

2017 (a)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total Year
	(b)		(c)		(d)		(e)
Net revenues	$	1,899	$	1,943	$	1,931	$	1,936	$	7,709
Gross profit	734		773		741		742		2,990

Net income	175		207		175		267		824
Less: Net income attributable to noncontrolling interests	11		14		14		13		52
Net income attributable to Quest Diagnostics	$	164	$	193	$	161	$	254	$	772

Earnings per share attributable to Quest Diagnostics' stockholders:
Basic	$	1.19	$	1.40	$	1.18	$	1.86	$	5.63
Diluted	$	1.16	$	1.37	$	1.15	$	1.82	$	5.50



2016 (a)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total Year
	(f)		(g)		(h)		(i)
Net revenues	$	1,863	$	1,906	$	1,885	$	1,861	$	7,515
Gross profit	719		751		728		701		2,899

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

Earnings per share attributable to Quest Diagnostics' stockholders:
Basic	$	0.72	$	1.38	$	1.37	$	1.11	$	4.58
Diluted	$	0.71	$	1.37	$	1.34	$	1.09	$	4.51


(a)	In May 2016, the Company completed the sale of Focus Diagnostics (see Note 6).

(b)

Included pre-tax charges of $18 million, primarily associated with systems conversions and integration incurred in connection with further restructuring and integrating the Company ($10 million in cost of services and $8 million in selling, general and administrative expenses); and excess tax benefits associated with stock-based compensation arrangements of $16 million recorded in income tax expense.

(c)

Included pre-tax charges of $23 million, primarily associated with systems conversions and integration incurred in connection with further restructuring and integrating the Company ($9 million in cost of services, $13 million in selling, general and administrative expenses, and $1 million in equity in earnings of equity method investees, net of taxes); pre-tax gain of $7 million related to the sale of an interest in an equity method investment (recorded in other income (expense), net); $2 million in costs incurred related to certain legal matters (recorded in selling, general and administrative expenses); and excess tax benefits associated with stock-based compensation arrangements of $13 million recorded in income tax expense.

(d)

Included pre-tax charges of $23 million, primarily associated with systems conversions and integration incurred in connection with further restructuring and integrating the Company ($12 million in cost of services and $11 million in selling, general and administrative expenses); pre-tax charges of $9 million primarily associated with non-cash asset impairment charges and incremental costs incurred as a result of hurricanes ($3 million in cost of services, $1 million in selling, general and administrative expenses, and $5 million in other income (expense), net); and excess tax benefits associated with stock-based compensation arrangements of $7 million recorded in income tax expense.

(e)

Included pre-tax charges of $42 million, primarily associated with systems conversions, integration and workforce reductions incurred in connection with further restructuring and integrating the Company ($14 million in cost of services and $28 million in selling, general and administrative expenses); pre-tax charges of $6 million, primarily related to non-cash asset impairment charges and incremental costs incurred as a result of the hurricanes ($2 million in cost of services and $4 million in selling, general and administrative expenses); a provisional estimated income tax benefit of $106 million associated with the TCJA, including a deferred income tax benefit of $115 million primarily due to the remeasurement of net deferred tax liabilities and reserves at the new combined federal and state tax rate, partially offset by $9 million of current tax expense primarily due to the mandatory repatriation toll charge on undistributed foreign earnings and profits; and excess tax benefits associated with stock-based compensation arrangements of $1 million recorded in income tax expense.

(f)

Included pre-tax charges of $21 million, primarily associated with systems conversions and integration 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, representing non-cash asset impairment charges recorded in other operating expense (income), net; pre-tax charges of $2 million, primarily representing costs incurred related to certain legal matters recorded in selling, general and administrative expenses; pre-tax charges of $48 million on retirement of debt associated with the March 2016 cash tender offer recorded in other income (expense), net (see Note 13); pre-tax charges of $1 million representing non-cash asset impairment charges associated with an investment recorded in other income (expense), net; and excess tax benefits associated with stock-based compensation arrangements of $2 million recorded in income tax expense.

(g)

Included a pre-tax gain of $118 million associated with the sale of Focus Diagnostics; pre-tax charges of $19 million, primarily associated with systems conversions and integration 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 of $1 million, primarily representing costs incurred related to certain legal matters recorded in selling, general and administrative expenses; pre-tax charges of $6 million representing non-cash asset impairment charges associated with certain investments recorded in other income (expense), net; and excess tax benefits associated with stock-based compensation arrangements of $2 million recorded in income tax expense.

(h)

Included pre-tax charges of $18 million, primarily associated with systems conversions and integration 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); pre-tax gain of $21 million, principally a result of a gain on escrow recovery associated with an acquisition recorded in other operating expense (income), net; and excess tax benefits associated with stock-based compensation arrangements of $3 million recorded in income tax expense.

(i)

Included pre-tax charges of $24 million, primarily associated with systems conversions and integration 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 expense (income), net and $1 million in equity in earnings of equity method investees, net of taxes); pre-tax charges of $6 million representing non-cash asset impairment charges recorded in other operating expense (income), net; and excess tax benefits associated with stock-based compensation arrangements of $2 million recorded in income tax expense.