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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The Plans' asset allocation policy is reviewed at least annually. Factors considered when determining the appropriate asset
allocation include changes in plan liabilities, an evaluation of market conditions, tolerance for risk and cash requirements for
benefit payments. The investment policy contains allowable ranges in asset mix as outlined in the table below:
Asset Category
U.S. equity securities
International equity securities
U.S. fixed income
Target Range
15% - 25%
5% - 10%
65% - 85%
Based on the increase in funded status and reduction in plan liabilities during 2010 as compared to prior years, the
Investment Committee changed the target asset allocation to approximately 25% equity securities and 75% fixed income
securities in order to protect the existing assets and generate a guaranteed return sufficient to meet the aforementioned
investment objectives.
Fair Value of Plan Assets
The following tables present the major categories of plan assets and the respective fair value hierarchy for the pension plan
assets as of December 31, 2010 and 2009 (in millions):
Cash and cash equivalents
Equity securities(1)
U.S. Large-Cap equities(3)
International equities(3)
Fixed income securities(2)
U.S. Treasuries
U.S. Municipal bonds
U.S. Corporate bonds
International bonds(3)
Total
Fair Value Measurements at December 31, 2010
Total
$6
51
29
1
5
110
32
$ 234
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
$6
—
—
1
5
110
27
$ 149
Significant
Observable
Inputs
(Level 2)
$—
51
29
—
—
—
5
$85
Significant
Unobservable
Inputs
(Level 3)
$—
—
—
—
—
—
—
$—
94