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Item 1. Financial Statements

2022-07-22 compared with 2022-04-28 · 164 added, 73 removed, 450 unchanged (34% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended March 31,

Three Months Ended

June 30, Six Months Ended

(in millions, except per share data) 2022 2021 2022 2021

Revenues $ 3,541 $ 3,438 $ 7,109 $ 6,847

Costs of revenue, exclusive of depreciation and amortization 2,323 2,293

Cost of revenues, exclusive of depreciation and amortization 2,331 2,323 4,654 4,616

Selling, general and administrative expenses 483 482 971 924

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Net income attributable to IQVIA Holdings Inc.

$ 256 $ 175 $ 581 $ 387

Earnings per share attributable to common stockholders:

5 unchanged sentences

The accompanying notes are an integral part of these condensed consolidated financial statements.

Ta b l e o f c o n t e n t s

IQVIA HOLDINGS INC.

2 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(in millions) 2022 2021 2022 2021

1 unchanged sentence

Comprehensive income adjustments:

Unrealized gains on derivative instruments, net of income tax expense of $ 9 , $ 1

Defined benefit plan adjustments, net of income tax expense of $ — , $ —

Foreign currency translation, net of income tax expense of $ 27 , $ 62

Unrealized (losses) gains on derivative instruments, net of income tax (benefit) expense of $( 1 ), $( 1 ), $ 8 , $ —

( 7 ) ( 2 ) 23 4

Defined benefit plan adjustments, net of income tax (benefit) expense of $ — , $ — , $ — , $ —

( 4 ) — ( 6 ) —

Foreign currency translation, net of income tax expense (benefit) of $ 84 , $( 23 ), $ 111 , $ 39

( 281 ) 58 ( 321 ) ( 120 )

Reclassification adjustments:

Reclassifications on derivative instruments included in net income, net of income tax benefit of $ 4 , $ — , $ 4 , $ 1

Comprehensive income 312 46

Comprehensive (loss) income ( 22 ) 234 290 280

Comprehensive income attributable to non-controlling interests — — — ( 5 )

Comprehensive income attributable to IQVIA Holdings Inc.

Comprehensive (loss) income attributable to IQVIA Holdings Inc.

$ ( 22 ) $ 234 $ 290 $ 275

The accompanying notes are an integral part of these condensed consolidated financial statements.

Ta b l e o f c o n t e n t s

IQVIA HOLDINGS INC.

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except per share data) March 31, 2022 December 31, 2021

(in millions, except per share data) June 30, 2022 December 31, 2021

Current assets:

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Stockholders’ equity:

Common stock and additional paid-in capital, 400.0 shares authorized as of March 31, 2022 and December 31, 2021, $ 0.01 par value, 256.2 shares issued and 189.3 shares outstanding as of March 31, 2022;

Common stock and additional paid-in capital, 400.0 shares authorized as of June 30, 2022 and December 31, 2021, $ 0.01 par value, 256.3 shares issued and 186.6 shares outstanding as of June 30, 2022;

255.8 shares issued and 190.6 shares outstanding as of December 31, 2021

1 unchanged sentence

Retained earnings 2,824 2,243

Treasury stock, at cost, 66.9 and 65.2 shares as of March 31, 2022 and December 31, 2021, respectively

Treasury stock, at cost, 69.7 and 65.2 shares as of June 30, 2022 and December 31, 2021, respectively

( 7,565 ) ( 6,572 )

3 unchanged sentences

The accompanying notes are an integral part of these condensed consolidated financial statements.

Ta b l e o f c o n t e n t s

IQVIA HOLDINGS INC.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,

Six Months Ended June 30,

(in millions) 2022 2021

6 unchanged sentences

Losses (earnings) from unconsolidated affiliates 5 ( 5 )

Loss on investments, net 11 3

Loss (gain) on investments, net 29 ( 9 )

Benefit from deferred income taxes ( 28 ) ( 43 )

8 unchanged sentences

Investments in unconsolidated affiliates, net of payments received ( 10 ) ( 3 )

Investments in equity securities — ( 1 )

Proceeds from sale of equity securities — 9

Net cash used in investing activities ( 812 ) ( 361 )

7 unchanged sentences

Repurchase of common stock ( 893 ) ( 107 )

Acquisition of Quest's non-controlling interest — ( 756 )

Contingent consideration and deferred purchase price payments ( 21 ) ( 38 )

1 unchanged sentence

Effect of foreign currency exchange rate changes on cash ( 78 ) ( 21 )

Increase in cash and cash equivalents 21 491

Increase (decrease) in cash and cash equivalents 62 ( 7 )

Cash and cash equivalents at beginning of period 1,366 1,814

1 unchanged sentence

The accompanying notes are an integral part of these condensed consolidated financial statements.

Ta b l e o f c o n t e n t s

IQVIA HOLDINGS INC.

5 unchanged sentences

Stock Additional

Capital Retained Earnings Treasury

Capital Retained

Earnings Treasury

Stock Accumulated

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Balance, March 31, 2022 256.2 ( 66.9 ) 3 10,742 2,568 ( 6,975 ) ( 419 ) — 5,919

Issuance of common stock 0.1 — — ( 2 ) — — — — ( 2 )

Repurchase of common stock — ( 2.8 ) — — — ( 590 ) — — ( 590 )

Stock-based compensation — — — 47 — — — — 47

Net income — — — — 256 — — — 256

Unrealized losses on derivative instruments, net of tax — — — — — — ( 7 ) — ( 7 )

Defined benefit plan adjustments, net of tax — — — — — — ( 4 ) — ( 4 )

Foreign currency translation, net of tax — — — — — — ( 281 ) — ( 281 )

Reclassification adjustments, net of tax — — — — — — 14 — 14

Balance, June 30, 2022 256.3 ( 69.7 ) $ 3 $ 10,787 $ 2,824 $ ( 7,565 ) $ ( 697 ) $ — $ 5,352

(in millions) Common

2 unchanged sentences

Stock Additional

Capital Retained Earnings Treasury

Capital Retained

Earnings Treasury

Stock Accumulated

11 unchanged sentences

Balance, March 31, 2021 255.4 ( 63.8 ) 3 11,065 1,489 ( 6,228 ) ( 376 ) 284 6,237

Issuance of common stock 0.2 — — 1 — — — — 1

Repurchase of common stock — ( 0.2 ) — — — ( 45 ) — — ( 45 )

Stock-based compensation — — — 42 — — — — 42

Acquisition of Quest's non-controlling interest, net of tax — — — ( 415 ) — — ( 10 ) ( 284 ) ( 709 )

Net income — — — — 175 — — — 175

Unrealized losses on derivative instruments, net of tax — — — — — — ( 2 ) — ( 2 )

Foreign currency translation, net of tax — — — — — — 58 — 58

Reclassification adjustments, net of tax — — — — — — 3 — 3

Balance, June 30, 2021 255.6 ( 64 ) $ 3 $ 10,693 $ 1,664 $ ( 6,273 ) $ ( 327 ) $ — $ 5,760

The accompanying notes are an integral part of these condensed consolidated financial statements.

Ta b l e o f c o n t e n t s

IQVIA HOLDINGS INC.

18 unchanged sentences

The Company adopted this new accounting guidance effective January 1, 2022.

The adoption of this new accounting guidance did not have a material impact on the Company's consolidated financial statements for the three months ended March 31, 2022.

The adoption of this new accounting guidance did not have a material impact on the Company's consolidated financial statements for the three and six months ended June 30, 2022.

The impact of this guidance on the Company's consolidated financial statements for the remainder of the year will depend on the size and nature of future acquisitions, if any .

Ta b l e o f c o n t e n t s

Revenues by Geography, Concentration of Credit Risk and Remaining Performance Obligations

The following tables represent revenues by geographic region and reportable segment for the three months ended March 31, 2022 and 2021:

Three Months Ended March 31, 2022

The following tables represent revenues by geographic region and reportable segment for the three and six months ended June 30, 2022 and 2021:

Three Months Ended June 30, 2022

(in millions) Technology &

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Total revenues $ 1,408 $ 1,950 $ 183 $ 3,541

Three Months Ended March 31, 2021

Three Months Ended June 30, 2021

(in millions) Technology &

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Total revenues $ 1,353 $ 1,891 $ 194 $ 3,438

No individual customer represented 10% or more of consolidated revenues for the three months ended March 31, 2022 or 2021.

Six Months Ended June 30, 2022

(in millions) Technology &

Analytics Solutions Research &

Development Solutions Contract Sales &

Medical Solutions Total

Americas $ 1,397 $ 1,812 $ 179 $ 3,388

Europe and Africa 1,136 1,039 89 2,264

Asia-Pacific 314 1,033 110 1,457

Total revenues $ 2,847 $ 3,884 $ 378 $ 7,109

Six Months Ended June 30, 2021

(in millions) Technology &

Analytics Solutions Research &

Development Solutions Contract Sales &

Medical Solutions Total

Americas $ 1,235 $ 1,969 $ 164 $ 3,368

Europe and Africa 1,155 950 91 2,196

Asia-Pacific 311 840 132 1,283

Total revenues $ 2,701 $ 3,759 $ 387 $ 6,847

No individual customer represented 10% or more of consolidated revenues for the three and six months ended June 30, 2022 or 2021.

Transaction Price Allocated to the Remaining Performance Obligations

As of March 31, 2022, approximately $ 28.1 billion of revenue is expected to be recognized in the future from remaining performance obligations.

As of June 30, 2022, approximately $ 28.7 billion of revenue is expected to be recognized in the future from remaining performance obligations.

The Company expects to recognize revenue on approximately 30 % of these remaining performance obligations over the next twelve months , with the balance recognized thereafter.

The customer contract transaction price allocated to the remaining performance obligations differs from backlog in that it does not include wholly unperformed contracts under which the customer has a unilateral right to cancel the arrangement .

Ta b l e o f c o n t e n t s

Trade Accounts Receivable, Unbilled Services and Unearned Income

Trade accounts receivables and unbilled services consist of the following:

(in millions) March 31, 2022 December 31, 2021

(in millions) June 30, 2022 December 31, 2021

Billed $ 1,261 $ 1,275

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Unbilled services and unearned income were as follows:

(in millions) March 31, 2022 December 31, 2021 Change

(in millions) June 30, 2022 December 31, 2021 Change

Unbilled services $ 1,446 $ 1,309 $ 137

1 unchanged sentence

Net balance $ ( 364 ) $ ( 516 ) $ 152

Unbilled services, which is comprised of approximately 62 % of unbilled receivables and 38 % of contract assets as of March 31, 2022 and December 31, 2021, increased by $ 113 million as compared to December 31, 2021.

Unbilled services, which is comprised of approximately 61 % and 62 % of unbilled receivables and 39 % and 38 % of contract assets as of June 30, 2022 and December 31, 2021, respectively, increased by $ 137 million as compared to December 31, 2021.

Contract assets are unbilled services for which invoicing is based on the timing of certain milestones related to service contracts for clinical research whereas unbilled receivables are billable upon the passage of time.

Unearned income increased by $ 102 million over the same period resulting in an increase of $ 11 million in the net balance of unbilled services and unearned income between December 31, 2021 and March 31, 2022.

The change in the net balance is driven by the difference in timing of revenue recognition in accordance with ASC 606, Revenue from Contracts with Customers, related to the Company’s Research & Development Solutions contracts (which is based on the percentage of costs incurred) versus the timing of invoicing, which is based on certain milestones.

Bad debt expense recognized on the Company’s receivables and unbilled services was de minimis for the three months ended March 31, 2022 and 2021.

The following is a summary of goodwill by reportable segment for the three months ended March 31, 2022:

Unearned income decreased by $ 15 million over the same period resulting in an increase of $ 152 million in the net balance of unbilled services and unearned income between December 31, 2021 and June 30, 2022.

The change in the net balance is driven by the difference in timing of revenue recognition in accordance with ASC 606, Revenue from Contracts with Customers, primarily related to the Company’s Research & Development Solutions contracts (which is based on the percentage of costs incurred) versus the timing of invoicing, which is based on certain milestones.

Bad debt expense recognized on the Company’s receivables and unbilled services was de minimis for the three and six months ended June 30, 2022 and 2021.

The following is a summary of goodwill by reportable segment for the six months ended June 30, 2022:

(in millions) Technology & Analytics Solutions Research & Development Solutions Contract Sales & Medical Solutions Consolidated

2 unchanged sentences

Impact of foreign currency fluctuations and other ( 471 ) ( 25 ) ( 10 ) ( 506 )

Balance as of March 31, 2022 $ 11,321 $ 2,051 $ 160 $ 13,532

Balance as of June 30, 2022 $ 10,938 $ 2,014 $ 152 $ 13,104

Ta b l e o f c o n t e n t s

The fair values of the Company’s derivative instruments and the line items on the accompanying condensed consolidated balance sheets to which they were recorded are summarized in the following table:

(in millions) Balance Sheet Classification March 31, 2022 December 31, 2021

(in millions) Balance Sheet Classification June 30, 2022 December 31, 2021

Assets Liabilities Notional Assets Liabilities Notional

1 unchanged sentence

Foreign exchange forward contracts Other current assets and liabilities $ — $ 10 $ 122 $ — $ 3 $ 110

Interest rate swaps Other assets and liabilities 25 5 1,800 4 24 1,800

Interest rate swaps Other current assets, other assets and liabilities 35 — 1,800 4 24 1,800

Total derivatives $ 35 $ 10 $ 4 $ 27

The pre-tax effect of the Company’s cash flow hedging instruments on other comprehensive income is summarized in the following table:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2022 2021 2022 2021

2 unchanged sentences

Total $ 10 $ 1 $ 48 $ 9

The amount of foreign exchange gains related to the net investment hedge included in the cumulative translation adjustment component of accumulated other comprehensive (loss) income (“AOCI”) for the three months ended March 31, 2022 and 2021 was $ 119 million and $ 285 million, respectively.

The amount of foreign exchange gains related to the net investment hedge included in the cumulative translation adjustment component of accumulated other comprehensive (loss) income (“AOCI”) for the six months ended June 30, 2022 and 2021 was $ 466 million and $ 206 million, respectively.

Fair Value Measurements

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This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

The carrying values of cash, cash equivalents, accounts receivable and accounts payable approximated their fair values as of March 31, 2022 and December 31, 2021 due to their short-term nature.

As of March 31, 2022 and December 31, 2021, the fair value of total debt approximated $ 12,508 million and $ 12,255 million, respectively, as determined under Level 1 and Level 2 measurements for these financial instruments.

The carrying values of cash, cash equivalents, accounts receivable and accounts payable approximated their fair values as of June 30, 2022 and December 31, 2021 due to their short-term nature.

As of June 30, 2022 and December 31, 2021, the fair value of total debt approximated $ 12,050 million and $ 12,255 million, respectively, as determined under Level 1 and Level 2 measurements for these financial instruments.

Ta b l e o f c o n t e n t s

Recurring Fair Value Measurements

The following table summarizes the fair value of the Company’s financial assets and liabilities that are measured and reported at fair value on a recurring basis as of March 31, 2022:

The following table summarizes the fair value of the Company’s financial assets and liabilities that are measured and reported at fair value on a recurring basis as of June 30, 2022:

(in millions) Level 1 Level 2 Level 3 Total

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Assumptions used to estimate the fair value of contingent consideration include various financial metrics (revenue performance targets and operating forecasts) and the probability of achieving the specific targets.

Based on the assessments of the probability of achieving specific targets, as of March 31, 2022 the Company has accrued approximately 74 % of the maximum contingent consideration payments that could potentially become payable.

The following table summarizes the changes in Level 3 financial assets and liabilities measured on a recurring basis for the three months ended March 31:

Based on the assessments of the probability of achieving specific targets, as of June 30, 2022 the Company has accrued approximately 81 % of the maximum contingent consideration payments that could potentially become payable.

The following table summarizes the changes in Level 3 financial assets and liabilities measured on a recurring basis for the six months ended June 30:

Contingent Consideration

4 unchanged sentences

Revaluations included in earnings and foreign currency translation adjustments ( 5 ) ( 21 )

Balance as of March 31 $ 87 $ 109

Balance as of June 30 $ 76 $ 86

The current portion of contingent consideration is included within accrued expenses and the long-term portion is included within other liabilities on the accompanying condensed consolidated balance sheets.

Revaluations of the contingent consideration are recognized in other expense (income), net on the accompanying condensed consolidated statements of income.

A change in significant unobservable inputs above could result in a higher or lower fair value measurement of contingent consideration.

Revaluations of contingent consideration are recognized in other expense (income), net on the accompanying condensed consolidated statements of income.

A change in significant unobservable inputs could result in a higher or lower fair value measurement of contingent consideration.

Non-recurring Fair Value Measurements

As of March 31, 2022, assets carried on the balance sheet and not remeasured to fair value on a recurring basis totaled approximately $ 18,581 million and were identified as Level 3.

As of June 30, 2022, assets carried on the balance sheet and not remeasured to fair value on a recurring basis totaled approximately $ 17,969 million and were identified as Level 3.

These assets are comprised of cost and equity method investments of $ 132 million, goodwill of $ 13,104 million and other identifiable intangibles, net of $ 4,733 million.

Ta b l e o f c o n t e n t s

Credit Arrangements

The following is a summary of the Company’s revolving credit facilities as of March 31, 2022:

The following is a summary of the Company’s revolving credit facilities as of June 30, 2022:

Interest Rates

$ 1,500 million (revolving credit facility)

LIBOR in the relevant currency borrowed plus a margin of 1.25 % as of March 31, 2022

LIBOR in the relevant currency borrowed plus a margin of 1.25 % as of June 30, 2022

$ 110 million (receivables financing facility)

LIBOR Market Index Rate ( 0.45 % as of March 31, 2022) plus 0.90 %

LIBOR Market Index Rate ( 1.79 % as of June 30, 2022) plus 0.90 %

The following table summarizes the Company’s debt at the dates indicated:

(dollars in millions) March 31, 2022 December 31, 2021

(dollars in millions) June 30, 2022 December 31, 2021

Revolving Credit Facility due 2026:

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Term A Loan due 2026—Euribor at average floating rates of 1.25 %

Term A Loan due 2027—U.S.

Dollar SOFR at average floating rates of 3.03 %

Term B Loan due 2024—U.S.

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Long-term debt $ 12,615 $ 12,034

Contractual maturities of long-term debt are as follows as of March 31, 2022:

Ta b l e o f c o n t e n t s

Contractual maturities of long-term debt are as follows as of June 30, 2022:

(in millions)

2 unchanged sentences

Senior Secured Credit Facilities

As of March 31, 2022, the Company’s Fifth Amended and Restated Credit Agreement provided financing through several senior secured credit facilities of up to approximately $ 7,075 million, which consisted of $ 6,325 million principal amounts of debt outstanding (as detailed in the table above), and $ 750 million of available borrowing capacity on the $ 1,500 million revolving credit facility and standby letters of credit.

On June 16, 2022, the Company entered into Amendment No.

1 to the Company’s Fifth Amended and Restated Credit Agreement (the “Credit Agreement”) to borrow $ 1,250 million in additional U.S.

Dollar denominated term A loans due 2027 (the “Additional Term A Loans”).

The Additional Term A Loans bear interest based at the Secured Overnight Financing Rate term rates (“Term SOFR”), plus a credit spread adjustment of 0.10 % plus a margin ranging from 1.125 % to 2.00 %, with a Term SOFR floor of 0.00 % per annum.

The proceeds from the Additional Term A Loans were used to repay approximately $ 950 million of outstanding revolving credit loans under the Company’s Credit Agreement and for general corporate purposes.

As of June 30, 2022, the Company’s Credit Agreement provided financing through several senior secured credit facilities of up to approximately $ 8,173 million, which consisted of $ 6,673 million principal amounts of debt outstanding (as detailed in the table above), and $ 1,500 million of available borrowing capacity on the $ 1,500 million revolving credit facility and standby letters of credit.

The revolving credit facility is comprised of a $ 675 million senior secured revolving facility available in U.S.

6 unchanged sentences

The Company’s long-term debt arrangements contain other usual and customary restrictive covenants that, among other things, place limitations on the Company’s ability to declare dividends.

As of March 31, 2022, the Company was in compliance in all material respects with the financial covenants under the Company’s financing arrangements .

As of June 30, 2022, the Company was in compliance in all material respects with the financial covenants under the Company’s financing arrangements .

Contingencies

1 unchanged sentence

Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available.

For those matters where management currently believes it is probable that the Company will incur a loss and that the probable loss or range of loss can be reasonably estimated, the Company has recorded reserves in the consolidated financial statements based on its best estimates of such loss.

For those matters where management currently believes it is probable that the Company will incur a loss and that the probable loss or range of loss can be reasonably estimated, the Company has recorded an accrual in the consolidated financial statements based on its best estimates of such loss.

In other instances, because of the uncertainties related to either the probable outcome or the amount or range of loss, management is unable to make a reasonable estimate of a liability, if any.

1 unchanged sentence

As additional information becomes available, the Company adjusts its assessments and estimates of such liabilities accordingly.

Ta b l e o f c o n t e n t s

The Company routinely enters into agreements with third parties, including our clients and suppliers, all in the normal course of business.

4 unchanged sentences

The following is a summary of certain legal matters involving the Company.

On February 13, 2014, a group of approximately 1,200 medical doctors and 900 private individuals filed a civil lawsuit with the Seoul Central District Court against IMS Korea and two other defendants, KPA and the Korean Pharmaceutical Information Center (“KPIC”).

On February 13, 2014, a group of approximately 1,200 medical doctors and 900 private individuals filed a civil lawsuit with the Seoul Central District Court against IMS Korea and two other defendants, the Korean Pharmaceutical Association (“KPA”) and the Korean Pharmaceutical Information Center (“KPIC”).

The civil lawsuit alleges KPA and KPIC collected their personal information in violation of applicable privacy laws without the necessary consent through a software system installed on pharmacy computer systems in Korea, and that personal information was transferred to IMS Korea and sold to pharmaceutical companies.

26 unchanged sentences

Veeva is currently appealing the Order.

Ta b l e o f c o n t e n t s

In 2016, IQVIA acquired Dimensions Healthcare LLC (“Dimensions”), a company operating in the Middle East that was engaged in a joint venture with MedImpact International LLC (“MedImpact International”).

The joint venture was terminated in late 2017, and on January 23, 2018, MedImpact International brought an arbitration in Dubai against Dimensions alleging that Dimensions had obtained access to its intellectual property through its prior joint venture with MedImpact International and had used that access to misappropriate and misuse MedImpact International’s intellectual property.

Dimensions was ordered to pay an immaterial amount of damages and attorneys’ fees, and enjoined from future use of certain claimed MedImpact International intellectual property.

On September 26, 2019, MedImpact Healthcare Systems, Inc., MedImpact International, MedImpact International Hong Kong Ltd (collectively, “MedImpact”) filed suit in the U.S.

District Court for the Southern District of California alleging that various IQVIA entities (IQVIA Inc., IQVIA AG, and IQVIA Ltd.) and two IQVIA employees in the Middle East misappropriated its intellectual property, in violation of, among other things, the U.S.

Defend Trade Secrets Act (“DTSA”) and the Racketeer Influenced and Corrupt Organizations Act (“RICO”).

In particular, MedImpact alleges that IQVIA acquired Dimensions to obtain access to MedImpact’s intellectual property and then used that access to misappropriate and misuse MedImpact's intellectual property.

MedImpact claims damages of approximately $ 100 million and is seeking the trebling of its damages and reimbursement of its litigation expenses, including its attorneys’ fees.

MedImpact further seeks to enjoin IQVIA from continuing to misuse its intellectual property.

IQVIA rejects the claims raised by MedImpact and is vigorously defending IQVIA’s position.

The parties have mostly completed discovery and await the Court’s decisions on numerous motions, including motions for summary judgment.

A trial date is anticipated in 2023.

On December 13, 2021, IQVIA filed suit against MedImpact in the same California federal court, alleging that MedImpact and a former executive misappropriated and misused IQVIA’s intellectual property received in the same prior joint venture, in violation of, among other things, the DTSA and RICO.

IQVIA seeks treble damages in an unspecified amount, reimbursement of litigation expenses, including attorneys’ fees, and to enjoin MedImpact from continuing to misuse its intellectual property.

Stockholders’ Equity

1 unchanged sentence

The Company is authorized to issue 1.0 million shares of preferred stock, $ 0.01 per share par value.

No shares of preferred stock were issued or outstanding as of March 31, 2022 or December 31, 2021.

No shares of preferred stock were issued or outstanding as of June 30, 2022 or December 31, 2021.

Equity Repurchase Program

On February 10, 2022, the Board increased the stock repurchase authorization under the Company's equity repurchase program (the "Repurchase Program") with respect to the repurchase of the Company’s common stock by an additional $ 2.0 billion, which increased the total amount that has been authorized under the Repurchase Program to $ 9.725 billion since the plan’s inception in October 2013.

On February 10, 2022, the Company’s Board of Directors (the “Board”) increased the stock repurchase authorization under the Company's equity repurchase program (the “Repurchase Program”) with respect to the repurchase of the Company’s common stock by an additional $ 2.0 billion, which increased the total amount that has been authorized under the Repurchase Program to $ 9.725 billion since the plan’s inception in October 2013.

The Repurchase Program does not obligate the Company to repurchase any particular amount of common stock, and it may be modified, extended, suspended or discontinued at any time.

During the three months ended March 31, 2022, the Company repurchased 1.7 million shares of its common stock for $ 403 million under the Repurchase Program.

As of March 31, 2022, the Company has remaining authorization to repurchase up to approximately $ 2.1 billion of its common stock under the Repurchase Program.

During the six months ended June 30, 2022, the Company repurchased 4.5 million shares of its common stock for $ 993 million under the Repurchase Program.

These amounts include approximately 0.5 million of shares valued at approximately $ 100 million, which were accrued for as of June 30, 2022 based on the terms of the transactions.

As of June 30, 2022, the Company has remaining authorization to repurchase up to approximately $ 1.5 billion of its common stock under the Repurchase Program.

In addition, from time to time, the Company has repurchased and may continue to repurchase common stock through private or other transactions outside of the Repurchase Program.

Business Combinations

The Company completed several individually immaterial acquisitions during the three months ended March 31, 2022.

The Company completed several individually immaterial acquisitions during the six months ended June 30, 2022.

The Company’s assessment of fair value, including the valuation of certain identified intangibles, and the purchase price allocation related to these acquisitions is preliminary and subject to change upon completion.

3 unchanged sentences

Pro forma information is not presented as pro forma results of operations would not be materially different to the actual results of operations of the Company.

Ta b l e o f c o n t e n t s

The following table provides certain preliminary financial information for these acquisitions:

(in millions) March 31, 2022

(in millions) June 30, 2022

Assets acquired:

6 unchanged sentences

Net assets acquired (1) $ 503

(1) Total cash paid for acquisitions, net of cash acquired, in the accompanying condensed consolidated statement of cash flows, includes contingent consideration and deferred purchase price of $ 26 million for the three months ended March 31, 2022.

(1) Net assets acquired includes contingent consideration and deferred purchase price of $ 26 million for the six months ended June 30, 2022.

The portion of goodwill deductible for income tax purposes was preliminarily assessed as $ 30 million.

The following table provides a summary of the preliminary estimated fair value of certain intangible assets acquired:

(in millions) Amortization Period March 31, 2022

(in millions) Amortization Period June 30, 2022

Other identifiable intangibles:

Customer relationships 1 - 17 years $ 161

Backlog 1 - 4 years 14

Non-compete agreements 3 years 3

Software and related assets 3 - 5 years 15

Trade names 2 years 3

Backlog 1 - 4 years 14

Databases 5 years 3

Total Other identifiable intangibles $ 199

9 unchanged sentences

Payments ( 16 )

Balance as of March 31, 2022 $ 29

Foreign currency translation and other ( 2 )

Balance as of June 30, 2022 $ 23

The reversals were due to changes in estimates primarily from the redeployment of staff and higher than expected voluntary terminations.

Restructuring costs are not allocated to the Company’s reportable segments as they are not part of the segment performance measures regularly reviewed by management.

The Company expects that the majority of the restructuring accruals as of March 31, 2022 will be paid in 2022 and 2023.

The effective income tax rate was 17.8 % and 17.1 % in the first quarter of 2022 and 2021, respectively.

The effective income tax rate in the first quarter of 2022 and 2021 was favorably impacted by $ 13 million and $ 17 million, respectively, as a result of excess tax benefits recognized upon settlement of share-based compensation awards.

The Company expects that the majority of the restructuring accruals as of June 30, 2022 will be paid in 2022 and 2023.

Ta b l e o f c o n t e n t s

The effective income tax rate was 21.6 % in the second quarter of 2022 and 2021, and 19.5 % and 19.2 % in the first six months of 2022 and 2021, respectively.

The effective income tax rate in the second quarter and in the first six months of 2022 and 2021 was favorably impacted as a result of excess tax benefits recognized upon settlement of share-based compensation awards.

For the second quarter of 2022 and 2021 this impact was $ 1 million and $ 6 million, respectively, and for the first six months of 2022 and 2021 this impact was $ 14 million and $ 23 million , respectively.

Accumulated Other Comprehensive (Loss) Income

6 unchanged sentences

Reclassification adjustments — 17 — ( 4 ) 13

Balance as of March 31, 2022 $ ( 583 ) $ 17 $ 3 $ 144 $ ( 419 )

Balance as of June 30, 2022 $ ( 780 ) $ 27 $ ( 1 ) $ 57 $ ( 697 )

Below is a summary of the adjustments for amounts reclassified from AOCI into the condensed consolidated statements of income and the affected financial statement line item:

(in millions) Affected Financial Statement

Line Item Three Months Ended March 31,

Line Item Three Months Ended June 30, Six Months Ended June 30,

2022 2021 2022 2021

Derivative instruments:

2 unchanged sentences

Total before income taxes ( 18 ) ( 3 ) ( 17 ) ( 5 )

Income tax benefit — ( 1 )

Income taxes ( 4 ) — ( 4 ) ( 1 )

Total net of income taxes $ ( 14 ) $ ( 3 ) $ ( 13 ) $ ( 4 )

9 unchanged sentences

The Company’s reportable segment information is presented below:

Three Months Ended March 31,

Ta b l e o f c o n t e n t s

Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2022 2021 2022 2021

3 unchanged sentences

Total revenues 3,541 3,438 7,109 6,847

Costs of revenue, exclusive of depreciation and amortization

Cost of revenues, exclusive of depreciation and amortization

Technology & Analytics Solutions 828 808 1,662 1,620

1 unchanged sentence

Contract Sales & Medical Solutions 155 160 322 320

Total costs of revenue, exclusive of depreciation and amortization 2,323 2,293

Total cost of revenues, exclusive of depreciation and amortization 2,331 2,323 4,654 4,616

Selling, general and administrative expenses

15 unchanged sentences

The following table reconciles the basic to diluted weighted average shares outstanding:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in millions, except per share data) 2022 2021 2022 2021

Net income attributable to IQVIA Holdings Inc.

$ 256 $ 175 $ 581 $ 387

Basic weighted average common shares outstanding 188.3 191.6 189.2 191.6

6 unchanged sentences

Performance awards are included in diluted earnings per share based on if the performance targets have been met at the end of the reporting period.

For the three months ended March 31, 2022 and 2021, the weighted average number of outstanding stock-based awards not included in the computation of diluted earnings per share because they are subject to performance conditions or the effect of including such stock-based awards in the computation would be anti-dilutive was 0.3 and 1.0 , million, respectively.

Ta b l e o f c o n t e n t s

For the three and six months ended June 30, 2022 and 2021, the weighted average number of outstanding stock-based awards not included in the computation of diluted earnings per share because they are subject to performance conditions that have not been met at the end of the reporting period or the effect of including such stock-based awards in the computation would be anti-dilutive was 0.7 and 1.0 million, and 0.5 and 1.0 million, respectively.

Ta b l e o f c o n t e n t s

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements