LabCorp 2013 Annual Report Download - page 38

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34
3. Restructuring and Other Special Charges
During 2013, the Company recorded net restructuring charges of
$21.8. The charges were comprised of $15.4 in severance and other
personnel costs and $9.5 in facility-related costs primarily associated
with general integration activities. These charges were offset by
the reversal of previously established reserves of $0.7 in unused
severance and $2.4 in unused facility-related costs.
During 2012, the Company recorded net restructuring charges
of $25.3. The charges were comprised of $16.2 in severance and
other personnel costs and $19.6 in facility-related costs primarily
associated with the ongoing integration activities of Orchid and
Integrated Genetics Division (formerly Genzyme Genetics) and
costs associated with the previously announced termination of an
executive vice president. These charges were offset by the reversal
of previously established reserves of $6.3 in unused severance and
$4.2 in unused facility related costs.
As part of the Clearstone integration, the Company also
recorded a 6.9 loss on the disposal of one of its European subsidiaries
in Other, net under Other income (expenses) during 2012.
During 2011, the Company recorded net restructuring charges
of $44.6. Of this amount, $27.4 related to severance and other
personnel costs, and $22.0 primarily related to facility-related costs
associated with the ongoing integration of certain acquisitions
including Genzyme Genetics and Westcliff. These charges were
offset by restructuring credits of $4.8, resulting from the reversal
of unused severance and facility closure liabilities. In addition,
the Company recorded fixed assets impairment charges of
$18.9 primarily related to equipment, computer systems and lease-
hold improvements in closed facilities. The Company also recorded
special charges of $14.8 related to the write-off of certain assets and
liabilities related to an investment made in prior years, along with a
$2.6 write-off of an uncollectible receivable from a past installment
sale of one of the Company’s lab operations.
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, 2012 $ 1.4 $ 26.2 $ 27.6
Restructuring charges 15.4 9.5 24.9
Reduction of prior restructuring accruals (0.6) (2.5) (3.1)
Cash payments and other adjustments (15.4) (8.3) (23.7)
Balance as of December 31, 2013 $ 0.8 $ 24.9 $ 25.7
Current $ 9.3
Non-current 16.4
$ 25.7
The non-current portion of the restructuring liabilities is
expected to be paid out over 7 years.
5. Joint Venture Partnerships and Equity Method Investments
At December 31, 2013 the Company had investments in the
following unconsolidated joint venture partnerships and equity
method investments:
Net Interest
Locations Investment Owned
Joint Venture Partnerships:
Milwaukee, Wisconsin $ 15.5 50.00%
Alberta, Canada 58.5 43.37%
Florence, South Carolina 10.0 49.00%
Equity Method Investments:
Various 4.5 various
LABORATORY CORPORATION OF AMERICA
Notes to Consolidated Financial Statements