2017 Form 10-K Financial Statement

#000102207918000038 Filed on February 23, 2018

View on sec.gov

Income Statement

Concept 2017 2016 Q4 2016 Q3
Revenue $7.402B $1.861B $1.885B
YoY Change 2.61% 0.65% 0.27%
Cost Of Revenue $4.719B $1.124B $1.157B
YoY Change 2.23% -2.01% -0.43%
Gross Profit $2.683B $701.0M $728.0M
YoY Change -7.45% 0.29% 1.39%
Gross Profit Margin 36.25% 37.67% 38.62%
Selling, General & Admin $1.443B $67.00M $409.0M
YoY Change 4.57% -84.38% 1.74%
% of Gross Profit 53.78% 9.56% 56.18%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $270.0M $63.00M $63.00M
YoY Change 8.43% -14.86% -18.18%
% of Gross Profit 10.06% 8.99% 8.65%
Operating Expenses $1.443B $92.00M $409.0M
YoY Change 4.57% -80.0% 1.74%
Operating Profit $1.165B $609.0M $322.0M
YoY Change -8.77% 154.81% -48.97%
Interest Expense $153.0M -$36.00M $37.00M
YoY Change 6.25% 28.57% 5.71%
% of Operating Profit 13.13% -5.91% 11.49%
Other Income/Expense, Net -$135.0M $2.000M -$33.00M
YoY Change -29.32% -33.33% -15.38%
Pretax Income $1.000B $242.0M $289.0M
YoY Change -9.09% 13.08% -51.18%
Income Tax $241.0M $84.00M $95.00M
% Of Pretax Income 24.1% 34.71% 32.87%
Net Earnings $772.0M $155.0M $192.0M
YoY Change 19.69% -17.55% -43.86%
Net Earnings / Revenue 10.43% 8.33% 10.19%
Basic Earnings Per Share $5.63 $1.11 $1.37
Diluted Earnings Per Share $5.50 $1.09 $1.34
COMMON SHARES
Basic Shares Outstanding 137.0M shares 138.6M shares 139.0M shares
Diluted Shares Outstanding 140.0M shares 142.0M shares

Balance Sheet

Concept 2017 2016 Q4 2016 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $137.0M $359.0M $406.0M
YoY Change -61.84% 169.92% 230.08%
Cash & Equivalents $137.0M $359.0M $406.0M
Short-Term Investments
Other Short-Term Assets $150.0M $164.0M $188.0M
YoY Change -8.54% -57.18% -64.19%
Inventory $95.00M $82.00M $82.00M
Prepaid Expenses
Receivables $924.0M $926.0M $966.0M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.306B $1.531B $1.642B
YoY Change -14.7% 2.0% -0.36%
LONG-TERM ASSETS
Property, Plant & Equipment $1.145B $1.029B $952.0M
YoY Change 11.27% 11.24% 7.45%
Goodwill $6.000B $6.000B
YoY Change 1.61% 1.78%
Intangibles $949.0M $972.0M
YoY Change -3.56% -3.19%
Long-Term Investments $462.0M $443.0M $452.0M
YoY Change 4.29% -6.34% -5.44%
Other Assets $136.0M $148.0M $155.0M
YoY Change -8.11% -14.94% -4.91%
Total Long-Term Assets $9.197B $8.569B $8.531B
YoY Change 7.33% 1.28% 1.25%
TOTAL ASSETS
Total Short-Term Assets $1.306B $1.531B $1.642B
Total Long-Term Assets $9.197B $8.569B $8.531B
Total Assets $10.50B $10.10B $10.17B
YoY Change 3.99% 1.39% 0.98%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $224.0M $261.0M $1.039B
YoY Change -14.18% -6.45% 6.78%
Accrued Expenses $649.0M $254.0M
YoY Change 0.31% -1.17%
Deferred Revenue
YoY Change
Short-Term Debt $71.00M $0.00 $0.00
YoY Change
Long-Term Debt Due $36.00M $6.000M $7.000M
YoY Change 500.0% -96.23% -95.63%
Total Short-Term Liabilities $1.057B $981.0M $1.046B
YoY Change 7.75% -16.37% -7.68%
LONG-TERM LIABILITIES
Long-Term Debt $3.748B $3.728B $3.815B
YoY Change 0.54% 6.76% 6.83%
Other Long-Term Liabilities $663.0M $654.0M $542.0M
YoY Change 1.38% 27.24% -20.29%
Total Long-Term Liabilities $4.411B $4.382B $4.357B
YoY Change 0.66% 9.39% 2.49%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.057B $981.0M $1.046B
Total Long-Term Liabilities $4.411B $4.382B $4.357B
Total Liabilities $5.582B $5.363B $5.403B
YoY Change 2.01% 3.55% 0.35%
SHAREHOLDERS EQUITY
Retained Earnings $6.613B $6.520B
YoY Change 6.68% 7.48%
Common Stock $2.547B $2.528B
YoY Change 2.58% 2.31%
Preferred Stock
YoY Change
Treasury Stock (at cost) $4.460B $4.324B
YoY Change 12.63% 10.39%
Treasury Stock Shares 79.00M shares 77.00M shares
Shareholders Equity $4.921B $4.628B $4.663B
YoY Change
Total Liabilities & Shareholders Equity $10.50B $10.10B $10.17B
YoY Change 3.99% 1.39% 0.98%

Cashflow Statement

Concept 2017 2016 Q4 2016 Q3
OPERATING ACTIVITIES
Net Income $772.0M $155.0M $192.0M
YoY Change 19.69% -17.55% -43.86%
Depreciation, Depletion And Amortization $270.0M $63.00M $63.00M
YoY Change 8.43% -14.86% -18.18%
Cash From Operating Activities $1.175B $351.0M $301.0M
YoY Change 5.29% 29.04% 41.98%
INVESTING ACTIVITIES
Capital Expenditures $252.0M -$128.0M -$61.00M
YoY Change -13.99% 36.17% 17.31%
Acquisitions $581.0M $4.000M
YoY Change 317.99% -88.57%
Other Investing Activities -$1.000M $46.00M -$11.00M
YoY Change -90.0% -248.39% -82.26%
Cash From Investing Activities -$830.0M -$82.00M -$72.00M
YoY Change 553.54% -34.4% -36.84%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $465.0M
YoY Change -21.19%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$592.0M -291.0M -106.0M
YoY Change -19.78% 112.41% -15.2%
NET CHANGE
Cash From Operating Activities $1.175B 351.0M 301.0M
Cash From Investing Activities -$830.0M -82.00M -72.00M
Cash From Financing Activities -$592.0M -291.0M -106.0M
Net Change In Cash -$247.0M -22.00M 123.0M
YoY Change -198.41% -320.0% -555.56%
FREE CASH FLOW
Cash From Operating Activities $1.175B $351.0M $301.0M
Capital Expenditures $252.0M -$128.0M -$61.00M
Free Cash Flow $923.0M $479.0M $362.0M
YoY Change 12.15% 30.87% 37.12%

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81000000 USD
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319000000 USD
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361000000 USD
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56000000 USD
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262000000 USD
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343000000 USD
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298000000 USD
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42000000 USD
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16000000 USD
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42000000 USD
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270000000 USD
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40000000 USD
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60000000 USD
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130000000 USD
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P3Y
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0.021
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0.024
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.019
CY2015 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.21
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.216
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.198
CY2015 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.017
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.014
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.021
CY2015 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
11.57
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
10.35
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">DESCRIPTION OF BUSINESS</font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">&#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;"></font><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Background</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Quest Diagnostics Incorporated and its subsidiaries ("Quest Diagnostics" or the "Company") empower people to take action to improve health outcomes.&#160; The Company uses its extensive database of clinical lab results to derive diagnostic insights that reveal new avenues to identify and treat disease, inspire healthy behaviors and improve healthcare management.&#160; The Company's diagnostic information services business ("DIS") provides 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 Company provides services to a broad range of customers, including patients, clinicians, hospitals, independent delivery networks ("IDNs"), health plans, employers and accountable care organizations ("ACOs"). The Company offers the broadest access in the United States to diagnostic information services through its nationwide network of laboratories, patient service centers and phlebotomists in physician offices and the Company's connectivity resources, including call centers and mobile paramedics, nurses and other health and wellness professionals. The Company is the world's leading provider of diagnostic information services. The Company provides interpretive consultation with one of the largest medical and scientific staffs in the industry and hundreds of M.D.s and Ph.D.s, many of whom are recognized leaders in their fields. The Company's Diagnostic Solutions ("DS") businesses offer a variety of solutions for life insurers and healthcare organizations and clinicians. The Company is the leading provider of risk assessment services for the life insurance industry. In addition, the Company offers healthcare organizations and clinicians robust information technology solutions. Prior to the sale of the Focus Diagnostics products business on May 13, 2016 (see Note 6), the Company's diagnostics products business manufactured and marketed diagnostic products. Prior to the contribution of its clinical trials testing business to the Q</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">2</sup></font><font style="font-family:inherit;font-size:10pt;"> Solutions joint venture on July 1, 2015 (see Note 6), the Company's clinical trials testing business was a leading provider of central laboratory testing for clinical trials.</font></div></div>
CY2017 us-gaap Use Of Estimates
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with accounting principles generally accepted in the United States (&#8220;GAAP&#8221;) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></div></div>

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