MasterCard 2012 Annual Report Download - page 104

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
At December 31, 2012 and 2011, 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:
2012 2011
(in millions)
Projected benefit obligation .............................................. $ 6 $ 4
Accumulated benefit obligation ........................................... 5 4
Fair value of plan assets ................................................. — —
The assumed health care cost trend rates at December 31 for the Postretirement Plan were as follows:
2012 2011
Health care cost trend rate assumed for next year .............................. 8.00% 7.00%
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 .............................. 2019 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
2012 2011 2010 2012 2011 2010
(in millions)
Service cost ............................... $ 11 $ 14 $ 16 $ 1 $ 1 $ 1
Interest cost ............................... 10 12 12333
Expected return on plan assets ................ (14) (19) (17) — — —
Curtailment gain ........................... — — (6) — — —
Settlement gain ............................ — (1) ————
Amortization:
Actuarial loss (gain) ....................423— (1)(1)
Prior service credit ..................... (2) (2) (2) — — —
Net periodic benefit cost ..................... $ 9 $ 6 $ 6 $ 4 $ 3 $ 3
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
2012 2011 2010 2012 2011 2010
(in millions)
Curtailment gain ........................... $— $— $(10) $— $— $—
Settlement gain ............................ — 1 ————
Current year actuarial loss (gain) .............. 4 15 8 6 15 (2)
Amortization of actuarial (loss) gain ............ (4) (2) (3) — 1 1
Amortization of prior service credit ............222———
Total recognized in other comprehensive income
(loss) .................................. $ 2 $ 16 $ (3) $ 6 $ 16 $ (1)
Total recognized in net periodic benefit cost and
other comprehensive income ................ $ 11 $ 22 $ 3 $ 10 $ 19 $ 2
100