Solved

In Its 2009 Annual Report to Shareholders, the Marianne James

Question 169

Essay

In its 2009 annual report to shareholders, the Marianne James Companies Inc. (MJCI) disclosed the following information, regarding its postemployment benefit plans.
The Company and certain of its affiliates sponsor postemployment benefit plans covering substantially all salaried and certain hourly employees. The cost of these plans is charged to expense over the working life of the covered employees. Net postemployment costs consisted of the following for the years ended December 31, 2009, 2008 and 2007:
The company instituted workforce reduction programs in its North American food operations in 2007. These actions resulted in incremental postemployment costs, which are shown as other expense above.
Required:
Describe the three components in the net postemployment costs disclosed by MJCI.
(in millions)
200920082007 Service cost $34$26$24 Amortization of net loss 862 Other expense 161 Net postemployment costs $42$32$187\begin{array}{lrrr} & \mathbf{2 0 0 9} & \mathbf{2 0 0 8} & \mathbf{2 0 0 7} \\\text { Service cost } & \$ 34 & \$ 26 & \$ 24 \\\text { Amortization of net loss } & 8 & 6 & 2 \\\text { Other expense } & -- & -- & 161 \\\text { Net postemployment costs }&\$42&\$32&\$187\end{array}

Correct Answer:

verifed

Verified

The service cost each year is an allocat...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents