v2.4.0.6
Postretirement Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2012
Summary of PME Multi-Employer Plan
PME multi-employer plan    2012      2011      2010  

NXP’s contributions to the plan

     53         59         53   

(including employees’ contributions)

     4         2         2   

Average number of NXP’s active employees participating in the plan

     3,229         3,256         3,537   

NXP’s contribution to the plan exceeded more than 5 percent of the total contribution (as of December 31 of the plan’s year end)

     No         No         No   
Summary of Changes in Pension Benefit Obligations and Defined-Benefit Pension Plan Assets

The table below provides a summary of the changes in the pension benefit obligations and defined-benefit pension plan assets for 2012 and 2011, associated with the Company’s dedicated plans, and a reconciliation of the funded status of these plans to the amounts recognized in the consolidated balance sheets.

 

     2012     2011  

Projected benefit obligation

    

Projected benefit obligation at beginning of year

     342        347   

Additions

     —          3   

Service cost

     11        12   

Interest cost

     14        15   

Actuarial (gains) and losses

     60        (5

Curtailments and settlements

     (2     (6

Plan amendments

     —          (1

Benefits paid

     (18     (13

Exchange rate differences

     12        (10
  

 

 

   

 

 

 

Projected benefit obligation at end of year

     419        342   

Plan assets

    

Fair value of plan assets at beginning of year

     147        148   

Actual return on plan assets

     14        10   

Employer contributions

     14        13   

Curtailments and settlements

     —          (6

Benefits paid

     (18     (13

Exchange rate differences

     5        (5
  

 

 

   

 

 

 

Fair value of plan assets at end of year

     162        147   

Funded status

     (257     (195
  

 

 

   

 

 

 

Classification of the funded status is as follows

    

- Prepaid pension cost within other non-current assets

     13        25   

- Accrued pension cost within other non-current liabilities

     (260     (211

- Accrued pension cost within accrued liabilities

     (10     (9
  

 

 

   

 

 

 

Total

     (257     (195

Accumulated benefit obligation

    

Accumulated benefit obligation for all Company-dedicated benefit pension plans

     364        299   

Plans with assets less than accumulated benefit obligation

    

Funded plans with assets less than accumulated benefit obligation

    

- Fair value of plan assets

     24        22   

- Accumulated benefit obligations

     65        60   

- Projected benefit obligations

     85        79   

Unfunded plans

    

- Accumulated benefit obligations

     174        140   

- Projected benefit obligations

     194        153   

Amounts recognized in accumulated other comprehensive income (before tax)

    

Total AOCI at beginning of year

     (30     (21

- Net actuarial loss (gain)

     52        (9

- Prior service cost (credit)

     —          (1

- Exchange rate differences

     —          1   
  

 

 

   

 

 

 

Total AOCI at end of year

     22        (30

Changes in accumulated other comprehensive income (before tax) consist of

    

Total net actuarial loss (gain) at beginning of year

     (30     (22

- Net actuarial loss (gain) arising during the year

     52        (9

- Net actuarial (loss) gain recognized in income during the year

     —          —     

- Exchange rate difference

     —          1   
  

 

 

   

 

 

 

Total net actuarial loss (gain) at end of year

     22        (30

Total prior service cost (credit) at beginning of year

     —          1   

- Prior service cost (credit) arising during the year

     —          (1
  

 

 

   

 

 

 

Total prior service cost (credit) at end of year

     —          —     
Summary of Weighted Average Assumptions Used to Calculate Projected Benefit Obligations and Net Periodic Pension Cost

The weighted average assumptions used to calculate the projected benefit obligations were as follows:

 

     2012     2011  

Discount rate

     3.5     4.4

Rate of compensation increase

     2.4     3.1

The weighted average assumptions used to calculate the net periodic pension cost were as follows:

 

     2012     2011     2010  

Discount rate

     4.4     4.3     4.8

Expected returns on plan assets

     4.1     4.2     4.3

Rate of compensation increase

     3.1     3.1     3.0
Components of Net Periodic Pension Costs

The components of net periodic pension costs were as follows:

 

     2012     2011     2010  

Service cost

     11        12        12   

Interest cost on the projected benefit obligation

     14        15        15   

Expected return on plan assets

     (6     (6     (6

Amortization of prior service cost

     —          —          —     

Amortization of net (gain) loss

     —          —          (1

Curtailments & settlements

     (2     (1     (1

Other

     1        —          1   
  

 

 

   

 

 

   

 

 

 

Net periodic cost

     18        20        20   
Summary of Actual Pension Plan Asset Allocation

The actual pension plan asset allocation at December 31, 2012 and 2011 is as follows:

 

     2012     2011  

Asset category:

    

Equity securities

     26     21

Debt securities

     58     64

Insurance contracts

     3     4

Other

     13     11
  

 

 

   

 

 

 
     100     100
Classification of Pension Plan Assets

The following table summarizes the classification of these assets.

 

     2012      2011  
     Level I      Level II      Level III      Level I      Level II      Level III  

Equity securities

     3         38         —           1         29         —     

Debt securities

     20         68         —           17         71         —     

Other

     13         4         3         7         5         4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     36         110         3         25         105         4  
Summary of Estimated Future Pension Benefit Payments

The following benefit payments are expected to be made (including those for funded plans):

 

2013

     16   

2014

     13   

2015

     15   

2016

     14   

2017

     14   

Years 2018-2022

     95