Capital One 2010 Annual Report Download - page 173

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CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED STATEMENTS
153
Pre-tax amounts recognized in accumulated other comprehensive income, which have not yet been recognized as a component of net
periodic benefit cost, consist of:
December 31,
2010 2009 2010 2009
(Dollars in millions) Pension Benefits Postretirement Benefits
Transition obligation ..........................................
.
$ 0 $ 0 $ 0 $ 0
Prior service credit ............................................
.
0 0 11 15
Net actuarial gain (loss) .......................................
.
(58) (60) 2 0
Accumulated other comprehensive income ......................
.
$ (58) $ (60) $ 13 $ 15
Pre-tax amounts in accumulated other comprehensive income that are expected to be recognized as decreases (increases) of net
periodic benefit cost for the year ending December 31, 2010, consist of:
(Dollars in millions)
Pension
Benefits
Postretirement
Benefits
Prior service cost ............................................................................ $ 0 $ 3
Net actuarial loss gain ....................................................................... (1) 0
Total ....................................................................................... $ (1) $ 3
The following table sets forth the aggregate benefit obligation and aggregate fair value of plan assets for plans with benefit obligations
in excess of plan assets. Based on the status of our pension plans, the information presented also represents the aggregate pension
accumulated benefit obligation and aggregate fair value of plan assets for pension plans with accumulated benefit obligations in excess
of plan assets.
December 31,
2010 2009 2010 2009
(Dollars in millions) Pension Benefits Postretirement Benefits
Benefit obligation .............................................
.
$ 193 $ 190 $ 66 $ 67
Fair value of plan assets .......................................
.
221 213 8 7
The following table presents weighted-average assumptions used in the accounting for the plans:
December 31,
2010 2009 2010 2009
Pension Benefits Postretirement Benefits
Assumptions for benefit obligations at measurement date:
Discount rate .................................................
.
5.2% 5.7% 5.2% 5.7%
Rate of compensation increase .................................
.
n/a n/a n/a n/a
Assumptions for periodic benefit cost for the year ended:
Discount rate .................................................
.
5.7% 6.3% 5.7% 6.3%
Expected long-term rate of return on plan assets (1) ...............
.
7.5% 7.5% 7.5% 7.5%
Rate of compensation increase .................................
.
n/a n/a n/a n/a
Assumptions for year-end valuations:
Health care cost trend rate assumed for next year ................
.
n/a n/a 8.7% 9.0%
Rate to which the cost trend rate is assumed to decline (the ultimate
trend rate) ..................................................
.
n/a n/a 4.5% 4.5%
Year the rate reaches the ultimate trend rate .....................
.
n/a n/a 2028 2028
________________________
(1) Our expected long-term rate of return on plan assets is defined as 20 years.