LabCorp 2015 Annual Report Download - page 120
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Index
The following assumed benefit payments under the Company Plan and PEP, which were used in the calculation of projected benefit obligations, are
expected to be paid as follows:
2016 $ 26.1
2017 25.2
2018 24.7
2019 24.9
2020 24.7
Years 2021-2025 123.9
In addition to the PEP, as a result of the Acquisition, the Company also has a frozen non-qualified Supplemental Executive Retirement Plan (SERP). The
SERP, which is not funded, is intended to provide retirement benefits for certain employees who were executive officers of Covance prior to the Acquisition.
Benefit amounts are based upon years of service and compensation of the participating employees. The pension benefit obligation as of the Acquisition date
was $32.8. For the 2015 period, the beginning of the year is February 19, 2015, and the net periodic pension cost is for the ten months ended December 31,
2015. The components of the net periodic pension cost are as follows:
Year Ended
December 31, 2015
Service cost $ 0.2
Interest cost 0.9
Net amortization and deferral —
Curtailment gain (0.7)
Net periodic pension cost $ 0.4
Assumptions used to determine defined benefit plan cost
Discount rate 3.3%
Expected return on assets N/A
The change in the projected benefit obligation, the funded status of the plan and a reconciliation of such funded status to the amounts reported in the
consolidated balance sheet as of December 31, 2015 is as follows:
Balance at Acquisition Date $ 32.8
Service cost 0.2
Interest cost 0.9
Actuarial loss —
Gross benefits paid (2.3)
Curtailments (0.7)
Balance at December 31, 2015 30.9
Funded status $ 30.9
Recorded as:
Accrued expenses and other $ 20.1
Other liabilities 10.8
$ 30.9
The accumulated benefit obligation as of December 31, 2015 was $30.9.
The following assumed benefit payments under the SERP, which were used in the calculation of projected benefit obligations, are expected to be paid as
follows:
F-40