Slides
Page 1
Second Quarter 2026 Supplemental Financial Information July 30, 2026
Page 2
1 This presentation contains forward-looking statements, including, but not limited to, statements with respect to (i) the estimated 2026 guidance and related assumptions, (ii) the impact of various factors on operating and financial results, including global economic and market conditions on the company's businesses, operating results, cash flows and/or financial condition, (iii) future business strategies, (iv) expected savings, synergies and other benefits to the company, customers or patients from acquisitions and other transactions and partnerships, and (v) opportunities for future growth. Each of the forward-looking statements is subject to change based on various important factors, many of which are beyond the company's control, including without limitation: (i) the failure to receive tax-free treatment with respect to the spin-off of the company’s former Clinical Development and Commercialization Services business for U.S. federal income purposes; (ii) the impact of spin-off related items; (iii) personnel costs and potential difficulties with employee relations and retention; (iv) the trading price of the company's stock, competitive actions and other unforeseen changes and general uncertainties in the marketplace; (v) the impact of changes to existing or adoption of new laws and regulations applicable to the company, including healthcare reform, or changes to the interpretation and application of such laws and regulations; (vi) customer purchasing decisions, including changes in payer regulations or policies; (vii) adverse actions of governmental and third-party payers; (viii) changes in testing guidelines or recommendations; (ix) the impact of global geopolitical events; (x) the effect of public opinion on the company's reputation; (xi) adverse results in material litigation matters; (xii) failure to maintain or develop customer relationships; (xiii) the company's ability to develop or acquire new products and adapt to technological changes; (xiv) failure of the company’s information technology, systems, or data security; (xv) the impact of potential losses under repurchase agreements; (xvi) adverse weather conditions; (xvii) the number of revenue days in a financial period; (xviii) inflation; (xix) increased competition; and (xx) the effect of exchange rate fluctuations. These factors, in some cases, have affected and in the future (together with other factors) could affect the company's ability to implement the company's business strategy, and actual results could differ materially from those suggested by these forward-looking statements. As a result, readers are cautioned not to place undue reliance on any of the forward- looking statements. The company has no obligation to provide any updates to these forward-looking statements even if its expectations change. All forward- looking statements are expressly qualified in their entirety by this cautionary statement. Further information on potential factors, risks and uncertainties that could affect operating and financial results is included in the company's most recent Annual Report on Form 10-K and subsequent Forms 10-Q, including in each case under the heading RISK FACTORS, and in the company's other filings with the SEC. The information in this presentation should be read in conjunction with a review of the company's filings with the SEC including the information in the company's most recent Annual Report on Form 10-K, and subsequent Forms 10-Q, under the heading “MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS”. Cautionary Statement Regarding Forward-Looking Statements
Page 3
2 The company has provided in this presentation and accompanying tables “adjusted” financial information that has not been prepared in accordance with GAAP, including adjusted net income, adjusted EBITDA, adjusted EPS (or adjusted net income per share), adjusted operating income, adjusted operating margin, free cash flow, and certain segment information. The company believes these adjusted measures are useful to investors as a supplement to, but not as a substitute for, GAAP measures, in evaluating the company’s operational performance. The company further believes that the use of these non-GAAP financial measures provides an additional tool for investors in evaluating operating results and trends, and growth and shareholder returns, as well as in comparing the company’s financial results with the financial results of other companies. However, the company notes that these adjusted measures may be different from and not directly comparable to the measures presented by other companies. Reconciliations of these non-GAAP measures to the most comparable GAAP measures and an identification of the components that comprise “special items” used for certain adjusted financial information are included in the tables accompanying this presentation. Use of Adjusted Measures
Page 4
3 (Dollars in Millions) 2Q25 3Q25 4Q25 1Q26 2Q26 Depreciation $96.2 $97.0 $96.4 $94.0 $97.5 Amortization of Intangibles and Other Assets $68.3 $69.5 $72.6 $75.6 $78.1 Total Adjusted EBITDA (1) $627.8 $610.3 $584.1 $601.9 $686.2 Total Debt to Last Twelve Months Adjusted EBITDA (1) 2.5x 2.4x 2.3x 2.6x 2.4x Total Net Debt to Last Twelve Months Adjusted EBITDA (1)(2) 2.2x 2.1x 2.1x 2.2x 2.3x (1) Adjusted EBITDA excludes restructuring charges and special items. See Reconciliation on slide 11. (2) Net debt equals total debt less cash and cash equivalents. Select Financial Metrics
Page 5
4 (1) May not foot due to rounding. Second Quarter 2026 Foreign Exchange Impact to Revenues (1) (Dollars in Millions) Dollars Year over Year % Growth Enterprise Revenues, Constant Currency $3,716 5.4% Foreign Exchange Impact 15 0.4% Revenues, as Reported $3,731 5.8% Diagnostics Laboratories Revenues, Constant Currency $2,900 5.5% Foreign Exchange Impact 1 0.0% Revenues, as Reported $2,901 5.5% Biopharma Laboratory Services Revenues, Constant Currency $822 4.7% Foreign Exchange Impact 14 1.8% Revenues, as Reported $836 6.5%
Page 6
5 Year to Date Foreign Exchange Impact to Revenues (1) (Dollars in Millions) Dollars Year over Year % Growth Enterprise Revenues, Constant Currency $7,210 4.9% Foreign Exchange Impact $59 0.9% Revenues, as Reported $7,269 5.8% Diagnostics Laboratories Revenues, Constant Currency $5,657 5.2% Foreign Exchange Impact $6 0.1% Revenues, as Reported $5,663 5.3% Biopharma Laboratory Services Revenues, Constant Currency $1,563 3.8% Foreign Exchange Impact $54 3.6% Revenues, as Reported $1,617 7.3% (1) May not foot due to rounding.
Page 7
6 (1) Revenues recognized in several currencies; the largest foreign currency accounts for less than 10% of total revenues. Segment Distribution Geographic Distribution Second Quarter 2026 Revenue Distribution Diagnostics Laboratories 77.6% Biopharma Laboratory Services 22.4% Rest of World 17.0% USA 83.0% (1)
Page 8
7 (Dollars in Millions) 2024(1) 2025 2026 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Diagnostics Laboratories Revenue Routine vs. Esoteric Mix: Routine (2) 61.8% 61.2% 60.3% 59.9% 60.3% 59.5% 58.6% 58.5% 59.6% 59.0% Esoteric 38.2% 38.8% 39.7% 40.1% 39.7% 40.5% 41.4% 41.5% 40.4% 41.0% Payer Mix: Clients 32.0% 31.0% 31.7% 30.7% 31.1% 30.5% 30.1% 30.0% 29.5% 28.9% Patients 13.0% 13.4% 13.1% 12.2% 12.5% 13.3% 12.3% 12.2% 12.8% 14.0% Medicare and Medicaid 9.8% 10.1% 9.8% 10.3% 9.8% 9.7% 9.9% 10.4% 10.4% 10.3% Third Party 45.2% 45.6% 45.5% 46.8% 46.6% 46.5% 47.7% 47.4% 47.3% 46.8% Biopharma Laboratory Services Quarterly Book-to-Bill 0.81 1.03 0.96 1.17 1.13 1.18 0.89 1.16 0.94 1.14 Quarterly Net Orders ($) 577.5 729.4 711.0 895.1 813.2 925.4 710.8 918.9 736.2 953.2 Business Unit Revenue ($): Early Development Research Labs 199.9 191.2 212.8 239.4 208.8 230.1 219.9 207.0 210.0 226.9 Central Laboratories 510.9 515.8 524.9 527.6 512.5 554.7 579.2 586.0 570.6 609.3 Total Biopharma Laboratory Services Revenue 710.9 707.0 737.7 767.0 721.3 784.8 799.1 793.0 780.6 836.2 Additional Quarterly Business Segment Information (1) Routine vs Esoteric Mix and Payer Mix reflect the base business in 2024. (2) Revenue from lab management agreements are reflected in Routine.
Page 9
8 (1) Revenue variance percent: YOY change in revenue divided by prior year revenue. (2) Volume (in requisitions) variance percent: YOY change in volume divided by prior year volume. (3) Price / mix percent: Calculated as revenue variance percent, less volume (in requisitions) variance percent. (4) Day variances are rounded to the nearest quarter day. (5) May not cross-foot due to rounding. Revenue breakdown by Volume and Price / Mix Year over Year % Change Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Revenue (1) 6.0% 8.9% 8.5% 5.5% 5.0% 5.5% Volume (in requisitions) (2) 3.0% 4.9% 4.7% 2.2% 2.5% 3.0% Price / mix (3) 3.0% 4.0% 3.7% 3.3% 2.6% 2.5% Diagnostics Laboratories Price / Mix & Days Days in 2026 Versus 2025 (4) First Quarter Second Quarter Third Quarter Fourth Quarter Full Year (5) Revenue Day Variance — — + 0.25 Day — + 0.25 Day Payroll Day Variance — — — — —
Page 10
9 Backlog Estimated revenue expected to convert from backlog in the next twelve months As of June 30, 2026 $8.73 billion $2.75 billion As of March 31, 2026 $8.64 billion $2.69 billion As of December 31, 2025 $8.72 billion $2.66 billion As of September 30, 2025 $8.58 billion $2.66 billion As of June 30, 2025 $8.71 billion $2.71 billion (1) Results shown include the impact from cancellations and foreign currency translation. Biopharma Laboratory Services: Select Financial Metrics (1) Trailing Twelve Month (TTM) Results Net Orders Net Book-to-Bill TTM Ending June 30, 2026 $3.32 billion 1.03x TTM Ending March 31, 2026 $3.29 billion 1.04x TTM Ending December 31, 2025 $3.37 billion 1.09x TTM Ending September 30, 2025 $3.34 billion 1.09x TTM Ending June 30, 2025 $3.34 billion 1.11x
Page 11
10 Outlook for 2026 as of July 30, 2026 (Dollars in Millions, Except Per Share Data) Previous Updated 2026 Guidance 2026 Guidance (in Dollars) (in Dollars) Low High Low High Revenue Labcorp Enterprise (1)(2) $14,649 $14,803 $14,710 $14,827 Growth (3) 5.0% 6.1% 5.4% 6.3% Diagnostics Laboratories $11,431 $11,518 $11,450 $11,532 Growth (3) 5.1% 5.9% 5.3% 6.0% Biopharma Laboratory Services (4) $3,216 $3,266 $3,269 $3,300 Growth (3) 3.8% 5.4% 5.5% 6.5% Adjusted EPS $17.70 $18.35 $18.10 $18.55 Free Cash Flow $1,240 $1,360 $1,240 $1,360 (1) 2026 Updated Enterprise guidance includes an impact from foreign currency translation of 0.4%. (2) Enterprise level revenue is presented net of intercompany transaction eliminations. (3) Growth based on 2025 Enterprise revenue of $13,952 million, Diagnostics Laboratories revenue of $10,876 million, and Biopharma Laboratory Services revenue of $3,098 million. (4) 2026 Updated Biopharma Laboratory Services guidance includes an impact from foreign currency translation of 1.5%.
Page 12
11 (1) Other special charges represent the summation of the adjustments that impacted operating income excluding Restructuring and other charges, Goodwill and other asset impairments, and Amortization of intangibles and other assets. Reconciliation of Non-GAAP Financial Measures – Adjusted EBITDA (In Millions) 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Operating Income $ 326.0 $ 394.5 $ 396.6 $ 267.6 $ 380.8 $ 451.6 Add: Restructuring and other charges 6.4 4.1 5.9 110.8 6.4 5.1 Goodwill and other asset impairments — — 0.7 3.6 — — Other special charges (1) 67.0 64.7 40.6 33.1 45.1 53.9 Depreciation 91.6 96.2 97.0 96.4 94.0 97.5 Amortization of intangibles and other assets 69.6 68.3 69.5 72.6 75.6 78.1 Adjusted EBITDA $ 560.6 $ 627.8 $ 610.3 $ 584.1 $ 601.9 $ 686.2
Page 13
12 GAAP and Non-GAAP Income Statement (In Millions, Except Per Share Data) GAAP Non-GAAP (1) Three Months Ended June 30, Three Months Ended June 30, 2026 2025 2026 2025 Revenues $ 3,731.1 $ 3,527.3 $ 3,731.1 $ 3,527.3 Cost of revenues 2,619.1 2,481.1 2,593.5 2,461.9 Gross profit 1,112.0 1,046.2 1,137.6 1,065.4 Selling, general, and administrative expenses 577.2 579.3 548.9 533.8 Amortization of intangibles and other assets 78.1 68.3 — — Restructuring and other charges 5.1 4.1 — — Operating income 451.6 394.5 588.7 531.6 Other (expense) income: Interest expense (61.1) (57.1) (60.4) (56.7) Investment income 5.6 1.7 5.6 1.7 Equity method loss, net (6.2) (1.7) — (0.2) Other, net (3.5) (32.7) (2.1) (1.7) Earnings from operations before income taxes 386.4 304.7 531.8 474.7 Provision for income taxes 87.3 66.4 122.2 109.8 Net earnings 299.1 238.3 409.6 364.9 Less: Net earnings attributable to the noncontrolling interest (0.4) (0.4) (0.4) (0.4) Net earnings attributable to Labcorp Holdings Inc. $ 298.7 $ 237.9 $ 409.2 $ 364.5 Weighted average diluted shares outstanding 82.0 83.9 82.0 83.9 Diluted earnings per common share $ 3.64 $ 2.84 $ 4.99 $ 4.35 (1) Non-GAAP financial measures. See slides 14 and 15 for reconciliations.
Page 14
13 GAAP and Non-GAAP Income Statement (In Millions, Except Per Share Data) GAAP Non-GAAP (1) Six Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenues $ 7,268.7 $ 6,872.4 $ 7,268.7 $ 6,872.4 Cost of revenues 5,142.9 4,878.2 5,102.2 4,833.3 Gross profit 2,125.8 1,994.2 2,166.5 2,039.1 Selling, general, and administrative expenses 1,128.2 1,125.3 1,069.9 1,038.5 Amortization of intangibles and other assets 153.7 137.9 — — Restructuring and other charges 11.5 10.5 — — Operating income 832.4 720.5 1,096.6 1,000.6 Other (expense) income: Interest expense (116.2) (113.1) (115.5) (112.7) Investment income 17.8 8.2 9.0 8.2 Equity method loss, net (11.3) (2.0) (0.1) (0.5) Other, net (16.6) (33.7) (7.8) (2.6) Earnings from operations before income taxes 706.1 579.9 982.2 893.0 Provision for income taxes 129.0 128.6 220.0 203.9 Net earnings 577.1 451.3 762.2 689.1 Less: Net earnings attributable to the noncontrolling interest (0.6) (0.6) (0.6) (0.6) Net earnings attributable to Labcorp Holdings Inc. $ 576.5 $ 450.7 $ 761.6 $ 688.5 Weighted average diluted shares outstanding 82.4 84.1 82.4 84.1 Diluted earnings per common share $ 6.99 $ 5.36 $ 9.24 $ 8.19 (1) Non-GAAP financial measures. See slides 16 and 17 for reconciliations.
Page 15
14 Reconciliation of Non-GAAP Income Statement(1) Three Months Ended June 30, 2026 (In Millions, Except Per Share Data) GAAP Amortization of intangibles and other assets(a) Restructuring and other charges(b) Acquisition and disposition- related costs(c) Launchpad Costs(d) Venture Fund and Equity Method Investments(f)(g) Other Income Taxes(h) Non-GAAP Revenues $ 3,731.1 $ — $ — $ — $ — $ — $ — $ — $ 3,731.1 Cost of revenues 2,619.1 — — (10.7) (2.3) — (12.6) — 2,593.5 Gross profit 1,112.0 — — 10.7 2.3 — 12.6 — 1,137.6 Selling, general, and administrative expenses 577.2 — — (10.6) (9.4) — (8.3) — 548.9 Amortization of intangibles and other assets 78.1 (78.1) — — — — — — — Restructuring and other charges 5.1 — (5.1) — — — — — — Operating income 451.6 78.1 5.1 21.3 11.7 — 20.9 — 588.7 Other (expense) income: Interest expense (61.1) — — — — — 0.7 — (60.4) Investment income 5.6 — — — — — — — 5.6 Equity method loss, net (6.2) — — — — 6.2 — — — Other, net (3.5) — — — — 1.5 (0.1) — (2.1) Earnings from operations before income taxes 386.4 78.1 5.1 21.3 11.7 7.7 21.5 — 531.8 Provision for income taxes 87.3 34.9 122.2 Net earnings 299.1 78.1 5.1 21.3 11.7 7.7 21.5 (34.9) 409.6 Less: Net earnings attributable to the noncontrolling interest (0.4) — — — — — — — (0.4) Net earnings attributable to Labcorp Holdings Inc. $ 298.7 $ 78.1 $ 5.1 $ 21.3 $ 11.7 $ 7.7 $ 21.5 $ (34.9) $ 409.2 Weighted average diluted shares outstanding 82.0 82.0 Diluted earnings per common share $ 3.64 $ 4.99 (1) Footnotes associated with Reconciliation of Non-GAAP Income Statement are presented on slide 19.
Page 16
15 Reconciliation of Non-GAAP Income Statement(1) Three Months Ended June 30, 2025 (In Millions, Except Per Share Data) GAAP Amortization of intangibles and other assets(a) Restructuring and other charges(b) Acquisition and disposition- related costs(c) Launchpad Costs(d) TSA Reimbursement(e) Venture Fund Investments(f) Other Income Taxes(h) Non-GAAP Revenues $ 3,527.3 $ — $ — $ — $ — $ — $ — $ — $ — $ 3,527.3 Cost of revenues 2,481.1 — — (5.0) (3.1) — — (11.1) — 2,461.9 Gross profit 1,046.2 — — 5.0 3.1 — — 11.1 — 1,065.4 Selling, general, and administrative expenses 579.3 — — (10.1) (14.1) (0.5) — (20.8) — 533.8 Amortization of intangibles and other assets 68.3 (68.3) — — — — — — — — Restructuring and other charges 4.1 — (4.1) — — — — — — — Operating income 394.5 68.3 4.1 15.1 17.2 0.5 — 31.9 — 531.6 Other (expense) income: Interest expense (57.1) — — — — — — 0.4 — (56.7) Investment income 1.7 — — — — — — — — 1.7 Equity method loss, net (1.7) — — — — — — 1.5 — (0.2) Other, net (32.7) — — — — (0.5) 32.7 (1.2) — (1.7) Earnings from operations before income taxes 304.7 68.3 4.1 15.1 17.2 — 32.7 32.6 — 474.7 Provision for income taxes 66.4 43.4 109.8 Net earnings 238.3 68.3 4.1 15.1 17.2 — 32.7 32.6 (43.4) 364.9 Less: Net earnings attributable to the noncontrolling interest (0.4) — — — — — — — — (0.4) Net earnings attributable to Labcorp Holdings Inc. $ 237.9 $ 68.3 $ 4.1 $ 15.1 $ 17.2 $ — $ 32.7 $ 32.6 $ (43.4) $ 364.5 Weighted average diluted shares outstanding 83.9 83.9 Diluted earnings per common share $ 2.84 $ 4.35 (1) Footnotes associated with Reconciliation of Non-GAAP Income Statement are presented on slide 19.
Page 17
16 Reconciliation of Non-GAAP Income Statement(1) Six Months Ended June 30, 2026 (In Millions, Except Per Share Data) GAAP Amortization of intangibles and other assets(a) Restructuring and other charges(b) Acquisition and disposition- related costs(c) Launchpad Costs(d) Venture Fund and Equity Method Investments(f)(g) Other Income Taxes(h) Non-GAAP Revenues $ 7,268.7 $ — $ — $ — $ — $ — $ — $ — $ 7,268.7 Cost of revenues 5,142.9 — — (12.9) (4.9) — (22.9) — 5,102.2 Gross profit 2,125.8 — — 12.9 4.9 — 22.9 — 2,166.5 Selling, general, and administrative expenses 1,128.2 — — (18.3) (19.8) — (20.2) — 1,069.9 Amortization of intangibles and other assets 153.7 (153.7) — — — — — — — Restructuring and other charges 11.5 — (11.5) — — — — — — Operating income 832.4 153.7 11.5 31.2 24.7 — 43.1 — 1,096.6 Other (expense) income: Interest expense (116.2) — — — — — 0.7 — (115.5) Investment income 17.8 — — — — — (8.8) — 9.0 Equity method loss, net (11.3) — — — — 11.2 — — (0.1) Other, net (16.6) — — — — 8.6 0.2 — (7.8) Earnings from operations before income taxes 706.1 153.7 11.5 31.2 24.7 19.8 35.2 — 982.2 Provision for income taxes 129.0 91.0 220.0 Net earnings 577.1 153.7 11.5 31.2 24.7 19.8 35.2 (91.0) 762.2 Less: Net earnings attributable to the noncontrolling interest (0.6) — — — — — — — (0.6) Net earnings attributable to Labcorp Holdings Inc. $ 576.5 $ 153.7 $ 11.5 $ 31.2 $ 24.7 $ 19.8 $ 35.2 $ (91.0) $ 761.6 Weighted average diluted shares outstanding 82.4 82.4 Diluted earnings per common share $ 6.99 $ 9.24 (1) Footnotes associated with Reconciliation of Non-GAAP Income Statement are presented on slide 19.
Page 18
17 Reconciliation of Non-GAAP Income Statement(1) Six Months Ended June 30, 2025 (In Millions, Except Per Share Data) GAAP Amortization of intangibles and other assets(a) Restructuring and other charges(b) Acquisition and disposition- related costs(c) Launchpad Costs(d) TSA Reimbursement(e) Venture Fund Investments(f) Other Income Taxes(h) Non-GAAP Revenues $ 6,872.4 $ — $ — $ — $ — $ — $ — $ — $ — $ 6,872.4 Cost of revenues 4,878.2 — — (20.1) (6.3) — — (18.5) — 4,833.3 Gross profit 1,994.2 — — 20.1 6.3 — — 18.5 — 2,039.1 Selling, general, and administrative expenses 1,125.3 — — (24.1) (31.0) (3.8) — (27.9) — 1,038.5 Amortization of intangibles and other assets 137.9 (137.9) — — — — — — — — Restructuring and other charges 10.5 — (10.5) — — — — — — — Operating income 720.5 137.9 10.5 44.2 37.3 3.8 — 46.4 — 1,000.6 Other (expense) income: Interest expense (113.1) — — — — — — 0.4 — (112.7) Investment income 8.2 — — — — — — — — 8.2 Equity method loss, net (2.0) — — — — — — 1.5 — (0.5) Other, net (33.7) — — — — (3.8) 36.1 (1.2) — (2.6) Earnings from operations before income taxes 579.9 137.9 10.5 44.2 37.3 — 36.1 47.1 — 893.0 Provision for income taxes 128.6 75.3 203.9 Net earnings 451.3 137.9 10.5 44.2 37.3 — 36.1 47.1 (75.3) 689.1 Less: Net earnings attributable to the noncontrolling interest (0.6) — — — — — — — — (0.6) Net earnings attributable to Labcorp Holdings Inc. $ 450.7 $ 137.9 $ 10.5 $ 44.2 $ 37.3 $ — $ 36.1 $ 47.1 $ (75.3) $ 688.5 Weighted average diluted shares outstanding 84.1 84.1 Diluted earnings per common share $ 5.36 $ 8.19 (1) Footnotes associated with Reconciliation of Non-GAAP Income Statement are presented on slide 19.
Page 19
18 (1) Footnotes associated with Reconciliation of Non-GAAP Financial Measures are presented on slide 19. Reconciliation of Non-GAAP Financial Measures(1) (Dollars and Shares in Millions, Except Per Share Data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Adjusted Operating Income Operating income $ 451.6 $ 394.5 $ 832.4 $ 720.5 Amortization of intangibles and other assets (a) 78.1 68.3 153.7 137.9 Restructuring and other charges (b) 5.1 4.1 11.5 10.5 Acquisition and disposition-related costs (c) 21.3 15.1 31.2 44.2 LaunchPad costs (d) 11.7 17.2 24.7 37.3 Other 20.9 31.9 43.1 46.4 TSA reimbursement (e) — 0.5 — 3.8 Adjusted operating income $ 588.7 $ 531.6 $ 1,096.6 $ 1,000.6 Adjusted operating profit margin 15.8 % 15.1 % 15.1 % 14.6 % Adjusted Net Income Net income $ 298.7 $ 237.9 $ 576.5 $ 450.7 Impact of adjustments to operating income 137.1 137.1 264.2 280.1 Loss on venture fund investments, net (f) 1.5 32.7 8.6 36.1 Equity method loss from SYNLAB investment (g) 6.2 — 11.2 — TSA reimbursement (e) — (0.5) — (3.8) Other 0.6 0.7 (7.9) 0.7 Income tax impact of adjustments (h) (34.9) (43.4) (91.0) (75.3) Adjusted net income $ 409.2 $ 364.5 $ 761.6 $ 688.5 Weighted average diluted shares outstanding 82.0 83.9 82.4 84.1 Adjusted earnings per share $ 4.99 $ 4.35 $ 9.24 $ 8.19
Page 20
19 Reconciliation of Non-GAAP Financial Measures – Footnotes (a) Amortization of intangible assets acquired as part of business acquisitions. (b) Restructuring and other charges represent amounts incurred in connection with the elimination of redundant positions and facilities and contract termination costs within the organization in connection with our LaunchPad initiatives, and acquisitions or dispositions of businesses by the company. (c) Acquisition and disposition-related costs include due-diligence legal and advisory fees, retention bonuses, impact of delayed contract or license transfers, and other integration or disposition related activities. (d) LaunchPad costs include non-capitalized costs associated with the implementation of systems, consolidation of processes, and consulting costs incurred as part of various business process improvement initiatives. (e) Represents transition services fees charged to Fortrea Holdings Inc. related to administrative and IT systems support. The costs to provide these services are included in operating income but the service fees are included in other income. (f) The company makes investments in companies or investment funds developing promising technology related to its operations. The company recorded net gains and losses related to several distributions from venture funds, increases in the market value of investments, and impairments of other investments due to the underlying performance of the investments. (g) Adjustment removes the impact of the equity method income from the Company's minority investment in SYNLAB. (h) Income tax impact of adjustments calculated based on the tax rate applicable to each item.