Mattel 2008 Annual Report Download - page 80

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plans are based. The rates shown in the preceding table are indicative of the weighted average rates of all
Mattel’s defined benefit pension plans given the relative insignificance of the foreign plans to the consolidated
total.
The estimated net loss and prior service cost for the defined benefit pension plans that will be amortized
from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year is $7.6
million. The estimated net loss for the other defined benefit postretirement plans that will be amortized from
accumulated other comprehensive loss into net period benefit cost over the next fiscal year is $0.5 million.
Mattel used a measurement date of December 31, 2008 to determine pension and other postretirement
benefit measurements for the pension plans and other postretirement benefit plans. A summary of the changes in
benefit obligation and plans assets is as follows:
Defined Benefit
Pension Plans
Postretirement
Benefit Plans
2008 2007 2008 2007
(In thousands)
Change in Benefit Obligation
Benefit obligation, beginning of year ...................... $441,985 $ 462,386 $ 48,167 $ 50,046
Service cost .......................................... 11,989 12,305 100 99
Interest cost .......................................... 26,299 25,327 2,797 2,832
Participant contributions ................................ 56 61 — —
Impact of currency exchange rate changes .................. (20,541) 3,114 — —
Actuarial loss (gain) .................................... 44,286 (37,205) 3,044 (1,857)
Benefits paid ......................................... (25,371) (24,003) (3,123) (2,953)
Benefit obligation, end of year ........................... $478,703 $ 441,985 $ 50,985 $ 48,167
Change in Plan Assets
Plan assets at fair value, beginning of year .................. $330,363 $ 325,763 $ — $ —
Actual return on plan assets .............................. (71,323) 16,787 — —
Employer contributions ................................. 15,279 10,975 3,123 2,953
Participant contributions ................................ 56 61 — —
Impact of currency exchange rate changes .................. (15,065) 780 — —
Benefits paid ......................................... (25,371) (24,003) (3,123) (2,953)
Plan assets at fair value, end of year ....................... $233,939 $ 330,363 $ — $ —
Net Amount Recognized in Consolidated Balance Sheets
Funded status, end of year ............................... $(244,764) $(111,622) $(50,985) $(48,167)
Current accrued benefit liability .......................... (5,792) (6,844) (3,400) (3,900)
Noncurrent accrued benefit liability ....................... (238,972) (104,778) (47,585) (44,267)
Total accrued benefit liability ............................ $(244,764) $(111,622) $(50,985) $(48,167)
Amounts recognized in Accumulated Other Comprehensive
Loss (a)
Net loss .............................................. $237,227 $ 97,590 $ 13,254 $ 10,723
Prior service cost ...................................... 6,508 8,412 — —
$ 243,735 $ 106,002 $ 13,254 $ 10,723
(a) Amounts exclude related tax benefits of $96.3 million and $43.7 million for December 31, 2008 and 2007,
respectively, which are also included in accumulated other comprehensive loss.
The accumulated benefit obligation differs from the projected benefit obligation in that it assumes future
compensation levels will remain unchanged. Mattel’s accumulated benefit obligation for its defined benefit
76