I need help with the one indicated in (X). Analyzing and Interpreting Pension Disclosures Assume E.I. Du Pont De Nemours and Co.'s 10-K report has the following disclosures related to its retirement plans ($ millions). 2010 2009 The following benefit payments, which reflect future service, as appropriate, are expected to be paid: Pension Benefits($ millions)20102009Change in benefit obligationBenefit obligation at beginning of year$ 22,849$ 22,935Service cost383388Interest cost1,2281,192Plan participants' contributions139Acturarial loss (gain)(728)(244)Benefits paid(1,544)(1,506)Amendments-- (1)Net effects of acquisitions/divestitures576Benefit obligation at end of year$ 22,206$ 22,849Change in plan assetsFair value of plan assets at beginning of year$ 22,249$ 20,132Actual gain on plan assets1,9273,306Employer contributions277280Plan participants' contributions139Benefits paid(1,544)(1,506)Net effects of acquisitions/divestitures--28Fair value of plan assets at end of year$ 22,922$ 22,249Funded statusU.S. plans with plan assets$ 2,365$ 892Non-U.S. plans with plan assets(90)(317)All other plans(1,559)(1,515)Total$ 716$ (940) Analyzing and Interpreting Pension Disclosures Assume E.I. Du Pont De Nemours and Co.'s 10- K report has the following disclosures related to its retirement plans (\$ millions). The following benefit payments, which reflect future service, as appropriate, are expected to be paid: HINT: Do not use negative signs with your answers. (a) How much pension expense (revenue) does DuPont report in its 2010 income statement? DuPont reports pension of $ million. (b) DuPont reports a $1,799 million expected return on pension plan assets as an offset to 2010 pension expense. Estimate what the expected return would have been had DuPont not changed the assumption on the expected return in 2010 . (Round your dollar answers to the nearest whole number.) $ milion What is DuPont's actual gain or loss realized on its 2010 pension plan assets? (\$ million) (c) What main factors affected DuPont's pension plan assets and pension liability during 2010? Oinvestment gains and employer contributions increased the plan assets. Service and interest costs increased the pension liability, and actuarial gains and benefit payments reduced the liability. Benefits were paid directly by the company and did not affect plan assets Oinvestment gains and employer contributions increased the plan assets, and benefits paid reduced plan assets. Service and interest costs increased the pension liability, and actuarial gains and benefit payments reduced the liability. Olnvestment gains and employer contributions increased the plan assets, and benefits paid reduced plan assets. Service and interest costs decreased the pension liability, and actuarial gains and benefit payments reduced the liability. Olnvestment gains and employer contributions increased the plan assets, and benefits paid reduced plan assets. Service costs increased the pension liability, and actuaria.

1. I need help with the one indicated in (X).
Analyzing and Interpreting Pension Disclosures
Assume E.I. Du Pont De Nemours and Co.'s 10-K report has the following disclosures related to
its retirement plans ($ millions).
2010
2009
The following benefit payments, which reflect future service, as appropriate, are expected to be
paid:
Pension Benefits($ millions)20102009Change in benefit obligationBenefit obligation at
beginning of year$ 22,849$ 22,935Service cost383388Interest cost1,2281,192Plan participants'
contributions139Acturarial loss (gain)(728)(244)Benefits paid(1,544)(1,506)Amendments--
(1)Net effects of acquisitions/divestitures576Benefit obligation at end of year$ 22,206$
22,849Change in plan assetsFair value of plan assets at beginning of year$ 22,249$ 20,132Actual
gain on plan assets1,9273,306Employer contributions277280Plan participants'
contributions139Benefits paid(1,544)(1,506)Net effects of acquisitions/divestitures--28Fair value
of plan assets at end of year$ 22,922$ 22,249Funded statusU.S. plans with plan assets$ 2,365$
892Non-U.S. plans with plan assets(90)(317)All other plans(1,559)(1,515)Total$ 716$ (940)
Analyzing and Interpreting Pension Disclosures Assume E.I. Du Pont De Nemours and Co.'s 10-
K report has the following disclosures related to its retirement plans ($ millions).
The following benefit payments, which reflect future service, as appropriate, are expected to be
paid:
HINT: Do not use negative signs with your answers. (a) How much pension expense (revenue)
does DuPont report in its 2010 income statement? DuPont reports pension of $ million. (b)
DuPont reports a $1,799 million expected return on pension plan assets as an offset to 2010
pension expense. Estimate what the expected return would have been had DuPont not changed
the assumption on the expected return in 2010 . (Round your dollar answers to the nearest whole

2. number.) $ milion What is DuPont's actual gain or loss realized on its 2010 pension plan assets?
($ million) (c) What main factors affected DuPont's pension plan assets and pension liability
during 2010? Oinvestment gains and employer contributions increased the plan assets. Service
and interest costs increased the pension liability, and actuarial gains and benefit payments
reduced the liability. Benefits were paid directly by the company and did not affect plan assets
Oinvestment gains and employer contributions increased the plan assets, and benefits paid
reduced plan assets. Service and interest costs increased the pension liability, and actuarial gains
and benefit payments reduced the liability. Olnvestment gains and employer contributions
increased the plan assets, and benefits paid reduced plan assets. Service and interest costs
decreased the pension liability, and actuarial gains and benefit payments reduced the liability.
Olnvestment gains and employer contributions increased the plan assets, and benefits paid
reduced plan assets. Service costs increased the pension liability, and actuarial gains and benefit
payments reduced the liability. Interest reflects the amount the company paid to its lenders and
did not affect the pension obligation directly. Mark 1.00 out of 1.00 (d) Which of the following
statements best describes what the phrase funded status means? What is the funded status of the
2010 DuPont pension plans? 'Funded status" reveals how much cash the plan has. 'Funded
status" refers to the extent to which the plan assets are invested in mutual funds. '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. Mark 1.00 out of 1.00 DuPont's pension
plan is by $ million
(e) DuPont increased its discount rate from 5.43% to 5.56% in 2010 . What effect(s) does the
increase in the discount rate for determining pension obligations and cost have on the company's
balance sheet and its income statement? An increase in the discount rate reduces the PBO and
has no effect on pension cost. An increase in the discount rate reduces the PBO and increases
pension cost. An increase in the discount rate reduces the PBO and decreases pension cost. An
increase in the discount rate increases the PBO and increases pension cost. Mark 1.00 out of 1.00
(f) Which of the following statements best describes how DuPont's pension plan affected its
2010 cash flow? There was no effect on the company's cash flow as all benefit payments are paid
from plan assets. OThe company's cash flow increased as the increase in pension assets more
than offset the increase in the PBO. The company's cash flow increased by the gains on the plan's
investment portfolio and decreased by the benefits paid to plan participants. OThe company
contributed cash to its pension plan in 2010. This contribution directly affected the company's
cash flow. Mark 1.00 out of 1.00 (g) Explain how the returns on pension assets affect the amount
of cash that DuPont must contribute to fund the pension plan. OAsset returns have no effect on
DuPont's cash flow because they are recognized in the pension plan and not on the company's

3. financial statements. OShould pension investments decline as a result of a decline in the financial
markets, DuPont might be required to increase its cash contribution to the pension plan. OAsset
returns have no effect on DuPont's cash flow because increases in the PBO provide whatever
financing the plan needs. OAsset returns have no effect on DuPont's cash flow because employee
contributions make up any shortfall.