What was the interest income on plan assets for Petro Stopping Center's pension plans in 2024?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
her | 34 5,701 | Private Equity is valued at fair value based on the most recent third-party net asset valuation, revenue or earnings based valuations that generally result in the use of significant unobservable inputs.
Bonds held by pension plans are predominantly valued using observable market data based inputs other than quoted market prices in active markets.
| $ million | |||
|---|---|---|---|
| Other | 2024 | ||
| Pension plans | post-employment benefit plans | Total | |
| Analysis of the amount charged to profit before interest and taxation | |||
| Current service costa | 152 | 18 | 170 |
| Operating charge relating to defined benefit plans | 152 | 18 | 170 |
| Payments to defined contribution plans | 193 | — | 193 |
| Total operating charge | 345 | 18 | 363 |
| Interest income on plan assetsa | (284) | — | (284) |
| Interest on plan liabilities | 240 | 63 | 303 |
| Other finance expense | (44) | 63 | 19 |
| Analysis of the amount recognized in other comprehensive income | |||
| Actual asset return less interest income on plan assetsa | (241) | — | (241) |
| Change in financial assumptions underlying the present value of the plan liabilities | 238 | 181 | 419 |
| Change in demographic assumptions underlying the present value of the plan liabilities | 2 | (10) | (8) |
| Experience gains and losses arising on the plan liabilities | (23) | (8) | (31) |
| Remeasurements recognized in other comprehensive income | (24) | 163 | 139 |
| Movements in benefit obligation during the year | |||
| Benefit obligation at January 1 | 4,853 | 1,322 | 6,175 |
| Exchange adjustments | (2) | — | (2) |
| Operating charge relating to defined benefit plans | 152 | 18 | 170 |
| Interest cost | 240 | 63 | 303 |
| Contributions by plan participants | 3 | — | 3 |
| Benefit payments (funded plans)b | (254) | — | (254) |
| Benefit payments (unfunded plans)b | (24) | (128) | (152) |
| Remeasurements | (217) | (163) | (380) |
| Benefit obligation at December 31a | 4,751 | 1,112 | 5,863 |
| Movements in fair value of plan assets during the year | |||
| Fair value of plan assets at January 1 | 5,776 | — | 5,776 |
| Exchange adjustments | (1) | — | (1) |
| Interest income on plan assetsa c | 284 | — | 284 |
| Contributions by plan participants | 3 | — | 3 |
| Contributions by employers (funded plans) | 9 | — | 9 |
| Benefit payments (funded plans)b | (254) | — | (254) |
| Remeasurementsc | (241) | — | (241) |
| Fair value of plan assets at December 31 | 5,576 | — | 5,576 |
| Surplus (deficit) at December 31 | 825 | (1,112) | (287) |
| Represented by | |||
| Asset recognized | 1,029 | — | 1,029 |
| Liability recognized | (204) | (1,112) | (1,316) |
| 825 | (1,112) | (287) | |
| The surplus (deficit) may be analyze |
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the interest income on plan assets for its pension plans in 2024 was $284 million. This figure reflects the income generated from the investments held within Petro Stopping Center's pension plans during that year. This income contributes to the overall financial health and stability of the pension plans, helping to ensure that Petro Stopping Center can meet its future obligations to its retirees.
The interest income on plan assets is a critical component of the overall financial management of pension funds. It represents the return on investments made by the plan, which can include stocks, bonds, and other assets. A higher interest income can reduce the need for Petro Stopping Center to contribute additional funds to the pension plan, while a lower income may necessitate increased contributions to maintain the plan's solvency.
For prospective franchisees, this information provides insight into Petro Stopping Center's financial management practices and its approach to employee benefits. While this specific figure may not directly impact the day-to-day operations of a franchise, it does offer a glimpse into the overall financial stability and corporate responsibility of the company. Understanding these aspects can help franchisees make informed decisions about their investment and partnership with Petro Stopping Center.