Texas Instruments 2008 Annual Report Download - page 24

[ 22 ] TEXAS INSTRUMENTS 2008 ANNUAL REPORT
Portion of Carrying Value
Measured at Fair Value
Dec. 31, 2008 Level 1 Level 2 Level 3
Items measured at fair value on a recurring basis:
Cash equivalents:
Corporate obligations guaranteed by FDIC ................... $50 $ — $ 50 $ —
Money market funds ................................... 796 796 — —
Short-term investments:
Corporate obligations guaranteed by FDIC ................... 435 —435 —
Corporate obligations guaranteed by U.K. government.......... 155 —155 —
U.S. government agency and Treasury securities .............. 654 654 — —
Mortgage-backed securities – GSE guaranteed ............... 139 —139 —
Mortgage-backed securities – senior bonds ................. 105 —105 —
Other ............................................... 6— 6 —
Long-term investments:
Auction-rate securities.................................. 482 — — 482
Mutual funds ......................................... 96 96 — —
Total assets............................................. $2,918 $1,546 $890 $482
Deferred credits and other liabilities:
Deferred compensation liabilities .......................... $138 $138 $ — $ —
Changes in fair value during the period (pre-tax)
Level 3
Balance, December 31, 2007............................. $ —
Transfers into Level 3 ................................. 556
Unrealized loss – included in AOCI....................... (53)
Redemptions at par................................... (21)
Balance, December 31, 2008 ........................... $482
11. Goodwill and other acquisition-related intangibles
As a result of changing our segment reporting structure, we allocated all goodwill related to the former Semiconductor reporting unit to
our new reporting units for the purpose of testing goodwill for possible impairment.
Goodwill was allocated to the reporting units based on their relative fair values. Balances as of December 31, 2008, by segment are
as follows:
Analog
Embedded
Processing Wireless Other Total
Goodwill ................................................... $ 567 $ 157 $ 82 $ 34 $ 840
There was no impairment of goodwill during 2008 or 2007. The goodwill balances shown on our balance sheets are net of total
accumulated amortization of $221 million at year-end 2008 and 2007.
In 2008 and 2007, we recognized intangible assets associated with acquisitions we made during the year of $13 million and
$45 million, respectively, primarily for developed technology, to be amortized over three to five years.
There were no significant in-process R&D charges associated with 2008 or 2007 acquisitions. In 2006 we recorded a $5 million
charge for in-process R&D as a result of the acquisition of Chipcon.