LabCorp 2010 Annual Report Download - page 38

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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, 2010.
The changes in common shares issued and held in treasury
are summarized below:
Common shares issued
2010 2009 2008
Common stock issued at January 1 127.4 130.3 132.7
Common stock issued under employee stock plans 1.6 0.6 2.2
Common stock issued upon conversion of zero-coupon
subordinated notes – 0.4 –
Retirement of common stock (4.5) (3.9) (4.6)
Common stock issued at December 31 124.5 127.4 130.3
Common shares held in treasury
2010 2009 2008
Common shares held in treasury at January 1 22.1 22.1 21.7
Surrender of restricted stock and performance
share awards – – 0.4
Common shares held in treasury at December 31 22.1 22.1 22.1
Share Repurchase Program
During fiscal 2010, the Company purchased 4.5 shares of its
common stock at a total cost of $337.5. As of December 31,
2010, the Company had outstanding authorization from the
Board of Directors to purchase approximately $234.3 of
Company common stock. During January 2011, the Company
completed its repurchase authorization, representing approxi-
mately 2.6 shares of its common stock. On February 10, 2011,
the Company announced the Board of Directors authorized
the purchase of $500.0 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 stock-
holder 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 com-
mon 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, 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
Current year adjustments 41.3 (8.3) 8.2 41.2
Tax effect of adjustments (14.3) 3.2 (3.1) (14.2)
Balance at
December 31, 2010 $ 152.8 $ (62.9) $ (1.4) $ 88.5
13. Income Taxes
The sources of income before taxes, classified between
domestic and foreign entities are as follows:
Pre-tax income
2010 2009 2008
Domestic $ 876.1 $ 848.0 $ 747.8
Foreign 39.5 36.6 37.9
Total pre-tax income $ 915.6 $ 884.6 $ 785.7
The provisions for income taxes in the accompanying
consolidated statements of operations consist of the following:
Years Ended December 31,
2010 2009 2008
Current:
Federal
$ 269.9 $ 266.2 $ 188.1
State
50.4 41.0 39.8
Foreign
10.8 12.2 10.4
$ 331.1 $ 319.4 $ 238.3
Deferred:
Federal
$ 12.2 $ 25.3 $ 54.0
State
(0.5) (15.5) 12.8
Foreign
1.2 (0.2) 2.8
12.9 9.6 69.6
$ 344.0 $ 329.0 $ 307.9
LABORATORY CORPORATION OF AMERICA
Notes to Consolidated Financial Statements