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QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED(dollars in thousands unless otherwise indicated)
9. GOODWILL
AND INTANGIBLE ASSETS
Goodwill at December 31, 2003 and 2002 consisted
of the following:
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 |
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Goodwill................................................................................................. |
$ 2,706,928 |
$ 1,976,903 |
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Less: accumulated
amortization......................................................... |
(188,053) |
(188,053) |
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Goodwill,
net..................................................................................... |
$ 2,518,875 |
$ 1,788,850 |
The changes in the gross carrying amount of
goodwill for the years ended December 31, 2003 and 2002 are as follows:
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|
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Balance as of January 1....................................................................... |
$ 1,976,903 |
$ 1,539,176 |
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Goodwill acquired during
the year..................................................... |
730,025 |
437,727 |
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Balance as of December 31.................................................................. |
$ 2,706,928 |
$ 1,976,903 |
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|
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Intangible assets at
December 31, 2003 and 2002 consisted of the following:
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Non-compete
agreements.. |
5 years |
$44,942 |
|
$6,995 |
$44,482 |
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|
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Customer lists....................... |
15
years |
42,225 |
(35,568) |
6,657 |
41,301 |
(33,751) |
7,550 |
|
Other...................................... |
10
years |
5,895 |
(2,569) |
3,326 |
4,580 |
(2,261) |
2,319 |
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Total................................... |
10
years |
$93,062 |
$(76,084) |
$16,978 |
$90,363 |
$(68,280) |
$22,083 |
Amortization expense related to intangible
assets was $8,201, $8,373 and $7,715 for the years ended December 31, 2003,
2002 and 2001, respectively.
The estimated amortization expense related to
other intangible assets for each of the five succeeding fiscal years and
thereafter as of December 31, 2003 is as follows:
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2004............................................................................................................ |
|
|
2005............................................................................................................ |
3,048 |
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2006............................................................................................................ |
1,819 |
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2007............................................................................................................ |
1,035 |
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2008............................................................................................................ |
861 |
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Thereafter.................................................................................................. |
3,657 |
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Total....................................................................................................... |
$16,978 |
10. ACCOUNTS
PAYABLE AND ACCRUED EXPENSES
Accounts payable and accrued expenses at
December 31, 2003 and 2002 consisted of the following:
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Accrued wages and benefits.......................................................................................... |
$255,340 |
$250,226 |
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Accrued expenses............................................................................................................ |
221,783 |
208,037 |
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Trade accounts payable.................................................................................................. |
118,731 |
111,982 |
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Income taxes payable....................................................................................................... |
29,073 |
20,268 |
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Accrued restructuring and integration costs............................................................... |
12,493 |
10,791 |
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Accrued settlement reserves.......................................................................................... |
12,430 |
8,641 |
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Total................................................................................................................................ |
$649,850 |
$609,945 |
11. DEBT
Long-term debt at December 31, 2003 and 2002
consisted of the following:
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Term loan due June 2007................................................................................................
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$ 304,921
|
$ -
|
|
6 ¾% Senior Notes due July 2006..................................................................................
|
274,219
|
273,907
|
|
7 ½% Senior Notes due July 2011..................................................................................
|
274,171
|
274,060
|
|
1 ¾% Contingent Convertible Debentures due November
2021...............................
|
247,760
|
247,635
|
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Other..................................................................................................................................
|
1,586
|
26,937
|
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Total...............................................................................................................................
|
1,102,657
|
822,539
|
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Less: current portion.......................................................................................................
|
73,950
|
26,032
|
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Total
long-term debt....................................................................................................
|
$1,028,707 |
$796,507 |
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