Analyzing Pension Disclosures The following pension data is taken from note 16 of The Boeing Company 10-K report. ($ millions) 2020 Change in Benefit Obligation Beginning balance $77,024 Service cost 3 Interest cost 2,435 Actuarial loss (gain) 7,697 Settlement/curtailment/other -67 Gross benefits paid -5,343 Exchange rate adjustment 7 Ending balance $81,756 Change in Plan Assets Beginning balance at fair value $61,217 Actual return on plan assets 9,201 Company contribution 2,989 Settlement payments -67 Benefits paid -5,199 Exchange rate adjustment 6 $68,147 Ending balance at fair value Components of Net Periodic Benefit (Income)/Cost Pension 2020 Service cost Interest cost Expected return on plan assets Amortization of private service credits Recognized net actuarial loss/(gain). Settlement/curtailment loss/(gain) Net periodic benefit (income)/cost $3 2,435 -3,726 -79 1,024 9 $-334 Ending balance at fair value $68,147 Components of Net Periodic Benefit (Income)/Cost Pension 2020 Service cost $3 Interest cost 2,435 Expected return on plan assets -3,726 Amortization of private service credits -79 Recognized net actuarial loss/(gain) Settlement/curtailment loss/(gain) Net periodic benefit (income)/cost 1,024 9 $-334 Required 1. In general, what factors affect a company's pension benefit obligation (PBO) during a period? Impact on PBO 1. Service cost 2. Interest cost Increase 3. Expected return on plan assets Decrease No impact 4. Actuarial loss 4. Actuarial gain 5. Payments of benefits to retirees 2. In general, what factors affect a company's pension plan investments during a period? 1. Service cost 2. Investment returns (positive) 3. Investment losses 4. Payments made to retirees 5. Interest cost 6. Employer cash contributions Impact on Plan Investments 2. In general, what factors affect a company's pension plan investments during a period? 1. Service cost 2. Investment returns (positive 3. Investment losses Impact on Plan Investments Increase Decrease 4. Payments made to retirees No impact 5. Interest cost 6. Employer cash contributions 3. What amount is reported on the balance sheet relating to the Boeing Company pension plan? Note: Do not use a negative sign with your answer. Reported as a(an) on Boeing's balance sheet in the amount of $0 million 4. How does an increase in the expected return on plan assets affect pension cost? 0 5. How does Boeing's expected return on plan assets compare with its actual return (in $s) for 2020? Boeing's expected return on plan assets of $ 0 million was 6. How much net pension cost is reflected in Boeing's 2020 income statement? its actual return on plan assets of $ 0 Note: Do not use a negative sign with your answer. $ 0 million million. Note: Do not use a negative sign with your answer. Reported as a(an) asset on Boeing's balance sheet in the amount of $ 0 million 4. How does an increase in the expected return on plan assets affect pension cost? 5. How does Boeing's expected return on plan assets compare with its actual return (in $s) for 2020? Boeing's expected return on plan assets of $ 0 million was 6. How much net pension cost is reflected in Boeing's 2020 income statement? Note: Do not use a negative sign with your answer. $ 0 million Income 7. Assess Boeing's ability to meet payment obligations to retirees. Boeing's plan is currently overfunded by $ 0 million. its actual return on plan assets of $ 0 million.