Kraft 2010 Annual Report Download - page 87

For the plans outside the U.S., the investment strategy is subject to local regulations and the asset / liability profiles of the plans in each individual country.
These specific circumstances result in a level of equity exposure that is typically less than the U.S. plans. In aggregate, the asset allocation targets of our non-
U.S. plans are broadly characterized as a mix of 41% equity securities, 46% fixed-income securities and 13% real estate / other.
We attempt to maintain our target asset allocation by rebalancing between asset classes as we make contributions and monthly benefit payments.
Employer Contributions:
In 2010, we contributed $85 million to our U.S. pension plans and $303 million to our non-U.S. pension plans. In addition, employees contributed $23 million
to our non-U.S. plans. We make contributions to our U.S. and non-U.S. pension plans, primarily, to the extent that they are tax deductible and do not generate
an excise tax liability. Based on current tax law, we plan to make contributions of approximately $540 million to our U.S. plans and approximately
$400 million to our non-U.S. plans in 2011. Of our total 2011 pension contributions, approximately $510 million will be voluntary. However, our actual
contributions may be different due to many factors, including changes in tax and other benefit laws, or significant differences between expected and actual
pension asset performance or interest rates.
Future Benefit Payments:
The estimated future benefit payments from our pension plans at December 31, 2010 were:
U.S. Plans Non-U.S. Plans
(in millions)
2011 $ 484 $ 449
2012 454 461
2013 459 471
2014 450 479
2015 470 499
2016-2020 2,722 2,726
Other Costs:
We sponsor and contribute to employee savings plans. These plans cover eligible salaried, non-union and union employees. Our contributions and costs are
determined by the matching of employee contributions, as defined by the plans. Amounts charged to expense for defined contribution plans totaled $104
million in 2010, $94 million in 2009, and $93 million in 2008.
We also made contributions to multiemployer pension plans totaling $30 million in 2010, $29 million in 2009, and $27 million in 2008.
Postretirement Benefit Plans
Obligations:
Our postretirement health care plans are not funded. The changes in the accrued benefit obligation and net amount accrued at December 31, 2010 and 2009
were:
2010 2009
(in millions)
Accrued
postretirement
benefit obligation
at January 1 $ 3,032 $ 2,899
Service cost 39 35
Interest cost 172 174
Benefits paid (213) (210)
Plan amendments (7) -
Currency 10 25
Assumption
changes 147 157
Actuarial losses /
(gains) 42 (48)
Acquisition 41 -
Accrued
postretirement
health care costs
at December 31 $ 3,263 $ 3,032
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