Analyzing and Interpreting Pension Disclosure-Expenses and Returns Stanley Black & Decker, INC. discloses the following pension footnote in its 10-K report.
($ millions)- 2012
Service cost-$6.6
Interest cost-$62.9
Expected return on plan assets-($67.1)
Prior service cost amortization-$1.0
Transition obligation amortization------
Actuarial loss amortization-$6.2
Settlement/Curtailment loss (gain)-$11.3
Net periodic pension expense-$20.9
How much pension expense does Stanley Black & Decker report in its 2012 income statement?
Explain, in general, how expected return on plan assets affects reported pension expense. How did expected return affect Stanley Black & Decker’s 2012 pension expense?
Explain use of the word “expected” as it relates to pension plan assets.