Quest Diagnostics 2012 Annual Report Download - page 36

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33
(y) Failure to adapt to changes in the healthcare system and healthcare delivery stemming from the 2010 federal
healthcare reform legislation.
(z) Results and consequences of governmental inquiries.
(aa) Trends in utilization of the healthcare system.
(bb) Difficulty in implementing, or lack of success with, our new strategic plan.
(cc) Inability to adapt to diverse and dynamic non-U.S. markets.
Item 1B. Unresolved Staff Comments
There are no unresolved SEC comments that require disclosure.
Item 2. Properties
Our executive offices are located in Madison, New Jersey. We maintain clinical testing laboratories throughout the
continental United States; in several instances a joint venture of which we are a partner maintains the laboratory. We also
maintain offices, data centers, billing centers, call centers, an assembly center, distribution centers, patient service centers and a
clinical trials testing laboratory at locations throughout the United States. In addition, we maintain offices, manufacturing
facilities, patient service centers and clinical laboratories in locations outside the United States, including in Sweden, Puerto
Rico, Mexico, the United Kingdom, India, Ireland and Australia. Our properties that are not owned are leased on terms and for
durations that are reflective of commercial standards in the communities where these properties are located. We believe that, in
general, our facilities are suitable and adequate for our current and anticipated future levels of operation and are adequately
maintained. We believe that if we were unable to renew a lease on any of our facilities, we could find alternative space at
competitive market rates and relocate our operations to such new location without material disruption to our business. Several
of our principal facilities are highlighted below.
Location Leased or Owned
Sacramento, California (laboratory) Leased
West Hills, California (laboratory) Leased
San Juan Capistrano, California (laboratory) Owned
Tampa, Florida (laboratory) Owned
Atlanta, Georgia (laboratory) Owned
Chicago, Illinois (2) (laboratories) One owned, one leased
Baltimore, Maryland (laboratory) Owned
Teterboro, New Jersey (laboratory) Owned
Philadelphia, Pennsylvania (laboratory) Leased
Norristown, Pennsylvania (offices) Leased
Dallas, Texas (laboratory) Leased
Chantilly, Virginia (laboratory) Leased
Item 3. Legal Proceedings
See Note 17 to the Consolidated Financial Statements (Part II, Item 8 of this Report) for information regarding legal
proceedings in which we are involved.
Item 4. Mine Safety Disclosures
Not applicable.