Texas Instruments 2006 Annual Report Download - page 40

Download and view the complete annual report

Please find page 40 of the 2006 Texas Instruments annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 64

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64

TEXAS INSTRUMENTS 2006 ANNUAL REPORT
3838
Accrued Expenses and Other Liabilities: DECEMBER 31,
2006 2005
Accrued salaries, wages and vacation pay ...................................................... $368 $340
Customer incentive programs and allowances .................................................. 188 152
Property and other non-income taxes .......................................................... 126 134
Other ....................................................................................... 347 322
Total ........................................................................................ $ 1,029 $948
Accumulated Other Comprehensive Income: DECEMBER 31,
2006 2005
Unrealized losses on available-for-sale investments ............................................... $(12) $(16)
Postretirement benefit plans:
Minimum pension liability ..................................................................... —(65)
Prior service cost ............................................................................ 6—
Net actuarial loss ............................................................................ (357) —
Total .......................................................................................... $(363) $(81)
Cash Payments:
2006 2005 2004
Income taxes (net of refunds) ............................................................. $1,830 $591 $261
Interest (net of amounts capitalized) ....................................................... 7921
16. Subsequent Event
On January 22, 2007, we announced a plan to change the way we develop advanced digital manufacturing process
technology. Instead of separately creating our own core process technology, we will work collaboratively with our foundry
partners to specify and drive the next generations of digital process technology. Additionally, we will stop production at an
older digital factory and move its manufacturing equipment into several of our analog factories to support greater analog
output. These changes will be made throughout 2007, and when complete are expected to reduce annualized costs by
about $200 million. About 500 jobs are expected to be reduced by year end. In total, we will take restructuring charges of
approximately $55 million, about evenly distributed across the four quarters of 2007.