value of plan assets................................
$ 648
$ 569
$ 722
$ 642
$ 116
$ 59
Actual return on plan assets................................
49
26
70
(26)
—
1
Plan acquisitions................................................................
—
—
—
72
—
—
Employer contributions............................................................
—
93
52
76
82
63
Plan participants’ contributions................................
—
—
11
10
4
4
Currency exchange rate changes................................
—
—
6
(24)
—
—
Plan settlements................................................................
—
—
—
(13)
—
—
Benefits paid to plan participants................................
(13)
(40)
(23)
(15)
(11)
(11)
Ending fair value of plan assets................................
$ 684
$ 648
$ 838
$ 722
$ 191
$ 116