Time Warner Cable 2014 Annual Report Download - page 110

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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):
2014 2013
Balance at beginning of year .................................................... $ 10 $ 13
Purchases and sales:
Purchases ................................................................. 2 1
Sales .................................................................... (2) (4)
Sales, net ................................................................... — (3)
Balance at end of year ......................................................... $ 10 $ 10
Expected Cash Flows
The Company made no cash contributions to the qualified pension plans during 2014; however, the Company may
make discretionary cash contributions to the qualified pension plans in 2015. 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 will continue to make
contributions in 2015 to the extent benefits are paid.
Benefit payments for the pension plans are expected to be $107 million in 2015, $124 million in 2016, $139 million
in 2017, $154 million in 2018, $169 million in 2019 and $1.085 billion in 2020 to 2024.
Multiemployer Plans
TWC contributes to a number of multiemployer plans under the terms of collective-bargaining agreements that cover
its union-represented employees. Such multiemployer plans provide medical, pension and retirement savings benefits to
active employees and retirees. For the years ended December 31, 2014, 2013 and 2012, the Company contributed $45
million, $44 million and $42 million to multiemployer plans.
The risks of participating in multiemployer pension plans are different from single-employer pension plans in the
following aspects: (a) assets contributed to a multiemployer pension 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 pension 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 pension 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 in 2013. 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 $91 million in 2014, $82 million in 2013 and $77 million in 2012. 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.
102