LabCorp 2010 Annual Report Download - page 35

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The components of identifiable intangible assets are as follows:
December 31, 2010 December 31, 2009
Gross Gross
Carrying Accumulated Carrying Accumulated
Amount Amortization Amount Amortization
Customer relationships $ 1,146.0 $ (370.0) $ 839.8 $ (337.1)
Patents, licenses and technology 144.7 (75.7) 119.2 (62.4)
Non-compete agreements 26.6 (9.4) 39.4 (30.7)
Trade name 123.3 (50.3) 117.7 (41.8)
Canadian licenses 738.9 – 698.1 –
$ 2,179.5 $ (505.4) $ 1,814.2 $ (472.0)
A summary of amortizable intangible assets acquired during
2010, and their respective weighted average amortization periods
are as follows:
Weighted-Average
Amount Amortization Period
Customer relationships $ 319.9 19.2
Patents, licenses and technology 25.5 0.6
Non-compete agreements 12.8 0.2
Trade name 5.6 –
$ 363.8 20.0
Amortization of intangible assets was $72.7, $62.6 and $57.9
in 2010, 2009 and 2008, respectively. Amortization expense of
intangible assets is estimated to be $85.1 in fiscal 2011, $80.4
in fiscal 2012, $74.7 in fiscal 2013, $71.9 in fiscal 2014, $68.3
in fiscal 2015, and $554.8 thereafter.
The Company paid $0.4, $0.0 and $0.8 in 2010, 2009 and
2008 for certain exclusive and non-exclusive licensing rights
to diagnostic testing technology. These amounts are being
amortized over the life of the licensing agreements.
As of December 31, 2010, the Ontario operation has $738.9
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,
2010 2009
Employee compensation and benefits $ 188.0 $ 143.4
Self-insurance reserves
70.8 56.2
Accrued taxes payable 13.8 19.0
Royalty and license fees payable 12.6 6.9
Accrued repurchases of common stock – 0.5
Restructuring reserves
11.4 15.2
Acquisition related reserves 18.4 5.6
Interest payable
13.0 8.6
Other
24.9 20.3
$ 352.9 $ 275.7
10. Other Liabilities
December 31, December 31,
2010 2009
Post-retirement benefit obligation $ 42.0 $ 39.6
Defined benefit plan obligation 52.8 41.4
Restructuring reserves
6.4 10.4
Self-insurance reserves
12.1 12.1
Interest rate swap liability 2.4 10.6
Acquisition related reserves 0.6 1.1
Deferred revenue
7.2 22.5
Other
27.9 20.7
$ 151.4 $ 158.4
11. Debt
Short-term borrowings and current portion of long-term debt
at December 31, 2010 and 2009 consisted of the following:
December 31, December 31,
2010 2009
Zero-coupon convertible subordinated notes $ 286.7 $ 292.2
Term loan, current 75.0 50.0
Revolving credit facility – 75.0
Total short-term borrowings and
current portion of long-term debt $ 361.7 $ 417.2
Long-term debt at December 31, 2010 and 2009 consisted
of the following:
December 31, December 31,
2010 2009
Senior notes due 2013 $ 350.9 $ 351.3
Senior notes due 2015 250.0 250.0
Senior notes due 2016 325.0 –
Senior notes due 2020 600.0 –
Term loan, non-current 300.0 375.0
Other long-term debt 0.8 0.9
Total long-term debt $ 1,826.7 $ 977.2
Credit Facilities
On October 26, 2007, the Company entered into senior
unsecured credit facilities with Credit Suisse, acting as Admin-
istrative Agent, and a group of financial institutions totaling
$1,000.0. The credit facilities consist of a five-year Revolving
Facility in the principal amount of $500.0 and a five-year, $500.0
Term Loan Facility. The balances outstanding on the Company’s
Term Loan Facility at December 31, 2010 and 2009 were $375.0
and $425.0, respectively. The balances outstanding on the
Company’s Revolving Facility at December 31, 2010 and 2009
were $0.0 and $75.0, respectively. The senior unsecured credit
facilities bear interest at varying rates based upon LIBOR plus
LABORATORY CORPORATION OF AMERICA
Notes to Consolidated Financial Statements