AT&T Wireless 2014 Annual Report Download - page 73

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AT&T INC.
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71
The tables below set forth a summary of changes in the fair value of the Level 3 pension and postretirement assets for the
year ended December 31, 2013:
Fixed Private Real Estate
Income Equity and
Pension Assets Equities Funds Funds Real Assets Total
Balance at beginning of year $ — $1,042 $ 5,797 $4,766 $11,605
Realized gains (losses) (3) 53 390 122 562
Unrealized gains (losses) 3 (8) 546 525 1,066
Transfers in — 5 — — 5
Transfers out — (442) — — (442)
Purchases — 75 1,214 354 1,643
Sales — (178) (2,223) (573) (2,974)
Balance at end of year $ — $ 547 $ 5,724 $5,194 $11,465
Fixed Private
Income Equity
Postretirement Assets Funds Funds Real Assets Total
Balance at beginning of year $ 21 $ 343 $ 110 $ 474
Realized gains (losses) — 2 12 14
Unrealized gains (losses) 1 58 4 63
Transfers in 1 — — 1
Transfers out (1) — — (1)
Purchases 5 89 27 121
Sales (1) (183) (42) (226)
Balance at end of year $ 26 $ 309 $ 111 $ 446
supplemental pension benefits as well as compensation-
deferral plans, some of which include a corresponding
match by us based on a percentage of the compensation
deferral.
We use the same significant assumptions for the composite
rate of compensation increase in determining our
projected benefit obligation and the net pension and
postemployment benefit cost. Our discount rates of 4.1%
at December 31, 2014 and 5.0% at December 31, 2013
were calculated using the same methodologies used in
calculating the discount rate for our qualified pension and
postretirement benefit plans. The following tables provide
the plans’ benefit obligations and fair value of assets at
December 31 and the components of the supplemental
retirement pension benefit cost. The net amounts are
recorded as “Other noncurrent liabilities” on our
consolidated balance sheets.
The following table provides information for our
supplemental retirement plans with accumulated benefit
obligations in excess of plan assets at December 31:
2014 2013
Projected benefit obligation $(2,458) $(2,280)
Accumulated benefit obligation (2,410) (2,227)
Fair value of plan assets — —
Estimated Future Benefit Payments
Expected benefit payments are estimated using the same
assumptions used in determining our benefit obligation at
December 31, 2014. Because benefit payments will depend
on future employment and compensation levels, average
years employed, average life spans, and payment elections,
among other factors, changes in any of these factors could
significantly affect these expected amounts. The following
table provides expected benefit payments under our
pension and postretirement plans:
Pension Postretirement
Benefits Benefits
2015 $ 5,741 $2,134
2016 4,184 2,063
2017 4,144 2,000
2018 4,066 1,962
2019 4,010 1,952
Years 2020 – 2024 19,753 9,324
Supplemental Retirement Plans
We also provide certain senior- and middle-management
employees with nonqualified, unfunded supplemental
retirement and savings plans. While these plans are
unfunded, we have assets in a designated nonbankruptcy
remote trust that are independently managed and used
to provide for these benefits. These plans include