filings.toolsItem 6. Selected Financial Data
14K characters. Original on sec.gov ·
Item 6. Selected Financial Data
We have derived the following consolidated statements of income data and cash flows for 2020, 2019 and 2018 and consolidated balance sheet data as of December 31, 2020 and 2019 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 2017 and 2016 and consolidated balance sheet data as of December 31, 2018, 2017 and 2016 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. We have included the results of operations 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. Effective January 1, 2019, we adopted the requirements of ASU 2016-02, Leases (Topic 842): Amendments to the FASB Accounting Standards Codification and elected the transition method which allows for disclosures to be updated prospectively and prior periods to be presented in accordance with previous guidance.
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) | 2020 | 2019 | 2018 | 2017(4) | 2016(4)(5) | ||||||||||||||||||||||||||||||
| Statement of Income Data: | |||||||||||||||||||||||||||||||||||
| Revenues | $ | 11,359 | $ | 11,088 | $ | 10,412 | $ | 9,702 | $ | 6,815 | |||||||||||||||||||||||||
| Costs of revenue, exclusive of depreciation and amortization | 7,500 | 7,300 | 6,746 | 6,301 | 4,748 | ||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 1,789 | 1,734 | 1,716 | 1,622 | 1,016 | ||||||||||||||||||||||||||||||
| Depreciation and amortization | 1,287 | 1,202 | 1,141 | 1,011 | 289 | ||||||||||||||||||||||||||||||
| Impairment charges(1) | — | — | — | 40 | 28 | ||||||||||||||||||||||||||||||
| Restructuring costs | 52 | 75 | 68 | 63 | 71 | ||||||||||||||||||||||||||||||
| Merger related costs(2) | — | — | — | — | 87 | ||||||||||||||||||||||||||||||
| Income from operations | 731 | 777 | 741 | 665 | 576 | ||||||||||||||||||||||||||||||
| Interest expense, net | 410 | 438 | 406 | 339 | 140 | ||||||||||||||||||||||||||||||
| Loss on extinguishment of debt | 13 | 24 | 2 | 19 | 31 | ||||||||||||||||||||||||||||||
| Other expense (income), net | (65) | (37) | 5 | 13 | (11) | ||||||||||||||||||||||||||||||
| Income before income taxes and equity in earnings (losses) of unconsolidated affiliates | 373 | 352 | 328 | 294 | 416 | ||||||||||||||||||||||||||||||
| Income tax expense (benefit)(3) | 72 | 116 | 59 | (992) | 325 | ||||||||||||||||||||||||||||||
| Income before equity in earnings (losses) of unconsolidated affiliates | 301 | 236 | 269 | 1,286 | 91 | ||||||||||||||||||||||||||||||
| Equity in earnings (losses) of unconsolidated affiliates | 7 | (9) | 15 | 10 | (4) | ||||||||||||||||||||||||||||||
| Net income | 308 | 227 | 284 | 1,296 | 87 | ||||||||||||||||||||||||||||||
| Net income attributable to non-controlling interests | (29) | (36) | (25) | (19) | (15) | ||||||||||||||||||||||||||||||
| Net income attributable to IQVIA Holdings Inc. | 279 | 191 | 259 | 1,277 | 72 |
| As of December 31, | ||||||||||||||||||||||||||||||||||||||
| (in millions, except per share data) | 2020 | 2019 | 2018 | 2017(4) | 2016(4)(5) | |||||||||||||||||||||||||||||||||
| Earnings per share attributable to common stockholders: | ||||||||||||||||||||||||||||||||||||||
| Basic | $ | 1.46 | $ | 0.98 | $ | 1.27 | $ | 5.86 | $ | 0.48 | ||||||||||||||||||||||||||||
| Diluted | $ | 1.43 | $ | 0.96 | $ | 1.24 | $ | 5.74 | $ | 0.47 | ||||||||||||||||||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||||||||||||||||||||
| Basic | 191.3 | 195.1 | 203.7 | 217.8 | 149.1 | |||||||||||||||||||||||||||||||||
| Diluted | 195.0 | 199.6 | 208.2 | 222.6 | 152.0 |
| Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||
| (in millions) | 2020 | 2019 | 2018 | 2017**(4)** | 2016**(4)(5)** | |||||||||||||||||||||||||||||||||
| Statement of Cash Flow Data: | ||||||||||||||||||||||||||||||||||||||
| Net cash provided by (used in): | ||||||||||||||||||||||||||||||||||||||
| Operating activities | $ | 1,959 | $ | 1,417 | $ | 1,254 | $ | 970 | $ | 860 | ||||||||||||||||||||||||||||
| Investing activities | (796) | (1,190) | (810) | (1,190) | 1,731 | |||||||||||||||||||||||||||||||||
| Financing activities | (217) | (276) | (452) | (72) | (2,284) | |||||||||||||||||||||||||||||||||
| Other Financial Data: | ||||||||||||||||||||||||||||||||||||||
| Capital expenditures | $ | (616) | $ | (582) | $ | (459) | $ | (369) | $ | (164) |
| As of December 31, | ||||||||||||||||||||||||||||||||||||||
| (in millions) | 2020 | 2019 | 2018 | 2017(4) | 2016(4)(5) | |||||||||||||||||||||||||||||||||
| Balance Sheet Data: | ||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 1,814 | $ | 837 | $ | 891 | $ | 959 | $ | 1,198 | ||||||||||||||||||||||||||||
| Investments in debt, equity and other securities | 166 | 127 | 88 | 54 | 53 | |||||||||||||||||||||||||||||||||
| Trade accounts receivable and unbilled services, net | 2,410 | 2,582 | 2,394 | 2,097 | 1,816 | |||||||||||||||||||||||||||||||||
| Property and equipment, net | 482 | 458 | 434 | 440 | 406 | |||||||||||||||||||||||||||||||||
| Total assets | 24,564 | 23,251 | 22,549 | 22,857 | 21,312 | |||||||||||||||||||||||||||||||||
| Total long-term liabilities | 13,726 | 13,043 | 12,061 | 11,457 | 9,609 | |||||||||||||||||||||||||||||||||
| Total debt(6) | 12,600 | 11,705 | 11,056 | 10,269 | 7,219 | |||||||||||||||||||||||||||||||||
| Total stockholders’ equity (deficit) | 6,280 | 6,263 | 6,954 | 8,244 | 8,781 |
(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 2020 includes a tax benefit of $26 million related to our election for the GILTI high tax exception. Income tax expense in 2019 includes a reversal of $25 million related to a reversal of an FDII benefit in 2018 due to proposed regulations being issued in 2019. 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 $67 million, $60 million, $49 million, $44 million, $19 million, $33 million and $22 million of unamortized discounts and debt issuance costs as of December 31, 2020, 2019, 2018, 2017, and 2016.
Previous: Item 4. Mine Safety Disclosures · Next: Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations