DELPHI 2013 Annual Report Download - page 111

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89
Fair Value Measurements at December 31, 2012
Asset Category Total
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
(in millions)
Cash......................................................................... $ 58 $ 58 $ — $ —
Time deposits.......................................................... 2 — 2 —
Equity mutual funds................................................ 313 — 313 —
Bond mutual funds.................................................. 430 — 430 —
Real estate trust funds ............................................. 42 — — 42
Hedge Funds ........................................................... 91 — — 91
Commodities Fund.................................................. 39 — 39 —
Insurance contracts.................................................. 3 — — 3
Debt securities......................................................... 76 76 — —
Equity securities...................................................... 55 55 — —
Total...................................................................... $ 1,109 $ 189 $ 784 $ 136
Following is a description of the valuation methodologies used for pension assets measured at fair value.
Time deposits - The fair value of fixed-maturity certificates of deposit was estimated using the rates offered for deposits of
similar remaining maturities.
Equity Mutual Funds—The fair value of the equity mutual funds is determined by the indirect quoted market prices on
regulated financial exchanges of the underlying investments included in the fund.
Bond Mutual Funds—The fair value of the bond mutual funds is determined by the indirect quoted market prices on
regulated financial exchanges of the underlying investments included in the fund.
Real Estate—The fair value of real estate properties is estimated using an annual appraisal provided by the administrator
of the property investment. Management believes this is an appropriate methodology to obtain the fair value of these assets.
Hedge Funds—The fair value of the hedge funds is accounted for by a custodian. The custodian obtains valuations from
the underlying hedge fund managers based on market quotes for the most liquid assets and alternative methods for assets that
do not have sufficient trading activity to derive prices. Management and the custodian review the methods used by the
underlying managers to value the assets. Management believes this is an appropriate methodology to obtain the fair value of
these assets.
Commodities—The fair value of commodity funds are determined by comparing exchange traded prices and Index rates
for futures and/or swap contracts as of the measurement date to the contract rate of the underlying futures and/or swap
contracts.
Insurance contracts - The insurance contracts are invested in a fund with guaranteed minimum returns. The fair values of
these contracts are based on the net asset value underlying the contracts.
Debt Securities—The fair value of debt securities is determined by direct quoted market prices on regulated financial
exchanges.