DTE Energy 2014 Annual Report Download - page 105



Fair Value Measurements Using Significant Unobservable Inputs (Level 3):















Beginning Balance at January 1  
 
 
$ 119
$ 86
$ 205
Total realized/unrealized gains (losses) 


14
9
23
Purchases, sales and settlements:
Purchases 


26
15
41
Sales 


—
(9)
(9)
Ending Balance at December 31  
 
 
$ 159
$ 101
$ 260
The amount of total gains for the period
attributable to the change in unrealized gains or
losses related to assets still held at the end of the
period  
 
 
$ 14
$ 9
$ 23
There were no transfers between Level 3 and Level 2 and there were no significant transfers between Level 2 and Level 1 in the years ended
December 31, 2014 and 2013.

In March 2013, the Company reached agreements on new four-year labor contracts with certain represented employees under several bargaining units.
As a term of the agreements, the Company replaced the defined benefit employer-sponsored retiree medical, prescription drug and dental coverage for future
Medicare eligible retirees and their covered dependents with an allocation to a Retiree Reimbursement Account, when the youngest of the retiree's covered
household turns age 65. The amount of the allocation is $3,250 per year for each eligible participant, which increased to $3,315 in 2014. The amount of the
allocation will increase each year at the lower of the rate of medical inflation or 2%. The modification in retiree health coverage will reduce future other
postretirement benefit costs.
Based on the impact of such benefit cost savings on the Consolidated Financial Statements, the Company re-measured its retiree health plan as of
March 31, 2013. In performing the re-measurement, the Company updated its significant actuarial assumptions, including an adjustment to the discount rate
from 4.15% at December 31, 2012 to 4.30% at March 31, 2013. Plan assets were also updated to reflect fair value as of the re-measurement date. Beginning
April 2013, net other postretirement benefit costs were recorded based on the updated actuarial assumptions and benefit changes resulting from the new labor
contracts.

DTE Gas maintains a Grantor Trust that invests in life insurance contracts and income securities to fund other postretirement benefit obligations.
Employees and retirees have no right, title or interest in the assets of the Grantor Trust, and DTE Gas can revoke the trust subject to providing the MPSC with
prior notification. The Company accounts for its investment at fair value, which approximated $18 million and $17 million at December 31, 2014 and 2013,
respectively, with unrealized gains and losses recorded to earnings. The Grantor Trust investment is included in Other investments on the Consolidated
Statements of Financial Position.

The Company also sponsors defined contribution retirement savings plans. Participation in one of these plans is available to substantially all
represented and non-represented employees. The Company matches employee contributions up to certain predefined limits based upon eligible
compensation, the employee’s contribution rate and, in some cases, years of credited service. The cost of these plans was $48 million, $41 million and $37
million in each of the years 2014, 2013 and 2012, respectively.
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