Texas Instruments 2005 Annual Report Download - page 31

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The measurement date for the U.S. plans is December 31. The measurement date for the non-U.S. plans is September 30.
Obligation and asset data for the defined benefit and retiree health care benefit plans were as follows:
U.S.
Defined Benefit Retiree Health Care Non-U.S.
Defined Benefit
2005 2004 2005 2004 2005 2004
Obligation and funded status of plans:
Projected benefit obligation at beginning of year . $ 788 $ 742 $ 430 $ 383 $ 1,609 $ 1,483
Service cost ................................... 29 27 5246 55
Interest cost ................................... 42 43 22 22 47 50
Participant contributions ....................... ——16 13 34
Benefits paid .................................. (49) (46) (44) (64) (43) (39)
Plan amendments ............................. ——(4) 107 (64) —
Actuarial (gain)/loss ........................... 53 31 26 (34) 41 110
Settlements .................................... (12) (11) ———(30)
Curtailments ................................... 4—2(1) —(24)
Special termination benefits ................... 12—2——
Projected benefit obligation at end of year (PBO) . . $ 856 $ 788 $ 453 $ 430 $ 1,639 $ 1,609
Accumulated benefit obligation .................. $ 748 $ 704 $— $— $ 1,411 $ 1,391
Change in plan assets:
Fair value of plan assets at beginning of year . . . $ 785 $ 652 $ 323 $ 222 $ 848 $ 690
Actual return on plan assets .................. 52 58 15 26 181 85
Employer contributions ........................ 3127 1103 112 116
Participant contributions ....................... ——16 13 33
Benefits paid .................................. (49) (45) (44) (64) (43) (36)
Settlements .................................... (12) (7) ———(29)
Benefits payable ............................... ———23 ——
Actuarial (gains)/losses ........................ ————(19) 19
Fair value of plan assets at end of year (FVPA) . . $ 779 $ 785 $ 311 $ 323 $ 1,082 $ 848
Funded status (FVPA–PBO) ....................... $ (77) $ (3) $ (142) $ (107) $ (557) $ (761)
Recognition on TI balance sheets:
Funded status .................................... $ (77) $ (3) $ (142) $ (107) $ (557) $ (761)
Unrecognized net actuarial loss ............... 210 190 147 123 390 495
Unrecognized prior service cost/(benefit) ...... 1124 33 (48) 11
Adjustments from Sept. 30 to Dec. 31 ......... ————223 (13)
Accrued retirement costs at end of year ......... $ 134 $ 188 $29 $49 $8$ (268)
Amounts recognized in the balance sheets
consist of:
Accrued retirement, current liability ........... $— $— $— $— $ (10) $ (9)
Accrued retirement, noncurrent liability ....... (23) (17) (3) (3) (110) (569)
Prepaid retirement asset ...................... 150 202 32 52 28 23
Intangible asset ............................... 23————
Accumulated other comprehensive income .... 5———100 287
Total ............................................. $ 134 $ 188 $29 $49 $8$ (268)
The 2005 adjustments from the September 30 measurement date to the December 31 reporting date include the
approximate $210 million contribution to the Germany defined benefit pension plan, which was previously unfunded.
Also during 2005, the retirement plan in Japan experienced significantly better-than-expected investment returns. These
returns, plus additional company contributions to other plans, helped to improve the funded status of the non-U.S. plans,
shown in the preceding table. Overall, better-than-expected investment returns generally offset actuarial losses generated
by reductions in the discount rate assumption.
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TEXAS INSTRUMENTS 2005 ANNUAL REPORT