What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-05-02 compared with 2023-11-01 · 110 added, 128 removed, 172 unchanged (58% of the section changed)

31 unchanged sentences

IQVIA is a leading global provider of advanced analytics, technology solutions and clinical research services to the life sciences industry.

IQVIA creates intelligent connections across all aspects of healthcare through its analytics, transformative technology, big data resources and extensive domain expertise.

IQVIA Connected Intelligence™ delivers powerful insights with speed and agility — enabling customers to accelerate the clinical development and commercialization of innovative medical treatments that improve healthcare outcomes for patients.

IQVIA creates intelligent connections across all aspects of healthcare through its analytics, transformative technology, big data resources, extensive domain expertise and network of partners.

IQVIA Connected Intelligence delivers actionable insights and powerful solutions with speed and agility — enabling customers to accelerate the clinical development and commercialization of innovative medical treatments that improve healthcare outcomes for patients.

With approximately 87,000 employees, we conduct operations in more than 100 countries.

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Foreign Currency Translation

In the first nine months of 2023, approximately 30% of our revenues were denominated in currencies other than the United States dollar, which represents approximately 60 currencies.

In the first three months of 2024, approximately 30% of our revenues were denominated in currencies other than the United States dollar, which represents approximately 60 currencies.

Because a large portion of our revenues and expenses are denominated in foreign currencies and our financial statements are reported in United States dollars, changes in foreign currency exchange rates can significantly affect our results of operations.

6 unchanged sentences

For information regarding our results of operations for Technology & Analytics Solutions, Research & Development Solutions and Contract Sales & Medical Solutions, refer to “Segment Results of Operations” later in this section.

Three Months Ended September 30, Change

(in millions)

Revenues $ 3,736 $ 3,562 $ 174 4.9 %

For the third quarter of 2023, our revenues increased $174 million, or 4.9%, as compared to the same period in 2022.

This increase was comprised of constant currency revenue growth of approximately $147 million, or 4.1%, reflecting a $12 million increase in Technology & Analytics Solutions, a $126 million increase in Research & Development Solutions, and a $9 million increase in Contract Sales & Medical Solutions.

Nine Months Ended September 30, Change

Three Months Ended March 31, Change

(in millions)

Revenues $ 3,737 $ 3,652 $ 85 2.3 %

For the first nine months of 2023, our revenues increased $445 million, or 4.2%, as compared to the same period in 2022.

For the first quarter of 2024, our revenues increased $85 million, or 2.3%, as compared to the same period in 2023.

This increase was comprised of constant currency revenue growth of approximately $105 million, or 2.9%, reflecting a $14 million increase in Technology & Analytics Solutions, a $78 million increase in Research & Development Solutions, and a $13 million increase in Contract Sales & Medical Solutions.

Cost of Revenues, exclusive of Depreciation and Amortization

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

Three Months Ended March 31,

(in millions) 2024 2023

2023 2022 2023 2022

Cost of revenues, exclusive of depreciation and amortization $ 2,444 $ 2,398

% of revenues 65.4 % 65.7 %

64.9 % 65.2 % 65.4 % 65.4 %

The $105 million increase in cost of revenues, exclusive of depreciation and amortization, for the three months ended September 30, 2023 as compared to the same period in 2022 included a constant currency increase of approximately $113 million, or 4.9%, reflecting a $19 million increase in Technology & Analytics Solutions, a $93 million increase in Research & Development Solutions, and a $1 million increase in Contract Sales & Medical Solutions.

The $292 million increase in cost of revenues, exclusive of depreciation and amortization, for the nine months ended September 30, 2023 as compared to the same period in 2022 included a constant currency increase of approximately $463 million, or 6.6%, reflecting a $126 million increase in Technology & Analytics Solutions and a $340 million increase in Research & Development Solutions, offset by a $3 million decrease in Contract Sales & Medical Solutions.

The $46 million increase in cost of revenues, exclusive of depreciation and amortization, for the three months ended March 31, 2024 as compared to the same period in 2023 included a constant currency increase of approximately $168 million, or 7.0%, reflecting a $43 million increase in Technology & Analytics Solutions, a $113 million increase in Research & Development Solutions, and a $12 million increase in Contract Sales & Medical Solutions.

Selling, General and Administrative Expenses

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

Three Months Ended March 31,

(in millions)

2023 2022 2023 2022

Selling, general and administrative expenses $ 508 $ 513

1 unchanged sentence

13.6 % 14.0 %

The $15 million decrease in selling, general and administrative expenses for the three months ended September 30, 2023 as compared to the same period in 2022 included a constant currency decrease of approximately $17 million, or 3.3%, reflecting a $1 million increase in Technology & Analytics Solutions and a $19 million increase in Research & Development Solutions, offset by a $2 million decrease in Contract Sales & Medical Solutions and a $35 million decrease in general corporate and unallocated expenses.

The $9 million increase in selling, general and administrative expenses for the nine months ended September 30, 2023 as compared to the same period in 2022 included a constant currency increase of approximately $38 million, or 2.6%, reflecting a $38 million increase in Technology & Analytics Solutions and a $36 million increase in Research & Development Solutions, offset by a $4 million decrease in Contract Sales & Medical Solutions and a $32 million decrease in general corporate and unallocated expenses.

The $5 million decrease in selling, general and administrative expenses for the three months ended March 31, 2024 as compared to the same period in 2023 included no constant currency change at the consolidated level, reflecting a $6 million increase in Technology & Analytics Solutions, a $12 million increase in Research & Development Solutions, and a $1 million increase in Contract Sales & Medical Solutions, offset by a $19 million decrease in general corporate and unallocated expenses.

Depreciation and Amortization

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

Three Months Ended March 31,

(in millions) 2024 2023

1 unchanged sentence

% of revenues

7.9 % 7.0 % 7.3 % 7.2 %

The $49 million increase in depreciation and amortization for the three months ended September 30, 2023 compared to the same period in 2022 was primarily the result of an increase in amortization of capitalized software and of intangible assets from acquisitions occurring in 2022 and 2023.

The $36 million increase in depreciation and amortization for the nine months ended September 30, 2023 compared to the same period in 2022 was primarily the result of an increase in amortization of capitalized software and of intangible assets from acquisitions occurring in 2022 and 2023, offset by less amortization from certain intangible assets from the merger between Quintiles and IMS Health and less accelerated amortization related to the abandonment of certain software assets.

The $11 million increase in depreciation and amortization for the three months ended March 31, 2024 compared to the same period in 2023 was primarily the result of an increase in amortization of capitalized software and of intangible assets from acquisitions occurring in 2023 and 2024.

Restructuring Costs

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

Three Months Ended March 31,

(in millions) 2024 2023

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Interest Income and Interest Expense

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

Three Months Ended March 31,

(in millions) 2024 2023

2 unchanged sentences

Interest income includes interest received primarily from bank balances and investments.

The increase for the three and nine months ended September 30, 2023 as compared to the same periods in 2022 is primarily a result of higher deposit rates.

Interest expense during the three and nine months ended September 30, 2023 increased compared to the same periods in 2022 primarily due to higher base rate interest costs across the floating rate debt portfolio as well as from an increase in our net debt.

Other (Income) Expense, Net

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

The increase for the three months ended March 31, 2024 as compared to the same period in 2023 is primarily a result of higher deposit rates.

Interest expense during the three months ended March 31, 2024 increased compared to the same period in 2023 primarily due to higher base rate interest costs across the floating rate debt portfolio as well as from an increase in our net debt.

Other Expense (Income), Net

Three Months Ended March 31,

(in millions) 2024 2023

Other (income) expense, net $ (35) $ 8 $ (77) $ 51

Other (income) expense, net for the three months ended September 30, 2023 increased compared to the same period in 2022 primarily due to revaluations of contingent consideration and less foreign currency loss on transactions.

Other (income) expense, net for the nine months ended September 30, 2023 increased compared to the same period in 2022 primarily due to foreign currency gain on transactions, revaluations of contingent consideration and gains on investments.

Other expense (income), net $ 11 $ (26)

Other expense (income), net for the three months ended March 31, 2024 increased compared to the same period in 2023 primarily due to more foreign currency loss on transactions.

Income Tax Expense

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

Three Months Ended March 31,

(in millions) 2024 2023

Income tax expense $ 49 $ 71

Our 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.

Our 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, our 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, we 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, we now believe it is reasonably possible that these foreign tax credits will be utilized and expect to reverse the valuation allowance in the near term which could create a material discrete tax benefit in the period recorded.

Our effective income tax rate was 14.4% and 19.6% in the first quarter of 2024 and 2023, respectively.

Our effective income tax rate in the first quarter of 2024 was favorably impacted compared to the first quarter of 2023 due to changes in the geographical mix of earnings amongst the United States and foreign tax jurisdictions.

Our effective income tax rate in the first quarter of 2024 and 2023 was also favorably impacted by $9 million and $8 million, respectively, as a result of excess tax benefits recognized upon settlement of share-based compensation awards.

Numerous foreign jurisdictions have agreed to implement the OECD's Pillar 2 global corporate minimum tax rate of 15% on companies with revenues of at least €750 million, which went into effect in 2024.

We have evaluated the effect of this for the first quarter of 2024 and do not expect any material impacts for 2024.

We will continue to monitor as additional jurisdictions enact Pillar 2 legislation.

Segment Results of Operations

Revenues and profit by segment are as follows:

Three Months Ended September 30, 2023 and 2022

Segment Revenues Segment Profit

(in millions) 2023 2022 2023 2022

Technology & Analytics Solutions $ 1,431 $ 1,400 $ 355 $ 359

Research & Development Solutions 2,122 1,979 495 445

Contract Sales & Medical Solutions 183 183 12 8

Total 3,736 3,562 862 812

General corporate and unallocated (54) (88)

Depreciation and amortization (297) (248)

Restructuring costs (30) (4)

Consolidated $ 3,736 $ 3,562 $ 481 $ 472

Nine Months Ended September 30, 2023 and 2022

Three Months Ended March 31, 2024 and 2023

Segment Revenues Segment Profit

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These costs primarily consist of stock-based compensation and expenses related to integration activities and acquisitions.

We also do not allocate depreciation and amortization or impairment charges, if any, to our segments.

We also do not allocate restructuring costs, depreciation and amortization, or impairment charges, if any, to our segments.

Technology & Analytics Solutions

Three Months Ended September 30, Change

(in millions) 2023 2022 $ %

Revenues $ 1,431 $ 1,400 $ 31 2.2 %

Cost of revenues, exclusive of depreciation and amortization 859 828 31 3.7

Selling, general and administrative expenses 217 213 4 1.9

Segment profit $ 355 $ 359 $ (4) (1.1) %

Nine Months Ended September 30, Change

Three Months Ended March 31, Change

(in millions) 2024 2023 $ %

3 unchanged sentences

Segment profit $ 335 $ 361 $ (26) (7.2) %

Technology & Analytics Solutions’ revenues were $1,431 million for the third quarter of 2023, an increase of $31 million, or 2.2%, over the same period in 2022.

This increase was comprised of constant currency revenue growth of approximately $12 million, or 0.9%, reflecting revenue growth primarily in the Americas region and to a lesser extent in the Asia-Pacific region.

Technology & Analytics Solutions’ revenues were $4,331 million for the first nine months of 2023, an increase of $84 million, or 2.0%, over the same period in 2022.

This increase was comprised of constant currency revenue growth of approximately $102 million, or 2.4%, reflecting revenue growth primarily in the Americas region and to a lesser extent in the Asia-Pacific region.

The constant currency revenue growth for the three and nine months ended September 30, 2023 was driven by an increase in real world services and information and technology services.

Technology & Analytics Solutions’ revenues were $1,453 million for the first quarter of 2024, an increase of $9 million, or 0.6%, over the same period in 2023.

This increase was comprised of constant currency revenue growth of approximately $14 million, or 1.0%, reflecting revenue growth primarily in the Americas region.

The constant currency revenue growth for the three months ended March 31, 2024 was driven by an increase in information and technology services.

The constant currency revenue growth was impacted by a decrease in COVID-19 related work.

Cost of Revenues, exclusive of Depreciation and Amortization

Technology & Analytics Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $31 million, or 3.7%, in the third quarter of 2023 over the same period in 2022.

This increase included a constant currency increase of approximately $19 million, or 2.3%.

Technology & Analytics Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $103 million, or 4.1%, in the first nine months of 2023 over the same period in 2022.

Technology & Analytics Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $31 million, or 3.6%, in the first quarter of 2024 over the same period in 2023.

This increase included a constant currency increase of approximately $43 million, or 5.0%.

The constant currency increase for the three and nine months ended September 30, 2023 was related to an increase in compensation and related expenses and an increase in costs of acquiring and processing data to support revenue growth.

The constant currency increase for the three months ended March 31, 2024 was mainly related to an increase in costs of acquiring and processing data to support revenue growth.

Selling, General and Administrative Expenses

Technology & Analytics Solutions’ selling, general and administrative expenses increased $4 million, or 1.9%, in the third quarter of 2023 as compared to the same period in 2022, which included a constant currency increase of approximately $1 million, or 0.5%.

Technology & Analytics Solutions’ selling, general and administrative expenses increased $24 million, or 3.8%, in the first nine months of 2023 as compared to the same period in 2022, which included a constant currency increase of approximately $38 million, or 6.1%.

The constant currency increase for the three and nine months ended September 30, 2023 was primarily related to an increase in compensation and related expenses.

Technology & Analytics Solutions’ selling, general and administrative expenses increased $4 million, or 1.8%, in the first quarter of 2024 as compared to the same period in 2023, which included a constant currency increase of approximately $6 million, or 2.7%.

The constant currency increase for the three months ended March 31, 2024 was primarily related to an increase in compensation and related expenses.

Research & Development Solutions

Three Months Ended September 30, Change

(in millions)

Revenues $ 2,122 $ 1,979 $ 143 7.2 %

Cost of revenues, exclusive of depreciation and amortization 1,410 1,335 75 5.6

Selling, general and administrative expenses 217 199 18 9.0

Segment profit $ 495 $ 445 $ 50 11.2 %

Nine Months Ended September 30, Change

Three Months Ended March 31, Change

(in millions)

3 unchanged sentences

Segment profit $ 479 $ 428 $ 51 11.9 %

Research & Development Solutions’ contracted backlog increased from $27.2 billion as of December 31, 2022 to $28.8 billion as of September 30, 2023, and we expect approximately $7.4 billion of this backlog to convert to revenue in the next twelve months.

Research & Development Solutions’ revenues were $2,122 million for the third quarter of 2023, an increase of $143 million, or 7.2%, over the same period in 2022.

This increase was comprised of constant currency revenue growth of approximately $126 million, or 6.4%, reflecting revenue growth primarily in the Americas and Asia-Pacific regions.

Research & Development Solutions’ revenues were $6,244 million in the first nine months of 2023, an increase of $381 million, or 6.5%, over the same period in 2022.

This increase was comprised of constant currency revenue growth of approximately $400 million, or 6.8%, reflecting revenue growth primarily in the Americas and Asia-Pacific regions.

The constant currency revenue growth for the three and nine months ended September 30, 2023 was primarily the result of volume-related increases in clinical services and to a lesser extent from volume-related increases in lab testing.

Research & Development Solutions’ contracted backlog increased from $29.7 billion as of December 31, 2023 to $30.1 billion as of March 31, 2024, and we expect approximately $7.7 billion of this backlog to convert to revenues in the next twelve months.

Research & Development Solutions’ revenues were $2,095 million for the first quarter of 2024, an increase of $69 million, or 3.4%, over the same period in 2023.

This increase was comprised of constant currency revenue growth of approximately $78 million, or 3.8%, reflecting revenue growth primarily in the Europe and Africa and Asia-Pacific regions.

The constant currency revenue growth for the three months ended March 31, 2024 was primarily the result of volume-related increases in clinical services and to a lesser extent from volume-related increases in lab testing.

The constant currency revenue growth was impacted by a decrease in COVID-19 related work.

Cost of Revenues, exclusive of Depreciation and Amortization

Research & Development Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $75 million, or 5.6%, in the third quarter of 2023 over the same period in 2022.

This increase included a constant currency increase of approximately $93 million, or 7.0%.

Research & Development Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $208 million, or 5.2%, in the first nine months of 2023 over the same period in 2022.

Research & Development Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $9 million, or 0.6%, in the first quarter of 2024 over the same period in 2023.

This increase included a constant currency increase of approximately $113 million, or 8.2%.

The constant currency increase for the three and nine months ended September 30, 2023 was primarily related to an increase in compensation and related expenses as a result of volume-related increases in clinical services and lab testing.

The constant currency increase for the three months ended March 31, 2024 was primarily related to an increase in compensation and related expenses as a result of volume-related increases in clinical services and lab testing.

Selling, General and Administrative Expenses

Research & Development Solutions’ selling, general and administrative expenses increased $18 million, or 9.0%, in the third quarter of 2023 as compared to the same period in 2022, which included a constant currency increase of approximately $19 million, or 9.5%.

Research & Development Solutions’ selling, general and administrative expenses increased $26 million, or 4.2%, in the first nine months of 2023 as compared to the same period in 2022, which included a constant currency increase of approximately $36 million, or 5.9%.

The constant currency increase for the three and nine months ended September 30, 2023 was primarily related to an increase in compensation and related expenses.

Research & Development Solutions’ selling, general and administrative expenses increased $9 million, or 4.2%, in the first quarter of 2024 as compared to the same period in 2023, which included a constant currency increase of approximately $12 million, or 5.7%.

The constant currency increase for the three months ended March 31, 2024 was primarily related to an increase in compensation and related expenses.

Contract Sales & Medical Solutions

Three Months Ended September 30, Change

(in millions)

Revenues $ 183 $ 183 $ — 0.0 %

Cost of revenues, exclusive of depreciation and amortization 157 158 (1) (0.6)

Selling, general and administrative expenses 14 17 (3) (17.6)

Segment profit $ 12 $ 8 $ 4 50.0 %

Nine Months Ended September 30, Change

Three Months Ended March 31, Change

(in millions)

3 unchanged sentences

Segment profit $ 13 $ 13 $ — — %

Contract Sales & Medical Solutions’ revenues were $183 million for the third quarter of 2023, which is consistent with the same period in 2022 and included a constant currency revenue growth of approximately $9 million, or 4.9%.

Contract Sales & Medical Solutions’ revenues were $541 million in the first nine months of 2023, a decrease of $20 million, or 3.6%, over the same period in 2022.

This decrease included a constant currency revenue growth of approximately $7 million, or 1.2%.

Contract Sales & Medical Solutions’ revenues were $189 million for the first quarter of 2024, an increase of $7 million, or 3.8% over the same period in 2023.

This increase was comprised of constant currency revenue growth of approximately $13 million, or 7.1%, reflecting revenue growth in the Europe and Africa and Asia-Pacific regions.

Cost of Revenues, exclusive of Depreciation and Amortization

Contract Sales & Medical Solutions’ cost of revenues, exclusive of depreciation and amortization, decreased $1 million, or 0.6%, in the third quarter of 2023 as compared to the same period in 2022, which included a constant currency increase of approximately $1 million, or 0.6%.

Contract Sales & Medical Solutions’ cost of revenues, exclusive of depreciation and amortization, decreased $19 million, or 4.0%, in the first nine months of 2023 as compared to the same period in 2022.

This decrease included a constant currency decrease of approximately $3 million, or 0.6%.

Contract Sales & Medical Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $6 million, or 3.9%, in the first quarter of 2024 as compared to the same period in 2023.

This increase included a constant currency increase of approximately $12 million, or 7.8%.

The constant currency increase for the three months ended March 31, 2024 was primarily related to an increase in costs associated with supporting revenue growth.

Selling, General and Administrative Expenses

Contract Sales & Medical Solutions’ selling, general and administrative expenses decreased $3 million, or 17.6%, in the third quarter of 2023 as compared to the same period in 2022, which included a constant currency decrease of approximately $2 million, or 11.8%.

Contract Sales & Medical Solutions’ selling, general and administrative expenses decreased $5 million, or 10.4%, in the first nine months of 2023 as compared to the same period in 2022, which included a constant currency decrease of approximately $4 million, or 8.3%.

Contract Sales & Medical Solutions’ selling, general and administrative expenses increased $1 million, or 6.7%, in the first quarter of 2024 as compared to the same period in 2023, which included a constant currency increase of approximately $1 million, or 6.7%.

Liquidity and Capital Resources

7 unchanged sentences

We have and expect to transfer cash from those subsidiaries to the United States and to other international subsidiaries when it is cost effective to do so.

We had a cash balance of $1,224 million as of September 30, 2023 ($406 million of which was in the United States), an increase from $1,216 million as of December 31, 2022.

We had a cash balance of $1,444 million as of March 31, 2024 ($567 million of which was in the United States), an increase from $1,376 million as of December 31, 2023.

Based on our current operating plan, we believe that our available cash and cash equivalents, future cash flows from operations and our ability to access funds under our revolving credit and receivables financing facilities will enable us to fund our operating requirements, capital expenditures, contractual obligations, and meet debt obligations for at least the next 12 months.

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Equity Repurchase Program

On July 31, 2023, our Board of Directors increased the stock repurchase authorization under our equity repurchase program (the "Repurchase Program") with respect to the repurchase of our 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.

As of March 31, 2024, the total stock repurchase authorization under our equity repurchase program (the “Repurchase Program”) was $11,725 million.

The Repurchase Program does not obligate us 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, 2023, we repurchased 3.9 million shares of our common stock for $763 million under the Repurchase Program.

As of September 30, 2023, we had remaining authorization to repurchase up to $2,592 million of our common stock under the Repurchase Program.

During the three months ended March 31, 2024, we did not repurchase any shares of our common stock under the Repurchase Program.

As of March 31, 2024, we had remaining authorization to repurchase up to $2,363 million of our common stock under the Repurchase Program.

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

As of September 30, 2023, we had $13,689 million of total indebtedness, excluding $1,745 million of additional available borrowings under our revolving credit facility.

Our long-term debt arrangements contain customary restrictive covenants and, as of September 30, 2023, we believe we were in compliance with our restrictive covenants in all material respects.

As of March 31, 2024, we had $13,611 million of total indebtedness, excluding $1,895 million of additional available borrowings under our revolving credit facility.

Our long-term debt arrangements contain customary restrictive covenants and, as of March 31, 2024, we believe we were in compliance with our restrictive covenants in all material respects.

Senior Secured Credit Facilities

As of September 30, 2023, our Fifth Amended and Restated Credit Agreement provided financing through the senior secured credit facilities of up to $7,998 million, which consisted of $6,248 million principal amounts of debt outstanding, and $1,745 million of available borrowing capacity on the revolving credit facility and standby letters of credit.

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

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

On May 23, 2023, we completed the issuance and sale of $750 million in gross proceeds of 5.700% senior secured notes due 2028 (the “Senior Secured Notes”) and $500 million in gross proceeds of 6.500% senior notes due 2030 (the “Senior Notes” and, together with the Senior Secured Notes, the “Notes”).

The net proceeds from the notes offering were used to repay existing borrowings under our revolving credit facility and to pay fees and expenses related to the Notes offering.

As of March 31, 2024, our Fifth Amended and Restated Credit Agreement provided financing through the senior secured credit facilities of up to $6,743 million, which consisted of $4,848 million principal amounts of debt outstanding, and $1,895 million of available borrowing capacity on the revolving credit facility and standby letters of credit.

See Note 7 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional details regarding our credit arrangements.

Receivables Financing Facility

As of September 30, 2023, no additional amounts of revolving loan commitments were available under the receivables financing facility.

Nine months ended September 30, 2023 and 2022

As of March 31, 2024, no additional amounts of revolving loan commitments were available under the receivables financing facility.

Three months ended March 31, 2024 and 2023

Cash Flow from Operating Activities

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions) 2024 2023

Net cash provided by operating activities $ 522 $ 417

Cash provided by operating activities decreased $298 million during the first nine months of 2023 as compared to the same period in 2022.

The decrease was due to a decrease in cash from other operating assets and liabilities ($121 million), unearned income ($95 million), accounts receivable and unbilled services ($58 million) and from cash-related net income ($24 million).

Cash provided by operating activities increased $105 million during the first three months of 2024 as compared to the same period in 2023.

The increase was due to an increase in cash from unearned income ($116 million) and accounts receivable and unbilled services ($56 million), offset by a decrease in cash from cash-related net income ($54 million) and other operating assets and liabilities ($13 million).

Cash Flow from Investing Activities

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions) 2024 2023

Net cash used in investing activities $ (314) $ (222)

Cash used in investing activities decreased $138 million during the first nine months of 2023 as compared to the same period in 2022, primarily driven by less cash used for acquisitions of businesses ($143 million) and acquisitions of property, equipment and software ($33 million), offset by more cash used in investments in debt and equity securities ($36 million) and investments in unconsolidated affiliates, net ($2 million).

Cash used in investing activities increased $92 million during the first three months of 2024 as compared to the same period in 2023, primarily driven by more cash used for acquisitions of businesses ($124 million) and investments in unconsolidated affiliates, net ($17 million) and less cash from other ($7 million), offset by less cash used for investments in debt and equity securities ($34 million), acquisitions of property, equipment and software ($19 million) and purchases of marketable securities, net ($3 million).

Cash Flow from Financing Activities

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions) 2024 2023

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

Cash provided by financing activities increased $174 million during the first nine months of 2023 as compared to the same period in 2022, primarily due to a decrease in cash used to repurchase common stock ($340 million) and cash payments related to employee stock option plans ($12 million), offset by an increase in cash payments on revolving credit facilities, net of proceeds ($75 million), contingent consideration and deferred purchase price accruals ($57 million), debt and principal payments on finance leases ($32 million) and debt issuance costs ($14 million).

Net cash (used in) provided by financing activities $ (106) $ 87

Cash used in financing activities increased $193 million during the first three months of 2024 as compared to the same period in 2023, primarily due to less cash from revolving credit facilities, net of repayments ($375 million), more cash payments on debt and principal payments on finance leases ($4 million) and cash payments related to employee stock incentive plans ($2 million), offset by less cash used to repurchase common stock ($129 million) and less cash payments for contingent consideration and deferred purchase price accruals ($59 million).

Information about our Guarantors and the Issuer of our Guaranteed Securities

(the “Issuer”), a wholly owned subsidiary of IQVIA Holdings Inc., completed the issuance and sale of $1,250 million in gross proceeds of the Issuer’s 6.250% senior secured notes due 2029 (the “2029 Senior Secured Notes”) on November 28, 2023, and completed the issuance and sale of $750 million in gross proceeds of the Issuer’s 5.700% senior secured notes due 2028 (the “2028 Senior Secured Notes”) on May 23, 2023.

In February 2024, the Issuer completed an exchange offer in which it issued $1,250 million aggregate principal amount of 6.250% Senior Secured Notes due 2029 registered under the Securities Act (the “2029 Registered Notes”) and $750 million aggregate principal amount of 5.700% Senior Secured Notes due 2028 registered under the Securities Act (the “2028 Registered Notes” and, together with the 2029 Registered Notes, the 2029 Senior Secured Notes, and the 2028 Senior Secured Notes, the “Notes”) in exchange for the same principal amount and substantially identical terms of the 2029 Senior Secured Notes and 2028 Senior Secured Notes, respectively.

The accompanying summarized financial information has been prepared and presented pursuant to Rule 3-10 of Regulation S-X, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered,” and Rule 13-01 of Regulation S-X, “Financial Disclosures about Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralized a Registrant’s Securities.” Each of our current direct and indirect material U.S.

wholly owned restricted subsidiaries (excluding IQVIA Solutions Japan LLC and IQVIA Services Japan LLC) (the "Guarantor subsidiaries" and, together with IQVIA Holdings Inc., the “Guarantors”), have jointly and severally, irrevocably and unconditionally, on a senior secured basis, guaranteed the obligations under the Notes.

The following presents the summarized financial information on a combined basis for IQVIA Holdings Inc.

(parent company), IQVIA Inc.

(issuer of the guaranteed obligations) and the Guarantor subsidiaries, which are collectively referred to as the “obligated group.”

Each Guarantor subsidiary is consolidated by IQVIA Holdings Inc.

as of March 31, 2024 and December 31, 2023.

Refer to Exhibit 22.1 to this Quarterly Report on Form 10-Q for the detailed list of entities included within the obligated group as of March 31, 2024.

The guarantee of a Guarantor subsidiary with respect to the Notes will be automatically and unconditionally released and discharged and shall terminate and be of no further force and effect, and no further action by such Guarantor subsidiary, the Issuer, or U.S.

Bank Trust Company, National Association, as trustee, be required upon the occurrence of any of the following:

any sale, exchange, issuance, disposition or transfer (by merger, amalgamation, consolidation or otherwise) of (i) the capital stock of such Guarantor, after which the applicable Guarantor is no longer a Restricted Subsidiary, or (ii) all or substantially all of the assets of such Guarantor, in each case if such sale, exchange, issuance, disposition or transfer is made in compliance with the applicable provisions of this Indenture;

the release or discharge of the guarantee by such Guarantor of indebtedness under the senior secured term loan facilities and the senior secured revolving credit facilities under that certain Fifth Amended and Restated Credit Agreement, or the release or discharge of such other guarantee that resulted in the creation of such Guarantee, except, in each case, a discharge or release by or as a result of payment of such Indebtedness or under such guarantee (it being understood that a release subject to a contingent reinstatement is still a release, and that if any such guarantee is so reinstated, such Guarantee shall also be reinstated to the extent that such Guarantor would then be required to provide a Guarantee pursuant to Section 4.11 of the Indenture);

the designation of any Restricted Subsidiary that is a Guarantor as an Unrestricted Subsidiary in compliance with the applicable provisions of the Indenture;

the exercise by the Issuer of its Legal Defeasance option or Covenant Defeasance option in accordance with Article VIII of the Indenture or the discharge of the Issuer’s obligations under the Indenture in accordance with the terms of this Indenture;

the merger, amalgamation or consolidation of any Guarantor with and into the Issuer or a Guarantor that is the surviving Person in such merger, amalgamation or consolidation, or upon the liquidation of a Guarantor following the transfer of all or substantially all of its assets, in each case in a transaction that complies with the applicable provisions of this Indenture;

as described in Article IX of the Indenture.

Summarized Combined Financial Information of the Issuer and Guarantors :

Each entity in the summarized combined financial information follows the same accounting policies as previously disclosed in Note 1 of the consolidated financial statements of our 2023 Form 10-K.

Information for the non-Guarantor subsidiaries has been excluded from the combined summarized financial information of the obligated group.

The accompanying summarized combined financial information does not reflect investments of the obligated group in non-Guarantor subsidiaries.

The financial information of the obligated group is presented on a combined basis;

intercompany balances and transactions within the obligated group have been eliminated.

The obligated group’s amounts due from and amounts due to non-Guarantor subsidiaries and related parties have been presented in separate line items.

The following table contains summarized combined financial information from the Statements of Unaudited Condensed Consolidated Financial Position of the obligated group as of:

(in millions) March 31, 2024 December 31, 2023

Total current assets (excluding amounts due from subsidiaries that are non-Guarantors) $ 666 $ 805

Total noncurrent assets $ 9,605 $ 9,622

Amounts due from subsidiaries that are non-Guarantors $ 4,774 $ 4,762

Total current liabilities $ 3,356 $ 3,471

Total noncurrent liabilities $ 12,178 $ 12,334

Amounts due to subsidiaries that are non-Guarantors $ 5,636 $ 5,556

The following table contains summarized combined financial information from the Statements of Unaudited Condensed Consolidated Operations of the obligated group:

Three months ended Twelve months ended

(in millions) March 31, 2024 December 31, 2023

Net revenues $ 1,211 $ 6,299

Costs and expenses applicable to net revenues $ 356 $ 4,190

Income from operations $ 577 $ 912

Net income $ 328 $ 86

Off-Balance Sheet Arrangements

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What changed 10-Q

Item 2. Management’s Discussion and Analysis