Quest Diagnostics 2015 Annual Report Download - page 103

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QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED
(in millions unless otherwise indicated)
F- 28
Supplemental continuing operations data for the statement of operations for the years ended December 31, 2015, 2014
and 2013 was as follows:
2015 2014 2013
Depreciation expense $ 223 $ 220 $ 203
Interest expense (154)(167)(162)
Interest income 1 3 3
Interest expense, net $ (153) $ (164) $ (159)
10. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment at December 31, 2015 and 2014 consisted of the following:
2015 2014
Land $ 28 $ 28
Buildings and improvements 370 367
Laboratory equipment, furniture and fixtures 1,407 1,386
Leasehold improvements 535 538
Computer software developed or obtained for internal use 756 675
Construction-in-progress 136 132
3,232 3,126
Less: Accumulated depreciation and amortization (2,307)(2,193)
Total $ 925 $ 933
11. GOODWILL AND INTANGIBLE ASSETS
The changes in goodwill for the years ended December 31, 2015 and 2014 were as follows:
2015 2014
Balance, beginning of year $ 6,032 $ 5,649
Goodwill acquired during the year 33 383
Reclassification to assets held for sale (160) —
Balance, end of year $ 5,905 $ 6,032
Principally all of the Company’s goodwill as of December 31, 2015 and 2014 was associated with its DIS business.
For the year ended December 31, 2015, goodwill acquired during the period was principally associated with the
MemorialCare and Superior Mobile Medics acquisitions (see Note 5), of which $32 million is deductible for tax purposes. The
reclassification to assets held for sale was principally associated with Clinical Trials and non-core assets (see Note 6).
Acquisitions during the year also resulted in $26 million of intangible assets, principally comprised of customer-related
intangibles and tradenames.
For the year ended December 31, 2014, goodwill acquired was principally associated with the Solstas, Summit Health
and Steward acquisitions (see Note 5), of which $90 million is deductible for tax purposes. Acquisitions during the year also
resulted in $270 million of intangible assets, principally comprised of customer-related intangibles and tradenames.
QUEST DIAGNOSTICS 2015 ANNUAL REPORT ON FORM 10-K