Time Magazine 2013 Annual Report Download - page 115

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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
The following table sets forth the total intrinsic value of RSUs and target PSUs that vested during the
following years (millions):
Year Ended December 31,
2013 2012 2011
RSUs ........................................... $ 291 $ 177 $ 135
PSUs ........................................... 27 11 11
Equity-Based Compensation Expense
Compensation expense recognized for equity-based compensation plans is as follows (millions):
Year Ended December 31,
2013 2012 2011
Stock options ..................................... $ 37 $ 52 $ 70
RSUs and PSUs ................................... 219 182 155
Total impact on operating income ..................... $ 256 $ 234 $ 225
Tax benefit recognized ............................. $ 84 $ 80 $ 82
Total unrecognized compensation cost related to unvested Time Warner stock option awards as of
December 31, 2013, without taking into account expected forfeitures, is $29 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, 2013, without taking into account expected
forfeitures, is $210 million and is expected to be recognized over a weighted-average period between one and
two years.
13. BENEFIT PLANS
Retirement Plan Amendments
Effective after June 30, 2010, the Company’s domestic defined benefit pension plans were closed to new
hires and employees with less than one year of service and participating employees stopped accruing additional
years of service for purposes of determining the benefits provided by the plans (though crediting years of service
for purposes of vesting and eligibility for early retirement benefits continues) and, effective December 31, 2013,
pay increases will not be taken into consideration when determining a participating employee’s benefits under
the plans.
In July 2013, the Company’s Board of Directors approved amendments to the Time Warner Group Health
Plan. Pursuant to the amendments, (i) subsidized medical benefits provided to eligible retired employees (and
their eligible dependents) were discontinued for all future retirees who were employed on December 31, 2013
and who will not meet the eligibility criteria by December 31, 2015 and (ii) effective January 1, 2014, post-65
retiree medical coverage will be discontinued and eligible retirees (and their eligible dependents) will move to
coverage provided in the individual health insurance market.
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