Estee Lauder 2014 Annual Report Download - page 100

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98 THE EST{E LAUDER COMPANIES INC.
government, asset-backed and fixed income securities.
Insurance contracts are generally classified as Level 3 as
there are no quoted prices nor other observable inputs
for pricing.
Interests in limited partnerships and hedge fund
investments — Certain investments are valued using the
NAV provided by the administrator of the partnership/fund.
The NAV is based on the value of the underlying
assets
owned by the partnership/fund, minus its liabilities, and
then divided by the number of shares outstanding. These
investments were classified within Level 2 and Level 3 of
the valuation hierarchy. The fair value of all other invest-
ments are determined by the fund managers based on the
estimated value of the various holdings of the fund port-
folio. These investments are classified within Level 3 of the
valuation hierarchy and have redemption restrictions.
The following table presents the fair values of the Company’s pension and post-retirement plan assets by asset category
as of June 30, 2014:
Level 1 Level 2 Level 3 Total
(In millions)
Short-term investment funds $ 22.4 $ 28.0 $— $ 50.4
Government and agency securities — 39.7 — 39.7
Equity securities 44.1 — — 44.1
Debt instruments — 173.8 — 173.8
Commingled funds 251.2 504.4 34.5 790.1
Insurance contracts — — 51.2 51.2
Limited partnerships and hedge fund investments — 52.2 67.0 119.2
Total $317.7 $798.1 $152.7 $1,268.5
The following table presents the fair values of the Company’s pension and post-retirement plan assets by asset category
as of June 30, 2013:
Level 1 Level 2 Level 3 Total
(In millions)
Short-term investment funds $ 28.9 $ 27.6 $— $ 56.5
Government and agency securities — 16.9 — 16.9
Equity securities — 125.6 — 125.6
Debt instruments 94.4 — — 94.4
Commingled funds 248.6 394.6 36.6 679.8
Insurance contracts — — 43.6 43.6
Limited partnerships and hedge fund investments — — 109.2 109.2
Total $371.9 $564.7 $189.4 $1,126.0
The following table presents the changes in Level 3 plan assets for fiscal 2014:
Limited Partnerships
Commingled Insurance and Hedge Fund
Funds Contracts Investments Total
(In millions)
Balance as of June 30, 2013 $36.6 $43.6 $109.2 $189.4
Actual return on plan assets:
Relating to assets still held at the reporting date (1.4) 3.0 4.7 6.3
Relating to assets sold during the year (0.3) — — (0.3)
Transfers in (out) — — (46.9) (46.9)
Purchases, sales, issuances and settlements, net (4.4) 2.6 — (1.8)
Foreign exchange impact 4.0 2.0 — 6.0
Balance as of June 30, 2014 $34.5 $51.2 $ 67.0 $152.7