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Notes to Consolidated Financial Statements, continued
123
The following presents the balances of pension plan assets measured at fair value. See Note 18, "Fair Value Election and Measurement"
for level definitions within the fair value hierarchy.
Fair Value Measurements at December 31, 2014 1
(Dollars in millions) Total Level 1 Level 2 Level 3
Money market funds $122 $122 $— $—
Equity securities 1,467 1,467 — —
Futures contracts (21) — (21) —
Fixed income securities 1,478 107 1,371 —
Other assets 17 17 — —
Total plan assets $3,063 $1,713 $1,350 $—
1 Schedule does not include accrued income amounting to less than 0.6% of total plan assets.
Fair Value Measurements at December 31, 2013 1
(Dollars in millions) Total Level 1 Level 2 Level 3
Money market funds $83 $83 $— $—
Equity securities 1,374 1,374 — —
Futures contracts 8 — 8 —
Fixed income securities 1,387 157 1,230 —
Other assets 2 2 — —
Total plan assets $2,854 $1,616 $1,238 $—
1 Schedule does not include accrued income amounting to less than 0.7% of total plan assets
The following presents the balances of other postretirement benefit assets measured at fair value. See Note 18, "Fair Value Election
and Measurement" for level definitions within the fair value hierarchy.
Fair Value Measurements at December 31, 2014 1
(Dollars in millions) Total Level 1 Level 2 Level 3
Money market funds $13 $13 $— $—
Mutual funds:
Equity index fund 51 51 — —
Tax exempt municipal bond funds 82 82 — —
Taxable fixed income index funds 14 14 — —
Total plan assets $160 $160 $— $—
Fair Value Measurements at December 31, 2013 1
(Dollars in millions) Total Level 1 Level 2 Level 3
Money market funds $7 $7 $— $—
Mutual funds:
Equity index fund 52 52 — —
Tax exempt municipal bond funds 85 85 — —
Taxable fixed income index funds 14 14 — —
Total plan assets $158 $158 $— $—
1 Fair value measurements do not include accrued income.
The SBFC establishes investment policies and strategies and
formally monitors the performance of the investments
throughout the year. The Company’s investment strategy with
respect to pension assets is to invest the assets in accordance with
ERISA and related fiduciary standards. The long-term primary
investment objectives for the pension plans are to provide a
commensurate amount of long-term growth of capital (both
principal and income) in order to satisfy the pension plan
obligations without undue exposure to risk in any single asset
class or investment category. The objectives are accomplished
through investments in equities, fixed income, and cash
equivalents using a mix that is conducive to participation in a
rising market while allowing for protection in a declining market.
The portfolio is viewed as long-term in its entirety, avoiding