Visa 2010 Annual Report Download - page 104
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Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2010
(in millions, except as noted)
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Pension Benefits
Other
Postretirement Benefits
2010 2009 2010 2009
(in millions)
Current year actuarial (gain)loss $ (20) $ 107 $ (5) $ (5)
Amortization of actuarial (loss)gain (16) (17) 1 —
Current year prior service (credit)cost (12) — — —
Amortization of prior service credit 9 8 3 3
Total recognized in other comprehensive income $ (39) $ 98 $ (1) $ (2)
Total recognized in net periodic benefit cost and other comprehensive income $ 3 $ 159 $ (4) $ (3)
Weighted Average Actuarial Assumptions:
Fiscal
2010 2009 2008
Discount rate for benefit obligation(1)
Pension 5.25% 5.60% 6.75%
Postretirement 3.45% 4.43% 6.24%
Discount rate for net periodic benefit cost
Pension 5.63% 6.75% 6.00%
Postretirement 4.43% 6.24% 5.99%
Expected long-term rate of return on plan assets(2) 7.50% 7.50% 7.50%
Rate of increase in compensation levels for:
Benefit obligation 4.50% 5.50% 5.50%
Net periodic benefit cost(3) 5.50% 5.50% 5.50%
(1) Based on a "bond duration matching" methodology, which reflects the matching of projected plan liability cash flows to an average of high-quality
corporate bond yield curves whose duration matches the projected cash flows.
(2) Primarily based on the targeted allocation, and evaluated for reasonableness by considering such factors as: (i) actual return on plan assets; (ii) historical
rates of return on various asset classes in the portfolio; (iii) projections of returns on various asset classes; and (iv) current and prospective capital
market conditions and economic forecasts.
(3) For the net periodic benefit cost for fiscal 2010, rate of increase in compensation is 0% for fiscal 2010 and 5.5% for fiscal 2011 and thereafter.
The assumed annual rate of future increases in health benefits for the other postretirement benefits plan is 8% for fiscal 2011. The rate is assumed to
decrease to 5% by 2016 and remain at that level thereafter. These trend rates reflect management's expectations of future rates. Increasing or decreasing the
healthcare cost trend by 1% would change the postretirement accumulated plan benefit obligation by less than $1 million.
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