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 49
FORM 10-K
The components of acquisition-related intangible assets as of December 31, 2014 and 2013, are as follows:
December 31, 2014 December 31, 2013
Acquisition-Related
Intangibles
Amortization
Period (Years)
Gross Carrying
Amount
Accumulated
Amortization Net
Gross Carrying
Amount
Accumulated
Amortization Net
Developed technology . . . . . 5 - 10 $ 2,135 $ 714 $ 1,421 $ 2,157 $ 526 $ 1,631
Customer relationships . . . . . 8 810 330 480 821 239 582
Other intangibles . . . . . . . . 5 3 2 1 5 3 2
In-process R&D . . . . . . . . n/a — n/a — 8 n/a 8
Total . . . . . . . . . . . . . . . . $ 2,948 $ 1,046 $ 1,902 $ 2,991 $ 768 $ 2,223
Amortization of acquisition-related intangibles was $321 million, $336 million and $342 million for 2014, 2013 and 2012, respectively,
primarily related to developed technology. Fully amortized assets are written off against accumulated amortization. Future estimated
amortization of acquisition-related intangibles for the years ended December 31 is as follows:
Amortization of
Acquisition-Related
Intangibles
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 319
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340
Postretirement benefit plans
Plan descriptions
We have various employee retirement plans, including defined contribution, defined benefit and retiree health care benefit plans. For
qualifying employees, we offer deferred compensation arrangements.
U.S. retirement plans
Our principal retirement plans in the U.S. are a defined contribution plan; an enhanced defined contribution plan; and qualified and
non-qualified defined benefit pension plans. The defined benefit plans were closed to new participants in 1997, and current participants
were allowed to make a one-time election to continue accruing a benefit in the plans, or to cease accruing a benefit and instead to
participate in the enhanced defined contribution plan described below.
Both defined contribution plans offer an employer-matching savings option that allows employees to make pre-tax contributions to
various investment choices, including a TI common stock fund. Employees who elected to continue accruing a benefit in the qualified
defined benefit pension plans may also participate in the defined contribution plan, where employer-matching contributions are
provided for up to 2 percent of the employee’s annual eligible earnings. Employees who elected not to continue accruing a benefit in
the defined benefit pension plans, and employees hired after November 1997 and through December 31, 2003, may participate in the
enhanced defined contribution plan. This plan provides for a fixed employer contribution of 2 percent of the employee’s annual eligible
earnings, plus an employer-matching contribution of up to 4 percent of the employee’s annual eligible earnings. Employees hired after
December 31, 2003, do not receive the fixed employer contribution of 2 percent of the employee’s annual eligible earnings.
At December 31, 2014 and 2013, as a result of employees’ elections, TI’s U.S. defined contribution plans held shares of TI common
stock totaling 14 million shares and 15 million shares valued at $740 million and $678 million, respectively. Dividends paid on these
shares for 2014 and 2013 were $19 million and $18 million, respectively.
Our aggregate expense for the U.S. defined contribution plans was $60 million in 2014, $62 million in 2013 and $70 million in 2012.
The defined benefit pension plans include employees still accruing benefits, as well as employees and participants who no longer
accrue service-related benefits, but instead, may participate in the enhanced defined contribution plan. Benefits under the qualified
defined benefit pension plan are determined using a formula based upon years of service and the highest five consecutive years of
compensation. We intend to contribute amounts to this plan to meet the minimum funding requirements of applicable local laws and
regulations, plus such additional amounts as we deem appropriate. The non-qualified defined benefit plans are unfunded and closed to
new participants.
11.