Quest Diagnostics 2015 Annual Report Download - page 109

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QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED
(in millions unless otherwise indicated)
F- 34
A summary of the fair values of derivative instruments in the consolidated balance sheets is stated in the table below:
December 31, 2015 December 31, 2014
Balance Sheet
Classification Fair Value Balance Sheet
Classification Fair Value
Derivatives Designated as Hedging Instruments
Asset Derivatives:
Interest rate swaps Other assets $ 23 Other assets $ 17
Liability Derivatives:
Interest rate swaps Other liabilities 6 Other liabilities 13
Forward starting interest rate swaps — Other liabilities 15
Total Liability Derivatives 6 28
Derivatives Not Designated as Hedging Instruments
Asset Derivatives:
Put option —
Prepaid expenses and
other current assets 1
Liability Derivatives:
Call option —
Accounts payable and
accrued expenses 5
Total Net Derivatives Assets (Liabilities) $ 17 $(15)
15. STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTEREST
Stockholders' Equity
Series Preferred Stock
Quest Diagnostics is authorized to issue up to 10 million shares of Series Preferred Stock, par value $1.00 per share.
The Company's Board of Directors has the authority to issue such shares without stockholder approval and to determine the
designations, preferences, rights and restrictions of such shares. No shares are currently outstanding.
Common Stock
On May 4, 2006, the Company's Restated Certificate of Incorporation was amended to increase the number of
authorized shares of common stock, par value $0.01 per share, from 300 million shares to 600 million shares.
Changes in Accumulated Other Comprehensive Income (Loss) by Component
The market value adjustments represent unrealized holding gains (losses) on available-for-sale securities, net of taxes.
The net deferred loss on cash flow hedges represents deferred losses, net of taxes on the Company’s interest rate related
derivative financial instruments designated as cash flow hedges, net of amounts reclassified to interest expense (see Note 14).
For the years ended December 31, 2015, 2014 and 2013, the tax effects related to the market valuation adjustments, deferred
losses and other were not material. Foreign currency translation adjustments are not adjusted for income taxes since they relate
to indefinite investments in non-U.S. subsidiaries.
QUEST DIAGNOSTICS 2015 ANNUAL REPORT ON FORM 10-K