BUSINESS SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

The clinical testing that the Company performs is an essential element in the delivery of healthcare services. Physicians use clinical testing to assist in detection, diagnosis, evaluation, monitoring and treatment of diseases and other medical conditions.

The Company's DIS business provides information and insights based on clinical testing, including routine, esoteric, gene-based and anatomic pathology testing, and related services. Customers of the DIS business include patients, physicians, hospitals, ACOs, IDNs, employers, governmental institutions and other commercial clinical laboratories. The DIS business accounted for greater than 90% of net revenues from continuing operations in 2014, 2013 and 2012.

All other operating segments are included in the Company's DS business and consist of its risk assessment services, clinical trials testing, diagnostic products and healthcare information technology businesses. The Company's DS business offers a variety of solutions for life insurers, healthcare providers and others. The Company provides risk assessment services, testing for clinical trials, robust information technology solutions and diagnostic products.

During 2014, the Company acquired Solstas, Summit Health and Steward which are included in the Company's DIS business. See Note 5 for further details regarding business acquisitions.

During 2013, the Company acquired certain operations of UMass, ATN, Dignity and ConVerge which are included in the Company's DIS business. In addition, the Company completed the sale of Enterix in the third quarter of 2013, which is included in all other operating segments.

During 2012, the Company acquired the operations of S.E.D., which is included in the Company's DIS business.

On April 19, 2006, the Company decided to discontinue NID’s operations. The Company completed the sale of OralDNA in the fourth quarter of 2012 and completed the sale of HemoCue in the second quarter of 2013. 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, 2014, 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, 2014, 2013 and 2012. 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. General corporate activities included in the table below are comprised of general management and administrative corporate expenses, amortization of intangibles assets, other miscellaneous operating income and expenses, net of certain general corporate activity costs that are allocated to the DIS and DS businesses, and the third quarter of 2013 pre-tax gain on the sale of the ibrutinib royalty rights and the pre-tax loss on the sale of Enterix (see Note 6). The accounting policies of the segments are the same as those of the Company as set forth in Note 2.

	2014			2013			2012
Net revenues:
DIS business	$	6,873		$	6,587		$	6,820
All other operating segments	562			559			563
Total net revenues	$	7,435		$	7,146		$	7,383
Operating earnings (loss):
DIS business	$	1,068		$	1,201		$	1,370
All other operating segments	94			76			67
General corporate activities	(179		)	198			(236		)
Total operating income	983			1,475			1,201
Non-operating expenses, net	(134		)	(127		)	(133		)
Income from continuing operations before taxes	849			1,348			1,068
Income tax expense	262			500			402
Income from continuing operations	587			848			666
Income (loss) from discontinued operations, net of taxes	5			35			(74		)
Net income	592			883			592
Less: Net income attributable to noncontrolling interests	36			34			36
Net income attributable to Quest Diagnostics	$	556		$	849		$	556

	2014		2013		2012
Depreciation and amortization:
DIS business	$	206	$	189	$	188
All other operating segments	13		12		13
General corporate	95		82		77
	314		283		278
Adjustments: Discontinued operations	—		—		9
Total depreciation and amortization	$	314	$	283	$	287
Capital expenditures:
DIS business	$	283	$	196	$	145
All other operating segments	17		26		24
General corporate	8		9		11
	308		231		180
Adjustments: Discontinued operations	—		—		2
Total capital expenditures	$	308	$	231	$	182