Quest Diagnostics 2010 Annual Report Download - page 104

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Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2010
Parent
Subsidiary
Guarantors
Non-
Guarantor
Subsidiaries Eliminations Consolidated
Net revenues ................................ $ 841,637 $6,065,086 $744,798 $(282,596) $7,368,925
Operating costs and expenses:
Cost of services........................... 511,886 3,550,726 254,635 — 4,317,247
Selling, general and administrative ......... 111,530 1,245,050 380,861 (29,768) 1,707,673
Amortization of intangible assets........... 967 30,412 7,842 — 39,221
Royalty (income) expense . . . .............. (414,185) 414,185 — — —
Other operating expense, net. .............. 7,691 1,056 502 — 9,249
Total operating costs and expenses . ..... 217,889 5,241,429 643,840 (29,768) 6,073,390
Operating income ........................... 623,748 823,657 100,958 (252,828) 1,295,535
Non-operating (expense) income, net ......... (134,080) (232,908) 2,960 252,828 (111,200)
Income from continuing operations before
taxes ..................................... 489,668 590,749 103,918 — 1,184,335
Income tax expense . . ....................... 164,176 233,091 28,264 — 425,531
Income from continuing operations ........... 325,492 357,658 75,654 — 758,804
(Loss) income from discontinued operations,
net of taxes............................... — (16,713) 14,926 — (1,787)
Equity earnings from subsidiaries ............ 395,402 — — (395,402) —
Net income ................................. 720,894 340,945 90,580 (395,402) 757,017
Less: Net income attributable to
noncontrolling interests .................... — — 36,123 — 36,123
Net income attributable to Quest
Diagnostics ............................... $ 720,894 $ 340,945 $ 54,457 $(395,402) $ 720,894
Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2009
Parent
Subsidiary
Guarantors
Non-
Guarantor
Subsidiaries Eliminations Consolidated
Net revenues ................................ $ 877,940 $6,140,346 $767,481 $(330,524) $7,455,243
Operating costs and expenses:
Cost of services........................... 518,958 3,550,414 252,103 — 4,321,475
Selling, general and administrative ......... 171,724 1,232,366 373,542 (30,014) 1,747,618
Amortization of intangible assets........... 72 30,218 6,772 — 37,062
Royalty (income) expense . . . .............. (405,393) 405,393 — — —
Other operating (income) expense, net ..... (13,017) (521) 3,515 — (10,023)
Total operating costs and expenses . ..... 272,344 5,217,870 635,932 (30,014) 6,096,132
Operating income ........................... 605,596 922,476 131,549 (300,510) 1,359,111
Non-operating (expense) income, net ......... (172,522) (274,924) 15,757 300,510 (131,179)
Income from continuing operations before
taxes ..................................... 433,074 647,552 147,306 — 1,227,932
Income tax expense . . ....................... 163,846 252,220 44,408 — 460,474
Income from continuing operations ........... 269,228 395,332 102,898 — 767,458
Loss from discontinued operations, net of
taxes ..................................... — (1,236) — — (1,236)
Equity earnings from subsidiaries ............ 459,883 — — (459,883) —
Net income ................................. 729,111 394,096 102,898 (459,883) 766,222
Less: Net income attributable to
noncontrolling interests .................... — — 37,111 — 37,111
Net income attributable to Quest
Diagnostics ............................... $ 729,111 $ 394,096 $ 65,787 $(459,883) $ 729,111
F-38
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(dollars in thousands unless otherwise indicated)