Intel 2013 Annual Report Download - page 93

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U.S. Postretirement Medical Plan Assets
In general, the investment strategy for U.S. postretirement medical benefits plan assets is to invest primarily in liquid
assets due to the level of expected future benefit payments. In 2012, we modified the investment strategy for plan
assets from investing solely in a money market account to investing in a tax-aware global equity portfolio, which is
actively managed by an external investment manager. The tax-aware global equity portfolio is comprised of a
diversified mix of equities in developed countries, including the U.S., and emerging markets throughout the world.
The expected long-term rate of return for the U.S. postretirement medical benefits plan assets is 7.4%. As of
December 28, 2013, substantially all of the U.S. postretirement medical benefits plan assets were invested in
exchange-traded equity securities and were measured at fair value using Level 1 inputs.
Concentrations of Risk
We manage a variety of risks, including market, credit, and liquidity risks, across our plan assets through our
investment managers. We define a concentration of risk as an undiversified exposure to one of the aforementioned
risks that unnecessarily increases the exposure to a loss of plan assets. We monitor exposure to such risks in both
the U.S. and non-U.S. plans by monitoring the magnitude of the risk in each plan and diversifying our exposure to
such risks across a variety of instruments, markets, and counterparties. As of December 28, 2013, we did not have
concentrations of risk in any single entity, manager, counterparty, sector, industry, or country.
Funding Expectations
Under applicable law for the U.S. Intel Minimum Pension Plan and the U.S. postretirement medical benefits plan,
we are not required to make any contributions during 2014. Our expected required funding for the non-U.S. plans
during 2014 is approximately $62 million.
Estimated Future Benefit Payments
Estimated benefit payments over the next 10 fiscal years are as follows:
(In Millions) U.S. Pension Benefits
Non-U.S.
Pension
Benefits
U.S.
Postretirement
Medical
Benefits
2014 $ 42 $ 33 $ 23
2015 $ 51 $ 32 $ 22
2016 $ 63 $ 32 $ 24
2017 $ 71 $ 36 $ 22
2018 $ 88 $ 38 $ 21
2019-2023 $ 691 $ 219 $ 99
Note 18: Commitments
A portion of our capital equipment and certain facilities are under operating leases that expire at various dates
through 2028. Additionally, portions of our real property are under leases that expire at various dates through 2062.
Rental expense was $270 million in 2013 ($214 million in 2012 and $178 million in 2011).
Minimum rental commitments under all non-cancelable leases with an initial term in excess of one year were as
follows as of December 28, 2013:
(In Millions)
2014 $ 208
2015 172
2016 126
2017 97
2018 69
2019 and thereafter 198
Total $ 870
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INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)