Quest Diagnostics 2014 Annual Report Download
Download and view the complete annual report
Please find the complete 2014 Quest Diagnostics annual report below. You can navigate through the pages in the report by either clicking on the pages
listed below, or by using the keyword search tool below to find specific information within the annual report.
-
1
-
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
Table of contents
-
Page 1
-
Page 2
..., DC 20549 FORM 10-K $QQXDO5HSRUW3XUVXDQWWR6HFWLRQRU G RI WKH6HFXULWLHV([FKDQJH$FWRI )RUWKH)LVFDO
-
Page 3
...
Documents Incorporated by Reference Document 3RUWLRQVRIWKHUHJLVWUDQW
V3UR[\6WDWHPHQWWREHILOHGE\$SULO
Part of Form 10-K...\LQFRUSRUDWHGE\UHIHUHQFHVKDOOQRWEHGHHPHG³ILOHG´DV SDUWRIWKLVUHSRUWRQ)RUP.
48(67',$*1267,&6)250.
-
Page 4
... ,WHP % 2WKHU,QIRUPDWLRQ ,WHP 'LUHFWRUV([HFXWLYH2IILFHUVDQG&RUSRUDWH*RYHUQDQFH ,WHP ([HFXWLYH&RPSHQVDWLRQ ,WHP 6HFXULW\2ZQHUVKLSRI&HUWDLQ%HQHILFLDO2ZQHUVDQG0DQDJHPHQWDQG5HODWHG 6WRFNKROGHUV
0DWWHUV ,WHP &HUWDLQ5HODWLRQVKLSVDQG5HODWHG7UDQVDFWLRQVDQG'LUHFWRU...
-
Page 5
...'D\LQ1RYHPEHUZHLQWURGXFHGDILYHSRLQWEXVLQHVVVWUDWHJ\WRKHOSXVDFKLHYHRXU YLVLRQDQGRXUJRDOV$VFRQFOXGHGZHUHYLVHGWKHSULRULW\RIWKHILYHSRLQWVLQWKHVWUDWHJ\HVWDEOLVKLQJUHVWRULQJJURZWK DVRXUWRSSULRULW\,QZHH[HFXWHGRXUVWUDWHJ\DQGDWRXUVHFRQG...
-
Page 6
... Drive operational excellence.7RHQKDQFHRSHUDWLRQDOH[FHOOHQFHZHDUHIRFXVHGRQGHOLYHULQJDVXSHULRUFXVWRPHU H[SHULHQFHDQGGULYLQJFRVWH[FHOOHQFHDFURVVHYHU\SRUWLRQRIRXUYDOXHFKDLQIURPWKHWLPHWKDWZHUHFHLYHDQRUGHUXQWLOWKH WLPHZHUHFHLYHSD\PHQWLQFOXGLQJLQRXUVXSSRUWLQJ...
-
Page 7
...GHFLVLRQPDNLQJDQGWR HPSRZHUHPSOR\HHV 4. Refocus on diagnostic information services. :HKDYHDVKDUSIRFXVRQGLDJQRVWLFLQIRUPDWLRQVHUYLFHV6LQFH...SURGXFWVEXVLQHVVHVDQG LEUXWLQLEUR\DOW\ULJKWVJHQHUDWLQJDSSUR[LPDWHO\PLOOLRQRISURFHHGV:HFRQWLQXHWRFRQVLGHURSWLRQVIRU...
-
Page 8
...OHDGHUZLWKWKHODUJHVWDQGEURDGHVW86QHWZRUNDQGSUHVHQFHRXWVLGHWKH8QLWHG6WDWHVZHEHOLHYHZHDUHWKH GLVWULEXWLRQFKDQQHORIFKRLFHIRUGHYHORSHUVRIQHZWHVWVLQFOXGLQJWKHDFDGHPLFDQGPHGLFDOFRPPXQLWLHVDVZHOODV SKDUPDFHXWLFDODQGELRWHFKQRORJ\ILUPVWRLQWURGXFHWKHLUSURGXFWV...
-
Page 9
...DPRXQWVRIFOLQLFDOLQIRUPDWLRQ DQG RWKHUZLVHIRVWHUSUHFLVLRQPHGLFLQH
:HEHOLHYHWKDWWKHVHVROXWLRQVDUHFRQVLVWHQWZLWKDQGSURPRWHRXUVWUDWHJ\HQKDQFHWKHYDOXHZHSURYLGHWRRXUFXVWRPHUV DQGZLOOUHVXOWLQLQFUHDVHGFXVWRPHUOR\DOW\ Strong quality and a positive customer experience...
-
Page 10
...OR\DOW\ BUSINESS OPERATIONS 7KH&RPSDQ\LVPDGHXSRIWZR...SHUFHQWDJHRIRXUQHWUHYHQXHVJHQHUDWHGE\WKHDFWLYLWLHVLGHQWLILHG Approximate Percentage of 2014 Net...Diagnostic Information Services Background - clinical testing.
&OLQLFDOWHVWLQJLVDQHVVHQWLDOHOHPHQWLQWKHGHOLYHU\RI...
-
Page 11
...WRRXUFXVWRPHUVEDVHGRQWKHWHVWLQJWKDWZHSHUIRUP :HDOVRDUHDOHDGHULQSURYLGLQJWHVWLQJIRUWKHGHWHFWLRQRIHPSOR\HHXVHRIGUXJVRIDEXVHRIIHULQJDIXOOUDQJHRI VROXWLRQVLQFOXGLQJXULQHKDLUEORRGDQGRUDOIOXLGWHVWV2XU4XHVW'LDJQRVWLFV'UXJ7HVWLQJ,QGH[70ZKLFKLVDQ...
-
Page 12
... LQ*XUJDRQ,QGLD +HVWRQ(QJODQG 0H[LFR&LW\0H[LFR DQG6DQ-XDQ3XHUWR5LFR7KHVHODERUDWRULHVJHQHUDOO\VXSSRUWWKH SURYLVLRQRIGLDJQRVWLFLQIRUPDWLRQVHUYLFHVLQWKHLUORFDOPDUNHWV WKH\DOVRPD\VXSSRUWRXUFOLQLFDOWULDOVEXVLQHVV:HVHH RSSRUWXQLWLHVWREULQJRXUH[SHULHQFHDQG...
-
Page 13
...RUDOIOXLGVDPSOHW\SHV :HH[SDQGHGRXUWHVWLQJIRUDQWLFRQYXOVDQWVLQFOXGLQJIRUHVOLFDUED]HSLQH
‡
‡
‡
‡
Diagnostic Solutions Clinical Trials Testing. :HDUHDOHDGLQJSURYLGHURIFHQWUDOODERUDWRU\WHVWLQJSHUIRUPHGLQFRQQHFWLRQZLWKFOLQLFDOUHVHDUFKWULDOVRQQHZ GUXJV...
-
Page 14
...DPVDWPRUHWKDQDGGLWLRQDOORFDWLRQVRXWVLGH1RUWK$PHULFD Diagnostic Products. :HGHYHORSDQGPDQXIDFWXUHSURGXFWVWKDWHQDEOH...DJUHHPHQW:HDUHDOVRHQWLWOHGWRUHFHLYHVLQJOH GLJLWUR\DOW\SD\PHQWVIURPWKHVDOHRIGUXJVLIDQ\UHVXOWLQJIURPWKHSURJUDP7KLVGUXJGHYHORSPHQW...
-
Page 15
...UHTXLUHGWRXVHFRPPHUFLDOO\UHDVRQDEOHHIIRUWVWRGHYHORSDWKHUDSHXWLF SURGXFWDQGWRSD\XVDPRXQWVGXHXQGHUWKHWHUPVRIWKHDJUHHPHQWVLQFOXGLQJPLOHVWRQHDQGRUUR\DOW\SD\PHQWVSURPSWO\ DIWHUWKHDPRXQWVEHFRPHSD\DEOH7KHVHDJUHHPHQWVJHQHUDOO\DUHWHUPLQDEOHXSRQDQXQFXUHGPDWHULDO...
-
Page 16
... )HGHUDOKHDOWKFDUHUHIRUPOHJLVODWLRQDGRSWHGLQKDVFUHDWHGVLJQLILFDQWXQFHUWDLQW\DVKHDOWKFDUHPDUNHWV UHDFWWRFKDQJHV)RUH[DPSOHDSSUR[LPDWHO\KDOIRIWKHVWDWHVKDYHRSWHGLQWR0HGLFDLGH[SDQVLRQDQGHPSOR\HUVPD\ GLVFRQWLQXHRIIHULQJJURXSKHDOWKLQVXUDQFHWRWKHLUHPSOR\HHV...
-
Page 17
...SD\PHQW PRGHOVLQFOXGLQJEXQGOHGSD\PHQWPRGHOV,QFUHDVLQJO\SDWLHQWVDUHEHDULQJUHVSRQVLELOLW\IRUVRPHSRUWLRQRIWKHSD\PHQW IRUWKHVHUYLFHVZHSURYLGHWRWKHP Health plans.+HDOWKSODQVLQFOXGLQJPDQDJHGFDUHRUJDQL]DWLRQVDQGRWKHUKHDOWKLQVXUDQFHSURYLGHUVW\SLFDOO\ UHLPEXUVHXV...
-
Page 18
...DUHFRQVLGHULQJDQGDGRSWLQJEXQGOHGSD\PHQW PRGHOVIRUVHUYLFHVWKDWWKH\DUHSXUFKDVLQJOLNHGLDJQRVWLFLQIRUPDWLRQVHUYLFHV7KHLPSDFWRI$&2VDQG,'1VRQWKH SURYLVLRQRIKHDOWKFDUHVHUYLFHVWRGDWHKDVYDULHG:HDUHDFWLYHO\HQJDJLQJZLWK$&2VDQG,'1VWRGHPRQVWUDWHWKHYDOXH WKDWRXU...
-
Page 19
...WHVWLQJWKDWFDQEHFDUULHGRXWZLWKRXWUHTXLULQJWKHVHUYLFHVRIRXWVLGHSURYLGHUV 7KHGLDJQRVWLFSURGXFWVULVNDVVHVVPHQWFOLQLFDO...ZRUOG
VOHDGLQJGLDJQRVWLFWHVWLQJFRPSDQ\LQFOXGLQJWKHGHSWKDQGEUHDGWKRIRXUWHVWLQJPHQXRXUVXSHULRU VFLHQWLILFH[SHUWLVHRXUDELOLW\WRVXSSRUW...
-
Page 20
...GLDJQRVWLFLQIRUPDWLRQVHUYLFHV)RUPRVWFOLQLFDOODERUDWRU\WHVWVTXDOLW\FRQWURO VDPSOHVDUHSURFHVVHGLQSDUDOOHOZLWKWKHDQDO\VLVRISDWLHQWVSHFLPHQV7KHUHVXOWVRIWHVWVRQWKHVHTXDOLW\FRQWUROVDPSOHV DUHPRQLWRUHGWRLGHQWLI\WUHQGVELDVHVRULPSUHFLVLRQLQRXUDQDO\WLFDOSURFHVVHV...
-
Page 21
...LQFUHDVHGSDWLHQWUHVSRQVLELOLW\KDVDGYHUVHO\LPSDFWHGRXUEDGGHEW H[SHQVH7RWKHH[WHQWWKDWKHDOWKSODQVDQGRWKHUSURJUDPVUHTXLUHJUHDWHUOHYHOVRISDWLHQWFRVWVKDULQJWKLVFRXOGQHJDWLYHO\ LPSDFWRXUEDGGHEWH[SHQVH:HDUHWDNLQJDQGSODQWRFRQWLQXHWRWDNHVWHSVWRLPSURYHRXU...
-
Page 22
...WRWDNHVWHSVWRFRQWUROWKHFRVWXWLOL]DWLRQDQGGHOLYHU\RIKHDOWKFDUHVHUYLFHVLQFOXGLQJFOLQLFDO WHVWVHUYLFHV)RUH[DPSOH0HGLFDUHKDVDGRSWHG...2014 Consolidated Net Revenues
3HQDOWLHVIRUYLRODWLRQVRIODZVUHODWLQJWRELOOLQJJRYHUQPHQWKHDOWKFDUHSURJUDPVDQGIRUYLRODWLRQVRI...
-
Page 23
...DQG OHJDODFWLRQVDJDLQVWXVIRUQRQFRPSOLDQFHVXFKDVILQHVSURGXFWVXVSHQVLRQVVXEPLVVLRQRIZDUQLQJOHWWHUVUHFDOOVSURGXFW VHL]XUHVLQMXQFWLRQVDQGRWKHUFLYLODQGFULPLQDOVDQFWLRQV Environmental, Health and Safety.:HDUHVXEMHFWWRODZVDQGUHJXODWLRQVUHODWHGWRWKHSURWHFWLRQ...
-
Page 24
...EHRUJDQL]HGWRSHUIRUPPHGLFDOVHUYLFHVPD\EHJRYHUQHGE\WKHODZVRIWKHMXULVGLFWLRQVLQZKLFKPHGLFDO VHUYLFHVDUHSURYLGHGDQGE\WKHPHGLFDOERDUGV...WKDWHPSOR\WKH SUDFWLFLQJSDWKRORJLVWV Privacy and Security of Health and Personal Information.:HDUHUHTXLUHGWRFRPSO\ZLWKODZVDQG...
-
Page 25
...LVQRWLQFRUSRUDWHGE\UHIHUHQFHLQWRWKLV5HSRUW:H PDNHDYDLODEOHIUHHRIFKDUJHRQRUWKURXJKRXU,QYHVWRU5HODWLRQVZHESDJHRXUSUR[\...WKRVHUHSRUWVILOHGRUIXUQLVKHG SXUVXDQWWRWKH6HFXULWLHV([FKDQJH$FWRI DVDPHQGHG WKH³([FKDQJH$FW´ DVVRRQDVUHDVRQDEO\SUDFWLFDODIWHU...
-
Page 26
...)URPWR KHVHUYHGDV9LFH3UHVLGHQW+XPDQ5HVRXUFHV&RUSRUDWH*URXSV%HIRUHWKDW0U&XQQLQJKDP VHUYHG3IL]HULQDVHULHVRIVDOHVDQGOHDGHUVKLSDQGJHQHUDOPDQDJHPHQWUROHV James E. Davis KDVEHHQ6HQLRU9LFH3UHVLGHQW2SHUDWLRQVVLQFH)HEUXDU\+HLVUHVSRQVLEOHIRU...
-
Page 27
...UHIRUPVLQFOXGLQJWKHHOLPLQDWLRQRISUHH[LVWLQJFRQGLWLRQ H[FOXVLRQVDQGRWKHUOLPLWDWLRQVRQFRYHUDJHIL[HGSHUFHQWDJHVRQPHGLFDO...The clinical testing business is highly competitive, and if we fail to provide an appropriately priced level of service or otherwise fail to compete effectively ...
-
Page 28
..., have taken steps to control the utilization and reimbursement of health services, including clinical testing services. :HIDFHHIIRUWVE\QRQJRYHUQPHQWDOWKLUGSDUW\SD\HUVLQFOXGLQJKHDOWKSODQVWRUHGXFHXWLOL]DWLRQRIDQG UHLPEXUVHPHQWIRUFOLQLFDOWHVWLQJVHUYLFHV)RUH[DPSOHLQOLJKW...
-
Page 29
...RSSRUWXQLW\ DQGWRLQWHJUDWHLWLQWRRXUEXVLQHVV7KHVXFFHVVRIRXUVWUDWHJLFDOOLDQFHVGHSHQGVQRWRQO\RQRXUFRQWULEXWLRQVDQG...QHJDWLYHO\DIIHFWHG(YHQLIZHDUHDEOHWRVXFFHVVIXOO\FRPSOHWHWKHLQWHJUDWLRQRIWKHRSHUDWLRQVRIRWKHU FRPSDQLHVRUEXVLQHVVHVZHPD\DFTXLUHLQWKHIXWXUHZH...
-
Page 30
...ODERUDWRULHVWRSHUIRUPGLDJQRVWLFWHVWLQJLQWKH8QLWHG6WDWHV$QXPEHURIHVRWHULFWHVWVZHGHYHORSLQWHUQDOO\DUH RIIHUHGDV/'7V7KH...RXUDELOLW\WRGHYHORSDQGPDUNHWQHZVHUYLFHVFDXVHDQLQFUHDVHLQWKHFRVWRIRXU VHUYLFHVGHOD\RXUDELOLW\WRLQWURGXFHQHZWHVWVRUKLQGHURXUDELOLW\...
-
Page 31
...FRXOG LQWURGXFHQHZWHVWVWHFKQRORJLHVRUVHUYLFHVWKDWPD\UHVXOWLQDGHFUHDVHLQWKHGHPDQGIRURXUVHUYLFHVRUFDXVHXVWRUHGXFH WKHSULFHVRIRXUVHUYLFHV2XUVXFFHVVLQFRQWLQXLQJWRLQWURGXFHQHZVROXWLRQVWHFKQRORJ\DQGVHUYLFHVZLOOGHSHQGLQSDUW RQRXUDELOLW\WROLFHQVHQHZDQG...
-
Page 32
...DELOLW\WRJHQHUDWHFDVKLQWKHIXWXUH,IZHLQFXUDGGLWLRQDOGHEWDJUHDWHUSRUWLRQRIRXUFDVK IORZVPD\EHQHHGHGWRVDWLVI\RXUGHEWVHUYLFHREOLJDWLRQV... level of quality is observed in the performance of our diagnostic information services could adversely affect the results of our operations...
-
Page 33
... the effects of natural disasters such as hurricanes and earthquakes, health pandemics, hostilities or acts of terrorism and other criminal activities....\ GHOD\VLQELOOLQJKDYHUHVXOWHGLQLQFUHDVHGFRVWVDQGGHFUHDVHGFROOHFWLRQRISD\PHQW Our business could be adversely impacted by adoption of ...
-
Page 34
...FOLQLFDOWHVWLQJFRPSDQLHVKRVSLWDOVSK\VLFLDQVDQGRWKHUV ,QFUHDVHGSULFLQJSUHVVXUHIURPFXVWRPHUVDQGSD\HUV $GHFOLQHLQHFRQRPLFFRQGLWLRQV ,PSDFWRIFKDQJHVLQSD\HUPL[LQFOXGLQJDQ\VKLIWIURPIHHIRUVHUYLFHWRGLVFRXQWHGRUFDSLWDWHGIHH DUUDQJHPHQWV $GYHUVHDFWLRQVE\JRYHUQPHQW...
-
Page 35
...FRXOGSUHYHQWOLPLWRU LQWHUIHUHZLWKRXUDELOLW\WRGHYHORSSHUIRUPRUVHOORXUWHVWVRURSHUDWHRXUEXVLQHVV7KHVHLQFOXGH ,VVXDQFHRISDWHQWVRURWKHUSURSHUW\ULJKWVWRRXUFRPSHWLWRUVRURWKHUV DQG ,QDELOLW\WRREWDLQRUPDLQWDLQDGHTXDWHSDWHQWRURWKHUSURSULHWDU\ULJKWVIRU...
-
Page 36
...VSDFHDWFRPSHWLWLYHPDUNHWUDWHVDQGUHORFDWHRXURSHUDWLRQVWRVXFK QHZORFDWLRQZLWKRXWPDWHULDOGLVUXSWLRQWRRXUEXVLQHVV6HYHUDORIRXUSULQFLSDOIDFLOLWLHVDUHKLJKOLJKWHGEHORZ
Location Leased or Owned
6DFUDPHQWR&DOLIRUQLD ODERUDWRU\ :HVW+LOOV&DOLIRUQLD ODERUDWRU\ 6DQ-XDQ...
-
Page 37
Item 4. Mine Safety Disclosures 1RWDSSOLFDEOH
48(67',$*1267,&6)250.
-
Page 38
...Purchases of Equity Securities 2XUFRPPRQVWRFNLVOLVWHGDQGWUDGHGRQWKH1HZ
-
Page 39
...IRUWKWKHLQIRUPDWLRQZLWKUHVSHFWWRSXUFKDVHVPDGHE\RURQEHKDOIRIWKH&RPSDQ\RILWV FRPPRQVWRFNGXULQJWKHIRXUWKTXDUWHURI ISSUER PURCHASES OF EQUITY SECURITIES Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
Period 2FWREHU±2FWREHU...
-
Page 40
...UHWXUQRQ4XHVW'LDJQRVWLFV
FRPPRQVWRFN VLQFH'HFHPEHU EDVHGRQWKHPDUNHWSULFHRIWKH&RPSDQ\
VFRPPRQVWRFNDQGDVVXPLQJUHLQYHVWPHQWRIGLYLGHQGV ZLWKWKHFXPXODWLYHWRWDOVKDUHKROGHUUHWXUQRIFRPSDQLHVRQWKH6WDQGDUG 3RRU
V6WRFN,QGH[DQGWKH6 3 +HDOWKFDUH(TXLSPHQW...
-
Page 41
...DQGRXU&KLHI)LQDQFLDO2IILFHUFRQFOXGHGWKDWRXUGLVFORVXUHFRQWUROVDQGSURFHGXUHVZHUHHIIHFWLYHDVRIWKHHQGRI WKHSHULRGFRYHUHGE\WKLVDQQXDOUHSRUW Management's Report on Internal Control Over Financial Reporting 6HHSDJH Changes in Internal Control 'XULQJWKHIRXUWKTXDUWHU...
-
Page 42
...KLHI)LQDQFLDO2IILFHUDQG&RUSRUDWH&RQWUROOHU
-
Page 43
...RI2SHUDWLRQV &RQVROLGDWHG6WDWHPHQWVRI&RPSUHKHQVLYH,QFRPH &RQVROLGDWHG6WDWHPHQWVRI&DVK)ORZV &RQVROLGDWHG6WDWHPHQWVRI... ([KLELWV
Page )
$QH[KLELWLQGH[KDVEHHQILOHGDVSDUWRIWKLV5HSRUWEHJLQQLQJRQSDJH(DQGLVLQFRUSRUDWHGKHUHLQE\UHIHUHQFH
E ([KLELWVILOHG...
-
Page 44
...DOODPHQGPHQWVWR WKLV$QQXDO5HSRUWRQ)RUP.ILOHGZLWKWKH6HFXULWLHVDQG([FKDQJH&RPPLVVLRQJUDQWLQJXQWRVDLGDWWRUQH\VLQIDFWDQG DJHQWVDQGHDFKRIWKHPIXOOSRZHUDQGDXWKRULW\WRGRDQGSHUIRUPHDFKDQGHYHU\DFWDQGWKLQJUHTXLVLWHDQGQHFHVVDU\WREH GRQHLQDQGDERXWWKH...
-
Page 45
...&6WDQ]LRQH3K' 'DQLHO&6WDQ]LRQH3K' V*DLO5:LOHQVN\3K' *DLO5:LOHQVN\3K' V-RKQ%=LHJOHU -RKQ%=LHJOHU
'LUHFWRU
'LUHFWRU
'LUHFWRU 'LUHFWRU
'LUHFWRU
'LUHFWRU
'LUHFWRU
&KDLUPDQRIWKH%RDUG
'LUHFWRU
'LUHFWRU
48(67',$*1267,&6)250.
-
Page 46
... 2014 Operations Data: 1HWUHYHQXHV 2SHUDWLQJLQFRPH ,QFRPHIURPFRQWLQXLQJRSHUDWLRQV ,QFRPH ORVV IURPGLVFRQWLQXHGRSHUDWLRQVQHWRIWD[HV 1HWLQFRPH /HVV 1HWLQFRPHDWWULEXWDEOHWRQRQFRQWUROOLQJLQWHUHVWV 1HWLQFRPHDWWULEXWDEOHWR4XHVW'LDJQRVWLFV Amounts attributable to Quest Diagnostics...
-
Page 47
...,QDGGLWLRQRSHUDWLQJ LQFRPHLQFOXGHVDSUHWD[JDLQRQVDOHRIUR\DOW\ULJKWVRIPLOOLRQDQGDSUHWD[ORVVRIPLOOLRQDVVRFLDWHGZLWK WKHVDOHRIWKH(QWHUL[)RUIXUWKHUGHWDLOVUHJDUGLQJWKHVDOHRIUR\DOW\ULJKWVDQG(QWHUL[VHH1RWHWRWKHFRQVROLGDWHG ILQDQFLDOVWDWHPHQWV...
-
Page 48
...LQFOXGHVSURFHHGVIURPWKHVDOHRIWKHLEUXWLQLEUR\DOW\ULJKWVRIPLOOLRQQHW RIWUDQVDFWLRQFRVWVDVZHOODVSURFHHGVIURPWKHVDOHVRI+HPR&XHDQG(QWHUL[RI PLOOLRQ
H 2Q-DQXDU\ZHFRPSOHWHGWKHDFTXLVLWLRQRI6('0HGLFDO/DERUDWRULHV 6(' IURP/RYHODFH+HDOWK...
-
Page 49
...
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Overview Our Company Diagnostic Information Services 4XHVW'LDJQRVWLFVLVWKHZRUOG
VOHDGLQJSURYLGHURI'LDJQRVWLF,QIRUPDWLRQ6HUYLFHV ',6 SURYLGLQJ...
-
Page 50
...WKHDIWHUWD[JDLQRI PLOOLRQRU SHUGLOXWHGVKDUHUHODWHG WRWKHVDOHRIIXWXUHUR\DOW\ULJKWVRILEUXWLQLE ,EUXWLQLE6DOH ZKLFKZDV...DSSUR[LPDWHO\RQH KDOIRIRXUWRWDOFRVWVDQGH[SHQVHV,QDGGLWLRQSHUIRUPLQJFOLQLFDOWHVWLQJLQYROYHVVLJQLILFDQWIL[HGFRVWVIRUIDFLOLWLHV...
-
Page 51
...7KHDFWXDOFKDUJHVLQFXUUHGLQ FRQQHFWLRQZLWKWKHFRXUVHRIDFWLRQLQFRXOGEHPDWHULDOO\GLIIHUHQWIURPWKHVHHVWLPDWHV ...RZHYHUEHFDXVHGLDJQRVWLFLQIRUPDWLRQVHUYLFHVLVDQHVVHQWLDOKHDOWKFDUHVHUYLFHDQGEHFDXVHRIWKHNH\WUHQGVGLVFXVVHG EHORZZHEHOLHYHWKDWWKHLQGXVWU\ZLOO...
-
Page 52
...KHOS WRUHGXFHWKHULVNDVVRFLDWHGZLWKPDWHULDODGMXVWPHQWVWRUHVHUYHHVWLPDWHV 7KHIROORZLQJWDEOHVKRZVFXUUHQWHVWLPDWHVRIWKHSHUFHQWDJHRIRXUWRWDOYROXPHRIUHTXLVLWLRQVDQGQHWUHYHQXHV DVVRFLDWHGZLWKRXU',6EXVLQHVVGXULQJDSSOLFDEOHWRHDFKSD\HUJURXS % of DIS Volume...
-
Page 53
...VRZHZLOOUHVHUYHDFFRUGLQJO\IRUWKHELOOLQJ $SSUR[LPDWHO\RIRXU',6QHWUHYHQXHVIRUWKH\HDUHQGHG'HFHPEHUDUHUHLPEXUVHGXQGHU...WKHFDXVHDQGPDNHDVHSDUDWHGHWHUPLQDWLRQDVWRZKHWKHURUQRWWKHFROOHFWLRQRIWKHDPRXQWIURP WKHKHDOWKFDUHLQVXUHULVDWULVNDQGLIVR...
-
Page 54
...WRVXFKSURFHHGLQJVFRXOGOHDGWRVLJQLILFDQWDGMXVWPHQWVWR UHVHUYHHVWLPDWHVIRUVXFKPDWWHUVDQGFRXOGKDYHDPDWHULDOLPSDFWRQRXUUHVXOWVRIRSHUDWLRQVFDVKIORZVDQGILQDQFLDO FRQGLWLRQLQWKHSHULRGWKDWUHVHUYHHVWLPDWHVDUHDGMXVWHGRUSDLG Accounting for and recoverability of goodwill...
-
Page 55
...FDXVHVWRFNEDVHGFRPSHQVDWLRQH[SHQVHWRYDU\IURPSHULRG WRSHULRG %HJLQQLQJLQZHFKDQJHGWKHPHWKRGIRUHVWLPDWLQJWKHIDLUYDOXHRIRXUVWRFNRSWLRQDZDUGVIURPDODWWLFH EDVHGRSWLRQYDOXDWLRQPHWKRGWRD%ODFN6FKROHVPRGHOZKLFKZLOOEHDSSOLHGSURVSHFWLYHO\WRDOOIXWXUHJUDQWV...
-
Page 56
...Solstas
2Q0DUFKZHFRPSOHWHGWKHDFTXLVLWLRQRI6ROVWDVLQDQDOOFDVKWUDQVDFWLRQYDOXHGDWPLOOLRQRU PLOOLRQQHWRI... Acquisition of Summit Health
2Q$SULOZHFRPSOHWHGWKHDFTXLVLWLRQRI6XPPLW+HDOWKDOHDGLQJSURYLGHURIRQVLWH...
-
Page 57
...2014 Net revenues: ',6EXVLQHVV '6EXVLQHVVHV 7RWDOQHWUHYHQXHV Operating costs and expenses: &RVWRIVHUYLFHV 6HOOLQJJHQHUDODQG DGPLQLVWUDWLYH $PRUWL]DWLRQRILQWDQJLEOH DVVHWV *DLQRQVDOHRIUR\DOW...from continuing operations attributable to Quest Diagnostics' stockholders Diluted earnings per ...
-
Page 58
...SUHVHQWHG 2014 Net revenues: ',6EXVLQHVV '6EXVLQHVVHV 7RWDOQHWUHYHQXHV 2013 2012
Operating costs and expenses: &RVWRIVHUYLFHV 6HOOLQJJHQHUDODQGDGPLQLVWUDWLYH $PRUWL]DWLRQRILQWDQJLEOHDVVHWV *DLQRQVDOHRIUR\DOW\ULJKWV 2WKHU...
-
Page 59
...SULRU\HDUZKLFKUHIOHFWVORZHUWKDQDQWLFLSDWHGKHDOWKFDUHXWLOL]DWLRQ'UXJVRIDEXVHWHVWLQJ YROXPHJUHZDERXWGXULQJWKH\HDUHQGHG'HFHPEHUZKLFK...HQGHG 'HFHPEHU7KLVGHFUHDVHLVSULPDULO\GXHWRWKHLPSDFWRIDFWLRQVZHWRRNWRUHGXFHRXUFRVWVWUXFWXUHXQGHUWKH ,...
-
Page 60
...80DVV$71 'LJQLW\DQG&RQ9HUJHDFTXLVLWLRQV Gain on Sale of Royalty Rights 6DOH )RUWKH\HDUHQGHG'HFHPEHUJDLQRQVDOHRIUR\DOW\ULJKWVLQFOXGHVWKHJDLQDVVRFLDWHGZLWKWKH,EUXWLQLE
Other Operating (Income) Expense, net 2WKHURSHUDWLQJ LQFRPH H[SHQVHQHWLQFOXGHVVSHFLDO...
-
Page 61
...IRUIXUWKHUGHWDLOV 7KHIROORZLQJWDEOHVXPPDUL]HVRXULQFRPH ORVV IURPGLVFRQWLQXHGRSHUDWLRQVQHWRIWD[HV
2014 vs. 2013 Increase (Decrease) 2013 vs. 2012 Increase (Decrease)
2014 1HWUHYHQXHV ,QFRPH ORVV IURPGLVFRQWLQXHGRSHUDWLRQVEHIRUHWD[HV ,QFRPHWD[EHQHILW ,QFRPH ORVV...
-
Page 62
...UHYROYLQJFUHGLWIDFLOLW\ :HVHHNWRPLWLJDWHWKHYDULDELOLW\LQFDVKRXWIORZVWKDWUHVXOWIURPFKDQJHVLQLQWHUHVWUDWHVE\PDLQWDLQLQJDEDODQFHG PL[RIIL[HGUDWHDQGYDULDEOHUDWHGHEWREOLJDWLRQV,QRUGHUWRDFKLHYHWKLVREMHFWLYHZHKDYHHQWHUHGLQWRLQWHUHVWUDWHVZDSV ,QWHUHVWUDWH...
-
Page 63
...
Liquidity and Capital Resources 2014 1HWFDVKSURYLGHGE\RSHUDWLQJDFWLYLWLHV 1HWFDVK XVHGLQ SURYLGHG...PHQWV LQDQGDWKLUGTXDUWHULQFRPHWD[SD\PHQWRIPLOOLRQUHODWHGWRWKHUHVROXWLRQRIFHUWDLQDXGLWPDWWHUV Cash Flows from Investing Activities ...
-
Page 64
...LQFDVKXVHGLQILQDQFLQJDFWLYLWLHV ZHUHSDUWLDOO\RIIVHWE\DPLOOLRQLQFUHDVHLQSURFHHGVIURPERUURZLQJVDQGD PLOOLRQGHFUHDVHLQUHSD\PHQWVRI GHEW 7KHUHSXUFKDVHVRIRXUFRPPRQVWRFNLQZHUHODUJHO\IXQGHGE\WKHSURFHHGVIURPWKH,EUXWLQLE6DOHDQGWKH +HPR&XHDQG(QWHUL...
-
Page 65
...XQUHFRJQL]HGWD[EHQHILWVZLOOIXUWKHUGHFUHDVHDQGEHQHILFLDOO\LPSDFWWKHHIIHFWLYHWD[UDWHIRUFRQWLQXLQJRSHUDWLRQV +RZHYHUGXHWRWKHLQKHUHQWXQFHUWDLQW\RIWKHQHJRWLDWLRQVDQGWKHUHVXOWLQJRXWFRPHVZHDUHQRWDEOHWRHVWLPDWHWKH HIIHFWLYHWD[UDWHLPSDFWDWWKLVWLPH6HH1RWHWR...
-
Page 66
...WKHERUURZLQJFDSDFLW\XQGHUWKHFUHGLWIDFLOLWLHVGHVFULEHGDERYHFRQWLQXHVWREHDYDLODEOHWRXV 6KRXOGRQHRUVHYHUDOEDQNVQRORQJHUSDUWLFLSDWHLQHLWKHURIRXUFUHGLWIDFLOLWLHVZHZRXOGQRWH[SHFWLWWRLPSDFWRXUDELOLW\ WRIXQGRSHUDWLRQV:HH[SHFWWKDWZHZLOOEHDEOHWRUHSODFHRXU...
-
Page 67
... ,Q-XO\WKH)$6%LVVXHGDQHZDFFRXQWLQJVWDQGDUGWKDWUHTXLUHVDOLDELOLW\UHODWHGWRDQXQUHFRJQL]HGWD[ EHQHILWWREHSUHVHQWHGDVDUHGXFWLRQRIDGHIHUUHGWD[DVVHWIRUDQHWRSHUDWLQJORVVFDUU\IRUZDUGDVLPLODUWD[ORVVRUDWD[ FUHGLWFDUU\IRUZDUGLIFHUWDLQFULWHULDDUHPHW...
-
Page 68
... OF MANAGEMENT ON INTERNAL CONTROL OVER FINANCIAL REPORTING 7KHPDQDJHPHQWRIWKH&RPSDQ\LQFOXGLQJLWV&KLHI([HFXWLYH2IILFHU...DQQXDOUHSRUWDXGLWHGWKH&RPSDQ\
VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDVRI'HFHPEHUDQG LVVXHGWKHLUDXGLWUHSRUWRQWKH&RPSDQ\
VLQWHUQDOFRQWURO...
-
Page 69
...
Report of Independent Registered Public Accounting Firm 7RWKH%RDUGRI'LUHFWRUVDQG6WRFNKROGHUV RI4XHVW'LDJQRVWLFV,QFRUSRUDWHG ...DXGLWV:H FRQGXFWHGRXUDXGLWVLQDFFRUGDQFHZLWKWKHVWDQGDUGVRIWKH3XEOLF&RPSDQ\$FFRXQWLQJ2YHUVLJKW%RDUG 8QLWHG6WDWHV 7KRVHVWDQGDUGV...
-
Page 70
...
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2014 AND 2013 (in millions, except per share data) 2014 Assets Current assets: &DVKDQGFDVKHTXLYDOHQWV $FFRXQWVUHFHLYDEOHQHWRIDOORZDQFHIRUGRXEWIXODFFRXQWVRIDQGDW'HFHPEHU...
-
Page 71
...
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012 (in millions, except per share data) 2014 Net revenues Operating costs and expenses: &RVWRIVHUYLFHV 6HOOLQJJHQHUDODQGDGPLQLVWUDWLYH $PRUWL]DWLRQRI...
-
Page 72
...
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012 (in millions) 2014 Net income 2WKHUFRPSUHKHQVLYH ORVV LQFRPH &XUUHQF\WUDQVODWLRQ 0DUNHWYDOXDWLRQQHWRIWD[ 1HWGHIHUUHGORVV...
-
Page 73
...VZDSDJUHHPHQWV 2WKHUDVVHWVDQGOLDELOLWLHVQHW Net cash provided by operating activities Cash flows from investing activities: %XVLQHVVDFTXLVLWLRQVQHWRIFDVKDFTXLUHG 3URFHHGVIURPVDOHRIEXVLQHVVHV 3URFHHGVIURPVDOHRIUR\DOW\ULJKWV &DSLWDOH[SHQGLWXUHV 'HFUHDVHLQLQYHVWPHQWVDQGRWKHU...
-
Page 74
...FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012 (in millions)
Quest Diagnostics Stockholders' Equity Accumulated Other Comprehensive (...[EHQHILWVDVVRFLDWHGZLWKVWRFNEDVHG FRPSHQVDWLRQSODQV 3XUFKDVHVRIWUHDVXU\VWRFN 2WKHU Balance, December 31, 2014
Additional Paid-In Capital
...
-
Page 75
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in ... VLJQLILFDQWO\LPSDFW´WKH9,(VHFRQRPLFSHUIRUPDQFHDQGKDVWKHREOLJDWLRQWRDEVRUEORVVHVRIRUWKHULJKWWRUHFHLYHEHQHILWV WKDWFRXOGEHSRWHQWLDOO\VLJQLILFDQWWR...
-
Page 76
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in millions unless otherwise indicated) Use of Estimates 7KHSUHSDUDWLRQRIILQDQFLDOVWDWHPHQWVLQFRQIRUPLW\ZLWKDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG 6WDWHV ³*$$3´ ...
-
Page 77
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in millions unless otherwise indicated) Stock-Based Compensation 7KH&RPSDQ\UHFRUGVVWRFNEDVHGFRPSHQVDWLRQDVDFKDUJHWRHDUQLQJVQHWRIWKHHVWLPDWHGLPSDFWRIIRUIHLWHG DZDUGV$VVXFK...
-
Page 78
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in millions unless otherwise indicated) Concentration of Credit Risk )LQDQFLDOLQVWUXPHQWVWKDWSRWHQWLDOO\VXEMHFWWKH&RPSDQ\WRFRQFHQWUDWLRQVRIFUHGLWULVNDUHSULQFLSDOO\FDVKFDVK ...
-
Page 79
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in millions unless otherwise indicated) Goodwill *RRGZLOOUHSUHVHQWVWKHH[FHVVRIWKHIDLUYDOXHRIWKHDFTXLUHH LQFOXGLQJWKHIDLUYDOXHRIQRQFRQWUROOLQJLQWHUHVWV RYHUWKHUHFRJQL]HG...
-
Page 80
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in...WKDQWHPSRUDU\WKHFRVWEDVLVRIWKHVHFXULW\LVZULWWHQGRZQWRIDLUYDOXH ,QYHVWPHQWVDW'HFHPEHUDQGFRQVLVWHGRIWKHIROORZLQJ 2014 $YDLODEOHIRUVDOHHTXLW\VHFXULWLHV...
-
Page 81
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in millions unless otherwise indicated) DQGJDLQVIURPFKDQJHVLQWKHFDVKVXUUHQGHUYDOXHRI...RILQWHUHVWUDWHULVNLVQRWPDWHULDO7KH &RPSDQ\
VGHEWREOLJDWLRQVFRQVLVWRIIL[...
-
Page 82
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in millions unless otherwise indicated) New Accounting Standards ,Q$SULOWKH)$6%LVVXHGDQDFFRXQWLQJVWDQGDUGXSGDWH $68 UHODWHGWRWKHSUHVHQWDWLRQDQGUHSRUWLQJRI GLVFRQWLQXHG...
-
Page 83
...VKDUHLVDVIROORZV LQPLOOLRQVH[FHSWSHUVKDUHGDWD 2014
2013
2012
Amounts attributable to Quest Diagnostics' stockholders: ,QFRPHIURPFRQWLQXLQJRSHUDWLRQV ,QFRPH ORVV IURPGLVFRQWLQXHGRSHUDWLRQVQHWRIWD[HV 1HWLQFRPHDWWULEXWDEOHWR4XHVW'LDJQRVWLFV¶FRPPRQVWRFNKROGHUV...
-
Page 84
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in millions unless otherwise indicated) 7KHIROORZLQJWDEOHSURYLGHVDVXPPDU\RIWKH&RPSDQ\
VSUHWD[UHVWUXFWXULQJFKDUJHVDVVRFLDWHGZLWKLWV,QYLJRUDWH SURJUDPDQGRWKHUUHVWUXFWXULQJ...
-
Page 85
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in millions unless otherwise indicated) 5. BUSINESS ACQUISITIONS 2014 Acquisitions Acquisition of Solstas Lab Partners Group 2Q0DUFKWKH&RPSDQ\FRPSOHWHGLWVDFTXLVLWLRQRI6ROVWDV/...
-
Page 86
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in ...HDOWKGHVFULEHGDERYH Solstas &DVK (VWLPDWHGIDLUYDOXHRIFRQWLQJHQWFRQVLGHUDWLRQ 7UDQVDFWLRQUHODWHGFRVWVGXHWRVHOOHUV 7RWDOFRQVLGHUDWLRQ ² ² Summit Health ...
-
Page 87
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in millions unless otherwise indicated) Solstas Weighted Average Useful Life (in years) Summit Health Weighted Average Useful Life (in years)
Allocation of purchase...DVSDUWRIWKH6ROVWDVDQG...
-
Page 88
...ZHUHQRWPDWHULDOWRWKH &RPSDQ\¶VFRQVROLGDWHGILQDQFLDOVWDWHPHQWV 2014
XQDXGLWHG
2013
3URIRUPDQHWUHYHQXHV 3URIRUPDLQFRPHIURPFRQWLQXLQJRSHUDWLRQV Earnings per share attributable to Quest Diagnostics' common stockholders - basic: 3URIRUPDLQFRPHIURPFRQWLQXLQJ...
-
Page 89
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in millions unless otherwise indicated) 7. FAIR VALUE MEASUREMENTS
7KHIROORZLQJWDEOHSURYLGHVDVXPPDU\RI...December 31, 2014 $VVHWV 7UDGLQJVHFXULWLHV &DVKVXUUHQGHUYDOXHRIOLIHLQVXUDQFH...
-
Page 90
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (...REWDLQHGIURP TXRWHGSULFHVLQDQDFWLYHPDUNHW ,QFRQQHFWLRQZLWKWKHDFTXLVLWLRQRIFHUWDLQEXVLQHVVHVRI80DVVWKH&RPSDQ\JUDQWHGWR80DVVDFDOORSWLRQDQG 80DVVJUDQWHGWRWKH&RPSDQ...
-
Page 91
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in millions unless otherwise indicated) 7KHIROORZLQJWDEOHSURYLGHVDUHFRQFLOLDWLRQRIWKHEHJLQQLQJDQGHQGLQJEDODQFHVRI... Balance, December 31, 2014 Call Option Derivative Liability
...
-
Page 92
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - ...RIUR\DOW\ULJKWV)RUIXUWKHUGHWDLOVUHJDUGLQJWKHVDOHRIUR\DOW\ULJKWVVHH1RWH 7KHFRPSRQHQWVRILQFRPHWD[H[SHQVHIURPFRQWLQXLQJRSHUDWLRQVIRUDQGZHUHDVIROORZV 2014...
-
Page 93
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in millions unless otherwise indicated) 7KHWD[HIIHFWVRIWHPSRUDU\GLIIHUHQFHVWKDWJLYHULVHWRVLJQLILFDQWSRUWLRQVRIWKHGHIHUUHGWD[DVVHWV OLDELOLWLHV DW 'HFHPEHUDQG...
-
Page 94
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in millions unless otherwise indicated) 7KHFRQWLQJHQWOLDELOLWLHVIRUWD[SRVLWLRQVSULPDULO\UHODWHWRXQFHUWDLQWLHVDVVRFLDWHGZLWKWKHUHDOL]DWLRQRIWD[ EHQHILWVGHULYHGIURPWKH...
-
Page 95
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in millions unless otherwise indicated) 9. SUPPLEMENTAL CASH FLOW & OTHER DATA 6XSSOHPHQWDOFDVKIORZGDWDIRUWKH\HDUVHQGHG'HFHPEHUDQGZDVDVIROORZV 2014 '...
-
Page 96
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in millions unless otherwise indicated) 10. PROPERTY, PLANT AND EQUIPMENT 3URSHUW\SODQWDQGHTXLSPHQWDW'HFHPEHUDQGFRQVLVWHGRIWKHIROORZLQJ 2014 /DQG %XLOGLQJVDQG...
-
Page 97
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in millions unless otherwise indicated) ,QWDQJLEOHDVVHWVDW'HFHPEHUDQGFRQVLVWHGRIWKHIROORZLQJ Weighted Average Amortization Period (Years) Cost Amortizing intangible assets...
-
Page 98
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in millions unless otherwise indicated) 12. ACCOUNTS PAYABLE AND ACCRUED EXPENSES $FFRXQWVSD\DEOHDQGDFFUXHGH[SHQVHVDW'HFHPEHUDQGFRQVLVWHGRIWKHIROORZLQJ 2014 7UDGH...
-
Page 99
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in ...EDVLVSRLQWVWREDVLVSRLQWVEDVHGRQFKDQJHVLQWKH&RPSDQ\
VSXEOLFGHEWUDWLQJV$WWKHRSWLRQRIWKH&RPSDQ\LWPD\ HOHFWWRORFNLQWR/,%25EDVHGLQWHUHVWUDWHVIRUSHULRGVXSWR...
-
Page 100
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES ...ILYH\HDU86WUHDVXU\UDWHVUHODWHGWRWKHSODQQHGLVVXDQFHRIGHEW VHFXULWLHVLQ,QFRQQHFWLRQZLWKWKH&RPSDQ\
...Amount 2014 2013 ²
,QSULRU\HDUVWKH&RPSDQ\HQWHUHGLQWRYDULRXVIL[HG...
-
Page 101
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in millions unless otherwise indicated)
$VXPPDU\RIWKHIDLUYDOXHVRIGHULYDWLYHLQVWUXPHQWVLQWKHFRQVROLGDWHGEDODQFHVKHHWVLVVWDWHGLQWKHWDEOHEHORZ
December 31, 2014 December 31,...
-
Page 102
QUEST DIAGNOSTICS ...IURPDFFXPXODWHG RWKHUFRPSUHKHQVLYHORVV 1HWFXUUHQWSHULRGRWKHUFRPSUHKHQVLYH ORVV Balance, December 31, 2014 ² ² ...VKDUH 2Q-DQXDU\ WKH&RPSDQ\
V%RDUGRI'LUHFWRUVDXWKRUL]HGDQLQFUHDVHLQLWVTXDUWHUO\GLYLGHQG...
-
Page 103
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in millions unless otherwise indicated) ,Q-DQXDU\WKH&RPSDQ\¶V%RDUGRI'LUHFWRUVDXWKRUL]HGWKH&RPSDQ\WRUHSXUFKDVHDQDGGLWLRQDOELOOLRQRI WKH&RPSDQ\¶VFRPPRQVWRFN...
-
Page 104
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in millions...DVVXPSWLRQVXVHGLQYDOXLQJRSWLRQVJUDQWHGLQWKHSHULRGV SUHVHQWHGDUH 2014 :HLJKWHGDYHUDJHIDLUYDOXHRIRSWLRQVDWJUDQWGDWH ([SHFWHGYRODWLOLW\ 'LYLGHQG\LHOG 5LVNIUHH...
-
Page 105
QUEST DIAGNOSTICS...WKHODVWWUDGLQJGD\RIDQGWKHH[HUFLVHSULFHPXOWLSOLHGE\WKHQXPEHURILQ WKHPRQH\...SHUIRUPDQFHVKDUHXQLWVIRUDQG 2014
Shares (in millions) Weighted Average...HQGHG'HFHPEHU DQGUHVSHFWLYHO\ Employee Stock Purchase Plan 8QGHUWKH&RPSDQ...
-
Page 106
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in ...RPSDQ\PDWFKLQJDPRXQWVDUHFUHGLWHGZLWKHDUQLQJVRUORVVHVPHDVXUHGE\WKHPLUURUHGUDWHRIUHWXUQRQ LQYHVWPHQWVHOHFWHGE\SODQSDUWLFLSDQWV(DFKSODQSDUWLFLSDQWLVIXOO\YHVWHG...
-
Page 107
...
V0HGLFDLGSURJUDP7KH &RPSDQ\FRRSHUDWHGZLWKWKHUHTXHVWV,Q-DQXDU\WKH6WDWHRI0LFKLJDQLQWHUYHQHGDVDSODLQWLIILQDFLYLOODZVXLW Michigan ex rel. Hunter Laboratories LLC v. Quest Diagnostics Incorporated, et al.ILOHGLQ0LFKLJDQ6XSHULRU&RXUW7KH VXLWRULJLQDOO\ILOHG...
-
Page 108
...ORULGD¶V0HGLFDLGSURJUDP7KH&RPSDQ\FRRSHUDWHG ZLWKWKHUHTXHVWV,Q1RYHPEHUWKH6WDWHRI)ORULGDLQWHUYHQHGDVDSODLQWLIILQDFLYLOODZVXLWFlorida ex rel. Hunter Laboratories LLC v. Quest Diagnostics Incorporated, et al.ILOHGLQ)ORULGD&LUFXLW&RXUW7KHVXLWRULJLQDOO\ILOHG...
-
Page 109
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES...&RPSDQ\LVHVVHQWLDOO\VHOILQVXUHGIRUDVLJQLILFDQWSRUWLRQRIWKHVHFODLPV5HVHUYHVIRUVXFK PDWWHUVLQFOXGLQJWKRVH...IRUWKHGLVFRQWLQXHGRSHUDWLRQVLVVHWIRUWKEHORZ 2014 1HWUHYHQXHV ,QFRPH ORVV IURPGLVFRQWLQXHGRSHUDWLRQVEHIRUHWD...
-
Page 110
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (in ...RISUHWD[JDLQRQWKHVDOHRIWKHLEUXWLQLEUR\DOW\ULJKWVDQGWKHSUHWD[ORVVRQWKHVDOHRI(QWHUL[ VHH1RWH 7KHDFFRXQWLQJSROLFLHVRIWKHVHJPHQWVDUHWKHVDPHDVWKRVHRI...
-
Page 111
... interests Net income attributable to Quest Diagnostics
2013
2012
2014 'HSUHFLDWLRQDQGDPRUWL]DWLRQ ...IRUZRUN SHUIRUPHG 2Q-DQXDU\ WKH&RPSDQ\
V%RDUGRI'LUHFWRUVDXWKRUL]HGDQLQFUHDVHLQLWVTXDUWHUO\GLYLGHQGIURP SHU...
-
Page 112
...DWWULEXWDEOHWR4XHVW'LDJQRVWLFV Amounts attributable to Quest Diagnostics' stockholders: ,QFRPHIURPFRQWLQXLQJRSHUDWLRQV ,QFRPHIURPGLVFRQWLQXHGRSHUDWLRQVQHWRIWD[HV 1HWLQFRPH Earnings per share attributable to Quest Diagnostics' stockholders - basic: ,QFRPHIURPFRQWLQXLQJRSHUDWLRQV...
-
Page 113
...DWWULEXWDEOHWR4XHVW'LDJQRVWLFV Amounts attributable to Quest Diagnostics' stockholders: ,QFRPHIURPFRQWLQXLQJRSHUDWLRQV ,QFRPHIURPGLVFRQWLQXHGRSHUDWLRQVQHWRIWD[HV 1HWLQFRPH Earnings per share attributable to Quest Diagnostics' stockholders - basic: ,QFRPHIURPFRQWLQXLQJRSHUDWLRQV...
-
Page 114
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES Quarterly Operating Results (unaudited) (in millions, except per share data) PLOOLRQDVVRFLDWHGZLWKDGHFUHDVHLQWKHIDLUYDOXHRIWKHFRQWLQJHQWFRQVLGHUDWLRQDFFUXDODVVRFLDWHGZLWKWKH6XPPLW +HDOWKDFTXLVLWLRQ,QFRPHIURPFRQWLQXLQJ...
-
Page 115
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES SCHEDULE II - VALUATION ACCOUNTS AND RESERVES (in ...
Balance at 12-31-12
D
D 3ULPDULO\UHSUHVHQWVWKHZULWHRIIRIDFFRXQWVUHFHLYDEOHQHWRIUHFRYHULHV
)
48(67',$*1267,&6)250.
-
Page 116
...COMMISSION Washington, D.C. 20549 EXHIBITS TO FORM 10-K For the fiscal year ended December 31, 2014 Commission File No. 001-12215 QUEST DIAGNOSTICS INCORPORATED Exhibit Number Description 5HVWDWHG&HUWLILFDWHRI,QFRUSRUDWLRQ ILOHGDVDQ([KLELWWRWKH&RPSDQ\
VFXUUHQWUHSRUWRQ)RUP. 'DWH...
-
Page 117
...IRUWKHTXDUWHUHQGHG0DUFKDQGLQFRUSRUDWHGKHUHLQE\ UHIHUHQFH &RPPLVVLRQ)LOH1XPEHU 6L[WK6XSSOHPHQWDO,QGHQWXUHGDWHGDVRI2FWREHUDPRQJWKH&RPSDQ\7KH%DQNRI1HZ
-
Page 118
...VTXDUWHUO\ 5HSRUWRQ)RUP4IRUWKHTXDUWHUHQGHG0DUFKDQGLQFRUSRUDWHGKHUHLQE\UHIHUHQFH &RPPLVVLRQ )LOH1XPEHU )RUPRI(TXLW\$ZDUG$JUHHPHQWGDWHGDVRI$XJXVW ILOHGDVDQ([KLELWWRWKH&RPSDQ\
VTXDUWHUO\ 5HSRUWRQ)RUP4IRUWKHTXDUWHUHQGHG6HSWHPEHU...
-
Page 119
...JUHHPHQW ILOHGDVDQ([KLELWWRWKH&RPSDQ\
VDQQXDO UHSRUWRQ)RUP.DQGLQFRUSRUDWHGKHUHLQE\UHIHUHQFH &RPPLVVLRQ)LOH1XPEHU )RUPRI1RQ(PSOR\HH'LUHFWRU(OHFWLYH2SWLRQ$ZDUG$JUHHPHQW ILOHGDVDQ([KLELWWRWKH&RPSDQ\
V DQQXDOUHSRUWRQ)RUP.DQGLQFRUSRUDWHG...
-
Page 120
à )LOHGKHUHZLWK )XUQLVKHGKHUHZLWK
0DQDJHPHQWFRQWUDFWRUFRPSHQVDWRU\SODQRUDUUDQJHPHQWUHTXLUHGWREHILOHGDVDQH[KLELWWRWKLV)RUP. SXUVXDQWWR,WHP E RI)RUP.
48(67',$*1267,&6)250.
(
-
Page 121
RRD MI4531
The SFI label applies to the text stock
