Texas Instruments 2006 Annual Report Download - page 28

TEXAS INSTRUMENTS 2006 ANNUAL REPORT
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have recognized an additional minimum liability pursuant to the provisions of SFAS 87. The effect of recognizing the additional
minimum liability is included in the table below in the column labeled “Before Application of SFAS 158.”
Effects of Adoption of SFAS 158 on December 31, 2006 Balance Sheet
Before
Application
of SFAS 158
Recognition
of Funded
Status
Effect of
Change in
Measurement
Date
As
Reported at
December 31,
2006
Prepaid retirement costs ......................................... $440 $(440) $— $ —
Overfunded retirement plans (a) ................................... —62 (4)58
Deferred income taxes - current and non-current (b)................. 1,137 203 2 1,342
Accrued retirement costs ......................................... (59) 59 — —
Accrued profit sharing and retirement (c) .......................... (148) (14) — (162)
Underfunded retirement plans – non-current (d) .................... —(207) (1)(208)
Retained earnings ................................................ (17,535) — 6 (17,529)
Accumulated other comprehensive loss, net of tax:
Postretirement benefit plans .................................... 17 337 (3)351
(a) The balance after application of SFAS 158 represents plans with an excess fair value of plan assets over benefit obligations (i.e., an overfunded status).
(b) Adjustments made to deferred taxes are based on the amounts of prior service costs and net actuarial loss reclassified to AOCI upon implementation of
SFAS 158, at applicable tax rates, as well as the adjustment to retained earnings for the effect of changing the measurement date.
(c) Includes the $14 million liability after application of SFAS 158 that represents plans with an excess of expected benefit payments due within the next 12
months over the fair value of plan assets.
(d) The balance after application of SFAS 158 represents plans with an excess of benefit obligations over the fair value of plan assets (i.e., an underfunded
liability status), less the current portion.
The amounts recorded in AOCI for the year ended December 31, 2006, are further detailed by the type of plan to which they
are attributable:
AMOUNTS INCLUDED IN AOCI
Minimum
Pension
Liability
Prior Service
Cost
Net Actuarial
Loss Total
Balance, December 31, 2005 .......................................... $ 65 $ — $ — $ 65
2006 change in AOCI by plan type:
U.S. defined benefit ............................................. (5) 1 161 157
Non-U.S. defined benefit ......................................... (100) (37)280 143
Retiree health care .............................................. —21119140
Amounts in AOCI (before tax) .................................... (105) (15)560 440
Less tax (benefit) expense ....................................... 40 9 (203)(154)
Total changes in AOCI by plan type in 2006 ........................ (65) (6)357 286
Balance, December 31, 2006 (net of tax) ............................. $— $(6)$357 $ 351
The estimated amounts of prior service cost and actuarial net loss included in AOCI as of December 31, 2006, that are
expected to be amortized into net periodic benefit cost over the next fiscal year are $(3) million and $33 million for the defined
benefit pension plans and $2 million and $7 million for the other defined benefit postretirement plans.
As of December 31, 2006, we do not expect to return any of the assets of the plans to TI during the next 12 months.
Plan Descriptions: We provide various retirement plans for employees including defined benefit, defined contribution and retiree
health care benefit plans, as well as deferred compensation arrangements for qualifying employees.