NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The fair values of pension plan assets at December 31, 2011 and 2010 by asset category are as follows: We review our assets at least quarterly to ensure we are within the targeted asset allocation ranges and, if necessary, asset balances are adjusted back within target allocations. We employ a broadly diversified investment manager structure that includes diversification by active and passive management, style, capitalization, country, sector, industry and number of investment managers. Derivatives in the plan are primarily used to manage risk and gain asset class exposure while still maintaining liquidity. Derivative instruments mainly consist of equity futures, interest rate futures, interest rate swaps and currency forward contracts. Our common stock represents approximately 4% and 3% of total plan assets at December 31, 2011 and 2010, respectively. 74 UNITED TECHNOLOGIES CORPORATION (Dollars in millions) Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total ASSET CATEGORY: Public Equities Global Equities $ 5,210 $ 4 $ — $ 5,214 Global Equity Commingled Funds (a) — 2,981 — 2,981 Enhanced Global Equities (b) 44 1,590 239 1,873 Private Equities (c) — — 1,159 1,159 Fixed Income Securities Governments 1,564 1,199 — 2,763 Corporate Bonds — 5,167 110 5,277 Structured Products (d) — 67 — 67 Real Estate (e) — 16 1,364 1,380 Other (f) — 1,869 — 1,869 Cash & Cash Equivalents (g) — 359 — 359 Subtotal $ 6,818 $13,252 $2,872 22,942 Other Assets & Liabilities (h) 600 TOTAL AT DECEMBER 31, 2011 $23,542 Public Equities Global Equities $5,332 $ 7 $ 1 $ 5,340 Global Equity Commingled Funds (a) — 3,200 — 3,200 Enhanced Global Equities (b) 57 1,662 245 1,964 Private Equities (c) — — 1,134 1,134 Fixed Income Securities Governments 691 1,149 — 1,840 Corporate Bonds 21 5,424 — 5,445 Structured Products (d) — 76 — 76 Real Estate (e) — 26 944 970 Other (f) — 1,517 — 1,517 Cash & Cash Equivalents (g) — 293 — 293 Subtotal $ 6,101 $13,354 $2,324 21,779 Other Assets & Liabilities (h) 605 TOTAL AT DECEMBER 31, 2010 $22,384 (a) Represents commingled funds that invest primarily in common stocks. (b) Represents enhanced equity separate account and commingled fund portfolios. A portion of the portfolio may include long-short market neutral and relative value strategies that invest in publicly traded, equity and fixed income securities, as well as derivatives of equity and fixed income securities and foreign currency. (c) Represents limited partner investments with general partners that primarily invest in debt and equity. (d) Represents mortgage and asset-backed securities. (e) Represents investments in real estate including commingled funds and directly held properties. (f) Represents insurance contracts and global balanced risk commingled funds consisting mainly of equity, bonds and some commodities. (g) Represents short-term commercial paper, bonds and other cash or cash-like instruments. (h) Represents trust receivables and payables that are not leveled.