SABMiller plc is a UK-based company that brews and distributes beer and other beverages. The following information was taken from the company’s 2010 Annual Report.

Note that in 2010, IFRS required the use of expected return on plan assets, similar to US GAAP. All amounts are in millions of US dollars.

Based on the information above, 

1. Adjust pre-tax income for the actual rather than expected return on plan assets.

2. Adjust the individual line items on the company’s income statement to re-classify the components of the pension and other post-retirement benefits expense as operating expense, interest expense, or interest income.

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Summary information from the Consolidated Income Statement For the year ended 31 March 2010 Revenue Net operating expenses Operating profit Interest payable and similar charges* Interest receivable and similar income* Share of post-tax results of associates Profit before taxation Current service costs Interest costs Expected return on plan assets Total Pension $(8) (29) 14 $(23) *Note: This is the terminology used in the income statement. The solution to question 2 below uses interest expense and interest and investment income. Excerpt from Note 31: Pensions and post-retirement benefits OPB $(3) (10) $18,020 (15,401) 2,619 $(13) (879) 316 873 $ 2,929 Total $(11) (39) 14 $(36) Actual return (loss) on plan assets $47 (Components of the amount recognised in net operating expenses for pension and other post-retirement benefits.)