LabCorp 2014 Annual Report Download - page 53

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51
closure liabilities. In addition, the Company recorded fixed assets impairment charges of $18.9 primarily related
to equipment, computer systems and leasehold 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.
(e) Following the closing of its acquisition of Orchid in mid-December 2011, the Company recorded a net $2.8 loss
on its divestiture of certain assets of Orchid's U.S. government paternity business, under the terms of the agreement
reached with the U.S. Federal Trade Commission. This non-deductible loss on disposal was recorded in Other
Income and Expense in the Company's Consolidated Statements of Operations and decreased net earnings for the
twelve months ended December 31, 2011 by $2.8.
(f) During 2010, the Company recorded net restructuring charges of $5.8 primarily related to work force reductions
and the closing of redundant and underutilized facilities. In addition, the Company recorded a special charge of
$6.2 related to the write-off of development costs incurred on systems abandoned during the year.
The Company incurred approximately $25.7 in professional fees and expenses in connection with the acquisition
of Genzyme Genetics and other acquisition activity, including significant costs associated with the Federal Trade
Commission’s review of the Company’s purchase of specified net assets of Westcliff. These fees and expenses are
included in selling, general and administrative expenses for the year ended December 31, 2010.
The Company also incurred $7.0 of financing commitment fees (included in interest expense for the year ended
December 31, 2010) in connection with the acquisition of Genzyme Genetics.
(g) Long-term obligations primarily include the Company’s zero-coupon convertible subordinated notes, 5.50% senior
notes due 2013, 5.625% senior notes due 2015, 3.125% senior notes due 2016, 2.20% senior notes due 2017, 2.50%
senior notes due 2018, 4.625% senior notes due 2020, 3.75% senior notes due 2022, 4.00% senior notes due 2023,
term loan, revolving credit facility and other long-term obligations. The accreted balance of the zero-coupon
convertible subordinated notes was $93.9, $110.8, $130.0, $135.5, and $286.7 at December 31, 2014, 2013, 2012,
2011, and 2010, respectively. The balance of the 5.50% senior notes, including principal and unamortized portion
of a deferred gain on an interest rate swap agreement, was $0.0, $0.0, $350.0, $350.5, and $350.9 at December 31,
2014, 2013, 2012, 2011, and 2010, respectively. The principal balance of the 5.625% senior notes was $250.0 at
December 31, 2014, 2013, 2012, 2011, and 2010. The principal balance of the 3.125% senior notes was $325.0 at
December 31, 2014, 2013, 2012, 2011 and 2010. The principal balance of the 4.625% senior notes was $600.0 at
December 31, 2014, 2013, 2012, 2011 and 2010. The aggregate fair value of the fixed-to-variable interest rate
swap on the 4.625% senior notes was $18.5 at December 31, 2014 and $0.0 for all other years presented. The
principal balances of the 2.20% and 3.75% senior notes were $500.0 each at December 31, 2014, 2013 and 2012
and $0.0 for all other years presented. The principal balances of the 2.50% and 4.00% senior notes were $400.0
and $300.0, respectively, at December 31, 2014 and 2013 and $0.0 for all other years presented. The term loan
was $0.0, $0.0, $0.0, $0.0, and $375.0 at December 31, 2014, 2013, 2012, 2011, and 2010, respectively. The revolving
credit facility was $0.0, $0.0, $0.0, $560.0, and $0.0 at December 31, 2014, 2013, 2012, 2011, and 2010, respectively.
The remainder of other long-term obligations consisted primarily of capital leases and mortgages payable with
balances of $39.2, $14.6, $0.0, $0.0, and $0.8 at December 31, 2014, 2013, 2012, 2011, and 2010, respectively.
Long-term obligations exclude amounts due to affiliates.