MasterCard 2009 Annual Report Download - page 109

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except percent and per share data)
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.
2009 2008
Change in benefit obligation
Benefit obligation at beginning of year ................................... $ 217,035 $ 214,805
Service cost ......................................................... 17,570 19,980
Interest cost ........................................................ 13,525 13,638
Voluntary plan participants’ contributions ................................. 331 989
Actuarial (gain)/loss .................................................. (704) (18,990)
Benefits paid ........................................................ (13,044) (13,387)
Plan amendments .................................................... 367 —
Projected benefit obligation at end of year ................................. $ 235,080 $ 217,035
Change in plan assets
Fair value of plan assets at beginning of year .............................. $ 148,846 $ 195,966
Actual return on plan assets ............................................ 44,084 (59,347)
Employer contribution ................................................ 33,396 24,625
Voluntary plan participants’ contributions ................................. 331 989
Benefits paid ........................................................ (13,044) (13,387)
Fair value of plan assets at end of year ................................... $ 213,613 $ 148,846
Funded status
Fair value of plan assets at end of year ................................... $ 213,613 $ 148,846
Projected benefit obligation at end of year ................................. 235,080 217,035
Funded status at end of year ............................................ $ (21,467) $ (68,189)
Amounts recognized on the consolidated balance sheets consist of:
Accrued expenses .................................................... $ — $ (2,332)
Other liabilities, long term ............................................. (21,467) (65,857)
$ (21,467) $ (68,189)
Amounts recognized in accumulated other comprehensive income consist of:
Net actuarial loss .................................................... $ 48,060 $ 88,108
Prior service credit ................................................... (12,285) (14,938)
$ 35,775 $ 73,170
Weighted-average assumptions used to determine end of year benefit
obligations
Discount rate ........................................................ 5.50% 6.00%
Rate of compensation increase—Qualified Plan/Non-Qualified Plan ............ 5.37%/5.00% 5.37%/5.00%
The accumulated benefit obligation of the Pension Plans was $215,847 and $196,536 at December 31, 2009
and 2008, respectively.
Both the Qualified Plan and Non-qualified Plan had a projected benefit obligation in excess of plan assets at
December 31, 2009 and 2008.
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