BB&T 2015 Annual Report Download - page 138

TableofContents
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, 2015, 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, 2015 and 2014 by asset category are reflected in the following tables.
 
       

Cash and cash-equivalents $ 266 $ 266 $ — $ — $ 66 $ 66 $ — $ —
U.S. equity securities 1,627 1,627 — — 1,635 1,635 — —
International equity securities 712 614 98 — 657 539 118 —
Fixed income securities 1,631 10 1,621 — 1,717 10 1,707 —
Alternative investments 115 — — 115 124 — — 124
Total plan assets $ 4,351 $ 2,517 $ 1,719 $ 115 $ 4,199 $ 2,250 $ 1,825 $ 124
U.S. equity securities include 3.0 million shares of BB&T common stock valued at $113 million and $117 million at December 31, 2015 and 2014,
respectively. International equity securities include a common/commingled fund that consists of assets from several accounts, pooled together, to reduce
management and administration costs. Total plan assets exclude accrued income of $18 million and $23 million at December 31, 2015 and 2014,
respectively.
The following table presents the activity for Level 3 plan assets, all of which are in alternative investments:

  

Balance at beginning of year $ 124 $ 101 $ 98
Actual return on plan assets 2 11 11
Purchases, sales and settlements, net (11) 12 (8)
Balance at end of year $ 115 $ 124 $ 101
Defined Contribution Plans
BB&T offers a 401(k) Savings Plan and other defined contribution plans that permit employees to contribute from 1% to 50% of their cash compensation. For
full-time employees who are 21 years of age or older with one year or more of service, BB&T makes matching contributions of up to 6% of the employee's
compensation. BB&T's contribution to the 401(k) Savings Plan and nonqualified defined contribution plans totaled $114 million, $103 million and $102
million for the years ended December 31, 2015, 2014 and 2013, respectively. BB&T also offers defined contribution plans to certain employees of
subsidiaries who do not participate in the 401(k) Savings Plan.
Other Benefits
There are various other employment contracts, deferred compensation arrangements and covenants not to compete with selected members of management and
certain retirees. These plans and their obligations are not material to the financial statements.
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Source: BB&T CORP, 10-K, February 25, 2016 Powered by Morningstar® Document Research℠
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