Comcast 2010 Annual Report Download - page 85

Table of Contents
The table below provides condensed information on our postretirement and pension benefit plans.
2010
2009 2008
Year ended December 31 (in millions)
Postretirement
Benefits
Pension
Benefits
Postretirement
Benefits
Pension
Benefits
Postretirement
Benefits
Pension
Benefits
Benefit obligation
$
424
$
197
$
360
$
184
$
338
$
181
Fair value of plan assets
$
—
$
183
$ —
$
176
$ —
$
152
Plan funded status and recorded
benefit obligation
$
(424
)
$
(14
)
$
(360
)
$
(8
)
$
(338
)
$
(29
)
Portion of benefit obligation not yet
recognized in benefits expense
$
(18
)
$
51
$
(36
)
$
46
$
(18
)
$
67
Benefits expense
$
50
$
1
$
45
$
2
$
36
$
1
Discount rate
5.50
%
5.25
%
6.05
%
5.75
%
6.15
%
6.00
%
Expected return on plan assets
N/A
8.00
%
N/A
8.00
%
N/A
8.00
%
75
Comcast 2010 Annual Report on Form 10-
K
Note 13: Postretirement, Pension and Other Employee
Benefit Plans
Postretirement Benefit Plans
Our postretirement medical benefits cover substantially all of
our employees who meet certain age and service
requirements. The substantial majority of eligible employees
participate in the Comcast Postretirement Healthcare Stipend
Program (the “stipend plan”), and a small number of eligible
employees participate in legacy plans of acquired companies.
The stipend plan provides an annual stipend for
reimbursement of healthcare costs to each
eligible employee based on years of service. Under the
stipend plan, we are not exposed to the increasing costs of
healthcare because the benefits are fixed at a predetermined
amount. Substantially all of our postretirement benefit
obligations are recorded to noncurrent liabilities.
Pension Plans
We sponsor two pension plans that together provide benefits
to substantially all former AT&T Broadband employees.
Future benefits for both plans have been frozen.
Other Employee Benefits
Deferred Compensation Plans
We maintain unfunded, nonqualified deferred compensation
plans for certain members of management and nonemployee
directors (each a “participant”). The amount of compensation
deferred by each participant is based on participant elections.
Participant accounts are credited with income primarily based
on a fixed annual rate. Participants are eligible to receive
distributions of the amounts credited to their account based
on elected deferral periods that are consistent with the plans
and applicable tax law.
The table below provides the benefit obligation and interest
expense for our deferred compensation plans.
We have purchased life insurance policies to fund a portion
of the unfunded obligation related to our deferred
compensation plans. As of December 31, 2010 and 2009, the
cash surrender value of these policies, which is recorded to
other noncurrent assets, was approximately $373 million and
$264 million, respectively.
Year ended December 31 (in millions)
2010
2009
2008
Benefit obligation
$
935
$
849
$
797
Interest expense
$
88
$
79
$
76
Split-Dollar Life Insurance Agreements
We have collateral assignment split-dollar life insurance
agreements with select key employees that require us to
carry certain insurance-related costs. Under some of these
agreements, our obligation to provide benefits to the
employees extends beyond retirement.
On January 1, 2008, we adjusted beginning retained
earnings and recorded a liability of $132 million for the
present value of the postretirement benefit obligation related
to our split-dollar life insurance agreements in connection
with the adoption of new accounting guidance.
The table below provides the benefit obligation and expense
for our split-dollar life insurance agreements.
Retirement Investment Plans
We sponsor several 401(k) retirement plans that allow
eligible employees to contribute a portion of their
compensation through payroll deductions in accordance with
specified plan guidelines. We match a percentage of the
employees’ contributions up to
Year ended December 31 (in millions)
2010
2009
2008
Benefit obligation
$
164
$
166
$
145
Expense
$
16
$
37
$
24