Time Warner Cable 2012 Annual Report Download - page 112

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TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
from these exercises of stock options was $69 million, $45 million and $28 million, respectively. Total unrecognized
compensation cost related to unvested stock options as of December 31, 2012, without taking into account expected
forfeitures, is $53 million and is expected to be recognized over a weighted-average period of 2.50 years.
During February 2013, TWC granted options to purchase approximately 2.4 million shares of TWC common stock
under the 2011 Plan, of which 283,000 were PBOs.
14. EMPLOYEE BENEFIT PLANS
Pension Plans
TWC sponsors two qualified defined benefit pension plans – Time Warner Cable Pension Plan (the “TWC Pension
Plan”) and Time Warner Cable Union Pension Plan (the “Union Pension Plan” and, together with the TWC Pension Plan, the
“qualified pension plans”) – that together provide pension benefits to a majority of the Company’s employees. TWC also
provides a nonqualified defined benefit pension plan for certain employees (the “nonqualified pension plan” and, together
with the qualified pension plans, the “pension plans”). Pension benefits are based on formulas that reflect the employees’
years of service and compensation during their employment period. TWC uses a December 31 measurement date for its
pension plans.
Changes in the Company’s projected benefit obligation, fair value of plan assets and funded status from January 1
through December 31 are presented below (in millions):
2012 2011
Projected benefit obligation at beginning of year .......................................$ 2,342 $ 1,803
Service cost .................................................................. 169 132
Interest cost .................................................................. 131 114
Actuarial loss ................................................................ 465 322
Benefits paid ................................................................. (36) (29)
Projected benefit obligation at end of year ............................................
$ 3,071 $ 2,342
Accumulated benefit obligation at end of year .........................................
$ 2,564 $ 1,900
Fair value of plan assets at beginning of year ..........................................
$ 2,292 $ 1,882
Actual return on plan assets ..................................................... 317 34
Employer contributions ......................................................... 289 405
Benefits paid ................................................................. (36) (29)
Fair value of plan assets at end of year ...............................................
$ 2,862 $ 2,292
Funded status ..................................................................
$ (209) $ (50)
The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the qualified pension
plans and the nonqualified pension plan as of December 31, 2012 and 2011 were as follows (in millions):
Qualified Pension Plans Nonqualified Pension Plan
December 31, December 31,
2012 2011 2012 2011
Projected benefit obligation ...............................$ 3,025 $ 2,305 $ 46 $ 37
Accumulated benefit obligation ............................ 2,520 1,865 44 35
Fair value of plan assets .................................. 2,862 2,292 — —
102