NYT » Topics » Common/collective trusts:

These excerpts taken from the NYT 11-K filed Jun 29, 2009.

Common/collective trusts:

Common/collective trusts represent investments with various investment managers. The respective fair values of these investments are determined by reference to the trusts’ underlying assets which are principally guaranteed investment contracts and short-term investments. Units held in common/collective trusts are valued at the unit value as reported by the investment managers.

Common/collective trusts:

SIZE="2">Common/collective trusts represent investments with various investment managers. The respective fair values of these investments are determined by reference to the trusts’ underlying assets which are principally guaranteed investment
contracts and short-term investments. Units held in common/collective trusts are valued at the unit value as reported by the investment managers.

SIZE="2">Guaranteed investment contracts:

Traditional investment contracts issued by insurance companies and banks are
nontransferable, but provide for benefit-responsive withdrawals by Plan participants at contract value. For traditional investment contracts, fair value comprises the expected future cash flows for each contract discounted to present value. Contract
value represents contributions made plus interest accrued at the contract rate, less withdrawals. The crediting rate on traditional contracts is typically fixed for the life of the investment.

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Alternative investment contracts consist of investments together with contracts under which a bank or
other institution provides for benefit-responsive withdrawals by Plan participants at contract value. For alternative investment contracts, the fair value comprises the aggregate market values of the underlying investments in mutual funds and bond
trusts, and the value of the wrap contracts, if any. The difference between valuation at contract value and fair value is reflected over time through the crediting rate formula provided for in the Master Trust’s synthetic contracts. The
crediting rate of the contract resets every quarter based on the performance of the underlying investment portfolio. To the extent that the Master Trust has unrealized gains and losses (that are accounted for, under contract value accounting,
through the value of the synthetic contract), the interest crediting rate may differ from then-current market rates. An investor currently redeeming Master Trust units may forgo a benefit, or avoid a loss, related to a future crediting rate
different from then-current market rates.

EXCERPTS ON THIS PAGE:

11-K (2 sections)
Jun 29, 2009
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