Quest Diagnostics 2007 Annual Report Download - page 110

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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, 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 (income), 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
Condensed Consolidating Statement of Cash Flows
For the Year Ended December 31, 2007
Parent
Subsidiary
Guarantors
Non-
Guarantor
Subsidiaries Eliminations Consolidated
Cash flows from operating activities:
Net income ............................. $ 339,939 $ 9,950 $ 71,899 $ (81,849) $ 339,939
Adjustments to reconcile net income to
net cash provided by (used in)
operating activities:
Depreciation and amortization . . ....... 50,726 170,344 16,809 - 237,879
Provision for doubtful accounts . ....... 11,219 83,240 205,767 - 300,226
Provision for restructuring and other
special charges ..................... - 238,781 - - 238,781
Other, net. . . . ......................... (64,298) 37,970 20,596 81,849 76,117
Changes in operating assets and
liabilities . . ......................... 634,379 (200,171) (700,226) - (266,018)
Net cash provided by (used in) operating
activities.............................. 971,965 340,114 (385,155) - 926,924
Net cash used in investing activities ...... (2,200,512) (1,334,217) (316,554) 2,092,090 (1,759,193)
Net cash provided by financing activities . 1,205,559 1,001,289 735,465 (2,092,090) 850,223
Net change in cash and cash equivalents. . (22,988) 7,186 33,756 - 17,954
Cash and cash equivalents, beginning of
year .................................. 134,598 7,661 7,381 - 149,640
Cash and cash equivalents, end of year . . . $ 111,610 $ 14,847 $ 41,137 $ - $ 167,594
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