LabCorp 2006 Annual Report Download - page 52

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in millions, except per share data)
50 Laboratory Corporation of America® Holdings 2006
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18. QUARTERLY DATA (UNAUDITED)
The following is a summary of unaudited quarterly data:
Year Ended December 31, 2006
1st 2nd 3rd 4th Full
Quarter Quarter Quarter Quarter Year
Net sales $878.6 $903.7 $909.9 $898.6 $3,590.8
Gross profit 372.7 392.8 384.9 379.0 1,529.4
Net earnings 101.9 116.4 109.6 103.7 431.6
Basic earnings per common share 0.82 0.94 0.88 0.84 3.48
Diluted earnings per common share 0.76 0.87 0.81 0.81 3.24
Year Ended December 31, 2005
1st 2nd 3rd 4th Full
Quarter Quarter Quarter Quarter Year
Net sales $799.1 $853.3 $852.9 $822.3 $3,327.6
Gross profit 338.3 364.9 354.6 332.5 1,390.3
Net earnings 96.6 106.0 94.7 88.9 386.2
Basic earnings per common share 0.72 0.79 0.71 0.68 2.89
Diluted earnings per common share 0.67 0.74 0.66 0.64 2.71
19. NEW ACCOUNTING PRONOUNCEMENTS
In June 2006, the FASB issued FASB Interpretation No. 48 (“FIN 48”),
“Accounting for Uncertainty in Income Taxes – an interpretation of
FASB Statement No. 109.” FIN 48 clarifies how companies should
recognize, measure, present, and disclose uncertain tax positions.
FIN 48 also provides guidance on derecognition, interest and penalties,
accounting for interim periods, and transition. This interpretation is
effective for fiscal years beginning after December 15, 2006 and the
Company is adopting the interpretation effective January 1, 2007.
The cumulative effect of applying FIN 48 is to be reported as an
adjustment to the opening balance of retained earnings. Based on its
evaluation as of December 31, 2006, the Company does not believe
that FIN 48 will have a material impact on its financial statements.
In September 2006, the FASB issued SFAS No. 157 “Fair Value
Measurements” (“SFAS 157”). SFAS 157 provides a new single
authoritative definition of fair value and provides enhanced guidance
for measuring the fair value of assets and liabilities and requires
additional disclosures related to the extent to which companies
measure assets and liabilities at fair value, the information used to
measure fair value, and the effect of fair value measurements on
earnings. SFAS 157 is effective for the Company as of January 1, 2008.
The Company is currently assessing the impact, if any, of SFAS 157
on its consolidated financial statements.
In February 2007, the FASB issued SFAS No. 159, “The
Fair Value Option for Financial Assets and Financial Liabilities”
(“SFAS 159”). SFAS 159 permits all entities to choose to measure
eligible items at fair value at specified election dates. SFAS 159
is effective as of the beginning of an entity’s first fiscal year that
begins after November 15, 2007. The Company is currently
assessing the impact, if any, of SFAS 159 on its consolidated
financial statements.