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70
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
70
The following tables provide the fair value of the financial assets of the funded pension plans as of December 31, 2014 and 2013 in
accordance with the fair value measurement hierarchy described in Note 1, Summary of Significant Accounting Policies in the Notes to
the Consolidated Financial Statements:
Level 1 Level 2 Level 3 Total
(In millions)
December 31, 2014
Cash and short-term investment funds .................................................................... $ 6 $ 47
$—$53
Equities:
U.S. equities (domestic) ..................................................................................... 719 — — 719
International equities (non-U.S.) ........................................................................ 72 177 — 249
Global equities (domestic and non-U.S.) ........................................................... 10 218 — 228
Fixed income:
Treasury and government issued (a) .................................................................. — 222 222
Government related (b) ...................................................................................... —7
18
Mortgage-backed securities (c) .......................................................................... — 147 1 148
Corporate ............................................................................................................ 3 137 140
Other:
Hedge funds ....................................................................................................... ——
302 302
Private equity funds ............................................................................................ ——
105 105
Real estate funds ................................................................................................ 12 — 48 60
Diversified commodities funds .......................................................................... — 17 — 17
$ 822 $ 972
$ 457 $ 2,251
December 31, 2013
Cash and short-term investment funds .................................................................... $ 3 $ 72 $ — $ 75
Equities:
U.S. equities (domestic) ..................................................................................... 729 — — 729
International equities (non-U.S.) ........................................................................ 81 171 — 252
Global equities (domestic and non-U.S.) ........................................................... 8 208 — 216
Fixed income:
Treasury and government issued (a) .................................................................. — 169 1 170
Government related (b) ...................................................................................... — 9 — 9
Mortgage-backed securities (c) .......................................................................... — 109 1 110
Corporate ............................................................................................................ 2 124 1 127
Other:
Hedge funds ....................................................................................................... — — 291 291
Private equity funds ............................................................................................ — — 89 89
Real estate funds ................................................................................................ 10 — 47 57
Diversified commodities funds .......................................................................... — 20 — 20
$ 833 $ 882 $ 430 $ 2,145
(a) Includes securities issued and guaranteed by U.S. and non-U.S. governments.
(b) Primarily consists of securities issued by governmental agencies and municipalities.
(c) Comprised of U.S. residential and commercial mortgage-backed securities.
Cash and short-term investment funds consist of cash on hand and short-term investment funds that provide for daily investments
and redemptions and are valued and carried at a $1 net asset value (NAV) per fund share. Cash on hand is classified as Level 1 and
short-term investment funds are classified as Level 2.
Equities consist of equity securities issued by U.S. and non-U.S. corporations as well as commingled investment funds that invest
in equity securities. Individually held equity securities, which are traded actively on exchanges and have readily available price
quotes, are classified as Level 1. Commingled fund values, which are valued at the NAV per fund share derived from the quoted
prices in active markets of the underlying securities, are classified as Level 2.
Fixed income investments consist of securities issued by the U.S. government, non-U.S. governments, governmental agencies,
municipalities and corporations, and agency and non-agency mortgage-backed securities. This investment category also includes
commingled investment funds that invest in fixed income securities. Individual fixed income securities are generally priced on the
basis of evaluated prices from independent pricing services, which are monitored and provided by the third-party custodial firm
responsible for safekeeping plan assets. Individual fixed income securities are classified as Level 2 or 3. Fixed income commingled