Quest Diagnostics 2014 Annual Report Download - page 52

Download and view the complete annual report

Please find page 52 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.

Page out of 121

  • 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

 

 :KLOHPDQ\RSHUDWLRQDODVSHFWVRIRXUEXVLQHVVDUHVXEMHFWWRFRPSOH[IHGHUDOVWDWHDQGORFDOUHJXODWLRQVWKH
DFFRXQWLQJIRUPRVWRIRXUEXVLQHVVLVJHQHUDOO\VWUDLJKWIRUZDUGZLWKQHWUHYHQXHVSULPDULO\UHFRJQL]HGXSRQFRPSOHWLRQRI
WKHWHVWLQJSURFHVV2XUUHYHQXHVDUHSULPDULO\FRPSULVHGRIDKLJKYROXPHRIUHODWLYHO\ORZGROODUWUDQVDFWLRQVDQGDERXW
RQHKDOIRIRXUWRWDOFRVWVDQGH[SHQVHVFRQVLVWRIHPSOR\HHFRPSHQVDWLRQDQGEHQHILWV'XHWRWKHQDWXUHRIRXUEXVLQHVV
VHYHUDORIRXUDFFRXQWLQJSROLFLHVLQYROYHVLJQLILFDQWHVWLPDWHVDQGMXGJPHQWV
 UHYHQXHVDQGDFFRXQWVUHFHLYDEOHDVVRFLDWHGZLWK',6
 UHVHUYHVIRUJHQHUDODQGSURIHVVLRQDOOLDELOLW\FODLPV
 UHVHUYHVIRURWKHUOHJDOSURFHHGLQJV
 DFFRXQWLQJIRUDQGUHFRYHUDELOLW\RIJRRGZLOODQG
 DFFRXQWLQJIRUVWRFNEDVHGFRPSHQVDWLRQH[SHQVH
Revenues and accounts receivable associated with DIS
 7KHSURFHVVIRUHVWLPDWLQJWKHXOWLPDWHFROOHFWLRQRIUHFHLYDEOHVDVVRFLDWHGZLWKRXU',6EXVLQHVVLQYROYHVVLJQLILFDQW
DVVXPSWLRQVDQGMXGJPHQWV:HSULPDULO\UHFRJQL]HUHYHQXHIRUVHUYLFHVUHQGHUHGXSRQFRPSOHWLRQRIWKHWHVWLQJSURFHVV
%LOOLQJVIRUVHUYLFHVUHLPEXUVHGE\WKLUGSDUW\SD\HUVLQFOXGLQJ0HGLFDUHDQG0HGLFDLGDUHJHQHUDOO\UHFRUGHGDVUHYHQXHV
QHWRIDOORZDQFHVIRUGLIIHUHQFHVEHWZHHQDPRXQWVELOOHGDQGWKHHVWLPDWHGUHFHLSWVIURPVXFKSD\HUV$GMXVWPHQWVWRWKH
DOORZDQFHVEDVHGRQDFWXDOUHFHLSWVIURPWKHWKLUGSDUW\SD\HUVDUHUHFRUGHGXSRQVHWWOHPHQWDVDQDGMXVWPHQWWRQHWUHYHQXHV
:HKDYHDVWDQGDUGL]HGDSSURDFKWRHVWLPDWHDQGUHYLHZWKHFROOHFWLELOLW\RIRXUUHFHLYDEOHVEDVHGRQDQXPEHURIIDFWRUV
LQFOXGLQJWKHSHULRGWKH\KDYHEHHQRXWVWDQGLQJ+LVWRULFDOFROOHFWLRQDQGSD\HUUHLPEXUVHPHQWH[SHULHQFHLVDQLQWHJUDOSDUW
RIWKHHVWLPDWLRQSURFHVVUHODWHGWRUHYHQXHVDQGDOORZDQFHVIRUGRXEWIXODFFRXQWV&KDQJHVWRWKHDOORZDQFHVIRUGRXEWIXO
DFFRXQWVHVWLPDWHVDUHUHFRUGHGDVDQDGMXVWPHQWWREDGGHEWH[SHQVHZLWKLQVHOOLQJJHQHUDODQGDGPLQLVWUDWLYHH[SHQVHV/HVV
WKDQRIRXUQHWDFFRXQWVUHFHLYDEOHDVRI'HFHPEHUZHUHRXWVWDQGLQJPRUHWKDQGD\V
 :HEHOLHYHWKDWWKHPDMRULW\RIRXUEDGGHEWH[SHQVHLVSULPDULO\WKHUHVXOWRIWKHIDLOXUHRISDWLHQWVWRSD\WKHSRUWLRQ
RIWKHUHFHLYDEOHWKDWLVWKHLUUHVSRQVLELOLW\WKHUHPDLQGHULVSULPDULO\WKHUHVXOWRIPLVVLQJRULQFRUUHFWELOOLQJLQIRUPDWLRQRQ
UHTXLVLWLRQV,QDGGLWLRQZHUHJXODUO\DVVHVVWKHVWDWHRIRXUELOOLQJRSHUDWLRQVLQRUGHUWRLGHQWLI\LVVXHVZKLFKPD\LPSDFW
WKHFROOHFWLELOLW\RIUHFHLYDEOHVRUDOORZDQFHHVWLPDWHV:HEHOLHYHWKDWWKHFROOHFWLELOLW\RIRXUUHFHLYDEOHVLVGLUHFWO\OLQNHGWR
WKHTXDOLW\RIRXUELOOLQJSURFHVVHVPRVWQRWDEO\WKRVHUHODWHGWRREWDLQLQJWKHFRUUHFWLQIRUPDWLRQLQRUGHUWRELOOHIIHFWLYHO\
IRUWKHVHUYLFHVZHSURYLGH$VVXFKZHFRQWLQXHWRLPSOHPHQW³EHVWSUDFWLFHV´DQGLQFUHDVHWKHXVHRIHOHFWURQLFRUGHULQJWR
UHGXFHWKHQXPEHURIUHTXLVLWLRQVWKDWZHUHFHLYHIURPKHDOWKFDUHSURYLGHUVZLWKPLVVLQJRULQFRUUHFWELOOLQJLQIRUPDWLRQ:H
EHOLHYHWKDWRXUFROOHFWLRQDQGDOORZDQFHHVWLPDWLRQSURFHVVHVDORQJZLWKRXUFORVHPRQLWRULQJRIRXUELOOLQJRSHUDWLRQVKHOS
WRUHGXFHWKHULVNDVVRFLDWHGZLWKPDWHULDODGMXVWPHQWVWRUHVHUYHHVWLPDWHV
 7KHIROORZLQJWDEOHVKRZVFXUUHQWHVWLPDWHVRIWKHSHUFHQWDJHRIRXUWRWDOYROXPHRIUHTXLVLWLRQVDQGQHWUHYHQXHV
DVVRFLDWHGZLWKRXU',6EXVLQHVVGXULQJDSSOLFDEOHWRHDFKSD\HUJURXS
% of % of
DIS DIS
Volume Revenues
+HDOWKFDUH,QVXUHUV  
*RYHUQPHQW3D\HUV  
&OLHQW3D\HUV  
3DWLHQWV  
Healthcare insurers
 5HLPEXUVHPHQWVIURPKHDOWKFDUHLQVXUHUVLQFOXGLQJSDWLHQWUHYHQXHVDVVRFLDWHGZLWKFRLQVXUDQFHDQGGHGXFWLEOH
UHVSRQVLELOLWLHVDUHEDVHGRQQHJRWLDWHGIHHIRUVHUYLFHVFKHGXOHVDQGRQFDSLWDWHGSD\PHQWUDWHV
 5HFHLYDEOHVGXHIURPKHDOWKFDUHLQVXUHUVUHSUHVHQWDSSUR[LPDWHO\RIRXU',6QHWDFFRXQWVUHFHLYDEOHDVRI
'HFHPEHU6XEVWDQWLDOO\DOORIWKHDFFRXQWVUHFHLYDEOHGXHIURPKHDOWKFDUHLQVXUHUVUHSUHVHQWDPRXQWVELOOHGXQGHU
QHJRWLDWHGIHHIRUVHUYLFHDUUDQJHPHQWV:HXWLOL]HDVWDQGDUGDSSURDFKWRHVWDEOLVKDOORZDQFHVIRUGRXEWIXODFFRXQWVIRUVXFK
UHFHLYDEOHVZKLFKFRQVLGHUVWKHDJLQJRIWKHUHFHLYDEOHVDQGUHVXOWVLQLQFUHDVHGDOORZDQFHUHTXLUHPHQWVDVWKHDJLQJRIWKH
UHODWHGUHFHLYDEOHVLQFUHDVHV2XUDSSURDFKDOVRFRQVLGHUVKLVWRULFDOFROOHFWLRQH[SHULHQFHDQGRWKHUIDFWRUV&ROOHFWLRQRI
VXFKUHFHLYDEOHVLVQRUPDOO\DIXQFWLRQRISURYLGLQJFRPSOHWHDQGFRUUHFWELOOLQJLQIRUPDWLRQWRWKHKHDOWKFDUHLQVXUHUVZLWKLQ
WKHYDULRXVILOLQJGHDGOLQHV)RUKHDOWKFDUHLQVXUHUVFROOHFWLRQW\SLFDOO\RFFXUVZLWKLQWRGD\VRIELOOLQJ3URYLGHGZH
48(67',$*1267,&6)250
.