Northrop Grumman is a leading aerospace/defense company. The company has developed the F-16 fighter, the Apache helicopter, the AWACS early warning airborne radar, and the B-2 Stealth bomber. Grumman, one of the predecessor companies of Northrop Grumman, was the primary contractor for the Lunar Excursion Module (LEM) that landed Neil Armstrong and Buzz Aldrin on the moon in 1969. Information relating to Northrop Grumman's pension and other postretirement benefit plans follows.

The following table shows those amounts expected to be recognized in net periodic benefit cost in 2012:

The accumulated benefit obligation for all defined benefit pension plans was $23.6 billion and $20.5 billion at December 31, 2011 and 2010, respectively.

Based on this information, answer the following questions:
1. Is Northrop Grumman's pension plan overfunded or underfunded? How can you tell?
2. Are Northrop Grumman's medical and life benefits programs overfunded or underfunded? Explain.
3. As of the end of 2011, does Northrop Grumman's pension-related accumulated other comprehensive income increase or decrease its stockholders' equity?
4. During 2011, was the actual return on Northrop Grumman's pension fund more or less than the expected return? What about in 2010? Explain.

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Medical and Life Benefits Pension Benefits $ in millions 2011 2010 2009 2011 2010 2009 Components of Net Periodic Benefit Cost Service cost Interest cost. Expected return on plan assets Amortization of prior service $520 531 547 32 34 34 1,223 ,212 ,180 114 7 124 (1,690) (1517) (1,366) (62) 56) 48) 34 (5) 5 (51) 19 cost (credit). Net loss from previous years Other Net periodic benefit cost 23 162 35 206 289 21 18 $ 238 467 705 44 62 78 Medical and Life Benefits Pension Benefits $ in millions 2011 2010 2011 2010 Change in Projected Benefit Obligation Projected benefit obligation at beginning of year Service cost Interest cost Plan participants' contributions Plan amendments Actuarial loss (gain) Benefits paid Other Projected benefit obligation at end of year 21,820 $20,661 2,104 2,104 34 520 1,223 14 (608) 531 1,212 10 32 114 82 82 (27) (1,197) 7224) (222) 16 2,235 2,104 2,379 633 107 (22) 24,129 (51) 21,820 Change in Plan Assets 18,184 2,320 789 10 932 31 Fair value of plan assets at beginning of year Gain/(loss) on plan assets Employer contributions Plan participants' contributions Benefits paid Acquisitions, curtailments, divestitures and other. Fair value of plan assets at end of year Funded status 20,081 1,342 1,084 14 843 108 105 82 (1,197) 7224) (222) 82 16 (46) 21,340 5000 932 $(2,789 (1739 (1289) S1172) Amounts Recognized in the Consolidated Statements of Financial Position Non-current assets Current liability Non-current liability $ 112 27541 45 (48) (1,920 1,282 (1,169) (104) (2,797) (94) (48) Pension Benefits Medical and Life Benefits $ in millions Amounts Expected to be Recognized in 2012 Net Periodic Benefit Cost Net loss Prior service cost (credit) $427 (58) s 21 (51) Medical and Life Benefits Pension Benefits $ in millions 2011 2010 2011 2010 Amounts Recorded in Accumulated Other Comprehensive Loss Net actuarial loss Prior service cost and net transition obligation Income tax benefits related to above items Unamortized benefit plan costs S(6,131) $(4,246) (194) 2,215 752 (3,379 $(2,688) (331) 361) 238 49 $(108) (74) 537 149 74