CenterPoint Energy 2014 Annual Report Download - page 103

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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, 2014 or 2013 .
The changes in the fair value of the pension plan’s level 3 investments for the years ended December 31, 2014 and 2013 were not material.
The following tables present by level, within the fair value hierarchy, CenterPoint Energy’
s postretirement plan assets at fair value as of
December 31, 2014 and 2013 , by asset category:
93
Fair Value Measurements at December 31, 2013
(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)
1,107
—
1,107
—
Corporate bonds:
Investment grade or above
256
—
256
—
Equity securities:
International companies
75
75
—
—
U.S. companies
77
77
—
—
Cash received as collateral from securities lending
71
71
—
—
U.S. government backed agencies bonds
1
1
—
—
U.S. treasuries
18
18
—
—
Mortgage backed securities
7
—
7
—
Asset backed securities
6
—
6
—
Municipal bonds
61
—
61
—
Mutual funds (2)
172
172
—
—
International government bonds
11
—
11
—
Real estate
1
—
—
1
Obligation to return cash received as collateral from securities
lending
(71
)
(71
)
—
—
Total
$
1,803
$
354
$
1,448
$
1
(1) 50% of the amount invested in common collective trust funds is in fixed income securities, 20% is in U.S. equities, 25%
is in
international equities and 5% is in emerging market equities.
(2) 58% of the amount invested in mutual funds is in international equities, 30% is in emerging market equities and 12%
is in U.S. equities.
Fair Value Measurements at December 31, 2014
(in millions)
Total
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Mutual funds (1)
$
141
$
141
$
—
$
—
Total
$
141
$
141
$
—
$
—
(1) 73% of the amount invested in mutual funds is in fixed income securities, 19% is in U.S. equities and 8%
is in international equities.