Quest Diagnostics 2013 Annual Report Download - page 37

Download and view the complete annual report

Please find page 37 of the 2013 Quest Diagnostics annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 131

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131

33
(u) Inability to hire and retain qualified personnel or the loss of the services of one or more of our key senior
management personnel.
(v) Terrorist and other criminal activities, hurricanes, earthquakes or other natural disasters, and health pandemics,
which could affect our customers, transportation or systems, or our facilities, and for which insurance may not
adequately reimburse us.
(w) Difficulties and uncertainties in the discovery, development, regulatory environment and/or marketing of new
services or tests or new uses of existing tests.
(x) Failure to comply with the requirements of our Corporate Integrity Agreement that could subject us to suspension
or termination from participation in federal healthcare programs and substantial monetary penalties.
(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) Increased patient financial responsibility for services.
(cc) Difficulty in implementing, or lack of success with, our new strategic plan.
(dd) 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, distribution centers, patient service centers and a clinical trials
testing laboratory at locations throughout the United States. In addition, we maintain offices, patient service centers and clinical
laboratories in locations outside the United States, including in Puerto Rico, Mexico, the United Kingdom, India and Ireland.
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
Lenexa, Kansas (laboratory) Owned
Item 3. Legal Proceedings
See Note 18 to the Consolidated Financial Statements (Part II, Item 8 of this Report) for information regarding legal
proceedings in which we are involved.