Inventory Accounting Policy
Inventories are stated at the lower of cost or estimated net realizable value. Cost is generally computed on a currently adjusted standard cost basis, which approximates costs on a first-in first-out basis. Standard costs are based on the normal utilization of installed factory capacity. Costs associated with underutilization of capacity are expensed as incurred. Inventory held at consignment locations is included in Texas Instruments's finished goods inventory, as Texas Instruments retains full title and rights to the product.
Texas Instruments reviews inventory quarterly for salability and obsolescence. A specific allowance is provided for inventory considered unlikely to be sold. Remaining inventory includes a salability and obsolescence allowance based on an analysis of historical disposal activity. Texas Instruments writes off inventory in the period in which disposal occurs.
Source: Texas Instruments Inc., Annual Report
Inventory Disclosure
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Texas Instruments Inc., Statement of Financial Position, Inventory
Source: Based on data from Texas Instruments Inc. Annual Reports
| Item |
Description |
The company |
| Raw materials and purchased parts |
Carrying amount as of the balance sheet date of unprocessed items to be consumed in the manufacturing or production process. Also includes purchased parts that will be used as components of a finished product. |
Texas Instruments Inc.'s raw materials and purchased parts declined from 2008 to 2009 but then increased from 2009 to 2010 exceeding 2008 level.
|
| Work in process |
Carrying amount as of the balance sheet date of merchandise or goods which are partially completed, are generally comprised of raw materials, labor and factory overhead costs, and which require further materials, labor and overhead to be converted into finished goods, and which generally require the use of estimates to determine percentage complete and pricing. |
Texas Instruments Inc.'s work in process declined from 2008 to 2009 but then increased from 2009 to 2010 exceeding 2008 level.
|
| Finished goods |
Carrying amount as of the balance sheet date of merchandise or goods held by the company that are readily available for sale. |
Texas Instruments Inc.'s finished goods declined from 2008 to 2009 but then increased from 2009 to 2010 exceeding 2008 level.
|
| Inventories |
Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other allowances. Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer). |
Texas Instruments Inc.'s inventories declined from 2008 to 2009 but then increased from 2009 to 2010 exceeding 2008 level.
|
This company is transferred to the archive: financial data is no longer updated!
