LabCorp 2015 Annual Report Download - page 125
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Index
Amounts included in accumulated other comprehensive earnings consist of unamortized net loss of $9.3. The accumulated other comprehensive earnings
that are expected to be recognized as components of the post-retirement medical plan costs during 2016 are $10.4 related to amortization of the net gain
resulting from the shift of Medicare-eligible participants to private exchanges.
A summary of the changes in the accumulated post-retirement benefit obligation follows:
2015
2014
Balance at January 1 $ 28.9
$ 62.7
Service cost for benefits earned 0.1
0.2
Interest cost on benefit obligation 1.0
1.8
Participants contributions —
0.2
Actuarial loss (3.5)
(7.2)
Benefits paid (1.8)
(2.5)
Plan amendment (3.3)
(26.3)
Balance at December 31 $ 21.4
$ 28.9
Recorded as:
Accrued expenses and other $ 1.8
$ 2.2
Other liabilities 19.6
26.7
$ 21.4
$ 28.9
The weighted-average discount rates used in the calculation of the accumulated post-retirement benefit obligation were 4.4% and 4.0% as of
December 31, 2015 and 2014, respectively. The healthcare cost trend rate was removed due to the expectation of future funding to be at the same level as the
previous year's funding.
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:
2016 $ 1.8
2017 1.7
2018 1.6
2019 1.6
2020 1.5
Years 2021-2025 7.1
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 U.S.
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 $46.4 and $43.4 at December 31, 2015 and 2014, 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.
F-45