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BUSINESS SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2017
Segment Reporting [Abstract] |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION The Company's DIS business is the only reportable segment based on the manner in which the Chief Executive Officer, who is the Company's chief operating decision maker ("CODM"), assesses performance and allocates resources across the organization. The DIS business provides diagnostic information 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 information and insights based on the industry-leading menu of routine, non-routine and advanced clinical testing and anatomic pathology testing, and other diagnostic information services. The DIS business accounted for greater than 90% of net revenues in 2017, 2016 and 2015. All other operating segments include the Company's DS businesses, which consists of its risk assessment services, healthcare information technology, diagnostic products (prior to disposition on May 13, 2016), and clinical trials testing (prior to the formation of the Q 2 Solutions joint venture on July 1, 2015) businesses. The Company's DS businesses offer a variety of solutions for life insurers and healthcare organizations and clinicians. In addition to the sale of Focus Diagnostics (see Note 6) in 2016, the Company wound down its Celera products business, which did not have a material impact on the Company's consolidated financial statements. As a result of these transactions, the Company has disposed of its diagnostics products business. As of December 31, 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 years ended December 31, 2017, 2016 and 2015. Segment asset information is not presented since it is not used by the CODM 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 gains on disposition of businesses associated with the dispositions of Focus Diagnostics and Clinical Trials (see Note 6). The accounting policies of the segments are the same as those of the Company as set forth in Note 2.
| 2017 |  | 2016 |  | 2015
Net revenues: |  |  |  |  |  |  |
DIS business | $ | 7,370 |  |  | $ | 7,138 |  |  | $ | 6,965 |
All other operating segments | 339 |  |  | 377 |  |  | 528 |
Total net revenues | $ | 7,709 |  |  | $ | 7,515 |  |  | $ | 7,493 |
Operating earnings (loss): |  |  |  |  |  |  |
DIS business | $ | 1,313 |  |  | $ | 1,244 |  |  | $ | 1,118 |
All other operating segments | 52 |  |  | 64 |  |  | 110 |
General corporate activities | (200 | ) |  | (31 | ) |  | 171 |
Total operating income | 1,165 |  |  | 1,277 |  |  | 1,399 |
Non-operating expenses, net | (135 | ) |  | (191 | ) |  | (296 | )
Income before income taxes and equity in earnings of equity method investees | 1,030 |  |  | 1,086 |  |  | 1,103 |
Income tax expense | (241 | ) |  | (429 | ) |  | (373 | )
Equity in earnings of equity method investees, net of taxes | 35 |  |  | 39 |  |  | 23 |
Net income | 824 |  |  | 696 |  |  | 753 |
Less: Net income attributable to noncontrolling interests | 52 |  |  | 51 |  |  | 44 |
Net income attributable to Quest Diagnostics | $ | 772 |  |  | $ | 645 |  |  | $ | 709 |
Depreciation and amortization expense for the years ended December 31, 2017, 2016 and 2015 were as follows:
| 2017 |  | 2016 |  | 2015
DIS business | $ | 189 |  |  | $ | 170 |  |  | $ | 212 |
All other operating segments | 6 |  |  | 6 |  |  | 10 |
General corporate | 75 |  |  | 73 |  |  | 82 |
Total depreciation and amortization | $ | 270 |  |  | $ | 249 |  |  | $ | 304 |
Capital expenditures for the years ended December 31, 2017, 2016 and 2015 were as follows:
| 2017 |  | 2016 |  | 2015
DIS business | $ | 219 |  |  | $ | 264 |  |  | $ | 243 |
All other operating segments | 15 |  |  | 21 |  |  | 16 |
General corporate | 18 |  |  | 8 |  |  | 4 |
Total capital expenditures | $ | 252 |  |  | $ | 293 |  |  | $ | 263 |
Net revenues by major service for the years ended December 31, 2017, 2016 and 2015 were as follows:
| 2017 |  | 2016 |  | 2015
Routine clinical testing services | $ | 4,309 |  |  | $ | 4,179 |  |  | $ | 4,078 |
Gene-based and esoteric (including advanced diagnostics) testing services | 2,449 |  |  | 2,335 |  |  | 2,256 |
Anatomic pathology testing services | 612 |  |  | 624 |  |  | 631 |
All other | 339 |  |  | 377 |  |  | 528 |
Total net revenues | $ | 7,709 |  |  | $ | 7,515 |  |  | $ | 7,493 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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