HELD FOR SALE AND DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2012

Held for Sale and Discontinued Operations [Abstract]

HELD FOR SALE AND DISCONTINUED OPERATIONS

HELD FOR SALE AND DISCONTINUED OPERATIONS

During the fourth quarter of 2012, the Company committed to a plan to sell HemoCue. In February 2013, the Company entered into an agreement to sell HemoCue for approximately $300 million plus estimated cash on hand at closing and other customary working capital adjustments. The Company completed the sale of OralDNA in December 2012. As a result, the Company's 2012 results include 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 $7.5 million income tax expense related to the re-valuation of deferred tax assets associated with HemoCue and a $4.4 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.

Results of operations for HemoCue and OralDNA have been reported as discontinued operations in the accompanying consolidated financial statements and related notes to consolidated financial statements for all periods presented. At December 31, 2012, the assets and liabilities of HemoCue have been reported as held for sale in the accompanying balance sheet.

During the third quarter of 2006, the Company completed its wind down of NID, a test kit manufacturing subsidiary, and classified the operations of NID as discontinued operations. Results of operations for NID have been reported as discontinued operations in the accompanying consolidated statements of operations and related disclosures for all periods presented. The Company plans to continue to report the operations of NID as discontinued operations until the resolution of uncertain tax benefits.

On April 15, 2009, the Company finalized the resolution of the federal government investigation related to NID and entered into a final settlement agreement with the federal government. In the second quarter of 2009, the Company paid $268 million to settle the civil allegations. The Company also entered into a five-year corporate integrity agreement with the Office of Inspector General for the United States Department of Health and Human Services. In addition, NID pled guilty to a single count of felony misbranding and paid a $40 million fine. These payments totaling $308 million, which had been previously reserved, were funded out of cash on-hand and available credit facilities. During the third quarter of 2009, the Company finalized separate settlement agreements with certain states and paid approximately $6 million, which had been previously reserved for.

Summarized financial information for the discontinued operations is set forth below:

	2012			2011			2010
Net revenues	$	116,940		$	118,557		$	108,805
Income (loss) from discontinued operations before taxes	(73,741		)	7,072			9,328
Income tax expense (benefit)	623			(4,486		)	(2,832		)
Income (loss) from discontinued operations, net of taxes	$	(74,364	)	$	11,558		$	12,160

The following table summarizes the HemoCue assets and liabilities held for sale in our consolidated balance sheets at December 31, 2012.

	2012
Assets held for sale:
Cash and cash equivalents	$	17,234
Accounts receivable, net	14,430
Inventories	5,388
Deferred income taxes	242
Prepaid expenses and other current assets	2,898
Total current assets held for sale	$	40,192
Property, plant and equipment, net	$	24,782
Goodwill	218,795
Intangible assets, net	110,773
Other assets	34
Total non-current assets held for sale	$	354,384
Liabilities held for sale:
Accounts payable and accrued expenses	$	21,322
Short-term borrowings and current portion of long-term debt	449
Deferred income taxes	237
Total current liabilities held for sale	$	22,008
Long-term debt	$	16,221
Other liabilities	44,579
Total non-current liabilities held for sale	$	60,800

Continuing cash flows from discontinued operations are not expected to be material.

The remaining balance sheet information related to NID was not material at December 31, 2012 and 2011. The remaining balance sheet information related to OralDNA was not material at December 31, 2012.