KeyBank 2014 Annual Report Download - page 210

December 31, 2013
in millions Level 1 Level 2 Level 3 Total
ASSET CLASS
Equity securities:
U.S. $ 216 — — $ 216
International 24 — — 24
Debt securities:
Corporate bonds — U.S. — $ 74 — 74
Corporate bonds — International — 11 — 11
Government and agency bonds — U.S. — 73 — 73
Government bonds — International — 1 — 1
State and municipal bonds — 3 — 3
Mutual funds:
U.S. equity 11 — — 11
International equity 34 — — 34
Fixed Income — U.S. 3 — — 3
Fixed Income — International 2 — — 2
Collective investment funds:
U.S. equity — 31 — 31
International equity — 151 — 151
Convertible securities — 54 — 54
Fixed income securities — 7 — 7
Short-term investments — 44 — 44
Emerging markets — 44 — 44
Real assets — 112 — 112
Insurance investment contracts and pooled separate accounts — — $ 13 13
Other assets — — 62 62
Total net assets at fair value $ 290 $ 605 $ 75 $ 970
The following table shows the changes in the fair values of our Level 3 plan assets for the years ended
December 31, 2014, and December 31, 2013.
in millions
Insurance
Investment
Contracts and
Pooled
Separate
Accounts
Other
Assets Total
Balance at December 31, 2012 $12$56$68
Actual return on plan assets:
Relating to assets held at reporting date 1 6 7
Balance at December 31, 2013 $13$62$75
Actual return on plan assets:
Relating to assets held at reporting date 14 5
Balance at December 31, 2014 $ 14 $ 66 $ 80
Other Postretirement Benefit Plans
We sponsor a retiree healthcare plan in which all employees age 55 with five years of service (or employees age
50 with 15 years of service who are terminated under conditions that entitle them to a severance benefit) are
eligible to participate. Participant contributions are adjusted annually. Key may provide a subsidy toward the cost
of coverage for certain employees hired before 2001 with a minimum of 15 years of service at the time of
termination. We use a separate VEBA trust to fund the retiree healthcare plan.
We also maintained a death benefit plan that provided a death benefit for a very limited number of (i) former Key
employees who retired from their employment with Key prior to 1994; (ii) former Key employees who elect a
grandfathered pension benefit under the KeyCorp Cash Balance Pension Plan; and (iii) Key employees who
otherwise were provided a historical death benefit at the time of their termination. The death benefit plan was
noncontributory and funded by a separate VEBA trust. In the fourth quarter of 2012, we used the assets of the
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