10-Q

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 30, 2017

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

QUINTILES IMS 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

and

83 Wooster Heights Road, Danbury, Connecticut 06810

(Address of principal executive offices and Zip Code)

(919) 998-2000 and (203) 448-4600

(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  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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. (Check one):

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐(Donotcheckifasmallerreportingcompany)	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  ☒

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	211,313,493 shares outstanding as of October 23, 2017

QUINTILES IMS 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 months ended September 30, 2017 and 2016	3
	Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2017 and 2016	4
	Condensed Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016	5
	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	35
PART II—OTHER INFORMATION		36
Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities	36
Item 6.	Exhibits	38
SIGNATURES		39

2

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

QUINTILES IMS HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions, except per share data)	2017			2016			2017			2016
Revenues	$	2,019		$	1,137		$	5,899		$	3,412
Reimbursed expenses		446			360			1,263			1,128
Total revenues		2,465			1,497			7,162			4,540
Costs of revenue, exclusive of depreciation and amortization		1,165			696			3,431			2,125
Costs of revenue, reimbursed expenses		446			360			1,263			1,128
Selling, general and administrative expenses		391			207			1,141			623
Depreciation and amortization		256			34			733			98
Impairment charges		—			28			40			28
Restructuring costs		10			—			38			28
Merger related costs		—			4			—			13
Income from operations		197			168			516			497
Interest income		(2	)		(1	)		(5	)		(2	)
Interest expense		93			25			249			73
Loss on extinguishment of debt		18			—			21			—
Other expense, net		3			1			9			3
Income before income taxes and equity in earnings (losses) of unconsolidated affiliates		85			143			242			423
Income tax expense		—			39			5			118
Income before equity in earnings (losses) of unconsolidated affiliates		85			104			237			305
Equity in earnings (losses) of unconsolidated affiliates		4			—			7			(1	)
Net income		89			104			244			304
Net income attributable to non-controlling interests		(5	)		(4	)		(11	)		(11	)
Net income attributable to Quintiles IMS Holdings, Inc.	$	84		$	100		$	233		$	293
Earnings per share attributable to common stockholders:
Basic	$	0.39		$	0.83		$	1.06		$	2.45
Diluted	$	0.38		$	0.82		$	1.04		$	2.41
Weighted average common shares outstanding:
Basic		214.3			118.9			220.7			119.3
Diluted		219.0			121.2			225.4			121.4

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

3

QUINTILES IMS HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Net income	$	89		$	104		$	244		$	304
Comprehensive income adjustments:
Unrealized gains (losses) on derivative instruments, net of income tax expense (benefit) of $1, $1, ($2) and ($7)		2			—			1			(19	)
Foreign currency translation, net of income tax benefit of ($59), ($1), ($138) and ($6)		156			(11	)		495			(34	)
Reclassification adjustments:
(Gains) losses on derivative instruments included in net income, net of income tax expense of $—, $2, $— and $4		(2	)		7			—			14
Comprehensive income		245			100			740			265
Comprehensive income attributable to non-controlling interests		(8	)		(2	)		(16	)		(2	)
Comprehensive income attributable to Quintiles IMS Holdings, Inc.	$	237		$	98		$	724		$	263

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

4

QUINTILES IMS HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30, 2017			December 31, 2016
(in millions, except per share data)	(unaudited)			(Note 1)
ASSETS
Current assets:
Cash and cash equivalents	$	1,103		$	1,198
Trade accounts receivable and unbilled services, net		1,859			1,707
Prepaid expenses		146			123
Income taxes receivable		56			34
Investments in debt, equity and other securities		44			40
Other current assets and receivables		284			235
Total current assets		3,492			3,337
Property and equipment, net		428			406
Investments in debt, equity and other securities		8			13
Investments in unconsolidated affiliates		67			69
Goodwill		11,598			10,727
Other identifiable intangibles, net		6,567			6,390
Deferred income taxes		93			89
Deposits and other assets		192			177
Total assets	$	22,445		$	21,208
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	1,894		$	1,743
Unearned income		782			774
Income taxes payable		60			76
Current portion of long-term debt		103			92
Other current liabilities		14			20
Total current liabilities		2,853			2,705
Long-term debt		9,651			7,108
Deferred income taxes		2,014			2,133
Other liabilities		420			402
Total liabilities		14,938			12,348
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in capital, 400.0 shares authorized at September 30, 2017 and December 31, 2016, $0.01 par value, 276.5 and 248.3 shares issued at September 30, 2017 and December 31, 2016, respectively		10,761			10,602
Accumulated deficit		(166	)		(399	)
Treasury stock, at cost, 40.2 and 12.9 shares at September 30, 2017 and December 31, 2016, respectively		(3,252	)		(1,000	)
Accumulated other comprehensive loss		(79	)		(570	)
Equity attributable to Quintiles IMS Holdings, Inc.’s stockholders		7,264			8,633
Non-controlling interests		243			227
Total stockholders’ equity		7,507			8,860
Total liabilities and stockholders’ equity	$	22,445		$	21,208

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

5

QUINTILES IMS HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	Nine Months Ended September 30,
(in millions)	2017			2016
Operating activities:
Net income	$	244		$	304
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization		733			98
Amortization of debt issuance costs and discount		6			5
Amortization of accumulated other comprehensive loss on terminated interest rate swaps		3			3
Stock-based compensation		82			34
Impairment of goodwill and identifiable intangible assets		40			28
Loss from unconsolidated affiliates		4			5
Benefit from deferred income taxes		(139	)		(4	)
Excess income tax benefits from stock-based award activities		—			(14	)
Changes in operating assets and liabilities:
Change in accounts receivable, unbilled services and unearned income		(85	)		(16	)
Change in other operating assets and liabilities		(151	)		(30	)
Net cash provided by operating activities		737			413
Investing activities:
Acquisition of property, equipment and software		(267	)		(78	)
Acquisition of businesses, net of cash acquired		(525	)		—
Disposition of business, net of cash disposed		12			—
Purchase of trading securities		—			(39	)
Proceeds from corporate owned life insurance policies		—			21
Proceeds from sale of cost method investments		—			26
Investments in unconsolidated affiliates, net of payments received		5			(13	)
Other		1			1
Net cash used in investing activities		(774	)		(82	)
Financing activities:
Proceeds from issuance of debt		5,242			—
Payment of debt issuance costs		(53	)		—
Repayment of debt and principal payments on capital lease obligations		(2,858	)		(37	)
Proceeds from revolving credit facility		1,222			—
Repayment of revolving credit facility		(1,497	)		—
Stock issued under employee stock purchase and option plans		86			43
Repurchase of common stock		(2,252	)		(98	)
Distributions to non-controlling interest		(3	)		—
Excess income tax benefits from stock-based award activities		—			14
Contingent consideration and deferred purchase price payments		(4	)		—
Net cash used in financing activities		(117	)		(78	)
Effect of foreign currency exchange rate changes on cash		59			(20	)
(Decrease) increase in cash and cash equivalents		(95	)		233
Cash and cash equivalents at beginning of period		1,198			977
Cash and cash equivalents at end of period	$	1,103		$	1,210

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

6

QUINTILES IMS HOLDINGS, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(unaudited)

1. Summary of Significant Accounting Policies

The Company

Conducting business in more than 100 countries with over 55,000 employees, Quintiles IMS Holdings, Inc. (together with its subsidiaries, the “Company” or “QuintilesIMS”) is a leading integrated information and technology-enabled healthcare service provider worldwide, dedicated to helping its clients improve their clinical, scientific and commercial results.

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, 2017. 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, 2016. The balance sheet at December 31, 2016 has been derived from the audited consolidated financial statements of the Company but does not include all the disclosures required by GAAP.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current presentation, including the reclassification of depreciation and amortization from costs of revenue and selling, general and administrative expenses to a separate caption on the accompanying condensed consolidated statements of income. These changes had no effect on previously reported total revenues, net income, comprehensive income, stockholders’ equity or cash flows.

Income Taxes

Income tax expense includes United States federal, state and international income taxes. Certain items of income and expense are not reported in income tax returns and financial statements in the same year. The income tax effects of these differences are reported as deferred income taxes. Valuation allowances are provided to reduce the related deferred income tax assets to an amount which will, more likely than not, be realized. In addition, the Company does not consider the historical undistributed foreign earnings of most of its foreign subsidiaries to be indefinitely reinvested. The Company does consider the majority of its current year undistributed foreign earnings to be indefinitely reinvested. To the extent undistributed foreign earnings are not indefinitely reinvested, the Company records deferred income taxes on these earnings. Interest and penalties related to unrecognized income tax benefits are recognized as a component of income tax expense.

Recently Issued Accounting Standards

Accounting pronouncement adopted

In August 2016, the FASB issued new accounting guidance which eliminates the diversity in practice related to the cash flow classification of certain cash receipts and payments including debt prepayment or extinguishment payments, payments upon maturity of a zero coupon bond, payment of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions received from certain equity method investees, and cash flows related to beneficial interests obtained in a financial asset securitization. The Company adopted this new accounting guidance retrospectively on January 1, 2017. The new guidance designates the appropriate cash flow statement classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities.  In the absence of specific guidance, each separately identifiable cash source and use will be classified on the basis of the nature of the underlying cash flows.  

7

In March 2016, the United States Financial Accounting Standards Board (“FASB”) issued new accounting guidance which simplifies several aspects of the accounting for employee stock-based compensation transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, and the classification of excess income tax benefits on the statement of cash flows. The Company adopted this new accounting guidance prospectively on January 1, 2017. Under the new accounting guidance, excess income tax benefits related to stock-based awards are reflected as a reduction of income tax expense on the statements of income and as cash provided from operating activities on the statements of cash flows. In the prior periods, these tax benefits were reflected directly in additional paid in capital and as cash provided from financing activities. The adoption of this new accounting guidance did not impact the Company’s recognition of its stock-based compensation expense or its presentation of cash flows related to employee taxes paid for withheld shares.

Accounting pronouncements being evaluated

In August 2017, the FASB issued new accounting guidance which will allow more financial and nonfinancial hedging strategies to be eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess hedge effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. The new accounting guidance will be effective for the Company on January 1, 2019. The Company is currently evaluating the impact of this new accounting guidance on its consolidated financial statements.

In March 2017, the FASB issued new accounting guidance which requires the service cost component of net periodic benefit cost be presented in the same income statement line item as other employee compensation costs, and requires that the other components of net periodic benefit expense be recognized in the non-operating section of the income statement. In addition, only the service cost component of net periodic benefit expense is eligible for capitalization when applicable.  The new accounting guidance will be effective for the Company on January 1, 2018. The Company is currently evaluating the impact of this new accounting guidance on its consolidated financial statements.

In January 2017, the FASB issued new accounting guidance that changes the definition of a business to clarify when a set of assets does not constitute a business. Under the new definition, when substantially all of the fair value of gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set of assets is generally not a business. The new accounting guidance will be effective for the Company on January 1, 2018. The Company is currently evaluating the impact of this new accounting guidance on its consolidated financial statements.

In February 2016, the FASB issued new accounting guidance which requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. The income statement will reflect lease expense for operating leases, and amortization and interest expense for financing leases. The new accounting guidance will be effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of this new accounting guidance on its consolidated financial statements.

In January 2016, the FASB issued new accounting guidance which modifies how entities measure equity investments and present changes in the fair value of financial liabilities. The new accounting guidance will be effective for annual reporting periods beginning after December 15, 2017. Early adoption of the presentation guidance is permitted; however, early adoption of the recognition and measurement guidance is not permitted. The adoption of this new accounting guidance is not expected to have a material effect on the Company’s consolidated financial statements.

8

In May 2014, the FASB and the International Accounting Standards Board issued a converged standard on the recognition of revenue from contracts with clients. The objective of the new standard is to establish a single comprehensive revenue recognition model that is designed to create greater comparability of financial statements across industries and jurisdictions. Under the new standard, companies will recognize revenue to depict the transfer of goods or services to clients in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The Company has concluded that the majority of the clinical trial arrangements in its Research & Development Solutions segment will represent a single performance obligation.  The Company expects to account for revenue for this single performance obligation over time using project cost as an input method to measure progress.  Our arrangements in the Commercial Solutions and Integrated Engagement Services segments are generally multiple element arrangements under which current rules require the deferral of revenue when payment on a delivered unit of accounting is contingent on performing on a future unit of accounting.  We currently anticipate that under the new standard these arrangements will consist of multiple performance obligations and that such deferral of revenue will in some cases be lower (or zero) when management determines that it is probable that performance on the future performance obligation will occur. The new standard will require expanded disclosures on revenue recognition, including information about changes in assets and liabilities that result from contracts with clients. The new standard allows for either a retrospective or prospective approach to transition upon adoption. The new standard will be effective for annual reporting periods beginning after December 15, 2017. The Company will adopt the new standard on January 1, 2018. The Company is still evaluating the impact of this new standard as well as the transition approach that will be used upon adoption.

2. Employee Stock Compensation

Stock Incentive Plans

The Company granted the following number of stock-based awards:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Stock options		—		—		—		783,700
Stock appreciation rights - stock settled		22,138		—		1,917,819		—
Stock appreciation rights - cash settled		—		15,200		15,227		40,400
Restricted stock awards		—		86,356		254,582		86,356
Restricted stock units - stock settled		19,032		120,845		30,962		494,681
Restricted stock units - cash settled		—		—		3,715		—
Performance awards		—		—		76,374		—
Performance units		5,272		—		430,076		119,839

The Company had the following number of stock-based awards outstanding:

	September 30, 2017		December 31, 2016
Stock options		4,535,216		7,251,339
Stock appreciation rights - stock settled		2,962,261		1,313,322
Stock appreciation rights - cash settled		363,503		479,176
Restricted stock awards		617,551		367,053
Restricted stock units - stock settled		1,354,080		1,720,817
Restricted stock units - cash settled		3,715		—
Performance awards		76,374		—
Performance units		402,560	—

9

The Company used the following assumptions when estimating the value of the stock-based compensation for stock options and stock appreciation rights issued as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Expected volatility	22 – 24%		26 – 29%		22 – 25%		26 – 30%
Weighted average expected volatility		23%		27%		24%		28%
Expected dividends		0.0%		0.0%		0.0%		0.0%
Expected term (in years)	3.9 – 6.9		3.6 – 6.6		1.0 – 6.9		3.6 – 6.6
Risk-free interest rate	1.71 – 2.15%		0.96 – 1.36%		1.16 – 2.21%		0.80 – 1.57%

The Company’s employee stock purchase plan was discontinued effective December 31, 2016. The Company recognized stock-based compensation expense of $29 million and $16 million during the three months ended September 30, 2017 and 2016, respectively, and $82 million and $34 million during the nine months ended September 30, 2017 and 2016, respectively.  As of September 30, 2017, there was approximately $129 million of total unrecognized stock-based compensation expense related to outstanding non-vested stock-based compensation arrangements, which the Company expects to recognize over a weighted average period of 1.3 years.

3. Concentration of Credit Risk

No client accounted for 10% or more of consolidated revenues for the three and nine months ended September 30, 2017 or 2016.

4. Accounts Receivable and Unbilled Services

Accounts receivable and unbilled services consist of the following:

(in millions)	September 30, 2017			December 31, 2016
Trade:
Billed	$	1,044		$	998
Unbilled services		828			723
		1,872			1,721
Allowance for doubtful accounts		(13	)		(14	)
	$	1,859		$	1,707

5. Investments – Debt, Equity and Other Securities

The Company’s short-term investments in debt, equity and other securities consist primarily of trading investments in mutual funds and are measured at fair value with realized and unrealized gains and losses recorded in other expense, net on the accompanying condensed consolidated statements of income.

6. Variable Interest Entities

As of September 30, 2017, the Company’s investments in unconsolidated variable interest entities (“VIEs”) and its estimated maximum exposure to loss were as follows:

(in millions)	Investments in Unconsolidated VIEs		Maximum Exposure to Loss
NovaQuest Pharma Opportunities Fund III, L.P. (“NovaQuest Fund III”)	$	30	$	37
NovaQuest Pharma Opportunities Fund IV, L.P. (“NovaQuest Fund IV”)		7		17
Pappas Life Science Ventures V, L.P. (“Pappas Fund V”)		1		5
	$	38	$	59

The Company has determined that these funds are VIEs but that the Company is not the primary beneficiary as it does not have a controlling financial interest in these funds. However, because the Company has the ability to exercise significant influence, it accounts for its investments in these funds under the equity method of accounting and records its pro rata share of earnings and losses in equity in (losses) earnings of unconsolidated affiliates on the accompanying condensed consolidated statements of income. The investment assets of unconsolidated VIEs are included in investments in and advances to unconsolidated affiliates on the accompanying condensed consolidated balance sheets.

10

7. Goodwill and Identifiable Intangible Assets

The following is a summary of goodwill by reportable segment for the nine months ended September 30, 2017:

				Research &		Integrated
	Commercial			Development		Engagement
(in millions)	Solutions			Solutions		Services		Consolidated
Balance as of December 31, 2016	$	9,415		$	1,196	$	116	$	10,727
Business combinations		214			176		—		390
Impairment		(40	)		—		—		(40	)
Impact of foreign currency fluctuations and other		510			10		1		521
Balance as of September 30, 2017	$	10,099		$	1,382	$	117	$	11,598

During the second quarter of 2017, we determined there was sufficient indication that the carrying value of our investment in Encore Health Resources LLC (“Encore”) should be reviewed for further impairment due to its continued decline in performance.  The Company proceeded to perform an impairment assessment which resulted in the recognition of a goodwill impairment of $39.6 million, which represented the remaining amount of goodwill associated with Encore, and an intangible asset impairment of $0.4 million for other-than-temporary declines in fair value.  On July 12, 2017, the Company completed the sale of Encore to an unrelated third party. As of September 30, 2017, accumulated goodwill impairment losses were $63 million, solely related to Encore.

8. Derivatives

Foreign Exchange Risk Management

As of September 30, 2017, the Company held foreign currency forward contracts to (i) hedge certain forecasted foreign exchange cash flows arising from service contracts (“Service Contract Hedging”) and (ii) hedge non-United States Dollar anticipated intercompany royalties (“Royalty Hedging”). It is the Company’s policy to enter into foreign currency transactions only to the extent necessary to reduce earnings and cash flow volatility associated with foreign exchange rate movements. The Company does not enter into foreign currency transactions for investment or speculative purposes.

As of September 30, 2017, the Company had 57 open Service Contract Hedging and Royalty Hedging contracts to hedge certain forecasted foreign currency cash flow transactions occurring in 2017 and 2018 with notional amounts totaling $294 million. For accounting purposes these hedges are considered highly effective. As of September 30, 2017 and December 31, 2016, the Company had recorded gross unrealized gains (losses) of $6 million and ($7) million and $11 million and ($9) million, respectively, related to these contracts. Upon expiration of the hedge instruments during 2017 and 2018, the Company will reclassify the unrealized holding gains and losses on the derivative instruments included in accumulated other comprehensive income (loss) (“AOCI”) into earnings. The unrealized gains (losses) are included in other current assets and liabilities on the accompanying condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016.

Interest Rate Risk Management

The Company purchases interest rate caps and has entered into interest rate swap agreements for purposes of managing its exposure to interest rate fluctuations.

On June 9, 2011, the Company entered into six interest rate swaps which expired between September 30, 2013 and March 31, 2016, in an effort to limit its exposure to changes in the variable interest rate on its senior secured credit facilities. During May 2015, the Company terminated the remaining open interest rate swaps for a cash payment to the counterparty of $12 million, which included $1 million of accrued interest. Since the hedged forecasted cash transactions continued to be probable of occurring, the accumulated loss ($3 million at December 31, 2015) related to the terminated interest rate swaps in AOCI was reclassified to earnings as a component of interest expense in the same periods as the hedged forecasted transactions occurred over the first three months of 2016.

The Company, through the merger with IMS Health described in Note 12 below, has United States Dollar denominated interest rate caps (the “2014 Caps”) with a total notional value of $700 million at strike prices between 2% and 3% in an effort to limit its exposure to changes in the variable interest rate on its senior secured credit facilities. The 2014 Caps commenced at various times between April 2014 and April 2016 and expire in April 2019.   The 2014 Caps are accounted for as cash flow hedges.  

11

The Company, through the merger with IMS Health, has United States Dollar and Euro denominated interest rate swap agreements (the “2014 USD Swap” and “2014 EUR Swap”) to limit its exposure to changes in the variable interest rate on its senior secured credit facilities. The 2014 USD Swap and 2014 EUR Swap began accruing interest in April and June 2014,  respectively, and expire in March 2019 and March 2021, respectively. On these agreements, the Company pays fixed rates of 2.1% to 1.65%, respectively, and receives variable rates of interest equal to the greater of three-month United States Dollar London Interbank Offered Rate (“LIBOR”) or three-month Euro Interbank Offered Rate (“EURIBOR”), and 1%.

On June 3, 2015, the Company entered into seven forward starting interest rate swaps (the “2015 Swaps”) in an effort to limit its exposure to changes in the variable interest rate on its senior secured credit facilities. Interest on the swaps began accruing on June 30, 2016, and the interest rate swaps expire at various times from March 2017 through March 2020. The Company pays a fixed rate ranging from 1.3% to 2.1% and receives a variable rate of interest equal to the three-month LIBOR on these agreements.

The critical terms of the 2015 Swaps are substantially the same as the underlying borrowings. These interest rate swaps are being accounted for as cash flow hedges as these transactions were executed to hedge the Company’s interest payments and for accounting purposes these hedges are highly effective. As such, the effective portion of the hedges is recorded as unrealized gains (losses) on derivatives included in AOCI and the ineffective portion of the hedges is recognized in earnings. The 2014 EUR Swap (notional value $343 million) ceased to be considered a highly effective hedge for accounting purposes when the underlying debt was refinanced on March 7, 2017. As such, the Company discontinued hedge accounting on that date and prospective changes in the fair value of the 2014 EUR Swap are recognized in earnings. The 2014 USD Swap (notional value $100 million) ceased to be considered a highly effective hedge for accounting purposes this quarter and as such, the Company has discontinued hedge accounting and prospective changes in the fair value of the 2014 USD Swap are recognized in earnings.  The fair value of these interest rate swaps represents the present value of the anticipated net payments the Company will make to the counterparty, which, when they occur, are reflected as interest expense on the consolidated statements of income. These interest rate swaps will result in a total debt mix of approximately 57% fixed rate debt and 43% variable rate debt, before the additional protection arising from the interest rate caps.

Net Investment Risk Management

Subsequent to the merger with IMS Health, the Company designated its foreign currency denominated debt as a hedge of its net investment in certain foreign subsidiaries to reduce the volatility in stockholders’ equity caused by changes in the Euro exchange rate with respect to the United States Dollar. As of September 30, 2017, these borrowings (net of original issue discount) were €4,044 million ($4,779 million). The effective portion of foreign exchange gains or losses on the remeasurement of the debt is recognized in the cumulative translation adjustment component of AOCI with the related offset in long-term debt. Those amounts will be reclassified from AOCI to earnings upon the sale or substantial liquidation of these net investments. The amount of foreign exchange losses related to the net investment hedge included in the cumulative translation adjustment component of AOCI for the nine months ended September 30, 2017 was $490 million.

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:

		September 30, 2017						December 31, 2016
(in millions)	Balance Sheet Classification	Assets		Liabilities		Notional		Assets		Liabilities		Notional
Derivatives designated as hedging instruments:
Foreign exchange forward contracts	Other current assets and liabilities	$	6	$	7	$	294	$	11	$	9	$	300
Interest rate swaps	Other liabilities		—		4		405		—		15		945
Interest rate caps	Deposits and other assets		—		—		700		1		—		1,000
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Other current liabilities		—		—		—		—		1		189
Interest rate swaps	Other liabilities		—		8		443		—		—		—
Total derivatives		$	6	$	19			$	12	$	25

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The effect of the Company’s cash flow hedging instruments on other comprehensive (loss) income is summarized in the following table:

	Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)	2017			2016		2017			2016
Foreign exchange forward contracts	$	(2	)	$	4	$	(7	)	$	(3	)
Interest rate swaps		3			4		5			(6	)
Total	$	1		$	8	$	(2	)	$	(9	)

9. 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 at September 30, 2017 and December 31, 2016 due to their short-term nature. At September 30, 2017 and December 31, 2016, the fair value of total debt approximated $9,988 million and $7,298 million, respectively, as determined under Level 2 measurements based on quoted prices 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 September 30, 2017:

(in millions)	Level 1		Level 2		Level 3		Total
Assets:
Trading securities	$	44	$	—	$	—	$	44
Derivatives		—		6		—		6
Total	$	44	$	6	$	—	$	50
Liabilities:
Derivatives	$	—	$	19	$	—	$	19
Contingent consideration		—		—		63		63
Total	$	—	$	19	$	63	$	82

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

Trading securities — The Company values trading securities using the quoted market value of the securities held.

Derivatives — Derivatives consist of foreign exchange contracts and interest rate caps and 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 caps and 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.

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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. Key assumptions used to estimate the fair value of contingent consideration include various financial metrics (revenue performance targets, operating forecasts) and the probability of achieving the specific targets.

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

	Contingent Consideration – Accounts Payable and Accrued Expenses
(in millions)	2017			2016
Balance as of January 1	$	18		$	4
Business combinations		52			—
Contingent consideration paid		(4	)		—
Revaluations included in earnings and foreign currency translation adjustments		(3	)		1
Balance as of September 30	$	63		$	5

Revaluations of the contingent consideration are recognized in other expense (income), net on the accompanying condensed consolidated statements of income.

10. Credit Arrangements

The following is a summary of the Company’s revolving credit facilities at September 30, 2017:

Facility	Interest Rates
$1,000 million (revolving credit facility)	LIBOR in the relevant currency borrowed plus a margin of 2.00% at September 30, 2017
$25 million (receivables financing facility)	United States LIBOR plus a margin of 0.85% at September 30, 2017 depending upon the Company’s debt rating
£10 million (approximately $13 million) general banking facility with a European headquartered bank	Bank’s base rate of 0.25% at September 30, 2017 plus 1%

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

(in millions)	September 30, 2017			December 31, 2016
Senior Secured Credit Facilities:
Term A Loan due 2021—U.S. Dollar LIBOR at average floating rates of 3.33%	$	855		$	888
Term A Loan due 2021—Euro LIBOR at average floating rates of 2.00%		453			419
Term B Loan due 2025—U.S. Dollar at average floating rates of 3.32%		750			—
Term B Loan due 2024—U.S. Dollar LIBOR at average floating rates of 3.33%		1,191			—
Term B Loan due 2024—Euro LIBOR at average floating rates of 2.75%		1,407			—
Term B Loan due 2021—U.S. Dollar LIBOR at average floating rates of 3.50%		—			1,700
Term B Loan due 2021—Euro LIBOR at average floating rates of 3.75%		—			765
Revolving Credit Facility due 2021:
U.S. Dollar denominated borrowings—U.S. Dollar LIBOR at average floating rates of 3.23%		100			375
5.0% Senior Notes due 2026—U.S. Dollar denominated		1,050			1,050
2.875% Senior Notes due 2025—Euro denominated		496			—
3.25% Senior Notes due 2025—Euro denominated		1,684			—
3.5% Senior Notes due 2024—Euro denominated		739			658
4.125% Senior Notes due 2023—Euro denominated		—			289
4.875% Senior Notes due 2023—U.S. Dollar denominated		800			800
Receivables financing facility due 2018—U.S. Dollar LIBOR at average floating rate of 2.08%		275			275
Principal amount of debt		9,800			7,219
Less: unamortized discount and debt issuance costs		(46	)		(19	)
Less: current portion		(103	)		(92	)
Long-term debt	$	9,651		$	7,108

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Contractual maturities of long-term debt are as follows at September 30, 2017:

(in millions)
Remainder of 2017	$	26
2018		378
2019		103
2020		103
2021		1,218
Thereafter		7,972
	$	9,800

At September 30, 2017, there were bank guarantees totaling approximately £5 million (approximately $6 million) issued against the availability of the general banking facility.

During the first nine months of 2017, the Company borrowed and repaid $1,222 million and $1,497 million, respectively, under its revolving credit facilities.

Senior Secured Facilities

At September 30, 2017, the Company’s senior credit facility provided financing of up to approximately $5,656 million, which consisted of $4,756 million principal amount of debt outstanding (as detailed in the table above) and $900 million of available borrowing capacity on the $1,000 million revolving credit facility that expires in 2021.

On September 18, 2017, the Company amended its senior credit facility agreement (the “Amendment”) to provide for an incremental term B loan of $750 million and to increase the facility’s restricted payment capacity, specifically an increase to the total net leverage ratio conditions for unlimited restricted investments from 4.25-to-1.00 to 4.50-to-1.00 and for dividends and distributions from 4.00-to-1.00 to 4.50-to-1.00. The new term B loan will mature in 2025 and bear a floating interest rate of LIBOR plus 2.00% per year.

On March 7, 2017, the Company refinanced all of its term B loans due 2021—U.S. dollar denominated (approximately $1,700 million) and its term B loans due 2021—Euro denominated (approximately $765 million) with an extended and repriced term B loan facility due in 2024 for an aggregate principal amount of approximately $2,465 million comprised of $1,200 million U.S. dollar denominated term B loans and €1,200 million ($1,279 million) Euro denominated term B loans. The U.S. dollar denominated term B loans bear interest based on the U.S. Dollar LIBOR with a floor of 0.75%, plus a margin of 2.00% for an all-in interest rate of 3.23% as of September 30, 2017. The Euro denominated term B loans bear interest based on the Euro LIBOR with a floor of 0.75%, plus a margin of 2.00% for an all-in interest rate of 2.75% as of September 30, 2017. In connection with this refinancing, the Company recognized a $3 million loss on extinguishment of debt, which included fees and related expenses.

Senior Notes

On September 14, 2017, the Company’s wholly owned subsidiary, Quintiles IMS Incorporated (the “Issuer”), issued €420 million (approximately $501 million) aggregate principal amount of 2.875% senior notes due 2025 (the “2025 Notes”). The 2025 Notes, which are unsecured obligations of the Issuer, mature on September 15, 2025 and bear an interest rate of 2.875% which is paid semi-annually on March 15 and September 15 of each year, beginning on March 15, 2018. The 2025 Notes may be redeemed prior to their final stated maturity, subject to a customary make-whole premium at any time prior to September 15, 2020 (subject to a certain customary “equity claw” redemption right) and thereafter subject to a redemption premium declining from 1.438% to 0%.

The net proceeds from the offering of the 2025 Notes and the Amendment referenced above were used to refinance certain indebtedness, including the redemption of the outstanding 4.125% euro-denominated senior notes due 2023 (the “4.125% Notes”), to pay down the revolving credit facility, to pay fees and expenses related to the offering of the 2025 Notes and the Amendment and for other general corporate purposes, including the repurchase of the Company’s common stock and acquisitions. In connection with this refinancing, the Company recognized an $18 million loss on extinguishment of debt, which included the 4.125% Notes make-whole premium.

15

On February 28, 2017, the Issuer issued €1,425 million (approximately $1,522 million) aggregate principal amount of 3.25% senior notes due 2025 (the “2017 Notes”). The 2017 Notes, which are unsecured obligations of the Issuer, mature on March 15, 2025 and bear an interest rate of 3.25% which is paid semi-annually on March 15 and September 15 of each year, beginning on September 15, 2017. The 2017 Notes may be redeemed prior to their final stated maturity, subject to a customary make-whole premium at any time prior to March 15, 2020 (subject to a certain customary “equity claw” redemption right) and thereafter subject to annually declining redemption premiums at any time prior to March 15, 2022. During March 2017, the proceeds of the 2017 Notes were used to pay fees and expenses related to the notes offering and the refinancing referenced above and other general corporate purposes, including the repurchase of the Company’s common stock.

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 credit 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 our ability to declare dividends. At September 30, 2017, the Company was in compliance with the financial covenants under its financing arrangements in all material respects.

11. 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 30, 2017 or December 31, 2016.

Equity Repurchase Program and Secondary Public Offerings

On February 14, 2017, the Board increased the stock repurchase authorization under a previously approved equity repurchase program (the “Repurchase Program”) by $1.0 billion. On May 24, 2017, the Board further increased the stock repurchase authorization under the Repurchase Program by $1.0 billion, which increased the total amount that has been authorized under the Repurchase Program to $4.225 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 or vested in-the-money employee stock options, and it could be modified, extended, suspended or discontinued at any time.

During the nine months ended September 30, 2017, the Company repurchased 27,296,321 shares of its common stock under the Repurchase Program at an average market price per share of $82.49 for an aggregate purchase price of approximately $2.3 billion. Those repurchases include shares repurchased pursuant to a share repurchase agreement dated February 23, 2017 with certain of the Company’s principal stockholders under the Repurchase Program. Pursuant to that agreement, the Company purchased an aggregate of 9,677,420 shares of the Company’s common stock in a private transaction for an aggregate purchase price of approximately $750 million. This transaction was consummated on February 28, 2017.

In May 2017, the Company completed an underwritten secondary public offering of 10,571,003 shares of its common stock held by certain of the Company’s principal stockholders (the “May Selling Stockholders”), of which, the Company repurchased 3,571,003 shares for an aggregate purchase price of approximately $300 million. The Company did not offer any stock in this transaction and did not receive any proceeds from the sale of the shares by the May Selling Stockholders in the offering. Pursuant to an agreement with the underwriter, the Company’s per-share purchase price for repurchased shares was the same as the per-share purchase price payable by the underwriter to the May Selling Stockholders.

In September 2017, the Company completed an underwritten secondary public offering of 9,000,000 shares of its common stock held by certain of the Company’s principal stockholders (the “September Selling Stockholders”), of which the Company repurchased 4,000,000 shares for an aggregate purchase price of approximately $380 million. The Company did not offer any stock in this transaction and did not receive any proceeds from the sale of the shares by the September Selling Stockholders in the offering. Pursuant to an agreement with the underwriter, the Company’s per-share purchase price for repurchased shares was the same as the per-share purchase price payable by the underwriter to the September Selling Stockholders.

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An automatic shelf registration statement (including a prospectus) relating to the offering of an unspecified amount of common stock was filed by the Company or selling stockholders to be named in the future with the Securities and Exchange Commission on May 24, 2017 and became effective upon filing. The registration statement will expire three years after the date of filing.

As of September 30, 2017, the Company has remaining authorization to repurchase up to $295 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.

Non-controlling Interests

In July 2015, the Company contributed businesses to a joint venture with Quest Diagnostics Incorporated (“Quest”) that was recorded at book value (carryover basis) because the Company owns 60% of the joint venture and maintains control of these businesses. Quest’s 40% non-controlling interest in the joint venture, referred to as Q² Solutions, was $243 million at September 30, 2017.  

	2017		2016
Balance as of January 1	$	227	$	228
Investment by non-controlling interest		—		2
Comprehensive income (loss):
Net income (loss)		11		11
Foreign currency adjustments, net of income tax		5		(9	)
Balance as of September 30	$	243	$	232

12. Business Combinations

IMS Health

On October 3, 2016, Quintiles Transnational Holdings Inc. (“Quintiles”) completed a merger of equals transaction with IMS Health Holdings, Inc. (“IMS Health”) (the “Merger”). Pursuant to the terms of the merger agreement dated as of May 3, 2016 between Quintiles and IMS Health, IMS Health was merged with and into Quintiles, and the separate corporate existence of IMS Health ceased, with Quintiles continuing as the surviving corporation. The Merger was accounted for as a business combination with Quintiles considered the accounting and the legal acquirer. Immediately prior to the completion of the Merger, Quintiles reincorporated as a Delaware corporation. The surviving corporation changed its name to Quintiles IMS Holdings, Inc. At the effective time of the Merger, IMS Health common stock was automatically converted into 0.3840 of a share of the Company’s common stock. The merger consideration was approximately $10.4 billion (based on the closing price of the Company’s common stock on October 3, 2016), and consisted of the fair value of the Company’s common stock issued (approximately 126.6 million shares) in exchange for the IMS Health common stock as well as the fair value of the vested portion of the converted IMS Health equity awards. In connection with the IMS Health acquisition, the Company recorded goodwill, primarily attributable to the assembled workforce of IMS Health and expected synergies, which was assigned to the Commercial Solutions segment ($9,688 million), the Research & Development Solutions segment ($533 million) and the Integrated Engagement Services segment ($67 million). The goodwill is not deductible for income tax purposes.

Unaudited Pro Forma Information

The following unaudited pro forma information presents the financial results as if the acquisition of IMS Health had occurred on January 1, 2015, with pro forma adjustments to give effect to (i) an increase in depreciation and amortization expense for fair value adjustments of property, plant and equipment and intangible assets, (ii) an increase in stock-based compensation expense resulting from the exchange of the vested IMS Health equity awards for the Company’s equity awards, and (iii) the related income tax effects. The pro forma results do not include any cost synergies, costs or other effects pertaining to the integration of IMS Health. Accordingly, such pro forma amounts are not necessarily indicative of the results that actually would have occurred for the periods presented below had the IMS Health acquisition been completed on January 1, 2015, nor are they indicative of the future operating results of the Company.

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The following table summarizes the pro forma results:

	2016
(in millions, except earnings per share)	Three Months Ended September 30,		Nine Months Ended September 30,
Revenues	$	1,926	$	5,775
Reimbursed expenses		360		1,128
Total revenues	$	2,286	$	6,903
Net income attributable to Quintiles IMS Holdings, Inc.	$	82	$	195
Earnings per share attributable to common stockholders:
Basic	$	0.34	$	0.80
Diluted	$	0.33	$	0.78

Pro forma information is not presented for any other acquisition as the aggregate operations of the acquired businesses were not significant to the overall operations of the Company.  

The Company’s condensed consolidated statements of income for the three and nine months ended September 30, 2017 included $858 million and $2,459 million, respectively, of revenues related to the IMS Health acquisition, including revenue from post-merger acquisitions. Following the closing of the IMS Health acquisition, the Company began integrating IMS Health’s operations. As a result, deriving a separate measure of IMS Health’s stand-alone profitability for periods after the acquisition date is impracticable.

Other Acquisitions

The Company also completed several individually immaterial acquisitions during the nine months ended September 30, 2017. The Company’s assessment of fair value 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 condensed consolidated financial statements include the results of the acquisitions subsequent to their respective closing dates.

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:

	Amortization
(in millions)	Period	2017
Total cost of acquisition, net of cash acquired		$	579
Amounts recorded in the Condensed Consolidated Balance Sheets:
Goodwill			390
Portion of goodwill deductible for income tax purposes			142
Intangible assets:
Client relationships	9-15 years		158
Backlog	4 years		15
Non-compete agreements	3-5 years		11
Software	2-9 years		40
Trade names	1-17 years		9
Total intangible assets		$	233

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13. Restructuring

The Company has taken restructuring actions in 2017, 2016 and 2015 to align its resources and reduce overcapacity to adapt to changing market conditions and integrate acquisitions. These actions include closing facilities, consolidating functional activities, eliminating redundant positions, and aligning resources with client requirements. In 2016, the Company also assumed certain restructuring liabilities as a result of the Merger. Restructuring expense in the first nine months of 2017 consisted of severance and related costs of $35 million, including approximately $6 million related to the Merger and $29 million related to cost reduction actions taken to adapt to changing market conditions. These restructuring actions are expected to continue into 2018.

The following amounts were recorded for the restructuring plans:

(in millions)	Severance and Related Costs			Exit Costs			Total
Balance at December 31, 2016	$	99		$	3		$	102
Expense, net of reversals		35			3			38
Payments		(59	)		(3	)		(62	)
Foreign currency translation and other		1			—			1
Balance at September 30, 2017	$	76		$	3		$	79

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 at September 30, 2017 will be paid in 2017 and 2018.

14. Income Taxes

The effective income tax rate was (0.5)% and 27.3% in the third quarter of 2017 and 2016, respectively, and 2.1% and 27.9% in the first nine months of 2017 and 2016, respectively. The effective income tax rate was favorably impacted by a tax benefit of $58 million and $189 million in the three and nine months ended September 30, 2017, respectively, related to purchase accounting amortization of approximately $193 million and $561 million, respectively, as a result of the Merger.  Additionally, due to the adoption of ASU 2016-09 on January 1, 2017, the effective income tax rate was favorably impacted by discrete tax adjustments related to excess tax benefits on stock-based compensation of $5 million and $18 million in the three and nine months ended September 30, 2017, respectively.

The Company does not consider the historical undistributed foreign earnings of most of its foreign subsidiaries to be indefinitely reinvested.  The Company does consider the majority of its current year undistributed foreign earnings to be indefinitely reinvested.  To the extent undistributed foreign earnings are not indefinitely reinvested, the Company has recorded deferred income taxes on these earnings.

15. Employee Benefit Plans

Pension and Postretirement Benefit Plans

The following table summarizes the components of net periodic benefit cost for the Company’s pension benefits:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Service cost	$	10		$	4		$	29		$	13
Interest cost		6			1			16			3
Expected return on plan assets		(10	)		(1	)		(29	)		(3	)
Amortization of actuarial losses		1			1			1			1
	$	7		$	5		$	17		$	14

The above tables do not include the Company’s expense associated with providing certain executives with supplemental pension benefits as well as postretirement medical, dental and life insurance benefits in accordance with their individual employment arrangements. The Company’s net periodic expense related to these benefits for the three and nine months ended September 30, 2017 was de minimis.  

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16. Comprehensive Income

Below is a summary of the components of AOCI:

(in millions)	Foreign Currency Translation			Derivative Instruments			Defined Benefit Plans		Income Taxes		Total
Balance at December 31, 2016	$	(623	)	$	10		$	21	$	22	$	(570	)
Other comprehensive income (loss) before reclassifications		353			(2	)		—		140		491
Reclassification adjustments		—			—			—		—		—
Balance at September 30, 2017	$	(270	)	$	8		$	21	$	162	$	(79	)

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

	Affected Financial Statement	Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)	Line Item	2017			2016		2017			2016
Derivative instruments:
Interest rate swaps	Interest expense	$	—		$	2	$	—		$	5
Foreign exchange forward contracts	Revenues		(1	)		7		8			13
Foreign exchange forward contracts	Other expense (income), net		(1	)		—		(8	)		—
Total before income taxes			(2	)		9		—			18
Income tax benefit			—			2		—			4
Total net of income taxes		$	(2	)	$	7	$	—		$	14

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17. Segments

The following table presents the Company’s operations by reportable segment. The Company is managed through three reportable segments, Commercial Solutions, Research & Development Solutions and Integrated Engagement Services. Commercial 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 clients, provides outsourced clinical research and clinical trial related services. Integrated Engagement Services 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 the Company’s segments and are reported as general corporate and unallocated expenses. These costs primarily consist of stock-based compensation and expenses for corporate overhead functions such as senior leadership, finance, human resources, information technology, facilities and legal. The Company does not allocate depreciation and amortization, impairment charges, restructuring costs or merger related costs to its segments. Revenues and costs for reimbursed expenses are not allocated to the Company’s 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:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Revenues
Commercial Solutions	$	887		$	72		$	2,603		$	218
Research & Development Solutions		938			869			2,700			2,591
Integrated Engagement Services		194			196			596			603
Total revenues		2,019			1,137			5,899			3,412
Costs of revenue
Commercial Solutions		480			51			1,407			158
Research & Development Solutions		529			488			1,543			1,484
Integrated Engagement Services		156			157			481			483
Total costs of revenue		1,165			696			3,431			2,125
Selling, general and administrative expenses
Commercial Solutions		168			14			482			45
Research & Development Solutions		152			143			426			434
Integrated Engagement Services		20			20			56			63
General corporate and unallocated		51			30			177			81
Total selling, general and administrative expenses		391			207			1,141			623
Segment profit
Commercial Solutions		239			7			714			15
Research & Development Solutions		257			238			731			673
Integrated Engagement Services		18			19			59			57
Total segment profit		514			264			1,504			745
General corporate and unallocated		(51	)		(30	)		(177	)		(81	)
Depreciation and amortization		(256	)		(34	)		(733	)		(98	)
Impairment charges		—			(28	)		(40	)		(28	)
Restructuring costs		(10	)		—			(38	)		(28	)
Merger related costs		—			(4	)		—			(13	)
Total income from operations	$	197		$	168		$	516		$	497

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18. Earnings Per Share

The following table presents 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 or the effect of including such stock-based awards in the computation would be anti-dilutive:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2017		2016		2017		2016
Shares subject to performance conditions		0.5		0.2		0.4		0.2
Shares subject to anti-dilutive stock-based awards		0.6		0.7		1.3		1.2
Total shares excluded from diluted earnings per share		1.1		0.9		1.7		1.4

The vesting of performance units is contingent upon the achievement of certain performance targets. The performance units 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, 2016.

In addition to historical condensed consolidated financial information, the following discussion contains or incorporates by reference forward-looking statements that within the meaning of the federal securities laws are not historical facts but reflect, among other things, our current expectations and 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,” “projects,” “should,” “targets,” “will” and the negative thereof and similar words and expressions are intended to identify forward-looking statements. We assume no obligation to update any such forward-looking information to reflect actual results or changes in 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, our ability to successfully integrate the “merger of equals” business combination (the “Merger”) between IMS Health Holdings, Inc. (“IMS Health”) and Quintiles Transnational Holdings Inc. (“Quintiles”); our ability to achieve anticipated cost savings and other synergies from the Merger; the possibility that other anticipated benefits of the Merger will not be realized, including without limitation, anticipated revenues, expenses, earnings and other financial results, and growth and expansion of the new combined company’s operations, and the anticipated tax treatment; possible disruptions from the Merger that could harm our businesses, including current plans and operations; our ability to retain, attract and hire key personnel; potential adverse reactions or changes to relationships with clients, employees, suppliers or other parties resulting from the Merger; that most of our contracts may be terminated on short notice, and we may be unable to maintain large client contracts or to enter into new contracts; our financial results may be adversely affected if we underprice our contracts, overrun our cost estimates or fail to receive approval for or experience delays in documenting change orders; the historical indications of the relationship of our backlog to revenues may not be indicative of their future relationship; we may be unable to maintain our information systems or effectively update or protect them; client or therapeutic concentration could harm our business; our business is subject to risks associated with international operations, including economic, political and other risks, such as compliance with a myriad of laws and regulations, complications from conducting clinical trials in multiple countries simultaneously and changes in exchange rates; the market for our services may not grow as we expect; government regulators or our clients may limit the scope of prescription or withdraw products from the market, and government regulators may impose new regulatory requirements or may adopt new regulations affecting the biopharmaceutical industry; we may be unable to successfully develop and market new services or enter new markets; our failure to perform services in accordance with contractual requirements, regulatory standards and ethical considerations may subject us to significant costs or liability, which could also damage our reputation and cause us to lose existing business or not receive new business; our services are related to treatment of human patients, and we could face liability if a patient is harmed; we may be unable to successfully identify, acquire and integrate businesses, services and technologies; our investments in our clients’ businesses or drugs and our related commercial rights strategies could have a negative impact on our financial performance; we face risks arising from the restructuring of our operations; our restructuring plans may not result in the annualized cost savings we expect; and we have substantial indebtedness and may incur additional indebtedness in the future, which could adversely affect our financial condition. For a further discussion of the risks relating to our business, see Part I—Item 1A—“Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, as updated in this Quarterly Report on Form 10-Q.

Overview

Quintiles IMS Holdings, Inc. (“QuintilesIMS,” the “Company,” “we,” “our” and/or “us”) is a leading worldwide integrated information and technology-enabled healthcare service provider, dedicated to helping its clients improve their clinical, scientific and commercial results. Formed through the Merger of Quintiles and IMS Health on October 3, 2016, QuintilesIMS’s more than 55,000 employees conduct operations in over 100 countries. Companies seeking to improve real-world patient outcomes through treatment innovations, care provision and access can utilize our broad range of healthcare information, technology and service solutions to drive new insights and approaches. Our solutions span clinical to commercial, bringing our clients an opportunity to realize the full potential of innovations and advanced healthcare outcomes.

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We manage our business through three reportable segments, Commercial Solutions, Research & Development Solutions and Integrated Engagement Services. Commercial 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, provides outsourced clinical research and clinical trial related services. Integrated Engagement Services provides health care provider (including contract 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 and revenues from reimbursed expenses that are incurred while providing our services. We do not have any material product revenues. Our segment revenues expressed as a percent of revenues for the first nine months of 2017 (excluding reimbursed expense revenue) are as follows:

Commercial Solutions	44.1	%
Research & Development Solutions	45.8	%
Integrated Engagement Services	10.1	%

Reimbursed expenses are comprised primarily of payments to physicians (investigators) who oversee clinical trials and travel expenses for our clinical monitors principally within our Research & Development Solutions segment as well as travel expenses for our contract sales representatives within our Integrated Engagement Services segment. Reimbursed expenses may fluctuate from period-to-period due, in part, to where we are in the lifecycle of the many contracts that are in progress at a particular point in time. As reimbursed expenses are pass-through costs to our clients with little to no profit and we believe that the fluctuations from period-to-period are not meaningful to our underlying performance, we do not provide any analysis of the fluctuations in these items or their impact on our financial results. We have collection risk on contractually reimbursable expenses, and, from time to time, are unable to obtain reimbursement from the client for costs incurred. When such an expense is not reimbursed, it is classified as costs of revenue on the condensed consolidated statements of income.

Costs and Expenses

Our costs and expenses are comprised primarily of our costs of revenue, reimbursed expenses and selling, general and administrative expenses. Costs of revenue include compensation and benefits for billable employees and personnel involved in production, 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; and other expenses directly related to service contracts such as courier fees, laboratory supplies, professional services and travel expenses. As noted above, reimbursed expenses are comprised principally of payments to investigators who oversee clinical trials and travel expenses for our clinical monitors and sales representatives. Selling, general and administrative expenses include costs related to sales, marketing, and administrative functions (including human resources, legal, finance and general management) for compensation and benefits, travel, professional services, training and expenses for information technology (“IT”), facilities and depreciation and amortization.

Foreign Currency Translation

In the first nine months of 2017, approximately 41% of our revenues were denominated in currencies other than the United States Dollar. 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 revenue 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 providing business performance that excludes the effects of foreign currency rate fluctuations on certain financial results can facilitate analysis of 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.

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Consolidated Results of Operations

Summary Results of Operations

The following tables present a summary of our results of operations:

	Three							Three
	Months Ended		Change					Months Ended
	September 30,		Currency		Constant			September 30,
(in millions)	2016		Impact		Currency			2017
Revenues	$	1,137	$	2	$	880		$	2,019
Costs of revenue		696		—		469			1,165
Selling, general and administrative expenses		207		1		183			391
Depreciation and amortization		34		—		222			256
Impairment Charges		28		—		(28	)		—
Restructuring costs		—		—		10			10
Merger related costs		4		—		(4	)		—
Income from operations	$	168	$	1	$	28		$	197

	Nine								Nine
	Months Ended		Change						Months Ended
	September 30,		Currency			Constant			September 30,
(in millions)	2016		Impact			Currency			2017
Revenues	$	3,412	$	(26	)	$	2,513		$	5,899
Costs of revenue		2,125		(25	)		1,331			3,431
Selling, general and administrative expenses		623		(7	)		525			1,141
Depreciation and amortization		98		(1	)		636			733
Impairment Charges		28		—			12			40
Restructuring costs		28		1			9			38
Merger related costs		13		—			(13	)		—
Income from operations	$	497	$	6		$	13		$	516

Consolidated Results of Operations

For information regarding our results of operations for Commercial Solutions, Research & Development Solutions and Integrated Engagement Services, refer to “Segment Results of Operations” later in this section.

Revenues

	Three Months Ended September 30,				Change
(in millions)	2017		2016		$		%
Revenues	$	2,019	$	1,137	$	882		77.6	%

For the third quarter of 2017, our revenues increased $882 million, or 77.6%, as compared to the same period in 2016. This increase was comprised of constant currency revenue growth of approximately $880 million, or 77.4%, and a positive impact of approximately $2 million from the effects of foreign currency fluctuations. The constant currency revenue growth was comprised of an $815 million increase in Commercial Solutions and a $65 million increase in Research & Development Solutions.

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	Nine Months Ended September 30,				Change
(in millions)	2017		2016		$		%
Revenues	$	5,899	$	3,412	$	2,487		72.9	%

For the first nine months of 2017, our revenues increased $2,487 million, or 72.9%, as compared to the same period in 2016. This increase was comprised of constant currency revenue growth of approximately $2,513 million, or 73.7%, and a negative impact of approximately $26 million from the effects of foreign currency fluctuations. The constant currency revenue growth was comprised of a $2,385 million increase in Commercial Solutions, which includes $2,415 million from the Merger with IMS Health, partially offset by a decline in revenue from Encore during the first half of 2017 and the sale of the Encore business at the beginning of the third quarter of 2017, and a $128 million increase in Research & Development Solutions.

Costs of Revenue, exclusive of Depreciation and Amortization

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Costs of revenue	$	1,165		$	696		$	3,431		$	2,125
% of revenues		57.7	%		61.2	%		58.2	%		62.3	%

When compared to the same period in 2016, costs of revenues, exclusive of depreciation and amortization, in the third quarter of 2017 increased $469 million, or 67.4%. The constant currency growth was comprised of a $429 million increase in Commercial Solutions, which includes $440 million from the Merger with IMS Health, partially offset by Encore, which was sold at the beginning of the third quarter of 2017, a $39 million increase in Research & Development Solutions, and a $1 million increase in Integrated Engagement Services.

When compared to the same period in 2016, costs of revenues, exclusive of depreciation and amortization, in the first nine months of 2017 increased $1,306 million. This increase included a constant currency increase in expenses of approximately $1,331 million, or 62.6%, partially offset by a positive impact of approximately $25 million from the effects of foreign currency fluctuations. The constant currency growth was comprised of a $1,250 million increase in Commercial Solutions, which includes $1,275 million from the Merger with IMS Health, partially offset by lower costs from Encore during the first half of 2017 and the sale of the Encore business at the beginning of the third quarter of 2017, a $77 million increase in Research & Development Solutions, and a $4 million increase in Integrated Engagement Services.

As a percent of revenues, costs of revenues declined in the three and nine months ended September 30, 2017 to 57.7% and 58.2%, respectively, as compared to 61.2% and 62.3%, respectively, in the same periods in 2016. These declines were primarily as a result of the fact that the 2017 periods include a lower proportion of revenues from the lower margin Integrated Engagement Services segment, primarily as a result of the Merger.

Selling, General and Administrative Expenses, exclusive of Depreciation and Amortization

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Selling, general and administrative expenses	$	391		$	207		$	1,141		$	623
% of service revenues		19.4	%		18.2	%		19.3	%		18.3	%

The $184 million increase in selling, general and administrative expenses for the three months ended September 30, 2017, included a constant currency increase of $183 million, or 88.4%. The constant currency growth primarily consisted of a $154 million increase in Commercial Solutions, which includes $159 million from the Merger.  Also contributing to the increase was a higher level of general corporate and unallocated expenses of $20 million, primarily as a result of the Merger and an increase in Research & Development Solutions.

The $518 million increase in selling, general and administrative expenses for the nine months ended September 30, 2017, included a constant currency increase of $525 million, or 84.3%, partially offset by a positive impact of approximately $7 million from the effects of foreign currency fluctuations. The constant currency growth primarily consisted of a $437 million increase in Commercial Solutions, which includes $444 million from the Merger.  Also contributing to the increase was a higher level of general corporate and unallocated expenses of $97 million, primarily as a result of the Merger, which was partially offset by decreases in Research & Development Solutions and Integrated Engagement Services.

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Depreciation and Amortization

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Depreciation and amortization	$	256		$	34		$	733		$	98
% of service revenues		12.7	%		3.0	%		12.4	%		2.9	%

The $222 million and $635 million increases in depreciation and amortization in the three and nine months ended September 30, 2017, respectively, were primarily due to the approximately $6.4 billion of intangible assets acquired in the Merger with IMS Health.

Impairment Charges

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2017		2016		2017		2016
Impairment charges	$	—	$	28	$	40	$	28

During the nine months ended September 30, 2017, we recognized a $40 million goodwill and intangible impairment charge related to Encore.  This impairment charge is discussed further in Note 7 to our condensed consolidated financial statements included elsewhere in this Form 10-Q. During the three and nine months ended September 30, 2016, the Company recognized $28 million of impairment losses for other than temporary declines in fair value of goodwill ($23 million) and identifiable intangible assets ($5 million) related to Encore.

Restructuring Costs

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2017		2016		2017		2016
Restructuring costs	$	10	$	—	$	38	$	28

During the three and nine months ended September 30, 2017, we recognized $10 million and $38 million, respectively, of restructuring charges, net of reversals, for changes in estimates under our existing restructuring plans. During the nine months ended September 30, 2016, we recognized $28 million of restructuring charges, net of reversals, under our existing restructuring plans. The remaining actions under these plans are expected to occur throughout 2017 and into 2018 and are expected to consist of severance, facility closure and other exit-related costs.

Merger Related Costs

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2017		2016		2017		2016
Merger related costs	$	—	$	4	$	—	$	13

Merger related costs include the direct and incremental costs of the Merger with IMS Health such as investment banking, legal, accounting and consulting fees.

Interest Income and Interest Expense

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Interest income	$	(2	)	$	(1	)	$	(5	)	$	(2	)
Interest expense	$	93		$	25		$	249		$	73

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

Interest expense during the three and nine months ended September 30, 2017 was higher than the same periods in 2016 due to an increase in the average debt outstanding, primarily as a result of the debt assumed in the Merger and the refinancing transaction in the fourth quarter of 2016 (approximately $4.5 billion), the February 2017 issuance of €1,425 million (approximately $1,522 million) of 3.25% senior notes, the September 2017 issuance of €420 million (approximately $501 million) of 2.875% senior notes and the incremental term B loan of $750 million as discussed further in Note 10 to our condensed consolidated financial statements included elsewhere in this Form 10-Q.

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Loss on Extinguishment of Debt

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2017		2016		2017		2016
Loss on extinguishment of debt	$	18	$	—	$	21	$	—

During the three and nine months ended September 30, 2017, we recognized losses of $18 million and $21 million, respectively, on extinguishment of debt for fees and expenses incurred related to the refinancing of our senior notes and senior secured credit facilities as discussed further in Note 10 to our condensed consolidated financial statements included elsewhere in this Form 10-Q.

Other Expense, Net

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2017		2016		2017		2016
Other expense, net	$	3	$	1	$	9	$	3

Other expense, net for the three and nine months ended September 30, 2017 and 2016 primarily consisted of foreign currency net losses, partially offset by investment gains.

Income Tax Expense

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2017		2016		2017		2016
Income tax expense	$	—	$	39	$	5	$	118

The effective income tax rate was (0.5)% and 27.3% in the third quarter of 2017 and 2016, respectively, and 2.1% and 27.9% in the first nine months of 2017 and 2016, respectively. Our effective income tax rate was favorably impacted by a tax benefit of $58 million and $189 million in the three and nine months ended September 30, 2017, respectively, related to purchase accounting amortization of approximately $193 million and $561 million, respectively, as a result of the Merger. Additionally, as a result of newly issued tax guidance, our effective income tax rate was favorably impacted due to discrete income tax adjustments related to excess tax benefits on stock-based compensation of $5 million and $18 million in the three and nine months ended September 30, 2017, respectively.

Equity in Earnings (Losses) of Unconsolidated Affiliates

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2017		2016		2017		2016
Equity in earnings (losses) of unconsolidated affiliates	$	4	$	—	$	7	$	(1	)

Equity in earnings (losses) of unconsolidated affiliates primarily included earnings (losses) from our investment in NovaQuest Pharma Opportunities Fund III, L.P.

Net Income Attributable to Non-controlling Interests

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Net income attributable to non-controlling interests	$	(5	)	$	(4	)	$	(11	)	$	(11	)

Net income attributable to non-controlling interests primarily included Quest Diagnostics Incorporated’s interest in Q² Solutions.

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Segment Results of Operations

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

Three Months Ended September 30, 2017 and 2016
	Segment Revenues				Segment Profit						Segment Profit Margin
(in millions)	2017		2016		2017			2016			2017			2016
Commercial Solutions	$	887	$	72	$	239		$	7			26.9	%		9.7	%
Research & Development Solutions		938		869		257			238			27.4	%		27.4	%
Integrated Engagement Services		194		196		18			19			9.3	%		9.7	%
Total		2,019		1,137		514			264			25.5	%		23.2	%
General corporate and unallocated						(51	)		(30	)
Depreciation and amortization						(256	)		(34	)
Impairment charges						—			(28	)
Restructuring costs						(10	)		—
Merger related costs						—			(4	)
Consolidated	$	2,019	$	1,137	$	197		$	168

Nine Months Ended September 30, 2017 and 2016
	Segment Revenues				Segment Profit						Segment Profit Margin
(in millions)	2017		2016		2017			2016			2017			2016
Commercial Solutions	$	2,603	$	218	$	714		$	15			27.4	%		6.9	%
Research & Development Solutions		2,700		2,591		731			673			27.1	%		26.0	%
Integrated Engagement Services		596		603		59			57			9.9	%		9.5	%
Total		5,899		3,412		1,504			745			25.5	%		21.8	%
General corporate and unallocated						(177	)		(81	)
Depreciation and amortization						(733	)		(98	)
Impairment charges						(40	)		(28	)
Restructuring costs						(38	)		(28	)
Merger related costs						—			(13	)
Consolidated	$	5,899	$	3,412	$	516		$	497

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 for corporate overhead functions such as senior leadership, finance, human resources, information technology, facilities and legal. We do not allocate depreciation and amortization or restructuring costs to our segments.

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Commercial Solutions

	Three Months Ended September 30,						Change
(in millions)	2017			2016			$		%
Revenues	$	887		$	72		$	815	NM
Costs of revenue		480			51			429	NM
as a percentage of revenues		54.1	%		70.8	%
Selling, general and administrative		168			14			154	NM
as a percentage of revenues		18.9	%		19.4	%
Segment profit	$	239		$	7		$	232	NM
as a percentage of revenues		26.9	%		9.7	%

	Nine Months Ended September 30,						Change
(in millions)	2017			2016			$		%
Revenues	$	2,603		$	218		$	2,385	NM
Costs of revenue		1,407			158			1,249	NM
as a percentage of revenues		54.1	%		72.5	%
Selling, general and administrative		482			45			437	NM
as a percentage of revenues		18.5	%		20.6	%
Segment profit	$	714		$	15		$	699	NM
as a percentage of revenues		27.4	%		6.9	%

NM - Not meaningful.

Revenues

Commercial Solutions’ revenues were $887 million for the third quarter of 2017, an increase of $815 million over the same period in 2016, which includes the incremental impact from the Merger of $829 million, including post-Merger acquisitions, partially offset by Encore, which was sold at the beginning of the third quarter of 2017.

Commercial Solutions’ revenues were $2,603 million for the first nine months of 2017, an increase of $2,385 million over the same period in 2016, which includes the incremental impact from the Merger of $2,415 million, including post-Merger acquisitions, partially offset by a decline in revenue from Encore during the first half of 2017 and the sale of the Encore business at the beginning of the third quarter of 2017.

Costs of Revenue, exclusive of Depreciation and Amortization

Commercial Solutions’ costs of revenue increased approximately $429 million in the third quarter of 2017. This increase was related to a $429 million constant currency increase, which includes $440 million from the Merger, including post-Merger acquisitions, partially offset by Encore, which was sold at the beginning of the third quarter of 2017.

Commercial Solutions’ costs of revenue increased approximately $1,249 million in the first nine months of 2017. This increase was comprised of a $1,250 million constant currency increase, which includes $1,275 million from the Merger, including post-Merger acquisitions, partially offset by lower costs from Encore due to lower revenue volumes during the first half of 2017 and the sale of the Encore business at the beginning of the third quarter of 2017.

Selling, General and Administrative Expenses, exclusive of Depreciation and Amortization

Commercial Solutions’ selling, general and administrative expenses increased approximately $154 million in the third quarter 2017 as compared to the same period in 2016. This increase was primarily due to the incremental impact from the Merger of $159 million, including post-Merger acquisitions.

Commercial Solutions’ selling, general and administrative expenses increased approximately $437 million in the first nine months of 2017 as compared to the same period in 2016. This increase was primarily due to the incremental impact from the Merger of $444 million, including post-Merger acquisitions.

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Research & Development Solutions

	Three Months Ended September 30,						Change
(in millions)	2017			2016			$		%
Revenues	$	938		$	869		$	69		7.9	%
Costs of revenue		529			488			41		8.4	%
as a percentage of revenues		56.4	%		56.2	%
Selling, general and administrative expenses		152			143			9		6.3	%
as a percentage of revenues		16.2	%		16.5	%
Segment profit	$	257		$	238		$	19		8.0	%
as a percentage of revenues		27.4	%		27.4	%

	Nine Months Ended September 30,						Change
(in millions)	2017			2016			$			%
Revenues	$	2,700		$	2,591		$	109			4.2	%
Costs of revenue		1,543			1,484			59			4.0	%
as a percentage of service revenues		57.1	%		57.3	%
Selling, general and administrative expenses		426			434			(8	)		(1.8	)%
as a percentage of service revenues		15.8	%		16.8	%
Segment profit	$	731		$	673		$	58			8.6	%
as a percentage of service revenues		27.1	%		26.0	%

Backlog and Net New Business

We report contracted backlog and net new business for the Research & Development Solutions segment on a rolling basis for the last twelve months. Net new business totaled $4.37 billion and $4.44 billion for the 12 months ended September 30, 2017 and September 30, 2016, respectively. Ending backlog was $10.32 billion at September 30, 2017, and we expect $3.0 billion of this backlog to convert to revenue in the next 12 months.

Revenues

Research & Development Solutions’ revenues were $938 million in the third quarter of 2017, an increase of $69 million, or 7.9%, over the same period in 2016. This increase was comprised of constant currency service revenue growth of $65 million, or 7.5%, and a positive impact of approximately $4 million from the effects of foreign currency fluctuations.

Research & Development Solutions’ revenues were $2,700 million in the first nine months of 2017, an increase of $109 million, or 4.2%, over the same period in 2016. This increase was comprised of constant currency service revenue growth of $128 million, or 4.9%, partially offset by a negative impact of approximately $19 million from the effects of foreign currency fluctuations.

The constant currency revenue growth for both the three and nine months ended September 30, 2017 primarily included volume-related increases in our services from both our clinical solutions and services and our clinical trial support services and revenue from post-Merger acquisitions, partially offset by lower revenue from early clinical development services, due to a facility closing in Europe in 2016.

Costs of Revenue, exclusive of Depreciation and Amortization

Research & Development Solutions’ costs of revenue increased approximately $41 million in the third quarter of 2017 over the same period in 2016. This increase included constant currency growth of $39 million, or 8.0%.

Research & Development Solutions’ costs of revenue increased approximately $59 million in the first nine months of 2017 over the same period in 2016. This increase included constant currency growth of $77 million, or 5.2%, partially offset by $18 million from the positive effects of foreign currency fluctuations.

The constant currency costs of revenue growth was primarily due to an increase in compensation and related expenses and the impact from post-Merger acquisitions. The increase in compensation and related expenses resulted from (i) an increase in billable headcount resulting from the higher volume of constant currency revenue, (ii) our continued investment in our global delivery model that enables us to provide standardized, centrally-managed services from seven hub locations across five countries, and (iii) an increase in competition for qualified personnel in certain markets.

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Selling, General and Administrative Expenses, exclusive of Depreciation and Amortization

Research & Development Solutions’ selling, general and administrative expenses increased approximately $9 million, or 6.3%, in the third quarter of 2017 as compared to the same period in 2016. This increase was caused by a constant currency increase of $9 million, which was primarily due to the impact of post-Merger acquisitions.

Research & Development Solutions’ selling, general and administrative expenses decreased approximately $8 million, or 1.8%, in the first nine months of 2017 as compared to the same period in 2016. This decrease was caused by a constant currency decrease of $3 million coupled with a positive impact of approximately $5 million from the effects of foreign currency fluctuations. The constant currency decrease for the nine months ended September 30, 2017 was primarily due to lower travel expenses partially offset in part by the impact of post-Merger acquisitions.

Integrated Engagement Services

	Three Months Ended September 30,						Change
(in millions)	2017			2016			$			%
Revenues	$	194		$	196		$	(2	)		(1.0	)%
Costs of revenue		156			157			(1	)		(0.6	)%
as a percentage of revenues		80.4	%		80.1	%
Selling, general and administrative expenses		20			20			—			—
as a percentage of revenues		10.3	%		10.2	%
Segment profit	$	18		$	19		$	(1	)		(5.3	)%
as a percentage of revenues		9.3	%		9.7	%

	Nine Months Ended September 30,						Change
(in millions)	2017			2016			$			%
Revenues	$	596		$	603		$	(7	)		(1.2	)%
Costs of revenue		481			483			(2	)		(0.4	)%
as a percentage of service revenues		80.7	%		80.1	%
Selling, general and administrative expenses		56			63			(7	)		(11.1	)%
as a percentage of service revenues		9.4	%		10.4	%
Segment profit	$	59		$	57		$	2			3.5	%
as a percentage of service revenues		9.9	%		9.5	%

Revenues

Integrated Engagement Services’ revenues were $194 million in the third quarter of 2017, a decrease of $2 million, or 1.0%, over the same period in 2016. This decrease was primarily related to the effects of foreign currency fluctuations.

Integrated Engagement Services’ revenues were $596 million in the first nine months of 2017, a decrease of $7 million, or 1.2%, over the same period in 2016. This decrease was primarily related to the effects of foreign currency fluctuations.

Costs of Revenue, exclusive of Depreciation and Amortization

Integrated Engagement Services’ costs of revenue decreased approximately $1 million in the third quarter of 2017. This decrease included constant currency growth of $1 million, or 0.6%, more than offset by $2 million from the positive effects of foreign currency fluctuations.

Integrated Engagement Services’ costs of revenue decreased approximately $2 million in the first nine months of 2017. This decrease included constant currency growth of $4 million, or 0.8%, more than offset by $6 million from the positive effects of foreign currency fluctuations.

The constant currency cost of revenue growth in both the three and nine month periods in 2017 was due to an increase in compensation and related expenses resulting from an increase in billable headcount as a result of an increase in new projects starting up in the 2017 period.

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Selling, General and Administrative Expenses, exclusive of Depreciation and Amortization

Integrated Engagement Services’ selling, general and administrative expenses remained flat in the third quarter of 2017 as compared to the same period in 2016.

Integrated Engagement Services’ selling, general and administrative expenses decreased approximately $7 million in the first nine months of 2017 as compared to the same period in 2016.

The decrease for the nine month period in 2017 was primarily due to lower compensation and 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 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. Since the Merger, through September 30, 2017, we have transferred approximately $955 million from foreign subsidiaries to the United States.

We had a cash balance of $1,103 million at September 30, 2017 ($153 million of which was in the United States), a decrease from $1,198 million at December 31, 2016.

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 receivables financing facilities will enable us to fund our operating requirements and capital expenditures 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

During the first nine months of 2017, we repurchased 27,296,321 shares of our common stock for approximately $2.3 billion. These amounts included 9,677,420 shares of our common stock, which we repurchased from certain of our principal stockholders in a private transaction for approximately $750 million and 7,571,003 shares of our common stock, which we repurchased directly from underwriters in connection with two separate underwritten, secondary public offerings of shares of our common stock held by certain of our principal stockholders for approximately $680 million in the aggregate in May and September. See Note 11 to our condensed consolidated financial statements included elsewhere in this Form 10-Q for additional details regarding our repurchase program and the underwritten, secondary public offering of shares of our common stock.

As of September 30, 2017, we have remaining authorization to repurchase up to $295 million 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.

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Long-Term Debt

As of September 30, 2017, we had $9.8 billion of total indebtedness, excluding $900 million of additional available borrowings under our revolving credit facilities. The Company’s long-term debt arrangements contain usual and customary restrictive covenants, and as of September 30, 2017, we believe we were in compliance with our restrictive covenants in all material respects.

Senior Secured Credit Agreement and Senior Notes

During the third quarter of 2017, we issued €420 million (approximately $501 million) of senior notes due 2025. The senior notes mature on September 15, 2025 and bear an interest rate of 2.875%, which is paid semi-annually on March 15 and September 15, beginning on March 15, 2018. Also, during the third quarter of 2017 we entered into an amendment to provide for an incremental term B loan of $750 million and an increase in restricted payment capacity. The term B loan will mature in 2025 and bears a floating interest rate of LIBOR plus 2.00% per year. The net proceeds from the senior notes due 2025 and term B loan were used for the redemption of the outstanding 4.125% euro-denominated senior notes due 2023, to pay down the revolving credit facility, to pay certain fees and expenses and for other general corporate purposes, including the repurchase of the Company’s common stock and acquisitions.

During the first quarter of 2017, we issued €1.425 billion (approximately $1,522 million) of senior notes due 2025.  The senior notes mature on March 15, 2025 and bear an interest rate of 3.25% which is paid semi-annually on March 15 and September 15, beginning on September 15, 2017. Also during the first quarter of 2017, we refinanced our term B loans in which the maturity was extended to 2024 and the interest rate margin on the loan denominated in U.S. dollars was reduced from 2.50% to 2.00% and the interest rate margin on the loan denominated in Euros was reduced from 2.75% to 2.00%. See Note 10 to our condensed consolidated financial statements included elsewhere in this Form 10-Q for additional details regarding our credit arrangements.

Nine months ended September 30, 2017 and 2016

Cash Flow from Operating Activities

	Nine Months Ended September 30,
(in millions)	2017		2016
Net cash provided by operating activities	$	737	$	413

Cash provided by operating activities increased $324 million during the first nine months of 2017 as compared to the same period in 2016. Cash flows from operating activities reflects higher cash-related net income of $514 million, offset by higher payments for interest, income taxes and normal fluctuations in cash collections from clients and accounts payable. Cash collections from clients can vary significantly each reporting period depending on the timing of cash receipts under contractual payment terms relative to the recognition of revenue over a project lifecycle and the timing of renewals.

Cash Flow from Investing Activities

	Nine Months Ended September 30,
(in millions)	2017			2016
Net cash used in investing activities	$	(774	)	$	(82	)

Cash used in investing activities increased $692 million during the first nine months of 2017 as compared to the same period in 2016. The increase is primarily related to an increase of $525 million of cash used for the acquisition of businesses and $189 million of cash used for the acquisition of property, equipment and software.

Cash Flow from Financing Activities

	Nine Months Ended September 30,
(in millions)	2017			2016
Net cash used in financing activities	$	(117	)	$	(78	)

Cash used in financing activities increased $39 million during the first nine months of 2017 as compared to the same period in 2016. The increase in cash used in financing activities was primarily related to $2,154 million of higher cash used to repurchase common stock, partially offset by higher cash provided by debt issuances, net of repayments ($2,093 million) and $43 million from higher stock issued under employee stock purchase and option plans.

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Contractual Obligations and Commitments

We have various contractual obligations, which are recorded as liabilities in our consolidated financial statements. Other items, such as operating lease obligations, are not recognized as liabilities in our consolidated financial statements but are required to be disclosed.

With the exception of changes to our credit agreements and senior notes disclosed in Note 10 to the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q, there have been no material changes, outside of the ordinary course of business, to our contractual obligations as previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016.

Application of Critical Accounting Policies

With the exception of the changes to our accounting for certain income taxes disclosed in Note 1 to the condensed consolidated financial statements included elsewhere in this Form 10-Q, there have been no material changes to our critical accounting policies as previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016.

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 Annual Report on Form 10-K for the fiscal year ended December 31, 2016.

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.

In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.

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.

Item 1A. Risk Factors

For a discussion of the risks relating to our business, see Part I—Item 1A—“Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016. There have been no significant changes from the risk factors previously disclosed in our Annual Report.  

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities

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 Board approved 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 Board increased the stock repurchase authorization under the Repurchase Program with respect to the repurchase of our common stock by $600.0 million, $1.5 billion, $1.0 billion and $1.0 billion in 2015, November 2016, February 2017 and May 2017, respectively, which increased the total amount that has been authorized under the Repurchase Program to $4.225 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, 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. We may also repurchase shares of our common stock pursuant to a trading plan meeting the requirements of Rule 10b5-1 under the Exchange Act, which would permit shares of our common stock to be repurchased when we might otherwise be precluded from doing so by law. Repurchases of vested in-the-money employee stock options were made through transactions between us and our employees (other than our executive officers, who were not eligible to participate in the program), and this aspect of the Repurchase Program expired in November 2013. The Repurchase Program for common stock does not have an expiration date.

Since the Merger, we repurchased 40.1 million shares of our common stock at an average market price per share of $81.00 for an aggregate purchase price of $3,252 million under the Repurchase Program. From inception through September 30, 2017, we have repurchased a total of $3,930 million of our securities under the Repurchase Program, consisting of $59 million of stock options and $3,871 million of common stock. These amounts included 9,677,420 shares of our common stock which we repurchased from certain of our principal stockholders in a private transaction for approximately $750 million and 7,571,003 shares of our common stock which we repurchased directly from underwriters in connection with two separate underwritten, secondary public offerings of shares of our common stock held by certain of our principal stockholders for approximately $680 million in the aggregate in May and September 2017. See Note 11 to the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for details regarding the underwritten, secondary public offering of shares of our common stock.

As of September 30, 2017, we have remaining authorization to repurchase up to $295 million 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.

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The following table summarizes the monthly equity repurchase program activity for the three months ended September 30, 2017 and the approximate dollar value of shares that may yet be purchased pursuant to the Repurchase Program. In addition, the table 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.

(in thousands, except share and 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, 2017 — July 31, 2017		—	$	—		—	$	852,670
August 1, 2017 — August 31, 2017		1,958,878	$	90.79		1,958,878	$	674,810
September 1, 2017 — September 30, 2017		4,001,998	$	94.90		4,000,000	$	295,216
		5,960,876				5,958,878

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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
4.1	Indenture, dated September 14, 2017, among Quintiles IMS Incorporated, as Issuer, U.S. Bank National Association, as trustee of the Notes, and certain subsidiaries of the Issuer as guarantors.		8-K	001-35907	4.1	September 19, 2017
10.1	Amendment No. 2, dated September 18, 2017, to Fourth Amended and Restated Credit Agreement, by and among Quintiles IMS Incorporated, Quintiles IMS Holdings, Inc., the Guarantors party thereto and the Incremental Term B-2 Dollar Lenders party thereto.		8-K	001-35907	10.1	September 19, 2017
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), and (v) Notes to Condensed Consolidated Financial Statements (unaudited).	X

38

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 27, 2017.

QUINTILES IMS HOLDINGS, INC.

/s/ Michael R. McDonnell

Michael R. McDonnell

Executive Vice President and Chief Financial Officer

(On behalf of the Registrant and as Principal Financial Officer)

39

EX-31.1

Exhibit 31.1

CERTIFICATION OF PERIODIC REPORT UNDER SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Ari Bousbib, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Quintiles IMS Holdings, Inc. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 27, 2017
	/s/ Ari Bousbib
	Ari Bousbib
	Chairman, Chief Executive Officer and President
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PERIODIC REPORT UNDER SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Michael R. McDonnell, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Quintiles IMS Holdings, Inc. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 27, 2017
	/s/ Michael R. McDonnell
	Michael R. McDonnell
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

I, Ari Bousbib, Chairman, Chief Executive Officer and President of Quintiles IMS Holdings, Inc. (the “Company”), do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) the Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2017 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein.

Date: October 27, 2017
	/s/ Ari Bousbib
	Ari Bousbib
	Chairman, Chief Executive Officer and President
	(Principal Executive Officer)

This certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not be deemed “filed” by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Report, irrespective of any general incorporation language contained in such filing.

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

I, Michael R. McDonnell, Executive Vice President and Chief Financial Officer of Quintiles IMS Holdings, Inc. (the “Company”), do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) the Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2017 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein.

Date: October 27, 2017
	/s/ Michael R. McDonnell
	Michael R. McDonnell
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)

This certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not be deemed “filed” by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Report, irrespective of any general incorporation language contained in such filing.

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 23, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Trading Symbol	Q
Entity Registrant Name	Quintiles IMS Holdings, Inc.
Entity Central Index Key	0001478242
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		211,313,493

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenues	$ 2,019	$ 1,137	$ 5,899	$ 3,412
Reimbursed expenses	446	360	1,263	1,128
Total revenues	2,465	1,497	7,162	4,540
Costs of revenue, exclusive of depreciation and amortization	1,165	696	3,431	2,125
Costs of revenue, reimbursed expenses	446	360	1,263	1,128
Selling, general and administrative expenses	391	207	1,141	623
Depreciation and amortization	256	34	733	98
Impairment charges		28	40	28
Restructuring costs	10		38	28
Merger related costs		4		13
Income from operations	197	168	516	497
Interest income	(2)	(1)	(5)	(2)
Interest expense	93	25	249	73
Loss on extinguishment of debt	18		21
Other expense, net	3	1	9	3
Income before income taxes and equity in earnings (losses) of unconsolidated affiliates	85	143	242	423
Income tax expense		39	5	118
Income before equity in earnings (losses) of unconsolidated affiliates	85	104	237	305
Equity in earnings (losses) of unconsolidated affiliates	4		7	(1)
Net income	89	104	244	304
Net income attributable to non-controlling interests	(5)	(4)	(11)	(11)
Net income attributable to Quintiles IMS Holdings, Inc.	$ 84	$ 100	$ 233	$ 293
Earnings per share attributable to common stockholders:
Basic	$ 0.39	$ 0.83	$ 1.06	$ 2.45
Diluted	$ 0.38	$ 0.82	$ 1.04	$ 2.41
Weighted average common shares outstanding:
Basic	214.3	118.9	220.7	119.3
Diluted	219.0	121.2	225.4	121.4

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 89	$ 104	$ 244	$ 304
Comprehensive income adjustments:
Unrealized gains (losses) on derivative instruments, net of income tax expense (benefit) of $1, $1, ($2) and ($7)	2		1	(19)
Foreign currency translation, net of income tax benefit of ($59), ($1), ($138) and ($6)	156	(11)	495	(34)
Reclassification adjustments:
(Gains) losses on derivative instruments included in net income, net of income tax expense of $—, $2, $— and $4	(2)	7		14
Comprehensive income	245	100	740	265
Comprehensive income attributable to non-controlling interests	(8)	(2)	(16)	(2)
Comprehensive income attributable to Quintiles IMS Holdings, Inc.	$ 237	$ 98	$ 724	$ 263

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement Of Income And Comprehensive Income [Abstract]
Unrealized gains (losses) on derivative instruments, income taxes	$ 1	$ 1	$ (2)	$ (7)
Foreign currency translation, income taxes	$ (59)	(1)	$ (138)	(6)
(Gains) losses on derivative instruments included in net income, income taxes		$ 2		$ 4

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 1,103	$ 1,198
Trade accounts receivable and unbilled services, net	1,859	1,707
Prepaid expenses	146	123
Income taxes receivable	56	34
Investments in debt, equity and other securities	44	40
Other current assets and receivables	284	235
Total current assets	3,492	3,337
Property and equipment, net	428	406
Investments in debt, equity and other securities	8	13
Investments in unconsolidated affiliates	67	69
Goodwill	11,598	10,727
Other identifiable intangibles, net	6,567	6,390
Deferred income taxes	93	89
Deposits and other assets	192	177
Total assets	22,445	21,208
Current liabilities:
Accounts payable and accrued expenses	1,894	1,743
Unearned income	782	774
Income taxes payable	60	76
Current portion of long-term debt	103	92
Other current liabilities	14	20
Total current liabilities	2,853	2,705
Long-term debt	9,651	7,108
Deferred income taxes	2,014	2,133
Other liabilities	420	402
Total liabilities	14,938	12,348
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in capital, 400.0 shares authorized at September 30, 2017 and December 31, 2016, $0.01 par value, 276.5 and 248.3 shares issued at September 30, 2017 and December 31, 2016, respectively	10,761	10,602
Accumulated deficit	(166)	(399)
Treasury stock, at cost, 40.2 and 12.9 shares at September 30, 2017 and December 31, 2016, respectively	(3,252)	(1,000)
Accumulated other comprehensive loss	(79)	(570)
Equity attributable to Quintiles IMS Holdings, Inc.’s stockholders	7,264	8,633
Non-controlling interests	243	227
Total stockholders’ equity	7,507	8,860
Total liabilities and stockholders’ equity	$ 22,445	$ 21,208

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Common stock, shares authorized	400,000,000	400,000,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	276,500,000	248,300,000
Treasury stock, shares	40,200,000	12,900,000

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities:
Net income	$ 244	$ 304
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	733	98
Amortization of debt issuance costs and discount	6	5
Amortization of accumulated other comprehensive loss on terminated interest rate swaps	3	3
Stock-based compensation	82	34
Impairment of goodwill and identifiable intangible assets	40	28
Loss from unconsolidated affiliates	4	5
Benefit from deferred income taxes	(139)	(4)
Excess income tax benefits from stock-based award activities		(14)
Changes in operating assets and liabilities:
Change in accounts receivable, unbilled services and unearned income	(85)	(16)
Change in other operating assets and liabilities	(151)	(30)
Net cash provided by operating activities	737	413
Investing activities:
Acquisition of property, equipment and software	(267)	(78)
Acquisition of businesses, net of cash acquired	(525)
Disposition of business, net of cash disposed	12
Purchase of trading securities		(39)
Proceeds from corporate owned life insurance policies		21
Proceeds from sale of cost method investments		26
Investments in unconsolidated affiliates, net of payments received	5	(13)
Other	1	1
Net cash used in investing activities	(774)	(82)
Financing activities:
Proceeds from issuance of debt	5,242
Payment of debt issuance costs	(53)
Repayment of debt and principal payments on capital lease obligations	(2,858)	(37)
Proceeds from revolving credit facility	1,222
Repayment of revolving credit facility	(1,497)
Stock issued under employee stock purchase and option plans	86	43
Repurchase of common stock	(2,252)	(98)
Distributions to non-controlling interest	(3)
Excess income tax benefits from stock-based award activities		14
Contingent consideration and deferred purchase price payments	(4)
Net cash used in financing activities	(117)	(78)
Effect of foreign currency exchange rate changes on cash	59	(20)
(Decrease) increase in cash and cash equivalents	(95)	233
Cash and cash equivalents at beginning of period	1,198	977
Cash and cash equivalents at end of period	$ 1,103	$ 1,210

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

1. Summary of Significant Accounting Policies

The Company

Conducting business in more than 100 countries with over 55,000 employees, Quintiles IMS Holdings, Inc. (together with its subsidiaries, the “Company” or “QuintilesIMS”) is a leading integrated information and technology-enabled healthcare service provider worldwide, dedicated to helping its clients improve their clinical, scientific and commercial results.

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, 2017. 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, 2016. The balance sheet at December 31, 2016 has been derived from the audited consolidated financial statements of the Company but does not include all the disclosures required by GAAP.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current presentation, including the reclassification of depreciation and amortization from costs of revenue and selling, general and administrative expenses to a separate caption on the accompanying condensed consolidated statements of income. These changes had no effect on previously reported total revenues, net income, comprehensive income, stockholders’ equity or cash flows.

Income Taxes

Income tax expense includes United States federal, state and international income taxes. Certain items of income and expense are not reported in income tax returns and financial statements in the same year. The income tax effects of these differences are reported as deferred income taxes. Valuation allowances are provided to reduce the related deferred income tax assets to an amount which will, more likely than not, be realized. In addition, the Company does not consider the historical undistributed foreign earnings of most of its foreign subsidiaries to be indefinitely reinvested. The Company does consider the majority of its current year undistributed foreign earnings to be indefinitely reinvested. To the extent undistributed foreign earnings are not indefinitely reinvested, the Company records deferred income taxes on these earnings. Interest and penalties related to unrecognized income tax benefits are recognized as a component of income tax expense.

Recently Issued Accounting Standards

Accounting pronouncement adopted

In August 2016, the FASB issued new accounting guidance which eliminates the diversity in practice related to the cash flow classification of certain cash receipts and payments including debt prepayment or extinguishment payments, payments upon maturity of a zero coupon bond, payment of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions received from certain equity method investees, and cash flows related to beneficial interests obtained in a financial asset securitization. The Company adopted this new accounting guidance retrospectively on January 1, 2017. The new guidance designates the appropriate cash flow statement classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities.  In the absence of specific guidance, each separately identifiable cash source and use will be classified on the basis of the nature of the underlying cash flows.  

In March 2016, the United States Financial Accounting Standards Board (“FASB”) issued new accounting guidance which simplifies several aspects of the accounting for employee stock-based compensation transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, and the classification of excess income tax benefits on the statement of cash flows. The Company adopted this new accounting guidance prospectively on January 1, 2017. Under the new accounting guidance, excess income tax benefits related to stock-based awards are reflected as a reduction of income tax expense on the statements of income and as cash provided from operating activities on the statements of cash flows. In the prior periods, these tax benefits were reflected directly in additional paid in capital and as cash provided from financing activities. The adoption of this new accounting guidance did not impact the Company’s recognition of its stock-based compensation expense or its presentation of cash flows related to employee taxes paid for withheld shares.

Accounting pronouncements being evaluated

In August 2017, the FASB issued new accounting guidance which will allow more financial and nonfinancial hedging strategies to be eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess hedge effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. The new accounting guidance will be effective for the Company on January 1, 2019. The Company is currently evaluating the impact of this new accounting guidance on its consolidated financial statements.

In March 2017, the FASB issued new accounting guidance which requires the service cost component of net periodic benefit cost be presented in the same income statement line item as other employee compensation costs, and requires that the other components of net periodic benefit expense be recognized in the non-operating section of the income statement. In addition, only the service cost component of net periodic benefit expense is eligible for capitalization when applicable.  The new accounting guidance will be effective for the Company on January 1, 2018. The Company is currently evaluating the impact of this new accounting guidance on its consolidated financial statements.

In January 2017, the FASB issued new accounting guidance that changes the definition of a business to clarify when a set of assets does not constitute a business. Under the new definition, when substantially all of the fair value of gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set of assets is generally not a business. The new accounting guidance will be effective for the Company on January 1, 2018. The Company is currently evaluating the impact of this new accounting guidance on its consolidated financial statements.

In February 2016, the FASB issued new accounting guidance which requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. The income statement will reflect lease expense for operating leases, and amortization and interest expense for financing leases. The new accounting guidance will be effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of this new accounting guidance on its consolidated financial statements.

In January 2016, the FASB issued new accounting guidance which modifies how entities measure equity investments and present changes in the fair value of financial liabilities. The new accounting guidance will be effective for annual reporting periods beginning after December 15, 2017. Early adoption of the presentation guidance is permitted; however, early adoption of the recognition and measurement guidance is not permitted. The adoption of this new accounting guidance is not expected to have a material effect on the Company’s consolidated financial statements.

In May 2014, the FASB and the International Accounting Standards Board issued a converged standard on the recognition of revenue from contracts with clients. The objective of the new standard is to establish a single comprehensive revenue recognition model that is designed to create greater comparability of financial statements across industries and jurisdictions. Under the new standard, companies will recognize revenue to depict the transfer of goods or services to clients in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The Company has concluded that the majority of the clinical trial arrangements in its Research & Development Solutions segment will represent a single performance obligation.  The Company expects to account for revenue for this single performance obligation over time using project cost as an input method to measure progress.  Our arrangements in the Commercial Solutions and Integrated Engagement Services segments are generally multiple element arrangements under which current rules require the deferral of revenue when payment on a delivered unit of accounting is contingent on performing on a future unit of accounting.  We currently anticipate that under the new standard these arrangements will consist of multiple performance obligations and that such deferral of revenue will in some cases be lower (or zero) when management determines that it is probable that performance on the future performance obligation will occur. The new standard will require expanded disclosures on revenue recognition, including information about changes in assets and liabilities that result from contracts with clients. The new standard allows for either a retrospective or prospective approach to transition upon adoption. The new standard will be effective for annual reporting periods beginning after December 15, 2017. The Company will adopt the new standard on January 1, 2018. The Company is still evaluating the impact of this new standard as well as the transition approach that will be used upon adoption.

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Employee Stock Compensation

9 Months Ended

Sep. 30, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Employee Stock Compensation

2. Employee Stock Compensation

Stock Incentive Plans

The Company granted the following number of stock-based awards:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Stock options		—		—		—		783,700
Stock appreciation rights - stock settled		22,138		—		1,917,819		—
Stock appreciation rights - cash settled		—		15,200		15,227		40,400
Restricted stock awards		—		86,356		254,582		86,356
Restricted stock units - stock settled		19,032		120,845		30,962		494,681
Restricted stock units - cash settled		—		—		3,715		—
Performance awards		—		—		76,374		—
Performance units		5,272		—		430,076		119,839

The Company had the following number of stock-based awards outstanding:

	September 30, 2017		December 31, 2016
Stock options		4,535,216		7,251,339
Stock appreciation rights - stock settled		2,962,261		1,313,322
Stock appreciation rights - cash settled		363,503		479,176
Restricted stock awards		617,551		367,053
Restricted stock units - stock settled		1,354,080		1,720,817
Restricted stock units - cash settled		3,715		—
Performance awards		76,374		—
Performance units		402,560	—

The Company used the following assumptions when estimating the value of the stock-based compensation for stock options and stock appreciation rights issued as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Expected volatility	22 – 24%		26 – 29%		22 – 25%		26 – 30%
Weighted average expected volatility		23%		27%		24%		28%
Expected dividends		0.0%		0.0%		0.0%		0.0%
Expected term (in years)	3.9 – 6.9		3.6 – 6.6		1.0 – 6.9		3.6 – 6.6
Risk-free interest rate	1.71 – 2.15%		0.96 – 1.36%		1.16 – 2.21%		0.80 – 1.57%

The Company’s employee stock purchase plan was discontinued effective December 31, 2016. The Company recognized stock-based compensation expense of $29 million and $16 million during the three months ended September 30, 2017 and 2016, respectively, and $82 million and $34 million during the nine months ended September 30, 2017 and 2016, respectively.  As of September 30, 2017, there was approximately $129 million of total unrecognized stock-based compensation expense related to outstanding non-vested stock-based compensation arrangements, which the Company expects to recognize over a weighted average period of 1.3 years.

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Concentration of Credit Risk

9 Months Ended

Sep. 30, 2017

Risks And Uncertainties [Abstract]

Concentration of Credit Risk

3. Concentration of Credit Risk

No client accounted for 10% or more of consolidated revenues for the three and nine months ended September 30, 2017 or 2016.

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Accounts Receivable and Unbilled Services

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Accounts Receivable and Unbilled Services

4. Accounts Receivable and Unbilled Services

Accounts receivable and unbilled services consist of the following:

(in millions)	September 30, 2017			December 31, 2016
Trade:
Billed	$	1,044		$	998
Unbilled services		828			723
		1,872			1,721
Allowance for doubtful accounts		(13	)		(14	)
	$	1,859		$	1,707

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Investments-Debt, Equity and Other Securities

9 Months Ended

Sep. 30, 2017

Investments Debt And Equity Securities [Abstract]

Investments-Debt, Equity and Other Securities

5. Investments – Debt, Equity and Other Securities

The Company’s short-term investments in debt, equity and other securities consist primarily of trading investments in mutual funds and are measured at fair value with realized and unrealized gains and losses recorded in other expense, net on the accompanying condensed consolidated statements of income.

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Variable Interest Entities

9 Months Ended

Sep. 30, 2017

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Variable Interest Entities

6. Variable Interest Entities

As of September 30, 2017, the Company’s investments in unconsolidated variable interest entities (“VIEs”) and its estimated maximum exposure to loss were as follows:

(in millions)	Investments in Unconsolidated VIEs		Maximum Exposure to Loss
NovaQuest Pharma Opportunities Fund III, L.P. (“NovaQuest Fund III”)	$	30	$	37
NovaQuest Pharma Opportunities Fund IV, L.P. (“NovaQuest Fund IV”)		7		17
Pappas Life Science Ventures V, L.P. (“Pappas Fund V”)		1		5
	$	38	$	59

The Company has determined that these funds are VIEs but that the Company is not the primary beneficiary as it does not have a controlling financial interest in these funds. However, because the Company has the ability to exercise significant influence, it accounts for its investments in these funds under the equity method of accounting and records its pro rata share of earnings and losses in equity in (losses) earnings of unconsolidated affiliates on the accompanying condensed consolidated statements of income. The investment assets of unconsolidated VIEs are included in investments in and advances to unconsolidated affiliates on the accompanying condensed consolidated balance sheets.

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Goodwill and Identifiable Intangible Assets

9 Months Ended

Sep. 30, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Identifiable Intangible Assets

7. Goodwill and Identifiable Intangible Assets

The following is a summary of goodwill by reportable segment for the nine months ended September 30, 2017:

				Research &		Integrated
	Commercial			Development		Engagement
(in millions)	Solutions			Solutions		Services		Consolidated
Balance as of December 31, 2016	$	9,415		$	1,196	$	116	$	10,727
Business combinations		214			176		—		390
Impairment		(40	)		—		—		(40	)
Impact of foreign currency fluctuations and other		510			10		1		521
Balance as of September 30, 2017	$	10,099		$	1,382	$	117	$	11,598

During the second quarter of 2017, we determined there was sufficient indication that the carrying value of our investment in Encore Health Resources LLC (“Encore”) should be reviewed for further impairment due to its continued decline in performance.  The Company proceeded to perform an impairment assessment which resulted in the recognition of a goodwill impairment of $39.6 million, which represented the remaining amount of goodwill associated with Encore, and an intangible asset impairment of $0.4 million for other-than-temporary declines in fair value.  On July 12, 2017, the Company completed the sale of Encore to an unrelated third party. As of September 30, 2017, accumulated goodwill impairment losses were $63 million, solely related to Encore.

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Derivatives

9 Months Ended

Sep. 30, 2017

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives

8. Derivatives

Foreign Exchange Risk Management

As of September 30, 2017, the Company held foreign currency forward contracts to (i) hedge certain forecasted foreign exchange cash flows arising from service contracts (“Service Contract Hedging”) and (ii) hedge non-United States Dollar anticipated intercompany royalties (“Royalty Hedging”). It is the Company’s policy to enter into foreign currency transactions only to the extent necessary to reduce earnings and cash flow volatility associated with foreign exchange rate movements. The Company does not enter into foreign currency transactions for investment or speculative purposes.

As of September 30, 2017, the Company had 57 open Service Contract Hedging and Royalty Hedging contracts to hedge certain forecasted foreign currency cash flow transactions occurring in 2017 and 2018 with notional amounts totaling $294 million. For accounting purposes these hedges are considered highly effective. As of September 30, 2017 and December 31, 2016, the Company had recorded gross unrealized gains (losses) of $6 million and ($7) million and $11 million and ($9) million, respectively, related to these contracts. Upon expiration of the hedge instruments during 2017 and 2018, the Company will reclassify the unrealized holding gains and losses on the derivative instruments included in accumulated other comprehensive income (loss) (“AOCI”) into earnings. The unrealized gains (losses) are included in other current assets and liabilities on the accompanying condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016.

Interest Rate Risk Management

The Company purchases interest rate caps and has entered into interest rate swap agreements for purposes of managing its exposure to interest rate fluctuations.

On June 9, 2011, the Company entered into six interest rate swaps which expired between September 30, 2013 and March 31, 2016, in an effort to limit its exposure to changes in the variable interest rate on its senior secured credit facilities. During May 2015, the Company terminated the remaining open interest rate swaps for a cash payment to the counterparty of $12 million, which included $1 million of accrued interest. Since the hedged forecasted cash transactions continued to be probable of occurring, the accumulated loss ($3 million at December 31, 2015) related to the terminated interest rate swaps in AOCI was reclassified to earnings as a component of interest expense in the same periods as the hedged forecasted transactions occurred over the first three months of 2016.

The Company, through the merger with IMS Health described in Note 12 below, has United States Dollar denominated interest rate caps (the “2014 Caps”) with a total notional value of $700 million at strike prices between 2% and 3% in an effort to limit its exposure to changes in the variable interest rate on its senior secured credit facilities. The 2014 Caps commenced at various times between April 2014 and April 2016 and expire in April 2019.   The 2014 Caps are accounted for as cash flow hedges.  

The Company, through the merger with IMS Health, has United States Dollar and Euro denominated interest rate swap agreements (the “2014 USD Swap” and “2014 EUR Swap”) to limit its exposure to changes in the variable interest rate on its senior secured credit facilities. The 2014 USD Swap and 2014 EUR Swap began accruing interest in April and June 2014,  respectively, and expire in March 2019 and March 2021, respectively. On these agreements, the Company pays fixed rates of 2.1% to 1.65%, respectively, and receives variable rates of interest equal to the greater of three-month United States Dollar London Interbank Offered Rate (“LIBOR”) or three-month Euro Interbank Offered Rate (“EURIBOR”), and 1%.

On June 3, 2015, the Company entered into seven forward starting interest rate swaps (the “2015 Swaps”) in an effort to limit its exposure to changes in the variable interest rate on its senior secured credit facilities. Interest on the swaps began accruing on June 30, 2016, and the interest rate swaps expire at various times from March 2017 through March 2020. The Company pays a fixed rate ranging from 1.3% to 2.1% and receives a variable rate of interest equal to the three-month LIBOR on these agreements.

The critical terms of the 2015 Swaps are substantially the same as the underlying borrowings. These interest rate swaps are being accounted for as cash flow hedges as these transactions were executed to hedge the Company’s interest payments and for accounting purposes these hedges are highly effective. As such, the effective portion of the hedges is recorded as unrealized gains (losses) on derivatives included in AOCI and the ineffective portion of the hedges is recognized in earnings. The 2014 EUR Swap (notional value $343 million) ceased to be considered a highly effective hedge for accounting purposes when the underlying debt was refinanced on March 7, 2017. As such, the Company discontinued hedge accounting on that date and prospective changes in the fair value of the 2014 EUR Swap are recognized in earnings. The 2014 USD Swap (notional value $100 million) ceased to be considered a highly effective hedge for accounting purposes this quarter and as such, the Company has discontinued hedge accounting and prospective changes in the fair value of the 2014 USD Swap are recognized in earnings.  The fair value of these interest rate swaps represents the present value of the anticipated net payments the Company will make to the counterparty, which, when they occur, are reflected as interest expense on the consolidated statements of income. These interest rate swaps will result in a total debt mix of approximately 57% fixed rate debt and 43% variable rate debt, before the additional protection arising from the interest rate caps.

Net Investment Risk Management

Subsequent to the merger with IMS Health, the Company designated its foreign currency denominated debt as a hedge of its net investment in certain foreign subsidiaries to reduce the volatility in stockholders’ equity caused by changes in the Euro exchange rate with respect to the United States Dollar. As of September 30, 2017, these borrowings (net of original issue discount) were €4,044 million ($4,779 million). The effective portion of foreign exchange gains or losses on the remeasurement of the debt is recognized in the cumulative translation adjustment component of AOCI with the related offset in long-term debt. Those amounts will be reclassified from AOCI to earnings upon the sale or substantial liquidation of these net investments. The amount of foreign exchange losses related to the net investment hedge included in the cumulative translation adjustment component of AOCI for the nine months ended September 30, 2017 was $490 million.

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:

		September 30, 2017						December 31, 2016
(in millions)	Balance Sheet Classification	Assets		Liabilities		Notional		Assets		Liabilities		Notional
Derivatives designated as hedging instruments:
Foreign exchange forward contracts	Other current assets and liabilities	$	6	$	7	$	294	$	11	$	9	$	300
Interest rate swaps	Other liabilities		—		4		405		—		15		945
Interest rate caps	Deposits and other assets		—		—		700		1		—		1,000
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Other current liabilities		—		—		—		—		1		189
Interest rate swaps	Other liabilities		—		8		443		—		—		—
Total derivatives		$	6	$	19			$	12	$	25

The effect of the Company’s cash flow hedging instruments on other comprehensive (loss) income is summarized in the following table:

	Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)	2017			2016		2017			2016
Foreign exchange forward contracts	$	(2	)	$	4	$	(7	)	$	(3	)
Interest rate swaps		3			4		5			(6	)
Total	$	1		$	8	$	(2	)	$	(9	)

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Fair Value Measurements

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

9. 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 at September 30, 2017 and December 31, 2016 due to their short-term nature. At September 30, 2017 and December 31, 2016, the fair value of total debt approximated $9,988 million and $7,298 million, respectively, as determined under Level 2 measurements based on quoted prices 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 September 30, 2017:

(in millions)	Level 1		Level 2		Level 3		Total
Assets:
Trading securities	$	44	$	—	$	—	$	44
Derivatives		—		6		—		6
Total	$	44	$	6	$	—	$	50
Liabilities:
Derivatives	$	—	$	19	$	—	$	19
Contingent consideration		—		—		63		63
Total	$	—	$	19	$	63	$	82

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

Trading securities — The Company values trading securities using the quoted market value of the securities held.

Derivatives — Derivatives consist of foreign exchange contracts and interest rate caps and 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 caps and 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. Key assumptions used to estimate the fair value of contingent consideration include various financial metrics (revenue performance targets, operating forecasts) and the probability of achieving the specific targets.

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

	Contingent Consideration – Accounts Payable and Accrued Expenses
(in millions)	2017			2016
Balance as of January 1	$	18		$	4
Business combinations		52			—
Contingent consideration paid		(4	)		—
Revaluations included in earnings and foreign currency translation adjustments		(3	)		1
Balance as of September 30	$	63		$	5

Revaluations of the contingent consideration are recognized in other expense (income), net on the accompanying condensed consolidated statements of income.

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Credit Arrangements

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Credit Arrangements

10. Credit Arrangements

The following is a summary of the Company’s revolving credit facilities at September 30, 2017:

Facility	Interest Rates
$1,000 million (revolving credit facility)	LIBOR in the relevant currency borrowed plus a margin of 2.00% at September 30, 2017
$25 million (receivables financing facility)	United States LIBOR plus a margin of 0.85% at September 30, 2017 depending upon the Company’s debt rating
£10 million (approximately $13 million) general banking facility with a European headquartered bank	Bank’s base rate of 0.25% at September 30, 2017 plus 1%

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

(in millions)	September 30, 2017			December 31, 2016
Senior Secured Credit Facilities:
Term A Loan due 2021—U.S. Dollar LIBOR at average floating rates of 3.33%	$	855		$	888
Term A Loan due 2021—Euro LIBOR at average floating rates of 2.00%		453			419
Term B Loan due 2025—U.S. Dollar at average floating rates of 3.32%		750			—
Term B Loan due 2024—U.S. Dollar LIBOR at average floating rates of 3.33%		1,191			—
Term B Loan due 2024—Euro LIBOR at average floating rates of 2.75%		1,407			—
Term B Loan due 2021—U.S. Dollar LIBOR at average floating rates of 3.50%		—			1,700
Term B Loan due 2021—Euro LIBOR at average floating rates of 3.75%		—			765
Revolving Credit Facility due 2021:
U.S. Dollar denominated borrowings—U.S. Dollar LIBOR at average floating rates of 3.23%		100			375
5.0% Senior Notes due 2026—U.S. Dollar denominated		1,050			1,050
2.875% Senior Notes due 2025—Euro denominated		496			—
3.25% Senior Notes due 2025—Euro denominated		1,684			—
3.5% Senior Notes due 2024—Euro denominated		739			658
4.125% Senior Notes due 2023—Euro denominated		—			289
4.875% Senior Notes due 2023—U.S. Dollar denominated		800			800
Receivables financing facility due 2018—U.S. Dollar LIBOR at average floating rate of 2.08%		275			275
Principal amount of debt		9,800			7,219
Less: unamortized discount and debt issuance costs		(46	)		(19	)
Less: current portion		(103	)		(92	)
Long-term debt	$	9,651		$	7,108

Contractual maturities of long-term debt are as follows at September 30, 2017:

(in millions)
Remainder of 2017	$	26
2018		378
2019		103
2020		103
2021		1,218
Thereafter		7,972
	$	9,800

At September 30, 2017, there were bank guarantees totaling approximately £5 million (approximately $6 million) issued against the availability of the general banking facility.

During the first nine months of 2017, the Company borrowed and repaid $1,222 million and $1,497 million, respectively, under its revolving credit facilities.

Senior Secured Facilities

At September 30, 2017, the Company’s senior credit facility provided financing of up to approximately $5,656 million, which consisted of $4,756 million principal amount of debt outstanding (as detailed in the table above) and $900 million of available borrowing capacity on the $1,000 million revolving credit facility that expires in 2021.

On September 18, 2017, the Company amended its senior credit facility agreement (the “Amendment”) to provide for an incremental term B loan of $750 million and to increase the facility’s restricted payment capacity, specifically an increase to the total net leverage ratio conditions for unlimited restricted investments from 4.25-to-1.00 to 4.50-to-1.00 and for dividends and distributions from 4.00-to-1.00 to 4.50-to-1.00. The new term B loan will mature in 2025 and bear a floating interest rate of LIBOR plus 2.00% per year.

On March 7, 2017, the Company refinanced all of its term B loans due 2021—U.S. dollar denominated (approximately $1,700 million) and its term B loans due 2021—Euro denominated (approximately $765 million) with an extended and repriced term B loan facility due in 2024 for an aggregate principal amount of approximately $2,465 million comprised of $1,200 million U.S. dollar denominated term B loans and €1,200 million ($1,279 million) Euro denominated term B loans. The U.S. dollar denominated term B loans bear interest based on the U.S. Dollar LIBOR with a floor of 0.75%, plus a margin of 2.00% for an all-in interest rate of 3.23% as of September 30, 2017. The Euro denominated term B loans bear interest based on the Euro LIBOR with a floor of 0.75%, plus a margin of 2.00% for an all-in interest rate of 2.75% as of September 30, 2017. In connection with this refinancing, the Company recognized a $3 million loss on extinguishment of debt, which included fees and related expenses.

Senior Notes

On September 14, 2017, the Company’s wholly owned subsidiary, Quintiles IMS Incorporated (the “Issuer”), issued €420 million (approximately $501 million) aggregate principal amount of 2.875% senior notes due 2025 (the “2025 Notes”). The 2025 Notes, which are unsecured obligations of the Issuer, mature on September 15, 2025 and bear an interest rate of 2.875% which is paid semi-annually on March 15 and September 15 of each year, beginning on March 15, 2018. The 2025 Notes may be redeemed prior to their final stated maturity, subject to a customary make-whole premium at any time prior to September 15, 2020 (subject to a certain customary “equity claw” redemption right) and thereafter subject to a redemption premium declining from 1.438% to 0%.

The net proceeds from the offering of the 2025 Notes and the Amendment referenced above were used to refinance certain indebtedness, including the redemption of the outstanding 4.125% euro-denominated senior notes due 2023 (the “4.125% Notes”), to pay down the revolving credit facility, to pay fees and expenses related to the offering of the 2025 Notes and the Amendment and for other general corporate purposes, including the repurchase of the Company’s common stock and acquisitions. In connection with this refinancing, the Company recognized an $18 million loss on extinguishment of debt, which included the 4.125% Notes make-whole premium.

On February 28, 2017, the Issuer issued €1,425 million (approximately $1,522 million) aggregate principal amount of 3.25% senior notes due 2025 (the “2017 Notes”). The 2017 Notes, which are unsecured obligations of the Issuer, mature on March 15, 2025 and bear an interest rate of 3.25% which is paid semi-annually on March 15 and September 15 of each year, beginning on September 15, 2017. The 2017 Notes may be redeemed prior to their final stated maturity, subject to a customary make-whole premium at any time prior to March 15, 2020 (subject to a certain customary “equity claw” redemption right) and thereafter subject to annually declining redemption premiums at any time prior to March 15, 2022. During March 2017, the proceeds of the 2017 Notes were used to pay fees and expenses related to the notes offering and the refinancing referenced above and other general corporate purposes, including the repurchase of the Company’s common stock.

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 credit 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 our ability to declare dividends. At September 30, 2017, the Company was in compliance with the financial covenants under its financing arrangements in all material respects.

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Stockholders' Equity

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Stockholders' Equity

11. 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 30, 2017 or December 31, 2016.

Equity Repurchase Program and Secondary Public Offerings

On February 14, 2017, the Board increased the stock repurchase authorization under a previously approved equity repurchase program (the “Repurchase Program”) by $1.0 billion. On May 24, 2017, the Board further increased the stock repurchase authorization under the Repurchase Program by $1.0 billion, which increased the total amount that has been authorized under the Repurchase Program to $4.225 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 or vested in-the-money employee stock options, and it could be modified, extended, suspended or discontinued at any time.

During the nine months ended September 30, 2017, the Company repurchased 27,296,321 shares of its common stock under the Repurchase Program at an average market price per share of $82.49 for an aggregate purchase price of approximately $2.3 billion. Those repurchases include shares repurchased pursuant to a share repurchase agreement dated February 23, 2017 with certain of the Company’s principal stockholders under the Repurchase Program. Pursuant to that agreement, the Company purchased an aggregate of 9,677,420 shares of the Company’s common stock in a private transaction for an aggregate purchase price of approximately $750 million. This transaction was consummated on February 28, 2017.

In May 2017, the Company completed an underwritten secondary public offering of 10,571,003 shares of its common stock held by certain of the Company’s principal stockholders (the “May Selling Stockholders”), of which, the Company repurchased 3,571,003 shares for an aggregate purchase price of approximately $300 million. The Company did not offer any stock in this transaction and did not receive any proceeds from the sale of the shares by the May Selling Stockholders in the offering. Pursuant to an agreement with the underwriter, the Company’s per-share purchase price for repurchased shares was the same as the per-share purchase price payable by the underwriter to the May Selling Stockholders.

In September 2017, the Company completed an underwritten secondary public offering of 9,000,000 shares of its common stock held by certain of the Company’s principal stockholders (the “September Selling Stockholders”), of which the Company repurchased 4,000,000 shares for an aggregate purchase price of approximately $380 million. The Company did not offer any stock in this transaction and did not receive any proceeds from the sale of the shares by the September Selling Stockholders in the offering. Pursuant to an agreement with the underwriter, the Company’s per-share purchase price for repurchased shares was the same as the per-share purchase price payable by the underwriter to the September Selling Stockholders.

An automatic shelf registration statement (including a prospectus) relating to the offering of an unspecified amount of common stock was filed by the Company or selling stockholders to be named in the future with the Securities and Exchange Commission on May 24, 2017 and became effective upon filing. The registration statement will expire three years after the date of filing.

As of September 30, 2017, the Company has remaining authorization to repurchase up to $295 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.

Non-controlling Interests

In July 2015, the Company contributed businesses to a joint venture with Quest Diagnostics Incorporated (“Quest”) that was recorded at book value (carryover basis) because the Company owns 60% of the joint venture and maintains control of these businesses. Quest’s 40% non-controlling interest in the joint venture, referred to as Q² Solutions, was $243 million at September 30, 2017.  

	2017		2016
Balance as of January 1	$	227	$	228
Investment by non-controlling interest		—		2
Comprehensive income (loss):
Net income (loss)		11		11
Foreign currency adjustments, net of income tax		5		(9	)
Balance as of September 30	$	243	$	232

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Business Combinations

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Business Combinations

12. Business Combinations

IMS Health

On October 3, 2016, Quintiles Transnational Holdings Inc. (“Quintiles”) completed a merger of equals transaction with IMS Health Holdings, Inc. (“IMS Health”) (the “Merger”). Pursuant to the terms of the merger agreement dated as of May 3, 2016 between Quintiles and IMS Health, IMS Health was merged with and into Quintiles, and the separate corporate existence of IMS Health ceased, with Quintiles continuing as the surviving corporation. The Merger was accounted for as a business combination with Quintiles considered the accounting and the legal acquirer. Immediately prior to the completion of the Merger, Quintiles reincorporated as a Delaware corporation. The surviving corporation changed its name to Quintiles IMS Holdings, Inc. At the effective time of the Merger, IMS Health common stock was automatically converted into 0.3840 of a share of the Company’s common stock. The merger consideration was approximately $10.4 billion (based on the closing price of the Company’s common stock on October 3, 2016), and consisted of the fair value of the Company’s common stock issued (approximately 126.6 million shares) in exchange for the IMS Health common stock as well as the fair value of the vested portion of the converted IMS Health equity awards. In connection with the IMS Health acquisition, the Company recorded goodwill, primarily attributable to the assembled workforce of IMS Health and expected synergies, which was assigned to the Commercial Solutions segment ($9,688 million), the Research & Development Solutions segment ($533 million) and the Integrated Engagement Services segment ($67 million). The goodwill is not deductible for income tax purposes.

Unaudited Pro Forma Information

The following unaudited pro forma information presents the financial results as if the acquisition of IMS Health had occurred on January 1, 2015, with pro forma adjustments to give effect to (i) an increase in depreciation and amortization expense for fair value adjustments of property, plant and equipment and intangible assets, (ii) an increase in stock-based compensation expense resulting from the exchange of the vested IMS Health equity awards for the Company’s equity awards, and (iii) the related income tax effects. The pro forma results do not include any cost synergies, costs or other effects pertaining to the integration of IMS Health. Accordingly, such pro forma amounts are not necessarily indicative of the results that actually would have occurred for the periods presented below had the IMS Health acquisition been completed on January 1, 2015, nor are they indicative of the future operating results of the Company.

The following table summarizes the pro forma results:

	2016
(in millions, except earnings per share)	Three Months Ended September 30,		Nine Months Ended September 30,
Revenues	$	1,926	$	5,775
Reimbursed expenses		360		1,128
Total revenues	$	2,286	$	6,903
Net income attributable to Quintiles IMS Holdings, Inc.	$	82	$	195
Earnings per share attributable to common stockholders:
Basic	$	0.34	$	0.80
Diluted	$	0.33	$	0.78

Pro forma information is not presented for any other acquisition as the aggregate operations of the acquired businesses were not significant to the overall operations of the Company.  

The Company’s condensed consolidated statements of income for the three and nine months ended September 30, 2017 included $858 million and $2,459 million, respectively, of revenues related to the IMS Health acquisition, including revenue from post-merger acquisitions. Following the closing of the IMS Health acquisition, the Company began integrating IMS Health’s operations. As a result, deriving a separate measure of IMS Health’s stand-alone profitability for periods after the acquisition date is impracticable.

Other Acquisitions

The Company also completed several individually immaterial acquisitions during the nine months ended September 30, 2017. The Company’s assessment of fair value 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 condensed consolidated financial statements include the results of the acquisitions subsequent to their respective closing dates.

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:

	Amortization
(in millions)	Period	2017
Total cost of acquisition, net of cash acquired		$	579
Amounts recorded in the Condensed Consolidated Balance Sheets:
Goodwill			390
Portion of goodwill deductible for income tax purposes			142
Intangible assets:
Client relationships	9-15 years		158
Backlog	4 years		15
Non-compete agreements	3-5 years		11
Software	2-9 years		40
Trade names	1-17 years		9
Total intangible assets		$	233

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Restructuring

9 Months Ended

Sep. 30, 2017

Restructuring And Related Activities [Abstract]

Restructuring

13. Restructuring

The Company has taken restructuring actions in 2017, 2016 and 2015 to align its resources and reduce overcapacity to adapt to changing market conditions and integrate acquisitions. These actions include closing facilities, consolidating functional activities, eliminating redundant positions, and aligning resources with client requirements. In 2016, the Company also assumed certain restructuring liabilities as a result of the Merger. Restructuring expense in the first nine months of 2017 consisted of severance and related costs of $35 million, including approximately $6 million related to the Merger and $29 million related to cost reduction actions taken to adapt to changing market conditions. These restructuring actions are expected to continue into 2018.

The following amounts were recorded for the restructuring plans:

(in millions)	Severance and Related Costs			Exit Costs			Total
Balance at December 31, 2016	$	99		$	3		$	102
Expense, net of reversals		35			3			38
Payments		(59	)		(3	)		(62	)
Foreign currency translation and other		1			—			1
Balance at September 30, 2017	$	76		$	3		$	79

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 at September 30, 2017 will be paid in 2017 and 2018.

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Income Taxes

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Income Taxes

14. Income Taxes

The effective income tax rate was (0.5)% and 27.3% in the third quarter of 2017 and 2016, respectively, and 2.1% and 27.9% in the first nine months of 2017 and 2016, respectively. The effective income tax rate was favorably impacted by a tax benefit of $58 million and $189 million in the three and nine months ended September 30, 2017, respectively, related to purchase accounting amortization of approximately $193 million and $561 million, respectively, as a result of the Merger.  Additionally, due to the adoption of ASU 2016-09 on January 1, 2017, the effective income tax rate was favorably impacted by discrete tax adjustments related to excess tax benefits on stock-based compensation of $5 million and $18 million in the three and nine months ended September 30, 2017, respectively.

The Company does not consider the historical undistributed foreign earnings of most of its foreign subsidiaries to be indefinitely reinvested.  The Company does consider the majority of its current year undistributed foreign earnings to be indefinitely reinvested.  To the extent undistributed foreign earnings are not indefinitely reinvested, the Company has recorded deferred income taxes on these earnings.

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Employee Benefit Plans

9 Months Ended

Sep. 30, 2017

Postemployment Benefits [Abstract]

Employee Benefit Plans

15. Employee Benefit Plans

Pension and Postretirement Benefit Plans

The following table summarizes the components of net periodic benefit cost for the Company’s pension benefits:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Service cost	$	10		$	4		$	29		$	13
Interest cost		6			1			16			3
Expected return on plan assets		(10	)		(1	)		(29	)		(3	)
Amortization of actuarial losses		1			1			1			1
	$	7		$	5		$	17		$	14

The above tables do not include the Company’s expense associated with providing certain executives with supplemental pension benefits as well as postretirement medical, dental and life insurance benefits in accordance with their individual employment arrangements. The Company’s net periodic expense related to these benefits for the three and nine months ended September 30, 2017 was de minimis.  

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Comprehensive Income

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Comprehensive Income

16. Comprehensive Income

Below is a summary of the components of AOCI:

(in millions)	Foreign Currency Translation			Derivative Instruments			Defined Benefit Plans		Income Taxes		Total
Balance at December 31, 2016	$	(623	)	$	10		$	21	$	22	$	(570	)
Other comprehensive income (loss) before reclassifications		353			(2	)		—		140		491
Reclassification adjustments		—			—			—		—		—
Balance at September 30, 2017	$	(270	)	$	8		$	21	$	162	$	(79	)

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

	Affected Financial Statement	Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)	Line Item	2017			2016		2017			2016
Derivative instruments:
Interest rate swaps	Interest expense	$	—		$	2	$	—		$	5
Foreign exchange forward contracts	Revenues		(1	)		7		8			13
Foreign exchange forward contracts	Other expense (income), net		(1	)		—		(8	)		—
Total before income taxes			(2	)		9		—			18
Income tax benefit			—			2		—			4
Total net of income taxes		$	(2	)	$	7	$	—		$	14

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Segments

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Segments

17. Segments

The following table presents the Company’s operations by reportable segment. The Company is managed through three reportable segments, Commercial Solutions, Research & Development Solutions and Integrated Engagement Services. Commercial 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 clients, provides outsourced clinical research and clinical trial related services. Integrated Engagement Services 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 the Company’s segments and are reported as general corporate and unallocated expenses. These costs primarily consist of stock-based compensation and expenses for corporate overhead functions such as senior leadership, finance, human resources, information technology, facilities and legal. The Company does not allocate depreciation and amortization, impairment charges, restructuring costs or merger related costs to its segments. Revenues and costs for reimbursed expenses are not allocated to the Company’s 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:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Revenues
Commercial Solutions	$	887		$	72		$	2,603		$	218
Research & Development Solutions		938			869			2,700			2,591
Integrated Engagement Services		194			196			596			603
Total revenues		2,019			1,137			5,899			3,412
Costs of revenue
Commercial Solutions		480			51			1,407			158
Research & Development Solutions		529			488			1,543			1,484
Integrated Engagement Services		156			157			481			483
Total costs of revenue		1,165			696			3,431			2,125
Selling, general and administrative expenses
Commercial Solutions		168			14			482			45
Research & Development Solutions		152			143			426			434
Integrated Engagement Services		20			20			56			63
General corporate and unallocated		51			30			177			81
Total selling, general and administrative expenses		391			207			1,141			623
Segment profit
Commercial Solutions		239			7			714			15
Research & Development Solutions		257			238			731			673
Integrated Engagement Services		18			19			59			57
Total segment profit		514			264			1,504			745
General corporate and unallocated		(51	)		(30	)		(177	)		(81	)
Depreciation and amortization		(256	)		(34	)		(733	)		(98	)
Impairment charges		—			(28	)		(40	)		(28	)
Restructuring costs		(10	)		—			(38	)		(28	)
Merger related costs		—			(4	)		—			(13	)
Total income from operations	$	197		$	168		$	516		$	497

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Earnings Per Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Earnings Per Share

18. Earnings Per Share

The following table presents 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 or the effect of including such stock-based awards in the computation would be anti-dilutive:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2017		2016		2017		2016
Shares subject to performance conditions		0.5		0.2		0.4		0.2
Shares subject to anti-dilutive stock-based awards		0.6		0.7		1.3		1.2
Total shares excluded from diluted earnings per share		1.1		0.9		1.7		1.4

The vesting of performance units is contingent upon the achievement of certain performance targets. The performance units 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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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Unaudited Interim Financial Information

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, 2017. 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, 2016. The balance sheet at December 31, 2016 has been derived from the audited consolidated financial statements of the Company but does not include all the disclosures required by GAAP.

Reclassifications

Reclassifications

Certain prior period amounts have been reclassified to conform to the current presentation, including the reclassification of depreciation and amortization from costs of revenue and selling, general and administrative expenses to a separate caption on the accompanying condensed consolidated statements of income. These changes had no effect on previously reported total revenues, net income, comprehensive income, stockholders’ equity or cash flows.

Income Taxes

Income Taxes

Income tax expense includes United States federal, state and international income taxes. Certain items of income and expense are not reported in income tax returns and financial statements in the same year. The income tax effects of these differences are reported as deferred income taxes. Valuation allowances are provided to reduce the related deferred income tax assets to an amount which will, more likely than not, be realized. In addition, the Company does not consider the historical undistributed foreign earnings of most of its foreign subsidiaries to be indefinitely reinvested. The Company does consider the majority of its current year undistributed foreign earnings to be indefinitely reinvested. To the extent undistributed foreign earnings are not indefinitely reinvested, the Company records deferred income taxes on these earnings. Interest and penalties related to unrecognized income tax benefits are recognized as a component of income tax expense.

Recently Issued Accounting Standards

Recently Issued Accounting Standards

Accounting pronouncement adopted

In August 2016, the FASB issued new accounting guidance which eliminates the diversity in practice related to the cash flow classification of certain cash receipts and payments including debt prepayment or extinguishment payments, payments upon maturity of a zero coupon bond, payment of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions received from certain equity method investees, and cash flows related to beneficial interests obtained in a financial asset securitization. The Company adopted this new accounting guidance retrospectively on January 1, 2017. The new guidance designates the appropriate cash flow statement classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities.  In the absence of specific guidance, each separately identifiable cash source and use will be classified on the basis of the nature of the underlying cash flows.  

In March 2016, the United States Financial Accounting Standards Board (“FASB”) issued new accounting guidance which simplifies several aspects of the accounting for employee stock-based compensation transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, and the classification of excess income tax benefits on the statement of cash flows. The Company adopted this new accounting guidance prospectively on January 1, 2017. Under the new accounting guidance, excess income tax benefits related to stock-based awards are reflected as a reduction of income tax expense on the statements of income and as cash provided from operating activities on the statements of cash flows. In the prior periods, these tax benefits were reflected directly in additional paid in capital and as cash provided from financing activities. The adoption of this new accounting guidance did not impact the Company’s recognition of its stock-based compensation expense or its presentation of cash flows related to employee taxes paid for withheld shares.

Accounting pronouncements being evaluated

In August 2017, the FASB issued new accounting guidance which will allow more financial and nonfinancial hedging strategies to be eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess hedge effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. The new accounting guidance will be effective for the Company on January 1, 2019. The Company is currently evaluating the impact of this new accounting guidance on its consolidated financial statements.

In March 2017, the FASB issued new accounting guidance which requires the service cost component of net periodic benefit cost be presented in the same income statement line item as other employee compensation costs, and requires that the other components of net periodic benefit expense be recognized in the non-operating section of the income statement. In addition, only the service cost component of net periodic benefit expense is eligible for capitalization when applicable.  The new accounting guidance will be effective for the Company on January 1, 2018. The Company is currently evaluating the impact of this new accounting guidance on its consolidated financial statements.

In January 2017, the FASB issued new accounting guidance that changes the definition of a business to clarify when a set of assets does not constitute a business. Under the new definition, when substantially all of the fair value of gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set of assets is generally not a business. The new accounting guidance will be effective for the Company on January 1, 2018. The Company is currently evaluating the impact of this new accounting guidance on its consolidated financial statements.

In February 2016, the FASB issued new accounting guidance which requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. The income statement will reflect lease expense for operating leases, and amortization and interest expense for financing leases. The new accounting guidance will be effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of this new accounting guidance on its consolidated financial statements.

In January 2016, the FASB issued new accounting guidance which modifies how entities measure equity investments and present changes in the fair value of financial liabilities. The new accounting guidance will be effective for annual reporting periods beginning after December 15, 2017. Early adoption of the presentation guidance is permitted; however, early adoption of the recognition and measurement guidance is not permitted. The adoption of this new accounting guidance is not expected to have a material effect on the Company’s consolidated financial statements.

In May 2014, the FASB and the International Accounting Standards Board issued a converged standard on the recognition of revenue from contracts with clients. The objective of the new standard is to establish a single comprehensive revenue recognition model that is designed to create greater comparability of financial statements across industries and jurisdictions. Under the new standard, companies will recognize revenue to depict the transfer of goods or services to clients in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The Company has concluded that the majority of the clinical trial arrangements in its Research & Development Solutions segment will represent a single performance obligation.  The Company expects to account for revenue for this single performance obligation over time using project cost as an input method to measure progress.  Our arrangements in the Commercial Solutions and Integrated Engagement Services segments are generally multiple element arrangements under which current rules require the deferral of revenue when payment on a delivered unit of accounting is contingent on performing on a future unit of accounting.  We currently anticipate that under the new standard these arrangements will consist of multiple performance obligations and that such deferral of revenue will in some cases be lower (or zero) when management determines that it is probable that performance on the future performance obligation will occur. The new standard will require expanded disclosures on revenue recognition, including information about changes in assets and liabilities that result from contracts with clients. The new standard allows for either a retrospective or prospective approach to transition upon adoption. The new standard will be effective for annual reporting periods beginning after December 15, 2017. The Company will adopt the new standard on January 1, 2018. The Company is still evaluating the impact of this new standard as well as the transition approach that will be used upon adoption.

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Employee Stock Compensation (Tables)

9 Months Ended

Sep. 30, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Schedule of Number of Stock-Based Awards Granted and Outstanding

The Company granted the following number of stock-based awards:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Stock options		—		—		—		783,700
Stock appreciation rights - stock settled		22,138		—		1,917,819		—
Stock appreciation rights - cash settled		—		15,200		15,227		40,400
Restricted stock awards		—		86,356		254,582		86,356
Restricted stock units - stock settled		19,032		120,845		30,962		494,681
Restricted stock units - cash settled		—		—		3,715		—
Performance awards		—		—		76,374		—
Performance units		5,272		—		430,076		119,839

The Company had the following number of stock-based awards outstanding:

	September 30, 2017		December 31, 2016
Stock options		4,535,216		7,251,339
Stock appreciation rights - stock settled		2,962,261		1,313,322
Stock appreciation rights - cash settled		363,503		479,176
Restricted stock awards		617,551		367,053
Restricted stock units - stock settled		1,354,080		1,720,817
Restricted stock units - cash settled		3,715		—
Performance awards		76,374		—
Performance units		402,560	—

Assumptions Used to Estimate Value of Stock-Based Compensation for Stock Options and Stock Appreciation Rights Issued

The Company used the following assumptions when estimating the value of the stock-based compensation for stock options and stock appreciation rights issued as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Expected volatility	22 – 24%		26 – 29%		22 – 25%		26 – 30%
Weighted average expected volatility		23%		27%		24%		28%
Expected dividends		0.0%		0.0%		0.0%		0.0%
Expected term (in years)	3.9 – 6.9		3.6 – 6.6		1.0 – 6.9		3.6 – 6.6
Risk-free interest rate	1.71 – 2.15%		0.96 – 1.36%		1.16 – 2.21%		0.80 – 1.57%

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Accounts Receivable and Unbilled Services (Tables)

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Accounts Receivable and Unbilled Services

Accounts receivable and unbilled services consist of the following:

(in millions)	September 30, 2017			December 31, 2016
Trade:
Billed	$	1,044		$	998
Unbilled services		828			723
		1,872			1,721
Allowance for doubtful accounts		(13	)		(14	)
	$	1,859		$	1,707

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Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2017

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Summary of Investments in Unconsolidated Variable Interest Entities and Estimated Maximum Exposure to Loss

As of September 30, 2017, the Company’s investments in unconsolidated variable interest entities (“VIEs”) and its estimated maximum exposure to loss were as follows:

(in millions)	Investments in Unconsolidated VIEs		Maximum Exposure to Loss
NovaQuest Pharma Opportunities Fund III, L.P. (“NovaQuest Fund III”)	$	30	$	37
NovaQuest Pharma Opportunities Fund IV, L.P. (“NovaQuest Fund IV”)		7		17
Pappas Life Science Ventures V, L.P. (“Pappas Fund V”)		1		5
	$	38	$	59

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Goodwill and Identifiable Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Goodwill by Reportable Segment

The following is a summary of goodwill by reportable segment for the nine months ended September 30, 2017:

				Research &		Integrated
	Commercial			Development		Engagement
(in millions)	Solutions			Solutions		Services		Consolidated
Balance as of December 31, 2016	$	9,415		$	1,196	$	116	$	10,727
Business combinations		214			176		—		390
Impairment		(40	)		—		—		(40	)
Impact of foreign currency fluctuations and other		510			10		1		521
Balance as of September 30, 2017	$	10,099		$	1,382	$	117	$	11,598

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Derivatives (Tables)

9 Months Ended

Sep. 30, 2017

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Summary of Fair Values of Derivative Instruments Designated as Hedges

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:

		September 30, 2017						December 31, 2016
(in millions)	Balance Sheet Classification	Assets		Liabilities		Notional		Assets		Liabilities		Notional
Derivatives designated as hedging instruments:
Foreign exchange forward contracts	Other current assets and liabilities	$	6	$	7	$	294	$	11	$	9	$	300
Interest rate swaps	Other liabilities		—		4		405		—		15		945
Interest rate caps	Deposits and other assets		—		—		700		1		—		1,000
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Other current liabilities		—		—		—		—		1		189
Interest rate swaps	Other liabilities		—		8		443		—		—		—
Total derivatives		$	6	$	19			$	12	$	25

Effect of Cash Flow Hedging Instruments on Other Comprehensive Income (Loss)

The effect of the Company’s cash flow hedging instruments on other comprehensive (loss) income is summarized in the following table:

	Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)	2017			2016		2017			2016
Foreign exchange forward contracts	$	(2	)	$	4	$	(7	)	$	(3	)
Interest rate swaps		3			4		5			(6	)
Total	$	1		$	8	$	(2	)	$	(9	)

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

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 30, 2017:

(in millions)	Level 1		Level 2		Level 3		Total
Assets:
Trading securities	$	44	$	—	$	—	$	44
Derivatives		—		6		—		6
Total	$	44	$	6	$	—	$	50
Liabilities:
Derivatives	$	—	$	19	$	—	$	19
Contingent consideration		—		—		63		63
Total	$	—	$	19	$	63	$	82

Changes in Level 3 Financial Assets and Liabilities Measured on Recurring Basis

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

	Contingent Consideration – Accounts Payable and Accrued Expenses
(in millions)	2017			2016
Balance as of January 1	$	18		$	4
Business combinations		52			—
Contingent consideration paid		(4	)		—
Revaluations included in earnings and foreign currency translation adjustments		(3	)		1
Balance as of September 30	$	63		$	5

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Credit Arrangements (Tables)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Summary of Credit Facilities

The following is a summary of the Company’s revolving credit facilities at September 30, 2017:

Facility	Interest Rates
$1,000 million (revolving credit facility)	LIBOR in the relevant currency borrowed plus a margin of 2.00% at September 30, 2017
$25 million (receivables financing facility)	United States LIBOR plus a margin of 0.85% at September 30, 2017 depending upon the Company’s debt rating
£10 million (approximately $13 million) general banking facility with a European headquartered bank	Bank’s base rate of 0.25% at September 30, 2017 plus 1%

Summary of Debt

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

(in millions)	September 30, 2017			December 31, 2016
Senior Secured Credit Facilities:
Term A Loan due 2021—U.S. Dollar LIBOR at average floating rates of 3.33%	$	855		$	888
Term A Loan due 2021—Euro LIBOR at average floating rates of 2.00%		453			419
Term B Loan due 2025—U.S. Dollar at average floating rates of 3.32%		750			—
Term B Loan due 2024—U.S. Dollar LIBOR at average floating rates of 3.33%		1,191			—
Term B Loan due 2024—Euro LIBOR at average floating rates of 2.75%		1,407			—
Term B Loan due 2021—U.S. Dollar LIBOR at average floating rates of 3.50%		—			1,700
Term B Loan due 2021—Euro LIBOR at average floating rates of 3.75%		—			765
Revolving Credit Facility due 2021:
U.S. Dollar denominated borrowings—U.S. Dollar LIBOR at average floating rates of 3.23%		100			375
5.0% Senior Notes due 2026—U.S. Dollar denominated		1,050			1,050
2.875% Senior Notes due 2025—Euro denominated		496			—
3.25% Senior Notes due 2025—Euro denominated		1,684			—
3.5% Senior Notes due 2024—Euro denominated		739			658
4.125% Senior Notes due 2023—Euro denominated		—			289
4.875% Senior Notes due 2023—U.S. Dollar denominated		800			800
Receivables financing facility due 2018—U.S. Dollar LIBOR at average floating rate of 2.08%		275			275
Principal amount of debt		9,800			7,219
Less: unamortized discount and debt issuance costs		(46	)		(19	)
Less: current portion		(103	)		(92	)
Long-term debt	$	9,651		$	7,108

Contractual Maturities of Long-term Debt

Contractual maturities of long-term debt are as follows at September 30, 2017:

(in millions)
Remainder of 2017	$	26
2018		378
2019		103
2020		103
2021		1,218
Thereafter		7,972
	$	9,800

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Summary of Non-controlling Interests

	2017		2016
Balance as of January 1	$	227	$	228
Investment by non-controlling interest		—		2
Comprehensive income (loss):
Net income (loss)		11		11
Foreign currency adjustments, net of income tax		5		(9	)
Balance as of September 30	$	243	$	232

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Business Combinations (Tables)

9 Months Ended

Sep. 30, 2017

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:

	Amortization
(in millions)	Period	2017
Total cost of acquisition, net of cash acquired		$	579
Amounts recorded in the Condensed Consolidated Balance Sheets:
Goodwill			390
Portion of goodwill deductible for income tax purposes			142
Intangible assets:
Client relationships	9-15 years		158
Backlog	4 years		15
Non-compete agreements	3-5 years		11
Software	2-9 years		40
Trade names	1-17 years		9
Total intangible assets		$	233

IMS Health Holdings, Inc. [Member]

Summary of Pro Forma Results

The following table summarizes the pro forma results:

	2016
(in millions, except earnings per share)	Three Months Ended September 30,		Nine Months Ended September 30,
Revenues	$	1,926	$	5,775
Reimbursed expenses		360		1,128
Total revenues	$	2,286	$	6,903
Net income attributable to Quintiles IMS Holdings, Inc.	$	82	$	195
Earnings per share attributable to common stockholders:
Basic	$	0.34	$	0.80
Diluted	$	0.33	$	0.78

Pro forma information is not presented for any other acquisition as the aggregate operations of the acquired businesses were not significant to the overall operations of the Company.  

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Restructuring (Tables)

9 Months Ended

Sep. 30, 2017

Restructuring And Related Activities [Abstract]

Summary of Amounts Recorded for Restructuring Plans

The following amounts were recorded for the restructuring plans:

(in millions)	Severance and Related Costs			Exit Costs			Total
Balance at December 31, 2016	$	99		$	3		$	102
Expense, net of reversals		35			3			38
Payments		(59	)		(3	)		(62	)
Foreign currency translation and other		1			—			1
Balance at September 30, 2017	$	76		$	3		$	79

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Employee Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2017

Compensation And Retirement Disclosure [Abstract]

Summary of Components of Net Periodic Benefit Cost for Pension Benefits

The following table summarizes the components of net periodic benefit cost for the Company’s pension benefits:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Service cost	$	10		$	4		$	29		$	13
Interest cost		6			1			16			3
Expected return on plan assets		(10	)		(1	)		(29	)		(3	)
Amortization of actuarial losses		1			1			1			1
	$	7		$	5		$	17		$	14

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Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Summary of Components of AOCI

Below is a summary of the components of AOCI:

(in millions)	Foreign Currency Translation			Derivative Instruments			Defined Benefit Plans		Income Taxes		Total
Balance at December 31, 2016	$	(623	)	$	10		$	21	$	22	$	(570	)
Other comprehensive income (loss) before reclassifications		353			(2	)		—		140		491
Reclassification adjustments		—			—			—		—		—
Balance at September 30, 2017	$	(270	)	$	8		$	21	$	162	$	(79	)

Summary of Adjustments for (Gains) Losses Reclassified from AOCI into Condensed Consolidated Statements of Income and Affected Financial Statement Line Item

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

	Affected Financial Statement	Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)	Line Item	2017			2016		2017			2016
Derivative instruments:
Interest rate swaps	Interest expense	$	—		$	2	$	—		$	5
Foreign exchange forward contracts	Revenues		(1	)		7		8			13
Foreign exchange forward contracts	Other expense (income), net		(1	)		—		(8	)		—
Total before income taxes			(2	)		9		—			18
Income tax benefit			—			2		—			4
Total net of income taxes		$	(2	)	$	7	$	—		$	14

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Segments (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Operations by Reportable Segments

The Company’s reportable segment information is presented below:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2017			2016			2017			2016
Revenues
Commercial Solutions	$	887		$	72		$	2,603		$	218
Research & Development Solutions		938			869			2,700			2,591
Integrated Engagement Services		194			196			596			603
Total revenues		2,019			1,137			5,899			3,412
Costs of revenue
Commercial Solutions		480			51			1,407			158
Research & Development Solutions		529			488			1,543			1,484
Integrated Engagement Services		156			157			481			483
Total costs of revenue		1,165			696			3,431			2,125
Selling, general and administrative expenses
Commercial Solutions		168			14			482			45
Research & Development Solutions		152			143			426			434
Integrated Engagement Services		20			20			56			63
General corporate and unallocated		51			30			177			81
Total selling, general and administrative expenses		391			207			1,141			623
Segment profit
Commercial Solutions		239			7			714			15
Research & Development Solutions		257			238			731			673
Integrated Engagement Services		18			19			59			57
Total segment profit		514			264			1,504			745
General corporate and unallocated		(51	)		(30	)		(177	)		(81	)
Depreciation and amortization		(256	)		(34	)		(733	)		(98	)
Impairment charges		—			(28	)		(40	)		(28	)
Restructuring costs		(10	)		—			(38	)		(28	)
Merger related costs		—			(4	)		—			(13	)
Total income from operations	$	197		$	168		$	516		$	497

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Summary of Weighted-Average Outstanding Stock Options Excluded from Computation of Diluted Earnings Per Share

The following table presents 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 or the effect of including such stock-based awards in the computation would be anti-dilutive:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2017		2016		2017		2016
Shares subject to performance conditions		0.5		0.2		0.4		0.2
Shares subject to anti-dilutive stock-based awards		0.6		0.7		1.3		1.2
Total shares excluded from diluted earnings per share		1.1		0.9		1.7		1.4

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Summary of Significant Accounting Policies - Additional Information (Detail)	Sep. 30, 2017 Employee Country
Summary Of Significant Accounting Policies [Line Items]
Number of employees | Employee	55,000
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Number of countries | Country	100

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Employee Stock Compensation - Schedule of Number of Stock-Based Awards Granted and Outstanding (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options granted				783,700
Stock options outstanding	4,535,216		4,535,216		7,251,339
Stock Appreciation Rights - Stock Settled [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity Instruments Other than Options, Grants	22,138		1,917,819
Equity Instruments Other than Options, Outstanding	2,962,261		2,962,261		1,313,322
Stock Appreciation Rights - Cash Settled [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity Instruments Other than Options, Grants		15,200	15,227	40,400
Equity Instruments Other than Options, Outstanding	363,503		363,503		479,176
Restricted Stock Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity Instruments Other than Options, Grants		86,356	254,582	86,356
Equity Instruments Other than Options, Outstanding	617,551		617,551		367,053
Performance Units Granted [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity Instruments Other than Options, Grants	5,272		430,076	119,839
Equity Instruments Other than Options, Outstanding	402,560		402,560
Restricted Stock Units - Stock Settled [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity Instruments Other than Options, Grants	19,032	120,845	30,962	494,681
Equity Instruments Other than Options, Outstanding	1,354,080		1,354,080		1,720,817
Restricted Stock Units - Cash Settled [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity Instruments Other than Options, Grants			3,715
Equity Instruments Other than Options, Outstanding	3,715		3,715
Performance Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity Instruments Other than Options, Grants			76,374
Equity Instruments Other than Options, Outstanding	76,374		76,374

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Employee Stock Compensation - Assumptions Used to Estimate Value of Stock-Based Compensation for Stock Options and Stock Appreciation Rights Issued (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Expected volatility, Minimum	22.00%	26.00%	22.00%	26.00%
Expected volatility, Maximum	24.00%	29.00%	25.00%	30.00%
Weighted average expected volatility	23.00%	27.00%	24.00%	28.00%
Expected dividends	0.00%	0.00%	0.00%	0.00%
Risk-free interest rate, Minimum	1.71%	0.96%	1.16%	0.80%
Risk-free interest rate, Maximum	2.15%	1.36%	2.21%	1.57%
Minimum [Member]
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Expected term (in years)	3 years 10 months 25 days	3 years 7 months 6 days	1 year	3 years 7 months 6 days
Maximum [Member]
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Expected term (in years)	6 years 10 months 25 days	6 years 7 months 6 days	6 years 10 months 25 days	6 years 7 months 6 days

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Employee Stock Compensation - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-based compensation expense	$ 29	$ 16	$ 82	$ 34
Unrecognized non-vested stock-based compensation	$ 129		$ 129
Weighted average recognition period of stock-based compensation			1 year 3 months 19 days

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Concentration of Credit Risk - Additional Information (Detail) - Customer	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Risks And Uncertainties [Abstract]
Number of clients served	0	0	0	0

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Accounts Receivable and Unbilled Services - Accounts Receivable and Unbilled Services (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Trade:
Billed	$ 1,044	$ 998
Unbilled services	828	723
Trade accounts receivable and unbilled services, gross	1,872	1,721
Allowance for doubtful accounts	(13)	(14)
Trade accounts receivable and unbilled services, net	$ 1,859	$ 1,707

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Variable Interest Entities - Summary of Investments in Unconsolidated Variable Interest Entities and Estimated Maximum Exposure to Loss (Detail)	Sep. 30, 2017 USD ($)
Variable Interest Entity [Line Items]
Maximum Exposure to Loss	$ 59,000,000
NovaQuest Pharma Opportunities Fund lll, L.P (NovaQuest Fund lll) [Member]
Variable Interest Entity [Line Items]
Investments in Unconsolidated VIEs	30,000,000
Maximum Exposure to Loss	37,000,000
NovaQuest Pharma Opportunities Fund lV, L.P (NovaQuest Fund lV) [Member]
Variable Interest Entity [Line Items]
Investments in Unconsolidated VIEs	7,000,000
Maximum Exposure to Loss	17,000,000
Pappas Life Science Ventures V, LP ("Pappas Fund V") [Member]
Variable Interest Entity [Line Items]
Investments in Unconsolidated VIEs	1,000,000
Maximum Exposure to Loss	5,000,000
Variable Interest Entity Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Investments in Unconsolidated VIEs	$ 38,000,000

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Goodwill and Identifiable Intangible Assets - Summary of Goodwill by Reportable Segment (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2017 USD ($)
Goodwill [Line Items]
Beginning Balance	$ 10,727
Business combinations	390
Impairment	(40)
Impact of foreign currency fluctuations and other	521
Ending Balance	11,598
Commercial Solutions [Member]
Goodwill [Line Items]
Beginning Balance	9,415
Business combinations	214
Impairment	(40)
Impact of foreign currency fluctuations and other	510
Ending Balance	10,099
Research & Development Solutions [Member]
Goodwill [Line Items]
Beginning Balance	1,196
Business combinations	176
Impact of foreign currency fluctuations and other	10
Ending Balance	1,382
Integrated Engagement Services [Member]
Goodwill [Line Items]
Beginning Balance	116
Impact of foreign currency fluctuations and other	1
Ending Balance	$ 117

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Goodwill and Identifiable Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Jun. 30, 2017	Sep. 30, 2017
Impairment Of Goodwill And Intangible Assets [Line Items]
Goodwill impairment loss		$ 40.0
Encore [Member]
Impairment Of Goodwill And Intangible Assets [Line Items]
Goodwill impairment loss	$ 39.6
Intangible assets impairment loss	$ 0.4
Accumulated goodwill impairment losses		$ 63.0

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Derivatives - Additional Information (Detail) € in Millions	1 Months Ended	9 Months Ended	12 Months Ended
	May 31, 2015 USD ($)	Sep. 30, 2017 USD ($) Derivative	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Sep. 30, 2017 EUR (€) Derivative	Jun. 03, 2015 Agreement	Apr. 30, 2014 USD ($)	Jun. 09, 2011 Agreement
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of interest rate contracts | Agreement						7
Interest swaps accrual beginning date		Jun. 30, 2016
Payment to terminate hedge accounting	$ 12,000,000
Interest rate cash flow hedge loss to be reclassified during first three months, net				$ (3,000,000)
Borrowings, net of original issue discount		$ 9,800,000,000
Foreign exchange losses related to net investment hedge		490,000,000
IMS Health Holdings, Inc. [Member] | Derivatives Designated As Cash Flow Hedges [Member] | LIBOR [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative variable interest rates							1.00%
IMS Health Holdings, Inc. [Member] | Derivatives Designated As Cash Flow Hedges [Member] | EURIBOR [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative variable interest rates							1.00%
Accrued Interest [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Payment to terminate hedge accounting	$ 1,000,000
Foreign Currency Denominated Debt [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Borrowings, net of original issue discount		$ 4,779,000,000			€ 4,044
Service Contract Hedging and Royalty Hedging Contracts [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of interest rate contracts | Derivative		57			57
Notional amount		$ 294,000,000
Gains related to contracts		6,000,000	$ 11,000,000
Losses related to contracts		$ (7,000,000)	$ (9,000,000)
Service Contract Hedging and Royalty Hedging Contracts [Member] | Minimum [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Expiration year of hedge instruments		2017
Service Contract Hedging and Royalty Hedging Contracts [Member] | Maximum [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Expiration year of hedge instruments		2018
Six Interest Rate Swaps [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of interest rate contracts | Agreement								6
Interest swaps accrual beginning date		Jun. 09, 2011
Six Interest Rate Swaps [Member] | Minimum [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest rate swaps expiry date		Sep. 30, 2013
Six Interest Rate Swaps [Member] | Maximum [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest rate swaps expiry date		Mar. 31, 2016
Interest Rate Cap [Member] | IMS Health Holdings, Inc. [Member] | Derivatives Designated As Cash Flow Hedges [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount							$ 700,000,000
Effective description of interest rate swaps		Effective at various times between April 2014 and April 2016
Expiration description of interest rate swaps		Expire in April 2019
Interest Rate Cap [Member] | Minimum [Member] | IMS Health Holdings, Inc. [Member] | Derivatives Designated As Cash Flow Hedges [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest rate caps range of strike rates							2.00%
Interest Rate Cap [Member] | Maximum [Member] | IMS Health Holdings, Inc. [Member] | Derivatives Designated As Cash Flow Hedges [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest rate caps range of strike rates							3.00%
2014 Swaps [Member] | Not Designated as Hedging Instrument [Member] | Other Liabilities [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount		$ 443,000,000
2014 Swaps [Member] | IMS Health Holdings, Inc. [Member] | Derivatives Designated As Cash Flow Hedges [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Effective description of interest rate swap		Effective in April and June 2014
Expiration description of interest rate swap		Expire in March 2019 and March 2021
2014 Swaps [Member] | Minimum [Member] | IMS Health Holdings, Inc. [Member] | Derivatives Designated As Cash Flow Hedges [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative swap interest rates							2.10%
2014 Swaps [Member] | Maximum [Member] | IMS Health Holdings, Inc. [Member] | Derivatives Designated As Cash Flow Hedges [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative swap interest rates							1.65%
2015 Swaps [Member] | Minimum [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest rate swaps expiry date		Mar. 31, 2017
Derivative fixed interest rate		1.30%			1.30%
2015 Swaps [Member] | Maximum [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest rate swaps expiry date		Mar. 31, 2020
Derivative fixed interest rate		2.10%			2.10%
2014 EUR Swaps [Member] | Not Designated as Hedging Instrument [Member] | Other Liabilities [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount		$ 343,000,000
2015 Swaps [Member] | Variable Rate Debt [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest rate swaps effectively converted percent		43.00%			43.00%
2015 Swaps [Member] | Fixed Rate Debt [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest rate swaps effectively converted percent		57.00%			57.00%
2014 USD Swaps [Member] | Not Designated as Hedging Instrument [Member] | Other Liabilities [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount		$ 100,000,000

XML

Derivatives - Summary of Fair Values of Derivative Instruments Designated as Hedges (Detail) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Derivatives Fair Value [Line Items]
Derivative asset fair value	$ 6,000,000	$ 12,000,000
Derivative liability fair value	19,000,000	25,000,000
Designated as Hedging Instrument [Member] | Other Current Assets and Liabilities [Member] | Foreign Exchange Forward Contracts [Member]
Derivatives Fair Value [Line Items]
Derivative asset fair value	6,000,000	11,000,000
Derivative liability fair value	7,000,000	9,000,000
Derivative notional amount	294,000,000	300,000,000
Designated as Hedging Instrument [Member] | Other Liabilities [Member] | Interest Rate Swaps [Member]
Derivatives Fair Value [Line Items]
Derivative liability fair value	4,000,000	15,000,000
Derivative notional amount	405,000,000	945,000,000
Designated as Hedging Instrument [Member] | Deposits and Other Assets [Member] | Interest Rate Cap [Member]
Derivatives Fair Value [Line Items]
Derivative asset fair value		1,000,000
Derivative notional amount	700,000,000	1,000,000,000
Not Designated as Hedging Instrument [Member] | Other Liabilities [Member] | Interest Rate Swaps [Member]
Derivatives Fair Value [Line Items]
Derivative liability fair value	8,000,000
Derivative notional amount	$ 443,000,000
Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | Foreign Exchange Forward Contracts [Member]
Derivatives Fair Value [Line Items]
Derivative liability fair value		1,000,000
Derivative notional amount		$ 189,000,000

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Derivatives - Effect of Cash Flow Hedging Instruments on Other Comprehensive Income (Loss) (Detail) - Derivatives Designated As Cash Flow Hedges [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Effect of cash flow hedging instruments on other comprehensive income (loss)	$ 1	$ 8	$ (2)	$ (9)
Foreign Exchange Forward Contracts [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Effect of cash flow hedging instruments on other comprehensive income (loss)	(2)	4	(7)	(3)
Interest Rate Swaps [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Effect of cash flow hedging instruments on other comprehensive income (loss)	$ 3	$ 4	$ 5	$ (6)

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Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of total debt	$ 9,988	$ 7,298

XML

Fair Value Measurements - Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Detail) - Recurring Fair Value Measurements [Member] $ in Millions	Sep. 30, 2017 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	$ 50
Fair value of liabilities	82
Derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	6
Fair value of liabilities	19
Contingent Consideration [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of liabilities	63
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	44
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	6
Fair value of liabilities	19
Level 2 [Member] | Derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	6
Fair value of liabilities	19
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of liabilities	63
Level 3 [Member] | Contingent Consideration [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of liabilities	63
Trading Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	44
Trading Securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	$ 44

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Fair Value Measurements - Changes in Level 3 Financial Assets and Liabilities Measured on Recurring Basis (Detail) - Accounts Payable and Accrued Expenses [Member] - Contingent Consideration [Member] - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance, Contingent Consideration	$ 18	$ 4
Business combinations	52	0
Contingent consideration paid	(4)	0
Revaluations included in earnings and foreign currency translation adjustments	(3)	1
Ending Balance, Contingent Consideration	$ 63	$ 5

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Credit Arrangements - Summary of Credit Facilities (Detail)	9 Months Ended
	Sep. 30, 2017 USD ($)	Sep. 30, 2017 GBP (£)
Revolving credit facility [Member]
Line Of Credit Facility [Line Items]
Facility	$ 1,000,000,000
Interest Rate Description	LIBOR in the relevant currency borrowed plus a margin of 2.00% at September 30, 2017
Revolving credit facility [Member] | LIBOR [Member]
Line Of Credit Facility [Line Items]
Rate	2.00%	2.00%
Receivables Financing Facility [Member]
Line Of Credit Facility [Line Items]
Facility	$ 25,000,000
Interest Rate Description	United States LIBOR plus a margin of 0.85% at September 30, 2017 depending upon the Company’s debt rating
Rate	0.85%	0.85%
Receivables Financing Facility [Member] | LIBOR [Member]
Line Of Credit Facility [Line Items]
Rate	2.08%	2.08%
General Banking Facility [Member]
Line Of Credit Facility [Line Items]
Facility	$ 13,000,000	£ 10,000,000
Interest Rate Description	Bank’s base rate of 0.25% at September 30, 2017 plus 1%
General Banking Facility [Member] | Base Rate [Member]
Line Of Credit Facility [Line Items]
Rate	0.25%	0.25%
Interest Rate spread on base rate	1.00%

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Credit Arrangements - Summary of Debt (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 18, 2017	Dec. 31, 2016
Senior Secured Credit Facilities:
Principal amount of debt	$ 9,800		$ 7,219
Less: unamortized discount and debt issuance costs	(46)		(19)
Less: current portion	(103)		(92)
Long-term debt	9,651		7,108
Due in 2025 [Member] | Senior Secured Term B Loan [Member]
Senior Secured Credit Facilities:
Principal amount of debt		$ 750
U.S Dollars [Member] | Due in 2021 [Member] | Revolving credit facility [Member] | LIBOR [Member]
Senior Secured Credit Facilities:
Principal amount of debt	100		375
U.S Dollars [Member] | Due in 2021 [Member] | Senior Secured Term A Loan [Member] | LIBOR [Member]
Senior Secured Credit Facilities:
Principal amount of debt	855		888
U.S Dollars [Member] | Due in 2021 [Member] | Senior Secured Term B Loan [Member] | LIBOR [Member]
Senior Secured Credit Facilities:
Principal amount of debt			1,700
U.S Dollars [Member] | Due in 2025 [Member] | Senior Secured Term B Loan [Member]
Senior Secured Credit Facilities:
Principal amount of debt	750
U.S Dollars [Member] | Due in 2024 [Member] | Senior Secured Term B Loan [Member] | LIBOR [Member]
Senior Secured Credit Facilities:
Principal amount of debt	1,191
U.S Dollars [Member] | Due in 2026 [Member] | 5.0% Senior Notes [Member]
Senior Secured Credit Facilities:
Principal amount of debt	1,050		1,050
U.S Dollars [Member] | Due in 2023 [Member] | 4.875% Senior Notes [Member]
Senior Secured Credit Facilities:
Principal amount of debt	800		800
U.S Dollars [Member] | Due in 2018 [Member] | Receivables Financing Facility [Member] | LIBOR [Member]
Senior Secured Credit Facilities:
Principal amount of debt	275		275
EUR Dollars [Member] | Due in 2021 [Member] | Senior Secured Term A Loan [Member] | LIBOR [Member]
Senior Secured Credit Facilities:
Principal amount of debt	453		419
EUR Dollars [Member] | Due in 2021 [Member] | Senior Secured Term B Loan [Member] | LIBOR [Member]
Senior Secured Credit Facilities:
Principal amount of debt			765
EUR Dollars [Member] | Due in 2025 [Member] | 2.875% Senior Notes [Member]
Senior Secured Credit Facilities:
Principal amount of debt	496
EUR Dollars [Member] | Due in 2025 [Member] | 3.25% Senior Notes [Member]
Senior Secured Credit Facilities:
Principal amount of debt	1,684
EUR Dollars [Member] | Due in 2024 [Member] | Senior Secured Term B Loan [Member] | LIBOR [Member]
Senior Secured Credit Facilities:
Principal amount of debt	1,407
EUR Dollars [Member] | Due in 2024 [Member] | 3.5% Senior Notes [Member]
Senior Secured Credit Facilities:
Principal amount of debt	$ 739		658
EUR Dollars [Member] | Due in 2023 [Member] | 4.125% Senior Notes [Member]
Senior Secured Credit Facilities:
Principal amount of debt			$ 289

XML

Credit Arrangements - Summary of Debt (Parenthetical) (Detail)			9 Months Ended
	Sep. 18, 2017	Mar. 07, 2017	Sep. 30, 2017
Senior Secured Term A Loan [Member] | Due in 2021 [Member]
Debt Instrument [Line Items]
Debt maturity year			2021
Senior Secured Term B Loan [Member]
Debt Instrument [Line Items]
Debt maturity year		2024
Senior Secured Term B Loan [Member] | Due in 2021 [Member]
Debt Instrument [Line Items]
Debt maturity year			2021
Senior Secured Term B Loan [Member] | Due in 2025 [Member]
Debt Instrument [Line Items]
Debt maturity year	2025		2025
Senior Secured Term B Loan [Member] | Due in 2024 [Member]
Debt Instrument [Line Items]
Debt maturity year			2024
Senior Secured Term B Loan [Member] | U.S Dollars [Member]
Debt Instrument [Line Items]
Debt instrument interest rate terms, Description			LIBOR with a floor of 0.75%, plus a margin of 2.00% for an all-in interest rate of 3.23%
Senior Secured Term B Loan [Member] | U.S Dollars [Member] | Due in 2025 [Member]
Debt Instrument [Line Items]
Average floating rate			3.32%
Senior Secured Term B Loan [Member] | EUR Dollars [Member]
Debt Instrument [Line Items]
Debt instrument interest rate terms, Description			LIBOR with a floor of 0.75%, plus a margin of 2.00% for an all-in interest rate of 2.75%
5.0% Senior Notes [Member] | Due in 2026 [Member]
Debt Instrument [Line Items]
Debt maturity year			2026
5.0% Senior Notes [Member] | U.S Dollars [Member] | Due in 2026 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate stated percentage			5.00%
3.25% Senior Notes [Member] | Due in 2025 [Member]
Debt Instrument [Line Items]
Debt maturity year			2025
3.25% Senior Notes [Member] | EUR Dollars [Member] | Due in 2025 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate stated percentage			3.25%
3.5% Senior Notes [Member] | Due in 2024 [Member]
Debt Instrument [Line Items]
Debt maturity year			2024
3.5% Senior Notes [Member] | EUR Dollars [Member] | Due in 2024 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate stated percentage			3.50%
2.875% Senior Notes [Member] | Due in 2025 [Member]
Debt Instrument [Line Items]
Debt maturity year			2025
2.875% Senior Notes [Member] | EUR Dollars [Member] | Due in 2025 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate stated percentage			2.875%
4.125% Senior Notes [Member] | Due in 2023 [Member]
Debt Instrument [Line Items]
Debt maturity year			2023
4.125% Senior Notes [Member] | EUR Dollars [Member] | Due in 2023 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate stated percentage			4.125%
4.875% Senior Notes [Member] | Due in 2023 [Member]
Debt Instrument [Line Items]
Debt maturity year			2023
4.875% Senior Notes [Member] | U.S Dollars [Member] | Due in 2023 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate stated percentage			4.875%
Receivables Financing Facility [Member]
Debt Instrument [Line Items]
Debt maturity year			2018
Debt instrument interest rate stated percentage			0.85%
Debt instrument interest rate terms, Description			LIBOR at average floating rate of 2.08%
Revolving credit facility [Member]
Debt Instrument [Line Items]
Debt maturity year			2021
LIBOR [Member] | Senior Secured Term A Loan [Member] | U.S Dollars [Member] | Due in 2021 [Member]
Debt Instrument [Line Items]
Average floating rate			3.33%
LIBOR [Member] | Senior Secured Term A Loan [Member] | EUR Dollars [Member] | Due in 2021 [Member]
Debt Instrument [Line Items]
Average floating rate			2.00%
LIBOR [Member] | Senior Secured Term B Loan [Member] | Due in 2025 [Member]
Debt Instrument [Line Items]
Average floating rate	2.00%
LIBOR [Member] | Senior Secured Term B Loan [Member] | U.S Dollars [Member]
Debt Instrument [Line Items]
Average floating rate			3.23%
Debt instrument interest rate stated percentage			2.00%
LIBOR [Member] | Senior Secured Term B Loan [Member] | U.S Dollars [Member] | Due in 2021 [Member]
Debt Instrument [Line Items]
Average floating rate			3.50%
LIBOR [Member] | Senior Secured Term B Loan [Member] | U.S Dollars [Member] | Due in 2024 [Member]
Debt Instrument [Line Items]
Average floating rate			3.33%
LIBOR [Member] | Senior Secured Term B Loan [Member] | EUR Dollars [Member]
Debt Instrument [Line Items]
Average floating rate			2.75%
Debt instrument interest rate stated percentage			2.00%
LIBOR [Member] | Senior Secured Term B Loan [Member] | EUR Dollars [Member] | Due in 2021 [Member]
Debt Instrument [Line Items]
Average floating rate			3.75%
LIBOR [Member] | Senior Secured Term B Loan [Member] | EUR Dollars [Member] | Due in 2024 [Member]
Debt Instrument [Line Items]
Average floating rate			2.75%
LIBOR [Member] | Receivables Financing Facility [Member]
Debt Instrument [Line Items]
Debt instrument interest rate stated percentage			2.08%
LIBOR [Member] | Revolving credit facility [Member]
Debt Instrument [Line Items]
Debt instrument interest rate stated percentage			2.00%
LIBOR [Member] | Revolving credit facility [Member] | U.S Dollars [Member]
Debt Instrument [Line Items]
Average floating rate			3.23%

XML

Credit Arrangements - Contractual Maturities of Long-term Debt (Detail) $ in Millions	Sep. 30, 2017 USD ($)
Debt Disclosure [Abstract]
Remainder of 2017	$ 26
2018	378
2019	103
2020	103
2021	1,218
Thereafter	7,972
Long-term debt	$ 9,800

XML

Credit Arrangements - Additional Information (Detail)				3 Months Ended	9 Months Ended
	Sep. 18, 2017 USD ($)	Sep. 14, 2017 USD ($)	Mar. 07, 2017 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2017 GBP (£)	Sep. 30, 2017 GBP (£)	Sep. 17, 2017	Sep. 14, 2017 EUR (€)	Mar. 07, 2017 EUR (€)	Feb. 28, 2017 USD ($)	Feb. 28, 2017 EUR (€)	Dec. 31, 2016 USD ($)
Line Of Credit Facility [Line Items]
Proceeds from revolving credit facility					$ 1,222,000,000
Repayment of revolving credit facility					1,497,000,000
Outstanding borrowings				$ 9,800,000,000	9,800,000,000								$ 7,219,000,000
Loss on extinguishment of debt				(18,000,000)	(21,000,000)
Revolving credit facility [Member]
Line Of Credit Facility [Line Items]
Aggregate maximum principal amount				$ 1,000,000,000	$ 1,000,000,000
Debt maturity year					2021	2021
Revolving credit facility [Member] | LIBOR [Member]
Line Of Credit Facility [Line Items]
Rate				2.00%	2.00%		2.00%
Revolving credit facility [Member] | U.S Dollars [Member] | LIBOR [Member]
Line Of Credit Facility [Line Items]
Average floating rate					3.23%	3.23%
Revolving credit facility [Member] | Due in 2021 [Member] | U.S Dollars [Member] | LIBOR [Member]
Line Of Credit Facility [Line Items]
Outstanding borrowings				$ 100,000,000	$ 100,000,000								375,000,000
General Banking Facility [Member]
Line Of Credit Facility [Line Items]
Bank guarantees					6,000,000	£ 5,000,000
Aggregate maximum principal amount				13,000,000	13,000,000		£ 10,000,000
Senior Secured Facilities [Member]
Line Of Credit Facility [Line Items]
Aggregate maximum principal amount				5,656,000,000	5,656,000,000
Outstanding borrowings				4,756,000,000	4,756,000,000
Available borrowing capacity				900,000,000	900,000,000
Senior Secured Facilities [Member] | Revolving credit facility [Member]
Line Of Credit Facility [Line Items]
Current borrowing capacity				$ 1,000,000,000	1,000,000,000
Senior Secured Term B Loan [Member]
Line Of Credit Facility [Line Items]
Debt maturity year			2024
Loss on extinguishment of debt					$ (3,000,000)
Senior Secured Term B Loan [Member] | U.S Dollars [Member]
Line Of Credit Facility [Line Items]
Debt instrument interest rate terms, Description					LIBOR with a floor of 0.75%, plus a margin of 2.00% for an all-in interest rate of 3.23%	LIBOR with a floor of 0.75%, plus a margin of 2.00% for an all-in interest rate of 3.23%
Senior Secured Term B Loan [Member] | U.S Dollars [Member] | LIBOR [Member]
Line Of Credit Facility [Line Items]
Average floating rate					3.23%	3.23%
Debt instrument floor rate				0.75%	0.75%		0.75%
Rate				2.00%	2.00%		2.00%
Senior Secured Term B Loan [Member] | EUR Dollars [Member]
Line Of Credit Facility [Line Items]
Debt instrument interest rate terms, Description					LIBOR with a floor of 0.75%, plus a margin of 2.00% for an all-in interest rate of 2.75%	LIBOR with a floor of 0.75%, plus a margin of 2.00% for an all-in interest rate of 2.75%
Senior Secured Term B Loan [Member] | EUR Dollars [Member] | LIBOR [Member]
Line Of Credit Facility [Line Items]
Average floating rate					2.75%	2.75%
Debt instrument floor rate				0.75%	0.75%		0.75%
Rate				2.00%	2.00%		2.00%
Senior Secured Term B Loan [Member] | Due in 2025 [Member]
Line Of Credit Facility [Line Items]
Outstanding borrowings	$ 750,000,000
Unlimited restricted investments leverage ratio	450.00%							425.00%
Dividends and distributions leverage ratio	450.00%							400.00%
Debt maturity year	2025				2025	2025
Senior Secured Term B Loan [Member] | Due in 2025 [Member] | LIBOR [Member]
Line Of Credit Facility [Line Items]
Average floating rate	2.00%
Senior Secured Term B Loan [Member] | Due in 2025 [Member] | U.S Dollars [Member]
Line Of Credit Facility [Line Items]
Outstanding borrowings				$ 750,000,000	$ 750,000,000
Average floating rate					3.32%	3.32%
Senior Secured Term B Loan [Member] | Due in 2021 [Member]
Line Of Credit Facility [Line Items]
Debt maturity year					2021	2021
Senior Secured Term B Loan [Member] | Due in 2021 [Member] | U.S Dollars [Member] | LIBOR [Member]
Line Of Credit Facility [Line Items]
Outstanding borrowings													1,700,000,000
Average floating rate					3.50%	3.50%
Senior Secured Term B Loan [Member] | Due in 2021 [Member] | EUR Dollars [Member] | LIBOR [Member]
Line Of Credit Facility [Line Items]
Outstanding borrowings													$ 765,000,000
Average floating rate					3.75%	3.75%
Senior Secured Term B Loan [Member] | Due in 2024 [Member]
Line Of Credit Facility [Line Items]
Debt maturity year					2024	2024
Debt instrument principal amount			$ 2,465,000,000
Senior Secured Term B Loan [Member] | Due in 2024 [Member] | U.S Dollars [Member] | LIBOR [Member]
Line Of Credit Facility [Line Items]
Outstanding borrowings				1,191,000,000	$ 1,191,000,000
Average floating rate					3.33%	3.33%
Senior Secured Term B Loan [Member] | Due in 2024 [Member] | EUR Dollars [Member] | LIBOR [Member]
Line Of Credit Facility [Line Items]
Outstanding borrowings				1,407,000,000	$ 1,407,000,000
Average floating rate					2.75%	2.75%
Senior Secured Term B Loan [Member] | Term B loan due 2021 [Member] | Due in 2021 [Member] | U.S Dollars [Member]
Line Of Credit Facility [Line Items]
Debt instrument principal amount			1,700,000,000
Senior Secured Term B Loan [Member] | Term B loan due 2021 [Member] | Due in 2021 [Member] | EUR Dollars [Member]
Line Of Credit Facility [Line Items]
Debt instrument principal amount			765,000,000
Senior Secured Term B Loan [Member] | Term B Loan Facility Due Two Thousand Twenty Four | Due in 2024 [Member] | U.S Dollars [Member]
Line Of Credit Facility [Line Items]
Debt instrument principal amount			1,200,000,000
Senior Secured Term B Loan [Member] | Term B Loan Facility Due Two Thousand Twenty Four | Due in 2024 [Member] | EUR Dollars [Member]
Line Of Credit Facility [Line Items]
Debt instrument principal amount			$ 1,279,000,000							€ 1,200,000,000
2025 Notes [Member] | Quintiles IMS Incorporated [Member]
Line Of Credit Facility [Line Items]
Debt instrument, maturity date					Sep. 15, 2025	Sep. 15, 2025
2025 Notes [Member] | Unsecured Debt [Member] | Quintiles IMS Incorporated [Member]
Line Of Credit Facility [Line Items]
Debt instrument issuance date					Sep. 14, 2017	Sep. 14, 2017
Debt instrument interest payment terms					interest rate of 2.875% which is paid semi-annually on March 15 and September 15 of each year, beginning on March 15, 2018	interest rate of 2.875% which is paid semi-annually on March 15 and September 15 of each year, beginning on March 15, 2018
Debt instrument frequency of periodic interest payment					semi-annually	semi-annually
2025 Notes [Member] | Unsecured Debt [Member] | Prior to September 15, 2020 [Member] | Quintiles IMS Incorporated [Member]
Line Of Credit Facility [Line Items]
Debt instrument, redemption premium percentage		1.438%
2025 Notes [Member] | Unsecured Debt [Member] | Thereafter September 15, 2020 [Member] | Quintiles IMS Incorporated [Member]
Line Of Credit Facility [Line Items]
Debt instrument, redemption premium percentage		0.00%
2.875% Senior Notes [Member] | Due in 2025 [Member]
Line Of Credit Facility [Line Items]
Debt maturity year					2025	2025
2.875% Senior Notes [Member] | Due in 2025 [Member] | EUR Dollars [Member]
Line Of Credit Facility [Line Items]
Outstanding borrowings				$ 496,000,000	$ 496,000,000
Rate				2.875%	2.875%		2.875%
2.875% Senior Notes [Member] | Unsecured Debt [Member] | Quintiles IMS Incorporated [Member]
Line Of Credit Facility [Line Items]
Debt instrument principal amount		$ 501,000,000							€ 420,000,000
Rate		2.875%							2.875%
4.125% Senior Notes Due 2023 [Member]
Line Of Credit Facility [Line Items]
Loss on extinguishment of debt					$ 18,000,000
4.125% Senior Notes Due 2023 [Member] | Euro-Denominated [Member]
Line Of Credit Facility [Line Items]
Debt instrument, redemption premium percentage					4.125%	4.125%
2017 Notes [Member] | Quintiles IMS Incorporated [Member]
Line Of Credit Facility [Line Items]
Debt instrument, maturity date					Mar. 15, 2025	Mar. 15, 2025
2017 Notes [Member] | Unsecured Debt [Member] | Quintiles IMS Incorporated [Member]
Line Of Credit Facility [Line Items]
Debt instrument issuance date					Feb. 28, 2017	Feb. 28, 2017
Debt instrument interest payment terms					interest rate of 3.25% which is paid semi-annually on March 15 and September 15 of each year, beginning on September 15, 2017	interest rate of 3.25% which is paid semi-annually on March 15 and September 15 of each year, beginning on September 15, 2017
Debt instrument frequency of periodic interest payment					semi-annually	semi-annually
3.25% Senior Notes [Member] | Due in 2025 [Member]
Line Of Credit Facility [Line Items]
Debt maturity year					2025	2025
3.25% Senior Notes [Member] | Due in 2025 [Member] | EUR Dollars [Member]
Line Of Credit Facility [Line Items]
Outstanding borrowings				$ 1,684,000,000	$ 1,684,000,000
Rate				3.25%	3.25%		3.25%
3.25% Senior Notes [Member] | Unsecured Debt [Member] | Quintiles IMS Incorporated [Member]
Line Of Credit Facility [Line Items]
Debt instrument principal amount											$ 1,522,000,000	€ 1,425,000,000
Rate											3.25%	3.25%

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Stockholders' Equity - Additional Information (Detail) - USD ($)				1 Months Ended	9 Months Ended
	May 24, 2017	Feb. 28, 2017	Feb. 14, 2017	May 31, 2017	Sep. 30, 2017	Dec. 31, 2016	Jul. 31, 2015
Class Of Stock [Line Items]
Preferred stock, authorized					1,000,000
Preferred stock, par value					$ 0.01
Preferred stock, shares issued					0	0
Preferred stock, shares outstanding					0	0
Q2 Solutions [Member]
Class Of Stock [Line Items]
Percentage of Quest's non-controlling interest in Q2 Solutions							40.00%
Quest's non-controlling interest in Q2 Solutions					$ 243,000,000
Quest [Member]
Class Of Stock [Line Items]
Ownership percentage							60.00%
Secondary Public Offering [Member]
Class Of Stock [Line Items]
Repurchase of stock, shares				3,571,003	4,000,000
Repurchase of stock, value				$ 300,000,000	$ 380,000,000
Common stock held by Selling Stockholders underwritten				10,571,003	9,000,000
Registration statement expiration period after filing date					3 years
Equity Repurchase Program [Member]
Class Of Stock [Line Items]
Equity repurchase program increase in authorized amount	$ 1,000,000,000		$ 1,000,000,000
Equity repurchase program authorized amount	$ 4,225,000,000
Repurchase of stock, shares		9,677,420			27,296,321
Repurchase of common stock, share price					$ 82.49
Repurchase of stock, value		$ 750,000,000			$ 2,300,000,000
Equity available for repurchase under the repurchase program					$ 295,000,000

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Stockholders' Equity - Summary of Non-controlling Interests (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Equity [Abstract]
Beginning Balance			$ 227	$ 228
Investment by non-controlling interest				2
Comprehensive income (loss):
Net income (loss)	$ 5	$ 4	11	11
Foreign currency adjustments, net of income tax			5	(9)
Ending Balance	$ 243	$ 232	$ 243	$ 232

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Business Combinations - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions		3 Months Ended	9 Months Ended
	Oct. 03, 2016	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Goodwill		$ 11,598	$ 11,598	$ 10,727
Commercial Solutions [Member]
Business Acquisition [Line Items]
Goodwill		10,099	10,099	9,415
Research & Development Solutions [Member]
Business Acquisition [Line Items]
Goodwill		1,382	1,382	1,196
Integrated Engagement Services [Member]
Business Acquisition [Line Items]
Goodwill		117	117	$ 116
IMS Health Holdings, Inc. [Member]
Business Acquisition [Line Items]
Date of Acquisition	Oct. 03, 2016
Merger agreement date	May 03, 2016
Revenues since acquisition		858	2,459
IMS Health Holdings, Inc. [Member] | Commercial Solutions [Member]
Business Acquisition [Line Items]
Goodwill		9,688	9,688
IMS Health Holdings, Inc. [Member] | Research & Development Solutions [Member]
Business Acquisition [Line Items]
Goodwill		533	533
IMS Health Holdings, Inc. [Member] | Integrated Engagement Services [Member]
Business Acquisition [Line Items]
Goodwill		$ 67	$ 67
IMS Health Holdings, Inc. [Member] | Common Stock [Member]
Business Acquisition [Line Items]
Merger agreement, stock for stock exchange ratio	38.40%
Business acquisition through merger, consideration in stock	$ 10,400
Business acquisition through merger, consideration in stock, shares issued	126.6

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Business Combinations - Summary of Pro Forma Results (Detail) - IMS Health Holdings, Inc. [Member] - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Business Acquisition [Line Items]
Revenues	$ 1,926	$ 5,775
Reimbursed expenses	360	1,128
Total revenues	2,286	6,903
Net income attributable to Quintiles IMS Holdings, Inc.	$ 82	$ 195
Earnings per share attributable to common stockholders:
Basic	$ 0.34	$ 0.80
Diluted	$ 0.33	$ 0.78

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Business Combinations - Schedule of Preliminary Allocation of Purchase to Certain Tangible and Intangible Assets Acquired and Goodwill (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Total cost of acquisition, net of cash acquired	$ 525
Goodwill	11,598	$ 10,727
Several Individually Immaterial Acquisitions [Member]
Business Acquisition [Line Items]
Total cost of acquisition, net of cash acquired	579
Goodwill	390
Portion of goodwill deductible for income tax purposes	142
Total intangible assets	233
Several Individually Immaterial Acquisitions [Member] | Client Relationships [Member]
Business Acquisition [Line Items]
Total intangible assets	$ 158
Several Individually Immaterial Acquisitions [Member] | Client Relationships [Member] | Minimum [Member]
Business Acquisition [Line Items]
Amortization Period	9 years
Several Individually Immaterial Acquisitions [Member] | Client Relationships [Member] | Maximum [Member]
Business Acquisition [Line Items]
Amortization Period	15 years
Several Individually Immaterial Acquisitions [Member] | Non-compete Agreements [Member]
Business Acquisition [Line Items]
Total intangible assets	$ 11
Several Individually Immaterial Acquisitions [Member] | Non-compete Agreements [Member] | Minimum [Member]
Business Acquisition [Line Items]
Amortization Period	3 years
Several Individually Immaterial Acquisitions [Member] | Non-compete Agreements [Member] | Maximum [Member]
Business Acquisition [Line Items]
Amortization Period	5 years
Several Individually Immaterial Acquisitions [Member] | Backlog [Member]
Business Acquisition [Line Items]
Amortization Period	4 years
Total intangible assets	$ 15
Several Individually Immaterial Acquisitions [Member] | Software [Member]
Business Acquisition [Line Items]
Total intangible assets	$ 40
Several Individually Immaterial Acquisitions [Member] | Software [Member] | Minimum [Member]
Business Acquisition [Line Items]
Amortization Period	2 years
Several Individually Immaterial Acquisitions [Member] | Software [Member] | Maximum [Member]
Business Acquisition [Line Items]
Amortization Period	9 years
Several Individually Immaterial Acquisitions [Member] | Finite Lived Trade Name [Member]
Business Acquisition [Line Items]
Total intangible assets	$ 9
Several Individually Immaterial Acquisitions [Member] | Finite Lived Trade Name [Member] | Minimum [Member]
Business Acquisition [Line Items]
Amortization Period	1 year
Several Individually Immaterial Acquisitions [Member] | Finite Lived Trade Name [Member] | Maximum [Member]
Business Acquisition [Line Items]
Amortization Period	17 years

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Restructuring - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Restructuring Cost and Reserve [Line Items]
Merger related costs	$ 4		$ 13
2017 Plan [Member]
Restructuring Cost and Reserve [Line Items]
Severance and related costs		$ 35
Merger related costs		6
2017 Plan [Member] | Cost Reductions Due to Changing Market Conditions [Member]
Restructuring Cost and Reserve [Line Items]
Severance and related costs		$ 29

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Restructuring - Summary of Amounts Recorded for Restructuring Plans (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2017 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring reserves, beginning balance	$ 102
Expense, net of reversals	38
Payments	(62)
Foreign currency translation and other	1
Restructuring reserves, ending balance	79
Severance and Related Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserves, beginning balance	99
Expense, net of reversals	35
Payments	(59)
Foreign currency translation and other	1
Restructuring reserves, ending balance	76
Exit Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserves, beginning balance	3
Expense, net of reversals	3
Payments	(3)
Restructuring reserves, ending balance	$ 3

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Effective income tax rate	(0.50%)	27.30%	2.10%	27.90%
Tax benefit related to purchase accounting amortization	$ 58		$ 189
Purchase amortization due to merger	193		561
Excess income tax benefits recognized from stock-based awards	$ 5		$ 18

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Employee Benefit Plans - Summary of Components of Net Periodic Benefit Cost for Pension benefits (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Compensation And Retirement Disclosure [Abstract]
Service cost	$ 10	$ 4	$ 29	$ 13
Interest cost	6	1	16	3
Expected return on plan assets	(10)	(1)	(29)	(3)
Amortization of actuarial losses	1	1	1	1
Net periodic benefit cost	$ 7	$ 5	$ 17	$ 14

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Comprehensive Income - Summary of Components of AOCI (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2017 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 8,633
Ending Balance	7,264
Beginning Balance	22
Other comprehensive income (loss) before reclassifications	140
Ending Balance	162
Other comprehensive income (loss) before reclassifications	491
Foreign Currency Translation [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(623)
Other comprehensive income (loss) before reclassifications	353
Ending Balance	(270)
Derivative Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	10
Other comprehensive income (loss) before reclassifications	(2)
Ending Balance	8
Defined Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	21
Ending Balance	21
Accumulated Other Comprehensive (Loss) Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(570)
Ending Balance	$ (79)

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Comprehensive Income - Summary of Adjustments for (Gains) Losses Reclassified from AOCI into Condensed Consolidated Statements of Income and Affected Financial Statement Line Item (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total before income taxes	$ (2)	$ 9		$ 18
Income tax benefit		2		4
Total net of income taxes	(2)	7		14
Interest Rate Swaps [Member] | Interest Expense [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total before income taxes		2		5
Foreign Exchange Forward Contracts [Member] | Revenues [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total before income taxes	(1)	$ 7	$ 8	$ 13
Foreign Exchange Forward Contracts [Member] | Other Expense (Income), Net [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total before income taxes	$ (1)		$ (8)

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Segments - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2017 Segment
Segment Reporting [Abstract]
Number of reportable segments	3

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Segments - Operations by Reportable Segments (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Revenues	$ 2,019	$ 1,137	$ 5,899	$ 3,412
Costs of revenue	1,165	696	3,431	2,125
Selling, general and administrative expenses	391	207	1,141	623
Depreciation and amortization	(256)	(34)	(733)	(98)
Impairment charges		(28)	(40)	(28)
Restructuring costs	(10)		(38)	(28)
Merger related costs		(4)		(13)
Income from operations	197	168	516	497
Operating Segments [Member]
Segment Reporting Information [Line Items]
Segment profit	514	264	1,504	745
Operating Segments [Member] | Commercial Solutions [Member]
Segment Reporting Information [Line Items]
Revenues	887	72	2,603	218
Costs of revenue	480	51	1,407	158
Selling, general and administrative expenses	168	14	482	45
Segment profit	239	7	714	15
Operating Segments [Member] | Research & Development Solutions [Member]
Segment Reporting Information [Line Items]
Revenues	938	869	2,700	2,591
Costs of revenue	529	488	1,543	1,484
Selling, general and administrative expenses	152	143	426	434
Segment profit	257	238	731	673
Operating Segments [Member] | Integrated Engagement Services [Member]
Segment Reporting Information [Line Items]
Revenues	194	196	596	603
Costs of revenue	156	157	481	483
Selling, general and administrative expenses	20	20	56	63
Segment profit	18	19	59	57
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Selling, general and administrative expenses	51	30	177	81
Segment profit	$ (51)	$ (30)	$ (177)	$ (81)

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Earnings Per Share - Summary of Weighted-Average Outstanding Stock-Based Awards Excluded from Computation of Diluted Earnings Per Share (Detail) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares excluded from diluted earnings per share	1.1	0.9	1.7	1.4
Performance Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares excluded from diluted earnings per share	0.5	0.2	0.4	0.2
Share-Based Awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares excluded from diluted earnings per share	0.6	0.7	1.3	1.2