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QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED(dollars in thousands unless otherwise indicated)
Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2001
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Net revenues....................................................................... |
$ 596,909 |
$ 2,862,536 |
$ 451,525 |
$ (283,199) |
$ 3,627,771 |
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Operating costs and expenses: |
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Cost
of services................................................................ |
431,382 |
1,610,902 |
109,310 |
- |
2,151,594 |
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Selling,
general and administrative................................ |
159,439 |
623,419 |
250,420 |
(14,598) |
1,018,680 |
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Amortization of goodwill and other intangible assets |
3,826 |
41,696 |
585 |
- |
46,107 |
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Royalty
(income) expense............................................... |
(241,886) |
241,886 |
- |
- |
- |
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Other
operating (income) expense, net......................... |
(370) |
172 |
38 |
- |
(160) |
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Total
operating costs and expenses........................... |
352,391 |
2,518,075 |
360,353 |
(14,598) |
3,216,221 |
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Operating income............................................................... |
244,518 |
344,461 |
91,172 |
(268,601) |
411,550 |
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Non-operating expenses, net........................................... |
(88,375) |
(268,762) |
(26,425) |
268,601 |
(114,961) |
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Income before taxes........................................................... |
156,143 |
75,699 |
64,747 |
- |
296,589 |
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Income tax expense............................................................ |
66,345 |
42,645 |
25,296 |
- |
134,286 |
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Income before equity earnings........................................ |
89,798 |
33,054 |
39,451 |
- |
162,303 |
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Equity earnings from subsidiaries................................... |
72,505 |
- |
- |
(72,505) |
- |
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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
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Cash flows from operating activities: |
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Net income.......................................................................... |
$ 436,717 |
$ 99,808 |
$ 43,786 |
$ (143,594) |
$ 436,717 |
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Adjustments to reconcile net income to
net cash provided by operating activities: |
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Depreciation
and amortization....................................... |
53,611 |
91,501 |
8,791 |
- |
153,903 |
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Provision
for doubtful accounts................................... |
4,944 |
64,835 |
158,443 |
- |
228,222 |
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Other,
net.......................................................................... |
(78,968) |
2,463 |
18,604 |
143,594 |
85,693 |
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Changes
in operating assets and liabilities................. |
54,277 |
(178,027) |
(117,986) |
- |
(241,736) |
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Net cash provided by operating
activities.................... |
470,581 |
80,580 |
111,638 |
- |
662,799 |
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Net cash used in investing activities............................. |
(271,820) |
(96,957) |
(17,342) |
(30,931) |
(417,050) |
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Net cash provided by (used in)
financing activities |
(136,188) |
10,991 |
(93,302) |
30,931 |
(187,568) |
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Net change in cash and cash equivalents..................... |
62,573 |
(5,386) |
994 |
- |
58,181 |
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Cash and cash equivalents, beginning
of year............. |
79,015 |
7,377 |
10,385 |
- |
96,777 |
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Cash and cash equivalents, end of year........................ |
$ 141,588 |
$ 1,991 |
$ 11,379 |
$ - |
$ 154,958 |
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