Twenty-First Century Fox 2007 Annual Report Download - page 107

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NEWS CORPORATION
Notes to the Consolidated Financial Statements (continued)
The following table sets forth the estimated benefit payments for the next five fiscal years, and in aggregate for the five fiscal years
thereafter. The expected benefits are estimated based on the same assumptions used to measure the Company’s benefit obligation
at the end of the fiscal year and include benefits attributable to estimated future employee service:
Expected benefit payments
Pension
benefits
Postretirement
benefits
Fiscal year:
2008 $116 $ 7
2009 109 8
2010 112 9
2011 116 9
2012 125 10
2013-2017 701 59
The Company’s investment strategy for its pension plans is to maximize the long-term rate of return on plan assets within an
acceptable level of risk in order to minimize the cost of providing pension benefits while maintaining adequate funding levels. The
Company’s practice is to conduct a periodic strategic review of its asset allocation. The Company’s current broad strategic targets
are to have a pension asset portfolio comprising of 60% equity securities, 37% fixed income securities, 2% in real estate and 1% in
other instruments. In developing the expected long-term rate of return, the Company considered the pension asset portfolio’s past
average rate of returns and future return expectations of the various asset classes. A portion of the other allocation is reserved in
short-term cash to provide for expected benefits to be paid in short term. The Company’s equity portfolios are managed in such a
way as to achieve optimal diversity. The Company’s fixed income portfolio is investment grade in the aggregate. The Company does
not manage any assets internally.
The Company’s benefit plan weighted-average asset allocations, by asset category, are as follows:
Pension benefits
2007 2006
As of June 30, (in millions)
Asset Category:
Equity securities 61% 60%
Debt securities 34% 37%
Real estate 2% 2%
Other 3% 1%
Total 100% 100%
The Company contributes to multi-employer plans that provide pension and health and welfare benefits to certain employees under
collective bargaining agreements. The contributions to these plans were $114 million, $88 million, and $75 million for the fiscal
years ended June 30, 2007, 2006, and 2005, respectively. In addition, the Company has defined contribution plans for the benefit
of substantially all employees meeting certain eligibility requirements. Employer contributions to such plans were $115 million, $104
million, and $76 million for the fiscal years ended June 30, 2007, 2006 and 2005, respectively.
The Company does not expect mandatory pension funding requirements to be significant in fiscal 2008. However, the Com-
pany does expect to continue making discretionary contributions to the plans during fiscal 2008 of approximately $60 million.
106