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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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 us or local regulations. The investment manager evaluates performance by comparing
the actual rate of return to the return on other 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 in order to
reduce market risk and assure that the pension assets are available to pay benefits as they come due. The average expected
long-term rate of return for the non-U.S. plan assets is 6.1%.
Non
-U.S. plan assets measured at fair value on a recurring basis consisted of the following investment categories as of
December 26, 2009:
The table below presents a reconciliation for the non-U.S. plan assets measured at fair value on a recurring basis using
significant unobservable inputs (Level 3) for 2009:
The target allocation of the non-U.S. plan assets that we have control over is 65% equity securities and 35% fixed-income
instruments.
91
Fair Value Measured at
Reporting Date Using
(In Millions)
Level 1
Level 2
Level 3
Total
Equity securities:
Global equities
1
$
149
$
60
$
—
$
209
Real estate
—
7
14
21
Non
-
U.S.
venture capital
—
—
2
2
Fixed income:
Non
-
U.S.
government bonds
—
116
—
116
Investments held by insurance companies
2
—
167
—
167
Insurance contracts
2
—
—
25
25
Total assets measured at fair value
$
149
$
350
$
41
$
540
Cash
12
Total
non
-
U.S.
plan assets at fair value
$
552
1
The majority of the assets in this category are invested in a diversified mix of equities of developed countries, including
the U.S., and emerging markets throughout the world.
2
Investment assets managed by qualified insurance companies are invested as part of the insurance companies
’ general
fund. We do not have control over the target allocation or visibility of the investment strategies of these investments.
Insurance contracts and investments held by insurance companies made up 35% of total
non-U.S. plan assets as of
December 26, 2009 (36% as of December 27, 2008).
Non
-
U.S.
Venture
Insurance
(In Millions)
Real Estate
Capital
Contracts
Balance as of December 27, 2008
$
16
$
4
$
Realized and unrealized return on plan assets
(4
)
(2
)
1
Purchases, sales, and settlements, net
2
—
1
Balance as of December 26, 2009
$
14
$
2
$