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Schedule I-Condensed Financial Information of Registrant
12 Months Ended
Dec. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Schedule I-Condensed Financial Information of Registrant

Schedule I—Condensed Financial Information of Registrant

QUINTILES IMS HOLDINGS, INC. (PARENT COMPANY ONLY)

CONDENSED STATEMENTS OF INCOME

 

     Year Ended December 31,

(in millions)

   2016   2015   2014

Selling, general and administrative expenses

   $             —      $             1      $             2   

Merger related costs

     21                 
  

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

     (21     (1     (2

Interest income

                     

Other expense, net

                     
  

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes and equity in earnings of subsidiary

     (21     (1     (2

Income tax benefit

     (4     (1     (1
  

 

 

 

 

 

 

 

 

 

 

 

Loss before equity in earnings of subsidiary

     (17            (1

Equity in earnings of subsidiary

     132        387        357   
  

 

 

 

 

 

 

 

 

 

 

 

Net income

   $ 115      $ 387      $ 356   
  

 

 

 

 

 

 

 

 

 

 

 

 

QUINTILES IMS HOLDINGS, INC. (PARENT COMPANY ONLY)

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

 

     Year Ended December 31,

(in millions)

   2016   2015   2014

Net income

   $         115      $         387      $         356   

Comprehensive income adjustments:

      

Unrealized (losses) gains on available-for-sale securities, net of income taxes

                   (1

Unrealized (losses) gains on derivative instruments, net of income taxes of $3, ($4) and ($2)

     (7     (9     (5

Defined benefit plan adjustments, net of income taxes of $11, $— and ($3)

     23               (7

Foreign currency translation, net of income taxes of $(9), ($5) and ($2)

     (497     (56     (48

Reclassification adjustments:

      

Gains on marketable securities included in net income, net of income taxes of $—, $— and ($2)

                   (3

Losses on derivative instruments included in net income, net of income taxes of $7, $6 and $4

     21        12        5   

Amortization of actuarial losses and prior service costs included in net income, net of income taxes

     1        1          
  

 

 

 

 

 

 

 

 

 

 

 

Comprehensive (loss) income

   $ (344   $ 335      $ 297   
  

 

 

 

 

 

 

 

 

 

 

 

 

QUINTILES IMS HOLDINGS, INC. (PARENT COMPANY ONLY)

CONDENSED BALANCE SHEETS

 

     December 31,

(in millions, except per share data)

   2016   2015
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 12      $ 5   

Income taxes receivable

     4          

Other current assets and receivables

              
  

 

 

 

 

 

 

 

Total current assets

     16        5   

Investment in subsidiary

     8,631          
  

 

 

 

 

 

 

 

Total assets

   $ 8,647      $ 5   
  

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)     

Current liabilities:

    

Accounts payable

   $      $   
  

 

 

 

 

 

 

 

Total current liabilities

              

Investment in subsidiary

            569   

Payable to subsidiary

     14          
  

 

 

 

 

 

 

 

Total liabilities

     14        569   
  

 

 

 

 

 

 

 

Commitments and contingencies

    

Stockholders’ equity (deficit):

    

Common stock and additional paid-in capital, 400.0 and 300.0 shares authorized at December 31, 2016 and 2015, respectively, $0.01 par value, 248.3 and 119.4 shares issued and outstanding at December 31, 2016 and 2015, respectively

     10,602        9   

Accumulated deficit

     (399     (462

Treasury stock, at cost, 12.9 shares at December 31, 2016

     (1,000       

Accumulated other comprehensive loss

     (570     (111
  

 

 

 

 

 

 

 

Total stockholders’ equity (deficit)

     8,633        (564
  

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity (deficit)

   $     8,647      $               5   
  

 

 

 

 

 

 

 

 

QUINTILES IMS HOLDINGS, INC. (PARENT COMPANY ONLY)

CONDENSED STATEMENTS OF CASH FLOWS

 

     Year Ended December 31,

(in millions)

   2016   2015   2014
      

Operating activities:

      

Net income

   $ 115      $ 387      $ 356   

Adjustments to reconcile net income to cash provided by operating activities:

      

Subsidiary loss (income)

     91        56        (27

Change in operating assets and liabilities:

      

Accounts receivable and unbilled services

                   3   

Income taxes payable and other liabilities

     (5            (1
  

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

     201        443        331   

Investing activities:

      

Investment in subsidiary, net of dividends received

     791                 
  

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by investing activities

     791                 

Financing activities:

      

Stock issued under employee stock purchase and option plans

     97        64        35   

Repurchase of common stock

     (1,097     (515     (415

Repurchase of stock options

                   (8

Intercompany with subsidiary

     15        1        (3
  

 

 

 

 

 

 

 

 

 

 

 

Net cash (used in) provided by financing activities

     (985     (450     (391
  

 

 

 

 

 

 

 

 

 

 

 

(Decrease) increase in cash and cash equivalents

     7        (7     (60

Cash and cash equivalents at beginning of period

     5        12        72   
  

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

   $         12      $         5      $       12   
  

 

 

 

 

 

 

 

 

 

 

 

 

QUINTILES IMS HOLDINGS, INC. (PARENT COMPANY ONLY)

NOTES TO CONDENSED FINANCIAL STATEMENTS

The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of Quintiles IMS Holdings, Inc.’s (the “Company”) wholly-owned subsidiary, Quintiles IMS Incorporated exceed 25% of the consolidated net assets of the Company. The ability of Quintiles IMS Incorporated to pay dividends may be limited due to the restrictive covenants in the agreements governing its credit arrangements.

These condensed parent company financial statements include the accounts of Quintiles IMS Holdings, Inc. on a standalone basis (the “Parent”) and the equity method of accounting is used to reflect ownership interest in its subsidiary. Refer to the consolidated financial statements and notes presented elsewhere herein for additional information and disclosures with respect to these financial statements.

Since the Parent is part of a group that files a consolidated income tax return, in accordance with ASC 740, a portion of the consolidated amount of current and deferred income tax expense of the Company has been allocated to the Parent. The income tax benefit of $4 million, $1 million and $1 million in 2016, 2015 and 2014, respectively, represents the income tax benefit that will be or were already utilized in the Company’s consolidated United States federal and state income tax returns. If the Parent was not part of these consolidated income tax returns, it would not be able to recognize any income tax benefit, as it generates no revenue against which the losses could be used on a separate filer basis.

Below is a summary of the dividends paid to the Parent by Quintiles IMS Incorporated in 2016, 2015 and 2014 (in millions):

 

     Amount

Paid in December 2016

   $ 503   

Paid in November 2016

     422   

Paid in June 2016

     89   
  

 

 

 

Total paid in 2016

   $ 1,014   
  

 

 

 

Paid in December 2015

   $ 1   

Paid in November 2015

     223   

Paid in May 2015

     220   
  

 

 

 

Total paid in 2015

   $ 444   
  

 

 

 

Paid in November 2014

   $ 234   

Paid in May 2014

     87   

Paid in January 2014

     8   
  

 

 

 

Total paid in 2014

   $         329