Below is an excerpt from the note disclosure (excerpts from Note 12) of the Canadian National Railway Company's December 31, 2011 annual report.

Instructions
Using the above disclosure notes, answer the following questions.
(a) Is the company's pension plan in a surplus or deficit status position at December 31, 2011? At December 31, 2010?
(b) What is the amount reported for the net periodic benefit cost for December 31, 2011, and December 31, 2010? What could cause this trend?
(c) What was the amount of cash flow used to fund the plan for 2011 and 2010? Why would there be differences in the annual funding amounts? How does this compare with the expense that is showing for the company for the related years?
(d) Discuss whether or not you believe that the pension expense is faithfully presented in the profit or loss statement for the years 2011 and 2010.

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Pensions In millions Year ended December 31, 2011 2010 2009 $124 $ 99 $ 83 788 837 885 Service cost Interest cost Curtailment gain Settlement loss Expected return on plan assets Amortization of prior service cost Recognized net actuarial loss (gain) 3 (1,005) (1,009) (1,007) 2 8 Net periodic benefit cost (income) $(80) $(70) $ (34) Pensions In millions Year ended December 31 2011 2010 Change in benefit obligation Projected benefit obligation at beginning of year Amendments Interest cost Actuarial loss (gain) Service cost Curtailment gain Plan participants' contributions Foreign currency changes Benefit payments, settlements, and transfers $14,895 $13,708 27 788 577 124 837 1,118 54 (12) (910) $15,548 $14,895 (439) (922) Projected benefit obligation at end of year Component representing future salary increases Accumulated benefit obligation at end of year (437) $15,11 $14,456 Change in plan assets Fair value of plan assets at beginning of year Employer contributions Plan participants' contributions Foreign currency changes Actual return on plan assets Benefit payments, settlements, and transfers $15,092 $14,332 411 50 458 54 36 (922) 1,217 (910) Fair value of plan assets at end of year $14,719 $15,092 Funded status (Excess (deficiency) of fair value of plan assets overprojected benefit obligation at end of year) $ (829) 197