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Analyzing and Interpreting Pension Disclosures-Expenses and Returns YUM! Brands, Inc., discloses the following pension footnote in its 10-K report: (in millions) Pension Benefits 2014 2013
Analyzing and Interpreting Pension Disclosures-Expenses and Returns
YUM! Brands, Inc., discloses the following pension footnote in its 10-K report:
(in millions) | Pension Benefits | |
| 2014 | 2013 |
Service Cost | $17 | $21 |
Interest Cost | 54 | 54 |
Amortization or prior service cost | 1 | 2 |
Expected return on plan assets | (56) | (59) |
Amortization of net loss | 17 | 48 |
Net periodic benefit cost | $33 | $66 |
- How much pension expense does yum report in its 2014 income statement?
- What affect does its expected return on plan assets have on its reported pension expense? Explain.
- Explain use of the word expected as it relates to results of pension plan investments.
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