From the table in the footnote which tracks the changes in the pension benefit obligation and the
Question:
From the table in the footnote which tracks the changes in the pension benefit obligation and the value of the plan assets,
Find the actual return on plan assets for these plans for 2020, 2021, and 2022.
Compare the "expected return on assets" and the actual return on assets." How similar, or different, were they for these years?
If GAAP required companies to include the actual return on plan assets, instead of the expected return on plan assets, what would the defined benefit plan expense have been for 2020, 2021, and 2023?
How much larger or smaller would these figures have been than the reported figures for defined benefit plan expense or benefit?
Express your restated 2020, 2021, and 2022 deferred benefit plan expense or benefit (using the actual return on assets rather than the expected return on plan assets) as a percentage of pretax income. Do you regard these figures as material?
Pension Benefits | ||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Worldwide OPEB | ||||||||||||||||||
2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Change in Benefit Obligation | ||||||||||||||||||||
Benefit obligation at January 1 | $ | 49,020 | $ | 44,888 | $ | 39,835 | $ | 34,432 | $ | 6,575 | ||||||||||
Service cost | 526 | 500 | 557 | 416 | 49 | |||||||||||||||
Interest cost | 928 | 1,054 | 420 | 504 | 127 | |||||||||||||||
Amendments | 4 | |||||||||||||||||||
Separation programs/other | (25) | 4 | 185 | 56 | ||||||||||||||||
Curtailments | (4) | (2) | ||||||||||||||||||
Settlements (a) | (1,297) | (1,172) | (674) | |||||||||||||||||
Plan participant contributions | 20 | 18 | 13 | 12 | 21 | |||||||||||||||
Benefits paid | (2,522) | (2,466) | (1,565) | (1,302) | (356) | |||||||||||||||
Foreign exchange translation | (1,432) | (2,877) | ||||||||||||||||||
Actuarial (gain)/loss | (1,762) | (9,959) | (3,581) | (8,960) | (376) | |||||||||||||||
Benefit obligation at December 31 | 44,888 | 32,867 | 34,432 | 21,605 | 6,040 | |||||||||||||||
Change in Plan Assets | ||||||||||||||||||||
Fair value of plan assets at January 1 | 48,355 | 45,909 | 33,820 | 33,085 | ||||||||||||||||
Actual return on plan assets | 1,150 | (9,548) | 788 | (7,516) | ||||||||||||||||
Company contributions | 247 | 223 | 912 | 722 | ||||||||||||||||
Plan participant contributions | 20 | 18 | 13 | 12 | ||||||||||||||||
Benefits paid | (2,522) | (2,466) | (1,565) | (1,302) | ||||||||||||||||
Settlements (a) | (1,297) | (1,172) | (674) | |||||||||||||||||
Foreign exchange translation | (855) | (2,973) | ||||||||||||||||||
Other | (44) | (42) | (28) | (10) | ||||||||||||||||
Fair value of plan assets at December 31 | 45,909 | 32,922 | 33,085 | 21,344 | ||||||||||||||||
Funded status at December 31 | $ | 1,021 | $ | 55 | $ | (1,347) | $ | (261) | $ | (6,040) | ||||||||||
Amounts Recognized on the Balance Sheets | ||||||||||||||||||||
Prepaid assets | $ | 3,130 | $ | 2,064 | $ | 5,404 | $ | 3,599 | $ | |||||||||||
Other liabilities | (2,109) | (2,009) | (6,751) | (3,860) | (6,040) | |||||||||||||||
Total | $ | 1,021 | $ | 55 | $ | (1,347) | $ | (261) | $ | (6,040) | ||||||||||
Amounts Recognized in Accumulated Other Comprehensive Loss (pre-tax) | ||||||||||||||||||||
Unamortized prior service costs/(credits) | $ | 2 | $ | $ | 170 | $ | 130 | $ | 22 |