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ANNUAL
REPORT
TEXAS INSTRUMENTS 2012 ANNUAL REPORT • 27
Accumulated benefit obligations, which represent the benefit obligations excluding the impact of future salary increases, were
$1.01 billion and $875 million at year-end 2012 and 2011, respectively, for the U.S. defined benefit plans, and $2.23 billion and
$2.54 billion at year-end 2012 and 2011, respectively, for the non-U.S. defined benefit plans.
The amounts recorded in AOCI for the years ended December 31, 2012 and 2011, are detailed below by plan type:
U.S. Defined
Benefit U.S. Retiree
Health Care Non-U.S.
Defined Benefit Total
Net
Actuarial
Loss
Prior
Service
Cost
Net
Actuarial
Loss
Prior
Service
Cost
Net
Actuarial
Loss
Prior
Service
Cost
Net
Actuarial
Loss
Prior
Service
Cost
AOCI balance, December 31, 2011, net of taxes . . . . . $140 $ — $140 $14 $ 500 $(23) $ 780 $ (9)
Changes in AOCI by category in 2012:
Annual adjustments . . . . . . . . . . . . . . . . 72 — (31) 1 68 2 109 3
Reclassification of recognized transactions . . . . (16) (1) (13) (3) (234) 4 (263) —
Less tax expense (benefit) . . . . . . . . . . . . . (20) — 16 1 79 (2) 75 (1)
Total change to AOCI in 2012 . . . . . . . . . . . . 36 (1) (28) (1) (87) 4 (79) 2
AOCI balance, December 31, 2012, net of taxes . . . . $176 $ (1) $112 $13 $ 413 $(19) $ 701 $ (7)
The estimated amounts of net actuarial loss and unrecognized prior service cost (credit) included in AOCI as of December 31, 2012, that
are expected to be amortized into net periodic benefit cost over the next fiscal year are: $23 million and $1 million for the U.S. defined
benefit plans; $11 million and $4 million for the U.S. retiree health care plan; and $39 million and ($4) million for the non-U.S. defined
benefit plans.
Information on plan assets
We report and measure the plan assets of our defined benefit pension and other postretirement plans at fair value. The tables below
set forth the fair value of our plan assets as of December 31, 2012 and 2011, using the same three-level hierarchy of fair-value inputs
described in Note 9.
Fair Value
December 31, 2012 Level 1 Level 2 Level 3
Assets of U.S. defined benefit plan
Money market collective trusts . . . . . . . . . . . . . . . . . . . . . . . . . . $ 119 $ — $ 119 $ —
U.S. Government agency and Treasury securities . . . . . . . . . . . . . . . . . 247 — 247 —
U.S. bond funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 368 — 368 —
U.S. equity funds and option collars . . . . . . . . . . . . . . . . . . . . . . . . 219 — 219 —
International equity funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 — 81 —
Limited partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 — — 37
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,071 $ — $1,034 $ 37
Assets of U.S. retiree health care plan
Money market collective trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 49 $ — $ 49 $ —
U.S. bond funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205 205 — —
U.S. equity funds and option collars . . . . . . . . . . . . . . . . . . . . . . . . 197 46 151 —
International equity funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 — 66 —
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 517 $251 $ 266 $ —
Assets of non-U.S. defined benefit plans
Cash and money market collective trusts . . . . . . . . . . . . . . . . . . . . . . $ 133 $ 88 $ 45 $ —
Local market bond funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 942 183 759 —
International/global bond funds . . . . . . . . . . . . . . . . . . . . . . . . . . 343 19 324 —
Local market equity funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 20 184 —
International/global equity funds . . . . . . . . . . . . . . . . . . . . . . . . . . 564 — 564 —
Other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 — 13 19
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,218 $310 $1,889 $ 19