no. 2 Information International Paper Company disclosed the following pension information in its 2016 anal report Net periodic pension expense for qualified and nonqualified U.S. defined benefit plans comprised the following 2016 2015 2014 Non: Noo U.S. In millions U.S. Non U.S. U.S. Plans US. U.S. Plans Plans Plans Plans Plans Service cost $ 158 $ 4 $ 161 $6 $ 145 $5 Interest cost 580 9 597 10 600 13 Expected return on plan assets (815) (10) (783) (11) (762) (14) Actuarial loss/(gain) 400 1 428 1 374 Amortization of prior service cost 41 43 30 Curtailment loss/(gain) Settlement loss 445 15 1 1 1 (4) Net periodic pension expense (a) $ 809 $4 $ 461 $6 $ 387 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. BIVA IEEE 12pt Paragraph 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. * 12 114 4 F3 F4 16 2016 2015 2014 Non: Non: Non: U.S. U.S. U.S. In millions U.S. U.S. U.S. Plans Plans Plans Plans Plans Plans Service cost $ 158 $ 4 $ 161 $ 6 $ 145 $ 5 Interest cost 580 9 597 10 600 13 Expected return on plan assets (815) (10) (783) (11) (762) (14) Actuarial loss/(gain) 400 1 428 374 Amortization of prior service cost 41 Curtailment loss/(gain) Settlement loss 445 Net periodic pension expense (a) $ 809 1 43 15 30 30 ' (4) $ 4 $ 461 $6 $ 387 1