Quest Diagnostics 2013 Annual Report Download - page 118

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F- 46
The Company's DIS business provides insights through clinical testing and related services that empower and enable
patients, physicians, hospitals, integrated delivery networks, health plans, employers and others to make better healthcare
decisions. The Company provides clinical testing, including routine testing, gene-based and esoteric testing, anatomic
pathology services and drugs-of-abuse testing, as well as related services and insights. Customers of the DIS business include
patients, physicians, hospitals, employers, governmental institutions and other commercial clinical laboratories. The DIS
business accounted for greater than 90% of net revenues from continuing operations in 2013, 2012 and 2011.
All other operating segments are included in the Company's DS business and consist of its risk assessment services,
clinical trials testing, diagnostic products and healthcare information technology. The Company's DS business offers a variety
of solutions for life insurers, healthcare providers and others. The Company provides risk assessment services for the life
insurance industry and also provides testing for clinical trials. In addition, the Company offers healthcare organizations and
clinicians robust information technology solutions and diagnostic products, including test kits.
During the first quarter of 2013, the Company acquired certain operations of UMass. During the second quarter of
2013, the Company acquired the operations of ATN and Dignity. During the fourth quarter of 2013, the Company acquired the
operations of ConVerge. The acquired operations of UMass, ATN, Dignity and ConVerge are included in the Company's DIS
business. In addition, the Company completed the sale of Enterix in the third quarter of 2013, which is included in all other
operating segments.
During the first quarter of 2012, the Company acquired the operations of S.E.D., which is included in the Company's
DIS business.
During the second quarter of 2011, the Company acquired Athena and Celera. Athena is included in the Company's
DIS business. The majority of Celera's operations are included in the Company's DIS business, with the remainder in all other
operating segments.
On April 19, 2006, the Company decided to discontinue NID’s operations. The Company completed the sale of
OralDNA in the fourth quarter of 2012 and completed the sale of HemoCue in the second quarter of 2013. The results of
operations for NID, OralDNA and HemoCue have been classified as discontinued operations for all periods presented. See Note
19 for further details regarding discontinued operations.
At December 31, 2013, substantially all of the Company’s services are provided within the United States, and
substantially all of the Company’s assets are located within the United States.
The following table is a summary of segment information for the years ended December 31, 2013, 2012 and 2011.
Segment asset information is not presented since it is not used by the chief operating decision maker at the operating segment
level. Operating earnings (loss) of each segment represents net revenues less directly identifiable expenses to arrive at operating
income for the segment. Certain general operating expenses in 2012 and 2011 have been reclassified to conform to the current
year presentation of the Company's businesses. General management and administrative corporate expenses, the amortization of
intangibles assets, other miscellaneous operating income and expenses, the third quarter of 2013 pre-tax gain on sale of the
ibrutinib royalty rights and pre-tax loss on sale of Enterix (see Note 6) and the Medi-Cal charge in the first quarter of 2011 of
$236 million (see Note 18), are included in general corporate income (expenses), net. The accounting policies of the segments
are the same as those of the Company as set forth in Note 2.
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED
(in millions unless otherwise indicated)