BUSINESS ACQUISITIONS

3 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

BUSINESS ACQUISITIONS

On February 19, 2015 (Acquisition Date), the Company completed the acquisition of Covance Inc. (Acquisition) for $6,150.7. The Company finalized its purchase price allocation during the measurement period. The facts and circumstances that existed at the date of the Acquisition, if known, would have affected the measurement of the amounts recognized at that date. In accordance with ASC 805, Business Combinations, measurement period adjustments are not included in current earnings, but recognized as of the date of the acquisition with a corresponding adjustment to goodwill resulting from the change in preliminary amounts. As a result, the Company adjusted the preliminary allocation of the purchase price initially recorded at the Acquisition Date to reflect these measurement period adjustments. The Company recorded certain measurement period adjustments and certain classifications of expenses, including items associated with the allocation of stock compensation, from cost of revenue to selling, general and administrative expenses. As a result of these measurement period adjustments, depreciation expense, amortization and the provision for income taxes for the three months ended March 31, 2015 decreased $1.9, $0.3 and $0.2, respectively. In addition, accumulated comprehensive income as of December 31, 2015 increased by $102.7 ($122.2 of which related to the three months ended March 31, 2015) due to the cumulative translation adjustment relating to the allocation of the intangible assets associated with the Acquisition.

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

Consideration Transferred
Cash consideration						$	4,388.2
Stock consideration						1,762.5
						$	6,150.7
	Preliminary February 19, 2015		Measurement Period Adjustments			Adjusted February 19, 2015
Net Assets Acquired
Cash and cash equivalents	$	780.8	$	—		$	780.8
Accounts receivable	334.8		—			334.8
Unbilled services	138.7		—			138.7
Inventories	51.9		—			51.9
Prepaid expenses and other	261.4		86.5			347.9
Deferred income taxes	34.4		61.5			95.9
Property, plant and equipment	844.2		174.0			1,018.2
Goodwill	3,176.1		(82.4		)	3,093.7
Customer relationships	1,917.2		(86.9		)	1,830.3
Trade names and trademarks	289.4		(18.9		)	270.5
Land use right	4.9		(4.9		)	—
Technology	—		74.5			74.5
Favorable leases	—		5.5			5.5
Other assets	15.2		(3.2		)	12.0
Total assets acquired	7,849.0		205.7			8,054.7
Accounts payable	190.8		—			190.8
Accrued expenses and other	280.8		26.1			306.9
Unearned revenue	168.0		—			168.0
Deferred income taxes	730.2		149.1			879.3
Senior notes	250.0		—			250.0
Other liabilities	78.5		30.5			109.0
Total liabilities acquired	1,698.3		205.7			1,904.0
Net assets acquired	$	6,150.7	$	—		$	6,150.7

The amortization periods for intangible assets acquired are 27 years for customer relationships, 15 years for trade names and trademarks, 10 years for technology, and 8 years for favorable leases.

Unaudited Pro Forma Information

The Company completed the Acquisition on February 19, 2015. Had the Acquisition been completed as of the beginning of 2014, the Company's pro forma results for 2015 would have been as follows:

	Three Months Ended March 31, 2015
Total revenues	$	2,146.4
Operating income	272.4
Net income	125.1
Earnings per share:
Basic	$	1.23
Diluted	$	1.22

The unaudited pro forma results reflect certain adjustments related to past operating performance, acquisition costs and acquisition accounting adjustments, such as increased amortization expense based on the estimated fair value of assets acquired, the impact of the Company’s new financing arrangements, and the related tax effects. The 2015 pro forma results exclude costs directly attributable to the Acquisition which are not expected to have a continuing impact on the combined company. The pro forma results do not include any anticipated synergies which may be achievable subsequent to the Acquisition. These pro forma results of operations have been prepared for comparative purposes only, and they do not purport to be indicative of the results of operations that actually would have resulted had the Acquisition occurred on the date indicated or that may result in the future.

During the three months endedMarch 31, 2016, the Company also acquired various laboratories and related assets for approximately $93.3 in cash (net of cash acquired). The purchase consideration for these acquisitions has been allocated to the estimated fair market value of the net assets acquired, including approximately $37.3 in identifiable intangible assets (primarily customer relationships and non-compete agreements) and a residual amount of goodwill of approximately $59.4. These acquisitions were made primarily to extend the Company's geographic reach in important market areas and/or enhance the Company's scientific differentiation and esoteric testing capabilities.