Allegheny Power 2014 Annual Report Download - page 92

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77
December 31, 2013 Asset
AllocationLevel 1 Level 2 Level 3 Total
(In millions)
Cash and short-term securities $ — $ 782 $ — $ 782 13%
Equity investments
Domestic 701 3 — 704 11%
International 304 118 — 422 7%
Fixed income
Government bonds — 314 — 314 5%
Corporate bonds — 2,128 — 2,128 34%
Mortgage-backed securities (non-
government) — 87 — 87 1%
Alternatives
Hedge funds (Absolute return) — 1,395 — 1,395 23%
Derivatives — 14 — 14 —%
Private equity funds — — 27 27 —%
Real estate funds — — 385 385 6%
Total (1) $ 1,005 $ 4,841 $ 412 $ 6,258 100%
(1) Excludes $(87) million as of December 31, 2013 of receivables, payables, taxes and accrued income associated with financial instruments
reflected within the fair value table.
The following table provides a reconciliation of changes in the fair value of pension investments classified as Level 3 in the fair
value hierarchy during 2014 and 2013:
Private Equity
Funds Real Estate
Funds
(In millions)
Balance as of January 1, 2013 $ 33 $ 357
Actual return on plan assets:
Unrealized gains 1 17
Realized gains 5 13
Transfers out (12) (2)
Balance as of December 31, 2013 $ 27 $ 385
Actual return on plan assets:
Unrealized gains (losses) (2) 17
Realized gains 1 14
Transfers in (out) (1) 5
Balance as of December 31, 2014 $ 25 $ 421