LabCorp 2014 Annual Report Download - page 96

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F-17
As of December 31: 2014 2013
Current assets $ 66.0 $ 43.4
Other assets 43.3 40.9
Total assets $ 109.3 $ 84.3
Current liabilities $ 28.2 $ 21.9
Other liabilities 1.4 1.3
Total liabilities 29.6 23.2
Partners' equity 79.7 61.1
Total liabilities and partners’ equity $ 109.3 $ 84.3
For the period January 1 - December 31: 2014 2013 2012
Net sales $ 283.8 $ 255.2 $ 249.0
Gross profit 81.3 84.1 86.4
Net earnings 31.0 37.7 42.2
The Company’s recorded investment in the Alberta joint venture partnership at December 31, 2014 includes $41.3 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. The Canadian partnership has a license to conduct diagnostic testing services in the province of Alberta.
Substantially all of its revenue is received as reimbursement from the Alberta government's health care programs. While the
Canadian license guarantees the joint venture the ability to conduct diagnostic testing in Alberta, it does not guarantee that the
provincial government will continue to reimburse diagnostic laboratory testing in future years at current levels. If the provincial
government decides to limit or reduce its reimbursement of laboratory diagnostic services, it would have a negative impact on the
profits and cash flows the Company derives from its Canadian joint venture. In December 2013, Alberta Health Services (“AHS”),
the Alberta government's health care program, issued a request for proposals for laboratory services that includes the scope of
services performed by the Canadian partnership. In October 2014, AHS informed the Canadian partnership that it was not selected
as the preferred proponent. In November 2014, the Canadian partnership submitted a vendor bid appeal. AHS has established a
Vendor Bid Appeal Panel to hear the appeal. If the AHS contract award remains with the preferred proponent, then the Canadian
partnership's revenues would decrease substantially and the carrying value of the Company's investment could potentially be
impaired.
6. ACCOUNTS RECEIVABLE, NET
December 31,
2014 December 31,
2013
Gross accounts receivable $ 1,027.3 $ 983.0
Less allowance for doubtful accounts (211.6)(198.3)
$ 815.7 $ 784.7
The provision for doubtful accounts was $276.5, $254.8 and $246.0 in 2014, 2013 and 2012 respectively.
LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in millions, except per share data)