LabCorp 2015 Annual Report Download - page 48

Index
of certain acquisitions including Genzyme Genetics and Westcliff Medical Laboratories, Inc. (Westcliff). These charges were offset by
restructuring credits of $4.8 resulting from the reversal of unused severance and facility 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.
(f) 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.
(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, 3.20% Senior Notes due 2022, 4.00% Senior Notes due 2023, 3.60% Senior Notes due 2025, 4.70% Senior
Notes due 2045, term loan, revolving credit facility and other long-term obligations. The accreted balance of the zero-coupon convertible
subordinated notes was $94.5, $93.9, $110.8, $130.0, and $135.5 at December 31, 2015, 2014, 2013, 2012, and 2011, 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,
$0.0, $350.0, and $350.5 at December 31, 2015, 2014, 2013, 2012, and 2011, respectively. The principal balance of the 5.625% Senior Notes
was $0.0 at December 31, 2015 and $250.0 at December 31, 2014, 2013, 2012, and 2011. The principal balance of the 3.125% Senior Notes was
$325.0 at December 31, 2015, 2014, 2013, 2012, and 2011. The principal balance of the 4.625% Senior Notes was $600.0 at December 31,
2015, 2014, 2013, 2012, and 2011. The aggregate fair value of the fixed-to-variable interest rate swap on the 4.625% Senior Notes was $21.6 at
December 31, 2015, $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, 2015, 2014, 2013 and 2012 and $0.0 for December 31, 2011. The principal balances of the 2.50% and
4.00% Senior Notes were $400.0 and $300.0, respectively, at December 31, 2015, 2014, and 2013 and $0.0 for all other years presented. The
outstanding balance on the term loan was $715.0 at December 31, 2015 and $0.0 for all other years presented. The outstanding balance on the
revolving credit facility was $0.0, $0.0, $0.0, $0.0, and $560.0 at December 31, 2015, 2014, 2013, 2012, and 2011, respectively. The remainder
of other long-term obligations consisted primarily of capital leases and mortgages payable with balances of $55.5, $39.2, $14.6, $0.0, and $0.0
at December 31, 2015, 2014, 2013, 2012, and 2011, respectively. Long-term obligations exclude amounts due to affiliates.
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