Capital One 2008 Annual Report Download - page 140

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122
Note 11
Retirement Plans
Defined Contribution Plan
The Company sponsors a contributory Associate Savings Plan in which substantially all full-time and certain part-time associates are
eligible to participate. The Company makes contributions to each eligible associates account, matches a portion of associate
contributions and makes discretionary contributions based upon the Company meeting a certain earnings per share target or other
performance metrics. The Companys contributions to this plan amounted to $110.3 million, $73.6 million and $70.9 million for the
years ended December 31, 2008, 2007 and 2006, respectively.
The Company sponsors other defined contribution plans that were assumed through recent acquisitions. These plans were all merged
into the Companys Associate Savings Plan at the end of 2007. As a result, there were no contributions of cash and shares of the
Companys common stock to these plans in 2008. In prior years, contributions of cash and shares of the Companys common stock
totaled $35.6 million and $12.6 million for the years ended December 31, 2007 and 2006, respectively, were made to these plans.
Defined Benefit Pension and Other Postretirement Benefit Plans
The Company sponsors defined benefit pension plans and other postretirement benefit plans. Pension plans include a legacy frozen
cash balance plan and plans assumed in the North Fork acquisition, including two qualified defined benefit pension plans and several
non-qualified defined benefit pension plans. The Companys legacy pension plan and the two qualified pension plans from the North
Fork acquisition were merged into a single plan effective December 31, 2007. Other postretirement benefit plans including a legacy
plan and plans assumed in the Hibernia and North Fork acquisitions, all of which provide medical and life insurance benefits, were
merged into a single plan effective January 1, 2008.
The Companys pension plans and the other postretirement benefit plans were valued using a December 31 measurement date.
The Companys policy is to amortize prior service amounts on a straight-line basis over the average remaining years of service to full
eligibility for benefits of active plan participants.
The following table sets forth, on an aggregated basis, changes in the benefit obligations and plan assets, how the funded status is
recognized in the balance sheet, and the components of net periodic benefit cost.
Pension Benefits
Postretirement
Benefits
2008
2007
2008
2007
Change in benefit obligation:
Benefit obligation at beginning of year................................................................ $ 207,926 $ 220,741 $ 59,783 $ 84,210
Impact of adopting the measurement date provisions of SFAS 158 ....................
906
Service cost.......................................................................................................... 2,500
15,014
1,687
8,823
Interest cost.......................................................................................................... 11,941
12,034
3,605
4,678
Plan participant contributions ..............................................................................
635
532
Benefits paid ........................................................................................................ (11,340) (20,028) (4,468) (4,218)
Net actuarial loss (gain) ....................................................................................... 3,381
(16,285) 11,552
(10,714)
Amendments ........................................................................................................
363
(22,074)
Curtailments.........................................................................................................
(8,808)
(1,454)
Settlements........................................................................................................... (24,657)