What changed in this filing

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Item 1. Financial Statements

2021-08-05 compared with 2021-05-04 · 213 added, 152 removed, 612 unchanged (37% of the section changed)

6 unchanged sentences

Cash and cash equivalents $ 1,963.2 $ 1,320.8

Accounts receivable, net of allowance for doubtful accounts of $21.0 and $22.1 as of March 31, 2021, and December 31, 2020, respectively 2,323.5 2,479.8

Accounts receivable, net 2,210.1 2,479.8

Unbilled services 637.0 536.8

27 unchanged sentences

Shareholders’ equity:

Common stock, 97.8 and 97.5 shares outstanding at March 31, 2021, and December 31, 2020, respectively 9.0 9.0

Common stock, 96.7 and 97.5 shares outstanding at June 30, 2021, and December 31, 2020, respectively 8.9 9.0

Additional paid-in capital — 110.3

7 unchanged sentences

(in millions, except per share data)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2021 2020 2021 2020

Revenues $ 3,840.7 $ 2,768.8 $ 8,002.2 $ 5,592.6

5 unchanged sentences

Restructuring and other charges 9.6 6.4 28.8 31.8

Operating income (loss) 1,057.9 ( 192.6 )

Operating income 704.1 297.7 1,762.0 105.1

Other income (expense):

3 unchanged sentences

Other, net 14.1 47.7 19.6 31.6

Earnings (loss) before income taxes 1,021.8 ( 267.7 )

Earnings before income taxes 650.6 297.0 1,672.4 29.3

Provision for income taxes 182.6 65.4 434.3 114.6

8 unchanged sentences

(in millions, except per share data)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2021 2020 2021 2020

Net earnings (loss) $ 468.0 $ 231.6 $ 1,238.1 $ ( 85.3 )

1 unchanged sentence

Net benefit plan adjustments 2.1 2.7 5.1 5.4

Other comprehensive loss before tax ( 63.8 ) ( 144.8 )

Benefit for income tax related to items of comprehensive earnings ( 0.8 ) ( 0.7 )

Other comprehensive loss, net of tax ( 64.6 ) ( 145.5 )

Other comprehensive earnings (loss) before tax 45.9 69.6 ( 17.9 ) ( 75.1 )

Provision (benefit) for income tax related to items of comprehensive earnings ( 0.6 ) ( 0.7 ) ( 1.4 ) ( 1.5 )

Other comprehensive earnings (loss), net of tax 45.3 68.9 ( 19.3 ) ( 76.6 )

Comprehensive earnings (loss) 513.3 300.5 1,218.8 ( 161.9 )

14 unchanged sentences

Adoption of credit loss accounting standard — — ( 7.0 ) — ( 7.0 )

Net earnings (loss) attributable to Laboratory Corporation of America Holdings — — ( 317.2 ) — ( 317.2 )

Net loss attributable to Laboratory Corporation of America Holdings — — ( 317.2 ) — ( 317.2 )

Other comprehensive earnings, net of tax — — — ( 145.5 ) ( 145.5 )

4 unchanged sentences

BALANCE AT MARCH 31, 2020 $ 9.0 $ — $ 7,529.0 $ ( 517.9 ) $ 7,020.1

Net earnings attributable to Laboratory Corporation of America Holdings — — 231.6 — 231.6

Other comprehensive earnings, net of tax — — — 68.9 68.9

Issuance of common stock under employee stock plans — 1.8 — — 1.8

Net share settlement tax payments from issuance of stock to employees — ( 9.5 ) — — ( 9.5 )

Stock compensation — 39.8 — — 39.8

BALANCE AT JUNE 30, 2020 $ 9.0 $ 32.1 $ 7,760.6 $ ( 449.0 ) $ 7,352.7

BALANCE AT DECEMBER 31, 2020 $ 9.0 $ 110.3 $ 9,402.3 $ ( 161.9 ) $ 9,359.7

6 unchanged sentences

BALANCE AT MARCH 31, 2021 $ 9.0 $ 67.1 $ 10,171.9 $ ( 226.5 ) $ 10,021.5

Net earnings attributable to Laboratory Corporation of America Holdings — — 467.4 — 467.4

Other comprehensive earnings, net of tax — — — 45.3 45.3

Issuance of common stock under employee stock plans — 1.9 — — 1.9

Net share settlement tax payments from issuance of stock to employees — ( 14.9 ) — — ( 14.9 )

Stock compensation — 23.9 — — 23.9

Purchase of common stock ( 0.1 ) ( 78.0 ) ( 221.9 ) — ( 300.0 )

BALANCE AT JUNE 30, 2021 $ 8.9 $ — $ 10,417.4 $ ( 181.2 ) $ 10,245.1

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2 unchanged sentences

(in millions)

Three Months Ended March 31,

Six Months Ended June 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

8 unchanged sentences

Change in assets and liabilities (net of effects of acquisitions and divestitures):

Decrease in accounts receivable 146.7 46.7

(Increase) decrease in accounts receivable 265.0 ( 124.2 )

Increase in unbilled services ( 100.3 ) ( 58.9 )

Increase in supplies inventory ( 17.5 ) ( 98.4 )

Increase in prepaid expenses and other ( 51.9 ) ( 3.0 )

(Increase) decrease in prepaid expenses and other ( 31.0 ) 33.1

Decrease in accounts payable ( 44.3 ) ( 88.9 )

Increase (decrease) in unearned revenue 31.8 ( 11.2 )

Increase in unearned revenue 37.7 28.9

Increase (decrease) in accrued expenses and other ( 139.6 ) 54.7

3 unchanged sentences

Proceeds from sale of assets 2.7 7.2

Proceeds from sale of business 13.1 —

Proceeds from sale or distribution of investments — 1.0

3 unchanged sentences

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from senior note offerings 1,000.0 —

Payments on senior notes ( 1,000.0 ) —

Payments on term loan ( 375.0 ) —

19 unchanged sentences

For further financial information about these segments, see Note 14 Business Segment Information to the Condensed Consolidated Financial Statements.

During the three months ended March 31, 2021, Dx and DD contributed approximately 65 % and 35 % respectively, of revenues to the Company.

During the three months ended June 30, 2021, Dx and DD contributed approximately 61 % and 39 % respectively, of revenues to the Company.

During the six months ended June 30, 2021, Dx and DD contributed approximately 63 % and 37 % respectively of revenues to the Company.

The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries for which it exercises control.

6 unchanged sentences

Revenues and expenses are translated at average monthly exchange rates prevailing during the period.

Resulting translation adjustments are included in “Accumulated other comprehensive income.”

Resulting translation adjustments are included in “Accumulated other comprehensive income (loss).”

The accompanying condensed consolidated financial statements of the Company are unaudited.

3 unchanged sentences

The year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles.

The condensed consolidated financial statements and notes are presented in accordance with the rules and regulations of the United States (U.S.) Securities and Exchange Commission (SEC) and do not contain certain information included in the Company’s 2020 Annual Report on Form 10-K (Annual Report).

Therefore, these interim statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report.

10 unchanged sentences

New Accounting Pronouncements

In March 2020, the FASB issued a new accounting standard to provide optional expedients and exceptions if certain conditions are met for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform.

The expedients and exceptions in the standard are effective between March 12,

In January 2021, the FASB issued a new accounting standard to clarify that certain optional expedients and exceptions relative to reference rate reform for contract modification and hedge accounting apply to derivatives that are affected by the discounting transition.

An entity may elect to apply the amendment on a full retrospective basis as of any date from the

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

1 unchanged sentence

(dollars and shares in millions, except per share data)

2020, and December 31, 2022.

The Company has not elected to apply any of the expedients or exceptions for the period ended March 31, 2021, and is currently evaluating the impact this new standard will have on the consolidated financial statements.

An entity may elect to apply the amendment on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance.

beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance.

The adoption of this standard is not expected to have a material impact on the consolidated financial statements.

The Company's revenues by segment and by payers/customer groups for the three months ended March 31, 2021, and 2020, were as follows:

For the Three Months Ended March 31, 2021 For the Three Months Ended March 31, 2020

The Company's revenues by segment and by payers/customer groups for the three and six months ended June 30, 2021, and 2020, were as follows:

For the Three Months Ended June 30, 2021 For the Three Months Ended June 30, 2020

North America Europe Other Total North America Europe Other Total

7 unchanged sentences

Total revenues 84 % 12 % 4 % 100 % 79 % 12 % 9 % 100 %

For the Six Months Ended June 30, 2021 For the Six Months Ended June 30, 2020

North America Europe Other Total North America Europe Other Total

Payer/Customer

Clients 18 % — % — % 18 % 19 % — % — % 19 %

Patients 6 % — % — % 6 % 7 % — % — % 7 %

Medicare and Medicaid 6 % — % — % 6 % 7 % — % — % 7 %

Third-party 33 % — % — % 33 % 27 % — % — % 27 %

Total Dx revenues by payer 63 % — % — % 63 % 60 % — % — % 60 %

Biopharmaceutical and medical device companies 22 % 11 % 4 % 37 % 19 % 13 % 8 % 40 %

Total revenues 85 % 11 % 4 % 100 % 79 % 13 % 8 % 100 %

Revenues in the U.S.

were $ 3,472.5 ( 83 %) and $ 2,165.3 ( 77 %) for the three months ended March 31, 2021, and 2020.

were $ 3,091.3 ( 80.5 %) and $ 2,129.0 ( 76.9 %) for the three months ended June 30, 2021, and 2020, respectively and for the six months ended June 30, 2021, and 2020, were $ 6,537.4 ( 81.7 %) and $ 4,294.2 ( 76.8 %), respectively.

Contract costs

10 unchanged sentences

Amortization of deferred contract fulfillment costs is included in cost of goods sold.

March 31, 2021 December 31, 2020

Sales commission assets $ 36.0 $ 32.6

Deferred contract fulfillment costs 14.3 12.6

Total $ 50.3 $ 45.2

Amortization related to sales commission assets and associated payroll taxes for the three months ended March 31, 2021, and 2020, was $ 6.9 and $ 5.3 , respectively.

Amortization related to deferred contract fulfillment costs for the three months ended March 31, 2021, and 2020, was $ 3.5 and $ 3.0 , respectively.

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

1 unchanged sentence

(dollars and shares in millions, except per share data)

June 30, 2021 December 31, 2020

Sales commission assets $ 36.4 $ 32.6

Deferred contract fulfillment costs 14.9 12.6

Total $ 51.3 $ 45.2

Amortization related to sales commission assets and associated payroll taxes for the three months ended June 30, 2021, and 2020, was $ 6.4 and $ 5.5 , respectively and for the six month periods ended June 30, 2021, and 2020, was $ 13.3 and $ 10.8 respectively.

Amortization related to deferred contract fulfillment costs for the three months ended June 30, 2021, and 2020, was $ 3.0 and $ 2.3 , respectively, and was $ 6.5 and $ 5.3 , respectively, for the six month periods ended June 30, 2021, and 2020.

Receivables, Unbilled Services and Unearned Revenue

3 unchanged sentences

The following table provides information about receivables, unbilled services, and unearned revenue (contract liabilities) from contracts with customers which primarily exist within DD.

March 31, 2021 December 31, 2020

June 30, 2021 December 31, 2020

Receivables, which are included in accounts receivable $ 1,086.2 $ 1,001.5

1 unchanged sentence

Unearned revenue 529.6 492.2

Revenues recognized during the period, that were included in the unearned revenue balance at the beginning of the period for the three months ended March 31, 2021, and 2020, were $ 152.3 and $ 121.8 , respectively.

Revenues recognized during the period, that were included in the unearned revenue balance at the beginning of the period were $ 233.0 and $ 102.2 for the six months ended June 30, 2021, and 2020, respectively.

Credit Loss Rollforward

The Company estimates future expected losses on accounts receivable, unbilled services and notes receivable over the remaining collection period of the instrument.

The rollforward for the allowance for credit losses for the three months ended March 31, 2021 is as follows:

For the Three Months Ended March 31, 2021

The rollforward for the allowance for credit losses for the six months ended June 30, 2021 is as follows:

For the Six Months Ended June 30, 2021

Accounts Receivable Unbilled Services Note and Other Receivables Total

Allowance for credit losses as of December 31, 2020 $ 22.1 $ 11.3 $ 5.7 $ 39.1

Balance as of December 31, 2020 $ 22.1 $ 11.3 $ 5.7 $ 39.1

Plus, credit loss expense (credit) ( 0.4 ) — — ( 0.4 )

Less, write offs 0.8 ( 0.1 ) — 0.7

Ending allowance for credit losses $ 21.0 $ 11.3 $ 5.7 $ 38.0

Balance as of June 30, 2021 $ 20.9 $ 11.4 $ 5.7 $ 38.0

Performance Obligations Under Long-Term Contracts

Long-term contracts at the Company consist primarily of fully managed clinical studies within DD.

The amount of existing performance obligations under such long-term contracts unsatisfied as of March 31, 2021, was $ 5,563.4 .

The amount of existing performance obligations under such long-term contracts unsatisfied as of June 30, 2021, was $ 5,616.6 .

The Company expects to recognize revenue over the remaining contract term of the individual projects, with contract terms generally ranging from 1 to 8 years.

Within DD, revenues of $ 16.5 and $ 9.7 were recognized during the three months ended March 31, 2021, and 2020, respectively, from performance obligations that were satisfied in previous periods.

Within DD, revenues of $ 12.2 and $ 4.0 were recognized during the three months ended June 30, 2021 and 2020, respectively and revenues of $ 28.7 and $ 13.7 were recognized during the six months ended June 30, 2021 and 2020, respectively, from performance obligations that were satisfied in previous periods.

This revenue primarily relates to adjustments related to changes in scope in full service clinical studies, and to a lesser extent, changes in estimates.

BUSINESS ACQUISITIONS AND DISPOSITIONS

During the three months ended March 31, 2021, the Company acquired a business and related assets for approximately $ 34.1 in cash within Dx.

The purchase consideration for the acquisition in the three months ended March 31, 2021, has been allocated under the acquisition method of accounting to the estimated fair market value of the net assets acquired, including approximately $ 17.6 in identifiable intangible assets and a residual amount of non-tax deductible goodwill of approximately $ 15.6 .

During the six months ended June 30, 2021, the Company acquired a business and related assets for approximately $ 34.1 in cash within Dx.

The purchase consideration for the acquisition in the six months ended June 30, 2021, has been allocated under the acquisition method of accounting to the estimated fair market value of the net assets acquired, including approximately $ 17.6 in identifiable intangible assets and a residual amount of non-tax deductible goodwill of approximately $ 15.6 .

The amortization periods for intangible assets acquired from the business range from 5 to 15 years for customer relationships and non-compete agreements.

The acquisition was made primarily to expand the Company's services for hospitals and health system laboratories.

The acquisition was made primarily to expand the Company's services for hospitals and health

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars and shares in millions, except per share data)

system laboratories.

The excess of the fair value of the consideration conveyed over the fair value of the net assets acquired was recorded as goodwill.

The goodwill reflects the Company's expectations to utilize the acquired business' workforce and established relationships and the benefits of being able to leverage operational efficiencies with favorable growth opportunities in these markets.

In addition, during the six months ended June 30, 2021, the Company sold certain assets within DD with proceeds of $ 13.1 and a loss of $ 5.0 recorded in Other, net on the Condensed Consolidated Statement of Operations.

EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is computed by dividing net earnings (loss) attributable to Laboratory Corporation of America Holdings by the weighted average number of common shares outstanding.

Diluted earnings (loss) per share is computed by dividing net earnings (loss) including the impact of dilutive adjustments by the weighted average number of common shares outstanding plus potentially dilutive shares, as if they had been issued at the earlier of the date of issuance or

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars and shares in millions, except per share data)

the beginning of the period presented.

Potentially dilutive common shares result primarily from the Company’s outstanding stock options, restricted stock awards, restricted stock units, and performance share awards.

The following represents a reconciliation of basic earnings (loss) per share to diluted earnings (loss) per share:

Three Months Ended March 31,

Earnings Shares Per Share Amount Earnings (Loss) Shares Per Share Amount

Three Months Ended June 30, Six Months Ended June 30,

2021 2020 2021 2020

Earnings Shares Per Share Amount Earnings (Loss) Shares Per Share Amount Earning Shares Per Share Amount Earnings Shares Per Share Amount

Basic earnings (loss) per share:

5 unchanged sentences

The following table summarizes the potential common shares not included in the computation of diluted earnings per share because their impact would have been antidilutive:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2021 2020 2021 2020

Employee stock options and awards 0.1 0.8 0.1 1.3

RESTRUCTURING AND OTHER CHARGES

During the three months ended March 31, 2021, the Company recorded net restructuring and other charges of $ 19.2 :

During the three months ended June 30, 2021, the Company recorded net restructuring and other charges of $ 9.6 :

$ 6.0 within Dx and $ 3.6 within DD.

The charges were comprised of $ 6.1 related to severance and other personnel costs and $ 3.5 in facility closures, lease terminations, and general integration activities.

The charges were offset by the reversal of previously established liability of $ 0.1 in unused facility-related costs.

During the three months ended March 31, 2020, the Company recorded net restructuring and other charges of $ 25.4 :

The charges were adjusted by an increase of $ 0.1 of previously established severance liabilities and the reversal of previously established liability of $ 0.1 in unused facility-related costs.

During the six months ended June 30, 2021, the Company recorded net restructuring and other charges of $ 28.8 :

$ 13.5 within Dx and $ 15.3 within DD.

The charges were comprised of $ 5.1 related to severance and other personnel costs, $ 4.7 for a DD lab facility impairment, and $ 15.8 in costs associated with facility closures, impairment of operating lease right-of-use assets, and general integration initiatives.

The charges were offset by the reversal of previously established liability of $ 0.2 in unused facility reserves.

The charges were comprised of $ 10.2 related to severance and other personnel costs and $ 18.7 in facility closures, lease terminations, and general integration activities.

The charges were adjusted by an increase of $ 0.1 of previously established severance liabilities and the reversal of previously established liability of $ 0.2 in unused facility-related costs.

During the three months ended June 30, 2020, the Company recorded net restructuring and other special charges of $ 6.4 :

$ 3.7 within Dx and $ 2.7 within DD.

The charges were comprised of $ 5.4 related to severance and other personnel costs, $ 3.3 for a DD lab facility and equipment impairment, and $ 4.2 in facility closures, impairment of operating lease right-of-use assets, and general integration initiatives.

The charges were offset by the reversal of previously established reserves of $ 1.1 and $ 5.5 in unused severance and facility-related costs, respectively.

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars and shares in millions, except per share data)

During the six months ended June 30, 2020, the Company recorded net restructuring and other charges of $ 31.8 :

$ 11.8 within Dx and $ 20.0 within DD.

The charges were comprised of $ 10.5 related to severance and other personnel costs, $ 8.0 for a DD lab facility impairment and equipment impairments, and $ 20.0 in costs associated with facility closures, impairment of operating lease right-of-use assets, and general integration initiatives.

The charges were offset by the reversal of previously established liability of $ 1.0 and $ 5.7 in unused severance costs and facility-related costs, respectively.

The following represents the Company’s restructuring reserve activities for the period indicated:

4 unchanged sentences

Cash payments and other adjustments ( 4.8 ) ( 8.2 ) ( 3.1 ) ( 9.1 ) ( 25.2 )

Balance as of March 31, 2021 $ — $ 0.5 $ 2.6 $ 6.2 $ 9.3

Balance as of June 30, 2021 $ 0.8 $ 0.4 $ 4.3 $ 5.9 $ 11.4

Current $ 8.9

1 unchanged sentence

GOODWILL AND INTANGIBLE ASSETS

The changes in the carrying amount of goodwill for the three months ended March 31, 2021, are as follows:

The changes in the carrying amount of goodwill for the six months ended June 30, 2021, are as follows:

Balance as of December 31, 2020 $ 3,800.2 $ 3,951.3 $ 7,751.5

1 unchanged sentence

Foreign currency impact and other adjustments to goodwill 5.8 ( 28.4 ) ( 22.6 )

Balance as of March 31, 2021 $ 3,820.3 $ 3,900.2 $ 7,720.5

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars and shares in millions, except per share data)

Balance as of June 30, 2021 $ 3,821.6 $ 3,922.9 $ 7,744.5

The Company assesses goodwill and indefinite-lived intangibles for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable.

3 unchanged sentences

The components of identifiable intangible assets are as follows:

March 31, 2021 December 31, 2020

June 30, 2021 December 31, 2020

Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net

6 unchanged sentences

$ 6,038.3 $ ( 2,284.5 ) $ 3,753.8 $ 6,090.1 $ ( 2,129.0 ) $ 3,961.1

Amortization of intangible assets for the three months ended March 31, 2021, and 2020, was $ 92.1 and $ 62.3 , respectively.

Amortization of intangible assets for the three and six months ended June 30, 2021, and 2020, was $ 92.4 and $ 60.1 and $ 184.5 and $ 122.4 , respectively.

During the fourth quarter of 2020, as part of a rebranding initiative, the Company reduced the estimated useful life of its trade name assets to reflect their anticipated use through December 2021.

This change in estimated useful life resulted in accelerated amortization of $ 29.2 during the three months ended March 31, 2021.

This change in estimated useful life resulted in accelerated amortization of $ 28.0 and $ 57.2 , respectively, during the three and six months ended June 30,

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars and shares in millions, except per share data)

Amortization expense for the net carrying amount of intangible assets is estimated to be $ 177.3 for the remainder of fiscal 2021, $ 220.2 in fiscal 2022, $ 217.1 in fiscal 2023, $ 212.5 in fiscal 2024, $ 200.4 in fiscal 2025, and $ 2,135.9 thereafter.

Short-term borrowings and the current portion of long-term debt at March 31, 2021, and December 31, 2020, consisted of the following:

Short-term borrowings and the current portion of long-term debt at June 30, 2021, and December 31, 2020, consisted of the following:

2021 December 31, 2020

3.20% senior notes due 2022 $ 500.0 $ —

2019 Term Loan $ — $ 375.0

2 unchanged sentences

Total short-term borrowings and current portion of long-term debt $ 1.8 $ 376.7

Long-term debt at March 31, 2021, and December 31, 2020, consisted of the following:

Long-term debt at June 30, 2021, and December 31, 2020, consisted of the following:

2021 December 31, 2020

8 unchanged sentences

2.95% senior notes due 2029 650.0 650.0

2.70% senior notes due 2031 509.5 —

4.70% senior notes due 2045 900.0 900.0

Debt issuance costs ( 42.4 ) ( 37.1 )

1 unchanged sentence

Total long-term debt $ 5,422.6 $ 5,419.0

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars and shares in millions, except per share data)

On May 26, 2021, the Company issued new senior notes representing $ 1,000.0 in debt securities and consisting of $ 500.0 aggregate principal amount of 1.55 % senior notes due 2026 and $ 500.0 aggregate principal amount of 2.70 % senior notes due 2031.

Interest on these notes is payable semi-annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2021.

Net proceeds from the offering of these notes were $ 989.4 after deducting underwriting discounts and other expenses of the offering.

The net proceeds were used, along with cash on hand, to redeem, prior to maturity, the Company's outstanding 3.20 % senior notes due February 1, 2022 and 3.75 % senior notes due August 23, 2022.

During the second quarter of 2021, the Company entered into fixed-to-variable interest rate swap agreements for its 2.70 % senior notes due 2031 with an aggregate notional amount of $ 500.0 and variable interest rates based on three-month LIBOR plus 1.0706 % to hedge against changes in the fair value of a portion of the Company's long-term debt.

These interest rate swaps are included in other long-term assets and added to the value of the senior notes with an aggregate fair value of $ 9.5 at June 30, 2021.

Credit Facilities

1 unchanged sentence

The Company paid off the 2019 Term Loan balance during the first quarter of 2021.

The 2019 Term Loan balance at March 31, 2021, and December 31, 2020, was $ 0.0 and $ 375.0 , respectively.

The Company also maintains a senior revolving credit facility, which was amended and restated on April 30, 2021.

It consists of a five-year facility in the principal amount of up to $ 1,000.0 , with the option of increasing the facility by up to an additional $ 500.0 (which was $ 350.0 prior to the amendment and restatement), subject to the agreement of one or more new or existing lenders to provide such additional amounts and certain other customary conditions.

It consists of a five-year facility in the principal amount of up to $ 1,000.0 , with the option of increasing the facility by up to an additional $ 500.0 , subject to the agreement of one or more new or existing lenders to provide such additional amounts and certain other customary conditions.

The revolving credit facility also provides for a subfacility of up to $ 100.0 for swing line borrowings and a subfacility of up to $ 150.0 for issuances of letters of credit.

The Company is required to pay a facility fee on the aggregate commitments under the revolving credit facility, at a per annum rate ranging from 0.100% to 0.225% (which was a per annum rate ranging from 0.100% to 0.25% prior to the amendment and restatement), depending on the Company's debt ratings.

The Company is required to pay a facility fee on the aggregate commitments under the revolving credit facility, at a per annum rate ranging from 0.100% to 0.225% , depending on the Company's debt ratings.

The revolving credit facility is permitted to be used for general corporate purposes, including working capital, capital expenditures, funding of share repurchases and certain other payments, acquisitions, and other investments.

There were no balances outstanding on the Company's current revolving credit facility as of March 31, 2021 and December 31, 2020.

As of March 31, 2021, the effective interest rate on the revolving credit facility was 1.09 %.

There were no balances outstanding on the Company's current revolving credit facility as of June 30, 2021 and

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars and shares in millions, except per share data)

December 31, 2020.

As of June 30, 2021, the effective interest rate on the revolving credit facility was 1.10 %.

The credit facility expires on April 30, 2026.

Under the revolving credit facility, the Company is subject to negative covenants limiting subsidiary indebtedness and certain other covenants typical for investment grade-rated borrowers, and the Company is required to maintain certain leverage ratios.

The Company was in compliance with all covenants in the revolving credit facility at March 31, 2021, and expects that it will remain in compliance with its existing debt covenants for the next twelve months.

The Company's availability of $ 1,000.0 at March 31, 2021, under its revolving credit facility reflects a reduction equivalent to the amount of the Company's outstanding letters of credit, if applicable.

There were no outstanding letters of credit as of March 31, 2021.

The Company was in compliance with all covenants in the revolving credit facility at June 30, 2021, and expects that it will remain in compliance with its existing debt covenants for the next twelve months.

The Company's availability of $ 1,000.0 at June 30, 2021, under its revolving credit facility reflects a reduction equivalent to the amount of the Company's outstanding letters of credit, if applicable.

There were no outstanding letters of credit under the facility as of June 30, 2021.

PREFERRED STOCK AND COMMON SHAREHOLDERS’ EQUITY

1 unchanged sentence

The Company is authorized to issue up to 30.0 shares of preferred stock, par value $ 0.10 per share.

There were no preferred shares outstanding as of March 31, 2021, and December 31, 2020.

There were no preferred shares outstanding as of June 30, 2021 and December 31, 2020.

The changes in common shares issued are summarized below:

1 unchanged sentence

Common shares at December 31, 2020 97.5

Common stock issued under employee stock plans 0.6

Retirement of common stock ( 0.3 )

Common shares at March 31, 2021 97.8

Shares issued under employee stock plans 0.6

Shares repurchased ( 1.4 )

Common shares at June 30, 2021 96.7

Share Repurchase Program

During the three months ended March 31, 2021, the Company purchased 0.3 shares of its common stock at an average price of $218.27.

During the six months ended June 30, 2021, the Company purchased 1.4 shares of its common stock at an average price of $ 257.38 .

When the Company repurchases shares, the amount paid to repurchase the shares in excess of the par or stated value is allocated to additional paid-in-capital unless subject to limitation or the balance in additional paid-in-capital is exhausted.

Remaining amounts are recognized as a reduction in retained earnings.

As of March 31, 2021, the Company had outstanding authorization from the board of directors to purchase up to $ 731.5 of the Company's common stock.

As of June 30, 2021, the Company had outstanding authorization from the board of directors to purchase up to $ 431.5 of the Company's common stock.

The repurchase authorization has no expiration date.

Accumulated Other Comprehensive Earnings

Accumulated Other Comprehensive Earnings (Loss)

The components of accumulated other comprehensive earnings (loss) are as follows:

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Current year adjustments ( 23.0 ) 10.2 ( 12.8 )

( 66.8 ) 3.0 ( 63.8 )

Amounts reclassified from accumulated other comprehensive income — ( 5.1 ) ( 5.1 )

Tax effect of adjustments — ( 1.4 ) ( 1.4 )

Balance as of March 31, 2021 $ ( 88.1 ) $ ( 138.4 ) $ ( 226.5 )

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars and shares in millions, except per share data)

Balance as of June 30, 2021 $ ( 44.3 ) $ ( 136.9 ) $ ( 181.2 )

The Company does not recognize a tax benefit unless it concludes that it is more likely than not that the benefit will be sustained on audit by the taxing authority based solely on the technical merits of the associated tax position.

If the recognition threshold is met, the Company recognizes a tax benefit measured at the largest amount of the tax benefit that it believes is greater than 50 % likely to be realized.

The 2021 tax rate was favorable to the 2020 tax rate due primarily to the 2020 impairment charges for which either no tax benefit was recorded (as they were not deductible) or the associated tax assets required a full valuation allowance.

The gross unrecognized income tax benefits were $ 48.9 and $ 48.8 at March 31, 2021, and December 31, 2020, respectively.

The year to date 2021 tax rate was favorable to the corresponding year to date 2020 tax rate due primarily to the 2020 impairment charges for which either no tax benefit was recorded (as they were not deductible) or the associated tax assets required a full valuation allowance partially offset by the 2021 revaluation of the United Kingdom net deferred tax liabilities reflecting a 25% effective tax rate as of 2023.

The gross unrecognized income tax benefits were $ 48.8 and $ 48.8 at June 30, 2021, and December 31, 2020, respectively.

It is anticipated that the amount of the unrecognized income tax benefits will change within the next 12 months;

however, these changes are not expected to have a significant impact on the results of operations, cash flows or the financial position of the Company.

As of March 31, 2021, and December 31, 2020, $ 46.8 and $ 46.7 , respectively, are the approximate amounts of gross unrecognized income tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods.

however, these

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars and shares in millions, except per share data)

changes are not expected to have a significant impact on the results of operations, cash flows or the financial position of the Company.

As of June 30, 2021, and December 31, 2020, $ 46.7 and $ 46.7 , respectively, are the approximate amounts of gross unrecognized income tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods.

The Company recognizes interest and penalties related to unrecognized income tax benefits in income tax expense.

Accrued interest and penalties related to uncertain tax positions totaled $ 8.7 and $ 8.3 as of March 31, 2021, and December 31, 2020, respectively.

Accrued interest and penalties related to uncertain tax positions totaled $ 9.1 and $ 8.3 as of June 30, 2021, and December 31, 2020, respectively.

The Company has substantially concluded all U.S.

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The Company records an aggregate legal reserve, which is determined using calculations based on historical loss rates and assessment of trends experienced in settlements and defense costs.

In accordance with FASB Accounting Standards Codification Topic 450 “Contingencies,” the Company establishes reserves for judicial, regulatory, and arbitration matters outside the aggregate legal reserve if and when those matters present loss contingencies that are both

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars and shares in millions, except per share data)

probable and estimable and would exceed the aggregate legal reserve.

When loss contingencies are not both probable and estimable, the Company does not establish separate reserves.

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On August 17, 2011, the U.S.

District Court for the Southern District of New York unsealed a False Claims Act lawsuit, United States of America ex rel.

District Court for the

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars and shares in millions, except per share data)

Southern District of New York unsealed a False Claims Act lawsuit, United States of America ex rel.

NPT Associates v.

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Laboratory Corporation of America Holdings , which alleges that the Company's financial relationships with referring physicians violate federal and state anti-kickback statutes.

The Plaintiffs' Fourth Amended Complaint further alleges that the Company conspired with HDL and Singulex in violation of the Federal False Claims Act and the California and Illinois insurance fraud prevention acts by facilitating HDL's and Singulex's offers of

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

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(dollars and shares in millions, except per share data)

illegal inducements to physicians and the referral of patients to HDL and Singulex for laboratory testing.

The lawsuit seeks actual and treble damages and civil penalties for each alleged false claim, as well as recovery of costs, attorney's fees, and legal expenses.

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On March 12, 2021, the Company filed a Motion for Summary Judgment related to all remaining claims.

On June 16, 2021, the Court denied the Company’s Motion for Summary Judgment.

The Company will vigorously defend the lawsuit.

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars and shares in millions, except per share data)

Prior to the Company's acquisition of Sequenom, Inc.

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d/b/a American Medical Collection Agency (AMCA), an external collection agency, notified the Company about a security incident AMCA experienced that may have involved certain personal information about some of the Company’s patients (the AMCA Incident).

The Company referred patient balances to

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars and shares in millions, except per share data)

AMCA only when direct collection efforts were unsuccessful.

The Company referred patient balances to AMCA only when direct collection efforts were unsuccessful.

The Company’s systems were not impacted by the AMCA Incident.

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The Company was later informed by AMCA that health insurance information may have been included for some individuals, and because some insurance carriers utilize the Social Security Number as a subscriber identification number, the Social Security Number for some individuals may also have been affected.

No ordered tests, laboratory test results, or diagnostic information from the Company were in the AMCA affected system.

No ordered tests,

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars and shares in millions, except per share data)

laboratory test results, or diagnostic information from the Company were in the AMCA affected system.

The Company notified individuals for whom it had a valid mailing address.

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In August 2020, the Plaintiffs filed an Amended Complaint.

On April 26, 2021, the Plaintiffs and the Company each filed Motions for Summary Judgment and the Plaintiffs filed a Motion for Class Certification.

The Company will vigorously defend the lawsuit.

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On June 16, 2020, the Company was served with a Private Attorney General Act lawsuit by the same plaintiff in Jose Bermejo v.

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars and shares in millions, except per share data)

unpaid overtime, unpaid mean and rest break premiums, untimely payment of wages following separation of employment, failure to maintain accurate pay records, and non-reimbursement of business expenses.

Laboratory Corporation of America (Bermejo II), filed in the Superior Court of California, County of Los Angeles Central District, alleging that certain Company practices violated California Labor Code penalty provisions related to unpaid and minimum wages, unpaid overtime, unpaid meal and rest break premiums, untimely payment of wages following separation of employment, failure to maintain accurate pay records, and non-reimbursement of business expenses.

The second lawsuit seeks to recover civil penalties and recovery of attorney's fees and costs.

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The Company is cooperating with this request.

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars and shares in millions, except per share data)

On October 2, 2020, the Company was served with a putative class action lawsuit, Peterson v.

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The lawsuit seeks monetary damages, liquidated damages, civil penalties, and recovery of attorney's fees and costs.

On June 24, 2021, the District Court remanded the case to the Superior Court of California, County of Los Angeles on the grounds that potential damages did not meet the Class Action Fairness Act (“CAFA”), 28 U.S.C.

§ 1332(d), jurisdictional threshold.

The Company will vigorously defend the lawsuit.

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The Company will vigorously defend the lawsuit.

On June 14, 2021, a single plaintiff filed a Private Attorney General Act lawsuit, Becker v.

Laboratory Corporation of America, in the Superior Court of California, County of Orange, alleging various violations of the California Labor Code, including that the Plaintiff was not properly compensated for work and overtime hours, not properly paid meal and rest break premiums, not reimbursed for certain business-related expenses, and received inaccurate wage statements.

The lawsuit seeks monetary damages, civil penalties, and recovery of attorney’s fees and costs.

The Company will vigorously defend the lawsuit.

Under the Company's present insurance programs, coverage is obtained for catastrophic exposure as well as those risks required to be insured by law or contract.

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FAIR VALUE MEASUREMENTS

The Company’s population of financial assets and liabilities subject to fair value measurements as of March 31, 2021, and December 31, 2020, is as follows:

The Company’s population of financial assets and liabilities subject to fair value measurements as of June 30, 2021, and December 31, 2020, is as follows:

Fair Value Measurements as of

as of March 31, 2021

Balance Sheet Using Fair Value Hierarchy

Classification March 31, 2021 Level 1 Level 2 Level 3

June 30, 2021

Balance Sheet Fair Value as of Using Fair Value Hierarchy

Classification June 30, 2021 Level 1 Level 2 Level 3

Noncontrolling interest put Noncontrolling interest $ 16.6 $ — $ 16.6 $ —

Cross currency swaps Other liabilities 16.6 — 16.6 —

Interest rate swaps Other assets, net 9.5 — 9.5 —

Cash surrender value of life insurance policies Other assets, net 101.1 — 101.1 —

Deferred compensation liability Other liabilities 99.2 — 99.2 —

Investment in equity securities Other current assets 0.8 0.8 — —

Contingent consideration Other liabilities 12.8 — — 12.8

3 unchanged sentences

Fair Value Measurements as of

as of December 31, 2020

Balance Sheet Using Fair Value Hierarchy

December 31, 2020

Balance Sheet Fair Value as of Using Fair Value Hierarchy

Classification December 31, 2020 Level 1 Level 2 Level 3

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Adjustments ( 1.1 )

Balance at March 31, 2021 $ 12.8

Balance at June 30, 2021 $ 12.8

The Company has a noncontrolling interest put related to its Ontario subsidiary that has been classified as mezzanine equity in the Company’s condensed consolidated balance sheets.

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The carrying amounts of cash and cash equivalents, accounts receivable, income taxes receivable, and accounts payable are considered to be representative of their respective fair values due to their short-term nature.

The fair market value of the Senior Notes, based on market pricing, was approximately $ 5,844.6 and $ 6,121.8 as of March 31, 2021, and December 31, 2020, respectively.

The fair market value of the Senior Notes, based on market pricing, was approximately $ 5,892.8 and $ 6,121.8 as of June 30, 2021, and December 31, 2020, respectively.

The Company's note and debt instruments are classified as Level 2 instruments, as the fair market values of these instruments are determined using other observable inputs.

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The Company does not believe that its exposure to market risk is material to the Company’s financial position or results of operations.

Cross Currency Swaps

During the fourth quarter of 2018, the Company entered into six U.S.

Dollar to Swiss Franc cross-currency swap agreements with an aggregate notional value of $ 600.0 and which are accounted for as a hedge against the impact of foreign exchange movements on its net investment in a Swiss subsidiary.

Of the notional value, $ 300.0 matures in 2022 and $ 300.0 matures in 2025.

The cross currency swaps maturing in 2022 and 2025 with an aggregate fair value of $( 5.8 ) and $ 2.8 as of March 31, 2021, respectively, are included in other long-term liabilities.

The cross currency swaps maturing in 2022 and 2025 with an aggregate fair value of $( 26.0 ) and $( 14.4 ) as of December 31, 2020, respectively, are included in other long-term liabilities.

Changes in the fair value of the cross-currency swaps are recorded as a component of the foreign currency translation adjustment in accumulated other comprehensive income in the Condensed Consolidated Balance Sheet until the hedged item is

Interest Rate Swaps

These agreements were designated as hedges against changes in the fair value of a portion of the Company's long-term debt.

The aggregate fair value of $ 9.5 at June 30, 2021 was included as a component of other long-term assets and added to the reported value of the senior notes.

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

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(dollars and shares in millions, except per share data)

recognized in earnings.

The cumulative amount of the fair value hedging adjustment included in the current value of the cross currency swaps was $37.4 for the three months ended March 31, 2021, and was recognized as currency translation within the Condensed Consolidated Statement of Comprehensive Earnings.

There were no amounts reclassified from the Condensed Consolidated Statement of Comprehensive Earnings to the Condensed Consolidated Statement of Operations during the three months ended March 31, 2021.

Cross Currency Swaps

During the fourth quarter of 2018, the Company entered into U.S.

Dollar to Swiss Franc cross-currency swap agreements with an aggregate notional value of $ 600.0 .

These instruments are designated as a hedge against the impact of foreign exchange movements on its net investment in a Swiss subsidiary.

Of the notional value, $ 300.0 matures in 2022 and $ 300.0 matures in 2025.

The cross currency swaps maturing in 2022 and 2025 with an aggregate fair value of $( 13.2 ) and $( 3.5 ) as of June 30, 2021, respectively, are included in other long-term liabilities.

The cross currency swaps maturing in 2022 and 2025 with an aggregate fair value of $( 26.0 ) and $( 14.4 ) as of December 31, 2020, respectively, are included in other long-term liabilities.

The cumulative change in the fair value of these instruments of $( 13.6 ) and $ 23.7 for the three and six months ended June 30, 2021, respectively, was recognized as currency translation within the Condensed Consolidated Statement of Comprehensive Earnings.

The table below presents the fair value of derivatives on a gross basis and the balance sheet classification of those instruments:

March 31, 2021 December 31, 2020

June 30, 2021 December 31, 2020

Fair Value of Derivative Fair Value of Derivative

3 unchanged sentences

Derivatives Designated as Hedging Instruments

Interest rate swap Other assets, net $ 9.5 — $ 500.0 — — —

Cross currency swaps Other assets, net or Other liabilities $ — $ 16.6 $ 600.0 $ — $ 40.4 $ 600.0

1 unchanged sentence

Amount of pre-tax gain/(loss) included in other comprehensive income Amounts reclassified to the

Statement of Operations Amount of pre-tax gain/(loss) included in other comprehensive income Amounts reclassified to the

Statement of Operations

Three Months Ended March 31, Three Months Ended March 31,

Three Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30,

2021 2020 2021 2020 2021 2020 2021 2020

1 unchanged sentence

Cross currency swaps $ ( 13.6 ) $ ( 8.8 ) $ — $ — $ 23.7 $ 11.1 $ — $ —

No gains or losses from derivative instruments have been recognized into income for the three months ended March 31, 2021, and 2020.

No gains or losses from derivative instruments have been recognized into income for the three and six months ended June 30, 2021, and 2020.

SUPPLEMENTAL CASH FLOW INFORMATION

Three Months Ended March 31,

Supplemental schedule of cash flow information:

Six Months Ended June 30,

Cash paid during period for:

4 unchanged sentences

BUSINESS SEGMENT INFORMATION

The following table is a summary of segment information for the three months March 31, 2021, and 2020.

The following table is a summary of segment information for the three and six months ended June 30, 2021, and 2020.

The management approach has been used to present the following segment information.

This approach is based upon the way the management of the Company organizes segments within an enterprise for making operating decisions and assessing performance.

Financial information is reported on the basis that it is used internally by the chief operating decision maker (CODM) for evaluating segment performance and deciding how to allocate resources to segments.

Financial information is reported on the basis that it is used internally by the chief operating decision maker

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars and shares in millions, except per share data)

(CODM) for evaluating segment performance and deciding how to allocate resources to segments.

The Company’s chief executive officer has been identified as the CODM.

2 unchanged sentences

General management and administrative corporate expenses are included in general corporate expenses below.

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars and shares in millions, except per share data)

Three Months Ended

March 31, 2021

Three Months Ended Six Months Ended

June 30, June 30,

2021 2020 2021 2020

Dx $ 2,365.5 $ 1,692.7 $ 5,123.3 $ 3,394.7

6 unchanged sentences

General corporate expenses ( 46.8 ) ( 49.1 ) ( 94.4 ) ( 108.4 )

Total operating income (loss) 1,057.9 ( 192.6 )

Total operating income 704.1 297.7 1,762.0 105.1

Non-operating expenses, net ( 53.5 ) ( 0.7 ) ( 89.6 ) ( 75.8 )

Earnings (loss) before income taxes 1,021.8 ( 267.7 )

Earnings before income taxes 650.6 297.0 1,672.4 29.3

Provision for income taxes 182.6 65.4 434.3 114.6

2 unchanged sentences

Net earnings (loss) attributable to Laboratory Corporation of America Holdings $ 467.4 $ 231.6 $ 1,237.0 $ ( 85.6 )

SUBSEQUENT EVENT

On May 3, 2021, the Company entered into a definitive agreement to acquire select operating assets and intellectual property, from Myriad Genetics' autoimmune business unit, including the Vectra ® rheumatoid arthritis (RA) assay for $ 150.0 .

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements