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Item 1. Financial Statements

2023-04-28 compared with 2022-10-27 · 104 added, 241 removed, 406 unchanged (46% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended

September 30, Nine Months Ended

September 30,

Three Months Ended March 31,

(in millions, except per share data) 2023 2022

7 unchanged sentences

Interest expense 141 86

Loss on extinguishment of debt — 1 — 25

Other expense (income), net 8 ( 62 ) 51 ( 128 )

Income before income taxes and equity in (losses) earnings of unconsolidated affiliates 360 273 1,088 752

Other (income) expense, net ( 26 ) 10

Income before income taxes and equity in losses of unconsolidated affiliates 362 400

Income tax expense 71 71

Income before equity in (losses) earnings of unconsolidated affiliates 290 261 876 648

Equity in (losses) earnings of unconsolidated affiliates ( 7 ) — ( 12 ) 5

Income before equity in losses of unconsolidated affiliates 291 329

Equity in losses of unconsolidated affiliates ( 2 ) ( 4 )

Net income $ 289 $ 325

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

Net income attributable to IQVIA Holdings Inc.

$ 283 $ 261 $ 864 $ 648

Earnings per share attributable to common stockholders:

5 unchanged sentences

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

Table of conten t s

IQVIA HOLDINGS INC.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended

September 30, Nine Months Ended

September 30,

Three Months Ended March 31,

(in millions) 2023 2022

1 unchanged sentence

Comprehensive income adjustments:

Unrealized gains (losses) on derivative instruments, net of income tax expense of $ 2 , $ — , $ 10 , $ —

Unrealized gains on derivative instruments, net of income tax expense of $ 3 , $ 9

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

Foreign currency translation, net of income tax expense of $ 84 , $ 28 , $ 195 , $ 66

( 218 ) ( 117 ) ( 539 ) ( 237 )

Foreign currency translation, net of income tax (benefit) expense of $( 29 ), $ 27

Reclassification adjustments:

Reclassifications on derivative instruments included in net income, net of income tax benefit of $ — , $ 1 , $ 4 , $ 2

Reclassifications on derivative instruments included in net income, net of income tax (expense) benefit of $( 8 ), $ —

Comprehensive income $ 285 $ 312

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

Comprehensive income attributable to IQVIA Holdings Inc.

$ 82 $ 143 $ 372 $ 418

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

Table of conten t s

IQVIA HOLDINGS INC.

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS

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

(in millions, except per share data) March 31, 2023 December 31, 2022

Current assets:

13 unchanged sentences

Deferred income taxes 125 118

Deposits and other assets 488 491

Deposits and other assets, net 468 472

Total assets $ 25,739 $ 25,337

14 unchanged sentences

Stockholders’ equity:

Common stock and additional paid-in capital, 400.0 shares authorized as of September 30, 2022 and December 31, 2021, $ 0.01 par value, 256.3 shares issued and 185.8 shares outstanding as of September 30, 2022;

Common stock and additional paid-in capital, 400.0 shares authorized as of March 31, 2023 and December 31, 2022, $ 0.01 par value, 256.9 shares issued and 185.5 shares outstanding as of March 31, 2023;

256.4 shares issued and 185.7 shares outstanding as of December 31, 2022

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Retained earnings 3,623 3,334

Treasury stock, at cost, 70.5 and 65.2 shares as of September 30, 2022 and December 31, 2021, respectively

Treasury stock, at cost, 71.4 and 70.7 shares as of March 31, 2023 and December 31, 2022, respectively

( 7,869 ) ( 7,740 )

3 unchanged sentences

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

Table of conten t s

IQVIA HOLDINGS INC.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions) 2023 2022

5 unchanged sentences

Stock-based compensation 75 30

Losses (earnings) from unconsolidated affiliates 12 ( 5 )

Loss (gain) on investments, net 35 ( 9 )

Losses from unconsolidated affiliates 2 4

(Gain) loss on investments, net ( 4 ) 11

Benefit from deferred income taxes ( 27 ) ( 10 )

8 unchanged sentences

Investments in unconsolidated affiliates, net of payments received ( 7 ) ( 6 )

Proceeds from sale of equity securities — 5

Investments in debt and equity securities ( 36 ) —

Net cash used in investing activities ( 222 ) ( 613 )

Financing activities:

Proceeds from issuance of debt 1,250 1,951

Payment of debt issuance costs ( 5 ) ( 40 )

Repayment of debt and principal payments on finance leases ( 39 ) ( 24 )

3 unchanged sentences

Repurchase of common stock ( 129 ) ( 403 )

Acquisition of Quest's non-controlling interest — ( 758 )

Contingent consideration and deferred purchase price payments ( 62 ) ( 12 )

Net cash used in financing activities ( 136 ) ( 1,097 )

Net cash provided by financing activities 87 144

Effect of foreign currency exchange rate changes on cash ( 4 ) ( 18 )

Decrease in cash and cash equivalents ( 92 ) ( 344 )

Increase in cash and cash equivalents 278 21

Cash and cash equivalents at beginning of period 1,216 1,366

1 unchanged sentence

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

Table of conten t s

IQVIA HOLDINGS INC.

9 unchanged sentences

Comprehensive

(Loss) Income Non-

Interests Total

(Loss) Income Total

Balance, December 31, 2022 256.4 ( 70.7 ) $ 3 $ 10,895 $ 3,334 $ ( 7,740 ) $ ( 727 ) $ 5,765

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Balance, March 31, 2023 256.9 ( 71.4 ) $ 3 $ 10,906 $ 3,623 $ ( 7,869 ) $ ( 731 ) $ 5,932

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

Issuance of common stock — — — ( 1 ) — — — — ( 1 )

Repurchase of common stock — ( 0.8 ) — — — ( 150 ) — — ( 150 )

Stock-based compensation — — — 64 — — — — 64

Net income — — — — 283 — — — 283

Unrealized gains on derivative instruments, net of tax — — — — — — 6 — 6

Defined benefit plan adjustments, net of tax — — — — — — 10 — 10

Foreign currency translation, net of tax — — — — — — ( 218 ) — ( 218 )

Reclassification adjustments, net of tax — — — — — — 1 — 1

Balance, September 30, 2022 256.3 ( 70.5 ) $ 3 $ 10,850 $ 3,107 $ ( 7,715 ) $ ( 898 ) $ — $ 5,347

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

Table of conten t s

IQVIA HOLDINGS INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in millions) Common

6 unchanged sentences

Comprehensive

(Loss) Income Non-

Interests Total

(Loss) Income Total

Balance, December 31, 2021 255.8 ( 65.2 ) $ 3 $ 10,774 $ 2,243 $ ( 6,572 ) $ ( 406 ) $ 6,042

4 unchanged sentences

Unrealized gains on derivative instruments, net of tax — — — — — — 30 30

Defined benefit plan adjustments, net of tax — — — — — — ( 2 ) ( 2 )

Foreign currency translation, net of tax — — — — — — ( 40 ) ( 40 )

1 unchanged sentence

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

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 ( 64.0 ) 3 10,693 1,664 ( 6,273 ) ( 327 ) — 5,760

Issuance of common stock — — — 4 — — — — 4

Repurchase of common stock — ( 0.5 ) — — — ( 125 ) — — ( 125 )

Stock-based compensation — — — 48 — — — — 48

Acquisition of Quest's non-controlling interest, net of tax — — ( 1 ) — — — — ( 1 )

Net income — — — — 261 — — — 261

Unrealized losses on derivative instruments, net of tax — — — — — — ( 4 ) — ( 4 )

Foreign currency translation, net of tax — — — — — — ( 117 ) — ( 117 )

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

Balance, September 30, 2021 255.6 ( 64.5 ) $ 3 $ 10,744 $ 1,925 $ ( 6,398 ) $ ( 445 ) $ — $ 5,829

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

Table of conten t s

IQVIA HOLDINGS INC.

4 unchanged sentences

(together with its subsidiaries, the “Company” or “IQVIA”) is a leading global provider of advanced analytics, technology solutions and clinical research services to the life sciences industry.

With approximately 85,000 employees, IQVIA conducts business in more than 100 countries.

With approximately 87,000 employees, the Company conducts business in more than 100 countries.

Unaudited Interim Financial Information

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Accounting pronouncements adopted

In October 2021, the Financial Accounting Standards Board ("FASB") issued new accounting guidance that requires contract assets and contract liabilities (i.e., deferred revenue) acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers.

Under previous GAAP, an acquirer generally recognized assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers and other similar contracts that are accounted for in accordance with ASC 606, at fair value on the acquisition date.

Generally, this new guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree.

In September 2022, the Financial Accounting Standards Board ("FASB") issued new accounting guidance, Accounting Standards Update ("ASU") 2022-04, Liabilities - Supplier Finance Programs , to enhance the transparency of supplier finance programs.

The amendments in this ASU address investor and other financial statement user requests for additional information about the use of supplier finance programs by the buyer party to understand the effect of those programs on an entity's working capital, liquidity, and cash flows.

The Company adopted this new accounting guidance effective January 1, 2023.

The adoption of this new accounting guidance did not have a material impact on the Company's consolidated financial statements for the three and nine months ended September 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 .

Table of conten t s

The adoption of this new accounting guidance did not have a material effect on the Company's disclosures within the consolidated financial statements.

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 and nine months ended September 30, 2022 and 2021:

Three Months Ended September 30, 2022

(in millions) Technology &

Analytics Solutions Research &

Development Solutions Contract Sales &

Medical Solutions Total

Americas $ 746 $ 960 $ 91 $ 1,797

Europe and Africa 503 488 40 1,031

Asia-Pacific 151 531 52 734

Total revenues $ 1,400 $ 1,979 $ 183 $ 3,562

Three Months Ended September 30, 2021

(in millions) Technology &

Analytics Solutions Research &

Development Solutions Contract Sales &

Medical Solutions Total

Americas $ 647 $ 942 $ 94 $ 1,683

Europe and Africa 529 448 42 1,019

Asia-Pacific 161 463 65 689

Total revenues $ 1,337 $ 1,853 $ 201 $ 3,391

Nine Months Ended September 30, 2022

The following tables represent revenues by geographic region and reportable segment for the three months ended March 31, 2023 and 2022:

Three Months Ended March 31, 2023

(in millions) Technology &

6 unchanged sentences

Total revenues $ 1,444 $ 2,026 $ 182 $ 3,652

Nine Months Ended September 30, 2021

Three Months Ended March 31, 2022

(in millions) Technology &

6 unchanged sentences

Total revenues $ 1,439 $ 1,934 $ 195 $ 3,568

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

No individual customer represented 10% or more of consolidated revenues for the three months ended March 31, 2023 or 2022.

Transaction Price Allocated to the Remaining Performance Obligations

As of September 30, 2022, approximately $ 27.9 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.

As of March 31, 2023, approximately $ 31.4 billion of revenues are expected to be recognized in the future from remaining performance obligations.

The Company expects to recognize revenues on approximately 30 % of these remaining performance obligations over the next twelve months , on approximately 80% over the next five years, with the balance recognized thereafter.

Most of the Company's remaining performance obligations where revenues are expected to be recognized beyond the next twelve months are for service contracts for clinical research in the Company's Research & Development Solutions segment.

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 .

Table of conten t s

Trade Accounts Receivable, Unbilled Services and Unearned Income

Trade accounts receivables and unbilled services consist of the following:

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

Billed $ 1,145 $ 1,275

(in millions) March 31, 2023 December 31, 2022

Trade accounts receivable $ 1,351 $ 1,329

Unbilled services 1,745 1,624

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Unbilled services and unearned income were as follows:

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

(in millions) March 31, 2023 December 31, 2022 Change

Unbilled services $ 1,745 $ 1,624 $ 121

1 unchanged sentence

Net balance $ ( 82 ) $ ( 173 ) $ 91

Unbilled services, which is comprised of approximately 61 % and 63 % of unbilled receivables and 39 % and 37 % of contract assets as of September 30, 2022 and December 31, 2021, respectively, increased by $ 217 million as compared to December 31, 2021.

Unbilled services, which is comprised of approximately 66 % and 61 % of unbilled receivables and 34 % and 39 % of contract assets as of March 31, 2023 and December 31, 2022, respectively, increased by $ 121 million as compared to December 31, 2022.

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 $ 17 million over the same period resulting in an increase of $ 200 million in the net balance of unbilled services and unearned income between December 31, 2021 and September 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 nine months ended September 30, 2022 and 2021.

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

Unearned income increased by $ 30 million over the same period resulting in an increase of $ 91 million in the net balance of unbilled services and unearned income between March 31, 2023 and December 31, 2022.

The change in the net balance is driven by the difference in timing of revenue recognition in accordance with Accounting Standards Codification ("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.

The majority of the unearned income balance as of the beginning of the year is expected to be recognized in revenues during the year ended December 31, 2023.

Bad debt expense recognized on the Company’s trade accounts receivable was immaterial for the three months ended March 31, 2023 and 2022.

Accounts Receivable Factoring Arrangements

The Company has accounts receivable factoring agreements to sell certain eligible unsecured trade accounts receivable, either based on automatic arrangements or at its option, without recourse, to unrelated third-party financial institutions for cash.

For the three months ended March 31, 2023, through its accounts receivable factoring arrangements that the Company utilizes most frequently, the Company factored approximately $ 181 million of trade accounts receivable on a non-recourse basis and received approximately $ 174 million in cash proceeds from the sales.

The fees associated with these transactions were immaterial.

The Company has other accounts receivable arrangements for which the activity associated with them is immaterial.

The following is a summary of goodwill by reportable segment for the three months ended March 31, 2023:

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

2 unchanged sentences

Impact of foreign currency fluctuations and other 73 4 ( 1 ) 76

Balance as of September 30, 2022 $ 11,038 $ 1,992 $ 147 $ 13,177

Table of conten t s

Balance as of March 31, 2023 $ 11,611 $ 2,251 $ 153 $ 14,015

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 September 30, 2022 December 31, 2021

(in millions) Balance Sheet Classification March 31, 2023 December 31, 2022

Assets Liabilities Notional Assets Liabilities Notional

Derivatives designated as hedging instruments:

Foreign exchange forward contracts Other current assets and liabilities $ — $ 15 $ 125 $ — $ 3 $ 110

Interest rate swaps Other current assets, other assets and liabilities 49 — 1,800 4 24 1,800

Interest rate swaps Other current assets, other assets and other current liabilities $ 26 $ 7 $ 1,800 $ 42 $ — $ 1,800

Foreign exchange forward contracts Other current assets and other current liabilities 3 — 133 2 2 122

Total derivatives $ 29 $ 7 $ 44 $ 2

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 September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in millions) 2023 2022

Foreign exchange forward contracts $ ( 5 ) $ ( 5 ) $ ( 12 ) $ ( 9 )

Interest rate swaps $ ( 23 ) $ 40

Foreign exchange forward contracts 3 ( 2 )

Total $ ( 20 ) $ 38

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 nine months ended September 30, 2022 and 2021 was $ 807 million and $ 332 million, respectively.

The Company expects $ 35 million of pre-tax unrealized gains related to its foreign exchange contracts and interest rate derivatives included in accumulated other comprehensive (loss) income (“AOCI”) as of March 31, 2023 to be reclassified into earnings within the next twelve months.

As of March 31, 2023, the Company's foreign currency denominated debt balance (net of original issue discount) designated as a hedge of its net investment in certain foreign subsidiaries totaled € 5,207 million ($ 5,664 million).

The amount of foreign exchange (losses) gains related to the net investment hedge included in the cumulative translation adjustment component of AOCI for the three months ended March 31, 2023 and 2022 was $( 89 ) million and $ 119 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 September 30, 2022 and December 31, 2021 due to their short-term nature.

As of September 30, 2022 and December 31, 2021, the fair value of total debt approximated $ 11,603 million and $ 12,255 million, respectively, as determined under Level 1 and Level 2 measurements for these financial instruments.

Table of conten t s

The carrying values of cash, cash equivalents, accounts receivable and accounts payable approximated their fair values as of March 31, 2023 and December 31, 2022 due to their short-term nature.

As of March 31, 2023 and December 31, 2022, the fair value of total debt was $ 12,793 million and $ 12,281 million, respectively, as determined under Level 2 measurements for these financial instruments.

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 September 30, 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 March 31, 2023:

(in millions) Level 1 Level 2 Level 3 Total

5 unchanged sentences

Total $ — $ 7 $ 110 $ 117

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 December 31, 2022:

(in millions) Level 1 Level 2 Level 3 Total

Marketable securities $ 122 $ — $ — $ 122

Derivatives — 44 — 44

Total $ 122 $ 44 $ — $ 166

Derivatives $ — $ 2 $ — $ 2

Contingent consideration — — 173 173

Total $ — $ 2 $ 173 $ 175

Below is a summary of the valuation techniques used in determining fair value:

5 unchanged sentences

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 September 30, 2022 the Company has accrued approximately 73 % 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 nine months ended September 30:

Contingent Consideration

(in millions) 2022 2021

Balance as of January 1 $ 76 $ 119

Based on the assessments of the probability of achieving specific targets, as of March 31, 2023, the Company has accrued approximately 76 % 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, 2023:

(in millions) Contingent Consideration

Balance as of December 31, 2022 $ 173

Business combinations 3

1 unchanged sentence

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

Balance as of September 30 $ 95 $ 96

Balance as of March 31, 2023 $ 110

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

Revaluations of contingent consideration are recognized in other (income) expense, 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 September 30, 2022, assets carried on the balance sheet and not remeasured to fair value on a recurring basis totaled approximately $ 18,021 million and were identified as Level 3.

These assets are comprised of cost and equity method investments of $ 126 million, goodwill of $ 13,177 million and other identifiable intangibles, net of $ 4,718 million.

Table of conten t s

As of March 31, 2023, assets carried on the balance sheet and not remeasured to fair value on a recurring basis totaled $ 18,946 million and were identified as Level 3.

These assets are comprised of debt investments and cost and equity method investments of $ 174 million, goodwill of $ 14,015 million and other identifiable intangibles, net of $ 4,757 million.

Credit Arrangements

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

The following is a summary of the Company’s revolving credit facilities as of March 31, 2023:

Interest Rates

$ 1,500 million (revolving credit facility)

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

LIBOR in the relevant currency borrowed plus a margin of 1.25 % as of March 31, 2023

$ 110 million (receivables financing facility)

LIBOR Market Index Rate ( 3.14 % as of September 30, 2022) plus 0.90 %

LIBOR Market Index Rate ( 4.86 % as of March 31, 2023) plus 0.90 %

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

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

(dollars in millions) March 31, 2023 December 31, 2022

Revolving Credit Facility due 2026:

7 unchanged sentences

Dollar SOFR at average floating rates of 6.16 %

Term B Loan due 2024—U.S.

Dollar LIBOR at average floating rates of 4.87 %

Term B Loan due 2024—Euribor at average floating rates of 5.02 %

21 unchanged sentences

Long-term debt $ 11,833 $ 12,595

Table of conten t s

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

Contractual maturities of long-term debt as of March 31, 2023 are as follows:

(in millions)

2 unchanged sentences

Senior Secured Credit Facilities

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 September 30, 2022, the Company’s Credit Agreement provided financing through several senior secured credit facilities of up to approximately $ 8,009 million, which consisted of $ 6,509 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.

As of March 31, 2023, the Company’s Fifth Amended and Restated Credit Agreement provided financing through several senior secured credit facilities of up to $ 7,632 million, which consisted of $ 6,932 million principal amounts of debt outstanding (as detailed in the table above), and $ 695 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.

2 unchanged sentences

dollars and Yen.

On April 17, 2023, the Company increased the capacity of its senior secured revolving credit facility by $ 500 million U.S.

dollars, bringing the total capacity of the revolving credit facility to $ 2,000 million.

At the same time, the Company also amended the benchmark rate of the U.S.

dollar revolving credit facility and the U.S.

dollar Term A Loans from U.S.

dollar LIBOR to U.S.

dollar SOFR plus a 10 basis point Credit Spread Adjustment.

Restrictive Covenants

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

As of March 31, 2023, the Company was in compliance in all material respects with the financial covenants under the Company’s financing arrangements .

Contingencies

5 unchanged sentences

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

Table of conten t s

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

33 unchanged sentences

Veeva is currently appealing the Order.

Table of conten 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.

On October 7, 2022, the Court dismissed MedImpact’s RICO claims as well as all claims against IQVIA Inc., IQVIA Ltd., and one of the individual employee defendants.

A trial date on the remaining claims is anticipated in 2023.

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

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 September 30, 2022 or December 31, 2021.

No shares of preferred stock were issued or outstanding as of March 31, 2023 or December 31, 2022.

Equity Repurchase Program

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.

As of March 31, 2023, the total stock repurchase authorization under the Company's equity repurchase program (the “Repurchase Program”) was $ 9,725 million.

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 nine months ended September 30, 2022, the Company repurchased 5.3 million shares of its common stock for $ 1,143 million under the Repurchase Program.

These amounts include approximately 0.2 million of shares valued at approximately $ 40 million, which were accrued for as of September 30, 2022 based on when the trade and settlement dates occurred.

As of September 30, 2022, the Company has remaining authorization to repurchase up to approximately $ 1.4 billion of its common stock under the Repurchase Program.

During the three months ended March 31, 2023, the Company repurchased 0.7 million shares of its common stock for $ 129 million under the Repurchase Program.

As of March 31, 2023, the Company has remaining authorization to repurchase up to $ 1,226 million 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 nine months ended September 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.

Further adjustments may be necessary as additional information related to the fair values of assets acquired and liabilities assumed is assessed during the measurement period (up to one year from the acquisition date).

The Company recorded goodwill from these acquisitions, primarily attributable to assembled workforce and expected synergies.

The condensed consolidated financial statements include the results of the acquisitions subsequent to their respective closing dates.

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.

Table of conten t s

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

(in millions) September 30, 2022

Assets acquired:

Cash and cash equivalents $ 25

Other assets 105

Other identifiable intangibles 403

Liabilities assumed:

Other liabilities ( 87 )

Deferred income taxes, long-term ( 90 )

Net assets acquired (1) $ 1,095

(1) Net assets acquired includes contingent consideration and deferred purchase price of $ 58 million for the nine months ended September 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 September 30, 2022

Other identifiable intangibles:

Customer relationships 1 - 17 years $ 311

Software and related assets 3 - 5 years 58

Backlog 1 - 4 years 14

Databases 5 years 11

Trade names 2 - 3 years 6

Non-compete agreements 3 years 3

Total Other identifiable intangibles $ 403

Restructuring

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Payments ( 14 )

Foreign currency translation and other ( 2 )

Balance as of September 30, 2022 $ 21

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

Balance as of March 31, 2023 $ 29

The reversals were due to changes in estimates primarily resulting 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 September 30, 2022 will be paid in 2022 and 2023.

Table of conten t s

The effective income tax rate was 19.4 % and 4.4 % in the third quarter of 2022 and 2021, respectively, and 19.5 % and 13.8 % in the first nine months of 2022 and 2021, respectively.

The effective income tax rate in the third quarter and the first nine months of 2022 and 2021 was favorably impacted by the Company recording a benefit related to the 2021 and 2020 U.S.

Federal tax return position associated with Foreign Derived Intangible Income (“FDII”) and Global Intangible Low-Taxed Income (“GILTI”) tax credits of $ 6 million and $ 29 million, respectively.

Additionally, the effective income tax rate in the third quarter and in the first nine 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 third quarter of 2022 and 2021 this impact was $ 1 million and $ 3 million, respectively, and for the first nine months of 2022 and 2021 this impact was $ 15 million and $ 26 million , respectively.

On August 16, 2022, the U.S.

government enacted the Inflation Reduction Act of 2022, which, among other things, implements a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy.

The Company is assessing these impacts on its condensed consolidated financial statements.

The Company expects that the majority of the restructuring accruals as of March 31, 2023 will be paid in 2023 and 2024.

The Company's effective income tax rate was 19.6 % and 17.8 % in the first quarter of 2023 and 2022, respectively.

The effective income tax rate in the first quarter of 2023 and 2022 was favorably impacted by $ 8 million and $ 13 million, respectively, as a result of excess tax benefits recognized upon settlement of share-based compensation awards.

Accumulated Other Comprehensive (Loss) Income

6 unchanged sentences

Reclassification adjustments — ( 33 ) — 8 ( 25 )

Balance as of September 30, 2022 $ ( 914 ) $ 36 $ 11 $ ( 31 ) $ ( 898 )

Balance as of March 31, 2023 $ ( 844 ) $ 24 $ ( 7 ) $ 96 $ ( 731 )

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 September 30, Nine Months Ended September 30,

2022 2021 2022 2021

Line Item Three Months Ended March 31,

Derivative instruments:

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The Company’s reportable segment information is presented below:

Table of conten t s

Three Months Ended

September 30, Nine Months Ended

September 30,

Three Months Ended March 31,

(in millions) 2023 2022

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

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in millions, except per share data) 2023 2022

Net income attributable to IQVIA Holdings Inc.

$ 283 $ 261 $ 864 $ 648

Net income $ 289 $ 325

Basic weighted average common shares outstanding 185.8 190.0

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.

Table of conten t s

For the three and nine months ended September 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 0.4 and 0.9 million, and 0.5 and 0.9 million, respectively.

Subsequent Events

On October 13, 2022, the Company elected to prepay $ 510 million, the entire outstanding balance, of its U.S.

Dollar Term B Loan due 2024.

Table of conten t s

For the three months ended March 31, 2023 and 2022, 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 1.0 and 0.3 million, respectively.

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