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Express Scripts 2014 Annual Report
86
Formeasurementsusingsignificantunobservableinputs(Level3)during2014and2013,areconciliationofthe
beginningandendingbalancesisasfollows:
(in millions) Hedge Fund
BalanceatDecember31,2012 $—
Netpurchases,salesandissuances 42.0
Unrealizedgains 0.9
BalanceatDecember31,2013 $42.9
Netpurchases,salesandissuances (10.0)
Unrealizedgains 1.5
BalanceatDecember31,2014 $34.4
Themethodsdescribedabovemayproduceafairvaluecalculationthatmaynotbeindicativeofnetrealizable
valueorreflectiveoffuturefairvalues.Furthermore,whilewebelievetheplanvaluationmethodsareappropriateand
consistentwithothermarketparticipants,theuseofdifferentmethodologiesorassumptionstodeterminethefairvalueof
certainfinancialinstrumentscouldresultinadifferentfairvaluemeasurement.
Cash flows.
Employer Contributions.Underthecurrentactuarialassumptions,thereisnominimumcontributionrequiredfor
the2014planyear.TheCompanydoesnotexpecttocontributeanycashpaymentsduring2015.
Estimated Future Benefit Payments.AsofDecember31,2014,thefollowingbenefitpaymentsareexpectedtobe
made(inmillions):
Year Ended December 31,
Estimated
Future Benefit
Payments
2015 $12.0
2016 11.6
2017 10.9
2018 11.1
2019 11.2
2020-2024 54.2
82
12. Commitments and contingencies
Lease agreements. Wehaveenteredintononcancellableagreementstoleasecertainoffices,distributionfacilities
andoperatingequipmentwithremainingtermsfromonetotenyears.Themajorityofourleaseagreementsincluderenewal
optionswhichwouldextendtheagreementsfromonetofiveyears.Rentalexpenseundertheofficeanddistributionfacilities
leasesofourcontinuingoperationsin2014,2013and2012was$59.7million,$83.8millionand$103.6million,respectively.
Thefutureminimumleasepayments,includinginterest,dueundernoncancellableleasesareshownbelow(inmillions):
Year Ended December 31,
Minimum
Operating
Lease Payments
Minimum
Capital
Lease Payments
2015 $60.7 $14.4
2016 58.1 14.4
2017 48.6 0.2
2018 44.6 —
2019 28.7 —
Thereafter 100.3 —
Total $341.0 $29.0
EffectiveJanuary2013,weenteredintoafour-yearcapitalleaseforequipmenttobeusedinourFairLawn,New
Jerseyfacility.TheleaseterminatesinDecember2016andcontainsanoptionfortheCompanytopurchasetheequipmentfor
onedollaratthattime.AsofDecember31,2014,thecapitalizedleaseobligationwas$28.4million.