Time Magazine 2014 Annual Report Download - page 109

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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
eligibility for early retirement benefits continues). Effective December 31, 2013, pay increases are no longer 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 was discontinued and
eligible retirees (and their eligible dependents) were moved to coverage provided in the individual health insurance market.
Defined Benefit Pension Plans
A summary of activity for substantially all of Time Warner’s domestic and international defined benefit pension plans is
as follows:
Benefit Obligation (millions)
December 31,
2014 2013
(recast)
Change in benefit obligation:
Projected benefit obligation, beginning of year ................................ $ 3,311 $ 3,615
Service cost ............................................................ 3 3
Interest cost ............................................................ 153 143
Actuarial loss (gain) ..................................................... 484 (307)
Benefits paid ........................................................... (192) (153)
Curtailments/Special termination benefit ..................................... (8) -
Transfer out due to the Time Separation ...................................... (29) -
Foreign currency exchange rates ........................................... (28) 10
Projected benefit obligation, end of year ..................................... $ 3,694 $ 3,311
Accumulated benefit obligation, end of year .................................. $ 3,660 $ 3,280
Plan Assets (millions)
December 31,
2014 2013
(recast)
Change in plan assets:
Fair value of plan assets, beginning of year ................................... $ 2,766 $ 2,808
Actual return on plan assets ............................................... 333 46
Employer contributions ................................................... 51 51
Benefits paid ........................................................... (192) (153)
Foreign currency exchange rates ........................................... (26) 14
Fair value of plan assets, end of year ........................................ $ 2,932 $ 2,766
As of December 31, 2014 and December 31, 2013, the funded status recognized in the Consolidated Balance Sheet
reflected a net liability position of $762 million and $545 million, respectively, primarily consisting of noncurrent liabilities
of $808 million and $580 million, respectively. As of December 31, 2014 and December 31, 2013, amounts included in
Accumulated other comprehensive loss, net were $1.400 billion and $1.149 billion, respectively, primarily consisting of net
actuarial losses.
93