KeyBank 2015 Annual Report Download - page 217

Insurance investment contracts and pooled separate accounts. Deposits under insurance investment contracts
and pooled separate accounts with insurance companies do not have readily determinable fair values and are
valued using a methodology that is consistent with accounting guidance that allows the plan to estimate fair value
based upon net asset value per share (or its equivalent, such as member units or an ownership in partners’ capital
to which a proportionate share of net assets is attributed). The significant unobservable input used in estimating
fair value is primarily the most recent value of the investment as reported by the insurance company; thus, these
investments are classified as Level 3.
Other assets. Other assets include an investment in a multi-strategy investment fund and an investment in a
limited partnership. These investments do not have readily determinable fair values and are valued using a
methodology consistent with accounting guidance that allows the plan to estimate fair value based upon net asset
value per share (or its equivalent, such as member units or an ownership in partners’ capital to which a
proportionate share of net assets is attributed). The significant unobservable input used in estimating fair value is
primarily the most recent value of the investment as reported by the investment manager or general partner of the
investment fund; thus, these investments are classified as Level 3.
The following tables show the fair values of our pension plan assets by asset class at December 31, 2015, and
December 31, 2014.
December 31, 2015
in millions Level 1 Level 2 Level 3 Total
ASSET CLASS
Equity securities:
Common — U.S. $ 128 — — $ 128
Common — International 20 — — 20
Preferred — U.S. 2— — 2
Debt securities:
Corporate bonds — U.S. — $ 92 — 92
Corporate bonds — International — 26 — 26
Government and agency bonds — U.S. — 100 — 100
Government bonds — International — 1 — 1
State and municipal bonds —6— 6
Mutual funds:
Equity — U.S. 16 — — 16
Equity — International 24 — — 24
Fixed income — U.S. 5 — — 5
Fixed income — International 2— — 2
Collective investment funds:
Equity — U.S. —26— 26
Equity — International — 106 — 106
Convertible securities — 41 — 41
Fixed income securities — 86 — 86
Short-term investments — 21 — 21
Real assets — 101 — 101
Insurance investment contracts and pooled separate accounts — — $ 14 14
Other assets — — 52 52
Total net assets at fair value $ 197 $ 606 $ 66 $ 869
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