Time Magazine 2015 Annual Report Download - page 116

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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, which were approximately
$18 million and $20 million, respectively, as of December 31, 2015 and December 31, 2014 (millions):
December 31, 2015 December 31, 2014
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Assets: .......................
Cash and cash equivalents (a) ..... $ 80 $ — $ — $ 80 $ 133 $ — $ — $ 133
Insurance contracts ............. — 15 — 15 — 14 — 14
Equity securities:
Domestic equities ............ 142 — — 142 157 — — 157
International equities .......... 6 — — 6 8 — — 8
Fixed income securities:
U.S. government and
agency securities (a) ........ 190 68 — 258 259 70 — 329
Non-U.S. government and
agency securities ........... — — — — 112 — — 112
Municipal bonds ............. — 21 — 21 — 23 — 23
Investment grade corporate
bonds (b) ................. — 1,107 — 1,107 — 1,187 — 1,187
Non-investment grade
corporate bonds (b) ......... — 19 — 19 — 20 — 20
Other investments (c) ........... 138 20 — 158 118 2 65 185
Liabilities:
Derivatives ................... — (41) — (41) — — (33) (33)
Total (d) ..................... $ 556 $ 1,209 $ — $ 1,765 $ 787 $ 1,316 $ 32 $ 2,135
(a) As of December 31, 2015, cash and cash equivalents include $10 million of cash collateral for securities on loan, and U.S. government and agency
securities include $59 million of securities collateral for securities on loan. As of December 31, 2014, cash and cash equivalents include $10 millionof
cash collateral for securities on loan, and U.S. government and agency securities include $70 million of securities collateral for securities on loan.
(b) 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.
(c) Other investments primarily include derivative contracts, exchange-traded funds and mutual funds.
(d) At December 31, 2015 and December 31, 2014, total assets include $67 million and $78 million, respectively, of securities on loan. Certain investments
that are measured at fair value using the net asset value (“NAV”) per share as a practical expedient have not been categorized in the fair value table
above and are as follows (millions):
December 31,
Asset Category 2015 2014
Pooled investments (e) .......................................................................... 464 312
Commingled trust funds ......................................................................... 469 486
Other investments (f) ........................................................................... 67 75
Total ........................................................................................ $ 1,000 $ 873
(e) Pooled investments primarily consist of interests in unitized investment pools of which underlying securities primarily consist of equity and fixed
income securities.
(f) Other investments include limited partnerships, 103-12 investments and hedge funds.
102