Annual report pursuant to Section 13 and 15(d)

Retirement Benefit Plans (Tables)

v3.6.0.2
Retirement Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Changes in Projected Benefit Obligations [Table Text Block]
The vested benefit obligation for a defined benefit pension plan is the actuarial present value of the vested benefits to which the employee is currently entitled based on the employee's expected date of separation or retirement. The changes in the projected benefit obligations and fair value of plan assets at the end of each period for the plans described above were as follows:
 
 
U.S. Pension Benefits
 
Non-U.S. Pension
Benefits
 
U.S. Postretirement
Medical Benefits
(In Millions)
 
Dec 31,
2016
 
Dec 26,
2015
 
Dec 31,
2016
 
Dec 26,
2015
 
Dec 31,
2016
 
Dec 26,
2015
Beginning projected benefit obligation
 
$
990

 
$
892

 
$
2,140

 
$
2,423

 
$
560

 
$
546

Service cost
 
17

 
18

 
113

 
128

 
26

 
30

Interest cost
 
43

 
33

 
63

 
63

 
23

 
21

Actuarial (gain) loss
 
482

 
126

 
93

 
(250
)
 
(26
)
 
(21
)
Currency exchange rate changes
 

 

 
(80
)
 
(190
)
 

 

Plan settlements
 
(162
)
 
(70
)
 
(40
)
 

 

 

Other
 
9

 
(9
)
 
(28
)
 
(34
)
 
5

 
(16
)
Ending projected benefit obligation
 
$
1,379

 
$
990

 
$
2,261

 
$
2,140

 
$
588

 
$
560

Schedule of Changes in Fair Value of Plan Assets [Table Text Block]
 
 
U.S. Pension Benefits
 
Non-U.S. Pension
Benefits
 
U.S. Postretirement
Medical Benefits
(In Millions)
 
Dec 31,
2016
 
Dec 26,
2015
 
Dec 31,
2016
 
Dec 26,
2015
 
Dec 31,
2016
 
Dec 26,
2015
Beginning fair value of plan assets
 
$
627

 
$
623

 
$
1,011

 
$
1,017

 
$
410

 
$
427

Actual return on plan assets
 
41

 
(4
)
 
40

 
42

 
29

 
6

Employer contributions
 
289

 
90

 
127

 
72

 

 
1

Currency exchange rate changes
 

 

 
(26
)
 
(66
)
 

 

Plan settlements
 
(162
)
 
(70
)
 
(40
)
 

 

 

Benefits paid to plan participants
 
(11
)
 

 
(73
)
 
(84
)
 
(26
)
 
(17
)
Other
 
(2
)
 
(12
)
 
(125
)
 
30

 
(4
)
 
(7
)
Ending fair value of plan assets
 
$
782

 
$
627

 
$
914

 
$
1,011

 
$
409

 
$
410

Schedule of Amounts Recognized in Balance Sheet [Table Text Block]
The amounts recognized on the consolidated balance sheets at the end of each period were as follows:
 
 
U.S. Pension Benefits
 
Non-U.S. Pension
Benefits
 
U.S. Postretirement
Medical Benefits
(In Millions)
 
Dec 31,
2016
 
Dec 26,
2015
 
Dec 31,
2016
 
Dec 26,
2015
 
Dec 31,
2016
 
Dec 26,
2015
Other long-term assets
 
$

 
$

 
$

 
$
15

 
$

 
$

Accrued compensation and benefits
 

 

 
(4
)
 

 

 

Other long-term liabilities
 
(597
)
 
(363
)
 
(1,343
)
 
(1,144
)
 
(179
)
 
(150
)
Accumulated other comprehensive loss (income), before tax
 
548

 
158

 
1,055

 
908

 
12

 
39

Net amount recognized
 
$
(49
)
 
$
(205
)
 
$
(292
)
 
$
(221
)
 
$
(167
)
 
$
(111
)
Schedule of Net Periodic Benefit Cost Not yet Recognized [Table Text Block]
The amounts recorded in accumulated other comprehensive income (loss) before taxes at the end of each period were as follows:
 
 
U.S. Pension Benefits
 
Non-U.S. Pension
Benefits
 
U.S. Postretirement
Medical Benefits
 
(In Millions)
 
Dec 31,
2016
 
Dec 26,
2015
 
Dec 31,
2016
 
Dec 26,
2015
 
Dec 31,
2016
 
Dec 26,
2015
Net prior service credit (cost)
 
$

 
$

 
$
(17
)
 
$
(12
)
 
$
(38
)
 
$
(43
)
Net actuarial gain (loss)
 
(548
)
 
(158
)
 
(1,038
)
 
(896
)
 
26

 
4

Accumulated other comprehensive income (loss), before tax
 
$
(548
)
 
$
(158
)
 
$
(1,055
)
 
$
(908
)
 
$
(12
)
 
$
(39
)
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block]
As of December 31, 2016, the accumulated benefit obligation was $1.3 billion for the U.S. Intel Minimum Pension Plan ($899 million as of December 26, 2015) and $1.7 billion for the non-U.S. defined-benefit pension plans ($1.6 billion as of December 26, 2015). Included in the aggregate data in the following tables are the amounts applicable to our pension plans with accumulated benefit obligations in excess of plan assets, as well as plans with projected benefit obligations in excess of plan assets. Amounts related to such plans at the end of each period were as follows:
 
 
U.S. Pension Benefits
 
Non-U.S. Pension
Benefits
(In Millions)
 
Dec 31,
2016
 
Dec 26,
2015
 
Dec 31,
2016
 
Dec 26,
2015
Plans with accumulated benefit obligations in excess of plan assets:
 
 
 
 
 
 
 
 
Accumulated benefit obligations
 
$
1,282

 
$
899

 
$
1,694

 
$
1,239

Plan assets
 
$
782

 
$
627

 
$
914

 
$
645

Plans with projected benefit obligations in excess of plan assets:
 
 
 
 
 
 
 
 
Projected benefit obligations
 
$
1,379

 
$
990

 
$
2,261

 
$
2,079

Plan assets
 
$
782

 
$
627

 
$
914

 
$
934

Schedule of Assumptions Used [Table Text Block]
Weighted average actuarial assumptions used to determine benefit obligations for the plans at the end of each period were as follows:
 
 
U.S. Pension Benefits
 
Non-U.S. Pension
Benefits
 
U.S. Postretirement
Medical Benefits
  
 
Dec 31,
2016
 
Dec 26,
2015
 
Dec 31,
2016
 
Dec 26,
2015
 
Dec 31,
2016
 
Dec 26,
2015
Discount rate
 
4.3
%
 
4.0
%
 
2.5
%
 
3.1
%
 
4.2
%
 
4.1
%
Rate of compensation increase
 
3.6
%
 
3.7
%
 
3.6
%
 
3.8
%
 
n/a

 
n/a

Weighted average actuarial assumptions used to determine costs for the plans for each period were as follows:
 
 
U.S. Pension Benefits
 
Non-U.S. Pension Benefits
 
U.S. Postretirement
Medical Benefits
 
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Discount rate
 
3.7
%
 
3.8
%
 
4.6
%
 
3.1
%
 
2.8
%
 
4.0
%
 
3.8
%
 
3.9
%
 
4.6
%
Expected long-term rate of return on plan assets
 
5.6
%
 
6.1
%
 
5.4
%
 
5.5
%
 
5.7
%
 
5.7
%
 
7.0
%
 
7.4
%
 
7.4
%
Rate of compensation increase
 
3.7
%
 
3.8
%
 
3.8
%
 
3.8
%
 
4.0
%
 
4.1
%
 
n/a

 
n/a

 
n/a

Schedule of Expected Benefit Payments [Table Text Block]
Estimated benefit payments over the next 10 fiscal years are as follows:
(In Millions)
 
U.S. Pension
Benefits
 
Non-U.S.
Pension
Benefits
 
U.S.
Postretirement
Medical
Benefits
2017
 
$
80

 
$
23

 
$
29

2018
 
$
88

 
$
25

 
$
31

2019
 
$
85

 
$
25

 
$
33

2020
 
$
85

 
$
28

 
$
35

2021
 
$
89

 
$
30

 
$
38

2022-2026
 
$
415

 
$
213

 
$
238

U.S. Pension Benefits [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Allocation of Plan Assets [Table Text Block]
U.S. Intel Minimum Pension Plan assets measured at fair value on a recurring basis consisted of the following investment categories at the end of each period:
 
 
December 31, 2016
 
Dec 26,
2015
 
 
Fair Value Measured at Reporting Date Using
 
 
 
 
(In Millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Total
Equity securities
 
$
80

 
$
1

 
$

 
$
81

 
$
56

Fixed income
 
20

 
187

 
51

 
258

 
200

Other investments
 

 

 

 

 
4

Assets measured by fair value hierarchy
 
$
100

 
$
188

 
$
51

 
$
339

 
$
260

Assets measured at net asset value
 
 
 
 
 
 
 
436

 
367

Cash
 
 
 
 
 
 
 
7

 

Total U.S. pension plan assets at fair value
 
 
 
 
 
 
 
$
782

 
$
627

Non-U.S. Pension Benefits [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Allocation of Plan Assets [Table Text Block]
Non-U.S. plan assets measured at fair value on a recurring basis consisted of the following investment categories at the end of each period:
 
 
December 31, 2016
 
Dec 26,
2015
 
 
Fair Value Measured at Reporting Date Using
 
 
 
 
(In Millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Total
Equity securities
 
$
231

 
$

 
$
16

 
$
247

 
$
238

Fixed income
 

 
30

 
16

 
46

 
99

Assets measured by fair value hierarchy
 
$
231

 
$
30

 
$
32

 
$
293

 
$
337

Assets measured at net asset value
 
 
 
 
 
 
 
608

 
652

Cash
 
 
 
 
 
 
 
13

 
22

Total non-U.S. plan assets at fair value
 
 
 
 
 
 
 
$
914

 
$
1,011