Quest Diagnostics 2010 Annual Report Download - page 87

10. DEBT
Long-term debt at December 31, 2010 and 2009 consisted of the following:
2010 2009
Senior Notes due November 2010 . . ........................................ $ — $ 165,482
Senior Notes due July 2011 ................................................ 159,234 159,170
Term Loan due May 2012 ................................................. 742,000 742,000
Senior Notes due November 2015 . . ........................................ 499,227 499,067
Senior Notes due July 2017 ................................................ 374,480 374,400
Senior Notes due January 2020 ............................................ 503,770 478,115
Senior Notes due July 2037 ................................................ 420,840 420,683
Senior Notes due January 2040 ............................................ 243,422 243,088
Other . . ................................................................... 47,183 25,294
Total long-term debt . ................................................. 2,990,156 3,107,299
Less: current portion of long-term debt ..................................... 348,996 170,507
Total long-term debt, net of current portion ............................ $2,641,160 $2,936,792
Early Extinguishment of Debt
For the years ended December 31, 2009 and 2008, the Company recorded $20.4 million and $0.9 million of
pre-tax charges related to the early extinguishment of debt, primarily related to the Company’s June 2009 and
November 2009 debt tender offers, the repayment of borrowings outstanding under the Term Loan due 2012 in
2009 and 2008, and the 2009 repayment of the remaining principal outstanding under the certain debentures due
June 2034.
June 2009 Debt Tender Offer
On May 19, 2009, the Company commenced a cash tender offer to purchase up to $200 million aggregate
principal amount of its 5.125% Senior Notes due 2010 and 7.50% Senior Notes due 2011. On June 16, 2009, the
Company finalized its cash tender offer (the “June 2009 Debt Tender Offer”) by purchasing $174 million
aggregate principal amount of its 5.125% Senior Notes due 2010 and $26 million aggregate principal amount of
its 7.50% Senior Notes due 2011 that resulted in pre-tax losses of $4.8 million and $1.5 million, respectively.
The aggregate pre-tax loss of $6.3 million includes the write-off of $0.5 million of deferred financing fees and
unamortized discounts and cash payments of $5.8 million related to premiums and other costs to purchase the
5.125% Senior Notes due 2010 and the 7.50% Senior Notes due 2011 and is included in other income (expense),
net. The June 2009 Debt Tender Offer was financed with cash on-hand and $150 million of borrowings under the
Secured Receivables Credit Facility discussed below.
November 2009 Debt Tender Offer
In connection with the 2009 Senior Notes offering which is discussed below, on November 12, 2009, the
Company commenced a cash tender offer to purchase any and all of its outstanding 5.125% Senior Notes due
2010, and any and all of its outstanding 7.50% Senior Notes due 2011. On November 20, 2009, the Company
finalized its cash tender offer (the “November 2009 Debt Tender Offer”) by purchasing $61 million aggregate
principal amount of its 5.125% Senior Notes due 2010 and $89 million aggregate principal amount of its 7.50%
Senior Notes due 2011 that resulted in pre-tax losses of $2.6 million and $9.4 million, respectively. The
aggregate pre-tax loss of $12.1 million includes the write-off of $0.3 million of deferred financing fees and
unamortized discounts and cash payments of $11.8 million related to premiums and other costs to purchase the
5.125% Senior Notes due 2010 and the 7.50% Senior Notes due 2011 and is included in other income (expense),
net. The November 2009 Debt Tender Offer was financed with the net proceeds from the Company’s 2009
Senior Notes offering which is discussed below.
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QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(dollars in thousands unless otherwise indicated)