Black \& 1Decker discloses the following pension footnote in its \(10-\mathrm{K}\) report.

a. How much pension expense does Black \& Decker report in its 2007 income statement?

b. Explain, in general, how expected return on plan assets affects reported pension expense. How did expected return affect Black \& Decker's 2007 pension expense?

c. Explain use of the word "expected" as it relates to pension plan assets.

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($ millions) Service cost. Interest cost Expected return on plan assets. Amortization of prior service cost Amortization of net actuarial loss.. Net periodic cost... 2007 $ 26.0 62.5 (75.6) 2.1 26.3 $ 41.3