Policy

The fair value of the pension and other postretirement benefit plan assets by category is summarized below:



	December 31, 2013
(Millions of dollars)	Level 1		Level 2		Level 3		Total Assets, at Fair Value
U.S. Pension
Equity securities:
U.S. equities	$	4,337	$	—	$	129	$	4,466
Non-U.S. equities	3,058		—		—		3,058

Fixed income securities:
U.S. corporate bonds	—		2,123		34		2,157
Non-U.S. corporate bonds	—		327		20		347
U.S. government bonds	—		774		—		774
U.S. governmental agency mortgage-backed securities	—		905		—		905
Non-U.S. government bonds	—		52		—		52

Real estate	—		—		8		8

Cash, short-term instruments and other	22		606		—		628
Total U.S. pension assets	$	7,417	$	4,787	$	191	$	12,395



	December 31, 2012
(Millions of dollars)	Level 1		Level 2		Level 3		Total Assets, at Fair Value
U.S. Pension
Equity securities:
U.S. equities	$	4,460	$	3	$	98	$	4,561
Non-U.S. equities	2,691		2		—		2,693

Fixed income securities:
U.S. corporate bonds	—		1,490		23		1,513
Non-U.S. corporate bonds	—		231		10		241
U.S. government bonds	—		694		8		702
U.S. governmental agency mortgage-backed securities	—		794		1		795
Non-U.S. government bonds	—		33		3		36

Real estate	—		—		8		8

Cash, short-term instruments and other	13		419		—		432
Total U.S. pension assets	$	7,164	$	3,666	$	151	$	10,981



	December 31, 2011
(Millions of dollars)	Level 1		Level 2		Level 3		Total Assets, at Fair Value
U.S. Pension
Equity securities:
U.S. equities	$	4,314	$	—	$	77	$	4,391
Non-U.S. equities	2,366		—		—		2,366

Fixed income securities:
U.S. corporate bonds	—		1,178		35		1,213
Non-U.S. corporate bonds	—		143		6		149
U.S. government bonds	—		462		7		469
U.S. governmental agency mortgage-backed securities	—		891		3		894
Non-U.S. government bonds	—		31		—		31

Real estate	—		—		8		8

Cash, short-term instruments and other	48		428		—		476
Total U.S. pension assets	$	6,728	$	3,133	$	136	$	9,997



	December 31, 2013
(Millions of dollars)	Level 1		Level 2		Level 3		Total Assets, at Fair Value
Non-U.S. Pension
Equity securities:
U.S. equities	$	607	$	1	$	—	$	608
Non-U.S. equities	1,022		160		—		1,182
Global equities ¹	235		54		—		289

Fixed income securities:
U.S. corporate bonds	—		84		9		93
Non-U.S. corporate bonds	—		534		12		546
U.S. government bonds	—		3		—		3
Non-U.S. government bonds	—		418		—		418
Global fixed income ¹	—		397		—		397

Real estate	—		136		111		247

Cash, short-term instruments and other ²	141		25		—		166
Total non-U.S. pension assets	$	2,005	$	1,812	$	132	$	3,949



	December 31, 2012
(Millions of dollars)	Level 1		Level 2		Level 3		Total Assets, at Fair Value
Non-U.S. Pension
Equity securities:
U.S. equities	$	436	$	2	$	—	$	438
Non-U.S. equities	1,038		118		—		1,156
Global equities ¹	244		27		—		271

Fixed income securities:
U.S. corporate bonds	—		37		3		40
Non-U.S. corporate bonds	—		494		2		496
U.S. government bonds	—		3		—		3
Non-U.S. government bonds	—		169		—		169
Global fixed income ¹	—		403		—		403

Real estate	—		114		104		218

Cash, short-term instruments and other ²	185		47		—		232
Total non-U.S. pension assets	$	1,903	$	1,414	$	109	$	3,426



	December 31, 2011
(Millions of dollars)	Level 1		Level 2		Level 3		Total Assets, at Fair Value
Non-U.S. Pension
Equity securities:
U.S. equities	$	356	$	1	$	—	$	357
Non-U.S. equities	822		84		—		906
Global equities ¹	198		40		—		238

Fixed income securities:
U.S. corporate bonds	—		16		4		20
Non-U.S. corporate bonds	—		395		5		400
U.S. government bonds	—		3		—		3
Non-U.S. government bonds	—		200		—		200
Global fixed income ¹	—		363		—		363

Real estate	—		100		97		197

Cash, short-term instruments and other ²	109		25		—		134
Total non-U.S. pension assets	$	1,485	$	1,227	$	106	$	2,818


¹	Includes funds that invest in both U.S. and non-U.S. securities.


²	Includes funds that invest in multiple asset classes, hedge funds and other.



	December 31, 2013
(Millions of dollars)	Level 1		Level 2		Level 3		Total Assets, at Fair Value
Other Postretirement Benefits
Equity securities:
U.S. equities	$	388	$	—	$	—	$	388
Non-U.S. equities	189		—		—		189

Fixed income securities:
U.S. corporate bonds	—		101		—		101
Non-U.S. corporate bonds	—		17		—		17
U.S. government bonds	—		23		—		23
U.S. governmental agency mortgage-backed securities	—		49		—		49
Non-U.S. government bonds	—		2		—		2

Cash, short-term instruments and other	8		45		—		53
Total other postretirement benefit assets	$	585	$	237	$	—	$	822



	December 31, 2012
(Millions of dollars)	Level 1		Level 2		Level 3		Total Assets, at Fair Value
Other Postretirement Benefits
Equity securities:
U.S. equities	$	387	$	—	$	—	$	387
Non-U.S. equities	194		—		—		194

Fixed income securities:
U.S. corporate bonds	—		70		—		70
Non-U.S. corporate bonds	—		11		—		11
U.S. government bonds	—		27		—		27
U.S. governmental agency mortgage-backed securities	—		33		—		33
Non-U.S. government bonds	—		2		—		2

Cash, short-term instruments and other	18		47		—		65
Total other postretirement benefit assets	$	599	$	190	$	—	$	789



	December 31, 2011
(Millions of dollars)	Level 1		Level 2		Level 3		Total Assets, at Fair Value
Other Postretirement Benefits
Equity securities:
U.S. equities	$	410	$	—	$	—	$	410
Non-U.S. equities	191		—		—		191

Fixed income securities:
U.S. corporate bonds	—		67		—		67
Non-U.S. corporate bonds	—		8		—		8
U.S. government bonds	—		21		—		21
U.S. governmental agency mortgage-backed securities	—		47		—		47
Non-U.S. government bonds	—		1		—		1

Cash, short-term instruments and other	4		65		—		69
Total other postretirement benefit assets	$	605	$	209	$	—	$	814

CATERPILLAR INC | 2013 | FY |