Progress Energy 2010 Annual Report Download - page 100

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table sets forth by level within the fair value
hierarchy of our pension plan assets at December 31, 2010
and 2009. See Note 13 for detailed information regarding
the fair value hierarchy.
Pension Benefit Plan Assets
(in millions) Level 1 Level 2 Level 3 Total
2010
Assets
Cash and cash equivalents $– $94 $– $94
International equity securities 40 – – 40
Domestic equity securities 286 – – 286
Private equity securities – – 147 147
Corporate bonds – 216 – 216
U.S. state and municipal debt – 19 – 19
U.S. and foreign government debt 144 30 – 174
Commingled funds – 847 – 847
Hedge funds – 51 2 53
Timber investments – – 11 11
Interest rate swaps and other
investments – 4 – 4
Fair value of plan assets $470 $1,261 $160 $1,891
2009
Assets
Cash and cash equivalents $1 $96 $– $97
Domestic equity securities 263 1 – 264
Private equity securities – – 122 122
Corporate bonds – 67 – 67
U.S. state and municipal debt – 4 – 4
U.S. and foreign government debt 25 95 – 120
Mortgage backed securities – 22 – 22
Commingled funds – 888 – 888
Hedge funds – 47 2 49
Timber investments – – 14 14
Interest rate swaps and other
investments – 56 – 56
Total assets $289 $1,276 $138 $1,703
Liabilities
Foreign currency contracts $5 $– $– $5
Interest rate swaps and other
investments – 25 – 25
Total liabilities 5 25 – 30
Fair value of plan assets $284 $1,251 $138 $1,673
At December 31, 2010, our other postretirement benefit
plan assets had a fair value of $33 million, which consisted
of U.S. state and municipal assets classified as Level 2 in
the fair value hierarchy as of December 31, 2010.
The following table sets forth the fair value hierarchy of
our other postretirement plan assets at December 31,
2009. See Note 13 for detailed information regarding the
fair value hierarchy.
Other Postretirement Benefit
Plan Assets
(in millions) Level 1 Level 2 Level 3 Total
Assets
Cash and cash equivalents $– $1 $– $1
Domestic equity securities 4 – – 4
Corporate bonds – 1 – 1
U.S. state and municipal debt – 32 – 32
U.S. and foreign government debt – 2 – 2
Commingled funds – 13 – 13
Hedge funds – 1 – 1
Interest rate swaps and other
investments – 1 – 1
Fair value of plan assets $4 $51 $– $55
A reconciliation of changes in the fair value of our
pension plan assets classified as Level 3 in the fair value
hierarchy for the years ended December 31 follows:
(in millions)
Private
Equity
Securities Hedge Funds Timber Investments Total
2010
Balance at January 1 $122 $2 $14 $138
Net realized and
unrealized gains
(losses)(a) 7 – (2) 5
Purchases, sales and
distributions, net 18 – (1) 17
Balance at December 31 $147 $2 $11 $160
2009
Balance at January 1 $111 $2 $18 $131
Net฀realized฀and฀
unrealized฀(losses)(a) (10) – (4) (14)
Purchases, sales and
distributions, net 21 – – 21
Balance at December 31 $122 $2 $14 $138
(a) Substantially all amounts relate to investments held at
December 31.