LabCorp 2014 Annual Report Download - page 69

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15. inability to achieve the expected benefits and synergies of the Covance acquisition could have a negative impact on the
Company's cash position, levels of indebtedness and stock price;
16. the inability of the Company and Covance to meet expectations regarding accounting and tax treatments related to the
Covance acquisition;
17. changes in government regulations pertaining to the pharmaceutical and biotechnology industries, changes in
reimbursement of pharmaceutical products, or reduced spending on research and development by pharmaceutical and
biotechnology customers;
18. termination, delay or reduction in scope of Covance Drug Development's contracts;
19. liability arising from errors or omissions in the performance of Covance Drug Development's contract research services;
20. damage to the Company's reputation, loss of business, harm from acts of animal rights extremists, or potential liability
arising from Covance Drug Development's animal research products;
21. adverse results in litigation matters;
22. inability to attract and retain experienced and qualified personnel;
23. failure to develop or acquire licenses for new or improved technologies, or potential use of new technologies by customers
to perform their own tests;
24. substantial costs arising from the inability to commercialize newly licensed tests or technologies or to obtain appropriate
coverage or reimbursement for such tests;
25. inability to obtain and maintain adequate patent and other proprietary rights for protection of the Company's products
and services and successfully enforce the Company's proprietary rights;
26. scope, validity and enforceability of patents and other proprietary rights held by third parties that may impact the
Company's ability to develop, perform, or market the Company's tests or operate its business;
27. business interruption or other impact on the business due to adverse weather (including hurricanes), fires and/or other
natural disasters, terrorism or other criminal acts, and/or widespread outbreak of influenza or other pandemic illness;
28. discontinuation or recalls of existing testing products;
29. loss of business or increased costs due to damage to the Company's reputation and significant litigation exposure arising
from failure in the Company's information technology systems, including an increase in testing turnaround time or billing
processes, failure to maintain the security of business information or systems or to protect against cyber security attacks,
inability to meet required financial reporting deadlines, or the failure to meet future regulatory or customer information
technology, data security and connectivity requirements;
30. business interruption, increased costs, and other adverse effects on the Company's operations due to the unionization of
employees, union strikes, work stoppages, or general labor unrest;
31. failure to maintain the Company's days sales outstanding and/or bad debt expense levels including negative impact on
the Company's reimbursement, cash collections, days sales outstanding and profitability arising from the failure of the
Company, third party payers or physicians to comply with the ICD-10-CM Code Set by the compliance date of October
1, 2015;
32. impact on the Company's testing volumes, cash collections and the availability of credit for general liquidity or other
financing needs arising from a significant deterioration in the economy or financial markets or in the Company's credit
ratings by Standard & Poor's and/or Moody's;
33. changes in reimbursement by foreign governments and foreign currency fluctuations; and
34. expenses and risks associated with international operations, including but not limited to compliance with the Foreign
Corrupt Practices Act, the U.K. Bribery Act, as well as laws and regulations that differ from those of the U.S., and
economic, political, legal and other operational risks associated with foreign markets.
Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
The Company addresses its exposure to market risks, principally the market risk associated with changes in interest rates,
through a controlled program of risk management that includes, from time to time, the use of derivative financial instruments such
as interest rate swap agreements. Although, as set forth below, the Company’s zero-coupon subordinated notes contain features
that are considered to be embedded derivative instruments, the Company does not hold or issue derivative financial instruments