filings.toolsItem 16. Form 10-K Summary
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Item 16. Form 10-K Summary
None.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| IQVIA HOLDINGS INC. | |
| By: | /s/ Michael R. McDonnell |
| Name: Michael R. McDonnell | |
| Title: Executive Vice President and Chief Financial Officer |
Date: February 16, 2018
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant in the capacities and on the dates indicated.
| Signature | Title | Date |
| /s/ Ari Bousbib Ari Bousbib | Chairman, Chief Executive Officer and President; Director (Principal Executive Officer) | February 16, 2018 |
| /s/ Michael R. McDonnell Michael R. McDonnell | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | February 16, 2018 |
| /s/ Robert Parks Robert Parks | Senior Vice President, Corporate Controller (Principal Accounting Officer) | February 16, 2018 |
| /s/ Dr. Dennis B. Gillings, CBE Dr. Dennis B. Gillings, CBE | Director | February 16, 2018 |
| /s/ John P. Connaughton John P. Connaughton | Director | February 16, 2018 |
| /s/ Jonathan J. Coslet Jonathan J. Coslet | Director | February 16, 2018 |
| /s/ John G. Danhakl John G. Danhakl | Director | February 16, 2018 |
| /s/ Michael J. Evanisko Michael J. Evanisko | Director | February 16, 2018 |
| /s/ James A. Fasano James A. Fasano | Director | February 16, 2018 |
| Signature | Title | Date |
| /s/ Colleen A. Goggins Colleen A. Goggins | Director | February 16, 2018 |
| /s/ Jack M. Greenberg Jack M. Greenberg | Director | February 16, 2018 |
| /s/ John M. Leonard, M.D. John M. Leonard, M.D. | Director | February 16, 2018 |
| /s/ Ronald A. Rittenmeyer Ronald A. Rittenmeyer | Director | February 16, 2018 |
| /s/ Todd B. Sisitsky Todd B. Sisitsky | Director | February 16, 2018 |
(2) Financial Statement Schedules
Schedule I—Condensed Financial Information of Registrant
IQVIA HOLDINGS INC. (PARENT COMPANY ONLY)
CONDENSED STATEMENTS OF INCOME
| Year Ended December 31, | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions) | 2017 | 2016 | 2015 | |||||||||
| Selling, general and administrative expenses | $ | 1 | $ | — | $ | 1 | ||||||
| Merger related costs | — | 21 | — | |||||||||
| Loss from operations | (1 | ) | (21 | ) | (1 | ) | ||||||
| Interest income | — | — | — | |||||||||
| Other expense, net | — | — | — | |||||||||
| Loss before income taxes and equity in earnings of subsidiary | (1 | ) | (21 | ) | (1 | ) | ||||||
| Income tax benefit | (3 | ) | (4 | ) | (1 | ) | ||||||
| Income (loss) before equity in earnings of subsidiary | 2 | (17 | ) | — | ||||||||
| Equity in earnings of subsidiary | 1,307 | 132 | 387 | |||||||||
| Net income | $ | 1,309 | $ | 115 | $ | 387 |
IQVIA HOLDINGS INC. (PARENT COMPANY ONLY)
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
| Year Ended December 31, | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions) | 2017 | 2016 | 2015 | |||||||||
| Net income | $ | 1,309 | $ | 115 | $ | 387 | ||||||
| Comprehensive income (loss) adjustments: | ||||||||||||
| Unrealized gains (losses) on derivative instruments, net of income tax expense (benefit) of $1, $3 and ($4) | 4 | (7 | ) | (9 | ) | |||||||
| Defined benefit plan adjustments, net of income tax expense of $3, $11 and $— | 5 | 23 | — | |||||||||
| Foreign currency translation, net of income tax benefit of ($201), ($9) and ($5) | 607 | (497 | ) | (56 | ) | |||||||
| Reclassification adjustments: | ||||||||||||
| Losses on derivative instruments included in net income, net of income tax expense of $—, $7 and $6 | (1 | ) | 21 | 12 | ||||||||
| Amortization of actuarial losses and prior service costs included in net income | 1 | 1 | 1 | |||||||||
| Comprehensive income (loss) | $ | 1,925 | $ | (344 | ) | $ | 335 |
IQVIA HOLDINGS INC. (PARENT COMPANY ONLY)
CONDENSED BALANCE SHEETS
| December 31, | ||||||||
|---|---|---|---|---|---|---|---|---|
| (in millions, except per share data) | 2017 | 2016 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1 | $ | 12 | ||||
| Income taxes receivable | — | 4 | ||||||
| Other current assets and receivables | 1 | — | ||||||
| Total current assets | 2 | 16 | ||||||
| Investment in subsidiary | 9,659 | 8,631 | ||||||
| Total assets | $ | 9,661 | $ | 8,647 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | — | $ | — | ||||
| Income taxes payable | — | — | ||||||
| Total current liabilities | — | — | ||||||
| Investment in subsidiary | 1,552 | — | ||||||
| Payable to subsidiary | — | 14 | ||||||
| Total liabilities | 1,552 | 14 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Common stock and additional paid-in capital, 400.0 shares authorized at December 31, 2017 and 2016, $0.01 par value, 249.5 and 248.3 shares issued and outstanding at December 31, 2017 and 2016, respectively | 10,782 | 10,602 | ||||||
| Accumulated deficit | 655 | (399 | ) | |||||
| Treasury stock, at cost, 41.4 and 12.9 shares at December 31, 2017 and 2016, respectively | (3,374 | ) | (1,000 | ) | ||||
| Accumulated other comprehensive loss | 46 | (570 | ) | |||||
| Total stockholders’ equity | 8,109 | 8,633 | ||||||
| Total liabilities and stockholders’ equity | $ | 9,661 | $ | 8,647 |
IQVIA HOLDINGS INC. (PARENT COMPANY ONLY)
CONDENSED STATEMENTS OF CASH FLOWS
| Year Ended December 31, | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions) | 2017 | 2016 | 2015 | |||||||||
| Operating activities: | ||||||||||||
| Net income | $ | 1,309 | $ | 115 | $ | 387 | ||||||
| Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||
| Subsidiary loss | 91 | 91 | 56 | |||||||||
| Change in operating assets and liabilities: | ||||||||||||
| Accounts payable and accrued expenses | (3 | ) | — | — | ||||||||
| Income taxes payable and other liabilities | 4 | (5 | ) | — | ||||||||
| Net cash provided by operating activities | 1,401 | 201 | 443 | |||||||||
| Investing activities: | ||||||||||||
| Investment in subsidiary, net of dividends received | 1,150 | 791 | — | |||||||||
| Net cash provided by investing activities | 1,150 | 791 | — | |||||||||
| Financing activities: | ||||||||||||
| Stock issued under employee stock purchase and option plans | 91 | 97 | 64 | |||||||||
| Repurchase of common stock | (2,620 | ) | (1,097 | ) | (515 | ) | ||||||
| Repurchase of stock options | — | — | — | |||||||||
| Intercompany with subsidiary | (31 | ) | 15 | 1 | ||||||||
| Net cash used in financing activities | (2,560 | ) | (985 | ) | (450 | ) | ||||||
| Effect of foreign currency exchange rate changes on cash | (2 | ) | — | — | ||||||||
| (Decrease) increase in cash and cash equivalents | (11 | ) | 7 | (7 | ) | |||||||
| Cash and cash equivalents at beginning of period | 12 | 5 | 12 | |||||||||
| Cash and cash equivalents at end of period | $ | 1 | $ | 12 | $ | 5 |
IQVIA HOLDINGS INC. (PARENT COMPANY ONLY)
NOTES TO CONDENSED FINANCIAL INFORMATION
The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of IQVIA Holdings Inc.’s (the “Company”) wholly-owned subsidiary, IQVIA Incorporated exceed 25% of the consolidated net assets of the Company. The ability of IQVIA Incorporated to pay dividends may be limited due to the restrictive covenants in the agreements governing its credit arrangements.
These condensed parent company financial statements include the accounts of IQVIA Holdings Inc. on a standalone basis (the “Parent”) and the equity method of accounting is used to reflect ownership interest in its subsidiary. Refer to the consolidated financial statements and notes presented elsewhere herein for additional information and disclosures with respect to these financial statements.
Since the Parent is part of a group that files a consolidated income tax return, in accordance with ASC 740, a portion of the consolidated amount of current and deferred income tax expense of the Company has been allocated to the Parent. The income tax benefit of $3, $4 million and $1 million in 2017, 2016 and 2015, respectively, represents the income tax benefit that will be or were already utilized in the Company’s consolidated United States federal and state income tax returns. If the Parent was not part of these consolidated income tax returns, it would not be able to recognize any income tax benefit, as it generates no revenue against which the losses could be used on a separate filer basis.
Below is a summary of the dividends paid to the Parent by IQVIA Incorporated in 2017, 2016 and 2015 (in millions):
| Amount | ||||
|---|---|---|---|---|
| Paid in December 2017 | $ | 22 | ||
| Paid in November 2017 | 362 | |||
| Paid in September 2017 | 373 | |||
| Paid in August 2017 | 168 | |||
| Paid in May 2017 | 356 | |||
| Paid in March 2017 | 1,237 | |||
| Paid in February 2017 | 45 | |||
| Paid in January 2017 | 3 | |||
| Total paid in 2017 | $ | 2,566 | ||
| Paid in December 2016 | $ | 503 | ||
| Paid in November 2016 | 422 | |||
| Paid in June 2016 | 89 | |||
| Total paid in 2016 | $ | 1,014 | ||
| Paid in December 2015 | $ | 1 | ||
| Paid in November 2015 | 223 | |||
| Paid in May 2015 | 220 | |||
| Total paid in 2015 | $ | 444 |
Schedule II—Valuation and Qualifying Accounts
Deferred Tax Asset Valuation Allowance
Information presented below is in millions:
| Additions | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance at Beginning of Year | Charged to Expenses | Charged to Other Accounts(a) | Deductions(b) | Balance at End of Year | ||||||||||||||||
| December 31, 2017 | $ | 153 | $ | 52 | $ | — | $ | (5 | ) | $ | 200 | |||||||||
| December 31, 2016 | $ | 22 | $ | 10 | $ | 129 | $ | (8 | ) | $ | 153 | |||||||||
| December 31, 2015 | $ | 25 | $ | 2 | $ | — | $ | (5 | ) | $ | 22 |
| (a) | Recorded through purchase accounting transaction. |
|---|
| (b) | Impact of reductions recorded to expense and translation adjustments. |
|---|
Previous: Item 15. Exhibits and Financial Statement Schedules