MasterCard 2013 Annual Report Download - page 86

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
82
The following table summarizes expected benefit payments through 2023 for the Pension Plans and the Postretirement
Plans, including those payments expected to be paid from the Company's general assets. Since the majority of the
benefit payments for the Pension Plans are made in the form of lump-sum distributions, actual benefit payments may
differ from expected benefit payments.
Postretirement Plans
Pension Plans Benefit
Payments
Expected
Subsidy
Receipts Net Benefit
Payments
(in millions)
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24 $ 4 $ — $ 4
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 4 — 4
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 4 — 4
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 4 — 4
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 5 — 5
2019 - 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 25 1 24
Savings Plans
Substantially all of the Company's U.S. employees are eligible to participate in a defined contribution savings plan (the
“Savings Plan”) sponsored by the Company. The Savings Plan allows employees to contribute a portion of their base
compensation on a pre-tax and after-tax basis in accordance with specified guidelines. The Company matches a
percentage of employees' contributions up to certain limits. In addition, the Company has several defined contribution
plans outside of the United States. The Company's contribution expense related to all of its defined contribution plans
was $51 million, $41 million and $35 million for 2013, 2012 and 2011, respectively.
Severance Plans
The Company provides limited postemployment benefits to eligible former employees, primarily severance under
formal severance plans. The Company accounts for severance expense by accruing the expected cost of the severance
benefits expected to be provided after employment over their relevant service periods. The Company updates the
assumptions in determining the severance accrual by evaluating the actual severance activity and long-term trends
underlying the assumptions. Total severance expense of $24 million, $29 million and $23 million in 2013, 2012 and
2011, respectively, was included in general and administrative expenses in the accompanying consolidated statement
of operations.
Note 12. Debt
On November 16, 2013, the Company extended its committed unsecured revolving credit facility, dated as of November
16, 2012 (the “Credit Facility”) for an additional year. The expiration date of the Credit Facility is November 15, 2018.
The available funding under the Credit Facility will remain at $3 billion through November 16, 2017 and then decrease
to $2.95 billion during the final year of the Credit Facility agreement. Other terms and conditions of the Credit Facility
remain unchanged. The option to request that each lender under the Credit Facility extend its commitment was provided
pursuant to the terms of the Credit Facility agreement. Borrowings under the Credit Facility are available to provide
liquidity for general corporate purposes, including providing liquidity in the event of one or more settlement failures
by the Company's customers. In addition, for business continuity planning and related purposes, the Company may
borrow and repay amounts under the Credit Facility from time to time. The facility fee and borrowing cost under the
Credit Facility are contingent upon the Company's credit rating. At December 31, 2013, the applicable facility fee was
8 basis points on the average daily commitment (whether or not utilized). In addition to the facility fee, interest on
borrowings under the Credit Facility would be charged at the London Interbank Offered Rate (LIBOR) plus an applicable