LabCorp 2009 Annual Report Download - page 51

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LABORATORY CORPORATION OF AMERICA 49
Depreciation expense and amortization of capital lease
assets was $130.7, $120.1 and $106.5 for 2009, 2008 and
2007, respectively, including software depreciation of $34.8,
$33.7, and $34.8 for 2009, 2008 and 2007, respectively.
8. Goodwill and Intangible Assets
The changes in the carrying amount of goodwill (net of accumu-
lated amortization) for the years ended December 31, 2009 and
2008 are as follows:
2009 2008
Balance as of January 1 $ 1,772.2 $ 1,639.5
Goodwill acquired during the year 124.1 135.4
Adjustments to goodwill 0.8 (2.7)
Goodwill, net $ 1,897.1 $ 1,772.2
The components of identifiable intangible assets are as follows:
December 31, 2009 December 31, 2008
Gross Gross
Carrying Accumulated Carrying Accumulated
Amount Amortization Amount Amortization
Customer relationships $ 839.8 $ (337.1) $ 793.2 $ (294.1)
Patents, licenses and technology 119.2 (62.4) 94.7 (54.2)
Non-compete agreements 39.4 (30.7) 37.0 (28.2)
Trade name 117.7 (41.8) 115.3 (33.4)
Canadian licenses 698.1 – 592.3 –
$ 1,814.2 $ (472.0) $ 1,632.5 $ (409.9)
A summary of amortizable intangible assets acquired during
2009, and their respective weighted-average amortization periods
are as follows:
Weighted-Average
Amount Amortization Period
Customer relationships $ 46.5 11.9
Patents, licenses and technology 25.3 2.3
Non-compete agreements 2.4 0.2
Trade name 2.4 0.3
$ 76.6 14.7
Amortization of intangible assets was $62.6, $57.9 and $54.9
in 2009, 2008 and 2007, respectively. Amortization expense of
intangible assets is estimated to be $65.6 in fiscal 2010, $60.8 in
fiscal 2011, $56.4 in fiscal 2012, $53.4 in fiscal 2013, $50.5 in
fiscal 2014 and $357.4 thereafter.
The Company paid $0.0, $0.8 and $0.7 in 2009, 2008 and
2007 for certain exclusive and non-exclusive licensing rights to
diagnostic testing technology. These amounts are being amor-
tized over the life of the licensing agreements.
As of December 31, 2009, the Ontario operation has
$698.1 of value assigned to the partnership’s indefinite lived
Canadian licenses to conduct diagnostic testing services in
the province.
9. Accrued Expenses and Other
December 31, December 31,
2009 2008
Employee compensation and benefits $ 143.4 $ 140.7
Self-insurance reserves 56.2 48.0
Accrued taxes payable 19.0 10.5
Royalty and license fees payable 6.9 7.7
Accrued repurchases of common stock 0.5 –
Restructuring reserves 15.2 24.3
Acquisition related reserves 5.6 8.1
Interest payable 8.6 8.6
Other 20.3 18.5
$ 275.7 $ 266.4
10. Other Liabilities
December 31, December 31,
2009 2008
Post-retirement benefit obligation $ 39.7 $ 36.7
Defined benefit plan obligation 41.4 94.8
Restructuring reserves 10.4 9.4
Self-insurance reserves 12.1 12.1
Interest rate swap liability 10.6 13.5
Acquisition related reserves 1.1 1.2
Deferred revenue 22.5 6.9
Other 20.6 15.0
$ 158.4 $ 189.6
LABORATORY CORPORATION OF AMERICA
Notes to Consolidated Financial Statements