Quest Diagnostics 2005 Annual Report Download - page 96

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QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(dollars in thousands unless otherwise indicated)
6. SUPPLEMENTAL CASH FLOW AND OTHER DATA
2005 2004 2003
Depreciation expense ................................................ $ 171,394 $162,024 $145,701
Interest expense..................................................... (61,446) (60,154) (60,630)
Interest income ..................................................... 3,975 2,205 841
Interest, net ........................................................ (57,471) (57,949) (59,789)
Interest paid ........................................................ 49,976 51,781 59,394
Income taxes paid .................................................. 314,534 209,156 211,966
Businesses acquired:
Fair value of assets acquired ........................................ $1,039,300 $ - $989,778
Fair value of liabilities assumed ..................................... 230,235 - 291,422
Non-cash financing activities:
Conversion of contingent convertible debentures....................... $ 244,338 $ 3,197 $ -
Fair value of common stock issued to acquire Unilab ................. - - 372,464
Fair value of converted options issued in conjunction with the
Unilab acquisition ................................................ - - 8,452
7. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment at December 31, 2005 and 2004 consisted of the following:
2005 2004
Land ................................................................ $ 36,255 $ 34,301
Buildings and improvements ........................................... 329,441 276,661
Laboratory equipment, furniture and fixtures ............................ 823,799 761,926
Leasehold improvements .............................................. 190,329 167,656
Computer software developed or obtained for internal use ............... 171,724 149,292
Construction-in-progress ............................................... 98,897 43,291
1,650,445 1,433,127
Less: accumulated depreciation and amortization ........................ (896,782) (813,642)
Total .............................................................. $ 753,663 $ 619,485
8. GOODWILL AND INTANGIBLE ASSETS
Goodwill at December 31, 2005 and 2004 consisted of the following:
2005 2004
Goodwill ............................................................. $3,385,280 $2,695,003
Less: accumulated amortization ........................................ (188,053) (188,053)
Goodwill, net ........................................................ $3,197,227 $2,506,950
The changes in the gross carrying amount of goodwill for the years ended December 31, 2005 and 2004
are as follows:
2005 2004
Balance as of January 1 .............................................. $ 2,695,003 $ 2,706,928
Goodwill acquired during the year ..................................... 697,766 -
Other ................................................................ (7,489) (11,925)
Balance as of December 31 ........................................... $ 3,385,280 $ 2,695,003
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