Twenty-First Century Fox 2013 Annual Report Download - page 148

TWENTY-FIRST CENTURY FOX, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
of 48% equity securities, 37% fixed income securities and 15% 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,
2013 2012
Asset Category:
Equitysecurities ................................................... 43% 37%
Debtsecurities .................................................... 37% 39%
Other,includingcash ............................................... 20% 24%
Total ............................................................ 100% 100%
Required pension plan contributions for the next fiscal year are not expected to be material; however, actual
contributions may be affected by pension asset and liability valuation changes during the year. The Company will
continue to make voluntary contributions as necessary to improve funded status.
Multi-employer Pension and Postretirements Plans
The Company contributes to various multiemployer defined benefit pension plans under the terms of
collective-bargaining agreements that cover certain of its union-represented employees, primarily at the Filmed
Entertainment segment. The risks of participating in these multiemployer pension plans are different from single-
employer pension plans such that (i) contributions made by the Company to the multiemployer pension plans
may be used to provide benefits to employees of other participating employers; (ii) if the Company chooses to
stop participating in certain of these multiemployer pension plans, it may be required to pay those plans an
amount based on the underfunded status of the plan, which is referred to as a withdrawal liability; and
(iii) actions taken by a participating employer that lead to a deterioration of the financial health of a
multiemployer pension plan may result in the unfunded obligations of the multiemployer pension plan to be
borne by its remaining participating employers. While no multiemployer pension plan that the Company
contributed to is individually significant to the Company, the Company was listed on four Form 5500s as
providing more than 5% of total contributions based on the current information available. The financial health of
a multiemployer plan is indicated by the zone status, as defined by the Pension Protection Act of 2006, which
represents the funded status of the plan as certified by the plan's actuary. Plans in the red zone are less than 65%
funded, the yellow zone are between 65% and 80% funded, and green zone are at least 80% funded. The most
recent available funded status of the four plans in which the Company was listed as providing more than 5% of
total contributions are all green. Total contributions made by the Company to multiemployer pension plans were
$66 million for the fiscal years ended June 30, 2013 and 2012 and $55 million for the fiscal year ended June 30,
2011.
The Company also contributes to various other multiemployer benefit plans that provide health and welfare
benefits to active and retired participants, primarily at the Filmed Entertainment segment. Total contributions
made by the Company to these other multiemployer benefit plans for the fiscal years ended June 30, 2013, 2012,
and 2011 were $80 million, $67 million and $62 million, respectively.
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