Twenty-First Century Fox 2008 Annual Report Download - page 123

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NEWSCORP
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:
2009 $ 133 $ 17
2010 130 18
2011 135 19
2012 145 21
2013 150 21
2014-2018 852 122
The above table shows expected benefits payments for the postretirement benefits after adjusting for U.S. Medicare subsidy receipts. The
annual receipts are expected to range from $1 to $2 million.
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
58% equity securities, 39% fixed income securities, 1% in real estate and 2% 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
2008 2007
As of June 30, (in millions)
Asset Category:
Equity securities 54% 61%
Debt securities 41% 34%
Real estate 1% 2%
Other 4% 3%
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 $116 million, $114 million, and $88 million for the fiscal years ended June 30, 2008,
2007, and 2006, 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 $186 million, $115 million, and $104 million for the fiscal years ended
June 30, 2008, 2007 and 2006, respectively.
The Company expects to continue making discretionary contributions to the plans during fiscal 2009 and in aggregate the pension
contributions are expected to be approximately $110 million.
122 NEWSCORP 2008 Annual Report