Quest Diagnostics 2010 Annual Report Download - page 92

Common Stock
On May 4, 2006, the Company’s Restated Certificate of Incorporation was amended to increase the number
of authorized shares of common stock, par value $0.01 per share, from 300 million shares to 600 million shares.
Accumulated Other Comprehensive Income (Loss)
The components of accumulated other comprehensive income (loss) for 2010, 2009 and 2008 were as
follows:
Foreign
Currency
Translation
Adjustment
Market
Value
Adjustment
Deferred
Loss
Accumulated
Other
Comprehensive
Income (Loss)
Balance, December 31, 2007 .................. $ 31,332 $(2,053) $(4,000) $ 25,279
Translation adjustment ........................ (94,326) — — (94,326)
Market value adjustment, net of tax benefit of
$261 . . .................................... — (398) — (398)
Reversal of market value adjustment, net of
tax expense of $1,257 ...................... — 2,161 — 2,161
Net deferred losses on cash flow hedges....... — — (784) (784)
Balance, December 31, 2008 .................. (62,994) (290) (4,784) (68,068)
Translation adjustment ........................ 49,586 — — 49,586
Reversal of market value adjustment, net of
tax expense of $190........................ — 290 — 290
Net deferred losses on cash flow hedges....... — — (2,553) (2,553)
Other ........................................ — (216) — (216)
Balance, December 31, 2009 .................. (13,408) (216) (7,337) (20,961)
Translation adjustment ........................ 27,271 — — 27,271
Market value adjustment, net of tax expense of
$1,975. .................................... — 3,090 — 3,090
Amortization of net deferred losses on cash
flow hedges................................ — — 724 724
Other ........................................ — 502 — 502
Balance, December 31, 2010 .................. $ 13,863 $ 3,376 $(6,613) $ 10,626
The market value adjustments for 2008 represented unrealized holding losses, net of taxes. The market value
adjustments for 2010 represented unrealized holding gains, net of taxes. The reversal of market value adjustments
for 2009 and 2008 represented prior periods unrealized holding losses for investments where the decline in fair
value was deemed to be other than temporary in 2009 and 2008, and the resulting loss was recognized in the
consolidated statements of operations (see Note 2). The deferred loss for 2009 primarily represented the $10.5
million the Company paid upon settlement of the Forward Starting Interest Rate Swap Agreements, net of
amounts reclassified to interest expense (see Note 11). Foreign currency translation adjustments are not adjusted
for income taxes since they relate to indefinite investments in non-U.S. subsidiaries.
Dividends
During each of the quarters of 2010, 2009 and 2008, the Company’s Board of Directors declared a quarterly
cash dividend of $0.10 per common share.
Share Repurchases
For the year ended December 31, 2010, the Company repurchased 14.7 million shares of its common stock
at an average price of $51.04 per share for $750 million, including 4.5 million shares purchased in the first
quarter at an average price per share of $56.21 for $251 million under an accelerated share repurchase transaction
(“ASR”) with a bank.
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QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(dollars in thousands unless otherwise indicated)