12. [Analysis of pension plan disclosures] Fxhibit 12P-5 con- tairs pension plan data for Lucent [LU] for the five years ended September 30, 2001

a. Compute the four-year totals for the following: (i) Recurring cost (ii) Gross pension cost (iii) Nonsmoothed pension cost (iv) Benefits paid (v) Pension plan contributions (vi) Reported pension cost

b. Select the four-year total computed in part a that best de- scribes the economic cost of Lucent's pension plans and ex- plain why the four-year total reported cost is different.

c. Explain why Lucent was able to make minimal contributions to its pension plans over the penod despite large benefit payments.

d. State and justify the conditions (if any) under which the low level of contributions is likely to continue over the four-year period ending in 2005.