MasterCard 2013 Annual Report Download - page 82

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
78
The Company uses a December 31 measurement date for its Pension Plans and its Postretirement Plans (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 Plans
2013 2012 2013 2012
(in millions)
Change in benefit obligation
Benefit obligation at beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . $ 268 $ 244 $ 93 $ 87
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 11 3 2
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 10 3 3
Plan participants' contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 1 1
Actuarial (gain) loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 14 (16) 6
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13) (11) (4) (6)
Benefit obligation at end of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 281 $ 268 $ 80 $ 93
Change in plan assets
Fair value of plan assets at beginning of year. . . . . . . . . . . . . . . . . . . . $ 267 $ 243 $ — $ —
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 25 — —
Employer contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 10 3 5
Plan participants' contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 1 1
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13) (11) (4) (6)
Fair value of plan assets at end of year. . . . . . . . . . . . . . . . . . . . . . . . . $ 275 $ 267 $ — $ —
Funded status
Fair value of plan assets at end of year. . . . . . . . . . . . . . . . . . . . . . . . . $ 275 $ 267 $ — $ —
Benefit obligation at end of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281 268 80 93
Funded status at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (6) $ (1) $ (80) $ (93)
Amounts recognized on the consolidated balance sheet
consist of:
Prepaid expenses, long term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ 5 $ — $ —
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) (3) (4) (4)
Other liabilities, long term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) (3) (76) (89)
$ (6) $ (1) $ (80) $ (93)
Amounts recognized in accumulated other comprehensive
income consist of:
Net actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 52 $ 50 $ (8) $ 7
Prior service credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ————
$ 52 $ 50 $ (8) $ 7
Weighted-average assumptions used to determine end of year
benefit obligations
Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.46% 3.50% 4.75% 3.75%
Rate of compensation increase
Qualified Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . * * * *
Non-Qualified Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.00% 5.00% * *
International pension plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.82% * * *
Postretirement Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . * * 3.00% 5.37%
* Not Applicable