The fair values of the Company’s major U.K. pension plan assets at December 31, 2016 and December 31, 2015 , by asset category, are as follows (in millions):
Fair Value Measurements Using
Balance at December 31, 2016
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Cash and cash equivalents (1)
$
86
$
86
$
—
$
—
Equity investments:
Global
135
135
—
—
Pooled funds:
Global (2)
365
—
—
—
Europe (2)
18
—
—
—
Fixed income investments: (3)
Derivatives (4)
10
—
10
—
Fixed income securities (5)
2,129
1,726
403
—
Annuities
1,773
—
—
1,773
Pooled funds:
Derivatives (2)
62
—
—
—
Fixed income securities (2)
223
—
—
—
Other investments:
Real estate (2) (6)
101
—
—
—
Alternative investments (2) (7)
773
—
—
—
Total
$
5,675
$
1,947
$
413
$
1,773
(1)
Consists of cash and institutional short-term investment funds.
(2)
Certain investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note.
(3)
Consists of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles.
(4)
Consists of equity securities and equity derivatives.
(5)
Consists of corporate and government bonds and fixed income derivatives.
(6)
Consists of property funds and trusts holding direct real estate investments.
(7)
Consists of limited partnerships, private equity and hedge funds.
82
Fair Value Measurements Using
Balance at December 31, 2015
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Cash and cash equivalents (1)
$
159
$
159
$
—
$
—
Equity investments:
Derivatives
66
—
66
—
Global
133
133
—
—
Pooled funds:
Global (2)
360
—
—
—
Europe (2)
17
—
—
—
Fixed income investments: (3)
Derivatives (4)
111
—
111
—
Fixed income securities (5)
3,145
2,268
877
—
Annuities
827
—
—
827
Pooled funds:
Fixed income securities (2)
283
—
—
—
Other investments:
Real estate (2) (6)
85
—
—
—
Alternative investments (2) (7)
717
—
—
—
Total
$
5,903
$
2,560
$
1,054
$
827
(1)
Consists of cash and institutional short-term investment funds.
(2)
Certain investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note.
(3)
Consists of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles.
(4)
Consists of equity securities and equity derivatives.
(5)
Consists of corporate and government bonds and fixed income derivatives.
(6)
Consists of property funds and trusts holding direct real estate investments.
(7)
Consists of limited partnerships, private equity and hedge funds.
