BB&T 2014 Annual Report Download - page 127

Table of Contents
The following table presents the amount expected to be amortized from AOCI into net periodic pension cost during 2015:
 
 

Net actuarial gain (loss) $ (47) $ (14)
Net amount expected to be amortized in 2015 $ (47) $ (14)
BB&T makes contributions to the qualified pension plan in amounts between the minimum required for funding and the maximum amount deductible for
federal income tax purposes. BB&T made discretionary contributions of $143 million during 2014 and $117 million during the first quarter of 2015.
Management may make additional contributions in 2015. For the nonqualified plans, the employer contributions are based on benefit payments.
The following table reflects the estimated benefit payments for the periods presented:
 
 
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2015 $ 76 $ 11
2016 84 12
2017 93 13
2018 102 14
2019 111 15
2020-2024 719 93
BB&T's primary total return objective is to achieve returns that, over the long term, will fund retirement liabilities and provide for the desired plan benefits in
a manner that satisfies the fiduciary requirements of the Employee Retirement Income Security Act of 1974. The plan assets have a long-term time horizon
that runs concurrent with the average life expectancy of the participants. As such, the Plan can assume a time horizon that extends well beyond a full market
cycle, and can assume an above-average level of risk, as measured by the standard deviation of annual return. It is expected, however, that both professional
investment management and sufficient portfolio diversification will smooth volatility and help to generate a reasonable consistency of return. The
investments are broadly diversified among economic sector, industry, quality and size in order to reduce risk and to produce incremental return. Within
approved guidelines and restrictions, investment managers have wide discretion over the timing and selection of individual investments.
BB&T periodically reviews its asset allocation and investment policy and makes changes to its target asset allocation. BB&T has established guidelines
within each asset category to ensure the appropriate balance of risk and reward. For the year ended December 31, 2014, the target asset allocations for the
plan assets included a range of 30% to 40% for U.S. equity securities, 10% to 18% for international equity securities, 35% to 50% for fixed income securities,
and 0% to 12% for alternative investments, which include real estate, hedge funds, private equities and commodities, with any remainder to be held in cash
equivalents. The plan may hold BB&T common stock up to 10% of its assets, subject to the target range for total U.S. equity securities.
The fair value of the pension plan assets at December 31, 2014 and 2013 by asset category are reflected in the following tables. The three level fair value
hierarchy that describes the inputs used to measure these plan assets is defined in Note 18 "Fair Value Disclosures.”
 
       

Cash and cash-equivalents $ 66 $ 66 $ — $ — $ 74 $ 74 $ — $ —
U.S. equity securities 1,635 1,635 — — 1,701 1,701 — —
International equity securities 657 539 118 — 741 626 115 —
Fixed income securities 1,717 10 1,707 — 1,090 94 996 —
Alternative investments 124 — — 124 101 — — 101
Total plan assets $ 4,199 $ 2,250 $ 1,825 $ 124 $ 3,707 $ 2,495 $ 1,111 $ 101
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Source: BB&T CORP, 10-K, February 25, 2015 Powered by Morningstar® Document Research℠
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