LabCorp 2014 Annual Report Download - page 107

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F-28
2014 2013 2012
Balance as of January 1 $ 25.6 $ 36.4 $ 52.7
Increase in reserve for tax positions taken in the current year — 1.9 0.4
Increase (decrease) in reserve for tax positions taken in a prior period — — (8.0)
Decrease in reserve as a result of settlements reached with tax authorities — (4.4)(0.1)
Decrease in reserve as a result of lapses in the statute of limitations (8.9)(8.3)(8.6)
Balance as of December 31 $ 16.7 $ 25.6 $ 36.4
As of December 31, 2014 and 2013, $16.7 and $25.6, respectively, is the approximate amount of unrecognized income tax
benefits that, if recognized, would favorably affect the effective income tax rate in any future periods.
The Company has substantially concluded all U.S. federal income tax matters for years through 2011. Substantially all material
state and local, and foreign income tax matters have been concluded through 2009 and 2001, respectively.
The Internal Revenue Service concluded the examination of the Company's 2010 and 2011 income tax returns during 2013.
The Company has various state income tax examinations ongoing throughout the year. Canada Revenue Agency is conducting an
audit of the 2009 and 2010 Canadian income tax return. The Company believes adequate provisions have been recorded related
to all open tax years.
Substantially all of the profitable foreign earnings are repatriated on an annual basis and U.S. income taxes have been provided
accordingly. The unremitted foreign earnings as of December 31, 2014 are approximately $29.5. If repatriated to the U.S., the
incremental U.S. tax, net of any underlying foreign tax credit, would have increased the Company's overall income tax by
approximately $1.9.
14. STOCK COMPENSATION PLANS
Stock Incentive Plans
There are currently 10.2 shares authorized for issuance under the Laboratory Corporation of America Holdings 2012 Omnibus
Incentive Plan and at December 31, 2014 there were 6.1 additional shares available for grant under the Plan. This Plan was approved
by shareholders at the 2012 annual meeting.
Stock Options
The following table summarizes grants of non-qualified options made by the Company to officers, key employees, and non-
employee directors under all plans. Stock options are generally granted at an exercise price equal to or greater than the fair market
price per share on the date of grant. Also, for each grant, options vest ratably over a period of 3 years on the anniversaries of the
grant date, subject to their earlier expiration or termination.
Changes in options outstanding under the plans for the period indicated were as follows:
Number of
Options
Weighted-
Average
Exercise
Price
per Option
Weighted-
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value
Outstanding at December 31, 2013 4.6 $ 80.18
Granted — —
Exercised (1.3) 77.70
Cancelled — —
Outstanding at December 31, 2014 3.3 $ 81.07 5.6 $ 88.1
Vested and expected to vest at December 31, 2014 3.3 $ 81.05 5.6 $ 88.1
Exercisable at December 31, 2014 2.8 $ 80.35 5.3 $ 76.1
LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in millions, except per share data)