Mattel 2008 Annual Report Download - page 81
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Please find page 81 of the 2008 Mattel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
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pension plans as of December 31, 2008 and 2007 totaled $446.2 million and $415.8 million, respectively. Mattel
does not have any defined benefit pension plans for which the plan assets exceed the accumulated benefit
obligation.
The assumptions used in determining the projected and accumulated benefit obligations of Mattel’s
domestic defined benefit pension and postretirement benefit plans are as follows:
December 31,
2008 2007
Defined benefit pension plans:
Discount rate .................................................................... 5.4% 6.2%
Weighted average rate of future compensation increases .................................. 3.8% 3.8%
Postretirement benefit plans:
Discount rate .................................................................... 5.4% 6.2%
Annual increase in Medicare Part B premium .......................................... 6.0% 6.0%
Health care cost trend rate:
Pre-65 ..................................................................... 7.0% 8.0%
Post-65 ..................................................................... 9.0% 10.0%
Ultimate cost trend rate (pre- and post-65) ............................................. 5.0% 5.0%
Year that the rate reaches the ultimate cost trend rate:
Pre-65 ..................................................................... 2011 2011
Post-65 ..................................................................... 2013 2013
The estimated future benefit payments for Mattel’s defined benefit pension and postretirement benefit plans
are as follows:
Defined Benefit
Pension Plans
Postretirement
Benefit Plans
Before Subsidy
Benefit of
Medicare Part D
Subsidy
(In thousands)
2009 ................................................ $ 21,873 $ 3,700 $ (300)
2010 ................................................ 20,949 3,800 (300)
2011 ................................................ 21,705 3,900 (300)
2012 ................................................ 22,681 3,900 (300)
2013 ................................................ 23,203 3,900 (300)
2014 - 2018 ........................................... 132,035 18,500 (1,500)
Mattel expects to make cash contributions totaling approximately $25 million to its defined benefit pension
and postretirement benefit plans in 2009, including approximately $6 million for benefit payments for its
unfunded plans.
Mattel’s domestic defined benefit pension plan assets are comprised of the following:
December 31,
2008 2007
Equity securities .................................................................. 62% 71%
Debt securities ................................................................... 37 28
Cash ........................................................................... 1 1
100% 100%
Mattel periodically commissions a study of the plans’ assets and liabilities to determine an asset allocation
that would best match cash flows from the plans’ assets to expected benefit payments. The Administrative
Committee, which includes Mattel’s Treasurer, monitors the returns earned by the plans’ assets and reallocates
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