Tyson Foods 2015 Annual Report Download - page 78
Download and view the complete annual report
Please find page 78 of the 2015 Tyson Foods annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.PlanAssets
Thefollowingtablesetsforththeactualandtargetassetallocationforpensionplanassets:
2015
2014
TargetAsset
Allocation
Cash 0.3%
4.9%
—%
FixedIncomeSecurities 85.4
80.5
86.0
UnitedStatesStockFunds 3.9
6.0
4.0
InternationalStockFunds 6.8
6.2
6.5
RealEstate 3.6
2.0
3.5
Other —
0.4
—
Total 100.0%
100.0%
100.0%
Additionally,oneofourforeignsubsidiarypensionplanshad$14millionand$15millioninplanassetsheldinaninsurancetrustatOctober3,2015,and
September27,2014,respectively.
Theplantrusteeshaveestablishedasetofinvestmentobjectivesrelatedtotheassetsofthedomesticpensionplansandregularlymonitortheperformanceofthe
fundsandportfoliomanagers.Objectivesforthepensionassetsare(i)toprovidegrowthofcapitalandincome,(ii)toachieveatargetweightedaverageannualrate
ofreturncompetitivewithfundswithsimilarinvestmentobjectivesand(iii)todiversifytoreducerisk.Thetargetassetallocationsarebaseduponthefunded
statusoftheplans.Aspensionobligationsbecomebetterfunded,wewilllowerriskbyincreasingtheallocationtofixedincome.
Asnotedintheprevioustable,onanaggregatefairvaluebasis,theplanassetsarecurrentlyatapproximately85%fixedincomesecuritiesand11%equity
securities.Fixedincomesecuritiescaninclude,butarenotlimitedto,directbondinvestments,andpooledorindirectbondinvestments.Otherinvestmentsmay
include,butarenotlimitedto,internationalanddomesticequities,realestate,commoditiesandprivateequity.Derivativeinstrumentsmayalsobeusedinconcert
witheitherfixedincomeorequityinvestmentstoachievedesiredexposureortohedgecertainrisks.Derivativeinstrumentscaninclude,butarenotlimitedto,
futures,options,swapsorswaptions.WebelievetherearenosignificantconcentrationsofriskwithinourplanassetsasofOctober3,2015.
Thefollowingtablesshowthecategoriesofpensionplanassetsandthelevelunderwhichfairvaluesweredeterminedinthefairvaluehierarchy,whichis
describedinNote13:FairValueMeasurements.
inmillions
October3,2015 Level1
Level2(a)
Level3(b)
Total
Cashandcashequivalents $ 5
$ —
$ —
$ 5
FixedIncomeSecurities:
Bondandfixedincomefunds —
1,334
—
1,334
Totalfixedincomesecurities —
1,334
—
1,334
EquitySecurities:
UnitedStatessecuritiesfunds —
61
—
61
Non-UnitedStatessecuritiesfunds —
106
—
106
Globalrealestatefunds —
56
—
56
Totalequitysecurities —
223
—
223
Insurancecontractatcontractvalue —
—
14
14
Totalplanassets $ 5
$ 1,557
$ 14
$ 1,576
76