Intel 1995 Annual Report Download - page 28

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At fiscal year-ends, the weighted average discount rates and Long-Term rates for compensation increases used for estimating the benefit
obligations and the expected return on plan assets were as follows:
Plan assets of the U.S. and Puerto Rico plans consist primarily of listed stocks and bonds, repurchase agreements, money market securities,
U.S. government securities and stock index derivatives.
The Company provides defined-benefit pension plans in certain foreign countries where required by statute. The Company's funding policy for
foreign defined- benefit plans is consistent with the local requirements in each country. Pension expense for 1995, 1994 and 1993 for the
foreign plans included the following:
The funded status of the foreign defined-benefit plans as of December 30, 1995 and December 31, 1994 is summarized below:
======= =======
Projected benefit obligation $ (6) $ (5)
Fair market value of plan assets 8 6
------- -------
Projected benefit obligation less than plan assets 2 1
Unrecognized net (gain) (12) (12)
Unrecognized prior service cost 3 4
------- -------
Accrued pension costs $ (7) $ (7)
======= =======
1995 1994 1993
- ----------------------------------------------------------------------------
Discount rate 7.0% 8.5% 7.0%
Rate of increase in compensation
levels 5.0% 5.5% 5.0%
Expected Long-Term return on assets 8.5% 8.5% 8.5%
(In millions) 1995 1994 1993
- ----------------------------------------------------------------------------
Service cost-benefits earned
during the year $ 9 $ 5 $ 5
Interest cost of projected
benefit obligation 6 5 6
Actual investment (return)
on plan assets (4) (8) (7)
Net amortization and deferral (2) 3 2
------- ------- -------
Net pension expense $ 9 $ 5 $ 6
======= ======= =======
Assets Accu-
exceed mulated
accu- benefits
1995 mulated exceed
(In millions) benefits assets
- ------------------------------------------------------------------------------
Vested benefit obligation $ (44) $ (8)
======= =======
Accumulated benefit obligation $ (46) $ (14)
======= =======
Projected benefit obligation $ (62) $ (22)
Fair market value of plan assets 67 4
------- -------
Projected benefit obligation less than
(in excess of) plan assets 5 (18)
Unrecognized net loss 4 5
Unrecognized net transition obligation 2 --
------- -------
Prepaid (accrued) pension costs $ 11 $ (13)
======= =======
Assets Accu-
exceed mulated
accu- benefits
1994 mulated exceed
(In millions) benefits assets
- ------------------------------------------------------------------------------
Vested benefit obligation $ (32) $ (4)
======= =======
Accumulated benefit obligation $ (34) $ (9)
======= =======
Projected benefit obligation $ (49) $ (16)
Fair market value of plan assets 51 3
------- -------