United Technologies 2011 Annual Report Download - page 76

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The fair values of pension plan assets at December 31, 2011 and 2010 by asset category are as follows:
(Dollars in millions)
Quoted Prices in
Active Markets
For Identical Assets
(Level 1)
Significant
Observable Inputs
(Level 2)
Significant
Unobservable Inputs
(Level 3) Total
ASSET CATEGORY:
Public Equities
Global Equities $ 5,210 $ 4 $ — $ 5,214
Global Equity Commingled Funds(a) — 2,981 — 2,981
Enhanced Global Equities(b) 44 1,590 239 1,873
Private Equities(c) — — 1,159 1,159
Fixed Income Securities
Governments 1,564 1,199 — 2,763
Corporate Bonds — 5,167 110 5,277
Structured Products(d) —67 —67
Real Estate(e) — 16 1,364 1,380
Other(f) — 1,869 — 1,869
Cash & Cash Equivalents(g) — 359 — 359
Subtotal $ 6,818 $13,252 $2,872 22,942
Other Assets & Liabilities(h) 600
TOTAL AT DECEMBER 31, 2011 $23,542
Public Equities
Global Equities $5,332 $ 7 $ 1 $ 5,340
Global Equity Commingled Funds(a) — 3,200 — 3,200
Enhanced Global Equities(b) 57 1,662 245 1,964
Private Equities(c) — — 1,134 1,134
Fixed Income Securities
Governments 691 1,149 — 1,840
Corporate Bonds 21 5,424 — 5,445
Structured Products(d) — 76 — 76
Real Estate(e) — 26 944 970
Other(f) — 1,517 — 1,517
Cash & Cash Equivalents(g) — 293 — 293
Subtotal $ 6,101 $13,354 $2,324 21,779
Other Assets & Liabilities(h) 605
TOTAL AT DECEMBER 31, 2010 $ 22,384
(a) Represents commingled funds that invest primarily in common stocks.
(b) Represents enhanced equity separate account and commingled fund portfolios. A portion of the portfolio may include long-short market neutral and relative value
strategies that invest in publicly traded, equity and fixed income securities, as well as derivatives of equity and fixed income securities and foreign currency.
(c) Represents limited partner investments with general partners that primarily invest in debt and equity.
(d) Represents mortgage and asset-backed securities.
(e) Represents investments in real estate including commingled funds and directly held properties.
(f) Represents insurance contracts and global balanced risk commingled funds consisting mainly of equity, bonds and some commodities.
(g) Represents short-term commercial paper, bonds and other cash or cash-like instruments.
(h) Represents trust receivables and payables that are not leveled.
Derivatives in the plan are primarily used to manage risk and
gain asset class exposure while still maintaining liquidity.
Derivative instruments mainly consist of equity futures,
interest rate futures, interest rate swaps and currency
forward contracts.
Our common stock represents approximately 4% and 3% of
total plan assets at December 31, 2011 and 2010, respectively.
We review our assets at least quarterly to ensure we are
within the targeted asset allocation ranges and, if necessary,
asset balances are adjusted back within target allocations.
We employ a broadly diversified investment manager
structure that includes diversification by active and passive
management, style, capitalization, country, sector, industry
and number of investment managers.
74 UNITED TECHNOLOGIES CORPORATION