Mattel 2011 Annual Report Download - page 83

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 actuarial loss and prior service cost for the domestic defined benefit pension plans that
will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal
year is $13.2 million. The estimated net actuarial loss for the domestic postretirement benefit plans that will be
amortized from accumulated other comprehensive loss into net period benefit cost over the next fiscal year is
$0.1 million.
Mattel used a measurement date of December 31, 2011 for its defined benefit pension plans and
postretirement benefit plans. A summary of the changes in benefit obligation and plans assets is as follows:
Defined Benefit
Pension Plans
Postretirement
Benefit Plans
2011 2010 2011 2010
(In thousands)
Change in Benefit Obligation:
Benefit obligation, beginning of year ...................... $545,927 $ 513,307 $ 35,081 $ 46,472
Service cost .......................................... 13,610 12,441 73 76
Interest cost .......................................... 28,433 27,934 1,576 1,820
Participant contributions ................................ — 31 — —
Impact of currency exchange rate changes .................. (1,785) (3,518) — —
Actuarial loss (gain) .................................... 61,052 20,797 (1,297) (9,460)
Benefits paid ......................................... (37,221) (25,065) (3,099) (3,827)
Benefit obligation, end of year ........................... $610,016 $ 545,927 $ 32,334 $ 35,081
Change in Plan Assets:
Plan assets at fair value, beginning of year .................. $316,795 $ 296,828 $ — $ —
Actual return on plan assets .............................. 5,182 31,831 — —
Employer contributions ................................. 53,859 15,162 3,099 3,827
Participant contributions ................................ — 31 — —
Impact of currency exchange rate changes .................. (534) (1,992) — —
Benefits paid ......................................... (37,221) (25,065) (3,099) (3,827)
Plan assets at fair value, end of year ....................... $338,081 $ 316,795 $ — $ —
Net Amount Recognized in Consolidated Balance Sheets:
Funded status, end of year ............................... $(271,935) $(229,132) $(32,334) $(35,081)
Current accrued benefit liability .......................... (23,215) (4,418) (2,700) (2,600)
Noncurrent accrued benefit liability ....................... (248,720) (224,714) (29,634) (32,481)
Total accrued benefit liability ............................ $(271,935) $(229,132) $(32,334) $(35,081)
Amounts recognized in Accumulated Other Comprehensive
Loss (a):
Net actuarial loss (gain) ................................. $273,691 $ 211,004 $ (1,106) $ 143
Prior service cost ...................................... 138 1,912 — —
$ 273,829 $ 212,916 $ (1,106) $ 143
(a) Amounts exclude related tax benefits of $100.4 million and $78.8 million for December 31, 2011 and 2010,
respectively, which are also included in accumulated other comprehensive loss.
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