Intel 2013 Annual Report Download - page 92

87
U.S. Intel Minimum Pension Plan assets measured at fair value on a recurring basis consisted of the following
investment categories at the end of each period were as follows:
December 28, 2013 Dec 29,
2012
Fair Value Measured at Reporting Date Using
(In Millions) Level 1 Level 2 Level 3 Total Total
Equity securities $ 15 $ 205 $ — $ 220 $ 92
Fixed income 88 255 72 415 582
Other investments 11 — — 11 —
Total assets measured at fair value $ 114 $ 460 $ 72 $ 646 $ 674
Cash 310
Total U.S. pension plan assets at fair value $ 649 $ 684
A substantial majority of the fixed income investments in the preceding table are corporate bonds, government
bonds, and asset-backed securities. Corporate bonds include both U.S. and non-U.S. bonds with the majority held
in high-quality bonds. Government bonds include bonds issued or deemed to be guaranteed by government entities
and include instruments such as non-U.S. government bonds, U.S. Treasury securities, and U.S. agency securities.
The Level 3 investments relate to our asset-backed securities, as we used unobservable inputs to the valuations
that were significant to the fair value measurements.
Non-U.S. Plan Assets
The investments of the non-U.S. plans are managed by insurance companies, third-party trustees, or pension
funds, consistent with regulations or market practice of the country where the assets are invested. The investment
manager makes investment decisions within the guidelines set by Intel or local regulations. The investment
manager evaluates performance by comparing the actual rate of return to the return on similar assets. Investments
managed by qualified insurance companies or pension funds under standard contracts follow local regulations, and
we are not actively involved in their investment strategies. For the assets that we have discretion to set investment
guidelines, the assets are invested in developed country equities and fixed-income debt instruments, either through
index funds or direct investment. In general, the investment strategy is designed to accumulate a diversified
portfolio among markets, asset classes, or individual securities to reduce market risk and to assure that the pension
assets are available to pay benefits as they come due. The target allocation of the non-U.S. plan assets that we
have control over is 80% equity securities and 20% fixed-income instruments. The average expected long-term rate
of return for the non-U.S. plan assets is 5.7%.
Non-U.S. plan assets measured at fair value on a recurring basis consisted of the following investment categories at
the end of each period were as follows:
December 28, 2013 Dec 29,
2012
Fair Value Measured at Reporting Date Using
(In Millions) Level 1 Level 2 Level 3 Total Total
Equity securities $ 287 $ 63 $ 11 $ 361 $ 248
Fixed income — 521 33 554 574
Total assets measured at fair value $ 287 $ 584 $ 44 $ 915 $ 822
Cash 90 16
Total non-U.S. plan assets at fair value $ 1,005 $ 838
Substantially all of the equity securities in the preceding table are invested in a diversified mix of equities of
developed countries, including the U.S., and emerging markets throughout the world.
The majority of the fixed income securities in the preceding table are investments held by insurance companies and
insurance contracts that are managed by qualified insurance companies. We do not have control over the target
allocation or visibility of the investment strategies of those investments. Insurance contracts and investments held
by insurance companies made up 38% of total non-U.S. plan assets as of December 28, 2013 (40% as of
December 29, 2012).
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INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)