Quest Diagnostics 2006 Annual Report Download - page 123

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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, 2006
Parent
Subsidiary
Guarantors
Non-
Guarantor
Subsidiaries Eliminations Consolidated
Net revenues . ............................. $ 942,692 $4,995,640 $710,692 $(380,365) $6,268,659
Operating costs and expenses:
Cost of services ......................... 501,942 2,958,591 235,473 - 3,696,006
Selling, general and administrative........ 147,862 1,020,774 264,488 (22,408) 1,410,716
Amortization of intangible assets ......... 1,451 8,924 468 - 10,843
Royalty (income) expense ................ (394,693) 394,693 - - -
Other operating expense, net . . . .......... (3,358) 24,704 1,671 - 23,017
Total operating costs and expenses ..... 253,204 4,407,686 502,100 (22,408) 5,140,582
Operating income .......................... 689,488 587,954 208,592 (357,957) 1,128,077
Non-operating income (expense), net........ (160,244) (295,672) 3,155 357,957 (94,804)
Income from continuing operations before
taxes.................................... 529,244 292,282 211,747 - 1,033,273
Income tax expense ........................ 201,426 118,441 87,714 - 407,581
Income from continuing operations ......... 327,818 173,841 124,033 - 625,692
Loss from discontinued operations, net of
taxes.................................... - (28,980) (10,291) - (39,271)
Equity earnings from subsidiaries . .......... 258,603 - - (258,603) –
Net income . . . ............................. $ 586,421 $ 144,861 $113,742 $(258,603) $ 586,421
Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2005
Parent
Subsidiary
Guarantors
Non-
Guarantor
Subsidiaries Eliminations Consolidated
Net revenues . ............................. $ 874,113 $4,319,625 $544,174 $(281,186) $5,456,726
Operating costs and expenses:
Cost of services ......................... 491,029 2,540,063 189,621 - 3,220,713
Selling, general and administrative........ 102,040 879,544 254,912 (20,634) 1,215,862
Amortization of intangible assets ......... 1,628 2,991 18 - 4,637
Royalty (income) expense ................ (352,743) 352,743 - - -
Other operating expense, net . . . .......... 8,288 (13) (309) - 7,966
Total operating costs and expenses ..... 250,242 3,775,328 444,242 (20,634) 4,449,178
Operating income .......................... 623,871 544,297 99,932 (260,552) 1,007,548
Non-operating expenses, net ................ (97,718) (219,652) (722) 260,552 (57,540)
Income from continuing operations before
taxes.................................... 526,153 324,645 99,210 - 950,008
Income tax expense ........................ 206,703 129,987 40,122 - 376,812
Income from continuing operations ......... 319,450 194,658 59,088 - 573,196
Loss from discontinued operations, net of
taxes.................................... - (26,437) (482) - (26,919)
Equity earnings from subsidiaries . .......... 226,827 - - (226,827) -
Net income . . . ............................. $ 546,277 $ 168,221 $ 58,606 $(226,827) $ 546,277
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