MasterCard 2014 Annual Report Download - page 67

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
65
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
2014 2013 2014 2013
(in millions, except percentages)
Change in benefit obligation
Benefit obligation at beginning of year . . . . . . . . . . . . . . . . . . . . . $ 281 $ 268 $ 80 $ 93
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 10 4 3
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 10 3 3
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 1 1
Actuarial (gain) loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) 6 7 (16)
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18) (13) (5) (4)
Transfers in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 — 4 —
Benefit obligation at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . 291 281 94 80
Change in plan assets
Fair value of plan assets at beginning of year . . . . . . . . . . . . . . . . 275 267 — —
Actual return on plan assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 11 — —
Employer contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 10 4 3
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 1 1
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18) (13) (5) (4)
Transfers in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4———
Fair value of plan assets at end of year . . . . . . . . . . . . . . . . . . . . . 283 275 — —
Funded status at end of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . $(8) $ (6) $ (94) $ (80)
Amounts recognized on the consolidated balance sheet
consist of:
Prepaid expenses, long-term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3 $ — $ — $ —
Accrued expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (2) (4) (4)
Other liabilities, long-term. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11) (4) (90) (76)
$ (8) $ (6) $ (94) $ (80)
Amounts recognized in accumulated other comprehensive
income consist of:
Net actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 42 $ 52 $ (1) $ (8)
Weighted-average assumptions used to determine end of
year benefit obligations
Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.40% 4.45% 4.00% 4.75%
Rate of compensation increase
Qualified Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . * * * *
Non-qualified Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.00% 5.00% * *
International pension plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.90% 2.80% * *
Postretirement Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . * * 3.00% 3.00%
* Not applicable
The accumulated benefit obligation of the Pension Plans was $290 million and $280 million at December 31, 2014 and 2013,
respectively.