BUSINESS ACQUISITIONS

12 Months Ended

Dec. 31, 2022

BUSINESS ACQUISITIONS AND DISPOSITIONS

2022

During the year ended December 31, 2022, the Company acquired various businesses and related assets for approximately $1,164.0 in cash (net of cash acquired). The purchase consideration for all acquisitions year to date has been allocated to the estimated fair market value of the net assets acquired, including approximately $542.3 in identifiable intangible assets and a residual amount of non-tax-deductible goodwill of approximately $598.5. The amortization periods for intangible assets acquired from these transactions range from 15 to 19 years for customer relationships, 15 years for patents and technology, 5 years for non-compete agreements, and 5 to 10 years for trade names. These acquisitions were made primarily to extend the Company's geographic reach in important market areas and enhance the Company's scientific differentiation. 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. A summary of the net assets acquired in 2022 for these businesses is included below:


	Preliminary Personal Genome Diagnostics Inc.		Preliminary Ascension Healthcare		Other Acquisitions		Measurement Period Adjustments		Amounts Acquired During Year Ended December 31, 2022

Accounts receivable	$	4.1	$	—	$	(1.3)	$	(2.3)	$	0.5
Unbilled services	2.9		—		—		(3.2)		(0.3)
Inventories	2.5		24.6		—		—		27.1
Prepaid expenses and other	1.2		0.4		0.3		—		1.9
Property, plant and equipment	9.9		43.5		0.1		—		53.5
Deferred income taxes	17.5		—		—		15.2		32.7
Goodwill	346.8		125.0		126.7		(40.4)		558.1
Intangible assets	136.6		233.2		172.5		30.4		572.7
Other assets	12.5		—		2.3		(2.3)		12.5
Total assets acquired	534.0		426.7		300.6		(2.6)		1,258.7
Accounts payable	3.8		—		—		(0.1)		3.7
Accrued expenses and other	57.3		—		15.4		0.1		72.8
Unearned revenue	3.3		—		—		(2.6)		0.7

Lease liabilities	—		2.9		—		—		2.9
Other liabilities	14.6		—		—		—		14.6
Total liabilities acquired	79.0		2.9		15.4		(2.6)		94.7
Net assets acquired	$	455.0	$	423.8	$	285.2	$	—	$	1,164.0

The purchase price allocation for several transactions are still preliminary and subject to change. The areas of the purchase price allocation that are not yet finalized relate primarily to property, plant and equipment, intangible assets, goodwill, and the impact of finalizing deferred taxes. Accordingly, adjustments may be made as additional information is obtained about the facts and circumstances that existed as of the valuation date. Any adjustments will be recorded in the period in which they are identified.

Unaudited Pro Forma Information for 2022 Acquisitions

Had the aggregate of the Company's 2022 acquisitions been completed as of January 1, 2021, the Company's pro forma results would have been as follows:


	Years Ended December 31,
	2022		2021
Revenues	$	14,997.6	$	16,310.5
Net earnings attributable to Laboratory Corporation of America Holdings	1,282.4		2,362.1

2021

During the year ended December 31, 2021, the Company acquired various businesses and related assets for approximately $496.9 in cash (net of cash acquired). The purchase consideration for all acquisitions year to date has been allocated to the estimated fair market value of the net assets acquired, including approximately $198.5 in identifiable intangible assets and a residual amount of non-tax-deductible goodwill of approximately $298.4. The amortization periods for intangible assets acquired from these businesses range from 15 to 19 years for customer relationships, 5 to 15 years for patents and technology, 5 years for non-compete agreements, and 10 years for trade names. These acquisitions were made primarily to extend the Company's geographic reach in important market areas and enhance the Company's scientific differentiation. 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. A summary of the net assets acquired in 2021 for these businesses is included below:


	Amounts Acquired During Year Ended December 31, 2021

Accounts receivable	$	10.8
Unbilled services	3.2
Inventories	1.6
Prepaid expenses and other	3.0
Property, plant and equipment	56.6

Goodwill	298.4
Intangible assets	198.5

Total assets acquired	572.1
Accounts payable	2.5
Accrued expenses and other	3.9
Unearned revenue	6.6

Other liabilities	62.2
Total liabilities acquired	75.2
Net assets acquired	$	496.9

Unaudited Pro Forma Information for 2021 Acquisitions

Had the aggregate of the Company's 2021 acquisitions been completed as of January 1, 2020, the Company's pro forma results would have been as follows:


	Years Ended December 31,
	2021		2020
Revenues	$	16,216.6	$	14,112.8
Net earnings attributable to Laboratory Corporation of America Holdings	2,378.3		1,554.5