YUM! Brands, Inc., reports the following pension footnote in Note 14 of a recent 10-k report. U.S. Pension Plans December 31 (In millions) Change in benefit obligation Benefit obligation at beginning of year Service cost Interest cost Curtailment gain Special termination benefits Benefits paid Actuarial (gain) loss Benefit obligation at end of year Change in plan assets Fair value of plan assets at beginning of year Actual return on plan assets Employer contributions Benefits paid Administrative expenses Fair value of plan assets at end of year Funded status $1,358 24 64 Pension obligation $ Fair value of the plan assets $ $ 75 (7) (40) 227 $1,631 $937 83 53 (40) (5) $1,028 $(603) a. Show the computation of the December 31 funded status for Yum. Note: Do not use negative signs with any of your answers, million million million b. What net pension amount is reported on its December 31 balance sheet? million

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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YUM! Brands, Inc., reports the following pension footnote in Note 14 of a recent 10-K report.
U.S.
Pension
Plans
December 31 (In millions)
Change in benefit obligation
Benefit obligation at beginning of year
Service cost
Interest cost
Curtailment gain
Special termination benefits
Benefits paid
Actuarial (gain) loss
Benefit obligation at end of year
Change in plan assets
Fair value of plan assets at beginning of year
Actual return on plan assets
Employer contributions
Benefits paid
Administrative expenses
Fair value of plan assets at end of year
Funded status
$1,358
24
64
(7)
5
(40)
227
$1,631
$937
83
53
(40)
(5)
$1,028
$(603)
a. Show the computation of the December 31 funded status for Yum.
Note: Do not use negative signs with any of your answers,
Pension obligation
million
Fair value of the plan assets $
million
$
million
b. What net pension amount is reported on its December 31 balance sheet?
million
Transcribed Image Text:YUM! Brands, Inc., reports the following pension footnote in Note 14 of a recent 10-K report. U.S. Pension Plans December 31 (In millions) Change in benefit obligation Benefit obligation at beginning of year Service cost Interest cost Curtailment gain Special termination benefits Benefits paid Actuarial (gain) loss Benefit obligation at end of year Change in plan assets Fair value of plan assets at beginning of year Actual return on plan assets Employer contributions Benefits paid Administrative expenses Fair value of plan assets at end of year Funded status $1,358 24 64 (7) 5 (40) 227 $1,631 $937 83 53 (40) (5) $1,028 $(603) a. Show the computation of the December 31 funded status for Yum. Note: Do not use negative signs with any of your answers, Pension obligation million Fair value of the plan assets $ million $ million b. What net pension amount is reported on its December 31 balance sheet? million
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