MasterCard 2009 Annual Report Download - page 108

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except percent and per share data)
Note 11. Accrued Expenses
Accrued expenses consisted of the following at December 31:
2009 2008
Customer and merchant incentives ....................... $ 597,742 $ 526,722
Personnel costs ...................................... 367,321 296,497
Advertising ......................................... 130,582 89,567
Income taxes ........................................ 31,597 20,685
Other .............................................. 97,749 98,590
Total accrued expenses ................................ $1,224,991 $1,032,061
Note 12. Pension, Savings Plan and Other Benefits
The Company maintains a non-contributory, qualified, defined benefit pension plan (the “Qualified Plan”)
with a cash balance feature covering substantially all of its U.S. employees hired before July 1, 2007.
In 2008, the Qualified Plan experienced a steep decline in the fair value of plan assets which resulted in
significant increases in the Company’s pension liability and contributed to other comprehensive loss as of
December 31, 2008 and increased net periodic pension cost in 2009. During 2009, Company contributions and
favorable investment returns increased the Qualified Plan’s fair value of assets and resulted in significant
decreases in the Company’s pension liability and contributed to other comprehensive income as of December 31,
2009.
The Company also 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 Non-qualified Plan had settlement gains in 2009 and 2008
resulting from payments to participants. The term “Pension Plans” includes both the Qualified Plan and the
Non-qualified Plan.
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