Time Magazine 2010 Annual Report Download - page 108

Download and view the complete annual report

Please find page 108 of the 2010 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 130

  • 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

Fair Value of Plan Assets
The following table sets forth by level, within the fair value hierarchy as described in Note 5, the assets held by
the Company’s pension plans, including those assets related to The CW sub-plan as of December 31, 2010 and
December 31, 2009 (millions):
Asset Category Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
December 31, 2010 December 31, 2009
Cash and cash equivalents . . . . . . . . . . . . . $ 157 $ — $ — $ 157 $ 1 $ 48 $ — $ 49
Insurance contracts . . . . . . . . . . . . . . . . . . — 43 — 43 — 47 — 47
Equity securities:
Domestic equities . . . . . . . . . . . . . . . . . 333 — — 333 1,067 — — 1,067
International equities . . . . . . . . . . . . . . . 199 — — 199 290 — — 290
Fixed income securities:
U.S. government and
agency securities . . . . . . . . . . . . . . . . 857 — — 857 61 20 — 81
Municipal bonds . . . . . . . . . . . . . . . . . . — 15 — 15 — — — —
Investment grade
corporate bonds
(a)
............... — 347 — 347 — 180 — 180
Non-investment grade
corporate bonds
(a)
............... — 9 — 9 — 71 — 71
Other investments:
Pooled investments
(b)
. . . . . . . . . . . . . . — 910 — 910 — 820 — 820
Commingled trust funds
(c)
. . . . . . . . . . . — 162 — 162 — 331 — 331
Hedge funds. . . . . . . . . . . . . . . . . . . . . — — 121 121 — — 100 100
Other
(d)
........................ 3 2 12 17 2 2 52 56
Total
(e)
. . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,549 $ 1,488 $ 133 $ 3,170 $ 1,421 $ 1,519 $ 152 $ 3,092
(a)
Investment grade corporate bonds have an S&P rating of BBB- or higher and non-investment grade corporate bonds have an S&P rating of
BB+ and below.
(b)
Pooled investments primarily consist of interests in unitized investments pools of which underlying securities primarily consist of equity
and fixed income securities.
(c)
Commingled trust funds include $43 million and $116 million, respectively, as of December 31, 2010 and December 31, 2009 of collateral
for securities on loan.
(d)
Other investments include limited partnerships, 103-12 investments, derivative contracts, exchange-traded funds and mutual funds.
(e)
At December 31, 2010 and December 31, 2009, total assets include $44 million and $116 million, respectively, of securities on loan.
96
TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)