Exhibit 99.1

QUEST DIAGNOSTICS REPORTS RECORD FOURTH QUARTER AND FULL YEAR 2019 REVENUES AND EARNINGS; PROVIDES GUIDANCE FOR FULL YEAR 2020; INCREASES DIVIDEND 5.7% to $0.56 PER QUARTER

•
Record fourth quarter revenues of $1.93 billion, up 4.8% versus 2018
•
Record fourth quarter diluted earnings per share from continuing operations ("EPS") of $1.86, up 101.2% from 2018 primarily due to a gain associated with the sale and leaseback of a property; and record adjusted diluted EPS of $1.67, up 23.7% from 2018
•
Record full year revenues of $7.73 billion, up 2.6% from 2018
•
Record full year diluted EPS of $6.13, up 15.9% from 2018 primarily due to the sale and leaseback of a property; and record adjusted diluted EPS of $6.56, up 4.0% from 2018
•
Record full year cash provided by operations of $1.24 billion, up 3.6% from 2018
•
Full year 2020 reported diluted EPS expected to be greater than $5.51, and adjusted diluted EPS to be greater than $6.60

SECAUCUS, N.J., January 30, 2020 - Quest Diagnostics Incorporated (NYSE: DGX), the world's leading provider of diagnostic information services, announced today financial results for the fourth quarter and full year ended December 31, 2019.

"We had a solid fourth quarter and ended the year by delivering record revenues, earnings and cash from operations,” said Steve Rusckowski, Chairman, CEO and President. “Strong volume growth from expanded health plan network access, combined with outstanding execution of our Operational Excellence strategy, helped us offset significant reimbursement pressure.
“Quest is well positioned once again in 2020 to deliver on our commitment to grow revenues and earnings. We have a strong value proposition that supports health care's triple aim of improving medical quality and the patient experience while reducing the cost of care. Our guidance for 2020 reflects our continued momentum, partially offset by yet another year of meaningful reimbursement pressure."
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2019
 
2018
 
Change
 
2019
 
2018
 
Change
 
(dollars in millions, except per share data)
Reported:
 
 
 
 
 
 
 
 
 
 
 
Net revenues
$
1,926

 
$
1,839

 
4.8
%
 
$
7,726

 
$
7,531

 
2.6
 %
Diagnostic information services revenues
$
1,844

 
$
1,756

 
5.1
%
 
$
7,405

 
$
7,204

 
2.8
 %
Revenue per requisition
 
 
 
 
1.2
%
 
 
 
 
 
(1.3
)%
Requisition volume
 
 
 
 
4.1
%
 
 
 
 
 
4.3
 %
Organic requisition volume
 
 
 
 
3.4
%
 
 
 
 
 
3.1
 %
Operating income (a)
$
363

 
$
220

 
65.1
%
 
$
1,231

 
$
1,101

 
11.8
 %
Operating income as a percentage of net revenues (a)
18.8
%
 
12.0
%
 
6.8
%
 
15.9
%
 
14.6
%
 
1.3
 %
Income from continuing operations attributable to Quest Diagnostics (a)
$
253

 
$
127

 
98.7
%
 
$
838

 
$
736

 
13.8
 %
Diluted EPS from continuing operations (a)
$
1.86

 
$
0.92

 
101.2
%
 
$
6.13

 
$
5.29

 
15.9
 %
Cash provided by operations
$
348

 
$
295

 
17.7
%
 
$
1,243

 
$
1,200

 
3.6
 %
Capital expenditures
$
172

 
$
151

 
14.2
%
 
$
400

 
$
383

 
4.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted (b):
 
 
 
 
 
 
 
 
 
 
 
Operating income
$
329

 
$
295

 
11.5
%
 
$
1,316

 
$
1,315

 
0.1
 %
Operating income as a percentage of net revenues
17.0
%
 
16.0
%
 
1.0
%
 
17.0
%
 
17.5
%
 
(0.5
)%
Income from continuing operations attributable to Quest Diagnostics
$
228

 
$
187

 
22.1
%
 
$
896

 
$
878

 
2.1
 %
Diluted EPS from continuing operations
$
1.67

 
$
1.36

 
23.7
%
 
$
6.56

 
$
6.31

 
4.0
 %

(a)
For further details impacting the year-over-year comparisons related to operating income, operating income as a percentage of net revenues, income from continuing operations attributable to Quest Diagnostics, and diluted EPS from continuing operations, see note 2 of the financial tables attached below.


1

(b)
Beginning in 2019, the company has changed how it presents adjusted income measures to additionally exclude amortization expense for all periods presented. We believe this presentation provides investors with additional insight to evaluate our performance period over period and relative to competitors, as well as to analyze the underlying trends in our business.

Dividend and Share Repurchase Authority Increased

Quest Diagnostics' Board of Directors authorized a 5.7% increase in its quarterly dividend from $0.53 to $0.56 per share, or $2.24 per share annually, payable on April 21, 2020 to shareholders of record of Quest Diagnostics common stock on April 7, 2020. This dividend increase is the company's ninth since 2011.

The Board also increased the company's share repurchase authorization by $1 billion, bringing the total authorization available to $1.2 billion as of December 31, 2019.

Guidance for Full Year 2020

The company estimates full year 2020 results as follows:

 
Low
 
High
Net revenues
$7.80 billion
 
$7.96 billion
Net revenues increase
1.0%
 
3.0%
Reported diluted EPS
Greater than $5.51
Adjusted diluted EPS
Greater than $6.60
Cash provided by operations
$1.25 billion
 
$1.30 billion
Capital expenditures
$375 million
 
$400 million

Note on Non-GAAP Financial Measures

As used in this press release the term “reported” refers to measures under accounting principles generally accepted in the United States (“GAAP”). The term “adjusted” refers to non-GAAP operating performance measures that exclude special items such as restructuring and integration charges, amortization expense, excess tax benefits ("ETB") associated with stock-based compensation, the gain associated with the sale and leaseback of a property, and other items.

Non-GAAP adjusted measures are presented because management believes those measures are useful adjuncts to GAAP results. Non-GAAP adjusted measures should not be considered as an alternative to the corresponding measures determined under GAAP. Management may use these non-GAAP measures to evaluate our performance period over period and relative to competitors, to analyze the underlying trends in our business, to establish operational budgets and forecasts and for incentive compensation purposes. We believe that these non-GAAP measures are useful to investors and analysts to evaluate our performance period over period and relative to competitors, as well as to analyze the underlying trends in our business and to assess our performance. The additional tables attached below include reconciliations of non-GAAP adjusted measures to GAAP measures.

Conference Call Information

Quest Diagnostics will hold its quarterly conference call to discuss financial results beginning at 8:30 a.m. Eastern Time today.  The conference call can be accessed by dialing 888-455-0391 within the U.S. and Canada, or 773-756-0467 internationally, passcode: Investor; or via live webcast on the company's website at www.QuestDiagnostics.com/investor. The company suggests participants dial in approximately 10 minutes before the call.

A replay of the call may be accessed online at www.QuestDiagnostics.com/investor or by phone at 866-357-4210 for domestic callers or 203-369-0125 for international callers. No passcode is required. Telephone replays will be available from approximately 10:30 a.m. Eastern Time on January 30, 2020 until midnight Eastern Time on February 13, 2020. Anyone listening to the call is encouraged to read the company's periodic reports, on file with the Securities and Exchange Commission, including the discussion of risk factors and historical results of operations and financial condition in those reports.

About Quest Diagnostics

Quest Diagnostics empowers people to take action to improve health outcomes.  Derived from the world’s largest database of clinical lab results, our diagnostic insights reveal new avenues to identify and treat disease, inspire healthy behaviors and improve health care management.  Quest annually serves one in three adult Americans and half the physicians and hospitals in the United States, and our

2

46,000 employees understand that, in the right hands and with the right context, our diagnostic insights can inspire actions that transform lives. www.QuestDiagnostics.com.

The statements in this press release which are not historical facts may be forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date that they are made and which reflect management’s current estimates, projections, expectations or beliefs and which involve risks and uncertainties that could cause actual results and outcomes to be materially different. Risks and uncertainties that may affect the future results of the company include, but are not limited to, adverse results from pending or future government investigations, lawsuits or private actions, the competitive environment, the complexity of billing, reimbursement and revenue recognition for clinical laboratory testing, changes in government regulations, changing relationships with customers, payers, suppliers or strategic partners and other factors discussed in the company's most recently filed Annual Report on Form 10-K and in any of the company's subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including those discussed in the “Business,” “Risk Factors,” “Cautionary Factors that May Affect Future Results” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of those reports.

For further information: Denny Moynihan, Quest Diagnostics (Media): 973-520-2800, Shawn Bevec, Quest Diagnostics (Investors): 973-520-2900

This earnings release, including the attached financial tables, is available online in the Newsroom section at www.QuestDiagnostics.com.

ADDITIONAL TABLES FOLLOW



3

Quest Diagnostics Incorporated and Subsidiaries
Consolidated Statements of Operations
For the Three and Twelve Months Ended December 31, 2019 and 2018
(in millions, except per share data)
(unaudited)
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2019
 
2018
 
2019
 
2018
Net revenues
$
1,926

 
$
1,839

 
$
7,726

 
$
7,531

 
 
 
 
 
 
 
 
Operating costs and expenses and other operating (income) expense:
 
 
 
 
 
 
 
Cost of services
1,264

 
1,235

 
5,037

 
4,926

Selling, general and administrative
349

 
356

 
1,457

 
1,424

Amortization of intangible assets
24

 
24

 
96

 
90

Other operating (income) expense, net
(74
)
 
4

 
(95
)
 
(10
)
Total operating costs and expenses, net
1,563

 
1,619

 
6,495

 
6,430

 
 
 
 
 
 
 
 
Operating income
363

 
220

 
1,231

 
1,101

 
 
 
 
 
 
 
 
Other (expense) income:
 
 
 
 
 
 
 
Interest expense, net
(42
)
 
(43
)
 
(175
)
 
(167
)
Other income (expense), net
7

 
(10
)
 
20

 
(8
)
Total non-operating expenses, net
(35
)
 
(53
)
 
(155
)
 
(175
)
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes and equity in earnings of equity method investees
328

 
167

 
1,076

 
926

Income tax expense
(72
)
 
(40
)
 
(247
)
 
(182
)
Equity in earnings of equity method investees, net of taxes
9

 
12

 
57

 
44

Income from continuing operations
265

 
139

 
886

 
788

Income from discontinued operations, net of taxes
—

 
—

 
20

 
—

Net income
265

 
139

 
906

 
788

Less: Net income attributable to noncontrolling interests
12

 
12

 
48

 
52

Net income attributable to Quest Diagnostics
$
253

 
$
127

 
$
858

 
$
736

 
 
 
 
 
 
 
 
Amounts attributable to Quest Diagnostics' common stockholders:
 
 
 
 
 
 
 
Income from continuing operations
$
253

 
$
127

 
$
838

 
$
736

Income from discontinued operations, net of taxes
—

 
—

 
20

 
—

Net income
$
253

 
$
127

 
$
858

 
$
736

 
 
 
 
 
 
 
 
Earnings per share attributable to Quest Diagnostics' common stockholders - basic:
 
 
 
 
 
 
 
Income from continuing operations
$
1.88

 
$
0.93

 
$
6.21

 
$
5.39

Income from discontinued operations
—

 
—

 
0.15

 
—

Net income
$
1.88

 
$
0.93

 
$
6.36

 
$
5.39

 
 
 
 
 
 
 
 
Earnings per share attributable to Quest Diagnostics' common stockholders - diluted:
 
 
 
 
 
 
 
Income from continuing operations
$
1.86

 
$
0.92

 
$
6.13

 
$
5.29

Income from discontinued operations
—

 
—

 
0.15

 
—

Net income
$
1.86

 
$
0.92

 
$
6.28

 
$
5.29

 
 
 
 
 
 
 
 
Weighted average common shares outstanding:
 
 
 
 
 
 
 
Basic
134

 
136

 
134

 
136

Diluted
136

 
137

 
136

 
139

 
 
 
 
 
 
 
 

4

Quest Diagnostics Incorporated and Subsidiaries
Consolidated Balance Sheets
December 31, 2019 and 2018
(in millions, except per share data)
(unaudited)
 
December 31, 2019
 
December 31, 2018
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
1,192

 
$
135

Accounts receivable, net
1,063

 
1,012

Inventories
123

 
99

Prepaid expenses and other current assets
112

 
144

Total current assets
2,490

 
1,390

Property, plant and equipment, net
1,453

 
1,288

Operating lease right-of-use assets
518

 
—

Goodwill
6,619

 
6,563

Intangible assets, net
1,121

 
1,207

Investment in equity method investees
482

 
436

Other assets
160

 
119

Total assets
$
12,843

 
$
11,003

 
 
 
 
Liabilities and Stockholders' Equity
 
 
 
Current liabilities:
 
 
 
Accounts payable and accrued expenses
$
1,041

 
$
1,021

Current portion of long-term debt
804

 
464

Current portion of long-term operating lease liabilities
145

 
—

Total current liabilities
1,990

 
1,485

Long-term debt
3,966

 
3,429

Long-term operating lease liabilities
413

 
—

Other liabilities
711

 
745

Redeemable noncontrolling interest
76

 
77

Stockholders' equity:
 
 
 
Quest Diagnostics stockholders' equity:
 
 
 
Common stock, par value $0.01 per share; 600 shares authorized as of both December 31, 2019 and 2018; 217 shares issued as of both December 31, 2019 and 2018
2

 
2

Additional paid-in capital
2,722

 
2,667

Retained earnings
8,174

 
7,602

Accumulated other comprehensive loss
(39
)
 
(59
)
Treasury stock, at cost; 84 shares and 82 shares as of December 31, 2019 and 2018, respectively
(5,218
)
 
(4,996
)
Total Quest Diagnostics stockholders' equity
5,641

 
5,216

Noncontrolling interests
46

 
51

Total stockholders' equity
5,687

 
5,267

Total liabilities and stockholders' equity
$
12,843

 
$
11,003




5

Quest Diagnostics Incorporated and Subsidiaries
Consolidated Statements of Cash Flows
For the Twelve Months Ended December 31, 2019 and 2018
(in millions)
(unaudited)
 
Twelve Months Ended December 31,
 
2019
 
2018
Cash flows from operating activities:
 
 
 
Net income
$
906

 
$
788

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
329

 
309

Provision for doubtful accounts
11

 
6

Deferred income tax provision
15

 
73

Stock-based compensation expense
56

 
61

(Gains) losses on sale of property, plant and equipment
(70
)
 
6

Other, net
(39
)
 
6

Changes in operating assets and liabilities:
 
 
 
Accounts receivable
(63
)
 
(65
)
Accounts payable and accrued expenses
73

 
(19
)
Income taxes payable
29

 
4

Other assets and liabilities, net
(4
)
 
31

Net cash provided by operating activities
1,243

 
1,200

 
 
 
 
Cash flows from investing activities:
 
 
 
Business acquisitions, net of cash acquired
(58
)
 
(421
)
Proceeds from disposition of business
—

 
2

Proceeds from disposition of property, plant and equipment
91

 
2

Capital expenditures
(400
)
 
(383
)
Increase in investments and other assets
(44
)
 
(1
)
Net cash used in investing activities
(411
)
 
(801
)
 
 
 
 
Cash flows from financing activities:
 
 
 
Proceeds from borrowings
2,281

 
2,090

Repayments of debt
(1,449
)
 
(1,966
)
Purchases of treasury stock
(353
)
 
(322
)
Exercise of stock options
119

 
99

Employee payroll tax withholdings on stock issued under stock-based compensation plans
(16
)
 
(21
)
Dividends paid
(286
)
 
(266
)
Distributions to noncontrolling interest partners
(54
)
 
(54
)
Contributions from noncontrolling interest partners
—

 
16

Other financing activities, net
(17
)
 
23

Net cash provided by (used in) financing activities
225

 
(401
)
 
 
 
 
Net change in cash and cash equivalents and restricted cash
1,057

 
(2
)
Cash and cash equivalents and restricted cash, beginning of period
135

 
137

Cash and cash equivalents and restricted cash, end of period
$
1,192

 
$
135

 
 
 
 
Cash and cash equivalents
$
1,192

 
$
135

Restricted cash
—

 
—

Cash and cash equivalents and restricted cash, end of period
$
1,192

 
$
135

 
 
 
 
Cash paid during the period for:
 
 
 
Interest
$
192

 
$
174

Income taxes
$
202

 
$
84


6

Notes to Financial Tables

1)
The computation of basic and diluted earnings per common share is as follows:
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2019
 
2018
 
2019
 
2018
 
(in millions, except per share data)
Amounts attributable to Quest Diagnostics' common stockholders:
 
 
 
 
 
 
 
Income from continuing operations
$
253

 
$
127

 
$
838

 
$
736

Income from discontinued operations, net of taxes
—

 
—

 
20

 
—

Net income attributable to Quest Diagnostics' common stockholders
$
253

 
$
127

 
$
858

 
$
736

 
 
 
 
 
 
 
 
Income from continuing operations
$
253

 
$
127

 
$
838

 
$
736

Less: Earnings allocated to participating securities
1

 
1

 
3

 
3

Earnings available to Quest Diagnostics' common stockholders - basic and diluted
$
252

 
$
126

 
$
835

 
$
733

 
 
 
 
 
 
 
 
Weighted average common shares outstanding - basic
134

 
136

 
134

 
136

Effect of dilutive securities:
 
 
 
 
 
 
 
Stock options and performance share units
2

 
1

 
2

 
3

Weighted average common shares outstanding - diluted
136

 
137

 
136

 
139

 
 
 
 
 
 
 
 
Earnings per share attributable to Quest Diagnostics' common stockholders - basic:
 
 
 
 
 
 
 
Income from continuing operations
$
1.88

 
$
0.93

 
$
6.21

 
$
5.39

Income from discontinued operations
—

 
—

 
0.15

 
—

Net income
$
1.88

 
$
0.93

 
$
6.36

 
$
5.39

 
 
 
 
 
 
 
 
Earnings per share attributable to Quest Diagnostics' common stockholders - diluted:
 
 
 
 
 
 
 
Income from continuing operations
$
1.86

 
$
0.92

 
$
6.13

 
$
5.29

Income from discontinued operations
—

 
—

 
0.15

 
—

Net income
$
1.86

 
$
0.92

 
$
6.28

 
$
5.29




7

2)
The following tables reconcile reported GAAP results to non-GAAP adjusted results:


Three Months Ended December 31, 2019
(dollars in millions, except per share data)

Operating income

Operating income as a percentage of net revenues

Income tax expense (c)

Equity in earnings of equity method investees, net of taxes

Income from continuing operations attributable to Quest Diagnostics

Diluted EPS from continuing operations
As reported
$
363


18.8
 %

$
(72
)

$
9


$
253


$
1.86

Restructuring and integration charges (a)
14


0.7


(4
)

—


10


0.07

Other (b)
(72
)

(3.8
)

18


—


(54
)

(0.39
)
Amortization expense
24


1.3


(6
)

3


21


0.15

ETB
—


—


(2
)

—


(2
)

(0.02
)
As adjusted
$
329


17.0
 %

$
(66
)

$
12


$
228


$
1.67


 
Twelve Months Ended December 31, 2019
(dollars in millions, except per share data)
 
Operating income
 
Operating income as a percentage of net revenues
 
Income tax expense (c)
 
Equity in earnings of equity method investees, net of taxes
 
Income from continuing operations attributable to Quest Diagnostics
 
Diluted EPS from continuing operations
As reported
$
1,231

 
15.9
 %
 
$
(247
)
 
$
57

 
$
838

 
$
6.13

Restructuring and integration charges (a)
78

 
1.0

 
(21
)
 
—

 
57

 
0.42

Other (b)
(89
)
 
(1.1
)
 
18

 
—

 
(71
)
 
(0.50
)
Amortization expense
96

 
1.2

 
(26
)
 
15

 
85

 
0.61

ETB
—

 
—

 
(13
)
 
—

 
(13
)
 
(0.10
)
As adjusted
$
1,316

 
17.0
 %
 
$
(289
)
 
$
72

 
$
896

 
$
6.56



Three Months Ended December 31, 2018
(dollars in millions, except per share data)

Operating income

Operating income as a percentage of net revenues

Income tax expense (c)

Equity in earnings of equity method investees, net of taxes

Income from continuing operations attributable to Quest Diagnostics

Diluted EPS from continuing operations
As reported
$
220


12.0
%

$
(40
)

$
12


$
127


$
0.92

Restructuring and integration charges (a)
47


2.5


(12
)

—


35


0.26

Other (b)
4


0.2


—


—


4


0.02

Amortization expense
24


1.3


(7
)

4


21


0.16

ETB
—


—


(1
)

—


(1
)

(0.01
)
Certain income tax items (d)
—


—


1


—


1


0.01

As adjusted
$
295


16.0
%

$
(59
)

$
16


$
187


$
1.36



8

 
Twelve Months Ended December 31, 2018
(dollars in millions, except per share data)
 
Operating income
 
Operating income as a percentage of net revenues
 
Income tax expense (c)
 
Equity in earnings of equity method investees, net of taxes
 
Income from continuing operations attributable to Quest Diagnostics
 
Diluted EPS from continuing operations
As reported
$
1,101

 
14.6
%
 
$
(182
)
 
$
44

 
$
736

 
$
5.29

Restructuring and integration charges (a)
122

 
1.7

 
(31
)
 
—

 
91

 
0.66

Other (b)
2

 
—

 
1

 
—

 
3

 
0.01

Amortization expense
90

 
1.2

 
(27
)
 
17

 
80

 
0.57

ETB
—

 
—

 
(18
)
 
—

 
(18
)
 
(0.13
)
Certain income tax items (d)
—

 
—

 
(14
)
 
—

 
(14
)
 
(0.09
)
As adjusted
$
1,315

 
17.5
%
 
$
(271
)
 
$
61

 
$
878

 
$
6.31


(a)
For the three and twelve months ended December 31, 2019, represents costs primarily associated with systems conversions and integration incurred in connection with further restructuring and integrating our business. For the three and twelve months ended December 31, 2018, represents costs primarily associated with workforce reductions, systems conversions and integration incurred in connection with further restructuring and integrating our business. The following table summarizes the pre-tax impact of restructuring and integration charges on the company's consolidated statements of operations:
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2019

2018
 
2019
 
2018
 
(dollars in millions)
Cost of services
$
6

 
$
20

 
$
35

 
$
56

Selling, general and administrative
8

 
27

 
43

 
65

Other operating (income) expense, net
—

 
—

 
—

 
1

 
 
 
 
 
 
 
 
Operating income
$
14

 
$
47

 
$
78

 
$
122


(b)
For the three months ended December 31, 2019, primarily represents a gain associated with the sale and leaseback of a property. For the twelve months ended December 31, 2019, the pre-tax impact primarily represents a gain associated with the sale and leaseback of a property, a gain associated with the decrease in the fair value of the contingent consideration accruals associated with previous acquisitions, and a gain associated with an insurance claim for hurricane related losses, partially offset by costs incurred related to a data security incident and non-cash asset impairment charges.

For the three months ended December 31, 2018, primarily represents the loss on the sale of a foreign subsidiary. For the twelve months ended December 31, 2018, primarily represents costs incurred related to certain legal matters and a loss on the sale of a foreign subsidiary, which were partially offset by a gain associated with the decrease in the fair value of the contingent consideration accrual associated with a previous acquisition and an insurance claim for hurricane related losses.

The following table summarizes the pre-tax impact of these other items on the company's consolidated statement of operations:

9

 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2019
 
2018
 
2019
 
2018
 
(dollars in millions)
Cost of services
$
—

 
$
—

 
$
—

 
$
12

Selling, general and administrative
1

 
—

 
6

 
—

Other operating (income) expense, net
(73
)
 
4

 
(95
)
 
(10
)
Operating income
$
(72
)
 
$
4

 
$
(89
)
 
$
2


(c)
For restructuring and integration charges, other items and amortization expense, income tax impacts, where recorded, were primarily calculated using combined statutory income tax rates of 25.5% for both 2019 and 2018. For the gain associated with an insurance claim for hurricane related losses in 2019, there was no net income tax expense as the company is able to utilize net operating loss carryforwards for which a valuation allowance had previously been established. For the gain in 2019 associated with the decrease in the fair value of the contingent consideration accruals associated with previous acquisitions, there was no net income tax expense related to acquisitions in which the gain is non-taxable.
 
(d)
For the three months ended December 31, 2018, represents an income tax expense associated with finalizing the impact of the enactment of the Tax Cut and Jobs Act ("TCJA"). For the twelve months ended December 31, 2018, represents an income tax benefit associated with a change in a tax return accounting method that enabled the company to accelerate the deduction of certain expenses on its 2017 tax return at the federal corporate statutory tax rate in effect during 2017, partially offset by an income tax expense associated with finalizing the impact of the enactment of TCJA.

3)
Discontinued operations, net of taxes, for the twelve months ended December 31, 2019 includes discrete tax benefits of $20 million associated with the favorable resolution of certain tax contingencies related to Nichols Institute Diagnostics, a test kit manufacturing subsidiary whose operations were discontinued in 2006.

4)
For the three months ended December 31, 2019, the company repurchased 1.9 million shares of its common stock for $200 million. For the twelve months ended December 31, 2019, the company repurchased 3.5 million shares of its common stock for $350 million. As of December 31, 2019, $1.2 billion remained available under the company’s share repurchase authorizations.

5)
The outlook for adjusted diluted EPS represents management’s estimates for the full year 2020 before the impact of special items, including ETB and amortization expense. Further impacts to earnings related to special items may occur throughout 2020. Additionally, the amount of ETB is dependent upon employee stock option exercises and the company's stock price, which are difficult to predict. The following table reconciles our 2020 outlook for adjusted diluted EPS to the corresponding amounts determined under GAAP:
 
 
Diluted earnings per common share
$
5.51

Restructuring and integration charges (a)
0.55

Amortization expense (b)
0.64

ETB
(0.10
)
Adjusted diluted EPS
$
6.60


(a)
Represents estimated full year pre-tax charges of $100 million primarily associated with systems conversions and integration costs incurred in connection with further restructuring and integrating our business. Income tax benefits were calculated using a combined statutory income tax rate of 25.5%.

(b)
Represents the estimated impact of amortization expense for 2020 on the calculation of adjusted diluted EPS. Amortization expense used in the calculation is as follows (dollars in millions):

10


Amortization of intangible assets
 
$
107

Amortization expense included in equity in earnings of equity method investees, net of taxes
 
11

 
 
 
Total pre-tax amortization expense
 
$
118

 
 
 
Total amortization expense, net of an estimated tax benefit using a combined statutory income tax rate of 25.5%
 
$
88


11