BUSINESS SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2019

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 95% of net revenues in 2019 and 2018.

All other operating segments include the Company's DS businesses, which consist of its risk assessment services and healthcare information technology businesses. The Company's DS businesses are the leading provider of risk assessment services for the life insurance industry and offer healthcare organizations and clinicians robust information technology solutions.

As of June 30, 2019, 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, 2019 and 2018. 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 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 2018 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,
	2019			2018			2019			2018
Net revenues:
DIS business	$	1,872		$	1,835		$	3,684		$	3,638
All other operating segments	81			84			160			165
Total net revenues	$	1,953		$	1,919		$	3,844		$	3,803

Operating earnings (loss):
DIS business	$	338		$	341		$	618		$	649
All other operating segments	12			11			21			22
General corporate activities	(43		)	(47		)	(84		)	(94		)
Total operating income	307			305			555			577
Non-operating expenses, net	(42		)	(41		)	(77		)	(84		)
Income from continuing operations before income taxes and equity in earnings of equity method investees	265			264			478			493
Income tax expense	(63		)	(42		)	(113		)	(94		)
Equity in earnings of equity method investees, net of taxes	17			11			30			23
Income from continuing operations	219			233			395			422
Income from discontinued operations, net of taxes	20			—			20			—
Net income	239			233			415			422
Less: Net income attributable to noncontrolling interests	13			14			25			26
Net income attributable to Quest Diagnostics	$	226		$	219		$	390		$	396