PNC Bank 2013 Annual Report Download - page 201

During 2012 there were transfers of corporate and preferred stocks from Level 1 to Level 2 and transfers of mutual funds from
Level 2 to Level 1. These transfers were not material and have been reflected as if they were transfers between levels.
The following summarizes changes in the fair value of the pension plan’s Level 3 assets during 2013 and 2012.
Table 115: Rollforward of Pension Plan Level 3 Assets
In millions
Interest in
Collective
Funds
Corporate
Debt
Limited
Partnerships
January 1, 2013 $ 88 $ 22 $127
Net realized gain/(loss) on sale of investments 7 7 10
Net unrealized gain/(loss) on assets held at end of year 3 (1) 21
Purchases 87 40 48
Sales (87) (55) (24)
December 31, 2013 $ 98 $ 13 $182
In millions
Interest in
Collective
Funds
Corporate
Debt
Limited
Partnerships Other
Preferred
Stock
January 1, 2012 $ 377 $ 77 $130 $ 27 $ 2
Net realized gain/(loss) on sale of investments 5 (28) 2
Net unrealized gain/(loss) on assets held at end of year (3) 20 (13)
Purchases 89 30 30
Sales (12) (65) (22) (2)
Transfers into Level 3 2
Transfers from Level 3 (368) (14) (27)
December 31, 2012 $ 88 $ 22 $127
The transfers of Interest in Collective Funds from Level 3 into Level 2 during 2012 resulted from changes in significant observable
inputs as to the level of trading activity in these funds. The transfers of Corporate Debt and Other investments into and from
Level 3 were due to changes in significant observable inputs during 2012.
The following table provides information regarding our estimated future cash flows related to our various plans.
Table 116: Estimated Cash Flows
Postretirement Benefits
In millions
Qualified
Pension
Nonqualified
Pension
Gross PNC
Benefit Payments
Reduction in PNC
Benefit Payments
Due to Medicare
Part D Subsidy
Estimated 2014 employer contributions $ 28 $ 32 $2
Estimated future benefit payments
2014 $ 248 $ 28 $ 32 $2
2015 256 27 32 2
2016 264 26 32 2
2017 271 25 32 2
2018 275 25 33 2
2019 – 2023 1,431 109 150 7
The qualified pension plan contributions are deposited into the Trust, and the qualified pension plan benefit payments are paid
from the Trust. The Plan is overfunded as of December 31, 2013, and PNC’s required qualified pension contribution for 2014 is
expected to be zero based on the funding calculations under the Pension Protection Act of 2006. For the other plans, total
contributions and the benefit payments are the same and represent expected benefit amounts, which are paid from general assets.
Postretirement benefits are net of participant contributions.
The PNC Financial Services Group, Inc. – Form 10-K 183