Quest Diagnostics 2012 Annual Report Download - page 90

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F- 17
The acquisition of Athena was accounted for under the acquisition method of accounting. As such, the assets acquired
and liabilities assumed are recorded based on their estimated fair values as of the closing date. The consolidated financial
statements include the results of operations of Athena subsequent to the closing of the acquisition which are not material to the
Company's consolidated results of operations.
The following table summarizes the consideration paid for Athena and the amounts of assets acquired and liabilities
assumed at the acquisition date:
Fair Values
as of
April 4, 2011
Cash and cash equivalents $—
Accounts receivable 17,853
Other current assets 13,427
Property, plant and equipment 3,038
Intangible assets 220,040
Goodwill 563,974
Other assets 135
Total assets acquired 818,467
Current liabilities 8,511
Non-current deferred income taxes 69,956
Total liabilities assumed 78,467
Net assets acquired $ 740,000
The acquired amortizable intangible assets are being amortized over their estimated useful lives as follows:
Fair Values
Weighted
Average
Useful Life
Technology $ 92,580 16 years
Non-compete agreement 37,000 4 years
Tradename 34,520 10 years
Customer relationships 21,420 20 years
Informatics database 34,520 10 years
$ 220,040
Of the amount allocated to goodwill and intangible assets, approximately $42 million is deductible for tax purposes.
All of the goodwill acquired in connection with the Athena acquisition has been allocated to the Company's DIS business.
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED
(dollars in thousands unless otherwise indicated)