YUM! Brands, Inc., discloses the following pension footnote in its \(10-\mathrm{K}\) report.

a. How does the "actual return on plan assets" of \(\$ 93\) million affect YUM!'s reported profits for 2()07?

b. What are the cash flow implications of the pension plan for YUM! in 2007?

c. YUM!'s pension plan paid out \(\$ 33\) million in benefits during 2007. Where else is this payment reflected?

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Pension Plan Assets ($ millions) 2007 2006 Fair value of plan assets at beginning of year $673 $610 Actual return on plan assets... 93 60 Employer contributions... 2 35 Benefits paid... (33) (29) Administrative expenses. (3) (3) Fair value of plan assets at end of year $732 $673