BUSINESS ACQUISITION (Tables)

9 Months Ended

Sep. 30, 2024

Business Combinations [Abstract]

Business Acquisition, Pro Forma Information

The following unaudited pro forma combined financial information reflects the consolidated statement of operations of the Company as if the acquisition of LifeLabs had occurred as of January 1, 2023. The pro forma information includes adjustments primarily related to the amortization of acquired intangible assets (see below), interest expense associated with debt of LifeLabs which was extinguished prior to the acquisition, interest expense associated with senior notes issued to fund the acquisition (see Note 7), the impact on depreciation expense of recording acquired property, plant and equipment at fair value (see below), and transaction costs related to the LifeLabs acquisition. The pro forma combined financial information does not include the estimated annual synergies expected to be realized upon completion of the integration of LifeLabs and therefore is not indicative of the results of operations as they would have been had the transaction been effected on the assumed date.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Pro forma net revenues	$	2,588	$	2,461	$	7,700	$	7,471
Pro forma net income attributable to Quest Diagnostics	$	222	$	225	$	647	$	661
Pro forma earnings per share attributable to Quest Diagnostics' common stockholders:
Basic	$	1.97	$	1.99	$	5.78	$	5.87
Diluted	$	1.95	$	1.97	$	5.72	$	5.79

Schedule of Consideration Paid

The following table provides a preliminary summary of the assets acquired and liabilities assumed, which may be revised as additional information becomes available during the measurement period.

	LifeLabs		Laboratory Business of Three Physician Groups in New York		Select Assets of the Outreach Laboratory Services Business of Allina Health		Other Acquisitions (a)		Total
Cash and cash equivalents	$	50	$	—	$	—	$	—	$	50
Accounts receivable	30		—		—		—		30
Other current assets	23		—		—		2		25
Property, plant and equipment	255		—		—		4		259
Finance lease assets (recorded in property, plant and equipment)	—		—		—		17		17
Operating lease right-of-use assets	67		—		—		17		84
Goodwill	300		243		175		154		872
Intangible assets	434		57		55		95		641
Other assets	36		—		—		—		36
Total assets acquired	1,195		300		230		289		2,014
Accounts payable and accrued expenses	67		—		—		—		67
Current portion of long-term operating lease liabilities	17		—		—		4		21
Finance lease liabilities (recorded in long-term debt)	—		—		—		17		17
Long-term operating lease liabilities	50		—		—		13		63
Other liabilities	8		—		—		7		15
Total liabilities assumed	142		—		—		41		183
Net assets acquired	$	1,053	$	300	$	230	$	248	$	1,831

(a) Principally relates to the acquisitions of PathAI Diagnostics and Lenco.

Schedule of Acquired Amortizable Intangible Assets

The preliminary fair values of the acquired intangible assets are as follows:

	LifeLabs		Laboratory Business of Three Physician Groups in New York		Select Assets of the Outreach Laboratory Services Business of Allina Health		Other Acquisitions (a)		Total		Weighted Average Useful Life (in years)
Customer related	$	335	$	57	$	55	$	95	$	542	15 - 25
Trade name	99		—		—		—		99		15
	$	434	$	57	$	55	$	95	$	641

(a) Principally relates to the acquisitions of PathAI Diagnostics and Lenco.