BUSINESS SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

The Company's DIS business provides insights through clinical testing and related services to a broad range of customers, including patients, clinicians, hospitals, IDNs, health plans, employers and ACOs. The Company is the world's leading provider of diagnostic information services, which includes providing clinical testing services such as routine (including drugs-of-abuse) testing, gene-based and esoteric (including advanced diagnostics) testing, and anatomic pathology services, as well as related services and insights. The DIS business accounted for greater than 90% of net revenues from continuing operations in 2016, 2015 and 2014.

All other operating segments include the Company's DS businesses, which consists of its risk assessment services, healthcare information technology, diagnostic products (prior to May 13, 2016), and clinical trials testing (prior to July 1, 2015) businesses. The Company's DS businesses offer a variety of solutions for life insurers, healthcare providers and others.

In addition to the sale of Focus Diagnostics (see Note 6) in 2016, the Company wound down its Celera products business, which did not have a material impact on the Company's consolidated financial statements. As a result of these transactions, the Company has disposed of its diagnostics products business.

During 2016, 2015 and 2014, the Company acquired certain operations of CLP, certain operations of MemorialCare, Superior Mobile Medics, Solstas, Summit Health and certain operations of Steward (see Note 5). CLP, MemorialCare, Solstas, Summit Health and Steward are included in the Company's DIS business. Superior Mobile Medics is included in all other operating segments.

On April 19, 2006, the Company decided to discontinue NID’s operations. The results of operations for NID have been classified as discontinued operations for all periods presented (see Note 18).

As of December 31, 2016, substantially all of the Company’s services were provided within the United States, and substantially all of the Company’s assets were located within the United States.

The following table is a summary of segment information for the years ended December 31, 2016, 2015 and 2014. 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 (loss) for the segment. General corporate activities included in the table below are comprised of general management and administrative corporate expenses, amortization and impairment of intangibles assets, other operating income and expenses net of certain general corporate activity costs that are allocated to the DIS and DS businesses, and the gains on disposition of businesses associated with the dispositions of Focus Diagnostics and Clinical Trials (see Note 6) . The accounting policies of the segments are the same as those of the Company as set forth in Note 2.

	2016			2015			2014
Net revenues:
DIS business	$	7,138		$	6,965		$	6,873
All other operating segments	377			528			562
Total net revenues	$	7,515		$	7,493		$	7,435
Operating earnings (loss):
DIS business	$	1,244		$	1,118		$	1,068
All other operating segments	64			110			94
General corporate activities	(31		)	171			(179		)
Total operating income	1,277			1,399			983
Non-operating expenses, net	(191		)	(296		)	(160		)
Income from continuing operations before income taxes and equity in earnings of equity method investees	1,086			1,103			823
Income tax expense	(429		)	(373		)	(262		)
Equity in earnings of equity method investees, net of taxes	39			23			26
Income from continuing operations	696			753			587
Income from discontinued operations, net of taxes	—			—			5
Net income	696			753			592
Less: Net income attributable to noncontrolling interests	51			44			36
Net income attributable to Quest Diagnostics	$	645		$	709		$	556

Depreciation and amortization expense for the years ended December 31, 2016, 2015 and 2014 were as follows:

	2016		2015		2014
DIS business	$	170	$	212	$	206
All other operating segments	6		10		13
General corporate	73		82		95
Total depreciation and amortization	$	249	$	304	$	314

Capital expenditures for the years ended December 31, 2016, 2015 and 2014 were as follows:

	2016		2015		2014
DIS business	$	264	$	243	$	283
All other operating segments	21		16		17
General corporate	8		4		8
Total capital expenditures	$	293	$	263	$	308

Net revenues by major service for the years ended December 31, 2016, 2015 and 2014 were as follows:

	2016		2015		2014
Routine clinical testing services	$	4,179	$	4,078	$	4,066
Gene-based and esoteric (including advanced diagnostics) testing services	2,335		2,256		2,158
Anatomic pathology testing services	624		631		649
All other	377		528		562
Total net revenues	$	7,515	$	7,493	$	7,435