Twenty-First Century Fox 2011 Annual Report Download - page 79

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Notes to the Consolidated Financial Statements (continued)
(a) Open-ended pooled funds that are registered and/or available to the general public are valued at the daily published net asset value (“NAV”). Other pooled funds are valued at the NAV
provided by the fund issuer.
(b) Common stocks that are publicly traded are valued at the closing price reported on active markets in which the individual securities are traded.
(c) The fair value of corporate, government and agency obligations are valued based on a compilation of primary observable market information or a broker quote in a non-active market.
(d) The fair value of partnerships that are not publicly traded are based on fair value obtained from the general partner.
The table below sets forth a summary of changes in the fair value of investments reflected as Level 3 assets at June 30, 2011:
Partnership
interests Other Total
(in millions)
Beginning of period $25 $ 9 $34
Actual return on plan assets:
Relating to assets still held at June 30, 2011 1 1 2
Relating to assets sold during the period — ——
Purchases, sales, settlements and issuances 1 — 1
Transfers in and out of Level 3 ———
End of period $27 $10 $37
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 50% equity securities, 39% fixed income securities, 1% in real estate and 10% in cash and other investments. 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
As of June 30, 2011 2010
Asset Category:
Equity securities 44% 36%
Debt securities 39% 40%
Real estate 1% 1%
Cash and other 16% 23%
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 $117 million, $110 million and $120 million for the fiscal years ended June 30,
2011, 2010 and 2009, 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 $194 million for each of the fiscal years ended June 30, 2011 and 2010
and $199 million for the fiscal year ended June 30, 2009.
The Company expects to continue making discretionary contributions to the plans during fiscal 2012 and in aggregate the pension
contributions are expected to be approximately $50 million.
2011 Annual Report 77