LabCorp 2012 Annual Report Download - page 22

20
LABORATORY CORPORATION OF AMERICA
Management’s Discussion and Analysis
of Financial Condition and Results of Operations (in millions)
15. inability to attract and retain experienced and qualified
personnel;
16. business interruption, increased costs, and other
adverse effects on the Company’s operations due to
the unionization of employees, union strikes, work
stoppages, or general labor unrest;
17. failure to maintain the Company’s days sales
outstanding and/or bad debt expense levels;
18. decrease in the Company’s credit ratings by
Standard & Poor’s and/or Moody’s;
19. discontinuation or recalls of existing testing products;
20. failure to develop or acquire licenses for new or
improved technologies, or if customers use new
technologies to perform their own tests;
21. inability to commercialize newly licensed tests or
technologies or to obtain appropriate coverage or
reimbursement for such tests, which could result
in impairment in the value of certain capitalized
l icensing costs;
22. failure to identify and successfully close and integrate
strategic acquisition targets;
23. changes in government regulations or policies,
including regulations and policies of the Food and
Drug Administration, affecting the approval, availability
of, and the selling and marketing of diagnostic tests;
24. inability to obtain and maintain adequate patent and
other proprietary rights for protection of the Company’s
products and services and successfully enforce the
Company’s proprietary rights;
25. the scope, validity and enforceability of patents and
other proprietary rights held by third parties which
might have an impact on the Company’s ability to
develop, perform, or market the Company’s tests or
operate its business;
26. failure in the Company’s information technology systems
resulting in an increase in testing turnaround time or
billing processes or the failure to meet future regulatory
or customer information technology, data security and
connectivity requirements;
27. failure of the Company’s financial information systems
resulting in failure to meet required financial reporting
deadlines;
28. failure of the Company’s disaster recovery plans
to provide adequate protection against the interruption
of business and/or to permit the recovery of
business operations;
29. business interruption or other impact on the business
due to adverse weather (including hurricanes), fires
and/or other natural disasters, terrorism or other
criminal acts, and/or widespread outbreak of influenza
or other pandemic illness;
30. liabilities that result from the inability to comply with
corporate governance requirements;
31. significant deterioration in the economy or financial
markets which could negatively impact the Company’s
testing volumes, cash collections and the availability of
credit for general liquidity or other financing needs;
32. changes in reimbursement by foreign governments and
foreign currency fluctuations; and
33. expenses and risks associated with international
operations, including but not limited to compliance with
the Foreign Corrupt Practices Act, the U.K. Bribery Act,
as well as laws and regulations that differ from those of
the United States, and economic, political, legal and
other operational risks associated with foreign markets.