Texas Instruments 2006 Annual Report Download - page 39

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TEXAS INSTRUMENTS 2006 ANNUAL REPORT 3737
15. Supplemental Financial Information
Other Income (Expense) Net:
2006 2005 2004
Interest income ....................................................................... $196 $165 $136
Settlement of Italian grants (a) ......................................................... 28 11 54
Sales tax refundbenefits (b) ........................................................... 20 —19
Other (c) ............................................................................. 21 29 24
Total ................................................................................. $ 265 $205 $233
(a) Reflects benefits recognized due to the resolution of matters relating to grants from the government of Italy to our former memory business operations in
Italy (see Note 14 for details).
(b) Reflects refunds of overpayments attributable to previously divested businesses and interest on refunds relating to settlements of audits of sales and use
taxes paid to the State of Texas.
(c) Includes lease income of approximately $20 million per year, primarily from the purchaser of our former defense electronics business divested in 1997.
As of December 31, 2006, the aggregate amount of non-cancellable future lease payments to be received from these leases is $108 million. These leases
contain renewal options. Other also includes miscellaneous non-operational items such as gains and losses related to previously divested businesses,
interest income and expense related to non-investment items such as taxes, and gains and losses from currency exchange rate changes.
Inventories: DECEMBER 31,
2006 2005
Raw materials and purchased parts ............................................................. $105 $83
Work in process ............................................................................... 930 813
Finished goods ................................................................................ 402 289
Total ......................................................................................... $1,437 $1,185
Property, Plant and Equipment at Cost: DECEMBER 31,
Depreciable
Lives 2006 2005
Land ........................................................................... — $82$79
Buildings and improvements ...................................................... 5-40 years 2,890 2,930
Machinery and equipment ........................................................ 3-10 years 4,779 5,365
Total ........................................................................... $7,751 $8,374
Authorizations for property, plant and equipment expenditures in future years were $341 million at December 31, 2006.