Analyzing and Interpreting Pension Disclosures—Expenses and Returns Stanley Black & Decker Inc. discloses the following pension footnote in its 10-K report.

$ millions 2015 U.S. Plans Non-U.S. Plans Total Service cost . . . . . . . . . . . . . . . . . . . . . . . . . $ 7.0 $14.4 $ 21.4 Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . 54.046.8100.8 Expected return on plan assets . . . . . . . . . . (74.9) (56.5) (131.4)

Prior service cost amortization. . . . . . . . . . . 1.8 0.9 2.7 Actuarial loss amortization . . . . . . . . . . . . . . 7.2 7.5 14.7 Settlement/curtailment loss . . . . . . . . . . . . . — 1.5 1.5 Net periodic pension (benefit) expense . . . . . $ (4.9) $14.6 $ 9.7

a. How much pension expense does Stanley Black & Decker report in its 2015 income statement?

b. Explain, in general, how expected return on plan assets affects reported pension expense. How did expected return affect Stanley Black & Decker’s 2015 pension expense?

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