Quest Diagnostics 2010 Annual Report Download - page 105

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Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2008
Parent
Subsidiary
Guarantors
Non-
Guarantor
Subsidiaries Eliminations Consolidated
Net revenues ................................ $ 829,484 $5,999,552 $653,183 $(232,772) $7,249,447
Operating costs and expenses:
Cost of services........................... 486,922 3,527,559 241,675 — 4,256,156
Selling, general and administrative ......... 191,583 1,234,815 334,772 (24,236) 1,736,934
Amortization of intangible assets........... 268 30,857 6,168 — 37,293
Royalty (income) expense . . . .............. (424,404) 424,404 — — —
Other operating expense (income), net ..... 404 (511) (3,205) — (3,312)
Total operating costs and expenses . ..... 254,773 5,217,124 579,410 (24,236) 6,027,071
Operating income ........................... 574,711 782,428 73,773 (208,536) 1,222,376
Non-operating (expense) income, net ......... (188,720) (198,595) 7,060 208,536 (171,719)
Income from continuing operations before
taxes ..................................... 385,991 583,833 80,833 — 1,050,657
Income tax expense . . ....................... 130,746 237,119 18,903 — 386,768
Income from continuing operations ........... 255,245 346,714 61,930 — 663,889
(Loss) income from discontinued operations,
net of taxes............................... — (55,511) 4,817 — (50,694)
Equity earnings from subsidiaries ............ 326,245 — — (326,245) —
Net income ................................. 581,490 291,203 66,747 (326,245) 613,195
Less: Net income attributable to
noncontrolling interests .................... — — 31,705 — 31,705
Net income attributable to Quest
Diagnostics ............................... $ 581,490 $ 291,203 $ 35,042 $(326,245) $ 581,490
Condensed Consolidating Statement of Cash Flows
For the Year Ended December 31, 2010
Parent
Subsidiary
Guarantors
Non-
Guarantor
Subsidiaries Eliminations Consolidated
Cash flows from operating activities:
Net income ................................. $ 720,894 $ 340,945 $ 90,580 $(395,402) $ 757,017
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization ............. 49,310 188,705 15,949 — 253,964
Provision for doubtful accounts ............ 5,164 55,240 231,333 — 291,737
Other, net ................................ (352,975) 13,547 1,158 395,402 57,132
Changes in operating assets and liabilities . . 450,897 (474,476) (218,224) — (241,803)
Net cash provided by operating activities ..... 873,290 123,961 120,796 — 1,118,047
Net cash used in investing activities.......... (120) (144,863) (7,725) (63,802) (216,510)
Net cash (used in) provided by financing
activities. ................................. (945,603) 4,373 (109,064) 63,802 (986,492)
Net change in cash and cash equivalents ..... (72,433) (16,529) 4,007 — (84,955)
Cash and cash equivalents, beginning
of year . . ................................. 464,958 17,457 51,841 — 534,256
Cash and cash equivalents, end of year. ...... $ 392,525 $ 928 $ 55,848 $ — $ 449,301
F-39
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(dollars in thousands unless otherwise indicated)