Twenty-First Century Fox 2014 Annual Report Download - page 134

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TWENTY-FIRST CENTURY FOX, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
128
The table below presents the Company’s plan assets by level within the fair value hierarchy, as described in
Note 8 – Fair Value, as of June 30, 2014 and 2013:
As of June 30, 2014 As of June 30, 2013
Fair value measurements at
reporting date using
Fair value measurements at
reporting date using
Description Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3
(in millions)
Assets
Pooled funds:(a)
Money market funds ............. $ 117 $ - $ 117 $ - $ 22 $ - $ 22 $ -
Domestic equity funds .......... 172 172 - - 146 146 - -
International equity funds ..... 309 255 54 - 264 214 50 -
Domestic fixed income
funds ................................. 164 164 - - 278 278 - -
International fixed income
funds ................................. 161 1 160 - 32 - 32 -
Balanced funds ..................... 334 173 161 - 297 155 142 -
Common stocks(b)
U.S. common stocks ............. 360 360 - - 300 300 - -
Government and agency
obligations(c)
Domestic government
obligations ........................ 24 - 24 - 35 - 35 -
Domestic agency obligations .. 33 - 33 - 67 - 67 -
International government
obligations ........................ - - - - 66 - 66 -
Corporate obligations(c) . . . . . . . . . . . . . . 8 4 - 8 4 - 7 5 - 7 5 -
Partnership interests(d) . . . . . . . . . . . . . . . . 3 7 - 3 7 - 3 8 - 3 8 -
Other .......................................... 79 (11) 89 1 37 (12 ) 48 1
Total .......................................... $1,874 $1,114 $ 759 $ 1 $1,657 $1,081 $ 575 $ 1
(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 values of partnerships that are not publicly traded are based on the fair value obtained from the
general partner.
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 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 the 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.