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STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTEREST
 12 Months Ended
Dec. 31, 2016
Equity [Abstract]  
STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTEREST
STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTEREST
    
Stockholders' Equity

Series Preferred Stock
    
Quest Diagnostics is authorized to issue up to 10 million shares of Series Preferred Stock, par value $1.00 per share. The Company's Board of Directors has the authority to issue such shares without stockholder approval and to determine the designations, preferences, rights and restrictions of such shares. No shares are currently outstanding.
    
Common Stock

On May 4, 2006, the Company's Restated Certificate of Incorporation was amended to increase the number of authorized shares of common stock, par value $0.01 per share, from 300 million shares to 600 million shares.
    
Changes in Accumulated Other Comprehensive Income (Loss) by Component

The market value adjustments represent unrealized holding gains (losses) on available-for-sale securities, net of taxes. The net deferred loss on cash flow hedges represents deferred losses, net of taxes on the Company’s interest rate related derivative financial instruments designated as cash flow hedges, net of amounts reclassified to interest expense (see Note 14). For the years ended December 31, 2016, 2015 and 2014, the tax effects related to the market valuation adjustments, deferred losses and other were not material. Foreign currency translation adjustments are not adjusted for income taxes since they relate to indefinite investments in non-U.S. subsidiaries.
    
The changes in accumulated other comprehensive income (loss) by component for 2016, 2015 and 2014 were as follows:
 
Foreign
Currency
Translation
Adjustment
 
Market Value
Adjustment
 
Net Deferred Loss on Cash Flow Hedges
 
Other
 
Accumulated Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
Balance, December 31, 2013
$
(2
)
 
$
—

 
$
(5
)
 
$
(1
)
 
$
(8
)
Other comprehensive income (loss) before reclassifications
(7
)
 
(1
)
 
(11
)
 
(1
)
 
(20
)
Amounts reclassified from accumulated other comprehensive income (loss)
—

 
—

 
1

 
—

 
1

Net current period other comprehensive income (loss)
(7
)
 
(1
)
 
(10
)
 
(1
)
 
(19
)
Balance, December 31, 2014
(9
)
 
(1
)
 
(15
)
 
(2
)
 
(27
)
Other comprehensive income (loss) before reclassifications
(15
)
 
—

 
—

 
1

 
(14
)
Amounts reclassified from accumulated other comprehensive income (loss)
—

 
—

 
3

 
—

 
3

Net current period other comprehensive income (loss)
(15
)
 
—

 
3

 
1

 
(11
)
Balance, December 31, 2015
(24
)
 
(1
)
 
(12
)
 
(1
)
 
(38
)
Other comprehensive income (loss) before reclassifications
(34
)
 
(2
)
 
—

 
—

 
(36
)
Amounts reclassified from accumulated other comprehensive income (loss)
—

 
—

 
2

 
—

 
2

Net current period other comprehensive income (loss)
(34
)
 
(2
)
 
2

 
—

 
(34
)
Balance, December 31, 2016
$
(58
)
 
$
(3
)
 
$
(10
)
 
$
(1
)
 
$
(72
)


For the years ended December 31, 2016, 2015 and 2014, the gross deferred losses on cash flow hedges were reclassified from accumulated other comprehensive loss to interest expense, net.

Dividend Program
    
During each of the first three quarters of 2016, the Company's Board of Directors declared a quarterly cash dividend of $0.40 per common share. On November 11, 2016, the Company's Board of Directors authorized a quarterly cash dividend of $0.45 per common share. During each of the quarters of 2015, the Company's Board of Directors declared a quarterly cash dividend of $0.38 per common share. During each of the quarters in 2014, the Company's Board of Directors declared a quarterly cash dividend of $0.33 per common share.
    
Share Repurchase Program

In December 2016 and 2015, the Company’s Board of Directors authorized the Company to repurchase an additional $1 billion and $500 million, respectively, of the Company's common stock.

As of December 31, 2016, $1.4 billion remained available under the Company’s share repurchase authorization. The share repurchase authorization has no set expiration or termination date.
    
Share Repurchases    

For the year ended December 31, 2016, the Company repurchased 7.4 million shares of its common stock for $590 million, which includes 3.1 million shares repurchased under an accelerated share repurchase agreement ("ASR") as follows:

In May 2016, the Company entered into an ASR with a financial institution to repurchase $250 million of the Company's common stock as part of the Company's share repurchase program. The ASR was structured as a combination of two transactions: (1) a treasury stock repurchase; and (2) a forward contract, which permitted the Company to purchase shares immediately with the final purchase price of those shares determined by the volume weighted average price of the Company's common stock during the repurchase period, less a fixed discount. Under the ASR, the Company paid $250 million to the financial institution and received 3.1 million shares of common stock, resulting in a final price per share of $81.04. The Company initially received 2.8 million shares of its common stock during the second quarter of 2016 and received an additional 0.3 million shares upon completion of the ASR during the third quarter of 2016.

For the year ended December 31, 2015, the Company repurchased 3.2 million shares of its common stock for $224 million.

For the year ended December 31, 2014, the Company repurchased 2.2 million shares of its common stock for $132 million.

Shares Reissued from Treasury Stock

For the years ended December 31, 2016, 2015 and 2014 the Company reissued 2 million shares, 1 million shares and 2 million shares, respectively, for employee benefit plans.

Redeemable Noncontrolling Interest

On July 1, 2015, UMass Memorial Medical Center ("UMass") acquired an 18.9% noncontrolling interest in a subsidiary of the Company that performs diagnostic information services in a defined territory within the state of Massachusetts. In connection with the transaction, the Company received consideration of $68 million. Under the terms of the transaction, UMass has the right to require the Company to purchase all of its interest in the subsidiary at fair value commencing July 1, 2020. Since the redemption of the noncontrolling interest is outside of the Company's control, it has been presented outside of stockholders' equity at the greater of its carrying amount or its fair value. The Company will record changes in the fair value of the noncontrolling interest immediately as they occur. As of December 31, 2016 and 2015, the redeemable noncontrolling interest was $77 million and $70 million, respectively, and was presented at its fair value.