US Bank 2015 Annual Report Download - page 125

The following table summarizes the plan investment assets measured at fair value at December 31:
Pension Plans
Postretirement
Welfare Plan
2015 2014 2015 2014
(Dollars in Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 1
Cash and cash equivalents ........... $ 64 $ – $– $ 64 $ 78 $ – $– $ 78 $82 $85
Debt securities ..................... 361 465 – 826 347 496 – 843 – –
Corporate stock
Domestic equity securities ......... 178 – – 178 196 – – 196 – –
Mid-small cap equity securities(a) .... 146 – – 146 146 – – 146 – –
International equity securities ....... 123 – – 123 197 – – 197 – –
Real estate equity securities(b) ....... 163 – – 163 163 – – 163 – –
Mutual funds
Debt securities ................... – 197 – 197 – 219 – 219 – –
Emerging markets equity securities . . – 81 – 81 – 81 – 81 – –
Other ............................ – – 1 1 – – 2 2 – –
$1,035 $743 $1 1,779 $1,127 $796 $2 1,925 82 85
Plan investment assets not classified in
fair value hierarchy(e):
Collective investment funds
Domestic equity securities ......... 679 539
Mid-small cap equity securities(c) .... 68 54
Emerging markets equity securities . . 75 75
International equity securities ....... 533 421
Hedge funds(d) ..................... 171 148
Private equity funds ................. 50 25
Total plan investment assets at fair
value ......................... $3,355 $3,187 $82 $85
(a) At December 31, 2015 and 2014, securities included $139 million and $141 million in domestic equities, respectively, and $7 million and $5 million in international equities, respectively.
(b) At December 31, 2015 and 2014, securities included $90 million and $89 million in domestic equities, respectively, and $73 million and $74 million in international equities, respectively.
(c) At December 31, 2015 and 2014, securities included $30 million and $25 million in domestic equities, respectively, $20 million and $27 million in international equities, respectively, and
$18 million and $2 million in cash and cash equivalents, respectively.
(d) This category consists of several investment strategies diversified across several hedge fund managers.
(e) These investments are valued based on net asset value per share as a practical expedient; fair values are provided to reconcile to total investment assets of the plans at fair value.
The following table summarizes the changes in fair value for all plan investment assets measured at fair value using significant
unobservable inputs (Level 3) for the years ended December 31:
2015 2014 2013
(Dollars in Millions) Other Other
Debt
Securities Other
Balance at beginning of period ..................................................... $2 $4 $7 $3
Unrealized gains (losses) relating to assets still held at end of year ...................... (1) (2) – –
Purchases, sales, and settlements, net ............................................ – – (7) 1
Balance at end of period .......................................................... $1 $2 $– $4
The following benefit payments are expected to be paid from the retirement plans for the years ended December 31:
(Dollars in Millions)
Pension
Plans
Postretirement
Welfare Plan(a)
Medicare Part D
Subsidy Receipts
2016 ...................................................................... $ 198 $13 $2
2017 ...................................................................... 209 12 2
2018 ...................................................................... 218 12 2
2019 ...................................................................... 229 11 2
2020 ...................................................................... 234 10 2
2021 – 2025 ............................................................... 1,368 41 7
(a) Net of expected retiree contributions and before Medicare Part D subsidy.
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