Kroger 2015 Annual Report Download - page 140

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A-66
The following table provides the projected benefit obligation (“PBO”), accumulated benefit obligation
(“ABO”) and the fair value of plan assets for all Company-sponsored pension plans.
Qualified Plans
Non-Qualified
Plans
2015 2014 2015 2014
PBO at end of fiscal year $3,922 $4,102 $290 $304
ABO at end of fiscal year $3,786 $3,947 $280 $297
Fair value of plan assets at end of year $3,045 $3,189 $ — $ —
The following table provides information about the Company’s estimated future benefit payments.
Pension
Benefits
Other
Benefits
2016 $ 234 $ 15
2017 $ 221 $ 16
2018 $ 230 $ 17
2019 $ 238 $ 18
2020 $ 248 $ 19
2021 – 2025 $1,346 $105
The following table provides information about the weighted average target and actual pension plan
asset allocations.
Target
allocations
Actual
Allocations
2015 2015 2014
Pension plan asset allocation
Global equity securities 16.0% 14.9% 13.4%
Emerging market equity securities 5.4 5.2 5.8
Investment grade debt securities 13.1 11.3 11.2
High yield debt securities 12.1 11.9 12.5
Private equity 5.2 7.4 6.6
Hedge funds 34.6 36.0 37.5
Real estate 3.4 3.9 3.5
Other 10.2 9.4 9.5
Total 100.0% 100.0% 100.0%
Investment objectives, policies and strategies are set by the Pension Investment Committees (the
“Committees”) appointed by the CEO. The primary objectives include holding and investing the assets
and distributing benefits to participants and beneficiaries of the pension plans. Investment objectives
have been established based on a comprehensive review of the capital markets and each underlying
plan’s current and projected financial requirements. The time horizon of the investment objectives is
long-term in nature and plan assets are managed on a going-concern basis.
Investment objectives and guidelines specifically applicable to each manager of assets are
established and reviewed annually. Derivative instruments may be used for specified purposes, including
rebalancing exposures to certain asset classes. Any use of derivative instruments for a purpose or in a
manner not specifically authorized is prohibited, unless approved in advance by the Committees.