LabCorp 2013 Annual Report Download - page 43

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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 administrative 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 2015 bear interest at the rate of 5.625%
per annum from December 14, 2005, payable semi-annually on
June 15 and December 15.
The scheduled payments of long term debt and future
minimum lease payments for capital leases at the end of 2013 are
summarized as follows:
Notes and Capital
Other Leases Total
2014 $ 110.8 $ 2.4 $ 113.2
2015 250.0 2.4 252.4
2016 325.0 2.5 327.5
2017 500.0 2.5 502.5
2018 400.0 2.5 402.5
Thereafter 1,400.0 17.0 1,417.0
2,985.8 29.3 3,015.1
Less amounts representing interest – (14.7) (14.7)
Total long-term debt 2,985.8 14.6 3,000.4
Less current portion (110.8) (0.5) (111.3)
Long-term debt, due beyond one year $ 2,875.0 $ 14.1 $ 2,889.1
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:
2013 2012
Issued 108.1 115.8
In treasury (22.4) (22.3)
Outstanding 85.7 93.5
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, 2013 and 2012.
The changes in common shares issued and held in treasury are
summarized below:
Common shares issued
2013 2012 2011
Common stock issued at January 1 115.8 120.0 124.5
Common stock issued under employee stock plans 2.6 1.6 1.9
Common stock issued upon conversion
of zero-coupon subordinated notes 0.1 – 1.0
Retirement of common stock (10.4) (5.8) (7.4)
Common stock issued at December 31 108.1 115.8 120.0
Common shares held in treasury
2013 2012 2011
Common shares held in treasury at January 1 22.3 22.2 22.1
Surrender of restricted stock and performance
share awards 0.1 0.1 0.1
Common shares held in treasury at December 31 22.4 22.3 22.2
Share Repurchase Program
During 2013, the Company purchased 10.4 shares of its common
stock at a total cost of $1,015.6. As of December 31, 2013, the
Company had outstanding authorization from the Board of
Directors to purchase $1,058.5 of Company 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 Investment Swap Comprehensive
Adjustments Adjustments Adjustments Adjustments Earnings
Balance at December 31, 2010 $ 152.8 $ (62.9) – $ (1.4) $ 88.5
Current year adjustments (13.2) (65.3) – 2.4 (76.1)
Amounts reclassified from
accumulated other
comprehensive income(a) – 7.8 – – 7.8
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 (4.8) – – 26.5
Amounts reclassified from
accumulated other
comprehensive income(a) – 12.1 – – 12.1
Tax effect of adjustments (11.9) (2.8) – – (14.7)
Balance at December 31, 2012 162.9 (93.5) – – 69.4
Current year adjustments (63.2) 31.6 16.4 – (15.2)
Amounts reclassified from
accumulated other
comprehensive income(a) – 10.5 – – 10.5
Tax effect of adjustments 23.5 (15.7) (6.3) – 1.5
Balance at December 31, 2013 $ 123.2 $ (67.1) $ 10.1 $ – $ 66.2
(a) The amortization of prior service cost is included in the computation of net periodic benefit cost. Refer to Note 16 Pension and
Postretirement Plans for additional information regarding the Company’s net periodic benefit cost.
LABORATORY CORPORATION OF AMERICA
Notes to Consolidated Financial Statements