STOCK COMPENSATION PLANS

12 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

The following table shows the weighted average grant-date fair values of options issued during the respective year and the weighted average assumptions that the Company used to develop the fair value estimates:

	2015	2014	2013
Fair value per option	N/A	N/A	N/A
Valuation assumptions
Weighted average expected life (in years)	N/A	N/A	N/A
Risk free interest rate	N/A	N/A	N/A
Expected volatility	N/A	N/A	N/A
Expected dividend yield	N/A	N/A	N/A

The Company uses the Black-Scholes model to calculate the fair value of the employee’s purchase right. The fair value of the employee’s purchase right and the assumptions used in its calculation are as follows:

	2015			2014			2013
Fair value of the employee’s purchase right	$	21.95		$	19.48		$	17.22
Valuation assumptions
Risk free interest rate	0.3		%	0.1		%	0.1		%
Expected volatility	0.2			0.2			0.2
Expected dividend yield	—			—			—

STOCK COMPENSATION PLANS

STOCK COMPENSATION PLANS

Stock Incentive Plans

There are currently 10.2 shares authorized for issuance under the Laboratory Corporation of America Holdings 2012 Omnibus Incentive Plan and at December 31, 2015 there were 5.3 additional shares available for grant under the Plan. This Plan was approved by shareholders at the 2012 annual meeting. An additional 1.2 authorized shares were acquired with the Acquisition under the Covance 2014 Employee Equity Participation Plan and were utilized for the 2015 grant.

Stock Options

The following table summarizes grants of non-qualified options made by the Company to officers, key employees, and non-employee directors under all plans. Stock options are generally granted at an exercise price equal to or greater than the fair market price per share on the date of grant. Also, for each grant, options vest ratably over a period of three years on the anniversaries of the grant date, subject to their earlier expiration or termination.

Changes in options outstanding under the plans for the period indicated were as follows:

	Number of Options		Weighted-Average Exercise Price per Option		Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2014	3.3		$	81.07
Granted	—		—
Exercised	(1.0	)	80.88
Cancelled	—		—
Outstanding at December 31, 2015	2.3		$	81.14	5.0	$	95.9
Vested and expected to vest at December 31, 2015	2.3		$	81.14	5.0	$	95.9
Exercisable at December 31, 2015	2.3		$	81.14	5.0	$	95.9

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of 2015 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2015. The amount of intrinsic value will change based on the fair market value of the Company’s stock.

Cash received by the Company from option exercises, the actual tax benefit realized for the tax deductions and the aggregate intrinsic value of options exercised from option exercises under all share-based payment arrangements during the years ended December 31, 2015, 2014, and 2013 were as follows:

	2015		2014		2013
Cash received by the Company	$	82.6	$	98.5	$	158.0
Tax benefits realized	$	16.2	$	12.3	$	21.3
Aggregate intrinsic value	$	42.2	$	32.1	$	55.4

The following table summarizes information concerning currently outstanding and exercisable options.

Options Outstanding				Options Exercisable
Range of Exercise Prices	Number Outstanding	Weighted Average		Number Exercisable	Weighted Average Exercise Price
		Remaining Contractual Life	Average Exercise Price
$  6.80 - 59.37	0.0	0.3	$59.37	—	$59.37
$59.38 - 67.60	0.2	3.1	$60.35	0.2	$60.35
$67.61 - 75.63	0.6	3.7	$71.63	0.6	$71.63
$75.64 - 80.37	0.1	2.2	$79.59	0.1	$79.59
$80.38 - 98.49	1.4	5.8	$87.48	1.4	$87.48
	2.3	5.0	$81.14	2.3	$81.14

The following table shows the weighted average grant-date fair values of options issued during the respective year and the weighted average assumptions that the Company used to develop the fair value estimates:

	2015	2014	2013
Fair value per option	N/A	N/A	N/A
Valuation assumptions
Weighted average expected life (in years)	N/A	N/A	N/A
Risk free interest rate	N/A	N/A	N/A
Expected volatility	N/A	N/A	N/A
Expected dividend yield	N/A	N/A	N/A

The Black Scholes model incorporates assumptions to value stock-based awards. The risk-free interest rate for periods within the contractual life of the option is based on a zero-coupon U.S. government instrument over the contractual term of the equity instrument. Expected volatility of the Company’s stock is based on historical volatility of the Company’s stock. The Company uses historical data to calculate the expected life of the option. Groups of employees and non-employee directors that have similar exercise behavior with regard to option exercise timing and forfeiture rates are considered separately for valuation purposes. For 2015, 2014 and 2013, expense related to the Company’s stock option plan totaled $2.2, $6.9 and $14.5, respectively. The Company did not grant any options to employees during 2015 or 2014.

Restricted Stock, Restricted Stock Units and Performance Shares

The Company grants restricted stock, restricted stock units and performance shares (non-vested shares) to officers and key employees and grants restricted stock and restricted stock units to non-employee directors. Restricted stock and restricted stock units typically vest annually in equal one third increments beginning on the first anniversary of the grant. A performance share grant in 2013 represents a three-year award opportunity for the period 2013-2015, and if earned, vests fully (to the extent earned) in the first quarter of 2016. A performance share grant in 2014 represents a three-year award opportunity for the period of 2014-2016 and, if earned, vests fully (to the extent earned) in the first quarter of 2017. A performance share grant in 2015 represents a three-year award opportunity for the period of 2015-2017 and, if earned, vests fully (to the extent earned) in the first quarter of 2018. Performance share awards are subject to certain earnings per share, revenue, operating income, earnings before income taxes and total shareholder return targets, the achievement of which may increase or decrease the number of shares which the grantee earns and therefore receives upon vesting. Unearned restricted stock and performance share compensation is amortized to expense over the applicable vesting periods. For 2015, 2014 and 2013, total restricted stock, restricted stock unit and performance share compensation expense was $83.8, $34.8 and $19.3, respectively.

The following table shows a summary of non-vested shares for the year ended December 31, 2015:

	Number of Shares		Weighted-Average Grant Date Fair Value
Non-vested at January 1, 2015	1.1		$	91.30
Granted	0.8		123.61
Vested	(0.3	)	95.44
Canceled	(0.1	)	111.38
Non-vested at December 31, 2015	1.5		$	109.00

As of December 31, 2015, there was $95.6 of total unrecognized compensation cost related to non-vested restricted stock, restricted stock unit and performance share-based compensation arrangements granted under the Company's stock incentive plans. That cost is expected to be recognized over a weighted average period of 1.9 years.

Employee Stock Purchase Plan

The Company has an employee stock purchase plan, begun in 1997 and amended in 1999, 2004, 2008 and 2012, with 6.3 shares of common stock authorized for issuance. The plan permits substantially all employees to purchase a limited number of shares of Company stock at 85% of market value. The Company issues shares to participating employees semi-annually in January and July of each year. Approximately 0.2 shares were purchased by eligible employees in 2015, 2014 and 2013, respectively. For 2015, 2014 and 2013, expense related to the Company’s employee stock purchase plan was $4.1, $4.0 and $3.5, respectively.

The Company uses the Black-Scholes model to calculate the fair value of the employee’s purchase right. The fair value of the employee’s purchase right and the assumptions used in its calculation are as follows:

	2015			2014			2013
Fair value of the employee’s purchase right	$	21.95		$	19.48		$	17.22
Valuation assumptions
Risk free interest rate	0.3		%	0.1		%	0.1		%
Expected volatility	0.2			0.2			0.2
Expected dividend yield	—			—			—