XML 31 R20.htm IDEA: XBRL DOCUMENT v3.20.2
BUSINESS SEGMENT INFORMATION
6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
BUSINESS SEGMENT INFORMATION 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 95% of net revenues in 2020 and 2019.

        All other operating segments include the Company's DS businesses, which consist of its risk assessment services and healthcare information technology businesses. The Company's DS businesses are the leading provider of risk assessment services for the life insurance industry and offer healthcare organizations and clinicians robust information technology solutions.
         
        As of June 30, 2020, 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 three and six months ended June 30, 2020 and 2019. 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 intangible assets and other operating income and expenses, net of certain general corporate activity costs that are allocated to the DIS and DS businesses. The accounting policies of the segments are the same as those of the Company as set forth in Note 2 to the audited consolidated financial statements contained in the Company’s 2019 Annual Report on Form 10-K and Note 2 to the interim unaudited consolidated financial statements.
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Net revenues:    
DIS business$1,764  $1,872  $3,508  $3,684  
All other operating segments63  81  141  160  
Total net revenues $1,827  $1,953  $3,649  $3,844  
Operating earnings (loss):    
DIS business$280  $338  $485  $618  
All other operating segments 12  13  21  
General corporate activities(1) (43) (40) (84) 
Total operating income283  307  458  555  
Non-operating expenses, net(28) (42) (85) (77) 
Income from continuing operations before income taxes and equity in earnings of equity method investees
255  265  373  478  
Income tax expense
(66) (63) (92) (113) 
Equity in earnings of equity method investees, net of taxes 17  18  30  
Income from continuing operations193  219  299  395  
Income from discontinued operations, net of taxes—  20  —  20  
Net income193  239  299  415  
Less: Net income attributable to noncontrolling interests 13  15  25  
Net income attributable to Quest Diagnostics$185  $226  $284  $390