Quest Diagnostics 2015 Annual Report Download - page 117

Download and view the complete annual report

Please find page 117 of the 2015 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 129

  • 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
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129

QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED
(in millions unless otherwise indicated)
F- 42
Income from discontinued operations, net of taxes for the year ended December 31, 2013 includes a gain of $14
million (including foreign currency translation adjustments, partially offset by income tax expense and transaction costs)
associated with the sale of HemoCue. In addition, income from discontinued operations, net of taxes for the year ended
December 31, 2013, included discrete tax benefits of $20 million associated with favorable resolution of certain tax
contingencies related to our NID business.
Summarized financial information for the discontinued operations is set forth below:
2015 2014 2013
Net revenues $ — $ — $ 28
Income from discontinued operations before taxes — 1 25
Income tax benefit — (4)(10)
Income from discontinued operations, net of taxes $ — $ 5 $ 35
The remaining balance sheet information related to NID was not material at December 31, 2015 and 2014.
19. BUSINESS SEGMENT INFORMATION
The Company's DIS business provides insights through clinical testing and related services to patients, physicians,
hospitals, ACOs, IDNs, health plans, employers and others. The Company is the world's leading provider of diagnostic
information services, which includes providing clinical testing services such as routine (including drugs-of-abuse) testing, gene-
based and esoteric testing, and anatomic pathology services, as well as related services and insights. The DIS business
accounted for greater than 90% of net revenues from continuing operations in 2015, 2014 and 2013.
All other operating segments include the Company's DS businesses, which consists of its risk assessment services,
clinical trials testing, diagnostic products and healthcare information technology businesses (see Note 6 regarding the
contribution of the clinical trials testing business to a newly formed joint venture effective July 1, 2015 and non-core assets held
for sale). The Company's DS businesses offer a variety of solutions for life insurers, healthcare providers and others.
During 2015, the Company acquired certain operations of MemorialCare and Superior Mobile Medics (see Note 5).
MemorialCare is included in the Company's DIS business. Superior Mobile Medics is included in all other operating segments.
During 2014, the Company acquired Solstas, Summit Health and Steward which are included in the Company's DIS
business.
During 2013, the Company acquired certain operations of UMass, ATN, Dignity and ConVerge which 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.
On April 19, 2006, the Company decided to discontinue NID’s operations. The Company completed the sale of
HemoCue in the second quarter of 2013. The results of operations for NID and HemoCue have been classified as discontinued
operations for all periods presented (see Note 18).
At December 31, 2015, 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, 2015, 2014 and 2013.
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 (loss) for the segment. General corporate activities included in the table below are comprised of general
management and administrative corporate expenses, amortization and impairment of intangibles assets, other operating income
and expenses net of certain general corporate activity costs that are allocated to the DIS and DS businesses, and the third
quarter of 2015 pre-tax gain on contribution of business to joint venture (see Note 6), the third quarter of 2013 pre-tax gain on
QUEST DIAGNOSTICS 2015 ANNUAL REPORT ON FORM 10-K