Quest Diagnostics 2010 Annual Report Download - page 85

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6. SUPPLEMENTAL CASH FLOW AND OTHER DATA
2010 2009 2008
Depreciation expense ............................................ $ 214,743 $ 219,625 $ 227,300
Interest expense ................................................. (147,502) (146,586) (185,476)
Interest income. ................................................. 1,414 2,518 5,712
Interest, net ..................................................... (146,088) (144,068) (179,764)
Interest paid . . . ................................................. 139,802 146,352 189,294
Income taxes paid ............................................... 421,864 362,524 359,336
Assets acquired under capital lease obligations .................... 18,818 — —
7. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment at December 31, 2010 and 2009 consisted of the following:
2010 2009
Land . . .................................................................. $ 35,786 $ 35,786
Buildings and improvements.............................................. 369,507 360,684
Laboratory equipment, furniture and fixtures .............................. 1,207,049 1,140,862
Leasehold improvements . ................................................ 394,296 374,922
Computer software developed or obtained for internal use.................. 427,161 376,004
Construction-in-progress . . ................................................ 53,392 51,124
2,487,191 2,339,382
Less: accumulated depreciation and amortization........................... (1,652,815) (1,513,436)
Total ............................................................... $ 834,376 $ 825,946
8. GOODWILL AND INTANGIBLE ASSETS
The changes in goodwill for the years ended December 31, 2010 and 2009 were as follows:
2010 2009
Balance as of January 1 . . ................................................. $5,083,944 $5,054,926
Goodwill acquired during the year . ........................................ — 25,973
Other purchase accounting adjustments ..................................... 246 (21,195)
Increase related to foreign currency translation .............................. 17,748 24,240
Balance as of December 31 ................................................ $5,101,938 $5,083,944
For the year ended December 31, 2009, goodwill acquired was associated with several immaterial
acquisitions. For the year ended December 31, 2010, other purchase accounting adjustments were primarily
related to a milestone payment on an acquisition from 2008. For the year ended December 31, 2009, other
purchase accounting adjustments were primarily related to a payment received from an escrow fund established at
the time of the HemoCue acquisition in 2007. Approximately 90% of the Company’s goodwill as of December
31, 2010 and 2009 was associated with its clinical testing business.
F-19
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(dollars in thousands unless otherwise indicated)