KeyBank 2015 Annual Report Download - page 221

therefore, are classified as Level 1. Investments in common investment funds are valued at their closing net asset
value. Because net asset values are based primarily on observable inputs, most notably quoted prices for the
underlying assets, these nonexchange-traded investments are classified as Level 2.
The following tables show the fair values of our postretirement 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
Mutual funds:
Equity — U.S. $18 — — $18
Equity — International 4— — 4
Fixed income — U.S. 4— — 4
Common investment funds:
Equity — U.S. — $ 16 — 16
Equity — International —4—4
Convertible securities —2—2
Short-term investments —1—1
Total net assets at fair value $ 26 $ 23 — $ 49
December 31, 2014
in millions Level 1 Level 2 Level 3 Total
ASSET CLASS
Mutual funds:
Equity — U.S. $ 18 — — $ 18
Equity — International 1 — — 1
Fixed income — U.S. 4 — — 4
Fixed income — International 1 — — 1
Common investment funds:
Equity — U.S. — $ 21 — 21
Equity — International — 7 — 7
Convertible securities — 3 — 3
Short-term investments — 1 — 1
Total net assets at fair value $ 24 $ 32 — $ 56
The Medicare Prescription Drug, Improvement and Modernization Act of 2003 introduced a prescription drug
benefit under Medicare and prescribes a federal subsidy to sponsors of retiree healthcare benefit plans that offer
prescription drug coverage that is “actuarially equivalent” to the benefits under Medicare Part D. Based on our
application of the relevant regulatory formula, we determined that the prescription drug coverage related to our
retiree healthcare benefit plan is not actuarially equivalent to the Medicare benefit for the vast majority of
retirees. For the years ended December 31, 2015, and December 31, 2014, we did not receive federal subsidies.
Employee 401(k) Savings Plan
A substantial number of our employees are covered under a savings plan that is qualified under Section 401(k) of
the Internal Revenue Code. The plan permits employees to contribute from 1% to 100% of eligible
compensation, with up to 6% being eligible for matching contributions. Commencing January 1, 2010, an
automatic enrollment feature was added to the plan for all new employees. The initial default contribution
percentage for employees is 2% and will increase by 1% at the beginning of each plan year until the default
contribution is 10% for plan years on and after January 1, 2012. The plan also permits us to provide a
discretionary annual profit sharing contribution. We accrued a 2% contribution for 2015 and made contributions
of 2% for each of 2014 and 2013 on eligible compensation for employees eligible on the last business day of the
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