Regions Bank 2011 Annual Report Download - page 214

The following table presents the fair value of Regions’ defined-benefit pension plans’ and other
postretirement plans’ financial assets as of December 31:
2011 2010
Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Fair Value
(In millions)
Cash and cash equivalents(1) ....... $ 30 $— $— $ 30 $100 $— $— $ 100
Fixed income securities:
U.S. Treasury and federal
agency securities .......... — 116 — 116 — 104 — 104
Mortgage-backed securities . . . — 11 — 11 — 14 — 14
Collateralized mortgage
obligations ............... — 11 — 11 — 22 — 22
Obligations of states and
political subdivisions ...... — 1 — 1 — 1 — 1
Corporate bonds ............ — 158 — 158 — 130 — 130
Total fixed income
securities ............ $— $297 $— $ 297 $— $271 $— $ 271
Equity securities:
Domestic .................. 211 — — 211 235 — — 235
International ............... 3 — — 3 3 — — 3
Total common stock ..... $214 $— $— $ 214 $238 $— $— $ 238
Mutual funds:
Domestic .................. 309 — — 309 235 — — 235
International ............... 1 — — 1 133 — — 133
Total mutual funds ...... $310 $— $— $ 310 $368 $— $— $ 368
Collective investment trust funds:
Fixed income fund .......... — 210 — 210 — 172 — 172
Common stock fund ......... — 31 — 31 — 40 — 40
International fund ........... — 120 — 120 — 158 — 158
$— 361 — $ 361 $— 370 — $ 370
International hedge funds ......... $— $ 73 $— $ 73 $— $ 54 $— $ 54
Real estate funds ................ $— $— $186 $ 186 $— $— $102 $ 102
Private equity funds ............. $— $— $ 26 $ 26 $— $— $ 9 $ 9
Other assets .................... $— $— $ 1 $ 1 $— $— $ 1 $ 1
$554 $731 $213 $1,498 $706 $695 $112 $1,513
(1) This amount includes financial assets related to other postretirement plans of approximately $4 million at
both December 31, 2011 and 2010.
For all investments, quoted market prices of identical assets on active exchanges, or Level 1 measurements,
are used if available. Where such quoted market prices are not available, quoted market prices of similar
instruments (including matrix pricing) and/or discounted cash flows to estimate a value of these securities, or
Level 2 measurements are utilized. Level 2 discounted cash flow analyses are typically based on market interest
rates, prepayment speeds and/or option adjusted spreads. Level 3 measurements are based on assumptions that
are not readily observable in the market place.
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