Problem:
1. Taylor Corp reported the following items in the 2012 pension footnote (in millions).
|
Service cost
|
$1,012
|
|
Benefits paid to retirees
|
290
|
|
Interest cost
|
980
|
|
Actual returns on pension plan assets
|
1,400
|
|
Expected returns on pension plan assets
|
1,540
|
|
Amortization of deferred amounts
|
$ 62
|
2. Buckeye Inc. has a defined benefit retirement plan. The company's 2012 annual report includes the following excerpt about these plans (in millions):
|
Projected benefit obligations, January 1, 2012
|
$8,606
|
|
Service cost - benefits earned during the year
|
332
|
|
Interest cost on projected benefit obligations
|
446
|
|
Actuarial losses (gains)
|
608
|
|
Benefits paid
|
(294)
|
|
Settlement
|
(776)
|
|
Other, primarily foreign currency translation
|
41
|
|
Projected benefit obligations, December 31, 2012
|
$8,963
|
|
|
|
|
Plans' assets at fair value, January 1, 2012
|
$7,451
|
|
Actual return on plan assets
|
29
|
|
Company contributions
|
394
|
|
Benefits paid
|
(294)
|
|
Settlement
|
(776)
|
|
Other, primarily foreign currency translation
|
157
|
|
Plan assets at fair value, December 31, 2012
|
$6,961
|
What is the funded status of this plan?
Additional Information:
These short answer questions is from Finance. The 1st question is about computing pension expense and the 2nd question is about computation of underfunded retirement plan.