LabCorp 2014 Annual Report Download - page 119

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F-40
of a percentage point change on the aggregate of the service cost and interest cost components of the 2014 post-retirement benefit
costs results in an increase of $0.3 or decrease of $0.2. The plan amendment in 2014 reflects the shift of Medicare-eligible
participants to private exchanges and updating the mortality assumption to the RP-2014 Mortality Tables. The plan amendment
in 2013 reflects the impact of shifting from projection scale AA to projection scale BB for both the RP-2000 Combined Healthy
Mortality Table and the RP-2000 Disabled Mortality Table.
The following assumed benefit payments under the Company's post-retirement benefit plan, which reflect expected future
service, as appropriate, and were used in the calculation of projected benefit obligations, are expected to be paid as follows:
2015 $ 2.3
2016 2.3
2017 2.2
2018 2.2
2019 2.2
Years 2020-2024 10.3
Deferred Compensation Plan
In 2001, the Board approved the Deferred Compensation Plan ("DCP") under which certain of the Company's executives, may
elect to defer up to 100.0% of their annual cash incentive pay and/or up to 50.0% of their annual base salary and/or eligible
commissions subject to annual limits established by the federal government. The DCP provides executives a tax efficient strategy
for retirement savings and capital accumulation without significant cost to the Company. The Company makes no contributions
to the DCP. Amounts deferred by a participant are credited to a bookkeeping account maintained on behalf of each participant,
which is used for measurement and determination of amounts to be paid to a participant, or his or her designated beneficiary,
pursuant to the terms of the DCP. The amounts accrued under this plan were $43.4 and $36.3 at December 31, 2014 and 2013,
respectively. Deferred amounts are the Company's general unsecured obligations and are subject to claims by the Company's
creditors. The Company's general assets may be used to fund obligations and pay DCP benefits.
17. FAIR VALUE MEASUREMENTS
The Company’s population of financial assets and liabilities subject to fair value measurements as of December 31, 2014 and
2013 are as follows:
Fair Value Measurements as of
December 31, 2014
Fair Value as of
December 31,
2014
Using Fair Value Hierarchy
Level 1 Level 2 Level 3
Noncontrolling interest put $ 17.7 $ — $ 17.7 $ —
Interest rate swap 18.5 — 18.5 —
Cash surrender value of life insurance policies 41.9 — 41.9 —
Deferred compensation liability 43.4 — 43.4 —
Fair Value Measurements as of
December 31, 2013
Fair Value as of
December 31,
2013
Using Fair Value Hierarchy
Level 1 Level 2 Level 3
Noncontrolling interest put $ 19.4 $ — $ 19.4 $ —
Cash surrender value of life insurance policies 35.1 — 35.1 —
Deferred compensation liability 36.3 — 36.3 —
LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in millions, except per share data)