LabCorp 2012 Annual Report Download - page 37

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4. Restructuring Reserves
The following represents the Company’s restructuring
activities for the period indicated:
Severance Lease
and Other and Other
Employee Facility
Costs Costs Total
Balance as of December 31, 2011 $ 8.4 $ 22.6 $ 31.0
Restructuring charges 16.2 19.6 35.8
Reduction of prior restructuring accruals (6.3) (4.2) (10.5)
Cash payments and other adjustments (16.9) (11.8) (28.7)
Balance as of December 31, 2012 $ 1.4 $ 26.2 $ 27.6
Current $ 8.4
Non-current 19.2
$ 27.6
5. Joint Venture Partnerships and
Equity Method Investments
At December 31, 2012 the Company had investments in
the following unconsolidated joint venture partnerships and
equity method investments:
Net Percentage
Locations Investment Interest Owned
Joint Venture Partnerships:
Milwaukee, Wisconsin $ 13.9 50.00%
Alberta, Canada 61.7 43.37%
Equity Method Investments:
Charlotte, North Carolina 2.5 50.00%
The joint venture agreements that govern the conduct
of business of these partnerships mandates unanimous
agreement between partners on all major business decisions
as well as providing other participating rights to each partner.
The equity method investments represent the Company’s
purchase of shares in clinical diagnostic companies. The
investments are accounted for under the equity method of
accounting as the Company does not have control of these
investments. The Company has no material obligations or
guarantees to, or in support of, these unconsolidated
investments and their operations.
Condensed unconsolidated financial information for
joint venture partnerships and equity method investments
is shown in the following table.
As of December 31: 2012 2011
Current assets $ 36.8 $ 39.5
Other assets 39.9 39.1
Total assets $ 76.7 $ 78.6
Current liabilities $ 19.6 $ 19.6
Other liabilities 1.7 1.8
Total liabilities 21.3 21.4
Partners’ equity 55.4 57.2
Total liabilities and partners’ equity $ 76.7 $ 78.6
For the period January 1-December 31: 2012 2011 2010
Net sales $ 249.0 $ 247.4 $ 255.5
Gross profit 86.4 73.1 73.9
Net earnings 42.2 28.0 20.0
The Company’s recorded investment in the Alberta joint
venture partnership at December 31, 2012 includes $49.2 of
value assigned to the partnership’s Canadian license (with an
indefinite life and deductible for tax) to conduct diagnostic
testing services in the province.
6. Accounts Receivable, Net
December 31, December 31,
2012 2011
Gross accounts receivable $ 910.0 $ 897.4
Less allowance for doubtful accounts (191.5) (197.6)
$ 718.5 $ 699.8
The provision for doubtful accounts was $246.0, $255.1
and $241.5 in 2012, 2011 and 2010, respectively.
7. Property, Plant and Equipment, Net
December 31, December 31,
2012 2011
Land $ 24.9 $ 24.8
Buildings and building improvements 138.8 121.8
Machinery and equipment 655.5 616.9
Software 348.5 327.1
Leasehold improvements 193.3 182.5
Furniture and fixtures 58.6 53.5
Construction in progress 154.6 115.5
Equipment under capital leases 1.5 1.5
1,575.7 1,443.6
Less accumulated depreciation and
amortization of capital lease assets (944.9) (865.3)
$ 630.8 $ 578.3
Depreciation expense and amortization of property, plant
and equipment was $141.1, $141.5 and $129.1 for 2012, 2011
and 2010, respectively, including software depreciation of $35.1,
$34.0, and $32.0 for 2012, 2011 and 2010, respectively.
LABORATORY CORPORATION OF AMERICA
Notes to Consolidated Financial Statements