Quest Diagnostics 2011 Annual Report Download - page 76

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QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2011, 2010 AND 2009
(in thousands)
2011 2010 2009
Cash flows from operating activities:
Net income . . . ....................................................... $ 505,650 $ 757,017 $ 766,222
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization . . . ..................................... 281,102 253,964 256,687
Provision for doubtful accounts . . ..................................... 279,592 291,737 320,974
Deferred income tax provision (benefit) . . . ............................ 28,624 (18,878) 83,120
Stock-based compensation expense .................................... 71,906 53,927 75,059
Excess tax benefits from stock-based compensation arrangements ....... (4,466) (884) (5,540)
Provision for special charge .......................................... 236,000 — —
Other, net ........................................................... 8,627 22,967 29,699
Changes in operating assets and liabilities:
Accounts receivable ............................................. (306,652) (309,932) (314,102)
Accounts payable and accrued expenses .......................... (17,636) 18,235 56,533
Settlement of special charge ..................................... (241,000) — (314,386)
Income taxes payable ............................................ 39,062 33,732 21,190
Other assets and liabilities, net ................................... 14,665 16,162 21,962
Net cash provided by operating activities............................ 895,474 1,118,047 997,418
Cash flows from investing activities:
Business acquisitions, net of cash acquired ............................ (1,298,624) — (18,295)
Sale of securities acquired in business acquisition. . . ................... 213,541 ——
Capital expenditures.................................................. (161,556) (205,400) (166,928)
Decrease (increase) in investments and other assets . ................... 3,204 (11,110) (10,681)
Net cash used in investing activities ................................. (1,243,435) (216,510) (195,904)
Cash flows from financing activities:
Proceeds from borrowings ............................................ 2,689,406 — 1,245,525
Repayments of debt .................................................. (1,710,308) (169,491) (1,218,538)
Purchases of treasury stock ........................................... (934,994) (750,000) (499,991)
Exercise of stock options ............................................. 136,818 48,535 87,120
Excess tax benefits from stock-based compensation arrangements ....... 4,466 884 5,540
Dividends paid....................................................... (64,662) (71,321) (74,748)
Distributions to noncontrolling interests . . . ............................ (35,671) (36,739) (35,524)
Other financing activities ............................................. (21,509) (8,360) (30,588)
Net cash provided by (used in) financing activities .................. 63,546 (986,492) (521,204)
Net change in cash and cash equivalents ............................ (284,415) (84,955) 280,310
Cash and cash equivalents, beginning of year ....................... 449,301 534,256 253,946
Cash and cash equivalents, end of year ............................. $ 164,886 $ 449,301 $ 534,256
The accompanying notes are an integral part of these statements.
F-4