When did the quarterly payments begin for Aunt Millies Bakeries' 2018 pension withdrawal obligation?
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, bearing an interest rate of 6.72%.
The payment plan is structured around quarterly payments of $144,144, covering both principal and interest, for a total of 80 quarters, spanning 20 years. These payments commenced on March 11, 2019, with the final payment scheduled for December 11, 2038.
Furthermore, due to the 2018 exit from the multiemployer defined pension plan, the 2016 defined pension plan exit obligation was updated to $2,228,268. The payment schedule was also restructured into quarterly payments of $50,832, inclusive of principal and interest, for 80 quarters (20 years), also starting on March 11, 2019, and ending on December 11, 2038. The interest rate for this obligation was also amended to 6.72%.