MasterCard 2009 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)
Components of net periodic pension costs were as follows for each of the years ended December 31:
2009 2008 2007
Service cost .......................................... $17,570 $ 19,980 $ 18,866
Interest cost .......................................... 13,525 13,638 12,191
Expected return on plan assets ............................ (12,486) (16,030) (16,366)
Settlement gain ........................................ (890) (773) —
Amortization:
Actuarial loss ..................................... 8,637 1,675 —
Prior service credit ................................. (2,286) (2,329) (229)
Net periodic pension cost ................................ $24,070 $ 16,161 $ 14,462
Other changes in plan assets and benefit obligations recognized in other comprehensive income for the years
ended December 31 were as follows:
2009 2008 2007
Settlement gain ........................................ $ 890 $ 773 $ —
Current year actuarial (gain) loss .......................... (32,302) 56,386 17,705
Amortization of actuarial loss ............................. (8,637) (1,675) —
Current year prior service cost (credit) ...................... 367 — (16,793)
Amortization of prior service credit ........................ 2,286 2,329 229
Total recognized in other comprehensive income (loss) ......... $(37,396) $57,813 $ 1,141
Total recognized in net periodic benefit cost and other
comprehensive income (loss) ........................... $(13,326) $73,974 $ 15,603
The estimated amounts that are expected to be amortized from accumulated other comprehensive income
into net periodic benefit cost in 2010 are as follows:
Actuarial loss .............................................................. $3,364
Prior service credit .......................................................... (2,107)
Total ..................................................................... $1,257
Weighted-average assumptions used to determine net periodic pension cost were as follows for the years
ended December 31:
2009 2008 2007
Discount rate ................................... 6.00% 6.00% 5.75%
Expected return on plan assets ...................... 8.00% 8.00% 8.50%
Rate of compensation increase—Qualified Plan/
Non-Qualified Plan ............................ 5.37%/5.00% 5.37%/5.00% 5.37%/5.00%
For the Qualified Plan, the Company utilized an actuarial standard practice referred to as a building block
method to determine the assumption for the expected weighted average return on plan assets. This method
includes the following components: (1) compiling historical return data for both the equity and fixed income
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