What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2023-02-03 compared with 2022-02-04 · 108 added, 88 removed, 954 unchanged (17% of the section changed)

43 unchanged sentences

Recognized within net income, net of tax effect of ($ 17 ), ($ 8 ) and ($ 9 )

Prior service credit of defined benefit plans:

Prior service cost of defined benefit plans:

Recognized within net income, net of tax effect of $ 0 , $ 0 and $ 0

( 1 ) ( 1 ) ( 1 )

Derivative instruments:

Change in fair value, net of tax effect of $ 0 , $ 0 and $ 0

Available-for-sale investments:

Unrealized losses, net of tax effect of $ 1 , $ 0 and $ 0

Other comprehensive income (loss), net of taxes ( 97 ) 203 ( 13 )

115 unchanged sentences

Dividend equivalents on RSUs — — ( 15 ) — —

Other — ( 1 ) — — —

Balance, December 31, 2021

8 unchanged sentences

Dividend equivalents on RSUs — — ( 18 ) — —

Other — ( 3 ) — — —

Balance, December 31, 2022

3 unchanged sentences

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 design and manufacture semiconductors that we sell to electronics designers and manufacturers all over the world.

We have two reportable segments, Analog and Embedded Processing, each of which represents groups of similar products that are combined on the basis of similar design and development requirements, product characteristics, manufacturing processes and distribution channels.

Our segments also reflect how management allocates resources and measures results.

• Analog semiconductors change real-world signals, such as sound, temperature, pressure or images, by conditioning them, amplifying them and often converting them to a stream of digital data that can be processed by other semiconductors, such as embedded processors.

30 unchanged sentences

Geographic area information

The following geographic area information includes revenue, based on product shipment destination, and property, plant and equipment, based on physical location.

The geographic revenue information does not necessarily reflect end demand by geography because our products tend to be shipped to the locations where our customers manufacture their products.

The following geographic information is based on product shipment destination, which does not reflect end demand by geography.

For Years Ended December 31,

1 unchanged sentence

United States $ 2,267 11 % $ 1,906 10 % $ 1,547 11 %

Asia (a) 12,185 9,541 8,650

China (a) 9,844 49 9,998 55 7,881 54

Rest of Asia 2,633 13 2,187 12 1,660 11

Europe, Middle East and Africa 3,520 18 2,802 15 2,249 16

2 unchanged sentences

Total revenue $ 20,028 100 % $ 18,344 100 % $ 14,461 100 %

(a) Revenue from products shipped into China was $ 10.0 billion, $ 8.0 billion and $ 7.2 billion in 2021, 2020 and 2019, respectively, which includes shipments to customers that manufacture in China and then export end products to their customers around the world, as well as distributors that transship inventory through China to service other countries.

(a) Revenue from products shipped into China includes shipments to customers that manufacture in China and then export end products to their customers around the world, as well as distributors that transship inventory through China to service other countries.

The following additional geographic information includes our estimate for revenue based on the location of our end customers’ headquarters, providing a better representation of the geographic profile for where critical decisions are made.

For Years Ended December 31,

2022 2021 2020

United States $ 6,609 33 % $ 6,237 34 % $ 5,205 36 %

China 4,807 24 4,586 25 3,326 23

Rest of Asia 2,003 10 2,018 11 1,591 11

Europe, Middle East and Africa (a) 4,807 24 3,852 21 3,037 21

Japan 1,602 8 1,468 8 1,157 8

Rest of world 200 1 183 1 145 1

Total revenue $ 20,028 100 % $ 18,344 100 % $ 14,461 100 %

(a) Revenue from end customers headquartered in Germany was 11 %, 9 % and 9 % of total revenue in 2022, 2021 and 2020, respectively.

Property, plant and equipment by geographic area, based on physical location:

Property, plant and equipment:

United States $ 5,134 $ 3,648

Asia (a) 1,292 1,005

China 648 570

Rest of Asia 896 722

Europe, Middle East and Africa 44 47

2 unchanged sentences

Total property, plant and equipment $ 6,876 $ 5,141

(a) Property, plant and equipment at our two sites in the Philippines was $ 370 million and $ 333 million as of December 31, 2021 and 2020, respectively.

Property, plant and equipment at our sites in China was $ 570 million and $ 370 million as of December 31, 2021 and 2020, respectively.

Major customer

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Basis of presentation

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP).

The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP).

The basis of these financial statements is comparable for all periods presented herein.

16 unchanged sentences

These allowances, which are not material, generally include adjustments for pricing arrangements, product returns , incentives and credit losses.

We recognize shipping fees, if any, received from customers in revenue.

We recognize shipping fees received from customers, if any, in revenue.

We include the related shipping and handling costs in cost of revenue.

15 unchanged sentences

Operating lease expense is generally recognized on a straight-line basis over the lease term.

Our lease values include options to extend or not to terminate the lease when it is reasonably certain that we will exercise such options.

Our lease values include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.

We have agreements with lease and non-lease components, which are accounted for as a single lease component.

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We consider investments in available-for-sale 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.

• Other long-term assets – Long-term investments, which are included within other long-term assets on our Consolidated Balance Sheets, consist of mutual funds, venture capital funds and non-marketable equity securities.

Inventories are stated at the lower of cost or estimated net realizable value.

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We write off inventory in the period in which disposal occurs.

Government incentives

Incentives provided by government entities are recognized when we have reasonable assurance that we will comply with the conditions of the incentive, if any, and the incentive will be received.

Incentives related to the acquisition or construction of fixed assets are recognized as a reduction in the carrying amounts of the related assets and reduce depreciation expense over the useful lives of the assets.

Incentives for specific operating activities are offset against the related expense in the period the expense is incurred.

In August 2022, the U.S.

government enacted the U.S.

CHIPS and Science Act, which provides funding for manufacturing grants and research investments, and it establishes a 25% investment tax credit for certain investments in U.S.

semiconductor manufacturing.

As of December 31, 2022, we have recognized $ 395 million of receivables in other long-term assets with a corresponding reduction to the carrying amounts of the qualifying manufacturing assets.

Property, plant and equipment;

5 unchanged sentences

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.

Capitalized software licenses are generally 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.

6 unchanged sentences

We perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying value, including goodwill.

If, as a result of the qualitative assessment, we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then we perform the quantitative goodwill impairment test.

If we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying value, or if we elect not to use the qualitative assessment, then we perform the quantitative goodwill impairment test.

See Note 11 for additional information.

79 unchanged sentences

Stock Options Outstanding

Exercise Price Range Number Outstanding (Shares) Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price per Share

Exercise Price Range Number Outstanding (Shares) Weighted Average Remaining Contractual Life (Years)

$ 32.48 to $ 193.58

25 5.5 $ 91.58

Options Fully Vested and Expected to Vest (a) Options Exercisable

2 unchanged sentences

Weighted average exercise price per share $ 105.25 $ 81.56

Intrinsic value $ 2,408 $ 1,952

Intrinsic value (billions) $ 1.54 $ 1.42

(a) Includes effects of expected forfeitures.

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Tax benefit realized from stock compensation 110 175 195

Reduction to deferred tax asset ( 39 ) ( 44 ) ( 49 )

Excess tax benefit for stock compensation $ 136 $ 151 $ 175

(a) Net of taxes paid for employee shares withheld of $ 50 million, $ 53 million and $ 53 million in 2022, 2021 and 2020, respectively.

17 unchanged sentences

statutory income tax rate 21.0 % 21.0 % 21.0 %

tax benefit for foreign derived intangible income ( 6.1 ) ( 6.1 ) ( 4.9 )

excess tax benefit for stock compensation ( 1.5 ) ( 2.5 ) ( 3.1 )

Foreign derived intangible income ( 7.0 ) ( 6.1 ) ( 6.1 )

R&D tax credit ( 0.9 ) ( 0.9 ) ( 1.3 )

Impact of changes in uncertain tax positions ( 0.2 ) ( 4.0 ) ( 0.1 )

Stock compensation ( 0.7 ) ( 1.5 ) ( 2.5 )

Changes in uncertain tax positions 0.1 ( 0.2 ) ( 4.0 )

Other 0.3 0.6 ( 0.1 )

Effective tax rate 12.8 % 12.9 % 7.0 %

On August 16, 2022, the U.S.

government enacted the Inflation Reduction Act, which introduces a new 15% corporate minimum tax based on adjusted financial statement income effective January 1, 2023, and provisions intended to mitigate climate change, including tax credit incentives for investments that reduce greenhouse gas emissions.

Based on our current analysis of the provisions, this legislation will not have a material impact on our consolidated financial statements.

The earnings represented by non-cash operating assets, such as fixed assets and inventory, will continue to be permanently reinvested outside the United States.

12 unchanged sentences

Deferred tax assets:

Accrued expenses $ 209 $ 180

Capitalized R&D $ 380 $ —

Deferred loss and tax credit carryforwards 201 207

Accrued expenses 182 209

Stock compensation 132 110

19 unchanged sentences

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.

Valuation allowances increased $ 9 million in 2021, decreased $ 1 million in 2020 and increased $ 8 million in 2019.

Valuation allowances increased $ 1 million in 2022, increased $ 9 million in 2021 and decreased $ 1 million in 2020.

These changes had no impact to net income in 2022, 2021 or 2020.

We have no material tax loss carryforwards as of December 31, 2022.

Cash payments made for income taxes, net of refunds, were $ 1.20 billion, $ 720 million and $ 570 million in 2021, 2020 and 2019, respectively.

Cash payments made for income taxes, net of refunds, were $ 1.48 billion, $ 1.20 billion and $ 720 million in 2022, 2021 and 2020, respectively.

Uncertain tax positions

16 unchanged sentences

All of the $ 82 million and $ 69 million liabilities for uncertain tax positions as of December 31, 2022 and 2021, respectively, are comprised of positions that, if recognized, would lower the effective tax rate.

If these liabilities are ultimately realized, $ 2 million of existing deferred tax assets in 2020 would also be realized.

If these liabilities are ultimately realized, no existing deferred tax assets in 2022 or 2021 would also be realized.

Reductions for tax positions of prior years in 2020 include a $ 249 million tax benefit for the effective settlement of a depreciation-related uncertain tax position.

10 unchanged sentences

Our forward foreign currency exchange contracts outstanding as of December 31, 2022, had a notional value of $ 387 million to hedge our non-U.S.

dollar net balance sheet exposures, including $ 127 million to sell Japanese yen, $ 82 million to sell British pounds and $ 42 million to sell euros.

dollar net balance sheet exposures, including $ 118 million to sell Japanese yen, $ 78 million to sell British pounds and $ 49 million to buy Chinese yuan.

Our investments in cash equivalents, short-term investments and certain long-term investments, as well as our deferred compensation liabilities, are carried at fair value.

15 unchanged sentences

Investments measured at fair value

Money market funds, available-for-sale debt investments and mutual funds are stated at fair value, which is generally based on market prices or broker quotes.

Money market funds, debt investments and mutual funds are stated at fair value, which is generally based on market prices or broker quotes.

We classify all debt investments as available-for-sale.

See Fair-value considerations.

Unrealized gains and losses from available-for-sale debt securities are recorded as an increase or decrease, net of taxes, in AOCI on our Consolidated Balance Sheets, and any credit losses on available-for-sale debt securities are recorded as an allowance for credit losses with an offset recognized in OI&E in our Consolidated Statements of Income.

Unrealized gains and losses are recorded as an increase or decrease, net of taxes, in AOCI on our Consolidated Balance Sheets, and any credit losses are recorded as an allowance for credit losses with an offset recognized in OI&E in our Consolidated Statements of Income.

Our mutual funds hold a variety of debt and equity investments intended to generate returns that offset changes in certain deferred compensation liabilities.

1 unchanged sentence

Other investments

Our other investments include equity-method investments and non-marketable equity investments, which are not measured at fair value.

These investments consist of interests in venture capital funds and other non-marketable equity securities.

Our other investments include equity-method investments and non-marketable investments, which are not measured at fair value.

These investments consist of interests in venture capital funds and other non-marketable securities.

Gains and losses from equity-method investments are recognized in OI&E based on our ownership share of the investee’s financial results.

Non-marketable equity securities are measured at cost with adjustments for observable changes in price or impairments.

Gains and losses on non-marketable equity investments are recognized in OI&E.

Non-marketable securities are measured at cost with adjustments for observable changes in price or impairments.

Gains and losses on non-marketable investments are recognized in OI&E.

Details of our investments are as follows:

11 unchanged sentences

Equity-method investments — — 18 — — 42

Non-marketable equity investments — — 4 — — 4

Non-marketable investments — — 5 — — 4

Cash on hand 707 — — 805 — —

Total $ 3,050 $ 6,017 $ 34 $ 4,631 $ 5,108 $ 62

As of December 31, 2021 and 2020, unrealized gains and losses associated with our available-for-sale investments were not material.

We did no t recognize any credit losses related to available-for-sale investments in 2021, 2020 or 2019.

All of our debt securities classified as available for sale as of December 31 , 2021 , have maturities within one year.

In 2021, 2020 and 2019, the proceeds from sales, redemptions and maturities of short-term available-for-sale investments were $ 8.48 billion, $ 5.29 billion and $ 2.31 billion, respectively.

As of December 31, 2022 and 2021, unrealized gains and losses associated with our debt investments were not material.

We did no t recognize any credit losses related to debt investments in 2022, 2021 or 2020.

The following table presents the aggregate maturities of our debt investments as of December 31, 2022:

One year or less $ 7,049

One to two years 73

In 2022, 2021 and 2020, the proceeds from sales, redemptions and maturities of short-term debt investments were $ 13.66 billion, $ 8.48 billion and $ 5.29 billion, respectively.

Gross realized gains and losses from these sales were not material.

39 unchanged sentences

As of December 31, 2022 and 2021, as a result of employees’ elections, TI’s U.S.

defined contribution plans held shares of TI common stock totaling 6 million shares and 7 million shares valued at $ 1.16 billion and $ 1.12 billion, respectively.

Dividends paid on these shares in both 2021 and 2020 were $ 27 million.

defined contribution plans held shares of TI common stock totaling 6 million shares in both periods valued at $ 940 million and $ 1.16 billion, respectively.

Dividends paid on these shares in 2022 and 2021 were $ 28 million and $ 27 million, respectively.

Effective April 1, 2016, the TI common stock fund was frozen to new contributions or transfers into the fund.

Our aggregate expense for the U.S.

defined contribution plans was $ 63 million in 2021 and $ 61 million in 2020 and 2019.

defined contribution plans was $ 70 million in 2022, $ 63 million in 2021 and $ 61 million in 2020.

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.

48 unchanged sentences

Settlements ( 309 ) ( 162 ) — — ( 91 ) ( 12 )

Curtailments — — — — ( 4 ) —

Actuarial loss (gain) ( 97 ) ( 79 ) ( 74 ) ( 18 ) ( 547 ) ( 111 )

Plan amendments — — — — — 1

Effects of exchange rate changes — — — — ( 242 ) ( 152 )

36 unchanged sentences

Defined Benefit Total

Net Actuarial Loss Net Actuarial Loss Prior Service Credit Net Actuarial Loss Prior Service Credit Net Actuarial Loss Prior Service Credit

Net Actuarial Loss Net Actuarial Loss Prior Service Cost Net Actuarial Loss Prior Service Cost Net Actuarial Loss Prior Service Cost

AOCI balance, net of taxes, December 31, 2021

65 unchanged sentences

corporate bonds.

The selected portfolio is designed to provide cash flows sufficient to pay the plan’s expected benefit payments when due.

The selected portfolio is designed to simulate a portfolio that would 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.

47 unchanged sentences

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, 2021, we had a variable-rate revolving credit facility from a consortium of investment-grade banks that allows us to borrow up to $ 2 billion until March 2024.

We maintain a line of credit to provide additional liquidity through bank loans and, if necessary, to support commercial paper borrowings.

As of December 31, 2022, the aforementioned line of credit was a variable-rate, revolving credit facility from a consortium of investment-grade banks that allows us to borrow up to $ 1 billion until March 2023.

The interest rate on borrowings under this credit facility, if drawn, is indexed to the applicable Term Secured Overnight Financing Rate (Term SOFR).

As of December 31, 2022, our credit facility was undrawn, and we had no commercial paper outstanding.

Long-term debt

In April 2022, we retired $ 500 million of maturing debt.

In August 2022, we issued two series of senior unsecured notes for an aggregate principal amount of $ 700 million, consisting of $ 400 million of 3.65 % notes due in 2032 and $ 300 million of 4.10 % notes due in 2052.

We incurred $ 3 million of issuance and other related costs.

The proceeds of the offering were $ 695 million, net of the original issuance discounts, which will be used for general corporate purposes.

In November 2022, we issued two series of senior unsecured notes for an aggregate principal amount of $ 800 million, consisting of $ 300 million of 4.70 % notes due in 2024 and $ 500 million of 4.60 % notes due in 2028.

We incurred $ 3 million of issuance and other related costs.

The proceeds of the offering were $ 799 million, net of the original issuance discounts, which will be used for general corporate purposes.

In February 2021, we retired $ 550 million of maturing debt.

9 unchanged sentences

The proceeds of the offering were $ 749 million, net of the original issuance discount, and were used for general corporate purposes.

In March 2019, we issued a principal amount of $ 750 million of fixed-rate, long-term debt due in 2039.

We incurred $ 7 million of issuance costs.

The proceeds of the offering were $ 743 million, net of the original issuance discount, and were used for general corporate purposes.

In August 2019, we retired $ 750 million of maturing debt.

In September 2019, we issued a principal amount of $ 750 million of fixed-rate, long-term debt due in 2029.

We incurred $ 5 million of issuance costs.

The proceeds of the offering were $ 748 million, net of the original issuance discount, and were used for general corporate purposes.

Long-term debt outstanding is as follows:

12 unchanged sentences

Notes due 2039 at 3.875 %

Notes due 2048 at 4.15 %

Notes due 2051 at 2.70 %

Notes due 2052 at 4.10 %

Total debt 8,800 7,800

4 unchanged sentences

Interest and debt expense was $ 214 million, $ 184 million and $ 190 million in 2022, 2021 and 2020, respectively.

This was net of the amortized discounts, premiums and issuance costs.

This was net of the amortized discounts, premiums and issuance and other related costs.

Cash payments for interest on long-term debt were $ 198 million, $ 181 million and $ 182 million in 2022, 2021 and 2020, respectively.

33 unchanged sentences

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.

Our stated warranties for semiconductor products obligate us to repair, replace or credit the purchase price of a covered product back to the buyer.

Product claim consideration may exceed the price of our products.

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 consolidated financial statements.

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.

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.

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 consolidated financial statements.

Supplemental financial information

7 unchanged sentences

Restructuring charges/other $ 257 $ 54 $ 24

(a) Includes severance and benefits, accelerated depreciation, changes in estimates and other exit costs.

(b) Includes costs related to our purchase of the Lehi, Utah, manufacturing facility, as well as ongoing costs until production begins in early 2023.

(a) Includes severance and benefits, changes in estimates and other exit costs.

(b) Includes costs related to our purchase of the Lehi, Utah, manufacturing facility, as well as preproduction costs before December 2022.

Changes in accrued restructuring balances

2021 2020 2019

Balance, January 1 $ 18 $ — $ 28

Restructuring charges — 25 ( 15 )

Non-cash items (a) — 1 —

Payments ( 13 ) ( 8 ) ( 13 )

Balance, December 31 $ 5 $ 18 $ —

(a) Reflects charges for impacts of changes in exchange rates and accelerated depreciation.

The restructuring accrual balances are reported as a component of either accrued expenses and other liabilities or other long-term liabilities on our Consolidated Balance Sheets, depending on the expected timing of payment.

In 2020, we recognized $ 25 million of restructuring charges primarily for severance and benefit costs associated with our Embedded Processing business.

As of December 31, 2021, $ 21 million of payments have been made.

In 2020, we announced a multiyear plan to close our two remaining factories with 150-millimeter production, located in Sherman and Dallas, Texas.

During 2021 we decided not to close a portion of our factory in Dallas.

We expect this plan to be completed no later than 2025.

Charges for the closures cannot be reasonably estimated at this time.

Other income (expense), net (OI&E)

4 unchanged sentences

Total $ 106 $ 143 $ 313

(a) Other income includes royalty and lease income, investment gains and losses, interest income, as well as reversals of tax interest accruals.

(a) Other income includes interest, royalty and lease income, as well as investment gains and losses and reversals of tax interest accruals.

(b) Other expense includes a portion of pension and other retiree benefit costs, currency gains and losses and miscellaneous items.

5 unchanged sentences

Total $ 9,950 $ 7,858

In October 2021, we completed our purchase of a 300-millimeter semiconductor factory in Lehi, Utah, for cash consideration of $ 893 million.

The estimated fair value of assets acquired was determined based on market comparable information to purchase or build comparable assets and allocated on a relative basis to purchase consideration.

Assets acquired included $ 28 million of land, $ 305 million of buildings and improvements and $ 526 million of machinery and equipment.

Goodwill by segment as of December 31, 2022 and 2021, is as follows:

4 unchanged sentences

In 2022, we elected to perform a qualitative analysis to assess impairment of goodwill rather than to perform the quantitative goodwill impairment test.

The key qualitative factors considered in the assessment included the change in the industry and competitive environment, market capitalization and overall financial performance.

The key qualitative factors considered in the assessment included changes in the industry and competitive environment, market capitalization and overall financial performance.

Based on this qualitative analysis, we determined that it was more likely than not that the fair value of each reporting unit exceeded its carrying value.

In 2022, 2021 and 2020, we determined no impairment was indicated.

Accrued expenses and other liabilities

Accrued construction retainage $ 149 $ 82

Other 497 520

Total $ 646 $ 602

Other long-term liabilities

Long-term portion of transition tax on indefinitely reinvested earnings $ 403 $ 457

Deferred compensation plans 395 350

Operating lease liabilities $ 344 $ 383

Deferred compensation plans 326 395

Long-term portion of transition tax on indefinitely reinvested earnings 302 403

Other 254 186

3 unchanged sentences

Net actuarial loss $ ( 249 ) $ ( 155 )

Prior service credit — 1

Prior service cost ( 1 ) —

Unrealized losses on available-for-sale investments ( 3 ) —

Cash flow hedge derivative instruments ( 1 ) ( 2 )

9 unchanged sentences

Recognized within net income, net of taxes $ 61 $ 29 $ 29 Decrease to net income

Prior service credit of defined benefit plans:

Amortization of prior service credit (a) $ ( 1 ) $ ( 1 ) $ — Increase to OI&E

Prior service cost of defined benefit plans:

Amortization of prior service cost (a) $ ( 1 ) $ ( 1 ) $ ( 1 ) Increase to OI&E

Tax effect — — — Increase to provision for income taxes

42 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data