JP Morgan Chase 2014 Annual Report Download - page 227

JPMorgan Chase & Co./2014 Annual Report 225
U.S. defined benefit pension plans Non-U.S. defined benefit pension plans(i)
December 31, 2013
(in millions) Level 1 Level 2 Level 3 Total fair value Level 1 Level 2 Total fair value
Cash and cash equivalents $ 62 $ — $ — $ 62 $ 221 $ 3 $ 224
Equity securities:
Capital equipment 1,084 — — 1,084 86 17 103
Consumer goods 1,085 — — 1,085 225 50 275
Banks and finance companies 737 — — 737 233 29 262
Business services 510 — — 510 209 14 223
Energy 292 — — 292 64 20 84
Materials 344 — — 344 36 9 45
Real estate 38 — — 38 — 1 1
Other 1,337 18 4 1,359 25 103 128
Total equity securities 5,427 18 4 5,449 878 243 1,121
Common/collective trust funds(a) — 1,308 4 1,312 98 248 346
Limited partnerships:(b)
Hedge funds — 355 718 1,073 — — —
Private equity — — 1,969 1,969 — — —
Real estate — — 558 558 — — —
Real assets(c) — — 271 271 — — —
Total limited partnerships — 355 3,516 3,871 — — —
Corporate debt securities(d) — 1,223 7 1,230 — 787 787
U.S. federal, state, local and non-U.S. government debt
securities 343 299 — 642 — 777 777
Mortgage-backed securities 37 50 — 87 73 — 73
Derivative receivables — 30 — 30 — 302 302
Other(e) 1,214 41 430 1,685 148 52 200
Total assets measured at fair value(f) $ 7,083 $ 3,324 $ 3,961 $ 14,368 (g) $ 1,418 $ 2,412 $ 3,830
Derivative payables $ — $ (6) $ — $ (6) $ — $ (298) $ (298)
Total liabilities measured at fair value $ — $ (6) $ — $ (6) (h) $ — $ (298) $ (298)
(a) At December 31, 2014 and 2013, common/collective trust funds primarily included a mix of short-term investment funds, domestic and international
equity investments (including index) and real estate funds.
(b) Unfunded commitments to purchase limited partnership investments for the plans were $1.2 billion and $1.6 billion for 2014 and 2013, respectively.
(c) Real assets include investments in productive assets such as agriculture, energy rights, mining and timber properties and exclude raw land to be
developed for real estate purposes.
(d) Corporate debt securities include debt securities of U.S. and non-U.S. corporations.
(e) Other consists of money markets, exchange-traded funds and participating and non-participating annuity contracts. Money markets and exchange-traded
funds are primarily classified within level 1 of the fair value hierarchy given they are valued using market observable prices. Participating and non-
participating annuity contracts are classified within level 3 of the fair value hierarchy due to lack of market mechanisms for transferring each policy and
surrender restrictions.
(f) At December 31, 2014 and 2013, the fair value of investments valued at NAV were $2.1 billion and $2.7 billion, respectively, which were classified within
the valuation hierarchy as follows: $500 million and $100 million in level 1, $1.6 billion and $1.9 billion in level 2, zero and $700 million in level 3.
(g) At December 31, 2014 and 2013, excluded U.S. defined benefit pension plan receivables for investments sold and dividends and interest receivables of
$106 million and $96 million, respectively.
(h) At December 31, 2014 and 2013, excluded $241 million and $102 million, respectively, of U.S. defined benefit pension plan payables for investments
purchased; and $16 million and $2 million, respectively, of other liabilities.
(i) There were no assets or liabilities classified as level 3 for the non-U.S. defined benefit pension plans as of December 31, 2014 and 2013.
The Firm’s U.S. OPEB plan was partially funded with COLI policies of $1.9 billion and $1.7 billion at December 31, 2014 and
2013, respectively, which were classified in level 3 of the valuation hierarchy.