Company: CMA
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000028412-25-000108
Chunk: 585

Company: COMERICA INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 16
Chunk 585
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 and key inputs used to measure the fair value of the Corporation’s qualified defined benefit pension plan investments, including an indication of the level of the fair value hierarchy in which the investments are classified.U.S. Treasury and other U.S. government agency securitiesLevel 1 securities include U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. Fair value measurement is based upon quoted prices in an active market exchange, such as the New York Stock Exchange. Level 2 securities include debt securities issued by U.S. government agencies and U.S. government-sponsored entities. The fair value of Level 2 securities is determined using quoted prices of securities with similar characteristics, or pricing models based on observable market data inputs, primarily interest rates and spreads.Corporate and municipal bonds and notesFair value measurement is based upon quoted prices of securities with similar characteristics or pricing models based on observable market data inputs, primarily interest rates, spreads and prepayment information. Level 2 securities include corporate bonds, municipal bonds, foreign bonds and foreign notes.Private placementsFair value is measured using the net asset value (NAV) provided by fund management, as quoted prices in active markets are not available. Management considers additional discounts to the provided NAV for market and credit risk. Private placements are included in Level 3 of the fair value hierarchy. Collective investment fundsFair value measurement is based upon the NAV provided by the administrator of the fund as a practical expedient to estimate fair value. There are no unfunded commitments or redemption restrictions on the collective investment funds. The investments are redeemable daily. Fair ValuesThe fair values of the Corporation’s qualified defined benefit pension plan investments measured at fair value on a recurring basis at December 31, 2024 and 2023, by asset category and level within the fair value hierarchy, are detailed in the table below.(in millions)TotalLevel 1Level 2Level 3December 31, 2024Fixed income securities:U.S. Treasury and other U.S. government agency securities$676 $670 $6 $— Corporate and municipal bonds and notes809 — 809 — Private placements37 — — 37 Total investments in the fair value hierarchy$1,522 $670 $815 $37 Investments measured at net asset value:Collective investment funds1,192 Total investments at fair value$2,714 December 31, 2023Fixed income securities:U.S. Treasury and other U.S. government