Abbott Laboratories has a defined benefit retirement plan. The companys 2013 annual report includes the following excerpt
Question:
Abbott Laboratories’ has a defined benefit retirement plan. The company’s 2013 annual report
includes the following excerpt about these plans (in millions):
What is the funded status of this plan?
Service cost $ 976
Benefits paid to retirees 155
Interest cost 775
Actual returns on pension plan assets 1,003
Expected returns on pension plan assets 1,132
Amortization of deferred amounts 42
Projected benefit obligations, January 1, 2013 $11,322
Service cost — benefits earned during the year 303
Interest cost on projected benefit obligations 276
Actuarial losses (gains) (650)
Benefits paid (185)
Separation of AbbVie Inc. (4,654)
Other, including foreign currency translation 20
Projected benefit obligations, December 31, 2013 $6,432
Plans' assets at fair value, January 1, 2013 $7,949
Actual return on plan assets 727
Company contributions 724
Benefits paid (185)
Separation of AbbVie Inc. (3,107)
Other, primarily foreign currency translation 15
Plan assets at fair value, December 31, 2013 $6,123
What is the funded status of this plan?Expert Answer:
