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BUSINESS ACQUISITIONS
 9 Months Ended
Sep. 30, 2020
Business Combinations [Abstract]  
Business Combination Disclosure [Text Block] BUSINESS ACQUISITIONS AND DISPOSITIONS During the nine months ended September 30, 2020, the Company acquired various business and related assets for approximately $208.8 in cash (including contingent consideration of $6.0 and net of cash acquired), $113.4 within LCD and $95.4 within CDD. The purchase consideration for all acquisitions in the nine months ended September 30, 2020, has been allocated under the acquisition method of accounting to the estimated fair market value of the net assets acquired, including approximately $88.5 in identifiable intangible assets and a residual amount of non-tax deductible goodwill of approximately $128.9. The amortization periods for intangible assets acquired from these businesses range from 5 to 15 years for customer relationships and non-compete agreements. These acquisitions were made primarily to extend the Company's geographic reach in important market areas, enhance the Company's scientific differentiation and to expand the breadth and scope of the
Company's CRO services. 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 businesses' workforce and established relationships and the benefits of being able to leverage operational efficiencies with favorable growth opportunities in these markets.
These acquisitions contributed $13.1 and $13.8 of revenue during the three and nine months ended September 30, 2020, respectively. The acquisitions contributed $3.5 and $3.6 of operating income, during the three and nine months ended September 30, 2020, respectively.
During the nine months ended September 30, 2019, the Company acquired various businesses and related assets for approximately $852.9 in cash (net of cash acquired), $647.4 within CDD and $205.5 within LCD. The purchase consideration for all acquisitions in the nine months ended September 30, 2019, has been allocated to the estimated fair market value of the net assets acquired, including approximately $324.1 in identifiable intangible assets and a residual amount of non-tax deductible goodwill for approximately $512.3. The amortization periods for intangible assets acquired from these businesses range from 11 to 15 years for customer relationships. These acquisitions were made primarily to extend the Company's geographic reach in important market areas, enhance the Company's scientific differentiation and to expand the breadth and scope of the Company's CRO services. 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 businesses' workforce and established relationships and the benefits of being able to leverage operational efficiencies with favorable growth opportunities in these markets.
On June 3, 2019, CDD acquired Envigo's nonclinical contract research services business, expanding CDD's global nonclinical drug development capabilities with additional locations and resources. Additionally, the Company divested the Covance Research Products business (CRP), which was a part of CDD, to Envigo. As part of this sale, CDD entered into a multi-year, renewable supply agreement with Envigo. The Company paid cash consideration of $601.0 (which is included in the nine month acquisition numbers above), received a floating rate secured note of $110.0, and recorded a loss on the sale of CRP of $12.2. The Company funded the transaction through a new term loan facility.
The final valuation of acquired assets and assumed liabilities in the transaction as of June 3, 2019, include the following:
Consideration Transferred
Cash consideration$601.0 
Fair value of CRP110.0 
Total$711.0 
Final
June 30, 2020
Net Assets Acquired
Cash and cash equivalents$11.3 
Accounts receivable12.1 
Unbilled services25.6 
Inventories4.5 
Prepaid expenses and other10.8 
Property, plant and equipment128.4 
Deferred income taxes25.2 
Goodwill376.6 
Customer relationships140.8 
Trade name and trademarks0.6 
Other assets9.9 
Total assets acquired745.8 
Accounts payable15.2 
Accrued expenses and other10.4 
Unearned revenue49.9 
Other liabilities69.3 
Total liabilities acquired144.8 
Net Envigo assets acquired601.0 
Floating rate secured note receivable due 2022110.0 
Total$711.0 
The final purchase consideration for Envigo has been allocated to the estimated fair market value of the net assets acquired, including approximately $141.4 in identifiable intangible assets and a residual amount of non-tax-deductible goodwill of approximately $376.6. The amortization period for intangible assets acquired is 11 years for customer relationships.
Unaudited Pro Forma Information
Had the Company's total 2019 and 2020 acquisitions been completed as of January 1, 2018, or January 1, 2019, respectively, the Company's pro forma results would have been as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Revenues$3,899.7 $2,969.0 $9,524.2 $8,827.7 
Net earnings attributable to Laboratory Corporation of America Holdings$744.9 $224.3 $666.3 $612.9