Corning 2007 Annual Report

12. Employee Retirement Plans (continued)
We have an investment policy for domestic and international pension plans with a primary objective to adequately provide for both
the growth and liquidity needed to support all current and future benefit payment obligations. For domestic plans, the investment
strategy is to invest in a diversified portfolio of assets which are expected to satisfy the above objective and produce both absolute and
risk adjusted returns competitive with a benchmark that for domestic plans is 60% Russell 3000 Index, 20% Lehman Long
Government/Credit Index and 20% Lehman Long Credit Index. For international plans, the investment strategy is the same as for
domestic plans and the benchmark is a composite of 50% equities and 50% fixed income indexes. The strategy includes the following
target asset allocation:
Domestic International
Equity Securities 39% 48%
Fixed Income Securities 40% 48%
Real Estate 6% 1%
Other 15% 3%
Total 100% 100%
A tactical allocation mandate, which is part of the domestic asset investment strategy, allows the actual domestic allocation in equity
securities to be reduced by a maximum of 6% relative to the total domestic assets based on market valuations.
Equity securities include Corning common stock in the amount of $2.5 million (0.11% of total domestic plan assets) and $10 million
(0.5% of total domestic plan assets) at December 31, 2007 and 2006, respectively.
Cash Flow Data
We anticipate making voluntary cash contributions of approximately $50 million to our domestic plans in 2008.
The following reflects the gross benefit payments which are expected to be paid for the domestic and international plans and the gross
amount of annual Medicare Part D federal subsidy expected to be received (in millions):
Expected Benefit Payments
Pension
Benefits
Postretirement
Benefits
Expected Federal Subsidy Payments
Post Retirement Benefits
2008 $ 174 $ 76 $ 7
2009 $ 177 $ 80 $ 8
2010 $ 179 $ 84 $ 9
2011 $ 186 $ 89 $ 9
2012 $ 201 $ 92 $ 10
2013-2017 $ 1,104 $ 508 $ 55
Other Benefit Plans
We offer defined contribution plans covering employees meeting certain eligibility requirements. Total consolidated defined
contribution plan expense was $39 million, $34 million and $34 million for the years ended December 31, 2007, 2006 and 2005,
respectively.
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