BUSINESS SEGMENT INFORMATION

The Company's DIS business provides insights through clinical testing and related services to a broad range of customers, including patients, clinicians, hospitals, IDNs, health plans, employers and ACOs. The Company is the world's leading provider of diagnostic information services, which includes providing clinical testing services such as routine testing, non-routine (including advanced diagnostics) testing, and anatomic pathology services, as well as related services and insights. The DIS business accounted for greater than 90% of net revenues in 2017 and 2016.

All other operating segments include the Company's DS businesses, which consists of its risk assessment services, healthcare information technology and diagnostic products (prior to disposition on May 13, 2016) businesses. The Company's DS businesses offer a variety of solutions for life insurers and healthcare providers.

As of June 30, 2017, substantially all of the Company’s services were provided within the United States, and substantially all of the Company’s assets were located within the United States.

The following table is a summary of segment information for the three and six months ended June 30, 2017 and 2016. 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, gain on the disposition of business, and other operating income and expenses net of certain general corporate activity costs that are allocated to the DIS and DS businesses. The accounting policies of the segments are the same as those of the Company as set forth in Note 2 to the consolidated financial statements contained in the Company’s 2016 Annual Report on Form 10-K and Note 2 to the interim unaudited consolidated financial statements.



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Net revenues:
DIS business	$	1,855		$	1,809		$	3,667		$	3,565
All other operating segments	88			97			175			204
Total net revenues	$	1,943		$	1,906		$	3,842		$	3,769

Operating earnings (loss):
DIS business	$	347		$	328		$	653		$	606
All other operating segments	17			17			30			38
General corporate activities	(45		)	77			(85		)	35
Total operating income	319			422			598			679
Non-operating expenses, net	(27		)	(39		)	(60		)	(124		)
Income before income taxes and equity in earnings of equity method investees	292			383			538			555
Income tax expense	(94		)	(183		)	(172		)	(250		)
Equity in earnings of equity method investees, net of taxes	9			9			16			19
Net income	207			209			382			324
Less: Net income attributable to noncontrolling interests	14			14			25			26
Net income attributable to Quest Diagnostics	$	193		$	195		$	357		$	298