Annual report pursuant to Section 13 and 15(d)

Retirement Benefit Plans (Tables)

v2.4.0.6
Retirement Benefit Plans (Tables)
 12 Months Ended
Dec. 29, 2012
Retirement Benefit Plans (Tables) [Abstract]  
Schedule of Changes in Projected Benefit Obligations [Table Text Block]
  U.S. Pension   Non-U.S. Pension   U.S. Postretirement
  Benefits   Benefits   Medical Benefits
(In Millions) 2012   2011   2012   2011   2012   2011
Change in projected benefit obligation:                                  
Beginning benefit obligation $ 1,480   $ 739   $ 1,121   $ 902   $ 369   $ 297
Service cost   98     51     64     63     30     18
Interest cost   69     42     52     52     17     16
Plan acquisitions   —     —     —     68     —     —
Plan participants’ contributions   —     —     11     10     4     4
Actuarial (gain) loss   108     688     172     98     75     45
Currency exchange rate changes   —     —     15     (38)     —     —
Plan curtailments   —     —     —     (6)     —     —
Plan settlements   —     —     —     (13)     —     —
Benefits paid to plan participants   (13)     (40)     (23)     (15)     (11)     (11)
Ending projected benefit obligation $ 1,742   $ 1,480   $ 1,412   $ 1,121   $ 484   $ 369
Schedule of Changes in Fair Value of Plan Assets [Table Text Block]
  U.S. Pension   Non-U.S. Pension   U.S. Postretirement
  Benefits   Benefits   Medical Benefits
(In Millions) 2012   2011   2012   2011   2012   2011
Change in plan assets:                                  
Beginning fair value of plan assets $ 648   $ 569   $ 722   $ 642   $ 116   $ 59
Actual return on plan assets   49     26     70     (26)     —     1
Plan acquisitions   —     —     —     72     —     —
Employer contributions   —     93     52     76     82     63
Plan participants’ contributions   —     —     11     10     4     4
Currency exchange rate changes   —     —     6     (24)     —     —
Plan settlements   —     —     —     (13)     —     —
Benefits paid to plan participants   (13)     (40)     (23)     (15)     (11)     (11)
Ending fair value of plan assets $ 684   $ 648   $ 838   $ 722   $ 191   $ 116
Schedule of Amounts Recognized in Balance Sheet [Table Text Block]

The following table summarizes the amounts recognized on the consolidated balance sheets as of December 29, 2012 and December 31, 2011:

  U.S. Pension   Non-U.S. Pension   U.S. Postretirement
  Benefits   Benefits   Medical Benefits
(In Millions) 2012   2011   2012   2011   2012   2011
Other long-term assets $ —   $ —   $ 1   $ 6   $ —   $ —
Accrued compensation and benefits   —     —     (3)     (7)     —     —
Other long-term liabilities   (1,058)     (832)     (572)     (398)     (293)     (253)
Accumulated other comprehensive loss (income), before tax   1,050     1,039     477     330     138     66
Net amount recognized $ (8)   $ 207   $ (97)   $ (69)   $ (155)   $ (187)
Schedule of Net Periodic Benefit Cost Not yet Recognized [Table Text Block]

The following table summarizes the amounts recorded in accumulated other comprehensive income (loss) before taxes, as of December 29, 2012 and December 31, 2011:

  U.S. Pension   Non-U.S. Pension   U.S. Postretirement
  Benefits   Benefits   Medical Benefits
(In Millions) 2012   2011   2012   2011   2012   2011
Net prior service credit (cost) $ —   $ —   $ 12   $ 14   $ (60)   $ (63)
Net actuarial gain (loss)   (1,050)     (1,039)     (489)     (344)     (78)     (3)
Defined benefit plans, net $ (1,050)   $ (1,039)   $ (477)   $ (330)   $ (138)   $ (66)
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block]

As of December 29, 2012, the accumulated benefit obligation was $562 million for the U.S. Intel Minimum Pension Plan ($426 million as of December 31, 2011) and $1.1 billion for the non-U.S. defined-benefit pension plans ($836 million as of December 31, 2011). 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 were as follows:

  U.S. Pension   Non-U.S. Pension
  Benefits   Benefits
(In Millions) 2012   2011   2012   2011
Plans with accumulated benefit obligations in excess of plan assets:                      
Accumulated benefit obligations $ —   $ —   $ 813   $ 563
Plan assets $ —   $ —   $ 508   $ 363
Plans with projected benefit obligations in excess of plan assets:                      
Projected benefit obligations $ 1,742   $ 1,480   $ 1,400   $ 1,064
Plan assets $ 684   $ 648   $ 825   $ 658
Schedule of Assumptions Used [Table Text Block]

Weighted average actuarial assumptions used to determine benefit obligations for the plans as of December 29, 2012 and December 31, 2011 were as follows:

  U.S. Pension     Non-U.S. Pension     U.S. Postretirement  
  Benefits     Benefits     Medical Benefits  
  2012     2011     2012     2011     2012     2011  
Discount rate 3.9 %   4.7 %   4.2 %   4.9 %   3.6 %   4.6 %
Rate of compensation increase 4.1 %   4.5 %   4.0 %   4.2 %   n/a     n/a  

Weighted average actuarial assumptions used to determine costs for the plans were as follows:

  U.S. Pension     Non-U.S. Pension     U.S. Postretirement  
  Benefits     Benefits     Medical Benefits  
  2012     2011     2010     2012     2011     2010     2012     2011     2010  
Discount rate 4.7 %   5.8 %   6.1 %   5.0 %   5.3 %   5.6 %   4.6 %   5.6 %   6.3 %
Expected long-term rate of return on plan assets 5.0 %   5.5 %   4.5 %   5.9 %   6.3 %   6.2 %   3.0 %   3.0 %   n/a  
Rate of compensation increase 4.5 %   4.7 %   5.1 %   4.1 %   4.3 %   3.6 %   n/a     n/a     n/a  
Schedule of Net Benefit Costs [Table Text Block]

The net periodic benefit cost for the plans included the following components:

  U.S. Pension   Non-U.S. Pension   U.S. Postretirement
  Benefits   Benefits   Medical Benefits
(In Millions) 2012   2011   2010   2012   2011   2010   2012   2011   2010
Service cost $ 98   $ 51   $ 38   $ 64   $ 63   $ 40   $ 30   $ 18   $ 16
Interest cost   69     42     34     52     52     35     17     16     14
Expected return on plan assets   (31)     (31)     (18)     (42)     (47)     (34)     (4)     (2)     —
Amortization of prior service cost   —     —     —     (2)     (1)     1     7     8     6
Recognized net actuarial loss (gain)   74     26     18     16     11     5     —     (1)     (1)
Recognized curtailment gains   —     —     —     —     (4)     —     —     —     —
Recognized settlement losses   —     —     —     —     6     —     —     —     —
Net periodic benefit cost $ 210   $ 88   $ 72   $ 88   $ 80   $ 47   $ 50   $ 39   $ 35
Schedule of Expected Benefit Payments [Table Text Block]

Estimated benefit payments over the next 10 fiscal years are as follows:

  U.S. Pension   Non-U.S. Pension   U.S. Postretirement
(In Millions) Benefits   Benefits   Medical Benefits
2013 $ 41   $ 24   $ 18
2014 $ 48   $ 26   $ 19
2015 $ 61   $ 27   $ 23
2016 $ 76   $ 29   $ 22
2017 $ 90   $ 31   $ 22
2018–2022 $ 799   $ 201   $ 121
U.S. Pension Benefits [Member]
  
Retirement Benefit Plans (Tables) [Abstract]  
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 as of December 29, 2012 and December 31, 2011:

    December 29, 2012
    Fair Value Measured at      
    Reporting Date Using      
(In Millions) Level 1   Level 2   Level 3   Total
Equity securities:                      
  Hedge fund pool $ —   $ 92   $ —   $ 92
Fixed income:                      
  Global Bond Fund—common collective trusts   —     17     —     17
  Global Bond Fund—government bonds   177     81     —     258
  Global Bond Fund—asset-backed securities   —     —     83     83
  Global Bond Fund—corporate bonds   72     142     —     214
  Global Bond Fund—other   1     9     —     10
Total assets measured at fair value $ 250   $ 341   $ 83   $ 674
Cash                     10
Total U.S. pension plan assets at fair value                   $ 684
                         
    December 31, 2011
    Fair Value Measured at      
    Reporting Date Using      
(In Millions) Level 1   Level 2   Level 3   Total
Equity securities:                      
  Hedge fund pool $ —   $ 97   $ —   $ 97
Fixed income:                      
  Global Bond Fund—common collective trusts   —     51     —     51
  Global Bond Fund—government bonds   94     166     —     260
  Global Bond Fund—asset-backed securities   —     —     78     78
  Global Bond Fund—corporate bonds   —     147     —     147
  Global Bond Fund—other   —     6     —     6
Total assets measured at fair value $ 94   $ 467   $ 78   $ 639
Cash                     9
Total U.S. pension plan assets at fair value                   $ 648
Non-U.S. Pension Benefits [Member]
  
Retirement Benefit Plans (Tables) [Abstract]  
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 as of December 29, 2012 and December 31, 2011:

    December 29, 2012
    Fair Value Measured at      
    Reporting Date Using      
(In Millions) Level 1   Level 2   Level 3   Total
Equity securities:                      
  Global equities $ 183   $ 53   $ —   $ 236
  Real estate   —     —     10     10
  Non-U.S. venture capital   —     —     2     2
Fixed income:                      
  Non-U.S. government bonds   —     177     —     177
  Money market funds   58     —     —     58
  Investments held by insurance companies   —     302     —     302
  Insurance contracts   —     —     31     31
  Other   —     6     —     6
Total assets measured at fair value $ 241   $ 538   $ 43   $ 822
Cash                     16
Total non-U.S. plan assets at fair value                   $ 838
                         
    December 31, 2011
    Fair Value Measured at      
    Reporting Date Using      
(In Millions) Level 1   Level 2   Level 3   Total
Equity securities:                      
  Global equities $ 153   $ 48   $ —   $ 201
  Real estate   —     —     10     10
  Non-U.S. venture capital   —     —     3     3
Fixed income:                      
  Non-U.S. government bonds   —     124     —     124
  Money market funds   57     —     —     57
  Investments held by insurance companies   —     280     —     280
  Insurance contracts   —     —     29     29
  Other   5     —     —     5
Total assets measured at fair value $ 215   $ 452   $ 42   $ 709
Cash                     13
Total non-U.S. plan assets at fair value                   $ 722