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TEXAS INSTRUMENTS 2013 ANNUAL REPORT • 23
ANNUAL
REPORT
The components of acquisition-related intangible assets as of December 31, 2013 and 2012, are as follows:
December 31, 2013 December 31, 2012
Amortization
Period
(Years)
Gross
Carrying
Amount Accumulated
Amortization Net
Gross
Carrying
Amount Accumulated
Amortization Net
Acquisition-related intangibles:
Developed technology . . . . . . . . . . . . . . 5- 10 $2,157 $526 $1,631 $2,145 $312 $1,833
Customer relationships . . . . . . . . . . . . . . 5 - 8 821 239 582 821 137 684
Other intangibles . . . . . . . . . . . . . . . . 55 3 2 46 36 10
In-process R&D . . . . . . . . . . . . . . . . . (a) 8 n/a 8 31 n/a 31
Total . . . . . . . . . . . . . . . . . . . . . . . . . $2,991 $768 $2,223 $3,043 $485 $2,558
(a) In-process R&D is not amortized until the associated project has been completed. Alternatively, if the associated project is
determined not to be viable, it is expensed.
Amortization of acquisition-related intangibles was $336 million, $342 million and $111 million for 2013, 2012 and 2011, respectively,
primarily related to developed technology. Fully amortized assets are written off against accumulated amortization. Future estimated
amortization of acquisition-related intangibles for the years ended December 31 is as follows:
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $321
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 628
11. Postretirement benefit plans
Plan descriptions
We have various employee retirement plans including defined benefit, defined contribution and retiree health care benefit plans. For
qualifying employees, we offer deferred compensation arrangements.
U.S. retirement plans:
Our principal retirement plans in the U.S. are qualified and non-qualified defined benefit pension plans, all of which were closed to new
participants after November 1997; a defined contribution plan; and an enhanced defined contribution plan. The defined benefit pension
plans include employees still accruing benefits as well as employees and participants who no longer accrue service-related benefits, but
instead, may participate in the enhanced defined contribution plan.
Both defined contribution plans offer an employer-matching savings option that allows employees to make pre-tax contributions to
various investment choices, including a TI common stock fund. Employees who elected to continue accruing a benefit in the qualified
defined benefit pension plans may also participate in the defined contribution plan, where employer-matching contributions are
provided for up to 2 percent of the employee’s annual eligible earnings. Employees who elected not to continue accruing a benefit in
the defined benefit pension plans, and employees hired after November 1997 and through December 31, 2003, may participate in the
enhanced defined contribution plan. This plan provides for a fixed employer contribution of 2 percent of the employee’s annual eligible
earnings, plus an employer-matching contribution of up to 4 percent of the employee’s annual eligible earnings. Employees hired after
December 31, 2003, do not receive the fixed employer contribution of 2 percent of the employee’s annual eligible earnings.
At December 31, 2013 and 2012, as a result of employees’ elections, TI’s U.S. defined contribution plans held shares of TI common
stock totaling 15 million shares and 20 million shares valued at $678 million and $610 million, respectively. Dividends paid on these
shares for 2013 and 2012 were $18 million and $16 million, respectively.
Our aggregate expense for the U.S. defined contribution plans was $62 million in 2013, $70 million in 2012 and $55 million in 2011.