Summary of Segment Reporting Information by Segment |
The following table is a summary of segment information for the three and six months ended June 30, 2025 and 2024. Segment asset information is not presented since it is not received by the CODM at the operating segment level. The CODM regularly reviews certain consolidated expenses, including employee compensation costs. "Other segment items" principally consist of costs for obtaining, transporting and testing specimens, facility costs used for the delivery of the Company's services, costs associated with the Company's sales and marketing efforts, and costs related to billing operations. Operating income (loss) of each segment represents net revenues less directly identifiable expenses. General corporate activities included in the table below are comprised of general management and administrative corporate expenses, amortization and impairment of intangibles 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 2024 Annual Report on Form 10-K and Note 2 to the interim unaudited consolidated financial statements. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | | June 30, 2025 | | June 30, 2025 | | | | DIS | | | | Total | | DIS | | Total | | | Net revenues | $ | 2,699 | | | | | $ | 2,699 | | | $ | 5,288 | | | $ | 5,288 | | | | DS revenues | | | | | 62 | | | | | 125 | | | | Total net revenues | | | | | $ | 2,761 | | | | | $ | 5,413 | | | | | | | | | | | | | | | | Less: Other segment items | 2,205 | | | | | | | 4,380 | | | | | | Segment operating income | $ | 494 | | | | | $ | 494 | | | $ | 908 | | | $ | 908 | | | | DS operating income | | | | | 7 | | | | | 15 | | | | General corporate activities | | | | | (63) | | | | | (139) | | | | Total operating income | | | | | 438 | | | | | 784 | | | | Non-operating expense, net | | | | | (54) | | | | | (124) | | | | Income before income taxes and equity in earnings of equity method investees | | | | | 384 | | | | | 660 | | | | Income tax expense | | | | | (97) | | | | | (156) | | | | Equity in earnings of equity method investees, net of taxes | | | | | 9 | | | | | 27 | | | | Net income | | | | | 296 | | | | | 531 | | | | Less: Net income attributable to noncontrolling interests | | | | | 14 | | | | | 29 | | | | Net income attributable to Quest Diagnostics | | | | | $ | 282 | | | | | $ | 502 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, 2024 | | June 30, 2024 | | | DIS | | | | Total | | DIS | | Total | | Net revenues | $ | 2,333 | | | | | $ | 2,333 | | | $ | 4,631 | | | $ | 4,631 | | | DS revenues | | | | | 64 | | | | | 132 | | | Total net revenues | | | | | $ | 2,397 | | | | | $ | 4,763 | | | | | | | | | | | | | | Less: Other segment items | 1,913 | | | | | | | 3,838 | | | | | Segment operating income | $ | 420 | | | | | $ | 420 | | | $ | 793 | | | $ | 793 | | | DS operating income | | | | | 8 | | | | | 17 | | | General corporate activities | | | | | (73) | | | | | (155) | | | Total operating income | | | | | 355 | | | | | 655 | | | Non-operating expense, net | | | | | (41) | | | | | (75) | | | Income before income taxes and equity in earnings of equity method investees | | | | | 314 | | | | | 580 | | | Income tax expense | | | | | (74) | | | | | (140) | | | Equity in earnings of equity method investees, net of taxes | | | | | — | | | | | 8 | | | Net income | | | | | 240 | | | | 448 | | Less: Net income attributable to noncontrolling interests | | | | | 11 | | | | 25 | | Net income attributable to Quest Diagnostics | | | | | $ | 229 | | | | | $ | 423 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization expense for the three and six months ended June 30, 2025 and 2024 was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | DIS business | $ | 100 | | | $ | 84 | | | $ | 197 | | | $ | 168 | | All other operating segments | 3 | | | 3 | | | 7 | | | 6 | | General corporate | 40 | | | 30 | | | 79 | | | 59 | | Total depreciation and amortization | $ | 143 | | | $ | 117 | | | $ | 283 | | | $ | 233 | |
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