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Item 6. Selected Financial Data

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Item 6. Selected Financial Data

We have derived the following consolidated statements of income data for 2016, 2015 and 2014 and consolidated balance sheet data as of December 31, 2016 and 2015 from our audited consolidated financial

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statements included elsewhere in this Annual Report on Form 10-K. We have derived the following consolidated statements of income data for 2013 and 2012 and consolidated balance sheet data as of December 31, 2014, 2013 and 2012 from our audited consolidated financial statements not included in this Annual Report on Form 10-K. You should read the consolidated financial data set forth below in conjunction with our consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K and the information under Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” On October 3, 2016, we completed a merger of equals transaction with IMS Health. Pursuant to the terms of the merger agreement dated as of May 3, 2016 between Quintiles and IMS Health, IMS Health was merged with and into Quintiles, and the separate corporate existence of IMS Health ceased, with Quintiles continuing as the surviving corporation. We have included the results of operations of acquired businesses, including IMS Health, from the date of acquisition. As a result, our period to period results of operations vary depending on the dates and sizes of the acquisitions. Accordingly, this selected financial data is not necessarily comparable or indicative of our future results. You should read this selected consolidated financial data in conjunction with our audited consolidated financial statements and related footnotes included elsewhere in this Annual Report on Form 10-K.

Year Ended December 31,
(in millions, except per share data)2016(5)2015201420132012
Statement of Income Data:
Revenues$5,364$4,326$4,165$3,808$3,692
Reimbursed expenses1,5141,4111,2951,2911,173
Total revenues6,8785,7375,4605,0994,865
Costs of revenue, exclusive of depreciation and amortization3,2362,7052,6642,4522,443
Costs of revenue, reimbursed expenses1,5141,4111,2951,2911,173
Selling, general and administrative expenses1,011815781772736
Depreciation and amortization28912812110898
Restructuring costs713091419
Merger related costs(1)87————
Impairment charges(2)282———
Income from operations642646590462396
Interest expense, net1409797119132
Loss on extinguishment of debt318—201
Other (income) expense, net(8)2(8)—(4)
Income before income taxes and equity in earnings (losses) of unconsolidated affiliates479539501323267
Income tax expense(3)3451591499693
Income before equity in earnings (losses) of unconsolidated affiliates134380352227174
Equity in earnings (losses) of unconsolidated affiliates(4)85(1)3
Net income130388357226177
Net (income) loss attributable to non-controlling interests(15)(1)—11
Net income attributable to Quintiles IMS Holdings, Inc.$115$387$357$227$178
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Year Ended December 31,
(in millions, except per share data)2016(5)2015201420132012
Earnings per share attributable to common stockholders:
Basic$0.77$3.15$2.78$1.83$1.53
Diluted$0.76$3.08$2.72$1.77$1.51
Cash dividends declared per common share$—$—$—$—$4.91
Weighted average common shares outstanding:
Basic149.1123.0128.0124.1115.7
Diluted152.0125.6131.1127.9117.8
Year Ended December 31,
(in millions)2016(5)2015201420132012
Statement of Cash Flow Data:
Net cash provided by (used in):
Operating activities$860$476$433$393$336
Investing activities1,731(67)(173)(236)(132)
Financing activities(2,284)(249)(130)71(147)
Other Financial Data:
Capital expenditures$(164)$(78)$(83)$(88)$(71)
Cash dividend paid to common stockholders————(568)
As of December 31,
(in millions)2016(5)2015201420132012
Balance Sheet Data:
Cash and cash equivalents$1,198$977$867$777$568
Investments in debt, equity and other securities5333354036
Trade accounts receivable and unbilled services, net1,7071,166975924745
Property and equipment, net406188190200194
Total assets21,2083,9263,2963,0542,476
Total long-term liabilities9,6432,6682,5282,2392,526
Total debt and capital leases (4)7,2192,5012,3062,0612,445
Total stockholders’ equity (deficit)8,860(336)(704)(667)(1,359)
(1)Merger related costs include the direct and incremental costs associated with our merger with IMS Health Holdings, Inc., on October 3, 2016 (the “Merger”).
(2)In 2016, we recognized $28 million of impairment losses for other than temporary declines in fair value of goodwill ($23 million) and identifiable intangible assets ($5 million) in our Encore reporting unit. In 2015, we wrote down $2 million related to long-lived assets.
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(3)Income tax expense in 2016 includes $252 million related to a change in our indefinitely reinvested assertion on our cumulative foreign earnings as a result of the Merger.
(4)Excludes $19 million, $33 million, $22 million, $28 million and $47 million of unamortized discounts and debt issuance costs as of December 31, 2016, 2015, 2014, 2013 and 2012.
(5)Includes the acquisition of IMS Health effective October 3, 2016.
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