Time Magazine 2012 Annual Report Download - page 112

TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Information about the expected benefit payments for the Company’s defined benefit plans is as follows
(millions):
2013 2014 2015 2016 2017 2018-2022
Expected benefit payments ............ $ 181 $ 184 $ 191 $ 196 $ 205 $ 1,089
Defined Contribution Plans
Time Warner has certain domestic and international defined contribution plans, including savings and profit
sharing plans, for which the expense amounted to $188 million in 2012, $184 million in 2011 and $129 million in
2010. The Company’s contributions to the savings plans are primarily based on a percentage of the employees’
elected contributions and are subject to plan provisions.
Effective July 1, 2010, the Company increased its matching contributions for eligible participants in the
Company’s domestic defined contribution plan (“Time Warner Savings Plan”). Effective January 1, 2011, the
Company has implemented a supplemental savings plan that provides for similar Company matching for eligible
participant deferrals above the Internal Revenue Service compensation limits that apply to the Time Warner
Savings Plan up to $500,000 of eligible compensation.
Other Postretirement Benefit Plans
Time Warner also sponsors several unfunded domestic postretirement benefit plans covering certain retirees
and their dependents. For substantially all of Time Warner’s domestic postretirement benefit plans, the unfunded
benefit obligation as of December 31, 2012 and December 31, 2011 was $179 million and $164 million,
respectively, and the amount recognized in Accumulated other comprehensive loss, net was a $10 million loss
and an $8 million gain, respectively. For the years ended December 31, 2012, 2011 and 2010, the net periodic
benefit costs were $11 million, $11 million and $12 million, respectively.
Multiemployer Benefit Plans
The Company contributes to various multiemployer defined benefit pension plans under the terms of
collective-bargaining agreements that cover certain of its union-represented employees, primarily at the Film and
TV Entertainment segment. The risks of participating in these multiemployer pension plans are different from
single-employer pension plans in that (i) contributions made by the Company to the multiemployer pension plans
may be used to provide benefits to employees of other participating employers; (ii) if the Company chooses to
stop participating in certain of these multiemployer pension plans, it may be required to pay those plans an
amount based on the underfunded status of the plan, which is referred to as a withdrawal liability; and
(iii) actions taken by a participating employer that lead to a deterioration of the financial health of a
multiemployer pension plan may result in the unfunded obligations of the multiemployer pension plan to be
borne by its remaining participating employers. While no multiemployer pension plan contributed to by the
Company is individually significant, the Pension Protection Act of 2006 zone status as of December 31, 2012
(i.e., for the multiemployer plan’s 2011 plan year) of all of the largest multiemployer pension plans in which the
Company participates was green, which implies that such plans are funded at a level of 80 percent or greater.
Total contributions made by the Company to multiemployer pension plans for the years ended December 31,
2012, 2011 and 2010 were $93 million, $109 million and $101 million, respectively.
The Company also contributes to various other multiemployer benefit plans that provide health and welfare
benefits to active and retired participants, primarily at the Film and TV Entertainment segment. Total
contributions made by the Company to these other multiemployer benefit plans for the years ended December 31,
2012, 2011 and 2010 were $167 million, $157 million and $165 million, respectively.
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