SUMMARIZED FINANCIAL INFORMATION (Tables)

3 Months Ended

6 Months Ended

12 Months Ended

Jun. 30, 2011

Jun. 30, 2010

Jun. 30, 2011

Jun. 30, 2010

Dec. 31, 2010

Summarized Financial Information Abstract

Condensed Consolidating Statement of Operations

Condensed Consolidating Statement of Operations Three Months Ended June 30, 2011
	Parent	Subsidiary Guarantors	Non- Guarantor Subsidiaries	Eliminations	Consolidated
Net revenues	$    203,321	$ 1,577,305	$    189,592	$     (67,017)	$ 1,903,201
Operating costs and expenses:
Cost of services	121,342	909,681	73,371	-	1,104,394
Selling, general and administrative	35,526	342,577	92,150	(7,464)	462,789
Amortization of intangible assets	543	16,048	2,001	-	18,592
Royalty (income) expense	(104,418)	104,418	-	-	-
Other operating expense (income), net.	28	585	(41)	-	572
Total operating costs and expenses	53,021	1,373,309	167,481	(7,464)	1,586,347
Operating income	150,300	203,996	22,111	(59,553)	316,854
Non-operating (expense) income, net	(45,706)	(53,301)	396	59,553	(39,058)
Income from continuing operations before taxes	104,594	150,695	22,507	-	277,796
Income tax expense	40,382	59,578	5,802	-	105,762
Income from continuing operations	64,212	91,117	16,705	-	172,034
Loss from discontinued operations, net of taxes	-	(507)	-	-	(507)
Equity earnings from subsidiaries	98,931	-	-	(98,931)	-
Net income	163,143	90,610	16,705	(98,931)	171,527
Less: Net income attributable to noncontrolling interests	-	-	8,384	-	8,384
Net income attributable to Quest Diagnostics	$    163,143	$      90,610	$        8,321	$     (98,931)	$    163,143

Condensed Consolidating Statement of Operations Three Months Ended June 30, 2010
	Parent	Subsidiary Guarantors	Non- Guarantor Subsidiaries	Eliminations	Consolidated
Net revenues	$    218,419	$ 1,540,722	$    181,373	$     (65,787)	$ 1,874,727
Operating costs and expenses:
Cost of services	129,236	886,783	62,952	-	1,078,971
Selling, general and administrative	21,273	312,465	93,236	(7,562)	419,412
Amortization of intangible assets	18	7,601	1,651	-	9,270
Royalty (income) expense	(105,316)	105,316	-	-	-
Other operating (income) expense, net.	(1,346)	233	2,293	-	1,180
Total operating costs and expenses	43,865	1,312,398	160,132	(7,562)	1,508,833
Operating income	174,554	228,324	21,241	(58,225)	365,894
Non-operating (expense) income, net	(39,974)	(54,940)	588	58,225	(36,101)
Income from continuing operations before taxes	134,580	173,384	21,829	-	329,793
Income tax expense	52,577	67,331	5,743	-	125,651
Income from continuing operations	82,003	106,053	16,086	-	204,142
Loss from discontinued operations, net of taxes	-	(266)	-	-	(266)
Equity earnings from subsidiaries	112,612	-	-	(112,612)	-
Net income	194,615	105,787	16,086	(112,612)	203,876
Less: Net income attributable to noncontrolling interests	-	-	9,261	-	9,261
Net income attributable to Quest Diagnostics	$    194,615	$    105,787	$        6,825	$   (112,612)	$    194,615

Condensed Consolidating Statement of Operations Six Months Ended June 30, 2011
	Parent	Subsidiary Guarantors	Non- Guarantor Subsidiaries	Eliminations	Consolidated
Net revenues	$    401,810	$ 3,080,649	$    380,879	$   (138,560)	$ 3,724,778
Operating costs and expenses:
Cost of services	244,933	1,817,071	139,388	-	2,201,392
Selling, general and administrative	73,962	654,306	197,203	(14,824)	910,647
Amortization of intangible assets	706	24,197	3,538	-	28,441
Royalty (income) expense	(206,774)	206,774	-	-	-
Other operating expense (income), net.	236,306	371	(193)	-	236,484
Total operating costs and expenses	349,133	2,702,719	339,936	(14,824)	3,376,964
Operating income	52,677	377,930	40,943	(123,736)	347,814
Non-operating (expense) income, net	(84,126)	(110,455)	3,765	123,736	(67,080)
Income (loss) from continuing operations before taxes	(31,449)	267,475	44,708	-	280,734
Income tax expense	36,768	105,743	12,477	-	154,988
Income (loss) from continuing operations	(68,217)	161,732	32,231	-	125,746
Loss from discontinued operations, net of taxes	-	(881)	-	-	(881)
Equity earnings from subsidiaries	177,499	-	-	(177,499)	-
Net income	109,282	160,851	32,231	(177,499)	124,865
Less: Net income attributable to noncontrolling interests	-	-	15,583	-	15,583
Net income attributable to Quest Diagnostics	$    109,282	$    160,851	$      16,648	$   (177,499)	$    109,282

Condensed Consolidating Statement of Operations Six Months Ended June 30, 2010
	Parent	Subsidiary Guarantors	Non- Guarantor Subsidiaries	Eliminations	Consolidated
Net revenues	$    429,640	$ 3,023,312	$    373,709	$   (146,431)	$ 3,680,230
Operating costs and expenses:
Cost of services	251,823	1,766,570	126,951	-	2,145,344
Selling, general and administrative	44,351	626,583	194,104	(14,893)	850,145
Amortization of intangible assets	35	15,232	3,362	-	18,629
Royalty (income) expense	(206,808)	206,808	-	-	-
Other operating (income) expense, net.	(321)	466	1,511	-	1,656
Total operating costs and expenses	89,080	2,615,659	325,928	(14,893)	3,015,774
Operating income	340,560	407,653	47,781	(131,538)	664,456
Non-operating (expense) income, net	(70,533)	(121,385)	2,300	131,538	(58,080)
Income from continuing operations before taxes	270,027	286,268	50,081	-	606,376
Income tax expense	104,062	113,078	13,889	-	231,029
Income from continuing operations	165,965	173,190	36,192	-	375,347
Loss from discontinued operations, net of taxes	-	(318)	-	-	(318)
Equity earnings from subsidiaries	191,098	-	-	(191,098)	-
Net income	357,063	172,872	36,192	(191,098)	375,029
Less: Net income attributable to noncontrolling interests	-	-	17,966	-	17,966
Net income attributable to Quest Diagnostics	$    357,063	$    172,872	$      18,226	$   (191,098)	$    357,063

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet June 30, 2011
	Parent	Subsidiary Guarantors	Non- Guarantor Subsidiaries	Eliminations	Consolidated
Assets
Current assets:
Cash and cash equivalents	$    138,157	$        2,484	$      43,577	$                -	$    184,218
Accounts receivable, net	22,222	163,482	743,668	-	929,372
Other current assets	75,339	186,666	102,360	-	364,365
Total current assets	235,718	352,632	889,605	-	1,477,955
Property, plant and equipment, net	169,607	609,465	41,521	-	820,593
Goodwill and intangible assets, net	155,529	6,260,302	483,309	-	6,899,140
Intercompany (payable) receivable	(461,060)	739,576	(278,516)	-	-
Investment in subsidiaries	7,788,982	-	-	(7,788,982)	-
Other assets	274,555	43,974	50,321	(135,347)	233,503
Total assets	$ 8,163,331	$ 8,005,949	$ 1,186,240	$ (7,924,329)	$ 9,431,191
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses..	$    786,734	$    161,246	$      50,702	$                -	$    998,682
Short-term borrowings and current portion of long-term debt	763,683	144,699	86,293	-	994,675
Total current liabilities	1,550,417	305,945	136,995	-	1,993,357
Long-term debt	2,989,123	18,378	325,430	-	3,332,931
Other liabilities	194,641	541,596	53,417	(135,347)	654,307
Stockholders' equity:
Quest Diagnostics stockholders' equity...	3,429,150	7,140,030	648,952	(7,788,982)	3,429,150
Noncontrolling interests	-	-	21,446	-	21,446
Total stockholders' equity	3,429,150	7,140,030	670,398	(7,788,982)	3,450,596
Total liabilities and stockholders' equity	$ 8,163,331	$ 8,005,949	$ 1,186,240	$ (7,924,329)	$ 9,431,191

Condensed Consolidating Balance Sheet December 31, 2010
	Parent	Subsidiary Guarantors	Non- Guarantor Subsidiaries	Eliminations	Consolidated
Assets
Current assets:
Cash and cash equivalents	$    392,525	$           928	$      55,848	$                -	$    449,301
Accounts receivable, net	15,913	135,417	693,969	-	845,299
Other current assets	55,723	165,099	96,183	(6,188)	310,817
Total current assets	464,161	301,444	846,000	(6,188)	1,605,417
Property, plant and equipment, net	179,624	616,114	38,638	-	834,376
Goodwill and intangible assets, net	155,596	5,279,371	463,376	-	5,898,343
Intercompany receivable (payable)	84,107	231,268	(315,375)	-	-
Investment in subsidiaries	6,195,557	-	-	(6,195,557)	-
Other assets	227,822	10,090	48,319	(96,737)	189,494
Total assets	$ 7,306,867	$ 6,438,287	$ 1,080,958	$ (6,298,482)	$ 8,527,630
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses..	$    623,610	$    190,334	$      57,516	$       (6,188)	$    865,272
Current portion of long-term debt	203,659	144,004	1,333	-	348,996
Total current liabilities	827,269	334,338	58,849	(6,188)	1,214,268
Long-term debt	2,295,709	19,342	326,109	-	2,641,160
Other liabilities	150,409	512,681	51,724	(96,737)	618,077
Stockholders' equity:
Quest Diagnostics stockholders' equity	4,033,480	5,571,926	623,631	(6,195,557)	4,033,480
Noncontrolling interests	-	-	20,645	-	20,645
Total stockholders' equity	4,033,480	5,571,926	644,276	(6,195,557)	4,054,125
Total liabilities and stockholders' equity	$ 7,306,867	$ 6,438,287	$ 1,080,958	$ (6,298,482)	$ 8,527,630

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2011
	Parent	Subsidiary Guarantors	Non- Guarantor Subsidiaries	Eliminations	Consolidated
Cash flows from operating activities:
Net income	$    109,282	$    160,851	$      32,231	$   (177,499)	$    124,865
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	22,889	104,703	8,492	-	136,084
Provision for doubtful accounts	2,376	27,950	115,659	-	145,985
Provision for special charge	236,000	-	-	-	236,000
Other, net	(195,421)	67,472	(3,824)	177,499	45,726
Changes in operating assets and liabilities	(151,255)	(161,149)	(156,173)	-	(468,577)
Net cash provided by (used in) operating activities	23,871	199,827	(3,615)	-	220,083
Net cash used in investing activities	(1,059,870)	(169,185)	(5,315)	226,404	(1,007,966)
Net cash provided by (used in) financing activities	781,631	(29,086)	(3,341)	(226,404)	522,800
Net change in cash and cash equivalents..	(254,368)	1,556	(12,271)	-	(265,083)
Cash and cash equivalents, beginning of period	392,525	928	55,848	-	449,301
Cash and cash equivalents, end of period.	$    138,157	$        2,484	$      43,577	$                -	$    184,218

Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2010
	Parent	Subsidiary Guarantors	Non- Guarantor Subsidiaries	Eliminations	Consolidated
Cash flows from operating activities:
Net income	$    357,063	$    172,872	$    36,192	$   (191,098)	$    375,029
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	24,331	93,907	8,069	-	126,307
Provision for doubtful accounts	3,006	24,669	120,728	-	148,403
Other, net	(131,368)	(6,194)	(17,401)	191,098	36,135
Changes in operating assets and liabilities	82,079	(196,396)	(123,173)	-	(237,490)
Net cash provided by operating activities.	335,111	88,858	24,415	-	448,384
Net cash provided by (used in) investing activities	11,063	(68,458)	(2,763)	(31,886)	(92,044)
Net cash used in financing activities	(424,511)	(26,208)	(23,875)	31,886	(442,708)
Net change in cash and cash equivalents..	(78,337)	(5,808)	(2,223)	-	(86,368)
Cash and cash equivalents, beginning of period	464,958	17,457	51,841	-	534,256
Cash and cash equivalents, end of period	$    386,621	$      11,649	$    49,618	$                -	$    447,888