XML 21 R25.htm IDEA: XBRL DOCUMENT v2.4.0.8
BUSINESS ACQUISITION (Tables)
6 Months Ended
Jun. 30, 2014
Business Combinations [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]
The following tables summarizes the consideration paid and the preliminary amounts of assets acquired and liabilities assumed at the acquisition date for the Solstas and Summit Health acquisitions described above:
 
Solstas
 
 
 
Summit Health
 
 
Cash
$
572

 
 
 
$
124

 
 
Estimated fair value of contingent consideration

 
 
 
22

 
 
Transaction related costs due to sellers

 
 
 
5

 
 
Total consideration
$
572

 
 
 
$
151

 
 
 
 
 
 
 
 
 
 
 
Solstas
 
Summit Health
Allocation of purchase price:
Fair Value
 
Weighted Average Useful Life (in years)
 
Fair Value
 
Weighted Average Useful Life (in years)
Cash and cash equivalents
$
9

 
 
 
$
1

 
 
Accounts receivable, net
48

 
 
 
11

 
 
Current deferred income taxes
7

 
 
 

 
 
Other current assets
13

 
 
 
16

 
 
Property, plant and equipment, net
48

 
 
 
6

 
 
Goodwill
266

 
 
 
89

 
 
Intangible assets:
 
 
 
 
 
 
 
Customer relationships
203

 
20
 
33

 
15
Software

 
 
 
3

 
4
Trade name
7

 
2
 
2

 
1
Total intangible assets
210

 
 
 
38

 
 
Non-current deferred income taxes
42

 
 
 

 
 
 
 
 
 
 
 
 
 
Total assets acquired
643

 
 
 
161

 
 
 
 
 
 
 
 
 
 
Current liabilities
59

 
 
 
10

 
 
Non-current deferred income taxes
4

 
 
 

 
 
Other non-current liabilities
8

 
 
 

 
 
 
 
 
 
 
 
 
 
Total liabilities assumed
71

 
 
 
10

 
 
 
 
 
 
 
 
 
 
Net assets acquired
$
572

 
 
 
$
151

 
 
Business Acquisition, Pro Forma Information [Table Text Block]
The following unaudited pro forma combined financial information reflects the consolidated statement of operations of the Company as if the acquisitions of Solstas and Summit Health had occurred as of January 1, 2013. The pro forma information includes adjustments primarily related to the amortization of intangible assets acquired, interest expense associated with debt extinguished prior to the acquisitions, and integration and transaction costs related to the Solstas and Summit Health acquisitions. The pro forma combined financial information does not include the estimated annual synergies expected to be realized upon completion of the integration of Solstas and Summit Health and is not indicative of the results of operations as they would have been had the transaction been effected on the assumed date. Financial information for Steward has not been included in the table below as this acquisition is not material to the Company’s interim unaudited consolidated financial statements.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
 
 
 
 
 
 
 
 
Pro forma net revenues
$
1,906

 
$
1,929

 
$
3,733

 
$
3,829

 
 
 
 
 
 
 
 
Pro forma income from continuing operations
$
143

 
$
163

 
$
252

 
$
286

 
 
 
 
 
 
 
 
Earnings per share attributable to Quest Diagnostics’ common stockholders - basic:
 
 
 
 
 
 
 
Pro forma income from continuing operations
$
0.92

 
$
0.99

 
$
1.63

 
$
1.72

 
 
 
 
 
 
 
 
Earnings per share attributable to Quest Diagnostics’ common stockholders - diluted:
 
 
 
 
 
 
 
Pro forma income from continuing operations
$
0.92

 
$
1.00

 
$
1.62

 
$
1.71