Quest Diagnostics 2011 Annual Report Download - page 112

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Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2011
Parent
Subsidiary
Guarantors
Non-
Guarantor
Subsidiaries Eliminations Consolidated
Net revenues ................................ $ 792,912 $6,235,212 $745,520 $(263,154) $7,510,490
Operating costs and expenses:
Cost of services........................... 494,167 3,632,887 268,279 — 4,395,333
Selling, general and administrative ......... 151,573 1,316,384 375,925 (29,567) 1,814,315
Amortization of intangible assets........... 1,036 59,583 6,413 — 67,032
Royalty (income) expense . . . .............. (413,584) 413,584 — — —
Other operating expense, net. .............. 235,797 1,166 1,799 — 238,762
Total operating costs and expenses . ..... 468,989 5,423,604 652,416 (29,567) 6,515,442
Operating income ........................... 323,923 811,608 93,104 (233,587) 995,048
Non-operating (expense) income, net ......... (168,821) (208,790) 5,208 233,587 (138,816)
Income from continuing operations before
taxes ..................................... 155,102 602,818 98,312 — 856,232
Income tax expense . . ....................... 88,185 235,920 24,895 — 349,000
Income from continuing operations ........... 66,917 366,898 73,417 — 507,232
Loss from discontinued operations, net of
taxes ..................................... — (1,582) — — (1,582)
Equity earnings from subsidiaries ............ 403,650 — — (403,650) —
Net income ................................. 470,567 365,316 73,417 (403,650) 505,650
Less: Net income attributable to
noncontrolling interests .................... — — 35,083 — 35,083
Net income attributable to Quest Diagnostics . $ 470,567 $ 365,316 $ 38,334 $(403,650) $ 470,567
Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2010
Parent
Subsidiary
Guarantors
Non-
Guarantor
Subsidiaries Eliminations Consolidated
Net revenues ................................ $ 841,637 $6,065,086 $744,798 $(282,596) $7,368,925
Operating costs and expenses:
Cost of services........................... 511,886 3,550,726 254,635 — 4,317,247
Selling, general and administrative ......... 111,530 1,245,050 380,861 (29,768) 1,707,673
Amortization of intangible assets........... 967 30,412 7,842 — 39,221
Royalty (income) expense . . . .............. (414,185) 414,185 — — —
Other operating expense, net. .............. 7,691 1,056 502 — 9,249
Total operating costs and expenses . ..... 217,889 5,241,429 643,840 (29,768) 6,073,390
Operating income ........................... 623,748 823,657 100,958 (252,828) 1,295,535
Non-operating (expense) income, net ......... (134,080) (232,908) 2,960 252,828 (111,200)
Income from continuing operations before
taxes ..................................... 489,668 590,749 103,918 — 1,184,335
Income tax expense . . ....................... 164,176 233,091 28,264 — 425,531
Income from continuing operations ........... 325,492 357,658 75,654 — 758,804
(Loss) income from discontinued operations,
net of taxes............................... — (16,713) 14,926 — (1,787)
Equity earnings from subsidiaries ............ 395,402 — — (395,402) —
Net income ................................. 720,894 340,945 90,580 (395,402) 757,017
Less: Net income attributable to
noncontrolling interests .................... — — 36,123 — 36,123
Net income attributable to Quest
Diagnostics ............................... $ 720,894 $ 340,945 $ 54,457 $(395,402) $ 720,894
F-40
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(dollars in thousands unless otherwise indicated)