Prior service credit

[Table of Contents](#ie3b4dd133255408488aec6011c49b801_10)APPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)A summary of the changes in benefit obligations and plan assets, which includes post-retirement benefits, for each fiscal year is presented below: 

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2021 |  | 2020 |  | 2019 |
|  |  |  |  |  |  |
|   | (In millions, except percentages) |
| Change in projected benefit obligation |  |  |  |  |  |
| Beginning projected benefit obligation | $ | 674  |  |  | $ | 617  |  |  | $ | 524  |  |
| Service cost | 15  |  |  | 13  |  |  | 11  |  |
| Interest cost | 8  |  |  | 8  |  |  | 10  |  |
| Plan participants’ contributions | 1  |  |  | 1  |  |  | 1  |  |
| Actuarial (gain) loss | (1) |  |  | 6  |  |  | 84  |  |
| Settlements  | —  |  |  | —  |  |  | (1) |  |
| Foreign currency exchange rate changes | 3  |  |  | 33  |  |  | (5) |  |
| Benefits paid | (15) |  |  | (10) |  |  | (8) |  |
| Plan amendments and other adjustments | —  |  |  | 6  |  |  | 1  |  |
| Ending projected benefit obligation | $ | 685  |  |  | $ | 674  |  |  | $ | 617  |  |
| Ending accumulated benefit obligation | $ | 626  |  |  | $ | 627  |  |  | $ | 578  |  |
| Range of assumptions to determine benefit obligations |  |  |  |  |  |
| Discount rate | 0.6% - 6.6% |  | 0.4% - 6.5% |  | 0.5% - 3.1% |
| Rate of compensation increase | 2.4% - 10.0% |  | 2.3% - 10.0% |  | 2.3% - 3.6% |
| Change in plan assets |  |  |  |  |  |
| Beginning fair value of plan assets | $ | 431  |  |  | $ | 409  |  |  | $ | 365  |  |
| Return on plan assets | 49  |  |  | —  |  |  | 30  |  |
| Employer contributions | 22  |  |  | 12  |  |  | 27  |  |
| Plan participants’ contributions | 1  |  |  | 1  |  |  | 1  |  |
| Foreign currency exchange rate changes | 3  |  |  | 19  |  |  | (5) |  |
| Settlements  | —  |  |  | —  |  |  | (1) |  |
| Benefits paid | (15) |  |  | (10) |  |  | (8) |  |
| Ending fair value of plan assets | $ | 491  |  |  | $ | 431  |  |  | $ | 409  |  |
| Funded status | $ | (194) |  |  | $ | (243) |  |  | $ | (208) |  |
| Amounts recognized in the consolidated balance sheets |  |  |  |  |  |
| Noncurrent asset | $ | 1  |  |  | $ | —  |  |  | $ | 5  |  |
| Current liability | (2) |  |  | (2) |  |  | (1) |  |
| Noncurrent liability | (193) |  |  | (241) |  |  | (212) |  |
| Total | $ | (194) |  |  | $ | (243) |  |  | $ | (208) |  |
| Estimated amortization from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal period |  |  |  |  |  |
| Actuarial loss | $ | 11  |  |  | $ | 14  |  |  | $ | 12  |  |
| Prior service credit | —  |  |  | —  |  |  | —  |  |
| Total | $ | 11  |  |  | $ | 14  |  |  | $ | 12  |  |
| Amounts recognized in accumulated other comprehensive loss |  |  |  |  |  |
| Net actuarial loss | $ | 200  |  |  | $ | 242  |  |  | $ | 226  |  |
| Prior service credit | 1  |  |  | —  |  |  | —  |  |
| Total | $ | 201  |  |  | $ | 242  |  |  | $ | 226  |  |
| Plans with projected benefit obligations in excess of plan assets |  |  |  |  |  |
| Projected benefit obligation | $ | 472  |  |  | $ | 674  |  |  | $ | 424  |  |
| Fair value of plan assets | $ | 277  |  |  | $ | 431  |  |  | $ | 211  |  |
| Plans with accumulated benefit obligations in excess of plan assets |  |  |  |  |  |
| Accumulated benefit obligation | $ | 413  |  |  | $ | 627  |  |  | $ | 385  |  |
| Fair value of plan assets | $ | 277  |  |  | $ | 431  |  |  | $ | 211  |  |

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