CenterPoint Energy 2009 Annual Report Download - page 106

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84
The fair values of CenterPoint Energy’s pension plan assets at December 31, 2009, by asset category are as
follows:
Fair Value Measurements at December 31, 2009
(in millions)
Total
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Cash ........................................................................ $ 11 $ 11 $ - $
—
Common collective trust funds (1) ......................... 733
—
733
—
Corporate Bonds:
Investment grade or above .................................. 193
—
192
1
Hi
g
h
y
iel
d
............................................................ 2
—
2
—
Equity securities:
International companies ...................................... 162 160 2
—
U.S. companies ................................................... 96 96
—
—
Securities received as collateral .............................. 114 114
—
—
U.S.
g
overnment back a
g
encies bonds ................... 55 55
—
—
U.S. treasuries ......................................................... 50 50
—
—
Mort
g
a
g
e backed securities .................................... 39
—
39
—
Asset backed securities ........................................... 27
—
24
3
Municipal bonds ..................................................... 22 2 20
—
Mutual funds (2) ..................................................... 21 21
—
—
International
g
overnment bonds ............................. 12
—
12
—
Real estate ............................................................... 9
—
—
9
Obligation to return securities received as
collateral ............................................................... (114) (114)
—
—
Total ........................................................................ $ 1,432 $ 395 $ 1,024
$13
(1) 30% of the amount invested in common collective trust funds is in fixed income securities, 31% is in U.S.
equities and 39% is in international equities.
(2) 48% of the amount invested in mutual funds is in fixed income securities and 52% is in U.S. equities.
The pension plan utilized both exchange traded and over-the-counter financial instruments such as futures,
interest rate options and swaps that were marked to market daily with the gains/losses settled in the cash accounts.
The pension plan did not include any holdings of CenterPoint Energy common stock as of December 31, 2008 or
2009.
The following table sets forth a summary of changes in the fair value of the pension plan’s level 3 investments for
the year ended December 31, 2009:
Level 3 Investments
Year Ended December 31, 2009
(in millions)
Corporate
bonds
Asset backed
securities
Real
estate
Total
Balance, be
g
innin
g
of
y
ea
r
...................................... $ 1 $3
$ 14
$18
Unrealized gains/(losses) relating to instruments
still held at the reportin
g
date ...............................
—
—
(5)
(5)
Balance, end of yea
r
................................................ $ 1 $3
$ 9
$13