Quest Diagnostics 2007 Annual Report Download - page 9

Download and view the complete annual report

Please find page 9 of the 2007 Quest Diagnostics annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

TABLE OF CONTENTS
Item Page
Item 1. Business . .................................................................................. 1
Our Strategy and Strengths . ................................................................ 1
Business Operations ........................................................................ 2
The United States Clinical Testing Market................................................... 8
General . . .................................................................................. 11
Billing and Reimbursement . ................................................................ 13
Regulation ................................................................................. 16
Available Information ...................................................................... 19
Item 1A. Risk Factors ............................................................................... 21
Cautionary Factors That May Affect Future Results ..................................................... 29
Item 1B. Unresolved Staff Comments ................................................................ 30
Item 2. Properties .................................................................................. 31
Item 3. Legal Proceedings . ......................................................................... 32
Item 4. Submission of Matters to a Vote of Security Holders......................................... 33
Item 5. Market for Registrant’s Common Stock, Related Stockholder Matters and Issuer Purchases of
Equity Securities ......................................................................... 34
Item 6. Selected Financial Data..................................................................... 35
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations ...... 35
Item 7A. Quantitative and Qualitative Disclosures About Market Risk .................................. 35
Item 8. Financial Statements and Supplementary Data. . .............................................. 35
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure ...... 35
Item 9A. Controls and Procedures .................................................................... 36
Item 9B. Other Information . ......................................................................... 36
Item 10. Directors, Executive Officers and Corporate Governance. ..................................... 37
Item 11. Executive Compensation .................................................................... 38
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholders’
Matters .................................................................................. 38
Item 13. Certain Relationships and Related Transactions, and Director Independence. ................... 38
Item 14. Principal Accounting Fees and Services ..................................................... 38
Item 15. Exhibits, Financial Statement Schedules ..................................................... 39
Selected Historical Financial Data of Our Company ..................................................... 41
Management’s Discussion and Analysis of Financial Condition and Results of Operations ................. 43
Management’s Report on Internal Control Over Financial Reporting. ..................................... 61
Report of Independent Registered Public Accounting Firm . .............................................. F-1
Consolidated Financial Statements and Related Notes.................................................... F-2
Supplementary Data: Quarterly Operating Results (unaudited) ............................................ F-42
Schedule II – Valuation Accounts and Reserves. . ....................................................... F-44
i