Analyzing and interpreting pension disclosure

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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.

Reference no: EM131289804

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