Time Magazine 2009 Annual Report Download - page 120

Download and view the complete annual report

Please find page 120 of the 2009 Time Magazine annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 154

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154

Plan Assets
The following table sets forth by level, within the fair value hierarchy as described in Note 6, the domestic
pension plan’s assets, including those assets related to The CW sub-plan, required to be carried at fair value on a
recurring basis as of December 31, 2009 (millions):
Asset Category Total
Quoted Market
Prices in Active
Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable Inputs
(Level 3)
Fair Value Measurements at December 31, 2009
Cash and cash equivalents
(a)
.... $ 48 $ — $ 48 $ —
Equity securities:
Domestic equities
(b)(c)
....... 1,067 1,067 — —
International equities
(c)
...... 290 290 — —
Fixed income securities:
U.S. government and agency
securities
(c)
............. 81 61 20 —
Bonds, notes, and
debentures
(c)(d)
........... 251 — 251 —
Fund investments
(e)
........... 333 2 331 —
Other investments
(f)
........... 152 — — 152
Total
(g)
.................... $ 2,222 $ 1,420 $ 650 $ 152
(a)
Cash equivalents consist of a short-term investment fund.
(b)
Domestic equities primarily include common stocks issued in U.S. markets.
(c)
Includes securities on loan at December 31, 2009 of $74 million of domestic equities, $20 million of international equities, $18 million of
U.S. government and agency bonds and $4 million of bonds, notes and debentures.
(d)
Bonds, notes and debentures primarily consist of investments in U.S. corporate bonds.
(e)
Fund investments include $116 million of collateral on securities on loan invested in a fund that invests in repurchase agreements. The
underlying securities held in other fund investments primarily consist of equity and fixed income securities.
(f)
Other investments include investments in limited partnerships and hedge funds.
(g)
Total assets include collateral on securities on loan, but exclude the related liability for the collateral due for securities on loan, and includes
$14 million of assets related to The CW sub-plan’s ratable allocation of assets in the Time Warner Pension Plan.
The table below sets forth a summary of changes in the fair value of the domestic pension plan’s Level 3 assets
for the twelve months ended December 31, 2009 (millions):
Balance as of January 1, 2009 . . . ............................................ $ 48
Actual return on plan assets:
Relating to assets still held at December 31, 2009 .............................. 25
Relating to assets sold during the period...................................... 1
Purchases, sales, issuances and settlements, (net) ................................. 78
Transfers in and/or out of Level 3 ............................................ —
Balance as of December 31, 2009 ............................................ $ 152
108
TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)