Caterpillar, Inc. discloses the following pension footnote in its 2016 10-K report (in millions):

U.S. Pension Benefits	2016
Change in benefit obligation
Benefit obligation, beginning of year	$15,792
Service cost	119
Interest cost	517
Plan amendments	---
Actuarial losses (gains)	767
Foreign currency exchange rates	---
Participant contributions	---
Benefits paid - gross	(970	)
Less: federal subsidy on benefits paid	---
Curtailments, settlements and termination benefits	(7	)
Benefit obligation, end of year	$16,218

The fair value of Caterpillars U.S. pension assets is $11,354 million as of 2016. What is the funded status of the plan, and how will this be reflected on Caterpillars balance sheet?

Select one:

A. The pension plan is overfunded by $4,438 million and is reported as an asset on the companys balance sheet.

B. The pension plan is underfunded by $4,864 million and is reported as a liability on the companys balance sheet.

C. The pension plan is overfunded by $4,864 million and is reported as an asset on the companys balance sheet.

D. The pension plan is underfunded by $6,804 million and is reported as a liability on the companys balance sheet.

E. The pension plan is underfunded by $4,438 million and is reported as a liability on the companys balance sheet.