Quest Diagnostics 2013 Annual Report Download - page 71

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Requirements and Capital Resources
We estimate that we will invest approximately $300 million during 2014 for capital expenditures to support and
expand our existing operations, principally related to investments in information technology, laboratory equipment and
facilities, including specific initiatives associated with our Invigorate program.
As of December 31, 2013, $1.3 billion of borrowing capacity was available under our existing credit facilities,
consisting of $525 million available under our secured receivables credit facility and $750 million available under our senior
unsecured revolving credit facility.
We believe the banks participating in our various credit facilities are predominantly highly rated banks, and that the
borrowing capacity under the credit facilities described above is currently available to us. Should one or several banks no
longer participate in either of our credit facilities, we would not expect it to impact our ability to fund operations. We expect
that we will be able to replace our existing secured receivables credit facility with alternative arrangements prior to its
expiration.
We believe that cash and cash equivalents on-hand and cash from operations, together with our borrowing capacity
under our credit facilities, will provide sufficient financial flexibility to fund seasonal working capital requirements, capital
expenditures, debt service requirements and other obligations, cash dividends on common shares, share repurchases and
additional growth opportunities for the foreseeable future. We believe that our credit profile should provide us with access to
additional financing, if necessary, to fund growth opportunities that cannot be funded from existing sources.
Inflation
We believe that inflation generally does not have a material adverse effect on our results of operations or financial
condition.
Impact of New Accounting Standards
In March 2013, the FASB issued a new accounting standard on foreign currency matters that clarifies the guidance of
a parent company's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of
assets within a foreign entity or of an investment in a foreign entity. In July 2013, the FASB issued a new accounting standard
to permit the use of the Fed Funds Effective Swap Rate to be used as an alternative benchmark interest rate for hedge
accounting purposes. In July 2013, the FASB issued a new accounting standard that requires a liability related to an
unrecognized tax benefit to be presented as a reduction of a deferred tax asset for a net operating loss carryforward, a similar
tax loss or a tax credit carryforward, if certain criteria are met. The impact of these accounting standards are discussed in Note
2 to the consolidated financial statements.