Time Warner Cable 2007 Annual Report Download - page 117

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11. EMPLOYEE BENEFIT PLANS
Defined Benefit Plans
The Company participates in various funded and unfunded noncontributory defined benefit pension plans
administered by Time Warner. Pension benefits are determined based on formulas that reflect the employees’ years
of service and compensation during their employment period and participation in the plans. TWC uses a
December 31 measurement date for its plans. A summary of activity for the defined benefit pension plans is as
follows (in millions):
2007 2006
December 31,
Change in Benefit Obligation:
Projected benefit obligation, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,042 $ 937
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 63
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 58
Actuarial (gain) loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 (4)
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (21) (16)
Remeasurement impact of the Transactions
(a)
............................... 18 —
Net periodic benefit costs from discontinued operations . . . . . . . . . . . . . . . . . . . . . . . . — 4
Projected benefit obligation, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,220 $ 1,042
Accumulated benefit obligation, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,001 $ 867
Change in Plan Assets:
Fair value of plan assets, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,142 $ 927
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 130
Employer contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 101
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (21) (16)
Fair value of plan assets, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,187 $ 1,142
Funded Status:
Fair value of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,187 $ 1,142
Projected benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,220 1,042
Funded status, amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (33) $ 100
(a)
On August 1, 2007, the former employees of Adelphia and Comcast who became employees of TWC became eligible to participate in the
pension plans, which resulted in a remeasurement of those plans as of that date.
Amounts recognized in the consolidated balance sheet consisted of (in millions):
2007 2006
December 31,
Noncurrent asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4 $ 132
Current liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) (1)
Noncurrent liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (35) (31)
$ (33) $ 100
Accumulated other comprehensive loss:
Net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 287 $ 217
112
TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)