LabCorp 2013 Annual Report Download - page 39

Download and view the complete annual report

Please find page 39 of the 2013 LabCorp annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 58

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58

35
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 provid-
ing 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: 2013 2012
Current assets $ 43.4 $ 36.8
Other assets 40.9 39.9
Total assets $ 84.3 $ 76.7
Current liabilities $ 21.9 $ 19.6
Other liabilities 1.3 1.7
Total liabilities 23.2 21.3
Partners’ equity 61.1 55.4
Total liabilities and partners’ equity $ 84.3 $ 76.7
For the period January 1-December 31: 2013 2012 2011
Net sales $ 255.2 $ 249.0 $ 247.4
Gross profit 84.1 86.4 73.1
Net earnings 37.7 42.2 28.0
The Company’s recorded investment in the Alberta joint
venture partnership at December 31, 2013 includes $45.6 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,
2013 2012
Gross accounts receivable $ 983.0 $ 910.0
Less allowance for doubtful accounts (198.3) (191.5)
$ 784.7 $ 718.5
The provision for doubtful accounts was $254.8, $246.0 and
$255.1 in 2013, 2012 and 2011, respectively.
7. Property, Plant and Equipment, Net
December 31, December 31,
2013 2012
Land $ 29.0 $ 24.9
Buildings and building improvements 188.8 138.8
Machinery and equipment 712.1 655.5
Software 404.9 348.5
Leasehold improvements 196.5 193.3
Furniture and fixtures 58.1 58.6
Construction in progress 127.9 154.6
Equipment and real estate under capital leases 14.6 1.5
1,731.9 1,575.7
Less accumulated depreciation and
amortization of capital lease assets (1,024.5) (944.9)
$ 707.4 $ 630.8
Depreciation expense and amortization of property, plant and
equipment was $144.7, $141.1 and $141.5 for 2013, 2012 and 2011,
respectively, including software depreciation of $39.3, $35.1, and
$34.0 for 2013, 2012 and 2011, respectively.
LABORATORY CORPORATION OF AMERICA
Notes to Consolidated Financial Statements