AIG 2015 Annual Report Download - page 328

ITEM 8 / NOTE 20. EMPLOYEE BENEFITS
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The expected weighted average long-term rate of return for all our non-U.S. pension plans was 3.33 percent and 2.93 percent
for the years ended December 31, 2015 and 2014, respectively. It is an aggregation of expected returns within each asset
class that was generally developed based on the building block approach that considers historical returns, current market
conditions, asset volatility and the expectations for future market returns.
Assets Measured at Fair Value
The following table presents information about our plan assets and indicates the level of the fair value measurement
based on the observability of the inputs used. The inputs and methodology used in determining the fair value of
these assets are consistent with those used to measure our assets as discussed in Note 4 herein.
U.S. Plans Non-U.S. Plans
(in millions) Level 1 Level 2 Level 3 Tot al Level 1 Level 2 Level 3 Tot a l
At December 31, 2015
Assets:
Cash and cash equivalents $239 $ - $ - $ 239 $ 49 $ - $ - $ 49
Equity securities:
U.S.(a) 924 388 -1,312 35 - - 35
International(b) 262 1 - 263 248 67 - 315
Fixed maturity securities:
U.S. investment grade(c) -1,452 91,461 - - - -
International investment grade(c) - - - - - 190 -190
U.S. and international high yield(d) -322 -322 - 66 -66
Mortgage and other asset-backed
securities(e) - 7 - 7 - - - -
Other fixed maturity securities - - - - - 12 -12
Other investment types:
Hedge funds(f) -469 31 500 - - - -
Futures 2 - - 2 - - - -
Real Estate - - - - 11 - - 11
Private equity(g) - - 230 230 - - - -
Insurance contracts -23 -23 - -95 95
Total $1,427 $2,662 $270 $4,359 $ 343 $ 335 $95 $773
At December 31, 2014
Assets:
Cash and cash equivalents $80 $ - $ - $ 80 $ 50 $ - $ - $ 50
Equity securities:
U.S.(a) 1,244 239 -1,483 30 - - 30
International(b) 787 1 - 788 274 48 - 322
Fixed maturity securities:
U.S. investment grade(c) -768 8776 - - - -
International investment grade(c) - - - - 2 160 -162
U.S. and international high yield(d) -347 -347 - 61 -61
Mortgage and other asset-backed
securities(e) - 6 - 6 - - - -
Other fixed maturity securities - - - - - 10 17 27
Other investment types:
Hedge funds(f) -337 36 373 - - - -
Futures 4 - - 4 - - - -
Private equity(g) - - 228 228 - - - -
Insurance contracts -26 -26 - -56 56
Total $2,115 $1,724 $272 $4,111 $ 356 $ 279 $73 $708