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QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(dollars in thousands unless otherwise indicated)



Condensed Consolidating Statement of Operations

For the Year Ended December 31, 2001

 

Parent

Subsidiary
Guarantors

Non-
Guarantor
Subsidiaries

Eliminations

Consolidated

 

 

 

 

 

 

Net revenues.......................................................................

   $    596,909

   $ 2,862,536

   $    451,525

    $  (283,199)

   $ 3,627,771

Operating costs and expenses:

 

 

 

 

 

  Cost of services................................................................

         431,382

      1,610,902

         109,310

                     -

      2,151,594

  Selling, general and administrative................................

         159,439

         623,419

         250,420

          (14,598)

      1,018,680

  Amortization of goodwill and other intangible assets

             3,826

           41,696

                585

                     -

           46,107

  Royalty (income) expense...............................................

        (241,886)

         241,886

                    -

                     -

                     -

  Other operating (income) expense, net.........................

               (370)

                172

                  38

                     -

               (160)

    Total operating costs and expenses...........................

         352,391

      2,518,075

         360,353

          (14,598)

      3,216,221

Operating income...............................................................

         244,518

         344,461

           91,172

        (268,601)

         411,550

Non-operating expenses, net...........................................

          (88,375)

        (268,762)

          (26,425)

         268,601

        (114,961)

Income before taxes...........................................................

         156,143

           75,699

           64,747

                     -

         296,589

Income tax expense............................................................

           66,345

           42,645

           25,296

                     -

         134,286

Income before equity earnings........................................

           89,798

           33,054

           39,451

                     -

         162,303

Equity earnings from subsidiaries...................................

           72,505

                     -

                    -

          (72,505)

                     -

Net income..........................................................................

   $    162,303

   $      33,054

   $      39,451

   $     (72,505)

   $    162,303



Condensed Consolidating Statement of Cash Flows

For the Year Ended December 31, 2003

 

Parent

Subsidiary
Guarantors

Non-
Guarantor
Subsidiaries

Eliminations

Consolidated

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

Net income..........................................................................

   $    436,717

   $      99,808

   $      43,786

   $   (143,594)

   $    436,717

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

  Depreciation and amortization.......................................

           53,611

           91,501

             8,791

                     -

         153,903

  Provision for doubtful accounts...................................

             4,944

           64,835

         158,443

                     -

         228,222

  Other, net..........................................................................

          (78,968)

             2,463

           18,604

         143,594

           85,693

  Changes in operating assets and liabilities.................

           54,277

        (178,027)

        (117,986)

                     -

        (241,736)

Net cash provided by operating activities....................

         470,581

           80,580

         111,638

                     -

         662,799

Net cash used in investing activities.............................

        (271,820)

          (96,957)

          (17,342)

          (30,931)

        (417,050)

Net cash provided by (used in) financing activities

        (136,188)

           10,991

          (93,302)

           30,931

        (187,568)

Net change in cash and cash equivalents.....................

           62,573

            (5,386)

                994

                     -

           58,181

Cash and cash equivalents, beginning of year.............

           79,015

             7,377

           10,385

                     -

           96,777

Cash and cash equivalents, end of year........................

   $    141,588

   $        1,991

   $      11,379

   $                -

   $    154,958

 

 

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