Capital One 2012 Annual Report Download - page 249

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Plan Assets Measured at Fair Value on a Recurring Basis
December 31, 2012
Fair Value Measurements Using Assets
at Fair
Value(Dollars in millions) Level 1 Level 2 Level 3
Plan Assets
Common collective trusts ..................................... $0 $136 $0 $136
Money market fund ......................................... 0 10 1
Corporate bonds (S&P rating of A or higher) ..................... 0 14 0 14
Corporate bonds (S&P rating of lower than A) .................... 0 26 0 26
Government securities ....................................... 0 39 0 39
Mortgage-backed securities ................................... 0 14 0 14
Municipal bonds ............................................ 0 10 1
Total ................................................. $0 $231 $0 $231
December 31, 2011
Fair Value Measurements Using Assets
at Fair
Value(Dollars in millions) Level 1 Level 2 Level 3
Plan Assets
Common collective trusts ..................................... $0 $125 $0 $125
Money market fund ......................................... 0 0 0 0
Corporate bonds (S&P rating of A or higher) ..................... 0 12 0 12
Corporate bonds (S&P rating of lower than A) .................... 0 22 0 22
Government securities ....................................... 0 46 0 46
Mortgage-backed securities ................................... 0 15 0 15
Municipal bonds ............................................ 0 1 0 1
Total ................................................. $0 $221 $0 $221
Financial instruments are considered Level 3 when their values are determined using pricing models, which
include comparison of prices from multiple sources, discounted cash flow methodologies or similar techniques
and at least one significant model assumption or input is unobservable or there is significant variability among
pricing sources. Level 3 financial instruments also include those for which the determination of fair value
requires significant management judgment or estimation. We did not have any Level 3 plan assets for the years
ended December 31, 2012 and 2011.
Expected future benefit payments
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
(Dollars in millions)
Pension
Benefits
Postretirement
Benefits
2013 ................................................................... $13 $ 3
2014 ................................................................... 13 4
2015 ................................................................... 12 4
2016 ................................................................... 12 4
2017 ................................................................... 12 4
2018 - 2022 ............................................................. 59 20
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