Quest Diagnostics 2000 Annual Report Download - page 89

QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(dollars in thousands unless otherwise indicated)
F-19
10. INTANGIBLE ASSETS
Intangible assets at December 31, 2000 and 1999 consisted of the following:
2000 1999
Goodwill ......................................................................................... $ 1,387,242 $ 1,517,527
Customer lists ................................................................................. 39,480 38,556
Other (principally non-compete agreements) ................................ 39,347 39,346
1,466,069 1,595,429
Less: accumulated amortization..................................................... (204,466) (159,547)
Total ........................................................................................ $ 1,261,603 $ 1,435,882
11. ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable and accrued expenses at December 31, 2000 and 1999 consisted of the following:
2000 1999
Accrued expenses ........................................................................... $ 199,528 $ 288,603
Accrued wages and benefits........................................................... 240,275 189,945
Accrued settlement reserves........................................................... 86,076 49,473
Accrued restructuring and integration costs .................................. 33,012 45,023
Income taxes payable ..................................................................... 18,450 29,324
Trade accounts payable .................................................................. 112,241 53,441
Total ........................................................................................ $ 689,582 $ 655,809
12. DEBT
Short-term borrowings and current portion of long-term debt at December 31, 2000 and 1999 consisted of the
following:
2000 1999
Short-term borrowings under receivables financing ..................... $ 256,000 $ -
Current portion of long-term debt.................................................. 9,408 45,435
Total ........................................................................................ $ 265,408 $ 45,435
On July 21, 2000, the Company completed a $256 million receivables-backed financing transaction (the
“Receivables Financing”), the proceeds of which were used to pay down loans outstanding under the Credit Agreement.
Approximately $48 million was used to completely repay amounts outstanding under the capital markets loan, with the
remainder used to repay amounts outstanding under the term loans. In addition, the repayment of the capital markets loan
reduced the borrowing spreads on all remaining term loans under the Credit Agreement. The Receivables Financing
facility was provided on an uncommitted basis by Blue Ridge Asset Funding Corporation, a commercial paper funding
vehicle administered by Wachovia Bank, N.A. and with a one year back-up facility provided on a committed basis by
Wachovia Bank, N.A. The Receivables Financing has an initial term of three years, unless extended, or terminated early
as a result of the termination of liquidity commitments to Blue Ridge Asset Funding Corporation. The borrowings
outstanding under the Receivables Financing are classified as a current liability since the lenders fund the borrowings
through the issuance of commercial paper which matures at various dates up to ninety days from the date of issuance.
Interest is based on rates which approximate commercial paper rates for highly rated issuers. The weighted average
interest rate on borrowings outstanding at December 31, 2000 was 7.2%.