MasterCard 2008 Annual Report Download - page 110

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except percent and per share data)
Company’s pension liability and accumulated other comprehensive income as of December 31, 2008.
Additionally, the Company has an unfunded non-qualified supplemental executive retirement plan (the “Non-
qualified Plan”) that provides certain key employees with supplemental retirement benefits in excess of limits
imposed on qualified plans by U.S. tax laws. The term “Pension Plans” includes both the Qualified Plan and the
Non-qualified Plan.
The Company uses a December 31 measurement date for its Pension Plans. The following table sets forth
the Pension Plans’ funded status, key assumptions and amounts recognized in the Company’s consolidated
balance sheets at December 31.
2008 2007
Change in benefit obligation
Benefit obligation at beginning of year ................................... $ 214,805 $ 201,370
Service cost ......................................................... 19,980 18,866
Interest cost ........................................................ 13,638 12,191
Voluntary plan participants’ contributions ................................. 989 83
Actuarial (gain)/loss .................................................. (18,990) 8,634
Benefits paid ........................................................ (13,387) (9,545)
Plan amendments .................................................... — (16,794)
Benefit obligation at end of year ........................................ $ 217,035 $ 214,805
Change in plan assets
Fair value of plan assets at beginning of year .............................. $ 195,966 $ 198,133
Actual return on plan assets ............................................ (59,347) 7,295
Employer contribution ................................................ 24,625 —
Voluntary plan participants’ contributions ................................. 989 83
Benefits paid ........................................................ (13,387) (9,545)
Fair value of plan assets at end of year ................................... $ 148,846 $ 195,966
Funded status
Fair value of plan assets at end of year ................................... $ 148,846 $ 195,966
Benefit obligation at end of year ........................................ 217,035 214,805
Funded status at end of year ............................................ $ (68,189) $ (18,839)
Amounts recognized on the consolidated balance sheets consist of:
Accrued expenses .................................................... $ (2,332) $ (4,288)
Other liabilities, long term ............................................. (65,857) (14,551)
$ (68,189) $ (18,839)
Amounts recognized in accumulated other comprehensive income consist of:
Net actuarial loss .................................................... $ 88,108 $ 32,624
Prior service credit ................................................... (14,938) (17,267)
$ 73,170 $ 15,357
Weighted-average assumptions used to determine end of year benefit
obligations
Discount rate ........................................................ 6.00% 6.00%
Rate of compensation increase—Qualified Plan/Non-Qualified Plan ............ 5.37%/5.00% 5.37%/5.00%
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