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Segments
12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Segments

20. Segments

The following table presents the Company’s operations by reportable segment. The Company is managed through three reportable segments, Technology & Analytics Solutions, Research & Development Solutions and Contract Sales & Medical Solutions. Technology & Analytics Solutions provides mission critical information, technology solutions and real-world insights and services to the Company’s life science clients. Research & Development Solutions, which primarily serves biopharmaceutical customers, provides outsourced clinical research and clinical trial related services. Contract Sales & Medical Solutions provides health care provider (including contract sales) and patient engagement services to both biopharmaceutical customers and the broader healthcare market. Prior period segment results have been recast to conform to immaterial changes to management reporting in 2017. The recast only impacts the fourth quarter of 2016 as the management reporting changes relate to IMS Health and these results are only reflected in our results since the date of the Merger on October 3, 2016. 

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, restructuring costs, merger related costs or impairment charges to its segments. Asset information by segment is not presented, as this measure is not used by the chief operating decision maker to assess the Company’s performance.

 

 

 

Year Ended December 31,

 

(in millions)

 

2018

 

 

2017

 

 

2016

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Technology & Analytics Solutions

 

$

4,137

 

 

$

3,682

 

 

$

1,148

 

Research & Development Solutions

 

 

5,465

 

 

 

5,105

 

 

 

4,737

 

Contract Sales & Medical Solutions

 

 

810

 

 

 

915

 

 

 

930

 

Total revenues

 

 

10,412

 

 

 

9,702

 

 

 

6,815

 

Costs of revenue

 

 

 

 

 

 

 

 

 

 

 

 

Technology & Analytics Solutions

 

 

2,343

 

 

 

1,967

 

 

 

695

 

Research & Development Solutions

 

 

3,721

 

 

 

3,566

 

 

 

3,283

 

Contract Sales & Medical Solutions

 

 

682

 

 

 

768

 

 

 

770

 

Total costs of revenue

 

 

6,746

 

 

 

6,301

 

 

 

4,748

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

Technology & Analytics Solutions

 

 

771

 

 

 

719

 

 

 

218

 

Research & Development Solutions

 

 

616

 

 

 

582

 

 

 

579

 

Contract Sales & Medical Solutions

 

 

69

 

 

 

73

 

 

 

82

 

General corporate and unallocated

 

 

260

 

 

 

248

 

 

 

137

 

Total selling, general and administrative expenses

 

 

1,716

 

 

 

1,622

 

 

 

1,016

 

Segment profit

 

 

 

 

 

 

 

 

 

 

 

 

Technology & Analytics Solutions

 

 

1,023

 

 

 

996

 

 

 

235

 

Research & Development Solutions

 

 

1,128

 

 

 

957

 

 

 

875

 

Contract Sales & Medical Solutions

 

 

59

 

 

 

74

 

 

 

78

 

Total segment profit

 

 

2,210

 

 

 

2,027

 

 

 

1,188

 

General corporate and unallocated

 

 

(260

)

 

 

(248

)

 

 

(137

)

Depreciation and amortization

 

 

(1,141

)

 

 

(1,011

)

 

 

(289

)

Impairment charges

 

 

 

 

 

(40

)

 

 

(28

)

Restructuring costs

 

 

(68

)

 

 

(63

)

 

 

(71

)

Merger related costs

 

 

 

 

 

 

 

 

(87

)

Total income from operations

 

$

741

 

 

$

665

 

 

$

576