The assets of our Post-65 Plan are held in two separate Voluntary Employee Beneficiary
Association (“VEBA”) trusts. The VEBA plan assets are maintained in directed trust
accounts at a commercial bank.
The investment strategy for the Company’s DB Plan and OPEB Plans utilizes several
different asset classes with varying risk/return characteristics. The following table indicates
the asset allocation percentages of the fair value of the DB Plan and OPEB Plans’ assets for
each major type of plan asset as of December 31, 2017, as well as the targeted allocation
range:
DB Plan OPEB Plans
Asset Asset
Allocation Allocation
Range Range
Equities 63% 30% - 100% 69% 30% - 100%
Fixed income 37% 20% - 70% 29% 0% - 50%
Cash and cash equivalents 0% 0% - 15% 2% 0% - 15%
Total 100% 100%
The following table indicates the asset allocation percentages of the fair value of the DB Plan
and OPEB Plans’ assets for each major type of plan asset as of December 31, 2016, as well
as the targeted allocation range:
DB Plan OPEB Plans
Asset Asset
Allocation Allocation
Range Range
Equities 64% 30% - 100% 68% 30% - 100%
Fixed income 36% 20% - 70% 30% 0% - 50%
Cash and cash equivalents 0% 0% - 15% 2% 0% - 15%
Total 100% 100%
Management uses its best judgment in estimating the fair value of its financial instruments.
However, there are inherent weaknesses in any estimation technique. Therefore, for substan-
tially ail financial instruments, the fair value estimates herein are not necessarily indicative of
the amounts that we could realize in a sales transaction for these instruments. The estimated
fair value amounts have been measured as of year-end and have not been reevaluated or
updated for purposes of these consolidated financial statements subsequent to those respective
dates.
Investments in common stock and mutual funds are stated at fair value by reference to quoted
market prices. Money market funds are valued utilizing the net asset value per unit based on
the fair value of the underlying assets as determined by the directed trustee.
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