(885) Question 6 Not complete Marked out of 8.33 Retirement Obligations Funding Status. General Motors Company (GM) is a worldwide manufacturer of automobiles. Assume the company's pension disclosures from its annual report (in millions of dollars) were as follows: Plan Assets 2018 2017 Beg plan assets $61,707 $59,537 Actual return on plan assets (894) 6,059 Employer contributions 1,360 984 Benefits paid (6,493) (5,149) Foreign exchange adjustments 806 Other plan adjustments (390) (530) Total plan assets $54,405 $61,707 Defined Benefit Obligation Beginning Benefit obligation $72,991 $71.986 Service cost 286 306 Interest cost 2,011 2,094 Actuarial gain/losses (3.777) 2,757 Benefits paid (5,194) (5,149) Foreign exchange adj. (1,162) 1,562 Other adj. (281) (566) ) Projected benefit obligation 64,875 72,991 Discount rate 2.64% 2.72% Assumed rate of return 3.369 2.8096 Required 1. Identify the projected benefit obligation and pension plan assets for 2017 and 2018: Note: Enter PBO as a negative amount. millions 2018 2017 Plan assets $ $ Less: PBO Over (under funding $ Is GM's defined benefit plan over- or underfunded relative to its PBO? 2017 2018 How will GM's pension asset/debt position be reflected on its balance sheet? 2. Lowering the discount rate from 3.4 percent in 2017 to 3.3 percent in 2018 will increase or decrease the PBO? Raising the expected rate of return from 3.5 percent in 2017 to 4.2 percent in 2018 will increase or decrease the expected return on plan assets in the pension cost calculation