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Please help with all parts of the problem. At December 31, 2015, ExxonMobil had 4,156 million shares of outstanding common stock. The closing market price

Please help with all parts of the problem.

At December 31, 2015, ExxonMobil had 4,156 million shares of outstanding common stock. The closing market price of each share of stock at December 31, 2015, was $77.95. Presented below are excerpts from the 2015 annual report of ExxonMobil Corporation. The benefit obligations and plan assets associated with the Corporations principal benefit plans are measured on December 31.

Pension Benefits Other Postretirement Benefits
U.S. Non-U.S.
2015 2014 2015 2014 2015 2014
Weighted-average assumptions used
to determine
benefit obligations at December 31
Discount rate 4.25 4.00 3.60 3.10 4.25 4.00
Long-term rate of compensation 5.75 5.75 4.80 5.30 5.75 5.75
increase
(millions of dollars)
Change in benefit obligation
Benefit obligation at January 1 20,529 17,304 30,047 27,357 9,436 7,868
Service Cost 864 677 689 590 170 140
Interest cost 785 802 850 1,138 346 383
Actuarial Loss/(Gain) (545) 3,192 (1,517) 4,929 (617) 1,522
Benefits paid (1) (2) (2,050) (1,427) (1,287) (1,366) (482) (525)
Foreign exchange rate changes --- ------- (3,242) (2,540) (106) (48)
Amendments, divestments, and other ----- (24) (423) (61) (465) 96
Benefit obligation at December 31 19,583 20,529 25,117 30,047 8,282 9,436
Accumulated benefit obligation at Dec 31 15,666 16,385 22,362 26,318 ------ ------

Benefit payments for funded and unfunded plans.

For 2015 and 2014, other postretirement benefits paid are net of $15 million and $21 million of Medicare subsidy receipts, respectively.

For selection of the discount rate for U.S. plans, several sources of information are considered, including interest rate market indicators and the discount rate determined by use of a yield curve based on high-quality, noncallable bonds with cash flows that match estimated outflows for benefit payments. For major non-U.S. plans, the discount rate is determined by using bond portfolios with an average maturity approximating that of the liability or spot yield curves, both of which are constructed using high-quality, local-currency-denominated bonds.

Pension Benefits Other Postretirement Benefits
U.S. Non-U.S.
2015 2014 2015 2014 2015 2014
Change in plan assets
Fair value at January 1 12,915 11,190 20,095 19,283 468 620
Actual return on plan assets (307) 1,497 918 3,153 ----- 41
Foreign exchange rate changes ------ ------ (2,109) (1,738) ----- -----
Company contribution ------ 1,476 515 554 42 31
Benefit paid (1) (1,632) (1,248) (890) (912) (96) (224)
Other ------- ------ (112) (245) ----- -----
Fair value at December 31 10,985 12,915 18,417 20,095 414 468
(1) Benefit payments for funded plans.
At December 31, 2014, the following amounts were in accumulated other comprehensive income:
(millions of dollars) U.S. Pension Non-U.S. Pension Other Postretirement Benefits
Net actuarial loss (gain) 6,589 9,642 2,997
Prior Service Cost 27 429 51

Pension Benefits Other Postretirement Benefits
U.S. Non-U.S.
2015 2014 2013 2015 2014 2013 2015 2014 2013
Weighted-average assumptions used to
determine net periodic benefit cost for
years ended December 31
Discount Rate 4.00 5.00 4.00 3.10 4.30 3.80 4.00 5.00 4.00
Long-term rate of return on funded assets 7.00 7.25 7.25 5.90 6.30 6.40 7.00 7.25 7.25
Long-term rate of compensation increase 5.75 5.75 5.75 5.30 5.40 5.50 5.75 5.75 5.75
(millions of dollars)
Components of net periodic benefit cost
Service cost 864 677 801 689 590 697 170 140 176
Interest cost 785 807 749 850 1,138 1,076 346 383 352
Expected return on plan assets (830) (799) (835) (1,094) (1,193) (1,128) (28) (37) (41)
Amortization of actuarial loss/(gain) 544 409 646 730 628 852 206 116 228
Amortization of prior service cost 6 8 7 87 120 117 (24) 14 21
Net pension enhancement
and curtailment/settlement cost 499 276 723 22 ----- 22 ----- ----- -----
Net periodic benefit cost 1,868 1,378 2,091 1,284 1,283 1,636 670 616 736

Required:

1. What is the amount of assets or liabilities recognized on ExxonMobils balance sheet for its U.S. pension benefits at December 31, 2015?

2. Compute the December 31, 2015, balance of Accumulated Other Comprehensive IncomeActuarial Losses (gains) for the U.S. Pension Plans. The amounts are before taxes. Be sure to label your items and show your computations. The Net pension enhancement and curtailment/settlement cost of $499 million in pension expense should be treated in the same way that you treat Amortization of actuarial loss/(gain).

3. Based on information in the pension note, would you expect the 2016 expense for the U.S. pension plans to be higher or lower than its 2015 amount? Explain.

4. Compute the short-term pension risk ratio and the short-term OPEB risk ratio as of December 31, 2015. Consider U.S. and non-U.S. pension plans.

5. Compute the long-term pension risk ratio and the long-term OPEB risk ratio as of December 31, 2015. Consider U.S. and non-U.S. pension plans.

6. Based on your answers to requirements 4 and 5, explain whether ExxonMobil has significant pension and OPEB risk.

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