Quest Diagnostics 2015 Annual Report Download - page 104

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QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED
(in millions unless otherwise indicated)
F- 29
Intangible assets at December 31, 2015 and 2014 consisted of the following:
Weighted
Average
Amort-
ization
Period
(Years)
December 31, 2015 December 31, 2014
Cost Accumulated
Amortization Net Cost Accumulated
Amortization Net
Amortizing intangible assets:
Customer-related
intangibles 19 $ 936 $ (296) $ 640 $ 929 $ (259) $ 670
Non-compete
agreements 6 6 (3) 3 43 (37) 6
Technology 16 93 (35) 58 118 (38) 80
Other 9 106 (59) 47 152 (82) 70
Total 17 1,141 (393) 748 1,242 (416) 826
Intangible assets not subject to amortization:
Tradenames 235 — 235 244 — 244
Other 1 — 1 1 — 1
Total intangible
assets $ 1,377 $ (393) $ 984 $ 1,487 $ (416) $ 1,071
For the year ended December 31, 2015, intangible assets with a net book value of $16 million (original cost of $48
million and accumulated amortization of $32 million), principally associated with Clinical Trials and non-core assets (see Note
6), were reclassified to assets held for sale. During the second quarter of 2015, a fully amortized contractual non-compete
agreement (original cost of $37 million and accumulated amortization of $37 million) that expired was written-off.
Additionally, the Company recognized impairment charges associated with intangible assets of $16 million associated with
Celera Products and winding down a subsidiary, which have been included in other operating expense (income), net for the year
ended December 31, 2015.
Amortization expense related to intangible assets was $81 million, $94 million and $79 million for the years ended
December 31, 2015, 2014 and 2013, respectively.
The estimated amortization expense related to amortizable intangible assets for each of the five succeeding fiscal years
and thereafter as of December 31, 2015 is as follows:
Year Ending December 31,
2016 $ 70
2017 66
2018 62
2019 62
2020 62
Thereafter 426
Total $ 748
QUEST DIAGNOSTICS 2015 ANNUAL REPORT ON FORM 10-K