Time Warner Cable 2012 Annual Report Download - page 117

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TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Changes in the fair value of investment assets valued using significant unobservable inputs (Level 3) from January 1
through December 31 are presented below (in millions):
2012 2011
Balance at beginning of year ......................................................$ 28 $ 28
Purchases and sales:
Purchases ................................................................... 3 4
Sales ....................................................................... (20) (4)
Sales, net ...................................................................... (17) —
Actual return on plan assets sold during the year ....................................... 2 —
Balance at end of year ............................................................
$13$28
Expected Cash Flows
The Company was not required to make any cash contributions to its qualified pension plans in 2012; however, the
Company made cash contributions of $285 million to the qualified pension plans and the Company may make discretionary
cash contributions to the qualified pension plans in 2013. Such contributions will be dependent on a variety of factors,
including current and expected interest rates, asset performance, the funded status of the qualified pension plans and
management’s judgment. For the nonqualified pension plan, the Company contributed $4 million during 2012 and will
continue to make contributions in 2013 to the extent benefits are paid.
Benefit payments for the pension plans are expected to be $36 million in 2013, $43 million in 2014, $50 million in
2015, $59 million in 2016, $69 million in 2017 and $539 million in 2018 to 2022.
Multiemployer Plans
TWC contributes to a number of multiemployer plans under the terms of collective-bargaining agreements that cover its
union-represented employees. For the years ended December 31, 2012, 2011 and 2010, the Company contributed $42
million, $41 million and $36 million to multiemployer plans.
The risks of participating in multiemployer plans are different from single-employer plans in the following aspects:
(a) assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other
participating employers, (b) if a participating employer stops contributing to the multiemployer plan, the unfunded
obligations of the plan may be borne by the remaining participating employers and (c) if TWC chooses to stop participating
in any of the multiemployer plans, the Company may be required to pay those plans an amount based on the underfunded
status of the plan, referred to as a withdrawal liability.
The multiemployer pension plans to which the Company contributes each received a Pension Protection Act “green”
zone status for plan years ending in 2011. The zone status is based on the most recent information the Company received
from the plan and is certified by the plan’s actuary. Among other factors, plans in the green zone are at least 80% funded.
Defined Contribution Plan
TWC employees also participate in a defined contribution plan, the TWC Savings Plan, for which the expense for
employer matching contributions totaled $77 million in 2012, $70 million in 2011 and $64 million in 2010. The Company’s
contributions to the TWC Savings Plan are primarily based on a percentage of the employees’ elected contributions and are
subject to plan provisions.
107