Quest Diagnostics 2003 Annual Report Download - page 90

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QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(dollars in thousands unless otherwise indicated)
8. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment at December 31, 2003 and 2002 consisted of the following:
2003 2002
Land .................................................................... $ 34,909 $ 33,148
Buildings and improvements .............................................. 273,548 277,565
Laboratory equipment, furniture and fixtures ............................... 670,671 569,982
Leasehold improvements ................................................. 148,508 119,397
Computer software developed or obtained for internal use .................. 124,469 101,594
Construction-in-progress .................................................. 40,083 40,599
1,292,188 1,142,285
Less: accumulated depreciation and amortization ........................... (684,883) (572,136)
Total ................................................................. $ 607,305 $ 570,149
9. GOODWILL AND INTANGIBLE ASSETS
Goodwill at December 31, 2003 and 2002 consisted of the following:
2003 2002
Goodwill ................................................................ $2,706,928 $1,976,903
Less: accumulated amortization ........................................... (188,053) (188,053)
Goodwill, net ......................................................... $2,518,875 $1,788,850
The changes in the gross carrying amount of goodwill for the years ended December 31, 2003 and 2002
are as follows:
2003 2002
Balance as of January 1 ................................................. $1,976,903 $1,539,176
Goodwill acquired during the year ........................................ 730,025 437,727
Balance as of December 31 .............................................. $2,706,928 $1,976,903
Intangible assets at December 31, 2003 and 2002 consisted of the following:
Weighted
Average
Amortization
Period December 31, 2003 December 31, 2002
Accumulated Accumulated
Cost Amortization Net Cost Amortization Net
Non-compete agreements . . 5 years $44,942 $(37,947) $ 6,995 $44,482 $(32,268) $12,214
Customer lists ............ 15 years 42,225 (35,568) 6,657 41,301 (33,751) 7,550
Other .................... 10 years 5,895 (2,569) 3,326 4,580 (2,261) 2,319
Total .................. 10 years $93,062 $(76,084) $16,978 $90,363 $(68,280) $22,083
Amortization expense related to intangible assets was $8,201, $8,373 and $7,715 for the years ended
December 31, 2003, 2002 and 2001, respectively.
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