Quest Diagnostics 2003 Annual Report Download - page 102

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QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(dollars in thousands unless otherwise indicated)
Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2003
Non-
Subsidiary Guarantor
Parent Guarantors Subsidiaries Eliminations Consolidated
Net revenues ....................................... $ 791,399 $3,709,590 $467,559 $(230,590) $4,737,958
Operating costs and expenses:
Cost of services .................................... 457,819 2,147,387 163,417 - 2,768,623
Selling, general and administrative ................... 76,626 880,951 223,762 (15,639) 1,165,700
Amortization of intangible assets .................... 1,723 6,461 17 - 8,201
Royalty (income) expense ........................... (308,495) 308,495 - - -
Other operating (income) expense, net ............... 119 (2,197) 1,058 - (1,020)
Total operating costs and expenses ................ 227,792 3,341,097 388,254 (15,639) 3,941,504
Operating income .................................. 563,607 368,493 79,305 (214,951) 796,454
Non-operating expenses, net ......................... (65,689) (202,146) (5,772) 214,951 (58,656)
Income before taxes ................................ 497,918 166,347 73,533 - 737,798
Income tax expense ................................ 204,795 66,539 29,747 - 301,081
Income before equity earnings ...................... 293,123 99,808 43,786 - 436,717
Equity earnings from subsidiaries .................... 143,594 - - (143,594) -
Net income ........................................ $ 436,717 $ 99,808 $ 43,786 $(143,594) $ 436,717
Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2002
Non-
Subsidiary Guarantor
Parent Guarantors Subsidiaries Eliminations Consolidated
Net revenues ....................................... $ 749,268 $3,143,063 $483,637 $(267,917) $4,108,051
Operating costs and expenses:
Cost of services .................................... 477,683 1,804,150 150,555 - 2,432,388
Selling, general and administrative ................... 167,736 663,560 258,667 (15,122) 1,074,841
Amortization of intangible assets .................... 2,154 6,219 - - 8,373
Royalty (income) expense ........................... (246,687) 246,687 - - -
Other operating (income) expense, net ............... 2,527 (923) (1,297) - 307
Total operating costs and expenses ................ 403,413 2,719,693 407,925 (15,122) 3,515,909
Operating income .................................. 345,855 423,370 75,712 (252,795) 592,142
Non-operating expenses, net ......................... (73,700) (220,396) (8,464) 252,795 (49,765)
Income before taxes ................................ 272,155 202,974 67,248 - 542,377
Income tax expense ................................ 109,337 81,190 29,696 - 220,223
Income before equity earnings ...................... 162,818 121,784 37,552 - 322,154
Equity earnings from subsidiaries .................... 159,336 - - (159,336) -
Net income ........................................ $ 322,154 $ 121,784 $ 37,552 $(159,336) $ 322,154
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