GE 2011 Annual Report Download - page 106

104 GE 2011 ANNUAL REPORT
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The following tables present the changes in Level 3 investments for the GE Pension Plan.
CHANGES IN LEVEL 3 INVESTMENTS FOR THE YEAR ENDED DECEMBER 31, 2011
(In millions)
January 1,
2011
Net realized
gains (losses)
Net unrealized
gains (losses)
Purchases,
issuances and
settlements
Transfers in
and/or out
of Level 3 (a) December 31,
2011
DEBT SECURITIES
Fixed income and cash investment funds $ 65 $ (1) $ (4) $ 2 $ — $ 62
U.S. corporate 5 — — (5) 3 3
Residential mortgage-backed 21 (1) (1) (4) (10) 5
Other debt securities 283 4 6 (145) (2) 146
PRIVATE EQUITIES 6,014 311 701 (240) — 6,786
REAL ESTATE 3,373 (70) 320 (217) (132) 3,274
OTHER INVESTMENTS 1,687 (41) (87) 150 — 1,709
$11,448 $202 $ 935 $(459) $(141) $11,985
(a) Transfers in and out of Level 3 are considered to occur at the beginning of the period.
CHANGES IN LEVEL 3 INVESTMENTS FOR THE YEAR ENDED DECEMBER 31, 2010
(In millions)
January 1,
2010
Net realized
gains (losses)
Net unrealized
gains (losses)
Purchases,
issuances and
settlements
Transfers in
and/or out of
Level 3 (a) December 31,
2010
DEBT SECURITIES
Fixed income and cash investment funds $ 46 $ 1 $ 15 $ 3 $ — $ 65
U.S. corporate 6 6 1 (9) 1 5
Residential mortgage-backed 220 5 1 (211) 6 21
Other debt securities 231 2 15 41 (6) 283
PRIVATE EQUITIES 5,339 54 694 (73) — 6,014
REAL ESTATE 2,775 130 251 217 — 3,373
OTHER INVESTMENTS 1,537 (24) 156 65 (47) 1,687
$10,154 $174 $1,133 $ 33 $ (46) $11,448
(a) Transfers in and out of Level 3 are considered to occur at the beginning of the period.
Other pension plans’ assets were $8,381 million and $7,803 million at December 31, 2011 and 2010, respectively. Equity and debt securities
amounting to $7,284 million and $6,938 million represented approximately 89% and 90% of total investments at December 31, 2011 and
2010, respectively. The plans’ investments were classifi ed as 13% Level 1, 76% Level 2 and 11% Level 3 at December 31, 2011. The plans’
investments were classifi ed as 15% Level 1, 75% Level 2 and 10% Level 3 at December 31, 2010. The changes in Level 3 investments were
insignifi cant for the years ended December 31, 2011 and 2010.
PENSION ASSET (LIABILITY)
Principal pension plans Other pension plans
December 31 (In millions) 2011 2010 2011 2010
Funded status (a)(b) $(18,373) $ (7,198) $(3,256) $(2,104)
Pension asset (liability)
recorded in the Statement
of Financial Position
Pension asset $ — $ — $ 158 $ 202
Pension liabilities
Due within one year (c) (148) (141) (52) (52)
Due after one year (18,225) (7,057) (3,362) (2,254)
Net amount recognized $(18,373) $ (7,198) $(3,256) $(2,104)
Amounts recorded in
shareowners’ equity
(unamortized)
Prior service cost $ 1,685 $ 1,075 $ 4 $ 72
Net actuarial loss 26,923 18,603 3,294 1,772
Total $ 28,608 $19,678 $ 3,298 $ 1,844
(a) Fair value of assets less PBO, as shown in the preceding tables.
(b) The GE Pension Plan was underfunded by $13.2 billion and $2.8 billion at
December 31, 2011 and 2010, respectively.
(c) For principal pension plans, represents the GE Supplementary Pension Plan liability.
In 2012, we estimate that we will amortize $280 million of prior
service cost and $3,435 million of net actuarial loss for the princi-
pal pension plans from shareowners’ equity into pension cost. For
other pension plans, the estimated prior service cost and net
actuarial loss to be amortized in 2012 will be $5 million and
$275 million, respectively. Comparable amortized amounts in
2011, respectively, were $194 million and $2,335 million for the
principal pension plans and $13 million and $151 million for other
pension plans.
ESTIMATED FUTURE BENEFIT PAYMENTS
(In millions) 2012 2013 2014 2015 2016
2017–
2021
Principal pension
plans $3,000 $3,025 $3,090 $3,160 $3,205 $17,225
Other pension
plans $ 415 $ 425 $ 435 $ 445 $ 455 $ 2,465