E. I. Du Pont De Nemours and Co.'s 10-K report has the following disclosures related to its retirement plans (\$ millions).

Required

a. How much pension expense (revenue) does DuPont report in its 2012 income statement?

b. DuPont reports a \(\$ 1,517\) million expected return on pension plan assets as an offset to 2012 pension expense. Approximately, how is this amount computed (estimate from the numbers reported)? What is DuPont's actual gain or loss realized on its 2012 pension plan assets? What is the purpose of using this expected return instead of the actual gain or loss (return)?

c. What main factors (and dollar amounts) affected DuPont's pension liability during 2012? What main factors (and dollar amounts) affected its pension plan assets during 2012?

d. What does the term funded status mean? What is the funded status of the 2012 DuPont pension plans?

e. DuPont decreased its discount rate from \(5.32 \%\) to \(4.32 \%\) in 2012 . What effect(s) does this decrease have on its balance sheet and its income statement?

f. How did DuPont's pension plan affect the company's cash flow in 2012? (Identify any inflows and outflows, including amounts.)
g. 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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Obligations and Funded Status December 31 ($ millions) Change in benefit obligation Benefit obligation at beginning of year. Service cost.. Interest cost Plan participants' contributions Actuarial loss Benefits paid Amendments Net effects of acquisitions/divestitures Benefit obligation at end of year Change in plan assets Fair value of plan assets at beginning of year Actual gain on plan assets.. Employer contributions .... Plan participants' contributions. 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 Pension Benefits 2012 $27,083 277 1,165 24 2,245 (1,593) (22) $29,179 $17,794 2,326 848 24 (1,593) $19,399 $ (6,625) (1,443) (1,712) $ (9,780) 2011 $23,924 249 1,253 21 3,062 (1,610) 2 182 $27,083 $18,403 471 341 21 (1,610) 168 $17,794 $ (6,894) (901) (1,494) $ (9,289)