15.	Guarantor Financial Information

Borrowings under each of our Senior Secured Credit Facilities, ABL Facility, Senior Secured Notes, Junior Lien Secured Notes and Senior Unsecured Notes are guaranteed by certain of the Company’s domestic wholly-owned subsidiaries (the “Guarantor Subsidiaries”). The guarantees are full and unconditional and joint and several. The Company’s Senior Secured Credit Facility, ABL Facility, Senior Secured Notes, Junior Lien Secured Notes and Senior Unsecured Notes are not guaranteed by certain of the Company’s subsidiaries, including all of its non-U.S. subsidiaries or non-wholly owned subsidiaries. The following supplemental financial information sets forth, on a condensed consolidating basis, balance sheet information, results of operations, comprehensive loss and cash flow information for inVentiv Health, Inc., the Guarantor Subsidiaries and other subsidiaries (the “Non-Guarantor Subsidiaries”). The supplemental financial information reflects the investments of inVentiv Health, Inc.’s investment in the Guarantor Subsidiaries and Non-Guarantor Subsidiaries using the equity method of accounting.

Subsequent to the issuance of the March 31, 2015 condensed consolidated financial statements, management determined that within the condensed consolidating statement of cash flows, certain intercompany transfers historically presented on a gross basis within operating, investing and financing activities represent centralized treasury activities that are more appropriately presented on a net basis within investing and financing activities between the respective parent, guarantor, and non guarantor entities. The aforementioned items have been corrected in the condensed consolidating statements of cash flows for the three months ended March 31, 2015. The corrections had no impact on the Company’s consolidated financial position, results of operations or cash flows.

15.	Guarantor Financial Information (Continued)

CONDENSED CONSOLIDATING BALANCE SHEET INFORMATION

At March 31, 2016

(in thousands, except share and per share amounts)

	inVentiv			Guarantor		Non-Guarantor
	Health, Inc.			Subsidiaries		Subsidiaries		Eliminations			Total
ASSETS
Current assets:
Cash and cash equivalents	$	27,758			—	$	136,644	$	(87,289	)	$	77,113
Restricted cash		1,716			—		838		—			2,554
Accounts receivable, net of allowances for doubtful accounts		—			266,930		61,396		—			328,326
Unbilled services		—			223,422		38,301		—			261,723
Intercompany receivables		504,621			825,469		84,860		(1,414,950	)		—
Prepaid expenses and other current assets		7,364			19,001		18,694		—			45,059
Income tax receivable		26			—		996		—			1,022
Total current assets		541,485			1,334,822		341,729		(1,502,239	)		715,797
Property and equipment, net		21,369			98,916		18,887		—			139,172
Goodwill		—			855,317		41,448		—			896,765
Intangible assets, net		—			319,311		6,608		—			325,919
Non-current deferred tax assets		—			—		10,421		—			10,421
Other assets		20,331			4,330		15,060		—			39,721
Non-current intercompany receivables		429,168			28,867		—		(458,035	)		—
Investment in consolidated subsidiaries		700,686			107,127		—		(807,813	)		—
Total assets	$	1,713,039		$	2,748,690	$	434,153	$	(2,768,087	)	$	2,127,795
LIABILITIES AND STOCKHOLDER’S (DEFICIT) EQUITY
Current liabilities:
Current portion of capital lease obligations and other financing arrangements	$	1,429		$	23,831	$	79,265	$	(79,229	)	$	25,296
Accrued payroll, accounts payable and accrued expenses		78,168			182,536		66,304		(8,060	)		318,948
Intercompany payables		857,790			537,244		19,916		(1,414,950	)		—
Income taxes payable		—			449		3,380		—			3,829
Deferred revenue and client advances		—			189,789		56,832		—			246,621
Total current liabilities		937,387			933,849		225,697		(1,502,239	)		594,694
Capital lease obligations, net of current portion		—			45,512		13		—			45,525
Long-term debt, net of current portion		1,547,653			569,479		—		—			2,117,132
Non-current income tax liability		—			4,807		2,760		—			7,567
Deferred tax liability		74			77,854		1,178		—			79,106
Other non-current liabilities		12,902			31,599		22,249		—			66,750
Non-current intercompany liabilities		—			429,157		28,878		(458,035	)		—
Total liabilities		2,498,016			2,092,257		280,775		(1,960,274	)		2,910,774
Total inVentiv Health, Inc. stockholder’s deficit		(784,977	)		656,433		151,380		(807,813	)		(784,977	)
Noncontrolling interest		—			—		1,998		—			1,998
Total stockholder’s deficit		(784,977	)		656,433		153,378		(807,813	)		(782,979	)
Total liabilities and stockholder’s deficit	$	1,713,039		$	2,748,690	$	434,153	$	(2,768,087	)	$	2,127,795

15.	Guarantor Financial Information (Continued)

CONDENSED CONSOLIDATING BALANCE SHEET INFORMATION

At December 31, 2015

(in thousands, except share and per share amounts)

	inVentiv			Guarantor		Non-Guarantor
	Health, Inc.			Subsidiaries		Subsidiaries		Eliminations			Total
ASSETS
Current assets:
Cash and cash equivalents	$	55,226			—	$	148,970	$	(82,879	)	$	121,317
Restricted cash		226			—		1,381		—			1,607
Accounts receivable, net of allowances for doubtful accounts		—			292,548		66,533		—			359,081
Unbilled services		—			174,070		33,395		—			207,465
Intercompany receivables		529,457			840,499		18,211		(1,388,167	)		—
Prepaid expenses and other current assets		8,839			11,401		22,690		—			42,930
Income tax receivable		104			—		1,076		(104	)		1,076
Total current assets		593,852			1,318,518		292,256		(1,471,150	)		733,476
Property and equipment, net		23,227			101,507		17,298		—			142,032
Goodwill		—			855,317		40,052		—			895,369
Intangible assets, net		—			328,239		6,407		—			334,646
Non-current deferred tax assets		—			—		10,032		—			10,032
Other assets		19,084			4,491		13,559		—			37,134
Non-current intercompany receivables		416,161			29,235		35,021		(480,417	)		—
Investment in consolidated subsidiaries		676,479			93,191		—		(769,670	)		—
Total assets	$	1,728,803		$	2,730,498	$	414,625	$	(2,721,237	)	$	2,152,689
LIABILITIES AND STOCKHOLDER’S (DEFICIT) EQUITY
Current liabilities:
Current portion of capital lease obligations and other financing arrangements	$	1,936		$	21,324	$	73,355	$	(73,282	)	$	23,333
Accrued payroll, accounts payable and accrued expenses		71,953			200,063		71,307		(9,597	)		333,726
Intercompany payables		820,965			542,500		24,702		(1,388,167	)		—
Income taxes payable		—			165		5,423		(104	)		5,484
Deferred revenue and client advances		—			190,828		55,828		—			246,656
Total current liabilities		894,854			954,880		230,615		(1,471,150	)		609,199
Capital lease obligations, net of current portion		—			45,247		11		—			45,258
Long-term debt, net of current portion		1,533,197			568,688		—		—			2,101,885
Non-current income tax liability		—			4,806		1,136		—			5,942
Deferred tax liability		74			73,047		239		—			73,360
Other non-current liabilities		38,494			30,896		18,763		—			88,153
Non-current intercompany liabilities		34,920			416,260		29,237		(480,417	)		—
Total liabilities		2,501,539			2,093,824		280,001		(1,951,567	)		2,923,797
Total inVentiv Health, Inc. stockholder’s deficit		(772,736	)		636,674		132,996		(769,670	)		(772,736	)
Noncontrolling interest		—			—		1,628		—			1,628
Total stockholder’s deficit		(772,736	)		636,674		134,624		(769,670	)		(771,108	)
Total liabilities and stockholder’s deficit	$	1,728,803		$	2,730,498	$	414,625	$	(2,721,237	)	$	2,152,689

15.	Guarantor Financial Information (Continued)

CONSOLIDATING STATEMENT OF OPERATIONS

Three Months Ended March 31, 2016

(in thousands)

	inVentiv			Guarantor			Non-Guarantor
	Health, Inc.			Subsidiaries			Subsidiaries			Eliminations			Total
Net revenues	$	—		$	419,336		$	129,933		$	(7,973	)	$	541,296
Reimbursed out-of-pocket expenses		—			83,818			7,214			(49	)		90,983
Total revenues		—			503,154			137,147			(8,022	)		632,279
Operating expenses:
Cost of revenues		—			300,392			79,298			(7,314	)		372,376
Reimbursable out-of-pocket expenses		—			83,818			7,214			(49	)		90,983
Selling, general and administrative expenses		21,129			71,369			31,917			(659	)		123,756
Allocation of intercompany costs		(13,899	)		10,915			2,984			—			—
Total operating expenses		7,230			466,494			121,413			(8,022	)		587,115
Operating income (loss)		(7,230	)		36,660			15,734			—			45,164
Gain on extinguishment of debt		221			—			—			—			221
Interest income (expense), net		(43,831	)		(12,277	)		255			—			(55,853	)
Intercompany interest income (expense)		12,975			(12,715	)		(260	)		—			—
Income (loss) before income tax (provision) benefit and income (loss) from equity investments		(37,865	)		11,668			15,729			—			(10,468	)
Income tax (provision) benefit		—			(5,145	)		(3,031	)		—			(8,176	)
Income (loss) before income (loss) from equity investments		(37,865	)		6,523			12,698			—			(18,644	)
Income (loss) from equity investments		18,788			10,574			—			(29,357	)		5
Net income (loss)		(19,077	)		17,097			12,698			(29,357	)		(18,639	)
Less: Net (income) loss attributable to the noncontrolling interest		—			—			(438	)		—			(438	)
Net income (loss) attributable to inVentiv Health, Inc.	$	(19,077	)	$	17,097		$	12,260		$	(29,357	)	$	(19,077	)

15.	Guarantor Financial Information (Continued)

CONSOLIDATING STATEMENT OF OPERATIONS

Three Months Ended March 31, 2015

(in thousands)

	inVentiv			Guarantor			Non-Guarantor
	Health, Inc.			Subsidiaries			Subsidiaries			Eliminations			Total
Net revenues	$	—		$	346,981		$	109,751		$	(5,755	)	$	450,977
Reimbursed out-of-pocket expenses		—			59,616			7,783			(76	)		67,323
Total revenues		—			406,597			117,534			(5,831	)		518,300
Operating expenses:
Cost of revenues		—			236,463			69,304			(5,262	)		300,505
Reimbursable out-of-pocket expenses		—			59,616			7,783			(76	)		67,323
Selling, general and administrative expenses		16,087			84,539			32,781			(493	)		132,914
Allocation of intercompany costs		(9,900	)		7,944			1,956			—			—
Total operating expenses		6,187			388,562			111,824			(5,831	)		500,742
Operating income (loss)		(6,187	)		18,035			5,710			—			17,558
Interest income (expense), net		(44,398	)		(12,169	)		104			—			(56,463	)
Intercompany interest income (expense)		11,122			(10,972	)		(150	)		—			—
Income (loss) before income tax (provision) benefit and income (loss) from equity investments		(39,463	)		(5,106	)		5,664			—			(38,905	)
Income tax (provision) benefit		—			(2,975	)		(1,553	)		—			(4,528	)
Income (loss) before income (loss) from equity investments		(39,463	)		(8,081	)		4,111			—			(43,433	)
Income (loss) from equity investments		(5,622	)		1,630			—			2,463			(1,529	)
Net income (loss)		(45,085	)		(6,451	)		4,111			2,463			(44,962	)
Less: Net (income) loss attributable to the noncontrolling interest		—			—			(123	)		—			(123	)
Net income (loss) attributable to inVentiv Health, Inc.	$	(45,085	)	$	(6,451	)	$	3,988		$	2,463		$	(45,085	)

15.	Guarantor Financial Information (Continued)

CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

Three Months Ended March 31, 2016

(in thousands)

	inVentiv			Guarantor		Non-Guarantor
	Health, Inc.			Subsidiaries		Subsidiaries			Eliminations			Total
Net Income (loss)	$	(19,077	)	$	17,097	$	12,698		$	(29,357	)	$	(18,639	)
Other comprehensive income (loss):
Foreign currency translation adjustment		5,419			2,662		6,119			(8,781	)		5,419
Total other comprehensive income (loss)		5,419			2,662		6,119			(8,781	)		5,419
Total comprehensive income (loss)		(13,658	)		19,759		18,817			(38,138	)		(13,220	)
Less: Comprehensive (income) loss attributable to the noncontrolling interest		—			—		(438	)		—			(438	)
Total comprehensive income (loss) attributable to inVentiv Health, Inc.	$	(13,658	)	$	19,759	$	18,379		$	(38,138	)	$	(13,658	)

15.	Guarantor Financial Information (Continued)

CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

Three Months Ended March 31, 2015

(in thousands)

	inVentiv			Guarantor			Non-Guarantor
	Health, Inc.			Subsidiaries			Subsidiaries			Eliminations		Total
Net Income (loss)	$	(45,085	)	$	(6,451	)	$	4,111		$	2,463	$	(44,962	)
Other comprehensive income (loss):
Foreign currency translation adjustment		(5,445	)		(5,435	)		(4,011	)		9,446		(5,445	)
Total other comprehensive income (loss)		(5,445	)		(5,435	)		(4,011	)		9,446		(5,445	)
Total comprehensive income (loss)		(50,530	)		(11,886	)		100			11,909		(50,407	)
Less: Comprehensive (income) loss attributable to the noncontrolling interest		—			—			(123	)		—		(123	)
Total comprehensive income (loss) attributable to inVentiv Health, Inc.	$	(50,530	)	$	(11,886	)	$	(23	)	$	11,909	$	(50,530	)

15.	Guarantor Financial Information (Continued)

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Three Months Ended March 31, 2016

(in thousands)

	inVentiv			Guarantor			Non-Guarantor
	Health, Inc.			Subsidiaries			Subsidiaries			Eliminations			Total
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	(36,631	)	$	15,585		$	19,486		$	(8,060	)	$	(9,620	)
Cash flows from investing activities:
Purchases of property and equipment		(1,811	)		(1,401	)		(2,958	)		—			(6,170	)
Proceeds from vehicle sales and rebates on vehicle leases		—			3,979			—			—			3,979
Intercompany transfers		37,937			17,988			—			(55,925	)		—
Other, net		(1,491	)		—			525			—			(966	)
Net cash provided by (used in) investing activities		34,635			20,566			(2,433	)		(55,925	)		(3,157	)
Cash flows from financing activities:
Repayments on capital leases and other financing arrangements		(972	)		(7,896	)		(39	)		—			(8,907	)
Repurchase of Notes		(22,790	)		—			—			—			(22,790	)
Payment on installment note and contingent consideration related to acquisition		(2,174	)		—			—			—			(2,174	)
Intercompany transfers		—			(28,255	)		(31,320	)		59,575			—
Other, net		464			—			(68	)		—			396
Net cash provided by (used in) financing activities		(25,472	)		(36,151	)		(31,427	)		59,575			(33,475	)
Effects of foreign currency exchange rate changes on cash		—			—			2,048			—			2,048
Net increase (decrease) in cash and cash equivalents		(27,468	)		—			(12,326	)		(4,410	)		(44,204	)
Cash and cash equivalents, beginning of period		55,226			—			148,970			(82,879	)		121,317
Cash and cash equivalents, end of period	$	27,758		$	—		$	136,644		$	(87,289	)	$	77,113

15.	Guarantor Financial Information (Continued)

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Three Months Ended March 31, 2015

(in thousands)

	inVentiv			Guarantor			Non-Guarantor
	Health, Inc.			Subsidiaries			Subsidiaries			Eliminations			Total
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	(37,855	)	$	37,407		$	8,984		$	(6,385	)	$	2,151
Cash flows from investing activities:
Purchases of property and equipment		(2,777	)		(5,199	)		(1,823	)		—			(9,799	)
Proceeds from vehicle sales and rebates on vehicle leases		—			3,093			—			—			3,093
Intercompany transfers		51,656			—			—			(51,656	)		—
Other, net		(238	)		—			—			—			(238	)
Net cash provided by (used in) investing activities		48,641			(2,106	)		(1,823	)		(51,656	)		(6,944	)
Cash flows from financing activities:
Repayments on capital leases and other financing arrangements		(983	)		(7,816	)		(125	)		—			(8,924	)
Borrowings under line of credit		17,000			—			—			—			17,000
Repayments on line of credit		(17,000	)		—			—			—			(17,000	)
Payment on installment note and contingent consideration related to acquisition		(1,917	)		—			—			—			(1,917	)
Intercompany transfers		—			(30,924	)		6,980			23,944			—
Other, net		93			—			(68	)		—			25
Net cash provided by (used in) financing activities		(2,807	)		(38,740	)		6,787			23,944			(10,816	)
Effects of foreign currency exchange rate changes on cash		—			—			(2,797	)		—			(2,797	)
Net increase (decrease) in cash and cash equivalents		7,979			(3,439	)		11,151			(34,097	)		(18,406	)
Cash and cash equivalents, beginning of period		19,643			3,439			86,014			(52,037	)		57,059
Cash and cash equivalents, end of period	$	27,622		$	—		$	97,165		$	(86,134	)	$	38,653