Intel 2009 Annual Report Download - page 98

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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Non
-U.S. Pension Benefits. We also provide defined-benefit pension plans in certain other countries. Consistent with the
requirements of local law, we deposit funds for certain plans with insurance companies, with third-party trustees, or into
government-managed accounts, and/or accrue for the unfunded portion of the obligation. The assumptions used in calculating
the obligation for the non-U.S. plans depend on the local economic environment.
Postretirement Medical Benefits.
Upon retirement, eligible U.S. employees are credited with a defined dollar amount based on
years of service. These credits can be used to pay all or a portion of the cost to purchase coverage in an Intel
-sponsored
medical plan. If the available credits are not sufficient to pay the entire cost of the coverage, the remaining cost is the
responsibility of the retiree.
Funding Policy.
Our practice is to fund the various pension plans in amounts sufficient to meet the minimum requirements of
U.S. federal laws and regulations or applicable local laws and regulations. Additional funding may be provided as deemed
appropriate. Depending on the design of the plan, local customs, and market circumstances, the liabilities of a plan may exceed
qualified plan assets.
Benefit Obligation and Plan Assets
The changes in the benefit obligations and plan assets for the plans described above were as follows:
87
U.S. Pension
Non
-
U.S. Pension
Postretirement
Benefits
Benefits
Medical Benefits
(In Millions)
2009
2008
2009
2008
2009
2008
Change in projected benefit obligation:
Beginning benefit obligation
$
542
$
291
$
691
$
794
$
173
$
213
Service cost
64
12
Interest cost
42
11
Plan participants
’
contributions
—
—
9
10
4
3
Actuarial (gain) loss
(10
)
244
(74
)
(157
)
6
(60
)
Currency exchange rate changes
—
—
4
13
—
—
Plan amendments
—
—
(
)
—
—
—
Plan curtailments
1
—
—
(
7
)
(20
)
—
—
Plan settlements
1
—
—
(
)
(27
)
—
—
Benefits paid to plan participants
(12
)
(23
)
(19
)
(28
)
(6
)
(7
)
Ending projected benefit obligation
$
567
$
542
$
653
$
691
$
200
$
173
U.S. Pension
Non-
U.S. Pension
Postretirement
Benefits
Benefits
Medical Benefits
(In Millions)
2009
2008
2009
2008
2009
2008
Change in plan assets:
Beginning fair value of plan assets
$
303
$
227
$
457
$
548
$
1
$
1
Actual return on plan assets
(6
)
(132
)
(1
)
(1
)
Employer contributions
100
105
80
4
5
Plan participants
’
contributions
—
—
9
10
4
3
Currency exchange rate changes
—
—
3
22
—
—
Plan settlements
1
—
—
(
)
(43
)
—
—
Benefits paid to plan participants
(12
)
(23
)
(19
)
(28
)
(6
)
(7
)
Ending fair value of plan assets
$
411
$
303
$
552
$
457
$
2
$
1
1
2008 curtailments and settlements were primarily related to the divestiture of our NOR flash memory business for
employees at our Israel and Philippines facilities.