Quest Diagnostics (DGX) 10-Q 22 Apr 22 2022 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2022	Apr. 14, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-12215
Entity Registrant Name	Quest Diagnostics Inc
Entity Central Index Key	0001022079
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	16-1387862
Entity Address, Address Line One	500 Plaza Drive
Entity Address, City or Town	Secaucus,
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07094
City Area Code	(973)
Local Phone Number	520-2700
Title of 12(b) Security	Common Stock, $0.01 Par Value
Trading Symbol	DGX
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		117,365,028

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Net revenues	$ 2,611	$ 2,720
Operating costs and expenses and other operating income:
Cost of services	1,646	1,626
Selling, general and administrative	425	407
Amortization of intangible assets	27	27
Total operating costs and expenses, net	2,098	2,060
Operating income	513	660
Other income (expense):
Interest expense, net	(37)	(38)
Other (expense) income, net	(24)	4
Total non-operating expense, net	(61)	(34)
Income before income taxes and equity in earnings of equity method investees	452	626
Income tax expense	(110)	(153)
Equity in earnings of equity method investees, net of taxes	31	17
Net income	373	490
Less: Net income attributable to noncontrolling interests	18	21
Net income attributable to Quest Diagnostics	$ 355	$ 469
Earnings per share attributable to Quest Diagnostics’ common stockholders:
Basic(in dollars per share)	$ 2.97	$ 3.52
Diluted (in dollars per share)	$ 2.92	$ 3.46
Weighted average common shares outstanding:
Basic (in Shares)	119	133
Diluted (in Shares)	121	135

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 373	$ 490
Other comprehensive income (loss):
Foreign currency translation adjustment	(2)	(3)
Net change in available-for-sale debt securities, net of taxes	0	(7)
Other comprehensive loss	(2)	(10)
Comprehensive income	371	480
Less: Comprehensive income attributable to noncontrolling interests	18	21
Comprehensive income attributable to Quest Diagnostics	$ 353	$ 459

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Assets
Cash and cash equivalents	$ 712	$ 872
Accounts receivable, net of allowance for credit losses of $30 and $31 as of March 31, 2022 and December 31, 2021, respectively	1,371	1,438
Inventories	197	208
Prepaid expenses and other current assets	195	223
Total current assets	2,475	2,741
Property, plant and equipment, net	1,668	1,707
Operating lease right-of-use assets	620	597
Goodwill	7,197	7,095
Intangible assets, net	1,172	1,167
Investments in equity method investees	155	141
Other assets	155	163
Total assets	13,442	13,611
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses	1,544	1,600
Current portion of long-term debt	2	2
Current portion of long-term operating lease liabilities	154	151
Total current liabilities	1,700	1,753
Long-term debt	3,985	4,010
Long-term operating lease liabilities	522	494
Other liabilities	742	792
Commitments and contingencies
Redeemable noncontrolling interest	78	79
Quest Diagnostics stockholders’ equity:
Common stock, par value $0.01 per share; 600 shares authorized as of both March 31, 2022 and December 31, 2021; 162 shares issued as of both March 31, 2022 and December 31, 2021	2	2
Additional paid-in capital	2,226	2,260
Retained earnings	7,926	7,649
Accumulated other comprehensive loss	(16)	(14)
Treasury stock, at cost; 45 and 43 shares as of March 31, 2022 and December 31, 2021, respectively	(3,761)	(3,453)
Total Quest Diagnostics stockholders' equity	6,377	6,444
Noncontrolling interests	38	39
Total stockholders' equity	6,415	6,483
Total liabilities and stockholders' equity	$ 13,442	$ 13,611

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 30	$ 31
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	600	600
Common stock, shares issued (in shares)	162	162
Treasury stock (in shares)	45	43

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income	$ 373	$ 490
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	106	101
Provision for credit losses	0	2
Deferred income tax benefit	(43)	(17)
Stock-based compensation expense	18	18
Other, net	4	(2)
Changes in operating assets and liabilities:
Accounts receivable	72	138
Accounts payable and accrued expenses	(165)	(164)
Income taxes payable	95	163
Other assets and liabilities, net	20	2
Net cash provided by operating activities	480	731
Cash flows from investing activities:
Business acquisitions, net of cash acquired	(105)	0
Capital expenditures	(63)	(86)
Increase in investments and other assets	(1)	(7)
Net cash used in investing activities	(169)	(93)
Cash flows from financing activities:
Repayments of debt	(1)	(1)
Purchases of treasury stock	(373)	(410)
Exercise of stock options	10	17
Employee payroll tax withholdings on stock issued under stock-based compensation plans	(27)	(21)
Dividends paid	(74)	(75)
Distributions to noncontrolling interest partners	(20)	(29)
Other financing activities, net	14	(47)
Net cash used in financing activities	(471)	(566)
Net change in cash and cash equivalents and restricted cash	(160)	72
Cash and cash equivalents and restricted cash, beginning of period	872	1,158
Cash and cash equivalents and restricted cash, end of period	$ 712	$ 1,230

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock, at Cost	Non-controlling Interests
Balance, shares at Dec. 31, 2020		133
Balance, value at Dec. 31, 2020	$ 6,809	$ 2	$ 2,841	$ 9,303	$ (21)	$ (5,366)	$ 50
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	486			469			17
Other comprehensive income (loss), net of taxes	(10)				(10)
Dividends declared	(82)			(82)
Distributions to noncontrolling interest partners	(22)						(22)
Issuance of common stock under benefit plans	5		(29)			34
Stock-based compensation expense	18		18
Exercise of stock options, shares		1
Exercise of stock options	17		3			14
Shares to cover employee payroll tax withholdings on stock issued under stock-based compensation plans	(21)		(9)			$ (12)
Purchases of treasury stock, shares		(3)				(3.4)
Purchases of treasury stock	(410)					$ (410)
Balance, shares at Mar. 31, 2021		131
Balance, value at Mar. 31, 2021	6,790	$ 2	2,824	9,690	(31)	(5,740)	45
Balance, Value at Dec. 31, 2020	82
Redeemable Non-controlling Interest [Abstract]
Net income	4
Distributions to noncontrolling interest partners	(7)
Balance, Value at Mar. 31, 2021	79
Balance, shares at Dec. 31, 2021		119
Balance, value at Dec. 31, 2021	6,483	$ 2	2,260	7,649	(14)	(3,453)	39
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	371			355			16
Other comprehensive income (loss), net of taxes	(2)				(2)
Dividends declared	(78)			(78)
Distributions to noncontrolling interest partners	(17)						(17)
Issuance of common stock under benefit plans, shares		1
Issuance of common stock under benefit plans	7		(41)			48
Stock-based compensation expense	18		18
Exercise of stock options	10		(1)			11
Shares to cover employee payroll tax withholdings on stock issued under stock-based compensation plans	(27)		(10)			$ (17)
Purchases of treasury stock, shares		(3)				(2.6)
Purchases of treasury stock	(350)					$ (350)
Balance, shares at Mar. 31, 2022		117
Balance, value at Mar. 31, 2022	6,415	$ 2	$ 2,226	$ 7,926	$ (16)	$ (3,761)	$ 38
Balance, Value at Dec. 31, 2021	79
Redeemable Non-controlling Interest [Abstract]
Net income	2
Distributions to noncontrolling interest partners	(3)
Balance, Value at Mar. 31, 2022	$ 78

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	3 Months Ended
	Mar. 31, 2022
Description of Business (Abstract)
DESCRIPTION OF BUSINESS	DESCRIPTION OF BUSINESS Background

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The interim unaudited consolidated financial statements reflect all adjustments which in the opinion of management are necessary for a fair statement of results of operations, comprehensive income, financial condition, cash flows and stockholders' equity for the periods presented. Except as otherwise disclosed, all such adjustments are of a normal recurring nature. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. These interim unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s 2021 Annual Report on Form 10-K. The year-end balance sheet data was derived from the audited consolidated financial statements as of December 31, 2021 but does not include all the disclosures required by accounting principles generally accepted in the United States (“GAAP”). The accounting policies of the Company are the same as those set forth in Note 2 to the audited consolidated financial statements contained in the Company’s 2021 Annual Report on Form 10-K. The Company's testing volume and revenues have been materially impacted by the COVID-19 pandemic, including periods of significant demand for COVID-19 testing. As a result, operating results for the three months ended March 31, 2022 may not be indicative of the results that may be expected for the full year. Use of Estimates The preparation of financial statements in conformity with GAAP 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. Earnings Per Share The Company's unvested restricted stock units that contain non-forfeitable rights to dividends are participating securities and, therefore, are included in the earnings allocation in computing earnings per share using the two-class method. Basic earnings per common share is calculated by dividing net income attributable to Quest Diagnostics, adjusted for earnings allocated to participating securities, by the weighted average number of common shares outstanding. Diluted earnings per common share is calculated by dividing net income attributable to Quest Diagnostics, adjusted for earnings allocated to participating securities, by the weighted average number of common shares outstanding after giving effect to all potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include the dilutive effect of outstanding stock options and performance share units granted under the Company's Amended and Restated Employee Long-Term Incentive Plan and outstanding stock options granted under its Amended and Restated Non-Employee Director Long-Term Incentive Plan, as well as the dilutive effect of accelerated share repurchase agreements, if applicable. Earnings allocable to participating securities include the portion of dividends declared as well as the portion of undistributed earnings during the period allocable to participating securities. New Accounting Standards to be Adopted In March 2020, the Financial Accounting Standards Board issued a new accounting standard which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform due to the risk of cessation of the London Interbank Offered Rate ("LIBOR"). The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The pronouncement is effective immediately and can be applied to contract modifications through December 31, 2022. To the extent that, prior to December 31, 2022, the Company enters into any contract modifications for which the optional expedients are applied, the adoption of this standard is not expected to have a material impact on the Company’s consolidated results of operations, financial position or cash flows.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2022
Earnings Per Share, Basic and Diluted [Abstract]
EARNINGS (LOSS) PER SHARE	EARNINGS PER SHARE The computation of basic and diluted earnings per common share was as follows (in millions, except per share data): Three Months Ended March 31, 2022 2021 Amounts attributable to Quest Diagnostics’ common stockholders: Net income attributable to Quest Diagnostics $ 355 $ 469 Less: Earnings allocated to participating securities 1 1 Earnings available to Quest Diagnostics’ common stockholders – basic and diluted $ 354 $ 468 Weighted average common shares outstanding – basic 119 133 Effect of dilutive securities: Stock options and performance share units 2 2 Weighted average common shares outstanding – diluted 121 135 Earnings per share attributable to Quest Diagnostics’ common stockholders: Basic $ 2.97 $ 3.52 Diluted $ 2.92 $ 3.46 The following securities were not included in the calculation of diluted earnings per share due to their antidilutive effect: Three Months Ended March 31, 2022 2021 Stock options and performance share units — 1

BUSINESS ACQUISITIONS

BUSINESS ACQUISITIONS	3 Months Ended
	Mar. 31, 2022
Business Combinations [Abstract]
BUSINESS ACQUISITIONS	BUSINESS ACQUISITIONS On February 1, 2022, the Company acquired Pack Health, LLC ("Pack Health"), a patient engagement company that helps individuals adopt healthier behaviors to improve outcomes, in an all cash transaction for $123 million, net of $4 million cash acquired, which consisted of cash consideration of $105 million and contingent consideration initially estimated at $18 million. The contingent consideration arrangement is dependent upon the achievement of certain revenue benchmarks. Based on the preliminary purchase price allocation, which may be revised as additional information becomes available during the measurement period, the assets acquired and liabilities assumed consist of $96 million of goodwill (of which $78 million is tax-deductible), $30 million of intangible assets, $5 million of operating lease right-of-use assets, $5 million of operating lease liabilities and $(3) million of working capital. The intangible assets consist primarily of customer-related assets which are being amortized over a useful life of 15 years. The acquisition was accounted for under the acquisition method of accounting. As such, the assets acquired and liabilities assumed were recorded based on their estimated fair values as of the closing date. Supplemental pro forma combined financial information has not been presented as the impact of the acquisition is not material to the Company's consolidated financial statements. The goodwill recorded primarily includes the expected synergies resulting from combining the operations of the acquired entity with those of the Company and the value associated with an assembled workforce and other intangible assets that do not qualify for separate recognition. All of the goodwill acquired in connection with the acquisition has been allocated to the Company's DIS business. For further details regarding business segment information, see Note 11. On December 13, 2021, the Company completed the acquisition of assets of Labtech Diagnostics, LLC ("Labtech"), an independent clinical diagnostic laboratory provider serving physicians and patients primarily in South Carolina, North Carolina, Florida and Georgia, and recorded the assets acquired and liabilities assumed based on a preliminary purchase price allocation. During the three months ended March 31, 2022, the Company revised its purchase price allocation and recorded a $7 million increase to goodwill, a $3 million increase to customer-related intangible assets and a $10 million increase to the estimated contingent consideration liability. These adjustments did not have a material impact on the Company's consolidated results of operations.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table provides a summary of the recognized assets and liabilities that are measured at fair value on a recurring basis: Basis of Fair Value Measurements Quoted Prices in Active Markets for Identical Assets/Liabilities Significant Other Observable Inputs Significant Unobservable Inputs March 31, 2022 Total Level 1 Level 2 Level 3 Assets: Deferred compensation trading securities $ 75 $ 75 $ — $ — Cash surrender value of life insurance policies 54 — 54 — Equity investments 28 28 — — Available-for-sale debt securities 1 — — 1 Total $ 158 $ 103 $ 54 $ 1 Liabilities: Deferred compensation liabilities $ 136 $ — $ 136 $ — Contingent consideration 33 — — 33 Total $ 169 $ — $ 136 $ 33 Redeemable noncontrolling interest $ 78 $ — $ — $ 78 Basis of Fair Value Measurements December 31, 2021 Total Level 1 Level 2 Level 3 Assets: Deferred compensation trading securities $ 77 $ 77 $ — $ — Cash surrender value of life insurance policies 57 — 57 — Equity investments 44 44 — — Available-for-sale debt securities 1 — — 1 Total $ 179 $ 121 $ 57 $ 1 Liabilities: Deferred compensation liabilities $ 143 $ — $ 143 $ — Contingent consideration 5 — — 5 Total $ 148 $ — $ 143 $ 5 Redeemable noncontrolling interest $ 79 $ — $ — $ 79 A detailed description regarding the Company's fair value measurements is contained in Note 7 to the audited consolidated financial statements in the Company's 2021 Annual Report on Form 10-K. The Company offers certain employees the opportunity to participate in a non-qualified supplemental deferred compensation plan. A participant's deferrals, together with Company matching credits, are invested in a variety of participant- directed stock and bond mutual funds that are classified as trading securities. The trading securities are classified within Level 1 of the fair value hierarchy because the changes in the fair value of these securities are measured using quoted prices in active markets based on the market price per unit multiplied by the number of units held, exclusive of any transaction costs. A corresponding adjustment for changes in fair value of the trading securities is also reflected in the changes in fair value of the deferred compensation obligation. The deferred compensation liabilities are classified within Level 2 of the fair value hierarchy because their inputs are derived principally from observable market data by correlation to the trading securities. The Company offers certain employees the opportunity to participate in a non-qualified deferred compensation program. A participant's deferrals, together with Company matching credits, are “invested” at the direction of the employee in a hypothetical portfolio of investments which are tracked by an administrator. The Company purchases life insurance policies, with the Company named as beneficiary of the policies, for the purpose of funding the program's liability. Changes in the cash surrender value of the life insurance policies are based upon earnings and changes in the value of the underlying investments. Changes in the fair value of the deferred compensation obligation are derived using quoted prices in active markets based on the market price per unit multiplied by the number of units. The cash surrender value and the deferred compensation obligation are classified within Level 2 of the fair value hierarchy because their inputs are derived principally from observable market data by correlation to the hypothetical investments. Deferrals under the plan currently may only be made by participants who made deferrals under the plan in 2017. The Company's investment portfolio primarily includes equity investments comprised mostly of strategic holdings in companies concentrated in the life sciences and healthcare industries. Equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) with readily determinable fair values are measured at fair value in prepaid expenses and other current assets in the Company's consolidated balance sheet. Such equity investments are classified within Level 1 of the fair value hierarchy because the changes in the fair values of the securities are measured using quoted prices in active markets based on the market price per share multiplied by the number of shares held, exclusive of any transaction costs. The Company's available-for-sale debt securities are measured at fair value using discounted cash flows. These fair value measurements are classified within Level 3 of the fair value hierarchy as the fair value is based on significant inputs that are not observable. Significant inputs include cash flows projections and a discount rate. In connection with the acquisitions of Pack Health and Labtech, the Company has contingent consideration obligations, with a potential maximum aggregate payment of $40 million, that are to be paid based on the achievement of certain testing volume or revenue benchmarks. As of March 31, 2022, the fair value of these contingent consideration liabilities totaled $33 million. These contingent consideration liabilities are measured at fair value using either an option-pricing method or a Monte Carlo method and are classified within Level 3 of the fair value hierarchy as the fair value is determined based on significant inputs that are not observable. Significant inputs include management’s estimate of volume or revenue and other market inputs, including comparable company revenue volatility (7.5%) and a discount rate (ranging from 2.5% to 3.0%). For further details regarding the Company's acquisitions, see Note 5 to the audited consolidated financial statements in the Company's 2021 Annual Report on Form 10-K and Note 4 to the interim unaudited consolidated financial statements. The following table provides a reconciliation of the beginning and ending balances of liabilities using significant unobservable inputs (Level 3): Contingent Consideration Balance, December 31, 2021 $ 5 Purchases, additions and issuances 28 Balance, March 31, 2022 $ 33 In connection with the sale of an 18.9% noncontrolling interest in a subsidiary to UMass Memorial Medical Center ("UMass") on July 1, 2015, the Company granted UMass the right to require the Company to purchase all of its interest in the subsidiary at fair value commencing July 1, 2020. As of March 31, 2022, the redeemable noncontrolling interest was presented at its fair value. The fair value measurement of the redeemable noncontrolling interest is classified within Level 3 of the fair value hierarchy because the fair value is based on a discounted cash flow analysis that takes into account, among other items, the joint venture's expected future cash flows, long term growth rates, and a discount rate commensurate with economic risk. The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses approximate fair value based on the short maturities of these instruments. As of March 31, 2022 and December 31, 2021, the fair value of the Company’s debt was estimated at $4.1 billion and $4.4 billion, respectively. Principally all of the Company's debt is classified within Level 1 of the fair value hierarchy because the fair value of the debt is estimated based on rates currently offered to the Company with identical terms and maturities, using quoted active market prices and yields, taking into account the underlying terms of the debt instruments.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS The changes in goodwill for the three months ended March 31, 2022 and for the year ended December 31, 2021 were as follows: March 31, 2022 December 31, 2021 Balance, beginning of period $ 7,095 $ 6,873 Goodwill acquired during the period 96 228 Adjustments to goodwill 6 (6) Balance, end of period $ 7,197 $ 7,095 Principally all of the Company’s goodwill as of March 31, 2022 and December 31, 2021 was associated with its DIS business. For the three months ended March 31, 2022, goodwill acquired was principally associated with the acquisition of Pack Health, and adjustments to goodwill primarily related to an adjustment of the purchase price allocation for Labtech (see Note 4), partially offset by foreign currency translation. For the year ended December 31, 2021, goodwill acquired was principally associated with the acquisitions of the assets of the outreach laboratory services business of Mercy Health and the assets of Labtech (see Note 5 to the audited consolidated financial statements in the Company's 2021 Annual Report on Form 10-K), and adjustments to goodwill related to foreign currency translation. Intangible assets as of March 31, 2022 and December 31, 2021 consisted of the following: Weighted March 31, 2022 December 31, 2021 Cost Accumulated Net Cost Accumulated Net Amortizing intangible assets: Customer-related 17 $ 1,609 $ (749) $ 860 $ 1,581 $ (726) $ 855 Non-compete agreements 9 3 (3) — 3 (2) 1 Technology 14 140 (76) 64 141 (74) 67 Other 6 114 (102) 12 109 (101) 8 Total 17 1,866 (930) 936 1,834 (903) 931 Intangible assets not subject to amortization: Trade names 235 — 235 235 — 235 Other 1 — 1 1 — 1 Total intangible assets $ 2,102 $ (930) $ 1,172 $ 2,070 $ (903) $ 1,167 The estimated amortization expense related to amortizable intangible assets for each of the five succeeding fiscal years and thereafter as of March 31, 2022 is as follows: Year Ending December 31, Remainder of 2022 $ 80 2023 106 2024 102 2025 101 2026 95 2027 85 Thereafter 367 Total $ 936

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
FINANCIAL INSTRUMENTS	FINANCIAL INSTRUMENTS The Company uses derivative financial instruments, from time to time, to manage its exposure to market risks for changes in interest rates and foreign currencies. This strategy includes the use of interest rate swap agreements, forward-starting interest rate swap agreements, interest rate lock agreements and foreign currency forward contracts to manage its exposure to movements in interest and currency rates. The Company has established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. These policies prohibit holding or issuing derivative financial instruments for speculative purposes. The Company does not enter into derivative financial instruments that contain credit-risk-related contingent features or requirements to post collateral. Interest Rate Risk The Company is exposed to interest rate risk on its cash and cash equivalents and its debt obligations. Interest income earned on cash and cash equivalents may fluctuate as interest rates change; however, due to their relatively short maturities, the Company does not hedge these assets or their investment cash flows and the impact of interest rate risk is not material. The Company's debt obligations consist of fixed-rate and, from time to time, variable-rate debt instruments. The Company's primary objective is to achieve the lowest overall cost of funding while managing the variability in cash outflows within an acceptable range. In order to achieve this objective, the Company has historically entered into interest rate swap agreements. Interest rate swaps involve the periodic exchange of payments without the exchange of underlying principal or notional amounts. Net settlements between the counterparties are recognized as an adjustment to interest expense, net. Interest Rate Derivatives – Cash Flow Hedges From time to time, the Company has entered into various interest rate lock agreements and forward-starting interest rate swap agreements to hedge part of the Company's interest rate exposure associated with the variability in future cash flows attributable to changes in interest rates. Interest Rate Derivatives – Fair Value Hedges Historically, the Company has entered into various fixed-to-variable interest rate swap agreements in order to convert a portion of the Company's long-term debt into variable interest rate debt. All such fixed-to-variable interest rate swap agreements have been terminated and proceeds from the terminations have been reflected as basis adjustments to the hedged debt instruments and are being amortized as a reduction of interest expense, net over the remaining terms of such debt instruments. As of March 31, 2022 and December 31, 2021, the following amounts were recorded on the consolidated balance sheets related to cumulative basis adjustments for fair value hedges included in the carrying amount of long-term debt: Hedge Accounting Basis Adjustment (a) Balance Sheet Classification March 31, 2022 December 31, 2021 Long-term debt $ 35 $ 38 (a) As of both March 31, 2022 and December 31, 2021, the entire balance is associated with remaining unamortized hedging adjustments on discontinued relationships.

STOCKHOLDERS_ EQUITY AND REDEEM

STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTEREST	3 Months Ended
	Mar. 31, 2022
Stockholders' Equity Attributable to Parent [Abstract]
STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTEREST	STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTEREST Stockholders' Equity Changes in Accumulated Other Comprehensive Loss by Component Comprehensive income (loss) includes: • Foreign currency translation adjustments; • Net deferred gains (losses) on cash flow hedges, which represent deferred gains (losses), net of tax, on interest rate-related derivative financial instruments designated as cash flow hedges, net of amounts reclassified to interest expense (see Note 7); and • Net changes in available-for-sale debt securities, which represent unrealized holding gains (losses), net of tax on available-for-sale debt securities. For the three months ended March 31, 2022 and 2021, the tax effects related to the deferred gains (losses) on cash flow hedges and net changes in available-for-sale debt securities were not material. Foreign currency translation adjustments related to indefinite investments in non-U.S. subsidiaries are not adjusted for income taxes. Dividend Program During the first quarter of 2022, the Company's Board of Directors declared a quarterly cash dividend of $0.66 per common share. During each of the four quarters of 2021, the Company's Board of Directors declared a quarterly cash dividend of $0.62 per common share. Share Repurchase Program In February 2022, the Company's Board of Directors increased the size of its share repurchase program by $1 billion. As of March 31, 2022, $1.3 billion remained available under the Company’s share repurchase authorization. The share repurchase authorization has no set expiration or termination date. Share Repurchases For the three months ended March 31, 2022, the Company repurchased 2.6 million shares of its common stock for $350 million. For the three months ended March 31, 2021, the Company repurchased 3.4 million shares of its common stock for $410 million. Shares Reissued from Treasury Stock For the three months ended March 31, 2022 and 2021, the Company reissued 0.5 million shares and 0.6 million shares, respectively, from treasury stock under its Employee Stock Purchase Plan and its stock-based compensation program. For details regarding the Company's stock ownership and compensation plans, see Note 17 to the audited consolidated financial statements in the Company's 2021 Annual Report on Form 10-K. Redeemable Noncontrolling Interest In connection with the sale of an 18.9% noncontrolling interest in a subsidiary to UMass on July 1, 2015, the Company granted UMass the right to require the Company to purchase all of its interest in the subsidiary at fair value commencing July 1, 2020. The subsidiary performs diagnostic information services in a defined territory within the state of Massachusetts. Since the redemption of the noncontrolling interest is outside of the Company's control, it has been presented outside of stockholders' equity at the greater of its carrying amount or its fair value. As of March 31, 2022 and December 31, 2021, the redeemable noncontrolling interest was presented at its fair value. For further information regarding the fair value of the redeemable noncontrolling interest, see Note 5.

SUPPLEMENTAL CASH FLOW & OTHER

SUPPLEMENTAL CASH FLOW & OTHER DATA	3 Months Ended
	Mar. 31, 2022
Supplemental Cash Flow Elements [Abstract]
SUPPLEMENTAL CASH FLOW & OTHER DATA	SUPPLEMENTAL CASH FLOW AND OTHER DATA Supplemental cash flow and other data for the three months ended March 31, 2022 and 2021 was as follows: Three Months Ended March 31, 2022 2021 Depreciation expense $ 79 $ 74 Amortization expense 27 27 Depreciation and amortization expense $ 106 $ 101 Interest expense $ (37) $ (38) Interest income — — Interest expense, net $ (37) $ (38) Interest paid $ 32 $ 32 Income taxes paid $ 23 $ 7 Accounts payable associated with capital expenditures $ 22 $ 30 Dividends payable $ 78 $ 82 Businesses acquired: Fair value of assets acquired $ 142 $ — Fair value of liabilities assumed 15 — Fair value of net assets acquired 127 — Merger consideration payable (18) — Cash paid for business acquisitions 109 — Less: Cash acquired 4 — Business acquisitions, net of cash acquired $ 105 $ — Leases: Leased assets obtained in exchange for new operating lease liabilities $ 63 $ 36 During the three months ended March 31, 2022, the Company amended a real estate lease and, based on the updated terms, the classification of the lease changed from a finance lease to an operating lease. As a result, the Company recorded a $31 million operating lease right-of-use asset.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Letters of Credit The Company can issue letters of credit totaling $100 million under its $600 million secured receivables credit facility and $150 million under its $750 million senior unsecured revolving credit facility. For further discussion regarding the Company's secured receivables credit facility and senior unsecured revolving credit facility, see Note 13 to the audited consolidated financial statements in the Company's 2021 Annual Report on Form 10-K. In support of its risk management program, $70 million in letters of credit under the secured receivables credit facility were outstanding as of March 31, 2022, providing collateral for current and future automobile liability and workers’ compensation loss payments. Contingent Lease Obligations The Company remains subject to contingent obligations under certain real estate leases for which no liability has been recorded. For further details, see Note 18 to the audited consolidated financial statements in the Company’s 2021 Annual Report on Form 10-K. Certain Legal Matters The Company may incur losses associated with these proceedings and investigations, but it is not possible to estimate the amount of loss or range of loss, if any, that might result from adverse judgments, settlements, fines, penalties, or other resolution of these proceedings and investigations based on the stage of these proceedings and investigations, the absence of specific allegations as to alleged damages, the uncertainty as to the certification of a class or classes and the size of any certified class, if applicable, and/or the lack of resolution of significant factual and legal issues. The Company has insurance coverage rights in place (limited in amount; subject to deductible) for certain potential costs and liabilities related to these proceedings and investigations. 401(k) Plan Lawsuit In 2020, two putative class action lawsuits were filed in the U.S. District Court for New Jersey against the Company and other defendants with respect to the Company’s 401(k) plan. The complaint alleges, among other things, that the fiduciaries of the 401(k) plan breached their duties by failing to disclose the expenses and risks of plan investment options, allowing unreasonable administration expenses to be charged to plan participants, and selecting and retaining high cost and poor performing investments. In October 2020, the court consolidated the two lawsuits under the caption In re: Quest Diagnostics ERISA Litigation and plaintiffs filed a consolidated amended complaint. In May 2021, the court denied the Company's motion to dismiss the complaint. AMCA Data Security Incident On June 3, 2019, the Company reported that Retrieval-Masters Creditors Bureau, Inc./American Medical Collection Agency (“AMCA”) had informed the Company and Optum360 LLC that an unauthorized user had access to AMCA’s system between August 1, 2018 and March 30, 2019 (the “AMCA Data Security Incident”). Optum360 provides revenue management services to the Company, and AMCA provided debt collection services to Optum360. AMCA first informed the Company of the AMCA Data Security Incident on May 14, 2019. AMCA’s affected system included financial information (e.g., credit card numbers and bank account information), medical information and other personal information (e.g., social security numbers). Test results were not included. Neither Optum360’s nor the Company’s systems or databases were involved in the incident. AMCA also informed the Company that information pertaining to other laboratories’ customers was also affected. Following announcement of the AMCA Data Security Incident, AMCA sought protection under the U.S. bankruptcy laws. The bankruptcy proceeding has been dismissed. Numerous putative class action lawsuits were filed against the Company related to the AMCA Data Security Incident. The U.S. Judicial Panel on Multidistrict Litigation transferred the cases that were then still pending to, and consolidated them for pre-trial proceedings in, the U.S. District Court for New Jersey. In November 2019, the plaintiffs in the multidistrict proceeding filed a consolidated putative class action complaint against the Company and Optum360 that named additional individuals as plaintiffs and that asserted a variety of common law and statutory claims in connection with the AMCA Data Security Incident. In January 2020, the Company moved to dismiss the consolidated complaint; the motion to dismiss was granted in part and denied in part. In addition, in 2019 the Company was notified that the Office for Civil Rights of the U.S. Department of Health and Human Services ("OCR") and numerous state attorney general offices were investigating or otherwise seeking information and/or documents, and that certain U.S. senators were seeking information, from the Company related to the AMCA Data Security Incident. On April 6, 2022, OCR informed the Company that it closed its review. ReproSource Fertility Diagnostics, Inc. ReproSource Fertility Diagnostics, Inc. (“ReproSource”), a subsidiary of the Company, is subject to two putative class action lawsuits: Bickham v. ReproSource Fertility Diagnostics, Inc. (U.S. District Court for Massachusetts) and Gordon v. ReproSource Fertility Diagnostics, Inc. (U.S. District Court for Nevada). The class actions are related to a data security incident that occurred in August 2021 in which an unauthorized party may have accessed or acquired protected health information and personally identifiable information of ReproSource patients. The complaints generally allege that ReproSource, among other claims, failed to adequately safeguard customers’ private information. ReproSource has moved to dismiss both complaints and to transfer the Gordon complaint to the U.S. District Court for Massachusetts. In addition, the Company has been notified that certain federal and state governmental authorities, including OCR and attorney general offices from three states, are investigating or otherwise seeking information and/or documents related to the incident. Other Legal Matters In the normal course of business, the Company has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with the Company's activities as a provider of diagnostic testing, information and services. These actions could involve claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages, and could have an adverse impact on the Company's client base and reputation. The Company is also involved, from time to time, in other reviews, investigations and proceedings by governmental agencies regarding the Company's business which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. The federal or state governments may bring claims based on the Company's current practices, which it believes are lawful. In addition, certain federal and state statutes, including the qui tam provisions of the federal False Claims Act, allow private individuals to bring lawsuits against healthcare companies on behalf of government or private payers. The Company is aware of lawsuits, and from time to time has received subpoenas, related to billing or other practices based on the False Claims Act or other federal and state statutes, regulations or other laws. The Company understands that there may be other pending qui tam claims brought by former employees or other "whistleblowers" as to which the Company cannot determine the extent of any potential liability. Management cannot predict the outcome of such matters. Although management does not anticipate that the ultimate outcome of such matters will have a material adverse effect on the Company's financial condition, given the high degree of judgment involved in establishing loss estimates related to these types of matters, the outcome of such matters may be material to the Company's consolidated results of operations or cash flows in the period in which the impact of such matters is determined or paid. These matters are in different stages. Some of these matters are in their early stages. Matters may involve responding to and cooperating with various government investigations and related subpoenas. As of March 31, 2022, the Company does not believe that material losses related to legal matters are probable. Reserves for legal matters totaled $3 million and $4 million as of March 31, 2022 and December 31, 2021, respectively. Reserves for General and Professional Liability Claims

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2022
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, ACOs and DCEs. 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 2022 and 2021. 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 March 31, 2022, 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 months ended March 31, 2022 and 2021. 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 2021 Annual Report on Form 10-K and Note 2 to the interim unaudited consolidated financial statements. Three Months Ended March 31, 2022 2021 Net revenues: DIS business $ 2,541 $ 2,643 All other operating segments 70 77 Total net revenues $ 2,611 $ 2,720 Operating earnings (loss): DIS business $ 562 $ 712 All other operating segments 7 9 General corporate activities (56) (61) Total operating income 513 660 Non-operating expense, net (61) (34) Income before income taxes and equity in earnings of equity method investees 452 626 Income tax expense (110) (153) Equity in earnings of equity method investees, net of taxes 31 17 Net income 373 490 Less: Net income attributable to noncontrolling interests 18 21 Net income attributable to Quest Diagnostics $ 355 $ 469 Net revenues by major service were as follows: Three Months Ended March 31, 2022 2021 Routine clinical testing and other services $ 1,066 $ 1,032 COVID-19 testing services 599 828 Gene-based and esoteric (including advanced diagnostics) testing services 739 653 Anatomic pathology testing services 137 130 All other 70 77 Total net revenues $ 2,611 $ 2,720

REVENUE RECOGNITION

REVENUE RECOGNITION	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
REVENUE RECOGITION	REVENUE RECOGNITION DIS Net revenues in the Company’s DIS business accounted for over 95% of the Company’s total net revenues for the three months ended March 31, 2022 and 2021 and are primarily comprised of a high volume of relatively low-dollar transactions. The DIS business, which provides clinical testing services and other services, satisfies its performance obligations and recognizes revenues primarily upon completion of the testing process (when results are reported) or when services have been rendered. The Company estimates the amount of consideration it expects to be entitled to receive from customer groups in exchange for providing services using the portfolio approach. These estimates include the impact of contractual allowances (including payer denials), and patient price concessions. The portfolios determined using the portfolio approach consist of the following groups of customers: healthcare insurers, government payers (Medicare and Medicaid programs), client payers and patients. For further details regarding revenue recognition in the Company's DIS business, see Note 3 to the audited consolidated financial statements in the Company's 2021 Annual Report on Form 10-K. DS The Company’s DS businesses primarily satisfy their performance obligations and recognize revenues when delivery has occurred or services have been rendered. Net Revenue and Net Accounts Receivable by Customer Type The approximate percentage of net revenue by type of customer was as follows: Three Months Ended March 31, 2022 2021 Healthcare insurers: Fee-for-service 39 % 38 % Capitated 2 2 Total healthcare insurers 41 40 Government payers 11 10 Client payers 32 35 Patients (including coinsurance and deductible responsibilities) 13 12 Total DIS 97 97 DS 3 3 Net revenues 100 % 100 % The approximate percentage of net accounts receivable by type of customer was as follows: March 31, 2022 December 31, 2021 Healthcare Insurers 29 % 32 % Government Payers 6 6 Client Payers 41 38 Patients (including coinsurance and deductible responsibilities) 20 21 Total DIS 96 97 DS 4 3 Net accounts receivable 100 % 100 %

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	The interim unaudited consolidated financial statements reflect all adjustments which in the opinion of management are necessary for a fair statement of results of operations, comprehensive income, financial condition, cash flows and stockholders' equity for the periods presented. Except as otherwise disclosed, all such adjustments are of a normal recurring nature. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. These interim unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s 2021 Annual Report on Form 10-K. The year-end balance sheet data was derived from the audited consolidated financial statements as of December 31, 2021 but does not include all the disclosures required by accounting principles generally accepted in the United States (“GAAP”).
Use Of Estimates	The preparation of financial statements in conformity with GAAP 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.
Earnings Per Share	The Company's unvested restricted stock units that contain non-forfeitable rights to dividends are participating securities and, therefore, are included in the earnings allocation in computing earnings per share using the two-class method. Basic earnings per common share is calculated by dividing net income attributable to Quest Diagnostics, adjusted for earnings allocated to participating securities, by the weighted average number of common shares outstanding. Diluted earnings per common share is calculated by dividing net income attributable to Quest Diagnostics, adjusted for earnings allocated to participating securities, by the weighted average number of common shares outstanding after giving effect to all potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include the dilutive effect of outstanding stock options and performance share units granted under the Company's Amended and Restated Employee Long-Term Incentive Plan and outstanding stock options granted under its Amended and Restated Non-Employee Director Long-Term Incentive Plan, as well as the dilutive effect of accelerated share repurchase agreements, if applicable. Earnings allocable to participating securities include the portion of dividends declared as well as the portion of undistributed earnings during the period allocable to participating securities.
New Accounting Standards to be Adopted	In March 2020, the Financial Accounting Standards Board issued a new accounting standard which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform due to the risk of cessation of the London Interbank Offered Rate ("LIBOR"). The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The pronouncement is effective immediately and can be applied to contract modifications through December 31, 2022. To the extent that, prior to December 31, 2022, the Company enters into any contract modifications for which the optional expedients are applied, the adoption of this standard is not expected to have a material impact on the Company’s consolidated results of operations, financial position or cash flows.
Derivative Financial Instruments	The Company uses derivative financial instruments, from time to time, to manage its exposure to market risks for changes in interest rates and foreign currencies. This strategy includes the use of interest rate swap agreements, forward-starting interest rate swap agreements, interest rate lock agreements and foreign currency forward contracts to manage its exposure to movements in interest and currency rates. The Company has established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. These policies prohibit holding or issuing derivative financial instruments for speculative purposes. The Company does not enter into derivative financial instruments that contain credit-risk-related contingent features or requirements to post collateral. Interest Rate Risk The Company is exposed to interest rate risk on its cash and cash equivalents and its debt obligations. Interest income earned on cash and cash equivalents may fluctuate as interest rates change; however, due to their relatively short maturities, the Company does not hedge these assets or their investment cash flows and the impact of interest rate risk is not material. The Company's debt obligations consist of fixed-rate and, from time to time, variable-rate debt instruments. The Company's primary objective is to achieve the lowest overall cost of funding while managing the variability in cash outflows within an acceptable range. In order to achieve this objective, the Company has historically entered into interest rate swap agreements. Interest rate swaps involve the periodic exchange of payments without the exchange of underlying principal or notional amounts. Net settlements between the counterparties are recognized as an adjustment to interest expense, net.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2022
Earnings Per Share, Basic and Diluted [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The computation of basic and diluted earnings per common share was as follows (in millions, except per share data): Three Months Ended March 31, 2022 2021 Amounts attributable to Quest Diagnostics’ common stockholders: Net income attributable to Quest Diagnostics $ 355 $ 469 Less: Earnings allocated to participating securities 1 1 Earnings available to Quest Diagnostics’ common stockholders – basic and diluted $ 354 $ 468 Weighted average common shares outstanding – basic 119 133 Effect of dilutive securities: Stock options and performance share units 2 2 Weighted average common shares outstanding – diluted 121 135 Earnings per share attributable to Quest Diagnostics’ common stockholders: Basic $ 2.97 $ 3.52 Diluted $ 2.92 $ 3.46
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following securities were not included in the calculation of diluted earnings per share due to their antidilutive effect: Three Months Ended March 31, 2022 2021 Stock options and performance share units — 1

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value, Measurement Inputs	The following table provides a summary of the recognized assets and liabilities that are measured at fair value on a recurring basis: Basis of Fair Value Measurements Quoted Prices in Active Markets for Identical Assets/Liabilities Significant Other Observable Inputs Significant Unobservable Inputs March 31, 2022 Total Level 1 Level 2 Level 3 Assets: Deferred compensation trading securities $ 75 $ 75 $ — $ — Cash surrender value of life insurance policies 54 — 54 — Equity investments 28 28 — — Available-for-sale debt securities 1 — — 1 Total $ 158 $ 103 $ 54 $ 1 Liabilities: Deferred compensation liabilities $ 136 $ — $ 136 $ — Contingent consideration 33 — — 33 Total $ 169 $ — $ 136 $ 33 Redeemable noncontrolling interest $ 78 $ — $ — $ 78 Basis of Fair Value Measurements December 31, 2021 Total Level 1 Level 2 Level 3 Assets: Deferred compensation trading securities $ 77 $ 77 $ — $ — Cash surrender value of life insurance policies 57 — 57 — Equity investments 44 44 — — Available-for-sale debt securities 1 — — 1 Total $ 179 $ 121 $ 57 $ 1 Liabilities: Deferred compensation liabilities $ 143 $ — $ 143 $ — Contingent consideration 5 — — 5 Total $ 148 $ — $ 143 $ 5 Redeemable noncontrolling interest $ 79 $ — $ — $ 79
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	The following table provides a reconciliation of the beginning and ending balances of liabilities using significant unobservable inputs (Level 3): Contingent Consideration Balance, December 31, 2021 $ 5 Purchases, additions and issuances 28 Balance, March 31, 2022 $ 33

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in Goodwill, Net	The changes in goodwill for the three months ended March 31, 2022 and for the year ended December 31, 2021 were as follows: March 31, 2022 December 31, 2021 Balance, beginning of period $ 7,095 $ 6,873 Goodwill acquired during the period 96 228 Adjustments to goodwill 6 (6) Balance, end of period $ 7,197 $ 7,095
Intangible Assets Excluding Goodwill	Intangible assets as of March 31, 2022 and December 31, 2021 consisted of the following: Weighted March 31, 2022 December 31, 2021 Cost Accumulated Net Cost Accumulated Net Amortizing intangible assets: Customer-related 17 $ 1,609 $ (749) $ 860 $ 1,581 $ (726) $ 855 Non-compete agreements 9 3 (3) — 3 (2) 1 Technology 14 140 (76) 64 141 (74) 67 Other 6 114 (102) 12 109 (101) 8 Total 17 1,866 (930) 936 1,834 (903) 931 Intangible assets not subject to amortization: Trade names 235 — 235 235 — 235 Other 1 — 1 1 — 1 Total intangible assets $ 2,102 $ (930) $ 1,172 $ 2,070 $ (903) $ 1,167
Future Amortization Expense Intangible Assets	The estimated amortization expense related to amortizable intangible assets for each of the five succeeding fiscal years and thereafter as of March 31, 2022 is as follows: Year Ending December 31, Remainder of 2022 $ 80 2023 106 2024 102 2025 101 2026 95 2027 85 Thereafter 367 Total $ 936

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Debt Instrument Fair Value Basis Adjustment Attributable to Hedged Debt	As of March 31, 2022 and December 31, 2021, the following amounts were recorded on the consolidated balance sheets related to cumulative basis adjustments for fair value hedges included in the carrying amount of long-term debt: Hedge Accounting Basis Adjustment (a) Balance Sheet Classification March 31, 2022 December 31, 2021 Long-term debt $ 35 $ 38 (a) As of both March 31, 2022 and December 31, 2021, the entire balance is associated with remaining unamortized hedging adjustments on discontinued relationships.

SUPPLEMENTAL CASH FLOW & OTHE_2

SUPPLEMENTAL CASH FLOW & OTHER DATA (Tables)	3 Months Ended
	Mar. 31, 2022
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow and Other Data	Supplemental cash flow and other data for the three months ended March 31, 2022 and 2021 was as follows: Three Months Ended March 31, 2022 2021 Depreciation expense $ 79 $ 74 Amortization expense 27 27 Depreciation and amortization expense $ 106 $ 101 Interest expense $ (37) $ (38) Interest income — — Interest expense, net $ (37) $ (38) Interest paid $ 32 $ 32 Income taxes paid $ 23 $ 7 Accounts payable associated with capital expenditures $ 22 $ 30 Dividends payable $ 78 $ 82 Businesses acquired: Fair value of assets acquired $ 142 $ — Fair value of liabilities assumed 15 — Fair value of net assets acquired 127 — Merger consideration payable (18) — Cash paid for business acquisitions 109 — Less: Cash acquired 4 — Business acquisitions, net of cash acquired $ 105 $ — Leases: Leased assets obtained in exchange for new operating lease liabilities $ 63 $ 36

BUSINESS SEGMENT INFORMATION (T

BUSINESS SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Summary of Segment Reporting Information by Segment	The following table is a summary of segment information for the three months ended March 31, 2022 and 2021. 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 2021 Annual Report on Form 10-K and Note 2 to the interim unaudited consolidated financial statements. Three Months Ended March 31, 2022 2021 Net revenues: DIS business $ 2,541 $ 2,643 All other operating segments 70 77 Total net revenues $ 2,611 $ 2,720 Operating earnings (loss): DIS business $ 562 $ 712 All other operating segments 7 9 General corporate activities (56) (61) Total operating income 513 660 Non-operating expense, net (61) (34) Income before income taxes and equity in earnings of equity method investees 452 626 Income tax expense (110) (153) Equity in earnings of equity method investees, net of taxes 31 17 Net income 373 490 Less: Net income attributable to noncontrolling interests 18 21 Net income attributable to Quest Diagnostics $ 355 $ 469
Schedule of Revenues by Major Service	Net revenues by major service were as follows: Three Months Ended March 31, 2022 2021 Routine clinical testing and other services $ 1,066 $ 1,032 COVID-19 testing services 599 828 Gene-based and esoteric (including advanced diagnostics) testing services 739 653 Anatomic pathology testing services 137 130 All other 70 77 Total net revenues $ 2,611 $ 2,720

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The approximate percentage of net revenue by type of customer was as follows: Three Months Ended March 31, 2022 2021 Healthcare insurers: Fee-for-service 39 % 38 % Capitated 2 2 Total healthcare insurers 41 40 Government payers 11 10 Client payers 32 35 Patients (including coinsurance and deductible responsibilities) 13 12 Total DIS 97 97 DS 3 3 Net revenues 100 % 100 %
Accounts Receivable Disaggregation	The approximate percentage of net accounts receivable by type of customer was as follows: March 31, 2022 December 31, 2021 Healthcare Insurers 29 % 32 % Government Payers 6 6 Client Payers 41 38 Patients (including coinsurance and deductible responsibilities) 20 21 Total DIS 96 97 DS 4 3 Net accounts receivable 100 % 100 %

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Amounts attributable to Quest Diagnostics’ common stockholders:
Net income attributable to Quest Diagnostics	$ 355	$ 469
Less: Earnings allocated to participating securities	1	1
Earnings available to Quest Diagnostics’ common stockholders – basic and diluted	$ 354	$ 468
Weighted average common shares outstanding - basic	119	133
Stock options and performance share units	2	2
Weighted average common shares outstanding - diluted	121	135
Basic(in dollars per share)	$ 2.97	$ 3.52
Diluted (in dollars per share)	$ 2.92	$ 3.46
Stock options and performance share units	0	1

BUSINESS ACQUISITIONS (Details)

BUSINESS ACQUISITIONS (Details) - USD ($) $ in Millions	Feb. 01, 2022	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Cash acquired from acquisition		$ 4	$ 0
Business acquisitions, net of cash acquired		105	$ 0
Goodwill		$ 7,197		$ 7,095	$ 6,873
Customer Relationships
Business Acquisition [Line Items]
Intangible assets, useful life		17 years
Pack Health, LLC
Business Acquisition [Line Items]
Consideration	$ 123
Cash acquired from acquisition	4
Business acquisitions, net of cash acquired	105
Contingent consideration	18
Goodwill	96
Goodwill, expected tax deductible amount	78
Intangible assets	30
Operating lease right-of-use assets	5
Operating lease liabilities	5
Working capital	$ (3)
Pack Health, LLC | Customer Relationships
Business Acquisition [Line Items]
Intangible assets, useful life	15 years
Labtech Diagnostics, LLC
Business Acquisition [Line Items]
Goodwill, purchase adjustments		$ 7
Increase to the estimated contingent consideration liability		10
Labtech Diagnostics, LLC | Customer Relationships
Business Acquisition [Line Items]
Intangible assets, purchase adjustments		$ 3

FAIR VALUE MEASUREMENTS (Recogn

FAIR VALUE MEASUREMENTS (Recognized Assets and Liabilities at Fair Value) (Details) - Recurring Basis - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Deferred compensation trading securities	$ 75	$ 77
Cash surrender value of life insurance policies	54	57
Equity investments	28	44
Available-for-sale debt securities	1	1
Total	158	179
Deferred compensation liabilities	136	143
Contingent consideration	33	5
Total	169	148
Redeemable noncontrolling interest	78	79
Quoted Prices in Active Markets for Identical Assets / Liabilities, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Deferred compensation trading securities	75	77
Cash surrender value of life insurance policies	0	0
Equity investments	28	44
Available-for-sale debt securities	0	0
Total	103	121
Deferred compensation liabilities	0	0
Contingent consideration	0	0
Total	0	0
Redeemable noncontrolling interest	0	0
Significant Other Observable Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Deferred compensation trading securities	0	0
Cash surrender value of life insurance policies	54	57
Equity investments	0	0
Available-for-sale debt securities	0	0
Total	54	57
Deferred compensation liabilities	136	143
Contingent consideration	0	0
Total	136	143
Significant Unobservable Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Deferred compensation trading securities	0	0
Cash surrender value of life insurance policies	0	0
Equity investments	0	0
Available-for-sale debt securities	1	1
Total	1	1
Deferred compensation liabilities	0	0
Contingent consideration	33	5
Total	33	5
Redeemable noncontrolling interest	$ 78	$ 79

FAIR VALUE MEASUREMENTS (Narrat

FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Jul. 01, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of debt	$ 4,100	$ 4,400
Fair Value, Inputs, Level 3 | Contingent Consideration
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	$ 33	$ 5
UMass Joint Venture
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Ownership percentage by noncontrolling owners			18.90%

FAIR VALUE MEASUREMENTS (Busine

FAIR VALUE MEASUREMENTS (Business Acquisition) (Details) - Pack Health, LLC and Labtech Diagnostics, LLC	Mar. 31, 2022USD ($)
Business Acquisition [Line Items]
Maximum Contingent Consideration Payment	$ 40,000,000
Comparable Company Revenue Volatility
Business Acquisition [Line Items]
Measurement input	0.075
Discount rate | Minimum
Business Acquisition [Line Items]
Measurement input	0.025
Discount rate | Maximum
Business Acquisition [Line Items]
Measurement input	0.030

FAIR VALUE MEASUREMENTS (Reconc

FAIR VALUE MEASUREMENTS (Reconciliation of Beginning and Ending Balances of Assets and Liabilities Unobservable Inputs) (Details) - Significant Unobservable Inputs, Level 3 - Contingent Consideration $ in Millions	3 Months Ended
	Mar. 31, 2022USD ($)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, December 31, 2021	$ 5
Purchases, additions and issuances	28
Balance, March 31, 2022	$ 33

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS (Goodwill) (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Goodwill [Roll Forward]
Goodwill, Balance at beginning of period	$ 7,095	$ 6,873
Goodwill acquired during the period	96	228
Adjustments to goodwill	6	(6)
Goodwill, Balance at end of period	$ 7,197	$ 7,095

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS (Schedules) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Finite-Lived and Indefinite-lived Intangible Assets [Line Items]
Intangible assets, Cost	$ 2,102		$ 2,070
Intangible assets, Accumulated Amortization	(930)		(903)
Total intangible assets, Net	1,172		1,167
Amortization expense	27	$ 27
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2022	80
2023	106
2024	102
2025	101
2026	95
2027	85
Thereafter	367
Total	936
Intangible Assets Not Subject to Amortization - Tradenames
Finite-Lived and Indefinite-lived Intangible Assets [Line Items]
Intangible assets, Cost	235		235
Total intangible assets, Net	235		235
Intangible Assets Not Subject to Amortization - Other
Finite-Lived and Indefinite-lived Intangible Assets [Line Items]
Intangible assets, Cost	1		1
Total intangible assets, Net	$ 1		1
Customer-related intangibles
Finite-Lived and Indefinite-lived Intangible Assets [Line Items]
Weighted Average Amortization Period	17 years
Intangible assets, Cost	$ 1,609		1,581
Intangible assets, Accumulated Amortization	(749)		(726)
Total intangible assets, Net	$ 860		855
Non-compete agreements
Finite-Lived and Indefinite-lived Intangible Assets [Line Items]
Weighted Average Amortization Period	9 years
Intangible assets, Cost	$ 3		3
Intangible assets, Accumulated Amortization	(3)		(2)
Total intangible assets, Net	$ 0		1
Technology
Finite-Lived and Indefinite-lived Intangible Assets [Line Items]
Weighted Average Amortization Period	14 years
Intangible assets, Cost	$ 140		141
Intangible assets, Accumulated Amortization	(76)		(74)
Total intangible assets, Net	$ 64		67
Other
Finite-Lived and Indefinite-lived Intangible Assets [Line Items]
Weighted Average Amortization Period	6 years
Intangible assets, Cost	$ 114		109
Intangible assets, Accumulated Amortization	(102)		(101)
Total intangible assets, Net	$ 12		8
Total Amortizing Intangible Assets
Finite-Lived and Indefinite-lived Intangible Assets [Line Items]
Weighted Average Amortization Period	17 years
Intangible assets, Cost	$ 1,866		1,834
Intangible assets, Accumulated Amortization	(930)		(903)
Total intangible assets, Net	$ 936		$ 931

FINANCIAL INSTRUMENTS (Balance

FINANCIAL INSTRUMENTS (Balance Sheets) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Long-term Debt | Fair Value Hedging
Derivative [Line Items]
Hedge Accounting Basis Adjustment	$ 35	$ 38

STOCKHOLDERS_ EQUITY AND REDE_2

STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTEREST (Details) - USD ($) $ / shares in Units, shares in Millions	Feb. 01, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Jul. 01, 2015
Schedule of Stockholders' Equity and Redeemable Noncontrolling Interest [Line Items]
Dividends per common share		$ 0.66	$ 0.62	$ 0.62	$ 0.62	$ 0.62
Additional amount authorized	$ 1,000,000,000
Share repurchase authorization remaining available		$ 1,300,000,000
Purchases of treasury stock, value		$ 350,000,000				$ 410,000,000
Reissuance of shares for employee benefit plan		0.5				0.6
UMass Joint Venture
Schedule of Stockholders' Equity and Redeemable Noncontrolling Interest [Line Items]
Ownership percentage by noncontrolling owners							18.90%
Treasury Stock, at Cost
Schedule of Stockholders' Equity and Redeemable Noncontrolling Interest [Line Items]
Purchases of treasury stock- shares		2.6				3.4
Purchases of treasury stock, value		$ 350,000,000				$ 410,000,000

SUPPLEMENTAL CASH FLOW & OTHE_3

SUPPLEMENTAL CASH FLOW & OTHER DATA (Schedule) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Supplemental Cash Flow Elements [Abstract]
Depreciation expense	$ 79	$ 74
Amortization expense	27	27
Depreciation and amortization expense	106	101
Interest expense	(37)	(38)
Interest income	0	0
Interest expense, net	(37)	(38)
Interest paid	32	32
Income taxes paid	23	7
Accounts payable associated with capital expenditures	22	30
Dividends payable	78	82
Fair value of assets acquired	142
Fair value of liabilities assumed	15	0
Fair value of net assets acquired	127
Merger consideration payable	(18)	0
Cash paid for business acquisitions	109	0
Less: Cash acquired	4	0
Business acquisitions, net of cash acquired	105	0
Leases:
Leased assets obtained in exchange for new operating lease liabilities	$ 63	$ 36

SUPPLEMENTAL CASH FLOW & OTHE_4

SUPPLEMENTAL CASH FLOW & OTHER DATA (Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Supplemental Cash Flow and Other Data [Line Items]
Operating lease right-of-use assets	$ 620	$ 597
Amended Real Estate Lease
Supplemental Cash Flow and Other Data [Line Items]
Operating lease right-of-use assets	$ 31

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	Mar. 31, 2022USD ($)claim	Dec. 31, 2021USD ($)	Dec. 31, 2020claim	Oct. 31, 2020claim
Loss Contingencies [Line Items]
Class action lawsuits | claim	2		2	2
Debt Instrument [Line Items]
Self-insurance reserves	$ 158,000,000	$ 159,000,000
Secured Receivables Credit Facility
Debt Instrument [Line Items]
Credit facility capacity	600,000,000
Letters of credit outstanding, amount	70,000,000
Secured Receivables Credit Facility | Letter of Credit
Debt Instrument [Line Items]
Credit facility capacity	100,000,000
Senior Unsecured Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility capacity	750,000,000
Senior Unsecured Revolving Credit Facility | Letter of Credit
Debt Instrument [Line Items]
Credit facility capacity	150,000,000
Excludes general and professional liability claims
Loss Contingencies [Line Items]
Litigation reserves	$ 3,000,000	$ 4,000,000

BUSINESS SEGMENT INFORMATION (D

BUSINESS SEGMENT INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Percentage of net revenues	100.00%	100.00%
Total net revenues	$ 2,611	$ 2,720
Total operating income	513	660
Non-operating expense, net	(61)	(34)
Income before income taxes and equity in earnings of equity method investees	452	626
Income tax expense	(110)	(153)
Equity in earnings of equity method investees, net of taxes	31	17
Net income	373	490
Less: Net income attributable to noncontrolling interests	18	21
Net income attributable to Quest Diagnostics	355	469
Routine clinical testing and other services
Segment Reporting Information [Line Items]
Total net revenues	1,066	1,032
COVID-19 Testing Services
Segment Reporting Information [Line Items]
Total net revenues	599	828
Gene-based and esoteric testing services
Segment Reporting Information [Line Items]
Total net revenues	739	653
Anatomic pathology testing services
Segment Reporting Information [Line Items]
Total net revenues	137	130
All other services
Segment Reporting Information [Line Items]
Total net revenues	$ 70	$ 77
DIS business
Segment Reporting Information [Line Items]
Percentage of net revenues	97.00%	97.00%
Total net revenues	$ 2,541	$ 2,643
Total operating income	$ 562	$ 712
DIS business | Minimum
Segment Reporting Information [Line Items]
Percentage of net revenues	95.00%	95.00%
All other operating segments
Segment Reporting Information [Line Items]
Total net revenues	$ 70	$ 77
Total operating income	7	9
General corporate activities
Segment Reporting Information [Line Items]
Total operating income	$ (56)	$ (61)

REVENUE RECOGNITION (Details)

REVENUE RECOGNITION (Details)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Segment Reporting Information [Line Items]
Percentage of net revenues	100.00%	100.00%
Net accounts receivable	100.00%		100.00%
DIS business
Segment Reporting Information [Line Items]
Percentage of net revenues	97.00%	97.00%
Net accounts receivable	96.00%		97.00%
DIS business | Healthcare Insurers
Segment Reporting Information [Line Items]
Percentage of net revenues	41.00%	40.00%
Net accounts receivable	29.00%		32.00%
DIS business | Healthcare Insurers | Fee-for-service
Segment Reporting Information [Line Items]
Percentage of net revenues	39.00%	38.00%
DIS business | Healthcare Insurers | Capitated
Segment Reporting Information [Line Items]
Percentage of net revenues	2.00%	2.00%
DIS business | Government Payers
Segment Reporting Information [Line Items]
Percentage of net revenues	11.00%	10.00%
Net accounts receivable	6.00%		6.00%
DIS business | Client Payers
Segment Reporting Information [Line Items]
Percentage of net revenues	32.00%	35.00%
Net accounts receivable	41.00%		38.00%
DIS business | Patients (including coinsurance and deductible responsibilities)
Segment Reporting Information [Line Items]
Percentage of net revenues	13.00%	12.00%
Net accounts receivable	20.00%		21.00%
DIS business | Minimum
Segment Reporting Information [Line Items]
Percentage of net revenues	95.00%	95.00%
All other operating segments | DS Businesses
Segment Reporting Information [Line Items]
Percentage of net revenues	3.00%	3.00%
Net accounts receivable	4.00%		3.00%