Quest Diagnostics 2008 Annual Report Download - page 95

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Intangible assets at December 31, 2008 and 2007 consisted of the following:
Cost
Accumulated
Amortization Net Cost
Accumulated
Amortization Net
Weighted
Average
Amortization
Period December 31, 2008 December 31, 2007
Amortizing intangible assets:
Customer-related
intangibles . . . . . 19 years $585,963 $ (99,384) $486,579 $ 589,418 $ (70,036) $519,382
Non-compete
agreements . . . . . 5 years 54,382 (48,298) 6,084 53,832 (46,476) 7,356
Other . ........... 13 years 53,934 (13,258) 40,676 64,214 (8,394) 55,820
Total .......... 19 years 694,279 (160,940) 533,339 707,464 (124,906) 582,558
Intangible assets not subject to
amortization:
Tradenames . . ................... 294,064 - 294,064 304,175 - 304,175
Total intangible assets ......... $988,343 $(160,940) $827,403 $1,011,639 $(124,906) $886,733
Amortization expense related to intangible assets was $37.3 million, $27.9 million and $10.8 million for the
years ended December 31, 2008, 2007 and 2006, respectively.
The estimated amortization expense related to amortizable intangible assets for each of the five succeeding
fiscal years and thereafter as of December 31, 2008 is as follows:
Fiscal Year Ending
December 31,
2009.............................................................. $ 36,086
2010.............................................................. 35,309
2011.............................................................. 35,049
2012.............................................................. 33,831
2013.............................................................. 32,851
Thereafter. . . ...................................................... 360,213
Total ........................................................... $533,339
8. ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable and accrued expenses at December 31, 2008 and 2007 consisted of the following:
2008 2007
Trade accounts payable . . . ................................................. $ 191,219 $ 205,067
Accrued wages and benefits................................................ 299,374 318,285
Accrued expenses ......................................................... 412,106 359,355
Accrued settlement reserves ................................................ 316,920 242,009
Total ................................................................... $1,219,619 $1,124,716
9. DEBT
Short-term borrowings and current portion of long-term debt at December 31, 2008 and 2007 consisted of
the following:
2008 2007
Borrowings under Secured Receivables Credit Facility . . . ......................... $ - $100,000
Current portion of long-term debt ................................................ 5,142 63,581
Total short-term borrowings and current portion of long-term debt............... $5,142 $163,581
F-23
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(dollars in thousands unless otherwise indicated)