MasterCard 2009 Annual Report Download - page 114
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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except percent and per share data)
Components of net periodic benefit costs recorded in general and administrative expenses, for each of the
years ended December 31 for the Postretirement Plan were as follows:
2009 2008 2007
Service cost ............................................... $1,734 $1,951 $2,354
Interest cost ............................................... 3,625 3,288 3,392
Amortization:
Actuarial gain .......................................... — (518) —
Transition obligation .................................... 214 214 214
Enhanced termination benefits ................................. 3,944 — —
Net periodic postretirement benefit cost ......................... $9,517 $4,935 $5,960
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:
2009 2008 2007
Current year actuarial (gain) loss ............................ $(7,634) $4,564 $(10,663)
Current year prior service credit ............................. — — (2,693)
Amortization of actuarial gain ............................... — 518 —
Amortization of transition obligation ......................... (214) (214) (214)
Total recognized in other comprehensive income (loss) ........... $(7,848) $4,868 $(13,570)
Total recognized in net periodic benefit cost and other
comprehensive income (loss) ............................. $1,669 $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 2010 are as follows:
Actuarial gain ............................................................... $(657)
Transition obligation ......................................................... 214
Total ...................................................................... $(443)
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:
2009 2008 2007
Discount rate .................................................... 6.00% 6.25% 5.75%
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 2009 would have
the following effects:
1% increase 1% decrease
Effect on postretirement obligation ................................ $6,095 $(5,174)
Effect on total service and interest cost components .................. 494 (421)
104