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Example 2 The following pension information was disclosed by Abbott Laboratories Defined Benefit Plans 2016 2015 (in millions) Projected benefit obligations, January1 Service cost benefits earned during the year Interest cost on projected benefit obligations 7,820 $ 263 288 8,345 307 314 (Gains) losses, primarily changes in discount rates, plan design changes, law changes and differences between actual and estimated health care costs (574) (230) (117) (225) 645 (242) Benefits paid Business dispositions Other, including foreign currency translation (257) 8,517 $ 7,820 Projected benefit obligations, December 31 Plan assets at fair value, January 1 Actual return (loss) on plans' assets Company contributions Benefits paid Business dispositions Other, including foreign currency translation 6,772 $ 631 582 (242) 6,754 (56) 579 (230) (113) (162) (201) 7,542 $ 6,772 Plan assets at fair value, December 31 a. What is the funded status of the pension plan in 2016 and 2015 b. How does the funded status affect Abbott's 2016 balance sheet? c. What is service cost? How does it affect Abbott Labs' total pension expense for the year? d. How much did Abbott Labs contribute to the pension plan during 2016 How does that compare to the contribution in 2015? f. Why do the benefits paid affect both the pension obligation and the pension assets

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