Which components are included in net periodic pension cost under US GAAP?

Net periodic pension cost encompasses several specific components that reflect the expenses associated with a pension plan. Under US GAAP, these include service cost, interest cost, expected return on plan assets, and amortization of prior service costs, gains, and losses.

Service cost represents the present value of benefits earned by employees during the current period. Interest cost reflects the increase in the projected benefit obligation due to the passage of time. The expected return on plan assets is the anticipated earnings from the investments held in the pension fund. Lastly, amortization considerations include any adjustments related to prior service costs and gains or losses that may not yet have been recognized in the financial statements.

This combination of factors forms the basis of net periodic pension cost, providing a comprehensive picture of the financial obligations under the pension plan in a given period.