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Business Combinations (Tables)
12 Months Ended
Dec. 31, 2016
Summary of Estimated Fair Value of Net Assets Acquired at the Date of Acquisitions

The following table summarizes the estimated fair value of the net assets acquired at the date of the acquisitions (in millions):

 

     IMS Health   Quest

Assets acquired:

    

Cash and cash equivalents

   $ 2,031      $ 32   

Accounts receivable and unbilled services

     528        6   

Prepaid expenses

     85        1   

Other current assets

     145        4   

Property and equipment

     247        16   

Goodwill

     10,288        262   

Other identifiable intangibles

     6,435        126   

Deferred income tax asset – long-term

     25          

Other long-term assets

     71          

Liabilities assumed:

    

Accounts payable and accrued expenses

     (700     (13

Unearned income

     (175       

Current portion of long-term debt

     (88       

Other current liabilities

     (45       

Long-term debt, less current portion

     (6,070       

Deferred income tax liability – long-term

     (2,104     (10

Other long-term liabilities

     (248     (1
  

 

 

 

 

 

 

 

Net assets acquired

   $             10,425      $             423   
  

 

 

 

 

 

 

 


Summary Of Identifiable Intangible Assets

The other identifiable intangible assets consisted of the following (in millions):

 

     IMS Health   Quest

Client relationships

   $ 3,960      $ 74   

Backlog

            33   

Trade names

     385        19   

Databases

     1,820          

Software

     270          
  

 

 

 

 

 

 

 

Total other identifiable intangibles

   $             6,435      $                 126   
  

 

 

 

 

 

 

 

Amortized over a weighted average useful life (in years)

     18        9   

Schedule of Preliminary Allocation of Purchase to Certain Tangible and Intangible Assets Acquired and Goodwill

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

 

 

   Amortization
Period
  2016   2014

Total purchase price, net of cash acquired(1)

     $ 136      $ 92   

Acquisition-related costs

       1        1   

Amounts recorded in the Consolidated Balance Sheets:

      

Goodwill

     $ 88      $ 63   

Portion of goodwill deductible for income tax purposes

              63   

Intangible assets:

      

Client relationships

     6-10 years      $ 31      $ 9   

Non-compete agreements

     2-5 years        9          

Backlog

     1-2 years        7        1   

Databases

     2 years        1          

Trade names

     2-4 years               1   

Software

     3 years               3   
    

 

 

 

 

 

 

 

Total intangible assets

     $                 48      $                 14   
    

 

 

 

 

 

 

 

 

(1)  Total purchase price, net of cash acquired, includes contingent consideration and deferred purchase payments.
IMS Health Holdings, Inc. [Member]  
Summary of Pro Forma Results

The following table summarizes the pro forma results (in millions, except earnings per share):

 

     Year Ended December 31,

 

   2016   2015

Revenues

   $         7,784      $             7,180   

Reimbursed expenses

     1,514        1,411   
  

 

 

 

 

 

 

 

Total revenues

   $ 9,298      $ 8,591   
  

 

 

 

 

 

 

 

Net income attributable to Quintiles IMS Holdings, Inc.

   $ 42      $ 450   
  

 

 

 

 

 

 

 

Earnings per share attributable to common stockholders:

    

Basic

   $ 0.17      $ 1.80   

Diluted

   $ 0.17      $ 1.76