Unless otherwise provided by local law, contributions are invested as follows. For worldwide profit sharing earned by eligible participants in 1993 and prior, the contributions have been invested in TI common stock. Subsequent to 1993, certain changes to the profit sharing plans have been made to align them more closely with applicable industry practices. For profit sharing earned by U.S. employees in 1994 and thereafter, several investment options in addition to TI common stock have been made available. Except in the event of company contributions in stock, investments in TI common stock are made by the trustees through purchases of outstanding shares or through purchases of shares offered from time to time by the company.
Contributions are subject to statutory limitations.
The contributions may be invested in several investment funds including TI common stock. The board of directors of the company has expressed an intent to make such amendments in the future, circumstances permitting, and the expected effects of such amendments have been considered in calculatingU.S. pension expense. Plan assets consist primarily of common stock, U.S. government obligations, commercial paper and real estate. Retirement coverage for non-U.S. employees of the company is provided, to the extent deemed appropriate, through separate plans. Retirement benefits are based on years of service and employee's compensation, generally during a fixed number of years immediately prior to retirement.