Time Magazine 2011 Annual Report Download - page 111

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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2010, amounts included in Accumulated other comprehensive loss, net were $1.282 billion and
$992 million, 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, 2011 and December 31,
2010, the projected benefit obligations in excess of plan assets for unfunded plans were $437 million and $411
million, respectively, and the accumulated benefit obligations in excess of plan assets for unfunded plans were
$429 million and $404 million, respectively. In addition, as of December 31, 2011, the projected benefit
obligation and accumulated benefit obligation for certain funded plans exceeded the fair value of their assets by
$220 million and $187 million, respectively.
Components of Net Periodic Benefit Costs from Continuing Operations (millions)
December 31,
2011 2010 2009
Service cost ................................................ $ 9 $ 52 $ 78
Interest cost ................................................ 188 186 179
Expected return on plan assets .................................. (196) (230) (173)
Amortization of prior service cost ............................... 1 — —
Amortization of net loss ...................................... 20 41 124
Settlements/curtailments ...................................... — 2 5
Net periodic benefit costs ..................................... $ 22 $ 51 $ 213
Assumptions
Weighted-average assumptions used to determine benefit obligations and net periodic benefit costs for the
years ended December 31:
Benefit Obligations Net Periodic Benefit Costs
2011 2010 2009 2011 2010 2009
Discount rate ................................ 4.91% 5.55% 5.80% 5.55% 5.80% 6.17%
Rate of compensation increase ................... 4.39% 4.76% 4.78% 4.76% 4.78% 4.57%
Expected long-term return on plan assets .......... n/a n/a n/a 6.44% 7.84% 7.76%
The discount rates were determined by matching the plan’s liability cash flows to rates derived from high-
quality corporate bonds available at the measurement date.
In developing the expected long-term rate of return on plan assets, the Company considered long-term
historical rates of return, the Company’s plan asset allocations as well as the opinions and outlooks of investment
professionals and consulting firms.
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