Aetna 2013 Annual Report Download - page 124

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Annual Report- Page 118
Other Assets - Other assets consist of derivatives and private equity and hedge fund limited partnerships.
Derivatives are either valued with models that primarily use market observable inputs and therefore are
classified as Level 2 because they are traded in markets where quoted market prices are not readily available
or are classified as Level 1 because they are traded in markets where quoted market prices are readily
available. The fair values of private equity and hedge fund limited partnerships are estimated based on the
net asset value of the investment fund provided by the general partner or manager of the investments, the
financial statements of which generally are audited. Management considers observable market data,
valuation procedures in place, contributions and withdrawal restrictions collectively in validating the
appropriateness of using the net asset value as a fair value measurement. Therefore, these investments are
classified as Level 3.
Pension Assets with changes in fair value measured on a recurring basis at December 31, 2013 were as follows:
(Millions) Level 1 Level 2 Level 3 Total
Debt securities:
U.S. government securities $ 493.5 $ 113.2 $ — $ 606.7
States, municipalities and political subdivisions — 126.8 — 126.8
U.S. corporate securities — 1,135.7 — 1,135.7
Foreign securities — 148.0 .2 148.2
Residential mortgage-backed securities — 174.6 — 174.6
Commercial mortgage-backed securities — 44.0 — 44.0
Other asset-backed securities — 26.5 — 26.5
Redeemable preferred securities — 10.2 — 10.2
Total debt securities 493.5 1,779.0 .2 2,272.7
Equity securities:
U.S. Domestic 1,342.5 3.1 — 1,345.6
International 825.2 — .1 825.3
Domestic real estate 25.7 — — 25.7
Total equity securities 2,193.4 3.1 .1 2,196.6
Other investments:
Real estate — — 497.5 497.5
Common/collective trusts (1) — 617.3 — 617.3
Other assets .3 .7 395.9 396.9
Total other investments .3 618.0 893.4 1,511.7
Total pension investments (2) $ 2,687.2 $ 2,400.1 $ 893.7 $ 5,981.0
(1) The assets in the underlying funds of common/collective trusts are comprised of $356.1 million of equity securities and
$261.2 million of debt securities.
(2) Excludes $176.8 million of cash and cash equivalents and other receivables.