Quest Diagnostics 2007 Annual Report Download - page 109

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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, 2007
Parent
Subsidiary
Guarantors
Non-
Guarantor
Subsidiaries Eliminations Consolidated
Net revenues . ............................. $ 821,908 $5,488,797 $715,478 $(321,276) $6,704,907
Operating costs and expenses:
Cost of services ......................... 458,544 3,265,817 245,487 - 3,969,848
Selling, general and administrative........ 162,857 1,153,522 319,934 (23,455) 1,612,858
Amortization of intangible assets ......... 222 21,013 6,669 - 27,904
Royalty (income) expense ................ (393,975) 393,975 - - -
Other operating expense (income), net . . . . 51 (2,578) 5,488 - 2,961
Total operating costs and expenses ..... 227,699 4,831,749 577,578 (23,455) 5,613,571
Operating income .......................... 594,209 657,048 137,900 (297,821) 1,091,336
Non-operating expense, net ................. (178,849) (282,187) (15,719) 297,821 (178,934)
Income from continuing operations before
taxes.................................... 415,360 374,861 122,181 - 912,402
Income tax expense ........................ 157,270 150,994 50,310 - 358,574
Income from continuing operations ......... 258,090 223,867 71,871 - 553,828
Income (loss) from discontinued operations,
net of taxes ............................. - (213,917) 28 - (213,889)
Equity earnings from subsidiaries . .......... 81,849 - - (81,849) -
Net income . . . ............................. $ 339,939 $ 9,950 $ 71,899 $ (81,849) $ 339,939
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 (income) 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 (expense) income, 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
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