As a result of the Covance acquisition, the Company sponsors two defined benefit pension plans for the benefit of its employees at two U.K. subsidiaries (U.K. Plans) and one defined benefit pension plan for the benefit of its employees at a German subsidiary

(German Plan), all of which are legacy plans of previously acquired companies. Benefit amounts for all three plans are based upon years of service and compensation. The German plan is unfunded while the U.K. pension plans are funded. The Company’s funding policy has been to contribute annually amounts at least equal to the local statutory funding requirements.



	U.K. Plans
	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Service cost for administrative expenses	$	0.8		$	0.9		$	1.6		$	1.8
Interest cost on benefit obligation	1.9			1.9			3.8			3.8
Expected return on plan assets	(2.8		)	(3.2		)	(5.7		)	(6.5		)
Defined benefit plan costs	$	(0.1	)	$	(0.4	)	$	(0.3	)	$	(0.9	)



	U.K. Plans
	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Assumptions used to determine defined benefit plan cost
Discount rate	2.9	%	2.5	%	2.9	%	2.5	%
Expected return on assets	4.5	%	4.5	%	4.5	%	4.5	%
Salary increases	3.6	%	3.6	%	3.6	%	3.6	%



	German Plan
	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Service cost for administrative expenses	$	0.3		$	0.3		$	0.6		$	0.6
Interest cost on benefit obligation	0.2			0.2			0.3			0.3
Defined benefit plan costs	$	0.5		$	0.5		$	0.9		$	0.9

Assumptions used to determine defined benefit plan cost
Discount rate	1.9		%	1.7		%	1.9		%	1.7		%
Expected return on assets	N/A			N/A			N/A			N/A
Salary increases	2.0		%	2.0		%	2.0		%	2.0		%

The effect on operations for the Company Plan and the PEP is summarized as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Service cost for administrative expenses	$	1.0		$	1.2		$	2.0		$	2.6
Interest cost on benefit obligation	3.5			3.2			7.0			6.5
Expected return on plan assets	(3.8		)	(4.1		)	(7.6		)	(8.2		)
Net amortization and deferral	2.6			3.1			5.2			5.9
Defined benefit plan costs	$	3.3		$	3.4		$	6.6		$	6.8

Pension And Postretirement Plans

PENSION AND POST-RETIREMENT PLANS

The Company has two defined contribution retirement plans (401K Plans) which cover substantially all U.S. employees. All employees eligible for the LabCorp 401K Plan receive a minimum 3% non-elective contribution concurrent with each payroll period. The 401K Plan also permits discretionary contributions by the Company of up to 1% and up to 3% of pay for eligible employees based on years of service with the Company. The cost of this plan was $12.9 and $15.8 for the three months ended June 30, 2019, and 2018, respectively, and was $37.1 and $31.8 for the six months ended June 30, 2019, and 2018, respectively. All of the Covance U.S. employees, including legacy Chiltern employees, are eligible to participate in the Covance 401K plan, which features a maximum 4.5% Company match, based upon a percentage of the employee’s contributions. Chiltern employees were previously eligible to participate in the Chiltern 401K plan, which featured a maximum 3.0% Company match, based upon a percentage of the employee's contributions. The Chiltern 401K plan merged into the Covance Plan effective January, 7, 2019. The Company incurred expense of $17.9 and $16.5 for the Covance 401K plan during the three months ended June 30, 2019, and 2018, respectively, and $37.8 and $35.3 during the six months ended June 30, 2019, and 2018, respectively. The Company also maintains several other immaterial 401K plans associated with companies acquired over the last several years.

The Company also maintains a frozen defined benefit retirement plan (Company Plan), which as of December 31, 2009, covered substantially all employees. The benefits to be paid under the Company Plan are based on years of credited service through December 31, 2009, and ongoing interest credits. Effective January 1, 2010, the Company Plan was closed to new participants. The Company’s policy is to fund the Company Plan with at least the minimum amount required by applicable regulations.

The Company maintains a second, unfunded, non-contributory, non-qualified defined benefit retirement plan (PEP), which as of December 31, 2009, covered substantially all of its senior management group. The PEP supplements the Company Plan and was closed to new participants effective January 1, 2010.

The effect on operations for the Company Plan and the PEP is summarized as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Service cost for administrative expenses	$	1.0		$	1.2		$	2.0		$	2.6
Interest cost on benefit obligation	3.5			3.2			7.0			6.5
Expected return on plan assets	(3.8		)	(4.1		)	(7.6		)	(8.2		)
Net amortization and deferral	2.6			3.1			5.2			5.9
Defined benefit plan costs	$	3.3		$	3.4		$	6.6		$	6.8

During the six months ended June 30, 2019, the Company made no contributions to the Company Plan.



	U.K. Plans
	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Service cost for administrative expenses	$	0.8		$	0.9		$	1.6		$	1.8
Interest cost on benefit obligation	1.9			1.9			3.8			3.8
Expected return on plan assets	(2.8		)	(3.2		)	(5.7		)	(6.5		)
Defined benefit plan costs	$	(0.1	)	$	(0.4	)	$	(0.3	)	$	(0.9	)



	U.K. Plans
	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Assumptions used to determine defined benefit plan cost
Discount rate	2.9	%	2.5	%	2.9	%	2.5	%
Expected return on assets	4.5	%	4.5	%	4.5	%	4.5	%
Salary increases	3.6	%	3.6	%	3.6	%	3.6	%



	German Plan
	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Service cost for administrative expenses	$	0.3		$	0.3		$	0.6		$	0.6
Interest cost on benefit obligation	0.2			0.2			0.3			0.3
Defined benefit plan costs	$	0.5		$	0.5		$	0.9		$	0.9

Assumptions used to determine defined benefit plan cost
Discount rate	1.9		%	1.7		%	1.9		%	1.7		%
Expected return on assets	N/A			N/A			N/A			N/A
Salary increases	2.0		%	2.0		%	2.0		%	2.0		%

As a result of the Envigo acquisition, the Company assumed a defined benefit pension plan for the benefit of Envigo's U.K. employees (the Envigo plan), which is a legacy plan of a company previously acquired by Envigo. The Envigo plan is a funded plan that is closed to future accrual. The related net pension obligation of $56.8, based on the preliminary valuation of acquired assets and assumed liabilities, is reported under Other liabilities in the Condensed Consolidated Balance Sheet as of June 30, 2019. The Company’s funding policy has been to make annual contributions to the plan of amounts that are at least equal to the local statutory funding requirements.

Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation

56.8

$ 56.8

Pension Plan [Member]

Defined Benefit Plan and Postretirement Plan Disclosure

Service cost for benefits earned

1.0

1.2

2.0

2.6

Interest cost on benefit obligation

3.5