What is the total value of plan assets held by Corcoran?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
. These notes are principally classified within other non-current assets in the Company's Consolidated Balance Sheets. The Company recorded a contra-revenue in the statement of operations related to the forgiveness and impairment of these notes and other sales incentives of $35 million, $34 million and $45 million for the years ended December 31, 2024, 2023 and 2022, respectively.
11. EMPLOYEE BENEFIT PLANS
DEFINED BENEFIT PENSION PLAN
The Company's defined benefit pension plan was closed to new entrants as of July 1, 1997 and existing participants do not accrue any additional benefits. The net periodic pension cost for 2024 was $2 million and was comprised of interest cost of approximately $5 million and the amortization of the actuarial net loss of $2 million, offset by a benefit of $5 million for the expected return on assets. The net periodic pension cost for 2023 was $3 million and was comprised of interest cost of approximately $5 million and the amortization of the actuarial net loss of $3 million, offset by a benefit of $5 million for the expected return on assets.
At December 31, 2024 and 2023, the accumulated benefit obligation of this plan was $92 million and $100 million, respectively, and the fair value of the plan assets were $80 million and $86 million, respectively, resulting in an unfunded accumulated benefit obligation of $12 million and $14 million, respectively, which is recorded in Other current and noncurrent liabilities in the Consolidated Balance Sheets.
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, the fair value of the plan assets were $80 million as of December 31, 2024, and $86 million as of December 31, 2023. This resulted in an unfunded accumulated benefit obligation of $12 million and $14 million, respectively, which is recorded in Other current and noncurrent liabilities in the Consolidated Balance Sheets.
Additionally, the document provides a breakdown of the plan assets by category as of December 31, 2023. The total plan assets were valued at $86 million, which includes $3 million in cash and cash equivalents, $35 million in fixed income securities, and $48 million in plan assets measured at Net Asset Value (NAV). The fair values of these plan assets were determined using the NAV as a practical expedient and therefore have not been classified in the fair value hierarchy.
This information is relevant for prospective franchisees as it provides insight into Corcoran's financial obligations and how the company manages its employee benefit plans. Understanding the value of plan assets and the obligations associated with them can help franchisees assess the financial stability and long-term sustainability of the company. It also shows how Corcoran structures its employee benefits, which can be a factor in attracting and retaining talent within the franchise network.
It is important to note that the document also mentions other employee benefit plans, such as post-retirement health and welfare plans and a defined contribution savings plan. While these plans are not directly related to the specific question about plan assets, they provide a broader picture of Corcoran's commitment to employee benefits and its overall financial health.