Question NOT Compete wiar ReuUUL U10.53 Tiag question 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: 2018 2017 Plan Assets Beg. plan assets Actual return on plan assets Employer contributions Benefits paid Foreign exchange adjustments Other plan adjustments Total plan assets Defined Benefit Obligation Beginning Benefit Obligation Service cost $92,561 $89,305 (1,342) 9,089 2,040 1,476 (6,493) (7,723) (1,327) 1,208 (584) (794) $84,855 $92,561 Interest cost Actuarial gain/losses Benefits paid Foreign exchange adj. Other adj. Projected benefit obligation Discount rate Assumed rate of return $109,487 $107,980 430 460 3,017 3,142 (5,665) 4,135 (7,792) (7,723) (1,742) 2,344 (421) (850) 97,313 109,487 3.96% 4.08% 5.04% 4.20% Required 1. Identify the projected benefit obligation and pension plan assets for 2017 and 2018: Note: Enter PBO as a negative amount. Assumed rate of return 5.04% 4.20% 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? ce Check