MasterCard 2013 Annual Report Download - page 83

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
79
The accumulated benefit obligation of the Pension Plans was $280 million and $267 million at December 31, 2013 and
2012, respectively.
The benefit obligations and plan assets of the Pension Plans that had benefit obligations in excess of plan assets were
as follows at December 31, 2013 and 2012:
2013 2012
(in millions)
Projected benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 281 $ 6
Accumulated benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280 5
Fair value of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275 —
The assumed health care cost trend rates at December 31 for the Postretirement Plans were as follows:
2013 2012
Health care cost trend rate assumed for next year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.50% 8.00%
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 2019
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 Plans
2013 2012 2011 2013 2012 2011
(in millions)
Service cost . . . . . . . . . . . . . . . . . . . . . . $ 10 $ 11 $ 14 $ 3 $ 2 $ 3
Interest cost . . . . . . . . . . . . . . . . . . . . . . 10 10 12 3 3 3
Expected return on plan assets . . . . . . . (13) (14) (19) — — —
Settlement (gain) loss . . . . . . . . . . . . . . 2 — (1) — — —
Amortization:
Actuarial loss (gain). . . . . . . . . . . . . 3 4 2 — — (1)
Prior service credit . . . . . . . . . . . . . . — (2) (2) — — —
Net periodic benefit cost . . . . . . . . . . . . $ 12 $ 9 $ 6 $ 6 $ 5 $ 5
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 Plans
2013 2012 2011 2013 2012 2011
(in millions)
Settlement gain (loss) . . . . . . . . . . . . . . $ (2) $ — $ 1 $ — $ — $ —
Current year actuarial loss (gain) . . . . . 7 4 15 (15) 6 15
Amortization of actuarial (loss) gain . . (3) (4) (2) — — 1
Amortization of prior service credit . . . — 2 2 — — —
Total recognized in other
comprehensive income (loss) . . . . . . . . $ 2 $ 2 $ 16 $ (15) $ 6 $ 16
Total recognized in net periodic benefit
cost and other comprehensive income . $ 14 $ 11 $ 22 $ (9) $ 11 $ 21