Texas Instruments 2014 Annual Report Download - page 49

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FORM 10-K
Profit sharing plans
Profit sharing benefits are generally formulaic and determined by one or more subsidiary or company-wide financial metrics. We pay
profit sharing benefits primarily under the company-wide TI Employee Profit Sharing Plan. This plan provides for profit sharing to be paid
based solely on TI’s operating margin for the full calendar year. Under this plan, TI must achieve a minimum threshold of 10 percent
operating margin before any profit sharing is paid. At 10 percent operating margin, profit sharing will be 2 percent of eligible payroll. The
maximum amount of profit sharing available under the plan is 20 percent of eligible payroll, which is paid only if TI’s operating margin is
at or above 35 percent for a full calendar year.
We recognized $269 million, $161 million and $96 million of profit sharing expense under the TI Employee Profit Sharing Plan in 2014,
2013 and 2012, respectively.
Income taxes
Income before Income Taxes U.S. Non-U.S. Total
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,684 $ 1,190 $ 3,874
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,507 1,247 2,754
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319 1,616 1,935
Provision (Benefit) for Income Taxes U.S. Federal Non-U.S. U.S. State Total
2014
Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 911 $ 194 $ 9 $ 1,114
Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (73) 11 1 (61)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 838 $ 205 $ 10 $ 1,053
2013
Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 291 $ 247 $ 4 $ 542
Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 33 — 50
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 308 $ 280 $ 4 $ 592
2012
Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (108) $ 156 $ (2) $ 46
Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 65 — 130
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (43) $ 221 $ (2) $ 176
Principal reconciling items from income tax computed at the statutory federal rate follow:
For Years Ended December 31,
2014 2013 2012
Computed tax at statutory rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,356 $ 964 $ 677
Non-U.S. effective tax rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (212) (156) (345)
U.S. R&D tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (59) (129) —
U.S. tax benefit for manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (51) (66) (158)
Impact of changes to uncertain tax positions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3(14) (88)
Non-deductible expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 613 42
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 (20) 48
Total provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,053 $ 592 $ 176
The total provision for 2013 in the reconciliation above includes $79 million of discrete tax benefits primarily for the reinstatement of the
U.S. R&D tax credit retroactive to 2012.
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