Time Magazine 2015 Annual Report Download - page 114

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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
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,
2015 2014
Change in benefit obligation:
Projected benefit obligation, beginning of year ................................... $ 3,694 $ 3,311
Service cost .............................................................. 4 3
Interest cost .............................................................. 147 153
Actuarial loss (gain) ........................................................ (204) 484
Benefits paid ............................................................. (177) (192)
Curtailments/Special termination benefit ....................................... (1) (8)
Transfer out due to the Time Separation ........................................ — (29)
Foreign currency exchange rates .............................................. (24) (28)
Projected benefit obligation, end of year ........................................ $ 3,439 $ 3,694
Accumulated benefit obligation, end of year ..................................... $ 3,405 $ 3,660
Plan Assets (millions)
December 31,
2015 2014
Change in plan assets:
Fair value of plan assets, beginning of year ..................................... $ 2,932 $ 2,766
Actual return on plan assets .................................................. (84) 333
Employer contributions ..................................................... 49 51
Benefits paid ............................................................. (177) (192)
Foreign currency exchange rates .............................................. (22) (26)
Fair value of plan assets, end of year ........................................... $ 2,698 $ 2,932
As of December 31, 2015 and December 31, 2014, the funded status recognized in the Consolidated Balance Sheet
reflected a net liability position of $741 million and $762 million, respectively, primarily consisting of noncurrent liabilities
of $798 million and $808 million, respectively. As of December 31, 2015 and December 31, 2014, amounts included in
Accumulated other comprehensive loss, net were $1.402 billion and $1.400 billion, respectively, primarily consisting of net
actuarial losses.
Certain defined benefit pension plans have projected benefit obligations and accumulated benefit obligations in excess
of their plan assets. These plans are primarily unfunded. As of December 31, 2015 and December 31, 2014, the projected
benefit obligations for unfunded plans were $417 million and $449 million, respectively, and the accumulated benefit
obligations for unfunded plans were $410 million and $442 million, respectively. In addition, as of December 31, 2015, the
projected benefit obligation and accumulated benefit obligation for certain funded plans exceeded the fair value of their
assets by $414 million and $413 million, respectively.
100