Time Magazine 2013 Annual Report Download - page 118

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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Fair Value of Plan Assets
The following table sets forth by level, within the fair value hierarchy described in Note 5, the assets held by
the Company’s defined benefit pension plans, including those assets related to The CW sub-plan, as of
December 31, 2013 and December 31, 2012 (millions):
December 31, 2013 December 31, 2012
Asset Category Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Cash and cash equivalents ........ $ 155 $ — $ — $ 155 $ 113 $ —$—$ 113
Insurance contracts ............. — 18 — 18 — 16 — 16
Equity securities:
Domestic equities ............ 204 — — 204 176 — — 176
International equities .......... 56 — — 56 45 — — 45
Fixed income securities:
U.S. government and agency
securities(c) ................ 239 19 — 258 286 16 — 302
Non-U.S. government and
agency securities ........... 61 — — 61 — — — —
Municipal bonds ............. — 23 — 23 — 27 — 27
Investment grade corporate
bonds(a) ................... — 1,048 — 1,048 — 1,212 — 1,212
Non-investment grade corporate
bonds(a) ................... — 23 — 23 — 25 — 25
Other investments:
Pooled investments(b) .......... — 1,120 — 1,120 — 1,042 — 1,042
Commingled trust funds(c) ...... — 391 — 391 — 307 — 307
Hedge funds ................. — — 36 36 — — 63 63
Other (d) .................... 15 10 40 65 41 2 41 84
Total(e) ....................... $ 730 $ 2,652 $ 76 $ 3,458 $ 661 $ 2,647 $ 104 $ 3,412
(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+ or below.
(b) Pooled investments primarily consist of interests in unitized investment pools of which underlying securities primarily consist of equity
and fixed income securities.
(c) As of December 31, 2013, commingled trust funds include $11 million of cash collateral for securities on loan, and U.S. government and
agency securities include $5 million of securities collateral for securities on loan. As of December 31, 2012, commingled trust funds
included $18 million of cash collateral for securities on loan, and U.S. government and agency securities included $1 million of securities
collateral for securities on loan.
(d) Other investments primarily include limited partnerships, 103-12 investments, derivative contracts, exchange-traded funds and mutual
funds.
(e) At December 31, 2013 and December 31, 2012, total assets include $15 million and $19 million, respectively, of securities on loan.
102