APPLIED MATERIALS INC /DE | 2013 | FY | 3

A summary of the changes in benefit obligations and plan assets, which includes post-retirement benefits, for fiscal 2013 and 2012 is presented below.
 
 
2013
 
2012
 
 
 
 
 
(In millions, except percentages)
Change in projected benefit obligation
 
 
 
Beginning projected benefit obligation
$
434

 
$
303

Service cost
20

 
16

Interest cost
15

 
14

Plan participants’ contributions
1

 
1

Actuarial (gain) loss
(16
)
 
96

Curtailments, settlements and special termination benefits
(8
)
 
(3
)
Foreign currency exchange rate changes
10

 
(4
)
Benefits paid
(10
)
 
(7
)
Plan amendments and business combinations
(1
)
 
18

Ending projected benefit obligation
$
445

 
$
434

Ending accumulated benefit obligation
$
409

 
$
395

Range of assumptions to determine benefit obligations
 
 
 
Discount rate
1.1% - 4.5%

 
1.3% - 4.7%

Rate of compensation increase
2.0% - 4.7%

 
2.0% - 8.0%

Change in plan assets
 
 
 
Beginning fair value of plan assets
$
214

 
$
183

Return on plan assets
18

 
14

Employer contributions
24

 
31

Plan participants’ contributions
1

 
1

Foreign currency exchange rate changes
8

 
(4
)
Divestitures, settlements and business combinations
(7
)
 
(4
)
Benefits paid
(10
)
 
(7
)
Ending fair value of plan assets
$
248

 
$
214

Funded status
$
(197
)
 
$
(220
)
Amounts recognized in the consolidated balance sheets
 
 
 
Noncurrent asset
$
9

 
$
5

Current liability
(4
)
 
(4
)
Noncurrent liability
(202
)
 
(221
)
Total
$
(197
)
 
$
(220
)
Estimated amortization from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year
 
 
 
Actuarial loss
$
4

 
$
6

Prior service cost (credit)
—

 
(1
)
Total
$
4

 
$
5

Amounts recognized in accumulated other comprehensive loss
 
 
 
Net actuarial loss
$
91

 
$
117

Prior service cost (credit)
2

 
(3
)
Total
$
93

 
$
114

Plans with projected benefit obligations in excess of plan assets
 
 
 
Projected benefit obligation
$
438

 
$
428

Fair value of plan assets
$
233

 
$
202

Plans with accumulated benefit obligations in excess of plan assets
 
 
 
Accumulated benefit obligation
$
269

 
$
389

Fair value of plan assets
$
99

 
$
202

 
 
2013
 
2012
Plan assets — allocation
 
 
 
Equity securities
37
%
 
37
%
Debt securities
36
%
 
33
%
Insurance contracts
19
%
 
23
%
Commingled funds
5
%
 
5
%
Cash
3
%
 
2
%

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