Cleveland Clinic Health System Obligated Group - FMSbonds.com

More documents

Recommendations

Info

Cleveland Clinic Health SystemNotes to Consolidated Financial Statements (continued)12. Pensions and Other Postretirement Benefits (continued)The accumulated benefit obligation for all defined benefit pension plans was $926.1 million and$885.3 million at September 30, 2007 and 2006, respectively.Defined Benefit Other PostretirementPension PlansBenefits2007 2006 2007 2006Weighted-average assumptions:Discount rates:Used for benefit obligations 6.25% 6.00% 6.31% 6.00%Used for net periodic benefit cost 6.00% 5.75% 6.00% 5.75%Expected rate of return on plan assets 8.50% 8.50% – –Rate of compensation increase 4.00% 4.00% – –Components of net periodicbenefit cost:Service cost (credit) $ 49,909 $ 47,348 $ (989) $ 130Interest cost 61,835 55,771 4,340 3,977Expected rate of return on plan assets (54,487) (48,790) – –Amortization of unrecognizedactuarial net loss (gain) 27,036 28,124 (361) (1,475)Amortization of unrecognizedprior service cost (credit) 507 (136) 1,678 2,708Net periodic benefit cost 84,800 82,317 4,668 5,340Defined contribution plans 55,078 48,543 – –Total included in operations $ 139,878 $ 130,860 $ 4,668 $ 5,340The System’s pension plan weighted average asset allocations at December 31, 2007 and 2006,by asset category, are as follows:Percentage ofPlan Assets atDecember 312007 2006Asset categoryInterest-bearing cash 10.8% 4.0%Equity securities 60.9 68.8Debt securities 28.3 27.2Total 100.0% 100.0%32
Cleveland Clinic Health SystemNotes to Consolidated Financial Statements (continued)12. Pensions and Other Postretirement Benefits (continued)The System uses a direct cost approach to estimate its postretirement benefit obligation forinternally provided services. Externally provided service liabilities are based on the System’shistorical cost experience. The annual assumed health care cost trend rate for internally providedservices is 8.25% and is assumed to decrease by approximately 0.50% per year to an ultimaterate of 4.75% in 2013. The health care cost trend rate for externally provided services is 9.25%and is assumed to decrease by approximately 0.50% per year to an ultimate rate of 5.75% in2013 and thereafter. A one-percentage-point increase or decrease in the health care cost trend ratewould have increased or decreased the December 31, 2007 service and interest costs in total by$2.1 million and $1.5 million, respectively, and the December 31, 2006 accumulatedpostretirement benefit obligation by $2.0 million and $1.4 million, respectively.The System’s investment strategy for its pension asset balances the liquidity needs of the pensionplans with the long-term return goals necessary to satisfy future pension obligations. The targetasset allocation seeks to capture the equity premium granted by the capital markets over thelong-term while ensuring security of principal to meet near term expenses and obligationsthrough the fixed income allocation. The target allocation percentages of the investment pool tovarious sectors of the equity (40–80% target) and fixed income (20–45% target) markets oralternative investments (0–20% target) are designed to reduce volatility in the portfolio.The System’s pension portfolio return assumption of 8.5% is based on the targeted weightedaverage return of comparative market indices for the asset classes represented in the portfolioand discounted for pension expenses.The System expects to make contributions of $105.5 million to the defined benefit pension plansin 2008. Additional funding for other postretirement benefit plans is expected to be $2.3 millionin 2008. Pension and other postretirement benefit payments over the next five years, net of theaverage annual Medicare Part D subsidy of approximately $4.3 million, are estimated as follows:2008 – $54.2 million; 2009 – $54.0 million; 2010 – $55.7 million; 2011 – $59.3 million; 2012 –$70.0 million; and in the aggregate for the five years thereafter is $468.2 million.No plan assets are expected to be returned to the employer during 2008.33
Page 1 and 2:
NEW ISSUEBOOK ENTRY ONLYSee “RATI
Page 3 and 4:
TABLE OF CONTENTSINTRODUCTORY STATE
Page 5 and 6:
OFFERING CIRCULARRelating to$452,34
Page 7 and 8:
Security and Sources of Payment for
Page 9 and 10:
Upon issuance of the Series 2008A B
Page 11 and 12:
(ii) acquisition of magnetic resona
Page 13 and 14:
$147,200,000 Term Bonds Due January
Page 15 and 16:
that the redemption is conditional
Page 17 and 18:
Use of Certain Terms in Other Secti
Page 19 and 20:
County BondsThe Cleveland Clinic an
Page 21 and 22:
The Cleveland Clinic regularly revi
Page 23 and 24:
ESTIMATED SOURCES AND USES OF FUNDS
Page 25 and 26:
DEBT SERVICE COVERAGEThe following
Page 27 and 28:
MedicareGeneralApproximately 29% of
Page 29 and 30:
there is no assurance that the Obli
Page 31 and 32:
Medicare Conditions of Participatio
Page 33 and 34:
fiscal year’s budget that are in
Page 35 and 36:
Federal Regulatory and Contractual
Page 37 and 38:
Stark-type statutes have fewer exce
Page 39 and 40:
party or for any services rendered
Page 41 and 42:
typically in a position to refer pa
Page 43 and 44:
OhioOhio Certificate of Need Progra
Page 45 and 46:
performance demonstration programs
Page 47 and 48:
manifest injustice would otherwise
Page 49 and 50:
and properties owned or operated by
Page 51 and 52:
plan of reorganization, with one ex
Page 53 and 54:
percentage may be composed wholly o
Page 55 and 56:
The Internal Revenue Service Form 9
Page 57 and 58:
Charity Care, Underinsured and Unin
Page 59 and 60:
• Proposals to eliminate the tax-
Page 61 and 62:
acting in the capacity of underwrit
Page 63 and 64:
Frederick R. Nance, Regional Managi
Page 65 and 66:
FINANCIAL POSITION — D. BALANCE S
Page 67 and 68:
The CommissionBecause the Series 20
Page 69 and 70:
APPENDIX ACLEVELAND CLINIC HEALTH S
Page 71 and 72:
TABLE OF CONTENTSPageINTRODUCTION .
Page 73 and 74:
This Appendix to the Offering Circu
Page 75 and 76:
A. ORIGINS AND FUNDAMENTAL MISSIONT
Page 77 and 78:
C. GOVERNANCE OF THE CLEVELAND CLIN
Page 79 and 80:
Voting Members of theBoard of Trust
Page 81 and 82:
Voting Members of theBoard of Trust
Page 83 and 84:
Principal Operating Officers. The d
Page 85 and 86:
In addition to the broad range of o
Page 87 and 88:
The main campus also includes a com
Page 89 and 90:
GovernanceThe Cleveland Clinic is t
Page 91 and 92:
E. UTILIZATIONThe following tables
Page 93 and 94:
Statistical Information. The follow
Page 95 and 96:
I. COLLABORATIVE PROGRAMSIn additio
Page 97 and 98:
Clinic’s charity care policy, see
Page 99 and 100:
statements filed with Digital Assur
Page 101 and 102:
CLEVELAND CLINIC HEALTH SYSTEMConso
Page 103 and 104: OBLIGATED GROUPConsolidated Stateme
Page 105 and 106: PART IV.MANAGEMENT’S DISCUSSION A
Page 107 and 108: increase in minor equipment purchas
Page 109 and 110: The following table sets forth the
Page 111 and 112: pension plans’ funded status in t
Page 113 and 114: of funding to the pension plan offs
Page 115 and 116: portfolio. Offsetting the decrease
Page 117 and 118: • Clinic Care, Inc. (“Clinic Ca
Page 119 and 120: APPENDIX BCERTAIN FINANCIAL STATEME
Page 121 and 122: A UDITED C ONSOLIDATED F INANCIAL S
Page 123 and 124: • Ernst & Young LLPSuite 1300925
Page 125 and 126: Liabilities and net assetsCurrent l
Page 127 and 128: Changes in Net AssetsNet AssetsTemp
Page 129 and 130: Cleveland Clinic Health SystemNotes
Page 153: Cleveland Clinic Health SystemNotes
Page 159 and 160: Other Financial Information
Page 161 and 162: • Ernst & Young LLPSuite 1300925
Page 167 and 168: Cleveland Clinic Health SystemConso
Page 169 and 170: Cleveland Clinic Health SystemConso
Page 173 and 174: APPENDIX CSUMMARY OF BASIC DOCUMENT
Page 175 and 176: APPENDIX CSUMMARY OF BASIC DOCUMENT
Page 177 and 178: “Bond Indenture” means the Bond
Page 179 and 180: period of three months from the com
Page 181 and 182: PROPERTY”, and all improvements,
Page 183 and 184: direct, express or charitable trust
Page 185 and 186: Rate Hedge” for purposes of this
Page 187 and 188: Debt according to a fixed schedule
Page 189 and 190: “Officer’s Certificate” means
Page 191 and 192: provided, however, that Series 2008
Page 193 and 194: (t) liens on money or obligations d
Page 195 and 196: Project Administrator. In the event
Page 197 and 198: “Stated Maturity” means, when u
Page 199 and 200: (b) the Cleveland Clinic, or if the
Page 201 and 202: (d) the Master Trustee receives an
Page 203 and 204: (g) the loan of cash or other non-O
Page 205 and 206:
under this caption shall be deemed
Page 207 and 208:
Supplemental Indenture to which suc
Page 209 and 210:
emedy thereunder, unless the Noteho
Page 211 and 212:
purchase or other acquisition or re
Page 213 and 214:
limitation, (A) the Special Funds a
Page 215 and 216:
(b) Default in the payment of the p
Page 217 and 218:
Fund Requirements, in the order of
Page 219 and 220:
(g) to evidence the appointment of
Page 221 and 222:
THE LEASEThe Lease contains various
Page 223 and 224:
(a) Failure by the Cleveland Clinic
Page 225 and 226:
APPENDIX DPROPOSED FORM OF OPINION
Page 227 and 228:
PROPOSED TEXT OF LEGAL OPINION OFSQ
Page 229 and 230:
October __, 2008Page 32008A Bonds c
show all

Cleveland Clinic Health System Obligated Group - FMSbonds.com

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?