Pepsi 2014 Annual Report Download - page 120

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100
Plan assets measured at fair value as of fiscal year-end 2014 and 2013 are categorized consistently by level
in both years, and are as follows:
2014 2013
Total
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs (Level 2)
Significant
Unobservable
Inputs (Level 3) Total
U.S. plan assets(a)
Equity securities:
U.S. common stock(b) $ 966 $ 966 $ — $ — $ 732
U.S. commingled funds(c) (d) 3,437 — 3,437 — 3,334
International common stock(b) 1,488 1,488 — — 1,669
International commingled fund(e) 876 — 876 — 902
Preferred stock(f) 22 — 22 — 18
Fixed income securities:
Government securities(f) 1,279 — 1,279 — 1,264
Corporate bonds(f) (g) 3,338 — 3,338 — 2,958
Mortgage-backed securities(f) 274 — 274 — 220
Other:
Contracts with insurance companies(h) 6— — 6 6
Real estate commingled funds(i) 629 — — 629 552
Cash and cash equivalents 267 267 — — 154
Sub-total U.S. plan assets 12,582 $ 2,721 $ 9,226 $ 635 11,809
Dividends and interest receivable 57 59
Total U.S. plan assets $ 12,639 $ 11,868
International plan assets
Equity securities:
U.S. common stock(b) $ 5 $ 5 $ — $ — $ 4
U.S. commingled funds(c) 373 — 373 — 334
International common stock(b) 171 171 — — 176
International commingled funds(e) 918 — 918 — 914
Preferred stock(f) 1— 1 — 1
Fixed income securities:
Government securities(f) 454 — 454 — 207
Corporate bonds(f) 320 — 320 — 261
Fixed income commingled funds(j) 517 — 517 — 650
Other:
Contracts with insurance companies(h) 36 — — 36 34
Currency commingled fund(k) 87 — 87 — 91
Real estate commingled fund(i) 92 — — 92 83
Cash and cash equivalents 21 21 — — 15
Sub-total international plan assets 2,995 $ 197 $ 2,670 $ 128 2,770
Dividends and interest receivable 77
Total international plan assets $ 3,002 $ 2,777
(a) 2014 and 2013 amounts include $415 million and $406 million, respectively, of retiree medical plan assets that are restricted for purposes of providing health
benefits for U.S. retirees and their beneficiaries.
(b) Based on quoted market prices in active markets.
(c) Based on the fair value of the investments owned by these funds that track various U.S. large, mid-cap and small company indices.
(d) Includes one large-cap fund that represents 25% of total U.S. plan assets for both 2014 and 2013.
(e) Based on the fair value of the investments owned by these funds that track various non-U.S. equity indices.
(f) Based on quoted bid prices for comparable securities in the marketplace and broker/dealer quotes in active markets.
(g) Corporate bonds of U.S.-based companies represent 23% and 21%, respectively, of total U.S. plan assets for 2014 and 2013.
(h) Based on the fair value of the contracts as determined by the insurance companies using inputs that are not observable.
(i) Based on the appraised value of the investments owned by these funds as determined by independent third parties using inputs that are not observable.
(j) Based on the fair value of the investments owned by these funds that track various government and corporate bond indices.
(k) Based on the fair value of the investments owned by this fund that invests primarily in derivatives to hedge currency exposure.
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