Quest Diagnostics 2006 Annual Report Download - page 107

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Intangible assets at December 31, 2006 and 2005 consisted of the following:
Cost
Accumulated
Amortization Net Cost
Accumulated
Amortization Net
Weighted
Average
Amortization
Period December 31, 2006 December 31, 2005
Amortizing intangible assets:
Customer-related
intangibles ....... 18 years $206,880 $(48,010) $158,870 $172,522 $(39,297) $133,225
Non-compete
agreements....... 5 years 47,165 (45,261) 1,904 45,707 (44,221) 1,486
Other .............. 10 years 15,372 (3,500) 11,872 7,044 (3,772) 3,272
Total . . .......... 18 years 269,417 (96,771) 172,646 225,273 (87,290) 137,983
Intangible assets not subject to
amortization:
Tradenames ....................... 20,700 - 20,700 9,400 - 9,400
Total intangible assets . . . ........ $290,117 $(96,771) $193,346 $234,673 $(87,290) $147,383
Amortization expense related to intangible assets was $10,843, $4,637 and $6,378 for the years ended
December 31, 2006, 2005 and 2004, respectively.
The estimated amortization expense related to amortizable intangible assets for each of the five succeeding
fiscal years and thereafter as of December 31, 2006 is as follows:
Fiscal Year Ending
December 31,
2007.............................................................. $ 11,882
2008.............................................................. 11,743
2009.............................................................. 11,329
2010.............................................................. 11,071
2011.............................................................. 10,849
Thereafter. . . ...................................................... 115,772
Total ........................................................... $172,646
For the year ended December 31, 2006, the increase in intangible assets not subject to amortization was due
to tradenames resulting from the acquisitions of Focus Diagnostics, $9.1 million, and Enterix, $2.2 million (see
Note 3).
For the year ended December 31, 2005, the increase in intangible assets not subject to amortization was due
to tradenames resulting from the acquisition of LabOne, $9.4 million (see Note 3).
9. ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable and accrued expenses at December 31, 2006 and 2005 consisted of the following:
2006 2005
Trade accounts payable ....................................................... $215,721 $193,385
Accrued wages and benefits ................................................... 321,539 275,709
Accrued expenses ............................................................. 296,736 295,359
Total....................................................................... $833,996 $764,453
F-20
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(dollars in thousands unless otherwise indicated)