Quest Diagnostics 2011 Annual Report Download - page 113

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Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2009
Parent
Subsidiary
Guarantors
Non-
Guarantor
Subsidiaries Eliminations Consolidated
Net revenues ................................ $ 877,940 $6,140,346 $767,481 $(330,524) $7,455,243
Operating costs and expenses:
Cost of services........................... 518,958 3,550,414 252,103 — 4,321,475
Selling, general and administrative ......... 171,724 1,232,366 373,542 (30,014) 1,747,618
Amortization of intangible assets........... 72 30,218 6,772 — 37,062
Royalty (income) expense . . . .............. (405,393) 405,393 — — —
Other operating (income) expense, net ..... (13,017) (521) 3,515 — (10,023)
Total operating costs and expenses . ..... 272,344 5,217,870 635,932 (30,014) 6,096,132
Operating income ........................... 605,596 922,476 131,549 (300,510) 1,359,111
Non-operating (expense) income, net ......... (172,522) (274,924) 15,757 300,510 (131,179)
Income from continuing operations before
taxes ..................................... 433,074 647,552 147,306 — 1,227,932
Income tax expense . . ....................... 163,846 252,220 44,408 — 460,474
Income from continuing operations ........... 269,228 395,332 102,898 — 767,458
Loss from discontinued operations, net of
taxes ..................................... — (1,236) — — (1,236)
Equity earnings from subsidiaries ............ 459,883 — — (459,883) —
Net income ................................. 729,111 394,096 102,898 (459,883) 766,222
Less: Net income attributable to
noncontrolling interests .................... — — 37,111 — 37,111
Net income attributable to Quest
Diagnostics ............................... $ 729,111 $ 394,096 $ 65,787 $(459,883) $ 729,111
Condensed Consolidating Statement of Cash Flows
For the Year Ended December 31, 2011
Parent
Subsidiary
Guarantors
Non-
Guarantor
Subsidiaries Eliminations Consolidated
Cash flows from operating activities:
Net income ............................... $ 470,567 $ 365,316 $ 73,417 $(403,650) $ 505,650
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization............ 45,120 219,476 16,506 — 281,102
Provision for doubtful accounts . . . ....... 5,306 57,924 216,362 — 279,592
Provision for special charge.............. 236,000 — — — 236,000
Other, net............................... (390,503) 87,699 3,845 403,650 104,691
Changes in operating assets and
liabilities . . . .......................... 34,580 (323,505) (222,636) — (511,561)
Net cash provided by operating activities . . . 401,070 406,910 87,494 — 895,474
Net cash used in investing activities . ....... (1,205,686) (225,503) (13,504) 201,258 (1,243,435)
Net cash provided by (used in) financing
activities ................................ 483,853 (138,282) (80,767) (201,258) 63,546
Net change in cash and cash equivalents.... (320,763) 43,125 (6,777) — (284,415)
Cash and cash equivalents, beginning
of year ................................. 392,525 928 55,848 — 449,301
Cash and cash equivalents, end of year ..... $ 71,762 $ 44,053 $ 49,071 $ — $ 164,886
F-41
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(dollars in thousands unless otherwise indicated)