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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
87
There were no transfers of financial instruments between the three levels of fair value hierarchy during the years ended
December 31, 2012, 2011 and 2010.
FAIR VALUE OF PENSION AND POSTRETIREMENT PLAN ASSETS
The fair value hierarchy discussed above is not only applicable to assets and liabilities that are included in our consolidated
balance sheets, but is also applied to certain other assets that indirectly impact our consolidated financial statements. For
example, our Company sponsors and/or contributes to a number of pension and postretirement medical plans. Assets
contributed by the Company become the property of the individual plans. Even though the Company no longer has control over
these assets, DPS is indirectly impacted by subsequent fair value adjustments to these assets. The actual return on these assets
impacts the Company's future net periodic benefit cost, as well as amounts recognized in our consolidated balance sheets. .
Refer to Note 12 for additional information regarding the Company's pension and postretirement medical plans. The Company
uses the fair value hierarchy to measure the fair value of assets held by our various pension and postretirement medical plans.
The following tables present the major categories of plan assets and the respective fair value hierarchy for the pension plan
assets as of December 31, 2012 and 2011 (in millions):
Fair Value Measurements at December 31, 2012
Quoted Prices in Significant Significant
Active Markets for Observable Unobservable
Identical Assets Inputs Inputs
Total (Level 1) (Level 2) (Level 3)
Assets:
Cash and cash equivalents $ 4 $ 4 $ — $ —
Equity securities(1)
U.S. Large-Cap equities(2) 42 — 42 —
International equities(2) 25 — 25 —
Fixed income securities
Derivative financial instruments(3) 14 — 14 —
U.S. Treasuries — — — —
U.S. Municipal bonds(4) 7 — 7 —
U.S. Corporate bonds(4) 152 — 152 —
International bonds(2) 27 — 27 —
Total assets $ 271 $ 4 $ 267 $ —
Liabilities:
Fixed income securities
Derivative financial instruments(3) $ 14 $ — $ 14 $ —
Total liabilities $ 14 $ — $ 14 $ —
Total net assets $ 257 $ 4 $ 253 $ —