10-K
UNION CARBIDE CORP /NEW/ filed this Form 10-K on 02/15/2018
Entire Document
 

The following table summarizes the bases used to measure the Corporation’s pension plan assets at fair value for the years ended December 31, 2017 and 2016:

Basis of Fair Value Measurements
Dec 31, 2017
Dec 31, 2016 1
In millions
Total
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Cash and cash equivalents
$
193

$
153

$
40

$

$
242

$
237

$
5

$

Equity securities:
 
 
 
 
 
 
 
 
U.S. equity securities
$
374

$
357

$
17

$

$
253

$
236

$
17

$

Non - U.S. equity securities
472

404

61

7

294

234

54

6

Total equity securities
$
846

$
761

$
78

$
7

$
547

$
470

$
71

$
6

Fixed income securities:
 
 
 
 
 
 
 
 
Debt - government-issued
$
873

$

$
873

$

$
893

$

$
893

$

Debt - corporate-issued
515


515


512


512


Debt - asset-backed
24


24


33


33


Total fixed income securities
$
1,412

$

$
1,412

$

$
1,438

$

$
1,438

$

Alternative investments:
 
 
 
 
 
 
 
 
Hedge funds
$
292

$

$
124

$
168

$
341

$
21

$
139

$
181

Private market securities
237



237

214



214

Real estate
360



360

329



329

Derivatives - asset position
6


6


55


55


Derivatives - liability position
(32
)

(32
)

(66
)

(66
)

Total alternative investments
$
863

$

$
98

$
765

$
873

$
21

$
128

$
724

Other investments
$
(6
)
$

$
(6
)
$

$
18

$

$
(1
)
$
19

Subtotal
$
3,308

$
914

$
1,622

$
772

$
3,118

$
728

$
1,641

$
749

Items to reconcile to fair value of plan assets:
 
 
 
 
 
 
 
 
Pension trust receivables 2
$
2

 

 

 

$
4

 

 

 

Pension trust payables 3
(3
)
 

 

 

(25
)
 
 
 
Total
$
3,307

 

 

 

$
3,097

 

 

 

1.
As a result of the DowDuPont merger, certain asset categories and classifications of prior period amounts have been revised to improve comparability with the presentation of Dow and DowDuPont, including the reclassification of cash and cash equivalents of $237 million, equity securities of $124 million and alternative investments of $21 million from Level 2 to Level 1. Further, pension trust receivables and pension trust payables previously presented with Level 2 investments are now separately presented.
2.
Primarily receivables for investment securities sold.
3.
Primarily payables for investment securities purchased.

The following table summarizes the changes in fair value of Level 3 pension plan assets for the years ended December 31, 2017 and 2016:

Fair Value Measurement of Level 3 Pension Plan Assets 1
Equity Securities
Alternative Investments
Other Investments
Total
In millions
Balance at Jan 1, 2016
$
5

$
720

$
22

$
747

Actual return on plan assets:






 
Relating to assets held at Dec 31, 2016
1

(37
)
2

(34
)
Relating to assets sold during 2016

39

(8
)
31

Purchases, sales and settlements

2

3

5

Balance at Dec 31, 2016
$
6

$
724

$
19

$
749

Actual return on plan assets:
 
 
 
 
Relating to assets held at Dec 31, 2017

4


4

Relating to assets sold during 2017

25


25

Purchases, sales and settlements
1

12

(19
)
(6
)
Balance at Dec 31, 2017
$
7

$
765

$

$
772

1.
As a result of the DowDuPont merger, certain classifications of prior period amounts have been revised to improve comparability with the presentation of Dow and DowDuPont, including the reclassification of $77 million at December 31, 2016 ($51 million at December 31, 2015) of assets from fixed income securities to alternative investments.


46