Mondelez 2013 Annual Report Download - page 99

Table of Contents
The fair value of pension plan assets at December 31, 2012 was determined using the following fair value measurements:
We excluded plan assets of $81 million at December 31, 2013 and $79 million at December 31, 2012 from the above tables related
to certain insurance contracts as they are reported at contract value, in accordance with authoritative guidance.
Fair value measurements:
92
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)
U.S. equity securities
$
186
$
185
$
1
$
–
Non
-
U.S. equity securities
932
932
–
–
Pooled funds
-
equity securities
1,673
590
1,083
–
Total equity securities
2,791
1,707
1,084
–
Government bonds
1,440
209
1,231
–
Pooled funds-fixed-income securities
963
285
668
10
Corporate bonds and other fixed-income securities
1,969
210
965
794
Total fixed-income securities
4,372
704
2,864
804
Real estate
342
97
6
239
Hedge funds
263
–
–
263
Private equity
210
–
–
210
Cash
210
210
–
–
Other
17
–
17
–
Total
$
8,205
$
2,718
$
3,971
$
1,516
• 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 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 certain fixed-income securities such as insurance contracts are calculated based on the
future stream of benefit payments discounted using prevailing interest rates based on the valuation date.