MasterCard 2008 Annual Report Download - page 115
Download and view the complete annual report
Please find page 115 of the 2008 MasterCard annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105 -
106 -
107 -
108 -
109 -
110 -
111 -
112 -
113 -
114 -
115 -
116 -
117 -
118 -
119 -
120 -
121 -
122 -
123 -
124 -
125 -
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
 |
 |
MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except percent and per share data)
Components of net periodic benefit costs for the years ended December 31 for the Postretirement Plan are:
2008 2007 2006
Service cost ............................................... $1,951 $2,354 $3,166
Interest cost ............................................... 3,288 3,392 3,622
Amortization
Actuarial (gain) loss ..................................... (518) — 212
Prior service cost ....................................... — — 68
Transition obligation .................................... 214 214 580
Net periodic postretirement benefit cost ......................... $4,935 $5,960 $7,648
Other changes in plan assets and benefit obligations for the Postretirement Plan that were recognized in
other comprehensive income for the years ended December 31 were as follows:
2008 2007
Current year actuarial loss (gain) ...................................... $4,564 $(10,663)
Current year prior service credit ...................................... — (2,693)
Amortization of actuarial gain ....................................... 518 —
Amortization of transition obligation .................................. (214) (214)
Total recognized in other comprehensive income ......................... $4,868 $(13,570)
Total recognized in net periodic postretirement benefit cost and other
comprehensive income ............................................ $9,803 $ (7,610)
The estimated amounts that are expected to be amortized for the Postretirement Plan from accumulated
other comprehensive income into net periodic benefit cost in 2009 are as follows:
Transition obligation ........................................................... $214
Total ....................................................................... $214
The weighted-average assumptions for the Postretirement Plan which were used to determine net periodic
postretirement benefit cost for the years ended December 31 were:
2008 2007 2006
Discount rate .................................................... 6.25% 5.75% 5.50%
Rate of compensation increase ....................................... 5.37% 5.37% 5.37%
The assumed health care cost trend rates have a significant effect on the amounts reported for the
Postretirement Plan. A one-percentage point change in assumed health care cost trend rates for 2008 would have
the following effects:
1% increase 1% decrease
Effect on postretirement obligation ................................ $6,389 $(5,413)
Effect on total service and interest cost components .................. 589 (500)
105