Quest Diagnostics 2008 Annual Report Download - page 114

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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 (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
Condensed Consolidating Statement of Cash Flows
For the Year Ended December 31, 2008
Parent
Subsidiary
Guarantors
Non-
Guarantor
Subsidiaries Eliminations Consolidated
Cash flows from operating activities:
Net income ............................... $ 581,490 $ 291,203 $ 35,042 $(326,245) $ 581,490
Adjustments to reconcile net income to
net cash provided by (used in)
operating activities:
Depreciation and amortization ........... 53,116 193,975 17,502 - 264,593
Provision for doubtful accounts.......... 11,261 106,804 208,163 - 326,228
Provision for special charge ............. - 72,650 - - 72,650
Other, net .............................. (279,394) 56,698 10,638 326,245 114,187
Changes in operating assets and
liabilities............................. 462,768 (470,560) (288,307) - (296,099)
Net cash provided by (used in) operating
activities. ................................. 829,241 250,770 (16,962) - 1,063,049
Net cash (used in) provided by investing
activities. ................................. (144,149) (149,004) 14,137 80,133 (198,883)
Net cash used in financing activities . . . ...... (578,137) (109,898) (9,646) (80,133) (777,814)
Net change in cash and cash equivalents ..... 106,955 (8,132) (12,471) - 86,352
Cash and cash equivalents, beginning of
year ...................................... 111,610 14,847 41,137 - 167,594
Cash and cash equivalents, end of year. ...... $ 218,565 $ 6,715 $ 28,666 $ - $ 253,946
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