Quest Diagnostics 2012 Annual Report Download - page 120

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F- 47
(g) Includes a pre-tax charge in “other operating (income) expense, net” in the first quarter of 2011 of $236 million, associated
with the settlement of the California Lawsuit (see Note 17). Also includes $13.3 million of pre-tax charges, principally
associated with workforce reductions. Of these costs, $9.0 million and $4.3 million were included in cost of services and
selling, general and administrative expenses, respectively. Results for the first quarter also includes $4.7 million of pre-tax
transaction costs, associated with the acquisitions of Athena and Celera (see Note 5). Of these costs, $2.3 million, primarily
related to professional and filing fees, was recorded in selling, general and administrative expenses and $2.4 million of
financing related costs were recorded in interest expense, net. In addition, management estimates that the impact of severe
weather during the first quarter adversely affected operating income by $18.5 million.
(h) On April 4, 2011, the Company completed the acquisition of Athena. On May 17, 2011, the Company completed the
acquisition of Celera (see Note 5).
(i) Includes pre-tax transaction costs of $15.1 million associated with the acquisitions of Athena and Celera (see Note 5). Of
these costs, $14.3 million, primarily related to professional fees, were recorded in selling, general and administrative
expenses and $0.8 million of financing related costs were included in interest expense, net. In addition, results for the
second quarter include $6.0 million of pre-tax integration charges, primarily associated with workforce reductions, related
to the acqusitions of Athena and Celera.
(j) Includes pre-tax charges of $27.3 million, principally associated with workforce reductions. Of these costs, $15.9 million
and $11.4 million were included in cost of services and selling, general and administrative expenses, respectively. Also
includes discrete income tax benefits of $7.9 million.
(k) Includes restructuring and integration charges of $5.5 million of which $8.7 million is principally associated with
professional fees incurred in conjunction with further restructuring and integrating the Company. The remainder is
primarily associated with the reversal of certain previously established reserves for restructuring activities, principally
associated with workforce reductions. Of the total $5.5 million, $8.2 million was included in selling, general and
administrative expenses, with the remaining $2.7 million representing a reduction in cost of services. Also includes pre-tax
charges of $5.6 million, principally representing severance and other separation benefits as well as accelerated vesting of
certain equity awards in connection with the succession of the Company's prior CEO. In addition, results for the fourth
quarter also include discrete income tax benefits of $12.6 million.
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
Quarterly Operating Results (unaudited)
(in thousands, except per share data)