Quest Diagnostics 2011 Annual Report Download - page 109

Celera’s operations are included in the Company’s clinical laboratory testing business, with the remainder in other
operating segments.
On April 19, 2006, the Company decided to discontinue NID’s operations and results of operations for NID
have been classified as discontinued operations for all years presented (see Note 17).
At December 31, 2011, substantially all of the Company’s services are provided within the United States,
and substantially all of the Company’s assets are located within the United States.
The following table is a summary of segment information for the years ended December 31, 2011, 2010 and
2009. Segment asset information is not presented since it is not used by the chief operating decision maker at the
operating segment level. Operating earnings (loss) of each segment represents net revenues less directly
identifiable expenses to arrive at operating income for the segment. General management and administrative
corporate expenses, including amortization of intangible assets and the charge to earnings in the first quarter of
2011 of $236 million related to the settlement of the California Lawsuit (see Note 16), are included in general
corporate expenses below. The accounting policies of the segments are the same as those of the Company as set
forth in Note 2.
2011 2010 2009
Net revenues:
Clinical testing business .......................... $6,814,456 $6,738,604 $6,824,149
All other operating segments...................... 696,034 630,321 631,094
Total net revenues................................ $7,510,490 $7,368,925 $7,455,243
Operating earnings (loss):
Clinical testing business .......................... $1,403,797 $1,424,173 $1,491,131
All other operating segments...................... 73,356 44,314 59,862
General corporate expenses ....................... (482,105) (172,952) (191,882)
Total operating income ........................... 995,048 1,295,535 1,359,111
Non-operating expenses, net ...................... (138,816) (111,200) (131,179)
Income from continuing operations before taxes . 856,232 1,184,335 1,227,932
Income tax expense.............................. 349,000 425,531 460,474
Income from continuing operations .............. 507,232 758,804 767,458
Loss from discontinued operations, net of taxes. . (1,582) (1,787) (1,236)
Net income ...................................... 505,650 757,017 766,222
Less: Net income attributable to noncontrolling
interests....................................... 35,083 36,123 37,111
Net income attributable to Quest Diagnostics .... $ 470,567 $ 720,894 $ 729,111
2011 2010 2009
Depreciation and amortization:
Clinical testing business ........................ $188,820 $194,655 $200,905
All other operating segments . .................. 21,356 17,457 17,337
General corporate . . . ........................... 70,926 41,852 38,445
Total depreciation and amortization ............. $281,102 $253,964 $256,687
Capital expenditures:
Clinical testing business ........................ $132,024 $166,445 $136,248
All other operating segments . .................. 22,706 29,803 23,592
General corporate . . . ........................... 6,826 9,152 7,088
Total capital expenditures ...................... $161,556 $205,400 $166,928
19. SUMMARIZED FINANCIAL INFORMATION
The Company’s Floating Rate Senior Notes due 2014, Senior Notes due 2015, Senior Notes due 2016,
Senior Notes due 2017, Senior Notes due 2020, Senior Notes due 2021, Senior Notes due 2037 and Senior Notes
F-37
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(dollars in thousands unless otherwise indicated)