Texas Instruments 2014 Annual Report Download - page 58

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

FORM 10-K
Accumulated benefit obligations, which are generally less than the projected benefit obligations as they exclude the impact of future
salary increases, were $968 million and $882 million at December 31, 2014 and 2013, respectively, for the U.S. defined benefit plans,
and $2.15 billion and $2.12 billion at December 31, 2014 and 2013, respectively, for the non-U.S. defined benefit plans.
The amounts recorded in AOCI for the years ended December 31, 2014 and 2013, are detailed below by plan type:
U.S. Defined
Benefit
U.S. Retiree
Health Care
Non-U.S.
Defined Benefit Total
Net
Actuarial
Loss
Prior
Service
Credit
Net
Actuarial
Loss
Prior
Service
Cost
Net
Actuarial
Loss
Prior
Service
Credit
Net
Actuarial
Loss
Prior
Service
Credit
AOCI balance, net of taxes,
December 31, 2013 . . . . . . . . . . . $ 149 $ (2) $ 71 $ 10 $ 305 $ (9) $ 525 $ (1)
Changes in AOCI by category
Adjustments . . . . . . . . . . . . . . . 37 — 29 — 5 1 71 1
Recognized within Net income . . . . . (31) 3 (7) (3) (25) — (63) —
Tax effect . . . . . . . . . . . . . . . . (2) (1) (8) 1 6 — (4) —
Total change to AOCI . . . . . . . . . . 4 2 14 (2) (14) 1 4 1
AOCI balance, net of taxes,
December 31, 2014 . . . . . . . . . . . $ 153 $ — $ 85 $ 8 $ 291 $ (8) $ 529 $ —
The estimated amounts of net actuarial loss and unrecognized prior service cost (credit) included in AOCI as of December 31, 2014, that
are expected to be amortized into net periodic benefit cost over the next fiscal year are: $19 million and none for the U.S. defined benefit
plans; $9 million and $6 million for the U.S. retiree health care benefit plan; and $22 million and ($2) million for the non-U.S. defined
benefit plans.
Information on plan assets
We report and measure the plan assets of our defined benefit pension and other postretirement plans at fair value. The tables below
set forth the fair value of our plan assets as of December 31, 2014 and 2013, using the same three-level hierarchy of fair-value inputs
described in Note 9.
Fair Value
December 31,
2014 Level 1 Level 2 Level 3
Assets of U.S. defined benefit plan
Fixed income securities and cash equivalents . . . . . . . . . . . . . . . . . $ 707 $ — $ 707 $ —
Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375 — 375 —
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — —
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,082 $ — $ 1,082 $ —
Assets of U.S. retiree health care plan
Fixed income securities and cash equivalents . . . . . . . . . . . . . . . . . $ 243 $ 200 $ 43 $ —
Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254 — 254 —
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 497 $ 200 $ 297 $ —
Assets of non-U.S. defined benefit plans
Fixed income securities and cash equivalents . . . . . . . . . . . . . . . . . $ 1,608 $ 430 $ 1,178 $ —
Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600 6 594 —
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 — — 5
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,213 $ 436 $ 1,772 $ 5