LabCorp 2011 Annual Report Download - page 38

36
Senior Notes
On October 28, 2010, in conjunction with the acquisition of
Genzyme Genetics, the Company entered into a $925.0 Bridge
Term Loan Credit Agreement, among the Company, the lenders
named therein and Citibank, N.A., as administrative agent (the
“Bridge Facility”). The Company replaced and terminated the
Bridge Facility in November 2010 by making an offering in the
debt capital markets. On November 19, 2010, the Company
sold $925.0 in debt securities, consisting of $325.0 aggregate
principal amount of 3.125% Senior Notes due May 15, 2016 and
$600.0 aggregate principal amount of 4.625% Senior Notes due
November 15, 2020. Beginning on May 15, 2011, interest on
the Senior Notes due 2016 and 2020 is payable semi-annually
on May 15, and November 15. On December 1, 2010, the
acquisition of Genzyme Genetics was funded by the net
proceeds from the issuance of these Notes ($915.4) and with
cash on hand.
The Senior Notes due January 31, 2013 bear interest at the
rate of 5.5% per annum from February 1, 2003, payable semi-
annually on February 1 and August 1. The Senior Notes due
2015 bear interest at the rate of 5.625% per annum from
December 14, 2005, payable semi-annually on June 15 and
December 15.
12. Preferred Stock and Common
Shareholders’ Equity
The Company is authorized to issue up to 265.0 shares of
common stock, par value $0.10 per share. The Company’s
treasury shares are recorded at aggregate cost. Common
shares issued and outstanding are summarized in the
following table:
2011 2010
Issued 120.0 124.5
In treasury (22.2) (22.1)
Outstanding 97.8 102.4
The Company is authorized to issue up to 30.0 shares of
preferred stock, par value $0.10 per share. There were no pre-
ferred shares outstanding as of December 31, 2011 and 2010.
The changes in common shares issued and held in treasury
are summarized below:
Common shares issued
2011 2010 2009
Common stock issued at January 1 124.5 127.4 130.3
Common stock issued under employee stock plans 1.9 1.6 0.6
Common stock issued upon conversion of zero-coupon
subordinated notes 1.0 – 0.4
Retirement of common stock (7.4) (4.5) (3.9)
Common stock issued at December 31 120.0 124.5 127.4
Common shares held in treasury
2011 2010 2009
Common shares held in treasury at January 1 22.1 22.1 22.1
Surrender of restricted stock and performance
share awards 0.1 – –
Common shares held in treasury at December 31 22.2 22.1 22.1
Share Repurchase Program
During fiscal 2011, the Company purchased 7.4 shares of its
common stock at a total cost of $643.9. As of December 31,
2011, the Company had outstanding authorization from the
Board of Directors to purchase $84.4 of Company common
stock. On February 10, 2012, the Company announced the
Board of Directors authorized the purchase of $500.0 of
additional shares of the Company’s common stock.
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, 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
Current year adjustments (13.2) (57.5) 2.4 (68.3)
Tax effect of adjustments 3.9 22.4 (1.0) 25.3
Balance at
December 31, 2011 $ 143.5 $ (98.0) $ – $ 45.5
LABORATORY CORPORATION OF AMERICA
Notes to Consolidated Financial Statements