001-12215 | 16-1387862 | |
(Commission File Number) | (I.R.S. Employer Identification No.) | |
Three Giralda Farms Madison, NJ | 07940 | |
(Address of principal executive offices) | (Zip Code) | |
(973) 520-2700 | ||
(Registrant's telephone number, including area code) |
• | by major cost type, of the pre-tax charges expected to be incurred in connection with the course of action; or |
• | of the pre-tax charges that will result in future cash expenditures. |
d. | Exhibit | |
99.1 | Press release of Quest Diagnostics Incorporated dated January 29, 2015, announcing, among other things, its results for the quarter and full year ended December 31, 2014. | |
99.2 | Amortization expense from continuing operations and adjusted diluted EPS excluding amortization expense from continuing operations for each of the fiscal quarters and fiscal years during the period January 1, 2012 through December 31, 2014. |
QUEST DIAGNOSTICS INCORPORATED | |
By: | /s/ William J. O'Shaughnessy, Jr. |
William J. O'Shaughnessy, Jr. | |
Deputy General Counsel and Secretary |
• | Fourth quarter revenues from continuing operations of $1.9 billion, up 7.2% versus prior year |
• | Adjusted diluted EPS from continuing operations of $1.08, up 4.9% versus prior year |
• | Reported diluted EPS from continuing operations of $1.26, up 30% versus prior year |
• | Dividend increased 15% to $0.38 per quarter |
• | Full year 2015 revenues to grow 2% to 3% |
• | Full year 2015 adjusted diluted EPS excluding amortization expense expected to be between $4.70 and $4.85 |
• | Revenues to increase approximately 2% to 3%, compared to 2014; |
• | Adjusted diluted EPS excluding amortization expense to be between $4.70 and $4.85; |
• | Cash provided by operations to approximate $850 million; and |
• | Capital expenditures to approximate $300 million |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net revenues | $ | 1,883 | $ | 1,756 | $ | 7,435 | $ | 7,146 | |||||||
Operating costs and expenses: | |||||||||||||||
Cost of services | 1,184 | 1,051 | 4,637 | 4,326 | |||||||||||
Selling, general and administrative | 427 | 415 | 1,728 | 1,704 | |||||||||||
Amortization of intangible assets | 23 | 20 | 94 | 79 | |||||||||||
Gain on sale of royalty rights | — | — | — | (474 | ) | ||||||||||
Other operating (income) expense, net | (8 | ) | — | (7 | ) | 36 | |||||||||
Total operating costs and expenses | 1,626 | 1,486 | 6,452 | 5,671 | |||||||||||
Operating income | 257 | 270 | 983 | 1,475 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense, net | (42 | ) | (39 | ) | (164 | ) | (159 | ) | |||||||
Equity in earnings of equity method investees | 7 | 6 | 26 | 24 | |||||||||||
Other income, net | 1 | 1 | 4 | 8 | |||||||||||
Total non-operating expenses, net | (34 | ) | (32 | ) | (134 | ) | (127 | ) | |||||||
Income from continuing operations before taxes | 223 | 238 | 849 | 1,348 | |||||||||||
Income tax expense | 28 | 87 | 262 | 500 | |||||||||||
Income from continuing operations | 195 | 151 | 587 | 848 | |||||||||||
Income (loss) from discontinued operations, net of taxes | 5 | — | 5 | 35 | |||||||||||
Net income | 200 | 151 | 592 | 883 | |||||||||||
Less: Net income attributable to noncontrolling interests | 10 | 8 | 36 | 34 | |||||||||||
Net income attributable to Quest Diagnostics | $ | 190 | $ | 143 | $ | 556 | $ | 849 | |||||||
Amounts attributable to Quest Diagnostics' common stockholders: | |||||||||||||||
Income from continuing operations | $ | 185 | $ | 143 | $ | 551 | $ | 814 | |||||||
Income (loss) from discontinued operations, net of taxes | 5 | — | 5 | 35 | |||||||||||
Net income | $ | 190 | $ | 143 | $ | 556 | $ | 849 | |||||||
Earnings per share attributable to Quest Diagnostics' common stockholders - basic: | |||||||||||||||
Income from continuing operations | $ | 1.27 | $ | 0.98 | $ | 3.80 | $ | 5.35 | |||||||
Income (loss) from discontinued operations | 0.03 | (0.01 | ) | 0.03 | 0.23 | ||||||||||
Net income | $ | 1.30 | $ | 0.97 | $ | 3.83 | $ | 5.58 | |||||||
Earnings per share attributable to Quest Diagnostics' common stockholders - diluted: | |||||||||||||||
Income from continuing operations | $ | 1.26 | $ | 0.97 | $ | 3.78 | $ | 5.31 | |||||||
Income (loss) from discontinued operations | 0.03 | — | 0.03 | 0.23 | |||||||||||
Net income | $ | 1.29 | $ | 0.97 | $ | 3.81 | $ | 5.54 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 145 | 146 | 145 | 152 | |||||||||||
Diluted | 146 | 146 | 145 | 153 | |||||||||||
December 31, 2014 | December 31, 2013 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 192 | $ | 187 | |||
Accounts receivable, net | 932 | 852 | |||||
Inventories | 110 | 91 | |||||
Deferred income taxes | 169 | 148 | |||||
Prepaid expenses and other current assets | 200 | 105 | |||||
Total current assets | 1,603 | 1,383 | |||||
Property, plant and equipment, net | 933 | 805 | |||||
Goodwill | 6,032 | 5,649 | |||||
Intangible assets, net | 1,071 | 896 | |||||
Other assets | 238 | 215 | |||||
Total assets | $ | 9,877 | $ | 8,948 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 1,191 | $ | 920 | |||
Current portion of long-term debt | 518 | 212 | |||||
Total current liabilities | 1,709 | 1,132 | |||||
Long-term debt | 3,244 | 3,120 | |||||
Other liabilities | 594 | 723 | |||||
Stockholders' equity: | |||||||
Quest Diagnostics stockholders' equity: | |||||||
Common stock, par value $0.01 per share; 600 shares authorized at both December 31, 2014 and 2013; 215 shares issued at both December 31, 2014 and 2013 | 2 | 2 | |||||
Additional paid-in capital | 2,418 | 2,379 | |||||
Retained earnings | 5,723 | 5,358 | |||||
Accumulated other comprehensive loss | (27 | ) | (8 | ) | |||
Treasury stock, at cost; 71 shares at both December 31, 2014 and 2013 | (3,815 | ) | (3,783 | ) | |||
Total Quest Diagnostics stockholders' equity | 4,301 | 3,948 | |||||
Noncontrolling interests | 29 | 25 | |||||
Total stockholders' equity | 4,330 | 3,973 | |||||
Total liabilities and stockholders' equity | $ | 9,877 | $ | 8,948 |
Twelve Months Ended December 31, | |||||||
2014 | 2013 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 592 | $ | 883 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 314 | 283 | |||||
Provision for doubtful accounts | 296 | 270 | |||||
Deferred income tax provision | 23 | 19 | |||||
Stock-based compensation expense | 51 | 28 | |||||
Excess tax benefits from stock-based compensation arrangements | — | (4 | ) | ||||
Gain on sale of royalty rights | — | (474 | ) | ||||
Asset impairment and loss on sale of businesses, net | — | 17 | |||||
Other, net | (12 | ) | 2 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (312 | ) | (247 | ) | |||
Accounts payable and accrued expenses | 68 | (21 | ) | ||||
Income taxes payable | (84 | ) | (93 | ) | |||
Other assets and liabilities, net | 2 | (11 | ) | ||||
Net cash provided by operating activities | 938 | 652 | |||||
Cash flows from investing activities: | |||||||
Business acquisitions, net of cash acquired | (728 | ) | (213 | ) | |||
Proceeds from sale of businesses | — | 296 | |||||
Proceeds from sale of royalty rights | — | 474 | |||||
Capital expenditures | (308 | ) | (231 | ) | |||
Decrease in investments and other assets | 11 | 2 | |||||
Net cash (used in) provided by investing activities | (1,025 | ) | 328 | ||||
Cash flows from financing activities: | |||||||
Proceeds from borrowings | 2,018 | 896 | |||||
Repayments of debt | (1,647 | ) | (900 | ) | |||
Purchases of treasury stock | (132 | ) | (1,037 | ) | |||
Exercise of stock options | 78 | 138 | |||||
Excess tax benefits from stock-based compensation arrangements | — | 4 | |||||
Dividends paid | (187 | ) | (185 | ) | |||
Distributions to noncontrolling interests | (31 | ) | (32 | ) | |||
Other financing activities, net | (7 | ) | 10 | ||||
Net cash provided by (used in) financing activities | 92 | (1,106 | ) | ||||
Net change in cash and cash equivalents | 5 | (126 | ) | ||||
Change in cash and cash equivalents included in assets held for sale | — | 17 | |||||
Cash and cash equivalents, beginning of period | 187 | 296 | |||||
Cash and cash equivalents, end of period | $ | 192 | $ | 187 | |||
Cash paid during the period for: | |||||||
Interest | $ | 170 | $ | 167 | |||
Income taxes | $ | 327 | $ | 568 |
1) | The computation of basic and diluted earnings per common share is as follows: |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in millions, except per share data) | |||||||||||||||
Amounts attributable to Quest Diagnostics' common stockholders: | |||||||||||||||
Income from continuing operations | $ | 185 | $ | 143 | $ | 551 | $ | 814 | |||||||
Income (loss) from discontinued operations, net of taxes | 5 | — | 5 | 35 | |||||||||||
Net income available to common stockholders | $ | 190 | $ | 143 | $ | 556 | $ | 849 | |||||||
Income from continuing operations | $ | 185 | $ | 143 | $ | 551 | $ | 814 | |||||||
Less: Earnings allocated to participating securities | — | 1 | 2 | 3 | |||||||||||
Earnings available to Quest Diagnostics' common stockholders - basic and diluted | $ | 185 | $ | 142 | $ | 549 | $ | 811 | |||||||
Weighted average common shares outstanding - basic | 145 | 146 | 145 | 152 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Stock options and performance share units | 1 | — | — | 1 | |||||||||||
Weighted average common shares outstanding - diluted | 146 | 146 | 145 | 153 | |||||||||||
Earnings per share attributable to Quest Diagnostics' common stockholders - basic: | |||||||||||||||
Income from continuing operations | $ | 1.27 | $ | 0.98 | $ | 3.80 | $ | 5.35 | |||||||
Income (loss) from discontinued operations | 0.03 | (0.01 | ) | 0.03 | 0.23 | ||||||||||
Net income | $ | 1.30 | $ | 0.97 | $ | 3.83 | $ | 5.58 | |||||||
Earnings per share attributable to Quest Diagnostics' common stockholders - diluted: | |||||||||||||||
Income from continuing operations | $ | 1.26 | $ | 0.97 | $ | 3.78 | $ | 5.31 | |||||||
Income (loss) from discontinued operations | 0.03 | — | 0.03 | 0.23 | |||||||||||
Net income | $ | 1.29 | $ | 0.97 | $ | 3.81 | $ | 5.54 |
2) | Adjusted amounts for operating income, income from continuing operations attributable to Quest Diagnostics' stockholders, and diluted EPS represent the Company's results before the impact of the gain on sale of ibrutinib royalty rights, restructuring and integration charges, favorable resolution of tax contingencies, loss on sale of the Enterix business and other. Adjusted diluted EPS excluding amortization expense represents the Company's results before the impact of special items and amortization expense. Adjusted measures are presented because management believes those measures are useful adjuncts to reported results under accounting principles generally accepted in the United States when comparing results of operations from period to period. Adjusted measures should not be considered as an alternative to the corresponding measures determined under accounting principles generally accepted in the United States. The following tables reconcile reported results to adjusted results: |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(dollars in millions, except per share data) | |||||||||||||||
Adjusted operating income: | |||||||||||||||
Operating income | $ | 257 | $ | 270 | $ | 983 | $ | 1,475 | |||||||
Gain on sale of ibrutinib royalty rights (a) | — | — | — | (474 | ) | ||||||||||
Restructuring and integration charges (b) | 30 | 12 | 121 | 115 | |||||||||||
Loss on sale of Enterix | — | — | — | 40 | |||||||||||
Other (c) | (4 | ) | — | 15 | — | ||||||||||
Adjusted operating income | $ | 283 | $ | 282 | $ | 1,119 | $ | 1,156 | |||||||
Adjusted operating income as a percentage of net revenues: | |||||||||||||||
Operating income as a percentage of net revenues | 13.7 | % | 15.3 | % | 13.2 | % | 20.6 | % | |||||||
Gain on sale of ibrutinib royalty rights (a) | — | — | — | (6.6 | ) | ||||||||||
Restructuring and integration charges (b) | 1.5 | 0.8 | 1.6 | 1.6 | |||||||||||
Loss on sale of Enterix | — | — | — | 0.6 | |||||||||||
Other (c) | (0.2 | ) | — | 0.2 | — | ||||||||||
Adjusted operating income as a percentage of net revenues | 15.0 | % | 16.1 | % | 15.0 | % | 16.2 | % | |||||||
Adjusted income from continuing operations: | |||||||||||||||
Income from continuing operations attributable to Quest Diagnostics' stockholders | $ | 185 | $ | 143 | $ | 551 | $ | 814 | |||||||
Gain on sale of ibrutinib royalty rights (d) | — | — | — | (298 | ) | ||||||||||
Restructuring and integration charges (d) | 18 | 8 | 77 | 71 | |||||||||||
Favorable resolution of tax contingencies | (44 | ) | — | (44 | ) | — | |||||||||
Loss on sale of Enterix (d) | — | — | — | 25 | |||||||||||
Other (d) | (1 | ) | — | 14 | — | ||||||||||
Adjusted income from continuing operations | $ | 158 | $ | 151 | $ | 598 | $ | 612 | |||||||
Adjusted diluted EPS: | |||||||||||||||
Diluted earnings per common share | $ | 1.26 | $ | 0.97 | $ | 3.78 | $ | 5.31 | |||||||
Gain on sale of ibrutinib royalty rights (a) | — | — | — | (1.95 | ) | ||||||||||
Restructuring and integration charges (b) | 0.13 | 0.06 | 0.53 | 0.47 | |||||||||||
Favorable resolution of tax contingencies | (0.30 | ) | — | (0.30 | ) | — | |||||||||
Loss on sale of Enterix | — | — | — | 0.17 | |||||||||||
Other (c) | (0.01 | ) | — | 0.09 | — | ||||||||||
Adjusted diluted EPS | 1.08 | 1.03 | 4.10 | 4.00 | |||||||||||
Amortization expense (e) | 0.10 | 0.08 | 0.40 | 0.32 | |||||||||||
Adjusted diluted EPS excluding amortization expense | $ | 1.18 | $ | 1.11 | $ | 4.50 | $ | 4.32 |
(a) | Represents the gain, net of transaction costs, associated with the sale of the Company's ibrutinib royalty rights. |
(b) | Represents costs primarily associated with workforce reductions and professional fees incurred in connection with further restructuring and integrating our business. |
(c) | For the three months ended December 31, 2014, represents a gain of $9 million associated with a decrease in the fair value of the contingent consideration accrual associated with the Summit Health acquisition, partially offset by costs incurred related to legal matters. For the twelve months ended December 31, 2014, represents costs incurred related to legal matters, partially offset by a gain of $9 million associated with a decrease in the fair value of the contingent consideration accrual associated with the Summit Health acquisition. |
(d) | For the gain on sale of ibrutinib royalty rights, income tax expense was calculated using a combined federal and state rate of 37.1%. For the restructuring and integration charges and other, income tax impacts, where recorded, were calculated using a combined federal and state rate of 38.2%. For the loss on sale of Enterix, income tax benefits were calculated using combined federal and state rates of 35.9%. |
(e) | Represents the impact of amortization expense, net of the estimated tax benefit, on diluted EPS. The income tax benefit was calculated using a combined federal and state rate of 38.2%. |
3) | For the twelve months ended December 31, 2013, gain on sale of royalty rights represents the sale of the Company's ibrutinib royalty rights for $474 million, net of transaction costs. For the twelve months ended December 31, 2013, income tax expense includes $176 million associated with the gain on sale of royalty rights. |
4) | Other operating (income) expense, net includes miscellaneous income and expense items related to operating activities. For the three and twelve months ended December 31, 2014, other operating (income) expense, net includes a gain of $9 million associated with a decrease in the fair value of the contingent consideration accrual associated with the Summit Health acquisition. For the twelve months ended December 31, 2013, other operating (income) expense, net includes the pre-tax loss on sale of Enterix of $40 million. In addition, other operating (income) expense, net, for the twelve months ended December 31, 2013, includes a gain of $6 million resulting from consideration associated with certain non-compete agreements. |
5) | Other income, net represents miscellaneous income and expense items related to non-operating activities, such as gains and losses associated with investments and other non-operating assets. For the three months ended December 31, 2014 and 2013, other income, net includes gains of $2 million and $4 million, respectively, associated with investments held in trusts pursuant to our supplemental deferred compensation plans. Other income, net for the twelve months ended December 31, 2014 and 2013, includes gains of $4 million and $10 million, respectively, associated with investments held in trusts pursuant to our supplemental deferred compensation plans. |
6) | On April 9, 2013, the Company completed the sale of its HemoCue diagnostic products business. As a result, income (loss) from discontinued operations, net of taxes, for the twelve months ended December 31, 2013, includes a gain of $14 million (including foreign currency translation adjustments, partially offset by income tax expense and transaction costs) associated with the sale of HemoCue. In addition, income (loss) from discontinued operations, net of taxes for the twelve months ended December 31, 2013, includes discrete tax benefits of $20 million associated with favorable resolution of certain tax contingencies related to our NID business, which was wound down in 2006. |
7) | For the three months ended December 31, 2014, the Company repurchased 0.8 million shares of its common stock at an average price of $64.44 per share for a total of $50 million. For the twelve months ended December 31, 2014, the Company repurchased 2.2 million shares of its common stock at an average price of $59.49 per share for a total of $132 million. At December 31, 2014, $696 million remained available under the Company’s share repurchase authorizations. |
8) | The outlook for adjusted diluted EPS excluding amortization expense represents management’s estimates for the full year 2015 before the impact of special items and amortization expense. This measure is presented because management believes it is a useful adjunct to the corresponding amount determined under accounting principles generally accepted in the United States since it is meaningful to evaluate the Company’s ongoing operating performance. Adjusted diluted EPS excluding amortization expense is not a measure of financial performance under accounting principles generally accepted in the United States and should not be considered as an alternative to the corresponding amount determined under accounting principles generally accepted in the United States. |
Low | High | ||||||
Diluted earnings per common share | $ | 4.34 | $ | 4.49 | |||
Amortization expense, net of tax (a) | 0.36 | 0.36 | |||||
Adjusted diluted EPS excluding amortization expense | $ | 4.70 | $ | 4.85 |
(a) | Represents the impact of amortization expense, estimated at approximately $85 million or $52 million, net of an estimated tax benefit, on diluted earnings per common share. |
Three Months Ended | Year Ended | ||||||||||||||||||
March 31, 2014 | June 30, 2014 | September 30, 2014 | December 31, 2014 | December 31, 2014 | |||||||||||||||
(dollars in millions, except per share data) | |||||||||||||||||||
Amortization expense (a) | $ | 22 | $ | 25 | $ | 24 | $ | 23 | $ | 94 | |||||||||
Adjusted Diluted EPS Excluding Amortization Expense: | |||||||||||||||||||
Diluted earnings per common share - as reported (a) | $ | 0.71 | $ | 0.92 | $ | 0.88 | $ | 1.26 | $ | 3.78 | |||||||||
Restructuring and integration charges (b) | 0.11 | 0.13 | 0.17 | 0.13 | 0.53 | ||||||||||||||
Favorable resolution of tax contingencies | — | — | — | (0.30 | ) | (0.30 | ) | ||||||||||||
Other (c) | 0.02 | 0.03 | 0.05 | (0.01 | ) | 0.09 | |||||||||||||
Adjusted diluted EPS | 0.84 | 1.08 | 1.10 | 1.08 | 4.10 | ||||||||||||||
Amortization expense (d) | 0.09 | 0.11 | 0.10 | 0.10 | 0.40 | ||||||||||||||
Adjusted diluted EPS excluding amortization expense | $ | 0.93 | $ | 1.19 | $ | 1.20 | $ | 1.18 | $ | 4.50 |
Three Months Ended | Year Ended | ||||||||||||||||||
March 31, 2013 | June 30, 2013 | September 30, 2013 | December 31, 2013 | December 31, 2013 | |||||||||||||||
(dollars in millions, except per share data) | |||||||||||||||||||
Amortization expense (e) | $ | 19 | $ | 20 | $ | 20 | $ | 20 | $ | 79 | |||||||||
Adjusted Diluted EPS Excluding Amortization Expense: | |||||||||||||||||||
Diluted earnings per common share - as reported (f) | $ | 0.72 | $ | 0.99 | $ | 2.66 | $ | 0.97 | $ | 5.31 | |||||||||
Gain on sale of ibrutinib royalty rights | — | — | (1.97 | ) | — | (1.95 | ) | ||||||||||||
Restructuring and integration charges (b) | 0.17 | 0.07 | 0.16 | 0.06 | 0.47 | ||||||||||||||
Loss on sale of Enterix | — | — | 0.17 | — | 0.17 | ||||||||||||||
Adjusted diluted EPS | 0.89 | 1.06 | 1.02 | 1.03 | 4.00 | ||||||||||||||
Amortization expense (d) | 0.07 | 0.08 | 0.08 | 0.08 | 0.32 | ||||||||||||||
Adjusted diluted EPS excluding amortization expense | $ | 0.96 | $ | 1.14 | $ | 1.10 | $ | 1.11 | $ | 4.32 |
Three Months Ended | Year Ended | ||||||||||||||||||
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | December 31, 2012 | |||||||||||||||
(dollars in millions, except per share data) | |||||||||||||||||||
Amortization expense (e) | $ | 19 | $ | 19 | $ | 18 | $ | 19 | $ | 75 | |||||||||
Adjusted Diluted EPS Excluding Amortization Expense: | |||||||||||||||||||
Diluted earnings per common share - as reported (f) | $ | 0.97 | $ | 1.09 | $ | 0.98 | $ | 0.87 | $ | 3.92 | |||||||||
Restructuring and integration charges (b) | 0.05 | 0.05 | 0.17 | 0.14 | 0.40 | ||||||||||||||
CEO succession costs (g) | 0.03 | 0.01 | — | — | 0.04 | ||||||||||||||
Adjusted diluted EPS | 1.05 | 1.15 | 1.15 | 1.01 | 4.36 | ||||||||||||||
Amortization expense (d) | 0.07 | 0.07 | 0.07 | 0.07 | 0.28 | ||||||||||||||
Adjusted diluted EPS excluding amortization expense | $ | 1.12 | $ | 1.22 | $ | 1.22 | $ | 1.08 | $ | 4.64 |
(a) | Represents amortization expense from continuing operations and diluted earnings per common share from continuing operations as reported in the Consolidated Statement of Operations included in the Company's Form 10-Q for the quarters ended March 31, 2014, June 30, 2014 and September 30, 2014. For the quarter and year ended December 31, 2014, represents amortization expense from continuing operations and diluted earnings per common share from continuing operations as reported in the Consolidated Statement of Operations included in Exhibit 99.1 to the Company's 8-K filed on January 29, 2015. |
(b) | Represents costs primarily associated with workforce reductions and professional fees incurred in connection with further restructuring and integrating our business. |
(c) | For the quarters ended March 31, 2014, June 30, 2014 and September 30, 2014, principally represents costs incurred related to legal matters. For the quarter ended December 31, 2014, principally represents a gain of $9 million associated with a decrease in the fair value of the contingent consideration accrual associated with the Summit Health acquisition, partially offset by costs incurred related to legal matters. |
(d) | Represents the impact of amortization expense, net of an estimated tax benefit, on diluted EPS. |
(e) | Represents amortization expense from continuing operations as reported in the Consolidated Statement of Operations included in the Company's form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and September 30, 2013. For the quarter ended December 31, 2013 and 2012, represents amortization expense from continuing operations as reported in the Consolidated Statement of Operations included in Exhibit 99.1 to the Company's 8-K filed on January 30, 2014. For the year ended December 31, 2013 and 2012, represents amortization expense from continuing operations as reported in the Consolidated Statement of Operations on Form 10-K for the fiscal year ended December 31, 2013. |
(f) | Represents the quarterly diluted earnings per common share from continuing operations as reported in the Quarterly Operating Results (unaudited) included in the Company's Form 10-K for the fiscal year ended December 31, 2013. For the year ended December 31, 2013 and 2012, represents diluted earnings per common share from continuing operations as reported in the Consolidated Statement of Operations on Form 10-K for the fiscal year ended December 31, 2013. |
(g) | Principally represents severance and accelerated vesting of equity awards in connection with the succession of our prior CEO. |