Time Warner Cable 2011 Annual Report Download - page 108

TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
“nonqualified pension plan” and, together with the qualified pension plans, the “pension plans”). Pension benefits are based
on formulas that reflect the employees’ years of service and compensation during their employment period. Effective
January 1, 2011, with respect to employees hired on or after January 1, 2011, the TWC Pension Plan was amended to provide
that an employee’s service period prior to the date the employee satisfies the plan’s one-year service requirement and
commences participation in the plan is excluded from the employee’s benefit service period for the purpose of calculating
pension benefits in the applicable period. TWC uses a December 31 measurement date for its pension plans.
Changes in the Company’s projected benefit obligation, fair value of plan assets and funded status from January 1
through December 31 are presented below (in millions):
2011 2010
Projected benefit obligation at beginning of year ........................................ $ 1,803 $ 1,552
Service cost ................................................................... 132 115
Interest cost ................................................................... 114 100
Actuarial loss .................................................................. 322 62
Benefits paid .................................................................. (29) (26)
Projected benefit obligation at end of year ............................................. $ 2,342 $ 1,803
Accumulated benefit obligation at end of year .......................................... $ 1,900 $ 1,477
Fair value of plan assets at beginning of year ........................................... $ 1,882 $ 1,595
Actual return on plan assets ....................................................... 34 209
Employer contributions .......................................................... 405 104
Benefits paid .................................................................. (29) (26)
Fair value of plan assets at end of year ................................................ $ 2,292 $ 1,882
Funded status .................................................................... $ (50) $ 79
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, 2011 and 2010 were as follows (in millions):
Qualified Pension Plans Nonqualified Pension Plan
December 31, December 31,
2011 2010 2011 2010
Projected benefit obligation .............................. $ 2,305 $ 1,769 $ 37 $ 34
Accumulated benefit obligation ........................... 1,865 1,444 35 33
Fair value of plan assets ................................. 2,292 1,882 — —
Amounts recognized in the consolidated balance sheet as of December 31, 2011 and 2010 consisted of (in millions):
December 31,
2011 2010
Noncurrent asset ................................................................. $ — $ 113
Current liability .................................................................. (4) (4)
Noncurrent liability ............................................................... (46) (30)
Total amounts recognized in assets and liabilities ........................................ $ (50) $ 79
Accumulated other comprehensive loss:
Net actuarial loss ................................................................. $ 890 $ 479
Prior service cost ................................................................. 1 1
Total amounts recognized in TWC shareholders’ equity .................................. $ 891 $ 480
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