LabCorp 2011 Annual Report Download - page 35

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Condensed unconsolidated financial information for joint
venture partnerships and equity method investments is shown
in the following table.
As of December 31: 2011 2010
Current assets $ 39.5 $ 61.9
Other assets
39.1 48.4
Total assets
$ 78.6 $ 110.3
Current liabilities
$ 19.6 $ 55.6
Other liabilities
1.8 17.9
Total liabilities
21.4 73.5
Partners’ equity
57.2 36.8
Total liabilities and partners’ equity $ 78.6 $ 110.3
For the period January 1 – December 31: 2011 2010 2009
Net sales $ 247.4 $ 255.5 $ 212.4
Gross profit
73.1 73.9 69.6
Net earnings
28.0 20.0 33.3
The Company’s recorded investment in the Alberta joint
venture partnership at December 31, 2011 includes $47.6
of value assigned to the partnership’s Canadian licenses (with
an indefinite life and deductible for tax) to conduct diagnostic
testing services in the province.
6. Accounts Receivable, Net
December 31, December 31,
2011 2010
Gross accounts receivable $ 897.4 $ 804.8
Less allowance for doubtful accounts (197.6) (149.2)
$ 699.8 $ 655.6
The provision for doubtful accounts was $255.1, $241.5
and $248.9 in 2011, 2010 and 2009, respectively.
7. Property, Plant and Equipment, Net
December 31, December 31,
2011 2010
Land $ 24.8 $ 25.8
Buildings and building improvements 121.8 125.4
Machinery and equipment 616.9 615.7
Software
327.1 299.2
Leasehold improvements 182.5 171.6
Furniture and fixtures 53.5 51.2
Construction in progress 115.5 95.6
Equipment under capital leases 1.5 3.5
1,443.6 1,388.0
Less accumulated depreciation and
amortization of capital lease assets (865.3) (801.1)
$ 578.3 $ 586.9
Depreciation expense and amortization of capital lease
assets was $141.5, $129.1 and $130.7 for 2011, 2010 and
2009, respectively, including software depreciation of $34.0,
$32.0, and $34.8 for 2011, 2010 and 2009, respectively.
8. Goodwill and Intangible Assets
The changes in the carrying amount of goodwill (net of
accumulated amortization) for the years ended December 31,
2011 and 2010 are as follows:
2011 2010
Balance as of January 1 $ 2,601.3 $ 1,897.1
Goodwill acquired during the year 86.2 704.4
Adjustments to goodwill (5.7) (0.2)
Goodwill, net $ 2,681.8 $ 2,601.3
The components of identifiable intangible assets are as follows:
December 31, 2011 December 31, 2010
Gross Gross
Carrying Accumulated Carrying Accumulated
Amount Amortization Amount Amortization
Customer relationships $ 1,187.5 $ (426.8) $ 1,146.0 $ (370.0)
Patents, licenses and technology 144.9 (88.3) 144.7 (75.7)
Non-compete agreements 28.1 (14.8) 26.6 (9.4)
Trade names 129.2 (61.3) 123.3 (50.3)
Canadian licenses 722.2 – 738.9 –
$ 2,211.9 $ (591.2) $ 2,179.5 $ (505.4)
A summary of amortizable intangible assets acquired during
2011, and their respective weighted average amortization periods
are as follows:
Weighted-Average
Amount Amortization Period
Customer relationships $ 41.6 13.9
Patents, licenses and technology – –
Non-compete agreements 1.7 5.0
Trade names 6.0 9.8
$ 49.3 13.4
Amortization of intangible assets was $85.8, $72.7 and $62.6
in 2011, 2010 and 2009, respectively. Amortization expense of
intangible assets is estimated to be $83.9 in fiscal 2012, $78.3
in fiscal 2013, $75.5 in fiscal 2014, $72.0 in fiscal 2015, $66.8
in fiscal 2016, and $478.2 thereafter.
The Company paid $0.0, $0.4 and $0.0 in 2011, 2010 and
2009 for certain exclusive and non-exclusive licensing rights
to diagnostic testing technology. These amounts are being
amortized over the life of the licensing agreements.
LABORATORY CORPORATION OF AMERICA
Notes to Consolidated Financial Statements