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Quarterly Operating Results (unaudited) (Tables) | 12 Months Ended
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Dec. 31, 2020
Quarterly Financial Data [Abstract] |
Quarterly Operating Results |
2020 (a) | First Quarter |  | Second Quarter |  | Third Quarter |  | Fourth Quarter |  | Total Year
| (b) |  | (c) |  | (d) |  | (e) |  | (f)
Net revenues | $ | 1,822 |  |  | $ | 1,827 |  |  | $ | 2,786 |  |  | $ | 3,002 |  |  | $ | 9,437 |
Gross profit | 552 |  |  | 606 |  |  | 1,206 |  |  | 1,269 |  |  | 3,633 |
Income from continuing operations | 106 |  |  | 193 |  |  | 591 |  |  | 609 |  |  | 1,499 |
Income from discontinued operations, net of taxes | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net income | 106 |  |  | 193 |  |  | 591 |  |  | 609 |  |  | 1,499 |
Less: Net income attributable to noncontrolling interests | 7 |  |  | 8 |  |  | 23 |  |  | 30 |  |  | 68 |
Net income attributable to Quest Diagnostics | $ | 99 |  |  | $ | 185 |  |  | $ | 568 |  |  | $ | 579 |  |  | $ | 1,431 |
Earnings per share attributable to Quest Diagnostics' common stockholders - basic: |  |  |  |  |  |  |  |  |
Income from continuing operations | $ | 0.74 |  |  | $ | 1.38 |  |  | $ | 4.20 |  |  | $ | 4.28 |  |  | $ | 10.62 |
Income from discontinued operations | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net income | $ | 0.74 |  |  | $ | 1.38 |  |  | $ | 4.20 |  |  | $ | 4.28 |  |  | $ | 10.62 |
Earnings per share attributable to Quest Diagnostics' common stockholders - diluted: |  |  |  |  |  |  |  |  |
Income from continuing operations | $ | 0.73 |  |  | $ | 1.36 |  |  | $ | 4.14 |  |  | $ | 4.21 |  |  | $ | 10.47 |
Income from discontinued operations | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net income | $ | 0.73 |  |  | $ | 1.36 |  |  | $ | 4.14 |  |  | $ | 4.21 |  |  | $ | 10.47 |
2019 (a) | First Quarter |  | Second Quarter |  | Third Quarter |  | Fourth Quarter |  | Total Year
| (g) |  | (h) |  | (i) |  | (j) |  |
Net revenues | $ | 1,891 |  |  | $ | 1,953 |  |  | $ | 1,956 |  |  | $ | 1,926 |  |  | $ | 7,726 |
Gross profit | 647 |  |  | 688 |  |  | 692 |  |  | 662 |  |  | 2,689 |
Income from continuing operations | 176 |  |  | 219 |  |  | 226 |  |  | 265 |  |  | 886 |
Income from discontinued operations, net of taxes | — |  |  | 20 |  |  | — |  |  | — |  |  | 20 |
Net income | 176 |  |  | 239 |  |  | 226 |  |  | 265 |  |  | 906 |
Less: Net income attributable to noncontrolling interests | 12 |  |  | 13 |  |  | 11 |  |  | 12 |  |  | 48 |
Net income attributable to Quest Diagnostics | $ | 164 |  |  | $ | 226 |  |  | $ | 215 |  |  | $ | 253 |  |  | $ | 858 |
Earnings per share attributable to Quest Diagnostics' common stockholders - basic: |  |  |  |  |  |  |  |  |
Income from continuing operations | $ | 1.22 |  |  | $ | 1.52 |  |  | $ | 1.59 |  |  | $ | 1.88 |  |  | $ | 6.21 |
Income from discontinued operations | — |  |  | 0.15 |  |  | — |  |  | — |  |  | 0.15 |
Net income | $ | 1.22 |  |  | $ | 1.67 |  |  | $ | 1.59 |  |  | $ | 1.88 |  |  | $ | 6.36 |
Earnings per share attributable to Quest Diagnostics' common stockholders - diluted: |  |  |  |  |  |  |  |  |
Income from continuing operations | $ | 1.20 |  |  | $ | 1.51 |  |  | $ | 1.56 |  |  | $ | 1.86 |  |  | $ | 6.13 |
Income from discontinued operations | — |  |  | 0.15 |  |  | — |  |  | — |  |  | 0.15 |
Net income | $ | 1.20 |  |  | $ | 1.66 |  |  | $ | 1.56 |  |  | $ | 1.86 |  |  | $ | 6.28 |
(a)During the third quarter of 2006, the Company completed the wind down of Nichols Institute Diagnostics ("NID"), a test kit manufacturing subsidiary. As a result, NID was classified as discontinued operations through 2019, at which point certain income tax contingencies related to NID were resolved (see Note 21 to the audited consolidated financial statements). (b)Included pre-tax amortization expense of $28 million ($25 million in amortization of intangible assets and $3 million in equity in earnings of equity method investees, net of taxes); pre-tax charges of $16 million ($7 million in cost of services and $9 million in selling, general and administrative expenses), primarily associated with systems conversions and integration incurred in connection with further restructuring and integrating the Company; and pre-tax charges of $9 million ($1 million in cost of services, $3 million in selling, general and administrative expenses and $5 million in other operating expense (income), net), associated with certain costs incurred as a result of the COVID-19 pandemic and resulting impact on the economy including incremental costs incurred primarily to protect the health and safety of the Company's employees and customers and to transition certain employees to a remote work environment, and certain asset impairment charges; partially offset by excess tax benefits associated with stock-based compensation arrangements of $8 million recorded in income tax expense. (c)Included pre-tax amortization expense of $28 million ($25 million in amortization of intangible assets and $3 million in equity in earnings of equity method investees, net of taxes); and pre-tax charges of $9 million ($3 million in cost of services and $6 million in selling, general and administrative expenses), representing costs primarily associated with systems conversions and integration incurred in connection with further restructuring and integrating the Company; partially offset by a pre-tax gain of $26 million (charges of $34 million in cost of services and $5 million in selling, general and administrative expenses, offset by a $62 million gain in other operating expense (income), net, and a $3 million gain in equity in earnings of equity method investees, net of taxes), representing certain items resulting from the COVID-19 pandemic, including expense associated with a payment to eligible employees to help offset expenses they incurred as a result of COVID-19, incremental costs incurred primarily to protect the health and safety of the Company's employees and customers, and certain impairment charges, which were more than offset by $65 million of income recognized attributable to the receipt of the initial tranche of funds from the government that were appropriated to healthcare providers under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"); and excess tax benefits associated with stock-based compensation arrangements of $4 million recorded in income tax expense. (d)Included net pre-tax charges of $69 million (charges of $3 million in cost of services, $65 million in other operating expense (income), net, and $1 million in equity in earnings of equity method investees, net of taxes), representing the impact of certain items resulting from the COVID-19 pandemic, including incremental costs incurred primarily to protect the health and safety of the Company's employees and customers and the reversal of $65 million of income previously recognized during the second quarter of 2020 attributable to the receipt of funds from the government that were appropriated to healthcare providers under the CARES Act; pre-tax amortization expense of $30 million ($27 million in amortization of intangible assets and $3 million in equity in earnings of equity method investees, net of taxes); and pre-tax charges of $18 million ($11 million in cost of services and $7 million in selling, general and administrative expenses), representing costs primarily associated with systems conversions and integration incurred in connection with further restructuring and integrating the Company; partially offset by a pre-tax gain of $70 million recognized in other income (expense), net upon the acquisition of the remaining 56% interest in Mid America Clinical Laboratories, LLC as a result of the remeasurement of the Company's previously held equity interest to fair value; and excess tax benefits associated with stock-based compensation arrangements of $3 million recorded in income tax expense. (e)Included pre-tax amortization expense of $28 million ($26 million in amortization of intangible assets and $2 million in equity in earnings of equity method investees, net of taxes); pre-tax charges of $20 million (charges of $19 million in cost of services, $2 million in selling, general and administrative expenses and $1 million in other operating expense (income), net, partially offset by a $2 million gain in equity in earnings of equity method investees, net of taxes), representing the impact of certain items resulting from the COVID-19 pandemic, principally including expense associated with payments to eligible employees to help offset expenses they incurred as a result of COVID-19 and incremental costs incurred primarily to protect the health and safety of the Company's employees and customers; and pre-tax charges of $15 million ($6 million in cost of services and $9 million in selling, general and administrative expenses), primarily associated with systems conversions and integration incurred in connection with further restructuring and integrating the Company; partially offset by a pre-tax gain of $2 million ($2 million of charges in selling, general and administrative expenses and a $10 million loss in other income (expense), net, offset by a $14 million gain in equity in earnings of equity method investees, net of taxes) related to costs associated with Quest for Health Equity (the Company's recently announced initiative with the Quest Diagnostics Foundation to reduce health disparities in underserved communities) and a loss on retirement of debt, which were more than offset by a gain recognized by an equity method investee to adjust certain of its investments to fair value; and excess tax benefits associated with stock-based compensation arrangements of $8 million recorded in income tax expense. In the fourth quarter of 2020, the Company returned the funds received from the government that were appropriated to healthcare providers under the CARES Act. (f)The sum of basic and diluted earnings per share attributable to Quest Diagnostics' common stockholders for the four quarters of 2020 did not equal the totals for the year ended December 31, 2020 due to quarterly fluctuations in the Company's earnings and weighted average common shares outstanding throughout the period primarily due to the impact of the COVID-19 pandemic on the Company's results and the temporary suspension of repurchases under the Company's share repurchase program. (g)Included pre-tax amortization expense of $29 million ($24 million in amortization of intangible assets and $5 million in equity in earnings of equity method investees, net of taxes); pre-tax charges of $22 million ($11 million in cost of services and $11 million in selling, general and administrative expenses), primarily associated with system conversions and integration incurred in connection with further restructuring and integrating the Company; a pre-tax gain of $8 million ($1 million charge in selling, general and administrative expenses offset by a $9 million gain in other operating expense (income), net), due to non-cash asset impairment charges, which were more than offset by a gain associated with proceeds from an insurance claim for hurricane related losses; and excess tax benefits associated with stock-based compensation arrangements of $3 million recorded in income tax expense. (h)Included pre-tax amortization expense of $30 million ($25 million in amortization of intangible assets and $5 million in equity in earnings of equity method investees, net of taxes); pre-tax charges of $26 million ($11 million in cost of services and $15 million in selling, general and administrative expenses), primarily associated with system conversions and integration incurred in connection with further restructuring and integrating the Company; a pre-tax gain of $6 million in other operating expense (income), net, primarily due to a gain associated with the decrease in the fair value of the contingent consideration accrual associated with a previous acquisition; and excess tax benefits associated with stock-based compensation arrangements of $5 million recorded in income tax expense. Income from discontinued operations, net of taxes includes discrete tax benefits of $20 million associated with the favorable resolution of certain tax contingencies related to NID. (i)Included pre-tax amortization expense of $25 million ($23 million in amortization of intangible assets and $2 million in equity in earnings of equity method investees, net of taxes); pre-tax charges of $16 million ($7 million in cost of services and $9 million in selling, general and administrative expenses), primarily associated with system conversions and integration incurred in connection with further restructuring and integrating the Company; a pre-tax gain of $3 million ($4 million charge in selling, general and administrative expenses, offset by a $7 million gain in other operating expense (income), net), consisting of costs incurred related to the AMCA Data Security Incident, which were more than offset by a gain associated with the decrease in the fair value of the contingent consideration accrual associated with a previous acquisition; and excess tax benefits associated with stock-based compensation arrangements of $3 million recorded in income tax expense. (j)Includes a pre-tax gain of $72 million ($1 million charge in selling, general and administrative expenses, offset by a $73 million gain in other operating expense (income), net), primarily associated with the sale and leaseback of a property; pre-tax amortization expense of $27 million ($24 million in amortization of intangible assets and $3 million in equity in earnings of equity method investees, net of taxes); pre-tax charges of $14 million ($6 million in cost of services and $8 million in selling, general and administrative expenses), primarily associated with system conversions and integration incurred in connection with further restructuring and integrating the Company; and excess tax benefits associated with stock-based compensation arrangements of $2 million recorded in income tax expense.

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