LabCorp 2015 Annual Report Download - page 122
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Index
U.K. Plans
German Plan
Funded status
$ 20.3
$ 23.6
Recorded as:
Accrued expenses and other
$ —
$ 0.2
Other liabilities
20.3
23.4
$ 20.3
$ 23.6
The Company contributed $6.6 in 2015 to the U.K. Plans and expected to contribute $17.1 in 2016. No contributions were made to the German plan
during 2015, nor are any contributions expected to be made in 2016 since the plan is unfunded.
The accumulated benefit obligation for the U.K. Plans and the German Plan was $215.1 and $20.6 at December 31, 2015, respectively.
U.K. Plans
German Plan
Net actuarial loss (gain)
$ 4.8
$ (5.7)
Less: Tax benefit (expense) (deferred tax asset)
(0.9)
1.8
Accumulated other comprehensive income impact
$ 3.9
$ (3.9)
Assumptions used to determine benefit obligations:
Discount rate
3.8%
2.5%
Salary increases
3.6%
2.0%
There is no net actuarial loss for the U.K. Plans and German Plan required to be amortized from accumulated other comprehensive income into net
periodic pension cost in 2016.
The investment policies for the U.K. Plans are set by the plan trustees, based upon the guidance of professional advisors and after consultation with the
Company, taking into consideration the plans’ liabilities and future funding levels. The trustees have set the long-term investment policy largely in
accordance with the asset allocation of a broadly diversified investment portfolio. Assets are generally invested within the target ranges as follows:
Equity securities
60.0% to 70.0%
Debt securities
10.0% to 15.0%
Annuities
10.0% to 20.0%
Real estate
—% to 10.0%
Other
—% to 5.0%
The weighted average asset allocation of the U.K. Plans as of December 31, 2015 by asset category is as follows:
December 31, 2015
Equity securities
68.0%
Debt securities
13.0%
Annuities
14.0%
Real estate
5.0%
Investments are made in pooled investment funds. Pooled investment fund managers are regulated by the Financial Conduct Authority in the U.K. and
operate under terms which contain restrictions on the way in which the portfolios are managed and require the managers to ensure that suitable internal
operating procedures are in place. The trustees have set performance objectives for each fund manager and routinely monitor and assess the managers’
performance against such objectives. Annuities represent annuity buy-in insurance policies purchased by the plan trustees from large, financially sound
insurers. The cash flows from the annuities are intended to match the plan’s obligations to specific groups of participants, typically those participants
currently receiving benefits.
The fair value of the Company’s U.K. Plans' assets as of December 31, 2015, by asset category, are as follows:
F-42