All employees eligible for the LCD defined-contribution retirement plan (401K Plan) receive a minimum 3% non-elective contribution (NEC) concurrent with each payroll period. Employees are not required to make a contribution to the LCD 401K Plan to receive the NEC. The NEC is non-forfeitable and vests immediately. The LCD 401K Plan also permits discretionary contributions by the Company of 1% and 3% of pay for eligible employees based on service. In 2019, 2018, and 2017, non-elective and discretionary contributions were $52.3, $65.0 and $58.1, while total expense was $65.6, $63.6 and $59.1, respectively.

All of the CDD U.S. employees are eligible to participate in the CDD 401K plan, which is available on a voluntary basis and 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% Company match, based upon a percentage of the employee's contributions. The Chiltern 401K plan merged into the CDD 401K plan effective January 7, 2019. The Company incurred expense of $73.9, $66.3, and $58.4 for the CDD 401K Plan in 2019, 2018 and 2017, respectively.

The Company also maintains several other small 401K plans associated with companies acquired over the last several years.

Pension Plans

The Company has a defined-benefit retirement plan (Company Plan) and a nonqualified supplemental retirement plan (PEP). Both plans have been closed to new participants since December 31, 2009. Employees participating in the Company Plan and the PEP no longer earn service-based credits, but continue to earn interest credits.

The Company Plan covers substantially all employees employed prior to December 31, 2009. The benefits to be paid under the Company Plan are based on years of credited service through December 31, 2009, interest credits and average compensation. The Company’s policy is to fund the Company Plan with at least the minimum amount required by applicable regulations. The Company made contributions to the Company Plan of $0.0, $28.9 and $16.0 in 2019, 2018 and 2017, respectively.

The PEP covers a portion of the Company’s senior management group. Prior to 2010, the PEP provided for the payment of the difference, if any, between the amount of any maximum limitation on annual benefit payments under the Employee Retirement Income Security Act of 1974 and the annual benefit that would be payable under the Company Plan but for such limitation. Effective January 1, 2010, employees participating in the PEP no longer earn service-based credits. The PEP is an unfunded plan.

Projected pension expense for the Company Plan and the PEP is expected to decrease to $11.8 in 2020. This amount excludes any accelerated recognition of pension cost due to the total lump-sum payouts exceeding certain components of net periodic pension cost in a fiscal year. If such levels were to be met in 2020, the Company projects that it would result in additional pension expense of several million dollars. The actual amount would be determined in the fiscal quarter when the lump-sum payments cross the threshold and would be based upon the plan's funded status and actuarial assumptions in effect at that time.

The Company plans to make contributions of $2.2 to the Company Plan and the PEP during 2020.

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



	Year ended December 31,
	2019			2018			2017
Service cost for benefits earned	$	4.1		$	5.2		$	5.5
Interest cost on benefit obligation	13.9			13.0			14.4
Expected return on plan assets	(15.1		)	(16.5		)	(16.3		)
Net amortization and deferral	10.9			11.7			11.0
Settlements	—			7.5			—
Defined-benefit plan costs	$	13.8		$	20.9		$	14.6

Amounts included in accumulated other comprehensive earnings consist of unamortized net loss of $111.2. The accumulated other comprehensive earnings that are expected to be recognized as components of the defined-benefit plan costs during 2020 are $10.2 related to amortization of the net loss. For the year ended December 31, 2018, the Company recorded a pension settlement charge of $7.5 recorded in Other, net on the Consolidated Statement of Operations as a result of lump sum distributions exceeding $16.5 threshold level for 2018.

A summary of the changes in the projected benefit obligations of the Company Plan and the PEP are summarized as follows:



	2019			2018
Balance at January 1	$	334.6		$	368.0
Service cost	4.1			5.2
Interest cost	13.9			13.0
Actuarial (gain) loss	33.3			(21.9		)
Benefits and administrative expenses paid	(30.4		)	(33.9		)
Merger of Covance SERP	—			4.2
Balance at December 31	$	355.5		$	334.6

The Accumulated Benefit Obligation was $355.5 and $334.6 at December 31, 2019 and 2018, respectively.

A summary of the changes in the fair value of plan assets follows:



	2019			2018
Fair value of plan assets at beginning of year	$	246.9		$	263.7
Actual return on plan assets	43.4			(14.3		)
Employer contributions	2.2			31.4
Benefits and administrative expenses paid	(30.4		)	(33.9		)
Fair value of plan assets at end of year	$	262.1		$	246.9

The net funded status of the Company Plan and the PEP at December 31:



	2019		2018
Funded status	$	93.4	$	87.6

Recorded as:
Accrued expenses and other	$	2.2	$	2.1
Other liabilities	91.2		85.5
	$	93.4	$	87.6

Weighted average assumptions used in the accounting for the Company Plan and the PEP are summarized as follows:



	2019		2018		2017
Discount rate for the Company Plan	3.3	%	4.4	%	3.7	%
Discount rate for the PEP	3.4	%	4.4	%	3.7	%
Expected long term rate of return for the Company Plan	6.5	%	6.5	%	6.8	%

The Company used the RP-2014 Mortality Tables to estimate life expectancy. The weighted average expected long-term rate of return on assets of the Company Plan and PEP is based on the target asset allocation and the average rate of growth expected for the asset classes invested. The rate of expected growth is derived from a combination of historic returns, current market indicators, the expected risk premium for each asset class over the risk-free rate, and the opinion of professional advisors.

The Company maintains an investment policy for the management of the Company Plan’s assets. The objective of this policy is to build a portfolio designed to achieve a balance between investment return and asset protection by investing in indexed funds that are comprised of equities of high quality companies and in high quality fixed income securities which are broadly balanced and represent all market sectors. The target allocations for plan assets are 50% equity securities, 43% fixed income securities and 7% in other assets. Equity securities primarily include investments in large-cap, mid-cap and small-cap companies located in the U.S. and to a lesser extent international equities in developed and emerging countries. Fixed income securities primarily include U.S. Treasury securities, mortgage-backed bonds and corporate bonds of companies from diversified industries. Other assets include investments in real estate. The weighted average expected long-term rate of return for the Company Plan’s assets is as follows:



	Target Allocation		Weighted Average Expected Long-Term Rate of Return
Equity securities	50.0	%	3.3	%
Fixed income securities	43.0	%	2.8	%
Other assets	7.0	%	0.4	%

The fair values of the Company Plan’s assets at December 31, 2019, and 2018, by asset category are as follows:



			Fair Value Measurements as of
			December 31, 2019
	Fair Value as of December 31, 2019		Using Fair Value Hierarchy
Asset Category	Fair Value as of December 31, 2019		Level 1		Level 2		Level 3
Cash	$	4.3	$	4.3	$	—	$	—
Equity securities:
U.S. large cap - blend (a)	61.1		—		61.1		—
U.S. mid cap - blend (b)	23.8		—		23.8		—
U.S. small cap - blend (c)	8.5		—		8.5		—
International equity - blend (d)	40.6		—		40.6		—
Real estate (e)	12.7		—		12.7		—
Fixed income securities:
U.S. fixed income (f)	111.1		—		111.1		—
U.S inflation protection income (g)	—		—		—		—
Total fair value of the Company Plan’s assets	$	262.1	$	4.3	$	257.8	$	—



			Fair Value Measurements as of
			December 31, 2018
	Fair Value as of December 31, 2018		Using Fair Value Hierarchy
Asset Category	Fair Value as of December 31, 2018		Level 1		Level 2		Level 3
Cash	$	7.8	$	7.8	$	—	$	—
Equity securities:
U.S. large cap - blend (a)	54.2		—		54.2		—
U.S. mid cap - blend (b)	20.4		—		20.4		—
U.S. small cap - blend (c)	6.4		—		6.4		—
International equity - blend (d)	36.4		—		36.4		—
Commodities index (h)	11.8		—		11.8		—
Fixed income securities:
U.S. fixed income (f)	103.5		—		103.5		—
U.S inflation protection income (g)	6.4		—		6.4		—
Total fair value of the Company Plan’s assets	$	246.9	$	7.8	$	239.1	$	—


a)	This category represents an equity index fund not actively managed that tracks the S&P 500 Index.


b)	This category represents an equity index fund not actively managed that tracks the S&P mid-cap 400 Index.


c)	This category represents an equity index fund not actively managed that tracks the Russell 2000 Index.


d)	This category represents an equity index fund not actively managed that tracks the MSCI ACWI ex USA Index.


e)	This category represents a real estate index fund not actively managed that tracks the Vanguard REIT Index.


f)	This category primarily represents bond index funds not actively managed that track the Northern Trust U.S. Aggregate Index as well as an actively managed strategy which utilizes the Metropolitan West Total Return Bond Index as its primary prospectus benchmark.


g)	This category primarily represents a bond index fund not actively managed that tracks the Northern Trust U.S. TIPS Index.


h)	This category represents a commodities index fund not actively managed that tracks the Dow Jones - UBS Commodity Index.

The following estimated 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:



2020	$	27.6
2021	27.2
2022	26.8
2023	25.9
2024	25.2
Years 2025 and thereafter	115.1

In addition to the PEP, as a result of the Covance 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. As of December 31, 2018, the SERP was combined with the PEP.

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. Plans are funded. The Company’s funding policy has been to contribute annually a fixed percentage of the eligible employee's salary, and additional amounts, at least equal to the local statutory funding requirements. All plans have a measurement date of December 31.

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 $46.6, based on the preliminary valuation of acquired assets and assumed liabilities, is reported under Other liabilities in the Consolidated Balance Sheet as of December 31, 2019. The Company’s funding policy has been to contribute amounts at least equal to the local statutory funding requirements. The Envigo plan has a measurement date of December 31. The U.K. Plans disclosures below are inclusive of the Envigo plan for 2019.

The components of the defined-benefit plan costs for these plans for 2019 and 2018 are as follows:



	U.K. Plans
	Year Ended December 31, 2019			Year Ended December 31, 2018
Service cost	$	4.6		$	4.8
Interest cost	10.3			7.4
Expected return on plan assets	(15.0		)	(12.6		)
Expected participant contributions	(1.2		)	(1.3		)
Defined-benefit plan costs	$	(1.3	)	$	(1.7	)

Assumptions used to determine defined-benefit plan cost (Excluding Envigo Plan):
Discount rate	2.9		%	2.5		%
Expected return on assets	4.4		%	4.5		%
Salary increases	3.6		%	3.6		%

Assumptions used to determine defined-benefit plan cost (Envigo Plan):
Discount rate	2.3		%
Expected return on assets	3.9		%



	German Plan
	Year Ended December 31, 2019			Year Ended December 31, 2018
Service cost	$	1.1		$	1.2
Interest cost	0.6			0.6
Defined-benefit plan costs	$	1.7		$	1.8

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

The weighted average expected long-term rate of return on assets of the U.K Plans is based on the target asset allocation and the average rate of growth expected for the asset classes invested. The rate of expected growth is derived from a combination of historic returns, current market indicators, the expected risk premium for each asset class over the risk-free rate, and the opinion of professional advisors.

The change in the projected benefit obligation and plan assets, 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, 2019, and December 31, 2018, is as follows:



Change in Projected Benefit Obligation:	U.K. Plans
	2019			2018
Balance at beginning of year	$	260.1		$	303.4
Balance of acquired subsidiary at acquisition date	215.4			—
Service cost	4.6			4.8
Interest cost	10.3			7.4
Actuarial (gain) loss	64.1			(34.9		)
Benefits paid	(11.3		)	(6.3		)
Plan amendments	—			1.4
Foreign currency exchange rate changes	20.8			(15.7		)
Plan curtailment	(16.1		)	—
Balance at end of year	$	547.9		$	260.1



Change in Projected Benefit Obligation:	German Plan
	2019			2018
Balance at beginning of year	$	34.0		$	35.7
Service cost	1.1			1.2
Interest cost	0.6			0.6
Actuarial (gain) loss	8.2			(1.7		)
Benefits paid	(0.3		)	(0.2		)
Foreign currency exchange rate changes	(0.8		)	(1.6		)
Balance at end of year	$	42.8		$	34.0



Change in Fair Value of Assets:	U.K. Plans
	2019			2018
Balance at beginning of year	$	254.6		$	281.9
Plan assets of acquired subsidiary at acquisition date	168.3			—
Company contributions	11.4			6.5
Participant contributions	1.3			1.3
Actual return on assets	48.8			(13.6		)
Benefits paid	(11.3		)	(6.3		)
Foreign currency exchange rate changes	18.6			(15.2		)
Fair value of plan assets at end of year	$	491.7		$	254.6



	U.K. Plans
	2019		2018
Funded status	$	56.3	$	5.6
Recorded as:
Other liabilities	56.3		5.6
	$	56.3	$	5.6



	German Plan
	2019		2018
Funded status	$	42.8	$	34.0
Recorded as:
Accrued expenses and other	$	0.5	$	0.3
Other liabilities	42.3		33.7
	$	42.8	$	34.0

On December 31, 2019, the U.K. plans were closed to future accrual, which resulted in an estimated reduction in the projected benefit obligation of the plans of $16.1. The reduction in the projected benefit obligation due to the plan revisions resulted in a

curtailment gain, which was recorded as a reduction to the unrecognized actuarial losses present in accumulated other comprehensive income as of December 31, 2019.

The Company contributed $11.4 in 2019 to the U.K. Plans and expects to contribute $13.8 in 2020. No contributions were made to the German plan during 2019, nor are any contributions expected to be made in 2020, as the plan is unfunded.

The accumulated benefit obligation for the U.K. Plans and the German Plan was $547.9 and $37.8 at December 31, 2019, respectively. The accumulated benefit obligation for the U.K. Plans and the German Plan was $223.8 and $30.1 at December 31, 2018, respectively.

The amounts recognized in accumulated other comprehensive income for the year ended December 31, 2019, and December 31, 2018, is as follows:



	U.K. Plans
	2019			2018
Net actuarial loss	$	24.4		$	10.1
Less: Tax benefit (deferred tax asset)	(4.2		)	(1.7		)
Accumulated other comprehensive income impact	$	20.2		$	8.4

Assumptions used to determine benefit obligations:
Discount rate	2.0		%	2.9		%
Salary increases (excludes Envigo plan at 0%)	3.5		%	3.6		%



	German Plan
	2019			2018
Net actuarial loss/(gain)	$	7.1		$	(1.0	)
Less: Tax expense (deferred tax liability)	(2.2		)	0.3
Accumulated other comprehensive income impact	$	4.9		$	(0.7	)

Assumptions used to determine benefit obligations:
Discount rate	0.9		%	1.9		%
Salary increases	2.0		%	2.0		%

The net actuarial loss for the U.K and German pension plans required to be amortized from accumulated other comprehensive income into net periodic pension cost in 2020 is expected to be $0.1 and $0.3, respectively.

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 for the U.K. Plans are generally invested within the target ranges as follows:



	Legacy U.K. Plans			Envigo Plan
Equity securities	60.0%	to	70.0%	20.0	%	to	30.0	%
Debt securities	10.0%	to	20.0%	60.0	%	to	70.0	%
Annuities	10.0%	to	20.0%	—	%	to	—	%
Real estate	—%	to	10.0%	5.0	%	to	15.0	%
Other	—%	to	5.0%	—	%	to	5.0	%

The weighted average asset allocation of the U.K. Pension Plans as of December 31, 2019, by asset category is as follows:



	December 31, 2019
	Legacy U.K. Plans		Envigo Plan
Equity securities	64.0	%	25.0	%
Debt securities	21.0	%	65.0	%
Annuities	10.0	%	—	%
Real estate	4.0	%	9.0	%
Other	1.0	%	1.0	%

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, 2019, and December 31, 2018, by asset category, are as follows:



			Fair Value Measurements as of
			December 31, 2019
	December 31, 2019		Using Fair Value Hierarchy
Asset Category	December 31, 2019		Level 1		Level 2		Level 3
Cash	$	2.6	$	2.6	$	—	$	—
Mutual funds (a)	458.5		—		458.5		—
Annuities (b)	30.6		—		—		30.6
Total fair value of the Company Plan’s assets	$	491.7	$	2.6	$	458.5	$	30.6



			Fair Value Measurements as of
			December 31, 2018
	December 31, 2018		Using Fair Value Hierarchy
Asset Category	December 31, 2018		Level 1		Level 2		Level 3
Cash	$	0.7	$	0.7	$	—	$	—
Mutual funds (a)	226.6		—		226.6		—
Annuities (b)	27.3		—		—		27.3
Total fair value of the Company Plan’s assets	$	254.6	$	0.7	$	226.6	$	27.3

Mutual funds represent pooled investment vehicles offered by investment managers, which are generally comprised of investments in equities, bonds, property and cash. The plans’ trustees hold units in these funds, the value of which is determined by the number of units held multiplied by the unit price calculated by the investment managers. That unit price is derived based on the market value of the securities that comprise the fund, which are determined by quoted prices in active markets. No element of the valuation is based on inputs made by the plans’ trustees.

Annuities represent annuity buy-in insurance policies, whereby the insurer pays the pension payments for the lifetime of the members covered. The annuities are assets of the plan and payments from the insurer are made to the plans’ trustees, who then use those proceeds to pay the pensioners. The cash flows from the annuities are intended to effectively match the payments to the pensioners covered by the policy. As such, these assets are valued actuarially based upon the value of the liabilities with which they are associated. As the valuation of these assets is judgmental, and there are no observable inputs associated with the valuation, these assets are classified as Level 3 in the fair value hierarchy.



Fair Value Measurement of Level 3 Pension Assets	Annuities
Balance at January 1, 2018	$	31.5
Actual return on plan assets	(4.2		)
Balance at December 31, 2018	27.3
Actual return on plan assets	3.3
Balance at December 31, 2019	$	30.6

Expected future benefit payments are as follows:



	U.K. Plans		German Plan
2020	$	13.7	$	0.5
2021	14.9		0.5
2022	16.1		0.6
2023	16.7		0.6
2024	18.0		0.7
Years 2025 and thereafter	95.7		3.6

Post-employment Retiree Health and Welfare Plan

As a result of the Covance acquisition, the Company sponsors a post-employment retiree health and welfare plan for the benefit of eligible employees at certain U.S. subsidiaries who retire after satisfying service and age requirements. This plan is funded on a pay-as-you-go basis and the cost of providing these benefits is shared with the retirees.

Post-retirement Medical Plan

The Company assumed obligations under a subsidiary's post-retirement medical plan. Coverage under this plan is restricted to a limited number of existing employees of the subsidiary. This plan is unfunded and the Company’s policy is to fund benefits as claims are incurred. The effect on operations of the post-retirement medical plan is shown in the following table:



	Year ended December 31,
	2019		2018			2017
Service cost for benefits earned	$	—	$	—		$	—
Interest cost on benefit obligation	0.3		0.3			0.3
Net amortization and deferral	0.4		(1.3		)	(6.7		)
Post-retirement medical plan costs	$	0.7	$	(1.0	)	$	(6.4	)

Amounts included in accumulated other comprehensive earnings consist of unamortized net loss of $2.0. The accumulated other comprehensive earnings that are expected to be recognized as components of the post-retirement medical plan costs during 2020 are $0.3 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:



	2019			2018
Balance at January 1	$	6.9		$	8.6
Interest cost on benefit obligation	0.3			0.3
Actuarial loss	—			(1.2		)
Benefits paid	(0.7		)	(0.8		)
Balance at December 31	$	6.5		$	6.9

Recorded as:
Accrued expenses and other	$	0.8		$	0.9
Other liabilities	5.7			6.0
	$	6.5		$	6.9

The weighted-average discount rates used in the calculation of the accumulated post-retirement benefit obligation were 3.2% and 4.2% as of December 31, 2019, and 2018, 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 which were used in the calculation of projected benefit obligations, are expected to be paid as follows:



2020	$	0.8
2021	0.8
2022	0.8
2023	0.7
2024	0.7
Years 2025 and thereafter	1.9

Deferred Compensation Plan

The Company has a Deferred Compensation Plan (DCP) under which certain of its 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 $76.7 and $64.2 at December 31, 2019, and 2018, 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.

Schedule of Defined Benefit Plans Disclosures [Table Text Block]



Change in Projected Benefit Obligation:	U.K. Plans
	2019			2018
Balance at beginning of year	$	260.1		$	303.4
Balance of acquired subsidiary at acquisition date	215.4			—
Service cost	4.6			4.8
Interest cost	10.3			7.4
Actuarial (gain) loss	64.1			(34.9		)
Benefits paid	(11.3		)	(6.3		)
Plan amendments	—			1.4
Foreign currency exchange rate changes	20.8			(15.7		)
Plan curtailment	(16.1		)	—
Balance at end of year	$	547.9		$	260.1



Change in Projected Benefit Obligation:	German Plan
	2019			2018
Balance at beginning of year	$	34.0		$	35.7
Service cost	1.1			1.2
Interest cost	0.6			0.6
Actuarial (gain) loss	8.2			(1.7		)
Benefits paid	(0.3		)	(0.2		)
Foreign currency exchange rate changes	(0.8		)	(1.6		)
Balance at end of year	$	42.8		$	34.0



	Year ended December 31,
	2019		2018			2017
Service cost for benefits earned	$	—	$	—		$	—
Interest cost on benefit obligation	0.3		0.3			0.3
Net amortization and deferral	0.4		(1.3		)	(6.7		)
Post-retirement medical plan costs	$	0.7	$	(1.0	)	$	(6.4	)

The components of the defined-benefit plan costs for these plans for 2019 and 2018 are as follows:



	U.K. Plans
	Year Ended December 31, 2019			Year Ended December 31, 2018
Service cost	$	4.6		$	4.8
Interest cost	10.3			7.4
Expected return on plan assets	(15.0		)	(12.6		)
Expected participant contributions	(1.2		)	(1.3		)
Defined-benefit plan costs	$	(1.3	)	$	(1.7	)

Assumptions used to determine defined-benefit plan cost (Excluding Envigo Plan):
Discount rate	2.9		%	2.5		%
Expected return on assets	4.4		%	4.5		%
Salary increases	3.6		%	3.6		%

Assumptions used to determine defined-benefit plan cost (Envigo Plan):
Discount rate	2.3		%
Expected return on assets	3.9		%



	German Plan
	Year Ended December 31, 2019			Year Ended December 31, 2018
Service cost	$	1.1		$	1.2
Interest cost	0.6			0.6
Defined-benefit plan costs	$	1.7		$	1.8

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

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



	Year ended December 31,
	2019			2018			2017
Service cost for benefits earned	$	4.1		$	5.2		$	5.5
Interest cost on benefit obligation	13.9			13.0			14.4
Expected return on plan assets	(15.1		)	(16.5		)	(16.3		)
Net amortization and deferral	10.9			11.7			11.0
Settlements	—			7.5			—
Defined-benefit plan costs	$	13.8		$	20.9		$	14.6

A summary of the changes in the projected benefit obligations of the Company Plan and the PEP are summarized as follows:



	2019			2018
Balance at January 1	$	334.6		$	368.0
Service cost	4.1			5.2
Interest cost	13.9			13.0
Actuarial (gain) loss	33.3			(21.9		)
Benefits and administrative expenses paid	(30.4		)	(33.9		)
Merger of Covance SERP	—			4.2
Balance at December 31	$	355.5		$	334.6

A summary of the changes in the accumulated post-retirement benefit obligation follows:



	2019			2018
Balance at January 1	$	6.9		$	8.6
Interest cost on benefit obligation	0.3			0.3
Actuarial loss	—			(1.2		)
Benefits paid	(0.7		)	(0.8		)
Balance at December 31	$	6.5		$	6.9

Recorded as:
Accrued expenses and other	$	0.8		$	0.9
Other liabilities	5.7			6.0
	$	6.5		$	6.9

Schedule of Changes in Fair Value of Plan Assets [Table Text Block]

A summary of the changes in the fair value of plan assets follows:



	2019			2018
Fair value of plan assets at beginning of year	$	246.9		$	263.7
Actual return on plan assets	43.4			(14.3		)
Employer contributions	2.2			31.4
Benefits and administrative expenses paid	(30.4		)	(33.9		)
Fair value of plan assets at end of year	$	262.1		$	246.9



Change in Fair Value of Assets:	U.K. Plans
	2019			2018
Balance at beginning of year	$	254.6		$	281.9
Plan assets of acquired subsidiary at acquisition date	168.3			—
Company contributions	11.4			6.5
Participant contributions	1.3			1.3
Actual return on assets	48.8			(13.6		)
Benefits paid	(11.3		)	(6.3		)
Foreign currency exchange rate changes	18.6			(15.2		)
Fair value of plan assets at end of year	$	491.7		$	254.6

Schedule of Net Funded Status [Table Text Block]



	U.K. Plans
	2019		2018
Funded status	$	56.3	$	5.6
Recorded as:
Other liabilities	56.3		5.6
	$	56.3	$	5.6



	German Plan
	2019		2018
Funded status	$	42.8	$	34.0
Recorded as:
Accrued expenses and other	$	0.5	$	0.3
Other liabilities	42.3		33.7
	$	42.8	$	34.0

he net funded status of the Company Plan and the PEP at December 31:



	2019		2018
Funded status	$	93.4	$	87.6

Recorded as:
Accrued expenses and other	$	2.2	$	2.1
Other liabilities	91.2		85.5
	$	93.4	$	87.6

Defined Benefit Plan, Assumptions [Table Text Block]

Weighted average assumptions used in the accounting for the Company Plan and the PEP are summarized as follows:



	2019		2018		2017
Discount rate for the Company Plan	3.3	%	4.4	%	3.7	%
Discount rate for the PEP	3.4	%	4.4	%	3.7	%
Expected long term rate of return for the Company Plan	6.5	%	6.5	%	6.8	%

Defined Benefit Plan Fair Value Of Plan Assets By Category [Table Text Block]

The weighted average expected long-term rate of return for the Company Plan’s assets is as follows:



	Target Allocation		Weighted Average Expected Long-Term Rate of Return
Equity securities	50.0	%	3.3	%
Fixed income securities	43.0	%	2.8	%
Other assets	7.0	%	0.4	%

The fair values of the Company Plan’s assets at December 31, 2019, and 2018, by asset category are as follows:



			Fair Value Measurements as of
			December 31, 2019
	Fair Value as of December 31, 2019		Using Fair Value Hierarchy
Asset Category	Fair Value as of December 31, 2019		Level 1		Level 2		Level 3
Cash	$	4.3	$	4.3	$	—	$	—
Equity securities:
U.S. large cap - blend (a)	61.1		—		61.1		—
U.S. mid cap - blend (b)	23.8		—		23.8		—
U.S. small cap - blend (c)	8.5		—		8.5		—
International equity - blend (d)	40.6		—		40.6		—
Real estate (e)	12.7		—		12.7		—
Fixed income securities:
U.S. fixed income (f)	111.1		—		111.1		—
U.S inflation protection income (g)	—		—		—		—
Total fair value of the Company Plan’s assets	$	262.1	$	4.3	$	257.8	$	—



			Fair Value Measurements as of
			December 31, 2018
	Fair Value as of December 31, 2018		Using Fair Value Hierarchy
Asset Category	Fair Value as of December 31, 2018		Level 1		Level 2		Level 3
Cash	$	7.8	$	7.8	$	—	$	—
Equity securities:
U.S. large cap - blend (a)	54.2		—		54.2		—
U.S. mid cap - blend (b)	20.4		—		20.4		—
U.S. small cap - blend (c)	6.4		—		6.4		—
International equity - blend (d)	36.4		—		36.4		—
Commodities index (h)	11.8		—		11.8		—
Fixed income securities:
U.S. fixed income (f)	103.5		—		103.5		—
U.S inflation protection income (g)	6.4		—		6.4		—
Total fair value of the Company Plan’s assets	$	246.9	$	7.8	$	239.1	$	—


a)	This category represents an equity index fund not actively managed that tracks the S&P 500 Index.


b)	This category represents an equity index fund not actively managed that tracks the S&P mid-cap 400 Index.


c)	This category represents an equity index fund not actively managed that tracks the Russell 2000 Index.


d)	This category represents an equity index fund not actively managed that tracks the MSCI ACWI ex USA Index.


e)	This category represents a real estate index fund not actively managed that tracks the Vanguard REIT Index.


f)	This category primarily represents bond index funds not actively managed that track the Northern Trust U.S. Aggregate Index as well as an actively managed strategy which utilizes the Metropolitan West Total Return Bond Index as its primary prospectus benchmark.


g)	This category primarily represents a bond index fund not actively managed that tracks the Northern Trust U.S. TIPS Index.


h)	This category represents a commodities index fund not actively managed that tracks the Dow Jones - UBS Commodity Index.

The fair value of the Company’s U.K. Plans' assets as of December 31, 2019, and December 31, 2018, by asset category, are as follows:



			Fair Value Measurements as of
			December 31, 2019
	December 31, 2019		Using Fair Value Hierarchy
Asset Category	December 31, 2019		Level 1		Level 2		Level 3
Cash	$	2.6	$	2.6	$	—	$	—
Mutual funds (a)	458.5		—		458.5		—
Annuities (b)	30.6		—		—		30.6
Total fair value of the Company Plan’s assets	$	491.7	$	2.6	$	458.5	$	30.6



			Fair Value Measurements as of
			December 31, 2018
	December 31, 2018		Using Fair Value Hierarchy
Asset Category	December 31, 2018		Level 1		Level 2		Level 3
Cash	$	0.7	$	0.7	$	—	$	—
Mutual funds (a)	226.6		—		226.6		—
Annuities (b)	27.3		—		—		27.3
Total fair value of the Company Plan’s assets	$	254.6	$	0.7	$	226.6	$	27.3



Fair Value Measurement of Level 3 Pension Assets	Annuities
Balance at January 1, 2018	$	31.5
Actual return on plan assets	(4.2		)
Balance at December 31, 2018	27.3
Actual return on plan assets	3.3
Balance at December 31, 2019	$	30.6

Schedule of Expected Benefit Payments [Table Text Block]

The following estimated 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: