DIRECTV 2010 Annual Report Download - page 107

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DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
The objectives of the target allocations are to maintain investment portfolios The fair value measurement of plan assets using significant unobservable inputs
that diversify risk through prudent asset allocation parameters, achieve asset returns (Level 3) changed during 2010 due to the following:
that meet or exceed the plans’ actuarial assumptions, and achieve asset returns that Partnerships and Joint
are competitive with like institutions employing similar investment strategies. Venture Interests
(Dollars in Millions)
The investment policy is periodically reviewed by us and a designated third-
Balance at January 1, 2010 ...................... $21
party fiduciary for investment matters. We establish and administer the policy in a
Realized losses .............................. —
manner so as to comply at all times with applicable government regulations.
Unrealized gains ............................. 4
The fair value measurements of the plan assets as of December 31, 2010 were Purchases and sales ........................... 3
as follows: Balance at December 31, 2010 .................... $28
Fair Value Measurements as of December 31, 2010
Quoted Prices Cash Flows
in Active Percentage of
Markets for Significant Significant Plan Assets
Identical Observable Unobservable as of Contributions
Assets Inputs Inputs December 31,
Total (Level 1) (Level 2) (Level 3) 2010 We expect to contribute approximately $15 million to our qualified pension
(Dollars in millions) plans and make payments of $6 million to our nonqualified pension plan
Asset Category participants in 2011.
Common collective trusts
Cash ....................$ 1 $1 $— $— —
Equity securities: Estimated Future Benefit Payments
U.S. large-cap .............. 125 — 125 — 29%
We expect the following benefit payments, which reflect expected future
U.S. mid-cap growth ......... 34 — 34 — 8%
International large-cap value . . . . . 60 — 60 — 14% service, as appropriate, to be paid by the plans during the years ending
Domestic real estate .......... 20 — 20 — 5% December 31:
Stable value ................ 159 — 159 — 37%
Partnership and joint venture interests . . . 28 — — 28 7% Estimated Future Benefit
Insurance contracts at contract value . . . 2 — 2— — Payments
Other
Total ......................$429 $ 1 $400 $28 100% Pension Postretirement
Benefits Benefits
There were no shares of our common stock included in plan assets as of (Dollars in Millions)
December 31, 2010 and 2009. 2011 .................................... $ 42 $ 2
2012 .................................... 42 2
2013 .................................... 44 2
2014 .................................... 40 2
2015 .................................... 41 2
2015-2019 ................................ 228 10
85