Burger King 2012 Annual Report Download - page 110

Table of Contents
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
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The fair value of the major categories of pension plan assets for U.S. and International Pension Plans at December 31, 2012 is presented below (in
millions):
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
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

 

Cash and Cash equivalents(a) $1.4 $ 0.5 $1.0 $ —
Equity Securities(b):
U.S. 70.1 4.3 64.4 3.6
Non—U.S. 18.1 12.0 13.3 10.5
Fixed Income(b) :
Corporate Bonds and Notes 34.1 — 24.9 —
U.S. Government Treasuries 12.3 — 6.2 —
International Debt 0.1 — 7.6 —
Mortgage-Backed Securities 3.2 — 1.3 —
U.S. Government Agencies 0.5 — 2.3 —
Asset-Backed Securities 1.9 — 0.3 —
Municipal Bonds 0.1 — 3.1 —
Non- U.S. Bonds 3.6 6.4 0.8 6.6
Other(c) — 0.1 3.8 0.4
Total fair value of plan assets $145.4 $ 23.3 $ 129.0 $ 21.1
(a) Short-term investments in money market funds and short term receivables for investments sold
(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.
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 Pension 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. Pension Plan and 30% for
International Pension 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.
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Source: Burger King Worldwide, Inc., 10-K, February 22, 2013 Powered by Morningstar® Document Research℠
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