LabCorp 2009 Annual Report Download - page 54

52 LABORATORY CORPORATION OF AMERICA
The Company is authorized to issue up to 30.0 shares of
preferred stock, par value $0.10 per share. There were no
preferred shares outstanding as of December 31, 2009.
The changes in common shares issued and held in treasury
are summarized below:
Common shares issued
2009 2008 2007
Common stock issued at January 1 130.3 132.7 143.8
Common stock issued under employee stock plans 0.6 2.2 2.0
Common stock issued upon conversion of zero-coupon
subordinated notes 0.4 – –
Retirement of common stock (3.9) (4.6) (13.1)
Common stock issued at December 31 127.4 130.3 132.7
Common shares held in treasury
2009 2008 2007
Common shares held in treasury at January 1 22.1 21.7 21.6
Surrender of restricted stock and performance
share awards – 0.4 0.1
Common shares held in treasury at December 31 22.1 22.1 21.7
Share Repurchase Program
During fiscal 2009, the Company purchased 3.9 shares of its
common stock at a total cost of $273.5. As of December 31,
2009, the Company had outstanding authorization from the
Board of Directors to purchase approximately $71.8 of Company
common stock. On February 11, 2010, the Board of Directors
authorized the purchase of $250.0 of additional shares of the
Company’s common stock.
Stockholder Rights Plan
The Company adopted a stockholder rights plan effective
as of December 13, 2001 that provides that each common
stockholder of record on December 21, 2001 received a
dividend of one right for each share of common stock held.
Each right entitles the holder to purchase from the Company
one-hundredth of a share of a new series of participating
preferred stock at an initial purchase price of four hundred
dollars. These rights will become exercisable and will detach
from the Company’s common stock if any person becomes the
beneficial owner of 15% or more of the Company’s common
stock. In that event, each right will entitle the holder, other than
the acquiring person, to purchase, for the initial purchase price,
shares of the Company’s common stock having a value of twice
the initial purchase price. The rights will expire on December 13,
2011, unless earlier exchanged or redeemed.
Accumulated Other Comprehensive Earnings
The components of accumulated other comprehensive earnings
are as follows:
Foreign Net Interest Accumulated
Currency Benefit Rate Other
Translation Plan Swap Comprehensive
Adjustments Adjustments Adjustments Earnings
Balance at
December 31, 2006 $ 89.2 $ (30.5) $ – $ 58.7
Current year adjustments 96.9 4.0 – 100.9
Tax effect of adjustments (38.0) (1.6) – (39.6)
Balance at
December 31, 2007 148.1 (28.1) – 120.0
Current year adjustments (129.6) (81.0) (13.5) (224.1)
Tax effect of adjustments 50.1 32.0 5.3 87.4
Balance at
December 31, 2008 68.6 (77.1) (8.2) (16.7)
Current year adjustments 93.3 31.5 2.9 127.7
Tax effect of adjustments (36.1) (12.2) (1.2) (49.5)
Balance at
December 31, 2009 $ 125.8 $ (57.8) $ (6.5) $ 61.5
13. Income Taxes
The sources of income before taxes, classified between
domestic and foreign entities are as follows:
Pre-tax income
2009 2008 2007
Domestic $ 848.0 $ 747.8 $ 786.5
Foreign 36.6 37.9 15.8
Total pre-tax income $ 884.6 $ 785.7 $ 802.3
The provisions for income taxes in the accompanying
consolidated statements of operations consist of the following:
Years Ended December 31,
2009 2008 2007
Current:
Federal $ 266.2 $ 188.1 $ 238.9
State 41.0 39.8 49.9
Foreign 12.2 10.4 10.2
$ 319.4 $ 238.3 $ 299.0
Deferred:
Federal $ 25.3 $ 54.0 $ 18.8
State (15.5) 12.8 4.2
Foreign (0.2) 2.8 3.5
9.6 69.6 26.5
$ 329.0 $ 307.9 $ 325.5
LABORATORY CORPORATION OF AMERICA
Notes to Consolidated Financial Statements