LabCorp 2014 Annual Report Download - page 116

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F-37
2014 2013 2012
Discount rate 4.0% 4.8% 4.0%
Expected long term rate of return 7.0% 7.0% 7.0%
The Company also updated the mortality assumption to the RP-2014 Mortality Tables in 2014 which increased the
Company's total projected obligation.
The Company maintains an investment policy for the management of the Company Plan’s assets. The objective of this policy
is to build a portfolio designed to achieve a balance between investment return and asset protection by investing in indexed funds
that are comprised of equities of high quality companies and in high quality fixed income securities which are broadly balanced
and represent all market sectors. The target allocations for plan assets are 50% equity securities, 45% fixed income securities and
5% in other assets. Equity securities primarily include investments in large-cap, mid-cap and small-cap companies located in the
U.S. and to a lesser extent international equities in developed and emerging countries. Fixed income securities primarily include
U.S. Treasury securities, mortgage-backed bonds and corporate bonds of companies from diversified industries. Other assets
include investments in commodities. The weighted average expected long-term rate of return for the Company Plan’s assets is as
follows:
Target
Allocation
Weighted
Average
Expected
Long-Term
Rate
of Return
Equity securities 50.0% 3.5%
Fixed income securities 45.0% 1.2%
Other assets 5.0% 0.3%
LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in millions, except per share data)