no. 2 Information: International Paper Company disclosed the following pension information in its 2016 annual report: Net periodic pension expense for qualified and nonqualified U.S. defined benefit plans comprised the following: In millions Service cost Interest cost Expected return on plan assets Actuarial loss/(gain) 2016 2015 2014 Non: Non- Non: U.S. U.S. U.S. U.S. U.S. U.S. Plans Plans Plans Plans Plans Plans $ 158 $4 $161 $6 $145 $ 5 580 9 597 10 600 13 (815) (10) (783) (11) (762) (14) 400 1 428 374 Amortization of prior service cost 41 Curtailment loss/(gain) 43 30 30 (4) Actuarial loss/(gain) 374 400 428 Amortization of prior service cost 41 43 30 30 Curtailment loss/(gain) 1 T (4) Settlement loss Net periodic pension expense (a) 445 T 15 $ 809 $ 4 $ 461 $6 $ 387 $ - Question 2 10 pts a. Briefly explain the following components of the company's pension expense for the year: service cost, interest cost, and actuarial loss. b. International Paper reports an actual return on plan assets for its U.S. Plans of $607 million for the year. Why is this different from the expected return of $815 million reported above? Explain the logic behind using expected return on plan assets to calculate pension expense. BIUA A IE 1 1 EE