Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

American Airlines reports the following pension and retiree health care (Other) footnote as part of its 10-K report. ($ millions) 2016 2017 2018 Total Assets

American Airlines reports the following pension and retiree health care (Other) footnote as part of its 10-K report.

($ millions)

2016

2017

2018
Total Assets $51,274 $51,396 $60,580

($ millions)

2016

2017

2018
Fair value of plan assets at beginning of period $9,707 $10,017 $11,395
Actual return on plan assets 915 1,797 (1,151)
Employer contributions 32 286 475
Settlements (2) (4) (4)
Benefit payments (635) (726) (662)
Other - 25 -
Fair value of plan assets at end of period $10,017 $11,395 $10,053

Use the above information, along with the two prior years information below, to answer the requirements.

$ millions

2016 2017 2018
Cash contributions to pension plan $32 $286 $475

a. Use the three-year average of the employer contribution to pension benefits (in dollar terms) to reformulate the statement of cash flows for each of the three years 2016, 2017, and 2018. See Analyst Adjustments 10.2 for guidance in the reformulation process.

Compute the 3 year average employer contribution to pension benefits.

Round to the nearest whole number.

$Answer

($ millions)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Financial Accounting

Authors: Carl S Warren, Jeff Jones

16th Edition

0357510380, 978-0357510384

More Books

Students also viewed these Accounting questions

Question

=+that are effective for children and adults who stutter

Answered: 1 week ago