Benefit Obligations (Tables)
 12 Months Ended
Sep. 30, 2018
Retirement Benefits [Abstract]  
Schedule of Defined Benefit Plans Disclosures
A reconciliation of the changes in the benefit obligations and fair value of assets of the defined benefit pension and post-retirement plans, the funded status of the plans, and the amounts recognized in the Consolidated Balance Sheets are provided in the tables below:
 
 
Successor
 
 
Predecessor
(In millions)
 
Period from December 16, 2017
through
September 30, 2018
 
 
Period from
October 1, 2017
through
December 15, 2017
 
Fiscal year ended September 30, 2017
Pension Benefits - U.S.
 
 
 
 
 
 
 
Change in benefit obligation
 
 
 
 
 
 
 
Projected benefit obligation at beginning of period
 
$
1,136

 
 
$
3,415

 
$
3,558

Service cost
 
3

 
 
1

 
4

Interest cost
 
28

 
 
22

 
98

Actuarial (gain) loss
 
(56
)
 
 
19

 
(18
)
Benefits paid
 
(61
)
 
 
(39
)
 
(227
)
Reorganization adjustments
 
—

 
 
(2,282
)
 
—

Projected benefit obligation at end of period
 
$
1,050

 
 
$
1,136

 
$
3,415

 
 
 
 
 
 
 
 
Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of period
 
$
889

 
 
$
2,395

 
$
2,370

Actual return on plan assets
 
10

 
 
57

 
229

Employer contributions
 
43

 
 
49

 
23

Benefits paid
 
(61
)
 
 
(39
)
 
(227
)
Reorganization adjustments
 
—

 
 
(1,573
)
 
—

Fair value of plan assets at end of period
 
$
881

 
 
$
889

 
$
2,395

Underfunded status at end of period
 
$
(169
)
 
 
$
(247
)
 
$
(1,020
)
 
 
 
 
 
 
 
 
Amount recognized in the Consolidated Balance Sheets consists of:
 
 
 
 
 
 
 
Accrued benefit liability, current
 
$
—

 
 
$
(9
)
 
$
(10
)
Accrued benefit liability, noncurrent
 
(169
)
 
 
(238
)
 
(1,010
)
Net amount recognized
 
$
(169
)
 
 
$
(247
)
 
$
(1,020
)
 
 
 
 
 
 
 
 
Amount recognized in Accumulated other comprehensive loss (pre-tax) consists of:
 
 
 
 
 
 
 
Net prior service cost
 
$
—

 
 
$
—

 
$
1

Net actuarial (gain) loss
 
(15
)
 
 
—

 
1,166

Net amount recognized
 
$
(15
)
 
 
$
—

 
$
1,167

 
 
 
 
 
 
 
 
Weighted average assumptions used to determine benefit obligations
 
 
 
 
 
 
 
Discount rate
 
4.22
%
 
 
3.70
%
 
3.73
%
Rate of compensation increase
 
4.00
%
 
 
4.00
%
 
4.00
%
 
 
Successor
 
 
Predecessor
(In millions)
 
Period from December 16, 2017
through
September 30, 2018
 
 
Period from
October 1, 2017
through
December 15, 2017
 
Fiscal year ended September 30, 2017
Pension Benefits - Non-U.S.
 
 
 
 
 
 
 
Change in benefit obligation
 
 
 
 
 
 
 
Projected benefit obligation at beginning of period
 
$
575

 
 
$
551

 
$
651

Service cost
 
5

 
 
2

 
7

Interest cost
 
7

 
 
3

 
8

Actuarial gain
 
(19
)
 
 
(2
)
 
(67
)
Benefits paid
 
(22
)
 
 
(3
)
 
(23
)
Foreign currency exchange rate changes
 
(10
)
 
 
—

 
28

Curtailments, settlements and other
 
—

 
 
—

 
(53
)
Reorganization adjustments
 
—

 
 
24

 
—

Projected benefit obligation at end of period
 
$
536

 
 
$
575

 
$
551

 
 
 
 
 
 
 
 
Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of period
 
$
15

 
 
$
15

 
$
67

Employer contributions
 
22

 
 
3

 
25

Benefits paid
 
(22
)
 
 
(3
)
 
(23
)
Curtailments, settlements and other
 
—

 
 
—

 
(54
)
Fair value of plan assets at end of period
 
$
15

 
 
$
15

 
$
15

Underfunded status at end of period
 
$
(521
)
 
 
$
(560
)
 
$
(536
)
 
 
 
 
 
 
 
 
Amount recognized in the Consolidated Balance Sheets consists of:
 
 
 
 
 
 
 
Noncurrent assets
 
$
1

 
 
$
1

 
$
1

Accrued benefit liability, current
 
(20
)
 
 
(23
)
 
(22
)
Accrued benefit liability, noncurrent
 
(502
)
 
 
(538
)
 
(515
)
Net amount recognized
 
$
(521
)
 
 
$
(560
)
 
$
(536
)
 
 
 
 
 
 
 
 
Amount recognized in Accumulated other comprehensive loss (pre-tax) consists of:
 
 
 
 
 
 
 
Net actuarial (gain) loss
 
$
(19
)
 
 
$
—

 
$
143

Net amount recognized
 
$
(19
)
 
 
$
—

 
$
143

 
 
 
 
 
 
 
 
Weighted average assumptions used to determine benefit obligations
 
 
 
 
 
 
 
Discount rate
 
1.92
%
 
 
1.92
%
 
1.92
%
Rate of compensation increase
 
4.46
%
 
 
3.66
%
 
3.66
%
 
 
Successor
 
 
Predecessor
(In millions)
 
Period from December 16, 2017
through
September 30, 2018
 
 
Period from
October 1, 2017
through
December 15, 2017
 
Fiscal year ended September 30, 2017
Post-retirement Benefits - U.S.
 
 
 
 
 
 
 
Change in benefit obligation
 
 
 
 
 
 
 
Benefit obligation at beginning of period
 
$
407

 
 
$
404

 
$
436

Service cost
 
1

 
 
—

 
2

Interest cost
 
11

 
 
3

 
13

Employee contributions
 
—

 
 
—

 
7

Actuarial (gain) loss
 
(40
)
 
 
4

 
(26
)
Benefits paid
 
(11
)
 
 
(3
)
 
(28
)
Reorganization adjustments
 
—

 
 
(1
)
 
—

Projected benefit obligation at end of period
 
$
368

 
 
$
407

 
$
404

 
 
 
 
 
 
 
 
Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of period
 
$
180

 
 
$
178

 
$
172

Actual return on plan assets
 
2

 
 
3

 
12

Employer contributions
 
7

 
 
2

 
15

Employee contributions
 
—

 
 
—

 
7

Benefits paid
 
(11
)
 
 
(3
)
 
(28
)
Fair value of plan assets at end of period
 
$
178

 
 
$
180

 
$
178

Underfunded status at end of period
 
$
(190
)
 
 
$
(227
)
 
$
(226
)
 
 
 
 
 
 
 
 
Amount recognized in the Consolidated Balance Sheets consists of:
 
 
 
 
 
 
 
Accrued benefit liability, current
 
$
(14
)
 
 
$
(12
)
 
$
(15
)
Accrued benefit liability, noncurrent
 
(176
)
 
 
(215
)
 
(211
)
Net amount recognized
 
$
(190
)
 
 
$
(227
)
 
$
(226
)
 
 
 
 
 
 
 
 
Amount recognized in Accumulated other comprehensive loss (pre-tax) consists of:
 
 
 
 
 
 
 
Net prior service credit
 
$
—

 
 
$
—

 
$
(58
)
Net actuarial (gain) loss
 
(34
)
 
 
—

 
97

Net amount recognized
 
$
(34
)
 
 
$
—

 
$
39

 
 
 
 
 
 
 
 
Weighted average assumptions used to determine benefit obligations
 
 
 
 
 
 
 
Discount rate
 
4.26
%
 
 
3.77
%
 
3.83
%
Rate of compensation increase
 
4.00
%
 
 
4.00
%
 
4.00
%
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets
The following table provides the accumulated benefit obligation for all defined benefit pension plans and information for pension plans with an accumulated benefit obligation in excess of plan assets:
 
 
Pension Benefits - U.S.
 
Pension Benefits - Non-U.S.
 
 
Successor
 
 
Predecessor
 
Successor
 
 
Predecessor
(In millions)
 
September 30, 2018
 
 
September 30, 2017
 
September 30, 2018
 
 
September 30, 2017
Accumulated benefit obligation for all plans
 
$
1,050

 
 
$
3,415

 
$
521

 
 
$
536

Plans with accumulated benefit obligation in excess of plan assets
 
 
 
 
 
 
 
 
 
 
Projected benefit obligation
 
$
1,050

 
 
$
3,415

 
$
531

 
 
$
546

Accumulated benefit obligation
 
$
1,050

 
 
$
3,415

 
$
516

 
 
$
531

Fair value of plan assets
 
$
881

 
 
$
2,395

 
$
9

 
 
$
9
Schedule of Expected Benefit Payments
Estimated future benefits expected to be paid in each of the next five fiscal years, and in aggregate for the five fiscal years thereafter, are presented below:
 
 
Pension Benefits
 
Post-retirement
Benefits
(In millions)
 
U.S.
 
Non-U.S.
 
2019
 
$
74

 
$
24

 
$
20

2020
 
73

 
23

 
21

2021
 
73

 
24

 
21

2022
 
73

 
26

 
21

2023
 
72

 
25

 
21

2024 - 2028
 
351

 
139

 
109

Total
 
$
716

 
$
261

 
$
213
Schedule of Net Benefit Costs
The components of the pension and post-retirement net periodic benefit cost (credit) for the periods indicated are provided in the table below:
 
 
Successor
 
 
Predecessor
(In millions)
 
Period from December 16, 2017
through
September 30, 2018
 
 
Period from
October 1, 2017
through
December 15, 2017
 
Fiscal year ended September 30, 2017
 
Fiscal year ended September 30, 2016
Pension Benefits - U.S.
 
 
 
 
 
 
 
 
 
Components of net periodic benefit (credit) cost
 
 
 
 
 
 
 
 
 
Service cost
 
$
3

 
 
$
1

 
$
4

 
$
4

Interest cost
 
28

 
 
22

 
98

 
110

Expected return on plan assets
 
(51
)
 
 
(38
)
 
(179
)
 
(183
)
Amortization of prior service cost
 
—

 
 
—

 
1

 
1

Amortization of actuarial loss
 
—

 
 
20

 
102

 
91

Curtailment, settlement loss(1)
 
—

 
 
—

 
—

 
3

Net periodic benefit (credit) cost
 
$
(20
)
 
 
$
5

 
$
26

 
$
26

Weighted average assumptions used to determine net periodic benefit cost
 
 
 
 
 
 
 
 
 
Discount rate
 
3.29
%
 
 
3.19
%
 
2.86
%
 
4.23
%
Expected return on plan assets
 
7.65
%
 
 
7.75
%
 
7.75
%
 
8.00
%
Rate of compensation increase
 
4.00
%
 
 
4.00
%
 
4.00
%
 
4.00
%
 
 
 
 
 
 
 
 
 
 
Pension Benefits - Non-U.S.
 
 
 
 
 
 
 
 
 
Components of net periodic benefit cost (credit)
 
 
 
 
 
 
 
 
 
Service cost
 
$
5

 
 
$
2

 
$
7

 
$
6

Interest cost
 
7

 
 
3

 
8

 
14

Expected return on plan assets
 
—

 
 
(1
)
 
(1
)
 
(2
)
Amortization of actuarial loss
 
—

 
 
2

 
16

 
7

Curtailment, settlement gain
 
—

 
 
—

 
(4
)
 
—

Net periodic benefit cost
 
$
12

 
 
$
6

 
$
26

 
$
25

Weighted average assumptions used to determine net periodic benefit cost
 
 
 
 
 
 
 
 
 
Discount rate
 
1.92
%
 
 
1.22
%
 
1.22
%
 
2.53
%
Expected return on plan assets
 
3.68
%
 
 
1.82
%
 
1.82
%
 
3.09
%
Rate of compensation increase
 
3.62
%
 
 
3.45
%
 
3.45
%
 
3.11
%
 
 
 
 
 
 
 
 
 
 
Post-retirement Benefits - U.S.
 
 
 
 
 
 
 
 
 
Components of net periodic benefit cost (credit)
 
 
 
 
 
 
 
 
 
Service cost
 
$
1

 
 
$
—

 
$
2

 
$
2

Interest cost
 
11

 
 
3

 
13

 
13

Expected return on plan assets
 
(8
)
 
 
(2
)
 
(10
)
 
(10
)
Amortization of prior service cost
 
—

 
 
(3
)
 
(18
)
 
(19
)
Amortization of actuarial loss
 
—

 
 
2

 
12

 
4

Curtailment, settlement gain(1)
 
—

 
 
—

 
(4
)
 
(2
)
Net periodic benefit cost (credit)
 
$
4

 
 
$
—

 
$
(5
)
 
$
(12
)
Weighted average assumptions used to determine net periodic benefit cost
 
 
 
 
 
 
 
 
 
Discount rate
 
3.39
%
 
 
3.37
%
 
3.11
%
 
4.35
%
Expected return on plan assets
 
5.50
%
 
 
5.90
%
 
5.90
%
 
5.90
%
Rate of compensation increase
 
4.00
%
 
 
4.00
%
 
4.00
%
 
4.00
%
(1) Excludes Plan of Reorganization related settlements that were recorded in Reorganization items, net in the Consolidated Statements of Operations.
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)
Other changes in plan assets and benefit obligations recognized in other comprehensive loss are provided in the tables below:
 
 
Successor
 
 
Predecessor
(In millions)
 
Period from December 16, 2017
through
September 30, 2018
 
 
Period from
October 1, 2017
through
December 15, 2017
 
Fiscal year ended September 30, 2017
 
Fiscal year ended September 30, 2016
Pension Benefits - U.S.
 
 
 
 
 
 
 
 
 
Net (gain) loss
 
$
(15
)
 
 
$
—

 
$
(68
)
 
$
124

Amortization of prior service cost
 
—

 
 
—

 
(1
)
 
(1
)
Amortization of actuarial loss
 
—

 
 
(20
)
 
(102
)
 
(91
)
Reorganization adjustments
 
—

 
 
(1,147
)
 
—

 
—

Total recognized in Other comprehensive income (loss)
 
$
(15
)
 
 
$
(1,167
)
 
$
(171
)
 
$
32

Total recognized in net periodic benefit cost and Other comprehensive income (loss)(1)
 
$
(35
)
 
 
$
(722
)
 
$
(145
)
 
$
58

 
 
 
 
 
 
 
 
 
 
Pension Benefits - Non-U.S.
 
 
 
 
 
 
 
 
 
Net (gain) loss
 
$
(19
)
 
 
$
22

 
$
(68
)
 
$
95

Amortization of actuarial loss
 
—

 
 
(2
)
 
(16
)
 
(7
)
Net gain recognition due to settlement
 
—

 
 
—

 
4

 
—

Reorganization adjustments
 
—

 
 
(163
)
 
—

 
—

Total recognized in Other comprehensive income (loss)
 
$
(19
)
 
 
$
(143
)
 
$
(80
)
 
$
88

Total recognized in net periodic benefit cost and Other comprehensive income (loss)(1)
 
$
(7
)
 
 
$
(137
)
 
$
(54
)
 
$
113

 
 
 
 
 
 
 
 
 
 
Post-retirement Benefits - U.S.
 
 
 
 
 
 
 
 
 
Net (gain) loss
 
$
(34
)
 
 
$
—

 
$
(28
)
 
$
71

Amortization of prior service credit
 
—

 
 
3

 
18

 
19

Amortization of actuarial loss
 
—

 
 
(2
)
 
(12
)
 
(4
)
Prior service cost (credit) and net gain (loss) recognition due to curtailment
 
—

 
 
—

 
4

 
2

Reorganization adjustments
 
—

 
 
(40
)
 
—

 
—

Total recognized in Other comprehensive income (loss)
 
$
(34
)
 
 
$
(39
)
 
$
(18
)
 
$
88

Total recognized in net periodic benefit cost and Other comprehensive income (loss)(1)
 
$
(30
)
 
 
$
2

 
$
(23
)
 
$
76

(1) For the period from October 1, 2017 through December 15, 2017, the U.S., non-U.S. and other Post-retirement benefits include Plan of Reorganization settlements that were recorded in Reorganization items, net in the Consolidated Statements of Operations of $(440) million, $0 million, and $(43) million, respectively.
Schedule of Allocation of Plan Assets
The following table summarizes the fair value of the post-retirement plan assets by asset class:
 
 
Successor
 
 
Predecessor
(In millions)
 
September 30, 2018
 
 
September 30, 2017

Investments measured at net asset value: (a)
 
 
 
 
 
Group life insurance contract measured at net asset value (b)
 
$
178

 
 
$
178

Total plan assets at fair value
 
$
178

 
 
$
178

(a) 
Certain investments that are measured at fair value using the NAV have not been classified in the fair value hierarchy.
(b) 
The group life insurance contracts are held in a reserve of an insurance company that provides for investment of pre-funding amounts in a family of pooled separate accounts. The fair value of each group life insurance contract is primarily determined by the value of the units it owns in the pooled separate accounts that back the policy. Each of the pooled separate accounts provides a unit NAV on a daily basis, which is based on the fair value of the underlying assets owned by the account. The post-retirement benefit plans can transact daily at the unit NAV without restriction. As of September 30, 2018 (Successor), the asset allocation of the pooled separate accounts in which the contracts invest was approximately 60% fixed income securities, 22% U.S. equity securities and 18% non-U.S. equity securities.
The weighted average asset allocation of the pension and post-retirement plans by asset category and target allocation is as follows:
 
 
Successor
 
 
Predecessor
 
Long-term Target
Asset Category
 
September 30, 2018
 
 
September 30, 2017

 
Pension Benefits - U.S.
 
 
 
 
 
 
 
Equity Securities
 
37
%
 
 
44
%
 
39
%
Debt Securities
 
39
%
 
 
37
%
 
45
%
Hedge Funds
 
8
%
 
 
8
%
 
7
%
Private Equity
 
1
%
 
 
1
%
 
—
%
Real Estate
 
6
%
 
 
5
%
 
7
%
Commodities
 
2
%
 
 
2
%
 
2
%
Other(1)
 
7
%
 
 
3
%
 
—
%
Total
 
100
%
 
 
100
%
 
100
%
 
 
 
 
 
 
 
 
Pension Benefits - Non-U.S.
 
 
 
 
 
 
 
Debt Securities
 
27
%
 
 
27
%
 
 
Asset Allocation Fund
 
13
%
 
 
13
%
 
 
Insurance Contracts
 
60
%
 
 
60
%
 
 
Total
 
100
%
 
 
100
%
 
 
 
 
 
 
 
 
 
 
Post-retirement Benefits - U.S.
 
 
 
 
 
 
 
Equity Securities
 
40
%
 
 
40
%
 
40
%
Debt Securities
 
60
%
 
 
60
%
 
60
%
Total
 
100
%
 
 
100
%
 
100
%
(1) 
Other includes cash/cash equivalents, derivative financial instruments, and payables/receivables for pending transactions.
The following table summarizes the fair value of the non-U.S. pension plan assets by asset class:
 
 
Successor
 
 
Predecessor
(In millions)
 
September 30, 2018
 
 
September 30, 2017

Investments measured at net asset value: (a)
 
 
 
 
 
Investment funds: (b)
 
 
 
 
 
Debt securities
 
$
4

 
 
$
4

Asset allocation
 
2

 
 
2

Insurance contracts (c)
 
9

 
 
9

Total plan assets at fair value
 
$
15

 
 
$
15

(a) 
Certain investments that are measured at fair value using the NAV have not been classified in the fair value hierarchy.
(b) 
Includes collective investment funds that invest in various asset classes including U.S. and non-U.S. corporate debt and equity, and derivatives. The funds account for their portfolio of assets at fair value and calculate the NAV of the funds on a daily basis, and shares can be redeemed at the NAV. Therefore, the undiscounted NAV as reported by the funds is used as the fair value measurement.
(c) 
Most non-U.S. pension plans are funded through insurance contracts, which provide for a guaranteed interest credit and a profit-sharing adjustment based on the actual performance of the underlying investment assets of the insurer. The fair value of the contract is determined by the insurer based on the premiums paid by the Company plus interest credits plus the profit-sharing adjustment less benefit payments. The underlying assets of the insurer are invested in compliance with local rules or law, which tend to require a high allocation to fixed income securities.
The following table summarizes the fair value measurements of the U.S. pension plan assets by asset class:
 
 
Successor
 
 
Predecessor
 
 
As of September 30, 2018
 
 
As of September 30, 2017
(In millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
Level 1
 
Level 2
 
Level 3
 
Total
U.S. Government debt securities (a)
 
$
—

 
$
93

 
$
—

 
$
93

 
 
$
—

 
$
159

 
$
—

 
$
159

Derivative instruments (b)
 
(2
)
 
—

 
—

 
(2
)
 
 
(4
)
 
—

 
—

 
(4
)
Total assets in the fair value hierarchy
 
(2
)
 
93

 
—

 
91

 
 
(4
)
 
159

 
—

 
155

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments measured at net asset value: (c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate (d)
 
 
 
 
 
 
 
49

 
 
 
 
 
 
 
 
112

Private equity (e)
 
 
 
 
 
 
 
7

 
 
 
 
 
 
 
 
23

Multi-strategy hedge funds (f)
 
 
 
 
 
 
 
73

 
 
 
 
 
 
 
 
190

Investment funds: (g)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents
 
 
 
 
 
 
 
62

 
 
 
 
 
 
 
 
63

Long duration fixed income
 
 
 
 
 
 
 
231

 
 
 
 
 
 
 
 
636

High-yield debt
 
 
 
 
 
 
 
26

 
 
 
 
 
 
 
 
97

U.S. equity
 
 
 
 
 
 
 
179

 
 
 
 
 
 
 
 
541

Non-U.S. equity
 
 
 
 
 
 
 
112

 
 
 
 
 
 
 
 
395

Emerging market equity
 
 
 
 
 
 
 
35

 
 
 
 
 
 
 
 
127

Commodities
 
 
 
 
 
 
 
15

 
 
 
 
 
 
 
 
41

Total investment measured at net asset value
 
 
 
 
 
 
 
789

 
 
 
 
 
 
 
 
2,225

Other plan assets, net
 
 
 
 
 
 
 
1

 
 
 
 
 
 
 
 
15

Total plan assets at fair value
 
$
(2
)
 
$
93

 
$
—

 
$
881

 
 
$
(4
)
 
$
159

 
$
—

 
$
2,395


(a) 
Includes U.S. Treasury STRIPS, which are generally valued using institutional bid evaluations from various contracted pricing vendors. Institutional bid evaluations are estimated prices that represent the price a dealer would pay for a security. Pricing inputs to the institutional bid evaluation vary by security and include benchmark yields, reported trades, unadjusted broker/dealer quotes, issuer spreads, bids, offers or other observable market data.
(b) 
Includes future contracts that are generally valued using the last trade price at which a specific contract/security was last traded on the primary exchange, which is provided by a contracted vendor. If pricing is not available from the contracted vendor, then pricing is obtained from other sources such as Bloomberg, broker bid, ask/offer quotes or the investment manager.
(c) 
Certain investments that are measured at fair value using the net asset value per share or its equivalent (“NAV”) have not been classified in the fair value hierarchy.
(d) 
Includes open ended real estate commingled funds, close ended real estate limited partnerships, and insurance company separate accounts that invest primarily in U.S. office, lodging, retail and residential real estate. The insurance company separate accounts and the commingled funds account for their portfolio of assets at fair value and calculate the NAV on either a monthly or quarterly basis. Shares can be redeemed at the NAV on a quarterly basis, provided a written redemption request is received in advance (generally 45-91 days) of the redemption date. Therefore, the undiscounted NAV is used as the fair value measurement. For limited partnerships, the fair value of the underlying assets and the capital account for each investor is determined by the General Partner (“GP”). The valuation techniques used by the GP generally consist of unobservable inputs such as discounted cash flow analysis, analysis of recent comparable sales transactions, actual sale negotiations and bona fide purchase offers received from third parties. The partnerships are typically funded over time as capital is needed to fund asset purchases, and distributions from the partnerships are received as the partnerships liquidate their underlying asset holdings. Therefore, the life cycle for a typical investment in a real estate limited partnership is expected to be approximately 10 years from initial funding.
(e) 
Includes limited partner interests in various limited partnerships (“LPs”) that invest primarily in U.S. and non-U.S. investments either directly, or through other partnerships or funds with a focus on venture capital, buyouts, expansion capital, or companies undergoing financial distress or significant restructuring. The NAV of the LPs and of the capital account of each investor is determined by the GP of each LP. Marketable securities held by the LPs are valued based on the closing price on the valuation date on the exchange where they are principally traded and may be adjusted for legal restrictions, if any. Investments without a public market are valued based on assumptions made and valuation techniques used by the GP, which consist of unobservable inputs. Such valuation techniques may include discounted cash flow analysis, analysis of recent comparable sales transactions, actual sale negotiations and bona fide purchase offers received from third parties. The LPs are typically funded over time as capital is needed to fund purchases and distributions are received as the partnerships liquidate their underlying asset holdings.
(f) 
Includes hedge funds and funds of funds that pursue multiple strategies to diversify risks and reduce volatility. The funds account for their portfolio of assets at fair value and calculate the NAV of their fund on a monthly basis. The funds limit the frequency of redemptions to manage liquidity and protect the interests of the funds and its shareholders.
(g) 
Includes open-end funds and unit investment trusts that invest in various asset classes including: U.S. and non-U.S. corporate debt, U.S. government debt, municipal bonds, U.S. equity, non-U.S. developed and emerging markets equity, and commodities. The funds account for their portfolio of assets at fair value and calculate the NAV of the funds on a daily basis, and shares can be redeemed at the NAV. Therefore, the undiscounted NAV as reported by the funds is used as the fair value measurement.