Delta Airlines 2012 Annual Report Download - page 91

The following table summarizes, the benefit payments that are scheduled to be paid in the years ending December 31:
Plan Assets
We have adopted and implemented investment policies for our defined benefit pension plans and disability and survivorship plan for pilots that
incorporate strategic asset allocation mixes intended to best meet the plans' long-term obligations. This asset allocation policy mix utilizes a
diversified mix of investments and is reviewed periodically. The weighted-average target and actual asset allocations for the plans are as follows:
The overall asset mix of the portfolios is more heavily weighted in equity-like investments. Active management strategies are utilized where
feasible in an effort to realize investment returns in excess of market indices.
Benefit Plan Assets Measured at Fair Value on a Recurring Basis
Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants
would use in pricing an asset or liability.
84
(in millions) Pension Benefits Other Postretirement and Postemployment Benefits
2013
$
1,141
$
275
2014
1,136
276
2015
1,149
276
2016
1,164
274
2017
1,181
270
2018-2022
6,153
1,293
December 31, 2012
Target Actual
Diversified fixed income
23
%
19
%
Domestic equity securities
21
17
Non-U.S. developed equity securities
20
20
Alternative investments
19
23
Non-U.S. emerging equity securities
6
7
Hedge funds
5
5
Cash equivalents
5
7
High yield fixed income
1
2
Total
100
%
100
%
•
Level 1.
Observable inputs such as quoted prices in active markets;
•
Level 2
. Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and
•
Level 3
. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.