Question
The following pension information was disclosed by PACCAR Inc. in its 2016 annual report: 2016 2015 Change in projected benefit obligation: Benefit obligation at January
The following pension information was disclosed by PACCAR Inc. in its 2016 annual report:
2016 |
| 2015 |
| |||||
Change in projected benefit obligation: |
|
| ||||||
Benefit obligation at January 1 |
| $ | 2,306.0 |
|
| $ | 2,417.4 |
|
Service cost |
|
| 88.6 |
|
|
| 91.3 |
|
Interest cost |
|
| 94.3 |
|
|
| 92.2 |
|
Benefits paid |
|
| (80.2 | ) |
|
| (121.3 | ) |
Actuarial loss (gain) |
|
| 186.4 |
|
|
| (141.6 | ) |
Currency translation and other |
|
| (90.6 | ) |
|
| (35.6 | ) |
Participant contributions |
|
| 1.1 |
|
|
| 3.6 |
|
|
|
|
|
|
|
|
| |
Projected benefit obligation at December 31 |
| $ | 2,505.6 |
|
| $ | 2,306.0 |
|
|
|
|
|
|
|
|
| |
Change in plan assets: |
|
| ||||||
Fair value of plan assets at January 1 |
| $ | 2,219.0 |
|
| $ | 2,309.4 |
|
Employer contributions |
|
| 185.7 |
|
|
| 62.9 |
|
Actual return on plan assets |
|
| 254.5 |
|
|
| 0.3 |
|
Benefits paid |
|
| (80.2 | ) |
|
| (121.3 | ) |
Currency translation and other |
|
| (86.0 | ) |
|
| (35.9 | ) |
Participant contributions |
|
| 1.1 |
|
|
| 3.6 |
|
|
|
|
|
|
|
|
| |
Fair value of plan assets at December 31 |
| $ | 2,494.1 |
|
| $ | 2,219.0 |
|
|
|
|
|
|
|
|
- How much did PACCAR contribute to the pension plan during 2016?
- What amount of pension benefits were paid to former PACCAR employees during 2016?
- How did the benefits paid in (b) affect the pension obligation and the pension assets?
Benefits paid Increase Decrease Do not affect (Choose one) pension obligation
Benefits paid Increase DecreaseDo not affect (Choose one) pension assets
- What was the funded status of the pension plan in 2016?
Ans: $ ________________ Underfunded or Overfunded (Choose one)
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