Time Magazine 2012 Annual Report Download - page 108

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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Total unrecognized compensation cost related to unvested Time Warner stock option awards as of
December 31, 2012, without taking into account expected forfeitures, is $50 million and is expected to be
recognized over a weighted-average period between one and two years. Total unrecognized compensation cost
related to unvested RSUs and target PSUs as of December 31, 2012, without taking into account expected
forfeitures, was $213 million and is expected to be recognized over a weighted-average period between one and
two years.
13. BENEFIT PLANS
Retirement Plan Amendments
In March 2010, the Company’s Board of Directors approved amendments to its domestic defined benefit
pension plans. Pursuant to the amendments, (i) effective after June 30, 2010, benefits provided under the plans
stopped accruing for additional years of service and the plans were closed to new hires and employees with less
than one year of service and (ii) after December 31, 2013, pay increases will no longer be taken into
consideration when determining a participating employee’s benefits under the plans.
In December 2010, amendments to the U.K. defined benefit pension plans were approved. Pursuant to the
amendments, effective after March 31, 2011, benefits provided under the plans stopped accruing for additional
years of service, but pay increases continue to be taken into consideration when determining a participating
employee’s benefits under the plans.
A summary of activity for substantially all of Time Warner’s domestic and international defined benefit
pension plans is as follows:
Defined Benefit Pension Plans
Benefit Obligation (millions)
December 31,
2012 2011
Change in benefit obligation:
Projected benefit obligation, beginning of year ............................ $ 3,733 $ 3,450
Service cost ....................................................... 3 9
Interest cost ....................................................... 178 188
Plan participant contributions ......................................... — 5
Actuarial loss ...................................................... 444 240
Benefits paid ...................................................... (133) (151)
Settlements ........................................................ (32) —
Plan amendments ................................................... (1) —
Foreign currency exchange rates ....................................... 32 (8)
Projected benefit obligation, end of year ................................. $ 4,224 $ 3,733
Accumulated benefit obligation, end of year .............................. $ 4,171 $ 3,659
92