Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2013, Lacy received the following information:
| Projected Benefit Obligation |
($ in millions) |
| Balance, January 1 |
$ |
520 |
|
| Service cost |
|
76 |
|
| Interest cost (5%) |
|
26 |
|
| Benefits paid |
|
(77 |
) |
|
|
|
|
| Balance, December 31 |
$ |
545 |
|
|
|
|
|
|
| Plan Assets |
($ in millions) |
| Balance, January 1 |
$ |
390 |
|
| Actual return on plan assets |
|
43 |
|
| Contributions 2013 |
|
76 |
|
| Benefits paid |
|
(77 |
) |
|
|
|
|
| Balance, December 31 |
$ |
432 |
|
|
|
|
|
|
|
The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2013. At the end of 2013, Lacy amended the pension formula creating a prior service cost of $28 million.
|
| 1. |
Determine Lacy's pension expense for 2013. (Enter your answer in millions.)
|