What was the present value of the defined benefit obligation for Bimbo Foods Bakeries Distribution in 2023?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Present value of defined benefit obligation | $28,382 | $27,163 | $27,465 |
| Less-fair value of planassets | 26,684 | 24,788 | 24,413 |
| 1,698 | 2,375 | 3,052 | |
| Plus-Retirement benefits for Latin America | |||
| and EAA | 541 | 434 | 479 |
| Plus–Pension net assets | 120 | 97 | 79 |
| Less -Current portion of retirement benefits | |||
| recognized in accrued liabilities | (127) | (119) | (124) |
| Present value of unfunded defined benefits | $2,232 | $2,787 | $3,486 |
Source: Item 14 — Other Accounts Payable and Accrued Liabilities (FDD pages 312–476)
What This Means (2025 FDD)
According to Bimbo Foods Bakeries Distribution's 2025 Franchise Disclosure Document, the present value of the defined benefit obligation as of December 31, 2023, was $27,163. This figure represents the estimated amount that Bimbo Foods Bakeries Distribution is obligated to pay in the future to its employees through defined benefit plans.
This obligation is a critical component of Bimbo Foods Bakeries Distribution's long-term financial planning and reflects the company's commitment to providing retirement benefits to its employees. The present value is calculated using actuarial valuations, which take into account various factors such as discount rates, employee demographics, and expected future salary increases. These valuations are performed by independent actuaries to ensure accuracy and compliance with accounting standards.
For a prospective franchisee, understanding the defined benefit obligation provides insight into the financial stability and long-term liabilities of Bimbo Foods Bakeries Distribution. While this obligation does not directly impact the franchisee's day-to-day operations, it is an indicator of the overall financial health of the parent company. Franchisees should be aware of these types of financial obligations as they can affect the company's ability to invest in growth, support franchisees, and manage potential economic downturns.
It's also important to note that the present value of the defined benefit obligation can fluctuate from year to year due to changes in actuarial assumptions, market conditions, and plan amendments. Bimbo Foods Bakeries Distribution provides additional details on these changes and the underlying assumptions in its financial statements, offering further transparency into its financial position.