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Item 1. Financial Statements

2025-04-29 compared with 2024-10-29 · 289 added, 439 removed, 422 unchanged (63% of the section changed)

Financial Statements (unaudited)

FINANCIAL STATEMENTS

LABCORP HOLDINGS INC.

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(In Millions)

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Current assets:

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Total current liabilities 2,064.6 3,330.2

Long-term debt, less current portion 5,352.1 4,054.7

Long-term debt 5,568.7 5,331.2

Operating lease liabilities 696.4 676.3

6 unchanged sentences

Shareholders’ equity:

Common stock, $0.10 par value, 83.7 and 83.9 shares outstanding at September 30, 2024, and December 31, 2023, respectively

Common stock 83.8 and 83.4 shares outstanding at March 31, 2025, and December 31, 2024, respectively

Additional paid-in capital 35.8 2.8

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(In Millions, Except Per Share Data)

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

2024 2023 2024 2023

Three Months Ended March 31,

Revenues $ 3,345.1 $ 3,176.6

6 unchanged sentences

Operating income 326.0 321.3

Other income (expense):

Other (expense) income:

Interest expense ( 56.0 ) ( 46.9 )

Investment income 6.5 2.9

Equity method income (expense), net ( 0.5 ) ( 0.3 ) ( 0.7 ) ( 1.5 )

Equity method (loss) income, net ( 0.3 ) 0.1

Other, net ( 1.0 ) 20.0

Earnings from continuing operations before income taxes 210.6 238.7 775.7 716.0

Earnings from operations before income taxes 275.2 297.4

Provision for income taxes 62.2 69.1

Earnings from continuing operations 169.6 183.6 603.5 547.2

Earnings from discontinued operations, net of tax — — — 38.8

Net earnings 213.0 228.3

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$ 212.8 $ 228.0

Basic earnings per share:

Basic earnings per share continuing operations $ 2.02 $ 2.12 $ 7.17 $ 6.22

Basic earnings per share discontinued operations $ — $ — $ — $ 0.44

Earnings per share:

Basic earnings per share $ 2.54 $ 2.71

Diluted earnings per share $ 2.52 $ 2.69

Diluted earnings per share continuing operations $ 2.00 $ 2.11 $ 7.13 $ 6.19

Diluted earnings per share discontinued operations $ — $ — $ — $ 0.44

Diluted earnings per share $ 2.00 $ 2.11 $ 7.13 $ 6.63

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

3 unchanged sentences

(In Millions)

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

2024 2023 2024 2023

Three Months Ended March 31,

Net earnings $ 213.0 $ 228.3

11 unchanged sentences

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN

SHAREHOLDERS’ EQUITY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(In Millions)

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— — 228.0 — 228.0

Other comprehensive earnings (loss), net of tax — — — 49.0 49.0

Other comprehensive loss, net of tax — — — ( 126.1 ) ( 126.1 )

Dividends declared — — ( 60.9 ) — ( 60.9 )

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BALANCE AT MARCH 31, 2024 $ 7.7 $ 82.0 $ 8,055.3 $ ( 185.4 ) $ 7,959.6

Net earnings attributable to Labcorp Holdings Inc.

— — 188.9 — 188.9

Other comprehensive earnings (loss), net of tax — — — 52.5 52.5

Fortrea Holdings Inc.

spin-off — — ( 2,018.1 ) 238.0 ( 1,780.1 )

Dividends declared — — ( 64.5 ) — ( 64.5 )

Issuance of common stock under employee stock plans — 26.8 — — 26.8

Net share settlement tax payments from issuance of stock to employees — ( 18.2 ) — — ( 18.2 )

Stock compensation — 38.1 — — 38.1

BALANCE AT JUNE 30, 2023 $ 8.1 $ 94.4 $ 8,836.2 $ ( 153.7 ) $ 8,785.0

Net earnings attributable to Labcorp Holdings Inc.

— — 183.3 — 183.3

Other comprehensive earnings (loss), net of tax — — — ( 55.1 ) ( 55.1 )

Dividends declared — — ( 64.6 ) — ( 64.6 )

Net share settlement tax payments from issuance of stock to employees — ( 0.9 ) — — ( 0.9 )

Stock compensation — 34.4 — — 34.4

Purchase of common stock ( 0.4 ) ( 123.2 ) ( 885.4 ) — ( 1,009.0 )

BALANCE AT SEPTEMBER 30, 2023 $ 7.7 $ 4.7 $ 8,069.5 $ ( 208.8 ) $ 7,873.1

BALANCE AT DECEMBER 31, 2024 $ 7.6 $ 2.8 $ 8,303.4 $ ( 261.6 ) $ 8,052.2

1 unchanged sentence

— — 212.8 — 212.8

Other comprehensive earnings (loss), net of tax — — — ( 126.1 ) ( 126.1 )

Dividends declared — — ( 60.9 ) — ( 60.9 )

Issuance of common stock under employee stock plans — 26.7 — — 26.7

Net share settlement tax payments from issuance of stock to employees — ( 14.7 ) — — ( 14.7 )

Stock compensation — 31.6 — — 31.6

BALANCE AT MARCH 31, 2024 $ 7.7 $ 82.0 $ 8,055.3 $ ( 185.4 ) $ 7,959.6

Net earnings attributable to Labcorp Holdings Inc.

— — 205.3 — 205.3

Other comprehensive earnings (loss), net of tax — — — ( 6.6 ) ( 6.6 )

Dividends declared — — ( 60.2 ) — ( 60.2 )

Net share settlement tax payments from issuance of stock to employees — ( 23.1 ) — — ( 23.1 )

Stock compensation — 30.8 — — 30.8

Purchase of common stock — ( 77.2 ) ( 22.8 ) — ( 100.0 )

BALANCE AT JUNE 30, 2024 $ 7.7 $ 12.5 $ 8,177.6 $ ( 192.0 ) $ 8,005.8

Net earnings attributable to Labcorp Holdings Inc.

Other comprehensive earnings, net of tax

— — — 70.0 70.0

Other comprehensive earnings (loss), net of tax — — — 78.8 78.8

Dividends declared — — ( 60.6 ) — ( 60.6 )

2 unchanged sentences

Stock compensation — 32.8 — — 32.8

Purchase of common stock ( 0.1 ) ( 64.9 ) ( 10.0 ) — ( 75.0 )

BALANCE AT SEPTEMBER 30, 2024 $ 7.6 $ — $ 8,275.8 $ ( 113.2 ) $ 8,170.2

BALANCE AT MARCH 31, 2025 $ 7.6 $ 35.8 $ 8,455.6 $ ( 191.6 ) $ 8,307.4

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

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(In Millions)

Nine Months Ended September 30,

Three Months Ended March 31,

CASH FLOWS FROM OPERATING ACTIVITIES:

Net earnings $ 213.0 $ 228.3

Earnings from discontinued operations, net of tax — ( 38.8 )

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

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

Depreciation and amortization 166.8 154.5

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Deferred income taxes ( 6.1 ) ( 19.5 )

Other 46.0 3.9

Other, net 8.1 ( 3.0 )

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

1 unchanged sentence

Decrease in unbilled services 3.9 63.9

Decrease in supplies inventory 2.0 9.7

Increase in prepaid expenses and other ( 39.8 ) ( 74.9 )

Decrease (increase) in supplies inventory

Decrease (increase) in prepaid expenses and other

45.0 ( 24.9 )

Decrease in accounts payable ( 147.6 ) ( 121.1 )

(Decrease) increase in unearned revenue ( 27.9 ) 50.7

Decrease in unearned revenue

( 8.9 ) ( 41.6 )

Decrease in accrued expenses and other ( 174.7 ) ( 156.9 )

Net cash provided by continuing operating activities 808.6 622.7

Net cash provided by discontinued operating activities — 125.4

Net cash provided by operating activities 808.6 748.1

Net cash provided by (used for) operating activities

18.5 ( 29.8 )

CASH FLOWS FROM INVESTING ACTIVITIES:

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Proceeds from sale of business — 13.5

Proceeds from sale or distribution of investments — 6.7

Investments in equity affiliates ( 157.0 ) ( 13.7 )

Acquisition of businesses, net of cash acquired ( 53.5 ) ( 259.2 )

Net cash used for continuing investing activities ( 1,157.2 ) ( 816.2 )

Net cash used for discontinued investing activities — ( 24.7 )

Net cash used for investing activities ( 336.0 ) ( 393.1 )

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from senior note offerings 2,000.0 —

Payments on senior notes ( 1,000.0 ) —

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Dividends paid ( 61.6 ) ( 62.1 )

Purchase of common stock ( 175.0 ) ( 1,009.0 )

Other ( 3.3 ) ( 4.0 )

Net cash provided by (used for) continuing financing activities 1,326.6 ( 1,112.5 )

Net cash provided by discontinued financing activities — 1,499.7

Net cash provided by financing activities 1,326.6 387.2

Net cash used for financing activities ( 839.7 ) ( 11.7 )

Effect of exchange rate changes on Cash and cash equivalents 7.9 ( 2.9 )

Net increase in cash and cash equivalents 980.5 297.9

Net decrease in cash and cash equivalents

( 1,149.3 ) ( 437.5 )

Cash and cash equivalents at beginning of period 1,518.7 536.8

3 unchanged sentences

AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and Shares in Millions, Except Per Share Data)

1 unchanged sentence

Labcorp ® Holdings Inc.

(Labcorp® or the Company) is a global leader of innovative and comprehensive laboratory services that provides vital information to help doctors, hospitals, pharmaceutical companies, researchers, and patients make clear and confident decisions.

(Labcorp, LHI, or the Company) is a global leader of innovative and comprehensive laboratory services that provides vital information to help doctors, hospitals, pharmaceutical companies, researchers, and patients make clear and confident decisions.

By leveraging its unparalleled diagnostics and drug development capabilities, the Company provides insights and accelerates innovations to improve health and improve lives.

On April 25, 2024, the Company announced plans to implement a new public holding company structure, with Labcorp Holdings Inc.

as the new holding company.

On May 17, 2024, the Company completed the holding company reorganization (Reorganization) and Labcorp Holdings Inc.

became the successor issuer to Laboratory Corporation of America Holdings (LCAH).

The new holding company has no independent assets or operations and its sole ownership interest is in LCAH.

The Company reports its business in two segments, Diagnostics Laboratories (Dx) and Biopharma Laboratory Services (BLS), formerly Drug Development.

For further financial information about these segments, see Note 12 (Business Segment Information) to the Condensed Consolidated Financial Statements.

During the three months ended September 30, 2024, Dx and BLS contributed approximately 78 % and 22 %, respectively, of revenues to the Company.

During the nine months ended September 30, 2024, Dx and BLS contributed approximately 78 % and 22 %, respectively, of revenues to the Company.

The Company reports its business in two segments, Diagnostics Laboratories (Dx) and Biopharma Laboratory Services (BLS).

During each of the three months ended March 31, 2025 and 2024, Dx and BLS contributed approximately 78 % and 22 %, respectively, of Revenues to the Company.

The accompanying Condensed Consolidated Financial Statements of the Company are unaudited.

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Interim results are not necessarily indicative of results for a full year.

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 Securities and Exchange Commission (SEC) and do not contain certain information included in the Company’s fiscal year 2023 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.

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

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 in the United States (GAAP).

These unaudited Condensed Consolidated Financial Statements and notes are presented in accordance with the rules and regulations of the Securities and Exchange Commission (SEC) and GAAP for interim reporting.

As such, certain notes or other information that are normally required by the SEC or GAAP have been omitted if they substantially duplicate the disclosures contained in the Company’s annual audited Consolidated Financial Statements contained within its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (Annual Report).

Accordingly, these Condensed Consolidated Financial Statements and notes should be read in conjunction with the Consolidated Financial Statements and notes thereto contained in the Company’s Annual Report.

These Condensed Consolidated Financial Statements include the accounts of the Company and its majority-owned subsidiaries for which it exercises control.

Long-term investments in affiliated companies in which the Company exercises significant influence, but which it does not control, are accounted for using the equity method.

Investments in which the Company does not exercise significant influence (generally, when the Company has an investment of less than 20 % and no representation on the investee’s board of directors) are accounted for at fair value, or at cost minus impairment adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer for those investments that do not have readily determinable fair values.

All significant inter-company transactions and accounts have been eliminated.

The Company does not have any significant variable interest entities or special purpose entities whose financial results are not included in the condensed consolidated financial statements.

All significant intercompany transactions and accounts have been eliminated.

The Company does not have any significant variable interest entities or special purpose entities whose financial results are not included in these Condensed Consolidated Financial Statements.

The financial statements of the Company’s operating foreign subsidiaries are measured using the local currency as the functional currency.

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

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

DISCONTINUED OPERATIONS

On June 30, 2023 (the Distribution Date), Labcorp completed the previously announced separation (the Separation or spin-off) from the Company of Fortrea Holdings Inc.

(Fortrea), formerly the Company's Clinical Development and Commercialization Services (CDCS) business, into a separate, publicly-traded company.

All historical operating results of Fortrea are presented as Discontinued Operations, net of tax, in the Condensed Consolidated Statements of Operations.

The spin-off is expected to be treated as tax-free for the Company and its shareholders for U.S.

federal income tax purposes.

The spin-off of Fortrea from Labcorp was achieved through the Company’s pro-rata distribution of 100% of the outstanding shares of Fortrea common stock to holders of record of Labcorp common stock.

Each holder of record of Labcorp common stock received one share of Fortrea common stock for every share of Labcorp common stock held at 5:00 p.m., Burlington, North Carolina, time on June 20, 2023, the record date for the distribution.

In June 2023, Fortrea, prior to the Separation and while a subsidiary of the Company, issued $ 570.0 of 7.500 % senior secured notes due 2030 (the Fortrea Notes).

The proceeds from the Fortrea Notes were used to fund cash payments of

LABCORP HOLDINGS INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

approximately $ 1,600.0 to the Company in connection with the Separation.

The Company does not guarantee the Fortrea Notes following the Separation.

Also in June 2023, Fortrea entered into three floating secured overnight financing rate (SOFR) credit facilities totaling $ 1,520.0 .

These are comprised of a $ 450.0 Revolver maturing June 30, 2028;

a $ 500.0 Term Loan A maturing June 30, 2028;

and a $ 570.0 Term Loan B maturing June 30, 2030.

In connection with the spin-off, the Company entered into several agreements with Fortrea on or prior to the Distribution Date that, among other things, provide a framework for the Company’s relationship with Fortrea after the spin-off, including a separation and distribution agreement, a tax matters agreement, an employee matters agreement, and a transition services agreement.

These agreements contain the key provisions relating to the spin-off, including provisions relating to the principal intercompany transactions required to effect the spin-off, the conditions to the spin-off and provisions governing the relationship between Fortrea and the Company after the spin-off.

The costs to provide these services are included in operating income but the service fees are included in other income.

Financial Information of Discontinued Operations

Earnings from discontinued operations, net of tax in the Consolidated Statements of Operations reflect the after-tax results of Fortrea's business and Separation-related fees, and do not include any allocation of general corporate overhead expense or interest expense of the Company.

The following table summarizes the significant line items included in Earnings from Discontinued Operations, Net of Tax in the Condensed Consolidated Statements of Operations for the nine months ended September 30, 2023:

Nine Months Ended September 30, 2023

Revenues $ 1,506.6

Cost of revenues 1,244.5

Gross profit 262.1

Selling, general and administrative expenses 184.1

Amortization of intangibles and other assets 31.9

Restructuring and other charges 3.0

Operating income 43.1

Other income (expense):

Other, net 2.5

Earnings before income taxes 45.6

Provision for income taxes 6.8

Net earnings attributable to Labcorp Holdings Inc.

The Company's revenues by segment and by payers/customer groups for the three and nine months ended September 30, 2024, and 2023, were as follows:

For the Three Months Ended September 30, 2024 For the Three Months Ended September 30, 2023

North America Europe Other Total North America Europe Other Total

Payer/Customer

Clients 24 % — % — % 24 % 24 % — % — % 24 %

Patients 10 % — % — % 10 % 9 % — % — % 9 %

Medicare and Medicaid 8 % — % — % 8 % 8 % — % — % 8 %

Third party 36 % — % — % 36 % 36 % — % — % 36 %

Total Dx revenues by payer 78 % — % — % 78 % 77 % — % — % 77 %

Pharmaceutical, biotechnology, and medical device companies 9 % 9 % 4 % 22 % 10 % 9 % 4 % 23 %

Total revenues 87 % 9 % 4 % 100 % 87 % 9 % 4 % 100 %

Resulting translation adjustments are included in Accumulated other comprehensive income within the Condensed Consolidated Balance Sheets.

LABCORP HOLDINGS INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and Shares in Millions, Except Per Share Data)

For the Nine Months Ended September 30, 2024 For the Nine Months Ended September 30, 2023

The Company’s revenues by segment and by payers/customer groups were as follows:

Three Months Ended March 31, 2025 Three Months Ended March 31, 2024

North America Europe Other Total North America Europe Other Total

7 unchanged sentences

Total Revenues

Revenues in the United States were $ 2,738.4 ( 83.4 %) and $ 2,550.6 ( 83.4 %) for the three months ended September 30, 2024 and 2023, respectively, and were $ 8,091.8 ( 83.6 %) and $ 7,645.0 ( 83.8 %) for the nine months ended September 30, 2024 and 2023, respectively.

87 % 9 % 4 % 100 % 87 % 9 % 4 % 100 %

Revenues in the United States (U.S.) were $ 2,813.8 ( 84.1 %) and $ 2,654.6 ( 83.6 %) for the three months ended March 31, 2025, and 2024, respectively.

Accounts Receivable, Unbilled Services, and Unearned Revenue

The following table provides information about accounts receivable, unbilled services, and unearned revenue from contracts with customers as of September 30, 2024 and December 31, 2023:

September 30, 2024 December 31, 2023

The following table provides information about accounts receivable, unbilled services, and unearned revenue from contracts with customers:

March 31, 2025 December 31, 2024

Dx accounts receivable $ 1,403.2 $ 1,259.3

BLS accounts receivable 758.6 729.5

Less BLS allowance for doubtful accounts ( 38.9 ) ( 32.7 )

Accounts receivable $ 2,058.5 $ 1,913.3

Less BLS allowance for credit losses ( 38.6 ) ( 44.7 )

Accounts receivable, net $ 2,123.2 $ 1,944.1

Gross unbilled services $ 158.8 $ 160.5

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Unbilled services $ 151.3 $ 152.9

Unearned revenue $ 403.1 $ 421.7

Revenues recognized during the period that were included in the unearned revenue balance at the beginning of the period were $ 20.2 and $ 6.3 for the three months ended September 30, 2024 and 2023, respectively, and $ 98.0 and $ 79.1 for the nine months ended September 30, 2024 and 2023, 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 nine months ended September 30, 2024, was as follows:

Accounts Receivable Unbilled Services Note and Other Receivables Total

Balance as of December 31, 2023 $ 32.7 $ 7.5 $ 0.7 $ 40.9

Plus, credit loss expense 7.7 — — 7.7

Less, write offs 1.5 5.9 — 7.4

Balance as of September 30, 2024 $ 38.9 $ 1.6 $ 0.7 $ 41.2

The credit loss expense in the first nine months was primarily related to the collection risk from several biotech receivable balances.

BUSINESS ACQUISITIONS AND DISPOSITIONS

During the nine months ended September 30, 2024, the Company acquired several businesses and related assets for cash of approximately $ 751.2 .

These acquisitions consisted of the clinical and outreach businesses of Baystate Medical Center ($ 120.2 ), Providence Medical Foundation ($ 54.9 ), and Westpac Labs, Inc.

($ 97.7 ), and selected assets of the Invitae

Revenues recognized during the period that were included in the unearned revenue balance at the beginning of the period were $ 68.9 and $ 51.0 for the three months ended March 31, 2025, and 2024, respectively.

Allowance for Credit Losses

BLS estimates future expected credit losses on accounts receivable and unbilled services over the remaining collection period of the instrument.

The rollforward for the allowance for credit losses is as follows:

Accounts Receivable Unbilled Services Total

Allowance for credit losses at December 31, 2024 $ 44.7 $ 7.6 $ 52.3

Write offs ( 6.8 ) ( 0.2 ) ( 7.0 )

Foreign currency impact

Allowance for credit losses at March 31, 2025 $ 38.6 $ 7.5 $ 46.1

LABCORP HOLDINGS INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and Shares in Millions, Except Per Share Data)

Corporation ($ 240.8 ) and BioReference Health ( 237.6 ).

BUSINESS ACQUISITIONS AND DISPOSITIONS

During the three months ended March 31, 2025, the Company acquired several businesses and related assets for cash of $ 53.5 .

The preliminary purchase considerations for these acquisitions were allocated under the acquisition method of accounting to the estimated fair market value of the net assets acquired, including approximately $ 41.1 in identifiable intangible assets.

A residual amount of tax deductible goodwill of approximately $ 349.5 was recorded as of September 30, 2024.

The amortization period for non-compete agreements and customer list assets acquired from these businesses are 5 and 15 years, respectively.

The purchase price allocations for the Invitae and BioReference Health acquisitions have not been finalized as of September 30, 2024.

The preliminary valuation of acquired assets and assumed liabilities, include the following:

Baystate Medical Center Providence Medical Foundation Westpac Labs, Inc.

Invitae Corporation BioReference Health Measurement Period Adjustments During the Nine Months Ended September 30, 2024 Amounts Acquired During the Nine Months Ended September 30, 2024

Inventories — — 1.8 12.1 — — 13.9

Property, plant and equipment 7.2 0.9 — 76.7 9.1 ( 3.9 ) 90.0

The amortization periods for the customer relationships and non-compete agreements were 15.0 years and 5.0 years, respectively.

A residual amount of tax deductible goodwill, net of measurement period adjustments relating to prior acquisitions of $ 29.0 was recorded as of March 31, 2025.

The purchase price allocations for these acquisitions were preliminary at March 31, 2025.

The valuation of acquired assets and assumed liabilities include the following:

Business Acquisitions Closed During the Three Months Ended March 31, 2025

Measurement Period Adjustments During the Three Months Ended March 31, 2025 Amounts Acquired During the Three Months Ended March 31, 2025

Goodwill $ 36.4 $ ( 7.4 ) $ 29.0

1 unchanged sentence

Total assets acquired 77.5 — 77.5

Unearned revenue — — — 3.3 — — 3.3

Lease liabilities 7.2 0.9 — 58.3 — ( 3.9 ) 62.5

Other liabilities — — — — — —

Accrued expenses and other 24.0 — 24.0

Total liabilities acquired 24.0 — 24.0

Net assets acquired 53.5 — 53.5

Less escrow payment made in 2023 30.0 — — — — — 30.0

Cash paid for acquisitions $ 53.5 $ — $ 53.5

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to acquire a 15 % minority interest in SYNLAB, a leader in medical diagnostic services and specialty testing in Europe, for approximately $ 151.6 (€ 140.4 ).

The transaction is anticipated to close in early 2025, subject to customary closing conditions for a transaction of this type, including applicable regulatory approvals.

The Company will acquire the minority interest through an intermediate holding company that will be established to hold the investment with SYNLAB and will be represented on the holding company board with Cinven, Inc.

and other investors.

During the nine months ended September 30, 2023, the Company acquired several businesses and the related assets for approximately $ 516.7 in cash.

These acquisitions consisted of the clinical and outreach business of Jefferson Health ($ 108.0 ), Enzo BioChem ($ 112.8 ), Providence Health & Services - Oregon ($ 110.0 ), Tuffts Medicine ($ 157.0 ), and other small acquisitions for $ 28.9 .

A residual amount of non-tax deductible goodwill of approximately $ 230.5 was recorded as of September 30, 2023.

The amortization period for non-compete agreements and customer list assets acquired from these businesses are 5 and 15 years, respectively.

LABCORP HOLDINGS INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

During the nine months ended September 30, 2023, the Company recorded several measurement period adjustments for 2022 acquisitions, relating to final valuations and deferred tax true-ups.

The adjustments include the following:

Business Acquisitions Measurement Period Adjustments During Nine Months Ended September 30, 2023 Amounts Acquired During the Nine Months Ended September 30, 2023

Cash and cash equivalents $ — $ 0.2 $ 0.2

Accounts receivable ( 3.0 ) — ( 3.0 )

Inventories 1.3 — 1.3

Prepaid expenses and other 0.4 0.6 1.0

Property, plant and equipment 4.7 ( 1.5 ) 3.2

Goodwill 230.5 ( 29.4 ) 201.1

Intangible assets 284.6 19.5 304.1

Other assets 2.1 — 2.1

Total assets acquired $ 520.6 $ ( 10.6 ) $ 510.0

Accrued expenses and other 3.9 ( 8.3 ) ( 4.4 )

Deferred income taxes — ( 2.3 ) ( 2.3 )

Total liabilities acquired 3.9 ( 10.6 ) ( 6.7 )

Net assets acquired $ 516.7 $ — $ 516.7

Pro Forma Information

Had the Company's total 2024 and 2023 acquisitions been completed as of January 1, the Company's pro forma results would have been as follows:

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

2024 2023 2024 2023

Revenues $ 3,333.8 $ 3,152.7 9,999.9 $ 9,354.4

Net earnings from continuing operations attributable to Labcorp Holdings Inc.

$ 172.2 $ 174.8 613.1 $ 582.7

During the nine months ended September 30, 2024, the Company sold the assets of its Beacon Laboratory Benefit Solutions, Inc.

for $ 13.5 and recorded a gain of $ 4.9 .

The transaction closed in March 2025 and is accounted for as an equity method investment within the Company’s Condensed Consolidated Financial Statements.

On March 11, 2025, the Company announced that it entered into an agreement with OPKO Health, Inc.

to acquire select assets of the laboratory business of BioReference Health, focused on oncology and oncology-related clinical testing services across the U.S.

The purchase price for the transaction is up to $ 225.0 , including $ 192.5 payable at closing and up to $ 32.5 of additional consideration contingent on performance.

The transaction is anticipated to close in the second half of 2025, subject to customary closing conditions for a transaction of this type, including applicable regulatory approvals.

During the three months ended March 31, 2024, the Company sold the assets of Beacon Laboratory Benefit Solutions, Inc.

for $ 13.5 and recorded a gain of $ 4.9 included in Other, net in the Condensed Consolidated Statements of Operations.

EARNINGS PER SHARE

Basic earnings per share is computed by dividing net earnings attributable to the Company by the weighted average number of shares of the Company's common stock 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.

Basic earnings per share (Basic EPS) is computed by dividing Net earnings attributable to Labcorp Holdings Inc.

by the weighted-average number of common shares outstanding.

Diluted earnings per common share (Diluted EPS) is computed by dividing Net earnings attributable to Labcorp Holdings Inc., and if applicable, 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 units, and performance share awards.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and Shares in Millions, Except Per Share Data)

The following represents a reconciliation of basic earnings per share to diluted earnings per share for the three and nine months ended September 30:

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

2024 2023 2024 2023

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 $ 169.3 84.0 $ 2.02 $ 183.3 86.6 $ 2.12 $ 602.6 84.0 $ 7.17 $ 546.3 87.9 $ 6.22

Dilutive effect of employee stock options and awards — 0.4 — 0.4 — 0.5 — 0.4

Net earnings including impact of dilutive adjustments $ 169.3 84.4 $ 2.00 $ 183.3 87.0 $ 2.11 $ 602.6 84.5 $ 7.13 $ 546.3 88.3 $ 6.19

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.

These potential shares include dilutive stock options and unissued restricted stock awards.

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 September 30, Nine Months Ended September 30,

2024 2023 2024 2023

The following represents a reconciliation of Basic EPS to Diluted EPS:

Three Months Ended March 31,

Basic EPS Dilutive Effect Diluted EPS Basic EPS Dilutive Effect Diluted EPS

Net earnings attributable to LHI $ 212.8 $ 212.8 $ 228.0 $ 228.0

Weighted-average common shares outstanding 83.6 0.7 84.3 84.1 0.6 84.7

Per common share amount $ 2.54 $ 2.52 $ 2.71 $ 2.69

The following table summarizes the potential common shares not included in the computation of Diluted EPS because their impact would have been antidilutive:

Three Months Ended March 31,

Employee stock options and awards 0.3 0.3

GOODWILL AND INTANGIBLE ASSETS

The changes in the carrying amount of goodwill for the nine months ended September 30, 2024, were as follows:

The changes in the carrying amount of goodwill, net of impairment, were as follows:

Balance as of December 31, 2024 $ 5,102.5 $ 1,267.2 $ 6,369.7

1 unchanged sentence

Foreign currency impact and other adjustments to Goodwill

Balance as of September 30, 2024 $ 5,153.9 $ 1,328.5 $ 6,482.4

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.

The Company recognizes an impairment charge for the amount by which the reporting unit's carrying amount exceeds its fair value.

Although the Company believes that the current assumptions and estimates used in its goodwill analysis are reasonable, supportable, and appropriate, the Company's business could be impacted by unfavorable changes, including those that impact the existing assumptions used in the impairment analysis.

Various factors could reasonably be expected to unfavorably impact existing assumptions:

primarily, a worsening economic environment and protracted economic downturn and related impacts, including delays in revenue from new customers;

increases in customer termination activity;

or increases in operating costs.

Accordingly, there can be no assurance that the estimates and assumptions made for the purposes of the goodwill impairment analysis will prove to be accurate predictions of future performance.

The Company will continue to monitor the financial performance of, and assumptions for, its reporting units.

A significant increase in the discount rate, decrease in the revenue and terminal growth rates, decreased operating margin, or substantial reductions in end markets and volume assumptions, could have a negative impact on the estimated fair value of the reporting units.

A future impairment charge for goodwill or intangible assets could have a material effect on the Company's consolidated financial position and results of operations.

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

T he components of identifiable intangible assets were as follows:

September 30, 2024 December 31, 2023

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

( 7.3 ) 22.3 15.0

Balance as of March 31, 2025 $ 5,131.6 $ 1,289.5 $ 6,421.1

During the three months ended March 31, 2025, the Company did not record a goodwill or intangible asset impairment charge.

The cumulative goodwill impairment for the Company through March 31, 2025, and December 31, 2024 was $ 648.5 and represents all of the goodwill of the Company’s Early Development Research Laboratories reporting unit within the BLS segment.

The components of identifiable intangible assets were as follows:

March 31, 2025 December 31, 2024

Range of Useful Lives (in Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount

Definite-lived intangible assets:

Customer relationships 10 - 36 $ 4,184.1 $ ( 1,601.8 ) $ 2,582.3 $ 4,114.7 $ ( 1,540.7 ) $ 2,574.0

Patents, licenses, and technology

3 - 15 541.8 ( 307.7 ) 234.1 541.0 ( 298.3 ) 242.7

Non-compete agreements 3 - 5 187.4 ( 90.8 ) 96.6 180.2 ( 83.9 ) 96.3

Canadian licenses 484.6 — 484.6 498.8 — 498.8

Other 34.3 ( 19.3 ) 15.0 34.1 ( 15.5 ) 18.6

1 - 15 40.1 ( 23.4 ) 16.7 39.9 ( 21.5 ) 18.4

Amortization of intangible assets for the three and nine months ended September 30, 2024, and 2023, was $ 63.7 and $ 55.7 and $ 186.0 and $ 160.6 , respectively.

The amortization expense for the net carrying amount of intangible assets is estimated to be $ 71.0 for the remainder of fiscal 2024, $ 260.4 in fiscal 2025, $ 251.4 in fiscal 2026, $ 240.1 in fiscal 2027, $ 232.2 in fiscal 2028, and $ 1,915.4 thereafter.

Short-term borrowings and the current portion of long-term debt at September 30, 2024, and December 31, 2023, consisted of the following:

September 30, 2024 December 31, 2023

2.30% senior notes due 2024 400.0 400.0

3.25% senior notes due 2024 — 600.0

$ 4,953.4 $ ( 2,023.7 ) $ 2,929.7 $ 4,875.8 $ ( 1,944.4 ) $ 2,931.4

Indefinite-lived intangible assets:

Canadian and other licenses

$ 557.5 $ 557.5 N/A

Total intangible assets

$ 5,510.9 $ ( 2,023.7 ) $ 3,487.2 $ 5,433.3 $ ( 1,944.4 ) $ 3,488.9

Amortization of intangible assets for the three months ended March 31, 2025, and 2024, was $ 69.6 and $ 60.1 , respectively.

The amortization expense of intangible assets is estimated to be $ 208.4 for the remainder of 2025, $ 266.4 in 2026, $ 253.5 in 2027, $ 245.8 in 2028, $ 232.1 in 2029, and $ 1,723.5 thereafter.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and Shares in Millions, Except Per Share Data)

Short-term borrowings and the current portion of long-term debt consisted of the following:

March 31, 2025 December 31, 2024

3.60% senior notes due 2025 $ — $ 1,000.0

2 unchanged sentences

Total Short-term borrowings and current portion of long-term debt $ 0.4 $ 1,000.3

Long-term debt at September 30, 2024, and December 31, 2023, consisted of the following:

September 30, 2024 December 31, 2023

3.60% senior notes due 2025 — 1,000.0

Long-term debt consisted of the following:

March 31, 2025 December 31, 2024

1.55% senior notes due 2026 $ 500.0 $ 500.0

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The Company maintains a senior revolving credit facility, which was amended and restated on January 13, 2023.

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.

It consists of a five-year revolving 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.

1 unchanged sentence

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.

The revolving credit facility also provides for the issuance of letters of credit without a reduction of the availability of borrowings

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

under the facility.

There was $ 0.0 outstanding on the Company's current revolving credit facility and $ 91.9 in outstanding letters of credit on the Company's subfacility as of September 30, 2024.

As of September 30, 2024, the effective interest rate on the revolving credit facility was 6.26 %.

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 September 30, 2024, and expects that it will remain in compliance with its existing debt covenants for the next twelve months.

On August 23, 2024, the Company and a bankruptcy-remote special purpose vehicle (SPV) entered into an accounts receivable securitization facility (AR Facility) with PNC Bank, National Association (PNC) with a three-year term.

There were no balances outstanding on the Company’s current revolving credit facility and $ 102.8 in outstanding letters of credit on the Company’s subfacility as of March 31, 2025.

At March 31, 2025, the effective interest rate on the revolving credit facility was 5.44 %.

The revolving credit facility expires on April 30, 2026.

Under the Company’s 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 its term loans and the revolving credit facility at March 31, 2025, and expects that it will remain in compliance with its existing debt covenants for the next 12 months.

On August 23, 2024, the Company and a bankruptcy-remote special purpose vehicle (SPV) entered into an accounts receivable securitization facility with PNC Bank, National Association (PNC) with a three-year term (AR Facility).

The AR Facility allows the Company to borrow from PNC an amount of up to $ 300.0 through August of 2027 and may increase up to $ 700.0 , subject to the satisfaction of certain conditions.

The SPV is a variable interest entity (VIE) for which the Company is the primary beneficiary.

The SPV is a variable interest entity for which the Company is the primary beneficiary.

The SPV’s sole business consists of the continuous purchase of receivables from the Company which is used as collateral for the loan with PNC.

Although the SPV is included in the Company's consolidated financial statements, it is a separate legal entity with separate creditors.

Although the SPV is included in the Company’s Condensed Consolidated Financial Statements, it is a separate legal entity with separate creditors.

Upon the transfer of ownership and control of the receivables to the SPV, the Company has no retained interests in the receivables sold and they become unavailable to the Company’s creditors should the relevant seller become insolvent.

The Company has collection and administrative responsibilities for the receivables sold to the SPV.

During the three months ended September 30, 2024, the Company received loan proceeds of $ 300.0 under the AR Facility, which is included in cash from financing activities in the Condensed Consolidated Statement of Cash Flows.

On September 23, 2024, LCAH entered into an indenture with U.S.

Bank Trust Company, National Association, as trustee (the Trustee) (the Indenture).

Also, on September 23, 2024, the Company, LCAH, and the Trustee entered into certain first, second, and third supplemental indentures to the Indenture under each of which LCAH issued, and the Company guaranteed, $ 650.0 aggregate principal amount of 4.35 % Senior Notes due 2030 (the 2030 Notes), $ 500.0 aggregate principal amount of 4.55 % Senior Notes due 2032 (the 2032 Notes) and $ 850.0 aggregate principal amount of 4.80 % Senior Notes due 2034, respectively (the 2034 Notes and, together with the 2030 Notes and the 2032 Notes, the Notes), totaling $ 2,000.0 .

Interest on the Notes is payable semi-annually on April 1 and October 1 of each year, commencing April 1, 2025.

Net proceeds from the offering of the Notes were approximately $ 1,982.1 after deducting underwriting discounts and other estimated expenses of the offering.

The net proceeds will be used to redeem or repay indebtedness and, to the extent not used for such purpose, for other general corporate purposes.

Indebtedness to be redeemed or repaid at or prior to maturity were the Company's 2.30 % senior notes due 2024, its 3.60 % senior notes due 2025 and $ 350.0 of borrowings under its revolving credit facility.

On January 31, 2025, the Company amended its AR Facility (AR Facility Amendment).

The AR Facility Amendment increased the amount the Company can borrow from $ 300.0 to $ 700.0 through August of 2027.

In addition, pursuant to the

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and Shares in Millions, Except Per Share Data)

terms of the AR Facility Amendment (i) the Toronto-Dominion Bank became a party to the underlying receivables purchase agreement as a committed purchaser through January 2026 and (ii) MUFG Bank Ltd.

and certain of its related conduit purchasers became parties to the underlying receivables purchase agreement as purchasers and the loans or investments of such conduit purchasers may accrue interest as specified in the AR Facility Amendment and receivables purchase agreement.

During the three months ended March 31, 2025, the Company received loan proceeds of $ 225.0 under the AR Facility, which is included in cash from financing activities in the Condensed Consolidated Statement of Cash Flows .

PREFERRED STOCK AND COMMON SHAREHOLDERS’ EQUITY

The Company is authorized to issue up to 265.0 shares of common stock, par value $ 0.10 per share.

The Company is authorized to issue up to 265.0 shares of common stock, par value $ 0.10 per share (Common Stock).

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 September 30, 2024, and December 31, 2023.

The changes in common shares issued during the nine months ended September 30, 2024 are summarized below:

Issued and Outstanding

Common shares at December 31, 2023 83.9

There were no preferred shares outstanding at March 31, 2025, and December 31, 2024.

The changes in the Company’s shares of Common Stock outstanding are summarized below:

Three Months Ended March 31, 2025

Beginning balance

Shares issued under employee stock plans 0.4

Shares repurchased ( 0.8 )

Common shares at September 30, 2024 83.7

Ending balance

Share Repurchase Program

When the Company repurchases shares of Common Stock, 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.

During the nine months ended September 30, 2024, the Company purchased 0.8 shares of its common stock at an average price of $ 211.63 for a total cost of $ 175.0 .

On July 24, 2024, the Board adopted a new share repurchase plan authorizing up to

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

$ 1,000.0 of the Company's shares in addition to the remaining amount outstanding under the previous plan.

As of September 30, 2024, the Company had outstanding authorization from the board of directors to purchase up to $ 1,355.4 of the Company's common stock.

For the nine months ended September 30, 2024, the Company paid $ 183.0 in common stock dividends.

On October 10, 2024 , the Company announced a cash dividend of $ 0.72 per share of common stock for the third quarter, or approximately $ 61.0 in the aggregate.

The dividend will be payable on December 13, 2024 , to stockholders of record of all issued and outstanding shares of common stock as of the close of business on November 26, 2024 .

The declaration and payment of any future dividends will be at the discretion of the Company's board of directors.

Accumulated Other Comprehensive Earnings (Loss)

The components of accumulated other comprehensive earnings (loss) during the nine months ended September 30, 2024 were as follows:

When the Company repurchases shares of Common Stock, the amount paid to repurchase the shares in excess of the par or stated value is allocated to Additional paid-in-capital within the Condensed Consolidated Balance Sheets unless subject to limitation or the balance in Additional paid-in-capital is exhausted.

Remaining amounts are recognized as a reduction in Retained earnings within the Company’s Condensed Consolidated Balance Sheets.

During each of the three months ended March 31, 2025 and 2024 the Company did not repurchase any shares of its Common Stock.

At March 31, 2025, the Company had outstanding authorization from its board of directors (Board) to purchase up to $ 1,280.4 maximum value of the Company’s Common Stock.

During the three months ended March 31, 2025, and 2024, a cash dividend of $ 0.72 per share of Common Stock was declared and paid.

On April 10, 2025, the Company announced a cash dividend of $ 0.72 per share of Common Stock, or approximately $ 61.2 in the aggregate.

The dividend will be paid on June 11, 2025 , to stockholders of record of all issued and outstanding shares of Common Stock as of the close of business on May 29, 2025 .

The declaration and payment of any future dividends will be at the discretion of the Board.

Accumulated Other Comprehensive Earnings

The components of Accumulated other comprehensive earnings are as follows:

Foreign Currency Translation Adjustments Net Benefit Plan Adjustments Accumulated Other Comprehensive Earnings (Loss)

Balance as of December 31, 2023 $ ( 47.6 ) $ ( 11.7 ) $ ( 59.3 )

Balance at December 31, 2024 $ ( 264.7 ) $ 3.1 $ ( 261.6 )

Current year adjustments 69.7 0.4 70.1

Amounts reclassified from accumulated other comprehensive income — 2.5 2.5

Tax effect of adjustments — ( 0.1 ) ( 0.1 )

Balance as of September 30, 2024 $ ( 100.8 ) $ ( 12.4 ) $ ( 113.2 )

Balance at March 31, 2025 $ ( 195.0 ) $ 3.4 $ ( 191.6 )

COMMITMENTS AND CONTINGENCIES

1 unchanged sentence

Some of these actions involve claims that are substantial in amount.

These matters include, but are not limited to, intellectual property disputes, commercial and contract disputes, professional liability claims, employee-related matters, transaction-related disputes, securities and corporate law matters, and inquiries, including subpoenas and other civil investigative demands, from governmental agencies, Medicare or Medicaid payers and managed care organizations (MCOs) reviewing billing practices or requesting comment on allegations of billing irregularities that are brought to their attention through billing audits or third parties.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and Shares in Millions, Except Per Share Data)

investigative demands, from governmental agencies, Medicare or Medicaid payers, and managed care organizations 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.

12 unchanged sentences

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

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

probable and reasonably estimable.

In accordance with Financial Accounting Standards Board 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 probable and reasonably estimable.

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

8 unchanged sentences

On April 14, 2021, the Petition was unsealed.

The Petition alleges that the Company submitted claims for reimbursement to Texas Medicaid that were higher than permitted under Texas Medicaid’s alleged “best price” regulations, and that the Company offered remuneration to Texas health care providers in the form of discounted pricing for certain laboratory testing services in exchange for the providers’ referral of Texas Medicaid business to the Company.

The Petition alleges that the Company submitted claims for reimbursement to Texas Medicaid that were higher than permitted under Texas Medicaid’s alleged “best price” regulations, and that the Company offered remuneration to Texas healthcare providers in the form of discounted pricing for certain laboratory testing services in exchange for the providers’ referral of Texas Medicaid business to the Company.

The Petition seeks actual and double damages and civil penalties, as well as recovery of costs, attorney’s fees, and legal expenses.

2 unchanged sentences

Plaintiffs filed a Notice of Appeal with respect to the court’s order granting the Company’s Motion for Partial Summary Judgment, referenced above.

On December 31, 2024, the Texas Court of Appeals issued a decision reversing the District Court’s order granting the Company’s Motion for Partial Summary Judgement.

On February 28, 2025, the Company filed in the Texas Supreme Court a Petition for Review with respect to the Texas Court of Appeals decision.

The Company will vigorously defend the lawsuit.

2 unchanged sentences

, filed in the Circuit Court of the Thirteenth Judicial Circuit for Hillsborough County, Florida.

The complaint alleges that the Company violated the Florida Consumer Collection Practices Act by billing patients who were collecting benefits under the Workers' Compensation Statutes.

The complaint alleges that the Company violated the Florida Consumer Collection Practices Act by billing patients who were collecting

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and Shares in Millions, Except Per Share Data)

benefits under the Workers’ Compensation Statutes.

The lawsuit seeks injunctive relief and actual and statutory damages, as well as recovery of attorney’s fees and legal expenses.

5 unchanged sentences

On May 26, 2022, the Florida Supreme Court issued an opinion approving the result of the Florida Second District Court of Appeal in favor of the Plaintiff.

The Company will vigorously defend the lawsuit.

On December 29, 2021, the Company was served with a putative class action lawsuit, Nathaniel J.

Nolan, et al.

Laboratory Corporation of America Holdings , filed in the U.S.

District Court for the Middle District of North Carolina.

The complaint alleges that the Company's patient acknowledgement of estimated financial responsibility form is misleading.

The lawsuit seeks a declaratory judgment under the consumer protection laws of Nevada and Florida that the form is materially misleading and deceptive, an injunction barring the use of the form, damages on behalf of an alleged class, and attorney's fees and expenses.

On February 28, 2022, the Company filed a Motion to Dismiss all claims.

On February 13, 2023, the court entered an order granting the Company's Motion to Dismiss.

On March 13, 2023, Plaintiffs filed a Notice of Appeal.

On April 10, 2024, the U.S.

Court of Appeals for the Fourth Circuit issued an order affirming in part, reversing in part, and remanding the case to the District Court for further proceedings.

The Company will vigorously defend the lawsuit.

On or about October 31, 2024, Labcorp and the Plaintiff (on behalf of the putative class) entered into a Settlement Agreement.

That settlement is awaiting preliminary approval by the court.

On April 1, 2019, Covance Research Products was served with a Grand Jury Subpoena issued by the Department of Justice (DOJ) in Miami, Florida requiring the production of documents related to the importation into the United States of live non-human primate shipments originating from or transiting through China, Cambodia, and/or Vietnam from April 1, 2014 through March 28, 2019.

The Company is cooperating with the DOJ.

The Company responded to the DOJ.

On May 14, 2019, Retrieval-Masters Creditors Bureau, Inc.

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

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(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.

8 unchanged sentences

District Courts.

Numerous similar lawsuits have been filed against other health care providers who used AMCA.

Numerous similar lawsuits have been filed against other healthcare providers who used AMCA.

These lawsuits were consolidated into a multidistrict litigation in the District of New Jersey.

9 unchanged sentences

On May 5, 2023, the court granted in part and denied in part the Company’s Motion to Dismiss.

On November 1, 2024, Plaintiffs served their motion for class certification.

The Company will vigorously defend the remaining claims in the multi-district litigation.

9 unchanged sentences

The Company will vigorously defend the lawsuit.

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(Dollars and Shares in Millions, Except Per Share Data)

Certain governmental entities have requested information from the Company related to the AMCA Incident.

17 unchanged sentences

On April 18, 2024, the Ninth Circuit denied the Petition for Rehearing En Banc.

On September 13, 2024, the

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

Company filed a Petition for Writ of Certiorari with the United States Supreme Court.

The Company will vigorously defend the lawsuit.

On September 13, 2024, the Company filed a Petition for Writ of Certiorari with the United States Supreme Court, which was granted on January 24, 2025.

On October 16, 2020, Ravgen Inc.

2 unchanged sentences

District Court for the Western District of Texas, alleging infringement of two Ravgen-owned U.S.

The lawsuit seeks monetary damages, enhancement of those damages for willfulness, and recovery of attorney’s fees and costs.

On September 28, 2022, a jury rendered a verdict in favor of the Plaintiff on the remaining patent at issue, finding that the Company willfully infringed Ravgen's patent, and awarded damages of $ 272.0 .

The lawsuit sought monetary damages, enhancement of those damages for willfulness, and recovery of attorney’s fees and costs.

On September 28, 2022, a jury rendered a verdict in favor of the Plaintiff on the sole asserted patent finding that the Company willfully infringed Ravgen’s patent, and awarded damages of $ 272.0 .

Plaintiff filed post-trial motions seeking enhanced damages of up to $ 817.0 based on the finding of willfulness, as well as attorney’s fees and costs.

On May 12, 2023, the court issued an order granting Plaintiff’s motion in part and awarding enhanced damages of $ 100.0 .

On January 23, 2025, the court issued an order awarding Plaintiff post-verdict supplemental damages of $ 2.6 , an ongoing royalty of one hundred dollars and 00/100 cents per test through the life of the patent at issue, pre- and post-judgment interest, and other relief.

In January and February 2025, the trial court entered orders denying the Company’s post-trial motions.

The Company strongly disagrees with the verdict, based on a number of legal factors, and will vigorously defend the lawsuit through the appeal process.

1 unchanged sentence

Patent and Trademark Office challenging the validity of the Ravgen patent at issue in the trial.

In November 2022, the Patent Trial and Appeal Board issued a decision upholding the validity of the Ravgen patent, and the Company has filed an appeal of this decision.

In November 2022, the Patent Trial and Appeal Board issued a decision upholding the validity of the Ravgen patent, and that decision was upheld on appeal before the United States Court of Appeals for the Federal Circuit in January 2025.

On May 14, 2020, the Company was served with a putative class action lawsuit, Jose Bermejo v.

13 unchanged sentences

Once the claims administration is completed, the parties will seek final settlement approval from the court.

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.

On July 28, 2024, the Court issued a dismissal of the lawsuit pursuant to a settlement agreement between plaintiff and the Company.

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(Dollars and Shares in Millions, Except Per Share Data)

On November 23, 2021, the Company was served with a single plaintiff Private Attorney General Act lawsuit, Poole v.

Laboratory Corporation of America , filed in the Superior Court of California, County of Kern, alleging various violations of the California Labor Code, including that Plaintiff was not properly paid wages owed, not properly paid meal and rest break premiums, not reimbursed for certain business related expenses, and other allegations including the untimely payment of wages and receipt of inaccurate wage statements.

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

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

The case was removed to the U.S.

District Court for the Eastern District of California.

A settlement of the Bermejo I and Bermejo II lawsuits, if approved by the court, will resolve the portion of the Poole lawsuit relating to service representatives and senior service representatives.

On October 5, 2020, the Company was served with a putative class action lawsuit, Williams v.

LabCorp Employer Services, Inc.

, filed in the Superior Court of California, County of Los Angeles, alleging that certain non-exempt California-based employees were not properly compensated for work and overtime hours, not properly paid meal and rest break premiums, not reimbursed for certain business-related expenses, not properly paid for driving or wait times, and received inaccurate wage statements.

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

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

District Court for the Central District of California.

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

On June 24, 2021, the

LABCORP HOLDINGS INC.

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

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 parties entered into a settlement agreement which received court preliminary approval on December 13, 2023.

Settlement proceeds were transferred to the settlement fund administrator in January 2024 and have been distributed by the settlement fund administrator.

On September 13, 2024, the court issued its final approval of the settlement and dismissed the lawsuit.

The parties entered into a settlement agreement in January 2025 and will seek dismissal of the action.

On June 7, 2023, the Company was served with a putative class action lawsuit, Connie Howard, Yadira Yazmin Hernandez, and Deborah Reynolds, et al.

Laboratory Corporation of America, Laboratory Corporation of America Holdings, and Meta Platforms, Inc., filed in the U.S.

Laboratory Corporation of America, Laboratory Corporation of America Holdings, and Meta Platforms, Inc.

, filed in the U.S.

District Court for the Northern District of California, alleging that the Company’s website includes a tracking code created by Meta, known as the Meta Pixel, that sent information related to Plaintiffs and their online activities to Meta.

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On August 14, 2020, the Company was served with a Subpoena Duces Tecum issued by the State of Colorado Office of the Attorney General requiring the production of documents related to urine drug testing in all states.

The Company is cooperating with this request.

The Company has responded to this request.

On February 7, 2022, the Company was served with a Subpoena Duces Tecum issued by the DOJ in Camden, New Jersey requiring the production of documents related to non-invasive prenatal screening tests.

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The Company is cooperating with the DOJ.

In April 2023, the Company received Civil Investigative Demands issued by the DOJ in Washington, D.C.

requiring the production of information related to the Medicare billing rule regarding reimbursement for laboratory testing performed for hospital patients.

The Company cooperated with the DOJ and entered into an agreement dated September 26, 2024 to resolve the matter.

On February 13, 2024, a putative class action lawsuit, Michael Wiggins and Teri Stevens v.

Laboratory Corporation of America Holdings , was filed in the U.S.

District Court for the Eastern District of Pennsylvania, alleging that the Company’s website includes a computer code created by Google that sent information to Google related to Plaintiffs and their online activities.

Plaintiffs assert statutory and common law claims against the Company and seek to represent a class of all persons whose health information was allegedly shared with Google from the Company’s website before March 8, 2023.

Plaintiffs seek an injunction, damages, attorneys’ fees, and costs.

On April 12, 2024, the Company filed a Motion to Compel Arbitration and Stay Proceedings.

On October 11, 2024, the Court granted the Motion to Compel Arbitration and Stay Proceedings.

The Company will vigorously defend any arbitration proceeding.

There are various other pending legal proceedings involving the Company including, but not limited to, additional employment-related lawsuits, professional liability lawsuits, and commercial lawsuits.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and Shares in Millions, Except Per Share Data)

FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company’s population of financial assets and liabilities subject to fair value measurements were as follows:

Fair Value Measurements

The Company’s population of financial assets and liabilities subject to fair value measurements as of September 30, 2024, and December 31, 2023, was as follows:

Fair Value Measurements as of

September 30, 2024

Balance Sheet Fair Value as of Using Fair Value Hierarchy

Classification September 30, 2024 Level 1 Level 2 Level 3

Condensed Consolidated Balance Sheets Classification

March 31, 2025

Fair Value at Using Fair Value Hierarchy

March 31, 2025 Level 1 Level 2 Level 3

Noncontrolling interest put Noncontrolling interest $ 14.3 $ — $ 14.3 $ —

Cross currency swaps Other liabilities

$ 135.7 $ — $ 135.7 $ —

Interest rate swaps Other liabilities

$ 65.0 $ — $ 65.0 $ —

Cash surrender value of life insurance policies Other assets, net $ 101.3 $ — $ 101.3 $ —

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Deferred compensation liability Other liabilities

Contingent consideration Accrued expenses and other;

Other liabilities 22.0 — — 22.0

Fair Value Measurements as of

$ 134.0 $ — $ 134.0 $ —

Contingent consideration Accrued expenses and other/Other liabilities $ 34.8 $ — $ — $ 34.8

Fair Value Measurements

Condensed Consolidated Balance Sheets Classification

December 31, 2024

Balance Sheet Fair Value as of Using Fair Value Hierarchy

Classification December 31, 2023 Level 1 Level 2 Level 3

Fair Value at Using Fair Value Hierarchy

December 31, 2024 Level 1 Level 2 Level 3

Noncontrolling interest put Noncontrolling interest $ 14.3 $ — $ 14.3 $ —

Cross currency swaps Accrued expenses and other;

Other liabilities 109.0 — 109.0 —

Interest rate swaps Other liabilities, net 69.6 — 69.6 —

Cross currency swaps Other liabilities

$ 142.7 $ — $ 142.7 $ —

Interest rate swaps Other liabilities

$ 76.8 $ — $ 76.8 $ —

Cash surrender value of life insurance policies Other assets, net $ 102.1 $ — $ 102.1 $ —

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Deferred compensation liability Other liabilities

Contingent consideration Accrued expenses and other;

Other liabilities 66.1 — — 66.1

$ 132.5 $ — $ 132.5 $ —

Contingent consideration Accrued expenses and other/Other liabilities $ 10.8 $ — $ — $ 10.8

Fair Value Measurement of Level 3 Liabilities:

Contingent Consideration

Balance at December 31, 2024 $ 10.8

Additions 24.0

Balance at March 31, 2025 $ 34.8

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.

The noncontrolling interest put is valued at its contractually determined value, which approximates fair value.

The fair values of derivative financial instruments have been determined based on market value equivalents at the balance sheet date, taking into account the current interest rate environment and therefore were classified as Level 2 measurements in the fair value hierarchy.

The Company offers certain employees the opportunity to participate in an employee-funded deferred compensation plan (DCP).

A participant's deferrals are allocated by the participant to one or more of multiple measurement funds, which are indexed to externally managed funds.

A participant’s deferrals are allocated by the participant to one or more multiple measurement funds, which are indexed to externally managed funds.

From time to time, to offset the cost of the growth in the participant’s investment accounts, the Company purchases life insurance policies, with the Company named as beneficiary of the policies.

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The cash surrender value and the DCP obligations are classified within Level 2 because their inputs are derived principally from observable market data by correlation to the hypothetical investments.

Contingent accrued earn-out business acquisition consideration liabilities are measured at fair value using Level 3 valuations.

Contingent accrued earn-out business acquisition consideration liabilities for which fair values are measured as Level 3 instruments.

These contingent consideration liabilities were recorded at fair value on the acquisition date and are remeasured quarterly based on the then assessed fair value and adjusted, if necessary.

The increases or decreases in the fair value of contingent consideration payable can result from changes in anticipated revenue levels and changes in assumed discount periods and rates.

As the fair value measure is based on significant inputs that are not observable in the market, they are categorized as Level 3.

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 $ 6,314.0 and $ 4,850.4 as of September 30, 2024, and December 31, 2023, 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.

The increases or decreases in the fair value of contingent consideration payable can result from changes in anticipated revenue levels and changes in assumed discount

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(Dollars and Shares in Millions, Except Per Share Data)

Cross-Currency Swap

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

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

During the second quarter of 2022, the Company terminated $ 300.0 of those cross-currency swap agreements and entered into new USD to Swiss Franc cross-currency swap agreements with an aggregate notional value of $ 300.0 that were set to mature in 2024.

periods and rates.

As the fair value measure is based on significant inputs that are not observable in the market, they are categorized as Level 3.

Although recorded at amortized cost on the Company’s Condensed Consolidated Balance Sheets, the fair market value of the Company’s senior notes was $ 4,833.5 and $ 5,762.6 as of March 31, 2025, and December 31, 2024, respectively.

The Company’s senior notes are considered Level 2 instruments, as the fair market values of these instruments are based on observable market pricing.

Interest Rate Swap

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 initially on the three-month London Interbank Offered Rate and later changed to the Secured Overnight Financing Rate in 2023, plus 1.7060 %.

Interest rate swap agreements, which have been used by the Company from time to time in the management of interest rate exposure, are accounted for at fair value.

These derivative financial instruments are accounted for as fair value hedges that increase or decrease the value of the Company’s senior notes with the offset being recorded as a component of other long-term assets or liabilities, as applicable.

As the specific terms and notional amounts of the derivative financial instruments match those of the fixed-rate debt being hedged, the derivative instruments are assumed to be perfectly effective hedges and accordingly, there is no impact to the Company’s Condensed Consolidated Statements of Operations.

Cross Currency Swaps

During the first quarter of 2024, the Company terminated its 2024 and 2025 USD to Swiss Franc cross currency swaps and entered into two new swaps, each with a notional value of $ 300.0 and maturity dates of 2031 and 2034, respectively.

During the third quarter of 2024, the Company entered into five new USD to Swiss Franc cross currency swaps, with an aggregate notional value of $ 600.0 , of which $ 300.0 matures in 2029 and $ 300.0 matures in 2034.

The cross currency swaps, in aggregate, are included in Accrued expenses and other and other long-term liabilities, as appropriate, with an aggregate fair value of $ 175.4 and $ 109.0 as of September 30, 2024 and December 31, 2023, respectively.

Changes in the fair value of the cross-currency swaps are charged or credited through accumulated other comprehensive income in the Consolidated Balance Sheet until the hedged item is recognized in earnings.

The cumulative amount of the fair value hedging adjustments are recognized as currency translation within the Condensed Consolidated Statement of Comprehensive Earnings.

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

Changes in the fair value of the cross-currency swaps are charged or credited through Accumulated other comprehensive income in the Condensed Consolidated Balance Sheet until the hedged item is recognized in earnings.

The cumulative amount of the fair value hedging adjustments is recognized as currency translation within the Condensed Consolidated Statement of Comprehensive Earnings.

The table below provides information regarding the location and amount of pretax gains of derivatives designated in fair value hedging relationships:

Amounts included in other comprehensive income

Three Months Ended March 31,

Cross currency swaps $ 7.0 $ 17.0

SUPPLEMENTAL CASH FLOW INFORMATION

Nine Months Ended September 30,

Cash paid during period for:

Three Months Ended March 31,

Cash paid during the period for:

Interest $ 92.4 $ 71.6

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BUSINESS SEGMENT INFORMATION

The following table is a summary of segment information for the three and nine months ended September 30, 2024, and 2023.

The following table is a summary of segment information for the three months ended March 31, 2025, and 2024.

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

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(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.

Segment asset information is not presented because it is not used by the CODM at the segment level.

The Corporate costs not allocated to segments include the costs of centralized functions, other charges such as acquisition expenses, spin-off costs, remaining unallocated costs of the CDCS business, and COVID-19 related costs unrelated to the segment.

Centralized functions include corporate governance, executive management and related human resources, finance, legal, risk management, and information technology functions.

The Company’s segment performance measure excludes the amortization of intangibles and other assets, restructuring and other charges, goodwill and other asset impairments, and certain corporate charges for items such as transaction costs, and other special items.

This aligns with how the CODM now evaluates segment performance and allocates resources.

Other operating expenses are comprised primarily of rent, maintenance, consulting sendouts, utilities, travel and entertainment, and other segment expenses, including shipping costs for Dx.

Segment asset information is not presented because it is not used by the CODM.

Three Months Ended March 31, 2025

Dx BLS Intercompany eliminations and other LHI

Revenues $ 2,629.6 $ 721.3 $ ( 5.8 ) $ 3,345.1

Operating Earnings:

Labor 1,123.6 289.7

Supplies 586.6 111.1

Shipping costs 95.0

Depreciation 61.7 28.6

Other operating expenses 430.2 90.0

Segment operating income $ 427.5 $ 106.9 $ 534.4

General corporate and unallocated expenses ( 132.4 )

Amortization of intangibles and other assets ( 69.6 )

Restructuring and other charges ( 6.4 )

Total Operating income

Other (expense) income:

Interest expense ( 56.0 )

Investment income 6.5

Equity method loss, net ( 0.3 )

Other, net ( 1.0 )

Earnings from operations before income taxes $ 275.2

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and Shares in Millions, Except Per Share Data)

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

2024 2023 2024 2023

Dx $ 2,553.5 $ 2,344.7 $ 7,558.1 $ 7,068.3

BLS 737.7 719.1 2,155.6 2,079.4

Intercompany eliminations and other ( 9.2 ) ( 7.0 ) ( 34.2 ) ( 19.4 )

Total revenues $ 3,282.0 $ 3,056.8 $ 9,679.5 $ 9,128.3

Three Months Ended March 31, 2024

Dx BLS Intercompany eliminations and other LHI

Revenues $ 2,479.7 $ 710.9 $ ( 14.0 ) $ 3,176.6

Operating Earnings:

Dx segment operating income $ 387.4 $ 386.3 $ 1,246.8 $ 1,237.5

BLS segment operating income 120.9 109.0 328.2 287.2

Labor 1,055.7 290.4

Supplies 560.4 103.5

Shipping costs 88.4

Depreciation 61.7 31.2

Other operating expenses 384.0 97.5

Segment operating income $ 417.9 $ 99.9 $ 517.8

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Amortization of intangibles and other assets ( 60.1 )

Goodwill and other asset impairments — ( 10.2 ) ( 2.5 ) ( 15.2 )

Restructuring and other charges ( 5.0 )

Goodwill and other asset impairments ( 2.5 )

Total Operating income

Other (expense) income:

Interest expense ( 46.9 )

Investment income 2.9

Equity method income, net

Other, net 20.0

Earnings from operations before income taxes $ 297.4

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