a. How much pension expense does DowDuPont report in its 2018 income statement? Would 2018 pension expense have been higher or lower if DowDuPont had not changed the Rate of compensation increase from 2017 to 2018?

b. DowDuPont reports a $2,846 million expected return on pension plan assets as an offset to 2018 pension expense. Estimate what the expected return would have been had DowDuPont not changed the assumption on the expected return in 2018. What is DowDuPonts actual gain or loss realized on its 2018 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 DowDuPonts pension liability during 2018? What main factors (and dollar amounts) affected its pension plan assets during 2018?

d. What does the term funded status mean? What is the funded status of the 2018 DowDuPont pension plans?

e. DowDuPont increased its discount rate during 2018. What effect(s) does this have on its balance sheet and its income statement?

f. How did DowDuPonts pension plan affect the companys cash flow in 2018? (Identify any inflows and outflows, including amounts.)

g. Explain how the returns on pension assets affect the amount of cash that DowDuPont must contribute to fund the pension plan.

Obligations and Funded Status (\$ millions) December 31, 2018 Change in ppg.1057 'jenefit obligations Benefit obligatons at peginning of year . $57,401 Service cost Interest cost Plan participants' contributions. Actuarial changes in assumptions and experience Benefits paid. Plan amendments. Acquisitions/divestitures/other Effect of foreign exchange rates. Benefit obligation at end of year. $53,014(627) Obligations and Funded Status (\$ millions) December 31, 2018 Change in plan assets Fair value of plan assets at beginning of year $43,685 Actual return on plan assets. (1,524) Employer contributions. Plan participants' contributions. Benefits paid. Acquisitions/divestitures/other (7) Effect of foreign exchange rates. Fair value of plan assets at end of year $41,462(462) Funded status U.S. plan with plan assets $(6,956) Non-U.S. plans with plan assets. (2,751) All other plans. Funded status at end of year ... $(11,552)(1,845) Components of Net Periodic Benefit Cost (\$ millions) December 31, 2018 Net periodic benefit cost Service cost . Interest cost . Expected return on plan assets Amortization of prior service credit. Amortization of unrecognized (gain) loss Curtailment/settlement/other Net periodic benefit costs-Total Weighted-Average Assumptions used to Determine Net Periodic Benefit Cost for Years Ended December 31 Expected return on plan assets The following benefit payments, which reflect future service, as appropriate, are expected to be paid: Obligations and Funded Status (\$ millions) December 31, 2018 Change in ppg.1057 'jenefit obligations Benefit obligatons at peginning of year . $57,401 Service cost Interest cost Plan participants' contributions. Actuarial changes in assumptions and experience Benefits paid. Plan amendments. Acquisitions/divestitures/other Effect of foreign exchange rates. Benefit obligation at end of year. $53,014(627) Obligations and Funded Status (\$ millions) December 31, 2018 Change in plan assets Fair value of plan assets at beginning of year $43,685 Actual return on plan assets. (1,524) Employer contributions. Plan participants' contributions. Benefits paid. Acquisitions/divestitures/other (7) Effect of foreign exchange rates. Fair value of plan assets at end of year $41,462(462) Funded status U.S. plan with plan assets $(6,956) Non-U.S. plans with plan assets. (2,751) All other plans. Funded status at end of year ... $(11,552)(1,845) Components of Net Periodic Benefit Cost (\$ millions) December 31, 2018 Net periodic benefit cost Service cost . Interest cost . Expected return on plan assets Amortization of prior service credit. Amortization of unrecognized (gain) loss Curtailment/settlement/other Net periodic benefit costs-Total Weighted-Average Assumptions used to Determine Net Periodic Benefit Cost for Years Ended December 31 Expected return on plan assets The following benefit payments, which reflect future service, as appropriate, are expected to be paid