LabCorp 2010 Annual Report Download - page 22

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The Company excluded its wholly-owned subsidiary, Esoterix
Genetic Laboratories, LLC (dba Genzyme Genetics), from its
assessment of internal control over financial reporting as of
December 31, 2010 because its control over this operation was
acquired by the Company in a purchase business combination
during 2010. The total assets and total revenues of Esoterix
Genetic Laboratories, LLC (dba Genzyme Genetics) represented
15.5% and 0.7%, respectively, of the related consolidated
financial statement amounts as of and for the year ended
December 31, 2010.
The Company’s management is responsible for establishing
and maintaining adequate internal control over financial reporting
(as defined in Rules 13a-15(f) and 15d-15(f) under the Securities
Exchange Act of 1934).
The internal control over financial reporting at the Company
was designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with accounting
principles generally accepted in the United States of America.
Internal control over financial reporting includes those policies
and procedures that:
•฀ ฀pertain฀to฀the฀maintenance฀of฀records฀that,฀in฀reasonable฀
detail, accurately and fairly reflect the transactions and
dispositions of the assets of the Company;
•฀ ฀provide฀reasonable฀assurance฀that฀transactions฀are฀
recorded as necessary to permit preparation of financial
statements in accordance with accounting principles
generally accepted in the United States of America;
•฀ ฀provide฀reasonable฀assurance฀that฀receipts฀and฀expenditures฀
of the Company are being made only in accordance
with authorization of management and directors of the
Company; and
•฀ ฀provide฀reasonable฀assurance฀regarding฀prevention฀or฀timely฀
detection of unauthorized acquisition, use or disposition
of assets that could have a material effect on the consoli-
dated financial statements.
Because of its inherent limitations, internal control over
financial reporting may not prevent or detect misstatements.
The Company’s management assessed the effectiveness
of the Company’s internal control over financial reporting as of
December 31, 2010. Management based this assessment
on criteria for effective internal control over financial reporting
described in “Internal Control – Integrated Framework” issued
by the Committee of Sponsoring Organizations of the Treadway
Commission (“COSO”). Based on this assessment, the Company’s
management determined that, as of December 31, 2010, the
Company maintained effective internal control over financial
reporting. Management reviewed the results of its assessment
with the Audit Committee of the Company’s Board of Directors.
PricewaterhouseCoopers LLP, an independent registered
public accounting firm, who audited and reported on the con-
solidated financial statements of the Company included in this
annual report, also audited the effectiveness of the Company’s
internal control over financial reporting as of December 31, 2010
as stated in its report, which is included herein immediately
preceding the Company’s audited financial statements.
LABORATORY CORPORATION OF AMERICA
Report of Management on Internal Control
Over Financial Reporting