Meritor Acquisition and 2022 Financial Results slide image

Meritor Acquisition and 2022 Financial Results

Table of Contents In millions Equities U.S. Non-U.S. Fixed income Net cash equivalents (¹) Insurance annuity Private markets and real assets (2) Net plan assets subject to leveling Investments measured at net asset value Net plan assets $ Quoted prices in active markets for identical assets (Level 1) Fair Value Measurements at December 31, 2021 Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total S 77 79 $ 74 79 74 775 35 35 514 514 389 389 35 $ 153 $ 903 $ 1,091 1,299 $ 2,390 (1) Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments. (2) The instruments in private markets and real assets, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statements of the funds. Private markets include equity, venture capital and private credit instruments and funds. Real assets include real estate and infrastructure. (3) Accruals include interest or dividends that were not settled at December 31. Certain of our assets are valued based on their respective NAV (or its equivalent), as an alternative to estimated fair value due to the absence of readily available market prices. The fair value of each such investment category was as follows: • • U.S. and Non-U.S. Corporate Debt ($77 million and $894 million at December 31, 2022 and 2021, respectively) - These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. U.S. and Non-U.S. Equities ($0 million and $194 million at December 31, 2022 and 2021, respectively)- These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. Government Debt ($64 million at December 31, 2022) - These commingled funds have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. Asset/Mortgage Backed Securities ($128 million and $99 million at December 31, 2022 and 2021, respectively) - This asset type represents investments in fixed- and floating-rate loans. These funds are valued using NAVs and allow quarterly or more frequent redemptions. Re-insurance ($54 million and $61 million at December 31, 2022 and 2021, respectively) - This commingled fund has a NAV that is determined on a monthly basis and the investment may be sold at that value. Diversified Strategies ($0 million and $51 million at December 31, 2022 and 2021, respectively) - These commingled funds invest in commodities, fixed income and equity securities. They have observable NAVs provided to investors and provide for liquidity either immediately or within a couple of days. 102
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