LabCorp 2009 Annual Report Download - page 64

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62 LABORATORY CORPORATION OF AMERICA
19. Executive Retirement
In October 2008, the Company announced the retirement of its
Executive Vice President, Corporate Affairs (“EVP”), Bradford T.
Smith, effective December 31, 2008. During the fourth quarter
of 2008, the Company recorded charges of approximately
$3.7, which included $2.0 related to the acceleration of the
recognition of stock compensation and $1.7 related to the
acceleration of certain defined benefit plan obligations.
Following the announcement of his retirement as EVP,
Mr. Smith entered into a consulting agreement with the
Company effective January 1, 2009. The agreement provided
for additional services to be provided by Mr. Smith following
the termination of his employment as EVP to assist the
Company during a transition period. Mr. Smith was Vice
Chairman of the Board through the annual meeting of
shareholders in May 2009. For purposes of calculating
pension benefits, the agreement provided for an unreduced
pension benefit, starting at age 55.
20. Supplemental Cash Flow Information
Years Ended December 31,
2009 2008 2007
Supplemental schedule of cash flow information:
Cash paid during period for:
Interest $ 50.7 $ 56.1 $ 40.4
Income taxes, net of refunds 304.1 211.8 272.4
Disclosure of non-cash financing and
investing activities:
Issuance of restricted stock awards and
performance shares 18.5 20.3 11.9
Surrender of restricted stock awards and
performance shares 2.7 32.7 5.5
Accrued repurchases of common stock 0.5 (3.0) 3.0
Purchase of equipment in accrued expenses 2.8 – –
LABORATORY CORPORATION OF AMERICA
Notes to Consolidated Financial Statements
21. Quarterly Data (Unaudited)
The following is a summary of unaudited quarterly data:
Year Ended December 31, 2009
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Full Year
Net sales $ 1,155.7 $ 1,188.8 $ 1,185.1 $ 1,165.1 $ 4,694.7
Gross profit 489.4 507.4 498.1 476.0 1,970.9
Net earnings attributable to Laboratory Corporation of America Holdings 132.8 136.4 131.4 142.7 543.3
Basic earnings per common share 1.23 1.26 1.22 1.35 5.06
Diluted earnings per common share 1.22 1.24 1.21 1.33 4.98
Year Ended December 31, 2008
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Full Year
Net sales $ 1,103.2 $ 1,147.8 $ 1,135.1 $ 1,119.1 $ 4,505.2
Gross profit 470.5 491.8 461.6 449.9 1,873.8
Net earnings attributable to Laboratory Corporation of America Holdings 130.3 104.2 111.9 118.1 464.5
Basic earnings per common share 1.18 0.94 1.02 1.09 4.23
Diluted earnings per common share 1.14 0.92 1.00 1.08 4.16