MasterCard 2014 Annual Report Download - page 71

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
69
The following table summarizes expected benefit payments through 2024 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)
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27 $ 4 $ — $ 4
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 4 — 4
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 4 — 4
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 4 — 4
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 4 — 4
2020 - 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 24 1 23
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 $57 million, $51 million and $41 million for 2014, 2013
and 2012, respectively.
Note 12. Debt
Long-term debt at years ended December 31, 2014 and 2013 was as follows:
2014 2013
(in millions)
2.000% Notes due 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500 $ —
3.375% Notes due 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 —
1,500 —
Less: Unamortized discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) —
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,494 $ —
In March 2014, MasterCard Incorporated issued $500 million aggregate principal amount of 2.000% Notes due April 1, 2019 (the
“2019 Notes”) and $1 billion aggregate principal amount of 3.375% Notes due April 1, 2024 (the “2024 Notes”) (collectively the
“Notes”). The effective interest rates were 2.081% and 3.426% on the 2019 Notes and 2024 Notes, respectively. The net proceeds
from the issuance of the Notes, after deducting the underwriting discount and offering expenses, were $1,484 million. The Company
is not subject to any financial covenants under the Notes. Interest on the Notes is payable semi-annually on April 1 and October
1, commencing on October 1, 2014. The Notes may be redeemed in whole, or in part, at the Company’s option at any time for a
specified make-whole amount. The Notes are senior unsecured obligations and would rank equally with any future unsecured and
unsubordinated indebtedness.