Table:
|  |  | Years Ended June 30, |  |
| --- | --- | --- | --- |
| ($ in millions) | 2019 | 2018 | 2017 |
| Cost of sales |  |  |  |
| Service cost | $10.0 | $10.5 | $20.2 |
| Total cost of sales | 10.0 | 10.5 | 20.2 |
| Selling, general and administrative expenses |  |  |  |
| Service cost | 1.5 | 1.6 | 3.9 |
| Total selling, general and administrative expenses | 1.5 | 1.6 | 3.9 |
| Other expense |  |  |  |
| Pension earnings, interest and deferrals | 0.1 | 2.1 | 23.8 |
| Curtailment charge | — | — | 0.5 |
| Total other expense | 0.1 | 2.1 | 24.3 |
| Net pension expense | $11.6 | $14.2 | $48.4 |
Paragraphs:
The service cost component of net pension expense represents the estimated cost of future pension liabilities earned associated with active employees. The pension earnings, interest and deferrals (“pension EID”) is comprised of the expected return on plan assets, interest costs on the projected benefit obligations of the plans and amortization of actuarial gains and losses and prior service costs.
Net pension expense is recorded in accounts that are included in both the cost of sales and selling, general and administrative expenses based on the function of the associated employees and in other income (expense), net. The following is a summary of the classification of net pension expense for the years ended June 30, 2019, 2018 and 2017:
As of June 30, 2019 and 2018, amounts capitalized in gross inventory were $1.7 million and $1.7 million, respectively.
Question:
How is net pension expense recorded?
Answer: recorded in accounts that are included in both the cost of sales and selling, general and administrative expenses based on the function of the associated employees and in other income (expense), net.