DulPont's \(10-\mathrm{K}\) report has the following disclosures related to its retirement plans ( \(\$\) millions).

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a. How much pension expense (revenue) does DuPont report in its 2007 income statement?

b. DuPont reports a \(\$ 1,800\) million expected return on pension plan assets as an offset to 2007 pension expense. Approximately, how is this amount computed (estimate from the numbers reported)? What is DuPont's actual gain or loss realized on its 2007 pension plan assets? What is the purpose of using this expected return instead of the actual gain or loss?

c. What main factors (and dollar amounts) affected DuPont's pension liability during 2007? What main factors (and dollar amounts) affected its pension plan assets during 2007?

d. What does the term funded status mean? What is the funded status of the 2007 DuPont pension plans?

e. DuPont increased its discount rate from \(5.43 \%\) to \(5.56 \%\) in 2007 . What effect(s) does this increase have on its balance sheet and its income statement?

f. How did DuPont's pension plan affect the company's cash flow in 2007? (Identify any inflows and outflows, including amounts.)
g. In 2007 , DuPont contributed \(\$ 277\) million to its pension plan. Explain how the returns on pension assets affect the amount of cash that DuPont must contribute to fund the pension plan

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($ millions) Pension Benefits 2007 2006 Change in benefit obligation Benefit obligation at beginning of year.. $22,849 $22,935 Service cost.... 383 388 Interest cost.. 1,228 1,192 Plan participants' contributions. 13 9 Actuarial loss (gain) Benefits paid Amendments Net effects of acquisitions/divestitures (728) (244) (1,544) (1.506) (1) 5 76 $22,206 $22,849 Benefit obligation at end of year Change in plan assets Fair value of plan assets at beginning of year $21,909 $19,792 Actual gain on plan assets. 1,963 3,306 Employer contributions 277 280 Plan participants' contributions 13 9 Benefits paid... Net effects of acquisitions/divestitures Fair value of plan assets at end of year. Funded status U.S. plans with plan assets .... Non-U.S. plans with plan assets All other plans.. Total (1,544) - $22,618 $ 2,061 (90) (1,559) $ 412 (1.506) 28 $21,909 $ 892 (317) (1,515) $ (940)