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45
(c) On April 4, 2011, we completed the acquisition of Athena Diagnostics (“Athena”). On May 17, 2011, we completed the
acquisition of Celera Corporation (“Celera”). Consolidated operating results for 2011 include the results of operations of
Athena and Celera subsequent to the closing of the applicable acquisition. See Note 5 to the consolidated financial
statements.
(d) Operating income includes pre-tax charges of $115 million, primarily associated with workforce reductions and
professional fees incurred in connection with further restructuring and integrating our business. In addition, operating
income includes a pre-tax gain on sale of royalty rights of $474 and the pre-tax loss of $40 million associated with the sale
of the Enterix. For further details regarding the sale of royalty rights and Enterix, see Note 6 to the consolidated financial
statements.
(e) Operating income includes $106 million of pre-tax charges incurred in conjunction with further restructuring and
integrating our business. Results for 2012 also include pre-tax charges of $10 million, principally representing severance
and other separation benefits as well as accelerated vesting of certain equity awards in connection with the succession of
our prior CEO. In addition, we estimate that the impact of severe weather during the fourth quarter of 2012 adversely
affected operating income for 2012 by approximately $16 million.
(f) Operating income includes a pre-tax charge to earnings in the first quarter of 2011 of $236 million which represented the
cost to resolve a previously disclosed civil lawsuit brought by a California competitor in which the State of California
intervened (the “California Lawsuit”) (see Note 18 to the consolidated financial statements). Also includes $52 million of
pre-tax charges incurred in conjunction with further restructuring and integrating our business, consisting of $42 million of
pre-tax charges principally associated with workforce reductions, with the remainder principally professional fees. Results
for 2011 also include $17 million of pre-tax transaction costs, primarily related to professional fees, associated with the
acquisitions of Athena and Celera (see Note 5 to the consolidated financial statements). In addition, operating income
includes pre-tax charges of $6 million, principally representing severance and other separation benefits as well as
accelerated vesting of certain equity awards in connection with the succession of our prior CEO. In addition, we estimate
that the impact of severe weather during the first quarter of 2011 adversely affected operating income for 2011 by $19
million.
(g) Operating income includes $27 million of costs principally associated with workforce reductions and $10 million of costs
associated with the settlement of employment litigation. In addition, we estimate that the impact of severe weather during
the first quarter of 2010 adversely affected operating income for 2010 by $14 million.
(h) Operating income includes a $16 million gain associated with an insurance settlement for storm-related losses.
(i) Includes $3 million of pre-tax financing related transaction costs associated with the acquisition of Celera, a $3 million
pre-tax gain associated with the sale of an investment, and $18 million of discrete income tax benefits, primarily associated
with certain state tax planning initiatives and the favorable resolution of certain tax contingencies.
(j) Includes discrete income tax benefits of $22 million, primarily associated with favorable resolutions of certain tax
contingencies.
(k) Includes $20 million of pre-tax charges related to the early extinguishment of debt, primarily related to the June 2009 and
November 2009 Debt Tender Offers and a $7 million pre-tax charge related to the write-off of an investment. Also
includes $7 million of income tax benefits, primarily associated with certain discrete tax benefits.
(l) Income (loss) from discontinued operations, net of taxes includes a gain of $14 million (including foreign currency
translation adjustments, partially offset by income tax expense and transaction costs) associated with the sale of HemoCue.
In addition, income (loss) from discontinued operations, net of taxes includes discrete tax benefits of $20 million
associated with favorable resolution of certain tax contingencies related to our NID business. See Note 19 to the
consolidated financial statements.
(m) Includes related charges in discontinued operations for the asset impairment associated with HemoCue and the loss on sale
associated with OralDNA totaling $86 million. Discontinued operations also includes a $8 million income tax expense
related to the re-valuation of deferred tax assets associated with HemoCue and a $4 million income tax benefit related to the
remeasurement of deferred taxes associated with HemoCue as a result of an enacted income tax rate change in Sweden. In
February 2013, we entered into an agreement to sell HemoCue. The sale of HemoCue was completed in April 2013. See
Note 19 to the consolidated financial statements for further details.
(n) Includes income tax payments of $175 million associated with the sale of royalty rights. In addition, includes
approximately $70 million of income tax payments which were deferred from the fourth quarter of 2012 under a program
offered to companies whose principal place of business was in states most affected by Hurricane Sandy.
(o) Includes receipts of $72 million from the termination of certain interest rate swap agreements and the deferral of
approximately $70 million of income tax payments into the first quarter of 2013, which was offered to companies whose
principal place of business was in states most affected by Hurricane Sandy.
(p) Includes payments associated with the settlement of the California Lawsuit, restructuring and integration costs, and
transaction costs associated with the acquisitions of Athena and Celera totaling $320 million, or $202 million net of an
associated reduction in estimated tax payments.
(q) Includes payments associated with restructuring and integration costs totaling $14 million, or $9 million net of an
associated reduction in estimated tax payments.