Mattel 2010 Annual Report Download - page 78

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A summary of retirement plan expense is as follows:
For the Year
2010 2009 2008
(In millions)
Defined contribution retirement plans ......................................... $33.3 $33.4 $35.8
Defined benefit pension plans ............................................... 31.7 27.7 19.6
Deferred compensation and excess benefit plans ................................. 4.6 6.0 (6.7)
Postretirement benefit plans ................................................. 1.9 2.6 3.4
$71.5 $69.7 $52.1
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 are as follows:
Defined Benefit Pension Plans Postretirement Benefit Plans
2010 2009 2008 2010 2009 2008
(In thousands)
Net periodic benefit cost:
Service cost ............................. $12,441 $ 11,153 $ 11,989 $ 76 $ 82 $ 100
Interest cost ............................. 27,934 26,606 26,299 1,820 2,263 2,797
Expected return on plan assets ............... (24,581) (24,330) (26,396) — — —
Amortization of prior service cost ............ 2,453 1,815 1,865 — — —
Recognized actuarial loss ................... 13,499 12,502 5,828 52 237 513
Net periodic benefit cost ................... $31,746 $ 27,746 $ 19,585 $ 1,948 $ 2,582 $3,410
Other changes in plan assets and benefit
obligations recognized in other
comprehensive income:
Net loss (gain) ........................... $ 482 $(26,705) $139,637 $(9,502) $(3,609) $2,531
Prior service (credit) cost ................... (675) 347 (39) — — —
Amortization of prior service cost ............ (2,453) (1,815) (1,865) — — —
Total recognized in other comprehensive
income (a) ............................ $ (2,646) $(28,173) $137,733 $(9,502) $(3,609) $2,531
Total recognized in net periodic benefit cost and
other comprehensive income .............. $29,100 (427) $157,318 $(7,554) $(1,027) $5,941
(a) Amounts exclude related tax expense (benefit) of $4.4 million, $13.1 million, and $(52.6) million during
2010, 2009, and 2008, respectively, which are also included in other comprehensive income.
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