Chapter 10, Problem 10.18EX

To determine

Pension: Pension is a cash payment given to the employees at the time of their retirement. The pension benefits are accrued based on years of service, annual compensation and age, and based on the employer’s pension plan.

Defined benefit pension plan:

• In this plan, the employee is getting a fixed annual amount by the company based on a formula.
• In this plan, the employer is required to pay the fund to the employees after their retirement as a pension benefit.

To explain: The meaning of $5,599 million unfunded pension liability and $434 million periodic pension cost.