Refer to the Campbell Soup annual report in Appendix A.

Required:

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.

Campbell Soup Annual Report:

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(dollars in millions) Net revenue.... Gross margin. % of net revenue. Operating expenses. % of net revenue. Operating income. % of net revenue.. Tax provision before repatriation charge.. % of income before income taxes. Tax repatriation charge...... % of Income before income taxes. Income tax provision. % of Income before income taxes. Net income.. % of net revenue. FISCAL YEAR ENDED January 28, Percentage January 30, Percentage January 31, 2005 Change 2004 Change 2003 $49,205 $ 9,015 18.3% $4,761 9.7% $ 4,254 8.6% $1,122 25.2% $ 280 6.3% $1,402 31.5% $ 3,043 6.2% 19% 19% 19% 20% 15% $41,444 $ 7,552 18.2% $ 4,008 9.7% $ 3,544 $ 8.6% $ 1,079 29.0% $ 1,079 29.0% $ 2,645 6.4% 17% 19% 14% 25% 25% $35,404 $ 6,349 17.9% $ 3,505 9.9% $ 2,844 8.0% $ 905 29.9% $ 905 29.9% $ 2,122 6.0%