Intel 2014 Annual Report Download - page 94

Download and view the complete annual report

Please find page 94 of the 2014 Intel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 129

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129

INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The substantial majority of the fixed income investments 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 35% of total non-U.S. plan assets as of December 27, 2014 (38% as of December 28, 2013).
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. The assets are invested solely 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 27, 2014, 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 credit, liquidity, and market 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 counterparties,
instruments, and markets. As of December 27, 2014, 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 2015. Our expected required funding for the non-U.S. plans during 2015 is
approximately $69 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
2015 .................................................................... $55$66$14
2016 .................................................................... $54$26$16
2017 .................................................................... $58$31$19
2018 .................................................................... $64$35$21
2019 .................................................................... $64$40$24
2020-2024 ............................................................... $ 327 $ 272 $ 163
89