Time Warner Cable 2010 Annual Report Download - page 112

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The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the qualified
pension plans and nonqualified pension plan as of December 31, 2010 and 2009 were as follows (in millions):
2010 2009 2010 2009
December 31, December 31,
Qualified Pension Plans Nonqualified Pension Plan
Projected benefit obligation ...................... $ 1,769 $ 1,520 $ 34 $ 32
Accumulated benefit obligation ................... 1,444 1,196 33 32
Fair value of plan assets ........................ 1,882 1,595 — —
Amounts recognized in the consolidated balance sheet as of December 31, 2010 and 2009 consisted of (in millions):
2010 2009
December 31,
Noncurrent asset ..................................................... $ 113 $ 75
Current liability ..................................................... (4) (3)
Noncurrent liability ................................................... (30) (29)
Total amounts recognized in assets and liabilities ............................. $ 79 $ 43
Accumulated other comprehensive loss:
Net actuarial loss .................................................... $ 479 $ 528
Prior service cost .................................................... 1 1
Total amounts recognized in TWC shareholders’ equity ........................ $ 480 $ 529
The components of net periodic benefit costs for the years ended December 31, 2010, 2009 and 2008 were as follows
(in millions):
2010 2009 2008
Year Ended December 31,
Service cost ............................................. $ 115 $ 100 $ 96
Interest cost ............................................. 100 88 79
Expected return on plan assets ............................... (127) (93) (102)
Amounts amortized ....................................... 29 66 18
Settlement loss........................................... — 1 —
Net periodic benefit costs ................................... $ 117 $ 162 $ 91
The estimated amounts that will be amortized from accumulated other comprehensive loss, net, into net periodic
benefit costs in 2011 include an actuarial loss of $24 million.
In addition, certain employees of TWC participate in multi-employer pension plans, not included in the net periodic
benefit costs above, for which the expense was $36 million in 2010, $33 million in 2009 and $31 million in 2008.
Weighted-average assumptions used to determine benefit obligations as of December 31, 2010, 2009 and 2008 were
as follows:
2010 2009 2008
Discount rate ............................................ 5.90% 6.16% 6.17%
Rate of compensation increase ............................... 4.25% 4.25% 4.00%
In 2010, the discount rate used to determine benefit obligations was determined by the matching of plan liability cash
flows to a portfolio of bonds individually selected from a large population of high-quality corporate bonds. In 2009 and
2008, the discount rate used to determine benefit obligations was determined by the matching of plan liability cash flows
to a pension yield curve constructed of a large population of high-quality corporate bonds.
100
TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)