American Express 2009 Annual Report Download - page 118

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AMERICAN EXPRESS COMPANY
The following table summarizes the target allocation and categorization of all defined benefit pension plan assets measured at fair
value on a recurring basis by GAAP’s valuation hierarchy as of December 31, 2009.
Asset Category
(millions, except percentages)
Target
Allocation 2010 Total
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
U.S. equity securities 15% $ 334 $334 $ — $—
International equity securities(a) 30% 626 626 — —
U.S. fixed income securities 30% 553 — 553 —
International fixed income securities(a) 15% 301 — 301 —
Balanced funds 5% 62 — 62 —
Cash —15 15— —
Other(b)
Private equity 52 — — 52
Real estate 38 — — 38
Hedge funds 8——8
Total other 5% 98 — — 98
Total 100% $1,989 $975 $916 $98
(a) A significant portion of international investments are in U.K. companies and U.K. government and agency securities.
(b) Measured at reported net asset value in accordance with GAAP adopted in 2009.
The fair value measurement of all defined benefit pension plan assets using significant unobservable inputs (Level 3) changed
during 2009 due to the following:
(Millions) Total Private Equity Real Estate Hedge Funds
Beginning fair value, January 1, 2009 $187 $64 $60 $63
Actual net losses on plan assets:
Held at the end of the year (38) (16) (19) (3)
Sold during the year (10) — (1) (9)
Total net losses (48) (16) (20) (12)
Net purchases, sales and settlements (41) 4 (2) (43)
Net decrease (89) (12) (22) (55)
Ending fair value, December 31, 2009 $ 98 $52 $38 $8
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