LabCorp 2014 Annual Report Download - page 98

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F-19
December 31, 2014 December 31, 2013
Gross
Carrying
Amount Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount Accumulated
Amortization
Net
Carrying
Amount
Customer relationships $ 1,361.6 $ (606.8) $ 754.8 $ 1,327.0 $ (545.1) $ 781.9
Patents, licenses and technology 125.9 (95.9) 30.0 116.2 (85.4) 30.8
Non-compete agreements 45.6 (31.7) 13.9 41.6 (25.3) 16.3
Trade names 133.3 (91.6) 41.7 131.4 (83.0) 48.4
Canadian licenses 635.4 — 635.4 694.6 — 694.6
$ 2,301.8 $ (826.0) $ 1,475.8 $ 2,310.8 $ (738.8) $ 1,572.0
A summary of amortizable intangible assets acquired during 2014, and their respective weighted average amortization periods
are as follows:
Amount
Weighted
Average
Amortization
Period
Customer relationships $ 37.6 17.8
Patents, licenses and technology 9.8 8.4
Non-compete agreements 4.2 5.0
Trade names 2.1 13.9
$ 53.7 14.9
Amortization of intangible assets was $76.7, $81.7 and $86.3 in 2014, 2013 and 2012, respectively. The Company recorded
earn-out and purchase accounting adjustments through amortization expense of $10.4, $5.8, and $0.0 in 2014, 2013 and 2012,
respectively. During 2012, the Company recorded $6.2 accelerated amortization expense relating to the termination of a technology
licensing agreement. Amortization expense of intangible assets is estimated to be $84.1 in fiscal 2015, $78.8 in fiscal 2016, $71.5
in fiscal 2017, $60.4 in fiscal 2018, $53.6 in fiscal 2019, and $462.2 thereafter.
The Company paid $0.0, $0.0 and $2.5 in 2014, 2013 and 2012 for certain exclusive and non-exclusive licensing rights to
diagnostic testing technology. These amounts are being amortized over the life of the licensing agreements.
9. ACCRUED EXPENSES AND OTHER
December 31,
2014 December 31,
2013
Employee compensation and benefits $ 183.9 $ 166.0
Self-insurance reserves 54.2 33.3
Accrued taxes payable 32.0 24.2
Royalty and license fees payable 8.2 8.1
Restructuring reserves 7.8 9.3
Acquisition related reserves 7.0 14.2
Interest payable 19.7 19.7
Other 28.6 35.2
$ 341.4 $ 310.0
LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in millions, except per share data)