Quest Diagnostics 2012 Annual Report Download - page 95

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F- 22
based on rates currently offered to the Company with identical terms and maturities, using quoted active market prices and
yields, taking into account the underlying terms of the debt instruments.
The following table provides a summary of the recognized assets and liabilities that are measured at fair value on a
non-recurring basis:
Basis of Fair Value Measurements
Quoted
Prices in
Active
Markets for
Identical
Assets /
Liabilities
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs Total Loss
December 31, 2012 Level 1 Level 2 Level 3
Net assets held for sale $ 311,734 $ — $ 311,734 $ — $ 77,951
In connection with the Company's agreement to sell HemoCue and upon classification of this business as discontinued
operations, net assets held for sale with a carrying amount of $390 million were written down to their fair value of $317
million, less estimated costs to sell of $5 million (or $312 million), resulting in a loss of $78 million. This charge is included in
income (loss) from discontinued operations, net of taxes. Net assets held for sale are classified within Level 2 and have been
measured based upon the estimated proceeds associated with the agreement to sell HemoCue.
7. TAXES ON INCOME
The Company's pre-tax income from continuing operations consisted of $1.05 billion, $836 million and $1.16 billion
from U.S. operations and $17.9 million, $12.5 million and $12.8 million from foreign operations for the years ended
December 31, 2012, 2011 and 2010, respectively.
The components of income tax expense for 2012, 2011 and 2010 were as follows:
2012 2011 2010
Current:
Federal $ 332,053 $ 265,865 $ 349,755
State and local 60,708 60,273 93,229
Foreign 2,649 2,666 4,283
Deferred:
Federal 13,298 37,245 (6,828)
State and local (6,152)(11,073)(10,782)
Foreign (659)(274) 470
Total $ 401,897 $ 354,702 $ 430,127
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED
(dollars in thousands unless otherwise indicated)