MasterCard 2014 Annual Report Download - page 68

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
66
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, 2014 and 2013:
2014 2013
(in millions)
Projected benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 33 $ 281
Accumulated benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 280
Fair value of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 275
The assumed health care cost trend rates at December 31 for the Postretirement Plans were as follows:
2014 2013
Health care cost trend rate assumed for next year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.00% 7.50%
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
2014 2013 2012 2014 2013 2012
(in millions)
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . $ 11 $ 10 $ 11 $ 4 $ 3 $ 2
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . 12 10 10 3 3 3
Expected return on plan assets. . . . . . . . . . . (11) (13)(14) — — —
Settlement loss . . . . . . . . . . . . . . . . . . . . . . . 2 2————
Amortization of actuarial loss . . . . . . . . . . . 4 3 4 — — —
Amortization of prior service credit. . . . . . . — — (2) — — —
Net periodic benefit cost . . . . . . . . . . . . . . . $ 18 $ 12 $ 9 $ 7 $ 6 $ 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
2014 2013 2012 2014 2013 2012
(in millions)
Settlement loss . . . . . . . . . . . . . . . . . . . . . . . $ (2) $ (2) $ — $ — $ — $ —
Current year actuarial (gain) loss . . . . . . . . . (4) 7 4 6 (15) 6
Amortization of actuarial loss. . . . . . . . . . . . (4) (3)(4) — — —
Amortization of prior service credit . . . . . . . —— 2———
Total recognized in other comprehensive
income (loss). . . . . . . . . . . . . . . . . . . . . . . . . $ (10) $ 2 $ 2 $ 6 $ (15) $ 6
Total recognized in net periodic benefit cost
and other comprehensive income (loss) . . . . $ 8 $ 14 $ 11 $ 13 $ (9) $ 11