Texas Instruments 2015 Annual Report Download - page 42

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
36
FORM 10-K
Acquisition charges
We incurred various costs as a result of the 2011 acquisition of National that are included in Other for segment reporting purposes,
consistent with how management measures the performance of its segments. Total acquisition-related charges are detailed below:
For Years Ended December 31,
2014 2013 2012
Amortization of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 319 $ 323 $ 325
Stock-based compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 11 17
Retention bonuses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —7 57
Severance and other benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —— 16
Transaction and other costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —— 35
As recorded in Acquisition charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330 341 450
As recorded in COR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —— 21
Total acquisition-related charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 330 $ 341 $ 471
Acquisition charges
The amount of recognized amortization of intangible assets resulting from the National acquisition is based on estimated useful lives.
See Note 10 for additional information.
Stock-based compensation was recognized for the accelerated vesting of equity awards upon the termination of employees, with
additional compensation being recognized over the applicable vesting period for the remaining grantees.
Retention bonuses reflect amounts paid to former National employees who fulfilled agreed-upon service period obligations and that
were recognized ratably over the required service period.
Severance and other benefits costs were for former National employees who were terminated after the closing date. About 350 jobs
were eliminated by the end of 2012 as a result of redundancies and cost efficiency measures. As of December 31, 2014, a total of
$86 million in cumulative charges have been recognized, of which $84 million has been paid, including $41 million related to change
of control provisions under existing employment agreements.
Transaction and other costs included various expenses incurred in connection with the National acquisition.
COR
In 2011, we discontinued using one of National’s distributors. We acquired the distributor’s inventory at fair value, resulting in an
incremental charge of $21 million to COR upon sale of the inventory in 2012.
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