Time Magazine 2014 Annual Report Download - page 113

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 $160 million in 2014, $153 million in 2013 and $144 million in 2012. 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 described above, 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 in
2013. For substantially all of Time Warner’s domestic postretirement benefit plans, the unfunded benefit obligation as of
December 31, 2014 and December 31, 2013 was $104 million and $126 million, respectively, and the amount recognized in
Accumulated other comprehensive income, net was a gain of $17 million and $3 million, respectively. For the years ended
December 31, 2014, 2013 and 2012, the net periodic benefit costs/(income) were $2 million, $(32) million and $6 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, 2014 (i.e., for the multiemployer pension
plan’s 2013 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, 2014, 2013 and 2012 were $125 million, $113 million and
$93 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, 2013. 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 for this plan as of December 31, 2013
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, 2014, 2013 and 2012. Based on contributions reported in the most recent
Form 5500 for this plan, 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 2014 plan year, its estimated
withdrawal liability would have been approximately $25 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, 2014, 2013 and 2012 were $213 million, $193 million
and $167 million, respectively.
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