What changed in this filing

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Item 1. Financial Statements

2021-11-02 compared with 2021-08-05 · 195 added, 164 removed, 661 unchanged (35% of the section changed)

3 unchanged sentences

(in millions)

September 30,

2021 December 31,

31 unchanged sentences

Shareholders’ equity:

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

Common stock, 95.8 and 97.5 shares outstanding at September 30, 2021, and December 31, 2020, respectively 8.8 9.0

Additional paid-in capital — 110.3

7 unchanged sentences

(in millions, except per share data)

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

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

14 unchanged sentences

Provision for income taxes 180.4 243.4 614.7 358.0

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

Net earnings 587.8 703.7 1,825.9 618.4

Net earnings attributable to the noncontrolling interest ( 0.5 ) ( 0.3 ) ( 1.6 ) ( 0.6 )

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

Basic earnings (loss) per common share $ 4.80 $ 2.38 $ 12.69 $ ( 0.88 )

Diluted earnings (loss) per common share $ 4.76 $ 2.37 $ 12.58 $ ( 0.88 )

Net earnings attributable to Laboratory Corporation of America Holdings $ 587.3 $ 703.4 $ 1,824.3 $ 617.8

Basic earnings per common share $ 6.10 $ 7.22 $ 18.79 $ 6.35

Diluted earnings per common share $ 6.05 $ 7.17 $ 18.63 $ 6.31

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

2 unchanged sentences

(in millions, except per share data)

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

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

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

Net earnings $ 587.8 $ 703.7 $ 1,825.9 $ 618.4

Foreign currency translation adjustments ( 91.6 ) 132.9 ( 114.6 ) 52.4

Net benefit plan adjustments 2.6 2.1 7.7 7.5

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

Other comprehensive earnings before tax ( 89.0 ) 135.0 ( 106.9 ) 59.9

Provision (benefit) for income tax related to items of comprehensive earnings ( 0.7 ) ( 0.6 ) ( 2.1 ) ( 2.1 )

Other comprehensive earnings (loss), net of tax ( 89.7 ) 134.4 ( 109.0 ) 57.8

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

Comprehensive earnings 498.1 838.1 1,716.9 676.2

Net earnings attributable to the noncontrolling interest ( 0.5 ) ( 0.3 ) ( 1.6 ) ( 0.6 )

Comprehensive earnings (loss) attributable to Laboratory Corporation of America Holdings $ 512.7 $ 300.5 $ 1,217.7 $ ( 162.2 )

Comprehensive earnings attributable to Laboratory Corporation of America Holdings $ 497.6 $ 837.8 $ 1,715.3 $ 675.6

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

12 unchanged sentences

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

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

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

Issuance of common stock under employee stock plans — 26.9 — — 26.9

4 unchanged sentences

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

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

Other comprehensive earnings (loss), net of tax — — — 68.9 68.9

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

2 unchanged sentences

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

Net earnings attributable to Laboratory Corporation of America Holdings — — 703.4 — 703.4

Other comprehensive earnings (loss), net of tax — — — 134.4 134.4

Issuance of common stock under employee stock plans — 21.9 — — 21.9

Net share settlement tax payments from issuance of stock to employees — ( 0.5 ) — — ( 0.5 )

Stock compensation — 27.2 — — 27.2

BALANCE AT SEPTEMBER 30, 2020 $ 9.0 $ 80.7 $ 8,464.0 $ ( 314.6 ) $ 8,239.1

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

7 unchanged sentences

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

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

Other comprehensive earnings (loss), net of tax — — — 45.3 45.3

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

3 unchanged sentences

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

Net earnings attributable to Laboratory Corporation of America Holdings — — 587.3 — 587.3

Other comprehensive earnings (loss), net of tax — — — ( 89.7 ) ( 89.7 )

Issuance of common stock under employee stock plans — 24.2 — — 24.2

Net share settlement tax payments from issuance of stock to employees — ( 1.4 ) — — ( 1.4 )

Stock compensation — 59.0 — — 59.0

Purchase of common stock ( 0.1 ) ( 81.8 ) ( 218.1 ) — ( 300.0 )

BALANCE AT SEPTEMBER 30, 2021 $ 8.8 $ — $ 10,786.6 $ ( 270.9 ) $ 10,524.5

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

2 unchanged sentences

(in millions)

Six Months Ended June 30,

Nine Months Ended September 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

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

Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:

Net earnings $ 1,825.9 $ 618.4

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization 557.1 440.8

9 unchanged sentences

(Increase) decrease in prepaid expenses and other ( 72.4 ) 26.1

Decrease in accounts payable ( 44.3 ) ( 88.9 )

Increase in accounts payable 34.6 17.3

Increase in unearned revenue 83.8 44.1

6 unchanged sentences

Proceeds from sale or distribution of investments 10.4 1.0

Proceeds from exit from swaps — 3.1

Investments in equity affiliates ( 20.0 ) ( 29.3 )

25 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 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.

During the three months ended September 30, 2021, Dx and DD contributed approximately 64 % and 36 % respectively, of revenues to the Company.

During the nine months ended September 30, 2021, Dx and DD contributed approximately 64 % and 36 % 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.

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

Recently Adopted Guidance

In August 2018, the Financial Accounting Standards Board (FASB) issued a new accounting standard to reduce, modify, and add to the disclosure requirements on defined benefit pension and other postretirement plans.

The Company adopted this standard effective January 1, 2021.

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

In December 2019, the FASB issued a new accounting standard to simplify accounting for income taxes and remove, modify, and add to the disclosure requirements of income taxes.

The Company adopted this standard effective January 1, 2021.

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

In January 2020, the FASB issued a new accounting standard to clarify the interaction of the accounting for equity securities and investments accounted for under the equity method of accounting and the accounting for certain forward contracts and purchased options.

The Company adopted this standard effective January 1, 2021.

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

New Accounting Pronouncements

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)

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 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

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

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

North America Europe Other Total North America Europe Other Total

7 unchanged sentences

Total revenues 86 % 10 % 4 % 100 % 84 % 10 % 6 % 100 %

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

For the Nine Months Ended September 30, 2021 For the Nine Months Ended September 30, 2020

North America Europe Other Total North America Europe Other Total

8 unchanged sentences

Revenues in the U.S.

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.

were $ 3,352.7 ( 82.5 %) and $ 3,198.8 ( 82.1 %) for the three months ended September 30, 2021, and 2020, respectively, and for the nine months ended September 30, 2021, and 2020, were $ 9,926.7 ( 82.3 %) and $ 7,505.9 ( 79.1 %), respectively.

Contract costs

13 unchanged sentences

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

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Sales commission assets $ 36.6 $ 32.6

1 unchanged sentence

Total $ 50.9 $ 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.

Amortization related to sales commission assets and associated payroll taxes for the three months ended September 30, 2021, and 2020, was $ 7.1 and $ 6.0 , respectively and for the nine months ended September 30, 2021, and 2020, was $ 20.4 and $ 16.8 , respectively.

Amortization related to deferred contract fulfillment costs for the three months ended September 30, 2021, and 2020, was $ 3.5 and $ 2.3 , respectively, and was $ 10.0 and $ 7.6 , respectively, for the nine months ended September 30, 2021, and 2020.

Receivables, Unbilled Services and Unearned Revenue

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

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Receivables, which are included in accounts receivable $ 1,098.6 $ 1,001.5

1 unchanged sentence

Unearned revenue 574.3 492.2

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.

Revenues recognized during the period, that were included in the unearned revenue balance at the beginning of the period were $ 267.6 and $ 237.2 for the nine months ended September 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 six months ended June 30, 2021 is as follows:

For the Six Months Ended June 30, 2021

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

For the Nine Months Ended September 30, 2021

Accounts Receivable Unbilled Services Note and Other Receivables Total

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

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

Plus, credit loss expense 0.7 — — 0.7

Less, write offs 4.5 0.1 — 4.6

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

Balance as of September 30, 2021 $ 18.3 $ 11.2 $ 5.7 $ 35.2

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 June 30, 2021, was $ 5,616.6 .

The amount of existing performance obligations under such long-term contracts unsatisfied as of September 30, 2021, was $ 5,412.8 .

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 $ 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.

Within DD, revenues of $ 10.1 and $ 31.1 were recognized during the three months ended September 30, 2021 and 2020, respectively, and revenues of $ 38.9 and $ 44.8 were recognized during the nine months ended September 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 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

During the nine months ended September 30, 2021, the Company acquired several businesses and related assets for approximately $ 326.0 in cash within Dx.

The purchase considerations for these acquisitions in the nine months ended September 30, 2021, have been allocated under the acquisition method of accounting to the estimated fair market value of the net assets acquired, including approximately $ 142.5 in identifiable intangible assets and a residual amount of non-tax deductible goodwill of approximately $ 219.2 .

The amortization periods for intangible assets acquired from these businesses range from 5

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

1 unchanged sentence

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

system laboratories.

to 15 years for customer relationships, non-compete agreements, technology and trade names.

These acquisitions were made primarily to expand the Company's services for hospitals and health system laboratories and acquire testing technology.

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 the beginning of the period presented.

In addition, during the nine months ended September 30, 2021, the Company sold certain assets within DD with proceeds of $ 12.4 and a loss of $ 6.1 recorded in Other, net on the Condensed Consolidated Statement of Operations.

The purchase price allocation for several third quarter transactions are still preliminary and subject to change.

The areas of the purchase price allocation that are not yet finalized relate primarily to intangible assets, goodwill, and the impact of finalizing deferred taxes.

Accordingly, adjustments may be made as additional information is obtained about the facts and circumstances that existed as of the valuation date.

Any adjustments will be recorded in the period in which they are identified.

EARNINGS PER SHARE

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

Diluted earnings per share is computed by dividing net earnings 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 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 June 30, Six Months Ended June 30,

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

Three Months Ended September 30, Nine Months Ended September 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:

Net earnings (loss) $ 467.4 97.4 $ 4.80 $ 231.6 97.3 $ 2.38 $ 1,237.0 97.5 $ 12.69 $ ( 85.6 ) 97.2 $ ( 0.88 )

Earnings Shares Per Share Amount Earnings Shares Per Share Amount Earnings Shares Per Share Amount Earnings Shares Per Share Amount

Basic earnings per share:

Net earnings $ 587.3 96.3 $ 6.10 $ 703.4 97.4 $ 7.22 $ 1,824.3 97.1 $ 18.79 $ 617.8 97.3 $ 6.35

Dilutive effect of employee stock options and awards — 0.8 — 0.7 — 0.8 — 0.6

Net earnings (loss) including impact of dilutive adjustments $ 467.4 98.2 $ 4.76 $ 231.6 97.7 $ 2.37 $ 1,237.0 98.4 $ 12.58 $ ( 85.6 ) 97.2 $ ( 0.88 )

Net earnings including impact of dilutive adjustments $ 587.3 97.1 $ 6.05 $ 703.4 98.1 $ 7.17 $ 1,824.3 97.9 $ 18.63 $ 617.8 97.9 $ 6.31

Diluted earnings per share represent the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.

1 unchanged sentence

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 June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

1 unchanged sentence

RESTRUCTURING AND OTHER CHARGES

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

During the three months ended September 30, 2021, the Company recorded net restructuring and other charges of $ 6.5 :

$ 3.3 within Dx and $ 3.2 within DD.

The charges were comprised of $ 3.3 related to severance and other personnel costs and $ 3.7 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 $ 0.1 in unused facility-related costs.

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

The charges were offset by the reversal of previously established liabilities of $ 0.5 in unused facility-related costs.

During the nine months ended September 30, 2021, the Company recorded net restructuring and other charges of $ 35.3 :

$ 16.8 within Dx and $ 18.5 within DD.

The charges were comprised of $ 13.6 related to severance and other personnel costs and $ 22.4 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.

The charges were adjusted by the reversal of previously established liabilities of $ 0.7 in unused facility-related costs.

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

1 unchanged sentence

(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 :

During the three months ended September 30, 2020, the Company recorded net restructuring and other special charges of $ 7.1 :

$ 1.6 within Dx and $ 5.5 within DD.

The charges were comprised of $ 2.3 related to severance and other personnel costs, $ 3.0 for a DD lab facility and equipment impairment, and $ 4.0 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 liabilities of $ 0.1 and $ 2.1 in unused severance and facility-related costs, respectively.

During the nine months ended September 30, 2020, the Company recorded net restructuring and other charges of $ 38.9 :

$ 13.4 within Dx and $ 25.5 within DD.

The charges were comprised of $ 12.8 related to severance and other personnel costs, $ 11.0 for a DD lab facility impairment and equipment impairments, and $ 24.0 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 charges were offset by the reversal of previously established liabilities of $ 1.1 and $ 7.8 in unused severance costs and facility-related costs, respectively.

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

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Cash payments and other adjustments ( 5.7 ) ( 10.4 ) ( 5.0 ) ( 12.6 ) ( 33.7 )

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

Balance as of September 30, 2021 $ 1.0 $ 0.4 $ 4.5 $ 3.5 $ 9.4

Current $ 7.8

1 unchanged sentence

GOODWILL AND INTANGIBLE ASSETS

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

The changes in the carrying amount of goodwill for the nine months ended September 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 3.8 ( 67.7 ) ( 63.9 )

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

Balance as of September 30, 2021 $ 4,023.2 $ 3,883.6 $ 7,906.8

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.

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Based on the quantitative impairment assessment, performed in the same manner as the annual quantitative assessment, the Company concluded that the fair value was less than carrying value for two of its reporting units and recorded a goodwill impairment of $ 418.7 for DD and $ 3.7 for Dx.

During the three months ended September 30, 2020, the Company also recorded goodwill and other asset impairment charges of $ 10.1 and $ 17.7 for customer relationships and technology intangible assets, respectively, due to the loss of a contract from a DD prior acquisition.

The Company reversed the $ 5.0 charge for the estimated loss related to the DD floating rate secured note receivable due 2022.

The Company also recorded an impairment for a note receivable related to an Dx investment of $ 0.7 during the three months ended September 30, 2020.

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

The components of identifiable intangible assets are as follows:

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

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

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$ 6,123.5 $ ( 2,368.4 ) $ 3,755.1 $ 6,090.1 $ ( 2,129.0 ) $ 3,961.1

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.

Amortization of intangible assets for the three and nine months ended September 30, 2021, and 2020, was $ 92.2 and $ 62.2 and $ 276.7 and $ 184.6 , 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 $ 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)

This change in estimated useful life resulted in accelerated amortization of $ 30.2 and $ 87.4 , respectively, during the three and nine months ended September 30, 2021.

Amortization expense for the net carrying amount of intangible assets is estimated to be $ 86.9 for the remainder of fiscal 2021, $ 221.0 in fiscal 2022, $ 218.0 in fiscal 2023, $ 213.4 in fiscal 2024, $ 201.2 in fiscal 2025, and $ 2,144.3 thereafter.

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

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

September 30,

2021 December 31, 2020

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Total short-term borrowings and current portion of long-term debt $ 1.6 $ 376.7

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

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

September 30,

2021 December 31, 2020

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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.

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 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.

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 $ 4.0 at September 30, 2021.

Credit Facilities

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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 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 %.

There were no balances outstanding on the Company's current revolving credit facility as of September 30, 2021 and December 31, 2020.

As of September 30, 2021, the effective interest rate on the revolving credit facility was 1.08 %.

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 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.

The Company was in compliance with all covenants in the revolving credit facility at September 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 September 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 September 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 June 30, 2021 and December 31, 2020.

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

The changes in common shares issued are summarized below:

3 unchanged sentences

Shares repurchased ( 2.5 )

Common shares at June 30, 2021 96.7

Common shares at September 30, 2021 95.8

Share Repurchase Program

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 .

During the nine months ended September 30, 2021, the Company purchased 2.5 shares of its common stock at an average price of $ 270.55 .

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 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.

As of September 30, 2021, the Company had outstanding authorization from the board of directors to purchase up to $ 131.5 of the Company's common stock.

The repurchase authorization has no expiration date.

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Accumulated Other Comprehensive Earnings (Loss)

3 unchanged sentences

Current year adjustments ( 114.6 ) 14.0 ( 100.6 )

Amounts reclassified from accumulated other comprehensive income for settlement charge — ( 3.0 ) ( 3.0 )

Amounts reclassified from accumulated other comprehensive income — ( 3.3 ) ( 3.3 )

Tax effect of adjustments — ( 2.1 ) ( 2.1 )

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

Balance as of September 30, 2021 $ ( 135.9 ) $ ( 135.0 ) $ ( 270.9 )

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 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.

In addition, the tax rate was favorably impacted when the Company recorded tax benefits related to electing the Global Intangible Low Tax Income (GILTI) high-tax exclusion retroactively for previous tax years.

On July 20, 2020, the U.S.

Treasury issued and enacted final regulations related to GILTI that allows certain U.S.

taxpayers to elect to exclude foreign income that is subject to a high effective tax rate from the GILTI inclusions.

The GILTI high-tax exclusion is an annual election and is retroactively available.

During the quarter, the Company completed a detailed analysis and took the appropriate steps to amend its previous tax filings and to reassess its position on its 2020 and 2021 tax years.

Further, the rate was favorably impacted by foreign derived intangible income (FDII) as the Company finalized a comprehensive study related to previous tax filings and on its 2020 and 2021 tax years.

On July 15, 2020, the U.S.

Treasury issued and enacted final regulations related to FDII that governs the acceptable documentation reliability requirements and acceptable services that qualify as deduction eligible income.

This was partially offset by a new uncertain tax position that was established during this quarter related to a foreign jurisdiction.

The gross unrecognized income tax benefits were $ 55.6 and $ 48.8 at September 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

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.

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 September 30, 2021, and December 31, 2020, $ 53.4 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 $ 9.1 and $ 8.3 as of June 30, 2021, and December 31, 2020, respectively.

Accrued interest and penalties related to uncertain tax positions totaled $ 9.5 and $ 8.3 as of September 30, 2021, and December 31, 2020, respectively.

The Company has substantially concluded all U.S.

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employee-related matters;

and inquiries, including subpoenas and other civil investigative demands, from governmental agencies, Medicare or Medicaid payers and MCOs reviewing billing practices or requesting comment on allegations of billing irregularities that are brought to their attention through billing audits or third parties.

and inquiries, including subpoenas and other civil investigative demands, from governmental agencies, Medicare or Medicaid payers and MCOs

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

reviewing billing practices or requesting comment on allegations of billing irregularities that are brought to their attention through billing audits or third parties.

The Company receives civil investigative demands or other inquiries from various governmental bodies in the ordinary course of its business.

22 unchanged sentences

On August 17, 2011, the U.S.

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.

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

NPT Associates v.

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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.

Neither the U.S.

government nor any state government has intervened in the lawsuit.

The Company's Motion to Dismiss was granted in October 2014 and Plaintiff was granted the right to replead.

On January 11, 2016, Plaintiff filed a motion requesting leave to file an amended complaint under seal and to vacate the briefing schedule for the Company's Motion to Dismiss, while the government reviews the amended complaint.

The Court granted the motion and vacated the briefing dates.

Plaintiff then filed the Amended Complaint under seal.

On August 24, 2021, the U.S.

government filed a notice indicating that it does not intend to intervene in the matter.

On October 27, 2021, the Fourth Amended Complaint was unsealed.

The Fourth Amended Complaint is similar to the Third Amended Complaint in that it alleges that the Company offered UnitedHealthcare kickbacks in the form of discounts in return for Medicare and Medicaid business, and it further alleges that the Company unlawfully charged Medicare amounts substantially in excess of its alleged usual charges.

Similar to the Third Amended Complaint, the Fourth Amended Complaint alleges violations of the federal False Claims Act and the False Claims Act of 14 states and the District of Columbia.

The Company will vigorously defend the lawsuit.

2 unchanged sentences

The Company cooperated with this request.

In October 2013, the Company received a Civil Investigative Demand from the State of Texas Office of the Attorney General requesting documents related to its billing to Texas Medicaid.

In October 2013, the Company received a Civil Investigative Demand from the State of Texas Office of the Attorney General requesting documents related to its billing to

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Texas Medicaid.

The Company cooperated with this request.

36 unchanged sentences

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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, Lead Case No.

16-cv-02054-JAH-BLM, and designating the complaint from the Malkoff action as the operative complaint for the consolidated action.

16-cv-02054-JAH-BLM, and designating the complaint from the Malkoff action as the

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

operative complaint for the consolidated action.

On November 11, 2016, two competing motions were filed by two separate stockholders (James Reilly and Shikha Gupta) seeking appointment as lead plaintiff under the terms of the Private Securities Litigation Reform Act of 1995.

25 unchanged sentences

On August 16, 2019, the Court entered an order granting in part and denying in part the Motion to Dismiss the Amended Complaint, and denying the Motion to Strike the Class Allegations.

On August 26, 2021, Plaintiffs filed a Motion for Class Certification.

The Company will vigorously defend the lawsuit.

9 unchanged sentences

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 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.

No ordered tests, 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.

11 unchanged sentences

The Company will vigorously defend the multi-district litigation.

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

The Company was served with a shareholder derivative lawsuit, Raymond Eugenio, Derivatively on Behalf of Nominal Defendant, Laboratory Corporation of America Holdings v.

35 unchanged sentences

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.

8 unchanged sentences

The Plaintiff also asserts claims for unfair competition under Section 17200 of the Business and Professional Code.

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

On November 4, 2020, the lawsuit was removed to the U.S.

13 unchanged sentences

The Company will vigorously defend the lawsuit.

On October 14 2021, a putative class action lawsuit, Tabacchino v.

Laboratory Corporation of America Holdings , was filed in the Supreme Court of New York, Nassau County, alleging claims for a failure to properly pay service representatives compensation for all hours worked and overtime under the Fair Labor Standards Act and the New York Labor Code, as well notice and recordkeeping claims under the New York Labor Code.

The lawsuit seeks monetary damages, liquidated damages, civil penalties, equitable and injunctive relief, 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.

3 unchanged sentences

FAIR VALUE MEASUREMENTS

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:

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

Fair Value Measurements as of

June 30, 2021

September 30, 2021

Balance Sheet Fair Value as of Using Fair Value Hierarchy

Classification June 30, 2021 Level 1 Level 2 Level 3

Classification September 30, 2021 Level 1 Level 2 Level 3

Noncontrolling interest put Noncontrolling interest $ 16.2 $ — $ 16.2 $ —

5 unchanged sentences

Contingent consideration Other liabilities 12.8 — — 12.8

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Fair Value Measurements as of

7 unchanged sentences

Contingent consideration Other liabilities 13.9 — — 13.9

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Fair Value Measurement of Level 3 Liabilities Contingent Consideration

1 unchanged sentence

Adjustments ( 1.1 )

Balance at June 30, 2021 $ 12.8

Balance at September 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.

11 unchanged sentences

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 $ 5,892.8 and $ 6,121.8 as of June 30, 2021, and December 31, 2020, respectively.

The fair market value of the senior notes, based on market pricing, was approximately $ 5,910.7 and $ 6,121.8 as of September 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.

6 unchanged sentences

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

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

The aggregate fair value of $ 4.0 at September 30, 2021, was included as a component of other long-term assets and added to the reported value of the senior notes.

Cross Currency Swaps

3 unchanged sentences

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 cross currency swaps maturing in 2022 and 2025 with an aggregate fair value of $( 11.8 ) and $( 1.0 ) as of September 30, 2021, respectively, are included in other long-term liabilities.

The cross currency swaps had an aggregate fair value of $( 26.0 ) and $( 14.4 ) as of December 31, 2020, respectively, and 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 recognized in earnings.

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.

There were no amounts reclassified from the Condensed Consolidated Statement of Comprehensive Earnings to the Condensed Consolidated Statement of Operations during the three or six months ended June 30, 2021.

The cumulative change in the fair value of these instruments of $ 3.9 and $ 27.6 for the three and nine months ended September 30, 2021, respectively, was recognized as currency translation within the Condensed Consolidated Statement of

LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Comprehensive Earnings.

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

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Fair Value of Derivative Fair Value of Derivative

9 unchanged sentences

Statement of Operations

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

Three Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020 2021 2020 2021 2020

1 unchanged sentence

Cross currency swaps $ 3.9 $ ( 23.1 ) $ — $ — $ 27.6 $ ( 12.0 ) $ — $ —

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

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

For the three and nine months ended September 30, 2020, t he Company recorded a gain of $1.6 on the extinguishment of the interest rate swap arrangement on the 4.625% Senior Notes due November 15, 2020, which was included in Other, net on the Condensed Consolidated Statement of Operations.

SUPPLEMENTAL CASH FLOW INFORMATION

Six Months Ended June 30,

Nine Months Ended September 30,

Cash paid during period for:

4 unchanged sentences

BUSINESS SEGMENT INFORMATION

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

The following table is a summary of segment information for the three and nine months ended September 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

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.

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.

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.

Three Months Ended Six Months Ended

June 30, 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)

Three Months Ended Nine Months Ended

September 30, September 30,

2021 2020 2021 2020

3 unchanged sentences

Revenues 4,062.6 3,896.1 12,064.8 9,488.7

Operating earnings (loss):

Operating earnings:

Dx 722.7 964.9 2,275.4 1,451.5

5 unchanged sentences

Provision for income taxes 180.4 243.4 614.7 358.0

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

Net earnings 587.8 703.7 1,825.9 618.4

Net earnings attributable to the noncontrolling interest ( 0.5 ) ( 0.3 ) ( 1.6 ) ( 0.6 )

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

Net earnings attributable to Laboratory Corporation of America Holdings $ 587.3 $ 703.4 $ 1,824.3 $ 617.8

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