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:
Required:
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?
c. What cash contribution did the company make to the pension plan during the year?

Question

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:
  Required: 
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?
c. What cash contribution did the company make to the pension plan during the year?

Quizplus · Accepted Answer

The Answer of 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:
  Required: 
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?
c. What cash contribution did the company make to the pension plan during the year?

International Paper Company Disclosed the Following Pension Information in Its