The assets of our Post-65 Plan are held in two separate Voluntary Employee Beneficiary
Association (“VEBA”) trusts. We maintain our VEBA plan assets in directed trust accounts
at a commercial bank.
The investment strategy for our DB Plan and our 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, 2015, as well as the targeted allocation range:
DB Plan OPEB Plans
Asset Asset
Allocation Allocation
___Range __Range
Equities 62% 30% - 100% 66% 30% - 100%
Fixed income 38% 20% - 70% 31% 0% - 50%
Cash and cash equivalents 0% 0% - 15% 3% 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, 2014, as well
as the targeted allocation range:
DB Pian OPEB Plans
Asset Asset
Allocation Allocation
Range Range
Equities 61% 30% - 100% 71% 30% - 100%
Fixed income 39% 20% - 70% 28% 0% - 50%
Cash and cash equivalents 0% 0% - 15% 1% 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 all 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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