categorize plan assets within a three level fair value hierarchy as described in Note 7. The fair values of our pension and postretirement benefit plan assets at May 30, 2010, by asset category are as follows: Fair Value of Plan Assets In the fourth quarter of fiscal 2010, we adopted new accounting guidance requiring additional disclo- sures for plan assets of defined benefit pension and other postretirement benefit plans. This guidance requires that we (a) Primarily publicly traded common stock and private equity partnerships for purposes of total return and to maintain equity exposure consistent with policy allocations. Investments include: i) United States and international equity securities, mutual funds and equity futures valued at closing prices from national exchanges; and ii) commingled funds, privately held securities and private equity partnerships valued at unit values or net asset values provided by the investment managers, which are based on the fair value of the underlying investments. Various methods are used to determine fair values and may include the cost of the investment, most recent financing, and expected cash flows. For some of these investments, realization of the estimated fair value is dependent upon transactions between willing sellers and buyers. (b)Primarily government and corporate debt securities for purposes of total return and managing fixed income exposure to policy allocations. Investments include: i) fixed income securities and bond futures generally valued at closing prices from national exchanges, fixed income pricing models and/or independent financial analysts; and ii) fixed commingled funds valued at unit values provided by the investment managers, which are based on the fair value of the underlying investments. (c) Publicly traded common stock and limited partnerships in the energy and real estate sectors for purposes of total return. Investments include: i) energy and real estate securities generally valued at closing prices from national exchanges; and ii) commingled funds, private securities, and limited partnerships valued at unit values or net asset values provided by the investment managers, which are generally based on the fair value of the underlying investments. (d)Global balanced fund of equity, fixed income and real estate securities for purposes of meeting Canadian pension plan asset allocation policies and insurance and annuity contracts for purposes of providing a stable stream of income for retirees and to fund postretirement medical benefits. Fair values are derived from unit values provided by the investment managers, which are generally based on the fair value of the underlying investments and contract fair values from the providers. In Millions Level 1 Level 2 Level 3 Total Assets ............................................................................................................................................................................................................................................................................................................................................................................................ Fair value measurement of pension plan assets: Equity (a) $ 744.5 $ 716.6 $512.8 $1,973.9 Fixed income (b) 700.0 206.0 3.9 909.9 Real asset investments (c) 72.4 75.8 298.7 446.9 Other investments (d) — 39.9 0.3 40.2 Cash and accruals 158.9 — — 158.9 ............................................................................................................................................................................................................................................................................................................................................................................................ Total fair value measurement of pension plan assets $1,675.8 $1,038.3 $815.7 $3,529.8 ............................................................................................................................................................................................................................................................................................................................................................................................ Fair value measurement of postretirement benefit plan assets: Equity (a) $ 10.1 $ 81.4 $ 25.7 $ 117.2 Fixed income (b) 1.1 46.1 1.7 48.9 Real asset investments (c) 0.1 3.7 14.6 18.4 Other investments (d) — 71.4 — 71.4 Cash and accruals 28.4 — — 28.4 ............................................................................................................................................................................................................................................................................................................................................................................................ Fair value measurement of postretirement benefit plan assets $ 39.7 $ 202.6 $ 42.0 $ 284.3 Annual Report 2010 75