JP Morgan Chase 2013 Annual Report Download - page 238

Notes to consolidated financial statements
244 JPMorgan Chase & Co./2013 Annual Report
U.S. defined benefit pension plans Non-U.S. defined benefit pension plans(i)
December 31, 2012
(in millions) Level 1 Level 2 Level 3 Total fair value Level 1 Level 2 Total fair value
Cash and cash equivalents $ 162 $ — $ — $ 162 $ 142 $ — $ 142
Equity securities:
Capital equipment 702 6 — 708 115 15 130
Consumer goods 744 4 — 748 136 32 168
Banks and finance companies 425 54 — 479 94 23 117
Business services 424 — — 424 125 8 133
Energy 192 — — 192 54 12 66
Materials 211 — — 211 30 6 36
Real estate 18 — — 18 10 — 10
Other 1,107 42 4 1,153 19 71 90
Total equity securities 3,823 106 4 3,933 583 167 750
Common/collective trust funds(a) 412 1,660 199 2,271 62 192 254
Limited partnerships:(b)
Hedge funds — 878 1,166 2,044 — — —
Private equity — — 1,743 1,743 — — —
Real estate — — 467 467 — — —
Real assets(c) — — 311 311 — — —
Total limited partnerships — 878 3,687 4,565 — — —
Corporate debt securities(d) — 1,114 1 1,115 — 765 765
U.S. federal, state, local and non-U.S. government
debt securities — 537 — 537 — 1,237 1,237
Mortgage-backed securities 107 30 — 137 100 — 100
Derivative receivables 3 5 — 8 109 — 109
Other(e) 7 34 420 461 21 67 88
Total assets measured at fair value(f)(g) $ 4,514 $ 4,364 $ 4,311 $ 13,189 $ 1,017 $ 2,428 $ 3,445
Derivative payables $ — $ (4) $ — $ (4) $ (116) $ — $ (116)
Total liabilities measured at fair value(h) $ — $ (4) $ — $ (4) $ (116) $ — $ (116)
(a) At December 31, 2013 and 2012, common/collective trust funds primarily included a mix of short-term investment funds, domestic and international
equity investments (including index) and real estate funds.
(b) Unfunded commitments to purchase limited partnership investments for the plans were $1.6 billion and $1.4 billion for 2013 and 2012, respectively.
(c) Real assets include investments in productive assets such as agriculture, energy rights, mining and timber properties and exclude raw land to be
developed for real estate purposes.
(d) Corporate debt securities include debt securities of U.S. and non-U.S. corporations.
(e) Other consists of money markets, exchange-traded funds and participating and non-participating annuity contracts. Money markets and exchange-traded
funds are primarily classified within level 1 of the fair value hierarchy given they are valued using market observable prices. Participating and non-
participating annuity contracts are classified within level 3 of the fair value hierarchy due to lack of market mechanisms for transferring each policy and
surrender restrictions.
(f) At December 31, 2013 and 2012, the fair value of investments valued at NAV were $2.7 billion and $4.4 billion, respectively, which were classified
within the valuation hierarchy as follows: $100 million and $400 million in level 1, $1.9 billion and $2.5 billion in level 2 and $700 million and
$1.5 billion in level 3.
(g) At December 31, 2013 and 2012, excluded U.S. defined benefit pension plan receivables for investments sold and dividends and interest receivables of
$96 million and $137 million, respectively; and at December 31, 2012, excluded non-U.S. defined benefit pension plan receivables for investments sold
and dividends and interest receivables of $47 million.
(h) At December 31, 2013 and 2012, excluded $102 million and $306 million, respectively, of U.S. defined benefit pension plan payables for investments
purchased; and $2 million and $4 million, respectively, of other liabilities; and at December 31, 2012, excluded non-U.S. defined benefit pension plan
payables for investments purchased of $46 million.
(i) There were no assets or liabilities classified as level 3 for the non-U.S. defined benefit pension plans as of December 31, 2013 and 2012.
The Firm’s U.S. OPEB plan was partially funded with COLI policies of $1.7 billion and $1.6 billion at December 31, 2013 and
2012, respectively, which were classified in level 3 of the valuation hierarchy.