Quest Diagnostics 2014 Annual Report Download - page 48
Download and view the complete annual report
Please find page 48 of the 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.
TXDUWHURIXQGHUDSURJUDPRIIHUHGWRFRPSDQLHVZKRVHSULQFLSDOSODFHRIEXVLQHVVZDVLQVWDWHVPRVWDIIHFWHGE\
+XUULFDQH6DQG\
1HWFDVKSURYLGHGE\LQYHVWLQJDFWLYLWLHVLQFOXGHVSURFHHGVIURPWKHVDOHRIWKHLEUXWLQLEUR\DOW\ULJKWVRIPLOOLRQQHW
RIWUDQVDFWLRQFRVWVDVZHOODVSURFHHGVIURPWKHVDOHVRI+HPR&XHDQG(QWHUL[RIPLOOLRQ
H 2Q-DQXDU\ZHFRPSOHWHGWKHDFTXLVLWLRQRI6('0HGLFDO/DERUDWRULHV6('IURP/RYHODFH+HDOWK
6\VWHP&RQVROLGDWHGRSHUDWLQJUHVXOWVIRULQFOXGHWKHUHVXOWVRIRSHUDWLRQVRI6('VXEVHTXHQWWRWKHFORVLQJRI
WKHDFTXLVLWLRQ6HH1RWHWRWKHFRQVROLGDWHGILQDQFLDOVWDWHPHQWV
I 2SHUDWLQJLQFRPHLQFOXGHVPLOOLRQRISUHWD[FKDUJHVLQFXUUHGLQFRQMXQFWLRQZLWKIXUWKHUUHVWUXFWXULQJDQG
LQWHJUDWLQJRXUEXVLQHVV5HVXOWVIRUDOVRLQFOXGHSUHWD[FKDUJHVRIPLOOLRQSULQFLSDOO\UHSUHVHQWLQJVHYHUDQFH
DQGRWKHUVHSDUDWLRQEHQHILWVDVZHOODVDFFHOHUDWHGYHVWLQJRIFHUWDLQHTXLW\DZDUGVLQFRQQHFWLRQZLWKWKHVXFFHVVLRQRI
RXUSULRU&(2,QDGGLWLRQZHHVWLPDWHWKDWWKHLPSDFWRIVHYHUHZHDWKHUGXULQJWKHIRXUWKTXDUWHURIDGYHUVHO\
DIIHFWHGRSHUDWLQJLQFRPHIRUE\DSSUR[LPDWHO\PLOOLRQ
,QFRPHORVVIURPGLVFRQWLQXHGRSHUDWLRQVQHWRIWD[HVLQFOXGHVFKDUJHVIRUWKHDVVHWLPSDLUPHQWDVVRFLDWHGZLWK
+HPR&XHDQGWKHORVVRQVDOHDVVRFLDWHGZLWK2UDO'1$WRWDOLQJPLOOLRQ'LVFRQWLQXHGRSHUDWLRQVDOVRLQFOXGHVD
PLOOLRQLQFRPHWD[H[SHQVHUHODWHGWRWKHUHYDOXDWLRQRIGHIHUUHGWD[DVVHWVDVVRFLDWHGZLWK+HPR&XHDQGDPLOOLRQ
LQFRPHWD[EHQHILWUHODWHGWRWKHUHPHDVXUHPHQWRIGHIHUUHGWD[HVDVVRFLDWHGZLWK+HPR&XHDVDUHVXOWRIDQHQDFWHG
LQFRPHWD[UDWHFKDQJHLQ6ZHGHQ,Q)HEUXDU\ZHHQWHUHGLQWRDQDJUHHPHQWWRVHOO+HPR&XH7KHVDOHRI
+HPR&XHZDVFRPSOHWHGLQ$SULO6HH1RWHWRWKHFRQVROLGDWHGILQDQFLDOVWDWHPHQWVIRUIXUWKHUGHWDLOV
1HWFDVKSURYLGHGE\RSHUDWLQJDFWLYLWLHVLQFOXGHVUHFHLSWVRIPLOOLRQIURPWKHWHUPLQDWLRQRIFHUWDLQLQWHUHVWUDWHVZDS
DJUHHPHQWVDQGWKHGHIHUUDORIDSSUR[LPDWHO\PLOOLRQRILQFRPHWD[SD\PHQWVLQWRWKHILUVWTXDUWHURIZKLFKZDV
RIIHUHGWRFRPSDQLHVZKRVHSULQFLSDOSODFHRIEXVLQHVVZDVLQVWDWHVPRVWDIIHFWHGE\+XUULFDQH6DQG\
J 2Q$SULOZHFRPSOHWHGWKHDFTXLVLWLRQRI$WKHQD'LDJQRVWLFV³$WKHQD´2Q0D\ZHFRPSOHWHGWKH
DFTXLVLWLRQRI&HOHUD&RUSRUDWLRQ³&HOHUD´&RQVROLGDWHGRSHUDWLQJUHVXOWVIRULQFOXGHWKHUHVXOWVRIRSHUDWLRQVRI
$WKHQDDQG&HOHUDVXEVHTXHQWWRWKHFORVLQJRIWKHDSSOLFDEOHDFTXLVLWLRQ
K 2SHUDWLQJLQFRPHLQFOXGHVDSUHWD[FKDUJHWRHDUQLQJVLQWKHILUVWTXDUWHURIRIPLOOLRQZKLFKUHSUHVHQWHGWKH
FRVWWRUHVROYHDSUHYLRXVO\GLVFORVHGFLYLOODZVXLWEURXJKWE\D&DOLIRUQLDFRPSHWLWRULQZKLFKWKH6WDWHRI&DOLIRUQLD
LQWHUYHQHGWKH³&DOLIRUQLD/DZVXLW´$OVRLQFOXGHVPLOOLRQRISUHWD[FKDUJHVLQFXUUHGLQFRQMXQFWLRQZLWKIXUWKHU
UHVWUXFWXULQJDQGLQWHJUDWLQJRXUEXVLQHVVFRQVLVWLQJRIPLOOLRQRISUHWD[FKDUJHVSULQFLSDOO\DVVRFLDWHGZLWK
ZRUNIRUFHUHGXFWLRQVZLWKWKHUHPDLQGHUSULQFLSDOO\SURIHVVLRQDOIHHV5HVXOWVIRUDOVRLQFOXGHPLOOLRQRISUH
WD[WUDQVDFWLRQFRVWVSULPDULO\UHODWHGWRSURIHVVLRQDOIHHVDVVRFLDWHGZLWKWKHDFTXLVLWLRQVRI$WKHQDDQG&HOHUD,Q
DGGLWLRQRSHUDWLQJLQFRPHLQFOXGHVSUHWD[FKDUJHVRIPLOOLRQSULQFLSDOO\UHSUHVHQWLQJVHYHUDQFHDQGRWKHUVHSDUDWLRQ
EHQHILWVDVZHOODVDFFHOHUDWHGYHVWLQJRIFHUWDLQHTXLW\DZDUGVLQFRQQHFWLRQZLWKWKHVXFFHVVLRQRIRXUSULRU&(2,Q
DGGLWLRQZHHVWLPDWHWKDWWKHLPSDFWRIVHYHUHZHDWKHUGXULQJWKHILUVWTXDUWHURIDGYHUVHO\DIIHFWHGRSHUDWLQJLQFRPH
IRUE\PLOOLRQ
,QFRPHIURPFRQWLQXLQJRSHUDWLRQVLQFOXGHVPLOOLRQRISUHWD[ILQDQFLQJUHODWHGWUDQVDFWLRQFRVWVDVVRFLDWHGZLWKWKH
DFTXLVLWLRQRI&HOHUDDPLOOLRQSUHWD[JDLQDVVRFLDWHGZLWKWKHVDOHRIDQLQYHVWPHQWDQGPLOOLRQRIGLVFUHWH
LQFRPHWD[EHQHILWVSULPDULO\DVVRFLDWHGZLWKFHUWDLQVWDWHWD[SODQQLQJLQLWLDWLYHVDQGWKHIDYRUDEOHUHVROXWLRQRIFHUWDLQ
WD[FRQWLQJHQFLHV
1HWFDVKSURYLGHGE\RSHUDWLQJDFWLYLWLHVLQFOXGHVSD\PHQWVDVVRFLDWHGZLWKWKHVHWWOHPHQWRIWKH&DOLIRUQLD/DZVXLW
UHVWUXFWXULQJDQGLQWHJUDWLRQFRVWVDQGWUDQVDFWLRQFRVWVDVVRFLDWHGZLWKWKHDFTXLVLWLRQVRI$WKHQDDQG&HOHUDWRWDOLQJ
PLOOLRQRUPLOOLRQQHWRIDQDVVRFLDWHGUHGXFWLRQLQHVWLPDWHGWD[SD\PHQWV
L 2SHUDWLQJLQFRPHLQFOXGHVPLOOLRQRIFRVWVSULQFLSDOO\DVVRFLDWHGZLWKZRUNIRUFHUHGXFWLRQVDQGPLOOLRQRIFRVWV
DVVRFLDWHGZLWKWKHVHWWOHPHQWRIHPSOR\PHQWOLWLJDWLRQ,QDGGLWLRQZHHVWLPDWHWKDWWKHLPSDFWRIVHYHUHZHDWKHUGXULQJ
WKHILUVWTXDUWHURIDGYHUVHO\DIIHFWHGRSHUDWLQJLQFRPHIRUE\PLOOLRQ
,QFRPHIURPFRQWLQXLQJRSHUDWLRQVLQFOXGHVGLVFUHWHLQFRPHWD[EHQHILWVRIPLOOLRQSULPDULO\DVVRFLDWHGZLWK
IDYRUDEOHUHVROXWLRQVRIFHUWDLQWD[FRQWLQJHQFLHV
48(67',$*1267,&6)250
.