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U.S. Pension Plans Assets

In order to achieve the investment objectives in the U.S. pension plans, the investment policy includes a target

strategic asset allocation. The investment policy allows some tolerance around the target in recognition that market

fluctuations and illiquidity of some investments may cause the allocation to a specific asset class to stray from the

target allocation, potentially for long periods of time. Acceptable ranges have been designed to allow for deviation

from long-term targets and to allow for the opportunity for tactical over- and under-weights. The portfolio will normally

be rebalanced when the quarter-end asset allocation deviates from acceptable ranges. The allocation is reviewed

regularly by the named fiduciary of the plans.

The fair values of the assets held by the U.S. pension plans by asset class are as follows:

Fair Value Measurements Using Inputs Considered as Fair Value at

(Millions) Level 1 Level 2 Level 3 Dec 31,

Asset Class 2011 2010 2011 2010 2011 2010 2011 2010

Equities .................................

U.S. equities .................... $ 1,186

$ 1,190

$ 14

$ 5

$ 7 $ 1,205

$ 1,202

Non-U.S. equities ............. 1,095

1,244

—

1,096

1,244

Derivatives .......................

—

(3 ) — —

—

(3 )

—

EAFE index funds ............

—

476

684

—

476

684

Index funds ......................

—

128

253

—

129

253

Long/short equity .............

—

436

499 436

499

Total Equities ....................... $ 2,281

$ 2,434

$ 616

$ 942

$ 442

$ 506 $ 3,339

$ 3,882

Fixed Income ........................

U.S. government securities $ 776

$ 562

$ 869

$ 473

$ —

—

$ 1,645

$ 1,035

Non-U.S. government securities

—

314

289

—

314

289

Preferred and convertible

securities ...................... 4

—

U.S. corporate bonds ....... 168

168

1,049

874

—

1,222

1,042

Non-U.S. corporate bonds

—

244

205

—

244

205

Asset backed securities ...

—

Collateralized mortgage

obligations ....................

—

137

—

137

Private placements ..........

—

125

135

144 194

279

Derivative instruments ..... 2

(2 ) 200

(53 ) —

—

202

(55)

Other ................................

—

Total Fixed Income .............. $ 950

$ 748

$ 2,990

$ 2,012

$ 74

$ 144 $ 4,014

$ 2,904

Private Equity .......................

Buyouts ............................ $

—

$ —

$ 618

$ 613 $ 618

$ 613

Distressed debt ................

—

333

376 333

376

Growth equity ................... 1

—

19 28

Mezzanine .......................

—

93 90

Real estate .......................

—

148

159 148

159

Secondary ........................

—

181

165 181

165

Other ................................

—

— — 67

—

Venture capital .................

—

665

583 665

583

Total Private Equity ............. $ 1

$ 4

$ —

$ 2,062

$ 2,075 $ 2,063

$ 2,079

bsolute Return ....................

Hedge funds and hedge fund of

funds ............................ $

—

$ —

$ 1,235

$ 1,142

$ 88

$ 59 $ 1,323

$ 1,201

Bank loan and other fixed

income funds ................

—

432

564 432

564

Total Absolute Return .......... $

—

$ —

$ 1,235

$ 1,142

$ 520

$ 623 $ 1,755

$ 1,765

Commodities ....................... $

—

$ —

$ 435

$ 338

$ 105

$ 111 $ 540

$ 449

Cash and Cash Equivalents $ 295

$ 35

$ 600

$ 609

$ —

—

$ 895

$ 644

Total ..................................... $ 3,527

$ 3,221

$ 5,876

$ 5,043

$ 3,203

$ 3,459 $ 12,606

$ 11,723

Other items to reconcile to fair

value of plan assets ......... $ (504 ) $ (148 )

Fair value of plan assets ..... $ 12,102

$ 11,575

U.S. Pension Plans Assets

In order to achieve the investment objectives in the U.S. pension plans, the investment policy includes a target

strategic asset allocation. The investment policy allows some tolerance around the target in recognition that market

fluctuations and illiquidity of some investments may cause the allocation to a specific asset class to stray from the

target allocation, potentially for long periods of time. Acceptable ranges have been designed to allow for deviation

from long-term targets and to allow for the opportunity for tactical over- and under-weights. The portfolio will normally

be rebalanced when the quarter-end asset allocation deviates from acceptable ranges. The allocation is reviewed

regularly by the named fiduciary of the plans.

The fair values of the assets held by the U.S. pension plans by asset class are as follows:

Fair Value Measurements Using Inputs Considered as Fair Value at

(Millions) Level 1 Level 2 Level 3 Dec 31,

Asset Class 2011 2010 2011 2010 2011 2010 2011 2010

Equities

U.S. equities .................... $ 1,186

$ 1,190

$ 14

$ 5

$ 7 $ 1,205

$ 1,202

Non-U.S. equities ............. 1,095

1,244 1

—

1,096 1,244

Derivatives ....................... —

—

(3 ) — —

—

(3)

—

EAFE index funds ............ —

—

476

684

—

476 684

Index funds ...................... —

—

128

253

—

129 253

Long/short equity ............. —

—

436

499 436 499

Total Equities ....................... $ 2,281

$ 2,434

$ 616

$ 942

$ 442

$ 506 $ 3,339

$ 3,882

Fixed Income

U.S. government securities $ 776

$ 562

$ 869

$ 473

$ —

—

$ 1,645

$ 1,035

Non-U.S. government securities

—

314

289

—

314 289

Preferred and convertible

securities ...................... 4

20 5

—

U.S. corporate bonds ....... 168

168 1,049

874

—

1,222 1,042

Non-U.S. corporate bonds —

—

244

205

—

244 205

Asset backed securities ... —

—

23 16

Collateralized mortgage

obligations .................... —

—

137

—

137 31

Private placements .......... —

—

125

135

144 194 279

Derivative instruments ..... 2

(2) 200

(53 ) —

—

202 (55)

Other ................................ —

—

24 34

Total Fixed Income .............. $ 950

$ 748

$ 2,990

$ 2,012

$ 74

$ 144 $ 4,014

$ 2,904

Private Equity

Buyouts ............................ $ —

$ —

$ 618

$ 613 $ 618

$ 613

Distressed debt ................ —

—

333

376 333 376

Growth equity ................... 1

—

19 28 23

Mezzanine ....................... —

—

93 90 93

Real estate ....................... —

—

148

159 148 159

Secondary ........................ —

—

181

165 181 165

Other ................................ —

—

— — 67

—

Venture capital ................. —

—

665

583 665 583

Total Private Equity ............. $ 1

$ 4

$ —

$ 2,062

$ 2,075 $ 2,063

$ 2,079

bsolute Return

Hedge funds and hedge fund of

funds ............................ $ —

$ —

$ 1,235

$ 1,142

$ 88

$ 59 $ 1,323

$ 1,201

Bank loan and other fixed

income funds ................ —

—

432

564 432 564

Total Absolute Return .......... $ —

$ —

$ 1,235

$ 1,142

$ 520

$ 623 $ 1,755

$ 1,765

Commodities ....................... $ —

$ —

$ 435

$ 338

$ 105

$ 111 $ 540

$ 449

Cash and Cash Equivalents $ 295

$ 35

$ 600

$ 609

$ —

—

$ 895

$ 644

Total ..................................... $ 3,527

$ 3,221

$ 5,876

$ 5,043

$ 3,203

$ 3,459 $ 12,606

$ 11,723

Other items to reconcile to fair

value of plan assets ......... $ (504 ) $ (148 )

Fair value of plan assets ..... $ 12,102

$ 11,575