Eli Lilly & Co., Indianapolis, lowered its pension and retiree health-care assumptions, which it expects will decrease its income before taxes this year by $90 million, the company said in its annual report. It lowered the discount rate to 6.8% and 6.9% for pensions and retiree health care, respectively. Both were at 7.2%. The company also lowered the assumed return on assets to 9.26% for pensions and 9.25% for retiree health care; both were at 10.5%. The company expects the changes to reduce income before taxes by $30 million and $50 million, respectively.
Lilly had $3.2 billion in pension assets and $3.9 billion in pension liabilities as of Dec. 31.