Analyzing and Interpreting Pension Plan Benefit Footnotes Lockheed Martin Corporation discloses the following funded status for its defined benefit pension plans in its 10-K report.

Defined Benefit Pension Plans ($ millions) 2015 Unfunded status of the plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(11,606)

Lockheed contributed $5 million to its pension plan assets in 2015, down drastically from $2,000 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.

$ millions Qualified Pension Benefits 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,160 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,240 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,320 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,410 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500 Years 2021–2025 . . . . . . . . . . . . . . . . . 13,670

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 did the 2015–2016 upturn in the financial markets have on Lockheed’s contribution to its pension plans? Explain.