Page 121

APACHE CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) As of December 31, 2015, 2014, and 2013, the accumulated benefit obligation for the U.K. Pension Plan was $169 million, $183 million, and $160 million, respectively. Apache’s defined benefit pension plan assets are held by a non-related trustee who has been instructed to invest the assets in a blend of equity securities and low-risk debt securities. The Company intends that this blend of investments will provide a reasonable rate of return such that the benefits promised to members are provided. The U.K. Pension Plan policy is to target an ongoing funding level of 100 percent through prudent investments and includes policies and strategies such as investment goals, risk management practices, and permitted and prohibited investments. A breakout of previous allocations for plan asset holdings and the target allocation for the Company’s plan assets are summarized below: Target Allocation 2015

Percentage of Plan Assets at Year-End 2015 2014

Asset Category Equity securities: U.K. quoted equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Overseas quoted equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14% 26%

14% 26%

14% 26%

Total equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

40%

40%

40%

Debt securities: U.K. Government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K. corporate bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

48% 12%

48% 12%

48% 12%

Debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

60%

60%

60%

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

100%

100%

100%

F-39

Apache 2015 Summary Annual Report  

Adapting to a changing environment

Read more
Read more
Similar to
Popular now
Just for you