Lockheed Martin Corporation discloses the following funded status for its defined benefit pension plans in its \(10-\mathrm{K}\) report.

Lockheed contributed \(\$ 3,637\) million to its pension plan assets in 2012, up from \(\$ 2,285\) million in the prior year. The company also reports that it is obligated for the following expected payments to retirees in the next five years.

a. How is this funded status reported in Lockheed's balance sheet under current GAAP?

b. How should we interpret this funded status in our analysis of the company?

c. What likely effect would a substantial decline in the financial markets have on Lockheed's contribution to its pension plans? Explain.

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Defined Benefit Pension Plans (In millions) Unfunded status of the plans..... 2012 2011 $(15,093) $(13,324)