Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 17, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | TEXAS INSTRUMENTS INC | ||
Entity Central Index Key | 97476 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 1,047,142,301 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $50,978,062,488 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Revenue | $13,045 | $12,205 | $12,825 |
Cost of revenue (COR) | 5,618 | 5,841 | 6,457 |
Gross profit | 7,427 | 6,364 | 6,368 |
Research and development (R&D) | 1,358 | 1,522 | 1,877 |
Selling, general and administrative (SG&A) | 1,843 | 1,858 | 1,804 |
Acquisition charges | 330 | 341 | 450 |
Restructuring charges/other | -51 | -189 | 264 |
Operating profit | 3,947 | 2,832 | 1,973 |
Other income (expense), net (OI&E) | 21 | 17 | 47 |
Interest and debt expense | 94 | 95 | 85 |
Income before income taxes | 3,874 | 2,754 | 1,935 |
Provision for income taxes | 1,053 | 592 | 176 |
Net income | 2,821 | 2,162 | 1,759 |
Earnings per common share (EPS): | |||
Basic (in dollars per share) | $2.61 | $1.94 | $1.53 |
Diluted (in dollars per share) | $2.57 | $1.91 | $1.51 |
Average shares outstanding (millions): | |||
Basic (in shares) | 1,065 | 1,098 | 1,132 |
Diluted (in shares) | 1,080 | 1,113 | 1,146 |
Cash dividends declared per common share | $1.24 | $1.07 | $0.72 |
Income allocated to RSUs | -43 | -36 | -31 |
Income allocated to common stock for diluted EPS | $2,778 | $2,126 | $1,728 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $2,821 | $2,162 | $1,759 |
Net actuarial gains (losses) of defined benefit plans: | |||
Adjustment, net of tax benefit (expense) of $25, ($60) and $29 | -46 | 105 | -81 |
Recognized within Net income, net of tax benefit (expense) of ($21), ($37) and ($104) | 42 | 71 | 160 |
Prior service cost of defined benefit plans: | |||
Adjustment, net of tax benefit (expense) of $0, $1 and $1 | -1 | -3 | -2 |
Recognized within Net income, net of tax benefit (expense) of $0, $2 and $0 | 0 | -3 | 0 |
Derivative instruments: | |||
Change in fair value, net of tax benefit (expense) of $0, $0 and $1 | 0 | 0 | -3 |
Recognized within Net income, net of tax benefit (expense) of ($1), ($1) and $0 | 1 | 1 | 0 |
Available-for-sale investments: | |||
Unrealized gains (losses), net of tax benefit (expense) of $0, $0 and ($1) | 0 | 0 | 3 |
Other comprehensive income (loss), net of taxes | -4 | 171 | 77 |
Total comprehensive income | $2,817 | $2,333 | $1,836 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net actuarial gains (losses) of defined benefit plans: | |||
Adjustment, net of tax benefit (expense) | $25 | ($60) | $29 |
Recognized within Net income, net of tax benefit (expense) | -21 | -37 | -104 |
Prior service cost of defined benefit plans: | |||
Adjustment, net of tax benefit (expense) | 0 | 1 | 1 |
Recognized within Net income, net of tax benefit (expense) | 0 | 2 | 0 |
Derivative instruments: | |||
Change in fair value, net of tax benefit (expense) | 0 | 0 | 1 |
Recognized within Net income, net of tax benefit (expense) | -1 | -1 | 0 |
Available-for-sale investments: | |||
Unrealized gains (losses), net of tax benefit (expense) | $0 | $0 | ($1) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $1,199 | $1,627 |
Short-term investments | 2,342 | 2,202 |
Accounts receivable, net of allowances of ($12) and ($22) | 1,246 | 1,203 |
Raw materials | 101 | 102 |
Work in process | 896 | 919 |
Finished goods | 787 | 710 |
Inventories | 1,784 | 1,731 |
Deferred income taxes | 347 | 393 |
Prepaid expenses and other current assets | 850 | 863 |
Total current assets | 7,768 | 8,019 |
Property, plant and equipment at cost | 6,266 | 6,556 |
Accumulated depreciation | -3,426 | -3,157 |
Property, plant and equipment, net | 2,840 | 3,399 |
Long-term investments | 224 | 216 |
Goodwill, net | 4,362 | 4,362 |
Acquisition-related intangibles, net | 1,902 | 2,223 |
Deferred income taxes | 172 | 207 |
Capitalized software licenses, net | 83 | 118 |
Overfunded retirement plans | 127 | 130 |
Other assets | 244 | 264 |
Total assets | 17,722 | 18,938 |
Current liabilities: | ||
Current portion of long-term debt | 1,001 | 1,000 |
Accounts payable | 437 | 422 |
Accrued compensation | 651 | 554 |
Income taxes payable | 71 | 119 |
Deferred income taxes | 4 | 1 |
Accrued expenses and other liabilities | 498 | 651 |
Total current liabilities | 2,662 | 2,747 |
Long-term debt | 3,641 | 4,158 |
Underfunded retirement plans | 225 | 216 |
Deferred income taxes | 399 | 548 |
Deferred credits and other liabilities | 405 | 462 |
Total liabilities | 7,332 | 8,131 |
Stockholders’ equity: | ||
Preferred stock, $25 par value. Authorized – 10,000,000 shares. Participating cumulative preferred. None issued. | 0 | 0 |
Common stock, $1 par value. Authorized – 2,400,000,000 shares. Shares issued – 1,740,815,939 | 1,741 | 1,741 |
Paid-in capital | 1,368 | 1,211 |
Retained earnings | 29,653 | 28,173 |
Treasury common stock at cost. Shares: 2014 – 694,189,127; 2013 – 658,012,970 | -21,840 | -19,790 |
Accumulated other comprehensive income (loss), net of taxes (AOCI) | -532 | -528 |
Total stockholders’ equity | 10,390 | 10,807 |
Total liabilities and stockholders’ equity | $17,722 | $18,938 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Current assets: | ||
Allowance for doubtful accounts receivable, current | ($12) | ($22) |
Stockholders’ equity: | ||
Preferred stock, par value (in dollars per share) | $25 | $25 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, shares authorized (in shares) | 2,400,000,000 | 2,400,000,000 |
Common stock, shares issued (in shares) | 1,740,815,939 | 1,740,815,939 |
Treasury stock (in shares) | 694,189,127 | 658,012,970 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | |||
Net income | $2,821 | $2,162 | $1,759 |
Adjustments to Net income: | |||
Depreciation | 850 | 879 | 957 |
Amortization of acquisition-related intangibles | 321 | 336 | 342 |
Amortization of capitalized software | 59 | 82 | 102 |
Stock-based compensation | 277 | 287 | 263 |
Gains on sales of assets | -73 | -6 | 0 |
Deferred income taxes | -61 | 50 | 130 |
Gain on transfer of Japan substitutional pension | 0 | 0 | -144 |
Increase (decrease) from changes in: | |||
Accounts receivable | -49 | 16 | 311 |
Inventories | -53 | 26 | 5 |
Prepaid expenses and other current assets | 65 | -136 | 162 |
Accounts payable and accrued expenses | -194 | -284 | 99 |
Accrued compensation | 89 | 18 | -82 |
Income taxes payable | -81 | 78 | -229 |
Changes in funded status of retirement plans | -58 | 28 | -198 |
Other | -21 | -152 | -63 |
Cash flows from operating activities | 3,892 | 3,384 | 3,414 |
Cash flows from investing activities | |||
Capital expenditures | -385 | -412 | -495 |
Proceeds from asset sales | 142 | 21 | 0 |
Purchases of short-term investments | -3,107 | -3,907 | -2,802 |
Proceeds from short-term investments | 2,966 | 4,249 | 2,198 |
Other | 7 | 46 | 60 |
Cash flows from investing activities | -377 | -3 | -1,039 |
Cash flows from financing activities | |||
Proceeds from issuance of long-term debt | 498 | 986 | 1,492 |
Repayment of debt and commercial paper borrowings | -1,000 | -1,500 | -1,375 |
Dividends paid | -1,323 | -1,175 | -819 |
Stock repurchases | -2,831 | -2,868 | -1,800 |
Proceeds from common stock transactions | 616 | 1,314 | 523 |
Excess tax benefit from share-based payments | 100 | 80 | 38 |
Other | -3 | -7 | -10 |
Cash flows from financing activities | -3,943 | -3,170 | -1,951 |
Net change in Cash and cash equivalents | -428 | 211 | 424 |
Cash and cash equivalents at beginning of period | 1,627 | 1,416 | 992 |
Cash and cash equivalents at end of period | $1,199 | $1,627 | $1,416 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Paid-in Capital | Retained Earnings | Treasury Common Stock | AOCI |
In Millions, unless otherwise specified | ||||||
Balance at Dec. 31, 2011 | $1,741 | $1,194 | $26,278 | ($17,485) | ($776) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,759 | 0 | 0 | 1,759 | 0 | 0 |
Dividends declared and paid | 0 | 0 | -819 | 0 | 0 | |
Common stock issued for stock-based awards | 0 | -337 | 0 | 823 | 0 | |
Stock repurchases | 0 | 0 | 0 | -1,800 | 0 | |
Stock-based compensation | 0 | 263 | 0 | 0 | 0 | |
Tax impact from exercise of options | 133 | 0 | 56 | 0 | 0 | 0 |
Other comprehensive income (loss), net of taxes | 77 | 0 | 0 | 0 | 0 | 77 |
Dividend equivalents paid on restricted stock units | 0 | 0 | -13 | 0 | 0 | |
Balance at Dec. 31, 2012 | 1,741 | 1,176 | 27,205 | -18,462 | -699 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 2,162 | 0 | 0 | 2,162 | 0 | 0 |
Dividends declared and paid | 0 | 0 | -1,175 | 0 | 0 | |
Common stock issued for stock-based awards | 0 | -273 | 0 | 1,540 | 0 | |
Stock repurchases | 0 | 0 | 0 | -2,868 | 0 | |
Stock-based compensation | 0 | 287 | 0 | 0 | 0 | |
Tax impact from exercise of options | 227 | 0 | 25 | 0 | 0 | 0 |
Other comprehensive income (loss), net of taxes | 171 | 0 | 0 | 0 | 0 | 171 |
Dividend equivalents paid on restricted stock units | 0 | 0 | -19 | 0 | 0 | |
Other | 0 | -4 | 0 | 0 | 0 | |
Balance at Dec. 31, 2013 | 1,741 | 1,211 | 28,173 | -19,790 | -528 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 2,821 | 0 | 0 | 2,821 | 0 | 0 |
Dividends declared and paid | 0 | 0 | -1,323 | 0 | 0 | |
Common stock issued for stock-based awards | 0 | -226 | 0 | 781 | 0 | |
Stock repurchases | 0 | 0 | 0 | -2,831 | 0 | |
Stock-based compensation | 0 | 277 | 0 | 0 | 0 | |
Tax impact from exercise of options | 218 | 0 | 110 | 0 | 0 | 0 |
Other comprehensive income (loss), net of taxes | -4 | 0 | 0 | 0 | 0 | -4 |
Dividend equivalents paid on restricted stock units | 0 | 0 | -18 | 0 | 0 | |
Other | 0 | -4 | 0 | 0 | 0 | |
Balance at Dec. 31, 2014 | $1,741 | $1,368 | $29,653 | ($21,840) | ($532) |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared and paid (in dollars per share) | $1.24 | $1.07 | $0.72 |
Description_of_business_includ
Description of business, including segment and geographic area information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Description of business, including segment and geographic area information | Description of business, including segment and geographic area information | ||||||||||||
We design, make and sell semiconductors to electronics designers and manufacturers all over the world. We have two reportable segments, which are established along major categories of products as follows: | |||||||||||||
• | Analog – consists of the following product lines: High Volume Analog & Logic; Power Management; High Performance Analog; and Silicon Valley Analog, which consists primarily of products that we acquired through our purchase of National Semiconductor Corporation (National) in 2011. | ||||||||||||
• | Embedded Processing – consists of the following product lines: Processor, Microcontrollers and Connectivity. | ||||||||||||
We report the results of our remaining business activities in Other. Other includes operating segments that do not meet the quantitative thresholds for individually reportable segments and cannot be aggregated with other operating segments. Other includes DLP® products, custom application-specific integrated circuits, calculators, royalties, and products from our former Wireless segment, which was eliminated effective January 1, 2013. | |||||||||||||
We also include in Other items that are not used in evaluating the results of or in allocating resources to our segments. These include acquisition-related charges (see Note 3); restructuring charges (see Note 4); and certain corporate-level items, such as litigation expenses, environmental costs, insurance settlements, and gains and losses from other activities, including asset dispositions. We allocate the remainder of our expenses associated with corporate activities to our operating segments based on specific methodologies, such as percentage of operating expenses or headcount. | |||||||||||||
Our centralized manufacturing and support organizations, such as facilities, procurement and logistics, provide support to our operating segments, including those in Other. Costs incurred by these organizations, including depreciation, are charged to the segments on a per-unit basis. Consequently, depreciation expense is not an independently identifiable component within the segments’ results and, therefore, is not provided. The assets and liabilities associated with these organizations are included in Other. | |||||||||||||
With the exception of goodwill, we do not identify or allocate assets by operating segment, nor does the chief operating decision maker evaluate operating segments using discrete asset information. There was no significant intersegment revenue. The accounting policies of the segments are the same as those described below in the summary of significant accounting policies and practices. | |||||||||||||
Segment information | |||||||||||||
For Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenue: | |||||||||||||
Analog | $ | 8,104 | $ | 7,194 | $ | 6,998 | |||||||
Embedded Processing | 2,740 | 2,450 | 2,257 | ||||||||||
Other | 2,201 | 2,561 | 3,570 | ||||||||||
Total revenue | $ | 13,045 | $ | 12,205 | $ | 12,825 | |||||||
Operating profit: | |||||||||||||
Analog | $ | 2,786 | $ | 1,859 | $ | 1,650 | |||||||
Embedded Processing | 384 | 185 | 158 | ||||||||||
Other | 777 | 788 | 165 | ||||||||||
Total operating profit | $ | 3,947 | $ | 2,832 | $ | 1,973 | |||||||
Geographic area information | |||||||||||||
The following geographic area information includes revenue, based on product shipment destination and royalty payor location, and property, plant and equipment, based on physical location: | |||||||||||||
For Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenue: | |||||||||||||
United States | $ | 1,625 | $ | 1,666 | $ | 1,596 | |||||||
Asia (a) | 7,915 | 7,370 | 7,808 | ||||||||||
Europe | 2,293 | 1,926 | 1,861 | ||||||||||
Japan | 1,032 | 1,072 | 1,357 | ||||||||||
Rest of world | 180 | 171 | 203 | ||||||||||
Total revenue | $ | 13,045 | $ | 12,205 | $ | 12,825 | |||||||
(a) Revenue from products shipped into China, including Hong Kong, was $5.7 billion in 2014, $5.2 billion in 2013 and $5.4 billion in 2012. | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Property, plant and equipment, net: | |||||||||||||
United States | $ | 1,436 | $ | 1,765 | $ | 1,931 | |||||||
Asia | 1,096 | 1,277 | 1,547 | ||||||||||
Europe | 162 | 196 | 241 | ||||||||||
Japan | 124 | 144 | 174 | ||||||||||
Rest of world | 22 | 17 | 19 | ||||||||||
Total property, plant and equipment, net | $ | 2,840 | $ | 3,399 | $ | 3,912 | |||||||
Basis_of_presentation_and_sign
Basis of presentation and significant accounting policies and practices | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||
Basis of presentation and significant accounting policies and practices | Basis of presentation and significant accounting policies and practices | |||||||||||||||||||||||||||||||||
Basis of presentation | ||||||||||||||||||||||||||||||||||
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP). The basis of these financial statements is comparable for all periods presented herein. | ||||||||||||||||||||||||||||||||||
The consolidated financial statements include the accounts of all subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. All dollar amounts in the financial statements and tables in these notes, except per-share amounts, are stated in millions of U.S. dollars unless otherwise indicated. We have reclassified certain amounts in the prior periods’ financial statements to conform to the 2014 presentation. The preparation of financial statements requires the use of estimates from which final results may vary. | ||||||||||||||||||||||||||||||||||
Significant accounting policies and practices | ||||||||||||||||||||||||||||||||||
Revenue recognition | ||||||||||||||||||||||||||||||||||
We recognize revenue from sales of our products, including direct sales to our distributors, when title and risk of loss pass, which usually occurs upon shipment or delivery to the customer or distributor, depending upon the terms of the sales order; when persuasive evidence of an arrangement exists; when sales amounts are fixed or determinable; and when collectability is reasonably assured. For sales to distributors, payment is due on our standard commercial terms and is not contingent upon resale of the products. In 2014, about 60 percent of our revenue was generated from sales of our products to distributors. | ||||||||||||||||||||||||||||||||||
We recognize revenue net of allowances, which are management’s estimates of future credits to be granted to customers or distributors under programs common in the semiconductor industry. These allowances are based on analysis of historical data, current economic conditions, and contractual terms and are recorded when revenue is recognized. Allowances may include volume-based incentives, product returns due to quality issues, incentives designed to maximize growth opportunities and special pricing arrangements. For instance, we sell to distributors at standard published prices, but we may grant them price adjustment credits in response to individual competitive opportunities. To estimate allowances, we use statistical percentages of revenue, which are determined quarterly based upon recent historical adjustment trends. Historical claims data are maintained for each of the programs, with differences among geographic regions taken into consideration. We continually monitor the actual claimed allowances against our estimates, and we adjust our estimates as appropriate to reflect trends in distributor revenue and inventory levels. Allowances are also adjusted when recent historical data do not represent anticipated future activity. | ||||||||||||||||||||||||||||||||||
We may also provide distributors an allowance to scrap certain slow-selling or obsolete products in their inventory, estimated as a negotiated fixed percentage of each distributor’s purchases from us. In addition, if we publish a new price for a product that is lower than that paid by distributors for the same product still remaining in each distributor’s on-hand inventory, we may credit them for the difference between those prices. The allowance for this type of credit is based on the identified product price difference applied to our estimate of each distributor’s on-hand inventory of that product. | ||||||||||||||||||||||||||||||||||
We believe we can reasonably and reliably estimate allowances for credits to distributors in a timely manner. | ||||||||||||||||||||||||||||||||||
Revenue from sales of our products that are subject to inventory consignment agreements, including consignment arrangements with distributors, is recognized in accordance with the principles discussed above, but delivery occurs when the customer or distributor pulls product from consignment inventory that we store at designated locations. About 60 percent of our distributor revenue is generated from sales of consigned inventory. The allowances we record against this revenue are not material. | ||||||||||||||||||||||||||||||||||
We determine the amount and timing of royalty revenue based on our contractual agreements with intellectual property licensees. We recognize royalty revenue when earned under the terms of the agreements and when we consider realization of payment to be probable. | ||||||||||||||||||||||||||||||||||
In addition, we record allowances for accounts receivable that we estimate may not be collected. We monitor collectability of accounts receivable primarily through review of the accounts receivable aging. When collection is at risk, we assess the impact on amounts recorded for bad debts and, if necessary, will record a charge in the period such determination is made. | ||||||||||||||||||||||||||||||||||
We recognize shipping fees received from customers in revenue, and we include the shipping and handling costs in COR. | ||||||||||||||||||||||||||||||||||
Advertising costs | ||||||||||||||||||||||||||||||||||
We expense advertising and other promotional costs as incurred. This expense was $45 million in 2014, $46 million in 2013 and $46 million in 2012. | ||||||||||||||||||||||||||||||||||
Restructuring charges | ||||||||||||||||||||||||||||||||||
Restructuring charges may consist of voluntary or involuntary severance-related charges, asset-related charges and other costs due to exit activities. We recognize voluntary termination benefits when the employee accepts the offered benefit arrangement. We recognize involuntary severance-related charges depending on whether the termination benefits are provided under an ongoing benefit arrangement or under a one-time benefit arrangement. If the former, we recognize the charges once they are probable and the amounts are estimable. If the latter, we recognize the charges once the benefits have been communicated to employees. | ||||||||||||||||||||||||||||||||||
Restructuring activities associated with assets are recorded as an adjustment to the basis of the asset, not as a liability. When we commit to a plan to abandon a long-lived asset before the end of its previously estimated useful life, we accelerate the recognition of depreciation to reflect the use of the asset over its shortened useful life. When an asset is held to be sold, we write down the carrying value to its net realizable value and cease depreciation. Restructuring actions may be viewed as an impairment indicator requiring testing of the recoverability of intangible assets, including goodwill. | ||||||||||||||||||||||||||||||||||
Income taxes | ||||||||||||||||||||||||||||||||||
We account for income taxes using an asset and liability approach. We record the amount of taxes payable or refundable for the current year and the deferred tax assets and liabilities for future tax consequences of events that have been recognized in the financial statements or tax returns. We record a valuation allowance when it is more likely than not that some or all of the deferred tax assets will not be realized. | ||||||||||||||||||||||||||||||||||
Other assessed taxes | ||||||||||||||||||||||||||||||||||
Some transactions require us to collect taxes such as sales, value-added and excise taxes from our customers. These transactions are presented in our Consolidated Statements of Income on a net (excluded from revenue) basis. | ||||||||||||||||||||||||||||||||||
Earnings per share (EPS) | ||||||||||||||||||||||||||||||||||
Unvested share-based payment awards that contain non-forfeitable rights to receive dividends or dividend equivalents, such as our restricted stock units (RSUs), are considered to be participating securities and the two-class method is used for purposes of calculating EPS. Under the two-class method, a portion of Net income is allocated to these participating securities and, therefore, is excluded from the calculation of EPS allocated to common stock, as shown in the table below. | ||||||||||||||||||||||||||||||||||
Computation and reconciliation of earnings per common share are as follows (shares in millions): | ||||||||||||||||||||||||||||||||||
For Years Ended December 31, | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Net Income | Shares | EPS | Net Income | Shares | EPS | Net Income | Shares | EPS | ||||||||||||||||||||||||||
Basic EPS: | ||||||||||||||||||||||||||||||||||
Net income | $ | 2,821 | $ | 2,162 | $ | 1,759 | ||||||||||||||||||||||||||||
Income allocated to RSUs | (44 | ) | (37 | ) | (31 | ) | ||||||||||||||||||||||||||||
Income allocated to common stock for basic EPS calculation | $ | 2,777 | 1,065 | $ | 2.61 | $ | 2,125 | 1,098 | $ | 1.94 | $ | 1,728 | 1,132 | $ | 1.53 | |||||||||||||||||||
Adjustment for dilutive shares: | ||||||||||||||||||||||||||||||||||
Stock-based compensation plans | 15 | 15 | 14 | |||||||||||||||||||||||||||||||
Diluted EPS: | ||||||||||||||||||||||||||||||||||
Net income | $ | 2,821 | $ | 2,162 | $ | 1,759 | ||||||||||||||||||||||||||||
Income allocated to RSUs | (43 | ) | (36 | ) | (31 | ) | ||||||||||||||||||||||||||||
Income allocated to common stock for diluted EPS calculation | $ | 2,778 | 1,080 | $ | 2.57 | $ | 2,126 | 1,113 | $ | 1.91 | $ | 1,728 | 1,146 | $ | 1.51 | |||||||||||||||||||
Potentially dilutive securities representing 11 million and 52 million shares of common stock that were outstanding during 2014 and 2012, respectively, were excluded from the computation of diluted earnings per common share for these periods because their effect would have been anti-dilutive. There were no potentially dilutive securities to exclude from the computation of diluted earnings per common share during 2013. | ||||||||||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||||
We present investments on our Consolidated Balance Sheets as cash equivalents, short-term investments or long-term investments. Specific details are as follows: | ||||||||||||||||||||||||||||||||||
• | Cash equivalents and short-term investments: We consider investments in debt securities with maturities of 90 days or less from the date of our investment to be cash equivalents. We consider investments in debt securities with maturities beyond 90 days from the date of our investment as being available for use in current operations and include them in short-term investments. The primary objectives of our cash equivalent and short-term investment activities are to preserve capital and maintain liquidity while generating appropriate returns. | |||||||||||||||||||||||||||||||||
• | Long-term investments: Long-term investments consist of mutual funds, venture capital funds and non-marketable equity securities. | |||||||||||||||||||||||||||||||||
• | Classification of investments: Depending on our reasons for holding the investment and our ownership percentage, we classify our investments as either available for sale, trading, equity method or cost method, which are more fully described in Note 9. We determine cost or amortized cost, as appropriate, on a specific identification basis. | |||||||||||||||||||||||||||||||||
Inventories | ||||||||||||||||||||||||||||||||||
Inventories are stated at the lower of cost or estimated net realizable value. Cost is generally computed on a currently adjusted standard cost basis, which approximates cost on a first-in first-out basis. Standard cost is based on the normal utilization of installed factory capacity. Cost associated with underutilization of capacity is expensed as incurred. Inventory held at consignment locations is included in our finished goods inventory. Consigned inventory was $258 million and $202 million as of December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||||
We review inventory quarterly for salability and obsolescence. A statistical allowance is provided for inventory considered unlikely to be sold. The statistical allowance is based on an analysis of historical disposal activity, historical customer shipments, as well as estimated future sales. A specific allowance for each material type will be carried if there is a significant event not captured by the statistical allowance. We write off inventory in the period in which disposal occurs. | ||||||||||||||||||||||||||||||||||
Property, plant and equipment; acquisition-related intangibles and other capitalized costs | ||||||||||||||||||||||||||||||||||
Property, plant and equipment are stated at cost and depreciated over their estimated useful lives using the straight-line method. Our cost basis includes certain assets acquired in business combinations that were initially recorded at fair value as of the date of acquisition. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the improvements. We amortize acquisition-related intangibles on a straight-line basis over the estimated economic life of the assets. Capitalized software licenses generally are amortized on a straight-line basis over the term of the license. Fully depreciated or amortized assets are written off against accumulated depreciation or amortization. | ||||||||||||||||||||||||||||||||||
Impairments of long-lived assets | ||||||||||||||||||||||||||||||||||
We regularly review whether facts or circumstances exist that indicate the carrying values of property, plant and equipment or other long-lived assets, including intangible assets, are impaired. We assess the recoverability of assets by comparing the projected undiscounted net cash flows associated with those assets to their respective carrying amounts. Any impairment charge is based on the excess of the carrying amount over the fair value of those assets. Fair value is determined by available market valuations, if applicable, or by discounted cash flows. | ||||||||||||||||||||||||||||||||||
Goodwill and indefinite-lived intangibles | ||||||||||||||||||||||||||||||||||
Goodwill is not amortized but is reviewed for impairment annually or more frequently if certain impairment indicators arise. We perform our annual goodwill impairment test as of October 1 for our reporting units, which compares the fair value for each reporting unit to its associated carrying value, including goodwill. See Note 10 for additional information. | ||||||||||||||||||||||||||||||||||
Foreign currency | ||||||||||||||||||||||||||||||||||
The functional currency for our non-U.S. subsidiaries is the U.S. dollar. Accounts recorded in currencies other than the U.S. dollar are remeasured into the functional currency. Current assets (except inventories), deferred income taxes, other assets, current liabilities and long-term liabilities are remeasured at exchange rates in effect at the end of each reporting period. Property, plant and equipment with associated depreciation and inventories are valued at historic exchange rates. Revenue and expense accounts other than depreciation for each month are remeasured at the appropriate daily rate of exchange. Currency exchange gains and losses from remeasurement are credited or charged to OI&E. | ||||||||||||||||||||||||||||||||||
Derivatives and hedging | ||||||||||||||||||||||||||||||||||
We use derivative financial instruments to manage exposure to foreign exchange risk. These instruments are primarily forward foreign currency exchange contracts, which are used as economic hedges to reduce the earnings impact that exchange rate fluctuations may have on our non-U.S. dollar net balance sheet exposures. Gains and losses from changes in the fair value of these forward foreign currency exchange contracts are credited or charged to OI&E. We do not apply hedge accounting to our foreign currency derivative instruments. | ||||||||||||||||||||||||||||||||||
In connection with the issuance of long-term debt, we use financial derivatives such as treasury rate lock agreements that are recognized in AOCI and amortized over the life of the related debt. The results of these derivative transactions have not been material. | ||||||||||||||||||||||||||||||||||
We do not use derivatives for speculative or trading purposes. | ||||||||||||||||||||||||||||||||||
Changes in accounting standards | ||||||||||||||||||||||||||||||||||
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This standard raises the threshold at which a disposal qualifies as a discontinued operation. Under the new guidance, only a disposal representing a strategic shift in operations that has or will have a major effect on an entity’s operations and financial results, such as a disposal of a major geographic area or a major line of business, should be presented as discontinued operations. In addition, the new standard requires additional disclosures of both discontinued operations and certain other disposals that do not meet the revised definition of a discontinued operation. This standard is effective for annual and interim reporting periods beginning as of January 1, 2015. In the event that a future disposition meets the revised criteria, we expect that this standard will have an impact on the presentation of our financial statements, and we will provide the appropriate disclosures at that time. | ||||||||||||||||||||||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). This standard provides a single set of guidelines for revenue recognition to be used across all industries and requires additional disclosures. This standard is effective for annual and interim reporting periods beginning as of January 1, 2017. We are currently evaluating the potential impact of this standard on our financial position and results of operations. | ||||||||||||||||||||||||||||||||||
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This standard sets forth management’s responsibility to evaluate, each reporting period, whether there is substantial doubt about an entity’s ability to continue as a going concern, and if so, to provide related footnote disclosures. The standard is effective for annual and interim reporting periods ending after December 15, 2016. We expect it will have no impact on our financial position and results of operations. |
Acquisition_charges
Acquisition charges | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Business Combinations [Abstract] | |||||||||||||
Acquisition charges | Acquisition charges | ||||||||||||
We incurred various costs as a result of the 2011 acquisition of National that are included in Other for segment reporting purposes, consistent with how management measures the performance of its segments. Total acquisition-related charges are detailed below: | |||||||||||||
For Years Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Amortization of intangible assets | $ | 319 | $ | 323 | $ | 325 | |||||||
Stock-based compensation | 11 | 11 | 17 | ||||||||||
Retention bonuses | — | 7 | 57 | ||||||||||
Severance and other benefits | — | — | 16 | ||||||||||
Transaction and other costs | — | — | 35 | ||||||||||
As recorded in Acquisition charges | 330 | 341 | 450 | ||||||||||
As recorded in COR | — | — | 21 | ||||||||||
Total acquisition-related charges | $ | 330 | $ | 341 | $ | 471 | |||||||
Acquisition charges | |||||||||||||
The amount of recognized amortization of intangible assets resulting from the National acquisition is based on estimated useful lives. See Note 10 for additional information. | |||||||||||||
Stock-based compensation was recognized for the accelerated vesting of equity awards upon the termination of employees, with additional compensation being recognized over the applicable vesting period for the remaining grantees. | |||||||||||||
Retention bonuses reflect amounts paid to former National employees who fulfilled agreed-upon service period obligations and that were recognized ratably over the required service period. | |||||||||||||
Severance and other benefits costs were for former National employees who were terminated after the closing date. About 350 jobs were eliminated by the end of 2012 as a result of redundancies and cost efficiency measures. As of December 31, 2014, a total of $86 million in cumulative charges have been recognized, of which $84 million has been paid, including $41 million related to change of control provisions under existing employment agreements. | |||||||||||||
Transaction and other costs included various expenses incurred in connection with the National acquisition. | |||||||||||||
COR | |||||||||||||
In 2011, we discontinued using one of National’s distributors. We acquired the distributor’s inventory at fair value, resulting in an incremental charge of $21 million to COR upon sale of the inventory in 2012. |
Restructuring_chargesother
Restructuring charges/other | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||
Restructuring charges/other | Restructuring charges/other | ||||||||||||||||||||
Restructuring charges/other is comprised of the following components: | |||||||||||||||||||||
For Years Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Restructuring charges by action: | |||||||||||||||||||||
2013 actions | |||||||||||||||||||||
Severance and benefits cost (a) | $ | 16 | $ | 49 | $ | — | |||||||||||||||
Other exit costs | 10 | — | — | ||||||||||||||||||
26 | 49 | — | |||||||||||||||||||
Prior actions | |||||||||||||||||||||
Severance and benefits cost (a) | (6 | ) | 36 | 251 | |||||||||||||||||
Accelerated depreciation | 1 | 11 | 21 | ||||||||||||||||||
Other exit costs (a) | (1 | ) | 30 | 128 | |||||||||||||||||
(6 | ) | 77 | 400 | ||||||||||||||||||
Total restructuring charges | 20 | 126 | 400 | ||||||||||||||||||
Other: | |||||||||||||||||||||
Gains on sales of assets | (75 | ) | — | — | |||||||||||||||||
Gain on technology transfer | — | (315 | ) | — | |||||||||||||||||
Gain on transfer of Japan substitutional pension | — | — | (144 | ) | |||||||||||||||||
Other | 4 | — | 8 | ||||||||||||||||||
Restructuring charges/other | $ | (51 | ) | $ | (189 | ) | $ | 264 | |||||||||||||
(a) Includes changes in estimates. | |||||||||||||||||||||
Restructuring charges/other are recognized in Other for segment reporting purposes. Restructuring actions related to the acquisition of National are discussed in Note 3 and the associated costs are reflected in the Acquisition charges line of our Consolidated Statements of Income. | |||||||||||||||||||||
2013 actions | |||||||||||||||||||||
We announced in January 2014 cost-saving actions in Embedded Processing and in Japan to reduce expenses and focus our investments on markets with greater potential for sustainable growth and strong long-term returns. We expect the actions to be completed by mid-2015. Cost reductions include the elimination of about 1,100 jobs worldwide. Through December 31, 2014, we have recognized $75 million in cumulative restructuring charges, with no further material charges expected. As of December 31, 2014, $43 million has been paid to terminated employees for severance and benefits. | |||||||||||||||||||||
Prior actions | |||||||||||||||||||||
In 2012, we announced a restructuring of our Wireless business to reduce expenses and focus our investments on markets with greater potential for sustainable growth and strong long-term returns. This action was completed in 2013. We recognized $383 million in cumulative restructuring charges, including a $90 million impairment of goodwill. As of December 31, 2014, $247 million has been paid to terminated employees for severance and benefits. | |||||||||||||||||||||
Also in 2012, we announced closure of two older semiconductor manufacturing facilities in Houston, Texas, and Hiji, Japan. We recognized $200 million in cumulative restructuring charges related to these closures, completing both by the end of 2013. As of December 31, 2014, $103 million has been paid to terminated employees for severance and benefits. | |||||||||||||||||||||
As of December 31, 2014 and 2013, we carried immaterial liabilities related to actions commenced in 2008 and 2009. The related expense was recognized in periods prior to 2011. | |||||||||||||||||||||
The table below reflects the changes in accrued restructuring balances associated with these actions: | |||||||||||||||||||||
2013 Actions | Prior Actions | ||||||||||||||||||||
Severance | Other | Severance | Other | Total | |||||||||||||||||
and Benefits | Charges | and Benefits | Charges | ||||||||||||||||||
Accrual at December 31, 2011 | $ | — | $ | — | $ | 109 | $ | 7 | $ | 116 | |||||||||||
Restructuring charges (a) | — | — | 251 | 149 | 400 | ||||||||||||||||
Non-cash items (b) | — | — | 3 | (124 | ) | (121 | ) | ||||||||||||||
Payments | — | — | (23 | ) | (23 | ) | (46 | ) | |||||||||||||
Remaining accrual at December 31, 2012 | — | — | 340 | 9 | 349 | ||||||||||||||||
Restructuring charges (a) | 49 | — | 36 | 41 | 126 | ||||||||||||||||
Non-cash items (b) | — | — | (5 | ) | (17 | ) | (22 | ) | |||||||||||||
Payments | — | — | (266 | ) | (26 | ) | (292 | ) | |||||||||||||
Remaining accrual at December 31, 2013 | 49 | — | 105 | 7 | 161 | ||||||||||||||||
Restructuring charges (a) | 16 | 10 | (6 | ) | — | 20 | |||||||||||||||
Payments | (43 | ) | (1 | ) | (73 | ) | (7 | ) | (124 | ) | |||||||||||
Remaining accrual at December 31, 2014 | $ | 22 | $ | 9 | $ | 26 | $ | — | $ | 57 | |||||||||||
(a) Includes changes in estimates. | |||||||||||||||||||||
(b) Reflects charges for goodwill impairment, stock-based compensation, impacts of postretirement benefit plans and accelerated depreciation. | |||||||||||||||||||||
The accrual balances above are primarily reported as a component of either Accrued expenses and other liabilities or Deferred credits and other liabilities on our Consolidated Balance Sheets, depending on the expected timing of payment. | |||||||||||||||||||||
Other | |||||||||||||||||||||
Gains on sales of assets | |||||||||||||||||||||
We recognized $75 million of gains on sales of assets in 2014. This consisted of $30 million associated with the sale of our 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 the closure of our Houston, Texas, and Hiji, Japan, manufacturing facilities. | |||||||||||||||||||||
Gain on technology transfer | |||||||||||||||||||||
During 2013, we recognized a gain of $315 million on the transfer of wireless connectivity technology to a customer. This technology was associated with the former Wireless business. | |||||||||||||||||||||
Gain on transfer of Japan substitutional pension | |||||||||||||||||||||
During 2012, we transferred the obligations and assets of the substitutional portion of our Japan pension plan to the government of Japan, resulting in a net gain of $144 million. See Note 11 for additional details. |
Stockbased_compensation
Stock-based compensation | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||
Stock-based compensation | Stock-based 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 100 percent of the fair market value of our common stock on the date of the grant. Substantially all the options have a 10-year term and vest ratably over four years. Our options generally 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. Beginning with 2013 grants, RSUs generally continue to vest after the recipient retires. Holders of most 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. | ||||||||||||||||||
Total stock-based compensation expense recognized was as follows: | ||||||||||||||||||
For Years Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Stock-based compensation expense recognized in: | ||||||||||||||||||
COR | $ | 48 | $ | 49 | $ | 48 | ||||||||||||
R&D | 62 | 67 | 71 | |||||||||||||||
SG&A | 156 | 160 | 127 | |||||||||||||||
Acquisition charges | 11 | 11 | 17 | |||||||||||||||
Total | $ | 277 | $ | 287 | $ | 263 | ||||||||||||
These amounts include expenses related to non-qualified stock options, RSUs and stock options offered under our employee stock purchase plan and are net of expected forfeitures. | ||||||||||||||||||
We issue awards of non-qualified stock options with graded vesting provisions (e.g., 25 percent per year for four years). Generally, we recognize the related compensation expense on a straight-line basis over the minimum service period required for vesting of the award, adjusting for expected forfeiture activity. Awards issued to employees who are retirement eligible or nearing retirement eligibility are expensed on an accelerated basis. | ||||||||||||||||||
Our RSUs generally vest four years after the date of grant. We recognize the related compensation expense on a straight-line basis over the vesting period, adjusting for expected forfeiture activity. Beginning with 2013 grants, RSUs issued to employees who are retirement eligible or nearing retirement eligibility are expensed on an accelerated basis. | ||||||||||||||||||
Fair-value methods and assumptions | ||||||||||||||||||
We account for all awards granted under our various stock-based compensation plans at fair value. We estimate the fair values for non-qualified stock options using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions. | ||||||||||||||||||
For Years Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Weighted average grant date fair value, per share | $ | 8.13 | $ | 6.78 | $ | 8.31 | ||||||||||||
Weighted average assumptions used: | ||||||||||||||||||
Expected volatility | 22 | % | 26 | % | 30 | % | ||||||||||||
Expected lives (in years) | 7.3 | 7.4 | 7.1 | |||||||||||||||
Risk-free interest rates | 2.45 | % | 1.43 | % | 1.4 | % | ||||||||||||
Expected dividend yields | 2.72 | % | 2.56 | % | 2.1 | % | ||||||||||||
We determine expected volatility on all options granted using available implied volatility rates. We believe that market-based measures of implied volatility are currently the best available indicators of the expected volatility used in these estimates. | ||||||||||||||||||
We determine expected lives of options based on the historical option exercise experience of our optionees using a rolling 10-year average. We believe the historical experience method is the best estimate of future exercise patterns currently available. | ||||||||||||||||||
Risk-free interest rates are determined using the implied yield currently available for zero-coupon U.S. government issues with a remaining term equal to the expected life of the options. | ||||||||||||||||||
Expected dividend yields are based on the annualized approved quarterly dividend rate and the current market price of our common stock at the time of grant. No assumption for a future dividend rate change is included unless there is an approved plan to change the dividend in the near term. | ||||||||||||||||||
The fair value per share of RSUs is determined based on the closing price of our common stock on the date of grant. | ||||||||||||||||||
Our employee stock purchase plan is a discount-purchase plan and consequently the Black-Scholes-Merton option-pricing model is not used to determine the fair value per share of these awards. The fair value per share under this plan equals the amount of the discount. | ||||||||||||||||||
Long-term incentive and director compensation plans | ||||||||||||||||||
Stock option and RSU transactions under our long-term incentive and director compensation plans during 2014 were as follows: | ||||||||||||||||||
Stock Options | RSUs | |||||||||||||||||
Shares | Weighted Average | Shares | Weighted Average | |||||||||||||||
Exercise Price | Grant Date Fair | |||||||||||||||||
per Share | Value per Share | |||||||||||||||||
Outstanding grants, December 31, 2013 | 64,930,540 | $ | 28.98 | 20,892,022 | $ | 29.94 | ||||||||||||
Granted | 14,053,185 | 44.11 | 3,184,237 | 44.71 | ||||||||||||||
Vested RSUs | — | — | (5,609,627 | ) | 23.68 | |||||||||||||
Forfeited and expired | (1,832,897 | ) | 36.54 | (1,162,817 | ) | 33.22 | ||||||||||||
Exercised | (19,503,382 | ) | 27.75 | — | — | |||||||||||||
Outstanding grants, December 31, 2014 | 57,647,446 | 32.84 | 17,303,815 | 34.47 | ||||||||||||||
The weighted average grant date fair value of RSUs granted during the years 2014, 2013 and 2012 was $44.71, $33.70 and $31.60 per share, respectively. For the years ended December 31, 2014, 2013 and 2012, the total grant date fair value of shares vested from RSU grants was $133 million, $98 million and $120 million, respectively. | ||||||||||||||||||
Summarized information about stock options outstanding at December 31, 2014, is as follows: | ||||||||||||||||||
Stock Options Outstanding | Options Exercisable | |||||||||||||||||
Range of | Number | Weighted Average | Weighted Average | Number | Weighted Average | |||||||||||||
Exercise Price | Outstanding | Remaining Contractual | Exercise Price | Exercisable | Exercise Price | |||||||||||||
(Shares) | Life (Years) | per Share | (Shares) | per Share | ||||||||||||||
$ | 14.47 to 20.00 | 4,061,577 | 4 | $ | 14.98 | 4,061,577 | $ | 14.98 | ||||||||||
20.01 to 30.00 | 11,270,125 | 3.7 | 25.47 | 11,250,200 | 25.46 | |||||||||||||
30.01 to 40.00 | 28,910,636 | 6.5 | 33 | 12,288,339 | 33.14 | |||||||||||||
40.01 to 50.00 | 13,399,020 | 9.1 | 44.1 | 1,750 | 42.66 | |||||||||||||
50.01 to 55.41 | 6,088 | 9.9 | 55.41 | — | — | |||||||||||||
14.47 to 55.41 | 57,647,446 | 6.4 | 32.84 | 27,601,866 | 27.34 | |||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the aggregate intrinsic value (i.e., the difference in the closing market price on the date of exercise and the exercise price paid by the optionee) of options exercised was $367 million, $427 million and $244 million, respectively. | ||||||||||||||||||
Summarized information as of December 31, 2014, about outstanding stock options that are vested and expected to vest, as well as stock options that are currently exercisable, is as follows: | ||||||||||||||||||
Outstanding Stock Options | Options | |||||||||||||||||
(Fully Vested and Expected to Vest) (a) | Exercisable | |||||||||||||||||
Number of outstanding (shares) | 56,328,323 | 27,601,866 | ||||||||||||||||
Weighted average remaining contractual life (in years) | 6.3 | 4.4 | ||||||||||||||||
Weighted average exercise price per share | $ | 32.69 | $ | 27.34 | ||||||||||||||
Intrinsic value (millions of dollars) | $ | 1,170 | $ | 721 | ||||||||||||||
(a) Includes effects of expected forfeitures of approximately 1 million shares. Excluding the effects of expected forfeitures, the aggregate intrinsic value of stock options outstanding was $1,189 million. | ||||||||||||||||||
As of December 31, 2014, the total future compensation cost related to equity awards not yet recognized in the Consolidated Statements of Income was $308 million, consisting of $113 million related to unvested stock options and $195 million related to unvested RSUs. The $308 million is expected to be recognized as follows: $168 million in 2015, $91 million in 2016, $44 million in 2017 and $5 million in 2018. | ||||||||||||||||||
Director deferred compensation | ||||||||||||||||||
Directors who retire or resign from the board may receive stock distributions for compensation they elected to defer. For these stock distributions, we issued treasury shares. Director deferred stock activity during 2014 was as follows: | ||||||||||||||||||
Director Deferred Stock (Shares) | ||||||||||||||||||
Outstanding, December 31, 2013 | 129,264 | |||||||||||||||||
New shares deferred | 13,636 | |||||||||||||||||
Issued | (7,178 | ) | ||||||||||||||||
Outstanding, December 31, 2014 | 135,722 | |||||||||||||||||
Employee stock purchase plan | ||||||||||||||||||
Options outstanding under the employee stock purchase plan at December 31, 2014, had an exercise price equal to 85 percent of the fair market value of TI common stock on the date of automatic exercise. The automatic exercise occurred on January 2, 2015, resulting in an exercise price of $45.46 per share. Of the total outstanding options, none were exercisable at year-end 2014. | ||||||||||||||||||
Employee stock purchase plan transactions during 2014 were as follows: | ||||||||||||||||||
Employee Stock | Exercise Price | |||||||||||||||||
Purchase Plan | ||||||||||||||||||
(Shares) | ||||||||||||||||||
Outstanding grants, December 31, 2013 | 485,408 | $ | 36.64 | |||||||||||||||
Granted | 1,673,479 | 41.6 | ||||||||||||||||
Exercised | (1,784,184 | ) | 39.44 | |||||||||||||||
Outstanding grants, December 31, 2014 | 374,703 | 45.46 | ||||||||||||||||
The weighted average grant date fair value of options granted under the employee stock purchase plans during the years 2014, 2013 and 2012 was $7.34, $5.71 and $4.52 per share, respectively. During the years ended December 31, 2014, 2013 and 2012, the total intrinsic value of options exercised under these plans was $12 million, $13 million and $13 million, respectively. | ||||||||||||||||||
Effect on shares outstanding and treasury shares | ||||||||||||||||||
Treasury shares were acquired in connection with the board-authorized stock repurchase program. As of December 31, 2014, $3.17 billion of stock repurchase authorizations remain, and no expiration date has been specified. | ||||||||||||||||||
Our current practice is to issue shares of common stock from treasury shares upon exercise of stock options, distribution of director deferred compensation and vesting of RSUs. The table below reflects the changes in our treasury shares: | ||||||||||||||||||
Stock Options | RSUs | Treasury Shares | ||||||||||||||||
Balance, December 31, 2011 | 601,131,631 | |||||||||||||||||
Repurchases | 59,757,780 | |||||||||||||||||
Shares used for: | ||||||||||||||||||
Stock options/RSUs | (22,409,816 | ) | (4,182,928 | ) | ||||||||||||||
Previously unissued common shares (a) | 180,955 | 4,593 | ||||||||||||||||
Stock applied to taxes | — | 990,845 | ||||||||||||||||
ESPP | (2,829,498 | ) | — | |||||||||||||||
Director deferred stock | — | — | (6,592 | ) | ||||||||||||||
Total issued | (25,058,359 | ) | (3,187,490 | ) | (28,245,849 | ) | ||||||||||||
Balance, December 31, 2012 | 632,636,970 | |||||||||||||||||
Repurchases | 77,564,013 | |||||||||||||||||
Shares used for: | ||||||||||||||||||
Stock options/RSUs | (45,507,711 | ) | (5,741,981 | ) | ||||||||||||||
Stock applied to taxes | — | 1,461,422 | ||||||||||||||||
ESPP | (2,386,834 | ) | — | |||||||||||||||
Director deferred stock | — | — | (12,909 | ) | ||||||||||||||
Total issued | (47,894,545 | ) | (4,280,559 | ) | (52,175,104 | ) | ||||||||||||
Balance, December 31, 2013 | 658,012,970 | |||||||||||||||||
Repurchases | 61,665,209 | |||||||||||||||||
Shares used for: | ||||||||||||||||||
Stock options/RSUs | (19,503,382 | ) | (5,609,627 | ) | ||||||||||||||
Stock applied to exercises or taxes | 6,618 | 1,408,701 | ||||||||||||||||
ESPP | (1,784,184 | ) | — | |||||||||||||||
Director deferred stock | — | — | (7,178 | ) | ||||||||||||||
Total issued | (21,280,948 | ) | (4,200,926 | ) | (25,481,874 | ) | ||||||||||||
Balance, December 31, 2014 | 694,189,127 | |||||||||||||||||
(a) Beginning in 2013, only treasury shares were issued. | ||||||||||||||||||
Shares available for future grants and reserved for issuance are summarized below: | ||||||||||||||||||
31-Dec-14 | ||||||||||||||||||
Shares | Long-Term Incentive | Employee Stock | Total | |||||||||||||||
and Director | Purchase Plan | |||||||||||||||||
Compensation Plans | ||||||||||||||||||
Reserved for issuance (a) | 121,127,656 | 39,565,038 | 160,692,694 | |||||||||||||||
Shares to be issued upon exercise of outstanding options and RSUs (a) | (75,086,983 | ) | (374,703 | ) | (75,461,686 | ) | ||||||||||||
Available for future grants | 46,040,673 | 39,190,335 | 85,231,008 | |||||||||||||||
(a) Includes 135,722 shares credited to directors’ deferred stock accounts that settle in shares of TI common stock. These shares are not included as grants outstanding at December 31, 2014. | ||||||||||||||||||
The effects on cash flows were as follows: | ||||||||||||||||||
For Years Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Proceeds from common stock transactions | $ | 616 | $ | 1,314 | $ | 523 | ||||||||||||
Tax benefit realized from stock options exercised | 218 | 227 | 133 | |||||||||||||||
Profit_sharing_plans
Profit sharing plans | 12 Months Ended |
Dec. 31, 2014 | |
Profit sharing plans [Abstract] | |
Profit sharing plans | Profit sharing plans |
Profit sharing benefits are generally formulaic and determined by one or more subsidiary or company-wide financial metrics. We pay profit sharing benefits primarily under the company-wide TI Employee Profit Sharing Plan. This plan provides for profit sharing to be paid based solely on TI’s operating margin for the full calendar year. Under this plan, TI must achieve a minimum threshold of 10 percent operating margin before any profit sharing is paid. At 10 percent operating margin, profit sharing will be 2 percent of eligible payroll. The maximum amount of profit sharing available under the plan is 20 percent of eligible payroll, which is paid only if TI’s operating margin is at or above 35 percent for a full calendar year. | |
We recognized $269 million, $161 million and $96 million of profit sharing expense under the TI Employee Profit Sharing Plan in 2014, 2013 and 2012, respectively. |
Income_taxes
Income taxes | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Income taxes | Income taxes | ||||||||||||||||
Income before Income Taxes | |||||||||||||||||
U.S. | Non-U.S. | Total | |||||||||||||||
2014 | $ | 2,684 | $ | 1,190 | $ | 3,874 | |||||||||||
2013 | 1,507 | 1,247 | 2,754 | ||||||||||||||
2012 | 319 | 1,616 | 1,935 | ||||||||||||||
Provision (Benefit) for Income Taxes | |||||||||||||||||
U.S. Federal | Non-U.S. | U.S. State | Total | ||||||||||||||
2014 | |||||||||||||||||
Current | $ | 911 | $ | 194 | $ | 9 | $ | 1,114 | |||||||||
Deferred | (73 | ) | 11 | 1 | (61 | ) | |||||||||||
Total | $ | 838 | $ | 205 | $ | 10 | $ | 1,053 | |||||||||
2013 | |||||||||||||||||
Current | $ | 291 | $ | 247 | $ | 4 | $ | 542 | |||||||||
Deferred | 17 | 33 | — | 50 | |||||||||||||
Total | $ | 308 | $ | 280 | $ | 4 | $ | 592 | |||||||||
2012 | |||||||||||||||||
Current | $ | (108 | ) | $ | 156 | $ | (2 | ) | $ | 46 | |||||||
Deferred | 65 | 65 | — | 130 | |||||||||||||
Total | $ | (43 | ) | $ | 221 | $ | (2 | ) | $ | 176 | |||||||
Principal reconciling items from income tax computed at the statutory federal rate follow: | |||||||||||||||||
For Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Computed tax at statutory rate | $ | 1,356 | $ | 964 | $ | 677 | |||||||||||
Non-U.S. effective tax rates | (212 | ) | (156 | ) | (345 | ) | |||||||||||
U.S. R&D tax credit | (59 | ) | (129 | ) | — | ||||||||||||
U.S. tax benefit for manufacturing | (51 | ) | (66 | ) | (158 | ) | |||||||||||
Impact of changes to uncertain tax positions | 3 | (14 | ) | (88 | ) | ||||||||||||
Non-deductible expenses | 6 | 13 | 42 | ||||||||||||||
Other | 10 | (20 | ) | 48 | |||||||||||||
Total provision for income taxes | $ | 1,053 | $ | 592 | $ | 176 | |||||||||||
The total provision for 2013 in the reconciliation above includes $79 million of discrete tax benefits primarily for the reinstatement of the U.S. R&D tax credit retroactive to 2012. | |||||||||||||||||
Included in the non-U.S. effective tax rates reconciling item are benefits from tax holidays of $44 million, $40 million and $51 million in 2014, 2013 and 2012, respectively. The tax benefits relate to our operations in Malaysia and the Philippines, and expire in 2018 and 2017, respectively. The terms of the Malaysia tax holiday are currently under governmental review as required for the end of the first five years of the holiday period. We do not expect any potential change in the holiday to have a material impact on the financial statements. | |||||||||||||||||
The total provision for 2012 includes $252 million of discrete tax benefits primarily for additional U.S. tax benefits for manufacturing related to the years 2000 through 2011 and, to a lesser extent, audit adjustments. | |||||||||||||||||
The primary components of deferred income tax assets and liabilities were as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Deferred income tax assets: | |||||||||||||||||
Deferred loss and tax credit carryforwards | $ | 289 | $ | 345 | |||||||||||||
Accrued expenses | 248 | 265 | |||||||||||||||
Stock-based compensation | 238 | 262 | |||||||||||||||
Inventories and related reserves | 157 | 162 | |||||||||||||||
Retirement costs for defined benefit and retiree health care | 96 | 101 | |||||||||||||||
Other | 122 | 148 | |||||||||||||||
1,150 | 1,283 | ||||||||||||||||
Valuation allowance | (195 | ) | (219 | ) | |||||||||||||
955 | 1,064 | ||||||||||||||||
Deferred income tax liabilities: | |||||||||||||||||
Acquisition-related intangibles and fair-value adjustments | (688 | ) | (804 | ) | |||||||||||||
International earnings | (104 | ) | (121 | ) | |||||||||||||
Property, plant and equipment | (10 | ) | (57 | ) | |||||||||||||
Other | (37 | ) | (31 | ) | |||||||||||||
(839 | ) | (1,013 | ) | ||||||||||||||
Net deferred income tax asset | $ | 116 | $ | 51 | |||||||||||||
The deferred income tax assets and liabilities based on tax jurisdictions are presented on the Consolidated Balance Sheets as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Current deferred income tax assets | $ | 347 | $ | 393 | |||||||||||||
Noncurrent deferred income tax assets | 172 | 207 | |||||||||||||||
Current deferred income tax liabilities | (4 | ) | (1 | ) | |||||||||||||
Noncurrent deferred income tax liabilities | (399 | ) | (548 | ) | |||||||||||||
Net deferred income tax asset | $ | 116 | $ | 51 | |||||||||||||
We make an ongoing assessment regarding the realization of U.S. and non-U.S. deferred tax assets. This assessment is based on our evaluation of relevant criteria, including the existence of deferred tax liabilities that can be used to absorb deferred tax assets, taxable income in prior carryback years and expectations for future taxable income. In 2014, we recognized a net decrease of $24 million in our valuation allowance, due to unutilized tax credits. | |||||||||||||||||
We have U.S. and non-U.S. tax loss carryforwards of approximately $108 million, none of which will expire before the year 2024. | |||||||||||||||||
A provision has been made for deferred taxes on undistributed earnings of non-U.S. subsidiaries to the extent that dividend payments from these subsidiaries are expected to result in additional tax liability. The remaining undistributed earnings of approximately $7.67 billion at December 31, 2014, have been indefinitely reinvested outside of the United States; therefore, no U.S. tax provision has been made for taxes due upon remittance of these earnings. The indefinitely reinvested earnings of our non-U.S. subsidiaries are primarily invested in working capital and property, plant and equipment. Determination of the amount of unrecognized deferred income tax liability is not practical because of the complexities associated with its hypothetical calculation. | |||||||||||||||||
Cash payments made for income taxes, net of refunds, were $1.104 billion, $569 million and $171 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
Uncertain tax positions | |||||||||||||||||
We operate in a number of tax jurisdictions, and our income tax returns are subject to examination by tax authorities in those jurisdictions who may challenge any item on these tax returns. Because the matters challenged by authorities are typically complex, their ultimate outcome is uncertain. Before any benefit can be recorded in the financial statements, we must determine that it is “more likely than not” that a tax position will be sustained by the appropriate tax authorities. We recognize accrued interest related to uncertain tax positions and penalties as components of OI&E. | |||||||||||||||||
The changes in the total amounts of uncertain tax positions are summarized as follows: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Balance, January 1 | $ | 91 | $ | 184 | $ | 210 | |||||||||||
Additions based on tax positions related to the current year | 10 | 7 | 12 | ||||||||||||||
Additions for tax positions of prior years | 52 | 19 | 45 | ||||||||||||||
Reductions for tax positions of prior years | (9 | ) | (10 | ) | (92 | ) | |||||||||||
Settlements with tax authorities | (36 | ) | (96 | ) | 39 | ||||||||||||
Expiration of the statute of limitations for assessing taxes | — | (13 | ) | (30 | ) | ||||||||||||
Balance, December 31 | $ | 108 | $ | 91 | $ | 184 | |||||||||||
Interest income (expense) recognized in the year ended December 31 | $ | 6 | $ | (10 | ) | $ | 32 | ||||||||||
Interest receivable (payable) as of December 31 | $ | — | $ | (5 | ) | $ | 8 | ||||||||||
The liability for uncertain tax positions and interest payable are components of Deferred credits and other liabilities on our Consolidated Balance Sheets. Interest receivable is a component of Other assets on our Consolidated Balance Sheets. | |||||||||||||||||
The $108 million liability for uncertain tax positions as of December 31, 2014, is comprised of positions that, if recognized, would impact the tax rate. If these tax liabilities are ultimately realized, $56 million of existing deferred tax assets would also be realized, related to refunds from counterparty jurisdictions resulting from procedures for relief from double taxation. Regarding the $108 million liability: | |||||||||||||||||
• | About $76 million of the liability represents uncertain tax positions for tax years in jurisdictions in which audit assessments have not been made. Of this liability, $52 million relates to the cumulative effect of a tax depreciation-related method change. The balance of this liability is primarily related to transfer pricing issues for which procedures for relief from double taxation will mitigate the tax rate impact of any difference between the actual tax assessments and our estimates. | ||||||||||||||||
• | About $32 million of the liability represents audit assessments. Of the liability, $29 million is related to transfer pricing issues for which there are ongoing procedures for relief from double taxation. Settlement of the $29 million is subject to timely completion of the tax treaty processes and a significant portion of that liability may be settled within the next 12 months. Settlement will not have a significant tax rate impact, as the tax rates of the counterparty jurisdictions are similar. | ||||||||||||||||
All of the $91 million liability for uncertain tax positions as of December 31, 2013, is made up of positions that, if recognized, would impact the tax rate. If these tax liabilities are ultimately realized, $76 million of deferred tax assets would also be realized, primarily related to refunds from counterparty jurisdictions resulting from procedures for relief from double taxation. | |||||||||||||||||
As of December 31, 2014, the statute of limitations remains open for U.S. federal tax returns for 2010 and following years. Audit activities related to our U.S. federal tax returns through 2009 have been completed except for certain pending tax treaty procedures for relief from double taxation and the review of refunds claimed on amended returns for years prior to 2010. The procedures for relief from double taxation pertain to U.S. federal tax returns for the years 2004 through 2010. | |||||||||||||||||
In non-U.S. jurisdictions, the years open to audit represent the years still open under the statute of limitations. With respect to major jurisdictions outside the United States, our subsidiaries are no longer subject to income tax audits for years before 2007. |
Financial_instruments_and_risk
Financial instruments and risk concentration | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||
Financial instruments and risk concentration | Financial instruments and risk concentration | ||||||||||||
Financial instruments | |||||||||||||
We hold derivative financial instruments such as forward foreign currency exchange contracts, the fair value of which was not material as of December 31, 2014. Our forward foreign currency exchange contracts outstanding as of December 31, 2014, had a notional value of $504 million to hedge our non-U.S. dollar net balance sheet exposures, including $183 million to sell Japanese yen, $163 million to sell euros and $29 million to sell British pound sterling. Prior to the second quarter of 2013, we also held interest rate swaps. See Note 12 for more details. | |||||||||||||
Our investments in cash equivalents, short-term investments and certain long-term investments, as well as our postretirement plan assets and deferred compensation liabilities, are carried at fair value. The carrying values for other current financial assets and liabilities, such as accounts receivable and accounts payable, approximate fair value due to the short maturity of such instruments. The carrying value of our long-term debt approximates the fair value as measured using broker-dealer quotes, which are Level 2 inputs. See Note 9 for a description of fair value and the definition of Level 2 inputs. | |||||||||||||
Risk concentration | |||||||||||||
We are subject to counterparty risk from financial institutions, customers and issuers of debt securities. Financial instruments that could subject us to concentrations of credit risk are primarily cash deposits, cash equivalents, short-term investments and accounts receivable. To manage our credit risk exposure, we place cash investments in investment-grade debt securities and limit the amount of credit exposure to any one issuer. We also limit counterparties on cash deposits and financial derivative contracts to financial institutions with investment-grade ratings. | |||||||||||||
Concentrations of credit risk with respect to accounts receivable are limited due to our large number of customers and their dispersion across different industries and geographic areas. We maintain allowances for expected returns, disputes, adjustments, incentives and collectability. These allowances are deducted from accounts receivable on our Consolidated Balance Sheets. | |||||||||||||
Details of these accounts receivable allowances are as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, January 1 | $ | 22 | $ | 31 | $ | 19 | |||||||
Additions charged (credited) to operating results | (9 | ) | (9 | ) | 12 | ||||||||
Recoveries and write-offs, net | (1 | ) | — | — | |||||||||
Balance, December 31 | $ | 12 | $ | 22 | $ | 31 | |||||||
Valuation_of_debt_and_equity_i
Valuation of debt and equity investments and certain liabilities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||
Valuation of debt and equity investments and certain liabilities | Valuation of debt and equity investments and certain liabilities | ||||||||||||||||||||||||
Debt and equity investments | |||||||||||||||||||||||||
We classify our investments as either available for sale, trading, equity method or cost method. Most of our investments are classified as available for sale. | |||||||||||||||||||||||||
Available-for-sale and trading securities are stated at fair value, which is generally based on market prices or broker quotes. See fair-value discussion below. Unrealized gains and losses on available-for-sale securities are recorded as an increase or decrease, net of taxes, in AOCI on our Consolidated Balance Sheets. We record other-than-temporary impairments on available-for-sale securities in OI&E in our Consolidated Statements of Income. | |||||||||||||||||||||||||
We classify certain mutual funds as trading securities. These mutual funds hold a variety of debt and equity investments intended to generate returns that offset changes in certain deferred compensation liabilities. We record changes in the fair value of these mutual funds and the related deferred compensation liabilities in SG&A. | |||||||||||||||||||||||||
Our other investments are not measured at fair value but are accounted for using either the equity method or cost method. These investments consist of interests in venture capital funds and other non-marketable equity securities. Gains and losses from equity-method investments are reflected in OI&E based on our ownership share of the investee’s financial results. Gains and losses on cost-method investments are recorded in OI&E when realized or when an impairment of the investment’s value is warranted based on our assessment of the recoverability of each investment. | |||||||||||||||||||||||||
Details of our investments are as follows: | |||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Cash and Cash | Short-Term | Long-Term | Cash and Cash | Short-Term | Long-Term | ||||||||||||||||||||
Equivalents | Investments | Investments | Equivalents | Investments | Investments | ||||||||||||||||||||
Measured at fair value: | |||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||
Money market funds | $ | 522 | $ | — | $ | — | $ | 500 | $ | — | $ | — | |||||||||||||
Corporate obligations | 97 | 390 | — | 123 | 217 | — | |||||||||||||||||||
U.S. Government agency and Treasury securities | 365 | 1,952 | — | 787 | 1,985 | — | |||||||||||||||||||
Trading securities | |||||||||||||||||||||||||
Mutual funds | — | — | 185 | — | — | 179 | |||||||||||||||||||
Total | 984 | 2,342 | 185 | 1,410 | 2,202 | 179 | |||||||||||||||||||
Other measurement basis: | |||||||||||||||||||||||||
Equity-method investments | — | — | 27 | — | — | 24 | |||||||||||||||||||
Cost-method investments | — | — | 12 | — | — | 13 | |||||||||||||||||||
Cash on hand | 215 | — | — | 217 | — | — | |||||||||||||||||||
Total | $ | 1,199 | $ | 2,342 | $ | 224 | $ | 1,627 | $ | 2,202 | $ | 216 | |||||||||||||
At December 31, 2014 and 2013, we had no significant unrealized gains or losses associated with our available-for-sale investments. We did not recognize any credit losses related to available-for-sale investments for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, the proceeds from sales, redemptions and maturities of short-term available-for-sale investments were $2.97 billion, $4.25 billion and $2.20 billion, respectively. Gross realized gains and losses from these sales were not significant. | |||||||||||||||||||||||||
The following table presents the aggregate maturities of investments in debt securities classified as available for sale at December 31, 2014: | |||||||||||||||||||||||||
Due | Fair Value | ||||||||||||||||||||||||
One year or less | $ | 3,121 | |||||||||||||||||||||||
One to two years | 205 | ||||||||||||||||||||||||
Gross realized gains and losses from sales of long-term investments were not significant for 2014, 2013 and 2012. Other-than-temporary declines and impairments in the values of these investments recognized in OI&E were not material in 2014, and were $5 million and $7 million in 2013 and 2012, respectively. | |||||||||||||||||||||||||
Fair-value considerations | |||||||||||||||||||||||||
We measure and report certain financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. | |||||||||||||||||||||||||
The three-level hierarchy discussed below indicates the extent and level of judgment used to estimate fair-value measurements. | |||||||||||||||||||||||||
• | Level 1 - Uses unadjusted quoted prices that are available in active markets for identical assets or liabilities as of the reporting date. | ||||||||||||||||||||||||
• | Level 2 - Uses inputs other than Level 1 that are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data. We utilize a third-party data service to provide Level 2 valuations. We verify these valuations for reasonableness relative to unadjusted quotes obtained from brokers or dealers based on observable prices for similar assets in active markets. | ||||||||||||||||||||||||
• | Level 3 - Uses inputs that are unobservable, supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models that utilize management estimates of market participant assumptions. | ||||||||||||||||||||||||
The following are our assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2014 and 2013. We had no Level 3 assets or liabilities as of December 31, 2014 and 2013. These tables do not include cash on hand, assets held by our postretirement plans, or assets and liabilities that are measured at historical cost or any basis other than fair value. | |||||||||||||||||||||||||
Fair Value | Level 1 | Level 2 | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Money market funds | $ | 522 | $ | 522 | $ | — | |||||||||||||||||||
Corporate obligations | 487 | — | 487 | ||||||||||||||||||||||
U.S. Government agency and Treasury securities | 2,317 | 1,762 | 555 | ||||||||||||||||||||||
Mutual funds | 185 | 185 | — | ||||||||||||||||||||||
Total assets | $ | 3,511 | $ | 2,469 | $ | 1,042 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Deferred compensation | $ | 202 | $ | 202 | $ | — | |||||||||||||||||||
Total liabilities | $ | 202 | $ | 202 | $ | — | |||||||||||||||||||
Fair Value | Level 1 | Level 2 | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Money market funds | $ | 500 | $ | 500 | $ | — | |||||||||||||||||||
Corporate obligations | 340 | — | 340 | ||||||||||||||||||||||
U.S. Government agency and Treasury securities | 2,772 | 2,107 | 665 | ||||||||||||||||||||||
Mutual funds | 179 | 179 | — | ||||||||||||||||||||||
Total assets | $ | 3,791 | $ | 2,786 | $ | 1,005 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Deferred compensation | $ | 197 | $ | 197 | $ | — | |||||||||||||||||||
Total liabilities | $ | 197 | $ | 197 | $ | — | |||||||||||||||||||
Goodwill_and_acquisitionrelate
Goodwill and acquisition-related intangibles | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||
Goodwill and acquisition-related intangibles | Goodwill and acquisition-related intangibles | ||||||||||||||||||||||||||
The following table summarizes goodwill, net, by segment for the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||
Analog | $ | 4,158 | |||||||||||||||||||||||||
Embedded Processing | 172 | ||||||||||||||||||||||||||
Other | 32 | ||||||||||||||||||||||||||
Total | $ | 4,362 | |||||||||||||||||||||||||
We perform our annual goodwill impairment test as of October 1 and determine whether the fair value of each of our reporting units is in excess of its carrying value. Determination of fair value is based upon management estimates and judgment, using unobservable inputs in discounted cash flow models to calculate the fair value of each reporting unit. These unobservable inputs are considered Level 3 measurements. For the years ended December 31, 2014 and 2013, we determined no impairment was indicated. See Note 9 for additional information. | |||||||||||||||||||||||||||
In November 2012, as a result of unsuccessful efforts to divest certain Wireless product lines and the subsequent decision to restructure and wind down those product lines, we reassessed the recoverability of the goodwill associated with the former Wireless segment. As a result, we recognized a non-cash, non-tax deductible impairment charge of $90 million for that goodwill. We recognized this impairment in Restructuring charges/other in the Consolidated Statements of Income, as discussed in Note 4. As of December 31, 2014 and 2013, the accumulated impairment of goodwill was $90 million. | |||||||||||||||||||||||||||
The components of acquisition-related intangible assets as of December 31, 2014 and 2013, are as follows: | |||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
Acquisition-Related Intangibles | Amortization | Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Period | Carrying | Amortization | Carrying | Amortization | |||||||||||||||||||||||
(Years) | Amount | Amount | |||||||||||||||||||||||||
Developed technology | 10-May | $ | 2,135 | $ | 714 | $ | 1,421 | $ | 2,157 | $ | 526 | $ | 1,631 | ||||||||||||||
Customer relationships | 8 | 810 | 330 | 480 | 821 | 239 | 582 | ||||||||||||||||||||
Other intangibles | 5 | 3 | 2 | 1 | 5 | 3 | 2 | ||||||||||||||||||||
In-process R&D | n/a | — | n/a | — | 8 | n/a | 8 | ||||||||||||||||||||
Total | $ | 2,948 | $ | 1,046 | $ | 1,902 | $ | 2,991 | $ | 768 | $ | 2,223 | |||||||||||||||
Amortization of acquisition-related intangibles was $321 million, $336 million and $342 million for 2014, 2013 and 2012, respectively, primarily related to developed technology. Fully amortized assets are written off against accumulated amortization. Future estimated amortization of acquisition-related intangibles for the years ended December 31 is as follows: | |||||||||||||||||||||||||||
Amortization of Acquisition-Related Intangibles | |||||||||||||||||||||||||||
2015 | $ | 319 | |||||||||||||||||||||||||
2016 | 319 | ||||||||||||||||||||||||||
2017 | 318 | ||||||||||||||||||||||||||
2018 | 318 | ||||||||||||||||||||||||||
2019 | 288 | ||||||||||||||||||||||||||
Thereafter | 340 | ||||||||||||||||||||||||||
Postretirement_benefit_plans
Postretirement benefit plans | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Postretirement benefit plans | Postretirement benefit plans | ||||||||||||||||||||||||||||||||||||
Plan descriptions | |||||||||||||||||||||||||||||||||||||
We have various employee retirement plans, including defined contribution, defined benefit and retiree health care benefit plans. For qualifying employees, we offer deferred compensation arrangements. | |||||||||||||||||||||||||||||||||||||
U.S. retirement plans | |||||||||||||||||||||||||||||||||||||
Our principal retirement plans in the U.S. are a defined contribution plan; an enhanced defined contribution plan; and qualified and non-qualified defined benefit pension plans. The defined benefit plans were closed to new participants in 1997, and current participants were allowed to make a one-time election to continue accruing a benefit in the plans, or to cease accruing a benefit and instead to participate in the enhanced defined contribution plan described below. | |||||||||||||||||||||||||||||||||||||
Both defined contribution plans offer an employer-matching savings option that allows employees to make pre-tax contributions to various investment choices, including a TI common stock fund. Employees who elected to continue accruing a benefit in the qualified defined benefit pension plans may also participate in the defined contribution plan, where employer-matching contributions are provided for up to 2 percent of the employee’s annual eligible earnings. Employees who elected not to continue accruing a benefit in the defined benefit pension plans, and employees hired after November 1997 and through December 31, 2003, may participate in the enhanced defined contribution plan. This plan provides for a fixed employer contribution of 2 percent of the employee’s annual eligible earnings, plus an employer-matching contribution of up to 4 percent of the employee’s annual eligible earnings. Employees hired after December 31, 2003, do not receive the fixed employer contribution of 2 percent of the employee’s annual eligible earnings. | |||||||||||||||||||||||||||||||||||||
At December 31, 2014 and 2013, as a result of employees’ elections, TI’s U.S. defined contribution plans held shares of TI common stock totaling 14 million shares and 15 million shares valued at $740 million and $678 million, respectively. Dividends paid on these shares for 2014 and 2013 were $19 million and $18 million, respectively. | |||||||||||||||||||||||||||||||||||||
Our aggregate expense for the U.S. defined contribution plans was $60 million in 2014, $62 million in 2013 and $70 million in 2012. | |||||||||||||||||||||||||||||||||||||
The defined benefit pension plans include employees still accruing benefits, as well as employees and participants who no longer accrue service-related benefits, but instead, may participate in the enhanced defined contribution plan. Benefits under the qualified defined benefit pension plan are determined using a formula based upon years of service and the highest five consecutive years of compensation. We intend to contribute amounts to this plan to meet the minimum funding requirements of applicable local laws and regulations, plus such additional amounts as we deem appropriate. The non-qualified defined benefit plans are unfunded and closed to new participants. | |||||||||||||||||||||||||||||||||||||
U.S. retiree health care benefit plan | |||||||||||||||||||||||||||||||||||||
U.S. employees who meet eligibility requirements are offered medical coverage during retirement. We make a contribution toward the cost of those retiree medical benefits for certain retirees and their dependents. The contribution rates are based upon various factors, the most important of which are an employee’s date of hire, date of retirement, years of service and eligibility for Medicare benefits. The balance of the cost is borne by the plan’s participants. Employees hired after January 1, 2001, are responsible for the full cost of their medical benefits during retirement. | |||||||||||||||||||||||||||||||||||||
Non-U.S. retirement plans | |||||||||||||||||||||||||||||||||||||
We provide retirement coverage for non-U.S. employees, as required by local laws or to the extent we deem appropriate, through a number of defined benefit and defined contribution plans. Retirement benefits are generally based on an employee’s years of service and compensation. Funding requirements are determined on an individual country and plan basis and are subject to local country practices and market circumstances. | |||||||||||||||||||||||||||||||||||||
As of December 31, 2014 and 2013, as a result of employees’ elections, TI’s non-U.S. defined contribution plans held TI common stock valued at $17 million and $15 million, respectively. Dividends paid on these shares of TI common stock for 2014 and 2013 were not material. | |||||||||||||||||||||||||||||||||||||
Effects on the Consolidated Statements of Income and Balance Sheets | |||||||||||||||||||||||||||||||||||||
Expense related to defined benefit and retiree health care benefit plans was as follows: | |||||||||||||||||||||||||||||||||||||
U.S. Defined Benefit | U.S. Retiree Health Care | Non-U.S. Defined Benefit | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Service cost | $ | 21 | $ | 26 | $ | 24 | $ | 4 | $ | 5 | $ | 5 | $ | 39 | $ | 41 | $ | 45 | |||||||||||||||||||
Interest cost | 45 | 45 | 44 | 22 | 20 | 25 | 68 | 61 | 75 | ||||||||||||||||||||||||||||
Expected return on plan assets | (42 | ) | (48 | ) | (50 | ) | (20 | ) | (24 | ) | (23 | ) | (80 | ) | (67 | ) | (78 | ) | |||||||||||||||||||
Amortization of prior service cost (credit) | — | 1 | 1 | 4 | 4 | 3 | (2 | ) | (3 | ) | (4 | ) | |||||||||||||||||||||||||
Recognized net actuarial loss | 26 | 21 | 16 | 7 | 11 | 13 | 24 | 31 | 41 | ||||||||||||||||||||||||||||
Net periodic benefit costs | 50 | 45 | 35 | 17 | 16 | 23 | 49 | 63 | 79 | ||||||||||||||||||||||||||||
Settlement losses (a) (b) | 5 | 41 | — | — | — | — | 1 | 4 | 193 | ||||||||||||||||||||||||||||
Curtailment gain | — | — | — | — | — | (1 | ) | (2 | ) | (7 | ) | — | |||||||||||||||||||||||||
Special termination benefit gains (b) | — | — | (1 | ) | — | — | — | — | — | (337 | ) | ||||||||||||||||||||||||||
Total, including other postretirement losses (gains) | $ | 55 | $ | 86 | $ | 34 | $ | 17 | $ | 16 | $ | 22 | $ | 48 | $ | 60 | $ | (65 | ) | ||||||||||||||||||
(a) Includes non-restructuring and restructuring-related settlement losses. | |||||||||||||||||||||||||||||||||||||
(b) Transfer of Japan substitutional pension in 2012: In Japan, we maintain employee pension fund plans (EPFs) pursuant to the Japanese Welfare Pension Insurance Law (JWPIL). An EPF consists of two portions: a substitutional portion based on JWPIL-determined minimum old-age pension benefits similar to Social Security benefits in the United States and a corporate portion established at the discretion of each employer. Employers and employees are exempt from contributing to the Japanese Pension Insurance (JPI) if the substitutional portion is funded by an EPF. | |||||||||||||||||||||||||||||||||||||
The JWPIL was amended to permit each EPF to separate the substitutional portion and transfer those obligations and related assets to the government of Japan. After such a transfer, the employer is required to contribute periodically to JPI, and the government of Japan is responsible for future benefit payments relating to the substitutional portion. | |||||||||||||||||||||||||||||||||||||
During the third quarter of 2012, our EPF received final approval for such a separation and transferred the obligations and assets of its substitutional portion to the government of Japan. On a pre-tax basis, this resulted in a net gain of $144 million recorded in Restructuring charges/other on our Consolidated Statements of Income and included in Other, as shown in Note 4. This net gain of $144 million consisted of two parts - a gain of $337 million, representing the difference between the fair values of the obligations settled of $533 million and the assets transferred from the pension trust to the government of Japan of $196 million, offset by a settlement loss of $193 million related to the recognition of previously unrecognized actuarial losses included in AOCI. | |||||||||||||||||||||||||||||||||||||
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 the defined benefit and retiree health care benefit plans were as follows: | |||||||||||||||||||||||||||||||||||||
U.S. Defined Benefit | U.S. Retiree | Non-U.S. | |||||||||||||||||||||||||||||||||||
Health Care | Defined Benefit | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||
Change in plan benefit obligation: | |||||||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 955 | $ | 1,098 | $ | 472 | $ | 509 | $ | 2,276 | $ | 2,414 | |||||||||||||||||||||||||
Service cost | 21 | 26 | 4 | 5 | 39 | 41 | |||||||||||||||||||||||||||||||
Interest cost | 45 | 45 | 22 | 20 | 68 | 61 | |||||||||||||||||||||||||||||||
Participant contributions | — | — | 19 | 18 | 5 | 1 | |||||||||||||||||||||||||||||||
Benefits paid | (66 | ) | (9 | ) | (45 | ) | (47 | ) | (84 | ) | (81 | ) | |||||||||||||||||||||||||
Medicare subsidy | — | — | 4 | 3 | — | — | |||||||||||||||||||||||||||||||
Actuarial loss (gain) | 133 | (27 | ) | 37 | (36 | ) | 275 | 96 | |||||||||||||||||||||||||||||
Settlements | (12 | ) | (178 | ) | — | — | (7 | ) | (30 | ) | |||||||||||||||||||||||||||
Curtailments | — | — | — | — | (11 | ) | (28 | ) | |||||||||||||||||||||||||||||
Effects of exchange rate changes | — | — | — | — | (245 | ) | (237 | ) | |||||||||||||||||||||||||||||
Other | — | — | — | — | — | 39 | |||||||||||||||||||||||||||||||
Benefit obligation at end of year (BO) | $ | 1,076 | $ | 955 | $ | 513 | $ | 472 | $ | 2,316 | $ | 2,276 | |||||||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 941 | $ | 1,071 | $ | 485 | $ | 517 | $ | 2,179 | $ | 2,218 | |||||||||||||||||||||||||
Actual return on plan assets | 132 | 1 | 24 | 41 | 295 | 201 | |||||||||||||||||||||||||||||||
Employer contributions (funding of qualified plans) | 75 | 43 | 10 | — | 64 | 62 | |||||||||||||||||||||||||||||||
Employer contributions (payments for non-qualified plans) | 12 | 13 | — | — | — | — | |||||||||||||||||||||||||||||||
Participant contributions | — | — | 19 | 18 | 5 | 1 | |||||||||||||||||||||||||||||||
Benefits paid | (66 | ) | (9 | ) | (45 | ) | (45 | ) | (84 | ) | (81 | ) | |||||||||||||||||||||||||
Medicare subsidy | — | — | 4 | — | — | — | |||||||||||||||||||||||||||||||
Settlements | (12 | ) | (178 | ) | — | — | (7 | ) | (30 | ) | |||||||||||||||||||||||||||
Effects of exchange rate changes | — | — | — | — | (239 | ) | (232 | ) | |||||||||||||||||||||||||||||
Other | — | — | — | (46 | ) | — | 40 | ||||||||||||||||||||||||||||||
Fair value of plan assets at end of year (FVPA) | $ | 1,082 | $ | 941 | $ | 497 | $ | 485 | $ | 2,213 | $ | 2,179 | |||||||||||||||||||||||||
Funded status (FVPA – BO) at end of year | $ | 6 | $ | (14 | ) | $ | (16 | ) | $ | 13 | $ | (103 | ) | $ | (97 | ) | |||||||||||||||||||||
Amounts recognized on the Consolidated Balance Sheets as of December 31, 2014, were as follows: | |||||||||||||||||||||||||||||||||||||
U.S. Defined | U.S. Retiree | Non-U.S. | Total | ||||||||||||||||||||||||||||||||||
Benefit | Health Care | Defined Benefit | |||||||||||||||||||||||||||||||||||
Overfunded retirement plans | $ | 72 | $ | — | $ | 55 | $ | 127 | |||||||||||||||||||||||||||||
Accrued expenses and other liabilities | (9 | ) | — | (6 | ) | (15 | ) | ||||||||||||||||||||||||||||||
Underfunded retirement plans | (57 | ) | (16 | ) | (152 | ) | (225 | ) | |||||||||||||||||||||||||||||
Funded status (FVPA – BO) at end of year | $ | 6 | $ | (16 | ) | $ | (103 | ) | $ | (113 | ) | ||||||||||||||||||||||||||
Amounts recognized on the Consolidated Balance Sheets as of December 31, 2013, were as follows: | |||||||||||||||||||||||||||||||||||||
U.S. Defined | U.S. Retiree | Non-U.S. | Total | ||||||||||||||||||||||||||||||||||
Benefit | Health Care | Defined Benefit | |||||||||||||||||||||||||||||||||||
Overfunded retirement plans | $ | 44 | $ | 16 | $ | 70 | $ | 130 | |||||||||||||||||||||||||||||
Accrued expenses and other liabilities | (7 | ) | — | (5 | ) | (12 | ) | ||||||||||||||||||||||||||||||
Underfunded retirement plans | (51 | ) | (3 | ) | (162 | ) | (216 | ) | |||||||||||||||||||||||||||||
Funded status (FVPA – BO) at end of year | $ | (14 | ) | $ | 13 | $ | (97 | ) | $ | (98 | ) | ||||||||||||||||||||||||||
Contributions to the plans meet or exceed all minimum funding requirements. We expect to contribute about $100 million to our retirement benefit plans in 2015. The amounts shown for underfunded U.S. defined benefit plans were for non-qualified pension plans, which we do not fund because contributions to them are not tax deductible. | |||||||||||||||||||||||||||||||||||||
Accumulated benefit obligations, which are generally less than the projected benefit obligations as they exclude the impact of future salary increases, were $968 million and $882 million at December 31, 2014 and 2013, respectively, for the U.S. defined benefit plans, and $2.15 billion and $2.12 billion at December 31, 2014 and 2013, respectively, for the non-U.S. defined benefit plans. | |||||||||||||||||||||||||||||||||||||
The amounts recorded in AOCI for the years ended December 31, 2014 and 2013, are detailed below by plan type: | |||||||||||||||||||||||||||||||||||||
U.S. Defined Benefit | U.S. Retiree | Non-U.S. | Total | ||||||||||||||||||||||||||||||||||
Health Care | Defined Benefit | ||||||||||||||||||||||||||||||||||||
Net | Prior | Net | Prior | Net | Prior | Net | Prior | ||||||||||||||||||||||||||||||
Actuarial | Service | Actuarial | Service | Actuarial | Service | Actuarial | Service | ||||||||||||||||||||||||||||||
Loss | Credit | Loss | Cost | Loss | Credit | Loss | Credit | ||||||||||||||||||||||||||||||
AOCI balance, net of taxes, December 31, 2013 | $ | 149 | $ | (2 | ) | $ | 71 | $ | 10 | $ | 305 | $ | (9 | ) | $ | 525 | $ | (1 | ) | ||||||||||||||||||
Changes in AOCI by category | |||||||||||||||||||||||||||||||||||||
Adjustments | 37 | — | 29 | — | 5 | 1 | 71 | 1 | |||||||||||||||||||||||||||||
Recognized within Net income | (31 | ) | 3 | (7 | ) | (3 | ) | (25 | ) | — | (63 | ) | — | ||||||||||||||||||||||||
Tax effect | (2 | ) | (1 | ) | (8 | ) | 1 | 6 | — | (4 | ) | — | |||||||||||||||||||||||||
Total change to AOCI | 4 | 2 | 14 | (2 | ) | (14 | ) | 1 | 4 | 1 | |||||||||||||||||||||||||||
AOCI balance, net of taxes, December 31, 2014 | $ | 153 | $ | — | $ | 85 | $ | 8 | $ | 291 | $ | (8 | ) | $ | 529 | $ | — | ||||||||||||||||||||
The estimated amounts of net actuarial loss and unrecognized prior service cost (credit) included in AOCI as of December 31, 2014, that are expected to be amortized into net periodic benefit cost over the next fiscal year are: $19 million and none for the U.S. defined benefit plans; $9 million and $6 million for the U.S. retiree health care benefit plan; and $22 million and ($2) million for the non-U.S. defined benefit plans. | |||||||||||||||||||||||||||||||||||||
Information on plan assets | |||||||||||||||||||||||||||||||||||||
We report and measure the plan assets of our defined benefit pension and other postretirement plans at fair value. The tables below set forth the fair value of our plan assets as of December 31, 2014 and 2013, using the same three-level hierarchy of fair-value inputs described in Note 9. | |||||||||||||||||||||||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Assets of U.S. defined benefit plan | |||||||||||||||||||||||||||||||||||||
Fixed income securities and cash equivalents | $ | 707 | $ | — | $ | 707 | $ | — | |||||||||||||||||||||||||||||
Equity securities | 375 | — | 375 | — | |||||||||||||||||||||||||||||||||
Other | — | — | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 1,082 | $ | — | $ | 1,082 | $ | — | |||||||||||||||||||||||||||||
Assets of U.S. retiree health care plan | |||||||||||||||||||||||||||||||||||||
Fixed income securities and cash equivalents | $ | 243 | $ | 200 | $ | 43 | $ | — | |||||||||||||||||||||||||||||
Equity securities | 254 | — | 254 | — | |||||||||||||||||||||||||||||||||
Total | $ | 497 | $ | 200 | $ | 297 | $ | — | |||||||||||||||||||||||||||||
Assets of non-U.S. defined benefit plans | |||||||||||||||||||||||||||||||||||||
Fixed income securities and cash equivalents | $ | 1,608 | $ | 430 | $ | 1,178 | $ | — | |||||||||||||||||||||||||||||
Equity securities | 600 | 6 | 594 | — | |||||||||||||||||||||||||||||||||
Other | 5 | — | — | 5 | |||||||||||||||||||||||||||||||||
Total | $ | 2,213 | $ | 436 | $ | 1,772 | $ | 5 | |||||||||||||||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Assets of U.S. defined benefit plan | |||||||||||||||||||||||||||||||||||||
Fixed income securities and cash equivalents | $ | 607 | $ | — | $ | 607 | $ | — | |||||||||||||||||||||||||||||
Equity securities | 297 | — | 297 | — | |||||||||||||||||||||||||||||||||
Other | 37 | — | — | 37 | |||||||||||||||||||||||||||||||||
Total | $ | 941 | $ | — | $ | 904 | $ | 37 | |||||||||||||||||||||||||||||
Assets of U.S. retiree health care plan | |||||||||||||||||||||||||||||||||||||
Fixed income securities and cash equivalents | $ | 238 | $ | 193 | $ | 45 | $ | — | |||||||||||||||||||||||||||||
Equity securities | 247 | — | 247 | — | |||||||||||||||||||||||||||||||||
Total | $ | 485 | $ | 193 | $ | 292 | $ | — | |||||||||||||||||||||||||||||
Assets of non-U.S. defined benefit plans | |||||||||||||||||||||||||||||||||||||
Fixed income securities and cash equivalents | $ | 1,521 | $ | 397 | $ | 1,124 | $ | — | |||||||||||||||||||||||||||||
Equity securities | 650 | 6 | 644 | — | |||||||||||||||||||||||||||||||||
Other | 8 | — | — | 8 | |||||||||||||||||||||||||||||||||
Total | $ | 2,179 | $ | 403 | $ | 1,768 | $ | 8 | |||||||||||||||||||||||||||||
The investments in our major benefit plans largely consist of low-cost, broad-market index funds to mitigate risks of concentration within market sectors. Our investment policy is designed to better match the interest rate sensitivity of the plan assets and liabilities. The appropriate mix of equity and bond investments is determined primarily through the use of detailed asset-liability modeling studies that look to balance the impact of changes in the discount rate against the need to provide asset growth to cover future service cost. Most of our plans around the world have a greater proportion of fixed income securities with return characteristics that are more closely aligned with changes in the liabilities caused by discount rate volatility. For the U.S. plans, we utilize an option collar strategy to reduce the volatility of returns on investments in U.S. equity funds. | |||||||||||||||||||||||||||||||||||||
The only Level 3 assets in our worldwide benefit plans for the periods presented are private equity limited partnerships in our U.S. pension plan, which were sold in 2014, and a diversified property fund in a non-U.S. pension plan. These investments are valued using inputs from the fund managers and internal models. The following table summarizes the change in the fair values for Level 3 plan assets for the years ending December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||||||
Level 3 Plan Assets | |||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | ||||||||||||||||||||||||||||||||||||
Benefit | Benefit | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 37 | $ | 19 | |||||||||||||||||||||||||||||||||
Redemptions | — | (10 | ) | ||||||||||||||||||||||||||||||||||
Unrealized loss | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2013 | 37 | 8 | |||||||||||||||||||||||||||||||||||
Redemptions and sales | (45 | ) | (2 | ) | |||||||||||||||||||||||||||||||||
Unrealized gain (loss) | 8 | (1 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2014 | $ | — | $ | 5 | |||||||||||||||||||||||||||||||||
Assumptions and investment policies | |||||||||||||||||||||||||||||||||||||
Defined Benefit | U.S. Retiree | ||||||||||||||||||||||||||||||||||||
Health Care | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Weighted average assumptions used to determine benefit obligations: | |||||||||||||||||||||||||||||||||||||
U.S. discount rate | 4.23% | 5.11% | 4.07% | 4.83% | |||||||||||||||||||||||||||||||||
Non-U.S. discount rate | 2.34% | 3.01% | |||||||||||||||||||||||||||||||||||
U.S. average long-term pay progression | 3.30% | 3.50% | |||||||||||||||||||||||||||||||||||
Non-U.S. average long-term pay progression | 3.27% | 3.11% | |||||||||||||||||||||||||||||||||||
Weighted average assumptions used to determine net periodic benefit cost: | |||||||||||||||||||||||||||||||||||||
U.S. discount rate | 5.11% | 4.59% | 4.83% | 3.94% | |||||||||||||||||||||||||||||||||
Non-U.S. discount rate | 3.01% | 2.74% | |||||||||||||||||||||||||||||||||||
U.S. long-term rate of return on plan assets | 5.25% | 5.25% | 4.50% | 4.75% | |||||||||||||||||||||||||||||||||
Non-U.S. long-term rate of return on plan assets | 3.75% | 3.34% | |||||||||||||||||||||||||||||||||||
U.S. average long-term pay progression | 3.50% | 3.60% | |||||||||||||||||||||||||||||||||||
Non-U.S. average long-term pay progression | 3.11% | 3.01% | |||||||||||||||||||||||||||||||||||
We utilize a variety of methods to select an appropriate discount rate depending on the depth of the corporate bond market in the country in which the benefit plan operates. In the United States, we use a settlement approach whereby a portfolio of bonds is selected from the universe of actively traded high-quality U.S. corporate bonds. The selected portfolio is designed to provide cash flows sufficient to pay the plan’s expected benefit payments when due. The resulting discount rate reflects the rate of return of the selected portfolio of bonds. For our non-U.S. locations with a sufficient number of actively traded high-quality bonds, an analysis is performed in which the projected cash flows from the defined benefit plans are discounted against a yield curve constructed with an appropriate universe of high-quality corporate bonds available in each country. In this manner, a present value is developed. The discount rate selected is the single equivalent rate that produces the same present value. For countries that lack a sufficient corporate bond market, a government bond index adjusted for an appropriate risk premium is used to establish the discount rate. | |||||||||||||||||||||||||||||||||||||
Assumptions for the expected long-term rate of return on plan assets are based on future expectations for returns for each asset class and the effect of periodic target asset allocation rebalancing. We adjust the results for the payment of reasonable expenses of the plan from plan assets. We believe our assumptions are appropriate based on the investment mix and long-term nature of the plans’ investments. Assumptions used for the non-U.S. defined benefit plans reflect the different economic environments within the various countries. | |||||||||||||||||||||||||||||||||||||
The table below shows target allocation ranges for the plans that hold a substantial majority of the defined benefit assets. | |||||||||||||||||||||||||||||||||||||
Asset Category | U.S. Defined | U.S. Retiree | Non-U.S. Defined | ||||||||||||||||||||||||||||||||||
Benefit | Health Care | Benefit | |||||||||||||||||||||||||||||||||||
Fixed income securities and cash equivalents | 65% | 50% | 60% - 100% | ||||||||||||||||||||||||||||||||||
Equity securities | 35% | 50% | 0% - 40% | ||||||||||||||||||||||||||||||||||
We rebalance the plans’ investments when they are not within the target allocation ranges. | |||||||||||||||||||||||||||||||||||||
Weighted average asset allocations as of December 31, are as follows: | |||||||||||||||||||||||||||||||||||||
U.S. Defined | U.S. Retiree | Non-U.S. Defined | |||||||||||||||||||||||||||||||||||
Benefit | Health Care | Benefit | |||||||||||||||||||||||||||||||||||
Asset Category | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Fixed income securities and cash equivalents | 65% | 65% | 49% | 49% | 73% | 70% | |||||||||||||||||||||||||||||||
Equity securities | 35% | 35% | 51% | 51% | 27% | 30% | |||||||||||||||||||||||||||||||
None of the plan assets related to the defined benefit pension plans and retiree health care benefit plan are directly invested in TI common stock. As of December 31, 2014, we do not expect to return any of the defined benefit pension plans’ assets to TI in the next 12 months. | |||||||||||||||||||||||||||||||||||||
The following table shows the benefits we expect to pay to participants from the plans in the next 10 years and assumes that retirement eligible participants take their benefits immediately. Almost all of the payments will be made from plan assets and not from company assets. | |||||||||||||||||||||||||||||||||||||
U.S. Defined | U.S. Retiree | Medicare | Non-U.S. Defined | ||||||||||||||||||||||||||||||||||
Benefit | Health Care | Subsidy | Benefit | ||||||||||||||||||||||||||||||||||
2015 | $ | 217 | $ | 36 | $ | (4 | ) | $ | 76 | ||||||||||||||||||||||||||||
2016 | 95 | 37 | (4 | ) | 78 | ||||||||||||||||||||||||||||||||
2017 | 91 | 39 | (4 | ) | 82 | ||||||||||||||||||||||||||||||||
2018 | 93 | 40 | (5 | ) | 85 | ||||||||||||||||||||||||||||||||
2019 | 93 | 40 | (5 | ) | 89 | ||||||||||||||||||||||||||||||||
2020 - 2024 | 435 | 194 | (9 | ) | 501 | ||||||||||||||||||||||||||||||||
Assumed health care cost trend rates for the U.S. retiree health care benefit plan at December 31 are as follows: | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||
Assumed health care cost trend rate for next year | 7.00% | 7.00% | |||||||||||||||||||||||||||||||||||
Ultimate trend rate | 5.00% | 5.00% | |||||||||||||||||||||||||||||||||||
Year in which ultimate trend rate is reached | 2023 | 2022 | |||||||||||||||||||||||||||||||||||
A one percentage point increase or decrease in health care cost trend rates over all future periods would have increased or decreased the accumulated postretirement benefit obligation for the U.S. retiree health care benefit plan at December 31, 2014, by $27 million or $22 million, respectively. The service cost and interest cost components of 2014 plan expense would have increased or decreased by $1 million. | |||||||||||||||||||||||||||||||||||||
Deferred compensation arrangements | |||||||||||||||||||||||||||||||||||||
We have a deferred compensation plan that allows U.S. employees whose base salary and management responsibility exceed a certain level to defer receipt of a portion of their cash compensation. Payments under this plan are made based on the participant’s distribution election and plan balance. Participants can earn a return on their deferred compensation based on notional investments in the same investment funds that are offered in our defined contribution plans. | |||||||||||||||||||||||||||||||||||||
As of December 31, 2014, our liability to participants of the deferred compensation plans was $202 million and is recorded in Deferred credits and other liabilities on our Consolidated Balance Sheets. This amount reflects the accumulated participant deferrals and earnings thereon as of that date. As of December 31, 2014, we held $185 million in mutual funds related to these plans that are recorded in Long-term investments on our Consolidated Balance Sheets, and serve as an economic hedge against changes in fair values of our other deferred compensation liabilities. We record changes in the fair value of the liability and the related investment in SG&A as discussed in Note 9. |
Debt_and_lines_of_credit
Debt and lines of credit | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt and lines of credit | Debt and lines of credit | |||||||
Short-term borrowings | ||||||||
We maintain a line of credit to support commercial paper borrowings, if any, and to provide additional liquidity through bank loans. As of December 31, 2014, we had a variable-rate revolving credit facility from a consortium of investment-grade banks that allows us to borrow up to $2 billion through March 2019. The interest rate on borrowings under this credit facility, if drawn, is indexed to the applicable London Interbank Offered Rate (LIBOR). As of December 31, 2014, our credit facility was undrawn and we had no commercial paper outstanding. | ||||||||
Long-term debt | ||||||||
In March 2014, we issued an aggregate principal amount of $500 million of fixed-rate long-term debt, with $250 million due in 2017 and $250 million due in 2021. We incurred $3 million of issuance and other related costs, which are being amortized to Interest and debt expense over the term of the debt. The proceeds of the offering were $498 million, net of the original issuance discount and were used toward the repayment of the $1.0 billion of debt that matured in May 2014. | ||||||||
In May 2013, we issued an aggregate principal amount of $1.0 billion of fixed-rate long-term debt, with $500 million due in 2018 and $500 million due in 2023. We incurred $6 million of issuance and other related costs that are being amortized to Interest and debt expense over the term of the debt. The proceeds of the offering were $986 million, net of the original issuance discount and were used toward the repayment of $1.5 billion of maturing debt, including floating-rate notes. In connection with this repayment, we settled a floating-to-fixed interest rate swap, associated with the maturing debt. | ||||||||
In August 2012, we issued an aggregate principal amount of $1.5 billion of fixed-rate long-term debt, with $750 million due in 2015 and $750 million due in 2019. The proceeds of the offering were $1.492 billion, net of the original issuance discount. We also incurred $7 million of issuance and other related costs that are being amortized to Interest and debt expense over the term of the debt. | ||||||||
Long-term debt outstanding as of December 31, 2014 and 2013 is as follows: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Notes due 2014 at 1.375% | $ | — | $ | 1,000 | ||||
Notes due 2015 at 3.95% (assumed with National acquisition) | 250 | 250 | ||||||
Notes due 2015 at 0.45% | 750 | 750 | ||||||
Notes due 2016 at 2.375% | 1,000 | 1,000 | ||||||
Notes due 2017 at 6.60% (assumed with National acquisition) | 375 | 375 | ||||||
Notes due 2017 at 0.875% | 250 | — | ||||||
Notes due 2018 at 1.00% | 500 | 500 | ||||||
Notes due 2019 at 1.65% | 750 | 750 | ||||||
Notes due 2021 at 2.75% | 250 | — | ||||||
Notes due 2023 at 2.25% | 500 | 500 | ||||||
4,625 | 5,125 | |||||||
Net unamortized premium | 17 | 33 | ||||||
Current portion of long-term debt | (1,001 | ) | (1,000 | ) | ||||
Long-term debt | $ | 3,641 | $ | 4,158 | ||||
Interest and debt expense was $94 million in 2014, $95 million in 2013 and $85 million in 2012. This was net of the amortization of the debt premium and other debt issuance costs. Cash payments for interest on long-term debt were $102 million in both 2014 and 2013 and $97 million in 2012. Capitalized interest was not material. |
Commitments_and_contingencies
Commitments and contingencies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Commitments and contingencies | Commitments and contingencies | ||||||||||||
Operating leases | |||||||||||||
We conduct certain operations in leased facilities and also lease a portion of our data processing and other equipment. In addition, certain long-term supply agreements to purchase industrial gases are accounted for as operating leases. Lease agreements frequently include purchase and renewal provisions and require us to pay taxes, insurance and maintenance costs. Rental and lease expense incurred was $113 million, $120 million and $124 million in 2014, 2013 and 2012, respectively. | |||||||||||||
Capitalized software licenses | |||||||||||||
We have licenses for certain internal-use electronic design automation software that we account for as capital leases. The related liabilities are apportioned between Accounts payable and Deferred credits and other liabilities on our Consolidated Balance Sheets, depending on the contractual timing of payments. | |||||||||||||
Purchase commitments | |||||||||||||
Some of our purchase commitments entered in the ordinary course of business provide for minimum payments. | |||||||||||||
As of December 31, 2014, we had committed to make the following minimum payments under our non-cancellable operating leases, capitalized software licenses and purchase commitments: | |||||||||||||
Operating | Capitalized | Purchase | |||||||||||
Leases | Software | Commitments | |||||||||||
Licenses | |||||||||||||
2015 | $ | 87 | $ | 39 | $ | 96 | |||||||
2016 | 66 | 27 | 52 | ||||||||||
2017 | 45 | — | 35 | ||||||||||
2018 | 33 | — | 14 | ||||||||||
2019 | 21 | — | 10 | ||||||||||
Thereafter | 80 | — | 2 | ||||||||||
Indemnification guarantees | |||||||||||||
We routinely sell products with an intellectual property indemnification included in the terms of sale. Historically, we have had only minimal, infrequent losses associated with these indemnities. Consequently, we cannot reasonably estimate any future liabilities that may result. | |||||||||||||
Warranty costs/product liabilities | |||||||||||||
We accrue for known product-related claims if a loss is probable and can be reasonably estimated. During the periods presented, there have been no material accruals or payments regarding product warranty or product liability. Historically, we have experienced a low rate of payments on product claims. Although we cannot predict the likelihood or amount of any future claims, we do not believe they will have a material adverse effect on our financial condition, results of operations or liquidity. Consistent with general industry practice, we enter into formal contracts with certain customers that include negotiated warranty remedies. Typically, under these agreements our warranty for semiconductor products includes three years of coverage; an obligation to repair, replace or refund; and a maximum payment obligation tied to the price paid for our products. In some cases, product claims may exceed the price of our products. | |||||||||||||
General | |||||||||||||
We are subject to various legal and administrative proceedings. Although it is not possible to predict the outcome of these matters, we believe that the results of these proceedings will not have a material adverse effect on our financial condition, results of operations or liquidity. | |||||||||||||
Discontinued operations indemnity | |||||||||||||
In connection with the 2006 sale of the former Sensors & Controls (S&C) business, we have agreed to indemnify Sensata Technologies, Inc., for specified litigation matters and certain liabilities, including environmental liabilities. In a settlement with a third party, we have agreed to indemnify that party for certain events relating to S&C products, which events we consider remote. We believe our total remaining potential exposure from both of these indemnities will not exceed $200 million. As of December 31, 2014, we believe future payments related to these indemnity obligations will not have a material effect on our financial condition, results of operations or liquidity. |
Supplemental_financial_informa
Supplemental financial information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplemental Financial Information [Abstract] | |||||||||||||
Supplemental financial information | Supplemental financial information | ||||||||||||
Other Income (Expense), Net | |||||||||||||
For Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest income | $ | 7 | $ | 10 | $ | 8 | |||||||
Tax interest income (expense) | 6 | (10 | ) | 32 | |||||||||
Net gains on investments | 5 | 18 | 18 | ||||||||||
Other (a) | 3 | (1 | ) | (11 | ) | ||||||||
Total | $ | 21 | $ | 17 | $ | 47 | |||||||
(a) Includes lease income of approximately $15 million per year, primarily from the purchaser of a former business. As of December 31, 2014, the aggregate amount of non-cancellable future lease payments to be received from these leases is $51 million. These leases contain renewal options. Other also includes miscellaneous non-operational items such as losses related to former businesses, including settlements in 2012; gains and losses from currency exchange rate changes; and gains and losses from our derivative financial instruments, primarily forward foreign currency exchange contracts. | |||||||||||||
Prepaid Expenses and Other Current Assets | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Prepaid taxes on intercompany inventory profits | $ | 693 | $ | 667 | |||||||||
Other prepaid expenses and current assets | 157 | 196 | |||||||||||
Total | $ | 850 | $ | 863 | |||||||||
Property, Plant and Equipment at Cost | |||||||||||||
Depreciable Lives | December 31, | ||||||||||||
(Years) | 2014 | 2013 | |||||||||||
Land | n/a | $ | 137 | $ | 175 | ||||||||
Buildings and improvements | May-40 | 2,801 | 2,913 | ||||||||||
Machinery and equipment | 10-Mar | 3,328 | 3,468 | ||||||||||
Total | $ | 6,266 | $ | 6,556 | |||||||||
Accrued Expenses and Other Liabilities | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Customer incentive programs and allowances | $ | 101 | $ | 143 | |||||||||
Severance and related expenses | 60 | 158 | |||||||||||
Other | 337 | 350 | |||||||||||
Total | $ | 498 | $ | 651 | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Taxes | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Postretirement benefit plans: | |||||||||||||
Net actuarial loss | $ | (529 | ) | $ | (525 | ) | |||||||
Prior service credit | — | 1 | |||||||||||
Cash flow hedge derivative | (3 | ) | (4 | ) | |||||||||
Total | $ | (532 | ) | $ | (528 | ) | |||||||
Details on amounts reclassified out of Accumulated other comprehensive income (loss), net of taxes to Net income | |||||||||||||
Our Consolidated Statements of Comprehensive Income include items that have been recognized within Net income during the years ended December 31, 2014 and 2013. The table below details where on the Consolidated Statements of Income these transactions are recorded. | |||||||||||||
For Years Ended December 31, | Impact to Related Statement of Income Line | ||||||||||||
Details about AOCI Components | 2014 | 2013 | |||||||||||
Net actuarial gains (losses) of defined benefit plans: | |||||||||||||
Recognized net actuarial loss and Settlement losses (a) | $ | 63 | $ | 108 | Increase to Pension expense (b) | ||||||||
Tax effect | (21 | ) | (37 | ) | Decrease to Provision for income taxes | ||||||||
Recognized within Net income, net of taxes | $ | 42 | $ | 71 | Decrease to Net income | ||||||||
Prior service cost of defined benefit plans: | |||||||||||||
Amortization of prior service cost (credit) and Curtailment gain (a) | $ | — | $ | (5 | ) | Decrease to Pension expense (b) | |||||||
Tax effect | — | 2 | Increase to Provision for income taxes | ||||||||||
Recognized within Net income, net of taxes | $ | — | $ | (3 | ) | Increase to Net income | |||||||
Derivative instruments: | |||||||||||||
Amortization of treasury rate locks | $ | 2 | $ | 2 | Increase to Interest and debt expense | ||||||||
Tax effect | (1 | ) | (1 | ) | Decrease to Provision for income taxes | ||||||||
Recognized within Net income, net of taxes | $ | 1 | $ | 1 | Decrease to Net income | ||||||||
(a) Detailed in Note 11. | |||||||||||||
(b) Pension expense is included in COR, R&D, SG&A and Restructuring charges/other in the Consolidated Statements of Income. |
Quarterly_financial_data_unaud
Quarterly financial data (unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly financial data (unaudited) | Quarterly financial data (unaudited) | ||||||||||||||||
Quarter | |||||||||||||||||
2014 | 1st | 2nd | 3rd | 4th | |||||||||||||
Revenue | $ | 2,983 | $ | 3,292 | $ | 3,501 | $ | 3,269 | |||||||||
Gross profit | 1,607 | 1,881 | 2,044 | 1,895 | |||||||||||||
Included in Operating profit: | |||||||||||||||||
Acquisition charges | 83 | 82 | 83 | 82 | |||||||||||||
Restructuring charges/other | (11 | ) | (4 | ) | (9 | ) | (27 | ) | |||||||||
Operating profit | 690 | 982 | 1,175 | 1,100 | |||||||||||||
Net income | 487 | 683 | 826 | 825 | |||||||||||||
Earnings per common share: | |||||||||||||||||
Basic earnings per common share | $ | 0.44 | $ | 0.63 | $ | 0.77 | $ | 0.78 | |||||||||
Diluted earnings per common share | 0.44 | 0.62 | 0.76 | 0.76 | |||||||||||||
Quarter | |||||||||||||||||
2013 | 1st | 2nd | 3rd | 4th | |||||||||||||
Revenue | $ | 2,885 | $ | 3,047 | $ | 3,244 | $ | 3,028 | |||||||||
Gross profit | 1,374 | 1,570 | 1,779 | 1,640 | |||||||||||||
Included in Operating profit: | |||||||||||||||||
Acquisition charges | 86 | 86 | 86 | 84 | |||||||||||||
Restructuring charges/other | 15 | (282 | ) | 16 | 62 | ||||||||||||
Operating profit | 395 | 906 | 844 | 687 | |||||||||||||
Net income | 362 | 660 | 629 | 511 | |||||||||||||
Earnings per common share: | |||||||||||||||||
Basic earnings per common share | $ | 0.32 | $ | 0.59 | $ | 0.56 | $ | 0.46 | |||||||||
Diluted earnings per common share | 0.32 | 0.58 | 0.56 | 0.46 | |||||||||||||
Basis_of_presentation_and_sign1
Basis of presentation and significant accounting policies and practices (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Basis of presentation | Basis of presentation | |
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP). The basis of these financial statements is comparable for all periods presented herein. | ||
The consolidated financial statements include the accounts of all subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. All dollar amounts in the financial statements and tables in these notes, except per-share amounts, are stated in millions of U.S. dollars unless otherwise indicated. We have reclassified certain amounts in the prior periods’ financial statements to conform to the 2014 presentation. The preparation of financial statements requires the use of estimates from which final results may vary. | ||
Revenue recognition | Revenue recognition | |
We recognize revenue from sales of our products, including direct sales to our distributors, when title and risk of loss pass, which usually occurs upon shipment or delivery to the customer or distributor, depending upon the terms of the sales order; when persuasive evidence of an arrangement exists; when sales amounts are fixed or determinable; and when collectability is reasonably assured. For sales to distributors, payment is due on our standard commercial terms and is not contingent upon resale of the products. In 2014, about 60 percent of our revenue was generated from sales of our products to distributors. | ||
We recognize revenue net of allowances, which are management’s estimates of future credits to be granted to customers or distributors under programs common in the semiconductor industry. These allowances are based on analysis of historical data, current economic conditions, and contractual terms and are recorded when revenue is recognized. Allowances may include volume-based incentives, product returns due to quality issues, incentives designed to maximize growth opportunities and special pricing arrangements. For instance, we sell to distributors at standard published prices, but we may grant them price adjustment credits in response to individual competitive opportunities. To estimate allowances, we use statistical percentages of revenue, which are determined quarterly based upon recent historical adjustment trends. Historical claims data are maintained for each of the programs, with differences among geographic regions taken into consideration. We continually monitor the actual claimed allowances against our estimates, and we adjust our estimates as appropriate to reflect trends in distributor revenue and inventory levels. Allowances are also adjusted when recent historical data do not represent anticipated future activity. | ||
We may also provide distributors an allowance to scrap certain slow-selling or obsolete products in their inventory, estimated as a negotiated fixed percentage of each distributor’s purchases from us. In addition, if we publish a new price for a product that is lower than that paid by distributors for the same product still remaining in each distributor’s on-hand inventory, we may credit them for the difference between those prices. The allowance for this type of credit is based on the identified product price difference applied to our estimate of each distributor’s on-hand inventory of that product. | ||
We believe we can reasonably and reliably estimate allowances for credits to distributors in a timely manner. | ||
Revenue from sales of our products that are subject to inventory consignment agreements, including consignment arrangements with distributors, is recognized in accordance with the principles discussed above, but delivery occurs when the customer or distributor pulls product from consignment inventory that we store at designated locations. About 60 percent of our distributor revenue is generated from sales of consigned inventory. The allowances we record against this revenue are not material. | ||
We determine the amount and timing of royalty revenue based on our contractual agreements with intellectual property licensees. We recognize royalty revenue when earned under the terms of the agreements and when we consider realization of payment to be probable. | ||
In addition, we record allowances for accounts receivable that we estimate may not be collected. We monitor collectability of accounts receivable primarily through review of the accounts receivable aging. When collection is at risk, we assess the impact on amounts recorded for bad debts and, if necessary, will record a charge in the period such determination is made. | ||
We recognize shipping fees received from customers in revenue, and we include the shipping and handling costs in COR. | ||
Advertising costs | Advertising costs | |
We expense advertising and other promotional costs as incurred. | ||
Restructuring charges | Restructuring charges | |
Restructuring charges may consist of voluntary or involuntary severance-related charges, asset-related charges and other costs due to exit activities. We recognize voluntary termination benefits when the employee accepts the offered benefit arrangement. We recognize involuntary severance-related charges depending on whether the termination benefits are provided under an ongoing benefit arrangement or under a one-time benefit arrangement. If the former, we recognize the charges once they are probable and the amounts are estimable. If the latter, we recognize the charges once the benefits have been communicated to employees. | ||
Restructuring activities associated with assets are recorded as an adjustment to the basis of the asset, not as a liability. When we commit to a plan to abandon a long-lived asset before the end of its previously estimated useful life, we accelerate the recognition of depreciation to reflect the use of the asset over its shortened useful life. When an asset is held to be sold, we write down the carrying value to its net realizable value and cease depreciation. Restructuring actions may be viewed as an impairment indicator requiring testing of the recoverability of intangible assets, including goodwill. | ||
Income taxes | Income taxes | |
We account for income taxes using an asset and liability approach. We record the amount of taxes payable or refundable for the current year and the deferred tax assets and liabilities for future tax consequences of events that have been recognized in the financial statements or tax returns. We record a valuation allowance when it is more likely than not that some or all of the deferred tax assets will not be realized. | ||
Other assessed taxes | Other assessed taxes | |
Some transactions require us to collect taxes such as sales, value-added and excise taxes from our customers. These transactions are presented in our Consolidated Statements of Income on a net (excluded from revenue) basis. | ||
Earnings per share (EPS) | Earnings per share (EPS) | |
Unvested share-based payment awards that contain non-forfeitable rights to receive dividends or dividend equivalents, such as our restricted stock units (RSUs), are considered to be participating securities and the two-class method is used for purposes of calculating EPS. Under the two-class method, a portion of Net income is allocated to these participating securities and, therefore, is excluded from the calculation of EPS allocated to common stock | ||
Investments | Investments | |
We present investments on our Consolidated Balance Sheets as cash equivalents, short-term investments or long-term investments. Specific details are as follows: | ||
• | Cash equivalents and short-term investments: We consider investments in debt securities with maturities of 90 days or less from the date of our investment to be cash equivalents. We consider investments in debt securities with maturities beyond 90 days from the date of our investment as being available for use in current operations and include them in short-term investments. The primary objectives of our cash equivalent and short-term investment activities are to preserve capital and maintain liquidity while generating appropriate returns. | |
• | Long-term investments: Long-term investments consist of mutual funds, venture capital funds and non-marketable equity securities. | |
• | Classification of investments: Depending on our reasons for holding the investment and our ownership percentage, we classify our investments as either available for sale, trading, equity method or cost method, which are more fully described in Note 9. We determine cost or amortized cost, as appropriate, on a specific identification basis. | |
We classify our investments as either available for sale, trading, equity method or cost method. Most of our investments are classified as available for sale. | ||
Available-for-sale and trading securities are stated at fair value, which is generally based on market prices or broker quotes. See fair-value discussion below. Unrealized gains and losses on available-for-sale securities are recorded as an increase or decrease, net of taxes, in AOCI on our Consolidated Balance Sheets. We record other-than-temporary impairments on available-for-sale securities in OI&E in our Consolidated Statements of Income. | ||
We classify certain mutual funds as trading securities. These mutual funds hold a variety of debt and equity investments intended to generate returns that offset changes in certain deferred compensation liabilities. We record changes in the fair value of these mutual funds and the related deferred compensation liabilities in SG&A. | ||
Our other investments are not measured at fair value but are accounted for using either the equity method or cost method. These investments consist of interests in venture capital funds and other non-marketable equity securities. Gains and losses from equity-method investments are reflected in OI&E based on our ownership share of the investee’s financial results. Gains and losses on cost-method investments are recorded in OI&E when realized or when an impairment of the investment’s value is warranted based on our assessment of the recoverability of each investment. | ||
Inventories | Inventories | |
Inventories are stated at the lower of cost or estimated net realizable value. Cost is generally computed on a currently adjusted standard cost basis, which approximates cost on a first-in first-out basis. Standard cost is based on the normal utilization of installed factory capacity. Cost associated with underutilization of capacity is expensed as incurred. Inventory held at consignment locations is included in our finished goods inventory. Consigned inventory was $258 million and $202 million as of December 31, 2014 and 2013, respectively. | ||
We review inventory quarterly for salability and obsolescence. A statistical allowance is provided for inventory considered unlikely to be sold. The statistical allowance is based on an analysis of historical disposal activity, historical customer shipments, as well as estimated future sales. A specific allowance for each material type will be carried if there is a significant event not captured by the statistical allowance. We write off inventory in the period in which disposal occurs. | ||
Property, plant and equipment; acquisition-related intangibles and other capitalized costs | Property, plant and equipment; acquisition-related intangibles and other capitalized costs | |
Property, plant and equipment are stated at cost and depreciated over their estimated useful lives using the straight-line method. Our cost basis includes certain assets acquired in business combinations that were initially recorded at fair value as of the date of acquisition. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the improvements. We amortize acquisition-related intangibles on a straight-line basis over the estimated economic life of the assets. Capitalized software licenses generally are amortized on a straight-line basis over the term of the license. Fully depreciated or amortized assets are written off against accumulated depreciation or amortization. | ||
Impairments of long-lived assets | Impairments of long-lived assets | |
We regularly review whether facts or circumstances exist that indicate the carrying values of property, plant and equipment or other long-lived assets, including intangible assets, are impaired. We assess the recoverability of assets by comparing the projected undiscounted net cash flows associated with those assets to their respective carrying amounts. Any impairment charge is based on the excess of the carrying amount over the fair value of those assets. Fair value is determined by available market valuations, if applicable, or by discounted cash flows. | ||
Goodwill and indefinite-lived intangibles | Goodwill and indefinite-lived intangibles | |
Goodwill is not amortized but is reviewed for impairment annually or more frequently if certain impairment indicators arise. We perform our annual goodwill impairment test as of October 1 for our reporting units, which compares the fair value for each reporting unit to its associated carrying value, including goodwill. | ||
Foreign currency | Foreign currency | |
The functional currency for our non-U.S. subsidiaries is the U.S. dollar. Accounts recorded in currencies other than the U.S. dollar are remeasured into the functional currency. Current assets (except inventories), deferred income taxes, other assets, current liabilities and long-term liabilities are remeasured at exchange rates in effect at the end of each reporting period. Property, plant and equipment with associated depreciation and inventories are valued at historic exchange rates. Revenue and expense accounts other than depreciation for each month are remeasured at the appropriate daily rate of exchange. Currency exchange gains and losses from remeasurement are credited or charged to OI&E. | ||
Derivatives and hedging | Derivatives and hedging | |
We use derivative financial instruments to manage exposure to foreign exchange risk. These instruments are primarily forward foreign currency exchange contracts, which are used as economic hedges to reduce the earnings impact that exchange rate fluctuations may have on our non-U.S. dollar net balance sheet exposures. Gains and losses from changes in the fair value of these forward foreign currency exchange contracts are credited or charged to OI&E. We do not apply hedge accounting to our foreign currency derivative instruments. | ||
In connection with the issuance of long-term debt, we use financial derivatives such as treasury rate lock agreements that are recognized in AOCI and amortized over the life of the related debt. The results of these derivative transactions have not been material. | ||
We do not use derivatives for speculative or trading purposes. | ||
Stock-based compensation | We determine expected volatility on all options granted using available implied volatility rates. We believe that market-based measures of implied volatility are currently the best available indicators of the expected volatility used in these estimates. | |
We determine expected lives of options based on the historical option exercise experience of our optionees using a rolling 10-year average. We believe the historical experience method is the best estimate of future exercise patterns currently available. | ||
Risk-free interest rates are determined using the implied yield currently available for zero-coupon U.S. government issues with a remaining term equal to the expected life of the options. | ||
Expected dividend yields are based on the annualized approved quarterly dividend rate and the current market price of our common stock at the time of grant. No assumption for a future dividend rate change is included unless there is an approved plan to change the dividend in the near term. | ||
The fair value per share of RSUs is determined based on the closing price of our common stock on the date of grant. | ||
Our employee stock purchase plan is a discount-purchase plan and consequently the Black-Scholes-Merton option-pricing model is not used to determine the fair value per share of these awards. The fair value per share under this plan equals the amount of the discount. | ||
We issue awards of non-qualified stock options with graded vesting provisions (e.g., 25 percent per year for four years). Generally, we recognize the related compensation expense on a straight-line basis over the minimum service period required for vesting of the award, adjusting for expected forfeiture activity. Awards issued to employees who are retirement eligible or nearing retirement eligibility are expensed on an accelerated basis. | ||
Our RSUs generally vest four years after the date of grant. We recognize the related compensation expense on a straight-line basis over the vesting period, adjusting for expected forfeiture activity. Beginning with 2013 grants, RSUs issued to employees who are retirement eligible or nearing retirement eligibility are expensed on an accelerated basis. | ||
Fair value | Fair-value considerations | |
We measure and report certain financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. | ||
The three-level hierarchy discussed below indicates the extent and level of judgment used to estimate fair-value measurements. | ||
• | Level 1 - Uses unadjusted quoted prices that are available in active markets for identical assets or liabilities as of the reporting date. | |
• | Level 2 - Uses inputs other than Level 1 that are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data. We utilize a third-party data service to provide Level 2 valuations. We verify these valuations for reasonableness relative to unadjusted quotes obtained from brokers or dealers based on observable prices for similar assets in active markets. | |
• | Level 3 - Uses inputs that are unobservable, supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models that utilize management estimates of market participant assumptions. | |
Indemnification guarantees and Warranty costs/product liabilities | Indemnification guarantees | |
We routinely sell products with an intellectual property indemnification included in the terms of sale. Historically, we have had only minimal, infrequent losses associated with these indemnities. Consequently, we cannot reasonably estimate any future liabilities that may result. | ||
Warranty costs/product liabilities | ||
We accrue for known product-related claims if a loss is probable and can be reasonably estimated. During the periods presented, there have been no material accruals or payments regarding product warranty or product liability. Historically, we have experienced a low rate of payments on product claims. Although we cannot predict the likelihood or amount of any future claims, we do not believe they will have a material adverse effect on our financial condition, results of operations or liquidity. Consistent with general industry practice, we enter into formal contracts with certain customers that include negotiated warranty remedies. Typically, under these agreements our warranty for semiconductor products includes three years of coverage; an obligation to repair, replace or refund; and a maximum payment obligation tied to the price paid for our products. In some cases, product claims may exceed the price of our products. |
Description_of_business_includ1
Description of business, including segment and geographic area information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Schedule of revenue and operating profit, by segment | Segment information | ||||||||||||
For Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenue: | |||||||||||||
Analog | $ | 8,104 | $ | 7,194 | $ | 6,998 | |||||||
Embedded Processing | 2,740 | 2,450 | 2,257 | ||||||||||
Other | 2,201 | 2,561 | 3,570 | ||||||||||
Total revenue | $ | 13,045 | $ | 12,205 | $ | 12,825 | |||||||
Operating profit: | |||||||||||||
Analog | $ | 2,786 | $ | 1,859 | $ | 1,650 | |||||||
Embedded Processing | 384 | 185 | 158 | ||||||||||
Other | 777 | 788 | 165 | ||||||||||
Total operating profit | $ | 3,947 | $ | 2,832 | $ | 1,973 | |||||||
Schedule of revenue, by geographic area | The following geographic area information includes revenue, based on product shipment destination and royalty payor location, and property, plant and equipment, based on physical location: | ||||||||||||
For Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenue: | |||||||||||||
United States | $ | 1,625 | $ | 1,666 | $ | 1,596 | |||||||
Asia (a) | 7,915 | 7,370 | 7,808 | ||||||||||
Europe | 2,293 | 1,926 | 1,861 | ||||||||||
Japan | 1,032 | 1,072 | 1,357 | ||||||||||
Rest of world | 180 | 171 | 203 | ||||||||||
Total revenue | $ | 13,045 | $ | 12,205 | $ | 12,825 | |||||||
(a) Revenue from products shipped into China, including Hong Kong, was $5.7 billion in 2014, $5.2 billion in 2013 and $5.4 billion in 2012. | |||||||||||||
Schedule property, plant and equipment, net, by geographic area | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Property, plant and equipment, net: | |||||||||||||
United States | $ | 1,436 | $ | 1,765 | $ | 1,931 | |||||||
Asia | 1,096 | 1,277 | 1,547 | ||||||||||
Europe | 162 | 196 | 241 | ||||||||||
Japan | 124 | 144 | 174 | ||||||||||
Rest of world | 22 | 17 | 19 | ||||||||||
Total property, plant and equipment, net | $ | 2,840 | $ | 3,399 | $ | 3,912 | |||||||
Basis_of_presentation_and_sign2
Basis of presentation and significant accounting policies and practices (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||
Schedule of earnings per share, basic and diluted | Computation and reconciliation of earnings per common share are as follows (shares in millions): | |||||||||||||||||||||||||||||||||
For Years Ended December 31, | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Net Income | Shares | EPS | Net Income | Shares | EPS | Net Income | Shares | EPS | ||||||||||||||||||||||||||
Basic EPS: | ||||||||||||||||||||||||||||||||||
Net income | $ | 2,821 | $ | 2,162 | $ | 1,759 | ||||||||||||||||||||||||||||
Income allocated to RSUs | (44 | ) | (37 | ) | (31 | ) | ||||||||||||||||||||||||||||
Income allocated to common stock for basic EPS calculation | $ | 2,777 | 1,065 | $ | 2.61 | $ | 2,125 | 1,098 | $ | 1.94 | $ | 1,728 | 1,132 | $ | 1.53 | |||||||||||||||||||
Adjustment for dilutive shares: | ||||||||||||||||||||||||||||||||||
Stock-based compensation plans | 15 | 15 | 14 | |||||||||||||||||||||||||||||||
Diluted EPS: | ||||||||||||||||||||||||||||||||||
Net income | $ | 2,821 | $ | 2,162 | $ | 1,759 | ||||||||||||||||||||||||||||
Income allocated to RSUs | (43 | ) | (36 | ) | (31 | ) | ||||||||||||||||||||||||||||
Income allocated to common stock for diluted EPS calculation | $ | 2,778 | 1,080 | $ | 2.57 | $ | 2,126 | 1,113 | $ | 1.91 | $ | 1,728 | 1,146 | $ | 1.51 | |||||||||||||||||||
Acquisition_charges_Tables
Acquisition charges (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Business Combinations [Abstract] | |||||||||||||
Total acquisition-related charges associated with the National acquisition | Total acquisition-related charges are detailed below: | ||||||||||||
For Years Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Amortization of intangible assets | $ | 319 | $ | 323 | $ | 325 | |||||||
Stock-based compensation | 11 | 11 | 17 | ||||||||||
Retention bonuses | — | 7 | 57 | ||||||||||
Severance and other benefits | — | — | 16 | ||||||||||
Transaction and other costs | — | — | 35 | ||||||||||
As recorded in Acquisition charges | 330 | 341 | 450 | ||||||||||
As recorded in COR | — | — | 21 | ||||||||||
Total acquisition-related charges | $ | 330 | $ | 341 | $ | 471 | |||||||
Restructuring_chargesother_Tab
Restructuring charges/other (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||
Schedule of restructuring charges/other | Restructuring charges/other is comprised of the following components: | ||||||||||||||||||||
For Years Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Restructuring charges by action: | |||||||||||||||||||||
2013 actions | |||||||||||||||||||||
Severance and benefits cost (a) | $ | 16 | $ | 49 | $ | — | |||||||||||||||
Other exit costs | 10 | — | — | ||||||||||||||||||
26 | 49 | — | |||||||||||||||||||
Prior actions | |||||||||||||||||||||
Severance and benefits cost (a) | (6 | ) | 36 | 251 | |||||||||||||||||
Accelerated depreciation | 1 | 11 | 21 | ||||||||||||||||||
Other exit costs (a) | (1 | ) | 30 | 128 | |||||||||||||||||
(6 | ) | 77 | 400 | ||||||||||||||||||
Total restructuring charges | 20 | 126 | 400 | ||||||||||||||||||
Other: | |||||||||||||||||||||
Gains on sales of assets | (75 | ) | — | — | |||||||||||||||||
Gain on technology transfer | — | (315 | ) | — | |||||||||||||||||
Gain on transfer of Japan substitutional pension | — | — | (144 | ) | |||||||||||||||||
Other | 4 | — | 8 | ||||||||||||||||||
Restructuring charges/other | $ | (51 | ) | $ | (189 | ) | $ | 264 | |||||||||||||
(a) Includes changes in estimates. | |||||||||||||||||||||
Changes in accrued restructuring balances | The table below reflects the changes in accrued restructuring balances associated with these actions: | ||||||||||||||||||||
2013 Actions | Prior Actions | ||||||||||||||||||||
Severance | Other | Severance | Other | Total | |||||||||||||||||
and Benefits | Charges | and Benefits | Charges | ||||||||||||||||||
Accrual at December 31, 2011 | $ | — | $ | — | $ | 109 | $ | 7 | $ | 116 | |||||||||||
Restructuring charges (a) | — | — | 251 | 149 | 400 | ||||||||||||||||
Non-cash items (b) | — | — | 3 | (124 | ) | (121 | ) | ||||||||||||||
Payments | — | — | (23 | ) | (23 | ) | (46 | ) | |||||||||||||
Remaining accrual at December 31, 2012 | — | — | 340 | 9 | 349 | ||||||||||||||||
Restructuring charges (a) | 49 | — | 36 | 41 | 126 | ||||||||||||||||
Non-cash items (b) | — | — | (5 | ) | (17 | ) | (22 | ) | |||||||||||||
Payments | — | — | (266 | ) | (26 | ) | (292 | ) | |||||||||||||
Remaining accrual at December 31, 2013 | 49 | — | 105 | 7 | 161 | ||||||||||||||||
Restructuring charges (a) | 16 | 10 | (6 | ) | — | 20 | |||||||||||||||
Payments | (43 | ) | (1 | ) | (73 | ) | (7 | ) | (124 | ) | |||||||||||
Remaining accrual at December 31, 2014 | $ | 22 | $ | 9 | $ | 26 | $ | — | $ | 57 | |||||||||||
(a) Includes changes in estimates. | |||||||||||||||||||||
(b) Reflects charges for goodwill impairment, stock-based compensation, impacts of postretirement benefit plans and accelerated depreciation. |
Stockbased_compensation_Tables
Stock-based compensation (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||
Schedule of stock-based compensation expense allocation within the Consolidated Statements of Income | Total stock-based compensation expense recognized was as follows: | |||||||||||||||||
For Years Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Stock-based compensation expense recognized in: | ||||||||||||||||||
COR | $ | 48 | $ | 49 | $ | 48 | ||||||||||||
R&D | 62 | 67 | 71 | |||||||||||||||
SG&A | 156 | 160 | 127 | |||||||||||||||
Acquisition charges | 11 | 11 | 17 | |||||||||||||||
Total | $ | 277 | $ | 287 | $ | 263 | ||||||||||||
Schedule of weighted average assumptions used to estimate the fair values for non-qualified stock options | We estimate the fair values for non-qualified stock options using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions. | |||||||||||||||||
For Years Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Weighted average grant date fair value, per share | $ | 8.13 | $ | 6.78 | $ | 8.31 | ||||||||||||
Weighted average assumptions used: | ||||||||||||||||||
Expected volatility | 22 | % | 26 | % | 30 | % | ||||||||||||
Expected lives (in years) | 7.3 | 7.4 | 7.1 | |||||||||||||||
Risk-free interest rates | 2.45 | % | 1.43 | % | 1.4 | % | ||||||||||||
Expected dividend yields | 2.72 | % | 2.56 | % | 2.1 | % | ||||||||||||
Schedule of stock option and RSU transactions under long-term incentive and director compensation plans | Stock option and RSU transactions under our long-term incentive and director compensation plans during 2014 were as follows: | |||||||||||||||||
Stock Options | RSUs | |||||||||||||||||
Shares | Weighted Average | Shares | Weighted Average | |||||||||||||||
Exercise Price | Grant Date Fair | |||||||||||||||||
per Share | Value per Share | |||||||||||||||||
Outstanding grants, December 31, 2013 | 64,930,540 | $ | 28.98 | 20,892,022 | $ | 29.94 | ||||||||||||
Granted | 14,053,185 | 44.11 | 3,184,237 | 44.71 | ||||||||||||||
Vested RSUs | — | — | (5,609,627 | ) | 23.68 | |||||||||||||
Forfeited and expired | (1,832,897 | ) | 36.54 | (1,162,817 | ) | 33.22 | ||||||||||||
Exercised | (19,503,382 | ) | 27.75 | — | — | |||||||||||||
Outstanding grants, December 31, 2014 | 57,647,446 | 32.84 | 17,303,815 | 34.47 | ||||||||||||||
Schedule of shares outstanding under stock option plans, by exercise price range | Summarized information about stock options outstanding at December 31, 2014, is as follows: | |||||||||||||||||
Stock Options Outstanding | Options Exercisable | |||||||||||||||||
Range of | Number | Weighted Average | Weighted Average | Number | Weighted Average | |||||||||||||
Exercise Price | Outstanding | Remaining Contractual | Exercise Price | Exercisable | Exercise Price | |||||||||||||
(Shares) | Life (Years) | per Share | (Shares) | per Share | ||||||||||||||
$ | 14.47 to 20.00 | 4,061,577 | 4 | $ | 14.98 | 4,061,577 | $ | 14.98 | ||||||||||
20.01 to 30.00 | 11,270,125 | 3.7 | 25.47 | 11,250,200 | 25.46 | |||||||||||||
30.01 to 40.00 | 28,910,636 | 6.5 | 33 | 12,288,339 | 33.14 | |||||||||||||
40.01 to 50.00 | 13,399,020 | 9.1 | 44.1 | 1,750 | 42.66 | |||||||||||||
50.01 to 55.41 | 6,088 | 9.9 | 55.41 | — | — | |||||||||||||
14.47 to 55.41 | 57,647,446 | 6.4 | 32.84 | 27,601,866 | 27.34 | |||||||||||||
Schedule of stock options that are vested and expected to vest, outstanding and exercisable | Summarized information as of December 31, 2014, about outstanding stock options that are vested and expected to vest, as well as stock options that are currently exercisable, is as follows: | |||||||||||||||||
Outstanding Stock Options | Options | |||||||||||||||||
(Fully Vested and Expected to Vest) (a) | Exercisable | |||||||||||||||||
Number of outstanding (shares) | 56,328,323 | 27,601,866 | ||||||||||||||||
Weighted average remaining contractual life (in years) | 6.3 | 4.4 | ||||||||||||||||
Weighted average exercise price per share | $ | 32.69 | $ | 27.34 | ||||||||||||||
Intrinsic value (millions of dollars) | $ | 1,170 | $ | 721 | ||||||||||||||
(a) Includes effects of expected forfeitures of approximately 1 million shares. Excluding the effects of expected forfeitures, the aggregate intrinsic value of stock options outstanding was $1,189 million. | ||||||||||||||||||
Schedule of director deferred compensation payable in shares | Director deferred stock activity during 2014 was as follows: | |||||||||||||||||
Director Deferred Stock (Shares) | ||||||||||||||||||
Outstanding, December 31, 2013 | 129,264 | |||||||||||||||||
New shares deferred | 13,636 | |||||||||||||||||
Issued | (7,178 | ) | ||||||||||||||||
Outstanding, December 31, 2014 | 135,722 | |||||||||||||||||
Schedule of employee stock purchase plan transactions | Employee stock purchase plan transactions during 2014 were as follows: | |||||||||||||||||
Employee Stock | Exercise Price | |||||||||||||||||
Purchase Plan | ||||||||||||||||||
(Shares) | ||||||||||||||||||
Outstanding grants, December 31, 2013 | 485,408 | $ | 36.64 | |||||||||||||||
Granted | 1,673,479 | 41.6 | ||||||||||||||||
Exercised | (1,784,184 | ) | 39.44 | |||||||||||||||
Outstanding grants, December 31, 2014 | 374,703 | 45.46 | ||||||||||||||||
Schedule of changes in treasury stock | The table below reflects the changes in our treasury shares: | |||||||||||||||||
Stock Options | RSUs | Treasury Shares | ||||||||||||||||
Balance, December 31, 2011 | 601,131,631 | |||||||||||||||||
Repurchases | 59,757,780 | |||||||||||||||||
Shares used for: | ||||||||||||||||||
Stock options/RSUs | (22,409,816 | ) | (4,182,928 | ) | ||||||||||||||
Previously unissued common shares (a) | 180,955 | 4,593 | ||||||||||||||||
Stock applied to taxes | — | 990,845 | ||||||||||||||||
ESPP | (2,829,498 | ) | — | |||||||||||||||
Director deferred stock | — | — | (6,592 | ) | ||||||||||||||
Total issued | (25,058,359 | ) | (3,187,490 | ) | (28,245,849 | ) | ||||||||||||
Balance, December 31, 2012 | 632,636,970 | |||||||||||||||||
Repurchases | 77,564,013 | |||||||||||||||||
Shares used for: | ||||||||||||||||||
Stock options/RSUs | (45,507,711 | ) | (5,741,981 | ) | ||||||||||||||
Stock applied to taxes | — | 1,461,422 | ||||||||||||||||
ESPP | (2,386,834 | ) | — | |||||||||||||||
Director deferred stock | — | — | (12,909 | ) | ||||||||||||||
Total issued | (47,894,545 | ) | (4,280,559 | ) | (52,175,104 | ) | ||||||||||||
Balance, December 31, 2013 | 658,012,970 | |||||||||||||||||
Repurchases | 61,665,209 | |||||||||||||||||
Shares used for: | ||||||||||||||||||
Stock options/RSUs | (19,503,382 | ) | (5,609,627 | ) | ||||||||||||||
Stock applied to exercises or taxes | 6,618 | 1,408,701 | ||||||||||||||||
ESPP | (1,784,184 | ) | — | |||||||||||||||
Director deferred stock | — | — | (7,178 | ) | ||||||||||||||
Total issued | (21,280,948 | ) | (4,200,926 | ) | (25,481,874 | ) | ||||||||||||
Balance, December 31, 2014 | 694,189,127 | |||||||||||||||||
(a) Beginning in 2013, only treasury shares were issued. | ||||||||||||||||||
Schedule of shares reserved for issuance and available for future grant | Shares available for future grants and reserved for issuance are summarized below: | |||||||||||||||||
31-Dec-14 | ||||||||||||||||||
Shares | Long-Term Incentive | Employee Stock | Total | |||||||||||||||
and Director | Purchase Plan | |||||||||||||||||
Compensation Plans | ||||||||||||||||||
Reserved for issuance (a) | 121,127,656 | 39,565,038 | 160,692,694 | |||||||||||||||
Shares to be issued upon exercise of outstanding options and RSUs (a) | (75,086,983 | ) | (374,703 | ) | (75,461,686 | ) | ||||||||||||
Available for future grants | 46,040,673 | 39,190,335 | 85,231,008 | |||||||||||||||
(a) Includes 135,722 shares credited to directors’ deferred stock accounts that settle in shares of TI common stock. These shares are not included as grants outstanding at December 31, 2014. | ||||||||||||||||||
Schedule of cash proceeds received from share-based payment awards | The effects on cash flows were as follows: | |||||||||||||||||
For Years Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Proceeds from common stock transactions | $ | 616 | $ | 1,314 | $ | 523 | ||||||||||||
Tax benefit realized from stock options exercised | 218 | 227 | 133 | |||||||||||||||
Income_taxes_Tables
Income taxes (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Income before income taxes | Income before Income Taxes | ||||||||||||||||
U.S. | Non-U.S. | Total | |||||||||||||||
2014 | $ | 2,684 | $ | 1,190 | $ | 3,874 | |||||||||||
2013 | 1,507 | 1,247 | 2,754 | ||||||||||||||
2012 | 319 | 1,616 | 1,935 | ||||||||||||||
Provision (benefit) for income taxes | Provision (Benefit) for Income Taxes | ||||||||||||||||
U.S. Federal | Non-U.S. | U.S. State | Total | ||||||||||||||
2014 | |||||||||||||||||
Current | $ | 911 | $ | 194 | $ | 9 | $ | 1,114 | |||||||||
Deferred | (73 | ) | 11 | 1 | (61 | ) | |||||||||||
Total | $ | 838 | $ | 205 | $ | 10 | $ | 1,053 | |||||||||
2013 | |||||||||||||||||
Current | $ | 291 | $ | 247 | $ | 4 | $ | 542 | |||||||||
Deferred | 17 | 33 | — | 50 | |||||||||||||
Total | $ | 308 | $ | 280 | $ | 4 | $ | 592 | |||||||||
2012 | |||||||||||||||||
Current | $ | (108 | ) | $ | 156 | $ | (2 | ) | $ | 46 | |||||||
Deferred | 65 | 65 | — | 130 | |||||||||||||
Total | $ | (43 | ) | $ | 221 | $ | (2 | ) | $ | 176 | |||||||
Principal reconciling items from income tax computed at statutory federal rate | Principal reconciling items from income tax computed at the statutory federal rate follow: | ||||||||||||||||
For Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Computed tax at statutory rate | $ | 1,356 | $ | 964 | $ | 677 | |||||||||||
Non-U.S. effective tax rates | (212 | ) | (156 | ) | (345 | ) | |||||||||||
U.S. R&D tax credit | (59 | ) | (129 | ) | — | ||||||||||||
U.S. tax benefit for manufacturing | (51 | ) | (66 | ) | (158 | ) | |||||||||||
Impact of changes to uncertain tax positions | 3 | (14 | ) | (88 | ) | ||||||||||||
Non-deductible expenses | 6 | 13 | 42 | ||||||||||||||
Other | 10 | (20 | ) | 48 | |||||||||||||
Total provision for income taxes | $ | 1,053 | $ | 592 | $ | 176 | |||||||||||
Primary components of deferred income tax assets and liabilities | The primary components of deferred income tax assets and liabilities were as follows: | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Deferred income tax assets: | |||||||||||||||||
Deferred loss and tax credit carryforwards | $ | 289 | $ | 345 | |||||||||||||
Accrued expenses | 248 | 265 | |||||||||||||||
Stock-based compensation | 238 | 262 | |||||||||||||||
Inventories and related reserves | 157 | 162 | |||||||||||||||
Retirement costs for defined benefit and retiree health care | 96 | 101 | |||||||||||||||
Other | 122 | 148 | |||||||||||||||
1,150 | 1,283 | ||||||||||||||||
Valuation allowance | (195 | ) | (219 | ) | |||||||||||||
955 | 1,064 | ||||||||||||||||
Deferred income tax liabilities: | |||||||||||||||||
Acquisition-related intangibles and fair-value adjustments | (688 | ) | (804 | ) | |||||||||||||
International earnings | (104 | ) | (121 | ) | |||||||||||||
Property, plant and equipment | (10 | ) | (57 | ) | |||||||||||||
Other | (37 | ) | (31 | ) | |||||||||||||
(839 | ) | (1,013 | ) | ||||||||||||||
Net deferred income tax asset | $ | 116 | $ | 51 | |||||||||||||
Deferred income tax assets and liabilities presentation on the Balance sheet | The deferred income tax assets and liabilities based on tax jurisdictions are presented on the Consolidated Balance Sheets as follows: | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Current deferred income tax assets | $ | 347 | $ | 393 | |||||||||||||
Noncurrent deferred income tax assets | 172 | 207 | |||||||||||||||
Current deferred income tax liabilities | (4 | ) | (1 | ) | |||||||||||||
Noncurrent deferred income tax liabilities | (399 | ) | (548 | ) | |||||||||||||
Net deferred income tax asset | $ | 116 | $ | 51 | |||||||||||||
Summary of income tax contingencies | The changes in the total amounts of uncertain tax positions are summarized as follows: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Balance, January 1 | $ | 91 | $ | 184 | $ | 210 | |||||||||||
Additions based on tax positions related to the current year | 10 | 7 | 12 | ||||||||||||||
Additions for tax positions of prior years | 52 | 19 | 45 | ||||||||||||||
Reductions for tax positions of prior years | (9 | ) | (10 | ) | (92 | ) | |||||||||||
Settlements with tax authorities | (36 | ) | (96 | ) | 39 | ||||||||||||
Expiration of the statute of limitations for assessing taxes | — | (13 | ) | (30 | ) | ||||||||||||
Balance, December 31 | $ | 108 | $ | 91 | $ | 184 | |||||||||||
Interest income (expense) recognized in the year ended December 31 | $ | 6 | $ | (10 | ) | $ | 32 | ||||||||||
Interest receivable (payable) as of December 31 | $ | — | $ | (5 | ) | $ | 8 | ||||||||||
Financial_instruments_and_risk1
Financial instruments and risk concentration (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||
Details on accounts receivable allowances | Details of these accounts receivable allowances are as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, January 1 | $ | 22 | $ | 31 | $ | 19 | |||||||
Additions charged (credited) to operating results | (9 | ) | (9 | ) | 12 | ||||||||
Recoveries and write-offs, net | (1 | ) | — | — | |||||||||
Balance, December 31 | $ | 12 | $ | 22 | $ | 31 | |||||||
Valuation_of_debt_and_equity_i1
Valuation of debt and equity investments and certain liabilities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||
Investments | Details of our investments are as follows: | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Cash and Cash | Short-Term | Long-Term | Cash and Cash | Short-Term | Long-Term | ||||||||||||||||||||
Equivalents | Investments | Investments | Equivalents | Investments | Investments | ||||||||||||||||||||
Measured at fair value: | |||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||
Money market funds | $ | 522 | $ | — | $ | — | $ | 500 | $ | — | $ | — | |||||||||||||
Corporate obligations | 97 | 390 | — | 123 | 217 | — | |||||||||||||||||||
U.S. Government agency and Treasury securities | 365 | 1,952 | — | 787 | 1,985 | — | |||||||||||||||||||
Trading securities | |||||||||||||||||||||||||
Mutual funds | — | — | 185 | — | — | 179 | |||||||||||||||||||
Total | 984 | 2,342 | 185 | 1,410 | 2,202 | 179 | |||||||||||||||||||
Other measurement basis: | |||||||||||||||||||||||||
Equity-method investments | — | — | 27 | — | — | 24 | |||||||||||||||||||
Cost-method investments | — | — | 12 | — | — | 13 | |||||||||||||||||||
Cash on hand | 215 | — | — | 217 | — | — | |||||||||||||||||||
Total | $ | 1,199 | $ | 2,342 | $ | 224 | $ | 1,627 | $ | 2,202 | $ | 216 | |||||||||||||
Aggregate maturities of investments in debt securities classified as available-for-sale | The following table presents the aggregate maturities of investments in debt securities classified as available for sale at December 31, 2014: | ||||||||||||||||||||||||
Due | Fair Value | ||||||||||||||||||||||||
One year or less | $ | 3,121 | |||||||||||||||||||||||
One to two years | 205 | ||||||||||||||||||||||||
Assets and liabilities accounted for at fair value | The following are our assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2014 and 2013. We had no Level 3 assets or liabilities as of December 31, 2014 and 2013. These tables do not include cash on hand, assets held by our postretirement plans, or assets and liabilities that are measured at historical cost or any basis other than fair value. | ||||||||||||||||||||||||
Fair Value | Level 1 | Level 2 | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Money market funds | $ | 522 | $ | 522 | $ | — | |||||||||||||||||||
Corporate obligations | 487 | — | 487 | ||||||||||||||||||||||
U.S. Government agency and Treasury securities | 2,317 | 1,762 | 555 | ||||||||||||||||||||||
Mutual funds | 185 | 185 | — | ||||||||||||||||||||||
Total assets | $ | 3,511 | $ | 2,469 | $ | 1,042 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Deferred compensation | $ | 202 | $ | 202 | $ | — | |||||||||||||||||||
Total liabilities | $ | 202 | $ | 202 | $ | — | |||||||||||||||||||
Fair Value | Level 1 | Level 2 | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Money market funds | $ | 500 | $ | 500 | $ | — | |||||||||||||||||||
Corporate obligations | 340 | — | 340 | ||||||||||||||||||||||
U.S. Government agency and Treasury securities | 2,772 | 2,107 | 665 | ||||||||||||||||||||||
Mutual funds | 179 | 179 | — | ||||||||||||||||||||||
Total assets | $ | 3,791 | $ | 2,786 | $ | 1,005 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Deferred compensation | $ | 197 | $ | 197 | $ | — | |||||||||||||||||||
Total liabilities | $ | 197 | $ | 197 | $ | — | |||||||||||||||||||
Goodwill_and_acquisitionrelate1
Goodwill and acquisition-related intangibles (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||
Schedule of goodwill | The following table summarizes goodwill, net, by segment for the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||
Analog | $ | 4,158 | |||||||||||||||||||||||||
Embedded Processing | 172 | ||||||||||||||||||||||||||
Other | 32 | ||||||||||||||||||||||||||
Total | $ | 4,362 | |||||||||||||||||||||||||
Schedule of acquisition-related intangible assets | The components of acquisition-related intangible assets as of December 31, 2014 and 2013, are as follows: | ||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
Acquisition-Related Intangibles | Amortization | Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Period | Carrying | Amortization | Carrying | Amortization | |||||||||||||||||||||||
(Years) | Amount | Amount | |||||||||||||||||||||||||
Developed technology | 10-May | $ | 2,135 | $ | 714 | $ | 1,421 | $ | 2,157 | $ | 526 | $ | 1,631 | ||||||||||||||
Customer relationships | 8 | 810 | 330 | 480 | 821 | 239 | 582 | ||||||||||||||||||||
Other intangibles | 5 | 3 | 2 | 1 | 5 | 3 | 2 | ||||||||||||||||||||
In-process R&D | n/a | — | n/a | — | 8 | n/a | 8 | ||||||||||||||||||||
Total | $ | 2,948 | $ | 1,046 | $ | 1,902 | $ | 2,991 | $ | 768 | $ | 2,223 | |||||||||||||||
Estimated amortization of acquisition-related finite lived intangibles for future years | Future estimated amortization of acquisition-related intangibles for the years ended December 31 is as follows: | ||||||||||||||||||||||||||
Amortization of Acquisition-Related Intangibles | |||||||||||||||||||||||||||
2015 | $ | 319 | |||||||||||||||||||||||||
2016 | 319 | ||||||||||||||||||||||||||
2017 | 318 | ||||||||||||||||||||||||||
2018 | 318 | ||||||||||||||||||||||||||
2019 | 288 | ||||||||||||||||||||||||||
Thereafter | 340 | ||||||||||||||||||||||||||
Postretirement_benefit_plans_T
Postretirement benefit plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of expense related to defined benefit and retiree health care benefit plans | Expense related to defined benefit and retiree health care benefit plans was as follows: | ||||||||||||||||||||||||||||||||||||
U.S. Defined Benefit | U.S. Retiree Health Care | Non-U.S. Defined Benefit | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Service cost | $ | 21 | $ | 26 | $ | 24 | $ | 4 | $ | 5 | $ | 5 | $ | 39 | $ | 41 | $ | 45 | |||||||||||||||||||
Interest cost | 45 | 45 | 44 | 22 | 20 | 25 | 68 | 61 | 75 | ||||||||||||||||||||||||||||
Expected return on plan assets | (42 | ) | (48 | ) | (50 | ) | (20 | ) | (24 | ) | (23 | ) | (80 | ) | (67 | ) | (78 | ) | |||||||||||||||||||
Amortization of prior service cost (credit) | — | 1 | 1 | 4 | 4 | 3 | (2 | ) | (3 | ) | (4 | ) | |||||||||||||||||||||||||
Recognized net actuarial loss | 26 | 21 | 16 | 7 | 11 | 13 | 24 | 31 | 41 | ||||||||||||||||||||||||||||
Net periodic benefit costs | 50 | 45 | 35 | 17 | 16 | 23 | 49 | 63 | 79 | ||||||||||||||||||||||||||||
Settlement losses (a) (b) | 5 | 41 | — | — | — | — | 1 | 4 | 193 | ||||||||||||||||||||||||||||
Curtailment gain | — | — | — | — | — | (1 | ) | (2 | ) | (7 | ) | — | |||||||||||||||||||||||||
Special termination benefit gains (b) | — | — | (1 | ) | — | — | — | — | — | (337 | ) | ||||||||||||||||||||||||||
Total, including other postretirement losses (gains) | $ | 55 | $ | 86 | $ | 34 | $ | 17 | $ | 16 | $ | 22 | $ | 48 | $ | 60 | $ | (65 | ) | ||||||||||||||||||
(a) Includes non-restructuring and restructuring-related settlement losses. | |||||||||||||||||||||||||||||||||||||
(b) Transfer of Japan substitutional pension in 2012: In Japan, we maintain employee pension fund plans (EPFs) pursuant to the Japanese Welfare Pension Insurance Law (JWPIL). An EPF consists of two portions: a substitutional portion based on JWPIL-determined minimum old-age pension benefits similar to Social Security benefits in the United States and a corporate portion established at the discretion of each employer. Employers and employees are exempt from contributing to the Japanese Pension Insurance (JPI) if the substitutional portion is funded by an EPF. | |||||||||||||||||||||||||||||||||||||
The JWPIL was amended to permit each EPF to separate the substitutional portion and transfer those obligations and related assets to the government of Japan. After such a transfer, the employer is required to contribute periodically to JPI, and the government of Japan is responsible for future benefit payments relating to the substitutional portion. | |||||||||||||||||||||||||||||||||||||
During the third quarter of 2012, our EPF received final approval for such a separation and transferred the obligations and assets of its substitutional portion to the government of Japan. On a pre-tax basis, this resulted in a net gain of $144 million recorded in Restructuring charges/other on our Consolidated Statements of Income and included in Other, as shown in Note 4. This net gain of $144 million consisted of two parts - a gain of $337 million, representing the difference between the fair values of the obligations settled of $533 million and the assets transferred from the pension trust to the government of Japan of $196 million, offset by a settlement loss of $193 million related to the recognition of previously unrecognized actuarial losses included in AOCI. | |||||||||||||||||||||||||||||||||||||
Schedule of changes in the benefit obligations and plan assets for the defined benefit and retiree health care benefit plans | Changes in the benefit obligations and plan assets for the defined benefit and retiree health care benefit plans were as follows: | ||||||||||||||||||||||||||||||||||||
U.S. Defined Benefit | U.S. Retiree | Non-U.S. | |||||||||||||||||||||||||||||||||||
Health Care | Defined Benefit | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||
Change in plan benefit obligation: | |||||||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 955 | $ | 1,098 | $ | 472 | $ | 509 | $ | 2,276 | $ | 2,414 | |||||||||||||||||||||||||
Service cost | 21 | 26 | 4 | 5 | 39 | 41 | |||||||||||||||||||||||||||||||
Interest cost | 45 | 45 | 22 | 20 | 68 | 61 | |||||||||||||||||||||||||||||||
Participant contributions | — | — | 19 | 18 | 5 | 1 | |||||||||||||||||||||||||||||||
Benefits paid | (66 | ) | (9 | ) | (45 | ) | (47 | ) | (84 | ) | (81 | ) | |||||||||||||||||||||||||
Medicare subsidy | — | — | 4 | 3 | — | — | |||||||||||||||||||||||||||||||
Actuarial loss (gain) | 133 | (27 | ) | 37 | (36 | ) | 275 | 96 | |||||||||||||||||||||||||||||
Settlements | (12 | ) | (178 | ) | — | — | (7 | ) | (30 | ) | |||||||||||||||||||||||||||
Curtailments | — | — | — | — | (11 | ) | (28 | ) | |||||||||||||||||||||||||||||
Effects of exchange rate changes | — | — | — | — | (245 | ) | (237 | ) | |||||||||||||||||||||||||||||
Other | — | — | — | — | — | 39 | |||||||||||||||||||||||||||||||
Benefit obligation at end of year (BO) | $ | 1,076 | $ | 955 | $ | 513 | $ | 472 | $ | 2,316 | $ | 2,276 | |||||||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 941 | $ | 1,071 | $ | 485 | $ | 517 | $ | 2,179 | $ | 2,218 | |||||||||||||||||||||||||
Actual return on plan assets | 132 | 1 | 24 | 41 | 295 | 201 | |||||||||||||||||||||||||||||||
Employer contributions (funding of qualified plans) | 75 | 43 | 10 | — | 64 | 62 | |||||||||||||||||||||||||||||||
Employer contributions (payments for non-qualified plans) | 12 | 13 | — | — | — | — | |||||||||||||||||||||||||||||||
Participant contributions | — | — | 19 | 18 | 5 | 1 | |||||||||||||||||||||||||||||||
Benefits paid | (66 | ) | (9 | ) | (45 | ) | (45 | ) | (84 | ) | (81 | ) | |||||||||||||||||||||||||
Medicare subsidy | — | — | 4 | — | — | — | |||||||||||||||||||||||||||||||
Settlements | (12 | ) | (178 | ) | — | — | (7 | ) | (30 | ) | |||||||||||||||||||||||||||
Effects of exchange rate changes | — | — | — | — | (239 | ) | (232 | ) | |||||||||||||||||||||||||||||
Other | — | — | — | (46 | ) | — | 40 | ||||||||||||||||||||||||||||||
Fair value of plan assets at end of year (FVPA) | $ | 1,082 | $ | 941 | $ | 497 | $ | 485 | $ | 2,213 | $ | 2,179 | |||||||||||||||||||||||||
Funded status (FVPA – BO) at end of year | $ | 6 | $ | (14 | ) | $ | (16 | ) | $ | 13 | $ | (103 | ) | $ | (97 | ) | |||||||||||||||||||||
Schedule of amounts recognized in balance sheet | Amounts recognized on the Consolidated Balance Sheets as of December 31, 2014, were as follows: | ||||||||||||||||||||||||||||||||||||
U.S. Defined | U.S. Retiree | Non-U.S. | Total | ||||||||||||||||||||||||||||||||||
Benefit | Health Care | Defined Benefit | |||||||||||||||||||||||||||||||||||
Overfunded retirement plans | $ | 72 | $ | — | $ | 55 | $ | 127 | |||||||||||||||||||||||||||||
Accrued expenses and other liabilities | (9 | ) | — | (6 | ) | (15 | ) | ||||||||||||||||||||||||||||||
Underfunded retirement plans | (57 | ) | (16 | ) | (152 | ) | (225 | ) | |||||||||||||||||||||||||||||
Funded status (FVPA – BO) at end of year | $ | 6 | $ | (16 | ) | $ | (103 | ) | $ | (113 | ) | ||||||||||||||||||||||||||
Amounts recognized on the Consolidated Balance Sheets as of December 31, 2013, were as follows: | |||||||||||||||||||||||||||||||||||||
U.S. Defined | U.S. Retiree | Non-U.S. | Total | ||||||||||||||||||||||||||||||||||
Benefit | Health Care | Defined Benefit | |||||||||||||||||||||||||||||||||||
Overfunded retirement plans | $ | 44 | $ | 16 | $ | 70 | $ | 130 | |||||||||||||||||||||||||||||
Accrued expenses and other liabilities | (7 | ) | — | (5 | ) | (12 | ) | ||||||||||||||||||||||||||||||
Underfunded retirement plans | (51 | ) | (3 | ) | (162 | ) | (216 | ) | |||||||||||||||||||||||||||||
Funded status (FVPA – BO) at end of year | $ | (14 | ) | $ | 13 | $ | (97 | ) | $ | (98 | ) | ||||||||||||||||||||||||||
Schedule of amounts recognized in other comprehensive income (loss) | The amounts recorded in AOCI for the years ended December 31, 2014 and 2013, are detailed below by plan type: | ||||||||||||||||||||||||||||||||||||
U.S. Defined Benefit | U.S. Retiree | Non-U.S. | Total | ||||||||||||||||||||||||||||||||||
Health Care | Defined Benefit | ||||||||||||||||||||||||||||||||||||
Net | Prior | Net | Prior | Net | Prior | Net | Prior | ||||||||||||||||||||||||||||||
Actuarial | Service | Actuarial | Service | Actuarial | Service | Actuarial | Service | ||||||||||||||||||||||||||||||
Loss | Credit | Loss | Cost | Loss | Credit | Loss | Credit | ||||||||||||||||||||||||||||||
AOCI balance, net of taxes, December 31, 2013 | $ | 149 | $ | (2 | ) | $ | 71 | $ | 10 | $ | 305 | $ | (9 | ) | $ | 525 | $ | (1 | ) | ||||||||||||||||||
Changes in AOCI by category | |||||||||||||||||||||||||||||||||||||
Adjustments | 37 | — | 29 | — | 5 | 1 | 71 | 1 | |||||||||||||||||||||||||||||
Recognized within Net income | (31 | ) | 3 | (7 | ) | (3 | ) | (25 | ) | — | (63 | ) | — | ||||||||||||||||||||||||
Tax effect | (2 | ) | (1 | ) | (8 | ) | 1 | 6 | — | (4 | ) | — | |||||||||||||||||||||||||
Total change to AOCI | 4 | 2 | 14 | (2 | ) | (14 | ) | 1 | 4 | 1 | |||||||||||||||||||||||||||
AOCI balance, net of taxes, December 31, 2014 | $ | 153 | $ | — | $ | 85 | $ | 8 | $ | 291 | $ | (8 | ) | $ | 529 | $ | — | ||||||||||||||||||||
Schedule of allocation of plan assets | Weighted average asset allocations as of December 31, are as follows: | ||||||||||||||||||||||||||||||||||||
U.S. Defined | U.S. Retiree | Non-U.S. Defined | |||||||||||||||||||||||||||||||||||
Benefit | Health Care | Benefit | |||||||||||||||||||||||||||||||||||
Asset Category | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Fixed income securities and cash equivalents | 65% | 65% | 49% | 49% | 73% | 70% | |||||||||||||||||||||||||||||||
Equity securities | 35% | 35% | 51% | 51% | 27% | 30% | |||||||||||||||||||||||||||||||
The table below shows target allocation ranges for the plans that hold a substantial majority of the defined benefit assets. | |||||||||||||||||||||||||||||||||||||
Asset Category | U.S. Defined | U.S. Retiree | Non-U.S. Defined | ||||||||||||||||||||||||||||||||||
Benefit | Health Care | Benefit | |||||||||||||||||||||||||||||||||||
Fixed income securities and cash equivalents | 65% | 50% | 60% - 100% | ||||||||||||||||||||||||||||||||||
Equity securities | 35% | 50% | 0% - 40% | ||||||||||||||||||||||||||||||||||
The tables below set forth the fair value of our plan assets as of December 31, 2014 and 2013, using the same three-level hierarchy of fair-value inputs described in Note 9. | |||||||||||||||||||||||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Assets of U.S. defined benefit plan | |||||||||||||||||||||||||||||||||||||
Fixed income securities and cash equivalents | $ | 707 | $ | — | $ | 707 | $ | — | |||||||||||||||||||||||||||||
Equity securities | 375 | — | 375 | — | |||||||||||||||||||||||||||||||||
Other | — | — | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 1,082 | $ | — | $ | 1,082 | $ | — | |||||||||||||||||||||||||||||
Assets of U.S. retiree health care plan | |||||||||||||||||||||||||||||||||||||
Fixed income securities and cash equivalents | $ | 243 | $ | 200 | $ | 43 | $ | — | |||||||||||||||||||||||||||||
Equity securities | 254 | — | 254 | — | |||||||||||||||||||||||||||||||||
Total | $ | 497 | $ | 200 | $ | 297 | $ | — | |||||||||||||||||||||||||||||
Assets of non-U.S. defined benefit plans | |||||||||||||||||||||||||||||||||||||
Fixed income securities and cash equivalents | $ | 1,608 | $ | 430 | $ | 1,178 | $ | — | |||||||||||||||||||||||||||||
Equity securities | 600 | 6 | 594 | — | |||||||||||||||||||||||||||||||||
Other | 5 | — | — | 5 | |||||||||||||||||||||||||||||||||
Total | $ | 2,213 | $ | 436 | $ | 1,772 | $ | 5 | |||||||||||||||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Assets of U.S. defined benefit plan | |||||||||||||||||||||||||||||||||||||
Fixed income securities and cash equivalents | $ | 607 | $ | — | $ | 607 | $ | — | |||||||||||||||||||||||||||||
Equity securities | 297 | — | 297 | — | |||||||||||||||||||||||||||||||||
Other | 37 | — | — | 37 | |||||||||||||||||||||||||||||||||
Total | $ | 941 | $ | — | $ | 904 | $ | 37 | |||||||||||||||||||||||||||||
Assets of U.S. retiree health care plan | |||||||||||||||||||||||||||||||||||||
Fixed income securities and cash equivalents | $ | 238 | $ | 193 | $ | 45 | $ | — | |||||||||||||||||||||||||||||
Equity securities | 247 | — | 247 | — | |||||||||||||||||||||||||||||||||
Total | $ | 485 | $ | 193 | $ | 292 | $ | — | |||||||||||||||||||||||||||||
Assets of non-U.S. defined benefit plans | |||||||||||||||||||||||||||||||||||||
Fixed income securities and cash equivalents | $ | 1,521 | $ | 397 | $ | 1,124 | $ | — | |||||||||||||||||||||||||||||
Equity securities | 650 | 6 | 644 | — | |||||||||||||||||||||||||||||||||
Other | 8 | — | — | 8 | |||||||||||||||||||||||||||||||||
Total | $ | 2,179 | $ | 403 | $ | 1,768 | $ | 8 | |||||||||||||||||||||||||||||
Schedule of effect of significant unobservable inputs, changes in plan assets | The following table summarizes the change in the fair values for Level 3 plan assets for the years ending December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||||||
Level 3 Plan Assets | |||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | ||||||||||||||||||||||||||||||||||||
Benefit | Benefit | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 37 | $ | 19 | |||||||||||||||||||||||||||||||||
Redemptions | — | (10 | ) | ||||||||||||||||||||||||||||||||||
Unrealized loss | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2013 | 37 | 8 | |||||||||||||||||||||||||||||||||||
Redemptions and sales | (45 | ) | (2 | ) | |||||||||||||||||||||||||||||||||
Unrealized gain (loss) | 8 | (1 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2014 | $ | — | $ | 5 | |||||||||||||||||||||||||||||||||
Schedule of assumptions used | Assumptions and investment policies | ||||||||||||||||||||||||||||||||||||
Defined Benefit | U.S. Retiree | ||||||||||||||||||||||||||||||||||||
Health Care | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Weighted average assumptions used to determine benefit obligations: | |||||||||||||||||||||||||||||||||||||
U.S. discount rate | 4.23% | 5.11% | 4.07% | 4.83% | |||||||||||||||||||||||||||||||||
Non-U.S. discount rate | 2.34% | 3.01% | |||||||||||||||||||||||||||||||||||
U.S. average long-term pay progression | 3.30% | 3.50% | |||||||||||||||||||||||||||||||||||
Non-U.S. average long-term pay progression | 3.27% | 3.11% | |||||||||||||||||||||||||||||||||||
Weighted average assumptions used to determine net periodic benefit cost: | |||||||||||||||||||||||||||||||||||||
U.S. discount rate | 5.11% | 4.59% | 4.83% | 3.94% | |||||||||||||||||||||||||||||||||
Non-U.S. discount rate | 3.01% | 2.74% | |||||||||||||||||||||||||||||||||||
U.S. long-term rate of return on plan assets | 5.25% | 5.25% | 4.50% | 4.75% | |||||||||||||||||||||||||||||||||
Non-U.S. long-term rate of return on plan assets | 3.75% | 3.34% | |||||||||||||||||||||||||||||||||||
U.S. average long-term pay progression | 3.50% | 3.60% | |||||||||||||||||||||||||||||||||||
Non-U.S. average long-term pay progression | 3.11% | 3.01% | |||||||||||||||||||||||||||||||||||
Schedule of expected benefit payments | The following table shows the benefits we expect to pay to participants from the plans in the next 10 years and assumes that retirement eligible participants take their benefits immediately. Almost all of the payments will be made from plan assets and not from company assets. | ||||||||||||||||||||||||||||||||||||
U.S. Defined | U.S. Retiree | Medicare | Non-U.S. Defined | ||||||||||||||||||||||||||||||||||
Benefit | Health Care | Subsidy | Benefit | ||||||||||||||||||||||||||||||||||
2015 | $ | 217 | $ | 36 | $ | (4 | ) | $ | 76 | ||||||||||||||||||||||||||||
2016 | 95 | 37 | (4 | ) | 78 | ||||||||||||||||||||||||||||||||
2017 | 91 | 39 | (4 | ) | 82 | ||||||||||||||||||||||||||||||||
2018 | 93 | 40 | (5 | ) | 85 | ||||||||||||||||||||||||||||||||
2019 | 93 | 40 | (5 | ) | 89 | ||||||||||||||||||||||||||||||||
2020 - 2024 | 435 | 194 | (9 | ) | 501 | ||||||||||||||||||||||||||||||||
Schedule of effect of one-percentage-point change in assumed health care cost trend rates | Assumed health care cost trend rates for the U.S. retiree health care benefit plan at December 31 are as follows: | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||
Assumed health care cost trend rate for next year | 7.00% | 7.00% | |||||||||||||||||||||||||||||||||||
Ultimate trend rate | 5.00% | 5.00% | |||||||||||||||||||||||||||||||||||
Year in which ultimate trend rate is reached | 2023 | 2022 |
Debt_and_lines_of_credit_Table
Debt and lines of credit (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of long-term debt Instruments | Long-term debt outstanding as of December 31, 2014 and 2013 is as follows: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Notes due 2014 at 1.375% | $ | — | $ | 1,000 | ||||
Notes due 2015 at 3.95% (assumed with National acquisition) | 250 | 250 | ||||||
Notes due 2015 at 0.45% | 750 | 750 | ||||||
Notes due 2016 at 2.375% | 1,000 | 1,000 | ||||||
Notes due 2017 at 6.60% (assumed with National acquisition) | 375 | 375 | ||||||
Notes due 2017 at 0.875% | 250 | — | ||||||
Notes due 2018 at 1.00% | 500 | 500 | ||||||
Notes due 2019 at 1.65% | 750 | 750 | ||||||
Notes due 2021 at 2.75% | 250 | — | ||||||
Notes due 2023 at 2.25% | 500 | 500 | ||||||
4,625 | 5,125 | |||||||
Net unamortized premium | 17 | 33 | ||||||
Current portion of long-term debt | (1,001 | ) | (1,000 | ) | ||||
Long-term debt | $ | 3,641 | $ | 4,158 | ||||
Commitments_and_contingencies_
Commitments and contingencies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Minimum payments under non-cancellable operating leases capitalized software licenses and purchase commitments | As of December 31, 2014, we had committed to make the following minimum payments under our non-cancellable operating leases, capitalized software licenses and purchase commitments: | ||||||||||||
Operating | Capitalized | Purchase | |||||||||||
Leases | Software | Commitments | |||||||||||
Licenses | |||||||||||||
2015 | $ | 87 | $ | 39 | $ | 96 | |||||||
2016 | 66 | 27 | 52 | ||||||||||
2017 | 45 | — | 35 | ||||||||||
2018 | 33 | — | 14 | ||||||||||
2019 | 21 | — | 10 | ||||||||||
Thereafter | 80 | — | 2 | ||||||||||
Supplemental_financial_informa1
Supplemental financial information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplemental Financial Information [Abstract] | |||||||||||||
Other income (expense), net | Other Income (Expense), Net | ||||||||||||
For Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest income | $ | 7 | $ | 10 | $ | 8 | |||||||
Tax interest income (expense) | 6 | (10 | ) | 32 | |||||||||
Net gains on investments | 5 | 18 | 18 | ||||||||||
Other (a) | 3 | (1 | ) | (11 | ) | ||||||||
Total | $ | 21 | $ | 17 | $ | 47 | |||||||
(a) Includes lease income of approximately $15 million per year, primarily from the purchaser of a former business. As of December 31, 2014, the aggregate amount of non-cancellable future lease payments to be received from these leases is $51 million. These leases contain renewal options. Other also includes miscellaneous non-operational items such as losses related to former businesses, including settlements in 2012; gains and losses from currency exchange rate changes; and gains and losses from our derivative financial instruments, primarily forward foreign currency exchange contracts. | |||||||||||||
Prepaid expenses and other current assets | Prepaid Expenses and Other Current Assets | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Prepaid taxes on intercompany inventory profits | $ | 693 | $ | 667 | |||||||||
Other prepaid expenses and current assets | 157 | 196 | |||||||||||
Total | $ | 850 | $ | 863 | |||||||||
Property, plant and equipment at cost | Property, Plant and Equipment at Cost | ||||||||||||
Depreciable Lives | December 31, | ||||||||||||
(Years) | 2014 | 2013 | |||||||||||
Land | n/a | $ | 137 | $ | 175 | ||||||||
Buildings and improvements | May-40 | 2,801 | 2,913 | ||||||||||
Machinery and equipment | 10-Mar | 3,328 | 3,468 | ||||||||||
Total | $ | 6,266 | $ | 6,556 | |||||||||
Accrued expenses and other liabilities | Accrued Expenses and Other Liabilities | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Customer incentive programs and allowances | $ | 101 | $ | 143 | |||||||||
Severance and related expenses | 60 | 158 | |||||||||||
Other | 337 | 350 | |||||||||||
Total | $ | 498 | $ | 651 | |||||||||
Accumulated other comprehensive income (loss), net of taxes | Accumulated Other Comprehensive Income (Loss), Net of Taxes | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Postretirement benefit plans: | |||||||||||||
Net actuarial loss | $ | (529 | ) | $ | (525 | ) | |||||||
Prior service credit | — | 1 | |||||||||||
Cash flow hedge derivative | (3 | ) | (4 | ) | |||||||||
Total | $ | (532 | ) | $ | (528 | ) | |||||||
Amounts reclassified out of AOCI to Net income, net of taxes | The table below details where on the Consolidated Statements of Income these transactions are recorded. | ||||||||||||
For Years Ended December 31, | Impact to Related Statement of Income Line | ||||||||||||
Details about AOCI Components | 2014 | 2013 | |||||||||||
Net actuarial gains (losses) of defined benefit plans: | |||||||||||||
Recognized net actuarial loss and Settlement losses (a) | $ | 63 | $ | 108 | Increase to Pension expense (b) | ||||||||
Tax effect | (21 | ) | (37 | ) | Decrease to Provision for income taxes | ||||||||
Recognized within Net income, net of taxes | $ | 42 | $ | 71 | Decrease to Net income | ||||||||
Prior service cost of defined benefit plans: | |||||||||||||
Amortization of prior service cost (credit) and Curtailment gain (a) | $ | — | $ | (5 | ) | Decrease to Pension expense (b) | |||||||
Tax effect | — | 2 | Increase to Provision for income taxes | ||||||||||
Recognized within Net income, net of taxes | $ | — | $ | (3 | ) | Increase to Net income | |||||||
Derivative instruments: | |||||||||||||
Amortization of treasury rate locks | $ | 2 | $ | 2 | Increase to Interest and debt expense | ||||||||
Tax effect | (1 | ) | (1 | ) | Decrease to Provision for income taxes | ||||||||
Recognized within Net income, net of taxes | $ | 1 | $ | 1 | Decrease to Net income | ||||||||
(a) Detailed in Note 11. | |||||||||||||
(b) Pension expense is included in COR, R&D, SG&A and Restructuring charges/other in the Consolidated Statements of Income. |
Quarterly_financial_data_unaud1
Quarterly financial data (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of quarterly financial data | |||||||||||||||||
Quarter | |||||||||||||||||
2014 | 1st | 2nd | 3rd | 4th | |||||||||||||
Revenue | $ | 2,983 | $ | 3,292 | $ | 3,501 | $ | 3,269 | |||||||||
Gross profit | 1,607 | 1,881 | 2,044 | 1,895 | |||||||||||||
Included in Operating profit: | |||||||||||||||||
Acquisition charges | 83 | 82 | 83 | 82 | |||||||||||||
Restructuring charges/other | (11 | ) | (4 | ) | (9 | ) | (27 | ) | |||||||||
Operating profit | 690 | 982 | 1,175 | 1,100 | |||||||||||||
Net income | 487 | 683 | 826 | 825 | |||||||||||||
Earnings per common share: | |||||||||||||||||
Basic earnings per common share | $ | 0.44 | $ | 0.63 | $ | 0.77 | $ | 0.78 | |||||||||
Diluted earnings per common share | 0.44 | 0.62 | 0.76 | 0.76 | |||||||||||||
Quarter | |||||||||||||||||
2013 | 1st | 2nd | 3rd | 4th | |||||||||||||
Revenue | $ | 2,885 | $ | 3,047 | $ | 3,244 | $ | 3,028 | |||||||||
Gross profit | 1,374 | 1,570 | 1,779 | 1,640 | |||||||||||||
Included in Operating profit: | |||||||||||||||||
Acquisition charges | 86 | 86 | 86 | 84 | |||||||||||||
Restructuring charges/other | 15 | (282 | ) | 16 | 62 | ||||||||||||
Operating profit | 395 | 906 | 844 | 687 | |||||||||||||
Net income | 362 | 660 | 629 | 511 | |||||||||||||
Earnings per common share: | |||||||||||||||||
Basic earnings per common share | $ | 0.32 | $ | 0.59 | $ | 0.56 | $ | 0.46 | |||||||||
Diluted earnings per common share | 0.32 | 0.58 | 0.56 | 0.46 | |||||||||||||
Description_of_business_includ2
Description of business, including segment and geographic area information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Reportable_Segments | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Number of reportable segments | 2 | |||||||||||||
Revenue | $3,269 | $3,501 | $3,292 | $2,983 | $3,028 | $3,244 | $3,047 | $2,885 | $13,045 | $12,205 | $12,825 | |||
Operating profit | 1,100 | 1,175 | 982 | 690 | 687 | 844 | 906 | 395 | 3,947 | 2,832 | 1,973 | |||
Property, plant and equipment, net | 2,840 | 3,399 | 2,840 | 3,399 | 3,912 | |||||||||
Analog | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenue | 8,104 | 7,194 | 6,998 | |||||||||||
Operating profit | 2,786 | 1,859 | 1,650 | |||||||||||
Embedded Processing | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenue | 2,740 | 2,450 | 2,257 | |||||||||||
Operating profit | 384 | 185 | 158 | |||||||||||
Other | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenue | 2,201 | 2,561 | 3,570 | |||||||||||
Operating profit | 777 | 788 | 165 | |||||||||||
United States | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenue | 1,625 | 1,666 | 1,596 | |||||||||||
Property, plant and equipment, net | 1,436 | 1,765 | 1,436 | 1,765 | 1,931 | |||||||||
Asia | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenue | 7,915 | [1] | 7,370 | [1] | 7,808 | [1] | ||||||||
Property, plant and equipment, net | 1,096 | 1,277 | 1,096 | 1,277 | 1,547 | |||||||||
Europe | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenue | 2,293 | 1,926 | 1,861 | |||||||||||
Property, plant and equipment, net | 162 | 196 | 162 | 196 | 241 | |||||||||
Japan | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenue | 1,032 | 1,072 | 1,357 | |||||||||||
Property, plant and equipment, net | 124 | 144 | 124 | 144 | 174 | |||||||||
Rest of world | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenue | 180 | 171 | 203 | |||||||||||
Property, plant and equipment, net | 22 | 17 | 22 | 17 | 19 | |||||||||
China (including Hong Kong) | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenue | $5,700 | $5,200 | $5,400 | |||||||||||
[1] | Revenue from products shipped into China, including Hong Kong, was $5.7 billion in 2014, $5.2 billion in 2013 and $5.4 billion in 2012. |
Basis_of_presentation_and_sign3
Basis of presentation and significant accounting policies and practices (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Percent of revenue from sales to distributors | 60.00% | ||
Percent of distributor revenue from sales of consigned inventory | 60.00% | ||
Advertising expense | $45 | $46 | $46 |
Maximum length to maturity of a security, from the investment date, where it is classified as cash and cash equivalent | 90 days | ||
Length to maturity from the investment date of a security where the length of time is too short to be classified as a short-term investment | 90 days | ||
Consigned inventory | $258 | $202 |
Basis_of_presentation_and_sign4
Basis of presentation and significant accounting policies and practices - Earnings per share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic EPS: | |||||||||||
Net income | $825 | $826 | $683 | $487 | $511 | $629 | $660 | $362 | $2,821 | $2,162 | $1,759 |
Income allocated to RSUs | -44 | -37 | -31 | ||||||||
Income allocated to common stock for basic EPS calculation | 2,777 | 2,125 | 1,728 | ||||||||
Weighted average number of shares outstanding, basic (in shares) | 1,065,000,000 | 1,098,000,000 | 1,132,000,000 | ||||||||
Basic earnings per common share | $0.78 | $0.77 | $0.63 | $0.44 | $0.46 | $0.56 | $0.59 | $0.32 | $2.61 | $1.94 | $1.53 |
Adjustment for dilutive shares: | |||||||||||
Stock-based compensation plans (in shares) | 15,000,000 | 15,000,000 | 14,000,000 | ||||||||
Diluted EPS: | |||||||||||
Net income | 825 | 826 | 683 | 487 | 511 | 629 | 660 | 362 | 2,821 | 2,162 | 1,759 |
Income allocated to RSUs | -43 | -36 | -31 | ||||||||
Income allocated to common stock for diluted EPS calculation | $2,778 | $2,126 | $1,728 | ||||||||
Weighted average number of shares outstanding, diluted (in shares) | 1,080,000,000 | 1,113,000,000 | 1,146,000,000 | ||||||||
Diluted earnings per common share | $0.76 | $0.76 | $0.62 | $0.44 | $0.46 | $0.56 | $0.58 | $0.32 | $2.57 | $1.91 | $1.51 |
Antidilutive securities excluded from computation of earnings per share, Amount (in shares) | 11,000,000 | 0 | 52,000,000 |
Acquisition_charges_Details
Acquisition charges (Details) (USD $) | 3 Months Ended | 12 Months Ended | 48 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||||||
Acquisition charges | $82 | $83 | $82 | $83 | $84 | $86 | $86 | $86 | $330 | $341 | $450 | |
National Semiconductor | ||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||||||
Acquisition-related charges | 330 | 341 | 471 | |||||||||
Number of jobs eliminated (in jobs) | 350 | |||||||||||
National Semiconductor | Amortization of intangible assets | ||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||||||
Acquisition charges | 319 | 323 | 325 | |||||||||
National Semiconductor | Stock-based compensation | ||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||||||
Acquisition charges | 11 | 11 | 17 | |||||||||
National Semiconductor | Retention bonuses | ||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||||||
Acquisition charges | 0 | 7 | 57 | |||||||||
National Semiconductor | Severance and other benefits | ||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||||||
Acquisition charges | 0 | 0 | 16 | |||||||||
National Semiconductor | Transaction and other costs | ||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||||||
Acquisition charges | 0 | 0 | 35 | |||||||||
National Semiconductor | As recorded in Acquisition charges | ||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||||||
Acquisition charges | 330 | 341 | 450 | |||||||||
National Semiconductor | As recorded in COR | ||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||||||
Acquisition-related charges | 0 | 0 | 21 | |||||||||
National Semiconductor | Acquisition Costs, Severance and other benefits | ||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||||||
Acquisition charges | 86 | |||||||||||
Payments against cumulative charges related to National | 84 | |||||||||||
National Semiconductor | Acquisition Costs, Severance and other benefits, Change of control | ||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||||||
Payments against cumulative charges related to National | $41 |
Restructuring_chargesother_Det
Restructuring charges/other (Details) (USD $) | 12 Months Ended | 15 Months Ended | 24 Months Ended | 26 Months Ended | 36 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | ||||
Jobs | ||||||||||
Restructuring and Related Cost [Line Items] | ||||||||||
Restructuring charges | $20,000,000 | [1] | $126,000,000 | [1] | $400,000,000 | [1] | ||||
Payments for severance costs | 124,000,000 | 292,000,000 | 46,000,000 | |||||||
Goodwill impairment loss | 0 | 0 | 90,000,000 | |||||||
Gains on sales of assets | 75,000,000 | 0 | 0 | |||||||
Gain on technology transfer | 0 | 315,000,000 | 0 | |||||||
Gain on transfer of Japan substitutional pension | 0 | 0 | 144,000,000 | |||||||
Semiconductor manufacturing facilities in Hiji, Japan, and Houston, Texas | ||||||||||
Restructuring and Related Cost [Line Items] | ||||||||||
Gains on sales of assets | 17,000,000 | |||||||||
Semiconductor manufacturing facility in Nice, France | ||||||||||
Restructuring and Related Cost [Line Items] | ||||||||||
Gains on sales of assets | 30,000,000 | |||||||||
Real estate in Santa Clara, California | ||||||||||
Restructuring and Related Cost [Line Items] | ||||||||||
Gains on sales of assets | 28,000,000 | |||||||||
2013 Actions | ||||||||||
Restructuring and Related Cost [Line Items] | ||||||||||
Expected number of positions eliminated | 1,100 | |||||||||
Restructuring charges | 26,000,000 | 49,000,000 | 0 | 75,000,000 | ||||||
Prior Actions | ||||||||||
Restructuring and Related Cost [Line Items] | ||||||||||
Restructuring charges | -6,000,000 | 77,000,000 | 400,000,000 | |||||||
Prior Actions | Semiconductor manufacturing facilities in Hiji, Japan, and Houston, Texas | ||||||||||
Restructuring and Related Cost [Line Items] | ||||||||||
Restructuring charges | 200,000,000 | |||||||||
Restructuring and related activities, Number of facilities closing | 2 | |||||||||
Former Reporting Segment Wireless | Prior Actions | ||||||||||
Restructuring and Related Cost [Line Items] | ||||||||||
Restructuring charges | 383,000,000 | |||||||||
Goodwill impairment loss | 90,000,000 | |||||||||
Employee Severance And Benefits Charges Reserves Member | 2013 Actions | ||||||||||
Restructuring and Related Cost [Line Items] | ||||||||||
Restructuring charges | 16,000,000 | [1] | 49,000,000 | [1] | 0 | [1] | ||||
Payments for severance costs | 43,000,000 | 0 | 0 | 43,000,000 | ||||||
Employee Severance And Benefits Charges Reserves Member | Prior Actions | ||||||||||
Restructuring and Related Cost [Line Items] | ||||||||||
Restructuring charges | -6,000,000 | [1] | 36,000,000 | [1] | 251,000,000 | [1] | ||||
Payments for severance costs | 73,000,000 | 266,000,000 | 23,000,000 | |||||||
Employee Severance And Benefits Charges Reserves Member | Prior Actions | Semiconductor manufacturing facilities in Hiji, Japan, and Houston, Texas | ||||||||||
Restructuring and Related Cost [Line Items] | ||||||||||
Payments for severance costs | 103,000,000 | |||||||||
Employee Severance And Benefits Charges Reserves Member | Former Reporting Segment Wireless | Prior Actions | ||||||||||
Restructuring and Related Cost [Line Items] | ||||||||||
Payments for severance costs | $247,000,000 | |||||||||
[1] | Includes changes in estimates. |
Restructuring_chargesother_Com
Restructuring charges/other - Components of restructuring charges (Details) (USD $) | 3 Months Ended | 12 Months Ended | 15 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Restructuring charges | $20 | [1] | $126 | [1] | $400 | [1] | |||||||||
Gains on sales of assets | -75 | 0 | 0 | ||||||||||||
Gain on technology transfer | 0 | -315 | 0 | ||||||||||||
Gain on transfer of Japan substitutional pension | 0 | 0 | -144 | ||||||||||||
Other | 4 | 0 | 8 | ||||||||||||
Restructuring charges/other | -27 | -9 | -4 | -11 | 62 | 16 | -282 | 15 | -51 | -189 | 264 | ||||
2013 Actions | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Severance and benefits cost | 16 | [1] | 49 | [1] | 0 | [1] | |||||||||
Other exit costs | 10 | 0 | 0 | ||||||||||||
Restructuring charges | 26 | 49 | 0 | 75 | |||||||||||
Prior Actions | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Severance and benefits cost | -6 | [1] | 36 | [1] | 251 | [1] | |||||||||
Other exit costs | -1 | [1] | 30 | [1] | 128 | [1] | |||||||||
Accelerated depreciation | 1 | 11 | 21 | ||||||||||||
Restructuring charges | ($6) | $77 | $400 | ||||||||||||
[1] | Includes changes in estimates. |
Restructuring_chargesother_Res
Restructuring charges/other - Restructuring reserve (Details) (USD $) | 12 Months Ended | 15 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | ||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning accrual | $161,000,000 | $349,000,000 | $116,000,000 | ||||
Restructuring charges | 20,000,000 | [1] | 126,000,000 | [1] | 400,000,000 | [1] | |
Non-cash items | -22,000,000 | [2] | -121,000,000 | [2] | |||
Payments | -124,000,000 | -292,000,000 | -46,000,000 | ||||
Remaining accrual | 57,000,000 | 161,000,000 | 349,000,000 | 57,000,000 | |||
2013 Actions | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring charges | 26,000,000 | 49,000,000 | 0 | 75,000,000 | |||
Prior Actions | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring charges | -6,000,000 | 77,000,000 | 400,000,000 | ||||
Severance and benefits cost | 2013 Actions | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning accrual | 49,000,000 | 0 | 0 | ||||
Restructuring charges | 16,000,000 | [1] | 49,000,000 | [1] | 0 | [1] | |
Non-cash items | 0 | [2] | 0 | [2] | |||
Payments | -43,000,000 | 0 | 0 | -43,000,000 | |||
Remaining accrual | 22,000,000 | 49,000,000 | 0 | 22,000,000 | |||
Severance and benefits cost | Prior Actions | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning accrual | 105,000,000 | 340,000,000 | 109,000,000 | ||||
Restructuring charges | -6,000,000 | [1] | 36,000,000 | [1] | 251,000,000 | [1] | |
Non-cash items | -5,000,000 | [2] | 3,000,000 | [2] | |||
Payments | -73,000,000 | -266,000,000 | -23,000,000 | ||||
Remaining accrual | 26,000,000 | 105,000,000 | 340,000,000 | 26,000,000 | |||
Other Charges | 2013 Actions | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning accrual | 0 | 0 | 0 | ||||
Restructuring charges | 10,000,000 | [1] | 0 | [1] | 0 | [1] | |
Non-cash items | 0 | [2] | 0 | [2] | |||
Payments | -1,000,000 | 0 | 0 | ||||
Remaining accrual | 9,000,000 | 0 | 0 | 9,000,000 | |||
Other Charges | Prior Actions | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning accrual | 7,000,000 | 9,000,000 | 7,000,000 | ||||
Restructuring charges | 0 | [1] | 41,000,000 | [1] | 149,000,000 | [1] | |
Non-cash items | -17,000,000 | [2] | -124,000,000 | [2] | |||
Payments | -7,000,000 | -26,000,000 | -23,000,000 | ||||
Remaining accrual | $0 | $7,000,000 | $9,000,000 | $0 | |||
[1] | Includes changes in estimates. | ||||||
[2] | Reflects charges for goodwill impairment, stock-based compensation, impacts of postretirement benefit plans and accelerated depreciation. |
Stockbased_compensation_Detail
Stock-based compensation (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 02, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Future compensation cost not yet recognized in the Statements of Income | 308,000,000 | |||
Future compensation costs to be recognized in 2015 | 168,000,000 | |||
Future compensation costs to be recognized in 2016 | 91,000,000 | |||
Future compensation costs to be recognized in 2017 | 44,000,000 | |||
Future compensation costs to be recognized in 2018 | 5,000,000 | |||
Remaining stock repurchase authorizations | 3,170,000,000 | |||
Employee Stock Option | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Award vesting period (in years) | 4 years | |||
Look back period to determine option life used in Black Scholes Merton pricing model | 10 years | |||
Restricted Stock Units (RSUs) | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Award vesting period (in years) | 4 years | |||
Long-term incentive and director compensation plans | Employee Stock Option | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Long-term incentive and director compensation plans option pricing (in percent) | 100.00% | |||
Term of the long term incentive stock options | 10 years | |||
Award vesting period (in years) | 4 years | |||
Aggregate intrinsic value of options exercised | 367,000,000 | 427,000,000 | 244,000,000 | |
Future compensation cost not yet recognized in the Statements of Income | 113,000,000 | |||
Weighted-average exercise price, Exercised (in dollars per share) | 27.75 | |||
Outstanding options exercisable (in shares) | 27,601,866 | |||
Long-term incentive and director compensation plans | Restricted Stock Units (RSUs) | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Award vesting period (in years) | 4 years | |||
Long-term incentive plan RSU conversion to common stock feature | Each RSU represents the right to receive one share of TI common stock on the vesting date | |||
Weighted-average grant-date fair value, Granted (in dollars per share) | 44.71 | $33.70 | $31.60 | |
Total fair value of shares vested from RSU lapses | 133,000,000 | 98,000,000 | 120,000,000 | |
Future compensation cost not yet recognized in the Statements of Income | 195,000,000 | |||
TI employees 2005 stock purchase plan | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Percent of the underlying common stock's market price participants pay for options (in hundredths) | 85.00% | |||
Employee stock purchase plan option term (in months) | 3 months | |||
Aggregate intrinsic value of options exercised | 12,000,000 | $13,000,000 | $13,000,000 | |
Weighted-average exercise price, Exercised (in dollars per share) | 39.44 | |||
Outstanding options exercisable (in shares) | 0 | |||
Weighted average grant date fair value of options granted (dollars per share) | 7.34 | $5.71 | $4.52 | |
Subsequent Event | TI employees 2005 stock purchase plan | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Weighted-average exercise price, Exercised (in dollars per share) | $45.46 | |||
Annual Vesting | Employee Stock Option | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Non-qualified stock options award vesting rights | 25.00% |
Stockbased_compensation_Expens
Stock-based compensation - Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $277 | $287 | $263 |
COR | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 48 | 49 | 48 |
R&D | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 62 | 67 | 71 |
SG&A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 156 | 160 | 127 |
Acquisition charges | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $11 | $11 | $17 |
Stockbased_compensation_Fairva
Stock-based compensation - Fair-value methods and assumptions (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Fair value assumptions method used for non-qualified stock options | Black-Scholes-Merton option-pricing model | ||
Weighted average grant date fair value, per share (in dollars per share) | $8.13 | $6.78 | $8.31 |
Expected volatility (in percent) | 22.00% | 26.00% | 30.00% |
Expected lives | 7 years 3 months 18 days | 7 years 4 months 24 days | 7 years 1 month 6 days |
Risk-free interest rates (in percent) | 2.45% | 1.43% | 1.40% |
Expected dividend yields (in percent) | 2.72% | 2.56% | 2.10% |
Stockbased_compensation_Stock_
Stock-based compensation - Stock options and RSUs outstanding (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Stock Option | |||
Stock Options, Shares | |||
Exercised (in shares) | -19,503,382 | -45,507,711 | -22,409,816 |
Employee Stock Option | Long-term incentive and director compensation plans | |||
Stock Options, Shares | |||
Options outstanding, Beginning balance (in shares) | 64,930,540 | ||
Granted (in shares) | 14,053,185 | ||
Forfeited and expired (in shares) | -1,832,897 | ||
Exercised (in shares) | -19,503,382 | ||
Options outstanding, Ending balance (in shares) | 57,647,446 | ||
Stock Options, Weighted Average Exercise Price per Share | |||
Weighted-average exercise price, Outstanding, Beginning of period (in dollars per share) | 28.98 | ||
Weighted-average exercise price, Granted (in dollars per share) | 44.11 | ||
Weighted-average exercise price, Expired and forfeited (in dollars per share) | 36.54 | ||
Weighted-average exercise price, Exercised (in dollars per share) | 27.75 | ||
Weighted-average exercise price, Outstanding, End of period (in dollars per share) | 32.84 | ||
Restricted Stock Units (RSUs) | |||
Restricted Stock Units, Shares | |||
Vested RSUs (in shares) | -5,609,627 | -5,741,981 | -4,182,928 |
Restricted Stock Units (RSUs) | Long-term incentive and director compensation plans | |||
Restricted Stock Units, Shares | |||
Awards outstanding other than options, Beginning balance (in shares) | 20,892,022 | ||
Granted (in shares) | 3,184,237 | ||
Vested RSUs (in shares) | -5,609,627 | ||
Expired and forfeited (in shares) | -1,162,817 | ||
Awards outstanding other than options, Ending balance (in shares) | 17,303,815 | 20,892,022 | |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Share | |||
Weighted-average grant date fair value, Beginning of period (in dollars per share) | 29.94 | ||
Weighted-average grant-date fair value, Granted (in dollars per share) | 44.71 | 33.7 | 31.6 |
Weighted-average grant date fair value, Vested RSUs (in dollars per share) | 23.68 | ||
Weighted-average grant date fair value, Expired and forfeited (in dollars per share) | 33.22 | ||
Weighted-average grant date fair value, Ending of period (in dollars per share) | 34.47 | 29.94 |
Stockbased_compensation_Range_
Stock-based compensation - Range of exercise prices (Details) (Employee Stock Option, Long-term incentive and director compensation plans, USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Price, Minimum | $14.47 | |
Range of Exercise Price, Maximum | $55.41 | |
Number Outstanding (Shares) | 57,647,446 | 64,930,540 |
Weighted Average Remaining Contractual Life (Years) | 6 years 4 months 24 days | |
Options Outstanding Weighted Average Exercise Price per Share | $32.84 | $28.98 |
Number Exercisable (Shares) | 27,601,866 | |
Options Exercisable Weighted Average Exercise Price per Share | $27.34 | |
Range Of Exercise Prices $14.47 to $20.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Price, Minimum | $14.47 | |
Range of Exercise Price, Maximum | $20 | |
Number Outstanding (Shares) | 4,061,577 | |
Weighted Average Remaining Contractual Life (Years) | 4 years | |
Options Outstanding Weighted Average Exercise Price per Share | $14.98 | |
Number Exercisable (Shares) | 4,061,577 | |
Options Exercisable Weighted Average Exercise Price per Share | $14.98 | |
Range Of Exercise Prices $20.01 to $30.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Price, Minimum | $20.01 | |
Range of Exercise Price, Maximum | $30 | |
Number Outstanding (Shares) | 11,270,125 | |
Weighted Average Remaining Contractual Life (Years) | 3 years 8 months 12 days | |
Options Outstanding Weighted Average Exercise Price per Share | $25.47 | |
Number Exercisable (Shares) | 11,250,200 | |
Options Exercisable Weighted Average Exercise Price per Share | $25.46 | |
Range Of Exercise Prices $30.01 to $40.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Price, Minimum | $30.01 | |
Range of Exercise Price, Maximum | $40 | |
Number Outstanding (Shares) | 28,910,636 | |
Weighted Average Remaining Contractual Life (Years) | 6 years 6 months | |
Options Outstanding Weighted Average Exercise Price per Share | $33 | |
Number Exercisable (Shares) | 12,288,339 | |
Options Exercisable Weighted Average Exercise Price per Share | $33.14 | |
Range Of Exercise Prices $40.01 to $50.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Price, Minimum | $40.01 | |
Range of Exercise Price, Maximum | $50 | |
Number Outstanding (Shares) | 13,399,020 | |
Weighted Average Remaining Contractual Life (Years) | 9 years 1 month 6 days | |
Options Outstanding Weighted Average Exercise Price per Share | $44.10 | |
Number Exercisable (Shares) | 1,750 | |
Options Exercisable Weighted Average Exercise Price per Share | $42.66 | |
Range Of Exercise Prices $50.01 to $55.41 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Price, Minimum | $50.01 | |
Range of Exercise Price, Maximum | $55.41 | |
Number Outstanding (Shares) | 6,088 | |
Weighted Average Remaining Contractual Life (Years) | 9 years 10 months 24 days | |
Options Outstanding Weighted Average Exercise Price per Share | $55.41 | |
Number Exercisable (Shares) | 0 |
Stockbased_compensation_Option
Stock-based compensation - Options vested and expected to vest (Details) (Long-term incentive and director compensation plans, Employee Stock Option, USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | |
Long-term incentive and director compensation plans | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of outstanding shares, vested and expected to vest (in shares) | 56,328,323 | [1] |
Weighted-average remaining contractual life, vested and expected to vest (in years) | 6 years 3 months 18 days | [1] |
Weighted-average exercise price per share, vested and expected to vest (in dollars per share) | $32.69 | [1] |
Intrinsic value, vested and expected to vest (millions of dollars) | $1,170 | [1] |
Outstanding options exercisable (in shares) | 27,601,866 | |
Weighted-average remaining contractual life, options exercisable | 4 years 4 months 24 days | |
Weighted-average exercise price per share, options exercisable (in dollars per share) | $27.34 | |
Intrinsic value, options exercisable (millions of dollars) | 721 | |
Expected forfeitures, effects of which are included (in shares) | 1,000,000 | |
Aggregate intrinsic value of stock options outstanding, excluding the effects of expected forfeitures | $1,189 | |
[1] | Includes effects of expected forfeitures of approximately 1 million shares. Excluding the effects of expected forfeitures, the aggregate intrinsic value of stock options outstanding was $1,189 million. |
Stockbased_compensation_Direct
Stock-based compensation - Director deferred compensation (Details) (Director) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Director | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance, Directors deferred compensation account (in shares) | 129,264 | ||
New shares deferred (in shares) | 13,636 | ||
Issued (in shares) | -7,178 | -12,909 | -6,592 |
Ending balance, Directors deferred compensation account (in shares) | 135,722 | 129,264 |
Stockbased_compensation_Employ
Stock-based compensation - Employee stock purchase plan (Details) (TI employees 2005 stock purchase plan, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
TI employees 2005 stock purchase plan | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding, Beginning balance (in shares) | 485,408 |
Granted (in shares) | 1,673,479 |
Exercised (in shares) | -1,784,184 |
Options outstanding, Ending balance (in shares) | 374,703 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted-average exercise price, Outstanding, Beginning of period (in dollars per share) | $36.64 |
Weighted-average exercise price, Granted (in dollars per share) | $41.60 |
Weighted-average exercise price, Exercised (in dollars per share) | $39.44 |
Weighted-average exercise price, Outstanding, End of period (in dollars per share) | $45.46 |
Stockbased_compensation_Effect
Stock-based compensation - Effect on shares outstanding and treasury shares (Details) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Schedule of Changes in Treasury Stock [Line Items] | |||||
Treasury stock (in shares) | 694,189,127 | 658,012,970 | 632,636,970 | 601,131,631 | |
Repurchases | 61,665,209 | 77,564,013 | 59,757,780 | ||
Total issued (in shares) | -25,481,874 | -52,175,104 | -28,245,849 | ||
Director | |||||
Schedule of Changes in Treasury Stock [Line Items] | |||||
Issued (in shares) | -7,178 | -12,909 | -6,592 | ||
Employee Stock Option | |||||
Schedule of Changes in Treasury Stock [Line Items] | |||||
Exercised (in shares) | -19,503,382 | -45,507,711 | -22,409,816 | ||
Previously unissued common shares (in shares) | 180,955 | [1] | |||
Stock applied to taxes | 0 | 0 | |||
Total issued (in shares) | -21,280,948 | -47,894,545 | -25,058,359 | ||
Stock applied to exercises or taxes | 6,618 | ||||
Employee Stock Option | Director | |||||
Schedule of Changes in Treasury Stock [Line Items] | |||||
Issued (in shares) | 0 | 0 | 0 | ||
Restricted Stock Units (RSUs) | |||||
Schedule of Changes in Treasury Stock [Line Items] | |||||
Vested RSUs (in shares) | -5,609,627 | -5,741,981 | -4,182,928 | ||
Previously unissued common shares (in shares) | 4,593 | [1] | |||
Stock applied to taxes | 1,461,422 | 990,845 | |||
Total issued (in shares) | -4,200,926 | -4,280,559 | -3,187,490 | ||
Stock applied to exercises or taxes | 1,408,701 | ||||
Restricted Stock Units (RSUs) | Director | |||||
Schedule of Changes in Treasury Stock [Line Items] | |||||
Issued (in shares) | 0 | 0 | 0 | ||
TI employees 2005 stock purchase plan | |||||
Schedule of Changes in Treasury Stock [Line Items] | |||||
Exercised (in shares) | -1,784,184 | ||||
TI employees 2005 stock purchase plan | Employee Stock Option | |||||
Schedule of Changes in Treasury Stock [Line Items] | |||||
Exercised (in shares) | -1,784,184 | -2,386,834 | -2,829,498 | ||
TI employees 2005 stock purchase plan | Restricted Stock Units (RSUs) | |||||
Schedule of Changes in Treasury Stock [Line Items] | |||||
Vested RSUs (in shares) | 0 | 0 | 0 | ||
[1] | Beginning in 2013, only treasury shares were issued. |
Stockbased_compensation_Shares
Stock-based compensation - Shares available for future grants and reserve for issuance (Details) | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reserved for issuance (in shares) | 160,692,694 | [1] | |
Shares to be issued upon exercise of outstanding options and RSUs | -75,461,686 | [1] | |
Available for future grants | 85,231,008 | ||
Long-term incentive and director compensation plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reserved for issuance (in shares) | 121,127,656 | [1] | |
Shares to be issued upon exercise of outstanding options and RSUs | -75,086,983 | [1] | |
Available for future grants | 46,040,673 | ||
TI employees 2005 stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reserved for issuance (in shares) | 39,565,038 | [1] | |
Shares to be issued upon exercise of outstanding options and RSUs | -374,703 | [1] | |
Available for future grants | 39,190,335 | ||
Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Directors deferred compensation account (in shares) | 135,722 | 129,264 | |
[1] | Includes 135,722 shares credited to directors’ deferred stock accounts that settle in shares of TI common stock. These shares are not included as grants outstanding at December 31, 2014. |
Stockbased_compensation_Effect1
Stock-based compensation - Effects on cash flows (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Proceeds from common stock transactions | $616 | $1,314 | $523 |
Tax benefit realized from stock options exercised | $218 | $227 | $133 |
Profit_sharing_plans_Details
Profit sharing plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Profit sharing plans [Abstract] | |||
Minimum percentage amount of operating margin the company must attain for full calendar year for any profit sharing per individual to be paid (in hundredths) | 10.00% | ||
Amount of gross compensation eligible for profit sharing deferral per individual in calendar year when minimum operating margin is attained by company (in hundredths) | 2.00% | ||
Maximum amount of gross compensation eligible for profit sharing per individual in calendar year when 35% operating margin is attained by company (in hundredths) | 20.00% | ||
Percentage of operating margin the company must attain for full calendar year for maximum amount of profit sharing per individual to be paid (in hundredths) | 35.00% | ||
Profit sharing expense | $269 | $161 | $96 |
Income_taxes_Details
Income taxes (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Contingency [Line Items] | ||||
Discrete tax benefits related to reinstatement of the U.S. R&D tax credit | $79,000,000 | |||
Discrete tax benefits related to U.S. benefit for manufacturing | 252,000,000 | |||
Deferred tax asset, change in amount related to unutilized tax credits | 24,000,000 | |||
Tax loss carryforward, U.S. and non-U.S. | 108,000,000 | |||
Tax loss carryforward, U.S. and non-U.S., set to expire | 0 | |||
Amount of undistributed foreign earnings | 7,670,000,000 | |||
Cash payments for income taxes | 1,104,000,000 | 569,000,000 | 171,000,000 | |
Amount of deferred tax assets possibly to be realized | 56,000,000 | 76,000,000 | ||
Unrecognized tax benefits | 108,000,000 | 91,000,000 | 184,000,000 | 210,000,000 |
Audit Assessments Not Made | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | 76,000,000 | |||
Change in Accounting Method Accounted for as Change in Estimate | ||||
Income Tax Contingency [Line Items] | ||||
Amount of unrecorded changes in unrecognized tax benefits | 52,000,000 | |||
Audit Assessments | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | 32,000,000 | |||
Increase Liability for Transfer Pricing Issues | ||||
Income Tax Contingency [Line Items] | ||||
Amount of unrecorded changes in unrecognized tax benefits | 29,000,000 | |||
Settlement with Taxing Authority | ||||
Income Tax Contingency [Line Items] | ||||
Amount of unrecorded changes in unrecognized tax benefits | 29,000,000 | |||
Foreign Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Benefits from tax holidays | $44,000,000 | $40,000,000 | $51,000,000 | |
Tax holiday, review time period | 5 years |
Income_taxes_Income_before_inc
Income taxes - Income before income taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Income before income taxes - U.S. | $2,684 | $1,507 | $319 |
Income before income taxes - Non-U.S. | 1,190 | 1,247 | 1,616 |
Income before income taxes | $3,874 | $2,754 | $1,935 |
Income_taxes_Provision_benefit
Income taxes - Provision (benefit) for income taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
U.S. Federal - Current | $911 | $291 | ($108) |
Non-U.S. - Current | 194 | 247 | 156 |
U.S. State - Current | 9 | 4 | -2 |
Total current income tax expense (benefit) | 1,114 | 542 | 46 |
U.S. Federal - Deferred | -73 | 17 | 65 |
Non-U.S. - Deferred | 11 | 33 | 65 |
U.S. State - Deferred | 1 | 0 | 0 |
Total deferred income tax expense (benefit) | -61 | 50 | 130 |
Total U.S. Federal income taxes | 838 | 308 | -43 |
Total Non-U.S. income taxes | 205 | 280 | 221 |
Total U.S. State income taxes | 10 | 4 | -2 |
Provision for income taxes | $1,053 | $592 | $176 |
Income_taxes_Reconciliation_it
Income taxes - Reconciliation items from income tax computed at statutory federal rate (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Computed tax at statutory rate | $1,356 | $964 | $677 |
Non-U.S. effective tax rates | -212 | -156 | -345 |
U.S. R&D tax credit | -59 | -129 | 0 |
U.S. tax benefit for manufacturing | -51 | -66 | -158 |
Impact of changes to uncertain tax positions | 3 | -14 | -88 |
Non-deductible expenses | 6 | 13 | 42 |
Other | 10 | -20 | 48 |
Provision for income taxes | $1,053 | $592 | $176 |
Income_taxes_Components_of_def
Income taxes - Components of deferred income tax assets and liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred income tax assets: | ||
Deferred loss and tax credit carryforwards | $289 | $345 |
Accrued expenses | 248 | 265 |
Stock-based compensation | 238 | 262 |
Inventories and related reserves | 157 | 162 |
Retirement costs for defined benefit and retiree health care | 96 | 101 |
Other | 122 | 148 |
Deferred income tax assets, gross | 1,150 | 1,283 |
Valuation allowance | -195 | -219 |
Deferred income tax assets, net | 955 | 1,064 |
Deferred income tax liabilities: | ||
Acquisition-related intangibles and fair-value adjustments | -688 | -804 |
International earnings | -104 | -121 |
Property, plant and equipment | -10 | -57 |
Other | -37 | -31 |
Deferred income tax liabilities, net | -839 | -1,013 |
Net deferred income tax asset | $116 | $51 |
Income_taxes_Deferred_income_t
Income taxes - Deferred income tax assets and liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Current deferred income tax assets | $347 | $393 |
Noncurrent deferred income tax assets | 172 | 207 |
Current deferred income tax liabilities | -4 | -1 |
Noncurrent deferred income tax liabilities | -399 | -548 |
Net deferred income tax asset | $116 | $51 |
Income_taxes_Uncertain_tax_pos
Income taxes - Uncertain tax positions (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, January 1 | $91 | $184 | $210 |
Additions based on tax positions related to the current year | 10 | 7 | 12 |
Additions for tax positions of prior years | 52 | 19 | 45 |
Reductions for tax positions of prior years | -9 | -10 | -92 |
Settlements with tax authorities | -36 | -96 | 39 |
Expiration of the statute of limitations for assessing taxes | 0 | -13 | -30 |
Balance, December 31 | 108 | 91 | 184 |
Interest income (expense) recognized in the year ended December 31 | 6 | -10 | 32 |
Interest receivable (payable) as of December 31 | $0 | ($5) | $8 |
Financial_instruments_and_risk2
Financial instruments and risk concentration (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for doubtful accounts, current | |||
Accounts receivable allowances [Roll Forward] | |||
Balance at beginning of year | $22 | $31 | $19 |
Additions charged (credited) to operating results | -9 | -9 | 12 |
Recoveries and write-offs, net | -1 | 0 | 0 |
Balance at end of year | 12 | 22 | 31 |
Foreign Exchange Forward | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Notional value of forward foreign currency exchange contracts | 504 | ||
Foreign Exchange Forward | Japanese Yen | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Notional value of forward foreign currency exchange contracts | 183 | ||
Foreign Exchange Forward | Euros | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Notional value of forward foreign currency exchange contracts | 163 | ||
Foreign Exchange Forward | British Pound | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Notional value of forward foreign currency exchange contracts | $29 |
Valuation_of_debt_and_equity_i2
Valuation of debt and equity investments and certain liabilities - Investments at fair value (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | $1,199 | $1,627 | |
Short-Term Investments | 2,342 | 2,202 | |
Long-Term Investments | 224 | 216 | |
Proceeds from sales, redemptions and maturities of short-term available-for-sale securities | 2,966 | 4,249 | 2,198 |
Aggregate maturities of investments in money market funds and other debt securities classified as available for sale [Abstract] | |||
One year or less | 3,121 | ||
One to two years | 205 | ||
Other-than-temporary declines and impairments in investments recognized in other income and expense | 5 | 7 | |
Estimate of Fair Value Measurement | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | 984 | 1,410 | |
Short-Term Investments | 2,342 | 2,202 | |
Long-Term Investments | 185 | 179 | |
Estimate of Fair Value Measurement | Available-for-sale Securities | Money market funds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | 522 | 500 | |
Short-Term Investments | 0 | 0 | |
Long-Term Investments | 0 | 0 | |
Estimate of Fair Value Measurement | Available-for-sale Securities | Corporate obligations | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | 97 | 123 | |
Short-Term Investments | 390 | 217 | |
Long-Term Investments | 0 | 0 | |
Estimate of Fair Value Measurement | Available-for-sale Securities | U.S. Government agency and Treasury securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | 365 | 787 | |
Short-Term Investments | 1,952 | 1,985 | |
Long-Term Investments | 0 | 0 | |
Estimate of Fair Value Measurement | Trading Securities | Mutual funds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | 0 | 0 | |
Short-Term Investments | 0 | 0 | |
Long-Term Investments | 185 | 179 | |
Portion at Other than Fair Value Measurement | Equity-method investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | 0 | 0 | |
Short-Term Investments | 0 | 0 | |
Long-Term Investments | 27 | 24 | |
Portion at Other than Fair Value Measurement | Cost-method investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | 0 | 0 | |
Short-Term Investments | 0 | 0 | |
Long-Term Investments | 12 | 13 | |
Portion at Other than Fair Value Measurement | Cash on hand | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | 215 | 217 | |
Short-Term Investments | 0 | 0 | |
Long-Term Investments | $0 | $0 |
Valuation_of_debt_and_equity_i3
Valuation of debt and equity investments and certain liabilities - Fair value assets and liabilities measured on recurring basis (Details) (Fair Value, Measurements, Recurring, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | $3,511,000,000 | $3,791,000,000 |
Total liabilities fair value | 202,000,000 | 197,000,000 |
Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities fair value | 202,000,000 | 197,000,000 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 522,000,000 | 500,000,000 |
Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 487,000,000 | 340,000,000 |
U.S. Government agency and Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 2,317,000,000 | 2,772,000,000 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 185,000,000 | 179,000,000 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 2,469,000,000 | 2,786,000,000 |
Total liabilities fair value | 202,000,000 | 197,000,000 |
Level 1 | Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities fair value | 202,000,000 | 197,000,000 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 522,000,000 | 500,000,000 |
Level 1 | Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 0 | 0 |
Level 1 | U.S. Government agency and Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 1,762,000,000 | 2,107,000,000 |
Level 1 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 185,000,000 | 179,000,000 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 1,042,000,000 | 1,005,000,000 |
Total liabilities fair value | 0 | 0 |
Level 2 | Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities fair value | 0 | 0 |
Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 0 | 0 |
Level 2 | Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 487,000,000 | 340,000,000 |
Level 2 | U.S. Government agency and Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 555,000,000 | 665,000,000 |
Level 2 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 0 | 0 |
Total liabilities fair value | $0 | $0 |
Goodwill_and_acquisitionrelate2
Goodwill and acquisition-related intangibles - Goodwill (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Goodwill [Line Items] | |||
Goodwill, net | $4,362,000,000 | $4,362,000,000 | |
Goodwill impairment loss | 0 | 0 | 90,000,000 |
Accumulated impairment of goodwill | 90,000,000 | 90,000,000 | |
Analog | |||
Goodwill [Line Items] | |||
Goodwill, net | 4,158,000,000 | 4,158,000,000 | |
Embedded Processing | |||
Goodwill [Line Items] | |||
Goodwill, net | 172,000,000 | 172,000,000 | |
Other | |||
Goodwill [Line Items] | |||
Goodwill, net | $32,000,000 | $32,000,000 |
Goodwill_and_acquisitionrelate3
Goodwill and acquisition-related intangibles - Acquisition-related intangibles (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Acquisition-related intangibles, gross carrying amount | $2,948 | $2,991 | |
Acquisition-related intangibles, accumulated amortization | 1,046 | 768 | |
Acquisition-related intangibles, net | 1,902 | 2,223 | |
Amortization of acquisition-related intangibles | 321 | 336 | 342 |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |||
2015 | 319 | ||
2016 | 319 | ||
2017 | 318 | ||
2018 | 318 | ||
2019 | 288 | ||
Thereafter | 340 | ||
Developed technology | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Acquisition-related intangibles, gross carrying amount | 2,135 | 2,157 | |
Acquisition-related intangibles, accumulated amortization | 714 | 526 | |
Acquisition-related intangibles, net | 1,421 | 1,631 | |
Customer relationships | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Acquisition-related intangibles, amortization period | 8 years | ||
Acquisition-related intangibles, gross carrying amount | 810 | 821 | |
Acquisition-related intangibles, accumulated amortization | 330 | 239 | |
Acquisition-related intangibles, net | 480 | 582 | |
Other intangibles | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Acquisition-related intangibles, amortization period | 5 years | ||
Acquisition-related intangibles, gross carrying amount | 3 | 5 | |
Acquisition-related intangibles, accumulated amortization | 2 | 3 | |
Acquisition-related intangibles, net | 1 | 2 | |
In-process R&D | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Acquisition-related intangibles, gross carrying amount | 0 | 8 | |
Acquisition-related intangibles, net | $0 | $8 | |
Minimum | Developed technology | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Acquisition-related intangibles, amortization period | 5 years | ||
Maximum | Developed technology | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Acquisition-related intangibles, amortization period | 10 years |
Postretirement_benefit_plans_D
Postretirement benefit plans (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Description of employer contributions to the U.S. retirement plans | Both defined contribution plans offer an employer-matching savings option that allows employees to make pre-tax contributions to various investment choices, including a TI common stock fund. Employees who elected to continue accruing a benefit in the qualified defined benefit pension plans may also participate in the defined contribution plan, where employer-matching contributions are provided for up to 2 percent of the employee’s annual eligible earnings. Employees who elected not to continue accruing a benefit in the defined benefit pension plans, and employees hired after November 1997 and through December 31, 2003, may participate in the enhanced defined contribution plan. This plan provides for a fixed employer contribution of 2 percent of the employee’s annual eligible earnings, plus an employer-matching contribution of up to 4 percent of the employee’s annual eligible earnings. Employees hired after December 31, 2003, do not receive the fixed employer contribution of 2 percent of the employee’s annual eligible earnings. | ||
Number of company shares held by the U.S. defined contribution plans at year-end (in shares) | 14,000,000 | 15,000,000 | |
Value of the company shares held by the U.S. defined contribution plans at year-end | $740 | $678 | |
Dividends paid on the company shares held by the U.S. defined contribution plans at year-end | 19 | 18 | |
Aggregate expense for the U.S. defined contribution plans | 60 | 62 | 70 |
Defined benefit pension plan formula, highest consecutive years of compensation (in years) | 5 years | ||
Value of the company shares held by the non-U.S. retirement plans at year-end | 17 | 15 | |
Length of time certain gains and losses are considered when determining the market-related value of assets related to the U.S. Qualified pension and retiree health care plans (in years) | 3 years | ||
Expected contribution to retirement benefit plans in next fiscal year | 100 | ||
Defined benefit plan assets directly invested in TI common stock | 0 | ||
Liability to participants of the deferred compensation plan | 202 | ||
Deferred compensation plan assets | 185 | ||
U.S. defined benefit plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated benefit obligation | 968 | 882 | |
Future amortization of net actuarial loss | 19 | ||
Future amortization of unrecognized prior service cost (credit) | 0 | ||
U.S. retiree health care plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Future amortization of net actuarial loss | 9 | ||
Future amortization of unrecognized prior service cost (credit) | 6 | ||
Effect of a one-percentage point change in assumed health care cost trend rates [Abstract] | |||
Effect of a one percentage point increase on accumulated postretirement benefit obligation (in hundredths) | 27 | ||
Effect of a one percentage point decrease on accumulated postretirement benefit obligation (in hundredths) | 22 | ||
Effect of a one percentage point increase on service and interest cost components (in hundredths) | 1 | ||
Effect of a one percentage point increase on service and interest cost components (in hundredths) | 1 | ||
Non-U.S. defined benefit plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated benefit obligation | 2,150 | 2,120 | |
Future amortization of net actuarial loss | 22 | ||
Future amortization of unrecognized prior service cost (credit) | ($2) | ||
Defined contribution plan, also still accruing defined benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plan, employer matching contribution (percent) | 2.00% | ||
Enhanced defined contribution plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plan, employer matching contribution (percent) | 4.00% | ||
Defined contribution plan, employer fixed contribution (percent) | 2.00% | ||
Defined contribution plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plan, employer matching contribution (percent) | 4.00% |
Postretirement_benefit_plans_D1
Postretirement benefit plans - Defined benefit plans (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | |||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Restructuring charges/other | ($27) | ($9) | ($4) | ($11) | $62 | $16 | ($282) | $15 | ($51) | ($189) | $264 | ||||
U.S. defined benefit plan | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Service cost | 21 | 26 | 24 | ||||||||||||
Interest cost | 45 | 45 | 44 | ||||||||||||
Expected return on plan assets | -42 | -48 | -50 | ||||||||||||
Amortization of prior service cost (credit) | 0 | 1 | 1 | ||||||||||||
Recognized net actuarial loss | 26 | 21 | 16 | ||||||||||||
Net periodic benefit costs | 50 | 45 | 35 | ||||||||||||
Settlement losses | 5 | [1],[2] | 41 | [1],[2] | 0 | [1],[2] | |||||||||
Curtailment gain | 0 | 0 | 0 | ||||||||||||
Special termination benefit gains | 0 | [1] | 0 | [1] | -1 | [1] | |||||||||
Total, including other postretirement losses (gains) | 55 | 86 | 34 | ||||||||||||
Fair value of benefit obligation | 1,076 | 955 | 1,076 | 955 | 1,098 | ||||||||||
Fair value of plan assets | 1,082 | 941 | 1,082 | 941 | 1,071 | ||||||||||
U.S. retiree health care plan | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Service cost | 4 | 5 | 5 | ||||||||||||
Interest cost | 22 | 20 | 25 | ||||||||||||
Expected return on plan assets | -20 | -24 | -23 | ||||||||||||
Amortization of prior service cost (credit) | 4 | 4 | 3 | ||||||||||||
Recognized net actuarial loss | 7 | 11 | 13 | ||||||||||||
Net periodic benefit costs | 17 | 16 | 23 | ||||||||||||
Settlement losses | 0 | [1],[2] | 0 | [1],[2] | 0 | [1],[2] | |||||||||
Curtailment gain | 0 | 0 | -1 | ||||||||||||
Special termination benefit gains | 0 | [1] | 0 | [1] | 0 | [1] | |||||||||
Total, including other postretirement losses (gains) | 17 | 16 | 22 | ||||||||||||
Fair value of benefit obligation | 513 | 472 | 513 | 472 | 509 | ||||||||||
Fair value of plan assets | 497 | 485 | 497 | 485 | 517 | ||||||||||
Non-U.S. defined benefit plan | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Service cost | 39 | 41 | 45 | ||||||||||||
Interest cost | 68 | 61 | 75 | ||||||||||||
Expected return on plan assets | -80 | -67 | -78 | ||||||||||||
Amortization of prior service cost (credit) | -2 | -3 | -4 | ||||||||||||
Recognized net actuarial loss | 24 | 31 | 41 | ||||||||||||
Net periodic benefit costs | 49 | 63 | 79 | ||||||||||||
Settlement losses | 1 | [1],[2] | 4 | [1],[2] | 193 | [1],[2] | |||||||||
Curtailment gain | -2 | -7 | 0 | ||||||||||||
Special termination benefit gains | 0 | [1] | 0 | [1] | -337 | [1] | |||||||||
Total, including other postretirement losses (gains) | 48 | 60 | -65 | ||||||||||||
Restructuring charges/other | -144 | ||||||||||||||
Fair value of benefit obligation | 2,316 | 2,276 | 2,316 | 2,276 | 2,414 | ||||||||||
Fair value of plan assets | 2,213 | 2,179 | 2,213 | 2,179 | 2,218 | ||||||||||
Non-U.S. defined benefit plan | Difference Between Fair Values of the Obligations Settled and Assets Transferred | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Restructuring charges/other | -337 | ||||||||||||||
Non-U.S. defined benefit plan | Obligation and Assets Transferred to Japan Subsitutional Pension | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Fair value of benefit obligation | 533 | ||||||||||||||
Fair value of plan assets | 196 | ||||||||||||||
Non-U.S. defined benefit plan | Offset By Settlement Loss Related to Recognition of Previously Unrecognized Actuarial Losses Included In Accumulated Other Comprehensive Income | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Restructuring charges/other | $193 | ||||||||||||||
[1] | Transfer of Japan substitutional pension in 2012: In Japan, we maintain employee pension fund plans (EPFs) pursuant to the Japanese Welfare Pension Insurance Law (JWPIL). An EPF consists of two portions: a substitutional portion based on JWPIL-determined minimum old-age pension benefits similar to Social Security benefits in the United States and a corporate portion established at the discretion of each employer. Employers and employees are exempt from contributing to the Japanese Pension Insurance (JPI) if the substitutional portion is funded by an EPF.The JWPIL was amended to permit each EPF to separate the substitutional portion and transfer those obligations and related assets to the government of Japan. After such a transfer, the employer is required to contribute periodically to JPI, and the government of Japan is responsible for future benefit payments relating to the substitutional portion.During the third quarter of 2012, our EPF received final approval for such a separation and transferred the obligations and assets of its substitutional portion to the government of Japan. On a pre-tax basis, this resulted in a net gain of $144 million recorded in Restructuring charges/other on our Consolidated Statements of Income and included in Other, as shown in Note 4. This net gain of $144 million consisted of two parts - a gain of $337 million, representing the difference between the fair values of the obligations settled of $533 million and the assets transferred from the pension trust to the government of Japan of $196 million, offset by a settlement loss of $193 million related to the recognition of previously unrecognized actuarial losses included in AOCI. | ||||||||||||||
[2] | Includes non-restructuring and restructuring-related settlement losses. |
Postretirement_benefit_plans_B
Postretirement benefit plans - Benefit obligations and plan assets (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Funded status (FVPA – BO) at end of year | ($113) | ($98) | |
U.S. defined benefit plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 955 | 1,098 | |
Service cost | 21 | 26 | 24 |
Interest cost | 45 | 45 | 44 |
Participant contributions | 0 | 0 | |
Benefits paid | -66 | -9 | |
Medicare subsidy | 0 | 0 | |
Actuarial loss (gain) | 133 | -27 | |
Settlements | -12 | -178 | |
Curtailments | 0 | 0 | |
Effects of exchange rate changes | 0 | 0 | |
Other | 0 | 0 | |
Benefit obligation at end of year (BO) | 1,076 | 955 | 1,098 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 941 | 1,071 | |
Actual return on plan assets | 132 | 1 | |
Employer contributions (funding of qualified plans) | 75 | 43 | |
Employer contributions (payments for non-qualified plans) | 12 | 13 | |
Participant contributions | 0 | 0 | |
Benefits paid | -66 | -9 | |
Medicare subsidy | 0 | 0 | |
Settlements | -12 | -178 | |
Effects of exchange rate changes | 0 | 0 | |
Other | 0 | 0 | |
Fair value of plan assets at end of year (FVPA) | 1,082 | 941 | 1,071 |
Funded status (FVPA – BO) at end of year | 6 | -14 | |
U.S. retiree health care plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 472 | 509 | |
Service cost | 4 | 5 | 5 |
Interest cost | 22 | 20 | 25 |
Participant contributions | 19 | 18 | |
Benefits paid | -45 | -47 | |
Medicare subsidy | 4 | 3 | |
Actuarial loss (gain) | 37 | -36 | |
Settlements | 0 | 0 | |
Curtailments | 0 | 0 | |
Effects of exchange rate changes | 0 | 0 | |
Other | 0 | 0 | |
Benefit obligation at end of year (BO) | 513 | 472 | 509 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 485 | 517 | |
Actual return on plan assets | 24 | 41 | |
Employer contributions (funding of qualified plans) | 10 | 0 | |
Employer contributions (payments for non-qualified plans) | 0 | 0 | |
Participant contributions | 19 | 18 | |
Benefits paid | -45 | -45 | |
Medicare subsidy | 4 | 0 | |
Settlements | 0 | 0 | |
Effects of exchange rate changes | 0 | 0 | |
Other | 0 | -46 | |
Fair value of plan assets at end of year (FVPA) | 497 | 485 | 517 |
Funded status (FVPA – BO) at end of year | -16 | 13 | |
Non-U.S. defined benefit plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 2,276 | 2,414 | |
Service cost | 39 | 41 | 45 |
Interest cost | 68 | 61 | 75 |
Participant contributions | 5 | 1 | |
Benefits paid | -84 | -81 | |
Medicare subsidy | 0 | 0 | |
Actuarial loss (gain) | 275 | 96 | |
Settlements | -7 | -30 | |
Curtailments | -11 | -28 | |
Effects of exchange rate changes | -245 | -237 | |
Other | 0 | 39 | |
Benefit obligation at end of year (BO) | 2,316 | 2,276 | 2,414 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 2,179 | 2,218 | |
Actual return on plan assets | 295 | 201 | |
Employer contributions (funding of qualified plans) | 64 | 62 | |
Employer contributions (payments for non-qualified plans) | 0 | 0 | |
Participant contributions | 5 | 1 | |
Benefits paid | -84 | -81 | |
Medicare subsidy | 0 | 0 | |
Settlements | -7 | -30 | |
Effects of exchange rate changes | -239 | -232 | |
Other | 0 | 40 | |
Fair value of plan assets at end of year (FVPA) | 2,213 | 2,179 | 2,218 |
Funded status (FVPA – BO) at end of year | ($103) | ($97) |
Postretirement_benefit_plans_A
Postretirement benefit plans - Amounts recognized on the balance sheet (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Overfunded retirement plans | $127 | $130 |
Accrued expenses and other liabilities | -15 | -12 |
Underfunded retirement plans | -225 | -216 |
Funded status (FVPA – BO) at end of year | -113 | -98 |
U.S. defined benefit plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Overfunded retirement plans | 72 | 44 |
Accrued expenses and other liabilities | -9 | -7 |
Underfunded retirement plans | -57 | -51 |
Funded status (FVPA – BO) at end of year | 6 | -14 |
U.S. retiree health care plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Overfunded retirement plans | 0 | 16 |
Accrued expenses and other liabilities | 0 | 0 |
Underfunded retirement plans | -16 | -3 |
Funded status (FVPA – BO) at end of year | -16 | 13 |
Non-U.S. defined benefit plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Overfunded retirement plans | 55 | 70 |
Accrued expenses and other liabilities | -6 | -5 |
Underfunded retirement plans | -152 | -162 |
Funded status (FVPA – BO) at end of year | ($103) | ($97) |
Postretirement_benefit_plans_A1
Postretirement benefit plans - Amounts recognized in AOCI (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Defined Benefit Plan Amounts Recognized In Other Comprehensive Income Roll Forward | |
AOCI balance, net actuarial loss portion (net of taxes), beginning of period | $525 |
Adjustments, net actuarial loss | 71 |
Recognized within Net income, net actuarial loss | -63 |
Tax effect, net actuarial loss | -4 |
Total change to AOCI, net actuarial loss | 4 |
AOCI balance, net actuarial loss portion (net of taxes), period end | 529 |
Defined Benefit Plan Amounts Recognized In Other comprehensive Income Prior Service Cost (Credit) Portion [Roll Forward] | |
AOCI balance, net prior service cost (credit) (net of taxes), beginning of period | -1 |
Adjustments, prior service cost (credit) | 1 |
Recognized within Net income, prior service cost (credit) | 0 |
Tax effect, prior service cost (credit) | 0 |
Total change to AOCI, prior service cost | 1 |
AOCI balance, net prior service cost (credit) (net of taxes), period end | 0 |
U.S. defined benefit plan | |
Defined Benefit Plan Amounts Recognized In Other Comprehensive Income Roll Forward | |
AOCI balance, net actuarial loss portion (net of taxes), beginning of period | 149 |
Adjustments, net actuarial loss | 37 |
Recognized within Net income, net actuarial loss | -31 |
Tax effect, net actuarial loss | -2 |
Total change to AOCI, net actuarial loss | 4 |
AOCI balance, net actuarial loss portion (net of taxes), period end | 153 |
Defined Benefit Plan Amounts Recognized In Other comprehensive Income Prior Service Cost (Credit) Portion [Roll Forward] | |
AOCI balance, net prior service cost (credit) (net of taxes), beginning of period | -2 |
Adjustments, prior service cost (credit) | 0 |
Recognized within Net income, prior service cost (credit) | 3 |
Tax effect, prior service cost (credit) | -1 |
Total change to AOCI, prior service cost | 2 |
AOCI balance, net prior service cost (credit) (net of taxes), period end | 0 |
U.S. retiree health care plan | |
Defined Benefit Plan Amounts Recognized In Other Comprehensive Income Roll Forward | |
AOCI balance, net actuarial loss portion (net of taxes), beginning of period | 71 |
Adjustments, net actuarial loss | 29 |
Recognized within Net income, net actuarial loss | -7 |
Tax effect, net actuarial loss | -8 |
Total change to AOCI, net actuarial loss | 14 |
AOCI balance, net actuarial loss portion (net of taxes), period end | 85 |
Defined Benefit Plan Amounts Recognized In Other comprehensive Income Prior Service Cost (Credit) Portion [Roll Forward] | |
AOCI balance, net prior service cost (credit) (net of taxes), beginning of period | 10 |
Adjustments, prior service cost (credit) | 0 |
Recognized within Net income, prior service cost (credit) | -3 |
Tax effect, prior service cost (credit) | 1 |
Total change to AOCI, prior service cost | -2 |
AOCI balance, net prior service cost (credit) (net of taxes), period end | 8 |
Non-U.S. defined benefit plan | |
Defined Benefit Plan Amounts Recognized In Other Comprehensive Income Roll Forward | |
AOCI balance, net actuarial loss portion (net of taxes), beginning of period | 305 |
Adjustments, net actuarial loss | 5 |
Recognized within Net income, net actuarial loss | -25 |
Tax effect, net actuarial loss | 6 |
Total change to AOCI, net actuarial loss | -14 |
AOCI balance, net actuarial loss portion (net of taxes), period end | 291 |
Defined Benefit Plan Amounts Recognized In Other comprehensive Income Prior Service Cost (Credit) Portion [Roll Forward] | |
AOCI balance, net prior service cost (credit) (net of taxes), beginning of period | -9 |
Adjustments, prior service cost (credit) | 1 |
Recognized within Net income, prior service cost (credit) | 0 |
Tax effect, prior service cost (credit) | 0 |
Total change to AOCI, prior service cost | 1 |
AOCI balance, net prior service cost (credit) (net of taxes), period end | ($8) |
Postretirement_benefit_plans_P
Postretirement benefit plans - Plan assets by level three heirarchy (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
U.S. defined benefit plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $1,082 | $941 | $1,071 |
U.S. defined benefit plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. defined benefit plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,082 | 904 | |
U.S. defined benefit plan | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 37 | 37 |
U.S. defined benefit plan | Fixed income securities and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 707 | 607 | |
U.S. defined benefit plan | Fixed income securities and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. defined benefit plan | Fixed income securities and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 707 | 607 | |
U.S. defined benefit plan | Fixed income securities and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. defined benefit plan | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 375 | 297 | |
U.S. defined benefit plan | Equity securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. defined benefit plan | Equity securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 375 | 297 | |
U.S. defined benefit plan | Equity securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. defined benefit plan | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 37 | |
U.S. defined benefit plan | Other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. defined benefit plan | Other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. defined benefit plan | Other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 37 | |
U.S. retiree health care plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 497 | 485 | 517 |
U.S. retiree health care plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 200 | 193 | |
U.S. retiree health care plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 297 | 292 | |
U.S. retiree health care plan | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. retiree health care plan | Fixed income securities and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 243 | 238 | |
U.S. retiree health care plan | Fixed income securities and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 200 | 193 | |
U.S. retiree health care plan | Fixed income securities and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 43 | 45 | |
U.S. retiree health care plan | Fixed income securities and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. retiree health care plan | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 254 | 247 | |
U.S. retiree health care plan | Equity securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. retiree health care plan | Equity securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 254 | 247 | |
U.S. retiree health care plan | Equity securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. defined benefit plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,213 | 2,179 | 2,218 |
Non-U.S. defined benefit plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 436 | 403 | |
Non-U.S. defined benefit plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,772 | 1,768 | |
Non-U.S. defined benefit plan | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | 8 | 19 |
Non-U.S. defined benefit plan | Fixed income securities and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,608 | 1,521 | |
Non-U.S. defined benefit plan | Fixed income securities and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 430 | 397 | |
Non-U.S. defined benefit plan | Fixed income securities and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,178 | 1,124 | |
Non-U.S. defined benefit plan | Fixed income securities and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. defined benefit plan | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 600 | 650 | |
Non-U.S. defined benefit plan | Equity securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 6 | |
Non-U.S. defined benefit plan | Equity securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 594 | 644 | |
Non-U.S. defined benefit plan | Equity securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. defined benefit plan | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | 8 | |
Non-U.S. defined benefit plan | Other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. defined benefit plan | Other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. defined benefit plan | Other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $5 | $8 |
Postretirement_benefit_plans_C
Postretirement benefit plans - Changes in fair values for Level 3 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
U.S. defined benefit plan | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | $1,071 | ||
Fair value of plan assets at end of year (FVPA) | 1,082 | 941 | 1,071 |
U.S. defined benefit plan | Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 37 | 37 | |
Redemptions and sales | -45 | 0 | |
Unrealized gain (loss) | 8 | 0 | |
Fair value of plan assets at end of year (FVPA) | 0 | 37 | |
Non-U.S. defined benefit plan | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 2,218 | ||
Fair value of plan assets at end of year (FVPA) | 2,213 | 2,179 | 2,218 |
Non-U.S. defined benefit plan | Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 8 | 19 | |
Redemptions and sales | -2 | -10 | |
Unrealized gain (loss) | -1 | -1 | |
Fair value of plan assets at end of year (FVPA) | $5 | $8 |
Postretirement_benefit_plans_W
Postretirement benefit plans - Weighted average assumptions used (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
U.S. defined benefit plan | ||
Weighted average assumptions used to determine benefit obligations [Abstract] | ||
Discount rate (in percents) | 4.23% | 5.11% |
Long-term pay progression (in percents) | 3.30% | 3.50% |
Weighted average assumptions used to determine net periodic benefit cost [Abstract] | ||
Discount rate (in percents) | 5.11% | 4.59% |
Long term rate of return on plan assets (in percents) | 5.25% | 5.25% |
Long-term pay progression (in percents) | 3.50% | 3.60% |
U.S. retiree health care plan | ||
Weighted average assumptions used to determine benefit obligations [Abstract] | ||
Discount rate (in percents) | 4.07% | 4.83% |
Weighted average assumptions used to determine net periodic benefit cost [Abstract] | ||
Discount rate (in percents) | 4.83% | 3.94% |
Long term rate of return on plan assets (in percents) | 4.50% | 4.75% |
Non-U.S. defined benefit plan | ||
Weighted average assumptions used to determine benefit obligations [Abstract] | ||
Discount rate (in percents) | 2.34% | 3.01% |
Long-term pay progression (in percents) | 3.27% | 3.11% |
Weighted average assumptions used to determine net periodic benefit cost [Abstract] | ||
Discount rate (in percents) | 3.01% | 2.74% |
Long term rate of return on plan assets (in percents) | 3.75% | 3.34% |
Long-term pay progression (in percents) | 3.11% | 3.01% |
Postretirement_benefit_plans_W1
Postretirement benefit plans - Weighted average allocations (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
U.S. defined benefit plan | Fixed income securities and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percents) | 65.00% | |
Actual plan asset allocation (in percents) | 65.00% | 65.00% |
U.S. defined benefit plan | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percents) | 35.00% | |
Actual plan asset allocation (in percents) | 35.00% | 35.00% |
U.S. retiree health care plan | Fixed income securities and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percents) | 50.00% | |
Actual plan asset allocation (in percents) | 49.00% | 49.00% |
U.S. retiree health care plan | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percents) | 50.00% | |
Actual plan asset allocation (in percents) | 51.00% | 51.00% |
Non-U.S. defined benefit plan | Fixed income securities and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation range minimum (in percents) | 60.00% | |
Targeted allocation range maximum (in percents) | 100.00% | |
Actual plan asset allocation (in percents) | 73.00% | 70.00% |
Non-U.S. defined benefit plan | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation range minimum (in percents) | 0.00% | |
Targeted allocation range maximum (in percents) | 40.00% | |
Actual plan asset allocation (in percents) | 27.00% | 30.00% |
Postretirement_benefit_plans_B1
Postretirement benefit plans - Benefits expected to pay (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 Medicare subsidy | ($4) |
2016 Medicare subsidy | -4 |
2017 Medicare subsidy | -4 |
2018 Medicare subsidy | -5 |
2019 Medicare subsidy | -5 |
2020 - 2024 Medicare subsidy | -9 |
U.S. defined benefit plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 payment | 217 |
2016 payment | 95 |
2017 payment | 91 |
2018 payment | 93 |
2019 payment | 93 |
2020 - 2024 payment | 435 |
U.S. retiree health care plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 payment | 36 |
2016 payment | 37 |
2017 payment | 39 |
2018 payment | 40 |
2019 payment | 40 |
2020 - 2024 payment | 194 |
Non-U.S. defined benefit plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 payment | 76 |
2016 payment | 78 |
2017 payment | 82 |
2018 payment | 85 |
2019 payment | 89 |
2020 - 2024 payment | $501 |
Postretirement_benefit_plans_H
Postretirement benefit plans - Health care cost trend rates (Details) (U.S. retiree health care plan) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
U.S. retiree health care plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assumed health care cost trend rate for next year (in percents) | 7.00% | 7.00% |
Ultimate trend rate (in percents) | 5.00% | 5.00% |
Year in which ultimate trend rate is reached | 2023 | 2022 |
Debt_and_lines_of_credit_Detai
Debt and lines of credit (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | 31-May-13 | Aug. 31, 2012 | |
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity through March 2019 | $2,000,000,000 | |||||
Commercial paper | 0 | |||||
Long-term debt, gross | 4,625,000,000 | 5,125,000,000 | ||||
Proceeds from issuance of long-term debt | 498,000,000 | 986,000,000 | 1,492,000,000 | |||
Interest and debt expense | 94,000,000 | 95,000,000 | 85,000,000 | |||
Interest paid | 102,000,000 | 102,000,000 | 97,000,000 | |||
Notes payable | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | 500,000,000 | 1,000,000,000 | 1,500,000,000 | |||
Payments of debt issuance costs | 3,000,000 | 6,000,000 | 7,000,000 | |||
Proceeds from issuance of long-term debt | 498,000,000 | 986,000,000 | 1,492,000,000 | |||
Repayments of long-term debt | 1,000,000,000 | 1,500,000,000 | ||||
Notes payable | Notes due 2017 at 0.875% | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | 250,000,000 | 0 | 250,000,000 | |||
Notes payable | Notes due 2021 at 2.75% | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | 250,000,000 | 0 | 250,000,000 | |||
Notes payable | Notes due 2018 at 1.00% | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | 500,000,000 | 500,000,000 | 500,000,000 | |||
Notes payable | Notes due 2023 at 2.25% | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | 500,000,000 | 500,000,000 | 500,000,000 | |||
Notes payable | Notes due 2015 at 0.45% | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | 750,000,000 | 750,000,000 | 750,000,000 | |||
Notes payable | Notes due 2019 at 1.65% | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $750,000,000 | $750,000,000 | $750,000,000 |
Debt_and_lines_of_credit_Sched
Debt and lines of credit - Schedule of long-term debt outstanding (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | 31-May-13 | Aug. 31, 2012 |
In Millions, unless otherwise specified | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $4,625 | $5,125 | |||
Net unamortized premium | 17 | 33 | |||
Current portion of long-term debt | -1,001 | -1,000 | |||
Long-term debt | 3,641 | 4,158 | |||
Notes payable | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 500 | 1,000 | 1,500 | ||
Notes payable | Notes due 2014 at 1.375% | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 0 | 1,000 | |||
Long-term debt stated interest rate ( in percents) | 1.38% | 1.38% | |||
Notes payable | Notes due 2015 at 0.45% | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 750 | 750 | 750 | ||
Long-term debt stated interest rate ( in percents) | 0.45% | 0.45% | |||
Notes payable | Notes due 2016 at 2.375% | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 1,000 | 1,000 | |||
Long-term debt stated interest rate ( in percents) | 2.38% | 2.38% | |||
Notes payable | Notes due 2017 at 0.875% | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 250 | 0 | 250 | ||
Long-term debt stated interest rate ( in percents) | 0.88% | 0.88% | |||
Notes payable | Notes due 2018 at 1.00% | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 500 | 500 | 500 | ||
Long-term debt stated interest rate ( in percents) | 1.00% | 1.00% | |||
Notes payable | Notes due 2019 at 1.65% | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 750 | 750 | 750 | ||
Long-term debt stated interest rate ( in percents) | 1.65% | 1.65% | |||
Notes payable | Notes due 2021 at 2.75% | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 250 | 0 | 250 | ||
Long-term debt stated interest rate ( in percents) | 2.75% | 2.75% | |||
Notes payable | Notes due 2023 at 2.25% | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 500 | 500 | 500 | ||
Long-term debt stated interest rate ( in percents) | 2.25% | 2.25% | |||
National Semiconductor | Notes payable | Notes due 2015 at 3.95% (assumed with National acquisition) | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 250 | 250 | |||
Long-term debt stated interest rate ( in percents) | 3.95% | 3.95% | |||
National Semiconductor | Notes payable | Notes due 2017 at 6.60% (assumed with National acquisition) | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $375 | $375 | |||
Long-term debt stated interest rate ( in percents) | 6.60% | 6.60% |
Commitments_and_contingencies_1
Commitments and contingencies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Rental and lease expense incurred | $113 | $120 | $124 |
Standard product warranty description | three years of coverage; an obligation to repair, replace or refund; and a maximum payment obligation tied to the price paid for our products | ||
Standard product warranty coverage (in years) | 3 years | ||
Operating Leases | |||
2015 | 87 | ||
2016 | 66 | ||
2017 | 45 | ||
2018 | 33 | ||
2019 | 21 | ||
Thereafter | 80 | ||
Purchase Commitments | |||
2015 | 96 | ||
2016 | 52 | ||
2017 | 35 | ||
2018 | 14 | ||
2019 | 10 | ||
Thereafter | 2 | ||
Discontinued operation - indemnification obligation potential exposure | 200 | ||
Capitalized Software Licenses | |||
Capitalized Software Licenses | |||
2015 | 39 | ||
2016 | 27 | ||
2017 | 0 | ||
2018 | 0 | ||
2019 | 0 | ||
Thereafter | $0 |
Supplemental_financial_informa2
Supplemental financial information - Other income (expense), net (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Supplemental Financial Information [Abstract] | ||||||
Interest income | $7 | $10 | $8 | |||
Tax interest income (expense) | 6 | -10 | 32 | |||
Net gains on investments | 5 | 18 | 18 | |||
Other | 3 | [1] | -1 | [1] | -11 | [1] |
Total | 21 | 17 | 47 | |||
Lease income | 15 | 15 | 15 | |||
Aggregate amount of non-cancellable future lease payments | $51 | |||||
[1] | Includes lease income of approximately $15 million per year, primarily from the purchaser of a former business. As of December 31, 2014, the aggregate amount of non-cancellable future lease payments to be received from these leases is $51 million. These leases contain renewal options. Other also includes miscellaneous non-operational items such as losses related to former businesses, including settlements in 2012; gains and losses from currency exchange rate changes; and gains and losses from our derivative financial instruments, primarily forward foreign currency exchange contracts. |
Supplemental_financial_informa3
Supplemental financial information - Prepaid expenses and other current assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Supplemental Financial Information [Abstract] | ||
Prepaid taxes on intercompany inventory profits | $693 | $667 |
Other prepaid expenses and current assets | 157 | 196 |
Total | $850 | $863 |
Supplemental_financial_informa4
Supplemental financial information - Property, plant and equipment at cost (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment at cost | $6,266 | $6,556 | |
Lease income | 15 | 15 | 15 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment at cost | 137 | 175 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment at cost | 2,801 | 2,913 | |
Buildings and improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment at cost, depreciable lives | 5 years | ||
Buildings and improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment at cost, depreciable lives | 40 years | ||
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment at cost | $3,328 | $3,468 | |
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment at cost, depreciable lives | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment at cost, depreciable lives | 10 years |
Supplemental_financial_informa5
Supplemental financial information - Accrued expenses and other liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Supplemental Financial Information [Abstract] | ||
Customer incentive programs and allowances | $101 | $143 |
Severance and related expenses | 60 | 158 |
Other | 337 | 350 |
Total | $498 | $651 |
Supplemental_financial_informa6
Supplemental financial information - Accumulated other comprehensive income (loss), net of taxes (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Supplemental Financial Information [Abstract] | ||
Net actuarial loss | ($529) | ($525) |
Prior service credit | 0 | 1 |
Cash flow hedge derivative | -3 | -4 |
Total | ($532) | ($528) |
Supplemental_financial_informa7
Supplemental financial information - Amounts reclassified out of AOCI (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Net actuarial gains (losses) of defined benefit plans | ($63) | ||||||||||||
Prior service cost of defined benefit plans | 0 | ||||||||||||
Interest and debt expense | 94 | 95 | 85 | ||||||||||
Provision for income taxes | 1,053 | 592 | 176 | ||||||||||
Net income | -825 | -826 | -683 | -487 | -511 | -629 | -660 | -362 | -2,821 | -2,162 | -1,759 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) [Member] | |||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Net actuarial gains (losses) of defined benefit plans | 63 | [1],[2] | 108 | [1],[2] | |||||||||
Provision for income taxes | -21 | -37 | |||||||||||
Net income | 42 | 71 | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit) [Member] | |||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Prior service cost of defined benefit plans | 0 | [1],[2] | -5 | [1],[2] | |||||||||
Provision for income taxes | 0 | 2 | |||||||||||
Net income | 0 | -3 | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Interest and debt expense | 2 | 2 | |||||||||||
Provision for income taxes | -1 | -1 | |||||||||||
Net income | $1 | $1 | |||||||||||
[1] | Pension expense is included in COR, R&D, SG&A and Restructuring charges/other in the Consolidated Statements of Income. | ||||||||||||
[2] | Detailed in Note 11. |
Quarterly_financial_data_unaud2
Quarterly financial data (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $3,269 | $3,501 | $3,292 | $2,983 | $3,028 | $3,244 | $3,047 | $2,885 | $13,045 | $12,205 | $12,825 |
Gross profit | 1,895 | 2,044 | 1,881 | 1,607 | 1,640 | 1,779 | 1,570 | 1,374 | 7,427 | 6,364 | 6,368 |
Acquisition charges | 82 | 83 | 82 | 83 | 84 | 86 | 86 | 86 | 330 | 341 | 450 |
Restructuring charges/other | -27 | -9 | -4 | -11 | 62 | 16 | -282 | 15 | -51 | -189 | 264 |
Operating profit | 1,100 | 1,175 | 982 | 690 | 687 | 844 | 906 | 395 | 3,947 | 2,832 | 1,973 |
Net income | $825 | $826 | $683 | $487 | $511 | $629 | $660 | $362 | $2,821 | $2,162 | $1,759 |
Basic earnings per common share | $0.78 | $0.77 | $0.63 | $0.44 | $0.46 | $0.56 | $0.59 | $0.32 | $2.61 | $1.94 | $1.53 |
Diluted earnings per common share | $0.76 | $0.76 | $0.62 | $0.44 | $0.46 | $0.56 | $0.58 | $0.32 | $2.57 | $1.91 | $1.51 |