AT&T Wireless 2012 Annual Report Download - page 89

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AT&T Inc. | 87
Supplemental Retirement Plans
We also provide certain senior- and middle-management
employees with nonqualified, unfunded supplemental
retirement and savings plans. While these plans are
unfunded, we have assets in a designated nonbankruptcy
remote trust that are independently managed and used to
provide for these benefits. These plans include supplemental
pension benefits as well as compensation-deferral plans,
some of which include a corresponding match by us based
on a percentage of the compensation deferral.
We use the same significant assumptions for the discount
rate and composite rate of compensation increase used in
determining the projected benefit obligation and the net
pension and postemployment benefit cost. The following
tables provide the plans’ benefit obligations and fair value
of assets at December 31 and the components of the
supplemental retirement pension benefit cost. The net
amount recorded as “Other noncurrent liabilities” on our
consolidated balance sheets at December 31, 2012, was
$2,456 and $2,294 at December 31, 2011.
Estimated Future Benefit Payments
Expected benefit payments are estimated using the same
assumptions used in determining our benefit obligation at
December 31, 2012. Because benefit payments will depend
on future employment and compensation levels, average
years employed, average life spans, and payment elections,
among other factors, changes in any of these factors could
significantly affect these expected amounts. The following
table provides expected benefit payments under our pension
and postretirement plans:
Medicare
Pension Postretirement Subsidy
Benefits Benefits Receipts
2013 $ 4,697 $2,371 $ (18)
2014 4,395 2,249 (20)
2015 4,282 2,180 (23)
2016 4,215 2,131 (26)
2017 4,169 2,076 (30)
Years 2018 – 2022 20,286 9,924 (195)
The tables below set forth a summary of changes in the fair value of the Level 3 pension and postretirement assets for the year
ended December 31, 2011:
Fixed Private Real Estate
Income Equity and
Pension Assets Equities Funds Funds Real Assets Total
Balance at beginning of year $ — $ 441 $ 5,617 $4,570 $ 10,628
Realized gains (losses) (1) 17 164 2 182
Unrealized gains (losses) 1 (6) 448 666 1,109
Transfers in 3 393 — — 396
Purchases 1 95 844 859 1,799
Sales — (116) (1,142) (884) (2,142)
Balance at end of year $ 4 $ 824 $ 5,931 $5,213 $11,972
Fixed Private
Income Equity
Postretirement Assets Funds Funds Real Assets Total
Balance at beginning of year $ 45 $ 496 $ 157 $ 698
Realized gains (losses) — 70 (28) 42
Unrealized gains (losses) — (23) 31 8
Purchases 8 175 53 236
Sales (29) (281) (89) (399)
Balance at end of year $ 24 $ 437 $ 124 $ 585