Following is a description of the valuation methodologies used for the investments measured at fair value. • Short-term investments — Cash and quoted short-term instru- ments are valued at the closing price or the amount held on deposit by the custodian bank. Other investments are through investment vehicles valued using the Net Asset Value (NAV) provided by the administrator of the fund. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding. The NAV is a quoted price in a market that is not active and classified as Level 2. • Equity securities — Common stocks are valued at the closing price reported on the major market on which the individual securi- ties are traded. Substantially all common stock is classified within Level 1 of the valuation hierarchy. • Commingled funds — The investments are public investment vehicles valued using the NAV provided by the fund administrator. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding. Assets in the Level 2 category have a quoted market price in a market that is not active. • Insurance contracts — The instruments are issued by insurance companies. The fair value is based on negotiated value and the underlying investments held in separate account portfolios as well as considering the credit worthiness of the issuer. The underlying investments are government, asset-backed and fixed income securi- ties. In general, insurance contracts are classified as Level 3 as there are no quoted prices nor other observable inputs for pricing. • Other assets — Other assets are represented primarily by limited partnerships and real estate investments, as well as commercial loans and commercial mortgages that are not classified as corporate debt. Other assets that are exchange listed and actively traded are classified as Level 1, while inactively traded assets are classified as Level 2. Most limited partnerships represent investments in private equity and similar funds that are valued by the general partners. These, as well as any other assets valued using unobservable inputs, are classified as Level 3. • Government and agency securities — A limited number of these investments are valued at the closing price reported on the major market on which the individual securities are traded. Where quoted prices are available in an active market, the investments are classi- fied within Level 1 of the valuation hierarchy. If quoted market prices are not available for the specific security, then fair values are esti- mated by using pricing models, quoted prices of securities with sim- ilar characteristics or discounted cash flows. When quoted market prices for a security are not available in an active market, they are classified as Level 2. • Debt instruments — A limited number of these investments are valued at the closing price reported on the major market on which the individual securities are traded. Where quoted prices are avail- able in an active market, the investments are classified as Level 1. If quoted market prices are not available for the specific security, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows and are classified as Level 2. Level 3 debt instruments are priced based on unobservable inputs. The following table sets forth the trust investments measured at fair value as of January 2, 2011 and January 3, 2010: Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets _______________________ _______________________ _______________________ _______________________ (Dollars in Millions) 2010 2009 2010 2009 2010 2009 2010 2009 Short-term investment funds $ 80 91 371 358 — — 451 449 Government and agency securities 69 — 1,484 1,165 — — 1,553 1,165 Debt instruments 5 3 1,149 1,145 13 5 1,167 1,153 Equity securities 6,744 5,068 14 58 24 15 6,782 5,141 Commingled funds 1 — 3,173 2,673 35 26 3,209 2,699 Insurance contracts — — — — 29 32 29 32 Other assets 10 31 150 171 82 82 242 284 Trust investments at fair value $6,909 5,193 6,341 5,570 183 160 13,433 10,923 57 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS