MasterCard 2011 Annual Report Download - page 110

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The accumulated benefit obligation of the Pension Plans was $243 million and $239 million at
December 31, 2011 and 2010, respectively.
At December 31, 2011 and 2010, the Qualified Plan had plan assets in excess of benefit obligations; the
Non-qualified Plan had benefit obligations in excess of plan assets. The benefit obligations and plan assets of the
Non-qualified Plan were as follows at December 31:
2011 2010
(in millions)
Projected benefit obligation .............................................. $ 4 $ 9
Accumulated benefit obligation ........................................... 4 8
Fair value of plan assets ................................................. — —
The assumed health care cost trend rates at December 31 for the Postretirement Plan were as follows:
2011 2010
Health care cost trend rate assumed for next year .............................. 7.00% 7.50%
Rate to which the cost trend rate is expected to decline (the ultimate trend rate) ..... 5.00% 5.00%
Year that the rate reaches the ultimate trend rate .............................. 2016 2016
Components of net periodic benefit cost recorded in general and administrative expenses were as follows for
the Plans for each of the years ended December 31:
Pension Plans Postretirement Plan
2011 2010 2009 2011 2010 2009
(in millions)
Service cost ............................... $ 14 $ 16 $ 18 $ 1 $ 1 $ 2
Interest cost ............................... 12 12 14334
Expected return on plan assets ................ (19) (17) (13) — — —
Curtailment gain ........................... — (6) ————
Settlement gain ............................ (1) — (1) — — —
Amortization:
Actuarial loss (gain) ....................238(1)(1)—
Prior service credit ..................... (2) (2) (2) — — —
Enhanced termination benefits ................ ————— 4
Net periodic benefit cost ..................... $ 6 $ 6 $ 24 $ 3 $ 3 $ 10
106