BUSINESS SEGMENT INFORMATION

The Company's DIS business is the only reportable segment based on the manner in which the Chief Executive Officer, who is the Company's chief operating decision maker ("CODM"), assesses performance and allocates resources across the organization. The DIS business provides diagnostic information 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 information and insights based on the industry-leading menu of routine, non-routine and advanced clinical testing and anatomic pathology testing, and other diagnostic information services. The DIS business accounted for greater than 90% of net revenues in 2017, 2016 and 2015.

All other operating segments include the Company's DS businesses, which consists of its risk assessment services, healthcare information technology, diagnostic products (prior to disposition on May 13, 2016), and clinical trials testing (prior to the formation of the Q² Solutions joint venture on July 1, 2015) businesses. The Company's DS businesses offer a variety of solutions for life insurers and healthcare organizations and clinicians.

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.

As of December 31, 2017, 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, 2017, 2016 and 2015. Segment asset information is not presented since it is not used by the CODM 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.



	2017			2016			2015
Net revenues:
DIS business	$	7,370		$	7,138		$	6,965
All other operating segments	339			377			528
Total net revenues	$	7,709		$	7,515		$	7,493

Operating earnings (loss):
DIS business	$	1,313		$	1,244		$	1,118
All other operating segments	52			64			110
General corporate activities	(200		)	(31		)	171
Total operating income	1,165			1,277			1,399
Non-operating expenses, net	(135		)	(191		)	(296		)
Income before income taxes and equity in earnings of equity method investees	1,030			1,086			1,103
Income tax expense	(241		)	(429		)	(373		)
Equity in earnings of equity method investees, net of taxes	35			39			23
Net income	824			696			753
Less: Net income attributable to noncontrolling interests	52			51			44
Net income attributable to Quest Diagnostics	$	772		$	645		$	709

Depreciation and amortization expense for the years ended December 31, 2017, 2016 and 2015 were as follows:



	2017		2016		2015

DIS business	$	189	$	170	$	212
All other operating segments	6		6		10
General corporate	75		73		82
Total depreciation and amortization	$	270	$	249	$	304

Capital expenditures for the years ended December 31, 2017, 2016 and 2015 were as follows:



	2017		2016		2015

DIS business	$	219	$	264	$	243
All other operating segments	15		21		16
General corporate	18		8		4
Total capital expenditures	$	252	$	293	$	263

Net revenues by major service for the years ended December 31, 2017, 2016 and 2015 were as follows:



	2017		2016		2015

Routine clinical testing services	$	4,309	$	4,179	$	4,078
Gene-based and esoteric (including advanced diagnostics) testing services	2,449		2,335		2,256
Anatomic pathology testing services	612		624		631
All other	339		377		528
Total net revenues	$	7,709	$	7,515	$	7,493