Question 11 Partially correct Mark 6.67 out of 10.00 P Flag question Analyzing and Interpreting Pension Disclosures DowDuPoint's 10-K report has the following disclosures related to its retirement plans ($ millions). Obligations and Funded Status ($ millions) December 31, 2018 Change in projected benefit obligations Benefit obligations at beginning of year $57,401 Service cost 651 Interest cost 1,638 Plan participants' contributions 29 Acturarial changes in assumptions and experience (2,832) Benefits paid (3,223) Plan amendments 34 Acquisitions/divestitures/other (57) Effect of foreign exchange rates (627) Benefit obligation at end of year $53,014 Change in plan assets Fair value of plan assets at beginning of year $43,685 Actual gain on plan assets (1,524) Employer contributions 2,964 Plan participants' contributions 29 Benefits paid (3,223) Acquisitions/divestitures/other (7) Effect of foreign exchange rates (462) Fair value of plan assets at end of year $41,462 Funded status U.S. plan with plan assets $(6,956) Non-U.S. plans with plan assets (2,751) All other plans (1,845) Funded status at end of year $(11,552) Components of Net Periodic Benefit Cost ($ millions) December 31, 2018 Net periodic benefit Service cost $651 Interest cost 1,638 Expected return on plan assets (2,846) Amortization of prior service cost (24) Amortization of unrecognized (gain) loss 649 Curtailment/settlement/other (10) Net periodic benefit costs --Total $58 Weighted-average assumptions used to Determine Net periodic benefit cost for years ended Dec. 31 Discount Rate Expected return on plan assets Rate of compensation increase 2018 2017 3.80% 3.26% 6.68% 6.9496 3.953.8896 The following benefit payments, which reflect future service, as appropriate, are expected to be paid: ($ millions) Pension Benefits 2019 $3,197 2020 3,172 2021 2022 3,198 2023 3,219 2024-2028 16,078 Total $32,046 3,182 HINT: Do not use negative signs with your answers. (a) How much pension expense (revenue) does DowDuPont report in its 2018 income statement? DowDuPont reports pension expense of $ 68 x million. (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. (Round your dollar answers to the nearest whole number.) $ 0 x million What is DowDuPont's actual gain or loss realized on its 2018 pension plan assets? 0 * ($ million) loss (d) What does the term funded status mean? O"Funded status" reveals how much cash the plan has. O"Funded status" reflects the contributions that the company has made to the plan. "Funded status" is the excess or deficiency of the pension obligation over plan assets. O"Funded status" refers to the extent to which the plan assets are invested in mutual funds. What is the funded status of the 2018 DowDuPont pension plans? DowDuPont's pension plan is underfunded by $ 0 x million
