Time Magazine 2013 Annual Report Download - page 120

TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
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 $195 million in 2013, $188 million in 2012 and $184 million in
2011. 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.
Other Postretirement Benefit Plans
Time Warner also sponsors several unfunded domestic postretirement benefit plans covering certain retirees
and their dependents. As previously noted, during 2013 the Company’s Board of Directors approved
amendments to the Time Warner Group Health Plan. In connection with these amendments, the Company
recognized a curtailment gain of $38 million. For substantially all of Time Warner’s domestic postretirement
benefit plans, the unfunded benefit obligation as of December 31, 2013 and December 31, 2012 was $126 million
and $179 million, respectively, and the amount recognized in Accumulated other comprehensive loss, net was a
$3 million gain and a $10 million loss, respectively. For the years ended December 31, 2013, 2012 and 2011, the
net periodic benefit (income)/costs were $(28) million, $11 million and $11 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 Warner
Bros. 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, 2013 (i.e., for the multiemployer
plan’s 2012 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, 2013, 2012 and 2011 were $113
million, $93 million and $109 million, respectively. Included in these amounts are contributions that Home Box
Office periodically makes to the Radio Television & Recording Artists Pension Plan (“RT&RA Plan”) under a
collective bargaining agreement that expires in October 2015. The RT&RA Plan is not one of the five largest
multiemployer pension plans in which the Company participates. The RT&RA Plan’s most recently filed Form
5500 was for its plan year ended December 31, 2012. Pursuant to that filing, Home Box Office is one of eight
employers obligated to contribute to the RT&RA Plan. The RT&RA Plan is operating under a rehabilitation plan,
the Pension Protection Act of 2006 zone status as of December 31, 2012 was red (i.e., critical) and it was less
than 65% funded. Home Box Office’s contributions to this plan were less than $1 million in each of the years
ended December 31, 2013, 2012 and 2011. Based on contributions reported in the most recent Form 5500, Home
Box Office’s contributions represented greater than 5% of the plan’s total contributions. Home Box Office’s
future contributions to this plan are determined pursuant to the collective bargaining agreement, which imposes
no minimum contributions requirement, but incorporates a contribution surcharge for years the plan is in critical
status. If Home Box Office had elected to withdraw from the RT&RA Plan during the 2012 plan year, its
estimated withdrawal liability would have been approximately $20 million.
The Company also contributes to various other multiemployer benefit plans that provide health and welfare
benefits to active and retired participants, primarily at the Warner Bros. segment. Total contributions made by the
Company to these other multiemployer benefit plans for the years ended December 31, 2013, 2012 and 2011
were $193 million, $167 million and $157 million, respectively.
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