LabCorp 2012 Annual Report Download - page 41

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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 adminis-
trative 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:
2012 2011
Issued 115.8 120.0
In treasury (22.3) (22.2)
Outstanding 93.5 97.8
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, 2012
and 2011.
The changes in common shares issued and held in
treasury are summarized below:
Common Shares Issued
2012 2011 2010
Common stock issued at January 1 120.0 124.5 127.4
Common stock issued under employee stock plans 1.6 1.9 1.6
Common stock issued upon conversion
of zero-coupon subordinated notes – 1.0 –
Retirement of common stock (5.8) (7.4) (4.5)
Common stock issued at December 31 115.8 120.0 124.5
Common Shares Held in Treasury
2012 2011 2010
Common shares held in treasury at January 1 22.2 22.1 22.1
Surrender of restricted stock and performance
share awards 0.1 0.1 –
Common shares held in treasury at December 31 22.3 22.2 22.1
Share Repurchase Program
During 2012, the Company purchased 5.9 shares of its
common stock at a total cost of $516.5. As of December 31,
2012, the Company had outstanding authorization from the
Board of Directors to purchase $68.0 of Company common
stock. On February 8, 2013, the Company announced the
Board of Directors authorized the purchase of $1,000.0 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, 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
Current year adjustments 31.3 7.3 – 38.6
Tax effect of adjustments (11.9) (2.8) – (14.7)
Balance at
December 31, 2012 $ 162.9 $ (93.5) $ – $ 69.4
LABORATORY CORPORATION OF AMERICA
Notes to Consolidated Financial Statements