

2016 (a)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total Year
	(b)		(c)		(d)		(e)
Net revenues	$	1,863	$	1,906	$	1,885	$	1,861	$	7,515
Gross profit	719		751		728		701		2,899

Income from continuing operations	115		209		205		167		696
Income from discontinued operations, net of taxes	—		—		—		—		—
Net income	115		209		205		167		696
Less: Net income attributable to noncontrolling interests	12		14		13		12		51
Net income attributable to Quest Diagnostics	$	103	$	195	$	192	$	155	$	645

Amounts attributable to Quest Diagnostics' stockholders:
Income from continuing operations	$	103	$	195	$	192	$	155	$	645
Income from discontinued operations, net of taxes	—		—		—		—		—
Net income	$	103	$	195	$	192	$	155	$	645

Earnings per share attributable to Quest Diagnostics' stockholders - basic:
Income from continuing operations	$	0.72	$	1.38	$	1.37	$	1.11	$	4.58
Income from discontinued operations	—		—		—		—		—
Net income	$	0.72	$	1.38	$	1.37	$	1.11	$	4.58

Earnings per share attributable to Quest Diagnostics' stockholders - diluted:
Income from continuing operations	$	0.71	$	1.37	$	1.34	$	1.09	$	4.51
Income from discontinued operations	—		—		—		—		—
Net income	$	0.71	$	1.37	$	1.34	$	1.09	$	4.51



2015 (a)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total Year
	(f)		(g)		(h)		(i)
Net revenues	$	1,839	$	1,925	$	1,880	$	1,849	$	7,493
Gross profit	676		743		718		699		2,836

Income from continuing operations	70		129		354		200		753
Income from discontinued operations, net of taxes	—		—		—		—		—
Net income	70		129		354		200		753
Less: Net income attributable to noncontrolling interests	9		11		12		12		44
Net income attributable to Quest Diagnostics	$	61	$	118	$	342	$	188	$	709

Amounts attributable to Quest Diagnostics' stockholders:
Income from continuing operations	$	61	$	118	$	342	$	188	$	709
Income from discontinued operations, net of taxes	—		—		—		—		—
Net income	$	61	$	118	$	342	$	188	$	709

Earnings per share attributable to Quest Diagnostics' stockholders - basic:
Income from continuing operations	$	0.42	$	0.82	$	2.37	$	1.31	$	4.92
Income from discontinued operations	—		—		—		—		—
Net income	$	0.42	$	0.82	$	2.37	$	1.31	$	4.92

Earnings per share attributable to Quest Diagnostics' stockholders - diluted:
Income from continuing operations	$	0.42	$	0.81	$	2.35	$	1.29	$	4.87
Income from discontinued operations	—		—		—		—		—
Net income	$	0.42	$	0.81	$	2.35	$	1.29	$	4.87

(a)

During the third quarter of 2006, the Company completed its wind down of NID and classified the operations of NID as discontinued operations. Results of operations have been prepared to report the results of NID as discontinued operations for all periods presented (see Note 18). In May 2016, the Company completed the sale of Focus Diagnostics (see Note 6). In July 2015, the Company contributed its clinical trials testing business to a newly formed global clinical trials central laboratory services joint venture, Q² Solutions (see Note 6). Subsequent to the contribution, the Company's ownership interest in the joint venture is being accounted for under the equity method of accounting.

(b)

Included pre-tax charges of $21 million, primarily associated with systems conversions and integration costs incurred in connection with further restructuring and integrating the Company ($7 million in cost of services, $12 million in selling, general and administrative expenses and $2 million in equity in earnings of equity method investees, net of taxes); pre-tax charges of $1 million in other operating (income) expense, net, representing non-cash asset impairment charges; pre-tax charges in selling, general and administrative expenses of $2 million, primarily representing costs incurred related to certain legal matters; pre-tax charges of $48 million on retirement of debt associated with the March 2016 cash tender offer in other (expense) income, net (see Note 13); and pre-tax charges of $1 million representing non-cash asset impairment charges associated with an investment.

(c)

Included a pre-tax gain of $118 million associated with the sales of the Focus Diagnostics; pre-tax charges of $19 million, primarily associated with systems conversions and integration costs incurred in connection with further restructuring and integrating the Company ($10 million in cost of services, $8 million in selling, general and administrative expenses and $1 million in equity in earnings of equity method investees, net of taxes); pre-tax charges in selling, general and administrative expenses of $1 million, primarily representing costs incurred related to certain legal matters; and pre-tax charges of $6 million representing non-cash asset impairment charges associated with certain investments in other (expense) income, net.

(d)

Included pre-tax charges of $18 million, primarily associated with systems conversions and integration costs incurred in connection with further restructuring and integrating the Company ($8 million in cost of services and $10 million in selling, general and administrative expenses); and pre-tax gain of $21 million, principally a result of a gain on escrow recovery associated with an acquisition in other operating (income) expense, net.

(e)

Included pre-tax charges of $24 million, primarily associated with systems conversions and integration costs incurred in connection with further restructuring and integrating the Company ($15 million in cost of services, $7 million in selling, general and administrative expenses, $1 million in other operating (income) expense, net and $1 million in equity in earnings of equity method investees, net of taxes); and pre-tax charges of $6 million in other operating (income) expense, net, representing non-cash asset impairment charges.

(f)

Included pre-tax charges of $31 million, primarily associated with workforce reductions and professional fees incurred in connection with further restructuring and integrating the Company ($20 million in cost of services and $11 million in selling, general and administrative expenses); pre-tax charges of $8 million in other operating (income) expense, net, representing non-cash asset impairment charges associated with our Celera products business; pre-tax charges in selling, general and administrative expenses of $2 million, principally representing costs incurred related to certain legal matters; and pre-tax charges of $79 million on retirement of debt associated with the March 2015 cash tender offer in other (expense) income, net (see Note 13).

(g)

Included pre-tax charges of $23 million, primarily associated with workforce reductions and professional fees incurred in connection with further restructuring and integrating the Company ($11 million in cost of services and $12 million in selling, general and administrative expenses); a pre-tax gain included in other operating (income) expense, net of $13 million associated with a decrease in the fair value of the contingent consideration accrual associated with our Summit Health acquisition (see Note 5 and Note 7); pre-tax charges in selling, general and administrative expenses of $5 million, principally representing costs incurred related to certain legal matters; pre-tax charges of $5 million in other operating (income) expense, net, representing non-cash asset impairment charges; and pre-tax charges of $65 million on retirement of debt associated with the April 2015 redemption in other (expense) income, net (see Note 13).

(h)

Included a pre-tax gain of $334 million associated with the contribution of the Company's clinical trials testing business to Q² Solutions (see Note 6); and pre-tax charges of $34 million, primarily associated with workforce reductions and professional fees incurred in connection with further restructuring and integrating the Company ($20 million in cost of services, $9 million in selling, general and administrative expenses and $5 million equity in earnings of equity method investees, net of taxes).

(i)

Included pre-tax charges of $22 million, primarily associated with workforce reductions and professional fees incurred in connection with further restructuring and integrating the Company ($12 million in cost of services and $10 million in selling, general and administrative expenses); pre-tax charges of $11 million in other operating (income) expense, net, representing non-cash asset impairment charges associated with winding down a subsidiary; and pre-tax charges in selling, general and administrative expenses of $10 million, principally representing costs incurred related to certain legal matters. Income from continuing operations includes a deferred income tax benefit of $58 million associated with winding down a subsidiary.