IBM 2011 Annual Report Download - page 134

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Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies132
The following tables present the reconciliation of the beginning and ending balances of Level 3 assets for the years ended December 31, 2011
and 2010 for the U.S. Plan.
($ in millions)
Government
and Related
Corporate
Bonds
Mortgage
and Asset-
Backed
Securities
Fixed Income
Commingled/
Mutual Funds
Hedge
Funds
Private
Equity
Private
Real Estate To ta l
Balance at January 1, 2011 $— $— $ 56 $221 $624 $4,251 $2,634 $7,786
Return on assets held at end of year (0) 0 (1) 25 (35) 348 131 468
Return on assets sold during the year 0 (0) (0) — 5 (30) 39 14
Purchases, sales and settlements, net 12 5 (16) — (7) (471) (14) (492)
Transfers, net 17 7 6 — 127*— — 157
Balance at December 31, 2011 $29 $12 $ 45 $246 $713 $4,098 $2,790 $7,932
* Due to an increase in the redemption term during 2011, the asset was transferred from Level 2 to Level 3.
($ in millions)
Equity
Commingled/
Mutual Funds
Mortgage
and Asset-
Backed
Securities
Fixed Income
Commingled/
Mutual Funds
Hedge
Funds
Private
Equity
Private
Real Estate To ta l
Balance at January 1, 2010 $ 26 $37 $192 $587 $3,877 $2,247 $6,964
Return on assets held at end of year 24 3 30 45 829 123 1,054
Return on assets sold during the year (0) 0 — 3 (153) 16 (133)
Purchases, sales and settlements, net 139 11 — (11) (302) 248 85
Transfers, net (188)* 4 — — — — (184)
Balance at December 31, 2010 $ — $56 $221 $624 $4,251 $2,634 $7,786
* During the year ended December 31, 2010, the fund hired an independent administrator responsible for valuing the fund. As a result of this action the asset was transferred from
Level 3 to Level 2.
The following tables present the reconciliation of the beginning and ending balances of Level 3 assets for the years ended December 31, 2011
and 2010 for the non-U.S. Plans.
($ in millions)
Government
and Related
Corporate
Bonds
Private
Equity
Private
Real Estate To t a l
Balance at January 1, 2011 $ — $ 11 $176 $533 $720
Return on assets held at end of year 3 2 30 11 46
Return on assets sold during the year (0) (0) (2) (3) (5)
Purchases, sales and settlements, net 100 28 65 44 237
Transfers, net — — (0) 0 0
Foreign exchange impact (7) (2) (7) (6) (22)
Balance at December 31, 2011 $ 96 $39 $262 $580 $977
($ in millions)
Corporate
Bonds
Private
Equity
Private
Real Estate To t a l
Balance at January 1, 2010 $ — $ 93 $492 $585
Return on assets held at end of year (0) 14 41 55
Return on assets sold during the year — 3 (3) 0
Purchases, sales and settlements, net 4 69 9 82
Transfers, net 7 (0) — 7
Foreign exchange impact 0 (3) (6) (8)
Balance at December 31, 2010 $11 $176 $533 $720