UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September~~June 30, ~~2021~~2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number: 001-35907

IQVIA HOLDINGS INC.

(Exact name of registrant as specified in its charter)

_________________________________________________________


Delaware						27-1341991
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

4820 Emperor Blvd., Durham, North Carolina 27703

(Address of principal executive office and Zip Code)

(919) 998-2000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of Each Exchange on which Registered

Common Stock, par value $0.01 per share

IQV

New York Stock Exchange

Indicate the number of shares outstanding of each of the issuer’s classes of Common Stock, as of the latest practicable date.

Class

Number of Shares Outstanding

Common Stock $0.01 par value

~~191,039,501~~186,507,930

shares outstanding

as of ~~October 20, 2021~~July 15, 2022

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IQVIA HOLDINGS INC.

FORM 10-Q

TABLE OF CONTENTS


		Page
PART I—FINANCIAL INFORMATION		3

Item 1.	Financial Statements (unaudited)	3

	Condensed Consolidated Statements of Income for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021	3

	Condensed Consolidated Statements of Comprehensive Income for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021	4

	Condensed Consolidated Balance Sheets as of ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021	5

	Condensed Consolidated Statements of Cash Flows for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021	6

	Condensed Consolidated Statements of Stockholders’ Equity for three and ~~nine~~six months ended ~~September~~June ~~30,~~3 0 , 2022 and 2021 ~~and 2020~~	7

	Notes to Condensed Consolidated Financial Statements	98

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3231

Item 4.	Controls and Procedures	32


PART II—OTHER INFORMATION		3433

Item 1.	Legal Proceedings	3433

Item 1A.	Risk Factors	3433

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3433

Item 6.	Exhibits	3635

SIGNATURES		3736

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PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

IQVIA HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended June 30,				Six Months Ended June 30,
(in millions, except per share data)	(in millions, except per share data)	2021		2020		2021		2020		(in millions, except per share data)	2022		2021		2022		2021
Revenues	Revenues	$	3,391	$	2,786	$	10,238	$	8,061	Revenues	$	3,541	$	3,438	$	7,109	$	6,847
Costs of revenue, exclusive of depreciation and amortization		2,253		1,800		6,869		5,328
Cost of revenues, exclusive of depreciation and amortization										Cost of revenues, exclusive of depreciation and amortization	2,331		2,323		4,654		4,616
Selling, general and administrative expenses	Selling, general and administrative expenses	498		460		1,422		1,298		Selling, general and administrative expenses	483		482		971		924
Depreciation and amortization	Depreciation and amortization	336		319		1,002		943		Depreciation and amortization	270		343		525		666
Restructuring costs	Restructuring costs	2		20		15		50		Restructuring costs	4		4		11		13
Income from operations	Income from operations	302		187		930		442		Income from operations	453		286		948		628
Interest income	Interest income	(2)		(1)		(4)		(4)		Interest income	(2)		(1)		(3)		(2)
Interest expense	Interest expense	92		100		285		314		Interest expense	94		94		180		193
Loss on extinguishment of debt	Loss on extinguishment of debt	1		—		25		12		Loss on extinguishment of debt	—		—		—		24
Other income, net		(62)		(14)		(128)		(59)
Income before income taxes and equity in earnings of unconsolidated affiliates		273		102		752		179
Income tax expense (benefit)		12		(3)		104		9
Income before equity in earnings of unconsolidated affiliates		261		105		648		170
Equity in earnings of unconsolidated affiliates		—		3		5		8
Other expense (income), net										Other expense (income), net	33		(29)		43		(66)
Income before income taxes and equity in (losses) earnings of unconsolidated affiliates										Income before income taxes and equity in (losses) earnings of unconsolidated affiliates	328		222		728		479
Income tax expense										Income tax expense	71		48		142		92
Income before equity in (losses) earnings of unconsolidated affiliates										Income before equity in (losses) earnings of unconsolidated affiliates	257		174		586		387
Equity in (losses) earnings of unconsolidated affiliates										Equity in (losses) earnings of unconsolidated affiliates	(1)		1		(5)		5
Net income	Net income	261		108		653		178		Net income	256		175		581		392
Net income attributable to non-controlling interests	Net income attributable to non-controlling interests	—		(7)		(5)		(18)		Net income attributable to non-controlling interests	—		—		—		(5)
Net income attributable to IQVIA Holdings Inc.	Net income attributable to IQVIA Holdings Inc.	$	261	$	101	$	648	$	160	Net income attributable to IQVIA Holdings Inc.	$	256	$	175	$	581	$	387
Earnings per share attributable to common stockholders:	Earnings per share attributable to common stockholders:									Earnings per share attributable to common stockholders:
Basic	Basic	$	1.36	$	0.53	$	3.38	$	0.84	Basic	$	1.36	$	0.91	$	3.07	$	2.02
Diluted	Diluted	$	1.34	$	0.52	$	3.32	$	0.82	Diluted	$	1.34	$	0.90	$	3.02	$	1.99
Weighted average common shares outstanding:	Weighted average common shares outstanding:									Weighted average common shares outstanding:
Basic	Basic	191.5		191.3		191.5		191.3		Basic	188.3		191.6		189.2		191.6
Diluted	Diluted	195.3		194.9		195.0		194.9		Diluted	191.1		194.9		192.2		194.9

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

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IQVIA HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)
Three Months Ended
September 30, Nine Months Ended
September 30,
(in millions) 2021 2020 2021 2020
Net income $ 261 $ 108 $ 653 $ 178
Comprehensive income adjustments:
Unrealized (losses) gains on derivative instruments, net of income tax expense (benefit) of $—, $(8), $—, $(11) (4) (1) — (33)
Foreign currency translation, net of income tax (benefit) expense of $28, $(54), $66, $(83) (117) 130 (237) 20
Reclassification adjustments:
Losses on derivative instruments included in net income, net of income tax benefit of $1, $1, $2, $2 3 2 7 6
Comprehensive income 143 239 423 171
Comprehensive income attributable to non-controlling interests — (11) (5) (17)
Comprehensive income attributable to IQVIA Holdings Inc. $ 143 $ 228 $ 418 $ 154


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2022		2021		2022		2021
Net income	$	256	$	175	$	581	$	392
Comprehensive income adjustments:
Unrealized (losses) gains on derivative instruments, net of income tax (benefit) expense of $(1), $(1), $8, $—	(7)		(2)		23		4
Defined benefit plan adjustments, net of income tax (benefit) expense of $—, $—, $—, $—	(4)		—		(6)		—
Foreign currency translation, net of income tax expense (benefit) of $84, $(23), $111, $39	(281)		58		(321)		(120)
Reclassification adjustments:
Reclassifications on derivative instruments included in net income, net of income tax benefit of $4, $—, $4, $1	14		3		13		4
Comprehensive (loss) income	(22)		234		290		280
Comprehensive income attributable to non-controlling interests	—		—		—		(5)
Comprehensive (loss) income attributable to IQVIA Holdings Inc.	$	(22)	$	234	$	290	$	275

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

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IQVIA HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)


(in millions, except per share data)	(in millions, except per share data)	September 30, 2021		December 31, 2020		(in millions, except per share data)	June 30, 2022		December 31, 2021
ASSETS	ASSETS					ASSETS
Current assets:	Current assets:					Current assets:
Cash and cash equivalents	Cash and cash equivalents	$	1,470	$	1,814	Cash and cash equivalents	$	1,428	$	1,366
Trade accounts receivable and unbilled services, net	Trade accounts receivable and unbilled services, net	2,330		2,410		Trade accounts receivable and unbilled services, net	2,679		2,551
Prepaid expenses	Prepaid expenses	164		159		Prepaid expenses	188		156
Income taxes receivable	Income taxes receivable	56		56		Income taxes receivable	44		58
Investments in debt, equity and other securities	Investments in debt, equity and other securities	104		88		Investments in debt, equity and other securities	90		111
Other current assets and receivables	Other current assets and receivables	410		563		Other current assets and receivables	482		521
Total current assets	Total current assets	4,534		5,090		Total current assets	4,911		4,763
Property and equipment, net	Property and equipment, net	485		482		Property and equipment, net	529		497
Operating lease right-of-use assets	Operating lease right-of-use assets	404		471		Operating lease right-of-use assets	370		406
Investments in debt, equity and other securities	Investments in debt, equity and other securities	74		78		Investments in debt, equity and other securities	67		76
Investments in unconsolidated affiliates	Investments in unconsolidated affiliates	84		84		Investments in unconsolidated affiliates	92		88
Goodwill	Goodwill	13,124		12,654		Goodwill	13,104		13,301
Other identifiable intangibles, net	Other identifiable intangibles, net	4,812		5,205		Other identifiable intangibles, net	4,733		4,943
Deferred income taxes	Deferred income taxes	105		114		Deferred income taxes	120		124
Deposits and other assets	Deposits and other assets	411		386		Deposits and other assets	487		491
Total assets	Total assets	$	24,033	$	24,564	Total assets	$	24,413	$	24,689
LIABILITIES AND STOCKHOLDERS’ EQUITY	LIABILITIES AND STOCKHOLDERS’ EQUITY					LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:	Current liabilities:					Current liabilities:
Accounts payable and accrued expenses	Accounts payable and accrued expenses	$	2,663	$	2,813	Accounts payable and accrued expenses	$	2,847	$	2,981
Unearned income	Unearned income	1,826		1,252		Unearned income	1,810		1,825
Income taxes payable	Income taxes payable	53		102		Income taxes payable	118		137
Current portion of long-term debt	Current portion of long-term debt	91		149		Current portion of long-term debt	152		91
Other current liabilities	Other current liabilities	214		242		Other current liabilities	177		207
Total current liabilities	Total current liabilities	4,847		4,558		Total current liabilities	5,104		5,241
Long-term debt, less current portion	Long-term debt, less current portion	12,081		12,384		Long-term debt, less current portion	12,615		12,034
Deferred income taxes	Deferred income taxes	297		338		Deferred income taxes	494		410
Operating lease liabilities	Operating lease liabilities	323		371		Operating lease liabilities	285		313
Other liabilities	Other liabilities	656		633		Other liabilities	563		649
Total liabilities	Total liabilities	18,204		18,284		Total liabilities	19,061		18,647
Commitments and contingencies (Note 8)	Commitments and contingencies (Note 8)	0		0		Commitments and contingencies (Note 8)	0		0
Stockholders’ equity:	Stockholders’ equity:					Stockholders’ equity:
Common stock and additional paid-in capital, 400.0 shares authorized as of September 30, 2021 and December 31, 2020, $0.01 par value, 255.6 shares issued and 191.1 shares outstanding as of September 30, 2021; 254.7 shares issued and 191.2 shares outstanding as of December 31, 2020		10,747		11,095
Common stock and additional paid-in capital, 400.0 shares authorized as of June 30, 2022 and December 31, 2021, $0.01 par value, 256.3 shares issued and 186.6 shares outstanding as of June 30, 2022; 255.8 shares issued and 190.6 shares outstanding as of December 31, 2021						Common stock and additional paid-in capital, 400.0 shares authorized as of June 30, 2022 and December 31, 2021, $0.01 par value, 256.3 shares issued and 186.6 shares outstanding as of June 30, 2022; 255.8 shares issued and 190.6 shares outstanding as of December 31, 2021	10,790		10,777
Retained earnings	Retained earnings	1,925		1,277		Retained earnings	2,824		2,243
Treasury stock, at cost, 64.5 and 63.5 shares as of September 30, 2021 and December 31, 2020, respectively		(6,398)		(6,166)
Treasury stock, at cost, 69.7 and 65.2 shares as of June 30, 2022 and December 31, 2021, respectively						Treasury stock, at cost, 69.7 and 65.2 shares as of June 30, 2022 and December 31, 2021, respectively	(7,565)		(6,572)
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(445)		(205)		Accumulated other comprehensive loss	(697)		(406)
Equity attributable to IQVIA Holdings Inc.’s stockholders		5,829		6,001
Non-controlling interests		—		279
Total stockholders’ equity	Total stockholders’ equity	5,829		6,280		Total stockholders’ equity	5,352		6,042
Total liabilities and stockholders’ equity	Total liabilities and stockholders’ equity	$	24,033	$	24,564	Total liabilities and stockholders’ equity	$	24,413	$	24,689

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

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IQVIA HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


		Nine Months Ended September 30,					Six Months Ended June 30,
(in millions)	(in millions)	2021		2020		(in millions)	2022		2021
Operating activities:	Operating activities:					Operating activities:
Net income	Net income	$	653	$	178	Net income	$	581	$	392
Adjustments to reconcile net income to cash provided by operating activities:	Adjustments to reconcile net income to cash provided by operating activities:					Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	Depreciation and amortization	1,002		943		Depreciation and amortization	525		666
Amortization of debt issuance costs and discount	Amortization of debt issuance costs and discount	14		13		Amortization of debt issuance costs and discount	7		10
Stock-based compensation	Stock-based compensation	128		69		Stock-based compensation	75		80
Earnings from unconsolidated affiliates		(5)		(8)
Gain on investments, net		(9)		(17)
Losses (earnings) from unconsolidated affiliates						Losses (earnings) from unconsolidated affiliates	5		(5)
Loss (gain) on investments, net						Loss (gain) on investments, net	29		(9)
Benefit from deferred income taxes	Benefit from deferred income taxes	(83)		(160)		Benefit from deferred income taxes	(28)		(43)
Changes in operating assets and liabilities:	Changes in operating assets and liabilities:					Changes in operating assets and liabilities:
Change in accounts receivable, unbilled services and unearned income	Change in accounts receivable, unbilled services and unearned income	663		328		Change in accounts receivable, unbilled services and unearned income	(143)		481
Change in other operating assets and liabilities	Change in other operating assets and liabilities	(113)		(137)		Change in other operating assets and liabilities	(214)		(166)
Net cash provided by operating activities	Net cash provided by operating activities	2,250		1,209		Net cash provided by operating activities	837		1,406
Investing activities:	Investing activities:					Investing activities:
Acquisition of property, equipment and software	Acquisition of property, equipment and software	(456)		(440)		Acquisition of property, equipment and software	(338)		(294)
Acquisition of businesses, net of cash acquired	Acquisition of businesses, net of cash acquired	(994)		(118)		Acquisition of businesses, net of cash acquired	(464)		(65)
Purchases of marketable securities, net	Purchases of marketable securities, net	(9)		(8)		Purchases of marketable securities, net	(3)		(8)
Investments in unconsolidated affiliates, net of payments received	Investments in unconsolidated affiliates, net of payments received	(3)		8		Investments in unconsolidated affiliates, net of payments received	(10)		(3)
Proceeds from sale of (investments in) equity securities		5		(2)
Proceeds from sale of equity securities						Proceeds from sale of equity securities	—		9
Other	Other	1		—		Other	3		—
Net cash used in investing activities	Net cash used in investing activities	(1,456)		(560)		Net cash used in investing activities	(812)		(361)
Financing activities:	Financing activities:					Financing activities:
Proceeds from issuance of debt	Proceeds from issuance of debt	1,951		1,591		Proceeds from issuance of debt	1,250		1,751
Payment of debt issuance costs	Payment of debt issuance costs	(40)		(33)		Payment of debt issuance costs	(5)		(32)
Repayment of debt and principal payments on finance leases	Repayment of debt and principal payments on finance leases	(2,068)		(792)		Repayment of debt and principal payments on finance leases	(47)		(1,794)
Proceeds from revolving credit facility	Proceeds from revolving credit facility	410		1,250		Proceeds from revolving credit facility	1,150		—
Repayment of revolving credit facility	Repayment of revolving credit facility	(300)		(1,610)		Repayment of revolving credit facility	(1,250)		—
(Payments) related to employee stock option plans		(51)		(43)
Payments related to employee stock option plans						Payments related to employee stock option plans	(69)		(55)
Repurchase of common stock	Repurchase of common stock	(202)		(346)		Repurchase of common stock	(893)		(107)
Distributions to non-controlling interest, net		—		(16)

Acquisition of Quest's non-controlling interest	Acquisition of Quest's non-controlling interest	(758)		—		Acquisition of Quest's non-controlling interest	—		(756)
Contingent consideration and deferred purchase price payments	Contingent consideration and deferred purchase price payments	(39)		(20)		Contingent consideration and deferred purchase price payments	(21)		(38)
Net cash used in financing activities		(1,097)		(19)
Net cash provided by (used in) financing activities						Net cash provided by (used in) financing activities	115		(1,031)
Effect of foreign currency exchange rate changes on cash	Effect of foreign currency exchange rate changes on cash	(41)		(3)		Effect of foreign currency exchange rate changes on cash	(78)		(21)
(Decrease) increase in cash and cash equivalents		(344)		627
Increase (decrease) in cash and cash equivalents						Increase (decrease) in cash and cash equivalents	62		(7)
Cash and cash equivalents at beginning of period	Cash and cash equivalents at beginning of period	1,814		837		Cash and cash equivalents at beginning of period	1,366		1,814
Cash and cash equivalents at end of period	Cash and cash equivalents at end of period	$	1,470	$	1,464	Cash and cash equivalents at end of period	$	1,428	$	1,807

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

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IQVIA HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(unaudited)


(in millions)	(in millions)	Common Stock Shares	Treasury Stock Shares	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive (Loss) Income		Non- controlling Interests		Total		(in millions)	Common Stock Shares	Treasury Stock Shares	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive (Loss) Income		Non- controlling Interests		Total
Balance, December 31, 2020		254.7	(63.5)	$	3	$	11,092	$	1,277	$	(6,166)	$	(205)	$	279	$	6,280
Balance, December 31, 2021																		Balance, December 31, 2021	255.8	(65.2)	$	3	$	10,774	$	2,243	$	(6,572)	$	(406)	$	—	$	6,042
Issuance of common stock	Issuance of common stock	0.7	—	—		(57)		—		—		—		—		(57)		Issuance of common stock	0.4	—	—		(67)		—		—		—		—		(67)
Repurchase of common stock	Repurchase of common stock	—	(0.3)	—		—		—		(62)		—		—		(62)		Repurchase of common stock	—	(1.7)	—		—		—		(403)		—		—		(403)
Stock-based compensation	Stock-based compensation	—	—	—		30		—		—		—		—		30		Stock-based compensation	—	—	—		35		—		—		—		—		35
Net income	Net income	—	—	—		—		212		—		—		5		217		Net income	—	—	—		—		325		—		—		—		325
Unrealized gains on derivative instruments, net of tax	Unrealized gains on derivative instruments, net of tax	—	—	—		—		—		—		6		—		6		Unrealized gains on derivative instruments, net of tax	—	—	—		—		—		—		30		—		30
Defined benefit plan adjustments, net of tax																		Defined benefit plan adjustments, net of tax	—	—	—		—		—		—		(2)		—		(2)
Foreign currency translation, net of tax	Foreign currency translation, net of tax	—	—	—		—		—		—		(178)		—		(178)		Foreign currency translation, net of tax	—	—	—		—		—		—		(40)		—		(40)
Reclassification adjustments, net of tax	Reclassification adjustments, net of tax	—	—	—		—		—		—		1		—		1		Reclassification adjustments, net of tax	—	—	—		—		—		—		(1)		—		(1)
Balance, March 31, 2021		255.4	(63.8)	$	3	$	11,065	$	1,489	$	(6,228)	$	(376)	$	284	$	6,237
Balance, March 31, 2022																		Balance, March 31, 2022	256.2	(66.9)	3		10,742		2,568		(6,975)		(419)		—		5,919
Issuance of common stock	Issuance of common stock	0.2	—	—		1		—		—		—		—		1		Issuance of common stock	0.1	—	—		(2)		—		—		—		—		(2)
Repurchase of common stock	Repurchase of common stock	—	(0.2)	—		—		—		(45)		—		—		(45)		Repurchase of common stock	—	(2.8)	—		—		—		(590)		—		—		(590)
Stock-based compensation	Stock-based compensation	—	—	—		42		—		—		—		—		42		Stock-based compensation	—	—	—		47		—		—		—		—		47
Acquisition of Quest's non-controlling interest, net of tax		—	—	—		(415)		—		—		(10)		(284)		(709)
Net income	Net income	—	—	—		—		175		—		—		—		175		Net income	—	—	—		—		256		—		—		—		256
Unrealized losses on derivative instruments, net of tax	Unrealized losses on derivative instruments, net of tax	—	—	—		—		—		—		(2)		—		(2)		Unrealized losses on derivative instruments, net of tax	—	—	—		—		—		—		(7)		—		(7)
Defined benefit plan adjustments, net of tax																		Defined benefit plan adjustments, net of tax	—	—	—		—		—		—		(4)		—		(4)
Foreign currency translation, net of tax	Foreign currency translation, net of tax	—	—	—		—		—		—		58		—		58		Foreign currency translation, net of tax	—	—	—		—		—		—		(281)		—		(281)
Reclassification adjustments, net of tax	Reclassification adjustments, net of tax	—	—	—		—		—		—		3		—		3		Reclassification adjustments, net of tax	—	—	—		—		—		—		14		—		14
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
Balance, June 30, 2022																		Balance, June 30, 2022	256.3	(69.7)	$	3	$	10,787	$	2,824	$	(7,565)	$	(697)	$	—	$	5,352


(in millions)	Common Stock Shares	Treasury Stock Shares	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive (Loss) Income		Non- controlling Interests		Total
Balance, December 31, 2020	254.7	(63.5)	$	3	$	11,092	$	1,277	$	(6,166)	$	(205)	$	279	$	6,280
Issuance of common stock	0.7	—	—		(57)		—		—		—		—		(57)
Repurchase of common stock	—	(0.3)	—		—		—		(62)		—		—		(62)
Stock-based compensation	—	—	—		30		—		—		—		—		30
Net income	—	—	—		—		212		—		—		5		217
Unrealized gains on derivative instruments, net of tax	—	—	—		—		—		—		6		—		6
Foreign currency translation, net of tax	—	—	—		—		—		—		(178)		—		(178)
Reclassification adjustments, net of tax	—	—	—		—		—		—		1		—		1
Balance, March 31, 2021	255.4	(63.8)	3		11,065		1,489		(6,228)		(376)		284		6,237
Issuance of common stock	0.2	—	—		1		—		—		—		—		1
Repurchase of common stock	—	(0.2)	—		—		—		(45)		—		—		(45)
Stock-based compensation	—	—	—		42		—		—		—		—		42
Acquisition of Quest's non-controlling interest, net of tax	—	—	—		(415)		—		—		(10)		(284)		(709)
Net income	—	—	—		—		175		—		—		—		175
Unrealized losses on derivative instruments, net of tax	—	—	—		—		—		—		(2)		—		(2)
Foreign currency translation, net of tax	—	—	—		—		—		—		58		—		58
Reclassification adjustments, net of tax	—	—	—		—		—		—		3		—		3
Balance, June 30, 2021	255.6	(64)	$	3	$	10,693	$	1,664	$	(6,273)	$	(327)	$	—	$	5,760

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~~IQVIA HOLDINGS INC. AND SUBSIDIARIES~~

~~CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY~~

~~(unaudited)~~

(in millions) Common Stock Shares Treasury
Stock
Shares Common
Stock Additional
Paid-In
Capital Retained Earnings Treasury
Stock Accumulated
Other
Comprehensive
Income (Loss) Non-
controlling
Interests Total
Balance, December 31, 2019 253.0 (60.7) $ 3 $ 11,046 $ 998 $ (5,733) $ (311) $ 260 $ 6,263
Issuance of common stock 0.8 — — (44) — — — — (44)
Repurchase of common stock — (2.1) — — — (332) — — (332)
Stock-based compensation — — — 7 — — — — 7
Distributions to non-controlling interests, net — — — — — — — (5) (5)
Net income — — — — 82 — — 9 91
Unrealized losses on derivative instruments, net of tax — — — — — — (39) — (39)
Foreign currency translation, net of tax — — — — — — (151) (4) (155)
Reclassification adjustments, net of tax — — — — — — 16 — 16
Balance, March 31, 2020 253.8 (62.8) $ 3 $ 11,009 $ 1,080 $ (6,065) $ (485) $ 260 $ 5,802
Issuance of common stock 0.3 — — 1 — — — — 1
Repurchase of common stock — — — — — — — — —
Stock-based compensation — — — 30 — — — — 30
Net income — — — — (23) — — 2 (21)
Unrealized gains on derivative instruments, net of tax — — — — — — 7 — 7
Foreign currency translation, net of tax — — — — — — 46 (1) 45
Reclassification adjustments, net of tax — — — — — — (12) — (12)
Balance, June 30, 2020 254.1 (62.8) $ 3 $ 11,040 $ 1,057 $ (6,065) $ (444) $ 261 $ 5,852
Issuance of common stock 0.4 — — (3) — — — — (3)
Stock-based compensation — — — 30 — — — — 30
Distributions to non-controlling interest, net — — — — — — — (11) (11)
Net income — — — — 101 — — 7 108
Unrealized losses on derivative instruments, net of tax — — — — — — (1) — (1)
Foreign currency translation, net of tax — — — — — — 126 4 130
Reclassification adjustments, net of tax — — — — — — 2 — 2
Balance, September 30, 2020 254.5 (62.8) $ 3 $ 11,067 $ 1,158 $ (6,065) $ (317) $ 261 $ 6,107
The accompanying notes are an integral part of these condensed consolidated financial statements.

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IQVIA HOLDINGS INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(unaudited)

1. Summary of Significant Accounting Policies

The Company

IQVIA Holdings Inc. (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 ~~77,000~~83,000 employees, IQVIA conducts business in more than 100 countries.

Unaudited Interim Financial Information

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the Company’s financial condition and results of operations have been included. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, ~~2021.~~2022. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, ~~2020.~~2021. The balance sheet as of December 31, ~~2020~~2021 has been derived from the audited consolidated financial statements of the Company, but does not include all the disclosures required by GAAP.

Recently Issued Accounting Standards

Accounting pronouncements adopted

In ~~March 2020,~~October 2021, the Financial Accounting Standards Board ~~("FASB")~~ issued new accounting guidance that ~~provides optional expedients~~requires contract assets and ~~exceptions for applying GAAP to~~ contract ~~modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another rate that is expected~~liabilities (i.e., deferred revenue) acquired in a business combination to be ~~discontinued. The~~recognized and measured by the acquirer on the acquisition date in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. Under current GAAP, an acquirer generally recognizes 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 ~~accounting~~ guidance ~~became effective for~~will result in the ~~Company as of March 12, 2020 through December 31, 2022.~~acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. The Company adopted this new accounting guidance oneffective January 1, ~~2021.~~2022. The adoption of this new accounting guidance did not have a material ~~effect~~impact on the ~~Company’s~~Company's consolidated financial ~~statements.~~

~~In January 2020,~~statements for the ~~FASB issued new accounting guidance that states any equity security transitioning from the alternative method~~three and six months ended June 30, 2022. The impact of accounting to the equity method, or vice versa, due to an observable transaction, will be remeasured immediately before the transition. In addition, the new accounting guidance clarifies the accounting for certain non-derivative forward contracts or purchased call options to acquire equity securities stating such instruments will be measured using the fair value principles before settlement or exercise. The Company adopted this ~~new accounting~~ guidance on ~~January 1, 2021. The adoption~~the Company's consolidated financial statements for the remainder of ~~this new accounting guidance did not have a material effect~~the year will depend on the ~~Company’s consolidated financial statements.~~

~~In December 2019, the FASB issued new accounting guidance to clarify~~size and simplify the accounting for income taxes. Changes under the new guidance includes eliminating certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognitionnature of deferred tax liabilities for outside basis differences. The Company adopted this new accounting guidance on January 1, 2021. The adoption of this new accounting guidance did not have a material effect on the Company’s consolidated financial statements.

future acquisitions, if any.

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2. 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~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020:~~2021:


		Three Months Ended September 30, 2021										Three Months Ended June 30, 2022
(in millions)	(in millions)		Technology & Analytics Solutions		Research & Development Solutions		Contract Sales & Medical Solutions		Total		(in millions)		Technology & Analytics Solutions		Research & Development Solutions		Contract Sales & Medical Solutions		Total
Revenues:	Revenues:										Revenues:
Americas	Americas		$	647	$	942	$	94	$	1,683	Americas		$	716	$	866	$	88	$	1,670
Europe and Africa	Europe and Africa		529		448		42		1,019		Europe and Africa		540		532		43		1,115
Asia-Pacific	Asia-Pacific		161		463		65		689		Asia-Pacific		152		552		52		756
Total revenues	Total revenues		$	1,337	$	1,853	$	201	$	3,391	Total revenues		$	1,408	$	1,950	$	183	$	3,541


		Three Months Ended September 30, 2020										Three Months Ended June 30, 2021
(in millions)	(in millions)		Technology & Analytics Solutions		Research & Development Solutions		Contract Sales & Medical Solutions		Total		(in millions)		Technology & Analytics Solutions		Research & Development Solutions		Contract Sales & Medical Solutions		Total
Revenues:	Revenues:										Revenues:
Americas	Americas		$	599	$	628	$	76	$	1,303	Americas		$	635	$	935	$	86	$	1,656
Europe and Africa	Europe and Africa		457		411		44		912		Europe and Africa		565		507		42		1,114
Asia-Pacific	Asia-Pacific		151		361		59		571		Asia-Pacific		153		449		66		668
Total revenues	Total revenues		$	1,207	$	1,400	$	179	$	2,786	Total revenues		$	1,353	$	1,891	$	194	$	3,438


		Nine Months Ended September 30, 2021										Six Months Ended June 30, 2022
(in millions)	(in millions)		Technology & Analytics Solutions		Research & Development Solutions		Contract Sales & Medical Solutions		Total		(in millions)		Technology & Analytics Solutions		Research & Development Solutions		Contract Sales & Medical Solutions		Total
Revenues:	Revenues:										Revenues:
Americas	Americas		$	1,882	$	2,911	$	258	$	5,051	Americas		$	1,397	$	1,812	$	179	$	3,388
Europe and Africa	Europe and Africa		1,684		1,398		133		3,215		Europe and Africa		1,136		1,039		89		2,264
Asia-Pacific	Asia-Pacific		472		1,303		197		1,972		Asia-Pacific		314		1,033		110		1,457
Total revenues	Total revenues		$	4,038	$	5,612	$	588	$	10,238	Total revenues		$	2,847	$	3,884	$	378	$	7,109

Nine Months Ended September 30, 2020
(in millions) Technology &
Analytics Solutions Research &
Development Solutions Contract Sales &
Medical Solutions Total
Revenues:
Americas $ 1,747 $ 1,826 $ 247 $ 3,820
Europe and Africa 1,254 1,214 134 2,602
Asia-Pacific 432 1,036 171 1,639
Total revenues $ 3,433 $ 4,076 $ 552 $ 8,061



	Six Months Ended June 30, 2021
(in millions)		Technology & Analytics Solutions		Research & Development Solutions		Contract Sales & Medical Solutions		Total
Revenues:
Americas		$	1,235	$	1,969	$	164	$	3,368
Europe and Africa		1,155		950		91		2,196
Asia-Pacific		311		840		132		1,283
Total revenues		$	2,701	$	3,759	$	387	$	6,847

No individual customer ~~accounted for~~represented 10% or more of consolidated revenues for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 or ~~2020.~~2021.

Transaction Price Allocated to the Remaining Performance Obligations

As of ~~September~~June 30, ~~2021,~~2022, approximately ~~$25.5~~$28.7 billion of revenue is expected to be recognized in the future from remaining performance obligations. The Company expects to recognize revenue on approximately ~~35%~~30% of these remaining performance obligations over the next 12twelve months, with the balance recognized thereafter. The customer contract transaction price allocated to the remaining performance obligations differs from backlog in that it does not include wholly unperformed contracts under which the customer has a unilateral right to cancel the arrangement.

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3. Trade Accounts Receivable, Unbilled Services and Unearned Income

Trade accounts receivables and unbilled services consist of the following:


(in millions)	(in millions)	September 30, 2021		December 31, 2020		(in millions)	June 30, 2022		December 31, 2021
Trade accounts receivable:
Billed	Billed	$	1,141	$	1,181	Billed	$	1,261	$	1,275
Unbilled services	Unbilled services	1,219		1,263		Unbilled services	1,446		1,309
Trade accounts receivable and unbilled services	Trade accounts receivable and unbilled services	2,360		2,444		Trade accounts receivable and unbilled services	2,707		2,584
Allowance for doubtful accounts	Allowance for doubtful accounts	(30)		(34)		Allowance for doubtful accounts	(28)		(33)
Trade accounts receivable and unbilled services, net	Trade accounts receivable and unbilled services, net	$	2,330	$	2,410	Trade accounts receivable and unbilled services, net	$	2,679	$	2,551

Unbilled services and unearned income were as follows:


(in millions, except percentages)		September 30, 2021		December 31, 2020		Change
(in millions)								(in millions)	June 30, 2022		December 31, 2021		Change
Unbilled services	Unbilled services	$	1,219	$	1,263	$	(44)	Unbilled services	$	1,446	$	1,309	$	137
Unearned income	Unearned income	(1,826)		(1,252)		(574)		Unearned income	(1,810)		(1,825)		15
Net balance	Net balance	$	(607)	$	11	$	(618)	Net balance	$	(364)	$	(516)	$	152

Unbilled services, which is comprised of approximately ~~63%~~61% and 62% of unbilled receivables and ~~37%~~39% and 38% of contract assets as of ~~September~~June 30, 2022 and December 31, 2021, ~~decreased~~respectively, increased by ~~$44~~$137 million as compared to December 31, ~~2020.~~2021. Contract assets are unbilled services for which invoicing is based on the timing of certain milestones related to service contracts for clinical research whereas unbilled receivables are billable upon the passage of time. Unearned income ~~increased~~decreased by ~~$574~~$15 million over the same period resulting in ~~a decrease~~an increase of ~~$618~~$152 million in the net balance of unbilled services and unearned income between December 31, ~~2020~~2021 and ~~September~~June 30, ~~2021.~~2022. The change in the net balance is driven by the difference in timing of revenue recognition in accordance with ~~Accounting Standards Codification ("ASC")~~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 ~~not material~~de minimis for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020.~~2021.

4. Goodwill

The following is a summary of goodwill by reportable segment for the ~~nine~~six months ended ~~September~~June 30, ~~2021:~~2022:

(in millions) Technology & Analytics Solutions Research & Development Solutions Contract Sales & Medical Solutions Consolidated
Balance as of December 31, 2020 $ 10,864 $ 1,646 $ 144 $ 12,654
Business combinations 587 160 25 772
Impact of foreign currency fluctuations and other (293) (4) (5) (302)
Balance as of September 30, 2021 $ 11,158 $ 1,802 $ 164 $ 13,124


(in millions)	Technology & Analytics Solutions		Research & Development Solutions		Contract Sales & Medical Solutions		Consolidated
Balance as of December 31, 2021	$	11,337	$	1,802	$	162	$	13,301
Business combinations	72		237		—		309
Impact of foreign currency fluctuations and other	(471)		(25)		(10)		(506)
Balance as of June 30, 2022	$	10,938	$	2,014	$	152	$	13,104

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5. Derivatives

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)	(in millions)	Balance Sheet Classification		September 30, 2021									December 31, 2020								(in millions)		Balance Sheet Classification		June 30, 2022						December 31, 2021
			Assets			Liabilities			Notional			Assets			Liabilities			Notional				Assets			Liabilities		Notional		Assets		Liabilities		Notional
Derivatives designated as hedging instruments:	Derivatives designated as hedging instruments:																							Derivatives designated as hedging instruments:
Foreign exchange forward contracts	Foreign exchange forward contracts	Other current assets and liabilities		$	—		$	4		$	109		$	5		$	—		$	70	Foreign exchange forward contracts		Other current assets and liabilities		$	—	$	10	$	122	$	—	$	3	$	110
Interest rate swaps	Interest rate swaps	Other assets and liabilities		—			38			1,800			—			55			1,800		Interest rate swaps		Other current assets, other assets and liabilities		35		—		1,800		4		24		1,800
Derivatives not designated as hedging instruments:

Interest rate swaps		Other liabilities		—			—			—			—			1			356

Total derivatives	Total derivatives			$	—		$	42					$	5		$	56				Total derivatives				$	35	$	10			$	4	$	27

The pre-tax effect of the Company’s cash flow hedging instruments on other comprehensive income is summarized in the following table:
Three Months Ended September 30, Nine Months Ended September 30,
(in millions) 2021 2020 2021 2020
Foreign exchange forward contracts $ (5) $ 2 $ (9) $ (4)
Interest rate derivatives 4 1 17 (32)
Total $ (1) $ 3 $ 8 $ (36)


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2022		2021		2022		2021
Foreign exchange forward contracts	$	(5)	$	(2)	$	(7)	$	(4)
Interest rate swaps	15		3		55		13
Total	$	10	$	1	$	48	$	9

The amount of foreign exchange ~~losses~~gains related to the net investment hedge included in the cumulative translation adjustment component of accumulated other comprehensive ~~loss~~(loss) income (“AOCI”) for the ~~nine~~six months ended ~~September~~June 30, 2022 and 2021 was ~~$332 million.~~$466 million and $206 million, respectively.

6. Fair Value Measurements

The Company records certain assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy that prioritizes the inputs used to measure fair value is described below. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

•Level 1 — Quoted prices in active markets for identical assets or liabilities.

•Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

•Level 3 — Unobservable inputs that are supported by little or no market activity. 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~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021 due to their short-term nature. As of ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, the fair value of total debt approximated ~~$12,333~~$12,050 million and ~~$12,746~~$12,255 million, respectively, as determined under Level 1 and Level 2 measurements for these financial instruments.

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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~~June 30, ~~2021:~~
(in millions) Level 1 Level 2 Level 3 Total
Assets:
Marketable securities $ 137 $ — $ — $ 137
Total $ 137 $ — $ — $ 137��
Liabilities:
Derivatives $ — $ 42 $ — $ 42
Contingent consideration — — 96 96
Total $ — $ 42 $ 96 $ 138
2022:


(in millions)	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	117	$	—	$	—	$	117
Derivatives	—		35		—		35
Total	$	117	$	35	$	—	$	152
Liabilities:
Derivatives	$	—	$	10	$	—	$	10
Contingent consideration	—		—		76		76
Total	$	—	$	10	$	76	$	86

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

Marketable securities — The Company values trading and available-for-sale securities using the quoted market value of the securities held.

Derivatives — Derivatives consist of foreign exchange contracts and interest rate swaps. The fair value of foreign exchange contracts is based on observable market inputs of spot and forward rates or using other observable inputs. The fair value of the interest rate swaps is the estimated amount that the Company would receive or pay to terminate such agreements, taking into account market interest rates and the remaining time to maturities or using market inputs with mid-market pricing as a practical expedient for bid-ask spread.

Contingent consideration — The Company values contingent consideration related to business combinations using a weighted probability calculation of potential payment scenarios discounted at rates reflective of the risks associated with the expected future cash flows. 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~~June 30, ~~2021~~2022 the Company has accrued approximately ~~66%~~81% of the maximum contingent consideration payments that could potentially become payable.

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


		Contingent Consideration					Contingent Consideration
(in millions)	(in millions)	2021		2020		(in millions)	2022		2021
Balance as of January 1	Balance as of January 1	$	119	$	113	Balance as of January 1	$	76	$	119
Business combinations	Business combinations	39		32		Business combinations	23		23
Contingent consideration paid	Contingent consideration paid	(37)		(22)		Contingent consideration paid	(18)		(35)
Revaluations included in earnings and foreign currency translation adjustments	Revaluations included in earnings and foreign currency translation adjustments	(25)		(15)		Revaluations included in earnings and foreign currency translation adjustments	(5)		(21)
Balance as of September 30		$	96	$	108
Balance as of June 30						Balance as of June 30	$	76	$	86

The current portion of contingent consideration is included within accrued expenses and the long-term portion is included within other liabilities on the accompanying condensed consolidated balance sheets. Revaluations of ~~the~~ contingent consideration are recognized in other ~~income,~~expense (income), net on the accompanying condensed consolidated statements of income. A change in significant unobservable inputs ~~above~~ could result in a higher or lower fair value measurement of contingent consideration.

Non-recurring Fair Value Measurements

As of June 30, 2022, assets carried on the balance sheet and not remeasured to fair value on a recurring basis totaled approximately $17,969 million and were identified as Level 3. These assets are comprised of cost and equity method investments of $132 million, goodwill of $13,104 million and other identifiable intangibles, net of $4,733 million.

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7. Credit Arrangements

The following is a summary of the Company’s revolving credit facilities as of ~~September~~June 30, ~~2021:~~2022:


Facility						Interest Rates
$1,500 million (revolving credit facility)						LIBOR in the relevant currency borrowed plus a margin of 1.25% as of ~~September~~June 30, ~~2021~~2022
$110 million (receivables financing facility)						LIBOR Market Index Rate ~~(0.08%~~(1.79% as of ~~September~~June 30, ~~2021)~~2022) plus 0.90%
~~£10 million (approximately $14 million) (general banking facility)~~						~~Bank’s base rate of 0.10% as of September 30, 2021 plus 1%~~

The following table summarizes the Company’s debt at the dates indicated:
(in millions) September 30, 2021 December 31, 2020
Senior Secured Credit Facilities:
Term A Loan due 2023—U.S. Dollar $ — $ 728
Term A Loan due 2023—U.S. Dollar — 766
Term A Loan due 2026—U.S. Dollar LIBOR at average floating rates of 1.33% 1,433 —
Term A Loan due 2023—Euro — 400
Term A Loan due 2026—Euro LIBOR at average floating rates of 1.25% 363 —
Term B Loan due 2024—U.S. Dollar LIBOR at average floating rates of 1.85% 510 535
Term B Loan due 2024—Euro LIBOR at average floating rates of 2.00% 1,269 1,413
Term B Loan due 2025—U.S. Dollar LIBOR at average floating rates of 1.85% 670 726
Term B Loan due 2025—U.S. Dollar LIBOR at average floating rates of 1.90% 860 926
Term B Loan due 2025—Euro LIBOR at average floating rates of 2.00% 605 697
5.0% Senior Notes due 2027—U.S. Dollar denominated 1,100 1,100
5.0% Senior Notes due 2026—U.S. Dollar denominated 1,050 1,050
2.875% Senior Notes due 2025—Euro denominated 487 515
3.25% Senior Notes due 2025—Euro denominated — 1,748
2.25% Senior Notes due 2028—Euro denominated 834 883
2.875% Senior Notes due 2028—Euro denominated 824 872
1.750% Senior Notes due 2026—Euro denominated 637 —
2.250% Senior Notes due 2029—Euro denominated 1,043 —
Receivables financing facility due 2022—U.S. Dollar — 240
Receivables financing facility due 2024—U.S. Dollar LIBOR at average floating rates of 0.98% 550 —
Principal amount of debt 12,236 12,600
Less: unamortized discount and debt issuance costs (64) (67)
Less: current portion (91) (149)
Long-term debt $ 12,081 $ 12,384


(dollars in millions)	June 30, 2022		December 31, 2021
Revolving Credit Facility due 2026:
U.S. Dollar denominated borrowings—U.S. Dollar LIBOR at average floating rates of —%	$	—	$	100
Senior Secured Credit Facilities:
Term A Loan due 2026—U.S. Dollar LIBOR at average floating rates of 3.50%	1,379		1,415
Term A Loan due 2026—Euribor at average floating rates of 1.25%	314		351
Term A Loan due 2027—U.S. Dollar SOFR at average floating rates of 3.03%	1,250		—
Term B Loan due 2024—U.S. Dollar LIBOR at average floating rates of 3.42%	510		510
Term B Loan due 2024—Euribor at average floating rates of 2.00%	1,144		1,242
Term B Loan due 2025—U.S. Dollar LIBOR at average floating rates of 3.42%	670		670
Term B Loan due 2025—U.S. Dollar LIBOR at average floating rates of 4.00%	860		860
Term B Loan due 2025—Euribor at average floating rates of 2.00%	546		592
5.0% Senior Notes due 2027—U.S. Dollar denominated	1,100		1,100
5.0% Senior Notes due 2026—U.S. Dollar denominated	1,050		1,050
2.875% Senior Notes due 2025—Euro denominated	439		476

2.25% Senior Notes due 2028—Euro denominated	753		817
2.875% Senior Notes due 2028—Euro denominated	743		807
1.750% Senior Notes due 2026—Euro denominated	575		624
2.250% Senior Notes due 2029—Euro denominated	941		1,021
Receivables financing facility due 2024—U.S. Dollar LIBOR at average floating rates of 2.57%:
Revolving Loan Commitment	110		110
Term Loan	440		440
Principal amount of debt	12,824		12,185
Less: unamortized discount and debt issuance costs	(57)		(60)
Less: current portion	(152)		(91)
Long-term debt	$	12,615	$	12,034

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Contractual maturities of long-term debt are as follows as of ~~September~~June 30, ~~2021:~~2022:
(in millions)
Remainder of 2021 $ 23
2022 91
2023 91
2024 2,419
2025 2,714
Thereafter 6,898
$ 12,236

~~As of September 30, 2021, there were bank guarantees totaling approximately £0.8 million (approximately $1.0 million) issued against the availability of the general banking facility.~~


(in millions)
Remainder of 2022	$	76
2023	152
2024	2,355
2025	2,667
2026	3,069
Thereafter	4,505
	$	12,824

Senior Secured Credit Facilities

On ~~August 25, 2021, we~~June 16, 2022, the Company entered into Amendment No. ~~9 (the “Amendment”)~~1 to the Company’s ~~Fourth~~Fifth Amended and Restated Credit Agreement (the ~~“Prior Credit Agreement,” and together with the Amendment, the "Fifth Amended and Restated Credit Agreement"~~“Credit Agreement”) to ~~(i) extend the maturity of our revolving credit facility to 2026, (ii) refinance our existing~~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 ~~new class~~Term SOFR floor of ~~term~~0.00% per annum. The proceeds from the Additional Term A Loans were used to repay approximately $950 million of outstanding revolving credit loans ~~that mature in 2026 and (iii) add IQVIA RDS Inc. as a borrower~~ under the ~~senior secured credit facilities. In connection with this Amendment, we recognized a $1 million loss on extinguishment of debt, which includes fees~~Company’s Credit Agreement and ~~related expenses.~~for general corporate purposes.

As of ~~September~~June 30, ~~2021,~~2022, the ~~Fifth Amended and Restated~~Company’s Credit Agreement provided financing through several senior secured credit facilities ~~(collectively, the “senior secured credit facilities”)~~ of up to approximately ~~$7.2 billion,~~$8,173 million, which consisted of ~~$5.7 billion~~$6,673 million principal amounts of debt outstanding (as detailed in the table above), and ~~$1.5 billion~~$1,500 million of available borrowing capacity on the $1,500 million revolving credit facility and standby letters of credit.

~~On September 14, 2021, we repaid $250~~ The revolving credit facility is comprised of a $675 million ~~of our term B loans under the~~ senior secured ~~credit facilities using the proceeds from the increased loans under our receivables financing facility.~~

~~Receivables Financing Facility~~

~~On August 13, 2021, the Company amended its receivables financing~~revolving facility ~~(the “Receivables Amendment”) to extend the term of the~~available in U.S. dollars, a $600 million senior secured revolving facility ~~to October 1, 2024~~available in U.S. dollars, Euros, Swiss Francs and to increase the size of the facility to $550 million from $300 million. Under the receivables financing facility, certain of our accounts receivable are sold on a non-recourse basis by certain of our consolidated subsidiaries (each, an “Originator”) to another of our consolidated subsidiaries, a bankruptcy-remote special purpose entity (the “SPE”). The SPE obtained a term loan and revolving loan commitment from a third-party lender, secured by liens on the assets of the SPE, to finance the purchase of the accounts receivable, which includes a $440 million term loanother foreign currencies, and a ~~$110~~$225 million senior secured revolving ~~loan commitment. Pursuant to the Receivables Amendment, we also added three additional subsidiaries as Originators. As of September 30, 2021, no additional amounts of revolving loans were~~facility available ~~under the receivables financing facility.~~

~~Senior Notes~~

~~On March 3, 2021, IQVIA Inc. (the “Issuer”), a wholly owned subsidiary of the Company, completed the issuance~~in U.S. dollars and sale of €1,450,000,000 in gross proceeds of the Issuer's (i) €550,000,000 aggregate principal amount of its 1.750% Senior Notes due 2026 (the “2026 Notes”) and (ii) €900,000,000 aggregate principal amount of its 2.250% Senior Notes due 2029 (the “2029 Notes” and, together with the 2026 Notes, the “Notes”). The Notes were issued pursuant to an Indenture, dated March 3, 2021, among the Issuer, U.S. Bank National Association, as trustee of the Notes, and certain subsidiaries of the Issuer as guarantors. The 2026 Notes are unsecured obligations of the Issuer, will mature on March 15, 2026 and bear interest at the rate of 1.750% per year, with interest payable semi-annually on March 15 and September 15 of each year, beginning on September 15, 2021. The 2029 Notes are unsecured obligations of the Issuer, will mature on March 15, 2029 and bear interest at the rate of 2.250% per year, with interest payable semi-annually on March 15 and September 15 of each year, beginning on September 15, 2021. The Issuer may redeem (i) the 2026 Notes prior to their final stated maturity, subject to a customary make-whole premium, at any time prior to March 15, 2023 (subject to a customary “equity claw” redemption right) and thereafter subject to a redemption premium declining from 0.875% to 0.000% and (ii) the 2029 Notes prior to their final stated maturity, subject to a

~~Table of contents~~

customary make-whole premium, at any time prior to March 15, 2024 (subject to a customary “equity claw” redemption right) and thereafter subject to a redemption premium declining from 1.125% to 0.000%. The Issuer may choose to redeem the 2026 Notes and the 2029 Notes, either together or separately, on a non-ratable basis. The proceeds from the Notes offering were used to redeem all of the Issuer’s outstanding 3.250% senior notes due 2025 (the “3.250% Notes”), including the payment of premiums in respect thereof and to pay fees and expenses related to the Notes offering. On February 16, 2021, the Issuer issued a conditional notice of redemption with respect to the 3.250% Notes, for a total redemption price equal to the sum of the principal amount of the 3.250% Notes, accrued and unpaid interest on the 3.250% Notes to the redemption date and the applicable redemption premium. The Issuer’s obligations with respect to the 3.250% Notes were discharged on the same day as the Issuer completed the issuance of the Notes.Yen.

Restrictive Covenants

The Company’s debt agreements provide for certain covenants and events of default customary for similar instruments, including a covenant not to exceed a specified ratio of consolidated senior secured net indebtedness to Consolidated EBITDA, as defined in the senior secured credit facility agreement and a covenant to maintain a specified minimum interest coverage ratio. If an event of default occurs under any of the Company’s or the Company’s subsidiaries’ financing arrangements, the creditors under such financing arrangements will be entitled to take various actions, including the acceleration of amounts due under such arrangements, and in the case of the lenders under the revolving credit facility and term loans, other actions permitted to be taken by a secured creditor. 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~~June 30, ~~2021,~~2022, the Company was in compliance in all material respects with the financial covenants under the Company’s financing arrangements.

8. Contingencies

The Company and its subsidiaries are involved in legal and tax proceedings, claims and litigation arising in the ordinary course of business. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. For those matters where management currently believes it is probable that the Company will incur a loss and that the probable loss or range of loss can be reasonably estimated, the Company has recorded ~~reserves~~an accrual in the consolidated financial statements based on its best estimates of such loss. In other instances, because of the uncertainties related to either the probable outcome or the amount or range of loss, management is unable to make a reasonable estimate of a liability, if any.

However, even in many instances where the Company has recorded an estimated liability, the Company is unable to predict with certainty the final outcome of the matter or whether resolution of the matter will materially affect the Company’s results of operations, financial position or cash flows. As additional information becomes available, the Company adjusts its assessments and estimates of such liabilities accordingly.

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

The Company routinely enters into agreements with third parties, including our clients and suppliers, all in the normal course of business. In these agreements, the Company sometimes agrees to indemnify and hold harmless the other party for any damages such other party may suffer as a result of potential intellectual property infringement and other claims. The Company has not accrued a liability with respect to these matters generally, as the exposure is considered remote.

Based on its review of the latest information available, management does not expect the impact of pending legal and tax proceedings, claims and litigation, either individually or in the aggregate, to have a material adverse effect on the Company’s results of operations, cash flows or financial position. However, one or more unfavorable outcomes in any claim or litigation against the Company could have a material adverse effect for the period in which it is resolved. The following is a summary of certain legal matters involving the Company.

On February 13, 2014, a group of approximately 1,200 medical doctors and 900 private individuals filed a civil lawsuit with the Seoul Central District Court against IMS Korea and 2 other defendants, ~~KPA~~the Korean Pharmaceutical Association (“KPA”) and the Korean Pharmaceutical Information Center (“KPIC”). The civil lawsuit alleges KPA and KPIC collected their personal information in violation of applicable privacy laws without the necessary consent through a software system installed on pharmacy computer systems in Korea, and that personal information was transferred to IMS Korea and sold to pharmaceutical companies. On September 11, 2017, the District Court issued a final decision that the encryption in use by the defendants since June 2014 was adequate to meet the requirements of the Korean Personal Information Privacy Act (“PIPA”) and the sharing of non-identified information for market research purposes was allowed under PIPA. The District Court also found an earlier version of encryption was insufficient to meet PIPA requirements, but no personal data had been leaked or re-identified. The District Court did not award any damages to plaintiffs. Approximately 280 medical doctors and 200 private individuals appealed the District Court decision. On May 3,

~~Table of contents~~

2019, the Appellate Court issued a final decision in which it concluded all of the non-identified information transferred by KPIC to IMS Korea for market research purposes violated PIPA, but did not award any damages to plaintiffs (affirming the District Court’s decision on this latter point). On May 24, 2019, approximately 247 plaintiffs appealed the Appellate Court’s decision to the Supreme Court. The Company believes the appeal is without merit and is vigorously defending its position.

On July 23, 2015, indictments were issued by the Seoul Central District Prosecutors’ Office in South Korea against 24 individuals and companies alleging improper handling of sensitive health information in violation of, among others, South Korea’s Personal Information Protection Act. IMS Korea and 2 of its employees were among the individuals and organizations indicted. Although there is no assertion that IMS Korea used patient identified health information in any of its offerings, prosecutors allege that certain of IMS Korea’s data suppliers should have obtained patient consent when they converted sensitive patient information into non-identified data and that IMS Korea had not taken adequate precautions to reduce the risk of re-identification. On February 14, 2020, the Seoul Central District Court acquitted IMS Korea and its 2 employees of the charges of improper handling of sensitive health ~~information.~~information, and the Prosecutor's Office appealed. On December 23, 2021, the appellate court affirmed the judgment of the Seoul Central District Court. The ~~matter is now on appeal.~~Prosecutor's Office has appealed to the Supreme Court. The Company intends to vigorously defend its position on appeal.

On January 10, 2017, Quintiles IMS Health Incorporated and IMS Software Services Ltd. (collectively “IQVIA Parties”), filed a lawsuit in the U.S. District Court for the District of New Jersey against Veeva Systems, Inc. (“Veeva”) alleging Veeva unlawfully used IQVIA Parties intellectual property to improve Veeva data offerings, to promote and market Veeva data offerings and to improve Veeva technology offerings. IQVIA Parties seek injunctive relief, appointment of a monitor, the award of compensatory and punitive damages and reimbursement of all litigation expenses, including reasonable attorneys’ fees and costs. On March 13, 2017, Veeva filed counterclaims alleging anticompetitive business practices in violation of the Sherman Act and state laws. 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. 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. The parties are engaged in the discovery process in connection with these lawsuits.

On May 7, 2021, the Court issued ~~a 115-page~~an order and opinion (the “Order”) in which it found significant evidence that Veeva had (1) misappropriated IQVIA data and unlawfully used it to improve Veeva data offerings, (2) engaged in a cover-up by deleting significant evidence of its theft of IQVIA’s trade secrets, and (3) improperly withheld certain evidence in furtherance of a crime and/or fraud against IQVIA. The Court imposed five ~~serious~~ sanctions against Veeva, including ordering three separate adverse inference instructions be issued to the jury and that IQVIA be permitted to present evidence to the jury of Veeva’s destruction efforts. Veeva is currently appealing the Order.

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

In 2016, IQVIA acquired Dimensions Healthcare LLC (“Dimensions”), a company operating in the Middle East that was engaged in a joint venture with MedImpact International LLC (“MedImpact International”). The joint venture was terminated in late 2017, and on January 23, 2018, MedImpact International brought an arbitration in Dubai against Dimensions alleging that Dimensions had obtained access to its intellectual property through its prior joint venture with MedImpact International and had used that access to misappropriate and misuse MedImpact International’s intellectual property. Dimensions was ordered to pay an immaterial amount of damages and attorneys’ fees, and enjoined from future use of certain claimed MedImpact International intellectual property.

On September 26, 2019, MedImpact Healthcare Systems, Inc., MedImpact International, MedImpact International Hong Kong Ltd (collectively, “MedImpact”) filed suit in the U.S. District Court for the Southern District of California alleging that various IQVIA entities (IQVIA Inc., IQVIA AG, and IQVIA Ltd.) and 2 IQVIA employees in the Middle East misappropriated its intellectual property, in violation of, among other things, the U.S. Defend Trade Secrets Act (“DTSA”) and the Racketeer Influenced and Corrupt Organizations Act (“RICO”). In particular, MedImpact alleges that IQVIA acquired Dimensions to obtain access to MedImpact’s intellectual property and then used that access to misappropriate and misuse MedImpact's intellectual property. MedImpact claims damages of approximately $100 million and is seeking the trebling of its damages and reimbursement of its litigation expenses, including its attorneys’ fees. MedImpact further seeks to enjoin IQVIA from continuing to misuse its intellectual property. IQVIA rejects the claims raised by MedImpact and is vigorously defending IQVIA’s position. The parties have mostly completed discovery and await the Court’s decisions on numerous motions, including motions for summary judgment. A trial date is anticipated in 2023.

On December 13, 2021, IQVIA filed suit against MedImpact in the same California federal court, alleging that MedImpact and a former executive misappropriated and misused IQVIA’s intellectual property received in the same prior joint venture, in violation of, among other things, the DTSA and RICO. IQVIA seeks treble damages in an unspecified amount, reimbursement of litigation expenses, including attorneys’ fees, and to enjoin MedImpact from continuing to misuse its intellectual property.

9. Stockholders’ Equity

Preferred Stock

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~~June 30, ~~2021~~2022 or December 31, ~~2020.~~2021.

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 since the plan’s inception in October 2013. The Repurchase Program does not obligate the Company to repurchase any particular amount of common stock, and it may be modified, extended, suspended or discontinued at any time.

During the ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, the Company repurchased ~~973,313~~4.5 million shares of its common stock for ~~$221~~$993 million under ~~its equity repurchase program (the “Repurchase Program”).~~the Repurchase Program. These amounts include approximately 0.5 million of shares valued at approximately $100 million, which were accrued for as of June 30, 2022 based on the terms of the transactions. As of ~~September~~June 30, ~~2021,~~2022, the Company has remaining authorization to repurchase up to approximately ~~$0.7~~$1.5 billion of its common stock under the Repurchase Program. In addition, from time to time, the Company has repurchased and may continue to repurchase common stock through private or other transactions outside of the Repurchase Program.

~~Non-controlling Interests~~

~~On April 1, 2021 the Company acquired the 40% non-controlling interest in Q~~2 Solutions from Quest Diagnostics Incorporated ("Quest") for approximately $758 million, financed with cash on hand. The $758 million reflects post-closing adjustments to date. The transaction resulted in the Company having 100% ownership in Q2 ~~Solutions. As of September 30, 2021, the Company had no other material non-controlling interests.~~

~~Table of contents~~

10. Business Combinations

The Company completed several individually immaterial acquisitions during the ~~nine~~six months ended ~~September~~June 30, ~~2021.~~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.

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

The following table provides certain preliminary financial information for these ~~acquisitions, including the preliminary allocation of the purchase price to certain intangible assets acquired and goodwill:~~acquisitions:

(in millions)

~~2021~~

~~Amortization Period~~June 30, 2022

Assets acquired:

Cash and cash equivalents

713

Other assets

4072

Goodwill

~~772~~309

Other identifiable intangibles ~~net~~

~~Customer relationships~~

~~208~~199

~~16 years~~

~~Non-compete agreements~~

~~5 years~~

~~Software and related assets~~

~~8 years~~

~~Trade names~~

~~10 years~~

~~Backlog~~

~~2 years~~

Liabilities assumed:

Other liabilities

~~(21)~~(53)

Deferred income taxes, long-term

~~(60)~~(37)

Net assets acquired (1)

~~1,044~~503

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

The portion of goodwill deductible for income tax purposes was preliminarily assessed as ~~$503~~$30 million.

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


(in millions)	Amortization Period				June 30, 2022
Other identifiable intangibles:
Customer relationships	1	-	17	years	$	161
Non-compete agreements			3	years	3
Software and related assets	3	-	5	years	15
Trade names			2	years	3
Backlog	1	-	4	years	14
Databases			5	years	3
Total Other identifiable intangibles					$	199

11. Restructuring

The Company has continued to take restructuring actions in ~~2021~~2022 to align its resources and reduce overcapacity to adapt to changing market conditions and integrate acquisitions. These actions include consolidating functional activities, eliminating redundant positions, and aligning resources with customer requirements. These restructuring actions are expected to continue into ~~2022.~~2023.

The following amounts were recorded for the restructuring plans:
(in millions) Severance and
Related Costs Facility
Exit Costs Total
Balance as of December 31, 2020 $ 51 $ 2 $ 53
Expense, net of reversals 15 — 15
Payments (35) (1) (36)
Foreign currency translation and other (2) — (2)
Balance as of September 30, 2021 $ 29 $ 1 $ 30


(in millions)	Severance and Related Costs
Balance as of December 31, 2021	$	30
Expense, net of reversals	11
Payments	(16)
Foreign currency translation and other	(2)
Balance as of June 30, 2022	$	23

The reversals were due to changes in estimates primarily from the redeployment of staff and higher than expected voluntary terminations. Restructuring costs are not allocated to the Company’s reportable segments as they are not part of the segment performance measures regularly reviewed by management. The Company expects that the majority of the restructuring accruals as of ~~September~~June 30, ~~2021~~2022 will be paid in ~~2021~~2022 and ~~2022.~~

2023.

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12. Income Taxes

The effective income tax rate was ~~4.4% and (2.9)%~~21.6% in the ~~third~~second quarter of 2022 and 2021, and ~~2020, respectively,~~19.5% and ~~13.8% and 5.0%~~19.2% in the first ~~nine~~six months of 2022 and 2021, ~~and 2020,~~ respectively. In the third quarter of 2021 the Company recorded a benefit related to a 2020 U.S. Federal tax return position associated with Foreign Derived Intangible Income (“FDII”) and Global Intangible Low-Taxed Income (“GILTI”) tax credits of $29 million. In the third quarter of 2020, the U.S. Treasury Department issued final regulations regarding FDII and GILTI and the Company had determined it would elect the GILTI high tax exception as allowed by the final regulations. As a result, the Company amended its 2018 U.S. Federal consolidated income tax return and plans to amend its 2019 U.S. Federal consolidated income tax return. This resulted in a favorable impact of $24 million, which the Company recorded in the third quarter of 2020. Additionally, theThe effective income tax rate in the ~~third~~second quarter and in the first ~~nine~~six months of ~~2021~~2022 and ~~2020~~2021 was favorably impacted as a result of excess tax benefits recognized upon settlement of share-based compensation awards. For the ~~third~~second quarter of ~~2021~~2022 and ~~2020~~2021 this impact was $3$1 million and $9$6 million, respectively, and for the first ~~nine~~six months of ~~2021~~2022 and ~~2020~~2021 this impact was ~~$26~~$14 million and ~~$35~~$23 million, respectively. Also, the effective income tax rate in the first nine months of 2020 was unfavorably impacted by a $10 million discrete tax expense related to change in the measurement of U.S. tax on undistributed foreign earnings.

13. Accumulated Other Comprehensive (Loss) Income

Below is a summary of the components of AOCI:
(in millions) Foreign
Currency
Translation Derivative
Instruments Defined
Benefit
Plans Income
Taxes Total
Balance as of December 31, 2020 $ (395) $ (48) $ (85) $ 323 $ (205)
Other comprehensive income (loss) before reclassifications (170) (1) — (66) (237)
Reclassification adjustments — 9 — (2) 7
Acquisition of Quest's non-controlling interest (10) — — — (10)
Balance as of September 30, 2021 $ (575) $ (40) $ (85) $ 255 $ (445)


(in millions)	Foreign Currency Translation		Derivative Instruments		Defined Benefit Plans		Income Taxes		Total
Balance as of December 31, 2021	$	(570)	$	(21)	$	5	$	180	$	(406)
Other comprehensive (loss) income before reclassifications	(210)		31		(6)		(119)		(304)
Reclassification adjustments	—		17		—		(4)		13
Balance as of June 30, 2022	$	(780)	$	27	$	(1)	$	57	$	(697)

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


(in millions)	(in millions)	Affected Financial Statement Line Item		Three Months Ended September 30,						Nine Months Ended September 30,					(in millions)		Affected Financial Statement Line Item		Three Months Ended June 30,				Six Months Ended June 30,
			2021			2020			2021			2020				2022			2021		2022		2021
Derivative instruments:	Derivative instruments:																	Derivative instruments:
Interest rate swaps and caps		Interest expense		$	5		$	—		$	14		$	—
Foreign exchange forward contracts		Revenues		(1)			4			(5)			9
Interest rate swaps															Interest rate swaps		Interest expense		$	(7)	$	(5)	$	(7)	$	(9)
Foreign exchange forward contracts	Foreign exchange forward contracts	Other income, net		—			(1)			—			(1)		Foreign exchange forward contracts		Revenues		(11)		2		(10)		4
Total before income taxes	Total before income taxes			4			3			9			8		Total before income taxes				(18)		(3)		(17)		(5)
Income tax benefit				1			1			2			2
Income taxes															Income taxes				(4)		—		(4)		(1)
Total net of income taxes	Total net of income taxes			$	3		$	2		$	7		$	6	Total net of income taxes				$	(14)	$	(3)	$	(13)	$	(4)

14. Segments

The following table presents the Company’s operations by reportable segment. The Company is managed through 3 reportable segments, Technology & Analytics Solutions, Research & Development Solutions and Contract Sales & Medical Solutions. Technology & Analytics Solutions provides mission critical information, technology solutions and real world insights and services to ~~our~~the Company's life science clients. Research & Development Solutions, which primarily serves biopharmaceutical ~~clients, is engaged in research and development and~~customers, provides outsourced clinical research and clinical trial related services. Contract Sales & Medical Solutions provides health care provider (including contract ~~sales~~sales) and patient engagement services to both biopharmaceutical clients and the broader healthcare market.

Certain costs are not allocated to ~~the Company’s~~our segments and are reported as general corporate and unallocated expenses. These costs primarily consist of stock-based compensation and expenses related to integration activities and acquisitions. The Company also does not allocate depreciation and amortization or impairment charges to its segments. Asset information by segment is not presented, as this measure is not used by the chief operating decision maker to assess the Company’s performance. The Company’s reportable segment information is presented below:

1918

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		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	(in millions)	2021		2020		2021		2020		(in millions)	2022		2021		2022		2021
Revenues	Revenues									Revenues
Technology & Analytics Solutions	Technology & Analytics Solutions	$	1,337	$	1,207	$	4,038	$	3,433	Technology & Analytics Solutions	$	1,408	$	1,353	$	2,847	$	2,701
Research & Development Solutions	Research & Development Solutions	1,853		1,400		5,612		4,076		Research & Development Solutions	1,950		1,891		3,884		3,759
Contract Sales & Medical Solutions	Contract Sales & Medical Solutions	201		179		588		552		Contract Sales & Medical Solutions	183		194		378		387
Total revenues	Total revenues	3,391		2,786		10,238		8,061		Total revenues	3,541		3,438		7,109		6,847
Costs of revenue, exclusive of depreciation and amortization
Cost of revenues, exclusive of depreciation and amortization										Cost of revenues, exclusive of depreciation and amortization
Technology & Analytics Solutions	Technology & Analytics Solutions	795		727		2,415		2,048		Technology & Analytics Solutions	828		808		1,662		1,620
Research & Development Solutions	Research & Development Solutions	1,291		925		3,967		2,811		Research & Development Solutions	1,348		1,355		2,670		2,676
Contract Sales & Medical Solutions	Contract Sales & Medical Solutions	167		148		487		469		Contract Sales & Medical Solutions	155		160		322		320
Total costs of revenue		2,253		1,800		6,869		5,328
Total cost of revenues, exclusive of depreciation and amortization										Total cost of revenues, exclusive of depreciation and amortization	2,331		2,323		4,654		4,616
Selling, general and administrative expenses	Selling, general and administrative expenses									Selling, general and administrative expenses
Technology & Analytics Solutions	Technology & Analytics Solutions	199		188		579		549		Technology & Analytics Solutions	196		193		415		380
Research & Development Solutions	Research & Development Solutions	198		184		576		544		Research & Development Solutions	204		193		415		378
Contract Sales & Medical Solutions	Contract Sales & Medical Solutions	14		14		41		44		Contract Sales & Medical Solutions	15		14		31		27
General corporate and unallocated	General corporate and unallocated	87		74		226		161		General corporate and unallocated	68		82		110		139
Total selling, general and administrative expenses	Total selling, general and administrative expenses	498		460		1,422		1,298		Total selling, general and administrative expenses	483		482		971		924
Segment profit	Segment profit									Segment profit
Technology & Analytics Solutions	Technology & Analytics Solutions	343		292		1,044		836		Technology & Analytics Solutions	384		352		770		701
Research & Development Solutions	Research & Development Solutions	364		291		1,069		721		Research & Development Solutions	398		343		799		705
Contract Sales & Medical Solutions	Contract Sales & Medical Solutions	20		17		60		39		Contract Sales & Medical Solutions	13		20		25		40
Total segment profit	Total segment profit	727		600		2,173		1,596		Total segment profit	795		715		1,594		1,446
General corporate and unallocated	General corporate and unallocated	(87)		(74)		(226)		(161)		General corporate and unallocated	(68)		(82)		(110)		(139)
Depreciation and amortization	Depreciation and amortization	(336)		(319)		(1,002)		(943)		Depreciation and amortization	(270)		(343)		(525)		(666)
Restructuring costs	Restructuring costs	(2)		(20)		(15)		(50)		Restructuring costs	(4)		(4)		(11)		(13)
Total income from operations	Total income from operations	$	302	$	187	$	930	$	442	Total income from operations	$	453	$	286	$	948	$	628

15. Earnings Per Share

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


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions, except per share data)	2022		2021		2022		2021
Numerator:
Net income attributable to IQVIA Holdings Inc.	$	256	$	175	$	581	$	387
Denominator:
Basic weighted average common shares outstanding	188.3		191.6		189.2		191.6
Effect of dilutive stock options and share awards	2.8		3.3		3.0		3.3
Diluted weighted average common shares outstanding	191.1		194.9		192.2		194.9
Earnings per share attributable to common stockholders:
Basic	$	1.36	$	0.91	$	3.07	$	2.02
Diluted	$	1.34	$	0.90	$	3.02	$	1.99

Stock-based awards will have a dilutive effect under the treasury method when the respective period's average market value of the Company's common stock exceeds the exercise proceeds. 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.

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

Three Months Ended September 30, Nine Months Ended September 30,
(in millions) 2021 2020 2021 2020
Shares subject to performance conditions 0.9 1.1 0.8 1.2
Shares subject to anti-dilutive stock-based awards — 1.1 0.1 1.3
Total shares excluded from diluted earnings per share 0.9 2.2 0.9 2.5

The vesting of performance awards is contingent upon the achievement of certain performance targets. The performance awards are not included in diluted earnings per share until the performance targets have been met. Stock-based awards will have a dilutive effect under the treasury method when the respective period’s average market value of the Company’s common stock exceeds the exercise proceeds.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Statement for Forward-Looking Information

You should read the following discussion and analysis of our financial condition and results of operations together with our condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q and with our audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2020~~2021 (our ~~“2020~~“2021 Form 10-K”).

In addition to historical condensed consolidated financial information, the following discussion contains or incorporates by reference forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are not historical facts but reflect, among other things, our current expectations, our forecasts and our anticipated results of operations, all of which are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, market trends, or industry results to differ materially from those expressed or implied by such forward-looking statements. Therefore, any statements contained herein that are not statements of historical fact may be forward-looking statements and should be evaluated as such. Without limiting the foregoing, the words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” ~~“plans,~~“forecasts,” ~~“forecasts,~~“plans,” “projects,” “should,” “targets,” “will” and ~~the negative thereof and~~ similar words and expressions, and variations and negatives of these words are intended to identify forward-looking ~~statements.~~statements, although not all forward-looking statements contain these identifying words. We assume no obligation to update any such forward-looking information to reflect actual results or changes in our outlook or the factors affecting such forward-looking information.

We caution you that any such forward-looking statements are further qualified by important factors that could cause our actual operating results to differ materially from those in the forward-looking statements, including without limitation, business disruptions caused by natural disasters, pandemics such as the COVID-19 (coronavirus) outbreak, orincluding any variants, and the public health policy responses to the outbreak, and international ~~conflict~~conflicts or other disruptions outside of our ~~control;~~control such as the current situation in Ukraine and Russia; our ability to accurately model or forecast the impact of the spread and/or containment of COVID-19, including any variants, among other sources of business interruption, on our operations and financial results; most of our contracts may be terminated on short notice, and we may lose or experience delays with large client contracts or be unable to enter into new contracts; the market for our services may not grow as we expect; we may be unable to successfully develop and market new services or enter new markets; imposition of restrictions on our use of data by data suppliers or their refusal to license data to us; any failure by us to comply with contractual, regulatory or ethical requirements under our contracts, including current or future changes to data protection and privacy laws; breaches or misuse of our or our outsourcing partners’ security or communications systems; failure to meet our productivity or business transformation objectives; failure to successfully invest in growth opportunities; our ability to protect our intellectual property rights and our susceptibility to claims by others that we are infringing on their intellectual property rights; the expiration or inability to acquire third party licenses for technology or intellectual property; any failure by us to accurately and timely price and formulate cost estimates for contracts, or to document change orders; hardware and software failures, delays in the operation of our computer and communications systems or the failure to implement system enhancements; the rate at which our backlog converts to revenue; our ability to acquire, develop and implement technology necessary for our business; consolidation in the industries in which our clients operate; risks related to client or therapeutic concentration; government regulators or our customers may limit the number or scope of ~~prescription~~indications for medicines and treatments or withdraw products from the market, and government regulators may impose new regulatory requirements or may adopt new regulations affecting the biopharmaceutical industry; the risks associated with operating on a global basis, including currency or exchange rate fluctuations and legal compliance, including anti-corruption laws; risks related to changes in accounting standards; general economic conditions in the markets in which we operate, including financial market conditions, inflation, and risks related to sales to government entities; the impact of changes in tax laws and regulations; and our ability to successfully integrate, and achieve expected benefits from, our acquired businesses. For a further discussion of the risks relating to our business, see Part I—Item 1A—“Risk Factors” in our ~~2020~~2021 Form 10-K, as updated in ~~this~~our subsequently filed Quarterly ~~Report~~Reports on Form 10-Q.

Overview

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. With approximately ~~77,000~~83,000 employees, we conduct operations in more than 100 countries.

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We are a global leader in protecting individual patient privacy. We use a wide variety of privacy-enhancing technologies and safeguards to protect individual privacy while generating and analyzing information on a scale that helps healthcare stakeholders identify disease patterns and correlate with the precise treatment path and therapy needed for better outcomes. Our insights and execution capabilities help biotech, medical device and pharmaceutical companies, medical researchers, government agencies, payers and other healthcare stakeholders tap into a deeper understanding of diseases, human behaviors and scientific advances, in an effort to advance their path toward cures.

We are managed through three reportable segments, Technology & Analytics Solutions, Research & Development Solutions and Contract Sales & Medical Solutions. Technology & Analytics Solutions provides mission critical information, technology solutions and real world insights and services to our life science clients. Research & Development Solutions, which primarily serves biopharmaceutical ~~clients, is engaged in research and development and~~customers, provides outsourced clinical research and clinical trial related services. Contract Sales & Medical Solutions provides health care provider (including contract ~~sales~~sales) and patient engagement services to both biopharmaceutical clients and the broader healthcare market.

Sources of Revenue

Total revenues are comprised of revenues from the provision of our services. We do not have any material product revenues.

Costs and Expenses

Our costs and expenses are comprised primarily of our ~~costs~~cost of ~~revenue, which include~~revenues including reimbursed expenses and selling, general and administrative expenses. ~~Costs~~Cost of ~~revenue include~~revenues includes compensation and benefits for billable employees and personnel involved in production, trial monitoring, data management and delivery, and the costs of acquiring and processing data for our information offerings; costs of staff directly involved with delivering technology-related services offerings and engagements, related accommodations and the costs of data purchased specifically for technology services engagements; ~~costs~~and other expenses directly related to ~~facilities; costs related to training~~service contracts such as courier fees, laboratory supplies, professional services and travel expenses. Reimbursed expenses, ~~for information technology (“IT”), reimbursed expenses that~~which are included in cost of revenues, are comprised principally of payments to investigators who oversee clinical trials and travel expenses for our clinical monitors and sales ~~representatives; and other expenses directly related to service contracts such as courier fees, laboratory supplies, professional services and travel expenses.~~representatives. Selling, general and administrative expenses include costs related to sales, marketing and administrative functions (including human resources, legal, finance, quality assurance, compliance and general management) for compensation and benefits, travel, professional services, ~~facilities and~~ training and expenses for ~~IT.~~information technology and facilities. We also incur costs and expenses associated with depreciation and amortization.

Foreign Currency Translation

In the first ~~nine~~six months of ~~2021,~~2022, approximately 35% 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. The revenues and expenses of our foreign operations are generally denominated in local currencies and translated into United States dollars for financial reporting purposes. Accordingly, exchange rate fluctuations will affect the translation of foreign results into United States dollars for purposes of reporting our condensed consolidated results. As a result, we believe that reporting results of operations that exclude the effects of foreign currency rate fluctuations on certain financial results can facilitate analysis of ~~period-to-period~~period to period comparisons. This constant currency information assumes the same foreign currency exchange rates that were in effect for the comparable prior-year period were used in translation of the current period results. As such, the differences noted below between reported results of operations and constant currency information is wholly attributable to the effects of foreign currency rate fluctuations.

Consolidated Results of Operations

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.

Revenues
Three Months Ended September 30, Change
(in millions) 2021 2020 $ %
Revenues $ 3,391 $ 2,786 $ 605 21.7 %


	Three Months Ended June 30,				Change
(in millions)	2022		2021		$		%
Revenues	$	3,541	$	3,438	$	103	3.0	%

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For the ~~third~~second quarter of ~~2021,~~2022, our revenues increased ~~$605~~$103 million, or ~~21.7%~~3.0%, as compared to the same period in ~~2020.~~2021. This increase was comprised of constant currency revenue growth of approximately ~~$589~~$244 million, or ~~21.1%~~7.1%, reflecting an ~~$120~~$127 million increase in Technology & Analytics Solutions, ~~a $446~~an $113 million increase in Research & Development Solutions, and a ~~$23~~$4 million increase in Contract Sales & Medical Solutions.
Nine Months Ended September 30, Change
(in millions) 2021 2020 $ %
Revenues $ 10,238 $ 8,061 $ 2,177 27.0 %


	Six Months Ended June 30,				Change
(in millions)	2022		2021		$		%
Revenues	$	7,109	$	6,847	$	262	3.8	%

For the first ~~nine~~six months of ~~2021,~~2022, our revenues increased ~~$2,177~~$262 million, or ~~27.0%~~3.8%, as compared to the same period in ~~2020.~~2021. This increase was comprised of constant currency revenue growth of approximately ~~$2,015~~$475 million, or ~~25.0%. The constant currency revenue growth was comprised of~~6.9%, reflecting a ~~$510~~$259 million increase in Technology & Analytics Solutions, ~~an $1,477~~a $201 million increase in Research & Development Solutions, and a ~~$28~~$15 million increase in Contract Sales & Medical ~~Solutions~~.Solutions.

~~Costs~~Cost of ~~Revenue,~~Revenues, exclusive of Depreciation and Amortization


		Three Months Ended September 30,						Nine Months Ended September 30,							Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	(in millions)	2021			2020			2021			2020			(in millions)	2022			2021			2022			2021
Costs of revenue, exclusive of depreciation and amortization		$	2,253		$	1,800		$	6,869		$	5,328
Cost of revenues, exclusive of depreciation and amortization														Cost of revenues, exclusive of depreciation and amortization	$	2,331		$	2,323		$	4,654		$	4,616
% of revenues	% of revenues	66.4		%	64.6		%	67.1		%	66.1		%	% of revenues	65.8		%	67.6		%	65.5		%	67.4		%

The ~~$453~~$8 million increase in ~~costs~~cost of ~~revenue,~~revenues, exclusive of depreciation and amortization, for the three months ended ~~September~~June 30, ~~2021~~2022 as compared to the same period in ~~2020~~2021 included a constant currency ~~growth~~increase of approximately ~~$436~~$134 million, or ~~24.2%~~5.8%, reflecting a ~~$56~~$58 million increase in Technology & Analytics Solutions, a ~~$359~~$70 million increase in Research & Development Solutions, and a $6 million increase in Contract Sales & Medical Solutions.

The $38 million increase in cost of revenues, exclusive of depreciation and amortization, for the six months ended June 30, 2022 as compared to the same period in 2021 included a constant currency increase of approximately $229 million, or 5.0%, reflecting an $102 million increase in Technology & Analytics Solutions, an $106 million increase in Research & Development Solutions, and a $21 million increase in Contract Sales & Medical Solutions.

The $1,541 million increase in costs of revenue, exclusive of depreciation and amortization, for the nine months ended September 30, 2021 as compared to the same period in 2020 included a constant currency growth of approximately $1,382 million, or 25.9%, reflecting a $294 million increase in Technology & Analytics Solutions, a $1,076 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 June 30,						Six Months Ended June 30,
(in millions)	(in millions)	2021			2020			2021			2020			(in millions)	2022			2021			2022			2021
Selling, general and administrative expenses	Selling, general and administrative expenses	$	498		$	460		$	1,422		$	1,298		Selling, general and administrative expenses	$	483		$	482		$	971		$	924
% of revenues	% of revenues	14.7		%	16.5		%	13.9		%	16.1		%	% of revenues	13.6		%	14.0		%	13.7		%	13.5		%

The ~~$38~~$1 million increase in selling, general and administrative expenses for the three months ended ~~September~~June 30, ~~2021~~2022 as compared to the same period in ~~2020~~2021 included a constant currency ~~growth~~increase of approximately ~~$33~~$25 million, or ~~7.2%~~5.2%, reflecting a $9$17 million increase in Technology & Analytics Solutions, a ~~$12~~$17 million increase in Research & Development Solutions, ~~and~~an $1 million increase in Contract Sales & Medical Solutions, offset by a ~~$12~~$(10) million ~~increase~~decrease in general corporate and unallocated ~~expenses, while Contract Sales & Medical Solutions remained consistent.~~expenses.

The ~~$124~~$47 million increase in selling, general and administrative expenses for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 as compared to the same period in ~~2020~~2021 included a constant currency ~~growth~~increase of approximately ~~$94~~$83 million, or ~~7.2%~~9.0%, reflecting a ~~$15~~$56 million increase in Technology & Analytics Solutions, a ~~$23~~$46 million increase in Research & Development Solutions, ~~and~~ a ~~$60~~$5 million increase in Contract Sales & Medical Solutions, offset by a $(24) million decrease in general corporate and unallocated ~~expenses, offset by a $(4) million decrease in Contract Sales & Medical Solutions.~~

expenses.

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Depreciation and Amortization


		Three Months Ended September 30,						Nine Months Ended September 30,							Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	(in millions)	2021			2020			2021			2020			(in millions)	2022			2021			2022			2021
Depreciation and amortization	Depreciation and amortization	$	336		$	319		$	1,002		$	943		Depreciation and amortization	$	270		$	343		$	525		$	666
% of revenues	% of revenues	9.9		%	11.5		%	9.8		%	11.7		%	% of revenues	7.6		%	10.0		%	7.4		%	9.7		%

The ~~$17~~$73 million and ~~$59~~$141 million ~~increases~~decrease in depreciation and amortization in the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 as compared to the same periods in ~~2020 were~~2021 was primarily due to ~~higher~~certain intangible ~~asset balances as a result of~~assets from the merger between Quintiles and IMS Health becoming fully amortized in 2021, offset by an increase in amortization from intangible assets associated with acquisitions occurring in ~~2020~~2021 and ~~2021, increased amortization due to~~2022 as well as higher capitalized software ~~balances, and accelerated amortization related to intangibles impacted by the Company's acquisition of Quest's non-controlling interest in Q~~2 ~~Solutions.~~balances.

Restructuring Costs


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	(in millions)	2021		2020		2021		2020		(in millions)	2022		2021		2022		2021
Restructuring costs	Restructuring costs	$	2	$	20	$	15	$	50	Restructuring costs	$	4	$	4	$	11	$	13

The restructuring costs incurred during ~~2021~~2022 and ~~2020~~2021 were due to ongoing efforts to streamline our global operations. The remaining actions under these plans are expected to occur throughout ~~2021~~2022 and into ~~2022~~2023 and are expected to consist of consolidating functional activities, eliminating redundant positions and aligning resources with customer requirements.

Interest Income and Interest Expense


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	(in millions)	2021		2020		2021		2020		(in millions)	2022		2021		2022		2021
Interest income	Interest income	$	(2)	$	(1)	$	(4)	$	(4)	Interest income	$	(2)	$	(1)	$	(3)	$	(2)
Interest expense	Interest expense	$	92	$	100	$	285	$	314	Interest expense	$	94	$	94	$	180	$	193

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

Interest expense during the ~~three and nine~~six months ended ~~September~~June 30, ~~2021~~2022 was lower than the same ~~periods~~period in ~~2020~~2021 due to ~~lower interest rates attributed to lower LIBOR rates,~~ the refinancing in 2021 of our existing term A loans and the redemption of ~~the €1,425 million of~~our 3.250% senior notes due ~~2025. See “Liquidity~~2025, which was offset by the interest expense on the issuance in 2021 of our 1.750% senior notes due 2026 and ~~Capital Resources” for more information~~2.250% senior notes due 2029, as well as interest expense on ~~this transaction.~~the revolving credit facility.

Loss on Extinguishment of Debt

Three Months Ended September 30, Nine Months Ended September 30,
(in millions) 2021 2020 2021 2020
Loss on extinguishment of debt $ 1 $ — $ 25 $ 12


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2022		2021		2022		2021
Loss on extinguishment of debt	$	—	$	—	$	—	$	24

During the ~~three~~six months ended ~~September 30, 2021, we recognized a loss on extinguishment of debt for fees and expenses incurred related to the refinancing of our Prior Credit Agreement.~~

~~During the ninemonths ended September~~June 30, 2021, we recognized a loss on extinguishment of debt for fees and expenses incurred related to the refinancing of our 3.250% senior notes due ~~2025 and Prior Credit Agreement..~~2025.

Other ~~Income,~~Expense (Income), Net


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	(in millions)	2021		2020		2021		2020		(in millions)	2022		2021		2022		2021
Other income, net		$	(62)	$	(14)	$	(128)	$	(59)
Other expense (income), net										Other expense (income), net	$	33	$	(29)	$	43	$	(66)

Other ~~income,~~expense (income), net for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 increased as compared to the same periods in the prior year, primarily due to foreign currency ~~gain.~~losses and losses on investments in mutual funds.

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Income Tax Expense ~~(Benefit)~~


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	(in millions)	2021		2020		2021		2020		(in millions)	2022		2021		2022		2021
Income tax expense (benefit)		$	12	$	(3)	$	104	$	9
Income tax expense										Income tax expense	$	71	$	48	$	142	$	92

Our effective income tax rate was ~~4.4% and (2.9)%~~21.6% in the ~~third~~second quarter of 2022 and 2021, and ~~2020, respectively,~~19.5% and ~~13.8% and 5.0%~~19.2% in the first ~~nine~~six months of 2022 and 2021, and 2020. In the third quarter of 2021, we recorded a benefit related to a 2020 U.S. Federal tax return position associated with Foreign Derived Intangible Income (“FDII”) and Global Intangible Low-Taxed Income (“GILTI”) tax credits of $29 million. In the third quarter of 2020, the U.S. Treasury Department issued final regulations regarding FDII and GILTI and we had determined we would elect the GILTI high tax exception as allowed by the final regulations. As a result, we amended our 2018 U.S. Federal consolidated income tax return and plan to amend our 2019 U.S. Federal consolidated income tax return. This resulted in a favorable impact of $24 million, which we recorded in the third quarter of 2020. Additionally, ourrespectively. Our effective income tax rate in the ~~third~~second quarter and in the first ~~nine~~six months of ~~2021~~2022 and ~~2020~~2021 was favorably impacted as a result of excess tax benefits recognized upon settlement of share-based compensation awards. For the ~~third~~second quarter of ~~2021~~2022 and ~~2020,~~2021 this impact was $3$1 million and $9$6 million, respectively, and for the first ~~nine~~six months of ~~2021~~2022 and ~~2020,~~2021 this impact was ~~$26~~$14 million and ~~$35~~$23 million, respectively. Also, our effective income tax rate in the first nine months of 2020 was unfavorably impacted by a $10 million discrete tax expense related to change in the measurement of U.S. tax on undistributed foreign earnings.

Equity in (Losses) Earnings of Unconsolidated Affiliates


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	(in millions)	2021		2020		2021		2020		(in millions)	2022		2021		2022		2021
Equity in earnings of unconsolidated affiliates		$	—	$	3	$	5	$	8
Equity in (losses) earnings of unconsolidated affiliates										Equity in (losses) earnings of unconsolidated affiliates	$	(1)	$	1	$	(5)	$	5

Equity in (losses) earnings of unconsolidated affiliates for the three and six months ended ~~September~~June 30, ~~2021~~2022 decreased as compared to the same period in the prior year ~~primarily~~ due to losses ~~from our investments~~ in the ~~NovaQuest Pharma Opportunities Funds.~~

Equity in earnings of unconsolidated affiliates for the nine months ended September 30, 2021 decreased as compared to the same period in the prior year primarily due to losses from investments in someoperations of our unconsolidated affiliates.

Net Income Attributable to Non-controlling Interests


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	(in millions)	2021		2020		2021		2020		(in millions)	2022		2021		2022		2021
Net income attributable to non-controlling interests	Net income attributable to non-controlling interests	$	—	$	(7)	$	(5)	$	(18)	Net income attributable to non-controlling interests	$	—	$	—	$	—	$	(5)

Net income attributable to non-controlling interests included ~~Quest’s~~Quest Diagnostics Incorporated ("Quest") interest in Q2 Solutions. On April 1, 2021 the Company acquired the 40% non-controlling interest in Q2 Solutions from Quest which resulted in a decrease in the net income attributable to non-controlling interests for the ~~three and nine~~six months ended ~~September~~June 30, ~~2021~~2022 as compared to the prior ~~periods. See Note 9 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional details regarding this transaction.~~

~~Table of contents~~

period.

Segment Results of Operations

The Company’s revenues and profit by segment are as follows:


Three Months Ended September 30, 2021 and 2020
Three Months Ended June 30, 2022 and 2021										Three Months Ended June 30, 2022 and 2021
		Segment Revenues				Segment Profit					Segment Revenues				Segment Profit
(in millions)	(in millions)	2021		2020		2021		2020		(in millions)	2022		2021		2022		2021
Technology & Analytics Solutions	Technology & Analytics Solutions	$	1,337	$	1,207	$	343	$	292	Technology & Analytics Solutions	$	1,408	$	1,353	$	384	$	352
Research & Development Solutions	Research & Development Solutions	1,853		1,400		364		291		Research & Development Solutions	1,950		1,891		398		343
Contract Sales & Medical Solutions	Contract Sales & Medical Solutions	201		179		20		17		Contract Sales & Medical Solutions	183		194		13		20
Total	Total	3,391		2,786		727		600		Total	3,541		3,438		795		715
General corporate and unallocated	General corporate and unallocated					(87)		(74)		General corporate and unallocated					(68)		(82)
Depreciation and amortization	Depreciation and amortization					(336)		(319)		Depreciation and amortization					(270)		(343)
Restructuring costs	Restructuring costs					(2)		(20)		Restructuring costs					(4)		(4)
Consolidated	Consolidated	$	3,391	$	2,786	$	302	$	187	Consolidated	$	3,541	$	3,438	$	453	$	286

Ta b l e o f c o n t e n t s
Nine Months Ended September 30, 2021 and 2020
Segment Revenues Segment Profit
(in millions) 2021 2020 2021 2020
Technology & Analytics Solutions $ 4,038 $ 3,433 $ 1,044 $ 836
Research & Development Solutions 5,612 4,076 1,069 721
Contract Sales & Medical Solutions 588 552 60 39
Total 10,238 8,061 2,173 1,596
General corporate and unallocated (226) (161)
Depreciation and amortization (1,002) (943)
Restructuring costs (15) (50)
Consolidated $ 10,238 $ 8,061 $ 930 $ 442



Six Months Ended June 30, 2022 and 2021
	Segment Revenues				Segment Profit
(in millions)	2022		2021		2022		2021
Technology & Analytics Solutions	$	2,847	$	2,701	$	770	$	701
Research & Development Solutions	3,884		3,759		799		705
Contract Sales & Medical Solutions	378		387		25		40
Total	7,109		6,847		1,594		1,446
General corporate and unallocated					(110)		(139)
Depreciation and amortization					(525)		(666)
Restructuring costs					(11)		(13)
Consolidated	$	7,109	$	6,847	$	948	$	628

Certain costs are not allocated to our segments and are reported as general corporate and unallocated expenses. 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 to our segments.

Technology & Analytics Solutions


		Three Months Ended September 30,				Change					Three Months Ended June 30,				Change
(in millions)	(in millions)	2021		2020		$		%		(in millions)	2022		2021		$		%
Revenues	Revenues	$	1,337	$	1,207	$	130	10.8	%	Revenues	$	1,408	$	1,353	$	55	4.1	%
Costs of revenue, exclusive of depreciation and amortization		795		727		68		9.4
Cost of revenues, exclusive of depreciation and amortization										Cost of revenues, exclusive of depreciation and amortization	828		808		20		2.5
Selling, general and administrative expenses	Selling, general and administrative expenses	199		188		11		5.9		Selling, general and administrative expenses	196		193		3		1.6
Segment profit	Segment profit	$	343	$	292	$	51	17.5	%	Segment profit	$	384	$	352	$	32	9.1	%

Nine Months Ended September 30, Change
(in millions) 2021 2020 $ %
Revenues $ 4,038 $ 3,433 $ 605 17.6 %
Costs of revenue, exclusive of depreciation and amortization 2,415 2,048 367 17.9
Selling, general and administrative 579 549 30 5.5
Segment profit $ 1,044 $ 836 $ 208 24.9 %

~~Table of contents~~



	Six Months Ended June 30,				Change
(in millions)	2022		2021		$		%
Revenues	$	2,847	$	2,701	$	146	5.4	%
Cost of revenues, exclusive of depreciation and amortization	1,662		1,620		42		2.6
Selling, general and administrative expenses	415		380		35		9.2
Segment profit	$	770	$	701	$	69	9.8	%

Revenues

Technology & Analytics Solutions’ revenues were ~~$1,337~~$1,408 million for the ~~third~~second quarter of ~~2021,~~2022, an increase of ~~$130~~$55 million, or ~~10.8%~~4.1%, over the same period in ~~2020.~~2021. This increase was comprised of constant currency revenue growth of approximately ~~$120~~$127 million, or ~~9.9%~~9.4%, reflecting revenue growth across all regions.

Technology & Analytics Solutions’ revenues were ~~$4,038~~$2,847 million for the first ~~nine~~six months of ~~2021,~~2022, an increase of ~~$605~~$146 million, or ~~17.6%~~5.4%, over the same period in ~~2020.~~2021. This increase was comprised of constant currency revenue growth of approximately ~~$510~~$259 million, or ~~14.9%~~9.6%, reflecting revenue growth across all regions.

The revenue growth for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was driven by higher technology, real-world and consulting and analytical ~~services and COVID-19 related work.~~services.

~~Costs~~Cost of ~~Revenue,~~Revenues, exclusive of Depreciation and Amortization

Technology & Analytics Solutions’ ~~costs~~cost of ~~revenue,~~revenues, exclusive of depreciation and amortization, increased ~~$68~~$20 million, or ~~9.4%~~2.5%, in the ~~third~~second quarter of ~~2021~~2022 over the same period in ~~2020.~~2021. This increase included a constant currency increase of approximately ~~$56~~$58 million, or ~~7.7%~~7.2%.

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

Technology & Analytics Solutions’ ~~costs~~cost of ~~revenue,~~revenues, exclusive of depreciation and amortization, increased ~~$367~~$42 million, or ~~17.9%~~2.6%, in the first ~~nine~~six months of ~~2021~~2022 over the same period in ~~2020.~~2021. This increase included a constant currency increase of approximately ~~$294~~$102 million, or ~~14.4%~~6.3%.

The constant currency increase for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was primarily related to an increase in compensation and related expenses to support revenue growth.

Selling, General and Administrative Expenses

Technology & Analytics Solutions’ selling, general and administrative expenses increased ~~$11~~$3 million, or ~~5.9%~~1.6%, in the ~~third~~second quarter of ~~2021~~2022 as compared to the same period in ~~2020,~~2021, which included a constant currency increase of approximately $9$17 million, or ~~4.8%~~8.8%.

Technology & Analytics Solutions’ selling, general and administrative expenses increased ~~$30~~$35 million, or ~~5.5%~~9.2%, in the first ~~nine~~six months of ~~2021~~2022 as compared to the same period in ~~2020,~~2021, which included a constant currency increase of approximately ~~$15~~$56 million, or ~~2.7%~~14.7%.

The constant currency increase for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was primarily related to an increase in compensation and related expenses.

~~Table of contents~~

Research & Development Solutions


		Three Months Ended September 30,				Change					Three Months Ended June 30,				Change
(in millions)	(in millions)	2021		2020		$		%		(in millions)	2022		2021		$		%
Revenues	Revenues	$	1,853	$	1,400	$	453	32.4	%	Revenues	$	1,950	$	1,891	$	59	3.1	%
Costs of revenue, exclusive of depreciation and amortization		1,291		925		366		39.6
Cost of revenues, exclusive of depreciation and amortization										Cost of revenues, exclusive of depreciation and amortization	1,348		1,355		(7)		(0.5)
Selling, general and administrative expenses	Selling, general and administrative expenses	198		184		14		7.6		Selling, general and administrative expenses	204		193		11		5.7
Segment profit	Segment profit	$	364	$	291	$	73	25.1	%	Segment profit	$	398	$	343	$	55	16.0	%


		Nine Months Ended September 30,				Change					Six Months Ended June 30,				Change
(in millions)	(in millions)	2021		2020		$		%		(in millions)	2022		2021		$		%
Revenues	Revenues	$	5,612	$	4,076	$	1,536	37.7	%	Revenues	$	3,884	$	3,759	$	125	3.3	%
Costs of revenue, exclusive of depreciation and amortization		3,967		2,811		1,156		41.1
Cost of revenues, exclusive of depreciation and amortization										Cost of revenues, exclusive of depreciation and amortization	2,670		2,676		(6)		(0.2)
Selling, general and administrative expenses	Selling, general and administrative expenses	576		544		32		5.9		Selling, general and administrative expenses	415		378		37		9.8
Segment profit	Segment profit	$	1,069	$	721	$	348	48.3	%	Segment profit	$	799	$	705	$	94	13.3	%

Backlog

Research & Development Solutions’ contracted backlog increased from ~~$22.6~~$24.8 billion as of December 31, ~~2020~~2021 to ~~$24.4~~$25.6 billion as of ~~September~~June 30, ~~2021~~2022 and we expect approximately ~~$6.9~~$7.0 billion of this backlog to convert to revenue in the next twelve months.

Revenues

Research & Development Solutions’ revenues were ~~$1,853~~$1,950 million in the ~~third~~second quarter of ~~2021,~~2022, an increase of ~~$453~~$59 million, or ~~32.4%~~3.1%, over the same period in ~~2020.~~2021. This increase was comprised of constant currency revenue ~~increase~~growth of approximately ~~$446~~$113 million, or ~~31.9%~~6.0%, reflecting revenue growth ~~across all regions.~~in the Europe and Africa and Asia-Pacific regions, partially offset by a decrease in COVID-19 related work in the Americas region.

Research & Development Solutions’ revenues were ~~$5,612~~$3,884 million in the first ~~nine~~six months of ~~2021,~~2022, an increase of ~~$1,536~~$125 million, or ~~37.7%~~3.3%, over the same period in ~~2020.~~2021. This increase was comprised of constant currency revenue ~~increase~~growth of approximately ~~$1,477~~$201 million, or ~~36.2%~~5.3%, reflecting revenue growth ~~across all regions.~~in the Europe and Africa and Asia-Pacific regions, partially offset by a decrease in COVID-19 related work in the Americas region.

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

The revenue growth for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was primarily the result of volume-related increases in clinical services and lab ~~testing, including incremental revenue from large COVID-19 vaccine clinical trials.~~testing.

~~Costs~~Cost of ~~Revenue,~~Revenues, exclusive of Depreciation and Amortization

Research & Development Solutions’ ~~costs~~cost of ~~revenue,~~revenues, exclusive of depreciation and amortization, ~~increased $366~~decreased $7 million, or ~~39.6%~~0.5%, in the ~~third~~second quarter of ~~2021~~2022 over the same period in ~~2020.~~2021. This ~~increase~~decrease included a constant currency increase of approximately ~~$359~~$70 million, or ~~38.8%~~5.2%.

Research & Development Solutions’ ~~costs~~cost of ~~revenue,~~revenues, exclusive of depreciation and amortization, ~~increased $1,156~~decreased $6 million, or ~~41.1%~~0.2%, in the first ~~nine~~six months of ~~2021~~2022 over the same period in ~~2020.~~2021. This ~~increase~~decrease included a constant currency increase of approximately ~~$1,076~~$106 million, or ~~38.3%~~4.0%.

Selling, General and Administrative Expenses

Research & Development Solutions’ selling, general and administrative expenses increased ~~$14~~$11 million, or ~~7.6%~~5.7%, in the ~~third~~second quarter of ~~2021~~2022 as compared to the same period in ~~2020, and~~2021, which included a constant currency increase of approximately ~~$12~~$17 million, or ~~6.5%~~8.8%.

~~Table of contents~~

Research & Development Solutions’ selling, general and administrative expenses increased ~~$32~~$37 million, or ~~5.9%~~9.8%, in the first ~~nine~~six months of ~~2021~~2022 as compared to the same period in ~~2020, and~~2021, which included a constant currency increase of approximately ~~$23~~$46 million, or ~~4.2%~~12.2%.

The constant currency increase for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was primarily related to an increase in compensation and related expenses.

Contract Sales & Medical Solutions


		Three Months Ended September 30,				Change					Three Months Ended June 30,				Change
(in millions)	(in millions)	2021		2020		$		%		(in millions)	2022		2021		$		%
Revenues	Revenues	$	201	$	179	$	22	12.3	%	Revenues	$	183	$	194	$	(11)	(5.7)	%
Costs of revenue, exclusive of depreciation and amortization		167		148		19		12.8
Cost of revenues, exclusive of depreciation and amortization										Cost of revenues, exclusive of depreciation and amortization	155		160		(5)		(3.1)
Selling, general and administrative expenses	Selling, general and administrative expenses	14		14		—		—		Selling, general and administrative expenses	15		14		1		7.1
Segment profit	Segment profit	$	20	$	17	$	3	17.6	%	Segment profit	$	13	$	20	$	(7)	(35.0)	%


		Nine Months Ended September 30,				Change					Six Months Ended June 30,				Change
(in millions)	(in millions)	2021		2020		$		%		(in millions)	2022		2021		$		%
Revenues	Revenues	$	588	$	552	$	36	6.5	%	Revenues	$	378	$	387	$	(9)	(2.3)	%
Costs of revenue, exclusive of depreciation and amortization		487		469		18		3.8
Cost of revenues, exclusive of depreciation and amortization										Cost of revenues, exclusive of depreciation and amortization	322		320		2		0.6
Selling, general and administrative expenses	Selling, general and administrative expenses	41		44		(3)		(6.8)		Selling, general and administrative expenses	31		27		4		14.8
Segment profit	Segment profit	$	60	$	39	$	21	53.8	%	Segment profit	$	25	$	40	$	(15)	(37.5)	%

Revenues

Contract Sales & Medical Solutions’ revenues were ~~$201~~$183 million in the ~~third~~second quarter of ~~2021, an increase~~2022, a decrease of ~~$22~~$11 million, or ~~12.3%~~5.7%, over the same period in ~~2020.~~2021. This ~~increase~~decrease included a constant currency revenue ~~increase~~growth of approximately ~~$23~~$4 million, or ~~12.8%.~~

2.1%, reflecting revenue growth in the Americas and Europe and Africa regions.

Contract Sales & Medical Solutions’ revenues were ~~$588~~$378 million in the first ~~nine~~six months of ~~2021, an increase~~2022, a decrease of ~~$36~~$9 million, or ~~6.5%~~2.3%, over the same period in ~~2020.~~2021. This increase included a constant currency revenue ~~increase~~growth of approximately ~~$28~~$15 million, or ~~5.1%.~~3.9%, reflecting revenue growth in the Americas and Europe and Africa regions.

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

The constant currency revenue growth for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was largely due to a volume ~~increase~~increases in ~~the Americas and Asia-Pacific regions.~~services performed.

~~Costs~~Cost of ~~Revenue,~~Revenues, exclusive of Depreciation and Amortization

Contract Sales & Medical Solutions’ ~~costs~~cost of ~~revenue,~~revenues, exclusive of depreciation and amortization, ~~increased $19~~decreased $5 million, or ~~12.8%~~3.1%, in the ~~third~~second quarter of ~~2021~~2022 as compared to the same period in ~~2020.~~2021. This decrease included a constant currency increase of approximately $6 million, or 3.8%.

Contract Sales & Medical Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $2 million, or 0.6%, in the first six months of 2022 as compared to the same period in 2021. This increase included a constant currency increase of approximately $21 million, or ~~14.2%.~~

Contract Sales & Medical Solutions’ costs of revenue, exclusive of depreciation and amortization, increased $18 million, or 3.8%, in the first nine months of 2021 as compared to the same period in 2020. This increase included a constant currency increase of approximately $12 million, or 2.6%6.6%.

Selling, General and Administrative Expenses

Contract Sales & Medical Solutions’ selling, general and administrative expenses ~~remained consistent~~increased $1 million, or 7.1%, in the ~~third~~second quarter of ~~2021~~2022 as compared to the same period in ~~2020.~~

~~Table~~2021, which included a constant currency increase of ~~contents~~

approximately $1 million, or 7.1%.

Contract Sales & Medical Solutions’ selling, general and administrative expenses ~~decreased $(3)~~increased $4 million, or ~~(6.8)%~~14.8%, in the first ~~nine~~six months of ~~2021~~2022 as compared to the same period in ~~2020. This decrease~~2021, which included a constant currency ~~decrease~~increase of approximately ~~$(4)~~$5 million, or ~~(9.1)%~~18.5%.

The constant currency ~~decrease~~increase for the ~~nine~~three and six months ended ~~September~~June 30, ~~2021~~2022 was primarily related to ~~a decrease~~an increase in compensation and related expenses and IT related expenses.

Liquidity and Capital Resources

Overview

We assess our liquidity in terms of our ability to generate cash to fund our operating, investing and financing activities. Our principal source of liquidity is operating cash flows. In addition to operating cash flows, other significant factors that affect our overall management of liquidity include: capital expenditures, acquisitions, investments, debt service requirements, ~~dividends,~~ equity repurchases, adequacy of our revolving credit and ~~other credit~~receivables financing facilities, and access to the capital markets.

We manage our worldwide cash requirements by monitoring the funds available among our subsidiaries and determining the extent to which those funds can be accessed on a cost-effective basis. The repatriation of cash balances from certain of our subsidiaries could have adverse tax consequences; however, those balances are generally available without legal restrictions to fund ordinary business operations. 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 ~~$1,470~~$1,428 million as of ~~September~~June 30, ~~2021~~2022 ($~~600~~672 million of which was in the United States), ~~a decrease~~an increase from ~~$1,814~~$1,366 million as of December 31, ~~2020.~~2021.

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

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 ~~other credit~~receivables financing facilities will enable us to fund our operating requirements, ~~and~~ capital expenditures, contractual obligations, and meet debt obligations for at least the next 12 months. We regularly evaluate our debt arrangements, as well as market conditions, and from time to time we may explore opportunities to modify our existing debt arrangements or pursue additional financing arrangements that could result in the issuance of new debt securities by us or our affiliates. We may use our existing cash, cash generated from operations or dispositions of assets or businesses and/or proceeds from any new financing arrangements or issuances of debt or equity securities to repay or reduce some of our outstanding obligations, to repurchase shares from our stockholders or for other purposes. As part of our ongoing business strategy, we also continually evaluate new acquisition, expansion and investment possibilities or other strategic growth opportunities, as well as potential dispositions of assets or businesses, as appropriate, including dispositions that may cause us to recognize a loss on certain assets. Should we elect to pursue any such transaction, we may seek to obtain debt or equity financing to facilitate those activities. Our ability to enter into any such potential transactions and our use of cash or proceeds is limited to varying degrees by the terms and restrictions contained in our existing debt arrangements. We cannot provide assurances that we will be able to complete any such financing arrangements or other transactions on favorable terms or at all.

Equity Repurchase Program

On February 10, 2022 the Board increased the stock repurchase authorization under the Repurchase Program with respect to the repurchase of the Company's common stock by an additional $2.0 billion, which increased the total amount that has been authorized under the Repurchase Program to $9.725 billion since the plan’s inception in October 2013. The Repurchase Program does not obligate the Company to repurchase any particular amount of common stock, and it may be modified, extended, suspended or discontinued at any time.

During the ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, we repurchased ~~973,313~~4.5 million shares of our common stock for ~~$221~~$993 million under the Repurchase Program. ~~See Note 9 to our condensed consolidated financial statements included elsewhere in this Quarterly Report~~These amounts include approximately 0.5 million of shares valued at approximately $100 million which were accrued for as of June 30, 2022 based on ~~Form 10-Q for additional details regarding~~ the ~~Repurchase Program.~~

terms of the transactions. As of ~~September~~June 30, ~~2021,~~2022, we have remaining authorization to repurchase up to approximately ~~$0.7~~$1.5 billion 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.

30Debt

~~Table~~As of ~~contents~~June 30, 2022, we had $12.8 billion of total indebtedness, excluding

~~Debt~~$1,500 million of additional available borrowings under our revolving credit facility. Our long-term debt arrangements contain customary restrictive covenants and, as of June 30, 2022, we believe we were in compliance with our restrictive covenants in all material respects.

Senior Secured Credit Facilities

On ~~August 25, 2021, we~~June 16, 2022, the Company entered into Amendment No. ~~9 (the “Amendment”)~~1 to the Company’s ~~Fourth Amended and Restated~~ Credit Agreement ~~(the “Prior Credit Agreement,” and together with~~to borrow $1,250 million in Additional Term A Loans. The proceeds from the ~~Amendment, the "Fifth Amended and Restated Credit Agreement")~~Additional Term A Loans were used to ~~(i) extend the maturity~~repay approximately $950 million of ~~our~~outstanding revolving credit ~~facility to 2026, (ii) refinance our existing term A~~ loans ~~with a new class of term A loans that mature in 2026 and (iii) add IQVIA RDS Inc. as a borrower~~ under the Company's senior secured credit ~~facilities. In connection with~~facilities and for general corporate purposes. See Note 7 to our condensed consolidated financial statements included elsewhere in this ~~Amendment, we recognized a $1 million loss~~Quarterly Report on ~~extinguishment of debt, which includes fees and related expenses.~~Form 10-Q for additional details regarding our credit arrangements.

As of ~~September~~June 30, ~~2021,~~2022, the Company’s Fifth Amended and Restated Credit Agreement provided financing through ~~several~~the senior secured credit facilities ~~(collectively, the “senior secured credit facilities”)~~ of up to approximately ~~$7.2 billion,~~$8,173 million, which consisted of ~~$5.7 billion~~$6,673 million principal amounts of debt outstanding, ~~(as detailed in the table above),~~ and ~~$1.5 billion~~$1,500 million of available borrowing capacity on the revolving credit facility and standby letters of credit.

~~On September 14, 2021, we repaid $250 million of our term B loans under the senior secured credit facilities using the proceeds from the increased loans under our receivables financing facility.~~

Receivables Financing Facility

On August 13, 2021, the Company amended its receivables financing facility (the “Receivables Amendment”) to extend the term of the facility to October 1, 2024 and to increase the size of the facility to $550 million from $300 million. Under the receivables financing facility, certain of our accounts receivable are sold on a non-recourse basis by certain of our consolidated subsidiaries (each, an “Originator”) to another of our consolidated subsidiaries, a bankruptcy-remote special purpose entity (the “SPE”). The SPE obtained a term loan and revolving loan commitment from a third-party lender, secured by liens on the assets of the SPE, to finance the purchase of the accounts receivable, which includes a $440 million term loan and a $110 million revolving loan commitment. Pursuant to the Receivables Amendment, we also added three additional subsidiaries as Originators. As of ~~September~~June 30, ~~2021,~~2022, no additional amounts of revolving ~~loans~~loan commitments were available under the receivables financing facility.

~~Senior Notes~~

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

On March 3, 2021, we completed the issuance and sale of €1,450,000,000 in gross proceeds of the Issuer's (i) €550,000,000 aggregate principal amount of its 1.750% Senior Notes due 2026 (the “2026 Notes”) and (ii) €900,000,000 aggregate principal amount of its 2.250% Senior Notes due 2029 (the “2029 Notes” and, together with the 2026 Notes, the “Notes”). The proceeds from the Notes offering were used to redeem all of the Issuer’s outstanding 3.250% senior notes due 2025 (the “3.250% Notes”), including the payment of premiums in respect thereof and to pay fees and expenses related to the Notes offering. ~~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.~~

~~As of September 30, 2021, we had $12.2 billion of total indebtedness, excluding $1.5 billion of additional available borrowings under our revolving credit facility.~~

~~Our long-term debt arrangements contain customary restrictive covenants and, as of September 30, 2021, we believe we were in compliance with our restrictive covenants in all material respects.~~

~~Nine~~Six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021

Cash Flow from Operating Activities


		Nine Months Ended September 30,					Six Months Ended June 30,
(in millions)	(in millions)	2021		2020		(in millions)	2022		2021
Net cash provided by operating activities	Net cash provided by operating activities	$	2,250	$	1,209	Net cash provided by operating activities	$	837	$	1,406

Cash provided by operating activities ~~increased $1,041~~decreased $569 million during the first ~~nine~~six months of ~~2021~~2022 as compared to the same period in ~~2020.~~2021. The ~~increase~~decrease was primarily due to ~~higher cash related net income ($682 million), an increase~~a decrease in cash collections from unearned income ($~~445~~286 million) ~~and higher cash from other operating assets and liabilities ($24 million)~~, ~~offset by~~ a decrease in cash from accounts receivable and unbilled services ($~~110~~338 million) and less cash from other operating assets and liabilities ($48 million), offset by higher cash related net income ($103 million).

~~Table of contents~~

Cash Flow from Investing Activities


		Nine Months Ended September 30,					Six Months Ended June 30,
(in millions)	(in millions)	2021		2020		(in millions)	2022		2021
Net cash used in investing activities	Net cash used in investing activities	$	(1,456)	$	(560)	Net cash used in investing activities	$	(812)	$	(361)

Cash used in investing activities increased ~~$896~~$451 million during the first ~~nine~~six months of ~~2021~~2022 as compared to the same period in ~~2020,~~2021, primarily driven by more cash used for acquisitions of businesses ($~~876~~399 million), acquisitions for property, equipment, and software ($1644 million) and ~~lower net payments received from~~investments in unconsolidated affiliates ($117 million), ~~offset by~~as well as less net proceeds from sale of equity securities ($79 million), offset by less purchases of marketable securities, net ($5 million) and other investing activities ($3 million).

Cash Flow from Financing Activities


		Nine Months Ended September 30,					Six Months Ended June 30,
(in millions)	(in millions)	2021		2020		(in millions)	2022		2021
Net cash used in financing activities		$	(1,097)	$	(19)
Net cash provided by (used in) financing activities						Net cash provided by (used in) financing activities	$	115	$	(1,031)

Cash ~~used in~~provided by financing activities increased ~~$1,078~~$1,146 million during the first ~~nine~~six months of ~~2021~~2022 as compared to the same period in ~~2020,~~2021, primarily due to ~~an increase~~a decrease in debt and principal payments ($~~1,276~~1,747 million), the absence of cash payments for the Company's acquisition of Quest's non-controlling interest in Q2 Solutions ($~~758~~756 million)~~, an increase~~ and a decrease in cash payments on contingent consideration and deferred purchase price accruals ($1917 million), offset by an increase in cash used to repurchase common stock ($786 million), a decrease in cash provided by proceeds from debt issuances, net of debt issuance costs ($474 million), a decrease in cash proceeds from revolving credit facilities, net of repayments ($100 million) and an increase in cash payments related to employee stock option plans ($8 million), offset by a decrease in cash used in repayments of revolving credit facilities, net of proceeds ($470 million), a decrease in cash used to repurchase common stock ($144 million), an increase in cash provided by proceeds from debt issuances, net of repayments and debt issuance costs ($353 million), and a decrease in cash distributions to non-controlling interests ($1614 million).

Off-Balance Sheet Arrangements

We do not have any material off-balance sheet arrangements.

Contractual Obligations and Commitments

We have various contractual obligations, which are recorded as liabilities in our consolidated financial statements.

~~With the exception of the financing transactions disclosed in Note 7 to the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q, there~~There have been no material changes, outside of the ordinary course of business, to our contractual obligations as previously disclosed in our ~~2020~~2021 Form 10-K.

Application of Critical Accounting Policies

There have been no material changes to our critical accounting policies as previously disclosed in our ~~2020~~2021 Form 10-K.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes to our quantitative and qualitative disclosures about market risk as compared to the quantitative and qualitative disclosures about market risk described in our ~~2020~~2021 Form 10-K.

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

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)) under the Securities Exchange Act of 1934, as amended (“Exchange Act”) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, our CEO and CFO have concluded that as of such date, our disclosure controls and procedures were effective.

~~Table of contents~~

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting identified in management’s evaluation pursuant to Rules 13a-15(d) or 15d-15(d) of the Exchange Act during the period covered by this Quarterly Report on Form 10-Q that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II—OTHER INFORMATION

Item 1. Legal Proceedings

We are party to legal proceedings incidental to our business. While the outcome of these matters could differ from management’s expectations, we do not believe that the resolution of these matters is reasonably likely to have a material adverse effect to our financial statements.

Information pertaining to legal proceedings can be found in Note 8 to the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q and is incorporated by reference herein.

Item 1A. Risk Factors

For a discussion of the risks relating to our business, see Part I—Item 1A—“Risk Factors” of our ~~2020~~2021 Form 10-K. There have been no material changes from the risk factors previously disclosed in our ~~2020~~2021 Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Recent Sales of Unregistered Securities

Not applicable.

Use of Proceeds from Registered Securities

Not applicable.

Purchases of Equity Securities by the Issuer

On October 30, 2013, ~~our~~the Board ~~of Directors (the “Board”)~~ approved an equity repurchase program (the “Repurchase Program”) authorizing the repurchase of up to $125.0 million of either our common stock or vested in-the-money employee stock options, or a combination thereof. ~~Our~~The Board increased the stock repurchase authorization under the Repurchase Program with respect to the repurchase of ~~our~~the Company's common stock by $600 million, $1.5 billion, $2$2.0 billion, $1.5 billion, and $2$2.0 billion in 2015, 2016, 2017, 2018, and 2019 ~~respectively,~~respectively. On February 10, 2022, the Board increased the stock repurchase authorization under 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 ~~$7.725~~$9.725 billion. The Repurchase Program does not obligate us to repurchase any particular amount of common stock or vested in-the-money employee stock options, and it may be modified, extended, suspended or discontinued at any time. The timing and amount of repurchases are determined by our management based on a variety of factors such as the market price of our common stock, our corporate requirements, and overall market conditions. Purchases of our common stock may be made in open market transactions effected through a broker-dealer at prevailing market prices, in block trades, or in privately negotiated transactions. The Repurchase Program for common stock does not have an expiration date. 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.

From inception of the Repurchase Program through ~~September~~June 30, ~~2021,~~2022, we have repurchased a total of ~~$6.6~~$7.8 billion of our securities under the Repurchase Program.

During the ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, we repurchased ~~973,313~~4.5 million shares of our common stock for ~~$221~~$993 million under the Repurchase Program. These amounts include approximately 0.5 million of shares valued at approximately $100 million which were accrued for as of June 30, 2022 based on the terms of the transactions. See Note 9 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional details regarding the Repurchase Program.

As of ~~September~~June 30, ~~2021,~~2022, we have remaining authorization to repurchase up to approximately ~~$0.7~~$1.5 billion of our common stock under the Repurchase Program.

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

Since the merger between Quintiles and IMS Health, we have repurchased ~~66.6~~71.8 million shares of our common stock at an average market price per share of ~~$99.19~~$108.20 for an aggregate purchase price of ~~$6.6~~$7.8 billion both under and outside of the Repurchase Program. This includes shares withheld from employees to satisfy certain tax obligations due in connection with grants of stock under the Quintiles IMS Holdings, Inc. 2017 Incentive and Stock Award Plan (the “Plan”). The Plan provides for the withholding of shares to satisfy tax obligations. It does not specify a maximum number of shares that can be withheld for this purpose. The shares of common stock withheld to satisfy tax withholding obligations may be deemed to be “issuer purchases” of shares that are required to be disclosed pursuant to this Item.

~~Table of contents~~

The following table summarizes the monthly equity repurchase program activity for the three months ended ~~September~~June 30, ~~2021~~2022 and the approximate dollar value of shares that may yet be purchased pursuant to the Repurchase Program.

(in millions, except per share data) Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs
July 1, 2021 — July 31, 2021 0.1 $ 244.30 0.1 $ 797
August 1, 2021 — August 31, 2021 0.1 $ 248.07 0.1 $ 762
September 1, 2021 — September 30, 2021 0.3 $ 242.04 0.3 $ 697
0.5 0.5


(in millions, except per share data)	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs
April 1, 2022 — April 30, 2022	0.2	$	219.32	0.2	$	2,070.3
May 1, 2022 — May 31, 2022	1.3	$	208.58	1.3	$	1,807.8
June 1, 2022 — June 30, 2022	1.3	$	210.50	1.3	$	1,530.3
	2.8			2.8

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Item 6. Exhibits

The exhibits below are filed or furnished as a part of this report and are incorporated herein by reference.

Incorporated by Reference
Exhibit
Number Exhibit Description Filed
Herewith Form File No. Exhibit Filing Date
10.1
Amendment No. 9, dated August 25, 2021, to Fourth Amended and Restated Credit Agreement, dated October 3, 2016, among IQVIA Inc., IQVIA Holdings Inc., IQVIA RDS Inc., IQVIA AG, IQVIA Solutions Japan K.K., the other guarantors party thereto, Bank of America, N.A. as administrative agent and as collateral agent, and the Lenders party thereto.
8-K 001-35907 10.1 August 25, 2021
31.1
Certification of Chief Executive Officer, pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
X
31.2
Certification of Executive Vice President and Chief Financial Officer, pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
X
32.1
Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
X
32.2
Certification of Executive Vice President and Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
X
101 Interactive Data Files Pursuant to Rule 405 of Regulation S-T: (i) Condensed Consolidated Statements of Income (unaudited), (ii) Condensed Consolidated Statements of Comprehensive Income (unaudited), (iii) Condensed Consolidated Balance Sheets (unaudited), (iv) Condensed Consolidated Statements of Cash Flows (unaudited), (v) Condensed Consolidated Statements of Stockholders’ Equity (unaudited) and (vi) Notes to Condensed Consolidated Financial Statements (unaudited). The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. X
104 Cover Page Interactive Data File. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. X

Incorporated by Reference

Exhibit
Number

Exhibit Description

Filed
Herewith

Form

File No.

Exhibit

Filing Date

10.1

Amendment No. 1, dated June 16, 2022, to Fifth Amended and Restated Credit Agreement. dated August 25, 2021, among IQVIA Inc., IQVIA Holdings Inc., IQVIA RDS Inc., IQVIA AG, IQVIA Solutions Japan K.K., the other guarantors party thereto, Bank of America, N.A. as administrative agent and as collateral agent, and the Lenders party thereto.

8-K

001-35907

10.1

June 16, 2022

31.1

Certification of Chief Executive Officer, pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2

Certification of Executive Vice President and Chief Financial Officer, pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1

Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2

Certification of Executive Vice President and Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101

Interactive Data Files Pursuant to Rule 405 of Regulation S-T: (i) Condensed Consolidated Statements of Income (unaudited), (ii) Condensed Consolidated Statements of Comprehensive Income (unaudited), (iii) Condensed Consolidated Balance Sheets (unaudited), (iv) Condensed Consolidated Statements of Cash Flows (unaudited), (v) Condensed Consolidated Statements of Stockholders’ Equity (unaudited) and (vi) Notes to Condensed Consolidated Financial Statements (unaudited). The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

104

Cover Page Interactive Data File. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Quarterly Report on Form 10-Q to be signed on its behalf by the undersigned, thereunto duly authorized on ~~October~~July 22, ~~2021.~~2022.


			IQVIA HOLDINGS INC.

			/s/ Ronald E. Bruehlman
			Ronald E. Bruehlman Executive Vice President and Chief Financial Officer (On behalf of the Registrant and as Principal Financial Officer)

3736


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2021		2020		2021		2020
Net income	$	261	$	108	$	653	$	178
Comprehensive income adjustments:
Unrealized (losses) gains on derivative instruments, net of income tax expense (benefit) of $—, $(8), $—, $(11)	(4)		(1)		—		(33)
Foreign currency translation, net of income tax (benefit) expense of $28, $(54), $66, $(83)	(117)		130		(237)		20
Reclassification adjustments:
Losses on derivative instruments included in net income, net of income tax benefit of $1, $1, $2, $2	3		2		7		6
Comprehensive income	143		239		423		171
Comprehensive income attributable to non-controlling interests	—		(11)		(5)		(17)
Comprehensive income attributable to IQVIA Holdings Inc.	$	143	$	228	$	418	$	154


(in millions)	Common Stock Shares	Treasury Stock Shares	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Non- controlling Interests		Total
Balance, December 31, 2019	253.0	(60.7)	$	3	$	11,046	$	998	$	(5,733)	$	(311)	$	260	$	6,263
Issuance of common stock	0.8	—	—		(44)		—		—		—		—		(44)
Repurchase of common stock	—	(2.1)	—		—		—		(332)		—		—		(332)
Stock-based compensation	—	—	—		7		—		—		—		—		7
Distributions to non-controlling interests, net	—	—	—		—		—		—		—		(5)		(5)
Net income	—	—	—		—		82		—		—		9		91
Unrealized losses on derivative instruments, net of tax	—	—	—		—		—		—		(39)		—		(39)
Foreign currency translation, net of tax	—	—	—		—		—		—		(151)		(4)		(155)
Reclassification adjustments, net of tax	—	—	—		—		—		—		16		—		16
Balance, March 31, 2020	253.8	(62.8)	$	3	$	11,009	$	1,080	$	(6,065)	$	(485)	$	260	$	5,802
Issuance of common stock	0.3	—	—		1		—		—		—		—		1
Repurchase of common stock	—	—	—		—		—		—		—		—		—
Stock-based compensation	—	—	—		30		—		—		—		—		30
Net income	—	—	—		—		(23)		—		—		2		(21)
Unrealized gains on derivative instruments, net of tax	—	—	—		—		—		—		7		—		7
Foreign currency translation, net of tax	—	—	—		—		—		—		46		(1)		45
Reclassification adjustments, net of tax	—	—	—		—		—		—		(12)		—		(12)
Balance, June 30, 2020	254.1	(62.8)	$	3	$	11,040	$	1,057	$	(6,065)	$	(444)	$	261	$	5,852
Issuance of common stock	0.4	—	—		(3)		—		—		—		—		(3)
Stock-based compensation	—	—	—		30		—		—		—		—		30
Distributions to non-controlling interest, net	—	—	—		—		—		—		—		(11)		(11)
Net income	—	—	—		—		101		—		—		7		108
Unrealized losses on derivative instruments, net of tax	—	—	—		—		—		—		(1)		—		(1)
Foreign currency translation, net of tax	—	—	—		—		—		—		126		4		130
Reclassification adjustments, net of tax	—	—	—		—		—		—		2		—		2
Balance, September 30, 2020	254.5	(62.8)	$	3	$	11,067	$	1,158	$	(6,065)	$	(317)	$	261	$	6,107



	Nine Months Ended September 30, 2020
(in millions)		Technology & Analytics Solutions		Research & Development Solutions		Contract Sales & Medical Solutions		Total
Revenues:
Americas		$	1,747	$	1,826	$	247	$	3,820
Europe and Africa		1,254		1,214		134		2,602
Asia-Pacific		432		1,036		171		1,639
Total revenues		$	3,433	$	4,076	$	552	$	8,061


(in millions)
Remainder of 2021	$	23
2022	91
2023	91
2024	2,419
2025	2,714
Thereafter	6,898
	$	12,236


(in millions)	Severance and Related Costs		Facility Exit Costs		Total
Balance as of December 31, 2020	$	51	$	2	$	53
Expense, net of reversals	15		—		15
Payments	(35)		(1)		(36)
Foreign currency translation and other	(2)		—		(2)
Balance as of September 30, 2021	$	29	$	1	$	30



Nine Months Ended September 30, 2021 and 2020
	Segment Revenues				Segment Profit
(in millions)	2021		2020		2021		2020
Technology & Analytics Solutions	$	4,038	$	3,433	$	1,044	$	836
Research & Development Solutions	5,612		4,076		1,069		721
Contract Sales & Medical Solutions	588		552		60		39
Total	10,238		8,061		2,173		1,596
General corporate and unallocated					(226)		(161)
Depreciation and amortization					(1,002)		(943)
Restructuring costs					(15)		(50)
Consolidated	$	10,238	$	8,061	$	930	$	442