Mondelez 2014 Annual Report Download - page 89

Table of Contents
We excluded plan assets of $74 million at December 31, 2014 and $81 million at December 31, 2013 from the above tables related
to certain insurance contracts as they are reported at contract value, in accordance with authoritative guidance.
Fair value measurements:
86
As of December 31, 2013
Quoted Prices
Significant
Asset Category
Total Fair
Value
in Active Markets
for Identical
Assets
(Level 1)
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
(in millions)
U.S. equity securities
$
104
$
104
$
–
$
–
Non
-
U.S. equity securities
665
665
–
–
Pooled funds
-
equity securities
2,571
799
1,772
–
Total equity securities
3,340
1,568
1,772
–
Government bonds
1,560
308
1,252
–
Pooled funds - fixed-income securities
1,176
311
850
15
Corporate bonds and other
fixed-income securities
1,350
108
462
780
Total fixed-income securities
4,086
727
2,564
795
Real estate
381
110
4
267
Hedge funds
820
–
–
820
Private equity
227
–
–
227
Cash
251
251
–
–
Other
54
–
54
–
Total
$
9,159
$
2,656
$
4,394
$
2,109
• Level 1 – includes primarily U.S and non-U.S. equity securities and government bonds valued using quoted prices in
active markets.
• Level 2 – includes primarily pooled funds, including assets in real estate pooled funds, valued using net asset values of
participation units held in common collective trusts, as reported by the managers of the trusts and as supported by the
unit prices of actual purchase and sale transactions. Level 2 plan assets also include corporate bonds and other fixed-
income securities, valued using independent observable market inputs, such as matrix pricing, yield curves and indices.
• Level 3 – includes investments valued using unobservable inputs that reflect the plans’ assumptions that market
participants would use in pricing the assets, based on the best information available.
• Fair value estimates for pooled funds are calculated by the investment advisor when reliable quotations or pricing services are not readily available for certain underlying securities. The estimated value is based on either cost, or
last sale price for most of the securities valued in this fashion.
• Fair value estimates for private equity investments are calculated by the general partners using the market
approach to estimate the fair value of private investments. The market approach utilizes prices and other relevant
information generated by market transactions, type of security, degree of liquidity, restrictions on the disposition,
latest round of financing data, company financial statements, relevant valuation multiples and discounted cash
flow analyses.
• Fair value estimates for real estate investments are calculated by the investment managers using the present value of future cash flows expected to be received from the investments, based on valuation methodologies such
as appraisals, local market conditions, and current and projected operating performance.
• Fair value estimates for investments in hedge fund-of-funds are calculated by the investment managers using the
net asset value per share of the investment as reported by the money managers of the underlying funds.
• Fair value estimates for certain fixed-income securities such as insurance contracts are calculated based on the
future stream of benefit payments discounted using prevailing interest rates based on the valuation date.