Quest Diagnostics 2000 Annual Report Download - page 88

Download and view the complete annual report

Please find page 88 of the 2000 Quest Diagnostics annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(dollars in thousands unless otherwise indicated)
F-18
The following table summarizes the Company's accruals associated with prior restructuring plans (in millions):
Employee
Severance
Costs
Costs of
Exiting Leased
Facilities Other Total
Balance, December 31,1997 ....................................... $ 18.5 $ 6.6 $ 5.1 $ 30.2
Amounts utilized in 1998.......................................... (13.4) (2.5) (2.8) (18.7)
Balance, December 31, 1998 ................................ 5.1 4.1 2.3 11.5
Amounts utilized in 1999.......................................... (4.6) (2.1) (0.1) (6.8)
Reversal........................................................................ (0.1) (1.3) (2.0) (3.4)
Balance, December 31, 1999 ................................ $ 0.4 $ 0.7 $ 0.2 $ 1.3
As discussed in Note 4, upon finalizing the initial integration plan for SBCL in the fourth quarter of 1999, the
Company determined that $3.4 million of the remaining reserves associated with the 1997 consolidation plan were no
longer necessary, due to changes in the plan as a result of the SBCL integration.
No material accruals, related to prior restructuring plans, existed at December 31, 2000.
8. EXTRAORDINARY LOSS
Extraordinary losses were recorded in 2000 and 1999 representing the write-off of deferred financing costs
associated with debt which was prepaid during the periods.
During the fourth quarter of 2000, the Company prepaid $155 million of term loans under its Credit Agreement.
The extraordinary loss recorded in the fourth quarter of 2000 in connection with this prepayment was $4.8 million ($2.9
million, net of taxes).
In conjunction with the acquisition of SBCL, the Company repaid the entire amount outstanding under its then
existing credit agreement. The extraordinary loss recorded in the third quarter of 1999 in connection with this prepayment
was $3.6 million ($2.1 million, net of taxes).
9. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment at December 31, 2000 and 1999 consisted of the following:
2000 1999
Land ................................................................................................ $ 35,084 $ 35,928
Buildings and improvements.......................................................... 258,433 263,232
Laboratory equipment, furniture and fixtures................................ 386,204 376,175
Leasehold improvements ............................................................... 60,187 59,774
Computer software developed or obtained for internal use ........ 38,567 26,500
Construction-in-progress................................................................ 55,078 33,836
833,553 795,445
Less: accumulated depreciation and amortization......................... (383,697) (367,467)
Total ........................................................................................ $ 449,856 $ 427,978