Quest Diagnostics 2011 Annual Report Download - page 93

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8. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment at December 31, 2011 and 2010 consisted of the following:
2011 2010
Land . . .................................................................. $ 35,786 $ 35,786
Buildings and improvements.............................................. 372,195 369,507
Laboratory equipment, furniture and fixtures .............................. 1,203,821 1,207,049
Leasehold improvements . ................................................ 423,126 394,296
Computer software developed or obtained for internal use.................. 464,578 427,161
Construction-in-progress . . ................................................ 43,783 53,392
2,543,289 2,487,191
Less: accumulated depreciation and amortization........................... (1,743,518) (1,652,815)
Total . . .................................................................. $ 799,771 $ 834,376
9. GOODWILL AND INTANGIBLE ASSETS
The changes in goodwill for the years ended December 31, 2011 and 2010 were as follows:
2011 2010
Balance as of January 1 . . ................................................. $5,101,938 $5,083,944
Goodwill acquired during the year . ........................................ 701,087 —
Other purchase accounting adjustments ..................................... — 246
(Decrease) increase related to foreign currency translation ................... (7,260) 17,748
Balance as of December 31 ................................................ $5,795,765 $5,101,938
For the year ended December 31, 2011, goodwill acquired was principally associated with the Athena and
Celera acquisitions (see Note 4 for further details). Approximately 90% of the Company’s goodwill as of
December 31, 2011 and 2010 was associated with its clinical testing business.
Intangible assets at December 31, 2011 and 2010 consisted of the following:
Cost
Accumulated
Amortization Net Cost
Accumulated
Amortization Net
Weighted
Average
Amortization
Period December 31, 2011 December 31, 2010
Amortizing intangible assets:
Customer-related
intangibles ..... 19 years $ 630,671 $(193,131) $ 437,540 $ 603,203 $(161,345) $441,858
Non-compete
agreements..... 4 years 45,798 (14,633) 31,165 54,886 (52,134) 2,752
Technology ...... 14 years 165,113 (27,929) 137,184 51,830 (16,796) 35,034
Other ............ 8 years 146,613 (23,552) 123,061 24,065 (9,380) 14,685
Total . . ...... 16 years 988,195 (259,245) 728,950 733,984 (239,655) 494,329
Intangible assets not subject to
amortization:
Tradenames ...... 300,648 — 300,648 302,076 — 302,076
In-process
research and
development . . . 5,250 — 5,250 — — —
Other ............ 764 — 764 — — —
Total
intangible
assets ..... $1,294,857 $(259,245) $1,035,612 $1,036,060 $(239,655) $796,405
F-21
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(dollars in thousands unless otherwise indicated)