Voya 2014 Annual Report Download - page 354

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
assets. Corporate bonds, ABS and U.S. agency bonds use observable pricing method such as matrix pricing,
market corroborated pricing or inputs such as yield curves and indices. These investments are classified as
Level 2.
International Commingled Funds: Commingled funds are classified as Level 2 investments. These investments
categorize alternative assets as Level 2 when there is an ability to redeem its investments with the investee at the
NAV per share at the measurement date. If it is redeemable at a future date, the entity must consider the length of
time in which the investment is redeemable in making the determination of the fair value hierarchy level. See
subscript (3) in Fair Value Hierarchy table footnotes for description of the fund’s redemption policies.
Equity securities: Fair values are based upon a quoted market price determined in an active market and are
included in Level 1. The valuations obtained from broker-dealers are non-binding.
Real estate: Real estate is based on unobservable inputs. The fair value used relies on the investment manager’s
own assumptions and the use of appraisals. These investments are included in Level 3. The fair value of the
investment in this category has been estimated using the NAV per share. See subscript (5) in Fair Value
Hierarchy table footnotes for more information on real estate.
Limited partnerships: Limited partnerships are classified as Level 3 because of the investment manager’s use of
unobservable inputs in its valuation assumptions. The fair value of the investments in this category has been
estimated using the NAV per share. See subscript (6) in Fair Value Hierarchy table footnotes for more
information on limited partnerships.
Derivatives: Futures contracts are based on unadjusted quoted prices from an active exchange and therefore, are
classified as Level 1.
Transfers in and out of Level 1 and 2
There were no securities transferred between Level 1 and Level 2 for the years ended December 31, 2014 and
2013. The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting
period.
The following table summarizes the change in fair value of the pension plan’s Level 3 assets and liabilities and
transfers in and out of Level 3 for the years ended December 31, 2014 and 2013:
2014
Actual Return on
Plan Assets
Issuances Settlements
Transfers
in to
Level 3
Transfers
out of
Level 3
Fair Value
as of
January 1
Held at
Year-end
Sold
During
Year Purchases Sales
Fair Value
as of
December 31
Real estate ....... $ 74.6 $0.3 $— $ 6.9 $— $ — $— $— $— $ 81.8
Limited
partnerships .... 147.5 3.7 9.2 10.1 — (23.2) — — — 147.3
$222.1 $4.0 $ 9.2 $17.0 $— $(23.2) $— $— $— $229.1
331