Capital One 2010 Annual Report Download - page 172

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED STATEMENTS
152
Defined Benefit Pension and Other Postretirement Benefit Plans
We sponsor 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. Our 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, which were merged into a single
plan effective January 1, 2008.
Our pension plans and the other postretirement benefit plans are valued using a December 31 measurement date. Our 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:
Year Ended December 31,
2010 2009 2010 2009
(Dollars in millions) Pension Benefits Postretirement Benefits
Change in benefit obligation:
Benefit obligation at beginning of year ..........................
.
$ 190 $ 190 $ 67 $ 74
Service cost ..................................................
.
2 2 1 2
Interest cost ..................................................
.
10 11 3 4
Benefits paid .................................................
.
(19) (21) (4) (4)
N
et actuarial loss (gain) .......................................
.
10 8 (1) (9)
Benefit obligation at end of year ................................
.
$ 193 $ 190 $ 66 $ 67
Change in plan assets:
Fair value of plan assets at beginning of year ....................
.
$ 213 $ 193 $ 7 $ 7
Actual return on plan assets ....................................
.
26 40 1 0
Employer contributions ........................................
.
1 1 4 4
Benefits paid .................................................
.
(19) (21) (4) (4)
Fair value of plan assets at end of year ..........................
.
$ 221 $ 213 $ 8 $ 7
Funded status at end of year ....................................
.
$ 28 $ 23 $ (58) $ (60)
Balance Sheet Presentation:
Other assets ..................................................
.
$ 39 $ 34 $ 0 $ 0
Other liabilities ...............................................
.
(11) (11) (58) (60)
N
et amount recognized at end of year ...........................
.
$ 28 $ 23 $ (58) $ (60)
Accumulated benefit obligation at end of year ................
.
$ 193 $ 190 n/a n/a
Components of net periodic benefit cost:
Service cost ..................................................
.
$ 2 $ 2 $ 1 $ 2
Interest cost ..................................................
.
10 11 3 4
Expected return on plan assets .................................
.
(15) (14) (1) 0
Amortization of transition obligation, prior service credit, and net
actuarial loss ...............................................
.
1 1 (3) (8)
N
et periodic benefit cost .......................................
.
$ (2) $ 0 $ 0 $ (2)
Changes recognized in other comprehensive income, pretax:
N
et actuarial gain .............................................
.
$ 1 $ 18 $ 1 $ 9
Reclassification adjustments for amounts recognized in net periodic
benefit cost .................................................
.
1 1 (3) (8)
Total recognized in other comprehensive income ................
.
$ 2 $ 19 $ (2) $ 1