Quest Diagnostics 2009 Annual Report Download - page 99

and to determine the designations, preferences, rights and restrictions of such shares. Of the authorized shares,
1,300,000 shares have been designated Series A Preferred Stock and 1,000 shares have been designated Voting
Cumulative Preferred Stock. No shares are currently outstanding.
Common Stock
On May 4, 2006, the Company’s Restated Certificate of Incorporation was amended to increase the number
of authorized shares of common stock, par value $0.01 per share, from 300 million shares to 600 million shares.
Accumulated Other Comprehensive (Loss) Income
The components of accumulated other comprehensive (loss) income for 2009, 2008 and 2007 were as
follows:
Foreign
Currency
Translation
Adjustment
Market
Value
Adjustment
Deferred
Gain
(Loss)
Accumulated
Other
Comprehensive
(Loss) Income
Balance, December 31, 2006 .................. $ 512 $(2,819) $ 2,242 $ (65)
Translation adjustment ........................ 30,820 - - 30,820
Market value adjustment, net of tax benefit of
$24. . . . .................................... - (36) - (36)
Reversal of market value adjustment, net of
tax expense of $(510) ...................... - 802 - 802
Deferred loss, less reclassifications . . . ......... - - (6,242) (6,242)
Balance, December 31, 2007 .................. 31,332 (2,053) (4,000) 25,279
Translation adjustment ........................ (94,326) - - (94,326)
Market value adjustment, net of tax benefit of
$261 . . .................................... - (398) - (398)
Reversal of market value adjustment, net of
tax expense of $(1,257) . . .................. - 2,161 - 2,161
Deferred loss, less reclassifications . . . ......... - - (784) (784)
Balance, December 31, 2008 .................. (62,994) (290) (4,784) (68,068)
Translation adjustment ........................ 49,586 - - 49,586
Reversal of market value adjustment, net of
tax expense of $(190) ...................... - 290 - 290
Deferred loss, less reclassifications . . . ......... - - (2,553) (2,553)
Other ........................................ - (216) - (216)
Balance, December 31, 2009 .................. $(13,408) $ (216) $(7,337) $(20,961)
The market value adjustments for 2008 and 2007 represented unrealized holding losses, net of taxes. The
reversal of market value adjustments for 2009, 2008 and 2007 represented prior periods unrealized holding losses
for investments where the decline in fair value was deemed to be other than temporary in 2009, 2008 and 2007,
and the resulting loss was recognized in the consolidated statements of operations (see Note 2). The deferred loss
for 2009 primarily represented the $10.5 million the Company paid upon settlement of the Forward Starting
Interest Rate Swap Agreements, net of amounts reclassified to interest expense. The deferred loss for 2008
primarily represented deferred losses on the Company’s interest rate swap agreements, net of amounts reclassified
to interest expense. The deferred loss for 2007 represented the $3.5 million the Company paid upon the
settlement of its Treasury Forward Agreements, net of amounts reclassified as an increase to interest expense, and
$2.7 million in deferred losses on its Interest Rate Swap Agreements (see Note 11). Foreign currency translation
adjustments are not adjusted for income taxes since they relate to indefinite investments in non-U.S. subsidiaries.
Dividend Program
During each of the quarters of 2009, 2008 and 2007, the Company’s Board of Directors declared a quarterly
cash dividend of $0.10 per common share.
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QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(dollars in thousands unless otherwise indicated)