Mondelez 2012 Annual Report Download - page 86

Table of Contents
Our investment strategy is based on our expectation that equity securities will outperform fixed-income securities over the long
term. We attempt to maintain our target asset allocation by rebalancing between asset classes as we make contributions and
monthly benefit payments. Due to the nature and timing of our expected pension liabilities, approximately 60% of our U.S. plan
assets are in equity securities and approximately 40% are in fixed-income securities. The strategy uses indexed U.S. equity
securities, actively managed and indexed international equity securities and actively managed U.S. investment grade fixed-income
securities (which constitute 95% or more of fixed-income securities) with lesser allocations to high yield fixed-income securities.
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 approximately 40% equity
securities, approximately 50% fixed-income securities and approximately 10% real estate / other. The other asset balance of our
non-U.S. plans at December 31, 2012 primarily related to $262 million in hedge funds and $211 million in private equity
investments.
Employer Contributions:
In 2012, we contributed $349 million to our U.S. pension plans (including $202 million related to Kraft Foods Group U.S. pension
plans) and $329 million to our non-U.S. pension plans (including $42 million related to Kraft Foods Group non-U.S. pension plans).
In addition, employees contributed $24 million to our non-U.S. plans. Of our 2012 pension contributions, $315 million was voluntary
(including $185 million related to Kraft Foods Group pension 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.
In 2013, we estimate that our pension contributions will be $8 million to our U.S. plans and $309 million to our non-
U.S. plans based
on current tax laws. We are currently only required to make a nominal cash contribution to our U.S. qualified pension plans under
the Pension Protection Act of 2006. Of the total 2013 pension contributions, none is expected to be voluntary. Our actual
contributions may be different due to many factors, including changes in tax and other benefit laws; significant differences between
expected and actual pension asset performance or interest rates; or other factors.
Future Benefit Payments:
The estimated future benefit payments from our pension plans at December 31, 2012 were (in millions):
Multiemployer Pension Plans:
We made contributions to multiemployer pension plans of $30 million in 2012, $32 million in 2011 and $30 million in 2010. These
plans provide pension benefits to retirees under certain collective bargaining agreements. The following is the only individually
significant multiemployer plan we participate in as of December 31, 2012:
83
2013 2014 2015 2016 2017 2018-2022
U.S. Plans
$
62
$
66
$
68
$
80
$
92
$
578
Non-U.S. Plans
396
402
412
419
434
2,313
Pension Fund
EIN / Pension
Plan Number
Pension
Protection Act
Zone Status
FIP / RP
Status Pending /
Implemented
Surcharge
Imposed
Expiration Date
of Collective-
Bargaining
Agreement
Bakery and Confectionery
Union and Industry International
Pension Fund
526118572
Red
Implemented
Yes
2/29/2016