Johnson \& Johnson provides the following footnote disclosures in its 10-K report relating to its defined benefit pension plans and its other post-retirement benefits.

Required

a. How much pension expense does Johnson \& Johnson report in its 2012 income statement?

b. The company reports a \(\$ 1,236\) million expected return on pension plan assets as an offset to 2012 pension expense. Approximately, how is this amount computed? What is the actual gain or loss realized on its 2012 pension plan assets? What is the purpose of using this expected return instead of the actual gain or loss?

c. What factors affected the company's pension liability during 2012? What factors affected the pension plan assets during 2012?

d. What does the term funded status mean? What is the funded status of the 2012 pension plans and postretirement benefit plans?

e. The company decreased its discount rate from \(5.13 \%\) to \(4.25 \%\) in 2012 . What effect(s) does this decrease have on its balance sheet and its income statement?

f. How did Johnson \& Johnson's pension plan affect the company's cash flow in 2012?

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($ in millions) Change in Benefit Obligation Projected benefit obligation-beginning of year Service cost ... Interest cost.. Plan participant contributions Amendments Actuarial losses Divestitures & acquisitions. Curtailments & settlements & restructuring Benefits paid from plan Effect of exchange rates.. Projected benefit obligation-end of year. Change in Plan Assets Plan assets at fair value-beginning of year Actual return (loss) on plan assets.... Company contributions.. Plan participant contributions Settlements. Divestitures & acquisitions. Benefits paid from plan assets. Effect of exchange rates.... Plan assets at fair value-end of year Funded status-end of year... ******* Retirement Plans 2012 2011 $17,424 722 878 35 12 2,662 629 (6) (697) 170 $21,829 $13,736 1,926 1,838 35 (2) 593 (697) 107 $17,536 $ (4,293) $14,993 638 853 54 (24) 1,698 14 (6) (659) (137) $17,424 $13,433 (102) 1,135 54 (2) (2) (659) (121) $13,736 $ (3,688) Other Benefit Plans 2012 2011 $ 3,790 175 165 - 459 (432) 2 $ 4,159 $8 3 543 - (432) $ 122 $(4,037) $ 3,572 149 188 $ 14 213 (320) (12) $ 3,790 $ 8 | (1) 315 (320) $(3,782)