DTE Energy 2010 Annual Report Download - page 37

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(d) This category represents portfolios of small and medium capitalization domestic equities. Investments in this category are
exchange-traded securities whereby unadjusted quote prices can be obtained. Exchange-traded securities held in a commingled
fund are classified as Level 2 assets.
(e) This category primarily consists of portfolios of non-U.S. developed and emerging market equities. Investments in this category
are exchange-traded securities whereby unadjusted quote prices can be obtained. Exchange-traded securities held in a commingled
fund are classified as Level 2 assets.
(f) This category includes corporate bonds from diversified industries, U.S. Treasuries, and mortgage backed securities. Pricing for
investments in this category is obtained from quoted prices in actively traded markets and quotations from broker or pricing
services. Non-exchange traded securities and exchange-traded securities held in commingled funds are classified as Level 2 assets.
g) This category includes a diversified group of funds and strategies that attempt to capture financial market inefficiencies. In 2009,
pricing for investments in this category was based on limited observable inputs as there was little, if any, publicly available
pricing. Valuations for assets in this category may be based on relevant publicly-traded securities, derivatives, and privately-
traded securities. In 2010, pricing for investments in this category included quoted prices in active markets and quotations from
broker or pricing services. Non-exchanged traded securities held in commingled funds are classified as Level 2 assets.
(h) This category includes a diversified group of funds and strategies that primarily invests in private equity partnerships. Pricing for
investments in this category is based on limited observable inputs as there is little, if any, publicly available pricing. Valuations for
assets in this category may be based on discounted cash flow analyses, relative publicly-traded comparables and comparable
transactions.
The VEBA trusts hold debt and equity securities directly and indirectly through commingled funds and institutional mutual funds.
Exchange-traded debt and equity securities held directly are valued using quoted market prices in actively traded markets. The
commingled funds and institutional mutual funds which hold exchange-traded equity or debt securities are valued based on underlying
securities, using quoted prices in actively traded markets. Non-exchange traded fixed income securities are valued by the trustee
based upon quotations available from brokers or pricing services. A primary price source is identified by asset type, class or issue for
each security. The trustees monitor prices supplied by pricing services and may use a supplemental price source or change the primary
price source of a given security if the trustees challenge an assigned price and determine that another price source is considered to be
preferable. MichCon has obtained an understanding of how these prices are derived, including the nature and observability of the
inputs used in deriving such prices. Additionally, MichCon selectively corroborates the fair values of securities by comparison of
market-based price sources.
Fair Value Measurements Using Significant Unobservable Inputs (Level 3):
(in Millions)
HedgeFunds
and Similar
Investments
Private
Equityand
Other
Total
Beginning Balance at January 1, 2010
$ 29
$ 14
$ 43
Total realized/unrealized gains (losses)
3
3
6
Purchases, sales and settlements
(5)
1
(4)
Ending Balance at December 31, 2010
$ 27
$ 18
$ 45
The amount of total gains (losses) for the period attributable
to the change in unrealized gains or losses related to assets
still held at the end of the period
$ 2
$ 2
$ 4