Time Magazine 2010 Annual Report Download - page 106

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A summary of activity for substantially all of Time Warner’s domestic and international defined benefit pension
plans is as follows:
Defined Benefit Plans
Benefit Obligation (millions)
2010 2009
December 31,
Change in benefit obligation:
Projected benefit obligation, beginning of year . ....................... $ 3,412 $ 2,970
Service cost.................................................. 52 78
Interest cost.................................................. 186 179
Plan participants contribution ..................................... 7 7
Actuarial loss ................................................ 162 270
Benefits paid ................................................. (157) (152)
Curtailments ................................................. 14 (1)
Settlements .................................................. — (29)
Plan amendments ............................................. 11 —
Remeasurement due to plan changes ............................... (185) —
Foreign currency exchange rates .................................. (52) 90
Projected benefit obligation, end of year ............................ $ 3,450 $ 3,412
Accumulated benefit obligation, end of year . . . ....................... $ 3,303 $ 3,142
Plan Assets (millions)
2010 2009
December 31,
Change in plan assets:
Fair value of plan assets, beginning of year . . . ....................... $ 2,962 $ 2,348
Actual return on plan assets ...................................... 266 636
Employer contributions ......................................... 104 73
Benefits paid ................................................. (157) (152)
Settlements .................................................. — (29)
Plan participants contribution ..................................... 4 4
Foreign currency exchange rates .................................. (49) 82
Fair value of plan assets, end of year ............................... $ 3,130 $ 2,962
As of December 31, 2010 and December 31, 2009, the funded status recognized in the consolidated balance
sheet reflected a net liability position of $320 million and $450 million, respectively, primarily consisting of
noncurrent liabilities of $381 million and $431 million, respectively. As of December 31, 2010 and December 31,
2009, amounts included in Accumulated other comprehensive income were $992 million and $1.078 billion,
respectively, primarily consisting of net actuarial losses.
Certain defined benefit plans have projected benefit obligations and accumulated benefit obligations in excess
of their plan assets. These plans are primarily unfunded. As of December 31, 2010 and December 31, 2009, the
projected benefit obligations in excess of plan assets for unfunded plans were $411 million and $347 million,
respectively, and the accumulated benefit obligations in excess of plan assets for unfunded plans were $404 million
and $360 million, respectively. In addition, as of December 31, 2009, the projected benefit obligation for certain
funded plans exceeded the fair value of their assets by $103 million.
94
TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)