Quest Diagnostics 2008 Annual Report Download - page 113

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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, 2008
Parent
Subsidiary
Guarantors
Non-
Guarantor
Subsidiaries Eliminations Consolidated
Net revenues ................................ $ 829,484 $5,999,552 $653,183 $(232,772) $7,249,447
Operating costs and expenses:
Cost of services........................... 486,922 3,527,559 241,675 - 4,256,156
Selling, general and administrative ......... 191,583 1,234,815 334,772 (24,236) 1,736,934
Amortization of intangible assets........... 268 30,857 6,168 - 37,293
Royalty (income) expense . . . .............. (424,404) 424,404 - - -
Other operating expense (income), net ..... 404 (511) (3,205) - (3,312)
Total operating costs and expenses . ..... 254,773 5,217,124 579,410 (24,236) 6,027,071
Operating income ........................... 574,711 782,428 73,773 (208,536) 1,222,376
Non-operating expense, net .................. (188,720) (198,595) (24,645) 208,536 (203,424)
Income from continuing operations before
taxes ..................................... 385,991 583,833 49,128 - 1,018,952
Income tax expense . . ....................... 130,746 237,119 18,903 - 386,768
Income from continuing operations ........... 255,245 346,714 30,225 - 632,184
Income (loss) from discontinued operations,
net of taxes............................... - (55,511) 4,817 - (50,694)
Equity earnings from subsidiaries ............ 326,245 - - (326,245) -
Net income ................................. $ 581,490 $ 291,203 $ 35,042 $(326,245) $ 581,490
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
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