Texas Instruments 2014 Annual Report Download - page 44

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38
FORM 10-K
The table below reflects the changes in accrued restructuring balances associated with these actions:
2013 Actions Prior Actions
Total
Severance
and Benefits
Other
Charges
Severance
and Benefits
Other
Charges
Accrual at December 31, 2011 . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ 109 $ 7 $ 116
Restructuring charges (a) . . . . . . . . . . . . . . . . . . . . . . . . . — — 251 149 400
Non-cash items (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 3 (124) (121)
Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (23) (23) (46)
Remaining accrual at December 31, 2012 . . . . . . . . . . . . . . . . — — 340 9 349
Restructuring charges (a) . . . . . . . . . . . . . . . . . . . . . . . . . 49 — 36 41 126
Non-cash items (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (5) (17) (22)
Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (266) (26) (292)
Remaining accrual at December 31, 2013 . . . . . . . . . . . . . . . . 49 — 105 7 161
Restructuring charges (a) . . . . . . . . . . . . . . . . . . . . . . . 16 10 (6) — 20
Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (43) (1) (73) (7) (124)
Remaining accrual at December 31, 2014 . . . . . . . . . . . . . . . $ 22 $ 9 $ 26 $ — $ 57
(a) Includes changes in estimates.
(b) Reflects charges for goodwill impairment, stock-based compensation, impacts of postretirement benefit plans and accelerated
depreciation.
The accrual balances above are primarily reported as a component of either Accrued expenses and other liabilities or Deferred credits
and other liabilities on our Consolidated Balance Sheets, depending on the expected timing of payment.
Other
Gains on sales of assets
We recognized $75 million of gains on sales of assets in 2014. This consisted of $30 million associated with the sale of our site in Nice,
France; $28 million associated with the sales of real estate in Santa Clara, California; and $17 million of asset sales associated primarily
with the closure of our Houston, Texas, and Hiji, Japan, manufacturing facilities.
Gain on technology transfer
During 2013, we recognized a gain of $315 million on the transfer of wireless connectivity technology to a customer. This technology
was associated with the former Wireless business.
Gain on transfer of Japan substitutional pension
During 2012, we transferred the obligations and assets of the substitutional portion of our Japan pension plan to the government of
Japan, resulting in a net gain of $144 million. See Note 11 for additional details.
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We have stock options outstanding to participants under long-term incentive plans. We also have assumed stock options that were
granted by companies that we later acquired. Unless the options are acquisition-related replacement options, the option price per share
may not be less than 100 percent of the fair market value of our common stock on the date of the grant. Substantially all the options
have a 10 -year term and vest ratably over four years. Our options generally continue to vest after the option recipient retires.
We also have RSUs outstanding under long-term incentive plans. Each RSU represents the right to receive one share of TI common stock
on the vesting date, which is generally four years after the date of grant. Upon vesting, the shares are issued without payment by the
grantee. Beginning with 2013 grants, RSUs generally continue to vest after the recipient retires. Holders of most RSUs receive an annual
cash payment equivalent to the dividends paid on our common stock.
We have options and RSUs outstanding to non-employee directors under director compensation plans. The plans generally provide for
annual grants of stock options and RSUs, a one-time grant of RSUs to each new non-employee director and the issuance of TI common
stock upon the distribution of stock units credited to deferred compensation accounts established for such directors.
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