Investor Presentaiton
Other Postretirement Benefits Plans
A summary of the fair value of other postretirement benefits plan assets at December 31, 2022 and 2021, is as follows:
Quoted prices
in active
markets for
identical
Other
observable
assets
Total
(Level 1)
inputs
(Level 2)
Unobservable
inputs
(Level 3)
(In millions)
2022
Cash equivalents
$
3
$
3 $
Common collective and other trusts measured at net asset
value
13
Total other postretirement benefits plan assets
16
$
3
$
$
(In millions)
Quoted prices
in active
markets for
identical
Total
assets
(Level 1)
Other
observable
inputs
Unobservable
inputs
(Level 2)
(Level 3)
2021
Cash equivalents
$
3 $
3 $
Common collective and other trusts measured at net asset
value
16
Total other postretirement benefits plan assets
Valuation Methodologies
$
19 $
3 $
$
Following is a description of the valuation methodologies used for pension and other postretirement benefits plan assets
measured at fair value. There have been no changes in the methodologies used at December 31, 2022 and 2021.
Common collective and other trusts - Valued at the net unit value of units held by the trust at year end. The unit value is
determined by the total value of fund assets divided by the total number of units of the fund owned. The equity investments
in collective trusts are predominantly in index funds for which the underlying securities are actively traded in public markets
based upon readily measurable prices. The investments in other trusts are predominantly in exchange traded funds for which
the underlying securities are actively traded in public markets based upon readily measurable prices. Common collective and
other trusts measured at fair value using the net asset value per share practical expedient have not been categorized in the
fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the
total plan assets.
Fixed income securities - These securities consist of publicly traded United States and non-United States fixed interest
obligations (principally corporate and government bonds and debentures). The fair value of corporate and government debt
securities is determined through third-party pricing models that consider various assumptions, including time value, yield
curves, credit ratings, and current market prices. The Company verifies the results of trustees or custodians and evaluates the
pricing classification of these securities by performing analyses using other third-party sources.
Equity securities - These securities consist of comingled funds and direct investments consisting of the stock of publicly
traded companies. Such investments are valued based on the closing price reported in an active market on which the
individual securities are traded.
United States treasuries - Valued at the closing price of each security.
Bank loans - These securities consist of senior secured term loans of publicly traded and privately held United States and
non-United States floating rate obligations (principally corporations of non-investment grade rating). The fair value is
determined through third-party pricing models that primarily utilize dealer quoted current market prices. The Company
verifies the results of trustees or custodians and evaluates the pricing classification of these securities by performing
analyses using other third-party sources.
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