Texas Instruments 2011 Annual Report Download - page 35

TEXAS INSTRUMENTS 2011 ANNUAL REPORT ■ 33
ANNUAL
REPORT
Authorizations for property, plant and equipment expenditures in future years were $249 million at December 31, 2011.
December 31,
Accrued expenses and other liabilities 2011 2010
Customer incentive programs and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $190 $ 118
Severance and related expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 19
Property and other non-income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 108
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 367 377
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $795 $622
December 31,
Accumulated other comprehensive income (loss), net of taxes 2011 2010
Unrealized losses on available-for-sale investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (3) $ (13)
Postretirement benefit plans:
Net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (780) (704)
Net prior service credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 916
Cash flow hedge derivative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) —
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(776) $(701)
17. Segment and geographic area data
Reportable segments
Our financial reporting structure comprises three reportable segments. These reportable segments, which are established along major
categories of products 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 digital
signal processors (DSPs). Analog semiconductors are also used to manage power distribution and consumption. Analog includes the
following major product lines: HVAL, Power, HPA and SVA.
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 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 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. Many wireless devices also use other semiconductors to enable wireless connectivity using technologies
such as Bluetooth®, WiFi networks, GPS, and Near Field Communications. Our OMAP applications processors and connectivity products
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. Our Wireless portfolio includes both
catalog products and custom products. Wireless also includes baseband products, which allow a cell phone to connect to the cellular
network. We are no longer investing in the development of baseband products, and almost all of our current baseband products are sold
to a single customer.
Other
In addition to our reportable segments, we also have Other. Other includes other operating segments that neither meet the quantitative
thresholds for individually reportable segments nor are they aggregated with other operating segments. These operating segments
primarily include our smaller semiconductor product lines such as DLP® products (primarily used in projectors to create high-definition
images), custom semiconductors known as ASICs, and our handheld graphing and scientific calculators.
Other also includes royalties received for our patented technology that we license to other electronics companies and revenue
from transitional supply agreements that we may enter into in connection with acquisitions and divestitures. Other may also include
certain unallocated income and expenses such as gains and losses on sales of assets; sales tax refunds; and certain litigation costs,
settlements or reserves. Except for these few unallocated items, we allocate all of our expenses associated with corporate activities to
our operating segments based on specific methodologies, such as percentage of operating expenses or headcount.