全球最权威的穆迪投资机构HR福利分析案|Powerpoint模板

全球最权威的穆迪投资机构HR福利分析案

Session 39 – Workshop:Analyzing Defined Benefit Pension Plans & Postretirement Benefits
Greg Clifton
VP/Senior Analyst
Moody’s Investors Service

Rating Methodology
Cash Flow Considerations
Pension plans
Understand contribution requirements
Rough estimate can be    made with SFAS 87 information
Due to undisclosed credits, some companies may not face large contribution requirements for several years
Can be offset by contributing stock
OPEB
Primary focus on benefits paid (recorded on “pay-as you-go” basis)
Can obtain benefits paid information in the rollforward of the APBO
Can analyze growth in:
Net periodic postretirement cost
Benefit payments
Can use above rates to project future benefit payments
Balance Sheet
Adjustments:

For pensions

 Recorded Debt Per Balance Sheet
+ Add: Off-balance sheet liabilities (e.g., lease obligations, guarantees)
+ Add: Net underfunded PBO from notes to financial statements
= Adjusted Debt

OPEB – may include the underfunded amount of the APBO in adjusted debt in certain circumstances

Income Statement
As Adjusted By Moody’s:
Service cost (no adjustments)
Interest cost (adjusted only if Moody’s disagrees with discount rate)
Amortization of prior service cost (Not used)
Recognized net actuarial gains (Not used)
Amortization of transition asset (Not used)
Actual losses on plan assets, or Actual gains up to the amount of interest cost
= Adjusted Net Periodic Pension/OPEB cost
Financial Statement Information – A Closer Look
Pension Plan Funded Status
BS and IS Reporting
Assumptions v. Reality
Case Study – Dow Chemical
Solution: Part I
1. What is the funded status (i.e. underfunded PBO) of the U.S. plans (PBO – FVA)?
 2003:  $(2,304)
 2002:  $(2,536) 
2. What is the funding ratio (FVA / PBO) ?
 2003:  82.9%  
 2002:  79.0%
What is the amount of benefits paid for 2003? 
 Pension:  $737
 OPEB:     $166
Do analysts care about benefits paid?  Why or why not ?
 Pension: No, they are paid out of the plan
 OPEB:  Yes, they are generally paid by the company