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

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

Estimated benefit payments . . . are expected to be paid from fiscal 20142023 as follows:

(in millions)	Defined Benefit Pension Plans
2014	$ 236.3
2015	243.6
2016	251.6
2017	260.3
2018	270.1
2019-2023	$ 1,512.3

(a) Which of the statements below best describes what is meant by service cost and interest cost?

Service cost represents the additional pension benefits earned by employees during the current year but paid to employees in the future. Interest cost is the expense we incur on funds borrowed by the pension plan.

Service cost represents the wages earned by employees managing the pension plan during the current year. Interest cost is the expense we incur on funds borrowed by the pension plan.

Service cost represents the wages earned by employees managing the pension plan during the current year. Interest cost is an expense that accrues on the pension obligation during the year.

Service cost represents the additional pension benefits earned by employees during the current year but paid to employees in the future. Interest cost is an expense that accrues on the pension obligation during the year.

(b) What is the total amount paid to retirees during fiscal 2013? Answer($ million) What is the source of funds to make these payments to retirees?

pension liabilities

operating cash flows

pension obligations

pension assets

(c) Compute the 2013 funded status for the company's pension plan. Answer($ million)