What changed in this filing

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Item 1. Financial Statements

2023-11-01 compared with 2023-08-01 · 100 added, 71 removed, 528 unchanged (24% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended June 30, Six Months Ended

Three Months Ended

September 30, Nine Months Ended

September 30,

(in millions, except per share data) 2023 2022 2023 2022

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Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(in millions) 2023 2022 2023 2022

Net income $ 303 $ 283 $ 889 $ 864

Comprehensive income (loss) adjustments:

Unrealized gains (losses) on derivative instruments, net of income tax expense (benefit) of $ 8 , $( 1 ), $ 11 , $ 8

22 ( 7 ) 32 23

Comprehensive income adjustments:

Unrealized gains on derivative instruments, net of income tax expense of $ — , $ 2 , $ 11 , $ 10

Defined benefit plan adjustments, net of income tax expense of $ — , $ 2 , $ — , $ 2

— ( 4 ) 1 ( 6 )

Foreign currency translation, net of income tax (benefit) expense of $( 3 ), $ 84 , $( 32 ), $ 111

Foreign currency translation, net of income tax expense of $ 44 , $ 84 , $ 12 , $ 195

( 136 ) ( 218 ) ( 170 ) ( 539 )

2 unchanged sentences

( 9 ) 1 ( 41 ) 14

Comprehensive income (loss) $ 268 $ ( 22 ) $ 553 $ 290

Comprehensive income $ 160 $ 82 $ 713 $ 372

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

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CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except per share data) June 30, 2023 December 31, 2022

(in millions, except per share data) September 30, 2023 December 31, 2022

Current assets:

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Stockholders’ equity:

Common stock and additional paid-in capital, 400.0 shares authorized as of June 30, 2023 and December 31, 2022, $ 0.01 par value, 257.0 shares issued and 183.1 shares outstanding as of June 30, 2023;

Common stock and additional paid-in capital, 400.0 shares authorized as of September 30, 2023 and December 31, 2022, $ 0.01 par value, 257.1 shares issued and 182.5 shares outstanding as of September 30, 2023;

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

1 unchanged sentence

Retained earnings 4,223 3,334

Treasury stock, at cost, 73.9 and 70.7 shares as of June 30, 2023 and December 31, 2022, respectively

Treasury stock, at cost, 74.6 and 70.7 shares as of September 30, 2023 and December 31, 2022, respectively

( 8,509 ) ( 7,740 )

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions) 2023 2022

28 unchanged sentences

Contingent consideration and deferred purchase price payments ( 79 ) ( 22 )

Net cash provided by financing activities 182 115

Net cash provided by (used in) financing activities 38 ( 136 )

Effect of foreign currency exchange rate changes on cash ( 41 ) ( 127 )

Increase in cash and cash equivalents 166 62

Increase (decrease) in cash and cash equivalents 8 ( 92 )

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

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Balance, June 30, 2023 257.0 ( 73.9 ) 3 10,949 3,920 ( 8,364 ) ( 760 ) 5,748

Issuance of common stock 0.1 — — — — — — —

Repurchase of common stock, net of tax — ( 0.7 ) — — — ( 145 ) — ( 145 )

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

Net income — — — — 303 — — 303

Unrealized gains on derivative instruments, net of tax — — — — — — 2 2

Foreign currency translation, net of tax — — — — — — ( 136 ) ( 136 )

Reclassification adjustments, net of tax — — — — — — ( 9 ) ( 9 )

Balance, September 30, 2023 257.1 ( 74.6 ) $ 3 $ 10,991 $ 4,223 $ ( 8,509 ) $ ( 903 ) $ 5,805

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

IQVIA HOLDINGS INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in millions) Common

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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.

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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 six months ended June 30, 2023 and 2022:

Three Months Ended June 30, 2023

The following tables represent revenues by geographic region and reportable segment for the three and nine months ended September 30, 2023 and 2022:

Three Months Ended September 30, 2023

(in millions) Technology &

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Total revenues $ 1,431 $ 2,122 $ 183 $ 3,736

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

(in millions) Technology &

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

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

(in millions) Technology &

6 unchanged sentences

Total revenues $ 4,331 $ 6,244 $ 541 $ 11,116

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

(in millions) Technology &

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Total revenues $ 4,247 $ 5,863 $ 561 $ 10,671

No individual customer represented 10% or more of consolidated revenues for the three and six months ended June 30, 2023 or 2022.

No individual customer represented 10% or more of consolidated revenues for the three and nine months ended September 30, 2023 or 2022.

Transaction Price Allocated to the Remaining Performance Obligations

As of June 30, 2023, approximately $ 31.0 billion of revenues are expected to be recognized in the future from remaining performance obligations.

As of September 30, 2023, approximately $ 31.3 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 85 % over the next five years , with the balance recognized thereafter.

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Trade accounts receivables and unbilled services consist of the following:

(in millions) June 30, 2023 December 31, 2022

(in millions) September 30, 2023 December 31, 2022

Trade accounts receivable $ 1,349 $ 1,329

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Unbilled services and unearned income were as follows:

(in millions) June 30, 2023 December 31, 2022 Change

(in millions) September 30, 2023 December 31, 2022 Change

Unbilled services $ 1,905 $ 1,624 $ 281

1 unchanged sentence

Net balance $ 67 $ ( 173 ) $ 240

Unbilled services, which is comprised of approximately 66 % and 61 % of unbilled receivables and 34 % and 39 % of contract assets as of June 30, 2023 and December 31, 2022, respectively, increased by $ 204 million as compared to December 31, 2022.

Unbilled services, which is comprised of approximately 66 % and 61 % of unbilled receivables and 34 % and 39 % of contract assets as of September 30, 2023 and December 31, 2022, respectively, increased by $ 281 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 $ 47 million over the same period resulting in an increase of $ 157 million in the net balance of unbilled services and unearned income between June 30, 2023 and December 31, 2022.

Unearned income increased by $ 41 million over the same period resulting in an increase of $ 240 million in the net balance of unbilled services and unearned income between September 30, 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 and six months ended June 30, 2023 and 2022.

Bad debt expense recognized on the Company’s trade accounts receivable was immaterial for the three and nine months ended September 30, 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.

During the six months ended June 30, 2023, through its accounts receivable factoring arrangements that the Company utilizes most frequently, the Company factored approximately $ 394 million of customer invoices on a non-recourse basis and received approximately $ 385 million in cash proceeds from the sales.

During the nine months ended September 30, 2023, through its accounts receivable factoring arrangements that the Company utilizes most frequently, the Company factored approximately $ 545 million of customer invoices on a non-recourse basis and received approximately $ 534 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 six months ended June 30, 2023:

The following is a summary of goodwill by reportable segment for the nine months ended September 30, 2023:

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

2 unchanged sentences

Impact of foreign currency fluctuations and other ( 139 ) — ( 6 ) ( 145 )

Balance as of June 30, 2023 $ 11,591 $ 2,436 $ 151 $ 14,178

Balance as of September 30, 2023 $ 11,712 $ 2,428 $ 148 $ 14,288

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 June 30, 2023 December 31, 2022

(in millions) Balance Sheet Classification September 30, 2023 December 31, 2022

Assets Liabilities Notional Assets Liabilities Notional

4 unchanged sentences

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 June 30, Six Months Ended June 30,

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

(in millions) 2023 2022 2023 2022

2 unchanged sentences

Total $ ( 10 ) $ 9 $ ( 10 ) $ 57

The Company expects $ 41 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 June 30, 2023 to be reclassified into earnings within the next twelve months.

As of June 30, 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 € 5,203 million ($ 5,665 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 six months ended June 30, 2023 and 2022 was $( 92 ) million and $ 466 million, respectively.

The Company expects approximately $ 30 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 September 30, 2023 to be reclassified into earnings within the next twelve months.

As of September 30, 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 € 5,199 million ($ 5,498 million).

The amount of foreign exchange gains related to the net investment hedge included in the cumulative translation adjustment component of AOCI for the nine months ended September 30, 2023 and 2022 was $ 69 million and $ 807 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 June 30, 2023 and December 31, 2022 due to their short-term nature.

As of June 30, 2023 and December 31, 2022, the fair value of total debt was $ 13,360 million and $ 12,281 million, respectively, as determined under 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 September 30, 2023 and December 31, 2022 due to their short-term nature.

As of September 30, 2023 and December 31, 2022, the fair value of total debt was $ 13,138 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 June 30, 2023:

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, 2023:

(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 June 30, 2023, the Company has accrued approximately 50 % 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, 2023:

Based on the assessments of the probability of achieving specific targets, as of September 30, 2023, the Company has accrued approximately 35 % 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, 2023:

(in millions) Contingent Consideration

3 unchanged sentences

Revaluations included in earnings and foreign currency translation adjustments ( 56 )

Balance as of June 30, 2023 $ 146

Balance as of September 30, 2023 $ 104

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.

2 unchanged sentences

Non-recurring Fair Value Measurements

As of June 30, 2023, assets carried on the balance sheet and not remeasured to fair value on a recurring basis totaled $ 19,303 million and were identified as Level 3.

As of September 30, 2023, assets carried on the balance sheet and not remeasured to fair value on a recurring basis totaled $ 19,387 million and were identified as Level 3.

These assets are comprised of debt investments and cost and equity method investments of $ 192 million, goodwill of $ 14,288 million and other identifiable intangibles, net of $ 4,907 million.

Credit Arrangements

The following is a summary of the Company’s revolving credit facilities as of June 30, 2023:

The following is a summary of the Company’s revolving credit facilities as of September 30, 2023:

Interest Rates

$ 2,000 million (revolving credit facility)

Dollar Term SOFR plus a margin of 1.25 % plus a 10 basis credit spread adjustment as of June 30, 2023

Dollar Term SOFR plus a margin of 1.25 % plus a 10 basis credit spread adjustment as of September 30, 2023

$ 110 million (receivables financing facility)

Dollar LIBOR Market Index Rate ( 5.22 % as of June 30, 2023) plus 0.90 %

Dollar Term SOFR plus a margin of 0.90 % plus a 11 basis credit spread adjustment as of September 30, 2023

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

(dollars in millions) June 30, 2023 December 31, 2022

(dollars in millions) September 30, 2023 December 31, 2022

Revolving Credit Facility due 2026:

9 unchanged sentences

Term B Loan due 2025—U.S.

Dollar LIBOR at average floating rates of 7.29 %

Dollar Term SOFR at average floating rates of 7.14 %

Term B Loan due 2025—U.S.

Dollar LIBOR at average floating rates of 7.29 %

Dollar Term SOFR at average floating rates of 7.14 %

Term B Loan due 2025—Euribor at average floating rates of 5.85 %

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Receivables financing facility due 2024—U.S.

Dollar LIBOR at average floating rates of 6.09 %

Dollar Term SOFR at average floating rates of 6.33 %:

Revolving Loan Commitment 110 110

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Long-term debt $ 12,322 $ 12,595

Contractual maturities of long-term debt as of June 30, 2023 are as follows:

Contractual maturities of long-term debt as of September 30, 2023 are as follows:

(in millions)

2 unchanged sentences

Senior Secured Credit Facilities

As of June 30, 2023, the Company’s Fifth Amended and Restated Credit Agreement provided financing through several senior secured credit facilities of up to $ 8,095 million, which consisted of $ 6,295 million principal amounts of debt outstanding (as detailed in the table above), and $ 1,795 million of available borrowing capacity on the $ 2,000 million revolving credit facility and standby letters of credit.

As of September 30, 2023, the Company’s Fifth Amended and Restated Credit Agreement provided financing through several senior secured credit facilities of up to $ 7,998 million, which consisted of $ 6,248 million principal amounts of debt outstanding (as detailed in the table above), and $ 1,745 million of available borrowing capacity on the $ 2,000 million revolving credit facility and standby letters of credit.

The revolving credit facility is comprised of a $ 1,175 million senior secured revolving facility available in U.S.

25 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 June 30, 2023, the Company was in compliance in all material respects with the financial covenants under the Company’s financing arrangements .

As of September 30, 2023, the Company was in compliance in all material respects with the financial covenants under the Company’s financing arrangements .

Contingencies

34 unchanged sentences

Veeva claims damages in excess of $ 200 million, and is seeking punitive damages and litigation costs, including attorneys’ fees.

We believe the counterclaims are without merit, reject all counterclaims raised by Veeva and intend to vigorously defend IQVIA Parties’ position and pursue our claims against Veeva.

The Company believes the counterclaims are without merit, rejects all counterclaims raised by Veeva and intends to vigorously defend IQVIA Parties’ position and pursue its claims against Veeva.

Since the initial filings, the parties have filed additional litigations against each other, primarily concerning the use of IQVIA data with various other Veeva products.

6 unchanged sentences

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 June 30, 2023 or December 31, 2022.

No shares of preferred stock were issued or outstanding as of September 30, 2023 or December 31, 2022.

Equity Repurchase Program

As of June 30, 2023, the total stock repurchase authorization under the Company's equity repurchase program (the "Repurchase Program") was $ 9,725 million.

On July 31, 2023, 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 $ 2,000 million, which increased the total amount that has been authorized under the Repurchase Program to $ 11,725 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 six months ended June 30, 2023, the Company repurchased 3.2 million shares of its common stock for $ 619 million under the Repurchase Program.

As of June 30, 2023, the Company had remaining authorization to repurchase up to $ 736 million of its common stock under the Repurchase Program.

During the nine months ended September 30, 2023, the Company repurchased 3.9 million shares of its common stock for $ 763 million under the Repurchase Program.

As of September 30, 2023, the Company had remaining authorization to repurchase up to $ 2,592 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.

On July 31, 2023, the Company's Board of Directors increased the stock repurchase authorization under the Repurchase Program with respect to the repurchase of the Company's common stock by an additional $ 2,000 million, which increased the total amount that has been authorized under the Repurchase Program to $ 11,725 million.

After this $ 2,000 million increase in stock repurchase authorization, the Company has remaining authorization to repurchase up to $ 2,736 million of its common stock under the Repurchase Program.

Business Combinations

The Company completed several individually immaterial acquisitions during the six months ended June 30, 2023.

The Company completed several individually immaterial acquisitions during the nine months ended September 30, 2023.

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.

4 unchanged sentences

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

(in millions) June 30, 2023

(in millions) September 30, 2023

Assets acquired:

Cash and cash equivalents $ 27

Accounts receivable 42

Other assets 9

7 unchanged sentences

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

(in millions) Amortization Period June 30, 2023

(in millions) Amortization Period September 30, 2023

Other identifiable intangibles:

3 unchanged sentences

Databases 3 - 5 years 3

Trade names 5 years 3

Total Other identifiable intangibles $ 416

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Payments ( 50 )

Balance as of June 30, 2023 $ 34

Foreign currency translation and other ( 1 )

Balance as of September 30, 2023 $ 42

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 June 30, 2023 will be paid in 2023 and 2024.

The Company's effective income tax rate was 21.6 % and 21.6 % in the second quarter of 2023 and 2022, and 20.6 % and 19.5 % in the first six months of 2023 and 2022, respectively.

The effective income tax rate in the second quarter and in the first six months of 2023 and 2022 was favorably impacted as a result of excess tax benefits recognized upon settlement of share-based compensation awards.

For the second quarter of 2023 and 2022 this impact was $ 2 million and $ 1 million, respectively, and for the first six months of 2023 and 2022 this impact was $ 10 million and $ 14 million, respectively.

The Company expects that the majority of the restructuring accruals as of September 30, 2023 will be paid in 2023 and 2024.

The Company's effective income tax rate was 14.6 % and 19.4 % in the third quarter of 2023 and 2022, and 18.7 % and 19.5 % in the first nine months of 2023 and 2022, respectively.

The effective income tax rate in the third quarter and first nine months of 2023 was favorably impacted by a reversal of uncertain tax positions relating to tax credit carryforwards in the amount of $21 million.

Additionally, the effective income tax rate in the third quarter and in the first nine months of 2023 and 2022 was favorably impacted as a result of excess tax benefits recognized upon settlement of share-based compensation awards.

For the third quarter of 2023 and 2022 this impact was $ 2 million and $ 1 million, respectively, and for the first nine months of 2023 and 2022 this impact was $ 12 million and $ 15 million, respectively.

Historically, the Company recorded deferred tax assets related to certain foreign tax credits.

A full valuation allowance in relation to these foreign tax credits was established as it was not expected the credits would be utilized prior to expiration.

As a result of an anticipated internal legal entity restructuring, the Company now believes it is reasonably possible that these foreign tax credits will be utilized and expects to reverse the valuation allowance in the near term which could create a material discrete tax benefit in the period recorded.

Accumulated Other Comprehensive (Loss) Income

6 unchanged sentences

Reclassification adjustments — ( 55 ) — 14 ( 41 )

Balance as of June 30, 2023 $ ( 891 ) $ 44 $ ( 7 ) $ 94 $ ( 760 )

Balance as of September 30, 2023 $ ( 983 ) $ 34 $ ( 7 ) $ 53 $ ( 903 )

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 June 30, Six Months Ended June 30,

Line Item Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

15 unchanged sentences

The Company’s reportable segment information is presented below:

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

Three Months Ended

September 30, Nine Months Ended

September 30,

(in millions) 2023 2022 2023 2022

25 unchanged sentences

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

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

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

(in millions, except per share data) 2023 2022 2023 2022

8 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 and six months ended June 30, 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 1.2 million and 0.7 million, and 1.1 million and 0.5 million, respectively.

For the three and nine months ended September 30, 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 0.9 million and 0.4 million, and 1.0 million and 0.5 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