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112
assessment of variability in pricing by comparison to independent source(s) of pricing, and
back-testing of transactions to determine historical accuracy of net asset value per share/unit as an exit price.
The following is a description of the valuation methodologies used for pension assets measured at fair value. Refer to Note 3 of the
Notes to Consolidated Financial Statements for details on the accounting framework for measuring fair value and the related fair value
hierarchy.
Commingled trust funds: Valued at the net asset value per unit at year end as quoted by the funds.
Fixed income: Valued at quoted prices, broker dealer quotations, or other methods by which all significant inputs are generally
observable, either directly or indirectly. If significant inputs are unobservable, the security is classified as Level 3.
Cash equivalent: Valued at the per share (unit) published as the basis for current transactions.
Insurance contract: Valued at the surrender value or conversion value.
The following table sets forth by level, within the fair value hierarchy, plan assets measured at fair value on a recurring basis as of
December 31, 2015 and 2014:
December 31, 2015
December 31, 2014
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Commingled trust
funds:
Fixed income
$
–
$
23.8
$
–
$
23.8
$
–
$
25.9
$
–
$
25.9
Equity
–
13.7
–
13.7
–
14.9
–
14.9
Real estate
–
5.7
–
5.7
–
4.9
–
4.9
Commingled trust
funds measured at net
asset value:
Fixed income
–
–
–
210.0
–
–
–
225.8
International equity
large-cap
–
–
–
68.6
–
–
–
73.7
International equity
small-cap
–
–
–
17.7
–
–
–
16.8
Emerging market
equity
–
–
–
15.9
–
–
–
18.8
Emerging market
debt
–
–
–
23.9
–
–
–
25.1
Global equity
–
–
–
29.7
–
–
–
33.1
U.S. equity
–
–
–
76.1
–
–
–
83.0
Real estate
–
–
–
0.2
–
–
–
0.2
Fixed income:
Government and
agency debt
securities
–
34.2
–
34.2
–
33.4
–
33.4
Corporate debt
securities
–
125.0
1.0
126.0
–
144.1
1.2
145.3
Asset-backed and
mortgage-backed
securities
–
9.3
5.3
14.6
–
9.7
3.1
12.8
Cash equivalent
–
2.7
–
2.7
–
4.4
–
4.4
Insurance contract
–
–
4.4
4.4
–
–
–
–
Subtotal
–
214.4
10.7
667.2
–
237.3
4.3
718.1
Cash
–
–
–
2.7
–
–
–
2.0
Total assets at fair
value
$
–
$
214.4
$
10.7
$
669.9
$
–
$
237.3
$
4.3
$
720.1