Quest Diagnostics 2009 Annual Report Download - page 92

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(see Note 4 for further discussion). For the year ended December 31, 2008, other purchase accounting
adjustments were primarily related to changes in estimates regarding the realization of certain pre-acquisition net
operating loss carryforwards, the reduction in certain acquired pre-acquisition tax loss contingencies, and a
payment received from an escrow fund established at the time of the HemoCue acquisition (see Note 4 for
further discussion). Approximately 90% of the Company’s goodwill as of December 31, 2009 and 2008 was
associated with its clinical testing business.
Intangible assets at December 31, 2009 and 2008 consisted of the following:
Cost
Accumulated
Amortization Net Cost
Accumulated
Amortization Net
Weighted
Average
Amortization
Period December 31, 2009 December 31, 2008
Amortizing intangible assets:
Customer-related
intangibles ....... 19 years $ 600,460 $(129,994) $470,466 $585,963 $ (99,384) $486,579
Non-compete
agreements ...... 5 years 54,854 (50,252) 4,602 54,382 (48,298) 6,084
Other . . ............ 11 years 68,896 (18,867) 50,029 53,934 (13,258) 40,676
Total ............ 18 years 724,210 (199,113) 525,097 694,279 (160,940) 533,339
Intangible assets not subject to
amortization:
Tradenames ........ 298,568 - 298,568 294,064 - 294,064
Total intangible
assets ......... $1,022,778 $(199,113) $823,665 $988,343 $(160,940) $827,403
Amortization expense related to intangible assets was $37.1 million, $37.3 million and $27.9 million for the
years ended December 31, 2009, 2008 and 2007, respectively.
The estimated amortization expense related to amortizable intangible assets for each of the five succeeding
fiscal years and thereafter as of December 31, 2009 is as follows:
Fiscal Year Ending
December 31,
2010.............................................................. $ 39,863
2011.............................................................. 38,949
2012.............................................................. 37,609
2013.............................................................. 36,612
2014.............................................................. 35,990
Thereafter. . . ...................................................... 336,074
Total ........................................................... $525,097
9. ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable and accrued expenses at December 31, 2009 and 2008 consisted of the following:
2009 2008
Trade accounts payable...................................................... $207,327 $ 191,219
Accrued wages and benefits . . ............................................... 349,252 299,374
Accrued expenses . . ......................................................... 322,676 412,106
Accrued settlement reserves. . . ............................................... 9,450 316,920
Total . . . .................................................................. $888,705 $1,219,619
F-22
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(dollars in thousands unless otherwise indicated)