Mondelez 2012 Annual Report Download - page 84

Table of Contents
The fair value of pension plan assets at December 31, 2011 was determined using the following fair value measurements:
We excluded plan assets of $79 million at December 31, 2012 and $152 million at December 31, 2011 from the above tables
related to certain insurance contracts as they are reported at contract value, in accordance with authoritative guidance.
Fair value measurements:
81
Asset Category
Total Fair
Value
Quoted Prices
in Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
(in millions)
Cash
$
119
$
119
$
–
$
–
U.S. equity securities
272
266
6
–
Non
-
U.S. equity securities
1,666
1,664
2
–
Pooled funds
-
equity securities
4,755
485
4,270
–
Total cash and equity securities
6,812
2,534
4,278
–
Government bonds
1,170
571
599
–
Pooled funds-fixed-income securities
1,515
230
1,278
7
Corporate bonds and other fixed-income securities
3,019
100
2,161
758
Total fixed-income securities
5,704
901
4,038
765
Real estate
351
91
5
255
Other
410
–
19
391
Total
$
13,277
$
3,526
$
8,340
$
1,411
• Level 1 – includes primarily U.S and non-U.S. equity securities and government bonds valued using quoted prices in
active markets.
• Level 2 – includes primarily pooled funds, including assets in real estate pooled funds, valued using net asset values of
participation units held in common collective trusts, as reported by the managers of the trusts and as supported by the
unit prices of actual purchase and sale transactions. Level 2 plan assets also include corporate bonds and other fixed-
income securities, valued using independent observable market inputs, such as matrix pricing, yield curves and indices.
• Level 3 – includes investments valued using unobservable inputs that reflect the plans’ assumptions that market
participants would use in pricing the assets, based on the best information available.
• Fair value estimates for pooled funds are calculated by the investment advisor when reliable quotations or pricing
services are not readily available for certain underlying securities. The estimated value is based on either cost, or
last sale price for most of the securities valued in this fashion.
• Fair value estimates for limited partnership and private equity investments are calculated by the general partners
using the market approach to estimate the fair value of private investments. The market approach utilizes prices
and other relevant information generated by market transactions, type of security, degree of liquidity, restrictions
on the disposition, latest round of financing data, company financial statements, relevant valuation multiples and
discounted cash flow analyses.
• Fair value estimates for real estate investments are calculated by the investment managers using the present
value of future cash flows expected to be received from the investments, based on valuation methodologies such
as appraisals, local market conditions, and current and projected operating performance.
• Fair value estimates for investments in hedge fund-of-funds are calculated by the investment managers using the
net asset value per share of the investment as reported by the money managers of the underlying funds.
• Fair value estimates for insurance contracts are calculated based on the future stream of benefit payments
discounted using prevailing interest rates based on the valuation date.