Analyzing and Interpreting Pension Disclosures for Campbell Soup
a. What type of pension plan does Campbell Soup offer its employees?
b. Does Campbell Soup have a net pension asset or a net pension liability at July 28, Year 11? What is the amount?
c. Identify the amounts of the vested, accumulated, and projected benefit obligations at July 28, Year 11. What do those amounts represent?
d. What is the amount of the assets currently held by the pension plan?
e. What types of assets are held by the pension plan?
f. What is the net economic position of the pension plan?
g. What creates the difference between the net pension asset (liability) and the net economic position of the pension plan?
h. How much unrecognized prior service cost is left to amortize to pension expense?
i. Comment on the reasonableness of the expected return on plan assets.
j. Comment on the reasonableness of the long-term rate of compensation increase for employees. Comment from the viewpoint of an equity analyst and the viewpoint of a potential employee.
Sourced from Wild-Subramanyan-Halsey: Financial Statement Analysis, Ninth Edition.
Appendix A: Financial Statements
Copyright: The McGraw-Hill Companies, 2007.
Your response is 409 words and responds to the queries posted. The source for the amounts is from the "year 11" amounts in the Footnote 8 attached to the posting (and not the current Annual Report of Campbell Soup).
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