LabCorp 2014 Annual Report Download - page 114

F-35
Operating
2015 $ 109.9
2016 80.9
2017 58.8
2018 33.3
2019 15.5
Thereafter 37.4
Total minimum lease payments 335.8
Less:
Amounts included in restructuring and acquisition related accruals (5.2)
Non-cancelable sub-lease income —
Total minimum operating lease payments $ 330.6
Rental expense, which includes rent for real estate, equipment and automobiles under operating leases, amounted to $239.2,
$235.7 and $226.0 for the years ended December 31, 2014, 2013 and 2012, respectively.
16. PENSION AND POSTRETIREMENT PLANS
Pension Plans
The Company has a defined benefit retirement plan (the "Company Plan") and a nonqualified supplemental retirement plan
(the “PEP”). Both plans have been closed to new participants since December 31, 2009. Employees participating in the Company
Plan and the PEP no longer earn service-based credits, but continue to earn interest credits. In addition, effective January 1, 2010,
all employees eligible for the defined contribution retirement plan (the “401K Plan”) receive a minimum 3% non-elective
contribution (“NEC”) concurrent with each payroll period. Employees are not required to make a contribution to the 401K Plan
to receive the NEC. The NEC is non-forfeitable and vests immediately. The 401K Plan also permits discretionary contributions
by the Company of up to 1% and up to 3% of pay for eligible employees based on service.
The Company’s 401K Plan covers substantially all employees. Prior to 2010, Company contributions to the plan were based
on a percentage of employee contributions. In 2013, 2012 and 2011, the Company made non-elective and discretionary contributions
to the plan. Non-elective and discretionary contributions were $51.6, $49.4 and $49.0 in 2014, 2013 and 2012, respectively.
In addition, the Company Plan covers substantially all employees hired prior to December 31, 2009. The benefits to be paid
under the Company Plan are based on years of credited service through December 31, 2009, interest credits and average
compensation. The Company’s policy is to fund the Company Plan with at least the minimum amount required by applicable
regulations. The Company made contributions to the Company Plan of $12.4, $8.4 and $11.3 in 2014, 2013 and 2012, respectively.
The PEP covers the Company’s senior management group. Prior to 2010, the PEP provided for the payment of the difference,
if any, between the amount of any maximum limitation on annual benefit payments under the Employee Retirement Income
Security Act of 1974 and the annual benefit that would be payable under the Company Plan but for such limitation. Effective
January 1, 2010, employees participating in the PEP no longer earn service-based credits. The PEP is an unfunded plan.
Projected pension expense for the Company Plan and the PEP is expected to increase to $11.6 in 2015. This amount excludes
any accelerated recognition of pension cost due to the total lump-sum payouts exceeding certain components of net periodic
pension cost in a fiscal year. If such levels were to be met in 2015, the Company projects that it would result in additional pension
expense of several million dollars. The actual amount would be determined in the fiscal quarter when the lump-sum payments
cross the threshold and would be based upon the plan's funded status and actuarial assumptions in effect at that time.
The Company plans to make contributions of $11.1 to the Company Plan during 2015.
The effect on operations for both the Company Plan and the PEP are summarized as follows:
LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in millions, except per share data)