Investor Presentaiton
Restructuring charges
In the fourth quarter of 2016, we recognized $18 million of restructuring charges for severance and benefit costs related to the
reorganization of product lines that we announced in January 2017. As of December 31, 2016, no payments have been made.
We announced in January 2016 our intentions to phase out through the end of 2018 a manufacturing facility in Greenock,
Scotland. We are moving production from this facility to more cost-effective 200-millimeter TI manufacturing facilities in Germany,
Japan and Maine. Total restructuring charges, primarily severance and related benefit costs associated with the expected
reduction of about 350 jobs, are estimated to be about $40 million. We recognized charges of $7 million in 2016 and $17 million in
2015. These charges were comprised of severance and benefits costs, as well as accelerated depreciation. The remaining charges
are expected to be recognized through the end of 2018.
The 2014 restructuring charges were related to prior actions in Embedded Processing and Japan. These actions have been
completed.
Changes in accrued restructuring balances
Balance, January 1
Restructuring charges
2016
2015
2014
$ 32
$ 57
$ 161
25
14
20
Non-cash items (a)
(6)
Payments
(11)
(39)
(124)
Balance, December 31
$ 40
$ 32
57
(a) Reflects charges for impacts of accelerated depreciation and changes in exchange rates.
Gains on sales of assets
FORM 10-K
In 2016, we recognized a gain of $40 million on the sale of intellectual property.
We recognized $83 million of gains on sales of assets in 2015. This included $48 million associated with the sale of a site in Plano,
Texas, and $34 million associated with the sale of a manufacturing facility in Houston, Texas.
We recognized $75 million of gains on sales of assets in 2014. This consisted of $30 million associated with the sale of a site in
Nice, France; $28 million associated with the sales of real estate in Santa Clara, California; and $17 million of asset sales
associated primarily with factory closures in Houston, Texas, and Hiji, Japan.
4. Stock compensation
We have stock options outstanding to participants under long-term incentive plans. We also have assumed stock options that were
granted by companies that we later acquired. Unless the options are acquisition-related replacement options, the option price per
share may not be less than the fair market value of our common stock on the date of the grant. The options have a 10-year term
and generally vest ratably over four years. Our options continue to vest after the option recipient retires.
We also have RSUs outstanding under long-term incentive plans. Each RSU represents the right to receive one share of TI common
stock on the vesting date, which is generally four years after the date of grant. Upon vesting, the shares are issued without
payment by the grantee. Our RSUs continue to vest after the recipient retires. Holders of RSUs receive an annual cash payment
equivalent to the dividends paid on our common stock.
We have options and RSUs outstanding to non-employee directors under director compensation plans. The plans generally provide
for annual grants of stock options and RSUs, a one-time grant of RSUs to each new non-employee director and the issuance of TI
common stock upon the distribution of stock units credited to deferred compensation accounts established for such directors.
We also have an employee stock purchase plan under which options are offered to all eligible employees in amounts based on a
percentage of the employee's compensation, subject to a cap. Under the plan, the option price per share is 85 percent of the fair
market value on the exercise date, and options have a three-month term.
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TEXAS INSTRUMENTS . 2016 FORM 10-KView entire presentation