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Table of Contents
trusts as determined by the sponsor of the trusts. The 103-12 investment trust is valued at net asset value which is determined by the issuer at the end of each
month and is based on the aggregate fair value of trust assets less liabilities, divided by the number of units outstanding. No changes in valuation techniques
or inputs occurred during the period.
The fair values of the Company’s pension plan assets at December 31, 2012 and 2011, by asset category are as follows:
Fair Value Measurements at December 31, 2012 (in millions)
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Asset Category
Cash and cash equivalents
$275
$ —
$ —
$275
Equity securities
International markets (a)(b)
2,443
—
—
2,443
Large-cap companies (b)
1,601
—
—
1,601
Mid-cap companies (b)
216
—
—
216
Small-cap companies(b)
21
—
—
21
Fixed Income
Corporate bonds (c)
—
2,094
—
2,094
Government securities (d)
—
1,172
—
1,172
U.S. municipal securities
—
57
—
57
Alternative investments
Private equity partnerships (e)
—
—
914
914
Common/collective and 103-12 investment trusts
(f)
—
229
—
229
Insurance group annuity contracts
—
—
2
2
Dividend and interest receivable
38
—
—
38
Due to/from brokers for sale of securities - net
1
—
—
1
Other assets – net
2
—
—
2
Total
$4,597
$3,552
$916
$9,065
a) Holdings are diversified as follows: 20 percent United Kingdom, 9 percent Japan, 9 percent France, 8 percent Switzerland, 8 percent Germany, 5
percent Netherlands, 5 percent Republic of Korea, 15 percent emerging markets and the remaining 22 percent with no concentration greater than 5
percent in any one country.
b) There are no significant concentration of holdings by company or industry.
c) Includes approximately 79 percent investments in corporate debt with a Standard and Poor’s (S&P) rating lower than A and 21 percent investments
in corporate debt with an S&P rating A or higher. Holdings include 81 percent U.S. companies, 16 percent international companies and 3 percent
emerging market companies.
d) Includes approximately 88 percent investments in U.S. domestic government securities and 12 percent in emerging market government securities.
There are no significant foreign currency risks within this classification.
e) Includes limited partnerships that invest primarily in U.S. ( 92 percent) and European (8 percent) buyout opportunities of a range of privately held
companies. The Master Trust does not have the right to redeem its limited partnership investment at its net asset value. Instead, the Master Trust
receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over
the next 1 to 10 years. Additionally, the Master Trust has future funding commitments of approximately $331 million over the next 10 years.
f) Investment includes 74 percent in an emerging market 103-12 investment trust with investments in emerging country equity securities, 14 percent in
Canadian segregated balanced value, income growth and diversified pooled funds and 12 percent in a common/collective trust investing in securities
of smaller companies located outside the U.S., including developing markets. Requests for withdrawals must meet specific requirements with
advance notice of redemption preferred.
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