Mondelez 2014 Annual Report Download - page 91

Table of Contents
For our non-U.S. plans, 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 35% equity
securities (including investments in real estate), approximately 50% fixed-income securities and approximately 15% other
alternative securities. Our investment strategy for our largest non-U.S. plan, which comprises 50% of our non-U.S. pension assets,
is designed to balance risk and return by diversifying across a wide range of return-seeking and liability matching assets, invested
in a range of both active and passive mandates. We target an allocation of approximately 15% in equity securities, 18% credit, 13%
private markets, 16% other diversifying assets, and 38% liability matching assets. The strategy uses actively managed and indexed
global developed and emerging market equities, actively managed global investment grade and alternative credit, global private
equity and real estate, other diversifying assets including hedge funds, and other liability matching assets including a buy-
in annuity
policy. During 2013, the level of diversification was strategically increased by reducing the plan’s equity exposure by approximately
10% and investing the majority of the proceeds in hedge funds and other diversifying assets.
Employer Contributions:
In 2014, we contributed $11 million to our U.S. pension plans and $334 million to our non-U.S. pension plans. In addition,
employees contributed $19 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.
In 2015, we estimate that our pension contributions will be $210 million to our U.S. plans and $319 million to our non-U.S. plans
based on current tax laws. Of the total 2015 pension contributions, $200 million 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, 2014 were (in millions):
Multiemployer Pension Plans:
We made contributions to multiemployer pension plans of $32 million in 2014, $32 million in 2013 and $30 million in 2012. 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, 2014:
Our contributions exceeded 5% of total contributions to the Bakery and Confectionery Union and Industry International Pension
Fund (the “Fund”) for fiscal years 2014, 2013 and 2012. Our contributions to the Fund were $25 million in 2014, $26 million in 2013
and $25 million in 2012. Our contribution to the Fund is based on our contribution rates under our collective bargaining agreements,
the number of our eligible employees and Fund surcharges. We expect our contribution for the next year to be approximately $30
million under the current collective bargaining arrangements. The Fund’s actuarial valuation has been completed and the zone
status was changed to “Red” in 2012. As a result of this certification, we are being charged a 10% surcharge on our contribution
rates. Our expected future contributions include the surcharge. The Fund adopted a rehabilitation plan on November 7, 2012 that
requires contribution increases and reduction to benefit provisions.
Our contributions to other multiemployer pension plans that were not individually significant were $7 million in 2014, $6 million in
2013 and $5 million in 2012. These contributions include contributions related to Kraft Foods Group employees who participated in
our multiemployer pension plans through October 1, 2012 of $2 million in 2012.
88
Year ending:
2015
2016
2017
2018
2019
2020
-
2024
U.S. Plans
$
73
$
82
$
89
$
99
$
114
$
593
Non-U.S. Plans
$
434
$
437
$
451
$
462
$
476
$
2,569
Expiration Date
Pension
FIP / RP
of Collective
-
EIN / Pension
Protection Act
Status Pending /
Surcharge
Bargaining
Pension Fund
Plan Number
Zone Status
Implemented
Imposed
Agreements
Bakery and Confectionery
Union and Industry International
Pension Fund
526118572
Red
Implemented
Yes
2/29/2016