MasterCard 2011 Annual Report Download - page 111

Download and view the complete annual report

Please find page 111 of the 2011 MasterCard annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 156

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156

MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Other changes in plan assets and benefit obligations recognized in other comprehensive income for the years
ended December 31 were as follows:
Pension Plans Postretirement Plan
2011 2010 2009 2011 2010 2009
(in millions)
Curtailment gain ........................... $— $(10) $— $— $— $—
Settlement gain ............................ 1 — 1 — — —
Current year actuarial loss (gain) .............. 15 8 (32) 15 (2) (8)
Amortization of actuarial (loss) gain ............ (2) (3) (8) 1 1 —
Amortization of prior service credit ............222———
Total recognized in other comprehensive income
(loss) .................................. $ 16 $ (3) $(37) $ 16 $ (1) $ (8)
Total recognized in net periodic benefit cost and
other comprehensive income (loss) ........... $ 22 $ 3 $(13) $ 19 $ 2 $ 2
The estimated amounts that are expected to be amortized from accumulated other comprehensive income
into net periodic benefit cost in 2012 are as follows:
Pension
Plans
Postretirement
Plan
(in millions)
Actuarial loss .................................................. $4 $—
Prior service credit .............................................. (2) —
Total ......................................................... $2 $—
Weighted-average assumptions used to determine net periodic benefit cost were as follows for the years
ended December 31:
Pension Plans Postretirement Plan
2011 2010 2009 2011 2010 2009
Discount rate ........................... 5.00% 5.50% 6.00% 5.25% 5.75% 6.00%
Expected return on plan assets ............. 8.00% 8.00% 8.00% * * *
Rate of compensation increase
Qualified Plan .......................... 5.37% 5.37% 5.37% * * *
Non-Qualified Plan ...................... 5.00% 5.00% 5.00% * * *
Postretirement Plan ......................***5.37% 5.37% 5.37%
* Not Applicable
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 2011 would have
the following effects:
1% increase 1% decrease
(in millions)
Effect on postretirement obligation ................................ $8 $(7)
The effect on total service and interest cost components would be less than $1 million.
107