Question

Analyzing and Interpreting Pension Disclosures

General Mills reports the following pension footnote in its 10-K report.

Defined Benefit Pension Plan ($ millions)	2010	2009
Change in Plan Assets
Fair value at beginning of year	$ 3,157.8	$ 4,128.7
Actual return on assets	535.9	(1,009.1)
Employer contributions	17.1	220.2
Plan participant contributions	3.5	3.1
Benefits payments	(182.6)	(177.4)
Foreign currency	(1.9)	(7.7)
Fair value at end of year	$ 3,529.8	$ 3,157.8
Change in Projected Benefit Obligation
Benefit obligation at beginning of year	$ 3,167.3	$ 3,224.1
Service cost	70.9	76.5
Interest cost	230.3	215.4
Plan amendment	25.8	0.3
Curtailment/other	--	--
Plan participant contributions	3.5	3.1
Medicare Part D reimbursements	--	--
Actuarial loss (gain)	716.4	(166.8)
Benefits payments	(182.6)	(177.4)
Foreign currency	(1.6)	(7.9)
Projected benefit obligation at end of year	$ 4,030.0	$ 3,167.3

Estimated benefit payments, which reflect expected future service, as appropriate, are expected to be paid from fiscal 2011-2020 as follows:

(in millions)	Defined Benefit Pension Plans
2011	$ 194.8
2012	202.8
2013	211.9
2014	221.4
2015	231.4
2016-2020	$ 1,331.7

(a) What is the total amount paid to retirees during fiscal 2010?
Answer($ million)


(b) Compute the 2010 funded status for the company's pension plan.
Answer($ million)

Answer 1

1. Amount paid to the retirees during the fiscal year 2010 is $182.6 million as reflected in the 10-K report as benefits payments.

	Amount ($'m)	Amount ($'m)
Fair value at the beginning of the year		3157.3
Add:
Actual return on assets	535.9
Employer contributions	17.1
Plan participant contributions	3.5
		556.5
		3713.8
Less:
Benefits payments	182.6
Foreign currency	1.9
		184.5
Fair value at the end of the year		3529.3