Mattel 2001 Annual Report Download - page 59

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Postretirement Benefits
Fisher-Price has an unfunded postretirement health insurance plan covering certain eligible domestic
employees hired prior to January 1, 1993. Details of the expense for the Fisher-Price plan recognized in the
consolidated statements of operations are as follows (in thousands):
For the Year
2001 2000 1999
Service cost ..................................................... $ 273 $ 201 $ 224
Interest cost ..................................................... 2,808 2,886 2,531
Curtailment loss .................................................. 76 — —
Recognized net actuarial loss ........................................ 303 202 —
Net postretirement benefit cost ....................................... $3,460 $3,289 $2,755
Amounts included in the consolidated balance sheets for this plan are as follows (in thousands):
As of Year End
2001 2000
Current retirees ....................................................... $34,758 $31,468
Fully eligible active employees ............................................ 3,621 3,980
Other active employees .................................................. 4,799 4,272
Accumulated postretirement benefit obligation ............................. 43,178 39,720
Unrecognized net actuarial loss ............................................ (12,974) (9,105)
Accrued postretirement benefit liability ...................................... $30,204 $30,615
Reconciliation of the liabilities of Fisher-Price’s postretirement health insurance plan is as follows (in
thousands):
As of Year End
2001 2000
Change in Accumulated Postretirement Benefit Obligation
Accumulated postretirement benefit obligation, beginning of year ............... $39,720 $37,163
Service cost ...................................................... 273 201
Interest cost ...................................................... 2,808 2,886
Actuarial loss ..................................................... 4,248 3,053
Benefits paid, net of participant contributions .............................. (3,871) (3,583)
Accumulated postretirement benefit obligation, end of year .................... $43,178 $39,720
The discount rates used in determining the accumulated postretirement benefit obligation were 7.0% for
2001, 7.5% for 2000 and 8.0% for 1999.
For all participants, the health care cost trend rate for expected claim costs was assumed to be as follows:
Year Pre-65 Post-65
2002 ....................................... 10.0% 12.0%
2003 ....................................... 9.0% 10.5%
2004 ....................................... 8.0% 9.0%
2005 ....................................... 7.0% 7.5%
2006 ....................................... 6.0% 6.0%
2007 and thereafter ............................ 5.5% 5.5%
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