Texas Instruments 2010 Annual Report Download - page 31

TEXAS INSTRUMENTS 2010 ANNUAL REPORT
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December฀31,฀
Inventories 2010 2009
Raw materials and purchased parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 122 $ 93
Work in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ฀ 919 758
Finished goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ฀ 479 351
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,520 $1,202
Finished goods include inventory placed on consignment of $130 million and $118 million as of December 31, 2010 and 2009, respectively.
December฀31,
Property, plant and equipment at cost Depreciable฀Lives 2010 2009
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — $ 92 $ 83
Buildings and improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-40 years 2,815 2,867
Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-10 years 4,000 3,755
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,907 $6,705
Authorizations for property, plant and equipment expenditures in future years were $386 million at December 31, 2010.
December฀31,฀
Accrued expenses and other liabilities 2010 2009
Customer incentive programs and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 118 $ 118
Property and other non-income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 89
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 396 363
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 622 $ 570
December฀31,฀
Accumulated other comprehensive income (loss), net of taxes 2010 2009
Unrealized losses on available-for-sale investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (13) $ (20)
Postretirement benefit plans:
Net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ฀ (704) (615)
Prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ฀ 16 14
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(701) $(621)
15. Segment and geographic area data
Our financial reporting structure comprises three reportable segments. These reportable segments, which are established along major
product lines having unique design and development requirements, are as follows:
Analog – Analog semiconductors change real-world signals – such as sound, temperature, pressure or images – by conditioning them,
amplifying them and often converting them to a stream of digital data that can be processed by other semiconductors, such as DSPs.
Analog semiconductors are also used to manage power distribution and consumption. Analog includes high-volume analog & logic,
high-performance analog and power management products.
Embedded Processing – Our Embedded Processing products include our DSPs and microcontrollers. DSPs perform mathematical
computations almost instantaneously to process or improve digital data. Microcontrollers are designed to control a set of specific tasks
for electronic equipment. We make and sell standard, or catalog, Embedded Processing products used in many different applications
and custom Embedded Processing products used in specific applications, such as communications infrastructure equipment and
automotive.
Wireless – Growth in the wireless handset market is being driven by the demand for smartphones, tablet computers and other emerging
portable devices. Many of today’s smartphones and tablets use an applications processor to run the device’s software operating system
and enable expanded functionality. Smartphones and tablets also use other semiconductors to enable connectivity through means other
than the cellular network (for example, Bluetooth® devices, WiFi networks, GPS location services, or Near Field Communication (NFC)).
Our connectivity products and OMAP applications processors enable us to take advantage of the increasing demand for more powerful
and more functional mobile devices. We design, make and sell products to satisfy each of these requirements. Wireless products are
typically sold in high volumes, and our Wireless portfolio includes both standard products and custom products.