(a) How much pension expense (revenue) does DuPont report in its 2012 income statement? DuPont reports pension of $ million. (b) DuPont reports a $1,517 million expected return on pension plan assets as an offset to 2012 pension expense. Estimate what the expected return would have been had Dupont not changed the assumption on the expected return in 2012. (Round your dollar answers to the nearest whole number.) $0 million What is DuPont's actual gain or loss realized on its 2012 pension plan assets? 0 ($ million) = (c) What main factors affected DuPont's pension plan assets and pension liability during 2012? Oinvestment gains and employer contributions increased the plan assets. Service costs, interest costs, and actuarial losses increased the pension liability, 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 costs and actuarial losses increased the pension liability, and benefit payments reduced the liability. Interest reflects the amount the company paid to its lenders and did not affect the pension obligation directly. Oinvestment gains and employer contributions increased the plan assets, and benefits paid reduced plan assets. Service costs, interest costs and actuarial losses increased the pension liability, and benefit payments reduced the liability. Oinvestment gains and employer contributions increased the plan assets, and benefits paid reduced plan assets. Service costs, interest costs and actuarial losses decreased the pension liability, and benefit payments reduced the liability. E.I. Du Pont De Nemours and Co.'s 10-K report has the following disclosures related to its retirement plans ($ millions). Obligations and Funded Status Change in benefit obligation Pension Benefits 2012 2011 December 31 (5 millions) Benefit obligation at beginning of year $27,083 $23,924 Service cost 277 249 1,165 1,253 24 21 Interest cost Plan participants' contributions Acturarial loss Benefits paid Amendments Net effects of acquisitions/divestitures Benefit obligation at end of year Change in plan assets Fair value of plan assets at beginning of year Actual gain on plan assets Employer contributions 2,245 3,062 (1,593) (1,610) (22) 2 182 $29,179 $27,083 $ 17,794 $18,403 2,326 471 848 341 24 21 Plan participants' contributions Benefits paid (1,593) (1,610) Net effects of acquisitions/divestitures 168 Fair value of plan assets at end of year $19,399 $17,794 Funded status U.S. plans with plan assets Non-U.S. plans with plan assets All other plans Total Amount recognized in the Consolidated Balance Sheets consist of: $(6,625) $892 (1,443) (317) (1,712) (1,515) $(9,780) $ (9,289) Other assets Other accrued liabilities Other liabilities Liabilities related to assets held for sale Net amount recognized $5 (4) (110) (107) (9,303) (9,186) (372) (9,780) (9,289) Pension Benefits (in millions) Components of net periodic benefit cost (credit) 2012 2011 2010 Net periodic benefit Service cost $277 $249 $207 Interest cost 1,165 1,253 1,262 Expected return on plan assets (1,517) (1,475) (1,435) Amortization of loss 887 613 507 Amortization of prior service cost 13 16 16 Curtailment/settlement loss 7 - Net periodic benefit cost $832 $656 $557 Weighted-avg. assumptions used for net periodic benefit cost for years ended Dec. 31 2012 2011 2010 Discount Rate Expected return on plan assets Rate of compensation increase 4.32% 5.32% 5.80% 8.61% 8.73% 8.64% 4.18 % 4.24 % 4.24% The following benefit payments, which reflect future service, as appropriate, are expected to be paid: ($ millions) Pension Benefits 2013 $1,629 2014 1,604 2015 1,629 2016 1,637 2017 1,667 Years 2018-2022 8,678