LABORATORY CORP OF AMERICA HOLDINGS | 2013 | FY | 3


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

 
Year ended December 31,
 
2013
 
2012
 
2011
Service cost for benefits earned
$
3.1

 
$
2.4

 
$
2.6

Interest cost on benefit obligation
14.7

 
14.9

 
17.1

Expected return on plan assets
(17.3
)
 
(17.3
)
 
(18.9
)
Net amortization and deferral
10.5

 
12.1

 
7.8

Defined benefit plan costs
$
11.0

 
$
12.1

 
$
8.6


Amounts included in accumulated other comprehensive earnings consist of unamortized net loss of $99.6. The accumulated other comprehensive earnings that are expected to be recognized as components of the defined benefit plan costs during 2014 are $6.2 related to amortization of the net loss.

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

 
2013
 
2012
Balance at January 1
$
380.7

 
$
383.2

Service cost
3.1

 
2.4

Interest cost
14.7

 
14.9

Actuarial (gain)/loss
(22.1
)
 
5.8

Benefits and administrative expenses paid
(26.7
)
 
(25.6
)
Balance at December 31
$
349.7

 
$
380.7

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,
 
2013
 
2012
 
2011
Service cost for benefits earned
$
0.4

 
$
0.4

 
$
0.3

Interest cost on benefit obligation
2.5

 
2.3

 
2.2

Net amortization and deferral
1.0

 
0.3

 
(0.2
)
Post-retirement medical plan costs
$
3.9

 
$
3.0

 
$
2.3


Amounts included in accumulated other comprehensive earnings consist of unamortized net loss of $12.7. The accumulated other comprehensive earnings that are expected to be recognized as components of the post-retirement medical plan costs during 2014 are $1.3 related to amortization of the net loss.

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

 
2013
 
2012
Balance at January 1
$
60.7

 
$
52.7

Service cost for benefits earned
0.4

 
0.4

Interest cost on benefit obligation
2.5

 
2.3

Participants contributions
0.3

 
0.4

Actuarial loss
4.5

 
6.9

Benefits paid
(2.7
)
 
(2.0
)
Plan amendment
(3.0
)
 

Balance at December 31
$
62.7

 
$
60.7

 
 
 
 
Recorded as:
 
 
 
   Other liabilities
$
62.7

 
$
60.7


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