In Its 2018 Annual Report to Shareholders, JDS Corporation Disclosed

question 211

Essay

In its 2018 annual report to shareholders, JDS Corporation disclosed the following information about its pension plan:
$$\begin{array} { | l | r | r | } \hline \text { (\$ in millions) } & \mathbf { 2 0 1 8 } & \mathbf { 2 0 1 7 } \\\hline \text { PROJECTED BENEFIT } & & \\\text { OBLIGATION } & & \\\hline \text { Beginning balance } & \$ 120.0 & \$ 102.2 \\\hline \text { Service cost } & 4.1 & 5.5 \\\hline \text { Interest cost } & 7.0 & 6.5 \\\hline \text { Benefits paid } & ( 2.6 ) & ( 4.4 ) \\\hline \text { Actuarial loss } & \underline { 6.6 } & \underline { 11.4 } \\\hline \text { Ending balance } & \$ 135.1 & \$ 121.2 \\\hline\end{array}$$
The increase in the underfunded projected benefit obligation was primarily attributable to a reduction in the assumed discount rate. This was combined with the effect of increases in benefits under the terms of the plan in excess of current inflation rates. The net result was reflected as a reduction in accumulated other comprehensive income.
-Explain how the loss is reported in the financial statements (other than the balance sheet).

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Definitions:

Carbon Dioxide Levels

The concentration of carbon dioxide gas in a given environment, often measured in the blood to evaluate respiratory function.

Epinephrine Release

Epinephrine release involves the secretion of the hormone epinephrine (adrenaline) from the adrenal medulla, triggering the body's fight-or-flight response.

Heart Rate

Heart rate is the number of heartbeats per unit of time, typically expressed as beats per minute (BPM), indicating cardiovascular health and efficiency.

Body Temperature

The measure of the body's ability to generate and get rid of heat, critical for maintaining metabolic processes.