Mattel 2014 Annual Report Download - page 83

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Defined Benefit Pension and Postretirement Benefit Plans
Mattel provides defined benefit pension plans for eligible domestic employees, which are intended to
comply with the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”). Some of
Mattel’s foreign subsidiaries have defined benefit pension plans covering substantially all of their eligible
employees. Mattel funds these plans in accordance with the terms of the plans and local statutory requirements,
which differ for each of the countries in which the subsidiaries are located. Mattel also has unfunded
postretirement health insurance plans covering certain eligible domestic employees.
A summary of the components of Mattel’s net periodic benefit cost and other changes in plan assets and
benefit obligations recognized in other comprehensive income for the years ended December 31 is as follows:
Defined Benefit Pension Plans Postretirement Benefit Plans
2014 2013 2012 2014 2013 2012
(In thousands)
Net periodic benefit cost:
Service cost .......................... $ 7,515 $ 12,982 $ 13,285 $ 67 $ 82 $ 79
Interest cost .......................... 27,708 25,580 29,530 1,377 1,585 1,411
Expected return on plan assets ........... (31,833) (29,786) (31,270) — — —
Amortization of prior service credit ....... (1,037) (1,057) (502) — — —
Recognized actuarial loss ............... 15,771 21,193 19,020 17 578 117
Settlement loss ....................... — 1,835 3,534———
Net periodic benefit cost ................ $18,124 $ 30,747 $ 33,597 $ 1,461 $ 2,245 $ 1,607
Other changes in plan assets and benefit
obligations recognized in other
comprehensive income:
Net actuarial loss (gain) ................ $48,502 $(95,744) $ 27,144 $ (2,205) $ 3,470 $ 4,755
Prior service cost (credit) ............... 20 — (11,789) — — —
Amortization of prior service credit ....... 1,037 1,057 501———
Total recognized in other comprehensive
income (a) ......................... $49,559 $(94,687) $ 15,856 $ (2,205) $ 3,470 $ 4,755
Total recognized in net periodic benefit cost
and other comprehensive income ....... $67,683 $(63,940) $ 49,453 $ (744) $ 5,715 $ 6,362
(a) Amounts exclude related tax (benefit) expense of $(17.8) million, $32.5 million, and $(2.3) million, during
2014, 2013, and 2012, respectively, which are also included in other comprehensive income.
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