ALL » Topics » Pension Plan Assets

This excerpt taken from the ALL 10-K filed Feb 26, 2009.

Pension plan assets

        The pension plans target percentage of plan assets and the actual percentage of plan assets, by asset category at December 31 are as follows:

 
  Target percentage of
plan assets
  Percentage of
plan assets
 
Asset category
  2008   2008   2007  

U.S. equity securities

    47 %   19 %   48 %

International equity securities

    17     9     14  

U.S. government fixed income securities

    19     22     18  

U.S. corporate fixed income securities

    10     27     15  

Real estate

    4     1     4  

Hedge funds

    1     22      

Other

    2         1  
               
 

Total

    100 %   100 %   100 %
               

211


        The expected long-term rate of return on plan assets reflects the average rate of earnings expected on plan assets. This assumption is reviewed annually giving consideration to appropriate financial data including, but not limited to, the plan asset allocation, the period over which benefits will be paid, historical returns on plan assets and other relevant market data. A consistent method was used to determine the expected long-term return on plan assets assumption at December 31, 2008 and 2007 of 8.5%. As of the 2008 measurement date, the arithmetic average of the annual actual return on plan assets for the most recent 10 and 5 years was 3.3% and 4.6%, respectively.

        Pension plan assets did not include any of the Company's common stock at December 31, 2008. At December 31, 2007, pension plan assets included $11 million of the Company's common stock.

        The change in pension plan assets for the years ended December 31 is as follows:

($ in millions)
  2008   2007  

Fair value of plan assets, beginning of year

  $ 5,132   $ 4,636  

Actual return on plan assets

    (1,366 )   760  

Employer contribution

    148     152  

Benefits paid

    (444 )   (455 )

Translation adjustment and other

    (71 )   39  
           

Fair value of plan assets, end of year

  $ 3,399   $ 5,132  
           
These excerpts taken from the ALL 10-K filed Feb 27, 2008.

Pension Plan Assets

        The pension plans target percentage of plan assets at 2007 and the actual percentage of plan assets, by asset category at December 31 are as follows:

 
  Target percentage of
plan assets

  Percentage of
plan assets

 
Asset Category

 
  2007
  2007
  2006
 
U.S. equity securities   47 % 48 % 50 %
International equity securities   15   14   14  
U.S. Government fixed income securities   19   18   16  
U.S. corporate fixed income securities   12   15   14  
Real estate   4   4   3  
Other   3   1   3  
   
 
 
 
  Total   100 % 100 % 100 %
   
 
 
 

214


        The expected long-term rate of return on plan assets reflects the average rate of earnings expected on plan assets. This assumption is reviewed annually giving consideration to appropriate financial data including, but not limited to, the plan asset allocation, the period over which benefits will be paid, historical returns on plan assets and other relevant market data. A consistent method was used to determine the expected long-term return on plan assets assumption at December 31, 2007 and 2006 of 8.5%. As of the 2007 measurement date, the arithmetic average of the annual actual return on plan assets for the most recent 10 and 5 years was 9.1% and 13.7%, respectively.

        Pension plan assets include $11 million and $12 million of the Company's common stock at December 31, 2007 and 2006. No plan assets are expected to be returned to the Company during 2008.

        The change in pension plan assets for the years ended December 31 is as follows:

($ in millions)
  2007
  2006
 
Fair value of plan assets, beginning of year   $ 4,636   $ 4,487  
Actual return on plan assets     760     571  
Employer contribution     152     134  
Benefits paid     (455 )   (542 )
Translation adjustment and other     39     (14 )
   
 
 
Fair value of plan assets, end of year   $ 5,132   $ 4,636  
   
 
 

Pension Plan Assets



        The pension plans target percentage of plan assets at 2007 and the actual percentage of plan assets, by asset category at December 31 are as follows:





















































































































 
 Target percentage of

plan assets

 Percentage of

plan assets

 
Asset Category

 
 2007
 2007
 2006
 
U.S. equity securities 47%48%50%
International equity securities 15 14 14 
U.S. Government fixed income securities 19 18 16 
U.S. corporate fixed income securities 12 15 14 
Real estate 4 4 3 
Other 3 1 3 
  
 
 
 
 Total 100%100%100%
  
 
 
 



214









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        The expected long-term rate of return on plan assets reflects the average rate of earnings expected on plan assets. This assumption is reviewed annually giving consideration to
appropriate financial data including, but not limited to, the plan asset allocation, the period over which benefits will be paid, historical returns on plan assets and other relevant market data. A
consistent method was used to determine the expected long-term return on plan assets assumption at December 31, 2007 and 2006 of 8.5%. As of the 2007 measurement date, the arithmetic average of
the annual actual return on plan assets for the most recent 10 and 5 years was 9.1% and 13.7%, respectively.



        Pension
plan assets include $11 million and $12 million of the Company's common stock at December 31, 2007 and 2006. No plan assets are expected to be returned to
the Company during 2008.



        The
change in pension plan assets for the years ended December 31 is as follows:

























































































($ in millions)
 2007
 2006
 
Fair value of plan assets, beginning of year $4,636 $4,487 
Actual return on plan assets  760  571 
Employer contribution  152  134 
Benefits paid  (455) (542)
Translation adjustment and other  39  (14)
  
 
 
Fair value of plan assets, end of year $5,132 $4,636 
  
 
 




This excerpt taken from the ALL 10-K filed Feb 22, 2007.

Pension Plan Assets

        The pension plans target percentage of plan assets at 2006 and the actual percentage of plan assets, by asset category at December 31 are as follows:

 
  Target percentage of
plan assets

  Percentage of
plan assets

 
Asset Category

 
  2006
  2006
  2005
 
Equity securities   64 % 64 % 66 %
Fixed income securities   30   30   32  
Real estate   3   3   1  
Other   3   3   1  
   
 
 
 
  Total   100 % 100 % 100 %
   
 
 
 

        The expected long-term rate of return on plan assets reflects the average rate of earnings expected on plan assets. This assumption is reviewed annually giving consideration to appropriate financial data including, but not limited to, the plan asset allocation, the period over which benefits will be paid, historical returns on plan assets and other relevant market data. A consistent method was used to determine the long-term return on plan assets assumption at December 31, 2006 and 2005 of 8.5%. As of the 2006 measurement date, the arithmetic average of the annual actual return on plan assets for the most recent 10 and 5 years was 9.6% and 8.7%, respectively.

        Pension plan assets include $12 million and $8 million of the Company's common stock at December 31, 2006 and 2005. No plan assets are expected to be returned to the Company during 2007.

        The change in pension plan assets for the years ended December 31 is as follows:

(in millions)

  2006
  2005
 
Fair value of plan assets, beginning of year   $ 4,487   $ 3,983  
Actual return on plan assets     571     408  
Employer contribution     134     367  
Benefits paid     (542 )   (271 )
Translation adjustment and other     (14 )    
   
 
 
Fair value of plan assets, end of year   $ 4,636   $ 4,487  
   
 
 

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