Texas Instruments 2008 Annual Report Download - page 33

TEXAS INSTRUMENTS 2008 ANNUAL REPORT [ 31 ]
Accumulated other comprehensive income (loss), net of taxes
December 31,
2008 2007
Unrealized losses on available-for-sale investments ......................................... $(43)$(5)
Postretirement benefit plans:
Prior service cost ................................................................ 21 5
Net actuarial loss ................................................................ (768)(324)
Total ............................................................................. $(790)$(324)
17. Segment and geographic area data
In the fourth quarter of 2008, we revised our internal financial reporting structure to provide enhanced information about the performance
of our major product categories. Prior period segment presentations have been revised to conform to our new reporting structure.
Our financial reporting structure comprises three reportable segments. These reportable segments, which are established along
major product lines having unique design and development requirements, are as follows:
Analog – Analog semiconductors change real-world signals – such as sound, temperature, pressure or images – by conditioning them,
amplifying them and often converting them to a stream of digital data so the signals can be processed by other semiconductors, such
as DSPs. Analog semiconductors are also used to manage power distribution and consumption. Analog includes high-performance
analog and high-volume analog & logic products.
Embedded Processing – Our Embedded Processing products are DSPs (other than DSPs specific to our Wireless segment)
and microcontrollers. DSPs perform mathematical computations almost instantaneously to process and improve digital data.
Microcontrollers are microprocessors that are designed to control a set of specific tasks for electronic equipment. We make and sell
standard, or catalog, Embedded Processing products used in many different applications and custom Embedded Processing products
used in specific applications, such as communications infrastructure equipment and automotive.
Wireless – Cell phones require a modem or “baseband” to connect to the wireless carrier’s network. Many of today’s advanced cell
phones also require an applications processor to run the phone’s software and services, and semiconductors to enable connectivity to
Bluetooth® devices, WiFi networks or GPS location services. We design, make and sell products to satisfy each of these requirements.
Wireless products are typically sold in high volumes and our Wireless portfolio includes both standard (or merchant) products and
custom products.
We also have Other, which includes other operating segments that neither meet the quantitative thresholds for individually
reportable segments nor are they aggregated with other operating segments. These operating segments primarily include our smaller
semiconductor product lines such as DLP® products (primarily used to create high-definition images for business and home theater
projectors, televisions and movie projectors); RISC microprocessors (designed to provide very fast computing and are often implemented
in servers); and, custom semiconductors known as ASICs. Other also includes handheld graphing and scientific calculators and royalties
received for our patented technology that we license to other electronics companies.
Other may also include certain unallocated income and expenses such as gains and losses on sales of assets; sales tax refunds; and
certain litigation costs, settlements or reserves. Except for the few unallocated items just mentioned, we allocate all of our expenses
associated with corporate activities to our operating segments based on specific methodologies, such as percentage of operating
expenses or headcount.
With the exception of goodwill, we do not identify or allocate assets by operating segment, nor does the chief operating decision
maker evaluate operating segments using discrete asset information. There was no significant intersegment revenue. The accounting
policies of the segments are the same as those described in the summary of significant accounting policies.