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 March 31, 2023

or

☐ 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)

2400 Ellis Rd., 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	185,549,128	shares outstanding	as of April 21, 2023

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 months ended March 31, 2023 and 2022	3
	Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2023 and 2022	4
	Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022	5
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2022	6
	Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2023 and 2022	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	30
PART II—OTHER INFORMATION		31
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 6.	Exhibits	33
SIGNATURES		34

2

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

IQVIA HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

	Three Months Ended March 31,
(in millions, except per share data)	2023		2022
Revenues	$	3,652	$	3,568
Cost of revenues, exclusive of depreciation and amortization	2,398		2,323
Selling, general and administrative expenses	513		488
Depreciation and amortization	253		255
Restructuring costs	17		7
Income from operations	471		495
Interest income	(6)		(1)
Interest expense	141		86
Other (income) expense, net	(26)		10
Income before income taxes and equity in losses of unconsolidated affiliates	362		400
Income tax expense	71		71
Income before equity in losses of unconsolidated affiliates	291		329
Equity in losses of unconsolidated affiliates	(2)		(4)
Net income	$	289	$	325
Earnings per share attributable to common stockholders:
Basic	$	1.56	$	1.71
Diluted	$	1.53	$	1.68
Weighted average common shares outstanding:
Basic	185.8		190.0
Diluted	188.6		193.4

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

3

IQVIA HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

	Three Months Ended March 31,
(in millions)	2023		2022
Net income	$	289	$	325
Comprehensive income adjustments:
Unrealized gains on derivative instruments, net of income tax expense of $3, $9	10		30
Defined benefit plan adjustments, net of income tax expense of $—, $—	1		(2)
Foreign currency translation, net of income tax (benefit) expense of $(29), $27	10		(40)
Reclassification adjustments:
Reclassifications on derivative instruments included in net income, net of income tax (expense) benefit of $(8), $—	(25)		(1)
Comprehensive income	$	285	$	312

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

4

IQVIA HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in millions, except per share data)	March 31, 2023		December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	1,494	$	1,216
Trade accounts receivable and unbilled services, net	3,063		2,917
Prepaid expenses	165		151
Income taxes receivable	42		43
Investments in debt, equity and other securities	104		93
Other current assets and receivables	460		561
Total current assets	5,328		4,981
Property and equipment, net	520		532
Operating lease right-of-use assets	325		331
Investments in debt, equity and other securities	102		68
Investments in unconsolidated affiliates	99		94
Goodwill	14,015		13,921
Other identifiable intangibles, net	4,757		4,820
Deferred income taxes	125		118
Deposits and other assets, net	468		472
Total assets	$	25,739	$	25,337
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	3,143	$	3,316
Unearned income	1,827		1,797
Income taxes payable	187		161
Current portion of long-term debt	1,343		152
Other current liabilities	157		152
Total current liabilities	6,657		5,578
Long-term debt, less current portion	11,833		12,595
Deferred income taxes	421		464
Operating lease liabilities	255		264
Other liabilities	641		671
Total liabilities	19,807		19,572
Commitments and contingencies (Note 8)
Stockholders’ equity:
Common stock and additional paid-in capital, 400.0 shares authorized as of March 31, 2023 and December 31, 2022, $0.01 par value, 256.9 shares issued and 185.5 shares outstanding as of March 31, 2023; 256.4 shares issued and 185.7 shares outstanding as of December 31, 2022	10,909		10,898
Retained earnings	3,623		3,334
Treasury stock, at cost, 71.4 and 70.7 shares as of March 31, 2023 and December 31, 2022, respectively	(7,869)		(7,740)
Accumulated other comprehensive loss	(731)		(727)
Total stockholders’ equity	5,932		5,765
Total liabilities and stockholders’ equity	$	25,739	$	25,337

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

5

IQVIA HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	Three Months Ended March 31,
(in millions)	2023		2022
Operating activities:
Net income	$	289	$	325
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	253		255
Amortization of debt issuance costs and discount	4		4
Stock-based compensation	75		30
Losses from unconsolidated affiliates	2		4
(Gain) loss on investments, net	(4)		11
Benefit from deferred income taxes	(27)		(10)
Changes in operating assets and liabilities:
Change in accounts receivable, unbilled services and unearned income	(107)		54
Change in other operating assets and liabilities	(68)		(165)
Net cash provided by operating activities	417		508
Investing activities:
Acquisition of property, equipment and software	(164)		(177)
Acquisition of businesses, net of cash acquired	(18)		(430)
Purchases of marketable securities, net	(4)		(3)
Investments in unconsolidated affiliates, net of payments received	(7)		(6)
Investments in debt and equity securities	(36)		—
Other	7		3
Net cash used in investing activities	(222)		(613)
Financing activities:
Repayment of debt and principal payments on finance leases	(39)		(24)
Proceeds from revolving credit facility	475		950
Repayment of revolving credit facility	(100)		(300)
Payments related to employee stock option plans	(58)		(67)
Repurchase of common stock	(129)		(403)
Contingent consideration and deferred purchase price payments	(62)		(12)
Net cash provided by financing activities	87		144
Effect of foreign currency exchange rate changes on cash	(4)		(18)
Increase in cash and cash equivalents	278		21
Cash and cash equivalents at beginning of period	1,216		1,366
Cash and cash equivalents at end of period	$	1,494	$	1,387

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

6

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 (Loss) Income		Total
Balance, December 31, 2022	256.4	(70.7)	$	3	$	10,895	$	3,334	$	(7,740)	$	(727)	$	5,765
Issuance of common stock	0.5	—	—		(58)		—		—		—		(58)
Repurchase of common stock	—	(0.7)	—		—		—		(129)		—		(129)
Stock-based compensation	—	—	—		69		—		—		—		69
Net income	—	—	—		—		289		—		—		289
Unrealized gains on derivative instruments, net of tax	—	—	—		—		—		—		10		10
Defined benefit plan adjustments, net of tax	—	—	—		—		—		—		1		1
Foreign currency translation, net of tax	—	—	—		—		—		—		10		10
Reclassification adjustments, net of tax	—	—	—		—		—		—		(25)		(25)
Balance, March 31, 2023	256.9	(71.4)	$	3	$	10,906	$	3,623	$	(7,869)	$	(731)	$	5,932

(in millions)	Common Stock Shares	Treasury Stock Shares	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive (Loss) Income		Total
Balance, December 31, 2021	255.8	(65.2)	$	3	$	10,774	$	2,243	$	(6,572)	$	(406)	$	6,042
Issuance of common stock	0.4	—	—		(67)		—		—		—		(67)
Repurchase of common stock	—	(1.7)	—		—		—		(403)		—		(403)
Stock-based compensation	—	—	—		35		—		—		—		35
Net income	—	—	—		—		325		—		—		325
Unrealized gains on derivative instruments, net of tax	—	—	—		—		—		—		30		30
Defined benefit plan adjustments, net of tax	—	—	—		—		—		—		(2)		(2)
Foreign currency translation, net of tax	—	—	—		—		—		—		(40)		(40)
Reclassification adjustments, net of tax	—	—	—		—		—		—		(1)		(1)
Balance, March 31, 2022	256.2	(66.9)	$	3	$	10,742	$	2,568	$	(6,975)	$	(419)	$	5,919

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

7

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 87,000 employees, the Company 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, 2023. 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, 2022. The balance sheet as of December 31, 2022 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 September 2022, the Financial Accounting Standards Board ("FASB") issued new accounting guidance, Accounting Standards Update ("ASU") 2022-04, Liabilities - Supplier Finance Programs, to enhance the transparency of supplier finance programs. The amendments in this ASU address investor and other financial statement user requests for additional information about the use of supplier finance programs by the buyer party to understand the effect of those programs on an entity's working capital, liquidity, and cash flows. The Company adopted this new accounting guidance effective January 1, 2023. The adoption of this new accounting guidance did not have a material effect on the Company's disclosures within the consolidated financial statements.

8

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 months ended March 31, 2023 and 2022:

	Three Months Ended March 31, 2023
(in millions)		Technology & Analytics Solutions		Research & Development Solutions		Contract Sales & Medical Solutions		Total
Revenues:
Americas		$	735	$	986	$	80	$	1,801
Europe and Africa		556		491		47		1,094
Asia-Pacific		153		549		55		757
Total revenues		$	1,444	$	2,026	$	182	$	3,652

	Three Months Ended March 31, 2022
(in millions)		Technology & Analytics Solutions		Research & Development Solutions		Contract Sales & Medical Solutions		Total
Revenues:
Americas		$	681	$	946	$	91	$	1,718
Europe and Africa		596		507		46		1,149
Asia-Pacific		162		481		58		701
Total revenues		$	1,439	$	1,934	$	195	$	3,568

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

Transaction Price Allocated to the Remaining Performance Obligations

As of March 31, 2023, approximately $31.4 billion of revenues are expected to be recognized in the future from remaining performance obligations. The Company expects to recognize revenues on approximately 30% of these remaining performance obligations over the next twelve months, on approximately 80% over the next five years, with the balance recognized thereafter. Most of the Company's remaining performance obligations where revenues are expected to be recognized beyond the next twelve months are for service contracts for clinical research in the Company's Research & Development Solutions segment. The customer contract transaction price allocated to the remaining performance obligations differs from backlog in that it does not include wholly unperformed contracts under which the customer has a unilateral right to cancel the arrangement.

3. Trade Accounts Receivable, Unbilled Services and Unearned Income

Trade accounts receivables and unbilled services consist of the following:

(in millions)	March 31, 2023		December 31, 2022
Trade accounts receivable	$	1,351	$	1,329
Unbilled services	1,745		1,624
Trade accounts receivable and unbilled services	3,096		2,953
Allowance for doubtful accounts	(33)		(36)
Trade accounts receivable and unbilled services, net	$	3,063	$	2,917

9

Unbilled services and unearned income were as follows:

(in millions)	March 31, 2023		December 31, 2022		Change
Unbilled services	$	1,745	$	1,624	$	121
Unearned income	(1,827)		(1,797)		(30)
Net balance	$	(82)	$	(173)	$	91

Unbilled services, which is comprised of approximately 66% and 61% of unbilled receivables and 34% and 39% of contract assets as of March 31, 2023 and December 31, 2022, respectively, increased by $121 million as compared to December 31, 2022. Contract assets are unbilled services for which invoicing is based on the timing of certain milestones related to service contracts for clinical research whereas unbilled receivables are billable upon the passage of time. Unearned income increased by $30 million over the same period resulting in an increase of $91 million in the net balance of unbilled services and unearned income between March 31, 2023 and December 31, 2022. The change in the net balance is driven by the difference in timing of revenue recognition in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers, primarily related to the Company’s Research & Development Solutions contracts (which is based on the percentage of costs incurred) versus the timing of invoicing, which is based on certain milestones.

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

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

Accounts Receivable Factoring Arrangements

The Company has accounts receivable factoring agreements to sell certain eligible unsecured trade accounts receivable, either based on automatic arrangements or at its option, without recourse, to unrelated third-party financial institutions for cash. For the three months ended March 31, 2023, through its accounts receivable factoring arrangements that the Company utilizes most frequently, the Company factored approximately $181 million of trade accounts receivable on a non-recourse basis and received approximately $174 million in cash proceeds from the sales. The fees associated with these transactions were immaterial. The Company has other accounts receivable arrangements for which the activity associated with them is immaterial.

4. Goodwill

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

(in millions)	Technology & Analytics Solutions		Research & Development Solutions		Contract Sales & Medical Solutions		Consolidated
Balance as of December 31, 2022	$	11,520	$	2,247	$	154	$	13,921
Business combinations	18		—		—		18
Impact of foreign currency fluctuations and other	73		4		(1)		76
Balance as of March 31, 2023	$	11,611	$	2,251	$	153	$	14,015

10

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)	Balance Sheet Classification	March 31, 2023						December 31, 2022
		Assets		Liabilities		Notional		Assets		Liabilities		Notional
Derivatives designated as hedging instruments:
Interest rate swaps	Other current assets, other assets and other current liabilities	$	26	$	7	$	1,800	$	42	$	—	$	1,800
Foreign exchange forward contracts	Other current assets and other current liabilities	3		—		133		2		2		122
Total derivatives		$	29	$	7			$	44	$	2

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

	Three Months Ended March 31,
(in millions)	2023		2022
Interest rate swaps	$	(23)	$	40
Foreign exchange forward contracts	3		(2)
Total	$	(20)	$	38

The Company expects $35 million of pre-tax unrealized gains related to its foreign exchange contracts and interest rate derivatives included in accumulated other comprehensive (loss) income (“AOCI”) as of March 31, 2023 to be reclassified into earnings within the next twelve months. As of March 31, 2023, the Company's foreign currency denominated debt balance (net of original issue discount) designated as a hedge of its net investment in certain foreign subsidiaries totaled €5,207 million ($5,664 million). The amount of foreign exchange (losses) gains related to the net investment hedge included in the cumulative translation adjustment component of AOCI for the three months ended March 31, 2023 and 2022 was $(89) million and $119 million, respectively.

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.

11

The carrying values of cash, cash equivalents, accounts receivable and accounts payable approximated their fair values as of March 31, 2023 and December 31, 2022 due to their short-term nature. As of March 31, 2023 and December 31, 2022, the fair value of total debt was $12,793 million and $12,281 million, respectively, as determined under Level 2 measurements for these financial instruments.

Recurring Fair Value Measurements

The following table summarizes the fair value of the Company’s financial assets and liabilities that are measured and reported at fair value on a recurring basis as of March 31, 2023:

(in millions)	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	131	$	—	$	—	$	131
Derivatives	—		29		—		29
Total	$	131	$	29	$	—	$	160
Liabilities:
Derivatives	$	—	$	7	$	—	$	7
Contingent consideration	—		—		110		110
Total	$	—	$	7	$	110	$	117

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

(in millions)	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	122	$	—	$	—	$	122
Derivatives	—		44		—		44
Total	$	122	$	44	$	—	$	166
Liabilities:
Derivatives	$	—	$	2	$	—	$	2
Contingent consideration	—		—		173		173
Total	$	—	$	2	$	173	$	175

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 March 31, 2023, the Company has accrued approximately 76% of the maximum contingent consideration payments that could potentially become payable.

12

The following table summarizes the changes in Level 3 financial assets and liabilities measured on a recurring basis for the three months ended March 31, 2023:

(in millions)	Contingent Consideration
Balance as of December 31, 2022	$	173
Business combinations	3
Contingent consideration paid	(61)
Revaluations included in earnings and foreign currency translation adjustments	(5)
Balance as of March 31, 2023	$	110

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

Non-recurring Fair Value Measurements

As of March 31, 2023, assets carried on the balance sheet and not remeasured to fair value on a recurring basis totaled $18,946 million and were identified as Level 3. These assets are comprised of debt investments and cost and equity method investments of $174 million, goodwill of $14,015 million and other identifiable intangibles, net of $4,757 million.

7. Credit Arrangements

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

Facility	Interest Rates
$1,500 million (revolving credit facility)	LIBOR in the relevant currency borrowed plus a margin of 1.25% as of March 31, 2023
$110 million (receivables financing facility)	LIBOR Market Index Rate (4.86% as of March 31, 2023) plus 0.90%

13

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

(dollars in millions)	March 31, 2023		December 31, 2022
Revolving Credit Facility due 2026:
U.S. Dollar denominated borrowings—U.S. Dollar LIBOR at average floating rates of 6.08%	$	800	$	425
Senior Secured Credit Facilities:
Term A Loan due 2026—U.S. Dollar LIBOR at average floating rates of 6.09%	1,324		1,343
Term A Loan due 2026—Euribor at average floating rates of 4.27%	315		314
Term A Loan due 2027—U.S. Dollar SOFR at average floating rates of 6.16%	1,203		1,219
Term B Loan due 2024—Euribor at average floating rates of 5.02%	1,191		1,172
Term B Loan due 2025—U.S. Dollar LIBOR at average floating rates of 6.59%	670		670
Term B Loan due 2025—U.S. Dollar LIBOR at average floating rates of 6.59%	861		860
Term B Loan due 2025—Euribor at average floating rates of 5.02%	568		559
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	457		450
2.25% Senior Notes due 2028—Euro denominated	783		771
2.875% Senior Notes due 2028—Euro denominated	773		761
1.750% Senior Notes due 2026—Euro denominated	598		589
2.250% Senior Notes due 2029—Euro denominated	979		964
Receivables financing facility due 2024—U.S. Dollar LIBOR at average floating rates of 5.74%:
Revolving Loan Commitment	110		110
Term Loan	440		440
Principal amount of debt	13,222		12,797
Less: unamortized discount and debt issuance costs	(46)		(50)
Less: current portion	(1,343)		(152)
Long-term debt	$	11,833	$	12,595

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

(in millions)
Remainder of 2023	$	114
2024	1,893
2025	2,708
2026	3,903
2027	2,069
Thereafter	2,535
	$	13,222

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Senior Secured Credit Facilities

As of March 31, 2023, the Company’s Fifth Amended and Restated Credit Agreement provided financing through several senior secured credit facilities of up to $7,632 million, which consisted of $6,932 million principal amounts of debt outstanding (as detailed in the table above), and $695 million of available borrowing capacity on the $1,500 million revolving credit facility and standby letters of credit. The revolving credit facility is comprised of a $675 million senior secured revolving facility available in U.S. dollars, a $600 million senior secured revolving facility available in U.S. dollars, Euros, Swiss Francs and other foreign currencies, and a $225 million senior secured revolving facility available in U.S. dollars and Yen.

On April 17, 2023, the Company increased the capacity of its senior secured revolving credit facility by $500 million U.S. dollars, bringing the total capacity of the revolving credit facility to $2,000 million. At the same time, the Company also amended the benchmark rate of the U.S. dollar revolving credit facility and the U.S. dollar Term A Loans from U.S. dollar LIBOR to U.S. dollar SOFR plus a 10 basis point Credit Spread Adjustment.

Restrictive Covenants

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 March 31, 2023, 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 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.

The Company routinely enters into agreements with third parties, including its 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.

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On February 13, 2014, a group of approximately 1,200 medical doctors and 900 private individuals filed a civil lawsuit with the Seoul Central District Court against IMS Korea and two other defendants, the Korean Pharmaceutical Association (“KPA”) and the Korean Pharmaceutical Information Center (“KPIC”). The civil lawsuit alleges KPA and KPIC collected their personal information in violation of applicable privacy laws without the necessary consent through a software system installed on pharmacy computer systems in Korea, and that personal information was transferred to IMS Korea and sold to pharmaceutical companies. 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, 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 two 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 two employees of the charges of improper handling of sensitive health information, and the Prosecutor's Office appealed. On December 23, 2021, the appellate court affirmed the judgment of the Seoul Central District Court. The 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 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 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.

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 March 31, 2023 or December 31, 2022.

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Equity Repurchase Program

As of March 31, 2023, the total stock repurchase authorization under the Company's equity repurchase program (the “Repurchase Program”) was $9,725 million. The Repurchase Program does not obligate the Company to repurchase any particular amount of common stock, and it may be modified, extended, suspended or discontinued at any time. During the three months ended March 31, 2023, the Company repurchased 0.7 million shares of its common stock for $129 million under the Repurchase Program. As of March 31, 2023, the Company has remaining authorization to repurchase up to $1,226 million of its common stock under the Repurchase Program. In addition, from time to time, the Company has repurchased and may continue to repurchase common stock through private or other transactions outside of the Repurchase Program.

10. Restructuring

The Company has continued to take restructuring actions in 2023 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 2024.

The following amounts were recorded for the restructuring plans:

(in millions)	Severance and Related Costs
Balance as of December 31, 2022	$	26
Expense, net of reversals	17
Payments	(14)
Balance as of March 31, 2023	$	29

The reversals were due to changes in estimates primarily resulting from the redeployment of staff and higher than expected voluntary terminations. Restructuring costs are not allocated to the Company’s reportable segments as they are not part of the segment performance measures regularly reviewed by management. The Company expects that the majority of the restructuring accruals as of March 31, 2023 will be paid in 2023 and 2024.

11. Income Taxes

The Company's effective income tax rate was 19.6% and 17.8% in the first quarter of 2023 and 2022, respectively. The effective income tax rate in the first quarter of 2023 and 2022 was favorably impacted by $8 million and $13 million, respectively, as a result of excess tax benefits recognized upon settlement of share-based compensation awards.

12. 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, 2022	$	(825)	$	44	$	(8)	$	62	$	(727)
Other comprehensive (loss) income before reclassifications	(19)		13		1		26		21
Reclassification adjustments	—		(33)		—		8		(25)
Balance as of March 31, 2023	$	(844)	$	24	$	(7)	$	96	$	(731)

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

(in millions)	Affected Financial Statement Line Item	Three Months Ended March 31,
		2023		2022
Derivative instruments:
Interest rate swaps	Interest expense	$	16	$	—
Foreign exchange forward contracts	Revenues	17		1
Total before income taxes		33		1
Income taxes		8		—
Total net of income taxes		$	25	$	1

13. Segments

The following table presents the Company’s operations by reportable segment. The Company is 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 the Company's life science clients. Research & Development Solutions, which primarily serves biopharmaceutical customers, provides outsourced clinical research and clinical trial related services. Contract Sales & Medical Solutions provides health care provider (including contract sales) and patient engagement services to both biopharmaceutical clients and the broader healthcare market.

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. 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:

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	Three Months Ended March 31,
(in millions)	2023		2022
Revenues
Technology & Analytics Solutions	$	1,444	$	1,439
Research & Development Solutions	2,026		1,934
Contract Sales & Medical Solutions	182		195
Total revenues	3,652		3,568
Cost of revenues, exclusive of depreciation and amortization
Technology & Analytics Solutions	858		834
Research & Development Solutions	1,386		1,322
Contract Sales & Medical Solutions	154		167
Total cost of revenues, exclusive of depreciation and amortization	2,398		2,323
Selling, general and administrative expenses
Technology & Analytics Solutions	225		219
Research & Development Solutions	212		211
Contract Sales & Medical Solutions	15		16
General corporate and unallocated	61		42
Total selling, general and administrative expenses	513		488
Segment profit
Technology & Analytics Solutions	361		386
Research & Development Solutions	428		401
Contract Sales & Medical Solutions	13		12
Total segment profit