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Investor Presentaiton

FORM 10-K For the U.S. qualified pension and retiree health care plans, the expected return on plan assets component of net periodic benefit cost is based upon a market-related value of assets. In accordance with U.S. GAAP, the market-related value of assets is the fair value adjusted by a smoothing technique whereby certain gains and losses are phased in over a period of three years. Changes in the benefit obligations and plan assets for defined benefit and retiree health care benefit plans are as follows: U.S. Defined Benefit 2016 2015 2016 U.S. Retiree Health Care 2015 Non-U.S. Defined Benefit 2016 2015 Change in plan benefit obligation Benefit obligation at beginning of year: $1,033 $ 1,076 $ 463 $ 513 $ 2,231 $ 2,316 Service cost 22 22 5 5 34 35 Interest cost 42 43 20 20 52 53 Participant contributions 10 19 6 6 Benefits paid (9) (38) (46) (73) Medicare subsidy Actuarial loss (gain) Settlements Plan amendments Effects of exchange rate changes 1 3 27 (85) (94) ㅇㅎ (6) (27) (21) 259 14 (8) (18) (30) (136) (102) Benefit obligation at end of year (BO) Change in plan assets Fair value of plan assets at beginning of year: Actual return on plan assets $1,030 $ 1,033 434 $ 463 $2,361 $ 2,231 $1,019 $1,082 $ 441 $ 497 $ 2,134 $ 2,213 Employer contributions (funding of qualified plans) Employer contributions (payments for non-qualified plans) .. Participant contributions Benefits paid 775 79 (24) 20 227 25 15 52 1 1 160 72 15 Settlements Effects of exchange rate changes | | 10 19 6 (9) (8) (38) (46) (77) (73) (85) (94) (8) (18) (133) (91) Other - - (30) - Fair value of plan assets at end of year (FVPA) $ 1,034 $ 1,019 $ 434 $ 441 $ 2,309 $ 2,134 $ 4 $ (14) $ (22) $ (52) $ (97) F |£ | 1 | 6 1 Funded status (FVPA - BO) at end of year Amounts recognized on our Consolidated Balance Sheets as of December 31, are as follows: U.S. Defined Benefit U.S. Retiree Health Care Non-U.S. Defined Benefit Total 2016 Overfunded retirement plans $ 66 $ 3 $ 27 $ 96 Accrued expenses and other liabilities & Deferred credits and other liabilities (9) (6) (15) Underfunded retirement plans (53) (3) (73) (129) Funded status (FVPA - BO) at end of 2016 $ 4 SA (52) (48) 2015 Overfunded retirement plans $ 51 SA | $ 34 $ 85 Accrued expenses and other liabilities & Deferred credits and other liabilities (16) Underfunded retirement plans (49) Funded status (FVPA - BO) at end of 2015 $ (14) $ (22) 22 (22) (6) (125) (22) (196) $ (97) $ (133) 50 TEXAS INSTRUMENTS . 2016 FORM 10-K
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