JOINT VENTURE PARTNERSHIPS AND EQUITY METHOD INVESTMENTS

12 Months Ended

Dec. 31, 2014

Equity Method Investments and Joint Ventures [Abstract]

JOINT VENTURE PARTNERSHIPS AND EQUITY METHOD INVESTMENTS

JOINT VENTURE PARTNERSHIPS AND EQUITY METHOD INVESTMENTS

At December 31, 2014 the Company had investments in the following unconsolidated joint venture partnerships and equity method investments:

Locations	Net Investment		Interest Owned
Joint Venture Partnerships:
Milwaukee, Wisconsin	$	20.5	50.00	%
Alberta, Canada	55.2		43.37	%
Florence, South Carolina	10.0		49.00	%
Equity Method Investments:
Various	6.9		various

The joint venture agreements that govern the conduct of business of these partnerships mandates unanimous agreement between partners on all major business decisions as well as providing other participating rights to each partner. The equity method investments represent the Company’s purchase of shares in clinical diagnostic companies. The investments are accounted for under the equity method of accounting as the Company does not have control of these investments. The Company has no material obligations or guarantees to, or in support of, these unconsolidated investments and their operations.

Condensed unconsolidated financial information for joint venture partnerships and equity method investments is shown in the following table.

As of December 31:	2014		2013
Current assets	$	66.0	$	43.4
Other assets	43.3		40.9
Total assets	$	109.3	$	84.3
Current liabilities	$	28.2	$	21.9
Other liabilities	1.4		1.3
Total liabilities	29.6		23.2
Partners' equity	79.7		61.1
Total liabilities and partners’ equity	$	109.3	$	84.3

For the period January 1 - December 31:	2014		2013		2012
Net sales	$	283.8	$	255.2	$	249.0
Gross profit	81.3		84.1		86.4
Net earnings	31.0		37.7		42.2

The Company’s recorded investment in the Alberta joint venture partnership at December 31, 2014 includes $41.3 of value assigned to the partnership’s Canadian license (with an indefinite life and deductible for tax) to conduct diagnostic testing services in the province. The Canadian partnership has a license to conduct diagnostic testing services in the province of Alberta. Substantially all of its revenue is received as reimbursement from the Alberta government's health care programs. While the Canadian license guarantees the joint venture the ability to conduct diagnostic testing in Alberta, it does not guarantee that the provincial government will continue to reimburse diagnostic laboratory testing in future years at current levels. If the provincial government decides to limit or reduce its reimbursement of laboratory diagnostic services, it would have a negative impact on the profits and cash flows the Company derives from its Canadian joint venture. In December 2013, Alberta Health Services (“AHS”), the Alberta government's health care program, issued a request for proposals for laboratory services that includes the scope of services performed by the Canadian partnership.  In October 2014, AHS informed the Canadian partnership that it was not selected as the preferred proponent.  In November 2014, the Canadian partnership submitted a vendor bid appeal.  AHS has established a Vendor Bid Appeal Panel to hear the appeal.  If the AHS contract award remains with the preferred proponent, then the Canadian partnership's revenues would decrease substantially and the carrying value of the Company's investment could potentially be impaired.