Burger King 2011 Annual Report Download - page 112

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Table of Contents
BURGER KING HOLDINGS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(b) Securities held in common commingled trust funds
(c) Other securities held in common commingled trust funds including interest rate swaps and foreign currency contracts
We categorize plan assets within a three level fair value hierarchy as described in Note 2. Pooled funds are primarily classified as Level 2 and are valued
using net asset values of participation units held in common collective trusts, as reported by the managers of the trusts and as supported by the unit prices of
actual purchase and sale transactions. As of June 30, 2010, the fair value of plan assets for U.S. Pension Plans was $109.7 million and for International Pension
Plans was $18.3 million.
The investment objective for the U.S. Pension Plans and International Pension Plans is to secure the benefit obligations to participants while minimizing
our costs. The goal is to optimize the long-term return on plan assets at an average level of risk. The portfolio of equity securities, currently targeted at 60% for
U.S. Pension Plan and 70% for International Plan, includes primarily large-capitalization companies with a mix of small-capitalization U.S. and foreign
companies well diversified by industry. The portfolio of fixed income asset allocation, currently targeted at 40% for U.S. Plan and 30% for International Plan, is
actively managed and consists of long duration fixed income securities primarily in U.S. debt markets and non — U.S. bonds with long-term maturities that help
to reduce exposure to interest variation and to better correlate asset maturities with obligations.
Estimated Future Cash Flows
Total contributions to the U.S. Pension Plans and International Pension Plans were $6.2 million for 2011, $0.2 million for the period October 19, 2010 to
December 31, 2010, $0.4 million for the period July 1, 2010 to October 18, 2010, $3.5 million for Fiscal 2010 and $25.7 million for Fiscal 2009.
The U.S. and International Pension Plans’ and U.S. Retiree Medical Plan’s expected contributions to be paid in the next year, the projected benefit
payments for each of the next five years and the total aggregate amount for the subsequent five years are as follows:
U.S. Pension
Plans
International
Pension Plans
U.S. Retiree
Medical Plan*
Estimated Net Contributions During Year Ended 2012 $ 8.3 $ 0.6 $ —
Estimated Future Year Benefit Payments During Years Ended December 31,:
2012 $ 8.1 $ 0.1 $ 1.1
2013 $ 7.6 $ 0.2 $ 1.1
2014 $ 8.2 $ 0.3 $ 1.1
2015 $ 8.3 $ 0.3 $ 1.0
2016 $ 8.7 $ 0.3 $ 1.1
2017 — 2021 $ 53.9 $ 2.6 $ 6.4
* Net of Part D Subsidy
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Source: Burger King Holdings Inc, 10-K, March 14, 2012 Powered by Morningstar® Document Research℠