Union Pacific 2011 Annual Report Download - page 67

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67
multiples to private company cash flows, market transactions that provide valuation information for
comparable companies, and other methods. Holdings of limited partnership interests are classified as
Level 3 investments.
Real Estate Partnerships and Funds – Most of the real estate investments are partnership interests
similar to those described in the Venture Capital and Buyout Partnerships category. This category also
includes real estate investments held in less commonly used structures such as private real estate
investment trusts and pooled separate accounts. Valuations for the holdings in this category are not
based on readily observable inputs and are primarily derived from property appraisals. Interests in
private real estate partnerships, investment funds and pooled separate accounts are classified as Level 3
investments.
Common Trust and Other Funds – Common trust funds are comprised of shares or units in commingled
funds that are not publicly traded. The underlying assets in these funds (U.S. stock funds, non-U.S. stock
funds, commodity funds, and short term investment funds) are publicly traded on exchanges and price
quotes for the assets held by these funds are readily available. Holdings of common trust funds are
classified as Level 2 investments.
This category also includes an investment in a limited liability company that invests in publicly-traded
convertible securities. The limited liability company investment is a fund that invests in both long and
short positions in convertible securities, stocks, and fixed income securities. The underlying securities
held by the fund are traded actively on exchanges and price quotes for these investments are readily
available. Interest in the limited liability company is classified as a Level 2 investment.
Other Investments – This category includes several miscellaneous assets such as commodity hedge
fund investments. These investments have valuations that are based on observable inputs and are
classified as Level 2 investments.
As of December 31, 2011, the pension plan assets measured at fair value on a recurring basis were as
follows:
Quoted Prices Significan
t
in Active Othe
r
Significan
t
Markets fo
r
Observable Unobservable
Identical Inputs Inputs Inputs
Millions (Level 1) (Level 2) (Level 3) Tota
l
Plan assets:
Temporary cash investments $ 22 $ - $ - $ 22
Registered investment companies 8 280 - 288
U.S. government securities - 155 - 155
Corporate bonds & debentures - 343 - 343
Corporate stock 547 8 - 555
Venture capital and buyout partnerships - - 184 184
Real estate partnerships and funds - - 126 126
Common trust and other funds - 815 - 815
Other investments - 29 - 29
Total plan assets at fair value $ 577 $ 1,630 $ 310 2,517
Other assets [a] (12)
Total plan assets $ 2,505
[a] Other assets include accrued receivables and pending broker settlements.