We invest in commodities, which typically mirror short-term changes in inflation, as a hedge against the cost of paying inflation-protected pensions.

We primarily invest through swap agreements linked to the S&P GSCI Total Return Index. This index is a key barometer for investment performance in the commodity markets and while it is diversified across industrial metals, precious metals, agricultural crops and livestock, the index is heavily weighted to oil and gas.

Investments in commodities totalled $5.2 billion at the end of 2010, compared to $1.9 billion at Dec. 31, 2009, due to a decision in 2010 to raise the asset-mix target for commodities.