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QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2003, 2002 AND 2001(in thousands)
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2003 |
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2002 |
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2001 |
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Cash
flows from operating activities: |
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Net income................................................................................................... |
$ 436,717 |
$ 322,154 |
$ 162,303 |
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Adjustments to reconcile net income to net cash
provided by operating
activities: |
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Depreciation and amortization.................................................................. |
153,903 |
131,391 |
147,727 |
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Provision for doubtful accounts.............................................................. |
228,222 |
217,360 |
218,271 |
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Loss on debt extinguishment................................................................... |
- |
- |
42,012 |
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Deferred income tax provision (benefit).................................................. |
33,853 |
90,401 |
(560) |
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Minority share of income.......................................................................... |
17,630 |
14,874 |
9,953 |
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Stock compensation expense................................................................... |
5,297 |
9,028 |
20,672 |
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Tax benefits associated with stock-based compensation
plans.............. |
30,496 |
44,507 |
71,917 |
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Other, net..................................................................................................... |
(1,583) |
(813) |
1,034 |
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Changes in operating assets and liabilities: |
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Accounts
receivable.............................................................................. |
(254,865) |
(168,185) |
(230,131) |
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Accounts
payable and accrued expenses.......................................... |
(6,795) |
(12,658) |
12,788 |
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Integration,
settlement and other special charges............................ |
(18,942) |
(29,668) |
(48,664) |
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Income
taxes payable............................................................................. |
26,493 |
(3,912) |
23,131 |
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Other
assets and liabilities, net............................................................ |
12,373 |
(18,108) |
35,350 |
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Net
cash provided by operating activities.............................................. |
662,799 |
596,371 |
465,803 |
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Cash
flows from investing activities: |
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Business acquisitions, net of cash acquired.......................................... |
(237,610) |
(333,512) |
(152,864) |
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Capital expenditures................................................................................... |
(174,641) |
(155,196) |
(148,986) |
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Increase in investments and other assets.............................................. |
(13,842) |
(9,728) |
(20,428) |
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Proceeds from disposition of assets....................................................... |
9,043 |
10,564 |
22,673 |
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Collection of note receivable.................................................................... |
- |
10,660 |
2,989 |
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Net
cash used in investing activities...................................................... |
(417,050) |
(477,212) |
(296,616) |
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Cash
flows from financing activities: |
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Proceeds from borrowings........................................................................ |
450,000 |
475,237 |
969,939 |
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Repayments of debt................................................................................... |
(391,718) |
(634,278) |
(1,175,489) |
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Purchases of treasury stock..................................................................... |
(257,548) |
- |
- |
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Exercise of stock options.......................................................................... |
29,887 |
27,034 |
25,631 |
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Distributions to minority partners........................................................... |
(14,253) |
(12,192) |
(8,718) |
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Financing costs paid.................................................................................. |
(4,227) |
(129) |
(28,459) |
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Redemption of preferred stock................................................................. |
- |
- |
(1,000) |
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Preferred dividends paid........................................................................... |
- |
- |
(236) |
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Other............................................................................................................. |
291 |
(386) |
- |
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Net
cash used in financing activities..................................................... |
(187,568) |
(144,714) |
(218,332) |
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Net
change in cash and cash equivalents.............................................. |
58,181 |
(25,555) |
(49,145) |
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Cash
and cash equivalents, beginning of year...................................... |
96,777 |
122,332 |
171,477 |
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Cash
and cash equivalents, end of year.................................................. |
$
154,958 |
$
96,777 |
$
122,332 |
The accompanying notes are an integral part of these statements. |
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