BUSINESS SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

Clinical testing is an essential element in the delivery of healthcare services. Physicians use clinical testing to assist in the detection, diagnosis, evaluation, monitoring and treatment of diseases and other medical conditions. The Company's DIS business includes its clinical testing operations which are generally categorized as clinical laboratory testing and anatomic pathology services. Clinical laboratory testing generally is performed on whole blood, serum, plasma and other body fluids, such as urine, and specimens such as microbiology samples. Anatomic pathology services are principally for the detection of cancer and are performed on tissues, such as biopsies, and other samples, such as human cells. Customers of the DIS business include patients, physicians, hospitals, employers, governmental institutions and other commercial clinical laboratories. The DIS business accounted for greater than 90% of net revenues from continuing operations in 2012, 2011 and 2010.

All other operating segments are included in the Company's DS business and consist of its risk assessment services, clinical trials testing, healthcare information technology, and diagnostics products businesses. The Company's risk assessment services business provides underwriting support services to the life insurance industry including electronic data collection, specimen collection and paramedical examinations, laboratory testing, medical record retrieval, case management, motor vehicle reports, telephone inspections, prescription histories and credit checks. The Company's clinical trials testing business provides clinical testing performed in connection with clinical research trials on new drugs, vaccines and certain medical devices. The Company's healthcare information technology business is a provider of clinical connectivity and data management solutions for healthcare organizations, and clinicians that can help improve patient care and medical practice. The Company's diagnostics products business manufactures and markets products that enable healthcare professionals to make healthcare diagnoses, including products for testing for the professional market.

During the second quarter of 2011, the Company acquired Athena and Celera. Athena is included in the Company's DIS business. The majority of Celera's operations are included in the Company's DIS business, with the remainder in other operating segments.

On April 19, 2006, the Company decided to discontinue NID’s operations. The Company completed the sale of OralDNA during the fourth quarter of 2012 and committed to a plan to sell HemoCue in December 2012. The results of operations for NID, OralDNA and HemoCue have been classified as discontinued operations for all periods presented. See Note 18 for further details regarding discontinued operations.

At December 31, 2012, substantially all of the Company’s services are provided within the United States, and substantially all of the Company’s assets are located within the United States.

The following table is a summary of segment information for the years ended December 31, 2012, 2011 and 2010. 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 for the segment. Certain general operating expenses in 2011 have been reclassified to conform to the current year presentation of the Company's DIS business. General management and administrative corporate expenses, including amortization of intangible assets and the Medi-Cal charge in the first quarter of 2011 of $236 million (see Note 17), are included in general corporate expenses below. The accounting policies of the segments are the same as those of the Company as set forth in Note 2.

	2012			2011			2010
Net revenues:
DIS business (a)	$	6,819,916		$	6,811,722		$	6,736,840
All other operating segments (a)	562,646			580,210			523,280
Total net revenues	$	7,382,562		$	7,391,932		$	7,260,120
Operating earnings (loss):
DIS business (a)	$	1,385,664		$	1,405,720		$	1,429,893
All other operating segments (a)	57,246			52,549			20,534
General corporate expenses	(242,113		)	(471,628		)	(166,844		)
Total operating income	1,200,797			986,641			1,283,583
Non-operating expenses, net	(132,402		)	(137,847		)	(108,599		)
Income from continuing operations before taxes	1,068,395			848,794			1,174,984
Income tax expense	401,897			354,702			430,127
Income from continuing operations	666,498			494,092			744,857
Income (loss) from discontinued operations, net of taxes	(74,364		)	11,558			12,160
Net income	592,134			505,650			757,017
Less: Net income attributable to noncontrolling interests	36,413			35,083			36,123
Net income attributable to Quest Diagnostics	$	555,721		$	470,567		$	720,894

	2012		2011		2010
Depreciation and amortization:
DIS business (a)	$	183,698	$	189,796	$	194,509
All other operating segments (a)	17,284		18,433		16,049
General corporate	77,308		64,006		35,745
	278,290		272,235		246,303
Adjustments: Discontinued operations	8,306		8,867		7,661
Total depreciation and amortization	$	286,596	$	281,102	$	253,964
Capital expenditures:
DIS business (a)	$	145,165	$	132,021	$	166,329
All other operating segments (a)	24,458		20,276		27,236
General corporate	11,151		6,826		9,152
	180,774		159,123		202,717
Adjustments: Discontinued operations	1,460		2,433		2,683
Total capital expenditures	$	182,234	$	161,556	$	205,400

(a) - DIS excludes the results for OralDNA, and all other operating segments excludes the results of HemoCue, which have met the criteria for discontinued operations and, accordingly, are included in discontinued operations for all periods presented.