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. 31, 2011
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) 2011   2010   2011   2010   2011   2010
Change in projected benefit obligation:                                  
Beginning benefit obligation $ 739   $ 567   $ 902   $ 653   $ 297   $ 200
Service cost   51     38     63     40     18     16
Interest cost   42     34     52     35     16     14
Plan acquisitions   —     —     68     —     —     —
Plan participants’ contributions   —     —     10     8     4     4
Actuarial (gain) loss   688     123     98     187     45     7
Currency exchange rate changes   —     —     (38)     (4)     —     —
Plan amendments   —     —     —     3     —     65
Plan curtailments   —     —     (6)     —     —     —
Plan settlements   —     —     (13)     —     —     —
Benefits paid to plan participants   (40)     (23)     (15)     (20)     (11)     (9)
Ending projected benefit obligation $ 1,480   $ 739   $ 1,121   $ 902   $ 369   $ 297
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) 2011   2010   2011   2010   2011   2010
Change in plan assets:                                  
Beginning fair value of plan assets $ 569   $ 411   $ 642   $ 552   $ 59   $ 2
Actual return on plan assets   26     18     (26)     53     1     (2)
Plan acquisitions   —     —     72     —     —     —
Employer contributions   93     163     76     52     63     64
Plan participants’ contributions   —     —     10     8     4     4
Currency exchange rate changes   —     —     (24)     (3)     —     —
Plan settlements   —     —     (13)     —     —     —
Benefits paid to plan participants   (40)     (23)     (15)     (20)     (11)     (9)
Ending fair value of plan assets $ 648   $ 569   $ 722   $ 642   $ 116   $ 59
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 31, 2011 and December 25, 2010:

  U.S. Pension   Non-U.S. Pension   U.S. Postretirement
  Benefits   Benefits   Medical Benefits
(In Millions) 2011   2010   2011   2010   2011   2010
Other long-term assets $ —   $ —   $ 6   $ 35   $ —   $ —
Accrued compensation and benefits   —     —     (7)     (6)     —     —
Other long-term liabilities   (832)     (170)     (398)     (289)     (253)     (238)
Accumulated other comprehensive loss (income), before tax   1,039     373     330     185     66     27
Net amount recognized $ 207   $ 203   $ (69)   $ (75)   $ (187)   $ (211)
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 31, 2011 and December 25, 2010:

  U.S. Pension   Non-U.S. Pension   U.S. Postretirement
  Benefits   Benefits   Medical Benefits
(In Millions) 2011   2010   2011   2010   2011   2010
Net prior service credit (cost) $ —   $ —   $ 14   $ 15   $ (63)   $ (71)
Net actuarial gain (loss)   (1,039)     (373)     (344)     (200)     (3)     44
Defined benefit plans, net $ (1,039)   $ (373)   $ (330)   $ (185)   $ (66)   $ (27)
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block]

As of December 31, 2011, the accumulated benefit obligation was $426 million for the U.S. Intel Minimum Pension Plan ($284 million as of December 25, 2010) and $836 million for the non-U.S. defined-benefit pension plans ($632 million as of December 25, 2010). 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) 2011   2010   2011   2010
Plans with accumulated benefit obligations in excess of plan assets:                      
Accumulated benefit obligations $ —   $ —   $ 563   $ 241
Plan assets $ —   $ —   $ 363   $ 73
Plans with projected benefit obligations in excess of plan assets:                      
Projected benefit obligations $ 1,480   $ 739   $ 1,064   $ 665
Plan assets $ 648   $ 569   $ 658   $ 369
Schedule of Assumptions Used [Table Text Block]

Weighted average actuarial assumptions used to determine benefit obligations for the plans as of December 31, 2011 and December 25, 2010 were as follows:

  U.S. Pension     Non-U.S. Pension     U.S. Postretirement  
  Benefits     Benefits     Medical Benefits  
  2011     2010     2011     2010     2011     2010  
Discount rate 4.7 %   5.8 %   4.9 %   5.1 %   4.6 %   5.6 %
Rate of compensation increase 4.5 %   4.7 %   4.2 %   4.5 %   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  
  2011     2010     2009     2011     2010     2009     2011     2010     2009  
Discount rate 5.8 %   6.1 %   6.7 %   5.3 %   5.6 %   5.5 %   5.6 %   6.3 %   6.8 %
Expected long-term rate of return on plan assets 5.5 %   4.5 %   4.5 %   6.3 %   6.2 %   6.7 %   3.0 %   n/a     n/a  
Rate of compensation increase 4.7 %   5.1 %   5.0 %   4.3 %   3.6 %   3.4 %   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) 2011   2010   2009   2011   2010   2009   2011   2010   2009
Service cost $ 51   $ 38   $ 12   $ 63   $ 40   $ 47   $ 18   $ 16   $ 12
Interest cost   42     34     35     52     35     37     16     14     11
Expected return on plan assets   (31)     (18)     (13)     (47)     (34)     (31)     (2)     —     —
Amortization of prior service cost   —     —     —     (1)     1     (4)     8     6     4
Recognized net actuarial loss (gain)   26     18     22     11     5     9     (1)     (1)     (4)
Recognized curtailment gains   —     —     —     (4)     —     (6)     —     —     —
Recognized settlement losses   —     —     —     6     —     6     —     —     —
Net periodic benefit cost $ 88   $ 72   $ 56   $ 80   $ 47   $ 58   $ 39   $ 35   $ 23
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   Non-U.S. Pension   U.S. Postretirement
Year Payable Benefits   Benefits   Medical Benefits
2012 $ 32   $ 32   $ 13
2013 $ 45   $ 31   $ 14
2014 $ 54   $ 35   $ 18
2015 $ 69   $ 41   $ 18
2016 $ 86   $ 44   $ 20
2017–2021 $ 761   $ 297   $ 128
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 31, 2011 and December 25, 2010:

    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
                         
    December 25, 2010
    Fair Value Measured at      
    Reporting Date Using      
(In Millions) Level 1   Level 2   Level 3   Total
Equity securities:                      
  U.S. Large Cap Stock Fund $ —   $ 36   $ —   $ 36
  U.S. Small Cap Stock Fund   —     9     —     9
  International Stock Fund   11     30     —     41
Fixed income:                      
  U.S. treasuries   —     261     —     261
  U.S. corporate bonds   —     79     —     79
  Global Bond Fund—common collective trusts   —     62     —     62
  Global Bond Fund—government bonds   18     22     —     40
  Global Bond Fund—asset-backed securities   —     —     17     17
  Global Bond Fund—corporate bonds   —     19     —     19
  Global Bond Fund—other   3     2     —     5
Total U.S. pension plan assets at fair value $ 32   $ 520   $ 17   $ 569
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 31, 2011 and December 25, 2010:

    December 31, 2011
    Fair Value Measured at      
    Reporting Date Using      
(In Millions) Level 1   Level 2   Level 3   Total
Equity securities:                      
  Global equities $ 153   $ 70   $ —   $ 223
  Real estate   —     —     10     10
  Non-U.S. venture capital   —     —     3     3
Fixed income:                      
  Non-U.S. government bonds   —     138     —     138
  Money market funds   57     —     —     57
  Investments held by insurance companies   —     207     —     207
  Insurance contracts   —     —     29     29
  Other   5     37     —     42
Total assets measured at fair value $ 215   $ 452   $ 42   $ 709
Cash                     13
Total non-U.S. plan assets at fair value                   $ 722
                         
    December 25, 2010
    Fair Value Measured at      
    Reporting Date Using      
(In Millions) Level 1   Level 2   Level 3   Total
Equity securities:                      
  Global equities $ 165   $ 75   $ —   $ 240
  Real estate   —     —     10     10
  Non-U.S. venture capital   —     —     2     2
Fixed income:                      
  Non-U.S. government bonds   —     150     —     150
  Investments held by insurance companies   —     202     —     202
  Insurance contracts   —     —     28     28
Total assets measured at fair value $ 165   $ 427   $ 40   $ 632
Cash                     10
Total non-U.S. plan assets at fair value                   $ 642