LabCorp 2015 Annual Report Download - page 52

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Index
Integrated Genetics business (formerly Genzyme Genetics) and costs associated with the previously announced termination of an executive vice president.
These charges were offset by the reversal of previously established reserves of $0.7 in unused severance and $2.4 in unused facility-related costs.
During 2014, the Company announced Project Launchpad, a comprehensive business process improvement initiative to re-engineer LCD's systems and
processes to leverage technological advancements, create a sustainable and more efficient business model and improve the experience of all stakeholders.
The Company expects this initiative to drive savings in excess of $150.0 over a three year period beginning in 2015, with associated one-time costs of
approximately $30.0. The Company believes that any restructuring costs which may be incurred in future periods will be more than offset by subsequent
savings realized from these potential actions and that any related restructuring charges will not have a material impact on the Company's operations or
liquidity.

Years Ended December 31,
Change
2015
2014
2013
2015
2014
Interest expense $ 274.9
$ 109.5
$ 96.5
151.1%
13.5%
The increase in interest expense for 2015 as compared with 2014 is primarily due to the issuance of $3,900 in debt and other financing costs in
connection with the Acquisition. Another component of the increase was a $37.4 make-whole payment that was required in connection with the prepayment
of $250.0 Covance senior notes. In addition, the Company recorded $15.2 in interest expense relating to the deferred financing cost associated with the
Company's previous credit agreement and a term loan bridge financing facility to complete the Acquisition. The bridge facility was repaid in March 2015.
The increase in interest expense for 2014 as compared with 2013 is primarily due to the issuance of $700.0 of senior notes in November 2013, reductions
in borrowings under the Company's former Revolving Credit Facility, and Covance-related financing activities. This increase was also partially offset by a
decrease in interest expense on the Company's senior notes due 2020 as a result of entering into a fixed to floating interest rate swap in the third quarter of
2013.

Years Ended December 31,
Change
2015
2014
2013
2015
2014
Equity method income $ 10.0
$ 14.3
$ 16.9
(30.1)%
(15.4)%
Equity method income represents the Company's ownership share in joint venture partnerships along with equity investments in other companies in the
healthcare industry. All of these partnerships reside within LCD. The decrease in income in 2015 was primarily due to liquidation of the Company's interest
in one of the partnerships effective June 30, 2015.
The decrease in income in 2014 compared to 2013 is primarily the result of a decline in profitability of one of the Company's joint venture partnerships
due to a challenging business climate in its market.

Years Ended December 31,
Change
2015
2014
2013
2015
2014
Other, net $ (7.8)
$ 10.4
$ 2.1
(175.0)%
395.2%
Other, net represents the Company's gain on the sale of its investment in an equity security, partially offset by the impairment of other investments. The
decrease in other, net was due to the dissolution of one of the Company's equity investments in 2015 as compared to a gain on the sale of investment of an
equity investment in 2014.

Years Ended December 31,
2015
2014
2013
Income tax expense $ 294.1
$ 314.1
$ 340.2
Income tax expense as a % of income before tax 40.2%
38.0%
37.2%
52