MasterCard 2010 Annual Report Download - page 114
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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—continued
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 sheet at December 31:
2010 2009
(in millions)
Change in benefit obligation
Benefit obligation at beginning of year $ 235 $ 217
Service cost 16 18
Interest cost 12 14
Voluntary plan participants’ contributions 1 —
Actuarial (gain)/loss 19 (1)
Benefits paid (26) (13)
Curtailment (17) —
Projected benefit obligation at end of year $ 240 $ 235
Change in plan assets
Fair value of plan assets at beginning of year $ 214 $ 149
Actual return on plan assets 27 44
Employer contribution 20 34
Voluntary plan participants’ contributions 1 —
Benefits paid (26) (13)
Fair value of plan assets at end of year $ 236 $ 214
Funded status
Fair value of plan assets at end of year $ 236 $ 214
Projected benefit obligation at end of year 240 235
Funded status at end of year $ (4) $ (21)
Amounts recognized on the consolidated balance sheet consist of:
Prepaid expenses, long term $ 4 $ —
Accrued expenses (5) —
Other liabilities, long term (3) (21)
$ (4) $ (21)
Amounts recognized in accumulated other comprehensive income consist of:
Net actuarial loss $ 37 $ 48
Prior service credit (4) (12)
$33$36
Weighted-average assumptions used to determine end of year benefit
obligations
Discount rate 5.00% 5.50%
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 $239 million and $216 million at
December 31, 2010 and 2009, respectively.
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