MasterCard 2011 Annual Report Download - page 109

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Company uses a December 31 measurement date for its Pension Plans and its Postretirement Plan
(collectively the “Plans”). The following table sets forth the Plans’ funded status, key assumptions and amounts
recognized in the Company’s consolidated balance sheet at December 31:
Pension Plans Postretirement Plan
2011 2010 2011 2010
(in millions)
Change in benefit obligation
Benefit obligation at beginning of year ..................................... $240 $235 $ 60 $ 60
Service cost .......................................................... 14 16 1 1
Interest cost .......................................................... 12 12 3 3
Plan participants’ contributions ........................................... — 1 1 1
Actuarial (gain) loss .................................................... (4) 19 15 (2)
Benefits paid .......................................................... (18) (26) (3) (3)
Curtailment ........................................................... — (17) — —
Projected benefit obligation at end of year .................................. $244 $240 $ 77 $ 60
Change in plan assets
Fair value of plan assets at beginning of year ................................ $236 $214 $— $—
Actual return on plan assets .............................................. — 27 — —
Employer contributions ................................................. 25 20 2 2
Plan participants’ contributions ........................................... — 1 1 1
Benefits paid .......................................................... (18) (26) (3) (3)
Fair value of plan assets at end of year ..................................... $243 $236 $— $—
Funded status
Fair value of plan assets at end of year ..................................... $243 $236 $— $—
Projected benefit obligation at end of year .................................. 244 240 77 60
Funded status at end of year .............................................. $ (1) $ (4) $ (77) $ (60)
Amounts recognized on the consolidated balance sheet consist of:
Prepaid expenses, long term .............................................. $ 3 $ 4 $— $—
Accrued expenses ...................................................... — (5) (4) (3)
Other liabilities, long term ............................................... (4) (3) (73) (57)
$ (1) $ (4) $ (77) $ (60)
Amounts recognized in accumulated other comprehensive income consist of:
Net actuarial loss (gain) ................................................. $ 50 $ 37 $ 1 $ (15)
Prior service credit ..................................................... (2) (4) — —
$ 48 $ 33 $ 1 $ (15)
Weighted-average assumptions used to determine end of year benefit obligations
Discount rate ......................................................... 4.25% 5.00% 4.25% 5.25%
Rate of compensation increase
Qualified Plan ..................................................... 5.37% 5.37% * *
Non-Qualified Plan ................................................ 5.00% 5.00% * *
Postretirement Plan ................................................ * * 5.37% 5.37%
* Not Applicable
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