Mattel 2002 Annual Report Download - page 69

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Reconciliation of the funded status of the Fisher-Price Pension Plan to the related prepaid asset (liability)
included in the consolidated balance sheets is as follows (in thousands):
As of Year End
2002 2001
Funded status of the plan ..................................................... $(19,351) $37,699
Unrecognized net loss ....................................................... 84,917 22,764
Unrecognized prior service cost ............................................... 467 863
Additional minimum liability ................................................. (77,624) —
(Accrued) prepaid pension cost ................................................ $(11,591) $61,326
A charge of $48.6 million, net of tax, was recorded in other comprehensive income during 2002 related to
the additional minimum liability of the Fisher-Price Pension Plan.
Reconciliation of the assets and liabilities of the Fisher-Price Pension Plan are as follows (in thousands):
As of Year End
2002 2001
Change in Plan Assets
Plan assets at fair value, beginning of year .................................. $232,916 $233,150
Actual return on plan assets ............................................. (27,846) 9,631
Benefits paid ......................................................... (8,870) (9,865)
Plan assets at fair value, end of year ....................................... $196,200 $232,916
Change in Projected Benefit Obligation
Projected benefit obligation, beginning of year .............................. $195,217 $175,039
Servicecost .......................................................... 3,217 2,897
Interest cost .......................................................... 13,438 12,857
Planamendments...................................................... — 1,932
Actuarial loss ......................................................... 12,549 12,357
Benefits paid ......................................................... (8,870) (9,865)
Projected benefit obligation, end of year ................................... $215,551 $195,217
For the Year
2002 2001 2000
Assumptions
Weighted average discount rate ........................................... 6.5% 7.0% 7.5%
Rate of future compensation increases ..................................... 4.0% 4.0% 4.0%
Long-term rate of return on plan assets ..................................... 8.0% 10.0% 11.0%
Other Retirement Plans
Domestic employees are eligible to participate in 401(k) savings plans sponsored by Mattel or its
subsidiaries, which are defined contribution plans satisfying ERISA requirements. Mattel makes company
contributions in cash and allows participants to allocate both individual and company contributions to a balanced
variety of investment funds. Furthermore, Mattel’s plans limit a participant’s allocation to the Mattel Stock Fund,
which is fully invested in Mattel common stock, to 50% of the participant’s account balance.
Mattel also maintains unfunded supplemental executive retirement plans that are nonqualified defined
benefit plans covering certain key executives. For 2002, 2001 and 2000, the accumulated and vested benefit
obligations and related expense of these plans were not significant.
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