US Bank 2012 Annual Report Download - page 119

plan invests in a money market mutual fund with cash
collateral from its securities lending arrangement, whose fair
value is determined based on quoted prices in markets that are
less active and therefore is classified as Level 2. Additionally,
the qualified pension plan has investments in limited
partnership interests and debt securities whose fair values are
determined by the Company by analyzing the limited
partnerships’ audited financial statements and by averaging
the prices obtained from independent pricing services,
respectively. These securities are classified as Level 3.
The following table summarizes the plan investment assets measured at fair value at December 31:
Pension Plans
Postretirement
Welfare Plan
2012 2011 2012 2011
(Dollars in Millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Level 1 Level 1
Cash and cash equivalents .................... $ 119 $ – $ – $ 23 $ – $ – $105 $120
Debt securities ................................ 151 114 7 63 36 7 – –
Corporate stock
Domestic equity securities .................. 275 – – 232 – – – –
Mid-small cap equity securities ............. 173 – – 159 – – – –
International equity securities ............... 285 – – 250 – – – –
Real estate equity securities ................ 132 – – 103 – – – –
Collective investment funds
Domestic equity securities .................. – 400 – – 509 – – –
Mid-small cap equity securities ............. – 59 – – 53 – – –
Emerging markets equity securities ......... – 61 – – 51 – – –
International equity securities ............... – 362 – – 455 – – –
Mutual funds
Money market .............................. – 7 – – 6 – – –
Debt securities .............................. – 129 – – 127 – – –
Emerging markets equity securities ......... – 71 – – 50 – – –
Other .......................................... – (7) 3 – (7) 6 – –
Total (a) .................................. $1,135 $1,196 $10 $830 $1,280 $13 $105 $120
(a) Total investment assets of the pension plans exclude obligations to return cash collateral to qualified borrowers of $20 million at December 31, 2012 and 2011, under security lending
arrangements.
The following table summarizes the changes in fair value for all plan investment assets measured at fair value using significant
unobservable inputs (Level 3) for the years ended December 31:
2012 2011 2010
(Dollars in Millions)
Debt
Securities Other
Debt
Securities Other
Debt
Securities Other
Balance at beginning of period ................................. $7 $6 $ 8 $6 $7 $ 6
Unrealized gains (losses) relating to assets still held at end
of year ..................................................... 1 (2) — (9) 3 —
Purchases, sales, and settlements, net ...................... (1) (1) (1) 9 (2) —
Balance at end of period ....................................... $ 7 $3 $ 7 $ 6 $8 $ 6
The following benefit payments are expected to be paid from the retirement plans for the years ended December 31:
(Dollars in Millions)
Pension
Plans
Postretirement
Welfare Plan (a)
Medicare Part D
Subsidy Receipts
2013 ................................................................................... $ 161 $16 $ 2
2014 ................................................................................... 166 16 2
2015 ................................................................................... 174 17 2
2016 ................................................................................... 184 17 2
2017 ................................................................................... 190 17 3
2018 — 2022 .......................................................................... 1,096 80 14
(a) Net of expected retiree contributions and before Medicare Part D subsidy.
U.S. BANCORP 115