Northrop Grumman is a leading aerospace/defense company. The company has developed the F-16 fighter, the Apache helicopter, the AWACS early warning airborne radar, and the B-2 Stealth bomber. Grumman, one of the predecessor companies of Northrop Grumman, was the primary contractor for the Lunar Excursion Module (LEM) that landed Neil Armstrong and Buzz Aldrin on the moon in 1969. Information relating to Northrop Grumman's pension and other postretirement benefit plans follows.

The following table shows those amounts expected to be recognized in net periodic benefit cost in 2010:

The accumulated benefit obligation for all defined benefit pension plans was $22.1 billion and $20.4 billion at December 31, 2009 and 2008, respectively.

Based on this information, answer the following questions:
1. Is Northrop Grumman's pension plan overfunded or underfunded? How can you tell?
2. Are Northrop Grumman's medical and life benefits programs overfunded or underfunded? Explain.
3. As of the end of 2009, does Northrop Grumman's pension-related accumulated other comprehensive income increase or decrease its stockholders' equity?
4. During 2009, was the actual return on Northrop Grumman's pension fund more or less than the expected return? What about in 2008? Explain.

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Medical and Life Benefits Pension Benefits s in millions 2009 2008 2007 2009 2008 2007 Components of Net Periodic Benefit Cost Service cost Interest cost Expected return on plan assets Amortization of 661 $. 721 $ 786 $. 48 55 52 1,350 1,335 1,250 (1,559) (1,895 (1,774) 164 (48) (64) (58) Prior service cost (credit) Net loss from previous years (65) (65) 17 Net periodic benefit cost $ 856 225 352 $133 $114 $118 Medical and Life Benefits Pension Benefits $ in millions 2009 2008 2009 2008 Change in Projected Benefit Obligation $22,147 661 1,350 Projected benefit obligation at beginning of year Service cost Interest cost Plan participants' contributions. Plan amendments Actuarial loss (gain) Benefits paid Acquisitions, curtailments, divestitures and other Projected benefit obligation at end of year $22,069 $2,716 $2,812 (170) (1,359) (1,179) (289) 23,723 22,147 2,780 2,716 Change in Plan Assets Fair value of plan assets at beginning of year. .._..... 18,501 22,891 718 Gain/(loss) on plan assets 2,945 (3,500) (238) 181 Plan participants' contributions. Benefits paid Acquisitions, curtailments, divestitures and other Fair value of plan assets at end of year Funded status (1,179) (269) 20,973 18,501 718 2.750) $(3,646 (1,937 $(1,998) Amounts Recognized in the Consolidated Statements of Financial Position 266 36 264 (47) (2,967) $ 24 Non-current assets Current liability Non-current liability (3,867) (1,907) (1,956) Pension Benefits Medical and Life Benefits S in millions Amounts Expected to be Recognized in 2010 Net Periodic Benefit Cost Net loss Prior service cost (credit) $244 $26 47 (60) Medical and Life Benefits Pension Benefits $ in millions 2009 2008 2009 2008 Amounts Recorded in Accumulated Other Comprehensive Loss Net actuarial loss Prior service cost and net transition obligation Income tax benefits related to above items Unamortized benefit plan costs $(4,648 $(5,509) (287) 2,286 $2,967) $3,510) $(451) 298 61 $ (92) $(539) 357 72 $(110) (242) 1,923