Investor Presentaiton
Contributions to the plans meet or exceed all minimum funding requirements. We expect to contribute about $100 million to our
retirement benefit plans in 2017. The amounts shown for underfunded U.S. defined benefit plans were for non-qualified pension
plans, which we do not fund because contributions to them are not tax deductible.
Accumulated benefit obligations, which are generally less than the projected benefit obligations as they exclude the impact
of future salary increases, were $926 million and $948 million as of December 31, 2016 and 2015, respectively, for the U.S.
defined benefit plans, and $2.22 billion and $2.09 billion as of December 31, 2016 and 2015, respectively, for the non-U.S. defined
benefit plans.
The change in AOCI is as follows:
U.S. Defined
Benefit
Net
Actuarial
Loss
U.S. Retiree Health Care
Net
Actuarial
Loss
Prior Service
Credit
Non-U.S. Defined Benefit
Net
Actuarial
Loss
Total
Prior Service
Credit
Net
Actuarial
Loss
Prior Service
Credit
AOCI balance, net of taxes, December 31,
2015
$ 167
$ 80
$ (13)
$ 303
$ (7)
$ 550
$ (20)
Changes in AOCI by category:
Adjustments
(10)
(27)
Recognized within Net income
(42)
(7)
3
Tax effect
18
12
(1)
មិនត
86
49
(27)
2
(76)
(11)
(1)
19
Total change to AOCI
(34)
(22)
2
48
1
(8)
523
(2)
AOCI balance, net of taxes,
December 31, 2016.
$ 133
$ 58
$ (11)
$ 351
$ (6)
$ 542
$ (17)
The estimated amounts of net actuarial loss and unrecognized prior service credit included in AOCI as of December 31, 2016,
that are expected to be amortized into net periodic benefit cost over the next fiscal year are: $15 million and none for the U.S.
defined benefit plans; $4 million and ($4) million for the U.S. retiree health care benefit plan; and $27 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 using the same three-level hierarchy of fair-value inputs described in Note 8. With
the adoption of ASU 2015-07, certain assets are no longer subject to disclosure by level of fair value but have been included in the
tables below to permit reconciliation to the total plan assets. See Note 2 for more information.
Level 1
Level 2
December 31, 2016
Level 3
Other (a)
Total
Assets of U.S. defined benefit plan:
Fixed income securities and cash equivalents
Equity securities
-
Total
$ 685
349
$ 1,034
$ 685
349
$ 1,034
Assets of U.S. retiree health care plan:
Fixed income securities and cash equivalents
Equity securities
$ 180
3
A
44
$ 227
207
Total
$ 180
$ 3
$ 251
207
$ 434
Assets of non-U.S. defined benefit plans:
Fixed income securities and cash equivalents
$ 19
$ 127
Equity securities.
5
18
$1,508
629
Other
-
-
3
$ 1,654
652
3
Total
$ 24
$ 145
$ 3
$ 2,137
$ 2,309
(a) Consists of bond index and equity index funds, measured at net asset value per share.
TEXAS INSTRUMENTS • 2016 FORM 10-K
51
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