Analyzing and Interpreting Pension Disclosures General Mills, Inc. reports the f

Question

Analyzing and Interpreting Pension Disclosures
General Mills, Inc. reports the following pension footnote in its 10-K report.

237.3

Estimated benefit payments . . . are expected to be paid from fiscal 2014

Defined Benefit Pension Plan ($ millions) 2013 2012 Change in Plan Assets Fair value at beginning of year $ 4,353.9 $ 4,264.0 Actual return on assets 698.7 56.3 Employer contributions 223.1 222.1 Plan participant contributions 15.2 20.3 Benefit payments (222.6) (203.3) Foreign currency (2.2) (5.5) Fair value at end of year $ 5,066.1 $ 4,353.9 Change in Projected Benefit Obligation Benefit obligation at beginning of year $ 4,991.5 $ 4,458.4 Service cost 124.4 114.3 Interest cost

237.3

237.9 Plan amendment 0.2 (13.4) Curtailment/other -- (27.1) Plan participant contributions 15.2 20.3 Medicare Part D reimbursements -- -- Actuarial loss (gain) 237.5 405.7 Benefits payments (222.8) (203.5) Foreign currency (1.9) (5.9) Acquisitions -- 4.8 Projected benefit obligation at end of year $ 5,381.4 $ 4,991.5

Explanation / Answer

(b) Total amount paid to retirees during 2013 - this amount is given in the "change in projected benefit obligation". The amount is $222.8 million.

(c) 2013 funded status for the company's pension plan:

Projected benefit obligation at the end of 2013 = $5,381.4 million (given in the question)

Fair value of assets at the end of 2103 = $5, 066.1 million (given in the question)

So, funded status = Fair value of assets - projected benefit obligations

= 5066.1 - 5381.4

= $ - 315.3 million

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