When did the quarterly payments for Aunt Millies Bakeries' 2018 pension withdrawal obligation begin?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
a final payment due on October 1, 2035.
During 2016, the Company negotiated a partial exit from one of its multiemployer defined benefit pension plans resulting in a pension withdrawal obligation expense of $2,092,477. The amount recorded represents the present value of the estimated payments, at 7.5% interest. The expected payment plan is based on monthly payments of $16,857, principal and interest, for 240 months or 20 years. Partial withdrawal payments were expected to begin in fiscal year 2018.
During 2018, the Company negotiated the remaining exit from the multiemployer defined benefit pension plan noted above, resulting in an additional pension withdrawal obligation expense of $6,318,741. The amount recorded represents the present value of the estimated payments, at 6.72% interest. The expected payment plan is based on additional quarterly payments of $144,144
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, in 2018, Aunt Millies Bakeries negotiated the remaining exit from a multiemployer defined benefit pension plan, which resulted in an additional pension withdrawal obligation expense of $6,318,741. This amount represents the present value of the estimated payments, calculated at a 6.72% interest rate.
The payment plan for this obligation is structured around quarterly payments of $144,144, covering both principal and interest. These payments are scheduled over 80 quarters, which is equivalent to 20 years.
The first quarterly payment for this 2018 pension withdrawal obligation was due on March 11, 2019, with the final payment scheduled for December 11, 2038. This restructuring also impacted a previous 2016 pension plan exit obligation, updating it to $2,228,268 with a similar quarterly payment schedule and interest rate.