Albertsons 2014 Annual Report Download - page 101

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Common collective trusts—Valued at net asset value (“NAV”), which is based on the fair value of the underlying
securities owned by the fund and divided by the number of shares outstanding. The NAV unit price is quoted on
a private market that is not active. However, the NAV is based on the fair value of the underlying securities
within the fund, which are traded on an active market, and valued at the closing price reported on the active
market on which those individual securities are traded.
Corporate bonds—Valued based on yields currently available on comparable securities of issuers with similar
credit ratings. When quoted prices are not available for identical or similar bonds, the fair value is based upon an
industry valuation model, which maximizes observable inputs.
Government securities—Certain government securities are valued at the closing price reported in the active
market in which the security is traded. Other government securities are valued based on yields currently available
on comparable securities of issuers with similar credit ratings.
Mortgage backed securities—Valued based on yields currently available on comparable securities of issuers with
similar credit ratings. When quoted prices are not available for identical or similar bonds, the fair value is based
upon an industry valuation model, which maximizes observable inputs.
Private equity and real estate partnerships—Valued using the most recent general partner statement of fair
value, updated for any subsequent partnership interests’ cash flows or expected changes in fair value.
Mutual funds—Mutual funds are valued at the closing price reported in the active market in which the individual
securities are traded.
Synthetic guaranteed investment contract—Valued by discounting the related cash flows based on current yields
of similar instruments with comparable durations considering the credit-worthiness of the issuer.
Other—Valued under an approach that maximizes observable inputs, such as gathering consensus data from the
market participant’s best estimate of mid-market for actual trades or positions held.
The valuation methods described above may produce a fair value calculation that may not be indicative of net
realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation
methods are appropriate and consistent with other market participants, the use of different methodologies or
assumptions to determine the fair value of certain financial instruments could result in a different fair value
measurement.
The fair value of assets of the Company’s defined benefit pension plans held in a master trust as of February 22,
2014, by asset category, consisted of the following:
Level 1 Level 2 Level 3 Total
Common stock $ 579 $ — $ — $ 579
Common collective trusts—fixed income — 253 — 253
Common collective trusts—equity — 344 — 344
Government securities 92 89 — 181
Mutual funds 52 243 — 295
Corporate bonds — 290 — 290
Real estate partnerships — — 149 149
Private equity — — 125 125
Mortgage-backed securities — 37 — 37
Other — 8 — 8
Total plan assets at fair value $ 723 $ 1,264 $ 274 $ 2,261
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