Quest Diagnostics 2010 Annual Report Download - page 101

practice. The Company’s diagnostics products business manufactures and markets products that enable healthcare
professionals to make healthcare diagnoses, including products for point-of-care testing for the professional
market.
On April 19, 2006, the Company decided to discontinue NID’s operations and results of operations for NID
have been classified as discontinued operations for all years presented (see Note 16).
At December 31, 2010, substantially all of the Company’s services are provided within the United States,
and substantially all of the Company’s assets are located within the United States.
The following table is a summary of segment information for the years ended December 31, 2010, 2009 and
2008. Segment asset information is not presented since it is not used by the chief operating decision maker at the
operating segment level. Operating earnings (loss) of each segment represents net revenues less directly
identifiable expenses to arrive at operating income for the segment. General management and administrative
corporate expenses, including amortization of intangible assets, are included in general corporate expenses below.
The accounting policies of the segments are the same as those of the Company as set forth in Note 2.
2010 2009 2008
Net revenues:
Clinical testing business .......................... $6,738,604 $6,824,149 $6,613,101
All other operating segments...................... 630,321 631,094 636,346
Total net revenues................................ $7,368,925 $7,455,243 $7,249,447
Operating earnings (loss):
Clinical testing business .......................... $1,424,173 $1,491,131 $1,318,904
All other operating segments...................... 44,314 59,862 56,677
General corporate expenses ....................... (172,952) (191,882) (153,205)
Total operating income ........................... 1,295,535 1,359,111 1,222,376
Non-operating expenses, net ...................... (111,200) (131,179) (171,719)
Income from continuing operations before
income taxes .................................. 1,184,335 1,227,932 1,050,657
Income tax expense.............................. 425,531 460,474 386,768
Income from continuing operations .............. 758,804 767,458 663,889
Loss from discontinued operations, net of taxes. . (1,787) (1,236) (50,694)
Net income ...................................... 757,017 766,222 613,195
Less: Net income attributable to noncontrolling
interests....................................... 36,123 37,111 31,705
Net income attributable to Quest Diagnostics .... $ 720,894 $ 729,111 $ 581,490
2010 2009 2008
Depreciation and amortization:
Clinical testing business ........................ $194,655 $200,905 $208,115
All other operating segments . .................. 17,457 17,337 18,414
General corporate . . . ........................... 41,852 38,445 38,064
Total depreciation and amortization ............. $253,964 $256,687 $264,593
Capital expenditures:
Clinical testing business ........................ $166,445 $136,248 $178,505
All other operating segments . .................. 29,803 23,592 22,891
General corporate . . . ........................... 9,152 7,088 11,285
Total capital expenditures ...................... $205,400 $166,928 $212,681
F-35
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(dollars in thousands unless otherwise indicated)