We have derived the following consolidated statements of income data for 2018, 2017 and 2016 and consolidated balance sheet data as of December 31, 2018 and 2017 from our audited consolidated financial statements included elsewhere in this Annual Report on Form 10-K. We have derived the following consolidated statements of income data for 2015 and 2014 and consolidated balance sheet data as of December 31, 2016, 2015 and 2014 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.” Effective January 1, 2018, we adopted the requirements of Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) and ASU 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”) using the full retrospective method. As a result of the adoption of ASU 2014-09 and ASU 2017-07, the Company retrospectively adjusted related presentations. On October 3, 2016, we completed the Merger. We have included the results of operations of IMS Health from the date of the Merger and of acquired businesses from the respective 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)
2018
2017(4)
2016(4)(5)
2015
2014
Statement of Income Data:
Revenues
$
10,412
$
9,702
$
6,815
$
5,737
$
5,460
Costs of revenue, exclusive of depreciation and amortization
6,746
6,301
4,748
4,116
3,959
Selling, general and administrative expenses
1,716
1,622
1,016
815
781
Depreciation and amortization
1,141
1,011
289
128
121
Impairment charges(1)
—
40
28
2
—
Restructuring costs
68
63
71
30
9
Merger related costs(2)
—
—
87
—
—
Income from operations
741
665
576
646
590
Interest expense, net
406
339
140
97
97
Loss on extinguishment of debt
2
19
31
8
—
Other expense (income), net
5
13
(11
)
2
(8
)
Income before income taxes and equity in earnings (losses) of unconsolidated affiliates
328
294
416
539
501
Income tax expense (benefit)(3)
59
(992
)
325
159
149
Income before equity in earnings (losses) of unconsolidated affiliates
269
1,286
91
380
352
Equity in earnings (losses) of unconsolidated affiliates
15
10
(4
)
8
5
Net income
284
1,296
87
388
357
Net income attributable to non-controlling interests
(25
)
(19
)
(15
)
(1
)
—
Net income attributable to IQVIA Holdings Inc.
$
259
$
1,277
$
72
$
387
$
357
Year Ended December 31,
(in millions, except per share data)
2018
2017(4)
2016(4)(5)
2015
2014
Earnings per share attributable to common stockholders:
Basic
$
1.27
$
5.86
$
0.48
$
3.15
$
2.78
Diluted
$
1.24
$
5.74
$
0.47
$
3.08
$
2.72
Cash dividends declared per common share
$
—
$
—
$
—
$
—
$
—
Weighted average common shares outstanding:
Basic
203.7
217.8
149.1
123.0
128.0
Diluted
208.2
222.6
152.0
125.6
131.1
Year Ended December 31,
(in millions)
2018
2017(4)
2016(4)(5)
2015
2014
Statement of Cash Flow Data:
Net cash provided by (used in):
Operating activities
$
1,254
$
970
$
860
$
476
$
433
Investing activities
(810
)
(1,190
)
1,731
(67
)
(173
)
Financing activities
(452
)
(72
)
(2,284
)
(249
)
(130
)
Other Financial Data:
Capital expenditures
$
(459
)
$
(369
)
$
(164
)
$
(78
)
$
(83
)
Cash dividend paid to common stockholders
—
—
—
—
—
As of December 31,
(in millions)
2018
2017(4)
2016(4)(5)
2015
2014
Balance Sheet Data:
Cash and cash equivalents
$
891
$
959
$
1,198
$
977
$
867
Investments in debt, equity and other securities
88
54
53
33
35
Trade accounts receivable and unbilled services, net
2,394
2,097
1,816
1,166
975
Property and equipment, net
434
440
406
188
190
Total assets
22,549
22,857
21,312
3,926
3,296
Total long-term liabilities
12,061
11,457
9,609
2,668
2,528
Total debt(6)
11,056
10,269
7,219
2,501
2,306
Total stockholders’ equity (deficit)
6,954
8,244
8,781
(336
)
(704
)
(1)
In 2017, we recognized $40 million of impairment losses for declines in fair value of goodwill and identifiable intangible assets in Encore, which we sold in the third quarter of 2017. In 2016, we recognized $28 million of impairment losses for declines in fair value of goodwill ($23 million) and identifiable intangible assets ($5 million) in Encore. In 2015, we wrote down $2 million related to long-lived assets.
(2)
Merger related costs include the direct and incremental costs associated with the Merger.
(3)
Income tax expense in 2018 includes $(35) million related to finalization of SAB 118 and the impacts of GILTI and FDII. Income tax expense in 2017 includes $(966) million related to the enactment of the Tax Act and $(261) million related to purchase accounting amortization as a result of the Merger. 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)
As a result of the adoption of ASU 2014-09, we retrospectively adjusted 2017 and 2016 related presentations.
(5)
Includes the acquisition of IMS Health effective October 3, 2016.
(6)
Excludes $49 million, $44 million, $19 million, $33 million and $22 million of unamortized discounts and debt issuance costs as of December 31, 2018, 2017, 2016, 2015 and 2014.
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