10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2015

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: 001-36381

IMS HEALTH HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware		27-1335689
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

83 Wooster Heights Road, Danbury, CT 06810

(Address of principal executive offices and Zip Code)

(203) 448-4600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common Stock, $.01 par value	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  x    No  ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ¨    No  x

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  x    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  x    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.    x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No   x

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant as of June 30, 2015 was $3.994 billion.

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	329,338,615 shares outstanding as of February 10, 2016

DOCUMENTS INCORPORATED BY REFERENCE

Part III—Portions of the registrant’s Proxy Statement relating to the 2016 Annual Meeting of Shareholders.

IMS HEALTH HOLDINGS, INC.

2015 Annual Report on Form 10-K

Table of Contents

		Page
Part I
Item 1.	Business	4
Item 1A.	Risk Factors	14
Item 1B.	Unresolved Staff Comments	26
Item 2.	Properties	26
Item 3.	Legal Proceedings	27
Item 4.	Mine Safety Disclosures	28
Part II
Item 5.	Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	29
Item 6.	Selected Financial Data	31
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	52
Item 8.	Financial Statements and Supplementary Data	54
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	105
Item 9A.	Controls and Procedures	105
Item 9B.	Other Information	105
Part III
Item 10.	Directors, Executive Officers and Corporate Governance	106
Item 11.	Executive Compensation	107
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	107
Item 13.	Certain Relationships and Related Transactions, and Director Independence	108
Item 14.	Principal Accountant Fees and Services	108
Part IV
Item 15.	Exhibits and Financial Statement Schedules	109
SIGNATURES		112

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Cautionary Note Regarding Forward-Looking Statements

This annual report on Form 10-K, as well as other written reports and oral statements that we make from time to time, includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995  Forward-looking statements are neither historical facts nor  guarantees that the future results, plans, intentions or expectations expressed or implied will be achieved. Instead, they are based on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, and other future conditions. Forward-looking statements can be identified by words such as “anticipate,” “believe,” “envision,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” “ongoing,” “contemplate” and other similar expressions, although not all forward-looking statements contain these identifying words. Examples of forward-looking statements include, among others, statements we make regarding:

· plans for future growth and other business development activities, including acquisitions;

· plans for capital expenditures;

· expectations for market and industry growth;

· financing sources;

· share repurchases and dividends;

· the effects of regulation and competition;

· foreign currency conversion;

· the impact of litigation, government inquiries and investigations; and

· all other statements regarding our intent, plans, beliefs or expectations or those of our directors or officers.

Matters subject to forward-looking statements involve known and unknown risks and uncertainties, including regulatory, competitive and other factors, which may cause actual financial or operating results or the timing of events to be materially different than those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include, but are not limited to:

· our data suppliers might restrict our use of or refuse to license data, which could lead to our inability to provide certain offerings;

· failure to meet productivity objectives under our internal business transformation initiatives could adversely impact our competitiveness and our ability to meet our growth objectives;

· we may be unsuccessful at investing in growth opportunities;

· we may not close announced acquisitions in the indicated timeframes or at all, and may not successfully integrate our acquisition targets or for other reasons may not achieve expected benefits of our acquisition transactions;

· imposition of restrictions on our current and future activities under data protection and privacy laws;

· breaches or misuse of our or our outsourcing partners’ security or communications systems could expose us, our clients, our data suppliers or others to risk of loss;

· hardware and software failures, delays in the operation of our computer and communications systems or the failure to implement system enhancements;

· consolidation in the industries in which our clients operate may reduce the volume of offerings purchased by consolidated clients following an acquisition or merger;

· our ability to protect our intellectual property rights and our susceptibility to claims by others that we are infringing on their intellectual property rights;

· the risks associated with operating on a global basis, including fluctuations in the value of foreign currencies relative to the U.S. Dollar, and the ability to successfully hedge such risks;

· general economic conditions in the markets in which we operate, including financial market conditions; and

· the other factors set forth in the “Risk Factors” section of this annual report and in other public filings with the SEC.

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Given these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to update any forward-looking statements or to publicly announce the results of any revisions to any of those statements whether as a result of new information, future developments or otherwise.

Industry and Market Data

This annual report on Form 10-K includes market data and forecasts with respect to the healthcare industry. In some cases, we rely on and refer to market data and certain industry forecasts that were obtained from third party surveys, market research, consultant surveys, publicly available information and industry publications and surveys that we believe to be reliable. Other industry and market data included in this annual report are from IMS analyses and have been identified accordingly, including, for example, IMS Market Prognosis, which is a subscription-based service that provides five-year pharmaceutical market forecasts at the national, regional and global levels. We are a leading global information provider for the healthcare industry and we maintain databases, produce market analyses and deliver information to clients in the ordinary course of our business. Our information is widely referenced in the industry and used by governments, payers, academia, the life sciences industry, the financial community and others. Most of this information is available on a subscription basis. Other reports and information are available publicly through our IMS Institute for Healthcare Informatics (the “IMS Institute”). All such information is based upon our own market research, internal databases and published reports and has not been verified by any independent sources.

We established the IMS Institute in 2011 to leverage collaborative relationships in the public and private sectors to strengthen the role of information in advancing healthcare globally. Its objective and mission is to provide policy setters and decision makers in the global health sector with unique insights into healthcare dynamics derived from granular analysis of information. The IMS Institute publishes reports to accelerate understanding and innovation critical to sound decision-making and improved patient care. These reports are available publicly, free of charge. With access to our extensive global data sets and analytics, the IMS Institute works in tandem with a broad set of healthcare stakeholders, including government agencies, academic institutions, the life sciences industry and payers, to drive research to address today’s healthcare challenges.

Trademarks and Service Marks

We own or have rights to trademarks and service marks that we use in connection with the operation of our business, including IMS Health, IMS, the IMS logo, IMS One, MIDAS, One Key, Xponent, DDD, MD360 Provider Performance Management and Evidence360. All other trademarks or service marks appearing in this annual report that are not identified as marks owned by us are the property of their respective owners.

Solely for convenience, the trademarks, service marks and trade names referred to in this annual report are listed without the ®, (sm) and (TM) symbols, but we will assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensors to these trademarks, service marks and trade names. We do not intend our use or display of other companies’ trademarks or service marks to imply an endorsement or sponsorship of us by such other companies.

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PART I

In this Annual Report on Form 10-K, the terms “Company,” “IMS,” “we,” “our” or “us” refer to IMS Health Holdings, Inc. and its consolidated subsidiaries unless otherwise stated or indicated by context.

Item 1. Business  

Our Company

We are a leading global information and technology services company providing clients in the healthcare industry with comprehensive solutions to measure and improve their performance. We have one of the largest and most comprehensive collections of healthcare information in the world, spanning sales, prescription and promotional data, medical claims, electronic medical records and social media. Our scaled and growing data set contains over 15 petabytes of unique data and over 500 million comprehensive, longitudinal, anonymous patient records (i.e., records that are linked over time for each anonymous individual across healthcare settings). Based on this data, we deliver information and insights on approximately 90% of the world’s pharmaceuticals, as measured by sales revenue. We standardize, organize, structure and integrate this data by applying our sophisticated analytics and leveraging our global technology infrastructure to help our clients run their organizations more efficiently and make better decisions to improve their operational and financial performance. We have a presence in over 100 countries, including high growth emerging markets, and we generated 61% of our $2.92 billion of 2015 revenue from outside the United States. Financial information about our revenues and assets by geographic regions is included in Note 16, Operations by Business Segment, to our Consolidated Financial Statements.

We serve key healthcare organizations and decision makers around the world, spanning the breadth of life science companies, including pharmaceutical, biotechnology, consumer health and medical device manufacturers, as well as distributors, providers, payers, government agencies, policymakers, researchers and the financial community. The breadth of the intelligent, actionable information we provide is not comprehensively available from any other source and our scope of offerings would be difficult and costly for another party to replicate. As a result, our information and technology services offerings, which we have developed with significant investment over our 60+ year history, are deeply integrated into our clients’ workflow. We maintain long-standing relationships and high renewal rates with our clients due to the value of the services and solutions we provide. The average length of our relationships with our top 25 clients, as measured by revenue, is over 25 years and our retention rate for our top 1,000 clients from 2014 to 2015 was 99%. We have significant visibility into our financial performance, as historically almost 70% of our revenue has recurred annually, principally because our information and technology services offerings are critical to our clients’ daily decision-making and are sold primarily through subscription and service contracts.

In February 2010, we completed a going private transaction, accomplished through a merger (the “Merger”) with Healthcare Technology Acquisition, Inc., an indirect wholly-owned subsidiary of IMS Health Holdings, Inc., which is controlled by investment entities affiliated with TPG Global, LLC, CPP Investment Board Private Holdings Inc., and Leonard Green & Partners, L.P (collectively, the “Sponsors”). In April 2014, we completed our Initial Public Offering (“IPO”) of our common stock, which began trading on the New York Stock Exchange under the symbol “IMS”, and in May and August 2015 completed two secondary offerings of our common stock for our Sponsors. As of December 31, 2015, the Sponsors collectively remained our majority shareholders.

We leverage our proprietary information assets to develop technology and services capabilities with a talented healthcare-focused workforce that enables us to grow our relationships with healthcare stakeholders. This set of capabilities includes:

· A leading healthcare-specific global IT infrastructure, which we use to process data from over 55 billion healthcare transactions annually and to collect data from over 800,000 fragmented feeds globally which we organize in a consistent and highly structured fashion using proprietary methodologies;

· A staff of more than 15,000 professionals across the globe, including over 1,200 experts in areas such as biostatistics, data science, bioinformatics, healthcare economics, outcomes research, epidemiology, pharmacology and key therapeutic areas;

· Our intelligent cloud, IMS One, which opens our sophisticated global IT infrastructure to our clients and provides the ability to perform business analytics in the cloud with large amounts of complex data. Our cloud is unique in the healthcare industry because it pre-integrates applications with IMS data, eliminating the cost traditionally associated with integrating information, and provides interoperability across both IMS and third party applications, reducing the complexity traditionally associated with siloed data; and

· A growing set of proprietary applications, which includes: commercial applications supporting sales operations, sales management, multi-channel marketing and performance management; real-world evidence solutions helping manufacturers and payers evaluate the value of treatments in terms of cost, quality and outcomes; payer-provider solutions helping these constituents to optimize contracting and performance management; and clinical solutions helping manufacturers and Clinical Research Organizations (“CROs”) better design, plan, execute and track clinical trials.

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At a time when the healthcare industry is experiencing transformational change driven by global expansion and the growth of new categories of medicines, intense cost pressures, a changing regulatory environment, and new payment and delivery models, we enable our clients to gain and apply insights designed to substantially improve operating performance. Our solutions, which are designed to provide our clients access to our deep healthcare specific subject matter expertise, take various forms, including information, tailored analytics, subscription software and expert services.

We believe our mission-critical relationships with our life science clients are reflected in the role we play within four important areas of decision-making related to their product portfolios: Research and Development, Pre-Launch, Launch and In-Market. Over the last three years, we have introduced software and services applications that have further deepened our level of client integration by enabling our clients to enhance and automate many components of these key decision-making processes.

●	Market opportunity assessment	●	Drug pricing optimization	●	Market access	●	Commercial operations
●	Clinical trial feasibility/planning	●	Launch readiness	●	Health technology assessment	●	Sales force effectiveness
●	Site selection	●	Commercial planning	●	Commercial readiness	●	Sales force alignment
●	Patient recruitment	●	Brand positioning	●	Forecasting	●	Multi-channel marketing
●	Trial monitoring	●	Message testing	●	Resource allocation	●	Client relationship management
●	Performance management	●	Influence networks	●	Call planning	●	Lifecycle management
		●	Territory design	●	Stakeholder engagement

We believe that a powerful component of our value proposition is the breadth and depth of intelligence we provide to help our clients address fundamental operational questions.

User	Illustrative Questions
Sales		Which providers generate highest return on rep visit?	Does my sales rep drive appropriate prescribing?	How much should I pay my sales rep next month?
Marketing		What share of patients is appropriately treated?	Which underserved patient populations will benefit most from my new drug?	Is my brand gaining market share quickly enough to hit revenue forecasts?
Research & Development		Are there enough patients for my clinical trial?	Which study centers have the target patients?	How long will trial enrollment take to hit target patient volumes?
Real World Evidence (“RWE”)/Pharmacovigilance		What is the likely impact of new therapies on costs and outcomes?	Are new therapies performing better against existing standards of care in real world settings?	Does real world data indicate adverse events not detected in clinical trials?

We generate revenue through local sales teams that manage client relationships in each region and go to market locally with our full suite of information and technology services offerings. Total global revenue from our information offerings, including national and sub-national information services represented approximately 51% of our 2015 revenue. Total global revenue from our technology services offerings, which include hosted and cloud-based applications, implementation services, subscription software, analytic services and consulting, represented approximately 49% of our 2015 revenue. We believe the data from our information offerings, when combined with our technology services offerings, can provide valuable insights to our clients and can increase the speed and effectiveness of decision making while also simplifying processes and reducing complexity and costs. Increasing demand from our clients for broader and more integrated offerings has been an important driver of our growth in technology services revenue, which grew at a constant currency compound annual growth rate (“CAGR”) of approximately17% between 2010 and 2015.

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Ari Bousbib was appointed as our Chief Executive Officer on August 16, 2010 following the purchase of our Company by our Sponsors in February 2010, which we refer to as the Merger. Over the past four years, Mr. Bousbib and the management team have made substantial investments in human capital, technology and services infrastructure to expand the breadth of our platform and the number of constituents we serve within the healthcare value chain. Examples of our strategic investments and operational changes include:

· improving our operating efficiency by streamlining our organization, deploying lean methodologies throughout our global operations, and standardizing and automating processes;

· in-sourcing development activities and capabilities, with more than 80% of our development resources in-house as of 2015 year end, compared to approximately 30% in 2010;

· increasing our offshore delivery resources to over 3,000 people as of 2015 year end, compared to 250 in 2010, which has driven substantial productivity improvement;

· shifting our employee mix, with approximately 50% now client-facing as of 2015 year end, compared to approximately 33% in 2010; and

· expanding our offerings and capabilities by investing approximately $1.9billion in 42 complementary acquisitions, internal development projects and capital expenditures since the beginning of 2011 through 2015 year end.

These strategic investments and operational changes have transformed our organization into a more client-centric, service oriented, high-performance culture. Since the Merger through the end of 2015, we added approximately 17,700 employees to the organization and oversaw the departure of approximately 9,300 employees from the organization, reflecting the various strategic and operational changes described above. We estimate that over 75% of our more than 15,000 employees have joined us since the Merger through the end of 2015.

We believe our investments in people, technology and services have enabled us to significantly expand our addressable market and capture an additional portion of our clients’ spend by providing more powerful technology solutions and new insight-driven services. The following financial performance metrics have improved significantly between 2010 and 2015:

· revenue increased to $2.92 billion, generating a CAGR of 6.2% on an as reported basis and 8.5% on a constant currency basis;

· Adjusted EBITDA increased to $886 million, generating a CAGR of 7.4% on an as reported basis and 10.0% on a constant currency basis; and

· Adjusted EBITDA as a percentage of revenue increased to 30.3% from 28.7% on a reported basis.

Amounts expressed in constant currency terms exclude the effect of changes in foreign currency exchange rates on the translation of foreign currency results into U.S. Dollars. For additional information regarding these financial measures, including a reconciliation of our non-GAAP measures to the most directly comparable measure presented in accordance with United States GAAP, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations” included elsewhere in this report. For additional information regarding foreign currency translation, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results Excluding the Effect of Foreign Currency Translation and Certain Charges” included elsewhere in this report.

Our Market Opportunity

We compete in the global information, technology and services market for the life sciences and the broader healthcare industry. Historically, we concentrated our efforts in the market for information and consulting services primarily supporting the commercial functions of life sciences organizations, which we estimate to be a $5 billion market. In response to the needs of a broader set of life sciences clients for more specialized information, such as longitudinal anonymous patient data and clinical trial analytics, we have expanded our offerings to serve the market for information and services, which we estimate to be a $22 billion market. In addition, in response to our life sciences clients’ need to streamline operations, we offer an expanded range of technology services that include data warehousing, IT outsourcing, software applications and other services in the broader market for IT services, which, together, represent an additional $28 billion market among our life sciences clients. As a result, we now operate across a life sciences marketplace for information and technology services that we estimate to be $50 billion. We also have newer offerings in the $25 billion market for information and technology services for payers and providers and view this rapidly expanding market as an opportunity for further growth.

In deriving estimates of the size of the various markets described above, we review third-party sources, which include estimates and forecasts of spending in various market segments, in combination with internal IMS research and analysis informed by our experience serving these market segments, as well as projected growth rates for each of these segments.

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We believe there are five key trends affecting our end markets that will create increasing demand for our information and technology services solutions:

Growth and innovation in the life sciences industry. The life sciences industry is a large and critical part of the global healthcare system, and, according to the latest information available from the IMS Market Prognosis service, is estimated to have generated approximately $1.1 trillion in revenue in 2015. According to our research, revenue growth in the life sciences industry globally is expected to range from 4% to 7% between 2016 and 2020, up from growth of 2.8% in 2012. The IMS Institute also estimates that 225 new molecular entities (“NMEs”) are expected to be approved between 2016 and 2020, compared to 184 between 2011 and 2015, and 146 between 2006 and 2010.

Growth in access to healthcare in emerging markets. We believe there will be significant growth in healthcare spending in emerging markets, driven predominantly by a rapidly growing middle class in countries such as China and India. According to the IMS Institute, it is estimated that spending on pharmaceuticals in emerging markets will expand at a 7 to 10% CAGR through 2020. The rapid growth of emerging markets is making these geographies strategically important to life sciences organizations and, consistent with their approach in the developed markets, we expect these organizations to apply a high degree of sophistication to their commercial operations in these countries. For global companies, this requires highly localized knowledge and information assets, the development of market access strategies and benchmarking performance. In addition, local players are learning that they need to compete on the basis of improved information and analytics.

Financial pressures driving the need for increased efficiency. Despite expected accelerating growth in the global life sciences market, we believe our clients will face operating margin pressure due to their changing product mix, pricing and reimbursement challenges, and rising costs of compliance. Product portfolios for life sciences companies have shifted toward specialty products with lower peak market sales potential than traditional primary care medicines. Our clients are looking for new ways to simplify processes and drive operational efficiencies including by using automation, consolidating vendors and adopting new technology options such as hosted and cloud-based applications. This provides opportunities for technology services vendors to capture and consolidate internal spending by providing lower-cost and variable-cost options that lower clients’ research and development, selling, marketing and administrative costs.

Evolving need to integrate and structure expanding sources of data. Over the past decade, many health systems around the world have focused on digitizing medical records. While such records theoretically enhance access to data, relevant information is often unintegrated, unstructured, siloed in disparate software systems, or entered inconsistently. In addition, new sources of data from the internet, such as social media and information on limited patient pools, and information resulting from enhanced diagnostic technologies are creating new sources of healthcare data.

In order to derive valuable insights from existing and expanding sources of information, clients need access to statistically significant data sets organized into databases that can be queried and analyzed. For example, RWE studies demonstrate practical and clinical efficacies, which we believe require the aggregation and integration of large clinical data sets across all care settings, types of therapies and patient cohorts. Longitudinal studies require analysis of anonymous patient diagnoses, treatments, procedures and laboratory test results to identify types of patients that will likely best respond to particular therapies. Finally, manufacturers also require the ability to analyze social media activity to identify the specific patient and advocacy groups that influence the adoption of new orphan drugs. This information is highly relevant to all healthcare stakeholders and we believe the opportunity to more broadly apply healthcare data can only be realized through structuring, organizing and integrating new and existing forms of data in conjunction with sophisticated analytics.

Need for demonstrated value in healthcare. Participants in the healthcare industry are focused on improving quality and reducing costs, both of which require assessment of quality and value of therapies and providers. As a result, physicians no longer make prescribing decisions in isolation, but rather in the context of guidance and rules from payers, integrated delivery networks and governments. We believe life sciences companies are working to bring alignment across constituents on the value of their treatments in order to successfully develop and commercialize new therapies.

There is increasing pressure on life sciences companies to support and justify the value of their therapies. Many new drugs that are being approved are more expensive than existing therapies, and will likely receive heightened scrutiny by payers to determine whether the existing treatment options would be sufficient. Additionally, many new specialty drugs are molecular-based therapies and require a more detailed understanding of clinical factors and influencers that demonstrate therapeutic value. As a result, leading life sciences companies are utilizing more sophisticated analytics for insight driven decisions.

We believe we are well positioned to take advantage of these global trends in healthcare. Beyond our proprietary information assets, we have developed key capabilities to assess opportunities to develop and commercialize therapies, support and defend the value of medicines and help our clients operate more efficiently through the application of insight-driven decision-making and cost-efficient technology solutions.

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Our Strengths

Comprehensive information assets and collection network. The scale of our information assets, breadth and depth of our data supplier network, and our global reach are distinct advantages as clients value quality, consistency and continuity across geographies to accurately measure trends and their performance. With over 15 petabytes of proprietary data sourced from over 100,000 data suppliers covering over 800,000 data feeds globally, we have one of the largest and most comprehensive collections of healthcare information in the world, which includes over 500 million comprehensive, longitudinal anonymous patient records. Based on this data, we deliver information and insights on approximately 90% of the world’s pharmaceuticals, as measured by sales revenue. We have proprietary healthcare data management and projection methodologies developed over a long history, which enable us to extrapolate more precise insights from large-scale databases to provide greater granularity and segmentation for our clients. We continue to invest in new technology to source data that is valued by our clients, including social media analytics and mobile health solutions to continuously add records to our data sets, and refine our information and analytic methods. Use of our proprietary encryption technologies allows anonymous information to be linked across different care settings and across data sets, resulting in more complete healthcare information about anonymous patients and a deeper understanding of real world treatment, cost and outcomes.

Scaled healthcare specific technology infrastructure. To manage our proprietary, global information base, we have built what we believe is one of the largest and most sophisticated information technology infrastructures in healthcare. By processing data from over 55 billion healthcare transactions annually, our infrastructure connects complex healthcare data while applying a wide range of privacy, security, operational, legal and contractual protections for data in response to local law, supplier requirements and industry leading practices. We have Offering Development and Delivery Hubs, along with global and regional Centers of Excellence (“COEs”) around the world, and more than 15,000 associates, including over 1,200 experts in areas such as biostatistics, data science, bioinformatics, healthcare economics, outcomes research, epidemiology, pharmacology and key therapeutic areas. Our distributed global operations infrastructure allows us to support client deliverables 24 hours a day, seven days a week, in more than 100 countries. We believe the scale, global footprint and connectivity our infrastructure provides is unique within the healthcare vertical and will be of increasing value to our clients in a period where cost pressures will grow.

As part of our information technology infrastructure, we employ a wide variety of proprietary technologies and processes to source, collect, cleanse, bridge, edit and organize data. We then apply a combination of sophisticated computer processing, statistical sampling and projection procedures, advanced analytics, forecasting methodologies and our skills and experience to create and deliver our offerings to clients. The following is an overview of the technologies and processes we employ:

· Data Sourcing. We collect information from a wide variety of data suppliers, including manufacturers, wholesalers, pharmacies, physicians, hospitals, laboratories, health plans and other payors, governments, services organizations, information technology vendors, patients and others. We are able to collect information in a wide variety of formats and through various methods of delivery. We frequently license some of our proprietary technologies (e.g., encryption programs, data standardization algorithms, data editing and collection software) to data suppliers to support the accurate and privacy-enhanced collection of data by the supplier and secure delivery of that data to us.

· Data Receipt. We work closely with data suppliers to support the timely and secure delivery of data to us. Following receipt of data from our suppliers, we employ a variety of initial quality control checks and processes (based on proprietary metrics and parameters) to ensure data has been properly delivered to us.

· Data Editing / Validation. Following data receipt and initial quality control checks, we use proprietary data cleansing, editing, and other sophisticated tools (based on proprietary metrics, parameters and methodologies) to find and resolve data quality issues in the data supplied to us.

· Data Bridging / Reference Files. We receive data relating to tens of millions of transactions each week. To standardize data for each transaction, which is received from a wide variety of sources who frequently use their own proprietary reference numbers and codes, and allow for alignment of the data prior to projection or aggregation, we bridge (i.e., link) information received from suppliers to our reference files. We develop and maintain these reference files for various types of information, including medicines, diagnoses, treatment modalities, distribution centers, health care offices, integrated health networks, insurance plans and data classification schemes.

· Database Management. When data has successfully passed through the processes referenced above, it is added to applicable IMS databases. In connection with the movement of the information to these databases, we employ additional quality control checks and processes.

· Projection Methodologies. Most of our offerings are derived from the use of statistically representative samples. More than 100 statisticians support the development of proprietary sample designs and projection methodologies to estimate activities to achieve a high degree of accuracy.

· Estimation Methodologies. For our larger datasets, we employ data imputation methods that allow us to estimate for any missing or questionable data until the underlying issue is resolved. By using these estimation methodologies, analysis has shown our offerings are more accurate and not prone to trending aberrations caused by issues in the data flow process.

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· Client Reports. After the completion of the processes described above, we are ready to create reports and other information deliverables for clients based on their specifications. We employ various methods of report delivery, including secure portals, software-as-a-service, direct delivery of data into client data warehouses or direct delivery to mobile devices.

Highly differentiated technology services fully integrated with IMS information. Our ability to integrate technology services with our data creates mission-critical, actionable intelligence that improves our overall value proposition to our clients. Our expanding set of sophisticated human capital resources and technology services offerings combined with our deep understanding of our scaled information assets provides what we believe to be a competitive advantage in an environment where clients require better performance. For example, in 2012, we introduced our healthcare-specific intelligent cloud, IMS One, which helps our clients fully recognize the benefits of our infrastructure. Our cloud is unique in the healthcare industry because it pre-integrates applications with IMS data and provides interoperability across IMS and third party applications. We believe that these benefits both reduce complexity associated with data integration and save our clients time and costs in synchronizing data across applications. We envision that over time IMS One will become an industry standard around which applications are hosted and information shared on an interoperable basis.

Long standing client relationships that are expanding. The breadth of the intelligent, actionable information we provide is not comprehensively available from any other source and would be difficult and costly for another party to replicate. We believe our information and technology services are deeply integrated into our clients’ workflow. We maintain long-standing relationships and high renewal rates with clients due to the value of the services and solutions we provide, as well as support the need for globally consistent information to enable comprehensive trend analysis at the local, regional, national and multi-country levels. For example, we believe the majority of pharmaceutical companies across more than 50 countries rely on our information to monitor the performance of their sales representatives and use it as a key factor in making ongoing compensation decisions. The average length of our relationships with our top 25 clients, as measured by revenue, is over 25 years and our retention rate for our top 1,000 clients from 2014 to 2015 was 99%. Serving over 5,000 clients creates significant opportunity to expand the breadth of services we provide to our clients.

Unique and scalable operating model. We believe we have an attractive operating model due to the scalability of our solutions, the recurring nature of our revenue and the low capital intensity/high free cash flow conversion of our business. Our global infrastructure and healthcare focus allows us to provide large-scale healthcare data, technology and service solutions to clients rapidly and cost-effectively. In 2015, our revenue generated by information offerings represented approximately 51% of our total revenue, approximately 90% of which came from subscription or licensed-based contracts in each of the last three fiscal years and, as a result, has historically been recurring and predictable. Given the fixed-cost nature of our data, we are able to scale our solutions quickly and at low marginal cost. Revenue from our technology services offerings represented approximately 49% of our total revenue, consisting of a mix of projects, large-scale engagements, multi-year outsourcing contracts and multi-year Software-as-a-Service (“SaaS”) licenses. Additionally, we have executed a multi-year plan to streamline our organization and enhance our technology platform to accommodate more complex analytics and significant additional data volumes with limited incremental technology costs. We believe our recurring revenue, combined with our leading offerings will continue to contribute to our long-term growth and strong operating margins and flexibility in allocating capital.

Our Growth Strategy

We believe we are well positioned for continued growth across the markets we serve. Our strategy for achieving growth includes:

Build upon our extensive client relationships. We have a diversified base of over 5,000 clients in over 100 countries, and have expanded our client value proposition since the Merger to now address a broader market for information and technology services which we estimate to be $50 billion. Through the development of IMS One and focused internal and external development of key client applications, such as customer relationship management (“CRM”), channel management, incentive compensation, social media and clinical trials optimization, we have built a platform that allows us to be a more complete partner to our clients. We believe we are in the early stages of penetrating this expanding market within our global life sciences client base. Key elements of this strategy include:

· further integrating our existing technology services to provide clients with interoperable solutions;

· increasing the number of clients that leverage our technology services offerings, including IMS One;

· using our global presence and efficient operating model to scale new applications and solutions rapidly and efficiently across clients, markets and geographies; and

· expanding the number of clients that choose to drive efficiencies by consolidating their vendor needs with us.

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Capitalize on our presence in emerging markets. We believe China, India, Brazil and Russia, together with many of the 50-plus other emerging markets in which we operate, will accelerate their healthcare spending over the next five years. We have an established presence in these markets, generating $473 million of revenue for 2015 (approximately 16% of our revenue) and growing at approximately 13% constant currency CAGR since 2010. We serve both multinational companies and local clients. For example, China has over 5,000 domestic pharmaceutical companies, a number of which are large with global aspirations. Key elements of this strategy include:

· partnering with existing life sciences clients as they expand their businesses into emerging markets;

· continuing to grow our existing services in emerging markets while simultaneously introducing new services drawn from our global portfolio; and

· building relationships with local companies that are expanding beyond their home markets by capitalizing on the global credibility and consistency of our platform.

Continue to innovate. We believe a significant opportunity exists to continue to enhance our information and analytics offerings and expand our technology services offerings to capitalize on the evolving healthcare environment. Our recent investments in human capital, technology and services capabilities position us to continue to pursue rapid innovation within the life sciences sector and the broader healthcare marketplace. An example of a recent innovation includes our development of E360, a suite of SaaS solutions applications designed for RWE, that enables pharmaceutical customers to manage, access, and analyze patient-level real-world data sets to enable real-time analytics, dramatically cutting the time and effort needed to work with the data.

Expand portfolio through strategic acquisitions. We have and expect to continue to acquire assets and businesses that strengthen our value proposition to clients. We have developed an internal capability to source, evaluate and integrate acquisitions that have created value for stockholders. Since the beginning of 2011, we have invested approximately $1.2 billion in 42 acquisitions. As the global healthcare landscape evolves, we expect that there will be a growing number of acquisition opportunities across the life sciences, payer and provider sectors. We will continue to invest in strategic acquisitions to grow our platform and enhance our ability to provide more services to our clients and expect to seek opportunities, primarily in the areas of technological platforms, data suppliers and consulting services providers.

Expand the penetration of our offerings to the broader healthcare marketplace. We believe that substantial opportunities exist to expand penetration of our addressable market and further integrate our offerings in a broader cross-section of the healthcare marketplace. Key elements of this strategy include:

· continuing to sell innovative solutions to life sciences clients in areas we have recently entered, such as clinical trial analytics;

· leveraging our comprehensive collection of healthcare information to provide critical insights to payers and providers, enabling advanced patient analytics and population health management; and

· utilizing our proprietary information and analytics to address the evolving needs of the broader healthcare marketplace. The development of our MD360 Provider Performance Management platform highlights augmentation of our core capabilities to penetrate a new and growing area of healthcare information management by using our proprietary library of clinical and cost measures to determine and publish highly specific performance targets for providers.

Our Offerings

We offer hundreds of distinct services, applications and solutions to help our clients make critical decisions and perform better. While historically our offerings focused mainly in information and analytics, we now routinely integrate information with technology services to ensure our clients receive the most value from our information to enable them to incorporate insights into their workflow. These offerings complement each other and can provide enhanced value to our clients when delivered together, with each driving demand for the other.

Our principal information offerings include:

National information offerings. Our national offerings comprise unique services in more than 70 countries that provide consistent country level performance metrics related to sales of pharmaceutical products, prescribing trends, medical treatment and promotional activity across multiple channels including retail, hospital and mail order. These products are an integral part of critical processes in life science companies around the world and are also used extensively by the investment and financial sectors that deal with life science companies. Clients use these products to measure relative performance, assess market opportunity, determine brand and company strategy, and understand market dynamics. The products are available in a range of frequencies from weekly to annually, and are delivered in a variety of formats, including online hosted, PCs and mobile platforms.

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Sub-national information offerings. Our sub-national offerings comprise unique services in more than 60 countries that provide a consistent measurement of sales or prescribing activity at the regional, zip code and individual prescriber level (depending on regulation in country). These products are used extensively, with a majority of pharmaceutical sales organizations within these countries dependent on these services to set goals, determine resourcing, measure performance and calculate compensation.

OneKey. Our widely used reference database that tracks more than 14 million healthcare professionals in 70+ countries, providing a comprehensive view of health care practitioners that is critical for the commercial success of marketing and sales initiatives.

Our principal technology services offerings include:

Technology solutions. We provide an extensive range of cloud-based applications and associated implementation services. SaaS solutions support a wide range of commercial and regulatory processes, including multi-channel marketing, CRM, performance management, incentive compensation, territory alignment, roster management, call planning, compliance reporting and Master Data Management. These solutions are used by healthcare companies to manage, optimize and execute their commercial strategies in an orchestrated manner while meeting their regulatory obligations. Using proprietary algorithms, we combine our country-level data, healthcare expertise and therapeutic knowledge in over 100 countries to create our Global Market Insight family of offerings such as MIDAS, Analytics Link and Disease Insights, which provides a leading source of insight into international market dynamics and are used by most large pharmaceutical companies.

Real-World Evidence solutions. We enable clients to use anonymous patient-level data to understand treatments, outcomes, and costs to inform and advance healthcare decision making. With patient privacy and security safeguards, we offer data assets that integrate medical claims, prescriptions, electronic medical records, biomarkers and government statistics as needed for research requirements. Our propriety technologies and advanced analytic skills enable us to help clients manage and use this information to understand the effectiveness and economic efficiency of drugs in real-world use. Also with expertise in health economics and outcomes research, epidemiology, biostatistics, and local healthcare issues, we help biopharmaceutical companies engage more productively with health plans, providers and government agencies.

Workflow analytics and consulting services. We provide a broad set of strategic, analytic and support services to help the commercial operations of life sciences companies successfully transform their commercial models, engage more effectively with the healthcare stakeholders and reduce their operating costs. Our global teams leverage local market knowledge, therapeutic area expertise and our global information resources to assist our clients with portfolio, brand and commercial strategy, as well as pricing and market access. We leverage our global technology infrastructure and deep understanding of information and our clients’ operations to provide workflow analytics and outsourced services to sales operations, market research, brand planning and managed markets as well as to provide clients with interoperable solutions rather than individual products and services.

Our Data Suppliers

We maintain a diverse supplier base to support the information needs of our clients. Over the past six decades, we have developed and maintained strong relationships with data suppliers in each market in which we operate. These suppliers include manufacturers, wholesalers, pharmacies, physicians, hospitals, laboratories, health plans and other payors, governments, services organizations, information technology vendors, patients and others. We frequently license IMS proprietary technologies (e.g., encryption programs, data standardization algorithms, data editing and collection software) to data suppliers to support the accurate and privacy-enhanced collection of data by the supplier and secure delivery of that data to us. We have historical connections with many of the relevant trade associations and professional associations.

We devote significant human and financial resources to our data collection efforts and are adding new suppliers and new data sources every year to provide the most relevant information to our clients. Many of our data suppliers are also clients. For example, we offer performance monitoring and segmentation services to retail pharmacies, services that have become critical to supporting retailer growth objectives. Developing and providing services to suppliers supports a continuation of long-term supply relationships.

Our contractual arrangements with our data suppliers number in the thousands. Typical data supply contracts specify the data to be provided to us, the frequency of data delivery (e.g., daily, weekly, monthly), data quality obligations, data use rights, and consideration provided by us in exchange for the data (e.g., reports, services, remuneration). These contracts are tailored based on the type of data collected, the market, local law and the negotiated outcome with each counterparty and therefore can vary significantly in their terms. These contracts reflect a range of commitment terms from one year to ten years, with larger data supply contracts typically having a contract term of five years.

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Our Technology

We maintain what we believe is one of the largest and most sophisticated information technology infrastructures in healthcare globally. Our distributed global operations infrastructure supports client deliverables 24 hours a day, seven days a week, in more than 100 countries. This global infrastructure, which connects our data center in Carlstadt, New Jersey and Paris, France with our regional and local data centers around the world via our global network serves as the backbone for processing over 55 billion healthcare transactions annually. In addition, we maintain Offering Development and Delivery Hubs, along with global and regional COEs around the world, each with a focus area of expertise.

· In India, a team of over 2,000 technology experts support services delivery, software development and data management. Analytical services are deployed using common methodologies across each offering to promote consistent quality for each client deliverable.

· In Manila, The Philippines, we combine IT and medical resources (with over 700 specialists in healthcare and IT) to clean and standardize information from data suppliers around the world.

· Beijing, China is home to our innovative and proprietary statistical methodologies center. Our experts here are part of a global team that manages the statistical validity of data worldwide and guide how the data can be used.

· In Madrid, Spain, our experts code and manage core reference data worldwide. More than 200 IT and medical specialists with native skills in over 15 languages link information assets through in-house developed software platforms for master data management.

· Our Offering Development and Delivery hubs are based in London, United Kingdom; Paris, France; Plymouth Meeting, Pennsylvania; Warren, New Jersey and Seattle, Washington. Our product development teams leverage methodologies to release technology platforms and business intelligence tools that facilitate our clients’ ability to gain insight into information. Our applications are deployed on a common technical architecture allowing re-use across geographical locations and providing a common interface for end users.

· Central and regional production-focused COEs are located across the globe to efficiently support the delivery of IMS services. The Manila COE provides data cleaning and standardizing services, production management, and quality control operations. We selected Manila because there is wide availability of relevant healthcare skills, English is a first language, and it provides an efficient cost structure. The Madrid COE focuses on maintaining our reference management operations. The Chile based Operations Center of Latin America Regional hub provides time zone sensitive production services to the Latin America, Canada and U.S. business units. The Mexico City COE serves Spanish-speaking Latin America with experts in Technology Services. The Istanbul COE provides language specific production services to the North Africa, South Europe, Middle East and East Europe regions. In contrast to the central offering hubs, the regional COEs are generally focused on activities that are more dependent on specific languages or in some cases where we need alignment of time zones.

Our Clients

Sales to companies in life sciences, including pharmaceutical companies, biotechnology companies, device and diagnostic companies, and consumer health companies, accounted for approximately 90% of our revenue in 2015. Nearly all of the top 100 global pharmaceutical and biotechnology companies, measured by revenue, are clients, and many of these companies subscribe to reports and services in many countries. Other clients include payers, government and regulatory agencies, providers, pharmaceutical distributors, and pharmacies. Our client base is broad in scope and enables us to avoid dependence on any single client. In 2013, 2014 and 2015, our largest customer accounted for approximately 5% of our gross revenue.

Our Competition

We compete with a broad and diverse set of businesses. While we believe no competitor provides the combination of geographical reach and breadth of our services, we generally compete in the countries in which we operate with other information, analytics, technology, services and consulting companies, as well as with the in-house capabilities of our clients. Also, we compete with certain government agencies, private payers and other healthcare stakeholders that provide their data directly to others. In addition to country-by-country competition, we have a number of regional and global competitors in the marketplace as well. Our offerings compete with various firms, including Accenture, Cognizant Technology Solutions, Covance, Deloitte, Evidera, GfK, Health Market Science, IBM, Infosys, inVentiv Health, Kantar Health, McKinsey, Nielsen, OptumInsight, Parexel, Press Ganey, Quintiles, RTI Health Solutions, Symphony Health Solutions, Synovate Healthcare, The Advisory Board, Trizetto, Veeva, Verisk, and ZS Associates. We also compete with a broad range of new entrants and start-ups that are looking to bring new technologies and business models to healthcare information services and technology services.

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Privacy Management and Security

Patient health information is among the most sensitive of personal information, and it is critically important that information about an individual’s healthcare is properly protected from inappropriate access, use and disclosure. For decades, our market research business was built using health information that did not identify a patient—long before the passage of HIPAA or other privacy laws. We continue to engage in strong privacy and security practices in the collection, processing, analysis, reporting and use of information. We employ a wide variety of methods to manage privacy and security, including:

· governance, frameworks and models to promote good decision making and accountability;

· a layered approach to privacy and security management to avoid a single point of failure;

· ongoing evaluation of privacy and security practices to promote continuous improvement;

· use of safeguards and controls, including:

· technical safeguards—for example, technology and related policies and procedures to protect healthcare information and control access to it;

· administrative safeguards—for example, administrative actions and related policies and procedures to manage the selection, development, implementation and maintenance of measures to protect healthcare information;

· physical safeguards—for example, physical measures and related policies and procedures to protect electronic information systems and related buildings and equipment from natural and environmental hazards, and unauthorized intrusion;

· collaboration with data suppliers and trusted third parties for our syndicated data offerings to remove identifiable information or employ effective encryption or other techniques to render information anonymous before data is delivered to us; and

· working closely with leading researchers, policy makers, thought leaders and others in a variety of fields relevant to the application of effective privacy and security practices, including statistical, epidemiological and cryptographic sciences, legal, information security and compliance, and privacy.

Our Intellectual Property

We create, own and maintain a wide array of intellectual property assets which, in the aggregate, are of material importance to our business. Our intellectual property assets include: patents and patent applications related to our innovations, products and services; trademarks and trademark applications related to our brands, products and services; copyrights in software and databases; trade secrets relating to data processing, statistical methodologies, editing and bridging techniques, business rules and other aspects of our business; and other intellectual property rights and licenses of various kinds. We are licensed to use certain technology and other intellectual property rights owned and controlled by others, and, similarly, other companies are licensed on a non-exclusive basis to use certain technology and other intellectual property rights owned and controlled by us.

We seek to protect our intellectual property assets through patent, copyright, trade secret, trademark and other laws of the United States and other jurisdictions, and through confidentiality procedures and contractual provisions. A patent generally has a term of 20 years from the time the full patent application is filed. As we build a patent portfolio over time, the terms of individual patents will vary. While patents can help maintain the competitive differentiation of certain products and services and maximize the return on research and development investments, no single patent is in itself essential to our business as a whole. Further, in order to replace expiring patents and licenses or replace obsolete intellectual property, we attempt to obtain new intellectual property through protection of key innovation from a combination of our ongoing research and development activities, acquisitions of other companies and licensing of intellectual property from third parties. We enter into confidentiality and invention assignment agreements with employees and contractors, and non-disclosure agreements with third parties with whom we conduct business, in order to secure ownership rights to, limit access to, and restrict disclosure of our proprietary information.

The technology and other intellectual property rights owned and licensed by us are of importance to our business, although our management believes that our business, as a whole, is not dependent upon any one intellectual property or group of such properties. We consider our trademark and related names, marks and logos to be of material importance to our business, and we have registered or applied for registration for certain of these trademarks including IMS Health, IMS, the IMS logo, IMS One, MIDAS, OneKey, Xponent, DDD, MD360 Provider Performance Management and Evidence360, in the United States and other jurisdictions and aggressively seek to protect them.

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Our Employees

As of December 31, 2015, we have more than 15,000 employees worldwide. Almost all of these employees are full-time. None of our U.S. employees are represented by a union. In Belgium, France, Germany, Italy, the Netherlands and Spain, we have Works Councils, which are a legal requirement in those countries. We also have a European Works Council, which is a requirement under European Union laws. Management considers its relations with our employees to be good and to have been maintained in a normal and customary manner.

Available Information

Our company website is http://www.imshealth.com. Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed with or furnished to the Securities and Exchange Commission (“SEC”), are available, free of charge, through the Investor Relations section of our website at http://ir.imshealth.com or from the SEC’s website at www.sec.gov, as soon as reasonably practicable after they are filed with or furnished to the SEC. Information on our website does not constitute part of this report. Also posted on our website are our certificate of incorporation and by-laws, the charters for our Audit Committee, Leadership Development and Compensation Committee and Nominating and Governance Committee, our Corporate Governance Guidelines, our Code of Business Conduct governing our directors, officers and employees, and our Code of Ethics for Chief Executive Officer and Senior Financial Officers. Copies of our SEC reports and corporate governance information are available in print upon the request of any shareholder to our Investor Relations Department. Within the time period required by the SEC and the New York Stock Exchange (“NYSE”), we will post on our website any amendment to the Code of Business Conduct or the Code of Ethics for Chief Executive Officer and Senior Financial Officers or any waiver of either such policy applicable to any of our senior financial officers, executive officers or directors. Additionally, our filings with the SEC may be read and copied at the SEC Public Reference Room at 100 F Street, NE, Washington, DC 20549. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Item 1A. Risk Factors

Risks Related to our Business

We rely on third parties to provide certain data. Our data suppliers might restrict our use of or refuse to license data, which could lead to our inability to provide certain services and, as a result, materially and adversely affect our operating results and financial condition.

Each of our information services is derived from data we collect from third parties. These data suppliers are numerous and diverse, reflecting the broad scope of information that we collect and use in our business.

Although we typically enter into long-term contractual arrangements with many of these suppliers of data, at the time of entry into a new contract or renewal of an existing contract, suppliers may increase restrictions on our use of such data, increase the price they charge us for data or refuse altogether to license the data to us. In addition, during the term of any data supply contract, suppliers may fail to adhere to our data quality control standards or fail to deliver data. Further, although no single individual data supplier is material to our business, if a number of suppliers collectively representing a significant amount of data that we use for one or more of our services were to impose additional contractual restrictions on our use of or access to data, fail to adhere to our quality-control standards, repeatedly fail to deliver data or refuse to provide data, now or in the future, our ability to provide those services to our clients could be materially adversely impacted, which may harm our operating results and financial condition.

Failure to meet productivity objectives under our internal business transformation initiatives could adversely impact our competitiveness and harm our operating results.

We are pursuing business transformation initiatives to update technology, increase innovation and obtain operating efficiencies. As part of these initiatives, we seek to improve our productivity, flexibility, quality, functionality and cost savings by investing in the development and implementation of global platforms and integration of our business processes and functions to achieve economies of scale. For example, we hired and trained more than 500 people to form a COE in Manila, The Philippines for standardizing and cleaning data received from data suppliers, developed updated tools for standardizing and cleaning data, are moving local standardizing and cleaning from countries around the world to the Manila COE, and retired local standardizing and cleaning systems. These various initiatives may not yield their intended gains, which may impact our competitiveness and our ability to meet our growth objectives and, as a result, materially and adversely affect our business, operating results and financial condition.

If we are unsuccessful at investing in growth opportunities, our business could be materially and adversely affected.

We continue to invest significantly in growth opportunities, including the development and acquisition of new data, technologies and services to meet our clients’ needs. For example, we are expanding our services and technology offerings, such as the development of a cloud-based platform with a growing number of applications to support commercial operations for life sciences

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companies (e.g., multi-channel marketing, marketing campaign management, CRM, incentive compensation management, targeting and segmentation, performance management and other applications). We also continue to invest significantly in growth opportunities in emerging markets, such as the development, launch and enhancement of services in China, India, Russia, Turkey and other countries. We believe healthcare spending in these emerging markets will continue to grow over the next five years, and we consider our presence in these markets to be an important focus of our growth strategy.

There is no assurance that our investment plans or growth strategy will be successful or will produce a sufficient or any return on our investments. Further, if we are unable to develop new technologies and services, clients do not purchase our new technologies and services, our new technologies and services do not work as intended or there are delays in the availability or adoption of our new technologies and services, then we may not be able to grow our business or growth may occur slower than anticipated. Additionally, although we expect continued growth in healthcare spending in emerging markets, such spending may occur more slowly or not at all, and we may not benefit from our investments in these markets.

We plan to fund growth opportunities with cash from operations or from future financings. There can be no assurance that those sources will be available in sufficient amounts to fund future growth opportunities when needed.

Any of the foregoing could have a material and adverse effect on our operating results and financial condition.

Data protection, privacy and similar laws restrict access, use and disclosure of information, and failure to comply with or adapt to changes in these laws could materially and adversely harm our business.

Patient health information is among the most sensitive of personal information and it is critical that information about an individual’s healthcare is properly protected from inappropriate access, use and disclosure. Laws restricting access, use and disclosure of such information include the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”), the European Union’s Data Protection Directive (which may be added to or amended by the proposed General data Protection Regulation or other regulations in the future), Canada’s Personal Information Protection and Electronic Documents Act and other data protection, privacy and similar national, state/provincial and local laws. We have established frameworks, models, processes and technologies to manage privacy for many data types, from a variety of sources, and under myriad privacy and data protection laws worldwide. In addition, we rely on our data suppliers to deliver information to us in a form and in a manner that complies with applicable privacy and data protection laws. These laws are complex and there is no assurance that the safeguards and controls employed by us or our data suppliers will be sufficient to prevent a breach of these laws, or that claims will not be filed against us or our data suppliers despite such safeguards and controls. For example, in February 2014, a group of individuals filed a civil lawsuit in Korea against IMS Health Korea Ltd., our wholly-owned subsidiary (“IMS Korea”), the Korean Pharmaceutical Association (“KPA”) and a KPA affiliate that supplies data to IMS Korea. The lawsuit alleges the KPA affiliate collected plaintiffs’ personal information without the necessary consent in violation of applicable privacy laws and transferred such information to IMS Korea for sale to customers. In addition, in July 2015, indictments were issued by the Seoul Central District Prosecutors’ Office in South Korea against IMS Korea and two of its employees, among others, alleging improper handling of sensitive health information in violation of applicable privacy laws. See “Legal Proceedings.” Alleged or actual failure to comply with such laws may result in, among other things, negative publicity, damage to our reputation, civil and criminal liability, data being blocked from use or liability under contractual provisions.

Laws and expectations relating to privacy continue to evolve, and we continue to adapt to changing needs. Nevertheless, changes in these laws (including newly released interpretations of these laws by courts and regulatory bodies) may limit our data access, use and disclosure, and may require increased expenditures by us or may dictate that we not offer certain types of services. Any of the foregoing may have a material adverse impact on our ability to provide services to our clients or maintain our profitability.

There is ongoing concern from privacy advocates, regulators and others regarding data protection and privacy issues, and the number of jurisdictions with data protection and privacy laws has been increasing. Also, there are ongoing public policy discussions regarding whether the standards for de-identified, anonymous or pseudonomized health information are sufficient, and the risk of re-identification sufficiently small, to adequately protect patient privacy. These discussions may lead to further restrictions on the use of such information. There can be no assurance that these initiatives or future initiatives will not adversely affect our ability to access and use data or to develop or market current or future services.

Data protection, privacy and similar laws protect more than patient information, and although they vary by jurisdiction, these laws can extend to employee information, business contact information, provider information and other information relating to identifiable individuals. Failure to comply with these laws may result in, among other things, civil and criminal liability, negative publicity, damage to our reputation and liability under contractual provisions. In addition, compliance with such laws may require increased costs to us or may dictate that we not offer certain types of services.

The occurrence of any of the foregoing could impact our ability to provide the same level of service to our clients, require us to modify our offerings or increase our costs, which could materially and adversely affect our operating results and financial condition.

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Security breaches and unauthorized use of our IT systems and information, or the IT systems or information in the possession of our vendors, could expose us, our clients, our data suppliers or others to risk of loss.

We rely upon the security of our computer and communications systems infrastructure to protect us from cyber attacks and unauthorized access. Cyber attacks can include malware, computer viruses, hacking or other significant disruption of our computer, communications and related systems. Although we take steps to manage and avoid these risks and to prevent their recurrence, our preventive and remedial actions may not be successful. Such attacks, whether successful or unsuccessful, could result in our incurring costs related to, for example, rebuilding internal systems, defending against litigation, responding to regulatory inquiries or actions, paying damages or fines, or taking other remedial steps with respect to third parties. Publicity about vulnerabilities and attempted or successful incursions could damage our reputation with clients and data suppliers and reduce demand for our services.

We also store proprietary and sensitive information in connection with our business, which could be compromised by a cyber attack. To the extent that any disruption or security breach results in a loss or damage to our data, an inappropriate disclosure of proprietary or sensitive information, an inability to access data sources, or an inability to process data or provide our offerings to our clients, it could cause significant damage to our reputation, affect our relationships with our data suppliers and clients (including loss of suppliers and clients), lead to claims against us and ultimately harm our business. We may be required to incur significant costs to alleviate, remedy or protect against damage caused by these disruptions or security breaches in the future. We may also face inquiry or increased scrutiny from government agencies as a result of any such disruption or breach. While we have insurance coverage for certain instances of a cyber security breach, our coverage may not be sufficient if we suffer a significant attack or multiple attacks. Any such breach or disruption could have a material adverse effect on our operating results and our reputation as a provider of mission-critical services.

Some of our vendors have significant responsibility for the security of certain of our data centers and computer-based platforms. Also, our data suppliers have responsibility for security of their own computer and communications environments. These third parties face risks relating to cyber security similar to ours, which could disrupt their businesses and therefore materially impact ours. Accordingly, we are subject to any flaw in or breaches to their computer and communications systems or those that they operate for us, which could result in a material adverse effect on our business, operations and financial results.

Hardware and software failures, delays in the operation of our computer and communications systems or the failure to implement system enhancements may adversely impact us.

Our success depends on the efficient and uninterrupted operation of our computer and communications systems. A failure of our network or data-gathering procedures could impede the processing of data, delivery of databases and services, client orders and day-to-day management of our business and could result in the corruption or loss of data.

While many of our operations have disaster recovery plans in place, we currently do not have excess or standby computer processing or network capacity everywhere in the world to avoid disruption in the receipt, processing and delivery of data in the event of a system failure. Despite any precautions we may take, damage from fire, floods, hurricanes, power loss, telecommunications failures, computer viruses, break-ins, sabotage, breaches of security, epidemics and similar events at our various computer facilities could result in interruptions in the flow of data to our servers and from our servers to our clients. In addition, any failure by our computer environment to provide sufficient processing or network capacity to transfer data could result in interruptions in our service. In the event of a delay in the delivery of data, we could be required to transfer our data collection operations to an alternative provider of server hosting services. Such a transfer could result in significant delays in our ability to deliver services to our clients, and increase our costs. Additionally, significant delays in the planned delivery of system enhancements, improvements and inadequate performance of the systems once they are completed could damage our reputation and harm our business. Finally, long-term disruptions in the infrastructure caused by events such as natural disasters, the outbreak of war, the escalation of hostilities, epidemics and acts of terrorism (particularly involving cities in which we have offices) could result in a material adverse effect to our business, operating results and financial condition.

Although we carry property and business interruption insurance, our coverage may not be adequate to compensate us for all losses that may occur. Any such failure, disruption or delay could have a material adverse effect on our operating results and our reputation.

Consolidation in the industries in which our clients operate may reduce the volume of services purchased by consolidated clients following an acquisition or merger, which could materially harm our operating results and financial condition.

Mergers or consolidations among our clients have in the past and could in the future reduce the number of our clients and potential clients. When companies consolidate, overlapping services previously purchased separately are usually purchased only once by the combined entity, leading to loss of revenue. Other services that were previously purchased by one of the merged or consolidated entities may be deemed unnecessary or cancelled. If our clients merge with or are acquired by other entities that are not our clients, or that use fewer of our services, they may discontinue or reduce their use of our services. There can be no assurance as to

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the degree to which we may be able to address the revenue impact of such consolidation. Any of these developments could materially harm our operating results and financial condition.

Laws restricting pharmaceutical sales and marketing practices may adversely impact demand for our services.

There have been a significant number of laws, legislative initiatives and regulatory actions over the years that seek to limit pharmaceutical sales and marketing practices. For example, three states in 2006 and 2007 passed laws restricting the use of prescriber identifiable information for the purpose of promoting branded prescription medicines. Although these laws were subsequently declared to be unconstitutional based on a decision of the U.S. Supreme Court in Sorrell v. IMS Health in 2011, we are unable to predict whether, and in what form, other initiatives may be introduced or actions taken at the state or Federal levels to limit pharmaceutical sales and marketing practices. In addition, while we will continue to seek to adapt our services to comply with the requirements of these laws (to the extent applicable to our services), if enacted, there can be no assurance that our efforts to adapt our offerings will be successful and provide the same financial contribution to us. There can also be no assurance that future legislative initiatives will not adversely affect our ability to develop or market current or future offerings, or that any future laws will not diminish the demand for our services, all of which could, over time, result in a material adverse impact on our operating results and financial condition.

Our business is subject to increasing competition.

Our future growth and success will depend on our ability to successfully compete with other companies that provide similar services in the same markets, some of which may have financial, marketing, technical and other advantages. We also expect that competition will continue to increase as a result of consolidation in both the information technology and healthcare industries. Large technology companies with substantial resources, technical expertise and greater brand power could also decide to enter or further expand in the markets where we operate and compete with us. If one or more of our competitors or potential competitors were to merge or partner with another of our competitors, or if a new entrant emerged with substantial resources, the change in the competitive landscape could adversely affect our ability to compete effectively. We compete on the basis of various factors, including breadth and depth of services, reputation, reliability, quality, innovation, security, price and industry expertise and experience. In addition, our ability to compete successfully may be impacted by the growing availability of health information from social media, government health information systems and other free or low-cost sources. For example, the United Kingdom’s National Health Service started releasing large volumes of data beginning in December 2011 at little or no charge, reducing the demand for our information services derived from similar data. In addition, consolidation or integration of wholesalers, retail pharmacies, health networks, payers or other healthcare stakeholders may lead any of them to provide information services directly to clients or indirectly through a designated service provider, resulting in increased competition from firms that may have lower costs to market (e.g., no data supply costs). Any of the above may result in lower demand for our services, which could result in a material adverse impact on our operating results and financial condition.

Tax matters could adversely affect our operating results and financial condition.

We operate in more than 100 countries worldwide and our earnings are subject to taxation in many differing jurisdictions and at differing rates. We seek to organize our affairs in a tax-efficient manner, taking account of the jurisdictions in which we operate. Our provision for income taxes and cash tax liability in the future could be adversely affected by numerous factors, including income before taxes being lower than anticipated in countries with lower statutory tax rates and higher than anticipated in countries with higher statutory tax rates, changes in the valuation of deferred tax assets and liabilities, and changes in tax laws, regulations, accounting principles or interpretations thereof, which could harm our financial results in future periods. In addition, we are subject to continuous examination of our income tax returns by the U.S. Internal Revenue Service and other tax authorities. We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. There can be no assurance that the outcomes from these continuous examinations will not have an adverse effect on our provision for income taxes and tax liability.

Litigation or regulatory proceedings could have a material adverse effect on our operating results and financial condition.

In the normal course of our business, we are involved in lawsuits, claims, audits and government investigations, such as those described in “Legal Proceedings.” In addition, we may become subject to future lawsuits, claims, audits and investigations that could result in substantial costs and divert our attention and resources. Litigation is inherently uncertain, and adverse rulings could occur, including monetary damages, or an injunction stopping us from producing, publishing or selling services, engaging in business practices or requiring other remedies such as divestitures.

Our business may be materially and adversely impacted by factors affecting the pharmaceutical and healthcare industries.

The vast majority of our revenue is generated from sales to the pharmaceutical and healthcare industries. The clients we serve in these industries are commonly subject to financial pressures, including, but not limited to, increased costs, reduced demand for their

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products, reductions in pricing and reimbursement for products and services, formulary approval and placement, government approval to market their products and limits on the manner by which they market their products, loss of patent exclusivity (whether due to patent expiration or as a result of a successful legal challenge) and the proliferation of or changes to regulations applicable to these industries. To the extent our clients face such pressures, or they change how they utilize our offerings, the demand for our services, or the prices our clients are willing to pay for those services, may decline. Any such decline could have a material adverse effect on our business, operating results and financial condition.

Our success depends on our ability to protect our intellectual property rights.

Our ability to obtain, protect and enforce our intellectual property rights is subject to general litigation or third-party opposition risks, as well as the uncertainty as to the scope of protection, registrability, patentability, validity and enforceability of our intellectual property rights in each applicable country. Governments may adopt regulations, and government agencies or courts may render decisions, requiring compulsory licensing of intellectual property rights. When we seek to enforce our intellectual property rights we may be subject to claims that the intellectual property rights are invalid or unenforceable. Litigation may be necessary in the future to enforce our intellectual property rights and to protect our confidential and proprietary information. Litigation brought to protect and enforce our intellectual property rights could be costly, time consuming and distracting to management and could result in the impairment or loss of portions of our intellectual property rights. Furthermore, our efforts to enforce our intellectual property rights may be met with defenses, counterclaims and countersuits attacking the validity and enforceability of our intellectual property rights. Our inability to protect our proprietary technology against unauthorized copying or use, as well as any costly litigation or diversion of our management’s attention and resources, could delay further sales or the implementation of our solutions, impair the functionality of our solutions, delay introductions of new solutions, result in our substituting inferior or more costly technologies into our solutions, or injure our reputation and harm our operating results and financial condition.

The theft or unauthorized use or publication of our trade secrets and other confidential business information could reduce the differentiation of our services and harm our business; the value of our investment in development or business acquisitions could be reduced; and third parties might make claims against us related to losses of their confidential or proprietary information. In addition, we may not be able to discover or determine the extent of any unauthorized use of our proprietary rights. Third parties that license our proprietary rights also may take actions that diminish the value of our proprietary rights or reputation. The protection of our intellectual property may require the expenditure of significant financial and managerial resources. Moreover, the steps we take to protect our intellectual property may not adequately protect our rights or prevent third parties from infringing or misappropriating our proprietary rights. These incidents and claims could harm our business, reduce revenue, increase expenses and harm our reputation.

We may be subject to claims by others that we are infringing on their intellectual property rights.

Third parties may assert claims that we or our clients infringe their intellectual property rights and these claims, with or without merit, could be expensive to litigate, cause us to incur substantial costs and divert management resources and attention in defending the claim. In some jurisdictions, plaintiffs can also seek injunctive relief that may limit the operation of our business or prevent the marketing and selling of our products or services that infringe on the plaintiff’s intellectual property rights. To resolve these claims, we may enter into licensing agreements with restrictive terms or significant fees, stop selling, be required to implement costly redesigns to the affected products or services, or pay damages to satisfy contractual obligations to others. If we do not resolve these claims in advance of a trial, there is no guarantee that we will be successful in court. These outcomes may have a material adverse impact on our business, operating results and financial condition.

In addition, certain contracts with our suppliers or clients contain provisions whereby we indemnify, subject to certain limitations, the counterparty for damages suffered as a result of claims related to intellectual property infringement and the use of our data. Claims made under these provisions could be expensive to litigate and could result in significant payments.

We rely on licenses from third parties to certain technology and intellectual property rights for some of our products and the licenses we currently have could terminate or expire.

Some of our products or services rely on technology or intellectual property rights owned and controlled by others. Our licenses to this technology or these intellectual property rights could be terminated or could expire. We may be unable to replace these licenses in a timely manner. Failure to renew these licenses, or renewals of these licenses on less advantageous terms, could harm our operating results and financial condition.

We may not be able to attract, retain and motivate talented personnel.

Our business is based on successfully attracting and retaining talented employees. The market for highly skilled workers and leaders in our industry and in the locations in which we operate is very competitive. If we are not successful in our recruiting efforts, or if we are unable to retain key employees, our ability to develop and deliver successful services may be adversely affected. Effective

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succession planning is also important to our long-term success. Failure to ensure effective transfer of knowledge and smooth transitions involving key employees could hinder our strategic planning and execution.

We regularly seek to grow our business through acquisitions of or investments in new or complementary businesses, services or technologies, or through strategic alliances, and the failure to manage such acquisitions, investments or alliances could have a material adverse effect on us.

In executing our business strategy, we routinely conduct discussions, evaluate opportunities and enter into agreements for possible investments, acquisitions and other transactions such as strategic alliances, and we actively pursue these types of transactions in the regular course of business. Pursuing growth by way of these types of transactions involves significant challenges and risks, including the inability to successfully identify acquisition candidates on terms acceptable to us, advance our business strategy, realize a satisfactory return on investment, successfully integrate business activities or resources, or retain key personnel. If we are unable to manage acquisitions or investments, or integrate any acquired businesses, services or technologies effectively, we may not realize the expected benefits from the transaction relative to the consideration paid, and our business, operating results and financial condition may be materially and adversely affected.

Further, we may be unsuccessful in identifying and evaluating business, legal or financial risks as part of the due diligence process associated with a particular transaction. In addition, some investments may result in the incurrence of debt or may have contingent consideration components that may require us to pay additional amounts in the future in relation to future performance results of the subject business. If we do enter into agreements with respect to these transactions, we may fail to complete them due to factors such as failure to obtain regulatory or other approvals. We may be unable to realize the full benefits from these transactions, such as increased revenue or enhanced efficiencies, within the timeframes that we expect or at all. These events could divert attention from our other businesses and harm our business, financial condition and operating results.

We may experience challenges with the acquisition, development, enhancement or deployment of technology necessary for our business.

We operate in businesses that require sophisticated computer systems and software for data collection, data processing, cloud-based platforms, analytics, cryptography, statistical projections and forecasting, mobile computing, social media analytics and other applications and technologies. We seek to address our technology risks by increasing our reliance on the use of innovations by cross-industry technology leaders and adapt these for our pharmaceutical and healthcare industry clients. Some of these technologies supporting the industries we serve are changing rapidly and we must continue to adapt to these changes in a timely and effective manner at an acceptable cost. We also must continue to deliver data to our clients in forms that are easy to use while simultaneously providing clear answers to complex questions. There can be no guarantee that we will be able to develop, acquire or integrate new technologies, that these new technologies will meet our clients’ needs or achieve expected investment goals, or that we will be able to do so as quickly or cost-effectively as our competitors. Significant technological change could render our services obsolete. Moreover, the introduction of new services embodying new technologies could render existing services obsolete. Our continued success will depend on our ability to adapt to changing technologies, manage and process ever-increasing amounts of data and information and improve the performance, features and reliability of our services in response to changing client and industry demands. We may experience difficulties that could delay or prevent the successful design, development, testing, introduction or marketing of our services. New services, or enhancements to existing services, may not adequately meet the requirements of current and prospective clients or achieve any degree of significant market acceptance. Any of these failures could have a material adverse effect on our operating results and financial condition.

We generate revenues throughout the world which are subject to exchange rate fluctuations, and our revenues and net income may suffer due to currency translation.

We have business activities in over 100 countries and we generate significant revenue from outside the United States. Our U.S. business earns revenues and incurs expenses primarily in U.S. dollars, while our Eurozone businesses earn revenues and incur expenses primarily in Euros. Outside the United States and the Eurozone, we also generate revenues and expenses predominantly in local currencies. Although we hedge a portion of our international currency exposure, we are subject to currency translation exposure on the profits and financial position and enterprise value of our operations, in addition to economic exposure, as a result of devaluations and fluctuations in currency exchange rates or the imposition of limitations on conversion of foreign currencies into U.S. dollars.

Certain of the countries in which we operate, such as Venezuela, have currencies which are considered to be hyperinflationary. In February 2013, the Venezuelan government announced the devaluation of its currency and the official exchange rate was adjusted from 4.30 Bolívars to each U.S. Dollar to 6.30. As a result of this change, we recorded a pre-tax charge of approximately $14 million to Other income (loss), net in 2013 related to the remeasurement of the IMS AG Venezuelan Bolívar account balances and the remeasurement of certain local Venezuelan account balances. In 2014, Venezuela announced a dual-foreign exchange rate system, which effectively devalued the local currency. As a result of this change, we recorded a pre-tax charge of $49 million to foreign

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exchange loss within Other income (loss), net in 2014 and a $7 million pre-tax charge in 2015. See “Item 7A. Quantitative and Qualitative Disclosures About Market Risk – Venezuela.” In addition, government restrictions have historically limited our ability to convert Bolívars to U.S. Dollars and transfer funds out of Venezuela.  

Our business is subject to international economic, political and other risks that could negatively affect our operating results and financial condition.

We have business activities in over 100 countries and some of our business activities are concentrated into global or regional hubs in one or more geographic areas. For example, to support our businesses in many other countries, we handle standardizing and cleaning of data in Manila, The Philippines, advanced statistics in Beijing, China, analytical support for delivery in Bangalore, India, and reference data management in Santiago, Chile. We are therefore subject to heightened risks inherent in conducting business internationally, in particular in the emerging markets in which we conduct and into which we are expanding our business. These risks include, for example:

· required compliance with a variety of local laws and regulations which may be materially different than those to which we are subject in the United States or which may change unexpectedly;

· local, economic, political and social conditions, including potential hyperinflationary conditions, political instability, and potential nationalization, repatriation, expropriation, price controls or other restrictive government actions;

· hiring, retaining and overseeing qualified management personnel for managing operations in multiple countries;

· differing employment practices and labor issues;

· tax-related risks, including the imposition of taxes and the lack of beneficial treaties, that result in a higher effective tax rate for us;

· difficulties in enforcing agreements through certain foreign local systems;

· limitations on ownership and on repatriation of earnings;

· possible liabilities under applicable anti-corruption laws, export controls, anti-boycott and economic sanctions laws;

· longer sales and payment cycles;

· reduced protection for intellectual property rights in some countries; and

· security concerns, including crime, political instability and international response thereto.

To the extent we are unable to effectively manage our international operations and these risks, our data acquisition activities and sales for certain countries may be adversely affected, we may be subject to additional and unanticipated costs, and we may be subject to litigation or regulatory action. As a consequence, our business, operating results and financial condition could be materially and adversely harmed.

We may be exposed to liabilities under applicable anti-corruption laws and any determination that we violated these laws could have a material adverse effect on our business.

We are subject to various anti-corruption laws that prohibit improper payments or offers of payments to foreign governments their officials and others for the purpose of obtaining or retaining business. We have business in countries and regions which are less developed and are generally recognized as potentially more corrupt business environments. Our activities in these countries create the risk of unauthorized payments or offers of payments by one of our employees or agents that could be in violation of various anti-corruption laws including the Foreign Corrupt Practices Act (“FCPA”) the U.K. Bribery Act and other local laws. We have implemented safeguards and policies to discourage these practices by our employees and agents. However, our existing safeguards and any future improvements may prove to be less than effective and our employees or agents may engage in conduct for which we might be held responsible. In addition, our significant recent growth globally over the last few years and our anticipated future growth, both organically and through acquisitions, may exacerbate these risks and strain our ability to effectively manage the increased breadth and scope of our activities to avoid these risks. If employees violate our policies or we fail to maintain adequate record-keeping and internal accounting practices to accurately record our transactions, we may be subject to regulatory sanctions. Violations of the FCPA or other anti-corruption laws may result in severe criminal or civil sanctions and penalties, including disgorgement of profits, injunctions and debarment from government contracts, and we may be subject to other liabilities which could have a material adverse effect on our business, operating results and financial condition.

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Catastrophic events or geo-political conditions may disrupt our business.

A disruption or failure of our systems or operations because of a major earthquake, weather event, cyber-attack, terrorist attack, pandemic or other catastrophic event could cause delays in completing sales, providing services, collecting data or performing other mission-critical functions in affected areas. A catastrophic event that results in the destruction or disruption of any of our critical business or information technology systems could harm our ability to conduct normal business operations. Our move toward providing our clients with more services and solutions in the cloud puts a premium on the resilience of our systems and strength of our business continuity management plans, and magnifies the potential impact of prolonged service outages on our operating results. Abrupt political change, terrorist activity and armed conflict pose a risk of general economic disruption in affected countries, which may increase our operating costs or reduce our revenue.

We face risks related to sales to government entities.

We derive a portion of our revenue from sales to government entities in the United States, which represented less than 1% of our revenues in each of the last three fiscal years. In general, our contracts with U.S. government entities are terminable at will by the government entity at any time. Government demand and payment for our services may be affected by public-sector budgetary cycles and funding authorizations. Government contracts are subject to oversight, including special rules on accounting, expenses, reviews and security. Failure to comply with these rules could result in civil and criminal penalties and sanctions, including termination of contracts, fines and suspensions, or debarment from future business with the U.S. government. As a result, failure to comply with these rules could have a material adverse effect on our operating results and financial condition.

Our use of accounting estimates involves judgment and could adversely impact our financial results, and ineffective internal controls could adversely impact our business and operating results.

The methods, estimates and judgments that we use in applying accounting policies have a significant impact on our operating results. For more information, see Note 2 to our Consolidated Financial Statements included elsewhere in this report. These methods, estimates and judgments are subject to significant risks, uncertainties and assumptions, and changes could affect our operating results. In addition, our internal control over financial reporting may not prevent or detect misstatements because of the inherent limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud. Even effective internal controls can provide only reasonable assurance with respect to the preparation and fair presentation of financial statements. If we fail to maintain the adequacy of our internal controls, including any failure to implement required new or improved controls, or if we experience difficulties in their implementation, our business and operating results could be harmed and we could fail to meet our reporting obligations.

If our goodwill or other identifiable intangible assets become impaired, we may be required to record a significant charge to earnings.

Goodwill and indefinite-lived intangible assets are subject to annual review for impairment (or more frequently should indications of impairment arise). In addition, other acquired intangible assets are also reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. As of December 31, 2015, we had goodwill and identifiable intangible assets of $5,782 million. Any downward revisions in the fair value of our intangible assets could result in impairment charges for goodwill and identifiable intangible assets that could materially affect our operating results and financial condition.

Risks Relating to our Common Stock

Our Sponsors have significant influence over us, including control over decisions that require the approval of stockholders, which could limit your ability to influence the outcome of matters submitted to stockholders for a vote.

We are currently controlled by the Sponsors. As of February 10, 2016, investment funds affiliated with the Sponsors beneficially owned approximately 53.5% of our outstanding common stock. As long as the Sponsors own or control at least a majority of our outstanding voting power, they will have the ability to exercise substantial control over all corporate actions requiring stockholder approval, irrespective of how our other stockholders may vote, including the election and removal of directors and the size of our board of directors, any amendment of our certificate of incorporation or bylaws, or the approval of any merger or other significant corporate transaction, including a sale of substantially all of our assets. Even if their ownership falls below 50%, the Sponsors will continue to be able to strongly influence or effectively control our decisions.

Additionally, the Sponsors interests may not align with the interests of our other stockholders. The Sponsors are in the business of making investments in companies and may acquire and hold interests in businesses that compete directly or indirectly with us. The Sponsors may also pursue acquisition opportunities that may be complementary to our business, and, as a result, those acquisition opportunities may not be available to us. In addition, our certificate of incorporation provides that we renounce any interest or expectancy in the business opportunities of the Sponsors and of their officers, directors, agents, stockholders, members, partners,

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affiliates and subsidiaries and each such party shall not have any obligation to offer us those opportunities unless presented to one of our directors or officers in his or her capacity as a director or officer.

We are a “controlled company” within the meaning of the rules of the NYSE and, as a result, qualify for and rely on, exemptions from certain corporate governance requirements; you will not have the same protections afforded to stockholders of companies that are subject to such requirements.

Because the Sponsors control a majority of the voting power of our outstanding common stock, we are a “controlled company” within the meaning of the corporate governance standards of the NYSE. Under these rules, a company of which more than 50% of the voting power for the election of directors is held by an individual, group or another company is a “controlled company” and may elect not to comply with certain corporate governance requirements, including the requirements that, within one year of the date of the listing of our common stock:

· we have a board of directors that is composed of a majority of “independent directors,” as defined under the rules of the NYSE;

· we have a compensation committee that is composed entirely of independent directors; and

· we have a nominating and corporate governance committee that is composed entirely of independent directors.

We currently avail ourselves of all of these exemptions. Accordingly, in the event the interests of our Sponsors differ from those of other stockholders, and, for so long as we are a “controlled company,” you will not have the same protections afforded to stockholders of companies that are subject to all of the corporate governance requirements of the NYSE. Our status as a controlled company could make our common stock less attractive to some investors or otherwise harm our stock price.

Provisions of our corporate governance documents could make an acquisition of our company more difficult and may prevent attempts by our stockholders to replace or remove our current management, even if beneficial to our stockholders.

In addition to the Sponsors’ beneficial ownership of a controlling percentage of our common stock, our certificate of incorporation and bylaws and the Delaware General Corporation Law (the “DGCL”) contain provisions that could make it more difficult for a third party to acquire us, even if doing so might be beneficial to our stockholders. These provisions, some of which (as noted below) only become effective when the Sponsors no longer beneficially own a majority of our common stock (the “Trigger Date”), include:

· the division of our board of directors into three classes and the election of each class for three-year terms;

· the sole ability of the board of directors to fill a vacancy created by the expansion of the board of directors;

· advance notice requirements for stockholder proposals and director nominations;

· after the Trigger Date, limitations on the ability of stockholders to call special meetings and to take action by written consent;

· after the Trigger Date, in certain cases, the required approval of holders of at least 75% of the shares entitled to vote generally on the amendment or repeal of our certificate of incorporation or bylaws to adopt, amend or repeal our bylaws, or amend or repeal certain provisions of our certificate of incorporation;

· after the Trigger Date, the required approval of holders of at least 75% of the shares entitled to vote in an election of directors to remove directors, which removal may only be for cause; and

· the ability of our board of directors to issue new series of, and designate the terms of, preferred stock, without stockholder approval, which could be used to, among other things, institute a rights plan that would have the effect of significantly diluting the stock ownership of a potential hostile acquirer, likely preventing acquisitions that have not been approved by our board of directors.

In addition, Section 203 of the DGCL may affect the ability of an “interested stockholder” to engage in certain business combinations, for a period of three years following the time that the stockholder becomes an “interested stockholder.” We have elected in our certificate of incorporation not to be subject to Section 203 of the DGCL. Nevertheless, our certificate of incorporation will contain provisions that have the same effect as Section 203 of the DGCL, except that they provide that the Sponsors and their transferees will not be deemed to be “interested stockholders,” and accordingly will not be subject to such restrictions.

These provisions may frustrate or prevent any attempts by our stockholders to replace or remove our current management by making it more difficult for stockholders to replace members of our board of directors. Because our board is responsible for appointing the members of our management team, these provisions could in turn affect any attempt to replace current members of our

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management team. As a result, you may lose your ability to sell your stock for a price in excess of the prevailing market price due to these protective measures, and efforts by stockholders to change the direction or management of the Company may be unsuccessful.

Our operating results will fluctuate from quarter to quarter and our share price may be volatile, and the market price of our common stock may drop below the price you pay.

Our quarterly operating results have fluctuated in the past and will fluctuate in the future as a publicly traded company. In addition, securities markets worldwide have experienced, and are likely to continue to experience, significant price and volume fluctuations. This market volatility, as well as general economic, market or political conditions, could subject the market price of our shares to wide price fluctuations regardless of our operating performance. You may not be able to resell your shares at or above price which you paid or at all. Our operating results and the trading price of our shares may fluctuate in response to various factors, including:

· market conditions in the broader stock market;

· actual or anticipated fluctuations in our quarterly financial and operating results;

· introduction of new products or services by us or our competitors;

· issuance of new or changed securities analysts’ reports or recommendations;

· operating results that vary from expectations of securities analysis and investors;

· guidance, if any, that we provide to the public, any changes in this guidance or our failure to meet this guidance;

· strategic actions by us or our competitors;

· announcement by us, our competitors or our vendors of significant contracts or acquisitions;

· charges to our earnings resulting from impairments of goodwill or other intangible assets;

· restructuring-related charges;

· sales, or anticipated sales, of large blocks of our stock;

· additions or departures of key personnel;

· regulatory, legal or political developments;

· public response to press releases or other public announcements by us or third parties, including our filings with the SEC;

· litigation and governmental investigations;

· changing economic conditions;

· changes in accounting principles;

· default under agreements governing our indebtedness;

· exchange rate fluctuations; and

· other events or factors, including those from natural disasters, war, actors of terrorism or responses to these events.

These and other factors, many of which are beyond our control, may cause our operating results and the market price and demand for our shares to fluctuate substantially. While we believe that operating results for any particular quarter are not necessarily a meaningful indication of future results, fluctuations in our quarterly operating results could limit or prevent investors from readily selling their shares and may otherwise negatively affect the market price and liquidity of our shares. In addition, in the past, when the market price of a stock has been volatile, holders of that stock have sometimes instituted securities class action litigation against the company that issued the stock. If any of our stockholders brought a lawsuit against us, we could incur substantial costs defending the lawsuit. Such a lawsuit could also divert the time and attention of our management from our business, which could significantly harm our profitability and reputation.

Since we have no current plans to pay regular cash dividends on our common stock, you may not receive any return on investment unless you sell your common stock for a price greater than that which you paid for it.

Although we have previously declared dividends to our stockholders, we do not anticipate paying any regular cash dividends on our common stock. Any decision to declare and pay dividends in the future will be made at the discretion of our board of directors and will depend on, among other things, our operating results, financial condition, liquidity requirements, contractual restrictions and other factors that our board of directors may deem relevant. In addition, our ability to pay dividends is, and may be, limited by covenants of existing

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and any future outstanding indebtedness we or our subsidiaries incur, including under IMS Health’s third amended and restated credit agreement, as further amended, and related security and other documents for the senior secured term loan facilities and the senior secured revolving facility (collectively, the “Senior Secured Credit Facilities”), the 4.125% Senior Notes (as defined herein) and the 6% Senior Notes (as defined herein). The Senior Secured Credit Facilities, the 4.125% Senior Notes and the 6% Senior Notes restrict IMS Health’s ability to pay dividends and make certain other distributions by imposing caps on the aggregate amount thereof as well as certain other conditions including, in some cases, financial incurrence tests, to declare and pay such dividends and distributions. Therefore, any return on investment in our common stock is solely dependent upon the appreciation of the price of our common stock on the open market, which may not occur.  

While we do not currently intend to pay dividends, weare a holding company with nominal net worth and would depend on dividends and distributions from our subsidiaries to pay any such dividends.

IMS Health Holdings, Inc. is a holding company with nominal net worth. We do not have any material assets or conduct any business operations other than our investments in our subsidiaries. Our business operations are conducted primarily out of our indirect operating subsidiary, IMS Health and its subsidiaries. As a result, notwithstanding any restrictions on payment of dividends under our existing indebtedness, our ability to pay dividends, if any, will be dependent upon cash dividends and distributions or other transfers from our subsidiaries, including from IMS Health. Payments to us by our subsidiaries will be contingent upon their respective earnings and subject to any limitations on the ability of such entities to make payments or other distributions to us.

If securities or industry analysts do not publish research or reports about our business, if they adversely change their recommendations regarding our shares or if our operating results do not meet their expectations, our share price and trading volume could decline.

The trading market for our shares will be influenced by the research and reports that industry or securities analysts publish about us or our business. We do not have any control over these analysts. If one or more of these analysts cease coverage of our company or fail to publish reports on us regularly, we could lose visibility in the financial markets, which in turn could cause our share price or trading volume to decline. Moreover, if one or more of the analysts who cover us downgrade our stock, or if our operating results do not meet their expectations, our share price could decline.

Risks Related to our Indebtedness

Our substantial level of indebtedness could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry, expose us to interest rate risk to the extent of our variable rate debt and prevent us from meeting obligations on our indebtedness.

We have a substantial amount of indebtedness. As of December 31, 2015, our total indebtedness was $4,266 million (excluding capital lease obligations), consisting of borrowings under the Senior Secured Credit Facilities, 4.125% Senior Notes and the 6% Senior Notes. As of December 31, 2015, certain of our subsidiaries have an additional $172 million of unused commitments outstanding under the revolving portion of the Senior Secured Credit Facilities (excluding outstanding letters of credit, if any). Under the Senior Secured Credit Facilities, certain of our subsidiaries have the right to request additional commitments for new term loans and to increase the size of the existing revolving credit facility so long as the senior secured first lien net leverage ratio shall be no greater than 3.75 to 1.00 after giving effect to such increases (assuming such revolving credit commitments are fully borrowed).

Our substantial level of indebtedness could adversely affect our financial condition and increase the possibility that we may be unable to generate cash sufficient to pay, when due, the principal of, interest on or other amounts due in respect of our indebtedness. Our substantial indebtedness, combined with our other existing and any future financial obligations and contractual commitments, could have important consequences. For example, it could:

· make it more difficult for us to satisfy our obligations with respect to our indebtedness, and any failure to comply with the obligations under any of our debt instruments, including restrictive covenants, could result in an event of default under the agreements governing such indebtedness;

· require us to dedicate a substantial portion of our cash flow from operations to payments on our indebtedness, thereby reducing funds available for working capital, capital expenditures, acquisitions, selling and marketing efforts, research and development and other purposes;

· increase our vulnerability to adverse economic and industry conditions, which could place us at a competitive disadvantage compared to our competitors that have relatively less indebtedness;

· cause us to incur substantial fees from time to time in connection with debt amendments or refinancings;

· increase our exposure to rising interest rates because a portion of our borrowings is at variable interest rates;

· place us at a disadvantage compared to our competitors that have less debt;

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· limit our flexibility in planning for, or reacting to, changes in our business and the industries in which we operate; and

· limit our ability to borrow additional funds, or to dispose of assets to raise funds, if needed, for working capital, capital expenditures, acquisitions, selling and marketing efforts, research and development and other corporate purposes.

Despite our level of indebtedness, we are able to incur more debt and undertake additional obligations. Incurring such debt or undertaking such additional obligations could further exacerbate the risks our indebtedness poses to our financial condition.

We, including our subsidiaries, may be able to incur significant additional indebtedness in the future. Although the credit agreement governing the Senior Secured Credit Facilities and the indentures governing the outstanding notes contain restrictions on the incurrence of additional indebtedness, these restrictions are subject to a number of significant qualifications and exceptions, and any indebtedness incurred in compliance with these restrictions could be substantial. These restrictions also will not prevent our subsidiaries from incurring obligations that do not constitute indebtedness, may be waived by certain votes of debt holders and, if our subsidiaries refinance existing indebtedness, such refinancing indebtedness may contain fewer restrictions on our subsidiaries’ activities. To the extent new indebtedness is added to our and our subsidiaries’ currently anticipated indebtedness levels, the related risks that we and our subsidiaries face could intensify.

While the credit agreement governing the Senior Secured Credit Facilities and the indentures governing IMS Health’s outstanding notes also contain restrictions on making certain loans and investments, these restrictions are subject to a number of qualifications and exceptions, and the investments incurred in compliance with these restrictions could be substantial.

Restrictions imposed in the Senior Secured Credit Facilities other outstanding indebtedness, including the indentures governing IMS Health’s outstanding notes, may limit our ability to operate our business and to finance our future operations or capital needs or to engage in other business activities.

The terms of the Senior Secured Credit Facilities restrict IMS Health and its restricted subsidiaries from engaging in specified types of transactions. These covenants restrict the ability of IMS Health and its restricted subsidiaries, among other things, to:

· incur liens;

· make investments and loans;

· incur indebtedness or guarantees;

· issue preferred stock of a restricted subsidiary;

· issue disqualified equity;

· engage in mergers, acquisitions and asset sales;

· declare dividends, make payments or redeem or repurchase equity interests;

· alter the business IMS Health and its restricted subsidiaries conduct;

· make restricted payments;

· enter into agreements limiting restricted subsidiary distributions;

· prepay, redeem or purchase certain indebtedness; and

· engage in certain transactions with affiliates.

In addition, the revolving credit facility and the new term loans under our senior secured credit facility require IMS Health to comply with a quarterly maximum senior secured net leverage ratio test and minimum interest coverage ratio test, which become more restrictive over time. IMS Health’s ability to comply with these financial covenants can be affected by events beyond our control, and IMS Health may not be able to satisfy them. Additionally, the restrictions contained in the indentures governing the outstanding notes could also limit our ability to plan for or react to market conditions, meet capital needs or make acquisitions or otherwise restrict our activities or business plans.

A breach of any of these covenants could result in a default under the Senior Secured Credit Facilities or the indentures governing the outstanding notes, which could trigger acceleration of our indebtedness and may result in the acceleration of or default under any other debt to which a cross-acceleration or cross-default provision applies, which could have a material adverse effect on our business, operations and financial results. In the event of any default under the Senior Secured Credit Facilities, the applicable lenders could elect to terminate borrowing commitments and declare all borrowings and loans outstanding, together with accrued and unpaid interest and any fees and other obligations, to be due and payable. In addition, or in the alternative, the applicable lenders could exercise their rights under the security documents entered into in connection with the Senior Secured Credit Facilities. IMS Health and the other subsidiary

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guarantors have pledged substantially all of their tangible and intangible assets (subject to customary exceptions) as collateral under the Senior Secured Credit Facilities, including the stock and the assets of certain of our current and future wholly owned U.S. subsidiaries and a portion of the stock of certain of our non-U.S. subsidiaries.

If we were unable to repay or otherwise refinance these borrowings and loans when due, the applicable lenders could proceed against the collateral granted to them to secure that indebtedness, which could force us into bankruptcy or liquidation. In the event the applicable lenders accelerate the repayment of our borrowings, we and our subsidiaries may not have sufficient assets to repay that indebtedness. Any acceleration of amounts due under the credit agreement governing the Senior Secured Credit Facilities or the exercise by the applicable lenders of their rights under the security documents would likely have a material adverse effect on us.

We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful.

Our ability to make scheduled payments on or to refinance our debt obligations and to fund our planned capital expenditures, acquisitions and other ongoing liquidity needs depends on our financial condition and operating performance, which is subject to prevailing economic and competitive conditions and to certain financial, business and other factors beyond our control. There can be no assurance that we will maintain a level of cash flows from operating activities or that future borrowings will be available to IMS Health or certain of its subsidiaries under the Senior Secured Credit Facilities or otherwise in an amount sufficient to permit us to pay the principal, premium, if any, and interest on our indebtedness and fund our planned capital expenditures, acquisitions and other ongoing liquidity needs.

If our cash flows and capital resources are insufficient to fund our debt service obligations, we may be forced to reduce or delay investments and capital expenditures, or to sell assets, seek additional capital or restructure or refinance our indebtedness. Our ability to restructure or refinance our debt will depend on the condition of the capital markets and our financial condition at such time. Any refinancing of our debt could be at higher interest rates and may require us to comply with more onerous covenants, which could further restrict our business operations. The terms of existing or future debt instruments may restrict us from adopting some of these alternatives. In addition, any failure to make payments of interest and principal on our outstanding indebtedness on a timely basis would likely result in a reduction of our credit rating, which could harm our ability to incur additional indebtedness. In the absence of such operating results and resources, we could face substantial liquidity problems and might be required to dispose of material assets or operations to meet our debt service and other obligations. The Senior Secured Credit Facilities and the indentures governing the outstanding notes restrict the ability of IMS Health and its restricted subsidiaries to dispose of assets and use the proceeds from any such disposition. We may not be able to consummate those dispositions or to obtain the proceeds that we could realize from them and these proceeds may not be adequate to meet any debt service obligations then due. These alternative measures may not be successful and may not permit us to meet our debt service obligations.

A ratings downgrade or other negative action by a ratings organization could adversely affect the trading price of the shares of our common stock.

Credit rating agencies continually revise their ratings for companies they follow. The condition of the financial and credit markets and prevailing interest rates have fluctuated in the past and are likely to fluctuate in the future. In addition, developments in our business and operations could lead to a ratings downgrade for us or our subsidiaries. Any such fluctuation in the rating of us or our subsidiaries may impact our ability to access debt markets in the future or increase our cost of future debt which could have a material adverse effect on our operations and financial condition, which in return may adversely affect the trading price of shares of our common stock.

Item 1B. Unresolved Staff Comments

Not applicable.

Item 2. Properties

Our executive offices are located at 83 Wooster Heights Road, Danbury, Connecticut in a leased property (approximately 12,000 square feet).

Our property is geographically distributed to meet our sales and operating requirements worldwide. Our properties and equipment are generally considered to be both suitable and adequate to meet current operating requirements and virtually all space is being utilized.

As of the date of this report, we own one property in Buenos Aires, Argentina (approximately 12,000 square feet); one property in Caracas, Venezuela (approximately 8,800 square feet); two properties in Los Ruices, Venezuela (approximately 9,000 square feet); one property in Lisbon, Portugal (approximately 10,000 square feet); and one property in Bangalore, India (approximately 374,000

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square feet). Our operations are also conducted from 40 leased offices located throughout the United States and 158 leased offices in non-U.S. locations.

Item 3. Legal Proceedings

As a company operating in more than 100 countries, we are involved in a variety of legal and tax proceedings, claims and litigation that arise from time to time in the ordinary course of business. These actions may be commenced by various parties, including competitors, clients, current or former employees, government agencies or others. We record a provision with respect to a proceeding, claim or litigation when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. However, even in instances where we have recorded an estimated liability, we are unable to predict with certainty the final outcome of the matter or whether resolution of the matter will materially affect our operating results, financial position or cash flows. As additional information becomes available, we adjust our assessment and estimates of such liabilities accordingly.

Further, we routinely enter into agreements with our suppliers to acquire data and with our clients to sell data, all in the normal course of business. In these agreements, we sometimes agree to indemnify and hold harmless the other party for any damages such other party may suffer as a result of potential intellectual property infringement and other claims related to the use of the data. We have not accrued liability with respect to these matters, as the exposure is considered remote.

Based on our review of the latest information available, management does not expect the impact of pending legal and tax proceedings, claims and litigation, either individually or in the aggregate, to have a material adverse effect on our operating results, financial position or cash flows. However, one or more unfavorable outcomes in any claim or litigation against us could have a material adverse effect for the period in which it is resolved. The following is a summary of the more significant legal matters involving the company.

On June 5, 2009, Associacao Nacional de Farmacias (“ANF”) and Farminveste – Investimentos, Participacoes e Gestuo, S.A. (“Farminveste”) filed claims against IMS Health Portugal, Lda. (“IMS Portugal”) for breaching a 2008 agreement among the parties for approximately €21 million. IMS Portugal counterclaimed against ANF and Farminveste for approximately €19 million for damages and loss. In 2015, the claims brought by ANF were finally adjudicated in our favor. In December 2015, €17.1 million of the €18.3 million funds seized in connection with ANF’s claims pursuant to certain legal requirements were returned to IMS Portugal. IMS Portugal is still asserting the damages claim against ANF and expects to receive the remaining €1.2 million of seized funds during the course of 2016.

On July 24, 2013, Symphony Health Solutions and two of its subsidiaries (collectively “Symphony”) filed a lawsuit in the U.S. District Court for the Eastern District of Pennsylvania against IMS Health alleging anticompetitive business practices in violation of the Sherman Antitrust Act and Pennsylvania state law. IMS Health asserted various counterclaims in that lawsuit. On December 20, 2013, IMS Health filed a lawsuit in the U.S. District Court for the District of Delaware against Symphony for infringement of three patents seeking injunctive relief and damages. In late 2015, the Company and Symphony entered into a settlement agreement whereby each of the parties agreed to terminate their respective lawsuits, and these lawsuits were dismissed with prejudice in January, 2016.

Our wholly-owned subsidiary, IMS Government Solutions Inc., is primarily engaged in providing services and products under contracts with the U.S. government. U.S. government contracts are subject to extensive legal and regulatory requirements and, from time to time, agencies of the U.S. government have the ability to investigate whether contractors’ operations are being conducted in accordance with such requirements. IMS Government Solutions discovered potential noncompliance with various contract clauses and requirements under its General Services Administration Contract (the “GSA Contract”) which was awarded in 2002 to its predecessor company, Synchronous Knowledge Inc. (Synchronous Knowledge Inc. was acquired by IMS Health in May 2005). The potential noncompliance arose from three primary areas: first, at the direction of the government, work performed under one task order was invoiced under another task order without the appropriate modifications to the orders being made; second, personnel who did not meet strict compliance with the labor categories component of the qualification requirements of the GSA Contract were assigned to contracts; and third, certain discounts that were given to commercial customers were not also offered to the government, in alleged violation of the GSA Contract’s Price Reductions Clause. Upon discovery of the potential noncompliance, we began remediation efforts, promptly disclosed the potential noncompliance to the U.S. government, and were accepted into the Department of Defense Voluntary Disclosure Program. We filed a Voluntary Disclosure Program Report on August 29, 2008. In September 2014, the General Services Administration offered to settle the third matter described above (i.e., the Price Reductions Clause aspect of the Disclosure Report) for $1.5 million, in-line with the amount we had recorded for this area of potential noncompliance. On April 23, 2015, we executed the settlement agreement with the government and made the $1.5 million payment. We are currently unable to determine the outcome of all of these matters pending the resolution of the Voluntary Disclosure Program process and the ultimate liability arising from these matters could exceed its current reserves.

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On February 13, 2014, a group of approximately 1,200 medical doctors and 900 private individuals filed a civil lawsuit with the Seoul Central District Court against IMS Korea and two other defendants, KPA and the Korean Pharmaceutical Information Center (“KPIC”). The civil lawsuit alleges KPA and KPIC collected their personal information in violation of applicable privacy laws without the necessary consent through a software system installed on pharmacy computer systems in Korea, and that personal information was transferred to IMS Korea and sold to pharmaceutical companies. The plaintiffs are claiming damages in the aggregate amount of approximately $6 million plus interest. We believe the lawsuit is without merit, reject plaintiffs’ claims and intend to vigorously defend our position.

On July 23, 2015, indictments were issued by the Seoul Central District Prosecutors’ Office in South Korea against 24 individuals and companies alleging improper handling of sensitive health information in violation of, among others, South Korea’s Personal Information Protection Act. IMS Korea and two of its employees were among the individuals and organizations indicted. Although there is no assertion that IMS Korea used patient identified health information in any of its offerings, prosecutors allege that certain of IMS Korea’s data suppliers should have obtained patient consent when they converted sensitive patient information into non-identified data and that IMS Korea had not taken adequate precautions to reduce the risk of re-identification. We believe the indictment is without merit, that we acted in compliance with all applicable laws at all times and intend to vigorously defend our position.

For additional information, see Note 13 to our Consolidated Financial Statements for the year ended December 31, 2015 included elsewhere in this report and “Risk factors—Risks Related to our Business—Litigation or regulatory proceedings could have a material adverse effect on our operating results and financial condition.”

Item 4. Mine Safety Disclosures

Not applicable.

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Part II

Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Market and Stockholder Information

On April 4, 2014, our common stock began trading on The New York Stock Exchange under the symbol “IMS”. Prior to that time, there was no public market for our common stock. At February 10, 2016, there were approximately 39 holders of record of our common stock. This number does not include beneficial owners for whom shares are held by nominees in street name. Our board of directors declared a cash dividend on our common stock of $2.60 per share in 2013. Our board of directors did not pay a dividend on our common stock in 2015 or 2014 and does not currently intend to pay dividends on our common stock in the foreseeable future. However, we expect to reevaluate our dividend policy on a regular basis and may, subject to compliance with the covenants contained in our credit facilities and other considerations, determine to pay dividends in the future. The declaration, amount and payment of any future dividends on shares of our common stock will be at the sole discretion of our board of directors, which may take into account general and economic conditions, our financial condition and results of operations, our available cash and current and anticipated cash needs, capital requirements, contractual, legal, tax and regulatory restrictions, the implications of the payment of dividends by us to our stockholders or by our subsidiaries to us, and any other factors that our board of directors may deem relevant. High and low market prices of our common stock are listed below.

Year ended December 31,		High	Low
2015
First quarter	$	27.18	$	24.47
Second quarter		32.18		26.68
Third quarter		33.51		27.05
Fourth quarter		31.59		25.22
2014
Second quarter (from April 4 on)	$	26.56	$	21.63
Third quarter		28.48		25.23
Fourth quarter		26.68		23.58

Purchases of Equity Securities by the Issuer

Period	Total Number of Shares Purchased		Average Price Paid per Share	Total Number of Shares Purchased Under Publicly Announced Programs		Maximum Dollar Value of Shares that May Yet Be Purchased Under the Programs(1)
	(in millions, except per share data)
October 1, 2015 –    October 31, 2015	—	$	—	—	$	—
November 1, 2015 –    November 30, 2015	—		—	—		—
December 1, 2015 –    December 31, 2015	0.67		25.70	0.67		232.8
Total	0.67	$	25.70	0.67	$	232.8

⁽¹⁾ On December 16, 2015, the Board of Directors approved a $250 million common stock repurchase authorization. The repurchase authorization does not have a specified expiration date but can be modified, suspended or discontinued at any time. See Note 9 to our Consolidated Financial Statements for further details.

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Performance Graph

The following graph shows a comparison from the close of market April 4, 2014 (the date our common stock commenced trading on the NYSE) through December 31, 2015 of the cumulative total return for our common stock, the Standard & Poor’s 500 Stock Index (“S&P 500”) and a select peer group. The peer group consists of Cerner Corporation, Covance Inc., The Dun & Bradstreet Corporation, Equifax Inc., Experian plc, FactSet Research Systems Inc., IHS Inc., Gartner, Inc., Moody’s Corporation, McGraw Hill Financial, Inc., MSCI Inc., Nielsen N.V., Quintiles Transnational Holdings Inc., Reed Elsevier N.V., Solera Holdings, Inc., Thomson Reuters Corporation, Verisk Analytics, Inc. and Wolters Kluwer N.V. The companies in our peer group are publicly traded information services or information technology companies, and thus share similar business model characteristics to IMS, or provide services to similar customers as IMS. Many of these companies are also used by our compensation committee for purposes of compensation benchmarking.

The graph assumes that $100 was invested in IMS Health, the S&P 500 and the peer group as of the close of market on April 4, 2014, assumes the reinvestments of dividends, if any.

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Item 6. Selected Financial Data

The following tables set forth our selected historical and quarterly consolidated financial data. During the periods presented, we made a number of acquisitions, including the acquisition of certain businesses of Cegedim, SA in April 2015, and have included the results of operations of the acquired businesses from the date of acquisition. As a result, our period to period results of operations vary depending on the dates and sizes of the acquisitions. Accordingly, this selected financial data is not necessarily comparable or indicative of our future results. You should read this selected consolidated financial data in conjunction with our audited Consolidated Financial Statements and related footnotes included elsewhere in this report.

	As of or For the Years Ended December 31,
(in millions, except per share data)	2015 (2)		2014			2013		2012			2011
Results of Operations:
Revenue	$	2,921	$	2,641		$	2,544	$	2,443		$	2,364
Information		1,483		1,515			1,525		1,521			1,532
Technology services		1,438		1,126			1,019		922			832
Operating income (1)		364		208			354		239			219
Net income (loss)		417		(189	)		82		(42	)		111
Per Share Information:
Earnings (loss) per share attributable to    common shareholders:
Basic	$	1.26	$	(0.59	)	$	0.29	$	(0.15	)	$	0.40
Diluted		1.23		(0.59	)		0.29		(0.15	)		0.40
Dividends declared per common share		-		-			2.60		4.20			-
Balance Sheet Data:
Total assets	$	7,459	$	7,096		$	7,908	$	8,118		$	8,296
Total long-term liabilities		4,854		4,769			6,093		5,592			4,532
Shareholders’ equity		1,572		1,542			883		1,683			2,971

⁽¹⁾ Operating income for the years ended December 31, 2015, 2014, 2013, 2012 and 2011 included severance, impairment and other charges of $88, $33, $16, $48 and $31, respectively, and merger costs of $-, $-, $-, $2 and $23, respectively. Additionally, Operating income for 2014 included a fee to terminate our management services agreement of $72 million and non-executive phantom stock appreciation rights compensation expense of $30 million, both of which related to our Initial Public Offering. Refer to the Notes to Consolidated Financial Statements for the year ended December 31, 2015, which are included elsewhere in this report, for additional information regarding significant items impacting the Consolidated Statements of Comprehensive Income (Loss) during the three years ended December 31, 2015.

⁽²⁾ Net income and related per share information for the year ended December 31, 2015 reflected a reversal of a previously established deferred tax liability of $256 million. Refer to Note 11 to Consolidated Financial Statements for the year ended December 31, 2015, which are included elsewhere in this report, for additional information.

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Selected Quarterly Financial Data

(in millions, except per share data)	First Quarter (3)			Second Quarter			Third Quarter		Fourth Quarter		Year
2015
Revenue	$	632		$	742		$	735	$	812	$	2,921
Information		354			374			373		382		1,483
Technology services		278			368			362		430		1,438
Operating income (1)		91			96			89		88		364
Net income		298			47			43		29		417
Earnings per share attributable    to common shareholders:
Basic	$	0.89		$	0.14		$	0.13	$	0.09	$	1.26
Diluted		0.86			0.14			0.13		0.09		1.23
2014
Revenue	$	645		$	662		$	656	$	678	$	2,641
Information		381			386			382		366		1,515
Technology services		264			276			274		312		1,126
Operating income (2)		67			(39	)		93		87		208
Net (loss) income		(24	)		(220	)		47		8		(189	)
(Loss) earnings per share attributable    to common shareholders:
Basic	$	(0.09	)	$	(0.67	)	$	0.14	$	0.03	$	(0.59	)
Diluted		(0.09	)		(0.67	)		0.14		0.03		(0.59	)

⁽¹⁾ Operating income for the year ended December 31, 2015 included severance, impairment and other charges of $13, $21 million, $16 million and $38 million in the first, second, third and fourth quarter of 2015, respectively.

⁽²⁾ Operating income (loss) for the year ended December 31, 2014 included severance, impairment and other charges of $25 million, $4 million and $4 million in the second, third and fourth quarter of 2014, respectively. Additionally, Operating loss for the second quarter of 2014 included a fee to terminate our management services agreement of $72 million and non-executive phantom stock appreciation rights compensation expense of $30 million, both of which related to our Initial Public Offering.

⁽³⁾ Net income and related per share information for the first quarter ended March 31, 2015 reflected a reversal of a previously established deferred tax liability of $256 million. Refer to Note 11 to Consolidated Financial Statements for the year ended December 31, 2015, which are included elsewhere in this report, for additional information.

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This discussion and analysis should be read in conjunction with the accompanying audited Consolidated Financial Statements and the notes thereto. This discussion and analysis includes forward-looking statements that involve risks and uncertainties. You should read the “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” sections of this Annual Report on Form 10-K (“Report”) for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. The terms “Company,” “IMS,” “we,” “our” or “us,” as used herein, refer to IMS Health Holdings, Inc. and its consolidated subsidiaries unless otherwise stated or indicated by context. Amounts presented may not add due to rounding.

Background

We are a leading global information and technology services company providing clients in the healthcare industry with comprehensive solutions to measure and improve their performance. We have one of the largest and most comprehensive collections of healthcare information in the world, spanning sales, prescription and promotional data, medical claims, electronic medical records and social media. We standardize, organize, structure and integrate this data by applying our sophisticated analytics and leveraging our global technology infrastructure to help our clients run their organizations more efficiently and make better decisions to improve their operational and financial performance. We have a presence in over 100 countries and we generated 61% of our 2015 revenue from outside the United States.

We serve key healthcare organizations and decision makers around the world, spanning the breadth of life science companies, including pharmaceutical, biotechnology, consumer health and medical device manufacturers, as well as distributors, providers, payers, government agencies, policymakers, researchers and the financial community. Our information and technology services offerings, which we have developed with significant investment over our 60+ year history, are deeply integrated into our clients’ workflow.

On October 23, 2009, we were formed as Healthcare Technology Holdings, Inc. by investment entities affiliated with TPG Global, LLC, CPP Investment Board Private Holdings Inc. and Leonard Green & Partners, L.P (collectively, the “Sponsors”). In December 2013, we changed our name to IMS Health Holdings, Inc. On February 26, 2010, we acquired 100% of the outstanding shares of IMS Health Incorporated (“IMS Health”) through our wholly owned subsidiary Healthcare Technology Acquisition, Inc. (the “Merger”). We were formed for the purpose of consummating the Merger with IMS Health and had no operations from inception other than its investment in IMS Health and its subsidiaries and costs incurred associated with its formation and the Merger. In April 2014, we completed our Initial Public Offering (“IPO”) on the New York Stock Exchange.

Outlook

The primary factors we expect to impact our results of operations in the near future are set forth below.

· We believe that we have opportunities to continue to grow revenue from our information offerings and technology services offerings. Revenue from technology services offerings has grown faster than our information offerings over the past three years and we expect this trend to continue due to our clients need for improved efficiency, focus on cost reduction through outsourcing and standardizing processes, and increased demand for evidence-based outcomes, along with investments we have made in technology service offerings and the respective size of the untapped addressable market. We believe the integration of our information offerings and our technology services offerings enables a differentiated value proposition for a client base in need of better solutions. We are in the early stages of penetrating this expanding opportunity we see within our global client base for our integrated offerings.

· We expect to continue to make investments to drive growth, including new sources of information, such as specialty data and resources to support continued double-digit growth in our technology services offerings.  

· We also expect to benefit from growth in emerging markets, where we believe healthcare spending will continue to grow over the next five years. Emerging markets currently represent 16% of our total revenue and have grown at about a 13% constant currency compound annual growth rate since 2010. We expect that revenue from these markets will grow at a faster rate than from our developed markets.

· We will also seek to grow through selective acquisitions in both existing markets and new markets that exhibit positive long-term fundamentals. Since the beginning of 2011, we have invested approximately $1.2 billion in 42 acquisitions. As the global healthcare landscape evolves, we expect that there will be a growing number of acquisition opportunities across the life sciences, payer and provider sectors. We will continue to invest in strategic acquisitions to grow our platform and enhance our ability to provide more products and services to our clients and will seek opportunities primarily in the areas of technological platforms, data suppliers and services providers.

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· We also expect to continue our cost reduction activities by improving our operating efficiency by streamlining our organization, deploying lean methodologies throughout our global operations, and standardizing and automating processes.

Acquisitions

We completed numerous acquisitions during 2015, 2014 and 2013 to enhance our capabilities and offerings in certain areas, including technology services.

On April 1, 2015, we completed the acquisition of certain customer relationship management (“CRM”) and strategic data businesses of Cegedim, SA (“Cegedim” and the “Cegedim acquisition”) at a price of €385 million plus an initial working capital adjustment of €11 million (or $426 million). In December 2015, we made a payment of €17 million, or approximately $19 million, to Cegedim, SA for an additional working capital adjustment, as part of the purchase agreement, bringing the purchase price to approximately $445 million. The acquisition included Cegedim’s (i) CRM solutions that help life sciences clients drive sales effectiveness, optimize marketing programs across multiple channels and mitigate regulatory compliance risks; (ii) OneKey Reference Database that provides insights on healthcare professionals across the globe; and (iii) information solutions that use primary market research. The acquisition was financed through a combination of existing cash and net proceeds from our 4.125% senior unsecured notes issued in March 2015 (the “4.125% Senior Notes”). We believe that the acquisition further enhances our software development, data warehousing, mobile applications and business intelligence tools, as well as analytics and implementation services.  

Additionally, during 2015, we completed fourteen unrelated individually immaterial acquisitions, four of which occurred in the fourth quarter of 2015. The total cost of these acquisitions, net of cash acquired, was approximately $201 million. The purchase price allocations for some of these acquisitions will be finalized after the completion of the valuation of certain intangible assets and any adjustments to the preliminary purchase price allocations are not expected to have a material impact on our results of operations.

During 2014, we acquired, at a total cost of approximately $61 million, five unrelated individually immaterial businesses. During 2013, we acquired, at a total cost of approximately $168 million, ten unrelated individually immaterial businesses.

See Note 3 to our Consolidated Financial Statements for additional information with respect to these acquisitions. The results of operations of acquired businesses have been included since the date of acquisition and, apart from the Cegedim acquisition, were not significant to our Consolidated Results of Operations.

Sources of Revenue

Revenue is generated in each region through our local sales teams that manage client relationships within each region, reporting locally to country managers and up to regional managers. These sales teams go to market locally with our full suite of information and technology services offerings. Our top 1,000 clients accounted for over 93% of our total revenue in each of the last three fiscal years. Total global 2015 revenue from our information offerings represented 51% of our total revenue and included primarily revenue we earned from various information offerings developed to meet our clients’ needs by using data secured from a worldwide network of suppliers. From 2011 to 2015, the retention rate for our top 1,000 clients purchasing information offerings was 99% and these clients accounted for over 90% of our information revenue in each of the last three fiscal years. In addition, approximately 90% of our information revenue in each of the last three fiscal years came from subscription or license-based contracts. As a result, historically our information revenue has been recurring and predictable. Total global 2015 revenue from our technology services offerings represented 49% of our total revenue. Revenue from technology services consists of a mix of revenue from small and large-scale services and consulting projects, multi-year outsourcing contracts and Software-as-a-Service (“SaaS”) licenses. Our information and technology services offerings complement each other and can provide enhanced value to our clients when delivered in an integrated fashion, with each driving demand for the other.

Costs and Expenses

Our costs and expenses are comprised primarily of direct costs of revenue and selling and administrative expenses.

Our costs of revenue consist of operating costs of information and direct and incremental costs of technology services. Operating costs of our information offerings include costs attributable to personnel involved in production, data management and delivery, and the costs of acquiring and processing data for our information offerings. Our direct and incremental costs of our technology services offerings are comprised of 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. Direct and incremental costs of technology services do not include an allocation of direct costs of data that are included in operating costs of information as we do not have a meaningful way to allocate direct costs of data between information and technology services revenue. As a result, direct and incremental costs of technology services do not reflect the total costs incurred to deliver our technology services offerings.

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Selling and administrative expenses consist primarily of expenses attributable to sales, marketing, and administration, including human resources, legal, finance and general management.

Results excluding the Effects of Foreign Currency Translation and Certain Charges

We report results in U.S. Dollars, but we do business on a global basis. Exchange rate fluctuations affect the U.S. Dollar value of foreign currency revenue and expenses and may have a significant effect on our results. The discussion of our financial results in this Report includes comparisons with the prior year in constant currency terms, using consistent exchange rates. We believe this information facilitates comparison of the underlying results over time. During 2015, the U.S. Dollar was generally stronger against the other currencies in which we transact business as compared to 2014. The revenue growth at actual currency rates was lower than the growth at constant currency exchange rates. See “—How Exchange Rates Affect our Results” and “—Quantitative and Qualitative Disclosures about Market Risk” below for a more complete discussion regarding the impact of foreign currency translation on our business.

We also discuss below our revenue, operating income, operating costs of information, direct and incremental costs of technology services, selling and administrative expenses and operating margins excluding stock-based compensation charges, acquisition-related charges, restructuring and related charges, purchase accounting adjustments, non-executive Phantom SARs compensation expense and sponsor monitoring fees as a supplement to our results presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). We believe providing these non-GAAP measures is useful as it facilitates comparisons across the periods presented and more clearly indicates trends. Management uses these non-GAAP measures in its global decision making, including developing budgets and managing expenditures.

Initial Public Offering

In April 2014, we completed our IPO of our common stock and raised net proceeds of approximately $987 million, after deducting underwriting discounts, commissions and related expenses totaling $53 million. Substantially all of our net proceeds of the IPO, approximately $500 million of borrowings under new term loans, $140 million of borrowings under our revolving credit facility and approximately $400 million of cash on the balance sheet were used to (i) fund the redemption of our 12.5% Senior Notes and Senior PIK Notes (defined in the Debt section below) and pay related fees and expenses, (ii) pay $30 million in the aggregate to holders of outstanding cash settled stock appreciation rights (“Phantom SARs”) granted under our 2010 Equity Incentive Plan and (iii) pay a one-time fee of $72 million to terminate our management services agreement with the Sponsors.

Results of Operations

Summary of Results

	Years Ended December 31,
(in millions)	2015			2014			2013
Revenue	$	2,921		$	2,641		$	2,544
Information		1,483			1,515			1,525
Technology services		1,438			1,126			1,019
Operating costs of information, exclusive of depreciation and amortization		666			665			648
Direct and incremental costs of technology services, exclusive of   depreciation and amortization		750			573			520
Selling and administrative expenses, exclusive of depreciation and   amortization		712			721			596
Depreciation and amortization		341			441			410
Severance, impairment and other charges		88			33			16
Operating Income		364			208			354
Interest income		3			4			4
Interest expense		(169	)		(221	)		(332	)
Other income (loss), net		19			(276	)		(74	)
Non-Operating Loss, Net		(147	)		(493	)		(402	)
Income (loss) before income taxes		217			(285	)		(48	)
Benefit from income taxes		200			96			130
Net Income (Loss)	$	417		$	(189	)	$	82

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Net Income (Loss) to Adjusted EBITDA Reconciliation

We have included a presentation of Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) because we believe it provides additional information regarding our performance and our ability to service our debt. In addition, management believes that Adjusted EBITDA is useful to facilitate operating performance comparisons from period to period by excluding certain non-cash items, such as the impact of depreciation and amortization and the impact of stock-based compensation related charges, and certain variable charges, such as acquisition-related expenses and restructuring charges. Because Adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we also use this metric for business planning purposes and in evaluating business opportunities. In addition, management believes Adjusted EBITDA and similar measures are widely used by investors, securities analysts, ratings agencies and other parties in evaluating peer companies as a measure of financial performance and debt-service capabilities.

Adjusted EBITDA is not presented in accordance with U.S. GAAP, and our computation of Adjusted EBITDA may vary from those used by other companies. In evaluating Adjusted EBITDA, you should be aware that in the future we will likely incur expenses similar to some of the adjustments in this presentation. The presentation of Adjusted EBITDA should not be construed as indicating that our future results will be unaffected by these expenses or by any unusual or non-recurring items. Adjusted EBITDA should not be considered as an alternative to net income or loss, operating income or loss, cash flows from operating activities or any other measures of operating performance, liquidity or indebtedness derived in accordance with U.S. GAAP. Adjusted EBITDA has limitations as an analytical tool, and it should not be considered in isolation, or as a substitute for analysis of our results as reported under U.S. GAAP.

	Years Ended December 31,
(in millions)	2015			2014			2013
Net Income (Loss)	$	417		$	(189	)	$	82
Benefit from income taxes		(200	)		(96	)		(130	)
Other (income) loss, net		(19	)		276			74
Interest expense		169			221			332
Interest income		(3	)		(4	)		(4	)
Depreciation and amortization		341			441			410
Deferred revenue purchase accounting adjustments		10			4			2
Stock-based compensation related charges(1)		28			58			22
Restructuring and related charges(2)		91			39			23
Acquisition-related charges(3)		51			24			10
Sponsor monitoring fees(4)		—			74			8
Non-executive phantom SARs compensation expenses(5)		—			30			—
Secondary offering expenses		1			—			—
Adjusted EBITDA	$	886		$	878		$	829

⁽¹⁾ Stock-based compensation charges are included in Operating costs of information, Direct and incremental costs of technology services and Selling and administrative expenses as follows:

	Years Ended December 31,
(in millions)	2015		2014		2013
Operating costs of information, exclusive of depreciation and   amortization	$	2	$	6	$	3
Direct and incremental costs of technology services, exclusive of   depreciation and amortization		2		5		2
Selling and administrative expenses, exclusive of depreciation   and amortization		24		47		17

⁽²⁾ Restructuring and related charges includes severance and impairment charges and the cost of employee and third-party charges related to dual running costs for knowledge transfer activities. Dual running costs for knowledge transfer activities were $3 million, $6 million and $6 million for the years ended December 31, 2015, 2014 and 2013, respectively. In 2015, these costs were included primarily in Operating costs of information and Selling and administrative expenses. In 2014 and 2013, these costs were included primarily in Operating costs of information.

⁽³⁾ Acquisition-related charges are included primarily in Selling and administrative expenses.

⁽⁴⁾ We had a management services agreement with affiliates of certain of our shareholders, which was terminated in conjunction with our IPO. We refer to the fees paid under this management services agreement, including the termination settlement, as sponsor monitoring fees. See Note 15 to our Consolidated Financial Statements for further information. Sponsor monitoring fees are included in Selling and administrative expenses.

⁽⁵⁾ Non-executive phantom SARs compensation expenses of $10 million and $20 million for the year ended December 31, 2014 are included in Operating costs of information and Selling and administrative expenses, respectively.

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Revenue

Total revenue increased 10.6% to $2,921 million for the year ended December 31, 2015 compared to $2,641 million in the prior year, and grew 21.0% on a constant currency basis, as the U.S. Dollar strengthened against most other currencies in which we transact business. The strengthening of the U.S. Dollar compared to the Euro was responsible for approximately half of the foreign exchange impact. Revenue from our information offerings decreased 2.1% and grew 8.4% on a constant currency basis in 2015. Revenue from our technology services offerings increased 27.7% and grew 37.7% on a constant currency basis in 2015. Constant currency growth in the Americas and EMEA (Europe, the Middle East, Africa, India, Sri Lanka and Bangladesh) regions contributed approximately 90% of our total revenue growth during 2015 compared to 2014. The constant currency increase in information offerings revenue primarily resulted from the Cegedim acquisition and growth in the EMEA region. The constant currency increase in technology services revenue primarily resulted from the Cegedim acquisition and growth in all offerings, led by technology and applications and real world evidence offerings in the United States and EMEA.

Revenue for 2015 included $346 million related to the Cegedim acquisition. Excluding the impact of the Cegedim acquisition, revenue decreased 2.6% in 2015 and increased 5.8% on a constant currency basis compared to 2014. Also excluding the Cegedim acquisition, information offerings revenue declined 8.2% and increased 1.4% on a constant currency basis, while technology services revenue increased 5.1% and 11.7% on a constant currency basis in 2015 compared to the prior year.

Total revenue grew 3.8% to $2,641 million in 2014 compared to $2,544 million in 2013, or 5.9% on a constant currency basis. Revenue from our information offerings decreased 0.7%, or grew 1.7% on a constant currency basis in 2014. Revenue from our technology services offerings grew 10.6% and grew 12.3% on a constant currency basis in 2014. Constant currency growth in the Americas and EMEA regions contributed approximately 90% of our total revenue growth during 2014 compared to 2013. The constant currency increase in information offerings was driven by growth in almost all our geographies, with the largest contribution coming from EMEA. The constant currency increase in technology services offerings was primarily driven by increases in technology and applications, workflow analytics and real-world evidence in the Americas and EMEA.

Operating Costs of Information, exclusive of Depreciation and Amortization

Operating costs of information offerings remained relatively flat in 2015 compared to 2014. Included in Operating costs of information for 2014 was $10 million of non-executive Phantom SARs compensation expense. Excluding the favorable effect of foreign currency translation of $58 million, non-executive Phantom SARs compensation expense, stock-based compensation related charges and restructuring and related charges, operating costs of information increased 11.9% in 2015 compared to 2014. The constant currency increase in operating costs of information was primarily due to an increase in data costs as we continue to invest in new data sources and higher compensation costs of approximately $36 million, the latter due largely to the Cegedim acquisition.

Operating costs of information offerings increased $17 million, or 2.5%, in 2014 compared to 2013. Excluding the effect of foreign currency translation of negative $10 million, non-executive Phantom SARs compensation expense of $10 million, stock-based compensation charges and restructuring and related charges, operating costs of information increased 2.1% in 2014 compared to 2013. The constant currency increase in operating costs of information was primarily due to an increase in data costs of approximately $13 million as we continue to invest in new data sources and compensation costs of $8 million, with the latter in part due to an increase in headcount of approximately 140 employees from December 2013. This increase was partially offset by lower professional fees and information technology expense of approximately $3 million each.

Direct and Incremental Costs of Technology Services, exclusive of Depreciation and Amortization

Direct and incremental costs of technology services offerings grew $177 million, or 30.9%, in 2015 compared to 2014. Excluding the favorable effect of foreign currency translation of $63 million, as well as stock-based compensation related charges and restructuring and related charges, direct and incremental costs of technology services grew 42.6% in 2015 compared to 2014. The constant currency increase in direct and incremental costs of technology services was driven primarily by increased compensation costs of $142 million, largely due to Cegedim acquisition and to support the growth in our technology services offerings. Additionally, increases in consulting and professional fees of approximately $40 million and data costs directly related to technology services, both largely due to the Cegedim acquisition, contributed to the growth as compared to 2014.

Direct and incremental costs of technology services offerings grew $53 million, or 10.3%, in 2014 compared to 2013. Excluding the effect of foreign currency translation of negative $7 million and stock-based compensation charges, direct and incremental costs of technology services grew 11.0% in 2014 compared to 2013. The constant currency increase in direct and incremental costs of technology services was driven primarily by increased compensation costs of approximately $44 million due to an increase in headcount of approximately 350 employees from December 2013 to support the growth in our technology services offerings and normal annual merit salary increases. Additionally, data costs and professional fees increased by approximately $8 million and $6 million, respectively, compared to 2013.

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Selling and Administrative Expenses, exclusive of Depreciation and Amortization

Selling and administrative expenses decreased $9 million, or 1.3%, in 2015 compared to 2014. Included in Selling and administrative expenses for 2014 was $72 million related to the termination of the management services agreement with affiliates of the Sponsors and $20 million of non-executive Phantom SARs compensation expense. Excluding the favorable effect of foreign currency translation of $63 million, as well as sponsor monitoring fees, non-executive Phantom SARs compensation expense, stock-based compensation related charges, restructuring and related charges and acquisition-related charges, selling and administrative expenses grew 25.9% in 2015 compared to 2014. Selling and administrative expenses in constant currency reflected higher compensation expense of approximately $111 million and occupancy expense of approximately $23 million compared to 2014, both of which were largely due to the Cegedim acquisition.

Selling and administrative expenses grew $125 million, or 21.0%, in 2014 compared to 2013. Included in Selling and administrative expenses for 2014 was $72 million related to the termination of the management services agreement with affiliates of the Sponsors and $20 million of non-executive Phantom SARs compensation expense. Excluding the effect of foreign currency translation of negative $7 million, sponsor monitoring fees, non-executive Phantom SARs compensation expense, stock-based compensation charges and acquisition-related charges, selling and administrative expenses increased 0.5% in 2014 compared to 2013. The constant currency increase in selling and administrative expenses primarily resulted from an increase in compensation of approximately $34 million, primarily resulting from normal annual merit salary increases, higher selling and administrative headcount of approximately 240 employees from December 2013 from acquisitions and increased staff to drive software development and revenue and an increase in legal fees of $7 million, partially offset by lower consulting expense of approximately $14 million, higher deferrals to computer software for new product development and a decrease in the fair value estimate of our contingent consideration liability. Additionally, both occupancy and information technology costs increased by approximately $6 million each, related to the increased number of employees.

Depreciation and Amortization

Depreciation and amortization expense decreased $100 million, or 22.6%, in 2015 compared to 2014. The decrease was primarily due to certain intangible assets recorded in connection with the merger transaction completed in 2010 that became fully amortized during the first quarter of 2015, partially offset by additional depreciation and amortization expense related to the Cegedim acquisition of approximately $24 million in 2015.

Depreciation and amortization expense increased $31 million, or 7.6%, in 2014 compared to 2013. The increase was primarily due to higher capital expenditures and additions to deferred software, in part due to expenditures for our new global delivery center in Bangalore, India, as well as increased investment for future growth.

Severance, Impairment and Other Charges

Severance, impairment and other charges in 2015 were primarily comprised of $76 million of severance, $9 million for the write-off of the value of computer software that was no longer in use and $3 million for contract-related charges for which the Company will not realize any future economic benefits.

Severance, impairment and other charges in 2014 were $33 million. The 2014 charge was primarily comprised of $22 million of severance, $8 million for impaired leases for properties in the U.S. and $3 million for the write-down of certain assets and contract-related charges for which we will not realize any future economic benefits.

Severance, impairment and other charges in 2013 were $16 million, comprised of $12 million of severance and $3 million for an impaired lease for a property in the U.S., both of which were recorded in the fourth quarter of 2013, and $4 million related to impaired leases for properties in the U.S. and $3 million for contract-related charges for which we will not realize any future economic benefits. These charges were partially offset by the reversal of approximately $6 million of severance accruals for terminations recorded in 2012 due to the favorable settlement of required termination benefits and strategic business changes.

See “Severance, Impairment and Other Charges” below for further information.

Operating Income

Operating income was $364 million in 2015, an increase of $156 million compared to 2014. Included in operating income for 2014 was $72 million related to the termination of a management services agreement with affiliates of the Sponsors and $30 million of non-executive Phantom SARs compensation expense. Operating income for 2015 increased $216 million in constant currency terms compared to 2014. Absent the impact of stock-based compensation related charges, acquisition-related charges, restructuring and related charges, purchase accounting adjustments, sponsor monitoring fees and non-executive Phantom SARs compensation expense, operating income decreased 1.2% at reported foreign currency rates and increased 10.7% on a constant currency basis for 2015. The increase in operating income on a constant currency basis was a result of higher revenues and lower depreciation and amortization expense, partially offset by increases in operating expenses to support the revenue growth.

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Operating income was $208 million in 2014, a decline of $146 million, or 41.3%, compared to 2013. This decrease was due to $72 million related to the termination of the management services agreement with affiliates of the Sponsors, $30 million of non-executive Phantom SARs compensation expense and other increases in operating expenses discussed above, partially offset by the revenue growth. Operating income for 2014 decreased $121 million in constant currency terms compared to 2013. Absent the impact of stock-based compensation charges, acquisition-related charges, restructuring and related charges, purchase accounting adjustments, sponsor monitoring fees and non-executive Phantom SARs compensation expense, operating income increased 1.9% at reported foreign currency rates and 6.4% on a constant currency basis for 2014.

Trends in Operating Margins

Operating margins were 12.4%, 7.9% and 13.9% in 2015, 2014 and 2013, respectively. Margins were negatively impacted by the effects of foreign currency translation, stock-based compensation charges, acquisition-related charges, restructuring and related charges and purchase accounting adjustments. Additionally, margins in 2014 were negatively impacted by non-executive Phantom SARs compensation expense and sponsor monitoring fees. Excluding the effects of foreign currency translation and these charges, operating margins were 23.6%, 26.5% and 26.4% in 2015, 2014 and 2013, respectively. The period over period decrease in operating margin in 2015 compared to 2014 was primarily due to the lower profitability of the acquired Cegedim businesses.

Non-Operating Loss, net

Non-operating loss, net was $147 million in 2015, a decrease of $346 million compared to 2014. Interest expense, net of interest income, was $51 million lower than in 2014, primarily due to the redemption of our 12.5% senior notes and senior PIK notes in April 2014. Included in the non-operating loss for 2015 was a $7 million charge related to the remeasurement of our Venezuelan Bolívar account balances compared to a $49 million charge in 2014. Additionally, the hedge of non-U.S. Dollar anticipated royalties resulted in a $24 million gain in 2015 compared to a $7 million gain in 2014. Also included in the non-operating loss for 2014 was a $151 million make-whole premium payment and $68 million for the write-off of debt issuance costs and discounts, both of which were related to the redemption of our 12.5% senior notes and senior PIK notes in April 2014, and $13 million of debt extinguishment losses and third-party fees related to the 2014 amendment of our senior secured credit facilities. See Note 6 to our Consolidated Financial Statements for further information on the remeasurement of our Venezuelan Bolívar account balances and Note 7 for the debt transactions.

Non-operating loss, net was $493 million in 2014, an increase of $91 million compared to 2013. Included in the non-operating loss for 2014 was $151 million make-whole premium payment and $68 million for the write-off of debt issuance costs and discounts, both of which were related to the redemption of our 12.5% Senior Notes and Senior PIK Notes in April 2014, $13 million of debt extinguishment losses and third-party fees related to the 2014 amendment of our Senior Secured Credit Facilities and $49 million related to the remeasurement of our Venezuelan Bolívar account balances. Included in the non-operating loss for 2013 was $12 million of debt extinguishment losses and third-party fees related to the amendment of our Term loan B in February 2013 and a $14 million charge related to the official devaluation of Venezuela’s current exchange rate. Additionally, revaluation of other non-functional assets and liabilities, translation of non-functional currency debt and hedge of non-U.S. Dollar anticipated royalties were a $4 million gain in 2014 compared to a $45 million loss in 2013. Partially offsetting this variance was interest expense, net of interest income, which was $111 million lower than in 2013, primarily due to the redemption of our 12.5% Senior Notes and Senior PIK Notes in April 2014.

Taxes

We operate in more than 100 countries around the world and our earnings are taxed at the applicable income tax rate in each of these countries.

We recorded a benefit for income taxes of $200 million for 2015 primarily due to changing our assertion related to the unremitted earnings of our non-US subsidiaries. Historically, we provided deferred taxes with respect to all of the unremitted earnings of our non-U.S. subsidiaries. As of the beginning of 2015, we are asserting, with certain exceptions, that the unremitted earnings of our non-U.S. subsidiaries will be indefinitely reinvested. As a result of this change in assertion, in the first quarter of 2015, we reversed a previously established deferred tax liability of $256 million and as of December 31, 2015, have a deferred tax liability of $12 million. We have the intent and ability to indefinitely reinvest our non-U.S. subsidiaries’ unremitted earnings, with certain exceptions, as these earnings are no longer expected to be repatriated to the United States to meet our U.S. cash needs. Rather, we intend to reinvest the non-U.S. earnings in the growth of our non-U.S. businesses. If the $256 million related to the change in assertion was not recorded, the effective tax rate would have been 26.09% for 2015. The tax benefit for 2015 was also favorably impacted as a result of profits generated in non-U.S. tax jurisdictions with lower tax rates than the U.S. statutory tax rate. In 2015, we recorded a tax charge of $2 million for interest and penalties related to unrecognized tax benefits. As of December 31, 2015, we had $28 million of unrecognized tax benefits that if recognized would favorably affect the effective tax rate and $9 million of interest and penalties associated with unrecognized tax benefits.

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Our tax benefit for 2014 was primarily due to a significant amount of deductible expenses in the United States during 2014 related to the redemption of our 12.5% Senior Notes and Senior PIK Notes, the termination of the management services agreement with affiliates of the Sponsors and non-executive Phantom SARs compensation expense. In addition, our effective tax rate was impacted as a result of profits generated in non-U.S. tax jurisdictions with lower tax rates than the U.S. statutory tax rate and by deferred U.S. income tax expense related to non-U.S. earnings net of associated tax credits. We also recorded a tax benefit of $6 million in the second quarter of 2014 as a result of the conclusion of a U.S. Federal income tax examination for 2010 and 2011. In 2014, we recorded a tax charge of $3 million for interest and penalties related to unrecognized tax benefits. As of December 31, 2014, we had $28 million of unrecognized tax benefits that if recognized would favorably affect the effective tax rate and $9 million of interest and penalties associated with unrecognized tax benefits.

In 2014, we completed the restructuring of our foreign operations and fully integrated our United Kingdom, Spain and Austria businesses under the Company's main European holding company in Switzerland. The initial steps of the restructuring started during the fourth quarter of 2013. The restructuring significantly affected the book over tax basis differences among group members and the ultimate worldwide tax cost of a theoretical recognition of such differences. As a result, the associated deferred tax liability was reduced by approximately $5 million and $86 million as of December 31, 2014 and 2013, respectively.

In 2013, our effective tax rate was favorably impacted by a tax reduction of $10 million as a result of the conclusion of U.S. audits. In connection with one of the audits, we received a $47 million refund for which a receivable had been previously established. We also recorded tax reductions of $5 million as a result of the expiration of various statutes of limitation and $2 million for the reversal of a valuation allowance due to a change in enacted state tax law changes. In 2013, we recorded a tax charge of $2 million for interest and penalties related to unrecognized tax benefits. As of December 31, 2013, we had $38 million of unrecognized tax benefits that if recognized would favorably affect the effective tax rate and $11 million of interest and penalties associated with unrecognized tax benefits.

We file numerous consolidated and separate income tax returns in U.S. (federal and state) and non-U.S. jurisdictions. With few exceptions, we are no longer subject to U.S. federal income tax examination by tax authorities for years before 2012, in state and local jurisdictions for years prior to 2011, and in our material non-U.S. jurisdictions prior to 2011.

Operations by Geographic Region

Operating segments are defined as components of an enterprise about which financial information is available that is evaluated on a regular basis by the chief operating decision-maker, or decision-making groups, in deciding how to allocate resources to an individual segment and in assessing performance of the segment. We operate a globally consistent business model, offering clients in the healthcare industry with comprehensive solutions to measure and improve their performance.

We maintain regional geographic management who are responsible for bringing our full suite of offerings to their respective markets and to facilitate local execution of its global strategies. However, we maintain global leaders for the majority of our critical business processes; and the most significant performance evaluations and resource allocations made by our chief operating decision maker are made on a global basis. As such, we have concluded that we maintain one operating and reportable segment.

The following represents selected geographic information for the regions in which we operate.

(in millions)	Americas(1)		EMEA(2)		Asia Pacific(3)		Corporate & Other			Total
As of or For the Years Ended December 31,
2015
Revenue(4)	$	1,326	$	1,157	$	438	$	-		$	2,921
Operating income (loss)(5)		222		215		117		(190	)		364
Total assets		4,144		2,200		1,112		3			7,459
2014
Revenue(4)	$	1,205	$	1,007	$	429	$	-		$	2,641
Operating income (loss)(5)		283		276		134		(485	)		208
Total assets		3,833		2,035		1,112		116			7,096
2013
Revenue(4)	$	1,160	$	951	$	433	$	-		$	2,544
Operating income (loss)(5)		297		276		147		(366	)		354
Total assets		4,065		2,450		1,266		127			7,908

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In April 2015, we realigned our regional reporting so that India, Sri Lanka and Bangladesh are included in EMEA. Previously, these countries had been included in the Asia Pacific region. Additionally in 2015, the Company made changes to its geographic reporting classifications to move some functions out of Corporate and Other and into the regions. As a result of these changes, reclassifications of prior years’ geographic financial information were made to conform to the current year presentation. The reclassifications did not change previously reported Consolidated Results of Operations.

⁽¹⁾ Americas includes the United States, Canada and Latin America. Revenue in the United States was $1,127 million, $986 million and $935 million for the years ended December 31, 2015, 2014 and 2013, respectively. Total U.S. assets were $4,046 million, $3,659 million and $3,837 million at December 31, 2015, 2014 and  2013, respectively.

⁽²⁾ EMEA includes countries in Europe, the Middle East and Africa, and the countries of India, Sri Lanka and Bangladesh.

⁽³⁾ Asia Pacific includes Japan, Australia and other countries in the Asia Pacific region, excluding India, Sri Lanka and Bangladesh. Revenue in Japan was $245 million, $252 million and $261 million for the years ended December 31, 2015, 2014 and 2013, respectively.

⁽⁴⁾ Revenue relates to external clients and is primarily based on the location of the client. Revenue for the geographic regions includes the impact of foreign exchange in converting results into U.S. Dollars.

⁽⁵⁾ Operating income (loss) for the three geographic regions does not reflect the allocation of certain expenses that are maintained in Corporate and Other and as such, is not a true measure of the respective regions’ profitability. The Operating income (loss) amounts for the geographic segments include the impact of foreign exchange in converting results into U.S. Dollars. The following presents the depreciation and amortization for certain intangible assets recorded in connection with a merger transaction completed in 2010 by region that are included in Corporate and Other:

(in millions)	Americas		EMEA		Asia Pacific
For the Years Ended December 31,
2015	$	83	$	26	$	24
2014		126		86		39
2013		126		87		42

Americas Region

Revenue in the Americas region grew 10.0% in 2015 compared to 2014. On a constant currency basis, revenue grew 14.0% in 2015 compared to 2014. The increase in revenues was primarily due to the Cegedim acquisition and, on a constant currency basis, by growth in both technology and applications and real world evidence offerings within technology services in the United States. Revenue in the Americas region grew 3.8% in 2014 compared to 2013. On a constant currency basis, revenue grew 5.8% in 2014 compared to 2013. Technology services offerings accounted for almost all of the growth for 2014, primarily driven by the U.S.

Operating income in the Americas region decreased 21.3% in 2015 compared to 2014. On a constant currency basis, operating income decreased 14.9% in 2015 compared to 2014. The decrease in constant currency operating income in 2015 was a result of increases in operating expenses of $210 million, largely due to the Cegedim acquisition and to support the revenue growth in the region, partially offset by the revenue growth. Excluding $12 million of non-executive Phantom SARs compensation expense and $7 million impairment of a leased property included in 2014, operating expenses grew $229 million, including higher severance expense, largely due to the Cegedim acquisition. Operating income in the Americas region decreased 4.7% in 2014 compared to 2013. On a constant currency basis, operating income decreased 0.8% in 2014 compared to 2013. The decrease in constant currency operating income in 2014 was a result of non-executive Phantom SARs compensation expense of approximately $12 million, impairment of a leased property of $8 million and increases in other operating expenses of $49 million to support the revenue growth in the region, partially offset by revenue growth.

EMEA Region

Revenue in the EMEA region grew 14.9% in 2015 compared to 2014. On a constant currency basis, revenue grew 32.9% in 2015 compared to 2014. The increase in revenues was primarily due to the Cegedim acquisition and, on a constant currency basis, by growth in our real world evidence and technology and applications offerings within technology services, as well as solid growth in information offerings. Revenue in the EMEA region grew 5.9% in 2014 compared to 2013. On a constant currency basis, revenue grew 6.6% in 2014 compared to 2013. Approximately two-thirds of the constant currency increase in revenue in EMEA was the result of strong growth in our technology services offerings, especially in North Europe and Central Europe. Additionally revenue from our information offerings was strong in South Europe.

Operating income in the EMEA region declined 21.9% in 2015 compared to 2014. On a constant currency basis, operating income declined 1.4% in 2015 compared to 2014. The decrease in constant currency operating income in 2015 was a result of increases in operating expenses of $335 million, including higher severance charges, largely due to the Cegedim acquisition and to support the revenue growth, partially offset by strong revenue growth in the region. Excluding $10 million of non-executive Phantom SARs compensation expense included in 2014, operating expenses grew $345 million. Operating income in the EMEA region decreased 0.2% in 2014 compared to 2013. On a constant currency basis, operating income grew 1.9% in 2014 compared to 2013. The increase in constant currency operating income in 2014 was a result of revenue growth in the region, partially offset by non-executive Phantom SARs compensation expense of approximately $10 million and increases in other operating expenses of $47 million to support the revenue growth.

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Asia Pacific Region

Revenue in the Asia Pacific region grew 2.2% in 2015 compared to 2014. On a constant currency basis, revenue grew 12.4% in 2015 compared to 2014. The increase in revenues on a constant currency basis for 2015 was primarily due to the Cegedim acquisition. Additionally, the increase in constant currency revenue in 2015 resulted from growth in our technology and applications, consulting and real world evidence offerings within technology services. Revenue in the Asia Pacific region declined 0.8% in 2014 compared to 2013. On a constant currency basis, revenue grew 4.5% in 2014 compared to 2013. The constant currency increase in revenue was driven by growth in technology services offerings in Japan and information offerings in China.

Operating income in the Asia Pacific region declined 13.1% in 2015 compared to 2014. On a constant currency basis, operating income grew 2.2% in 2015 compared to 2014. The increase in constant currency operating income in 2015 was primarily a result of the revenue increase, partially offset by increases in operating expenses of $50 million, due to continued investments in the region to drive growth and the Cegedim acquisition. Operating income in the Asia Pacific region declined 8.9% in 2014 compared to 2013. On a constant currency basis, operating income declined 0.5% in 2014 compared to 2013. The decrease in constant currency operating income in 2014 was a result of increases in operating expenses of $19 million due to continued investments in the region to drive growth, partially offset by the revenue increase.

How Exchange Rates Affect our Results

We operate globally, deriving a significant portion of our operating income from non-U.S. operations. As a result, fluctuations in the value of foreign currencies in which we transact business relative to the U.S. Dollar may increase the volatility of U.S. Dollar operating results. We enter into foreign currency forward contracts to partially offset the effect of currency fluctuations and the impact of these forward contracts is reflected in Other income (loss), net on the Consolidated Statements of Comprehensive Income (Loss). In 2015, foreign currency translation decreased our U.S. Dollar revenue growth by approximately 10.4 percentage points and decreased our operating income growth by 30.9 percentage points. In 2014, foreign currency translation decreased our U.S. Dollar revenue growth by approximately 2.1 percentage points and increased our operating loss 7.0 percentage points.

Non-U.S. monetary assets are maintained in currencies other than the U.S. Dollar, principally the Swiss Franc, Euro and the Japanese Yen, and as such, the reported values of these assets may be significantly affected by fluctuations in foreign exchange rates. At December 31, 2015, the Swiss Franc, Euro and Japanese Yen exchange rates were weaker against the U.S. Dollar compared to December 31, 2014. Where monetary assets are held in the functional currency of the local entity, changes in the value of these currencies relative to the U.S. Dollar are reflected in accumulated other comprehensive income in the Consolidated Statements of Financial Position. The effect of exchange rate changes, which included the charges taken for our Venezuelan operations in 2015, 2014 and 2013, decreased the U.S. Dollar amount of cash and cash equivalents by $30 million, $81 million and $37 million during 2015, 2014 and 2013, respectively.

Liquidity and Capital Resources

We fund our liquidity needs for capital investment, working capital, and other financial commitments through cash flow from operations and our Senior Secured Credit Facilities (as defined below). At December 31, 2015, cash and cash equivalents were $396 million and our total indebtedness was $4,266 million. Additionally, we had $172 million available for borrowing under our Senior Secured Credit Facility at December 31, 2015. In the last two calendar years combined, we have generated strong net cash provided by operating activities of $600 million. In January 2016, we entered into an amendment to our senior secured credit facility to increase outstanding commitments under our existing Term A loans (as defined below) by $300 million. The proceeds from the additional Term A loans will be used for general corporate purposes, including funding acquisitions and repaying existing loans under our senior secured revolving credit facility. In addition to operating cash flows, other factors that affect our overall management of liquidity include capital expenditures, software development costs, acquisitions, debt service requirements, adequacy of our revolving credit facility and access to the capital markets.

In April 2014, we completed our IPO and raised net proceeds of approximately $987 million. Substantially all of our net proceeds from the IPO, borrowings under new term loans and our existing revolving credit facility and cash on hand were used to (i) fund the redemption of our 12.5% Senior Notes and Senior PIK Notes (defined in the Debt section below) and pay related fees and expenses, (ii) pay $30 million in the aggregate to holders of Phantom SARs and (iii) pay a one-time fee of $72 million to terminate our management services agreement with the Sponsors.

We believe we will have available resources to meet both our short-term and long-term liquidity requirements, including our debt service. We expect the cash flow from our operations, combined with existing cash and amounts available under the secured revolving credit facility, will provide sufficient liquidity to fund our current obligations, projected working capital requirements, restructuring obligations and capital spending over the next year. In addition, we do not intend to use non-U.S. cash and cash equivalents to meet U.S. liquidity needs to the extent those earnings are permanently reinvested. While our board of directors reviews our dividend policy from time to time, we currently do not intend to pay dividends in the foreseeable future. In addition we may, from

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time to time, purchase, repay, redeem or retire any of our outstanding debt or equity securities in privately negotiated or open market transactions, by tender offer or otherwise. Over the next twelve months, we currently expect that we will use our cash and cash equivalents primarily to fund:

· principal and interest payments of approximately $224 million;

· development of software to be used in our new products and capital expenditures of $190 million to $200 million to expand and upgrade our information technology capabilities and to build or acquire facilities to house our business;

· payments of approximately $56 million related to our employee severance plans;

· pension and other postretirement benefit plan contributions of approximately $9 million;

· acquisitions and potential payments for contingent consideration; and

· share repurchases.

Cash Flows

Cash and cash equivalents increased $6 million to $396 million at December 31, 2015 compared to $390 million at December 31, 2014. The increase reflects cash provided by operating activities of $490 million and financing activities of $262 million, which was largely offset by cash used in investing activities of $716 million and a decrease in cash of $30 million due to the effect of exchange rate changes.

Cash and cash equivalents decreased $335 million to $390 million at December 31, 2014 compared to $725 million at December 31, 2013. The decrease reflects cash used in investing activities of $241 million and financing activities of $123 million, and a decrease of $81 million due to the effect of exchange rate changes, partially offset by cash provided by operating activities of $110 million.

Operating Activities

Net cash provided by operating activities amounted to $490 million for the year ended December 31, 2015 compared to $110 million for the year ended December 31, 2014. Cash flows from operating activities for 2015 reflects higher cash-related net income of $208 million and favorable working capital movements of $139 million, primarily due to lower interest payments in 2015, the timing of other payments and lower funding of other current assets, partially offset by higher severance payments in 2015. Cash flows from operating activities for 2014 included $72 million paid to terminate the management services agreement, $151 million paid for make-whole premiums related to the repayment of our 12.5% senior notes and senior PIK notes and $30 million paid to the holders of the outstanding Phantom SARs. Interest paid was $85 million lower in 2015, primarily due to the redemption of our 12.5% Senior Notes and Senior PIK Notes in conjunction with our IPO in April 2014.

Net cash provided by operating activities amounted to $110 million for the year ended December 31, 2014 compared to $414 million for the year ended December 31, 2013. Cash flows from operating activities for 2014 reflects lower cash-related net income due to $72 million paid to terminate the management services agreement with affiliates of our Sponsors, $151 million in make-whole premiums related to the repayment of our 12.5% Senior Notes and Senior PIK Notes and $30 million paid to the holders of the outstanding Phantom SARs. Additionally, income tax paid, net of refunds, was $75million higher in 2014 primarily due to increased taxable profits in 2014 in non-U.S. jurisdictions and a $47 million refund in 2013 related to the conclusion of a U.S. tax audit. Interest paid was $35 million lower in 2014, primarily due to the redemption of the 12.5% Senior Notes in conjunction with our IPO in April 2014, partially offset by interest paid in 2014 related to our Senior PIK Notes. Contributions to our pensions and postretirement benefit plan were $29 million lower in 2014 as 2013 included a voluntary contribution to the U.K Defined Benefit Plan.

Investing Activities

Net cash used in investing activities amounted to $716 million for the year ended December 31, 2015, an increase in cash used of $475 million compared to the year ended December 31, 2014. The increase is primarily due to higher payments for acquisitions in 2015, including the Cegedim acquisition and higher spending for computer software, partially offset by lower capital expenditures in 2015 as 2014 included the purchase of an office building in India, a premium paid for the interest rate caps purchased in April 2014 and a reduction in restricted cash in 2015.

Net cash used in investing activities amounted to $241 million for the year ended December 31, 2014, an increase in cash used of $61 million compared to the year ended December 31, 2013. The increase related to lower proceeds from short-term investments, net of purchases, higher capital expenditures, including the purchase of an office building in India, higher additions to computer software and a premium paid for the interest rate caps purchased in April 2014, partially offset by lower payments for acquisitions in 2014 compared to 2013.

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Financing Activities

Net cash provided by financing activities amounted to $262 million for the year ended December 31, 2015, compared to net cash used of $123 million for the year ended December 31, 2014. Cash flows from financing activities for 2015 is primarily comprised of the issuance of the 4.125% Senior Notes in March 2015 and additional term loans resulting from the 2015 Amendment to our Senior Secured Credit Facilities in May 2015, partially offset by the repurchase of our common stock. Cash flows from financing activities for 2014 was primarily comprised of the repayment of our 12.5% Senior Notes and Senior PIK Notes, the payment of contingent consideration relating to a 2013 acquisition and the payment of debt amendment fees related to the 2014 Amendment (as defined below), partially offset by the net proceeds received from the IPO, proceeds from the issuance of Term A loans and higher net borrowings under our revolving credit facility in 2014.

Net cash used in financing activities amounted to $123 million for the year ended December 31, 2014, an increase in cash used of $71 million compared to the year ended December 31, 2013. Cash flows from financing activities for 2014 included the repayment of our 12.5% Senior Notes and Senior PIK Notes and higher payments of acquisition-related contingent consideration of $25 million, partially offset by the net proceeds received from the IPO, proceeds from the issuance of Term Loan A and borrowings, net of repayments under our revolving credit facility. Cash flows from financing activities for 2013 included the dividend paid to shareholders, partially offset by proceeds from our August 2013 debt offering.

Liquidity in the Capital and Credit Markets

Credit Concentrations

We continually monitor our positions with, and the credit quality of, the financial institutions that are counterparties to our financial instruments and do not anticipate non-performance by the counterparties. In general, we enter into transactions only with counterparties that are large banks and financial institutions. In addition, we attempt to limit the amount of credit exposure with any one institution. We would not have realized a material loss during the year ended December 31, 2015 in the event of non-performance by any one counterparty. Management continues to monitor the status of these counterparties and will take action, as appropriate, to manage any counterparty credit risk.

We maintain accounts receivable balances ($508 million and $330 million, net of allowances, at December 31, 2015 and 2014, respectively), principally from clients in the pharmaceutical industry. Our trade receivables do not represent significant concentrations of credit risk at December 31, 2015 due to the credit worthiness of our clients and their dispersion across many geographic areas.

Share Repurchase

On December 16, 2015, our board of directors approved a $250 million common stock repurchase authorization. Our share repurchase authorization has been developed to buy opportunistically, when we believe that our share price provides us with an attractive use of our cash flow and debt capacity. Through December 31, 2015, we purchased 670 thousand shares of our common stock having an aggregate value of approximately $17 million at an average price of $25.70 per share. The share repurchase was funded through a combination of cash and borrowings under our revolving credit facility. The repurchase authorization does not have a specified expiration date but can be modified, suspended or discontinued at any time.

On May 3, 2015, our board of directors approved a $300 million common stock repurchase authorization. In connection with that authorization, on May 12, 2015, we purchased 11.1 million shares of our common stock having an aggregate value of approximately $300 million at $27.0875 per share. To fund the share repurchase, we entered into the 2015 Amendment (as defined below) that provided us with $200 million in additional term loan borrowings and utilized borrowings from our revolving credit facility and available cash. See Note 9 to our Consolidated Financial Statements for additional information.

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Debt

The following table summarizes our debt at the dates indicated:

	December 31,
(in millions)	2015			2014
Senior Secured Credit Facilities:
Senior Secured Term A Loan due 2019—USD LIBOR at average floating rates of 2.86%	$	484		$	307
Senior Secured Term A Loan due 2019—EUR LIBOR at average floating rates of 2.25%		135			158
Senior Secured Term B Loan due 2021—USD LIBOR at average floating rates of 3.50%		1,717			1,735
Senior Secured Term B Loan due 2021—EUR LIBOR at average floating rates of 3.75%		802			901
Revolving Credit Facility due 2019:
U.S. Dollar denominated borrowings—USD LIBOR at average floating rates of 2.79%		328			215
4.125% Senior Notes due 2023 - Euro denominated		300			—
6.00% Senior Notes due 2020 - U.S. Dollar denominated		500			500
Principal Amount of Debt		4,266			3,816
Less: Debt Issuance Costs and Unamortized Discounts		(71	)		(77	)
Total Debt	$	4,195		$	3,739

Senior Secured Credit Facilities

In May 2015, IMS Health, our indirect wholly-owned subsidiary, entered into an amendment (the “2015 Amendment”) to the Third Amended and Restated Credit and Guaranty Agreement, dated as of March 17, 2014, among IMS Health, IMS AG and IMS Japan K.K., as co-borrowers, Healthcare Technology Intermediate Holdings, Inc., Bank of America, N.A. and the other lenders party thereto (as amended by the 2015 Amendment, the “Credit Agreement” and, together with the related security and other documents for the senior secured term loan facilities and the senior secured revolving facility, the “Senior Secured Credit Facilities”). The 2015 Amendment increased outstanding commitments under our existing Term A loans by $200 million. The proceeds from the additional term loans were used to fund a portion of our repurchase of our common shares in May 2015. See Note 9 to our Consolidated Financial Statements for further information on the share repurchase. As a result of the 2015 Amendment, we incurred $2 million of fees, which are being amortized to interest expense.

In March 2014, IMS Health and certain of its subsidiaries, as co-borrowers, entered into an amendment (the “2014 Amendment”) to the Second Amended and Restated Credit and Guaranty Agreement, dated as of October 24, 2012. The 2014 Amendment added commitments in respect of new Term A loans (the “New Term Loans”) in the aggregate dollar equivalent amount of $500 million, increased outstanding commitments under the revolving credit facility to $500 million, modified certain interest rates and covenants and made additional modifications to the then outstanding senior secured credit facilities. The New Term Loans were funded in April 2014 concurrent with our IPO. The New Term Loans and revolving credit facility mature in March 2019, while the Term B loans mature in March 2021. As a result of the 2014 Amendment, we recorded $11 million of debt extinguishment losses and $2 million of fees in Other income (loss), net during the year ended December 31, 2014.

In February 2013, IMS Health and certain of its subsidiaries entered into an amendment of the then existing senior secured term loans due 2017 (“Term Loan Amendment”) to reduce our borrowing costs. IMS Health reduced the borrowing margins and LIBOR floors by 50 basis points and 25 basis points, respectively, for both the USD and EUR tranches of debt. As a result of the Term Loan Amendment, we recorded $9 million of debt extinguishment losses and $3 million of fees in Other income (loss), net during the year ended December 31, 2013.

IMS Health is required to make scheduled quarterly payments on the Term A loans at rates that vary from 1.25% to 2.50% of the original principal amount of the term loans, with the remaining balance paid at maturity. Additionally IMS Health is required to make scheduled quarterly payments on the Term B loans each equal to approximately 0.25% of the original principal amount of the term loans, with the remaining balance paid at maturity. IMS Health is also required to pay an annual commitment fee that ranges from 0.30% to 0.40% in respect of any unused commitments under the revolving credit facility.

At December 31, 2015, IMS Health, IMS AG and IMS Japan K.K., as co-borrowers, had an aggregate $500 million revolving credit facility, of which $172 million was unused. The Senior Secured Credit Facilities are secured by a security interest in substantially all of Healthcare Technology Intermediate Holdings, Inc.’s, IMS Health’s and the U.S. subsidiary guarantors’ tangible and intangible assets, including the stock of IMS Health and certain of IMS Health’s U.S. restricted subsidiaries and a portion of the stock of IMS Health’s non-U.S. restricted subsidiaries directly owned by Healthcare Technology Intermediate Holdings, Inc., IMS Health or a U.S. subsidiary guarantor. In addition, the obligations of IMS AG are guaranteed by certain of its Swiss restricted subsidiaries and are secured by certain assets of IMS AG and the Swiss guarantors, including the stock of the Swiss guarantors. The obligations of IMS Japan K.K. are secured by certain of its assets. There have been no borrowings by IMS Japan K.K. to date.

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Senior Notes

In anticipation of the Cegedim acquisition, IMS Health issued €275 million aggregate principal amount of its 4.125% Senior Notes due in April 2023 on March 30, 2015. The proceeds, along with cash on hand, were used on April 1, 2015, to fund the Cegedim acquisition and pay fees and expenses of $5 million in connection with the debt offering. See Note 3 to our Consolidated Financial Statements for more information on the Cegedim acquisition. Interest on the 4.125% Senior Notes is payable semi-annually each year and commenced on October 1, 2015. The 4.125% Senior Notes are guaranteed on a senior unsecured basis by IMS Health’s wholly-owned domestic subsidiaries that are guarantors under the Senior Secured Credit Facilities. We may redeem the 4.125% Senior Notes, in whole or in part, at any time prior to April 1, 2018 at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of redemption, plus a “make-whole” premium. On or after April 1, 2018, we may redeem all or a portion of the 4.125% Senior Notes at predetermined redemption prices set forth in the indenture governing the 4.125% Senior Notes plus accrued and unpaid interest to the date of redemption.

In addition to the 4.125% Senior Notes, IMS Health has outstanding $500 million aggregate principal amount of 6% Senior Notes due in November 2020 (the “6% Senior Notes”). Interest is payable semi-annually each year. The 6% Senior Notes are guaranteed on a senior unsecured basis by IMS Health’s wholly-owned domestic subsidiaries that are guarantors under the Senior Secured Credit Facilities. We may redeem all or a portion of the 6% Senior Notes at predetermined redemption prices set forth in the indenture governing the 6% Senior Notes plus accrued and unpaid interest to the date of redemption.

Other

In connection with our IPO in April 2014, we redeemed our 12.5% senior notes and senior PIK notes and incurred a loss on extinguishment of debt of $219 million in 2014, consisting of a $151 million in aggregate payments for make-whole premiums related to such redemptions and $68 million write-off of debt issuance costs and discounts.

The Senior Secured Credit Facilities and the indentures for the 4.125% Senior Notes and 6% Senior Notes 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 our or our 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 New Term Loans, other actions permitted to be taken by a secured creditor. At December 31, 2015, we were in compliance with the financial covenants under our financing arrangements.

Severance, Impairment and Other Charges

We record a liability for significant costs associated with restructuring activities, including employee severance and related benefits, lease termination costs, asset impairments and other qualifying exit costs, when such costs are deemed probable and estimable. Employee severance benefits are calculated pursuant to the terms of established employee protection plans, in accordance with local statutory minimum requirements or individual employee contracts, as applicable. These charges are included in Severance, impairment and other charges, a component of operating income, on the Consolidated Statements of Comprehensive Income (Loss).

Severance

As a result of ongoing cost reduction efforts, we recorded severance charges consisting of global workforce reductions to streamline our organization. The following table sets forth the activity in our severance-related reserves:

(in millions)	2015 Plan(1)			2013 and 2014 Plans(2)
Balance at December 31, 2013	$	—		$	12
Charges		—			22
Cash payments		—			(16	)
Balance at December 31, 2014		—			18
Charges		76			—
Cash payments		(25	)		(14	)
Balance at December 31, 2015	$	51		$	4

⁽¹⁾ In 2015, we implemented a restructuring plan (the “2015 Plan”) and recorded pre-tax severance charges of $76 million, $33 million of which was recorded in the fourth quarter of 2015. We expect that cash outlays related to the 2015 Plan will be substantially complete by the end of 2017.

⁽²⁾ In December 2013, we implemented a restructuring plan (the “2013 Plan”) and recorded a pre-tax severance charge of $12 million. In 2014, we implemented a restructuring plan (the “2014 Plan”) and recorded pre-tax severance charges of $22 million, $3 million of which was recorded in the fourth quarter of 2014. We expect that cash outlays related to the 2013 and 2014 Plans will be substantially complete by the end of 2016.

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Other Charges

During 2015, we recorded impairment charges of $12 million, of which $5 million was recorded in the fourth quarter of 2015. The charges are primarily comprised of the write-off of $9 million of computer software that was no longer in use and $3 million in contract-related charges for which we will not realize any future economic benefits.

During 2014, we recorded impairment charges of $11 million, of which $8 million related to impaired leases for properties in the United States and $3 million for the write-down of certain assets and contract-related charges for which the Company will not realize any future economic benefits.

During 2013, we recorded impairment charges of $10 million, $7 million of which related to impaired leases for properties vacated in the United States and $3 million for contract-related charges for which we will not realize any future economic benefits. Of the $7 million charge for impaired leases, $3 million was recorded in the fourth quarter of 2013.

Contingencies

We are exposed to certain known contingencies that are material to our investors. The facts and circumstances surrounding these contingencies and a discussion of their effect on us are included in Note 13 to our Consolidated Financial Statements included elsewhere in this Report. These contingencies may have a material effect on our liquidity, capital resources or results of operations. In addition, even where our reserves are adequate, the incurrence of any of these liabilities may have a material effect on our liquidity and the amount of cash available to us for other purposes.

Management believes that we have made appropriate arrangements in respect of the future effect on us of these known contingencies. Management also believes that the amount of cash available to us from our operations, together with cash from financing, will be sufficient for us to pay any known contingencies as they become due without materially affecting our ability to conduct our operations and invest in the growth of our business.

Contractual Obligations

Our contractual obligations include facility leases, agreements to purchase data and telecommunications services, computer and other leases, projected pension and other postretirement benefit plan contributions, long-term debt obligations and employee severance. At December 31, 2015, the minimum annual payment under these agreements and other contracts that have initial or remaining non-cancelable terms in excess of one year are as listed in the following table:

(in millions)	2016		2017 - 2018		2019 - 2020		Thereafter		Total
Operating leases(1)	$	66	$	93	$	60	$	51	$	270
Data acquisition and telecommunication services(2)		253		205		85		9		552
Computer and other leases(3)		23		26		10		—		59
Benefit obligations(4)		28		41		46		144		259
Long-term debt(5)		224		482		1,613		2,744		5,063
Other liabilities(6)		56		1		1		1		59
Total	$	650	$	848	$	1,815	$	2,949	$	6,262

⁽¹⁾ Rental expense under real estate operating leases for the years ended 2015, 2014 and 2013 were $70 million, $51 million and $49 million, respectively.

⁽²⁾ Expense under data acquisition and telecommunications long-term contracts for the years ended 2015, 2014 and 2013 were $263 million, $221 million and $215 million, respectively.

⁽³⁾ Rental expense under computer and other leases for the years ended 2015, 2014 and 2013 were $26 million, $28 million and $25 million, respectively. These leases are frequently renegotiated or otherwise changed as advancements in computer technology produce opportunities to lower costs and improve performance.

⁽⁴⁾ Amounts represent expected future benefit payments for our pension and postretirement benefit plans, as well as expected contributions for 2016 for our funded pension benefit plans (see Note 8 to our Consolidated Financial Statements for the year ended December 31, 2015 included elsewhere in this Report).

⁽⁵⁾ Amounts represent the principal balance plus estimated interest expense based on current interest rates under our long-term debt (see Note 7 to our Consolidated Financial Statements for the year ended December 31, 2015 included elsewhere in this Report).

⁽⁶⁾ Includes estimated future funding requirements related to severance, impairment and other charges (see Note 5 to our Consolidated Financial Statements for the year ended December 31, 2015 included elsewhere in this Report). As the timing of future cash outflows is uncertain, the following long-term liabilities (and related balances) are excluded from the above table: deferred taxes ($526) million and uncertain tax benefits reserve ($19) million.

Under the terms of certain acquisition-related purchase agreements, we may be required to pay additional amounts as contingent consideration based primarily on the achievement of certain financial performance related metrics. At December 31, 2015, we have recorded estimated accruals of approximately $28 million, which could become due through 2018, with respect to these additional payments relating to thirteen acquisitions.

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Off-Balance Sheet Obligations

As of December 31, 2015, we have no off-balance sheet arrangements that currently have or are reasonably likely to have a material effect on our consolidated financial condition, changes in financial condition, results of operations, liquidity, capital expenditures or capital resources.

Critical Accounting Estimates

Note 2 to the Consolidated Financial Statements for the year ended December 31, 2015 included elsewhere in this Report includes a summary of the significant accounting policies and methods used in the preparation of our Consolidated Financial Statements. Following is a brief discussion of the more significant accounting policies and methods used by us.

The most significant estimates relate to carrying value of goodwill and intangible assets, purchase price allocations, provision for income taxes and tax assets and liabilities, reserves for employee benefits, stock-based compensation, contingencies, litigation, allowances and depreciation of fixed assets including salvage values. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The accounting estimates used in the preparation of our Consolidated Financial Statements will change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Actual results could vary from the estimates and assumptions used in the preparation of the Consolidated Financial Statements for the year ended December 31, 2015.

We believe the following critical accounting policies involve significant judgments and estimates used in the preparation of our Consolidated Financial Statements for the year ended December 31, 2015.

Revenue Recognition. We recognize revenue when the following criteria have been met: 1) persuasive evidence of an arrangement exists; 2) delivery has occurred or services have been rendered; 3) the seller’s price to the buyer is fixed or determinable; and 4) collectibility is reasonably assured.

We offer various information offerings developed to meet our clients’ needs by using data secured from a worldwide network of suppliers. Our revenue arrangements may include multiple elements. A typical information offerings arrangement (primarily under fixed-price contracts) may include an ongoing subscription-based deliverable for which revenue is recognized ratably as earned over the contract period and/or a one-time delivery of data offerings for which revenue is recognized upon delivery, assuming all other criteria are met. Our subscription arrangements typically have terms ranging from one to three years and are generally non-cancelable and do not contain refund-type provisions.

We also offer technology services offerings that enable our clients to make informed business decisions. Technology services offerings consist of a mix of small and large-scale services and consulting projects, multi-year outsourcing contracts and SaaS licenses. These arrangements typically have terms ranging from several weeks to three years, with a majority having terms of one year or less. Revenues for services engagements where deliverables occur ratably over time are recognized on a straight-line basis over the term of the arrangement. Revenues from time and material contracts are recognized as the services are provided. Revenues from fixed price ad hoc services and consulting contracts are recognized either over the contract term based on the ratio of the number of hours incurred for services provided during the period compared to the total estimated hours to be incurred over the entire arrangement (efforts based), or upon delivery (completed contract).

The deliverables in multiple-element arrangements qualify as separate units of accounting as each has value on a standalone basis to the client, objective and reliable evidence of fair value for any undelivered item(s) exists, and where the arrangement includes a general right of return relative to the delivered item(s), delivery of the undelivered item(s) is probable and within our control. We allocate revenue to each element within our arrangements based upon their respective relative selling price. Fair values for these elements are based upon the normal pricing practices for these offerings when sold separately. We defer revenue for any undelivered elements, and recognize revenue when the product is delivered or over the term of the agreement, in accordance with our revenue recognition policy for such element as noted above.

Operating Costs of Information. Operating costs of information includes costs attributable to personnel involved in production, data management and delivery, and the costs of acquiring and processing data for our information offerings. One of our major expenditures is the cost for the data we receive from suppliers. After receipt of the raw data and prior to the data being available for use in any part of our business, we are required to transform the raw data into useful information through a series of comprehensive processes. These processes involve significant employee costs and data processing costs. Costs associated with our purchases are deferred within work-in-process inventory and recognized as expense as the corresponding data product revenue is recognized by us, generally over a thirty to sixty day period.

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Direct and Incremental Costs of Technology Services. Direct and incremental costs of technology services include costs of staff directly involved with delivering technology-related, consulting and services generating offerings and engagements, related accommodations and the costs of data purchased specifically for technology services engagements. Direct and incremental costs of technology services do not include an allocation of direct costs of data that are included in operating costs of information. Although our data, the costs of which are included in Operating Costs of Information, is used in multiple client solutions across different offerings within both information and technology services, we do not have a meaningful way to allocate the direct cost of the data between information and technology services. As such, the direct and incremental costs of technology services do not reflect the total costs incurred to deliver our technology services engagements.

Stock-Based Compensation. We maintain an equity incentive plan, which provides for the grant of stock options (including incentive stock options), stock appreciation rights (“SARs”), restricted and deferred stock (including restricted stock units), dividend equivalents, other stock-based awards and performance awards to key employees, including our Company’s named executive officers, non-employee directors, consultants, and other persons who provide substantial services to the Company. We recognize as stock-based compensation expense for all share-based payments to employees over the requisite service period (generally the vesting period) in the Consolidated Statements of Comprehensive Income (Loss) based on the fair values of the number of awards that are ultimately expected to vest. For performance-based awards, stock-based compensation expense is adjusted over time based on our assessment of the probability of achieving the financial targets. As a result, for most awards, recognized stock-based compensation expense is reduced for estimated forfeitures prior to vesting primarily based on historical annual forfeiture rates. Estimated forfeitures will be reassessed in subsequent periods and may change based on new facts and circumstances. We satisfy exercises and issuances of vested equity awards with issuances of common stock. We recorded stock-based compensation expense of $25 million, $58 million and $22 million in the years ended December 31, 2015, 2014 and 2013, respectively.

Stock-based compensation expense is primarily based on the estimated grant date fair value using the Black-Scholes option pricing model or, for performance based awards, the Monte Carlo simulation model. Considerable judgment is required in determining the fair value of stock-based grants, including factors such as estimating the expected term of the grant, expected volatility of our stock and the expected forfeiture rate. In addition, for grants where vesting is dependent on achieving certain operating performance targets, we estimate the likelihood of achieving those performance targets. The following table summarizes the weighted average assumptions used to measure fair value:

	2015			2014			2013
Dividend yield(1)		0.0	%		0.0	%		0.0	%
Weighted average volatility(2)		33.9	%		26.4	%		26.7	%
Risk free interest rate(3)		1.70	%		1.68	%		1.19	%
Expected term(4)	6.50 years			5.50 years			5.50 years
Weighted average fair value of options granted	$	9.34		$	5.44		$	4.89

⁽¹⁾ The dividend yield of 0.0% is used because no recurring dividends have been authorized and we do not expect to pay cash dividends in the foreseeable future. An increase in the dividend yield will decrease stock compensation expense.

⁽²⁾  The weighted average volatility was developed using the historical volatility of several peer companies to IMS Health Holdings, Inc. for periods equal to the expected life of the grant. An increase in the weighted average volatility assumption will increase stock compensation expense.

⁽³⁾  The risk-free interest rate was developed using the U.S. Treasury yield curve for periods equal to the expected life of the options and SARs on the grant date. An increase in the risk-free interest rate will increase stock compensation expense.

⁽⁴⁾ The expected term was estimated for the 2015 grant of SARs based on the awards’ vesting period and contractual term. An increase in the expected holding period will increase stock compensation expense.

Additional information on stock-based compensation is contained in Note 10 to the Consolidated Financial Statements included elsewhere in this Report.

Pensions and Other Postretirement Benefits. We provide a number of retirement benefits to our employees, including defined benefit pension plans and postretirement medical plans. The determination of benefit obligations and expense is based on actuarial models. In order to measure benefit costs and obligations using these models, critical assumptions are made with regard to the discount rate, expected return on plan assets, cash balance crediting rate, lump sum conversion rate and the assumed rate of compensation increases. In addition, retiree medical care cost trend rates are a key assumption used exclusively in determining costs for our postretirement health care and life insurance benefit plans. Management reviews these critical assumptions at least annually. Other assumptions involve demographic factors such as the turnover, retirement and mortality rates. Management reviews these assumptions periodically and updates them when its experience deems it appropriate to do so.

The discount rate is the rate at which the benefit obligations could be effectively settled and is determined annually by management. For U.S. plans, the discount rate is based on results of a modeling process in which the plans’ expected cash flow (determined on a projected benefit obligation basis) is matched with spot rates developed from a yield curve comprised of high-grade (Moody’s Aa and above, or Standard and Poor’s AA and above) non-callable corporate bonds to develop the present value of the expected cash flow, and, prior to December 31, 2015, then determining the single rate (discount rate) which when applied to the

49

expected cash flow derives that same present value. In the U.K. specifically, the discount rate is set based on the yields on a universe of approximately 120 high quality (Aa rated) non-callable corporate bonds denominated in U.K. Sterling, appropriate to the duration of Plan liabilities. For the other non-U.S. plans, the discount rate is based on the current yield of an index of high quality corporate bonds. At December 31, 2015, the discount rate ranged from 3.00% to 4.57% compared to 2.60% to 3.90% at December 31, 2014 for our U.S. pension plans and postretirement benefit plan. The discount rate for our U.K. pension plan increased to 3.89% at December 31, 2015 from 3.80% at December 31, 2014. The U.S. and U.K. plans represent approximately 90% of the consolidated benefit obligation as of December 31, 2015. The discount rates in other non-U.S. countries increased, as the range of applicable discount rates was 0.60% to 5.00% at December 31, 2015, compared to 0.50% to 4.60% at December 31, 2014. As a sensitivity measure, a 25 basis point increase in the discount rate for either our U.S. plan or our U.K. plan, absent any offsetting changes in other assumptions, would result in less than $1 million increase in pension expense within the Consolidated Statements of Comprehensive Income (Loss).

In 2016, we will change the approach of how we estimate the service and interest cost components of net periodic benefit cost for our U.S. and U.K. pension benefit plans. Previously, we estimated the service and interest cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation. The new estimate utilizes a full yield curve approach in the estimation of these components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to each of the underlying projected cash flows based on time until payment. The new estimate provides a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows and their corresponding spot rates. The change does not affect the measurement of our U.S. and U.K. pension benefit obligations and it is accounted for as a change in accounting estimate, which is applied prospectively. For fiscal 2016, the change in estimate is not expected to have a material reduction to the U.S. and U.K. pension net periodic benefit plan cost when compared to the cost calculated under the previous method.

Under the U.S. qualified retirement plan, participants have a notional retirement account that increases with pay and investment credits. The rate used to determine the investment credit (cash balance crediting rate) varies monthly and is equal to 1/12th of the yield on 30-year U.S. Government Treasury Bonds, with a minimum of 0.25%. At retirement, the account is converted to a monthly retirement benefit.

In selecting an expected return on plan asset assumption, we consider the returns being earned by each plan investment category in the fund, the rates of return expected to be available for reinvestment and long-term economic forecasts for the type of investments held by the plan. The expected return on plan assets for the U.S. pension plans was 8.0% at January 1, 2016 and January 1, 2015. Outside the U.S., the range of applicable expected rates of return was 1.0% to 5.5% as of January 1, 2016 compared to 1.0% to 6.0% as of January 1, 2015. The actual return on plan assets will vary from year to year versus this assumption. We believe it is appropriate to use long-term expected forecasts in selecting the expected return on plan assets. As such, there can be no assurance that our actual return on plan assets will approximate the long-term expected forecasts. The expected return on assets (“EROA”) was $35 million and $33 million and the actual return on assets was $6 million and $59 million for the years ended December 31, 2015 and 2014, respectively. As a sensitivity measure, a 25 basis point change in the EROA assumption for our U.S. plan, absent any offsetting changes in other assumptions, would result in an approximately $1 million increase or decrease in pension expense within the Consolidated Statements of Comprehensive Income (Loss). For our U.K. plan, a 25 basis point change in the EROA assumption, absent any offsetting changes in other assumptions, would result in a less than $1 million increase or decrease in pension expense within the Consolidated Statements of Comprehensive Income (Loss). While we believe that the assumptions used are reasonable, differences in actual experience or changes in assumptions may materially affect its pension and postretirement obligations and future expense.

We utilize a corridor approach to amortizing unrecognized gains and losses in the pension and postretirement plans. Amortization occurs when the accumulated unrecognized net gain or loss balance exceeds the criterion of 10% of the larger of the beginning balances of the projected benefit obligation or the market-related value of the plan assets. The excess unrecognized gain or loss balance is then amortized using the straight-line method over the average remaining service-life of active employees expected to receive benefits. At December 31, 2015, the weighted-average remaining service-life of active employees was approximately 25 years.

At December 31, 2015, the projected benefit obligation exceeded the fair value of assets of our pension plans by $36 million.

Additional information on pension and other postretirement benefit plans is contained in Note 8 to the Consolidated Financial Statements included elsewhere in this Report.

Business Combinations.We allocate the purchase price of acquired businesses to the estimated fair values of the assets acquired and liabilities assumed as of the date of the acquisition. The calculations used to determine the fair value of the long-lived assets acquired, primarily intangible assets, can be complex and require significant judgment. We weigh many factors when completing these estimates including, but not limited to, the nature of the acquired company’s business; its competitive position, strengths, and challenges; its historical financial position and performance; estimated customer retention rates; discount rates; projected financial results of the acquired businesses based on our most recent internal forecasts, and factors indicating the probability of achieving the forecasted results and future plans for the combined entity. We are also required to estimate the useful lives of the

50

acquired intangible assets, which determines the amount of acquisition-related amortization expense we will record in future periods. We may also engage independent valuation specialists, when necessary, to assist in the fair value calculations for significant acquired long-lived assets.  

While we use our best estimates and assumptions, our fair value estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Any adjustments required after the measurement period are recorded in the Consolidated Statements of Comprehensive Income (Loss).

Goodwill. Goodwill represents the excess purchase price over the fair value of identifiable net assets of businesses acquired, and is not amortized. We review the recoverability of goodwill annually (or based on any triggering event). To analyze goodwill for impairment, we must assign our goodwill to individual reporting units. Identification of reporting units, considers, among other things, the manner in which we operate our business and the availability of discrete financial information.

For our impairment test as of October 1, 2015, we utilized a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value which includes, but is not limited to, consideration of the results of our most recent quantitative impairment test, consideration of macroeconomic conditions, industry and market conditions, cost factors, cash flows, changes in key Company personnel and our share price.

For our impairment tests as of October 1, 2014 and 2013, we utilized a quantitative goodwill impairment test, which requires estimating fair value of a reporting unit based on a discounted cash flow analysis. A discounted cash flow analysis requires us to make various judgmental assumptions, including assumptions about the timing and amount of future cash flows, growth rates and discount rates. If the carrying amount of the reporting unit exceeds its fair value, the goodwill impairment loss is measured as the excess of the carrying value of goodwill over its fair value. Based on our annual impairment tests in 2015, 2014 and 2013, no goodwill impairment charges were recorded.

Other Long-Lived Assets. We review the recoverability of our long-lived assets and identifiable intangibles held and used whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In general, the assessment of possible impairment is based on our ability to recover the carrying value of the asset from the undiscounted expected future cash flows of the asset. If the future cash flows are less than the carrying value of such asset, an impairment charge is recognized for the difference between the estimated fair value and the carrying value. In addition, we also review our indefinite-lived intangible assets on an annual basis.

Income Taxes. We operate in more than 100 countries around the world and our earnings are taxed at the applicable income tax rate in each of those countries. We provide for income taxes utilizing the asset and liability method of accounting for income taxes. Under this method, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each balance sheet date, based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. If it is determined that it is more likely than not that future tax benefits associated with a deferred tax asset will not be realized, a valuation allowance is provided. In the event we were to determine that we would be able to realize our deferred tax assets in the future in excess of our net recorded amount, an adjustment to the deferred tax asset would increase income in the period such determination was made. Likewise, should we determine that we would not be able to realize all or part of our net deferred tax asset in the future, an adjustment to the deferred tax asset would be charged to income in the period such determination was made. The effect on deferred tax assets and liabilities of a change in the tax rates is recognized in income in the period that includes the enactment date. We recognize interest and penalties related to unrecognized tax benefits in income tax expense.

Foreign Currency. We have significant investments in non-U.S. countries. Therefore, changes in the value of foreign currencies affect our Consolidated Financial Statements when translated into U.S. Dollars. For all operations outside the United States where we have designated the local currency as the functional currency, assets and liabilities are translated using end-of-period exchange rates; revenues, expenses and cash flows are translated using average rates of exchange prevailing during the period the transactions occurred. Translation gains and losses are included as an adjustment to the accumulated other comprehensive income (loss) component of shareholders’ equity. In addition, gains and losses from foreign currency transactions, such as those resulting from the settlement and revaluation of third-party and intercompany foreign receivables and payables, are included in the determination of net income (loss).

For operations in countries that are considered to be highly inflationary or where the U.S. Dollar is designated as the functional currency, monetary assets and liabilities are remeasured using end-of-period exchange rates, whereas non-monetary accounts are remeasured using historical exchange rates, and all remeasurement and transaction adjustments are recognized in Other income (loss), net.

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Recently Issued Accounting Standards

Information relating to recently issued accounting standards is included in Note 2 to our Consolidated Financial Statements in this Report.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market risk is the potential loss arising from adverse changes in market rates and prices, such as foreign currency exchange rates, interest rates, and other relevant market rate or price changes. In the ordinary course of business, we are exposed to various market risks, including changes in foreign currency exchange rates, interest rates and equity price changes, and we regularly evaluate our exposure to such changes. Our overall risk management strategy seeks to balance the magnitude of the exposure and the cost and availability of appropriate financial instruments. From time to time, we have utilized forward exchange contracts to manage our foreign currency exchange rate risk.

Our primary market risks are the impact of foreign exchange fluctuations on non-U.S. Dollar denominated revenue and the impact of interest rate fluctuations on interest expense.

Foreign Exchange Risk

We transact business in more than 100 countries and are subject to risks associated with fluctuating foreign exchange rates. Our objective is to reduce earnings and cash flow volatility associated with foreign exchange rate movements. Accordingly, we enter into foreign currency forward contracts to minimize the impact of foreign exchange movements on non–functional currency assets and liabilities and to hedge non-U.S. Dollar anticipated royalties (“Royalty Hedging”). It is our policy to enter into foreign currency transactions only to the extent necessary to meet its objectives as stated above. We do not enter into foreign currency transactions for investment or speculative purposes. The principal currencies hedged are the Euro, the Japanese Yen, the Swiss Franc and the Canadian Dollar. See Note 6 to our Consolidated Financial Statements for the year ended December 31, 2015 included elsewhere in this Report.

The contractual value of our foreign exchange derivative instruments, all of which were foreign exchange forward contracts, was approximately $326 million at December 31, 2015. The fair value of these contracts is subject to change as a result of potential changes in foreign exchange rates. We assess our market risk based on changes in foreign exchange rates utilizing a sensitivity analysis. The sensitivity analysis measures the potential loss in fair values based on a hypothetical 10% change in foreign exchange rates. The potential loss in fair value for foreign exchange forward contracts based on a hypothetical 10% decrease in the value of the U.S. Dollar or, in the case of non-dollar-related contracts, the currency being purchased, was $16 million at December 31, 2015. However, the change in the fair value of the foreign exchange forward contracts would likely be offset by a change in the fair value of the future royalty or balance sheet exposure being hedged. The estimated fair values of the foreign exchange forward contracts were determined based on quoted market prices.

Exchange rate fluctuations affect the U.S. Dollar value of foreign currency revenue and expenses and may have a significant effect on our results. A hypothetical 1% change in exchange rates relative to the U.S. Dollar at December 31, 2015 would result in an approximate $8 to $9 million revenue impact related to the Euro, $2.5 million revenue impact related to the Japanese Yen and $7 million revenue impact related to all our non-U.S. Dollar other currencies. The actual impact of exchange rate movements in the future could differ materially from this hypothetical analysis, based on the mix of our revenue and the timing and magnitude of individual exchange rate movements.

Additionally commencing in 2014, we designated our foreign currency denominated debt as a hedge of our net investment in foreign subsidiaries to reduce the volatility in shareholders’ equity caused by changes in the Euro exchange rate with respect to the U.S. Dollar. As of December 31, 2015, these borrowings (net of original issue discount) were €1,127 million ($1,231 million). See Note 6 to the Consolidated Financial Statements included elsewhere in this Report for more information. A hypothetical 10% decrease in the value of the U.S. Dollar would lead to a potential loss in fair value of $123 million. However, this change in fair value would be offset by the change in fair value of the hedged portion of our net investment in foreign subsidiaries.

Interest Rate Risk

Since we borrow funds at both fixed and variable rates, we are subject to interest rate risk. We utilize interest rate caps and interest rate swaps to manage our risk from interest rate fluctuations. We have not hedged all of this exposure. The contractual value of our interest rate derivative instruments was approximately $1,617 million at December 31, 2015. The fair value of these derivative instruments is subject to change as a result of potential changes in interest rates. We assess our market risk based on changes in interest rates utilizing a sensitivity analysis. The sensitivity analysis measures the increase in annual interest expense based on a hypothetical 1% increase in interest rates. This increase would have amounted to approximately $11 million at December 31, 2015.

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Venezuela

In February 2013, the Venezuelan government announced the devaluation of its currency and the official exchange rate was adjusted from 4.30 Bolívars to each U.S. Dollar to 6.30. Our Swiss operating subsidiary, IMS AG, maintains certain account balances in Bolívars (mainly cash and cash equivalents). As these balances are held in a non-functional currency of IMS AG, we are required to mark-to-market these balances at each reporting date and reflect these movements as gains or losses in income. Less than 1% of our consolidated cash and cash equivalents balance as of December 31, 2015 was held in Venezuelan Bolívars. Since January 2010, Venezuela has been designated as hyper-inflationary, and as such, all foreign currency fluctuations are recorded in income for certain account balances at our local Venezuelan operating subsidiary. We recorded a pre-tax charge of approximately $14 million to Other income (loss), net in 2013 related to the remeasurement of the IMS AG Venezuelan Bolívar account balances and the remeasurement of certain local Venezuelan account balances.

In 2014, the Venezuelan government significantly expanded the use of the Supplementary Foreign Currency Administration System (“SICAD”) I exchange market and created a third exchange market called SICAD II, which we utilized to remeasure our Venezuelan Bolívar account balances beginning in June 2014. As a result of the change to the SICAD II rate, we recorded a pre-tax charge of $49 million to foreign exchange loss within Other income (loss), net in 2014. In February 2015, the Venezuelan government announced that the SICAD II market would no longer be available, and a new foreign exchange market system ("SIMADI") was created. SIMADI has exchange rates significantly less favorable than SICAD II. As a result of the change to the SIMADI rate, we recorded a pre-tax charge of $7 million to foreign exchange loss within Other income (loss), net in 2015. At December 31, 2015, the SIMADI rate was approximately 199 Bolívars to one U.S. Dollar. The net assets held and revenue generated by the Company’s Venezuelan subsidiaries were not material to the Company’s consolidated results as of December 31, 2015 and it is expected that the impact of future exchange rate adjustments will be immaterial to our consolidated results. We will continue to monitor any future impact of these mechanisms on the exchange rate we use to remeasure our Venezuelan subsidiary’s financial statements.

Venezuela has foreign exchange and price controls which have historically limited our ability to convert Bolívars to U.S. Dollars and transfer funds out of Venezuela. Additionally, government restrictions on the transfer of cash out of the country have limited our ability to repatriate cash; however, these restrictions have not impacted our ability to execute our business plans in Venezuela. It is not possible for us to predict the extent to which we may be affected by additional future changes in exchange rates and exchange controls imposed by the Venezuelan government.

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Item 8. Financial Statements and Supplementary Data

Index to Consolidated Financial Statements and Financial Statement Schedules

	Page
Management’s Report on Internal Control Over Financial Reporting	55
Report of Independent Registered Public Accounting Firm	56
Financial Statements:
Consolidated Statements of Financial Position as of December 31, 2015 and 2014	57
Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, 2015, 2014 and 2013	58
Consolidated Statements of Cash Flows for the Years Ended December 31, 2015, 2014 and 2013	59
Consolidated Statements of Shareholders’ Equity for the Years Ended December 31, 2015, 2014 and 2013	61
Notes to Consolidated Financial Statements	63
Financial Statement Schedules:
Schedule I. Condensed Financial Information	100
Schedule II. Valuation and Qualifying Accounts for the Years Ended December 31, 2015, 2014 and 2013	104

54

Management’s Report on Internal Control Over Financial Reporting

The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting 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.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate due to changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The Company’s management conducted an evaluation of the effectiveness of its internal control over financial reporting based on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Management excluded the businesses acquired from Cegedim, SA from its assessment of internal control over financial reporting as of December 31, 2015 because they were acquired by the Company in a purchase business combination during 2015. Total revenue and total assets of the businesses acquired from Cegedim SA excluded from our assessment represent 12% and 5%, respectively, of our total revenues and total assets as reported in our consolidated financial statements for the year ended and as of December 31, 2015. Based on its evaluation, the Company’s management concluded that the internal control over financial reporting was effective as of December 31, 2015.

The effectiveness of our internal control over financial reporting as of December 31, 2015 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears herein.

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Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of IMS Health Holdings, Inc.:

In our opinion, the consolidated financial statements listed in the accompanying indexpresent fairly, in all material respects, the financial position of IMS Health Holdings, Inc. and its subsidiaries at December 31, 2015 and December 31, 2014, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2015 in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedules listed in the accompanying index present fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company's management is responsible for these financial statements and financial statement schedules, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanyingManagement's Report on Internal Control Over Financial Reporting. Our responsibility is to express opinions on these financial statements, on the financial statement schedules, and on the Company's internal control over financial reporting based on our audits (which was an integrated audit in 2015). We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

As discussed in Note 2 to the consolidated financial statements, the Company changed the manner in which it presents its deferred taxes and debt issuance costs in 2015.

A company’s internal control over financial reporting is a process designed 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. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

As described in Management’s Report on Internal Control Over Financial Reporting, management has excluded the businesses acquired from Cegedim, SA (“Cegedim”) from its assessment of internal control over financial reporting as of December 31, 2015 because they were acquired by the Company in a purchase business combination during 2015. We have also excluded Cegedim from our audit of internal control over financial reporting. Total revenue and total assets of the businesses acquired from Cegedim represent 12% and 5%, respectively, of the related consolidated financial statement amounts for the year ended and as of December 31, 2015.

/s/ PricewaterhouseCoopers LLP

New York, New York

February 19, 2016

56

IMS HEALTH HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

	December 31,
(in millions, except per share data)	2015			2014
Assets
Current Assets:
Cash and cash equivalents	$	396		$	390
Accounts receivable, net		508			330
Other current assets		188			294
Total Current Assets		1,092			1,014
Property, plant and equipment, net		167			153
Computer software, net		309			258
Goodwill		3,604			3,417
Other identifiable intangibles, net		2,178			2,142
Other assets		109			112
Total Assets	$	7,459		$	7,096
Liabilities and Shareholders’ Equity
Current Liabilities:
Accounts payable	$	163		$	87
Accrued and other current liabilities		611			481
Current portion of long-term debt		59			50
Deferred revenues		200			167
Total Current Liabilities		1,033			785
Postretirement and postemployment benefits		109			95
Long-term debt		4,136			3,689
Deferred tax liability		526			904
Other liabilities		83			81
Total Liabilities		5,887			5,554
Commitments and Contingencies (Notes 12 and 13)
Shareholders’ Equity:
Common Stock, $0.01 par value, 700.0 shares authorized, 340.8 and     335.6 shares issued at December 31, 2015 and 2014, respectively		3			3
Capital in excess of par		2,038			1,975
Retained earnings (Accumulated deficit)		208			(209	)
Treasury stock, at cost, 12.6 and 0.8 shares at December 31, 2015 and    2014, respectively		(327	)		(10	)
Accumulated other comprehensive loss		(350	)		(217	)
Total Shareholders’ Equity		1,572			1,542
Total Liabilities and Shareholders’ Equity	$	7,459		$	7,096

The accompanying notes are an integral part of the Consolidated Financial Statements.

57

IMS HEALTH HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Years Ended December 31,
(in millions, except per share data)	2015			2014			2013
Revenue	$	2,921		$	2,641		$	2,544
Information		1,483			1,515			1,525
Technology services		1,438			1,126			1,019
Operating costs of information, exclusive of depreciation and amortization		666			665			648
Direct and incremental costs of technology services, exclusive of depreciation   and amortization		750			573			520
Selling and administrative expenses, exclusive of depreciation and amortization		712			721			596
Depreciation and amortization		341			441			410
Severance, impairment and other charges		88			33			16
Operating Income		364			208			354
Interest income		3			4			4
Interest expense		(169	)		(221	)		(332	)
Other income (loss), net		19			(276	)		(74	)
Non-Operating Loss, Net		(147	)		(493	)		(402	)
Income (loss) before income taxes		217			(285	)		(48	)
Benefit from income taxes		200			96			130
Net Income (Loss)	$	417		$	(189	)	$	82
Earnings (Loss) per Share Attributable to Common Shareholders:
Basic	$	1.26		$	(0.59	)	$	0.29
Diluted	$	1.23		$	(0.59	)	$	0.29
Weighted-Average Common Shares Outstanding:
Basic		331.0			319.0			280.0
Diluted		339.3			319.0			287.0
Comprehensive Income (Loss):
Net Income (Loss)	$	417		$	(189	)	$	82
Cumulative translation adjustment (net of taxes of  $(42), $(27) and $—, respectively)	$	(118	)	$	(178	)	$	(183	)
Unrealized gains on derivative instruments (net of taxes of $—, $— and $(4),   respectively)		1			2			9
Gains on derivative instruments, reclassified into earnings (net of taxes   of $9, $2 and $5, respectively)		(15	)		(4	)		(9	)
Postretirement and postemployment adjustments (net of taxes of $—, $13, and $(16),   respectively)		(1	)		(30	)		24
Other Comprehensive Loss	$	(133	)	$	(210	)	$	(159	)
Total Comprehensive Income (Loss)	$	284		$	(399	)	$	(77	)

The accompanying notes are an integral part of the Consolidated Financial Statements.

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IMS HEALTH HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Years Ended December 31,
(in millions)	2015			2014			2013
Cash Flows from Operating Activities:
Net Income (Loss)	$	417		$	(189	)	$	82
Adjustments to Reconcile Net Income (Loss) to Net Cash    from Operating Activities:
Depreciation and amortization		341			441			410
Loss on extinguishment of debt		—			79			9
Deferred income taxes		(294	)		(189	)		(206	)
Non-cash stock-based compensation charges		25			58			22
Foreign exchange loss on revaluation of foreign denominated debt		—			—			40
Non-cash (gains) losses on derivative instruments		(20	)		10			(10	)
Non-cash amortization of debt original issue discount and issuance costs		10			18			35
Loss on Venezuela remeasurement		7			49			14
Excess tax benefits from stock-based compensation		(11	)		—			—
Other		11			1			4
Change in assets and liabilities, excluding effects from acquisitions and dispositions:
Net (increase) decrease in accounts receivable		(25	)		(13	)		4
Net decrease (increase) in other current assets		19			(17	)		(9	)
Net decrease in accounts payable		(4	)		(17	)		(5	)
Net increase (decrease) in accrued and other current liabilities		15			(67	)		70
Net increase (decrease) in deferred revenues		4			(16	)		5
Increase in pension assets (net of liabilities)		(6	)		(12	)		(38	)
Decrease (increase) in other long-term assets (net of long-term liabilities)		1			(26	)		(13	)
Net Cash Provided by Operating Activities	$	490		$	110		$	414

The accompanying notes are an integral part of the Consolidated Financial Statements.

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IMS HEALTH HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

	Years Ended December 31,
(in millions)	2015			2014			2013
Cash Flows from Investing Activities:
Capital expenditures	$	(52	)	$	(72	)	$	(41	)
Additions to computer software		(131	)		(95	)		(81	)
Payments for acquisitions of businesses, net of cash acquired		(541	)		(58	)		(118	)
Purchases of short-term investments		—			—			(22	)
Proceeds from short-term investments		—			1			85
Purchase of interest rate caps		—			(21	)		—
Decrease in restricted cash		14			—			—
Other investing activities, net		(6	)		4			(3	)
Net Cash Used in Investing Activities		(716	)		(241	)		(180	)
Cash Flows from Financing Activities:
Borrowings under revolving credit facility		619			673			135
Repayments of revolving credit facility		(506	)		(458	)		(135	)
Proceeds from issuance of debt		496			499			750
Repayments of debt		(57	)		(1,783	)		(28	)
Debt issuance costs and amendment fees		(7	)		(22	)		(17	)
Contingent consideration and deferred purchase price payments		(7	)		(33	)		—
Dividends paid		—			—			(753	)
Proceeds from equity plan activity		27			17			1
Payments for treasury stock		(314	)		(3	)		(1	)
Excess tax benefits from stock-based compensation		11			—			—
Proceeds from initial public offering, net of costs		—			987			—
Other financing activities		—			—			(4	)
Net Cash Provided by (Used in) Financing Activities		262			(123	)		(52	)
Effect of Exchange Rate Changes on Cash and Cash Equivalents		(30	)		(81	)		(37	)
Increase (Decrease) in Cash and Cash Equivalents		6			(335	)		145
Cash and Cash Equivalents, Beginning of Period		390			725			580
Cash and Cash Equivalents, End of Period	$	396		$	390		$	725
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for interest	$	158		$	243		$	278
Cash paid during the period for income taxes		95			95			71
Cash received from income tax refunds		3			12			63

The accompanying notes are an integral part of the Consolidated Financial Statements.

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IMS HEALTH HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(in millions)	Shares Common Stock		Shares Treasury Stock			Common Stock		Treasury Stock			Capital in Excess of Par			Retained Earnings (Accumulated Deficit)			Cumulative Translation Adjustment			Unrealized Gains (Losses) on Derivative Instruments			(Gains) Losses on Derivative Instruments Reclassified into Earnings			Unamortized Postretirement and Postemployment Adjustment			Accumulated Other Comprehensive Gain (Loss)			Total Shareholders’ Equity
Balance, December 31, 2012		280.4		(0.4	)	$	3	$	(4	)	$	1,634		$	(102	)	$	192		$	(8	)	$	9		$	(41	)	$	152		$	1,683
Net income															82																		82
Issuances of common stock		0.1										2																					2
Repurchases of common stock				(0.1	)				(2	)																							(2	)
Stock-based compensation expense												22																					22
Dividends paid to shareholders, net of tax												(745	)																				(745	)
Cumulative translation    adjustments, net of tax																		(183	)											(183	)		(183	)
Unrealized gains on derivative instruments, net of tax																					9									9			9
Gains on derivative instruments    reclassified into earnings,    net of tax																								(9	)					(9	)		(9	)
Postretirement and   postemployment adjustments,   net of tax																											24			24			24
Balance, December 31, 2013		280.5		(0.5	)	$	3	$	(6	)	$	913		$	(20	)	$	9		$	1		$	-		$	(17	)	$	(7	)	$	883

The accompanying notes are an integral part of the Consolidated Financial Statements.

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IMS HEALTH HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Continued)

(in millions)	Shares Common Stock		Shares Treasury Stock			Common Stock		Treasury Stock			Capital in Excess of Par		Retained Earnings (Accumulated Deficit)			Cumulative Translation Adjustment			Unrealized Gains (Losses) on Derivative Instruments		(Gains) Losses on Derivative Instruments Reclassified into Earnings			Unamortized Postretirement and Postemployment Adjustment			Accumulated Other Comprehensive Gain (Loss)			Total Shareholders’ Equity
Balance, December 31, 2013		280.5		(0.5	)	$	3	$	(6	)	$	913	$	(20	)	$	9		$	1	$	-		$	(17	)	$	(7	)	$	883
Net loss														(189	)																(189	)
Issuances of common stock		55.1										1,003																			1,003
Repurchases of common stock				(0.3	)				(4	)		1																			(3	)
Stock-based compensation expense												58																			58
Cumulative translation    adjustments, net of tax																	(178	)										(178	)		(178	)
Unrealized gains on derivative instruments, net of tax																				2								2			2
Gains on derivative instruments    reclassified into earnings,    net of tax																						(4	)					(4	)		(4	)
Postretirement and   postemployment adjustments,   net of tax																									(30	)		(30	)		(30	)
Balance, December 31, 2014		335.6		(0.8	)	$	3	$	(10	)	$	1,975	$	(209	)	$	(169	)	$	3	$	(4	)	$	(47	)	$	(217	)	$	1,542
Net income														417																	417
Issuances of common stock		5.2										27																			27
Repurchases of common stock				(11.8	)				(317	)																					(317	)
Stock-based compensation expense												25																			25
Net tax benefit on stock-based    compensation												11																			11
Cumulative translation    adjustments, net of tax																	(118	)										(118	)		(118	)
Unrealized gains on derivative instruments, net of tax																				1								1			1
Gains on derivative instruments    reclassified into earnings,    net of tax																						(15	)					(15	)		(15	)
Postretirement and   postemployment adjustments,   net of tax																									(1	)		(1	)		(1	)
Balance, December 31, 2015		340.8		(12.6	)	$	3	$	(327	)	$	2,038	$	208		$	(287	)	$	4	$	(19	)	$	(48	)	$	(350	)	$	1,572

The accompanying notes are an integral part of the Consolidated Financial Statements.

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IMS HEALTH HOLDINGS, INC.

Notes to Consolidated Financial Statements

Note 1. Business and Basis of Presentation

Background

IMS Health Holdings, Inc. (the “Company”) is a leading global information and technology services company providing clients in the healthcare industry with comprehensive solutions to measure and improve their performance. The Company has one of the largest and most comprehensive collections of healthcare information in the world, spanning sales, prescription and promotional data, medical claims, electronic medical records and social media. The Company standardizes, organizes, structures and integrates this data by applying its sophisticated analytics and leveraging its global technology infrastructure to help its clients run their organizations more efficiently and make better decisions to improve their operational and financial performance. The Company has a presence in over 100 countries and generated 61% of its 2015 revenue from outside the United States.

The Company serves key healthcare organizations and decision makers around the world, spanning the breadth of life science companies, including pharmaceutical, biotechnology, consumer health and medical device manufacturers, as well as distributors, providers, payers, government agencies, policymakers, researchers and the financial community. The Company’s information and technology services offerings, which it has developed with significant investment over its 60+ year history, are deeply integrated into its clients’ workflow.

On October 23, 2009, the Company was formed as Healthcare Technology Holdings, Inc. by investment entities affiliated with TPG Global, LLC, CPP Investment Board Private Holdings Inc. and Leonard Green & Partners, L.P (collectively, the “Sponsors”). In December 2013, the Company changed its name to IMS Health Holdings, Inc. On February 26, 2010, the Company acquired 100% of the outstanding shares of IMS Health Incorporated (“IMS Health” or “predecessor entity”) through its wholly owned subsidiary Healthcare Technology Acquisition, Inc. (the “Merger”). The Company was formed for the purpose of consummating the Merger with IMS Health and had no operations from inception other than its investment in IMS Health and its subsidiaries and costs incurred associated with its formation and the Merger.

Initial Public Offering

In April 2014, the Company completed its Initial Public Offering (“IPO”) of its common stock and raised net proceeds of approximately $987 million, after deducting underwriting discounts, commissions and related expenses totaling $53 million. Substantially all of the Company’s net proceeds of the IPO, approximately $500 million of borrowings under new term loans, $140 million of borrowings under the revolving credit facility and approximately $400 million of cash on the balance sheet were used to (i) fund the redemption of the Company’s 12.5% Senior Notes and Senior PIK Notes (defined in Note 7 below) and pay related fees and expenses, (ii) pay $30 million in the aggregate to holders of outstanding cash settled stock appreciation rights (“Phantom SARs”) granted under the Company’s 2010 Equity Incentive Plan (the “2010 Equity Plan”) and (iii) pay a one-time fee of $72 million to terminate the management services agreement with the Sponsors. As of December 31, 2015, the Sponsors collectively remained the majority shareholders of the Company.

Basis of Presentation

The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain prior year amounts have been reclassified to conform to the 2015 presentation. Amounts presented in the Consolidated Financial Statements may not add due to rounding.

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Notes to Consolidated Financial Statements - Continued

Note 2. Summary of Significant Accounting Policies

Consolidation.  The Consolidated Financial Statements of the Company include the accounts of the Company, its subsidiaries and investments in which the Company has control. Intercompany accounts and transactions are eliminated in consolidation. The Company recognizes in the income statement any gains or losses related to investments accounted for under the equity method.

Cash and cash equivalents and restricted cash.  Cash and cash equivalents include primarily time and demand deposits in the Company’s operating bank accounts. The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be cash equivalents. Restricted cash consists of amounts not immediately available.

Property, plant and equipment.  Buildings, machinery and equipment are recorded at cost and depreciated over their estimated useful lives to their salvage values using the straight-line method. Leasehold improvements are recorded at cost and amortized on a straight-line basis over the shorter of the term of the lease or the estimated useful life of the improvement. See Note 14.

Computer software.  Direct costs incurred in the development of the Company’s internal-use computer software are capitalized. Costs are capitalized from completion of the preliminary project stage and when it is considered probable that the software will be used to perform its intended function, up until the time the software is placed into service. Once placed into service, the software is amortized generally over a period of three to fifteen years. The Company periodically reviews the unamortized capitalized costs of its computer software to assess for any potential impairment. The Company recognizes immediately any impairment losses on software as a result of its review. Research and development costs are expensed in the periods in which they are incurred.

Business combinations.  Business combinations are accounted for using the acquisition method, and accordingly, the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree are recorded at their estimated fair values on the date of acquisition. Acquisition-related costs are expensed as incurred and recorded in selling and administrative expense, exclusive of depreciation and amortization. The Consolidated Financial Statements include the results of the acquisitions subsequent to each of their closings.

Goodwill.  Goodwill represents the excess purchase price over the fair value of identifiable net assets of businesses acquired, and is not amortized. The Company reviews the recoverability of goodwill annually (or based on any triggering event). To analyze goodwill for impairment, the Company must assign its goodwill to individual reporting units. Identification of reporting units, considers, among other things, the manner in which the Company operates its business and the availability of discrete financial information.

For its impairment test as of October 1, 2015, the Company utilized a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value which includes, but is not limited to, consideration of the results of its most recent quantitative impairment test, consideration of macroeconomic conditions, industry and market conditions, cost factors, cash flows, changes in key Company personnel and its share price.

For its impairment tests as of October 1, 2014 and 2013, the Company utilized a quantitative goodwill impairment test, which requires estimating fair value of a reporting unit based on a discounted cash flow analysis. A discounted cash flow analysis requires the Company to make various judgmental assumptions, including assumptions about the timing and amount of future cash flows, growth rates and discount rates. If the carrying amount of the reporting unit exceeds its fair value, the goodwill impairment loss is measured as the excess of the carrying value of goodwill over its fair value.

Based on its annual impairment tests in 2015, 2014 and 2013, no goodwill impairment charges were recorded. See Note 4.

Other long-lived assets.  The Company reviews the recoverability of its long-lived assets and identifiable intangibles held and used whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In general, the assessment of possible impairment is based on the Company’s ability to recover the carrying value of the asset from the undiscounted expected future cash flows of the asset. If the future cash flows are less than the carrying value of such asset, an impairment charge is recognized for the difference between the estimated fair value and the carrying value. In addition, the Company also reviews its indefinite-lived intangible assets on an annual basis.

Revenue recognition.  The Company recognizes revenue when the following criteria have been met: 1) persuasive evidence of an arrangement exists; 2) delivery has occurred or services have been rendered; 3) the seller’s price to the buyer is fixed or determinable; and 4) collectibility is reasonably assured.

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Notes to Consolidated Financial Statements - Continued

The Company offers various information offerings developed to meet its clients’ needs by using data secured from a worldwide network of suppliers. The Company’s revenue arrangements may include multiple elements. A typical information offerings arrangement (primarily under fixed-price contracts) may include an ongoing subscription-based deliverable for which revenue is recognized ratably as earned over the contract period, and/or a one-time delivery of data offerings for which revenue is recognized upon delivery, assuming all other criteria are met. The Company’s subscription arrangements typically have terms ranging from one to three years and are generally non-cancelable and do not contain refund-type provisions.

The Company also offers technology services offerings that enable its clients to make informed business decisions. Technology services offerings consist of a mix of small and large-scale services and consulting projects, multi-year outsourcing contracts and Software-as-a-Service (“SaaS”) licenses. These arrangements typically have terms ranging from several weeks to three years, with a majority having terms of one year or less. Revenues for services engagements where deliverables occur ratably over time are recognized on a straight-line basis over the term of the arrangement. Revenues from time and material contracts are recognized as the services are provided. Revenues from fixed price ad hoc services and consulting contracts are recognized either over the contract term based on the ratio of the number of hours incurred for services provided during the period compared to the total estimated hours to be incurred over the entire arrangement (efforts based), or upon delivery (completed contract).

The deliverables in multi-element arrangements qualify as separate units of accounting as each has value on a standalone basis to the client, objective and reliable evidence of fair value for any undelivered item(s) exists, and where the arrangement includes a general right of return relative to the delivered item(s), delivery of the undelivered item(s) is probable and within the Company’s control. The Company allocates revenue to each element within its arrangements based upon their respective relative selling price. Fair values for these elements are based upon the normal pricing practices for these offerings when sold separately. The Company defers revenue for any undelivered elements, and recognizes revenue when the product is delivered or over the term of the agreement, in accordance with its revenue recognition policy for such element as noted above.

The Company presents its revenues net of taxes assessed by government authorities.

Payment terms vary by client, but are typically stipulated in the contract and are generally invoiced with 30 day payment terms. The Company generally does not offer extended payment terms. Advance payments from clients are credited to Deferred revenues and reflected in Revenue as earned over the contract term. Unbilled receivables are included in Accounts receivable, net in the Consolidated Statements of Financial Position and represent revenues for products delivered or services performed that have not yet been invoiced to the client. Unbilled receivables are generally invoiced within the following month.

Operating costs of information.  Operating costs of information includes costs attributable to personnel involved in production, data management and delivery, and the costs of acquiring and processing data for the Company’s information offerings. One of the Company’s major expenditures is the cost for the data it receives from suppliers. After receipt of the raw data and prior to the data being available for use in any part of the business, the Company is required to transform the raw data into useful information through a series of comprehensive processes. These processes involve significant employee costs and data processing costs. Costs associated with purchases are deferred within work-in-process inventory and recognized as expense as the corresponding data product revenue is recognized, generally over a thirty to sixty day period.

Direct and incremental costs of technology services.  Direct and incremental costs of technology services include costs of staff directly involved with delivering technology-related, consulting and services generating offerings and engagements, related accommodations and the costs of data purchased specifically for technology services engagements. Direct and incremental costs of technology services do not include an allocation of direct costs of data that are included in operating costs of information. Although the Company’s data, the costs of which are included in Operating costs of information, is used in multiple client solutions across different offerings within both information and technology services, the Company does not have a meaningful way to allocate the direct cost of the data between information and technology services. As such, the direct and incremental costs of technology services do not reflect the total costs incurred to deliver technology services engagements.

Restructuring activities.  The Company records a liability for significant costs associated with restructuring activities, including employee severance and related benefits, lease termination costs, asset impairments and other qualifying exit costs, when such costs are deemed probable and estimable. Employee severance benefits are calculated pursuant to the terms of established employee protection plans, in accordance with local statutory minimum requirements or individual employee contracts, as applicable. These charges are included in Severance, impairment and other charges, a component of operating income, on the Consolidated Statements of Comprehensive Income (Loss).

Pensions and other postretirement benefits.  The Company provides a number of retirement benefits to its employees, including defined benefit pension plans and postretirement medical plans. The determination of benefit obligations and expense is based on

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Notes to Consolidated Financial Statements - Continued

actuarial models. In order to measure benefit costs and obligations using these models, critical assumptions are made with regard to the discount rate, expected return on plan assets, cash balance crediting rate, lump sum conversion rate and the assumed rate of compensation increases. In addition, retiree medical care cost trend rates are a key assumption used exclusively in determining costs for the Company’s postretirement health care and life insurance benefit plans. Management reviews these critical assumptions at least annually. Other assumptions involve demographic factors such as the turnover, retirement and mortality rates. Management reviews these assumptions periodically and updates them when its experience deems it appropriate to do so.

The discount rate is the rate at which the benefit obligations could be effectively settled and is determined annually by management. For U.S. plans, the discount rate is based on results of a modeling process in which the plans’ expected cash flow (determined on a projected benefit obligation basis) is matched with spot rates developed from a yield curve comprised of high-grade (Moody’s Aa and above, or Standard and Poor’s AA and above) non-callable corporate bonds to develop the present value of the expected cash flow, and, prior to December 31, 2015, then determining the single rate (discount rate) which when applied to the expected cash flow derives that same present value. In the U.K. specifically, the discount rate is set based on the yields on a universe of approximately 120 high quality (Aa rated) non-callable corporate bonds denominated in U.K. Sterling, appropriate to the duration of Plan liabilities. For the other non-U.S. plans, the discount rate is based on the current yield of an index of high quality corporate bonds. At December 31, 2015, the discount rate ranged from 3.00% to 4.57% compared to 2.60% to 3.90% at December 31, 2014 for its U.S. pension plans and postretirement benefit plan. The discount rate for its U.K. pension plan increased to 3.89% at December 31, 2015 from 3.80% at December 31, 2014. The U.S. and U.K. plans represent approximately 90% of the consolidated benefit obligation as of December 31, 2015. The discount rates in other non-U.S. countries increased, as the range of applicable discount rates was 0.60% to 5.00% at December 31, 2015, compared to 0.50% to 4.60% at December 31, 2014.

In 2016, the Company will change its approach of how it estimates the service and interest cost components of net periodic benefit cost for its U.S. and U.K. pension benefit plans. Previously, the Company estimated the service and interest cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation. The new estimate utilizes a full yield curve approach in the estimation of these components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to each of the underlying projected cash flows based on time until payment. The new estimate provides a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows and their corresponding spot rates. The change does not affect the measurement of the Company’s U.S. and U.K. pension benefit obligations and it is accounted for as a change in accounting estimate, which is applied prospectively.

Under the U.S. qualified retirement plan, participants have a notional retirement account that increases with pay and investment credits. The rate used to determine the investment credit (cash balance crediting rate) varies monthly and is equal to 1/12th of the yield on 30-year U.S. Government Treasury Bonds, with a minimum of 0.25%. At retirement, the account is converted to a monthly retirement benefit.

In selecting an expected return on plan asset assumption, the Company considers the returns being earned by each plan investment category in the fund, the rates of return expected to be available for reinvestment and long-term economic forecasts for the type of investments held by the plan. The expected return on plan assets for the U.S. pension plans was 8.0% at January 1, 2016 and January 1, 2015. Outside the U.S., the range of applicable expected rates of return was 1.0% to 5.5% as of January 1, 2016 compared to 1.0% to 6.0% as of January 1, 2015. The actual return on plan assets will vary from year to year versus this assumption. The Company believes it is appropriate to use long-term expected forecasts in selecting the expected return on plan assets. As such, there can be no assurance that the Company’s actual return on plan assets will approximate the long-term expected forecasts. While the Company believes that the assumptions used are reasonable, differences in actual experience or changes in assumptions may materially affect its pension and postretirement obligations and future expense.

The Company’s estimated long-term rate of return on plan assets is based on the principles of capital market theory which maintain that over the long run, prudent investment risk taking is rewarded with incremental returns and that combining non-correlated assets can maximize risk adjusted portfolio returns. Long-term return estimates are developed by asset category based on actual class return data, historical relationships between asset classes and risk factors and peer plan data. Long-term return estimates for the Company’s U.K. pension plan are developed by asset category based on actual class return data, historical relationships between asset classes and risk factors.

The Company utilizes a corridor approach to amortizing unrecognized gains and losses in the pension and postretirement plans. Amortization occurs when the accumulated unrecognized net gain or loss balance exceeds the criterion of 10% of the larger of the beginning balances of the projected benefit obligation or the market-related value of the plan assets. The excess unrecognized gain or loss balance is then amortized using the straight-line method over the average remaining service-life of active employees expected to receive benefits. At December 31, 2015, the weighted-average remaining service-life of active employees was approximately 25 years.

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Notes to Consolidated Financial Statements - Continued

Additional information on pension and other postretirement benefit plans is contained in Note 8.

Debt fees.  Costs incurred to issue debt are generally deferred and amortized as a component of interest expense over the estimated term of the related debt using the effective interest rate method.

Foreign currency.  The Company has significant investments in non-U.S. countries. Therefore, changes in the value of foreign currencies affect the Company’s Consolidated Financial Statements when translated into U.S. Dollars. For all operations outside the U.S. where the Company has designated the local currency as the functional currency, assets and liabilities are translated using end-of-period exchange rates; revenues, expenses and cash flows are translated using average rates of exchange prevailing during the period the transactions occurred. Translation gains and losses are included as an adjustment to the accumulated other comprehensive income (loss) (“AOCI”) component of Shareholders’ Equity. In addition, gains and losses from foreign currency transactions, such as those resulting from the settlement and revaluation of third-party and intercompany foreign receivables and payables, are included in the determination of net income (loss).

For operations in countries that are considered to be highly inflationary or where the U.S. Dollar is designated as the functional currency, monetary assets and liabilities are remeasured using end-of-period exchange rates, whereas non-monetary accounts are remeasured using historical exchange rates, and all remeasurement and transaction adjustments are recognized in Other income (loss), net.

Income taxes.  The Company operates in more than 100 countries around the world and its earnings are taxed at the applicable income tax rate in each of those countries. The Company provides for income taxes utilizing the asset and liability method of accounting for income taxes. Under this method, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each balance sheet date, based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. If it is determined that it is more likely than not that future tax benefits associated with a deferred tax asset will not be realized, a valuation allowance is provided. In the event the Company was to determine that it would be able to realize its deferred tax assets in the future in excess of its net recorded amount, an adjustment to the deferred tax asset would increase income in the period such determination was made. Likewise, should the Company determine that it would not be able to realize all or part of its net deferred tax asset in the future, an adjustment to the deferred tax asset would be charged to income in the period such determination was made. The effect on deferred tax assets and liabilities of a change in the tax rates is recognized in income in the period that includes the enactment date. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. See Note 11 for additional information.

Stock-based compensation.  The Company maintains an equity incentive plan, which provides for the grant of stock options (including incentive stock options), stock appreciation rights, restricted and deferred stock (including restricted stock units), dividend equivalents, other stock-based awards and performance awards, including annual incentive awards. The Company is required to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. For performance-based awards, stock-based compensation expense is adjusted over time based on the Company’s assessment of the probability of achieving the financial targets. The value of the portion of the award that is ultimately expected to vest is recognized as expense either on a straight-line basis over the requisite service period of the award or on a graded vesting basis (performance-based awards) in the Company’s Consolidated Statements of Comprehensive Income (Loss). As the stock-based compensation is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. The Company is required to estimate the forfeitures at the time of grant and revise, if necessary, in subsequent periods if actual forfeitures differ from those estimates. See Note 10 for additional information.

Computation of earnings (loss) per share.  Basic earnings (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed, when the result is dilutive, using the weighted-average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares primarily consist of employee stock options and restricted stock units.

Employee equity share options, restricted stock units, performance shares and similar equity instruments granted by the Company are treated as potential common shares outstanding in computing diluted earnings per share. Diluted shares outstanding include restricted stock units and the dilutive effect of in-the-money options which is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of benefits that would be recorded in additional paid-in capital when the award becomes deductible for tax purposes are assumed to be used to repurchase shares.

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Notes to Consolidated Financial Statements - Continued

In periods of net loss, basic loss per share and diluted loss per share are the same since the effect of potential common shares is anti-dilutive and therefore excluded. See Note 17 for additional information.

Treasury stock.  The Company records treasury stock purchases under the cost method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid in capital. If the Company reissues treasury stock at an amount below its acquisition cost and additional paid in capital associated with prior treasury stock transactions is insufficient to cover the difference between the acquisition cost and the reissue price, this difference is recorded against retained earnings. See Note 9 for additional information.

Legal costs.  Legal costs are expensed as incurred.

Reportable segments.  The Company’s operations consist of one reportable segment, which represents management’s view of the Company’s operations based on its management and internal reporting structure. See Note 16 for additional information.

Use of estimates.  The preparation of financial statements and related disclosures in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and the related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates. The most significant estimates relate to allowances, depreciation of fixed assets including salvage values, carrying value of goodwill and intangible assets, provision for income taxes and tax assets and liabilities, reserves for severance, pensions and reserves for employee benefits, stock-based compensation, contingencies and litigation. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The accounting estimates used in the preparation of the Company’s Consolidated Financial Statements will change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. Actual results could vary from the estimates and assumptions used in the preparation of the Consolidated Financial Statements.

Recently Issued Accounting Standards

In November 2015, the Financial Accounting Standards Board (“FASB”) issued guidance on the balance sheet classification of deferred taxes. The guidance requires deferred tax assets and deferred tax liabilities be presented as noncurrent in a classified statement of financial position, instead of separately presenting deferred tax assets and deferred tax liabilities as current and noncurrent. The Company early-adopted the guidance effective December 31, 2015 on a prospective basis, and as such, prior periods were not restated on adoption.

In September 2015, the FASB issued guidance that eliminates the requirement to restate prior period financial statements for measurement period adjustments and requires the cumulative impact of a measurement period adjustment to be recognized in the reporting period in which the adjustment is identified. The guidance will be applied prospectively and is effective for the Company’s interim and annual periods beginning after December 15, 2015. The Company early-adopted the guidance during the fourth quarter ended December 31, 2015 with no material effect on the Consolidated Statement of Comprehensive Income (Loss). See Note 3 for more information regarding measurement period adjustments recorded during the three months ended December 31, 2015.

In May 2014, the FASB issued revised guidance on the recognition of revenue from contracts with customers. The guidance provides that revenue should be recognized for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires enhanced disclosures. In August 2015, the FASB delayed the effective date of the guidance to interim and annual periods beginning January 1, 2018. Earlier adoption is permitted. The Company is currently evaluating the impact of this new standard on its Consolidated Financial Statements, as well as the method of transition that it will use in adopting the new standard.

In May 2015, the FASB updated the accounting standards related to fair value measurement for investments that are measured at net asset value. The update eliminates the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share as a practical expedient. In addition, the update limits disclosures to investments for which the entity elected to measure the fair value using the practical expedient rather than all eligible investments. The update is effective beginning in the first quarter of 2016, with early adoption permitted, and will be applied retrospectively. The standard will only impact disclosures related to certain assets held by its pension plans and will not impact the Company’s consolidated financial results.

In April 2015, the FASB issued guidance to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. Under the new guidance, if a cloud computing arrangement includes a software license, then the customer

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Notes to Consolidated Financial Statements - Continued

should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance is effective for the Company’s interim and annual periods beginning after December 15, 2015. Early adoption is permitted. The Company does not believe the adoption of this guidance will have a material impact on its financial results.

Also in April 2015, the FASB issued guidance on the presentation of debt issuance costs. The guidance requires the presentation of debt issuance costs as a direct deduction from the related debt liability rather than as an asset. In August 2015, the FASB clarified the guidance that debt issuance costs related to line-of-credit arrangements could continue to be presented as an asset and be subsequently amortized over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the arrangement. The guidance is effective for the Company’s interim and annual periods beginning after December 15, 2015 and requires retrospective application to all prior periods presented. The Company adopted the guidance effective December 31, 2015 and presented $51 million and $54 million, respectively, of debt issuance costs as a direct deduction to the debt liability as of December 31, 2015 and 2014. The Company continues to present the unamortized debt issuance costs for its revolving credit facility in Other assets. This change in accounting principle did not have an impact on the Company’s results of operations, cash flows or stockholders’ equity.

In April 2014, the FASB issued guidance which changed the criteria for reporting discontinued operations and modifies the related disclosure requirements. Additionally, the new guidance requires that a business which qualifies as held for sale upon acquisition should be reported as discontinued operations. Adoption of this guidance, which was applied prospectively, on January 1, 2015 did not have a material impact on our Consolidated Financial Statements.

Note 3. Acquisitions

The Company makes acquisitions to enhance its capabilities and offerings in certain areas, including technology services.

2015

On April 1, 2015, the Company completed the acquisition of certain customer relationship management (“CRM”) and strategic data businesses of Cegedim, SA (“Cegedim” and the “Cegedim acquisition”) at a price of €385 million plus an initial working capital adjustment of €11 million (or $426 million). In December 2015, the Company made a payment of €17 million, or approximately $19 million, to Cegedim, SA for an additional working capital adjustment, as part of the purchase agreement, bringing the purchase price to approximately $445 million. The acquisition included Cegedim’s (i) CRM solutions that help life sciences clients drive sales effectiveness, optimize marketing programs across multiple channels and mitigate regulatory compliance risks; (ii) OneKey Reference Database that provides insights on healthcare professionals across the globe; and (iii) information solutions that use primary market research. The acquisition was financed through a combination of existing cash and net proceeds from the Company’s 4.125% senior unsecured notes issued in March 2015 (the “4.125% Senior Notes”). See Note 7 for additional information on the 4.125% Senior Notes. The Company believes that the acquisition further enhances its software development, data warehousing, mobile applications and business intelligence tools, as well as analytics and implementation services.

During the fourth quarter of 2015, the Company recorded adjustments to its preliminary purchase price allocation as well as related deferred tax effects, including reducing the amount of identifiable intangible assets by $68 million due to the finalization of underlying assumptions used to value the asset. These adjustments did not have a material impact on the Company’s Consolidated Statement of Comprehensive Income (Loss).

The following table summarizes the purchase price allocation to the estimated fair values of the assets acquired and liabilities assumed for the Cegedim acquisition.

(in millions)
Cash	$	89
Accounts receivable		127
Other current assets		23
Property, plant and equipment		16
Goodwill		183
Identifiable intangible assets		190
Other assets		44
Liabilities assumed		(227	)
Total purchase price allocation	$	445

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Notes to Consolidated Financial Statements - Continued

Identifiable intangible assets and their estimated useful lives consist of the following:

(in millions)	Useful life	Amount
Client relationships	10-15 years	$	66
Databases	5 years		86
Computer software	2-10 years		26
Trade names	10-15 years		12
Total intangible assets		$	190

The fair values for the intangible assets and property, plant and equipment acquired were primarily based on significant inputs that are not observable in the market and thus represent a Level 3 measurement in the fair value hierarchy. Client relationships, trade names and technology were valued using the income approach, which estimates the fair value based on the cash flows that an asset can be expected to generate over its remaining useful life. Key assumptions included forecasted revenues, expenses and cash flows; terminal period revenue growth and cash flows; weighted average cost of capital and discount rate. The cost approach, which estimates value by determining the current cost of replacing an asset with another of equivalent economic utility, was used for databases and property, plant and equipment.

Goodwill is attributable to the value of the synergies between the acquired company and IMS Health. The Company anticipates that the majority of the value assigned to goodwill will not be deductible for tax purposes.

The Company incurred acquisition-related costs for the Cegedim acquisition of $6 million during the year ended December 31, 2015.

Pro forma information

The following pro forma information presents the financial results as if the acquisition of Cegedim had occurred on January 1, 2014, with pro forma adjustments to give effect to an increase in Selling and administrative expenses for acquisition-related costs, additional depreciation and amortization for fair value adjustments of property, plant and equipment and intangible assets, an increase in interest expense from acquisition financing, and related tax effects. The pro forma results do not include any anticipated cost synergies, costs or other effects of the planned integration of Cegedim. Accordingly, such pro forma amounts are not necessarily indicative of the results that actually would have occurred for the periods presented below had the Cegedim acquisition been completed on January 1, 2014, nor are they indicative of the future operating results of the Company.

	Years Ended December 31,
(in millions)		2015		2014
Revenues	$	3,039	$	3,230
Net income (loss)		418		(473	)
Basic earnings (loss) per share		1.26		(1.48	)
Diluted earnings (loss) per share		1.23		(1.48	)

The Company’s Consolidated Statements of Comprehensive Income (Loss) for the year ended December 31, 2015 included $346 million of revenues related to the Cegedim acquisition. The revenue reflected a reduction of $5 million for the year ended December 31, 2015 related to deferred revenue adjustments to fair value. Following the closing of the Cegedim acquisition, the Company began integrating Cegedim’s operations, and as such, computing a separate measure of Cegedim’s stand-alone profitability for periods after the acquisition date is impracticable.

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Notes to Consolidated Financial Statements - Continued

Other acquisitions

In addition to the Cegedim acquisition, the Company also completed fourteen unrelated individually immaterial acquisitions during 2015, four of which occurred in the fourth quarter of 2015. These acquisitions expanded the Company’s existing capabilities in technology services offerings, and to a lesser degree, information offerings. The purchase price allocations for some of these acquisitions will be finalized after the completion of the valuation of certain intangible assets and any adjustments to the preliminary purchase price allocation are not expected to have a material impact on the Company’s results of operations. The Consolidated Financial Statements include the results of the acquisitions subsequent to closing. As these acquisitions were immaterial to the Company’s operating results both individually and in the aggregate, pro forma results of operations are not provided.

During the years ended December 31, 2014 and 2013, the Company completed five and ten, respectively, unrelated individually immaterial acquisitions to strengthen our product offerings. Had these acquisitions occurred as of January 1, 2013 and 2012, respectively, the impact on the Company’s results of operations would not have been material.

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	December 31,
(in millions)	Period	2015		2014		2013
Total cost of acquisitions, net of cash acquired(1)		$	201	$	61	$	168
Acquisition-related costs			8		3		10
Amounts recorded in the Consolidated Statements of Financial   Position:
Goodwill		$	106	$	31	$	124
Portion of goodwill deductible for tax purposes			35		21		46
Computer software	5 years		15		2		16
Intangible assets:
Client relationships	10-20 years	$	100	$	18	$	24
Covenant not to compete	1-5 years		10		12		7
Databases	1-5 years		4		5		1
Trade names	3-8 years		2		—		5
Total intangible assets		$	116	$	35	$	37

⁽¹⁾ Total cost of acquisitions includes contingent consideration and deferred purchase price payments.

Contingent Consideration

Under the terms of certain acquisition-related purchase agreements, the Company may be required to pay additional amounts as contingent consideration based on the achievement of certain financial performance related metrics, ranging from $0 to $46 million through 2018. The Company’s contingent consideration recorded on the balance sheet was approximately $28 million and $24 million at December 31, 2015 and 2014, respectively. The fair value measurement of this contingent consideration is classified within Level 3 of the fair value hierarchy (see Note 6) and reflects the Company’s own assumptions in measuring fair values using the income approach. In developing these estimates, the Company considered certain performance projections, historical results, and industry trends. The liabilities are remeasured each reporting period and changes in the fair value estimates are included in Selling and administrative expenses.

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Notes to Consolidated Financial Statements - Continued

Note 4. Goodwill and Identifiable Intangible Assets

The following table sets forth changes in the Company’s goodwill for the years ended December 31, 2015 and 2014.

(in millions)	Goodwill
Balance at December 31, 2013	$	3,573
Goodwill assigned in purchase price allocations (see Note 3)		31
Foreign currency translation adjustments and other		(187	)
Balance at December 31, 2014	$	3,417
Goodwill assigned in purchase price allocations (see Note 3)		289
Foreign currency translation adjustments and other		(102	)
Balance at December 31, 2015	$	3,604

Intangible assets that have finite useful lives are amortized using the straight-line method over periods ranging from two to twenty years. The gross carrying amounts, related accumulated amortization and the weighted average amortization periods of the Company’s intangible assets are listed in the following table:

	December 31, 2015							December 31, 2014
(in millions)	Gross Carrying Amount		Accumulated Amortization			Weighted Average Amortization Period (Years)		Gross Carrying Amount		Accumulated Amortization
Databases	$	738	$	(652	)		1	$	679	$	(639	)
Client relationships		2,181		(714	)		13		2,051		(592	)
Trade names (finite-lived)		151		(46	)		13		142		(38	)
Trade names (indefinite-lived)		503		—		N/A			523		—
Covenants not to compete and other		39		(22	)		2		32		(16	)
Total Intangible Assets	$	3,612	$	(1,434	)		10	$	3,427	$	(1,285	)

Intangible asset amortization expense was $180 million, $290 million and $287 million during the years ended December 31, 2015, 2014 and 2013. Based on current estimated useful lives, amortization expense associated with intangible assets at December 31, 2015 is estimated to be as follows:

	Year Ended December 31,
(in millions)	2016		2017		2018		2019		2020		Thereafter
Amortization expense	$	180	$	167	$	163	$	161	$	120	$	884

Note 5. Severance, Impairment and Other Charges

Severance

As a result of ongoing cost reduction efforts, the Company recorded severance charges consisting of global workforce reductions to streamline its organization. The following table sets forth the activity in the Company’s severance-related reserves:

(in millions)	2015 Plan(1)			2013 and 2014 Plans(2)
Balance at December 31, 2013	$	—		$	12
Charges		—			22
Cash payments		—			(16	)
Balance at December 31, 2014		—			18
Charges		76			—
Cash payments		(25	)		(14	)
Balance at December 31, 2015	$	51		$	4

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Notes to Consolidated Financial Statements - Continued

⁽¹⁾ In 2015, the Company implemented a restructuring plan (the “2015 Plan”) and recorded pre-tax severance charges of $76 million, $33 million of which was recorded in the fourth quarter of 2015. The Company expects that cash outlays related to the 2015 Plan will be substantially complete by the end of 2017.

⁽²⁾ In December 2013, the Company implemented a restructuring plan (the “2013 Plan”) and recorded a pre-tax severance charge of $12 million. In 2014, the Company implemented a restructuring plan (the “2014 Plan”) and recorded pre-tax severance charges of $22 million, $3 million of which was recorded in the fourth quarter of 2014. The Company expects that cash outlays related to the 2013 and 2014 Plans will be substantially complete by the end of 2016.

Other Charges

During 2015, the Company recorded impairment charges of $12 million, of which $5 million was recorded in the fourth quarter. The charges are primarily comprised of the write-off of the value of computer software that was no longer in use for $9 million and contract-related charges for which the Company will not realize any future economic benefits for $3 million.

During 2014, the Company recorded impairment charges of $11 million, of which $8 million related to impaired leases for properties in the United States and $3 million for the write-down of certain assets and contract-related charges for which the Company will not realize any future economic benefits.

During 2013, the Company recorded impairment charges of $10 million, $7 million of which related to impaired leases for properties vacated in the United States and $3 million for contract-related charges for which the Company will not realize any future economic benefits. Of the $7 million charge for impaired leases, $3 million was recorded in the fourth quarter of 2013.

Estimated future funding requirements for the Company related to severance, impairment and other charges are $56 million in fiscal 2016 and $1 million in fiscal 2017.

Note 6. Derivatives and Fair Value

Foreign Exchange Risk Management

The Company transacts business in more than 100 countries and is subject to risks associated with fluctuating foreign exchange rates. The Company’s objective is to reduce earnings and cash flow volatility associated with foreign exchange rate movements. Accordingly, the Company enters into foreign currency forward contracts to minimize the impact of foreign exchange movements on non–functional currency assets and liabilities and to hedge non-U.S. Dollar anticipated royalties (“Royalty Hedging”). Additionally, through March 2014, the Company utilized foreign currency forward contracts to minimize the impact of foreign exchange movements on earnings before interest, taxes, depreciation and amortization (“EBITDA”). These contracts were unwound by the end of 2014. It is the Company’s policy to enter into foreign currency transactions only to the extent necessary to meet its objectives as stated above. The Company does not enter into foreign currency transactions for investment or speculative purposes. The principal currencies hedged are the Euro, the Japanese Yen, the Swiss Franc and the Canadian Dollar.

The forward contracts entered into for balance sheet risk management purposes are not designated as hedges and are carried at fair value, with changes in the fair value recorded to Other income (loss), net in the Consolidated Statements of Comprehensive Income (Loss). These contracts do not subject the Company to material balance sheet risk because gains and losses on these derivatives are intended to offset gains and losses on the assets and liabilities being hedged.

The forward contracts entered into for Royalty Hedging purposes are designated as hedges and are carried at fair value, with changes in the fair value recorded to Accumulated Other Comprehensive Income (Loss) (“AOCI”). The change in fair value is reclassified from AOCI to earnings in the quarter in which the hedged royalty is paid. These contracts have various expiration dates through September 2016.

Unrealized and realized gains and losses on the contracts entered into for managing foreign exchange movement on EBITDA did not qualify for hedge accounting, and therefore were not deferred and were included in the Consolidated Statements of Comprehensive Income (Loss) in Other income (loss), net.

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Notes to Consolidated Financial Statements - Continued

The following table details the components of foreign exchange gain (loss) included in Other income (loss), net on the Consolidated Statements of Comprehensive Income (Loss):

	Years Ended December 31,
(in millions)	2015		2014			2013
Translation of non-functional currency debt	$	—	$	—		$	(40	)
Revaluation of other non-functional currency assets and liabilities(1)		6		(42	)		(28	)
Effect of derivatives		14		(3	)		9
Total foreign exchange gain (loss)	$	20	$	(45	)	$	(59	)

⁽¹⁾ 2015 and 2014 included charges of $7 million and $49 million, respectively, related to a change in the exchange rate used to remeasure the Company’s Venezuelan Bolívar account balances. Additionally, 2013 included a $14 million charge resulting from devaluation of Venezuelan Bolívars. The charges are further described below in this Note.

Net Investment Risk Management

Beginning in April 2014, the Company designated its foreign currency denominated debt as a hedge of its net investment in foreign subsidiaries to reduce the volatility in shareholders’ equity caused by changes in the Euro exchange rate with respect to the U.S. Dollar. As of December 31, 2015, these borrowings (net of original issue discount) were €1,127 million ($1,231 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 would be reclassified from AOCI to earnings upon the sale or substantial liquidation of these net investments. The amount of foreign exchange gains (losses) related to the net investment hedge included in cumulative translation adjustment for the years ended December 31, 2015 and 2014 was $102 million and $142 million, respectively.  

Interest Rate Risk Management

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

In April 2014, the Company purchased U.S. Dollar denominated interest rate caps (“2014 Caps”) for a total notional value of $1 billion at strike rates ranging between 2% and 3%. These caps are effective at various times between April 2014 and April 2016, and expire at various times between April 2017 and April 2019. The total premiums paid were $21 million. The 2014 Caps are designated as cash flow hedges. Additionally, the Company had U.S. Dollar and Euro denominated interest rate caps that expired at various times through January 2015. These expired caps were not designated as cash flow hedges.

The Company also entered into U.S. Dollar and Euro denominated interest rate swap agreements in April 2014 (“2014 Swaps”) to hedge interest rate exposure on notional amounts of approximately $600 million of its borrowings. The 2014 swaps were effective between April and June 2014, and expire at various times from March 2017 through March 2021. On these agreements, the Company pays a fixed rate ranging from 1.4% to 2.1% and receives a variable rate of interest equal to the greater of three-month U.S. Dollar London Interbank Offered Rate (“LIBOR”) or three-month Euro Interbank Offered Rate (“EURIBOR”), and 1%. The 2014 Swaps are designated as cash flow hedges. The Company also entered into interest rate swap agreements in May 2010 (“2010 Swaps”) to hedge interest rate exposure on notional amounts of $375 million of its borrowings. The 2010 Swaps were effective January 2012, and expire at various times through January 2016. On these agreements, the Company pays a fixed rate ranging from 3% to 3.3% and receives a variable rate of interest equal to the three-month LIBOR. The 2010 Swaps are not designated as cash flow hedges.

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Notes to Consolidated Financial Statements - Continued

The fair values of derivative instruments in the Consolidated Statements of Financial Position are as follows:

		December 31, 2015						December 31, 2014
		Fair Value of Derivative				U.S. Dollar Notional		Fair Value of Derivative				U.S. Dollar Notional
(in millions)	Balance Sheet Caption	Asset		Liability				Asset		Liability
Derivatives Designated as Hedging Instruments:
Foreign exchange contracts	Accounts receivable/ Accounts payable	$	4	$	2	$	178	$	18	$	—	$	189
Interest rate caps	Non-Current Assets		4		—		1,000		12		—		1,000
Interest rate swaps	See below(1)		—		10		517		—		12		553
Derivatives not Designated as Hedging Instruments:
Foreign exchange contracts	Accounts receivable/ Accounts payable		3		—		148		—		2		93
Interest rate swaps	See below(1)		—		1		100		—		4		225
Total Derivatives		$	11	$	13			$	30	$	18

⁽¹⁾ $1 million included in Accrued and other current liabilities and $10 million included in Other liabilities at December 31, 2015 and $1 million included in Accrued and other current liabilities and $15 million included in Other liabilities at December 31, 2014 in the Consolidated Statements of Financial Position.

For derivatives designated as hedges, the Company assesses, both at the inception of the hedge and on an ongoing basis, whether the derivatives are highly effective in offsetting changes in fair values or cash flows of hedged items. If it is determined that a derivative ceases to be highly effective as a hedge, the Company will discontinue hedge accounting with respect to that derivative prospectively. When it is probable that a hedged forecasted transaction will not occur, the Company discontinues hedge accounting for the affected portion of the forecasted transaction, and reclassifies gains or losses that were accumulated in AOCI to earnings in Other Income (loss), net for foreign exchange derivatives and interest expense for interest rate derivatives on the Consolidated Statements of Comprehensive Income (Loss). Cash flows are classified consistent with the underlying hedged item.

The effects of derivative instruments in cash flow hedging relationships on the Consolidated Statements of Comprehensive Income (Loss) are as follows:

	Effect of Derivatives on Financial Performance
(in millions)	Amount of Income/(Loss) Recognized in AOCI								Location of Income/(Loss) Reclassified from AOCI into Earnings		Amount of Income/(Loss) Reclassified from AOCI into Earnings
Years Ended December 31,	2015			2014			2013				2015		2014		2013
Foreign exchange contracts	$	7		$	23		$	13		Other income (loss), net	$	24	$	7	$	14
Interest rate derivatives		(6	)		(20	)		—		Interest expense		—		—		—

The pre-tax gain (loss) recognized in earnings on derivatives not designated as hedging instruments was as follows:

	Years Ended December 31,
(in millions)	2015			2014			2013
Foreign exchange contracts(1)	$	(10	)	$	(9	)	$	(5	)
Interest rate derivatives(2)		—			(1	)		(1	)
Total derivatives not designated as hedging instruments	$	(10	)	$	(10	)	$	(6	)

⁽¹⁾ Included in Other income (loss), net.

⁽²⁾ Included in interest expense.

Changes in the fair value of derivatives that are designated as cash flow hedges are recorded in AOCI to the extent effective and reclassified into earnings in the same period or periods during which the transaction hedged by that derivative also affects earnings. The Company expects $4 million of pre-tax unrealized losses related to its foreign exchange contracts and interest rate derivatives included in AOCI at December 31, 2015 to be reclassified into earnings within the next twelve months.

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Notes to Consolidated Financial Statements - Continued

Fair Value Disclosures

The Company is subject to authoritative guidance which requires a three-level hierarchy for disclosure of fair value measurements as follows:

Level 1 —	Quoted prices in active markets for identical assets or liabilities.
Level 2 —	Quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets; and model-derived valuations in which all significant inputs are observable in active markets.
Level 3 —	Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.

The carrying values of cash, cash equivalents, restricted cash, accounts receivable and accounts payable approximated their fair values at December 31, 2015 and 2014 due to the short-term nature of these instruments. At December 31, 2015 and 2014, the fair value of total debt approximated $4,229 million and $3,799 million, respectively, as determined under Level 2 measurements based on quoted prices for these financial instruments.

Recurring measurements

The following tables summarize assets and liabilities measured at fair value on a recurring basis at the dates indicated:

	Basis of Fair Value Measurements
	December 31, 2015
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Derivatives	$	—	$	11	$	—	$	11
Total	$	—	$	11	$	—	$	11
Liabilities
Contingent consideration	$	—	$	—	$	28	$	28
Derivatives		—		13		—		13
Total	$	—	$	13	$	28	$	41

	December 31, 2014
	Level 1		Level 2		Level 3		Total
Assets
Derivatives		—		30		—		30
Total	$	—	$	30	$	—	$	30
Liabilities
Contingent consideration	$	—	$	—	$	24	$	24
Derivatives		—		18		—		18
Total	$	—	$	18	$	24	$	42

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. 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.

76

IMS HEALTH HOLDINGS, INC.

Notes to Consolidated Financial Statements - Continued

The following table summarizes Level 3 acquisition-related contingent consideration liabilities (see Note 3) carried at fair value on a recurring basis with the use of unobservable inputs for the period indicated.

(in millions)	Contingent Consideration Liabilities
Balance at December 31, 2013	$	65
New acquisitions		3
Cash payments		(28	)
Changes in fair value estimates and foreign currency translation adjustments		(16	)
Balance at December 31, 2014		24
New acquisitions		19
Cash payments		(2	)
Changes in fair value estimates and foreign currency translation adjustments		(13	)
Balance at December 31, 2015	$	28

During 2014, the Company paid $25 million as a final settlement for an earn-out related to a 2013 acquisition. The settlement resulted in a $9 million change in the fair value of the contingent consideration liability.

Non-recurring measurements

In 2014, the Company recorded a $7 million impairment charge for a leased facility, resulting in a fair value measurement of $9 million. The fair value was based on a third party market assessment, a Level 2 measurement. Additionally in 2014, the Company wrote off the value of computer software that was no longer in use to zero and recorded an impairment charge of $2 million. The fair value reflects an internal review of the net realizable value of the software and thus is a Level 3 measurement.

In 2013, the Company wrote-off the value of a cost method investment and an associated asset that was no longer in use to zero and recorded charges of $5 million, $3 million of which were recorded in Severance, impairment and other charges and $2 million of which were recorded in Other income (loss), net. The fair value reflects an internal review of the net realizable value of the assets and thus is a Level 3 measurement. Also, in 2013, the Company recorded an additional $3 million impairment charge for a leased facility, resulting in a fair value measurement of the liability of $9 million at December 31, 2013. The fair value was based on a third party market assessment, a Level 2 measurement.

Venezuela

In February 2013, the Venezuelan government announced the devaluation of its currency. The official exchange rate was adjusted from 4.30 Bolívars to each U.S. Dollar to 6.30. The Company’s Swiss operating subsidiary, IMS AG, maintains certain account balances in Bolívars (mainly cash and cash equivalents). As these balances are held in a non-functional currency of IMS AG, the Company is required to mark-to-market these balances at each reporting date and reflect these movements as gains or losses in income. Additionally, since January 2010, Venezuela has been designated as hyper-inflationary, and as such, all foreign currency fluctuations are recorded in income for certain account balances at the Company’s local Venezuelan operating subsidiary. The Company recorded a pre-tax charge of approximately $14 million to Other income (loss), net, in 2013 related to the remeasurement of the IMS AG Venezuelan Bolívar account balances and the remeasurement of certain local Bolívar account balances.

In 2014, the Venezuelan government significantly expanded the use of the Supplementary Foreign Currency Administration System (“SICAD”) I exchange market and created a third exchange market called SICAD II, which the Company utilized to remeasure its Venezuelan Bolívar account balances beginning on June 30, 2014. As a result of the change to the SICAD II rate from the official exchange rate, the Company recorded a pre-tax charge of $49 million to foreign exchange loss within Other income (loss), net in 2014. In February 2015, the Venezuelan government announced that the SICAD II market would no longer be available, and a new foreign exchange market system ("SIMADI") was created. SIMADI has exchange rates significantly less favorable than SICAD II. As a result of the change to the SIMADI rate, the Company recorded a pre-tax charge of $7 million to foreign exchange loss within Other income (loss), net in 2015. At December 31, 2015, the SIMADI rate was approximately 199 Bolívars to one U.S. Dollar. The net assets held and revenue generated by the Company’s Venezuelan subsidiaries were not material to the Company’s consolidated results as of December 31, 2015.

77

IMS HEALTH HOLDINGS, INC.

Notes to Consolidated Financial Statements - Continued

Credit Concentrations

The Company continually monitors its positions with, and the credit quality of, the financial institutions which are counterparties to its financial instruments and does not anticipate non-performance by the counterparties. In general, the Company enters into transactions only with counterparties that are large banks and financial institutions. In addition, the Company attempts to limit the amount of credit exposure with any one institution. The Company would not have realized a material loss during the year ended of December 31, 2015 in the event of non-performance by any one counterparty.

The Company maintains accounts receivable balances ($508 million and $330 million, net of allowances, at December 31, 2015 and 2014, respectively), principally from clients in the pharmaceutical industry. The Company’s trade receivables do not represent significant concentrations of credit risk at December 31, 2015 due to the credit worthiness of its clients and their dispersion across many geographic areas.

Note 7. Debt

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

	December 31,
(in millions)	2015			2014
Senior Secured Credit Facilities:
Senior Secured Term A Loan due 2019—USD LIBOR at average floating rates of 2.86%	$	484		$	307
Senior Secured Term A Loan due 2019—EUR LIBOR at average floating rates of 2.25%		135			158
Senior Secured Term B Loan due 2021—USD LIBOR at average floating rates of 3.50%		1,717			1,735
Senior Secured Term B Loan due 2021—EUR LIBOR at average floating rates of 3.75%		802			901
Revolving Credit Facility due 2019:
U.S. Dollar denominated borrowings—USD LIBOR at average floating rates of 2.79%		328			215
4.125% Senior Notes due 2023 - Euro denominated		300			—
6.00% Senior Notes due 2020  - U.S. Dollar denominated		500			500
Principal Amount of Debt		4,266			3,816
Less: Debt Issuance Costs and Unamortized Discounts		(71	)		(77	)
Total Debt	$	4,195		$	3,739

Scheduled principal payments due on the Company’s debt as of December 31, 2015 were as follows:

	Year Ended December 31,
(in millions)	2016		2017		2018		2019		2020		Thereafter		Total
Debt	$	59	$	72	$	88	$	830	$	526	$	2,691	$	4,266

Senior Secured Credit Facilities

In May 2015, IMS Health Incorporated (“IMS Health”), an indirect wholly-owned subsidiary of the Company, entered into an amendment (the “2015 Amendment”) to the Third Amended and Restated Credit and Guaranty Agreement, dated as of March 17, 2014, among IMS Health, IMS AG and IMS Japan K.K., as co-borrowers, Healthcare Technology Intermediate Holdings, Inc., Bank of America, N.A. and the other lenders party thereto (as amended by the 2015 Amendment, the “Credit Agreement” and, together with the related security and other documents for the senior secured term loan facilities and the senior secured revolving facility, the “Senior Secured Credit Facilities”). The 2015 Amendment increased outstanding commitments under the Company’s existing Term A loans by $200 million. The proceeds from the additional term loans were used to fund a portion of the Company’s repurchase of its common shares in May 2015. See Note 9 for further information on the share repurchase. As a result of the 2015 Amendment, the Company incurred $2 million of fees, which are being amortized to interest expense.

In March 2014, IMS Health and certain of its subsidiaries, as co-borrowers, entered into an amendment (the “2014 Amendment”) to the Second Amended and Restated Credit and Guaranty Agreement, dated as of October 24, 2012. The 2014 Amendment added commitments in respect of new Term A loans (the “New Term Loans”) in the aggregate dollar equivalent amount of $500 million, increased outstanding commitments under the revolving credit facility to $500 million, modified certain interest rates and covenants and made additional modifications to the then outstanding senior secured credit facilities. The New Term Loans were funded in April 2014 concurrent with the Company’s IPO. See Note 1 for further information on the IPO. The New Term Loans and revolving credit facility mature in March 2019, while the Term B loans mature in March 2021. As a result of the 2014 Amendment,

78

IMS HEALTH HOLDINGS, INC.

Notes to Consolidated Financial Statements - Continued

the Company recorded $11 million of debt extinguishment losses and $2 million of fees in Other income (loss), net during the year ended December 31, 2014.

In February 2013, IMS Health and certain of its subsidiaries entered into an amendment of the then existing senior secured term loans due 2017 (“Term Loan Amendment”) to reduce its borrowing costs. IMS Health reduced the borrowing margins and LIBOR floors by 50 basis points and 25 basis points, respectively, for both the USD and EUR tranches of debt. As a result of the Term Loan Amendment, the Company recorded $9 million of debt extinguishment losses and $3 million of fees in Other income (loss), net during the year ended December 31, 2013.

IMS Health is required to make scheduled quarterly payments on the Term A loans at rates that vary from 1.25% to 2.50% of the original principal amount of the term loans, with the remaining balance paid at maturity. Additionally IMS Health is required to make scheduled quarterly payments on the Term B loans equal to approximately 0.25% of the original principal amount of the term loans, with the remaining balance paid at maturity. IMS Health is also required to pay an annual commitment fee that ranges from 0.30% to 0.40% in respect of any unused commitments under the revolving credit facility.

At December 31, 2015, IMS Health, IMS AG and IMS Japan K.K., as co-borrowers, had an aggregate $500 million revolving credit facility, of which $172 million was unused. The Senior Secured Credit Facilities are secured by a security interest in substantially all of Healthcare Technology Intermediate Holdings, Inc.’s, IMS Health’s and the U.S. subsidiary guarantors’ tangible and intangible assets, including the stock of IMS Health and certain of IMS Health’s U.S. restricted subsidiaries and a portion of the stock of IMS Health’s non-U.S. restricted subsidiaries directly owned by Healthcare Technology Intermediate Holdings, Inc., IMS Health or a U.S. subsidiary guarantor. In addition, the obligations of IMS AG are guaranteed by certain of its Swiss restricted subsidiaries and are secured by certain assets of IMS AG and the Swiss guarantors, including the stock of the Swiss guarantors. The obligations of IMS Japan K.K. are secured by certain of its assets. There have been no borrowings by IMS Japan K.K. to date.

Senior Notes

In anticipation of the Cegedim acquisition, IMS Health issued €275 million aggregate principal amount of 4.125% senior unsecured notes due in April 2023 on March 30, 2015. The proceeds, along with cash on hand, were used on April 1, 2015 to fund the Cegedim acquisition and pay fees and expenses of $5 million in connection with the debt offering. See Note 3 for more information on the Cegedim acquisition. Interest on the 4.125% Senior Notes is payable semi-annually each year and commenced on October 1, 2015. The 4.125% Senior Notes are guaranteed on a senior unsecured basis by IMS Health’s wholly-owned domestic subsidiaries that are guarantors under the Senior Secured Credit Facilities. The Company may redeem the 4.125% Senior Notes, in whole or in part, at any time prior to April 1, 2018 at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of redemption, plus a “make-whole” premium. On or after April 1, 2018, the Company may redeem all or a portion of the 4.125% Senior Notes at predetermined redemption prices set forth in the indenture governing the 4.125% Senior Notes plus accrued and unpaid interest to the date of redemption.

In addition to the 4.125% Senior Notes, IMS Health has outstanding $500 million aggregate principal amount of 6% Senior Notes due in November 2020 (the “6% Senior Notes”). Interest is payable semi-annually each year. The 6% Senior Notes are guaranteed on a senior unsecured basis by IMS Health’s wholly-owned domestic subsidiaries that are guarantors under the Senior Secured Credit Facilities. The Company may redeem all or a portion of the 6% Senior Notes at predetermined redemption prices set forth in the indenture governing the 6% Senior Notes plus accrued and unpaid interest to the date of redemption.

Other

In connection with the Company’s IPO in April 2014, the Company redeemed its 12.5% senior notes and senior PIK notes and incurred a loss on extinguishment of debt of $219 million in 2014, consisting of a $151 million in aggregate payments for make-whole premiums related to such redemptions and $68 million write-off of debt issuance costs and discounts.

The Senior Secured Credit Facilities and the indentures for the 4.125% Senior Notes and 6% Senior Notes 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 New Term Loans, other actions permitted to be taken by a secured creditor. At December 31, 2015, the Company was in compliance with the financial covenants under the Company’s financing arrangements.

79

IMS HEALTH HOLDINGS, INC.

Notes to Consolidated Financial Statements - Continued

Note 8. Pension and Postretirement Benefits

The Company sponsors both funded and unfunded defined benefit pension plans. These plans provide benefits based on various criteria, including, but not limited to, years of service and salary. The Company also sponsors an unfunded postretirement benefit plan in the U.S. that provides health and prescription drug benefits to retirees who meet the eligibility requirements. The Company uses a December 31 measurement date for all pension and postretirement benefit plans. The U.K. Defined Benefit Plan closed to future accrual at June 30, 2011.

The following tables summarize changes in the benefit obligation, the plan assets and the funded status of the Company’s pension and postretirement benefit plans as well as the components of net periodic benefit costs, including key assumptions.

	Pension Benefits
	U.S. Plans						Non-U.S. Plans
	Years Ended December 31,
(in millions)	2015			2014			2015			2014
Obligation and Funded Status:
Change in benefit obligation
Benefit obligation at beginning of year	$	291		$	249		$	305		$	247
Service cost		12			10			8			6
Interest cost		11			12			10			11
Foreign currency exchange adjustment		—			—			(14	)		(17	)
Actuarial loss (gain)		(22	)		28			(3	)		29
Benefits paid		(8	)		(8	)		(11	)		(9	)
Settlements and other		—			—			(1	)		(3	)
Acquisition(1)		—			—			24			—
Plan adoption(2)		—			—			—			41
Benefit obligation at end of year	$	284		$	291		$	318		$	305
Change in plan assets
Fair value of plan assets at beginning of year	$	295		$	274		$	283		$	234
Actual return on assets		(2	)		26			8			33
Foreign currency exchange adjustment		—			—			(12	)		(15	)
Employer contributions		4			3			7			14
Benefits paid		(8	)		(8	)		(11	)		(9	)
Settlements and other		—			—			—			(3	)
Acquisition(1)		—			—			2			—
Plan adoption(2)		—			—			—			29
Fair value of plan assets at end of year	$	289		$	295		$	277		$	283
Funded status	$	5		$	4		$	(41	)	$	(22	)
Amounts recognized in the Consolidated Statements of Financial Position:
Other assets	$	46		$	48		$	7		$	8
Accrued and other current liabilities		(2	)		(2	)		(2	)		(1	)
Postretirement and postemployment benefits liability		(39	)		(42	)		(46	)		(29	)
Net amount recognized	$	5		$	4		$	(41	)	$	(22	)
Accumulated benefit obligation	$	281		$	287		$	305		$	298

⁽¹⁾ Represents defined benefit plans acquired in the Cegedim acquisition.

⁽²⁾ Represents the conversion of a non-U.S. plan from a defined contribution plan to a defined benefit plan as of December 31, 2014.

80

IMS HEALTH HOLDINGS, INC.

Notes to Consolidated Financial Statements - Continued

	Other Benefits
	Years Ended December 31,
(in millions)	2015			2014
Obligation and Funded Status:
Change in benefit obligation
Benefit obligation at beginning of year	$	5		$	6
Actuarial loss (gain)		1			(1	)
Benefits paid (net of Medicare subsidy)		(1	)		—
Benefit obligation at end of year	$	5		$	5
Change in plan assets
Fair value of plan assets at beginning of year	$	—		$	—
Employer contributions		1			—
Benefits paid (net of Medicare subsidy)		(1	)		—
Fair value of plan assets at end of year	$	—		$	—
Funded status	$	(5	)	$	(5	)
Amounts recognized in the Consolidated Statements of Financial Position:
Accrued and other current liabilities	$	(1	)	$	(1	)
Postretirement and postemployment benefits liability		(4	)		(4	)
Net amount recognized	$	(5	)	$	(5	)

The following table provides the information for pension plans with an accumulated benefit obligation in excess of plan assets and projected benefit obligations in excess of plan assets.

	Pension Benefits
	U.S. Plans				Non-U.S. Plans
	Years Ended December 31,
(in millions)	2015		2014		2015		2014
Plans with accumulated benefit obligation in excess of plan assets:
Projected benefit obligation	$	43	$	46	$	86	$	62
Accumulated benefit obligation		42		45		75		54
Fair value of plan assets		2		1		38		35
Plans with projected benefit obligation in excess of plan assets:
Projected benefit obligation	$	43	$	46	$	86	$	63
Fair value of plan assets		2		1		38		37

The amounts recognized in AOCI for pension and other benefits at December 31 consisted of:

	Pension Benefits								Other Benefits
(in millions)	U.S. Plans				Non-U.S. Plans
	2015		2014		2015		2014		2015			2014
Net actuarial loss	$	13	$	12	$	37	$	38	$	1		$	1
Unrecognized initial obligation		—		—		—		13		—			—
Prior service cost (credit)		—		—		10		—		(3	)		(4	)
Total		13		12		47		51		(2	)		(3	)

81

IMS HEALTH HOLDINGS, INC.

Notes to Consolidated Financial Statements - Continued

The components of net periodic benefit cost and other changes in plan assets and benefit obligations recognized in Other Comprehensive Income (Loss) were as follows:

	Pension Benefits – U.S. Plans									Pension Benefits – Non-U.S. Plans
	Years Ended December 31,
(in millions)	2015			2014			2013			2015			2014			2013
Service cost	$	12		$	10		$	10		$	8		$	6		$	5
Interest cost		11			12			9			10			11			9
Expected return on plan assets		(22	)		(20	)		(18	)		(13	)		(13	)		(10	)
Amortization of prior service cost (credit)		—			—			—			1			—			—
Amortization of loss		1			—			1			1			1			—
Net periodic benefit cost	$	2		$	2		$	2		$	7		$	5		$	4
Other changes in plan assets and benefit obligations recognized in other comprehensive loss:
Actuarial loss (gain) – current years	$	2		$	22		$	(41	)	$	2		$	8		$	8
Prior service (cost) credit – current years		—			—			—			(1	)		—			—
Transition obligation		—			—			—			—			13			—
Amortization of prior service (cost) credit		—			—			—			(1	)		—			—
Amortization of actuarial loss		(1	)		—			(1	)		(1	)		(1	)		—
Total recognized in other comprehensive loss	$	1		$	22		$	(42	)	$	(1	)	$	20		$	8
Total recognized in net periodic benefit cost and other comprehensive loss	$	3		$	24		$	(40	)	$	6		$	25		$	12

	Other Benefits
	Years Ended December 31,
(in millions)	2015			2014			2013
Amortization of prior service cost (credit)	$	(1	)	$	(1	)	$	—
Net periodic benefit cost	$	(1	)	$	(1	)	$	—
Other changes in plan assets and benefit obligations recognized in other comprehensive loss:
Actuarial loss (gain) – current years	$	—		$	—		$	(1	)
Prior service (cost) credit – current years		—			—			(5	)
Amortization of prior service (cost) credit		1			1			—
Total recognized in other comprehensive loss	$	1		$	1		$	(6	)
Total recognized in net periodic benefit cost and other comprehensive loss	$	—		$	—		$	(6	)

The amounts in AOCI that are expected to be recognized as components of net periodic benefit cost (credit) during 2016 are as follows:

	Pension Benefits
(in millions)	U.S. Plans		Non-U.S. Plans				Other Benefits	Total
Net actuarial loss	$	—	$	(1	)	$	—	$	(1	)
Prior service credit		—		—			1		1
Total	$	—	$	(1	)	$	1	$	—

Assumptions

	Pension Benefits												Other Benefits
Weighted Average Assumptions Used to Determine Benefit Obligations at December 31,	U.S. Plans						Non-U.S. Plans
	2015			2014			2015			2014			2015			2014
Discount rate		4.48	%		3.87	%		3.16	%		3.30	%		3.00	%		2.60	%
Rate of compensation increase		3.00	%		3.00	%		2.40	%		1.94	%		N/A			N/A

82

IMS HEALTH HOLDINGS, INC.

Notes to Consolidated Financial Statements - Continued

	Pension Benefits																		Other Benefits
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for the Years Ended December 31,	U.S. Plans									Non-U.S. Plans
	2015			2014			2013			2015			2014			2013			2015			2014			2013
Discount rate		3.87	%		4.66	%		3.80	%		3.30	%		4.37	%		4.44	%		2.60	%		2.90	%		3.80	%
Expected long-term return on plan assets		7.96	%		7.97	%		8.00	%		5.02	%		5.39	%		6.30	%		N/A			N/A			N/A
Rate of compensation increase		3.00	%		3.00	%		3.00	%		1.94	%		1.98	%		1.85	%		N/A			N/A			N/A

	At December 31,
Assumed Health Care Cost Trend Rates	2015			2014			2013
Health care cost trend rate assumed for next year		7.50	%		7.50	%		7.50	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		5.0	%		5.0	%		5.0	%
Year that the rate reaches the ultimate trend rate		2021			2019			2019

Assumed health care cost trend rates could have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates at December 31, 2015 would have had less than a $1 million effect on the total of service and interest cost and on the accumulated postretirement benefit obligation.

Plan Assets

The Company’s pension plan weighted average asset allocations at December 31, 2015 and 2014, by asset category, follows:

	Plan Assets at December 31,
Asset Category	U.S. Plans						Non-U.S. Plans						Total
	2015			2014			2015			2014			2015			2014
Equity securities		70	%		70	%		35	%		35	%		53	%		53	%
Debt securities		25			25			42			43			33			34
Real estate		5			5			9			8			7			6
Other		—			—			14			14			7			7
Total		100	%		100	%		100	%		100	%		100	%		100	%

The target asset allocation for the Company’s pension plans is as follows:

Asset Category	U.S. Plans			Non-U.S. Plans			Total
Equity securities		60-80	%		30-45	%		45-65	%
Debt securities		20-30			35-50			30-40
Real estate		0-10			0-10			0-10
Other		—			10-20			0-10

The following tables summarize plan assets measured at fair value on the dates indicated:

	Fair Value Measurements
	December 31, 2015
(in millions)	Level 1		Level 2		Level 3		Total
Asset Category – U.S. Plans
Investment Funds
Domestic equities(1)	$	27	$	132	$	—	$	159
International equities(2)		18		27		—		45
Debt issued by national, state or local government(3)		—		12		—		12
Corporate bonds(4)		42		16		—		58
Real estate(5)		15		—		—		15
Total assets	$	102	$	187	$	—	$	289

83

IMS HEALTH HOLDINGS, INC.

Notes to Consolidated Financial Statements - Continued

	December 31, 2015
(in millions)	Level 1		Level 2		Level 3		Total
Asset Category – Non-U.S. Plans
Investment Funds
International equities(2)	$	—	$	97	$	—	$	97
Debt issued by national, state or local government(3)		2		69		—		71
Corporate bonds(4)		—		46		—		46
Real estate(5)		—		—		24		24
Investment funds(6)		—		7		—		7
Insurance contracts(7)		—		32		—		32
Total assets	$	2	$	251	$	24	$	277

	Fair Value Measurements
	December 31, 2014
(in millions)	Level 1		Level 2		Level 3		Total
Asset Category – U.S. Plans
Investment Funds
Domestic equities(1)	$	28	$	133	$	—	$	161
International equities(2)		18		27		—		45
Debt issued by national, state or local government(3)		—		13		—		13
Corporate bonds(4)		44		17		—		61
Real estate(5)		15		—		—		15
Total assets	$	105	$	190	$	—	$	295

	December 31, 2014
(in millions)	Level 1		Level 2		Level 3		Total
Asset Category – Non-U.S. Plans
Investment Funds
International equities(2)	$	—	$	100	$	—	$	100
Debt issued by national, state or local government(3)		2		76		—		78
Corporate bonds(4)		—		48		—		48
Real estate(5)		—		—		22		22
Investment funds(6)		—		6		—		6
Insurance contracts(7)		—		29		—		29
Total assets	$	2	$	259	$	22	$	283

⁽¹⁾ Comprises actively managed mutual funds, passively managed collective trusts and pooled funds investing primarily in companies with market capitalizations similar to that of the S&P 500, S&P Small Cap 600, Russell 1000 and Russell 2000 indexes. The collective trusts do not participate in securities lending.

⁽²⁾ Comprises actively managed mutual funds, passively managed collective trust fund and pooled funds investing primarily in companies in non-U.S. countries and non-U.S. developed market countries similar to that of the Morgan Stanley Capital International EAFE index. The collective trust does not participate in securities lending.

⁽³⁾ Comprises passively managed pooled funds primarily invested in debt instruments from non-U.S. national state or local Governments.

⁽⁴⁾ Comprises actively managed mutual funds, passively managed collective trust fund and pooled funds investing primarily in a diversified portfolio of investment grade U.S. and non-U.S. fixed income securities. The collective trust does not participate in securities lending.

⁽⁵⁾ Comprises an actively managed mutual fund and an actively managed pooled fund which primarily invests in real estate, including but not limited to offices, retail warehouses and shopping centers.

⁽⁶⁾ Comprises an actively managed investment fund which primarily invests in term deposit instruments offering a guaranteed investment return.

⁽⁷⁾ Assets are invested in a collective foundation through an insurance company which guarantees a minimum investment return.

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Notes to Consolidated Financial Statements - Continued

Investments in mutual funds are valued at quoted market prices. Investments in common/collective trusts and pooled funds are valued at the net asset value (“NAV”) as reported by the trust. The NAV is based on the fair value of the underlying investments held by the fund less its liabilities. Insurance contracts are valued at the amount of the benefit liability. Level 3 real estate assets, which consist of an international property fund, directly invests in properties that rely on unobservable inputs to measure the fair value.

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in millions)	2015(1)			2014(1)
Beginning balance	$	22		$	20
Actual return on plan assets – assets held at end of year		3			3
Purchases, sales and settlements		(1	)		(1	)
Ending balance	$	24		$	22

⁽¹⁾ All amounts relate to property.

Investment Policies and Strategies

The Company invests primarily in a diversified portfolio of equity and debt securities that provide for long-term growth within reasonable and prudent levels of risk. The asset allocation targets established by the Company are strategic and applicable to the Plan’s long-term investing horizon. The portfolio is constructed and maintained to provide adequate liquidity to meet associated liabilities and minimize long-term expense and provide prudent diversification among asset classes in accordance with the principles of modern portfolio theory. The plan employs a diversified mix of actively managed investments around a core of passively managed index exposures in each asset class. Within each asset class, rapid market shifts, changes in economic conditions or an individual fund manager’s outlook may cause the asset allocation to fall outside the prescribed targets. The majority of the Company’s plan assets are measured quarterly against benchmarks established by the Company’s investment advisors and the Company’s Asset Management Committee, who reviews actual plan performance and has the authority to recommend changes as deemed appropriate. Assets are rebalanced periodically to their strategic targets to maintain the Plan’s strategic risk/reward characteristics. The Company periodically conducts asset liability modeling studies to ensure that the investment strategy is aligned with the obligations of the plans and that the assets will generate income and capital growth to meet the cost of current and future benefits that the plans provide. The pension plans do not include investments in Company stock at December 31, 2015 or 2014.

The portfolio for the Company’s U.K. Pension plan seeks to invest in a range of suitable assets of appropriate liquidity which will generate in the most effective manner possible, income and capital growth to ensure that there are sufficient assets to meet benefit payments when they fall due, while controlling the long-term costs of the plan and avoiding short-term volatility of investment returns. The plan seeks to achieve these objectives by investing in a mixture of real (equities) and monetary (fixed interest) assets. It recognizes that the returns on real assets, while expected to be greater over the long-term than those on monetary assets, are likely to be more volatile. A mixture across asset classes should nevertheless provide the level of returns required by the Plan. The trustee periodically conducts asset liability modeling exercises to ensure the investments are aligned with the appropriate benchmark to better reflect the Plan’s liabilities. The trustee also undertakes to review this benchmark on a regular basis.

Cash Flows

Contributions.   The Company expects to contribute $9 million in required contributions to its pension and postretirement benefit plans during fiscal 2016. The Company may make additional contributions into its pension plans in fiscal 2016 depending on, among other factors, how the funded status of those plans changes and in order to meet minimum funding requirements as set forth in employee benefit and tax laws, plus additional amounts the Company may deem to be appropriate.

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Notes to Consolidated Financial Statements - Continued

Estimated future benefit payments and subsidy receipts.  The following benefit payments (net of expected participant contributions) are expected to be paid as follows:

	Year Ended December 31,
(in millions)	2016		2017		2018		2019		2020		2021-2025
Pension benefits	$	19	$	19	$	20	$	22	$	23	$	144
Other benefits		1		1		1		1		1		1

Other Plans

Plans accounted for as deferred compensation contracts.  The Company provides certain executives with supplemental pension benefits in accordance with their individual employment arrangements. The tables above in this Note do not include the Company’s expense or obligation associated with providing these benefits.

Plans accounted for as postretirement benefits.  The Company provides certain executives with postretirement medical, dental and life insurance benefits. These benefits are individually negotiated arrangements in accordance with their individual employment arrangements. The tables above in this Note do not include the Company’s expense or obligation associated with providing these benefits.

Information related to these unfunded plans is as follows:

	Obligation				(Income) Expense							Discount Rate used to Measure Obligation
	December 31,				Years Ended December 31,							December 31,
(in millions)	2015		2014		2015		2014			2013		2015			2014
Deferred compensation plan	$	1	$	1	$	—	$	—		$	—		4.2	%		3.9	%
Postretirement benefits plan		11		9		1		(1	)		2		4.4	%		3.9	%

Defined contribution plans.  Certain employees of the Company in the U.S. are eligible to participate in the Company-sponsored defined contribution plan. The Company makes a matching contribution of up to 50% of the employee’s contribution based on specified limits of the employee’s salary. The Company’s expense related to this plan was approximately $8 million, $7 million and $6 million for the years ended 2015, 2014 and 2013, respectively.

Certain key executives of the Company participate in an unfunded defined contribution executive retirement plan that was frozen to additional accruals for future service contributions in 2012. Participants continue to receive an annual investment credit based on the average of the annual yields at the end of each month on the AA-AAA rated 10+ year maturity component of the Merrill Lynch U.S. Corporate Bond Master Index. The Company’s expense related to this plan was de minimis for the years ended December 31, 2015 and 2014 and approximately $1 million for the year ended 2013.

There are additional Company-sponsored defined contribution arrangements for employees of the Company residing in countries other than the U.S. The Company is required to make contributions based on the specific requirements of the plans. The Company’s expense related to these plans was approximately $9 million, $8 million and $8 million for the years ended 2015, 2014 and 2013, respectively.

Note 9. Shareholders’ Equity

The Company amended its Certificate of Incorporation in April 2014, in connection with the closing of the IPO. The Amended and Restated Certificate of Incorporation authorizes the Board of Directors, at its discretion, to issue up to 50 million shares of preferred stock with a par value of $0.01 per share. The preferred stock is issuable in series, which may vary as to certain rights and preferences. As of December 31, 2015, no preferred shares have been issued. The Amended and Restated Certificate of Incorporation also set the number of authorized common shares at 700 million shares.

Share Repurchase

On December 16, 2015, the Company’s board of directors approved a $250 million common stock repurchase authorization. The Company’s share repurchase authorization allows the Company to buy opportunistically, when the Company believes that the share price provides the Company with an attractive use of cash flow and debt capacity. Through December 31, 2015, the Company purchased 670 thousand shares of its common stock having an aggregate value of approximately $17 million at an average price of $25.70 per share. The share repurchase was funded through a combination of cash and borrowings under the Company’s revolving

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Notes to Consolidated Financial Statements - Continued

credit facility. The repurchase authorization does not have a specified expiration date but can be modified, suspended or discontinued at any time.

On May 3, 2015, the Company’s board of directors approved a $300 million common stock repurchase authorization. In connection with that authorization, on May 12, 2015, the Company purchased 11.1 million shares of its common stock from the underwriters in the May Secondary Offering (as defined below) having an aggregate value of approximately $300 million at $27.0875 per share, equal to the midpoint between the public offering price and the price paid by the underwriters to the Selling Stockholders for the shares sold in the May 2015 Secondary Offering. To fund the share repurchase, the Company entered into the 2015 Amendment to the Credit Agreement that provided the Company with $200 million in additional term loan borrowings and utilized borrowings from its revolving credit facility and available cash. See Note 7 for additional information on the 2015 Amendment.

Secondary Offerings

In August 2015, existing shareholders of the Company (collectively, the “Selling Stockholders”) completed the sale of 20 million shares of the Company’s common stock to underwriters at a price of $31.17 per share (the “August Secondary Offering”). In May 2015, the Selling Stockholders completed the sale of 57.97 million shares of the Company’s common stock at a public offering price of $27.50 per share, including 6.87 million shares that were offered and sold by the Selling Stockholders pursuant to the full exercise of the underwriter’s option to purchase additional shares (the “May Secondary Offering” and, together with the August Secondary Offering, the “Secondary Offerings”). The Company did not sell any stock in, or receive any proceeds from, the Secondary Offerings. The Company incurred $1 million of expenses in 2015 related to the Secondary Offerings, which were included in Selling and administrative expenses.

Note 10. Stock-Based Compensation

In March 2014, the Company’s board of directors adopted the IMS Health Holdings, Inc. 2014 Incentive and Stock Award Plan (the “2014 Equity Plan”). Both annual award opportunities and equity-based awards for certain key employees, including the Company’s named executive officers, non-employee directors, consultants and other persons who provide substantial services to the Company, are granted under the 2014 Equity Plan. Prior to the adoption of the 2014 Equity Plan, the Company authorized equity awards under the 2010 Equity Plan. At December 31, 2015, there were 41.2 million shares reserved for issuance under the Company’s 2014 Equity Plan, of which 26.1 million shares are available for future grants.

Beginning in 2015, the Company’s long-term incentive awards were comprised of stock settled stock appreciation rights (“SARs”) and performance shares, both of which were granted under the 2014 Equity Plan. Unless previously terminated or forfeited, the SARs are eligible to vest in equal increments of 25% on each of the first four anniversaries of the date of grant. The exercise price of the SARs is equal to the closing market price of the Company’s common stock as of the grant date and expire on the tenth anniversary of the date of grant. Performance shares are eligible to vest at the end of a three-year period based on achievement of challenging goals related to compound annual adjusted earnings per share (“Adjusted EPS”) and relative total shareholder return (“TSR”). The number of performance shares that may be earned ranges from 50% of the target award if the threshold levels of performance are achieved to 200% of the target if the maximum levels are achieved or exceeded. Each earned and vested performance share will be settled by delivery of one share of the Company’s common stock. Recipients of performance shares have no voting rights and are not eligible to receive dividends equivalents during the performance period. Performance shares are forfeited upon termination of employment prior to the end of the performance period.

Prior to 2015, the Company granted service-based and performance-based stock options. Unless previously terminated or forfeited, the service-based options vest in equal increments of 20% on each of the first five anniversaries of the date of grant and the performance-based options vest in equal increments of 20% on each of the first five anniversaries of the date of grant if the Annual or Cumulative EBITDA Target, as defined by the 2010 Equity Plan, with respect to the fiscal year to which the performance-based options are aligned, is achieved. The service-based and performance-based awards both have an exercise price equivalent to the fair market value on the date of grant and expire on the tenth anniversary of the date of grant. In connection with the IPO, the outstanding stock options that had been granted to the board of directors prior to 2014 became fully vested.

Additionally, the Company granted service-based restricted stock and restricted stock units (“RSUs”) to employees and directors who were not employees of the Company and not affiliated with the Company’s Sponsors with a fair value equal to the closing market price of the Company’s common stock on the date of grant. The restricted stock granted in 2015 and the RSUs granted to employees in 2014 vest in equal increments of 50% on each of the second and fourth anniversaries of the grant date. The restricted stock was granted under the 2014 Equity Plan and the RSUs were granted under the 2010 Equity Plan. The RSUs granted to non-employee directors in 2015 were granted under the 2014 Equity Plan and became fully vested in 2015.

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Notes to Consolidated Financial Statements - Continued

The Company granted premium priced service-based options (“Premium Priced Options”) in 2010, which became fully vested in 2015. The awards have an exercise price equal to 150% of the fair market value on the date of grant and expire on the tenth anniversary of the date of grant. At December 31, 2015, 1.2 million shares are exercisable.  

In August 2013, the board of directors of the Company declared a cash dividend of $2.60 per share. In accordance with the terms of the 2010 Equity Plan, option holders received $2.60 per share in respect of vested options and a corresponding $2.60 per share reduction in the exercise price of unvested options. The other terms of the equity awards, including vesting schedules, remained unchanged. The Company did not record a charge for modification of the exercise price for unvested awards as the modification was provided for by the terms of the 2010 Equity Plan.

The fair value of stock options and SARs is estimated using the Black-Scholes option-pricing model. For service-based options and SARs, the Company values the grants and recognizes compensation expense on a straight-line basis over the requisite service period of the award. For options and SARs with graded vesting, the Company values the grants and recognizes compensation expense as if each vesting portion of the award was part of the total award and not a separate award. For performance-based awards, stock-based compensation expense is adjusted over time based on the Company’s assessment of the probability of achieving the financial targets. The value of the portion of the award that is ultimately expected to vest is recognized as expense either on a straight-line basis over the requisite service period of the award for restricted stock and RSUs or on a graded vesting basis for performance shares. The fair value of restricted stock and RSUs was based on the closing market price of the Company’s common stock on the date of grant. The fair value of the performance shares is determined separately for the portion of the award based on Adjusted EPS and the portion of the award based on TSR. The fair value of the Adjusted EPS portion of the award is equal to the closing market price of the Company’s common stock on the grant date. The fair value of the TSR portion of the award is determined based on a Monte Carlo simulation model.

These models require the input of subjective assumptions that will usually have a significant impact on the fair value estimate. The following table summarizes the weighted average assumptions used to measure fair value:

	2015			2014			2013
Dividend yield(1)		0.0	%		0.0	%		0.0	%
Weighted average volatility(2)		33.9	%		26.4	%		26.7	%
Risk free interest rate(3)		1.70	%		1.68	%		1.19	%
Expected term(4)	6.50 years			5.50 years			5.50 years
Weighted average fair value of options granted	$	9.34		$	5.44		$	4.89

⁽¹⁾ The dividend yield of 0.0% is used because no recurring dividends have been authorized and the Company does not expect to pay cash dividends in the foreseeable future. An increase in the dividend yield will decrease stock compensation expense.

⁽²⁾  The weighted average volatility was developed using the historical volatility of several peer companies to IMS Health Holdings, Inc. for periods equal to the expected life of the grant. An increase in the weighted average volatility assumption will increase stock compensation expense.

⁽³⁾  The risk-free interest rate was developed using the U.S. Treasury yield curve for periods equal to the expected life of the options and SARs on the grant date. An increase in the risk-free interest rate will increase stock compensation expense.

⁽⁴⁾ The expected term was estimated for the 2015 grant of SARs based on the awards’ vesting period and contractual term. An increase in the expected holding period will increase stock compensation expense.

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Notes to Consolidated Financial Statements - Continued

The following table summarizes the components and classification of stock-based compensation expense for the periods indicated:

	Years Ended December 31,
(in millions)	2015		2014		2013
Stock options and SARs	$	13	$	51	$	21
Performance shares		5		—		—
Restricted stock and RSUs		7		7		1
Total stock-based compensation expense	$	25	$	58	$	22
Operating costs of information, exclusive of depreciation and amortization	$	2	$	6	$	3
Direct and incremental costs of technology services, exclusive of depreciation and amortization		2		5		2
Selling and administrative expenses, exclusive of depreciation and amortization		21		47		17
Total stock-based compensation expense	$	25	$	58	$	22
Tax benefit on stock-based compensation expense	$	8	$	19	$	7

The tax benefit realized on stock options and SARs exercised for the years ended December 31, 2015, 2014 and 2013 was $11 million, $2 million and $—, respectively.

Stock Options and Stock Appreciation Rights

The following table summarizes activity of stock options with service conditions for the periods indicated:

(in millions)	Shares			Weighted Average Exercise Price		Weighted Average Remaining Term (Years)		Aggregate Intrinsic Value
Options outstanding, December 31, 2014		10.2		$	7.97		5.87	$	180
Exercises		(3.2	)		5.24
Forfeitures		(0.1	)		9.95
Options outstanding, December 31, 2015		6.9			9.19		5.06	$	138
Options vested or expected to vest, December 31, 2015		6.8		$	9.17		5.02	$	136
Options exercisable, December 31, 2015		3.7			10.73		4.83		80

As of December 31, 2015, approximately $2 million of unrecognized stock compensation expense related to unvested service-based stock options (net of estimated forfeitures) is expected to be recognized over a weighted-average period of approximately one year.

The following table summarizes activity of stock options with performance conditions for the periods indicated:

(in millions)	Shares			Weighted Average Exercise Price		Weighted Average Remaining Term (Years)		Aggregate Intrinsic Value
Options outstanding, December 31, 2014		5.3		$	6.69		5.95	$	101
Exercises		(1.7	)		5.76
Forfeitures		(0.1	)		9.81
Options outstanding, December 31, 2015		3.5			7.07		5.13	$	72
Options vested or expected to vest, December 31, 2015		3.4		$	8.21		5.08	$	71
Options exercisable, December 31, 2015		1.8			8.43		4.87		38

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Notes to Consolidated Financial Statements - Continued

As of December 31, 2015, approximately $2 million of unrecognized stock compensation expense related to unvested performance-based stock options (net of estimated forfeitures) is expected to be recognized over a weighted-average period of approximately one year.

The following table summarizes activity of SARs for the periods indicated:

(in millions)	Shares			Weighted Average Exercise Price		Weighted Average Remaining Term (Years)		Aggregate Intrinsic Value
SARs outstanding, December 31, 2014		0.5		$	2.50		1.30	$	13
Granted		1.7			25.14
Exercises		(0.4	)		2.50
Forfeitures		(0.2	)		25.08
SARs outstanding, December 31, 2015		1.6			22.72		5.50	$	5
SARs vested or expected to vest, December 31, 2015		1.6		$	22.72		5.50	$	5
SARs exercisable, December 31, 2015		0.2			2.50		0.30		4

Included in the table above are SARs granted by a predecessor entity to the Company in 2010 to certain executives that will expire in 2016. As of December 31, 2015, approximately $11 million of unrecognized stock compensation expense related to unvested SARs (net of estimated forfeitures) is expected to be recognized over a weighted-average period of approximately two years.

Cash proceeds and intrinsic value related to total stock options and SARs exercised during 2015, 2014 and 2013, were as follows:

	Years Ended December 31,
(in millions)	2015		2014		2013
Proceeds received from the exercise of service based stock options	$	17	$	9	$	—
Intrinsic value of service based stock options and SARs exercised		90		27		1
Proceeds received from the exercise of performance based stock options	$	10	$	8	$	—
Intrinsic value of performance based stock options exercised		43		31		—

The intrinsic value for stock options and SARs was calculated based on the exercise price of the underlying awards and the market price of the Company’s common stock as of the end of the period.

Performance Shares

The following table summarizes activity of the performance shares for the periods indicated:

(in millions)	Shares			Weighted-Average Grant-Date Fair Value
Performance shares outstanding, December 31, 2014		—		$	—
Granted		0.6			25.13
Forfeitures		(0.1	)		25.08
Performance shares outstanding, December 31, 2015		0.5		$	25.14

As of December 31, 2015, there was $10 million of unrecognized compensation cost related to nonvested performance shares. The cost is expected to be recognized over a weighted-average period of approximately 2 years.

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Notes to Consolidated Financial Statements - Continued

Restricted Stock and Restricted Stock Units

The following table summarizes activity of restricted stock and RSUs for the periods indicated:

(in millions)	Shares/Units			Weighted-Average Grant-Date Fair Value
Restricted stock and RSUs outstanding, December 31, 2014		1.4		$	19.55
Granted		1.0			27.47
Forfeitures		(0.1	)		19.50
Restricted stock and RSUs outstanding, December 31, 2015		2.3		$	22.76

During 2015 and 2014, 0.9 million restricted shares and 1.4 million RSUs were granted to employees and non-employee directors, respectively.

Fair value for restricted stock and RSUs with service conditions was as follows:

	Years Ended December 31,
(in millions)	2015		2014		2013
Fair value of restricted stock and RSUs which vested during the year	$	—	$	2	$	2
Fair value of restricted stock and RSUs outstanding		59		37		1

As of December 31, 2015, there was $38 million of unrecognized compensation cost related to nonvested restricted stock and RSUs. The cost is expected to be recognized over a weighted-average period of approximately 2 years.

Note 11. Income Taxes

Income (loss) before income taxes consisted of:

	Years Ended December 31,
(in millions)	2015			2014			2013
U.S.	$	(61	)	$	(455	)	$	(240	)
Non-U.S.		278			170			192
Total	$	217		$	(285	)	$	(48	)

Provision for (benefit from) income taxes consisted of:

	Years Ended December 31,
(in millions)	2015			2014			2013
U.S. Federal and State:
Current	$	7		$	—		$	6
Deferred		(269	)		(141	)		(178	)
	$	(262	)	$	(141	)	$	(172	)
Non-U.S.:
Current	$	85		$	85		$	66
Deferred		(23	)		(40	)		(24	)
	$	62		$	45		$	42
Total	$	(200	)	$	(96	)	$	(130	)

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Notes to Consolidated Financial Statements - Continued

The following table summarizes the significant differences between the U.S. Federal statutory taxes and the Company’s provision (benefit) for income taxes for consolidated financial statement purposes.

	Years Ended December 31,
	2015			2014			2013
Tax expense (benefit) at statutory rate		35	%		(35	)%		(35	)%
State and local income taxes, net of Federal tax benefit		4			(1	)		(21	)
Impact of Non-U.S. tax rates and credit		(5	)		8			(21	)
Impact of tax rate changes		(3	)		1			(12	)
Restructuring effect on deferred tax liability		—			(2	)		(178	)
Impact of change in assertion related to unremitted earnings		(118	)		—			—
Contract/statute of limitations expirations		(2	)		(2	)		(10	)
Reserves for uncertain tax positions		2			3			20
Audit settlements		(1	)		(4	)		(12	)
Other, net		(4	)		(2	)		—
Total tax benefit		(92	)%		(34	)%		(269	)%

The Company recorded a benefit for income taxes of $200 million in 2015, primarily due to the Company changing its assertion related to unremitted earnings of its non-U.S. subsidiaries. Historically, the Company provided deferred taxes with respect to all of the unremitted earnings of its non-U.S. subsidiaries. As of the beginning of 2015, the Company is asserting, with certain exceptions, that the unremitted earnings of its non-U.S. subsidiaries related to prior years, as well as those related to 2015 will be indefinitely reinvested. As a result of this change in assertion, in the first quarter of 2015, the Company reversed a previously established deferred tax liability of $256 million and as of December 31, 2015, have a deferred tax liability of $12 million. The Company has the intent and ability to indefinitely reinvest its non-U.S. subsidiaries’ unremitted earnings, with certain exceptions, as these earnings are no longer expected to be repatriated to the United States to meet the Company’s U.S. cash needs. Rather, the Company intends to reinvest the non-U.S. earnings in the growth of its non-U.S. businesses. The tax benefit for 2015 was also favorably impacted as a result of profits generated in non-U.S. tax jurisdictions with lower tax rates than the U.S. statutory tax rate. The Company recorded a tax charge of $2 million during 2015 for interest and penalties related to unrecognized tax benefits. As of December 31, 2015, the Company had $28 million of unrecognized tax benefits that if recognized would favorably affect the effective tax rate and $9 million of interest and penalties associated with unrecognized tax benefits.

The Company had a tax benefit for 2014 which was primarily due to a significant amount of deductible expenses in the U.S. related to the redemption of the Company’s 12.5% Senior Notes and Senior PIK Notes, the termination of the management services agreement with affiliates of the Sponsors, and non-executive Phantom SARs compensation expense. In addition, the Company’s effective tax rate was impacted as a result of profits generated in non-U.S. tax jurisdictions with lower tax rates than the U.S. statutory tax rate and by deferred U.S. income tax expense related to non-U.S. earnings net of associated tax credits. The Company also recorded a tax benefit of $6 million in the second quarter of 2014 as a result of the conclusion of a U.S. Federal income tax examination for 2010 and 2011. The Company recorded a tax charge of $3 million during 2014 for interest and penalties related to unrecognized tax benefits. As of December 31, 2014, the Company had $28 million of unrecognized tax benefits that if recognized would favorably affect the effective tax rate and $9 million of interest and penalties associated with unrecognized tax benefits.

In 2014, the Company completed the restructuring of its foreign operations and fully integrated its U.K., Spain and Austria businesses under the Company's main European holding company in Switzerland. The initial steps of the restructuring started during the fourth quarter of 2013. The restructuring significantly affected the book over tax basis differences among group members and the ultimate worldwide tax cost of a theoretical recognition of such differences. As a result, the associated deferred tax liability was reduced by approximately $5 million and $86 million as of December 31, 2014 and 2013, respectively.

In 2013, the Company’s effective tax rate was favorably impacted by a tax reduction of $10 million as a result of the conclusion of U.S. audits. In connection with one of the audits, the Company received a $47 million refund for which a receivable had been previously established. The Company also recorded tax reductions of $5 million as a result of the expiration of various statutes of limitation and $2 million for the reversal of a valuation allowance due to a change in enacted state tax law changes. The Company recorded a tax charge of $2 million during 2013 for interest and penalties related to unrecognized tax benefits. As of December 31, 2013, the Company had $38 million of unrecognized tax benefits that if recognized would favorably affect the effective tax rate and $11 million of interest and penalties associated with unrecognized tax benefits.

The Company files numerous consolidated and separate income tax returns in U.S. (federal and state) and non-U.S. jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal income tax examination by tax authorities for

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Notes to Consolidated Financial Statements - Continued

years before 2012, in state and local jurisdictions for years prior to 2011, and in its material non-U.S. jurisdictions prior to 2011. It is reasonably possible that within the next twelve months the Company could realize $3 million of unrecognized tax benefits as a result of the expiration of certain statutes of limitation.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Years Ended December 31,
(in millions)	2015			2014			2013
Gross unrecognized tax benefits at beginning of year	$	30		$	42		$	42
Gross (decreases) increases – prior period positions		—			(10	)		—
Gross increases – current period positions		4			5			11
Increases (decreases) – settlement with tax authorities		—			—			(7	)
Reductions – lapse of statute of limitations		(3	)		(4	)		(4	)
Other		1			(3	)		—
Gross unrecognized tax benefits at end of year	$	32		$	30		$	42

The Company’s deferred tax assets (liabilities) are comprised of the following at December 31:

	At December 31,
(in millions)	2015			2014
Deferred Tax Assets:
Net operating losses	$	265		$	211
Foreign tax credits		145			127
Employment benefits		18			14
Deferred revenues		20			14
Equity compensation		34			36
Postemployment benefits		17			8
Non-U.S. intangibles		2			5
Accrued liabilities		10			11
Other		61			50
		572			476
Valuation allowance		(101	)		(66	)
Total deferred tax assets	$	471		$	410
Deferred Tax Liabilities:
Intangible assets	$	(660	)	$	(711	)
Undistributed earnings		(12	)		(266	)
Computer software		(159	)		(118	)
Depreciation		(10	)		(11	)
Foreign exchange		(117	)		(50	)
Other		(24	)		(55	)
Total deferred tax liabilities	$	(982	)	$	(1,211	)
Net Deferred Tax Liability	$	(511	)	$	(801	)

The Company had federal, state and local, and non-U.S. tax credit and tax loss carryforwards, the tax effect of which was $433 million as of December 31, 2015. Of this amount, $26 million has an indefinite carryforward period, and the remaining $407 million expires at various times beginning in 2016. As of December 31, 2015, the Company had $101 million of valuation allowances established against state and local and non-U.S. net operating losses that based on available evidence, are more likely than not to expire before they can be utilized.

The table of deferred tax assets and liabilities shown above does not include certain deferred tax assets as of December 31, 2015 that arose directly from tax deductions related to equity compensation greater than compensation recognized for financial reporting. The Company had a federal net operating loss carryforward for tax purposes of $399 million as of December 31, 2015. The gross amount of net operating loss carryforwards for which a tax benefit would be recorded to additional paid-in capital if and when income

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IMS HEALTH HOLDINGS, INC.

Notes to Consolidated Financial Statements - Continued

taxes payable is reduced was approximately $78 million as of December 31, 2015. The Company uses tax law ordering in determining when excess tax benefits have been realized.

As of December 31, 2015, there is a book-over-tax basis difference with respect to the investments in non-U.S. subsidiaries of approximately $1,571 million. This basis difference relates to purchase accounting adjustments of approximately $826 million and undistributed earnings of approximately $745 million. The Company intends to indefinitely reinvest all unremitted earnings outside the U.S. with limited exceptions. As of December 31, 2015, deferred income taxes of $12 million have been provided on such earnings and approximately $270 million have not been provided on such earnings.

Note 12. Commitments

The Company’s contractual obligations include facility leases, agreements to purchase data and telecommunications services, and computer and other leases. At December 31, 2015, the minimum annual payment under these agreements and other contracts that have initial or remaining non-cancelable terms in excess of one year are as listed in the following table:

(in millions)	2016		2017		2018		2019		2020		Thereafter		Total
Operating leases(1)	$	66	$	52	$	41	$	31	$	29	$	51	$	270
Data acquisition and telecommunication services(2)		253		143		62		48		37		9		552
Computer and other leases(3)		23		16		10		7		3		—		59
Total	$	342	$	211	$	113	$	86	$	69	$	60	$	881

⁽¹⁾ Rental expense under real estate operating leases for the years ended 2015, 2014 and 2013 were $70 million, $51 million and $49 million, respectively.

⁽²⁾ Expense under data acquisition and telecommunications long-term contracts for the years ended 2015, 2014 and 2013 were $263 million, $221 million and $215 million, respectively.

⁽³⁾ Rental expense under computer and other leases for the years ended 2015, 2014 and 2013 were $26 million, $28 million and $25 million, respectively. These leases are frequently renegotiated or otherwise changed as advancements in computer technology produce opportunities to lower costs and improve performance.

Note 13. Contingencies

The Company and its subsidiaries are involved in legal and tax proceedings, claims and litigation arising in the ordinary course of business. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. For those matters where management currently believes it is probable that the Company will incur a loss and that the probable loss or range of loss can be reasonably estimated, the Company has recorded reserves in the Consolidated Financial Statements based on its best estimates of such loss. In other instances, because of the uncertainties related to either the probable outcome or the amount or range of loss, management is unable to make a reasonable estimate of a liability, if any. However, even in many instances where the Company has recorded an estimated liability, the Company is unable to predict with certainty the final outcome of the matter or whether resolution of the matter will materially affect the Company’s results of operations, financial position or cash flows. As additional information becomes available, the Company adjusts its assessments and estimates of such liabilities accordingly.

The Company routinely enters into agreements with its suppliers to acquire data and with its clients to sell data, all in the normal course of business. In these agreements, the Company sometimes agrees to indemnify and hold harmless the other party for any damages such other party may suffer as a result of potential intellectual property infringement and other claims related to the use of the data. The Company has not accrued a liability with respect to these matters, as the exposure is considered remote.

Based on its review of the latest information available, management does not expect the impact of pending legal and tax proceedings, claims and litigation, either individually or in the aggregate, to have a material adverse effect on the Company’s results of operations, cash flows or financial position. However, one or more unfavorable outcomes in any claim or litigation against the Company could have a material adverse effect for the period in which it is resolved. The following is a summary of certain legal matters involving the Company.

IMS Health Government Solutions Voluntary Disclosure Program Participation

The Company’s wholly-owned subsidiary, IMS Government Solutions Inc. (“IMS Government Solutions”), is primarily engaged in providing services and products under contracts with the U.S. government. U.S. government contracts are subject to extensive legal and regulatory requirements and, from time to time, agencies of the U.S. government have the ability to investigate whether contractors’ operations are being conducted in accordance with such requirements. U.S. government investigations, whether relating to these contracts or conducted for other reasons, could result in administrative, civil or criminal liabilities, including

94

IMS HEALTH HOLDINGS, INC.

Notes to Consolidated Financial Statements - Continued

repayments, fines or penalties being imposed on us, or could lead to suspension or debarment from future U.S. government contracting. U.S. government investigations often take years to complete and may result in no adverse action against the Company.

IMS Government Solutions discovered potential noncompliance with various contract clauses and requirements under its General Services Administration Contract (the “GSA Contract”) which was awarded in 2002 to its predecessor company, Synchronous Knowledge Inc. (Synchronous Knowledge Inc. was acquired by IMS Health in May 2005). The potential noncompliance arose from three primary areas: first, at the direction of the government, work performed under one task order was invoiced under another task order without the appropriate modifications to the orders being made; second, personnel who did not meet strict compliance with the labor categories component of the qualification requirements of the GSA Contract were assigned to contracts; and third, certain discounts that were given to commercial customers were not also offered to the government, in alleged violation of the GSA Contract’s Price Reductions Clause. Upon discovery of the potential noncompliance, the Company began remediation efforts, promptly disclosed the potential noncompliance to the U.S. government, and was accepted into the Department of Defense Voluntary Disclosure Program. The Company filed its Voluntary Disclosure Program Report (“Disclosure Report”) on August 29, 2008. Based on the Company’s findings as disclosed in the Disclosure Report, the Company recorded a reserve of approximately $4 million for this matter in 2008. During 2010, the Company recorded an additional reserve of approximately $2 million as a result of its ongoing investigation relating to this matter. In September 2014, the General Services Administration offered to settle the third matter described above (i.e., the Price Reductions Clause aspect of the Disclosure Report) for $1.5 million, in-line with the amount the Company had recorded for this area of potential noncompliance. On April 23, 2015, the Company and the government executed the settlement agreement and made the $1.5 million payment. The Company is currently unable to determine the outcome of all of these matters pending the resolution of the Voluntary Disclosure Program process and its ultimate liability arising from these matters could exceed its current reserves.

Symphony Health Solutions litigation

On July 24, 2013, Symphony Health Solutions and two of its subsidiaries (collectively “Symphony”) filed a lawsuit in the U.S. District Court for the Eastern District of Pennsylvania against IMS Health alleging anticompetitive business practices in violation of the Sherman Antitrust Act and Pennsylvania State law. IMS Health asserted various counterclaims in that lawsuit. On December 20, 2013, IMS Health filed a lawsuit in the U.S. District Court for the District of Delaware against Symphony for infringement of three patents seeking injunctive relief and damages. In late 2015, the Company and Symphony entered into a settlement agreement whereby each of the parties agreed to terminate their respective lawsuits, and these lawsuits were dismissed with prejudice in January, 2016.

Note 14. Supplemental Financial Data

The following tables summarize information related to the Company’s Statements of Financial Position:

	December 31,
(in millions)	2015			2014
Accounts Receivable, net:
Trade	$	460		$	296
Allowances		(9	)		(5	)
Unbilled receivables		57			39
Accounts receivable, net	$	508		$	330

	December 31,
(in millions)	2015		2014
Other Current Assets:
Deferred income taxes	$	—	$	105
Prepaid expenses		71		59
Work-in-process inventory		59		49
Income taxes receivable		10		4
Restricted cash		10		24
Other		38		53
Other current assets	$	188	$	294

95

IMS HEALTH HOLDINGS, INC.

Notes to Consolidated Financial Statements - Continued

	Estimated	December 31,
(in millions)	Useful Lives	2015			2014
Property, Plant and Equipment, net:
Buildings and improvements	40 - 50 years	$	53		$	54
Machinery and equipment	3 - 15 years		209			189
Leasehold improvements	1 - 11 years		48			43
Construction-in-progress			4			5
Property, plant and equipment, gross			314			291
Accumulated depreciation and amortization			(147	)		(138	)
Property, plant and equipment, net		$	167		$	153

Depreciation expense was $44 million, $48 million and $37 million for the years ended December 31, 2015, 2014 and 2013, respectively.

(in millions)
Computer Software, net:
December 31, 2013	$	263
Additions at cost		95
Acquisitions		2
Amortization		(103	)
Impairments, foreign exchange and other		1
December 31, 2014		258
Additions at cost		131
Acquisitions		41
Amortization		(117	)
Impairments, foreign exchange and other		(4	)
December 31, 2015	$	309

Accumulated amortization of total computer software was $452 million and $385 million at December 31, 2015 and 2014, respectively. Amortization expense was $86 million for the year ended December 31, 2013.

	December 31,
(in millions)	2015		2014
Other Assets:
Long-term pension assets	$	53	$	57
Securities and other investments		11		3
Long-term deferred tax asset		15		7
Other		30		45
Other assets	$	109	$	112

	December 31,
(in millions)	2015		2014
Accounts Payable:
Trade	$	53	$	25
Taxes other than income taxes		94		58
Other		16		4
Accounts payable	$	163	$	87

96

IMS HEALTH HOLDINGS, INC.

Notes to Consolidated Financial Statements - Continued

	December 31,
(in millions)	2015		2014
Accrued and Other Current Liabilities:
Salaries, wages, bonuses and other compensation	$	165	$	171
Accrued data acquisition costs		81		86
Accrued interest		18		17
Accrued professional fees		48		35
Accrued income taxes		36		42
Deferred tax liability		—		9
Accrued severance and other costs		56		21
Contingent consideration liability		16		18
Accrued loyalty (1)		99		—
Other		92		82
Accrued and other current liabilities	$	611	$	481

⁽¹⁾ The Company owns businesses that manage co-pay reimbursements on behalf of its pharmaceutical customers. These customers prefund the reimbursements, and the Company includes this cash on its balance sheet. The Company draws on this cash to pay pharmacies as consumers use these programs.

	December 31,
(in millions)	2015		2014
Other Liabilities:
Long-term uncertain tax benefits reserve	$	19	$	19
Contingent consideration liability		12		6
Other		52		56
Other liabilities	$	83	$	81

Note 15. Related Party

Management Services Agreement

The Company had a management services agreement with affiliates of the Sponsors pursuant to which they would provide management services to the Company. In conjunction with the Company’s IPO, the management services agreement was terminated for a settlement amount of $72 million and the Company recorded this charge as a component of Selling and administrative expenses, exclusive of depreciation and amortization in the Consolidated Statements of Comprehensive Income (Loss) in 2014. Prior to the termination of the management services agreement, the Company paid an additional $2 million in 2014 in monitoring fees pursuant to the management services agreement. During 2013, the Company paid approximately $8 million in monitoring fees.

Note 16. Operations by Business Segment

Operating segments are defined as components of an enterprise about which financial information is available that is evaluated on a regular basis by the chief operating decision-maker, or decision-making groups, in deciding how to allocate resources to an individual segment and in assessing performance of the segment. The Company operates a globally consistent business model, offering clients in the healthcare industry with comprehensive solutions to measure and improve their performance.

The Company maintains regional geographic management who are responsible for bringing the Company’s full suite of offerings to their respective markets and to facilitate local execution of its global strategies. However, the Company maintains global leaders for the majority of its critical business processes; and the most significant performance evaluations and resource allocations made by the Company’s chief operating decision maker is made on a global basis. As such, the Company has concluded that it maintains one operating and reportable segment.

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IMS HEALTH HOLDINGS, INC.

Notes to Consolidated Financial Statements - Continued

Geographic Financial Information

The following represents selected geographic information for the regions in which the Company operates.

(in millions)	Americas(1)		EMEA(2)		Asia Pacific(3)		Corporate & Other			Total
As of or For the Years Ended December 31,
2015
Revenue(4)	$	1,326	$	1,157	$	438	$	-		$	2,921
Operating income (loss)(5)		222		215		117		(190	)		364
Total assets		4,144		2,200		1,112		3			7,459
2014
Revenue(4)	$	1,205	$	1,007	$	429	$	-		$	2,641
Operating income (loss)(5)		283		276		134		(485	)		208
Total assets		3,833		2,035		1,112		116			7,096
2013
Revenue(4)	$	1,160	$	951	$	433	$	-		$	2,544
Operating income (loss)(5)		297		276		147		(366	)		354
Total assets		4,065		2,450		1,266		127			7,908

 In April 2015, the Company realigned its regional reporting so that India, Sri Lanka and Bangladesh are included in EMEA. Previously, these countries had been included in the Asia Pacific region. Additionally in 2015, the Company made changes to its geographic reporting classifications to move some functions out of Corporate and Other and into the regions. As a result of these changes, reclassifications of prior years’ geographic financial information were made to conform to the current year presentation. The reclassifications did not change previously reported Consolidated Results of Operations.

⁽¹⁾ Americas includes the United States, Canada and Latin America. Revenue in the United States was $1,127 million, $986 million and $935 million for the years ended December 31, 2015, 2014 and 2013, respectively. Total U.S. assets were $4,046 million, $3,659 million and $3,837 million at December 31, 2015, 2014 and 2013, respectively.

⁽²⁾ EMEA includes countries in Europe, the Middle East and Africa, and the countries of India, Sri Lanka and Bangladesh.

⁽³⁾ Asia Pacific includes Japan, Australia and other countries in the Asia Pacific region, excluding India, Sri Lanka and Bangladesh. Revenue in Japan was $245 million, $252 million and $261 million for the years ended December 31, 2015, 2014 and 2013, respectively.

⁽⁴⁾ Revenue relates to external clients and is primarily based on the location of the client. Revenue for the geographic regions includes the impact of foreign exchange in converting results into U.S. Dollars.

⁽⁵⁾ Operating income (loss) for the three geographic regions does not reflect the allocation of certain expenses that are maintained in Corporate and Other and as such, is not a true measure of the respective regions’ profitability. The Operating income (loss) amounts for the geographic regions include the impact of foreign exchange in converting results into U.S. Dollars. The following presents the depreciation and amortization for certain intangible assets recorded in connection with a merger transaction completed in 2010 by region that are included in Corporate and Other:

(in millions)	Americas		EMEA		Asia Pacific
For the Years Ended December 31,
2015	$	83	$	26	$	24
2014		126		86		39
2013		126		87		42

Note 17. Earnings (Loss) per Share

The following table presents the composition of basic and diluted weighted average shares outstanding:

	Years Ended December 31,
(Shares in millions)	2015		2014		2013
Basic weighted-average common shares outstanding		331.0		319.0		280.0
Effect of dilutive stock-based awards		8.3		—		7.0
Diluted weighted-average common shares outstanding		339.3		319.0		287.0
Shares excluded from computation of diluted (loss) earnings per share:
Weighted average potential common shares excluded from computation due to anti-dilutive effect		1.6		18.7		—

98

IMS HEALTH HOLDINGS, INC.

Notes to Consolidated Financial Statements - Continued

Note 18. Subsequent Events

Senior Secured Credit Facilities

In January 2016, IMS Health entered into an amendment (the “2016 Amendment”) to the Third Amended and Restated Credit and Guaranty Agreement, dated as of March 17, 2014, among IMS Health, IMS AG and IMS Japan K.K., as co-borrowers, Healthcare Technology Intermediate Holdings, Inc., Bank of America, N.A. and the other lenders party thereto. The 2016 Amendment increased outstanding commitments under the Company’s existing Term A loans by $300 million. The proceeds from the additional Term A loans will be used for general corporate purposes, including funding acquisitions and repaying existing loans under IMS Health’s senior secured revolving credit facility.

99

SCHEDULE I

IMS Health Holdings, INC.

Parent Company Only

Condensed Statements of Financial Position

	December 31,
(in millions)	2015		2014
Assets
Current Assets:
Other current assets	$	4	$	5
Amounts receivable from subsidiaries		16		16
Total Current Assets		20		21
Investment in subsidiaries		1,533		1,538
Other assets		67		58
Total Assets	$	1,620	$	1,617
Liabilities and Shareholders’ Equity
Current Liabilities:
Amounts payable to subsidiaries	$	48	$	75
Total Liabilities	$	48	$	75
Shareholders’ Equity		1,572		1,542
Total Liabilities and Shareholders’ Equity	$	1,620	$	1,617

100

IMS Health Holdings, INC.

Parent Company Only

Condensed Statements of Comprehensive Income (Loss)

	Years Ended December 31,
(in millions)	2015			2014			2013
Operating costs of information	$	2		$	6		$	3
Direct and incremental costs of technology services		2			5			2
Selling and administrative expenses		21			47			17
Loss before income taxes and equity in net income (loss) of subsidiaries		(25	)		(58	)		(22	)
Benefit from income taxes		8			19			7
Equity in net income (loss) of subsidiaries		434			(150	)		97
Net income (loss)	$	417		$	(189	)	$	82
Other Comprehensive Loss:
Cumulative translation adjustment (net of taxes of $(42), $(27) and $—, respectively)	$	(118	)	$	(178	)	$	(183	)
Unrealized gains on derivatives (net of taxes of $—, $— and $(4), respectively)		1			2			9
Gains on derivative instruments, reclassified into earnings (net of taxes of $9, $2 and $5, respectively)		(15	)		(4	)		(9	)
Postretirement and postemployment adjustments (net of taxes of $—, $13 and $(16), respectively)		(1	)		(30	)		24
Other Comprehensive Loss	$	(133	)	$	(210	)	$	(159	)
Total Comprehensive Income (Loss)	$	284		$	(399	)	$	(77	)

101

IMS Health Holdings, INC.

Parent Company Only

Condensed Statements of Cash Flows

	Years Ended December 31,
(in millions)	2015		2014		2013
Net Cash Provided by (Used in) Operating Activities	$	—	$	—	$	—
Net Cash Provided by (Used in) Investing Activities		—		—		—
Net Cash Provided by (Used in) Financing Activities		—		—		—
Increase (Decrease) in Cash and Cash Equivalents		—		—		—
Cash and Cash Equivalents, Beginning of Period		—		—		—
Cash and Cash Equivalents, End of Period	$	—	$	—	$	—
Non-Cash Investing and Financing Activities:
Acquisitions of treasury stock	$	314	$	—	$	—
Dividends paid		—		—		(753	)

102

IMS Health Holdings, INC.

Parent Company Only

Notes to Condensed Financial Statements

Basis of Presentation

IMS Health Holdings, Inc. (the “Parent Company”) has accounted for the earnings of its subsidiaries under the equity method of accounting in these unconsolidated condensed financial statements. There are restrictions on the Parent Company’s ability to obtain funds from any of its subsidiaries. Accordingly, these condensed financial statements have been presented on a Parent-only basis. The notes to the condensed financial statements are an integral part of these condensed financial statements.

Share Repurchase

In December 2015, the Parent Company purchased 670 thousand shares of its common stock having an aggregate value of approximately $17 million at an average price of $25.70 per share. In May 2015, the Parent Company purchased 11.1 million shares of its common stock at $27.0875 per share from the underwriters in a registered public offering of the Company’s common stock by affiliates of certain of the Parent Company’s shareholders having an aggregate value of approximately $300 million. The share repurchases were paid by a subsidiary of the Parent Company.

Dividends

In August 2013, the Parent Company declared and paid a dividend to shareholders of $2.60 per share for a total of $753 million. The dividend was paid by a subsidiary of the Parent Company.

Commitments and Contingencies

The Parent Company had no material commitments during the reported periods.

103

SCHEDULE II

IMS Health Holdings, INC.

Valuation and Qualifying Accounts

For the Years Ended December 31, 2015, 2014 and 2013

(in millions)	Balance at Beginning of Period		Additions Charged to Costs and Expenses(a)		Deductions			Balance at End of Period
Valuation Allowance for Deferred Income Taxes
Year ended December 31, 2015	$	66	$	35	$	—		$	101
Year ended December 31, 2014		49		21		(4	)		66
Year ended December 31, 2013		45		9		(5	)		49

^(a) Valuation allowances on assets related to additional Net Operating Losses created during the year where, based on available evidence, it is more likely than not that such assets will not be realized.

104

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports that the Company files or submits to the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

The Company’s Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, 2015 (the “Evaluation Date”). Based on such evaluation, such officers have concluded that, as of the Evaluation Date, the Company’s disclosure controls and procedures are effective.

Management’s Report on Internal Control Over Financial Reporting

Management’s report on internal control over financial reporting and the report of independent registered public accounting firm are set forth in Part II, Item 8 of this Annual Report on Form 10-K and are incorporated herein by reference.

Changes in Internal Control Over Financial Reporting

There have been no changes in the Company’s internal control over financial reporting that occurred during the quarter ended December 31, 2015 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Item 9B. Other Information

None.

105

PART III

Item 10. Directors, Executive Officers and Corporate Governance

Information required by this Item, other than the information regarding the executive officers of the Company set forth below, is incorporated by reference to the sections of our definitive Proxy Statement for our 2016 Annual Meeting of Stockholders (the “2016 Proxy Statement”) entitled “Proposal 1—Election of Directors,” “Security Ownership of Certain Beneficial Owners and Management—Section 16(a) Beneficial Ownership Reporting Compliance,” “Corporate Governance at IMS Health—Documents Establishing our Corporate Governance” and “Corporate Governance at IMS Health—Committees of the Board.”  

The current executive officers of the Company are as follows:

Name	Age	Title
Ari Bousbib	54	Director, Chairman, Chief Executive Officer and President
Ronald E. Bruehlman	55	Senior Vice President and Chief Financial Officer
Harvey A. Ashman	53	Senior Vice President, General Counsel, External Affairs and Corporate Secretary
Harshan Bhangdia	50	Vice President, Controller and Principal Accounting Officer
Robert Chu	49	Senior Vice President, Technology Solutions
José Luis Fernández	51	Senior Vice President, Global Services
Kevin C. Knightly	55	Senior Vice President, Information Offerings
Clinton J. Wolfe	46	Vice President, Human Resources

Ari Bousbib, Director, Chairman, Chief Executive Officer & President

Mr. Bousbib was appointed Chief Executive Officer and President of IMS Health in September 2010 and was appointed to the additional role of Chairman in December 2010. Prior to joining IMS Health, Mr. Bousbib spent 14 years at United Technologies Corporation (“UTC”). From 2008 until 2010, he served as President of UTC’s Commercial Companies. From 2002 until 2008, Mr. Bousbib was President of Otis Elevator Company, and from 2000 to 2002 he served as its Chief Operating Officer. Previously, Mr. Bousbib was a partner at Booz Allen Hamilton. Mr. Bousbib currently serves on the board of directors of The Home Depot, Inc., and is a member of the Harvard Medical School Health Care Policy Advisory Council. He previously served on the board of directors of Best Buy, Inc. Mr. Bousbib holds a Master of Science Degree in Mathematics and Mechanical Engineering from the Ecole Superieure des Travaux Publics, Paris, and an M.B.A. from Columbia University.

Ronald E. Bruehlman, Senior Vice President and Chief Financial Officer

Mr. Bruehlman has served as Senior Vice President and Chief Financial Officer since July 2011. Prior to joining the Company, Mr. Bruehlman worked for 23 years at UTC, advancing through finance positions of increasing responsibility, culminating in his appointment as Vice President, Business Development, which he held from June 2009 to April 2011, where he led the company’s global strategy and development activities. From June 2005 until May 2008, he was Vice President and Chief Financial Officer of Carrier Corporation. Prior to that, Mr. Bruehlman was Vice President, Financial Planning and Analysis for UTC and also served as Director, Investor Relations of UTC. Mr. Bruehlman has served as a director of The Connecticut Forum since 2005. He also served as a director of The New England Air Museum from 2009 through 2013. Mr. Bruehlman holds a B.S. in Economics from the University of Delaware, and an M.B.A. from the University of Chicago.

Harvey A. Ashman, Senior Vice President, General Counsel, External Affairs and Corporate Secretary

Mr. Ashman has served as Senior Vice President, General Counsel, External Affairs and Corporate Secretary since October 2009. From April 2008 to October 2009, Mr. Ashman served as Vice President, External Affairs and Associate General Counsel for the Company’s Americas region, and from April 1999 to April 2008, as Vice President and Associate General Counsel for the Americas region. Mr. Ashman joined the Company in 1988. Mr. Ashman holds a B.A. from the University of Massachusetts, Amherst, and a J.D. from the New England School of Law.

Harshan Bhangdia, Vice President, Controller and Principal Accounting Officer

Mr. Bhangdia has served as Vice President, Controller and Principal Accounting Office since 2007. Mr. Bhangdia previously served as acting Chief Financial Officer from January 2011 to July 2011. From February 2006 to January 2007, Mr. Bhangdia served as Vice President and Chief Financial Officer of the Company’s Consulting and Services operations. Prior to joining the Company in 2001, Mr. Bhangdia served as Senior Vice President and Chief Financial Officer of Juno Online Services. Prior to that, Mr. Bhangdia served as an audit manager at PricewaterhouseCoopers. Mr. Bhangdia holds a B.A. degree from Wagner College and an M.B.A. from Pace University’s Lubin School of Business. Mr. Bhangdia has been a Certified Public Accountant since 1994.

106

Robert Chu, Vice President, Technology Solutions

Mr. Chu has served as Senior Vice President, Technology Solutions since April 2015. From July 2013 to April 2015, Mr. Chu served as President, Asia Pacific and China. Since joining the Company in 2007, Mr. Chu has held leadership roles of increasing responsibility in technology, offerings development, sales, consulting and services, culminating in his appointment as General Manager, France in 2011. Prior to joining the Company, Mr. Chu worked at IBM for 15 years, serving in a variety of management positions for the company in Europe and the United States. Mr. Chu holds a Master’s degree from École Polytechnique in Palaiseau, France and a Master of Engineering, Computer Science degree from École Nationale Supérieure des Télécommunications in Brest, France.

José Luis Fernández, Senior Vice President, Global Services

Mr. Fernández has served as Senior Vice President, Global Services since January 2014. From January 2011 to December 2013, Mr. Fernández served as President of the Company’s South Europe & Middle East operations. From 2008 to 2010, Mr. Fernández served as General Manager of the Company’s consulting and services business in EMEA, and prior to that was general manager of the Company’s EMEA mid-size markets and operations and general manager in Spain. Prior to joining the Company in 2000, Mr. Fernández held a variety of sales, marketing and commercial effectiveness roles with AstraZeneca in Europe. Mr. Fernández began his career at Accenture as a management consultant focused on commercial strategy for the pharmaceutical, consumer goods and auto sectors. Mr. Fernández holds an advanced degree in Industrial Engineering from Madrid Polytechnic University.

Kevin C. Knightly, Senior Vice President, Information Offerings

Mr. Knightly has served as Senior Vice President, Information Offerings since April 2015. From January 2011 to March 2015, Mr. Knightly served as Senior Vice President, Supplier Management. Prior to that, Mr. Knightly served in a number of senior financial, operations, marketing and general management roles for the Company, including as Senior Vice President, Pharma Business Management from 2007 until 2010. Mr. Knightly holds a B.S. in Economics and Accounting from the College of the Holy Cross, and an M.B.A. from New York University’s Stern Business School.

Clinton J. Wolfe, Vice President, Human Resources

Mr. Wolfe has served as Vice President, Human Resources since January 2015. From March 2014 to December 2014, Mr. Wolfe served as Vice President, Human Resources Operations. Since joining IMS Health in 2000, Mr. Wolfe has held a number of human resources roles of increasing scope and responsibility, including leadership posts for the Company’s U.S. Business Unit from 2012 to 2014 and its Asia Pacific operations from 2010 to 2012. Prior to that, Mr. Wolfe was director, Global Talent Acquisition from 2006 to 2010 and director, U.S. Recruiting & Staffing from 2005 to 2006. Mr. Wolfe holds a B.A. in English and an M.S. in Management Studies from Pennsylvania State University.

Item 11. Executive Compensation

Information in response to this Item will be set forth in the sections entitled “Executive Compensation,” “Compensation Committee Interlocks and Insider Participation” and “Compensation Committee Report” in our 2016 Proxy Statement, which information is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Information in response to this Item, other than Securities Authorized for Issuance Under Equity Compensation Plans, will be set forth in the section entitled “Security Ownership of Certain Beneficial Owners and Management” in the Company’s 2016 Proxy Statement, which information is incorporated herein by reference.

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Securities Authorized for Issuance Under Equity Compensation Plans

The following table provides information as of December 31, 2015, regarding certain outstanding awards and shares remaining available for future issuance under our compensation plans under which equity securities are authorized for issuance:

Plan Category	Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights (a)		Weighted-Average Exercise Price of Outstanding Options Warrants and Rights (b)		Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (excluding securities reflected in column (a)) (4) (c)
Equity compensation plans approved by security holders	14,921,279	(1)	$9.39		26,134,015
Equity compensation plans not approved by security holders	97,629	(2)	—		—
Total	15,018,908		$9.39	(3)	26,134,015

⁽¹⁾ Consists of: (i) 6,943,600 shares of common stock issuable upon the exercise of outstanding time-based stock options and 3,498,550 shares of common stock issuable upon the exercise of outstanding performance-based stock options awarded under the 2010 Equity Plan; (ii) 175,577 shares and 1,460,838 shares of common stock issuable upon the exercise of outstanding SARs awarded under the 2010 Equity Plan and 2014 Equity Plan, respectively;  (iii) 1,376,251 shares of common stock issuable pursuant to outstanding restricted stock units awarded under the 2010 Equity Plan; (iv) 923,962 shares of common stock issuable pursuant to outstanding restricted stock awarded under the 2014 Equity Plan and (v) 542,501 shares of common stock issuable pursuant to outstanding performance share awards, assuming performance at the target level. Up to an additional 542,501 shares of common stock could be issued if performance goals are achieved above target.

⁽²⁾ The number of securities to be issued for equity compensation plans not approved by security holders consists of outstanding awards issued to certain executives with supplemental pension benefits in accordance with their individual employment arrangements under our Defined Contribution Executive Retirement Plan ("DC ERP").

⁽³⁾ The weighted-average exercise price includes all outstanding stock options but does not include performance shares, restricted stock units restricted stock or DC ERP awards, all of which do not have an exercise price.

⁽⁴⁾ Consists of all securities remaining available under the 2014 Equity Plan.

Items 13. Certain Relationships and Related Party Transactions, and Director Independence

Information in response to this Item will be set forth in the section entitled “Proposal No 1: Election of Directors” in our 2016 Proxy Statement, which information is incorporated herein by reference.

Item 14. Principal Accounting Fees and Services

Information in response to this Item will be set forth in the section entitled “Proposal No. 2: Ratification of the Appointment of the Independent Registered Public Accounting Firm” in our 2016 Proxy Statement, which information is incorporated herein by reference.

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PART IV

Item 15. Exhibits and Financial Statement Schedules

(a) 1. Consolidated Financial Statements and Report of Independent Registered Public Accounting Firm

See Index on page 54.

2. Financial Statement Schedules

See Index on page 54. All other schedules are omitted because they are not applicable or because the required information is shown in the Consolidated Financial Statements and Notes.

(b) Index to Exhibits

Exhibit Number		Exhibit Description
3.1		Amended and Restated Certificate of Incorporation of IMS Health Holdings, Inc., incorporated herein by reference to the Company’s Form 8-K filed with the SEC on April 9, 2014.
3.2		Amended and Restated Bylaws of IMS Health Holdings, Inc., incorporated herein by reference to Amendment 3 to the Company’s Form 8-K filed with the SEC on April 9, 2014.
4.1		Senior Note Indenture, dated as of October 24, 2012, among IMS Health Incorporated, as Issuer, the Guarantors party thereto, and Wells Fargo Bank, National Association, as Trustee, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on January 2, 2014.
4.2		Senior Note Indenture, dated as of March 30, 2015, among IMS Health Incorporated, as Issuer, the Guarantors party thereto, and Deutsche Trustee Company Limited, as Trustee, incorporated herein by reference to the Company’s Quarterly Report on Form 10-Q for the quarterly period March 31, 2015.
4.3		Registration and Preemptive Rights Agreement, dated as of February 26, 2010, by and among IMS Health Holdings, Inc. and each of the Managers and Manager Designees named therein, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on January 2, 2014.
4.4		Amendment, dated April 9, 2014, to Registration and Preemptive Rights Agreement, incorporated herein by reference to the Company’s Form 8-K filed with the SEC on April 9, 2014.
10.1		Amended and Restated Shareholders’ Agreement, dated April 9, 2014, by and among TPG Partners V, L.P., TPG FOF V-A, L.P., TPG FOF V-B, L.P., TPG Partners VI, L.P., TPG FOF VI SPV, L.P., TPG Biotechnology Partners III, L.P., TPG Iceberg Co-Invest LLC, CPP Investment Board Private Holdings Inc., Green Equity Investors V, L.P., Green Equity Investors Side V, L.P., LGP Iceberg Coinvest, LLC and IMS Health Holdings, Inc., incorporated herein by reference to the Company’s Form 8-K filed with the SEC on April 9, 2014.
10.2†		Management Stockholders Agreement, dated as of February 26, 2010, by and among IMS Health Holdings, Inc., Healthcare Technology Acquisition, Inc., IMS Health Incorporated, and the Investors and the Managers named therein, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on January 2, 2014.
10.3		Third Amended and Restated Credit Agreement, dated as of March 17, 2014, among IMS Health Incorporated, as the Parent Borrower, IMS AG, as a Borrower, IMS Japan K.K., as a Borrower, Healthcare Technology Intermediate Holdings, Inc., as Holdings, Bank of America, N.A. as Administrative Agent, Swing Line Lender and L/C Issuer, and the other lenders party thereto, incorporated herein by reference to Amendment 3 to the Company’s Registration Statement on Form S-1 dated March 24, 2014.
10.4	Incremental Amendment No. 1, dated May 11, 2015, to Third Amended and Restated Credit and Guaranty Agreement, dated as of March 17, 2014, among IMS Health Incorporated, as the Parent Borrower, IMS AG, as a Borrower, IMS Japan K.K., as a Borrower, Healthcare Technology Intermediate Holdings, Inc., as Holdings, Bank of America, N.A. as Administrative Agent, Swing Line Lender and L/C Issuer, and the other lenders party thereto, incorporated herein by reference to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015.
10.5	Incremental Amendment No. 2, dated January 15, 2016, to Third Amended and Restated Credit and Guaranty Agreement, dated as of March 17, 2014, among IMS Health Incorporated, as the Parent Borrower, IMS AG, as a Borrower, IMS Japan K.K., as a Borrower, Healthcare Technology Intermediate Holdings, Inc., as Holdings, Bank of America, N.A. as Administrative Agent, Swing Line Lender and L/C Issuer, and the other lenders party thereto, incorporated herein by reference to the Company’s Form 8-K filed with the SEC on January 21, 2016.
10.6		Amended and Restated Pledge and Security Agreement, dated as of March 17, 2014, among Healthcare Technology Intermediate Holdings, Inc., IMS Health Incorporated, each of the grantors party thereto, and Bank of America, N.A., as Administrative Agent, incorporated herein by reference to Amendment 3 to the Company’s Registration Statement on Form S-1 filed with the SEC March 24, 2014.
10.7		U.S. Guaranty, dated as of March 17, 2014, among Healthcare Technology Intermediate Holdings, Inc., as Holdings, IMS Health Incorporated, as Parent Borrower, the other Guarantors party thereto from time to time, and Bank of America, N.A., as Administrative Agent, incorporated herein by reference to Amendment 3 to the Company’s Registration Statement on Form S-1 filed with the SEC March 24, 2014.
10.8†		2013 IMS Health Annual Incentive Compensation Plan, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on January 2, 2014.

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Exhibit Number		Exhibit Description
10.9†		IMS Health Incorporated Employee Protection Plan, as amended and restated effective as of September 1, 2009, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on January 2,  2014.
10.10†		First Amendment to the IMS Health Incorporated Employee Protection Plan, effective January 1, 2011, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on January 2, 2014.
10.11†		Second Amendment to the IMS Health Incorporated Employee Protection Plan, effective January 1, 2012, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on February 13, 2014.
10.12†		IMS Health Incorporated Defined Contribution Executive Retirement Plan, as amended and restated, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on January 2, 2014.
10.13†		IMS Health Incorporated Retirement Excess Plan, as amended and restated effective as of January 1, 2005, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on January 2,  2014.
10.14†		First Amendment to the IMS Health Incorporated Retirement Excess Plan, dated March 17, 2009, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on January 2, 2014.
10.15†		Second Amendment to the IMS Health Incorporated Retirement Excess Plan, dated December 8, 2009, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on January 2, 2014.
10.16†		Third Amendment to the IMS Health Incorporated Retirement Excess Plan, dated April 5, 2011, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on January 2, 2014.
10.17†		IMS Health Incorporated Savings Equalization Plan, as amended and restated effective as of January 1, 2011, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on January 2, 2014.
10.18†		Healthcare Technology Holdings, Inc. 2010 Equity Incentive Plan, as amended and restated, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on February 13, 2014.
10.19†		Form of Time- and Performance-Based Stock Option Award Agreement under the 2010 Equity Incentive Plan, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on January 2, 2014.
10.20†		Form of Time-Based Stock Option Award Agreement under the 2010 Equity Incentive Plan, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on January 2, 2014.
10.21†		Form of Director Stock Option Award Agreement under the 2010 Equity Incentive Plan, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on January 2, 2014.
10.22†		Form of Restricted Stock Unit Award Agreement under the 2010 Equity Incentive Plan, incorporated herein by reference to Amendment 2 to the Company’s Registration Statement on Form S-1 filed with the SEC on March 10, 2014.
10.23†		Form of Director Restricted Stock Unit Award Agreement under the 2010 Equity Incentive Plan, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on January 2, 2014.
10.24†		Form of Rollover Stock Appreciation Right Award Agreement under the 2010 Equity Incentive Plan, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on January 2, 2014.
10.25†		Senior Management Nonstatutory Option Agreement between Healthcare Technology Holdings, Inc. and Ari Bousbib, dated December 1, 2010, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on February 13, 2014.
10.26†		Senior Management Nonstatutory Option Agreement between Healthcare Technology Holdings, Inc. and Ari Bousbib, dated December 1, 2010, incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on February 13, 2014.
10.27†		Amended and Restated Employment Agreement among IMS Health Holdings, Inc., IMS Health Incorporated and Ari Bousbib, dated February 12, 2014, incorporated herein by reference to Amendment 2 to the Company’s Registration Statement on Form S-1 filed with the SEC on March 10, 2014.
10.28†		Form of Director and Officer Indemnification Agreement, incorporated herein by reference to Amendment 2 to the Company’s Registration Statement on Form S-1 filed with the SEC on March 10, 2014.
10.29†		2014 Incentive and Stock Award Plan, incorporated herein by reference to Amendment 2 to the Company’s Registration Statement on Form S-1 filed with the SEC on March 10, 2014.
10.30†		Form of Stock Appreciation Rights Agreement under the 2014 Incentive and Stock Award Plan, incorporated herein by reference to Company’s Form 8-K filed with the SEC on February 10, 2015.
10.31†		Form of Performance Share Award Agreement under the 2014 Incentive and Stock Award Plan, incorporated herein by reference to Company’s Form 8-K filed with the SEC on February 10, 2015.
10.32†		Restricted Stock Unit Award Agreement between IMS Health Holdings, Inc. and Ari Bousbib dated February 12, 2014, incorporated herein by reference to Amendment 2 to the Company’s Registration Statement on Form S-1 filed with the SEC on March 10, 2014.
10.33†*	Amendment No. 1, dated December 31, 2015, to Restricted Stock Unit Award Agreement between IMS Health Holdings, Inc. and Ari Bousbib dated February 12, 2014.
10.34†*	Stock Appreciation Rights Agreement between IMS Health Holdings, Inc. and Ari Bousbib, dated February 10, 2015.

110

Exhibit Number		Exhibit Description
10.35†*	Amendment No. 1, dated December 31, 2015, to Stock Appreciation Rights Agreement between IMS Health Holdings, Inc. and Ari Bousbib dated February 10, 2015.
10.36†*	Restricted Stock Award Agreement between IMS Health Holdings, Inc. and Ari Bousbib dated December 31, 2015.
21*		List of Subsidiaries.
23.1*		Consent of PricewaterhouseCoopers LLP.
31.1*		Certification of Chief Executive Officer and President, pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*		Certification of Senior 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.
32.1*		Certification of Chief Executive Officer and President, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*		Certification of Senior 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.
101		Interactive Data Files Pursuant to Rule 405 of Regulation S-T: (i) Consolidated Statements of Financial Position, (ii) Consolidated Statements of Comprehensive Income (Loss), (iii) Consolidated Statements of Cash Flows, (iv) Consolidated Statements of Shareholders’ Equity and (v) Notes to Consolidated Financial Statements.

Notes to Exhibits List:

†Management contract or compensatory plan or arrangement.

*Submitted electronically herewith.

111

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on February 19, 2016.

IMS HEALTH HOLDINGS, INC.

/s/ ARI BOUSBIB

Ari Bousbib

Chairman and Chief Executive Officer

(Principal Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the date indicated.

Signature	Title	Date
/S/ ARI BOUSBIB	Chairman and Chief Executive Officer; Director	February 19, 2016
Ari Bousbib	(Principal Executive Officer)
/S/ RONALD E. BRUEHLMAN	Senior Vice President and Chief Financial Officer	February 19, 2016
Ronald E. Bruehlman	(Principal Financial Officer)
/S/ HARSHAN BHANGDIA	Vice President, Controller	February 19, 2016
Harshan Bhangdia	(Principal Accounting Officer)
/S/ John G. Danhakl	Director	February 19, 2016
John G. Danhakl
/S/ James A. Fasano	Director	February 19, 2016
James A. Fasano
/S/ Karen L. Katen	Director	February 19, 2016
Karen L. Katen
/S/ SHARAD S. MANSUKANI, M.D.	Director	February 19, 2016
Sharad S. Mansukani, M.D.
/S/ RONALD A. RITTENMEYER	Director	February 19, 2016
Ronald A. Rittenmeyer
/S/ TODD B. SISITSKY	Director	February 19, 2016
Todd B. Sisitsky
/S/ BRYAN M. TAYLOR	Director	February 19, 2016
Bryan M. Taylor

112

EX-10.33

Exhibit 10.33

IMS HEALTH HOLDINGS, INC.

2010 EQUITY INCENTIVE PLAN

Amendment No. 1 to Restricted Stock Unit Award Agreement

This Amendment No. 1 to Restricted Stock Unit Award Agreement between IMS Health Holdings, Inc. (the “Company”) and Ari Bousbib ("Participant") is entered into as of this 31^st day of December, 2015.

WHEREAS, the Company and Participant desire to amend the terms of the Restricted Stock Unit Award Agreement, dated February 12, 2014, currently in effect (the “Agreement”), relating to 10 million Restricted Stock Units granted under the Company’s 2010 Equity Incentive Plan (the “2010 Plan”) in order to provide for accelerated vesting in certain cases at or following a Change in Control, as such term is defined in the 2014 Incentive and Stock Award Plan (the “2014 Plan”), or a Covered Transaction, as such term is defined in the 2010 Plan.  

NOW THEREFORE, the Company and Participant agree that the Agreement is hereby amended as follows:

1.Section 2 of the Agreement (“Vesting”) is hereby replaced in its entirety by the following (new language in italics; deleted language is struck through):

2.Vesting. This Award shall become vested as to 50% of the Shares on the second anniversary of the Grant Date and as to the remaining 50% of the Shares on the fourth anniversary of the Grant Date; provided that if, on the applicable vesting date, the Participant is on the applicable vesting date, and has been at all times since the date of this Agreement, employed by the Company or one of its subsidiaries; provided, however, that the Award is subject to accelerated vesting as follows:

(i) In the event there occurs a Covered Transaction, or Change in Control, in which there is no assumption, continuation, substitution or cash-out of all or a portion of this Award (the “Terminating RSUs”), the Terminating RSUs will vest immediately before the consummation of the Covered Transaction or other event relating to the Change in Control that would cause the Common Stock to cease to be outstanding.  For this purpose, the term “Change in Control” has the meanings as defined in the 2014 Plan.

(ii) In the event there occurs a Covered Transaction or a Change in Control in which the Restricted Stock Units will be assumed, continued, or substituted for (the “Continuing RSUs”), in the event that, at or within 24 months after such Covered Transaction or Change in Control, (i) the Company terminates the Participant’s employment without Cause, (ii) the Participant terminates his employment for Good Reason, or (iii) an Expiration Termination occurs, the Continuing RSUs will become fully vested immediately before such termination. For this purpose, the terms “Cause,” “Expiration Termination” and “Good Reason” have the meanings as defined in the Employment Agreement between the Participant and the Company, as in effect at December 31, 2015 (the “Employment Agreement”).

2.The definitions that are incorporated herein by reference to the 2014 Plan and to the Employment Agreement are applicable for purposes of this Amendment and the Agreement, insofar as this Amendment specifies language in the Agreement.  Except for such definitions, the terms of the 2010 Plan govern the Award.

3.Except as set forth in this Amendment No. 1 toRestricted Stock Unit Award Agreement, all other terms and conditions of the Agreement shall remain unchanged and in full force and effect.

IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment No. 1 to Restricted Stock Unit Award Agreement to be executed on its behalf as of the date first above written.

IMS HEALTH HOLDINGS, INC.

/s/ Harvey A. Ashman

SVP, General Counsel & External Affairs

and Corporate Secretary

Agreed and Accepted:

/s/ Ari Bousbib

Participant

EX-10.34

Exhibit 10.34

Name of Participant: Ari Bousbib

IMS HEALTH HOLDINGS, INC.

2014 INCENTIVE AND STOCK AWARD PLAN

Stock Appreciation Rights Agreement

Pursuant to the IMS Health Holdings, Inc. 2014 Incentive and Stock Award Plan (as amended from time to time, the “Plan”), IMS Health Holdings, Inc. (the “Company”) has granted to the Participant named above, on the grant date listed on Exhibit A hereto (the “Grant Date”), Stock Appreciation Rights (the “SARs”) that may be exercised with respect to all or a portion of the number of whole shares of Stock set forth on Exhibit A  hereto, subject to the terms and conditions set forth in this Stock Appreciation Rights Agreement (the “Agreement”) and in the Plan. Subject to earlier termination as provided for herein and in the Plan, the latest date on which the SARs may be exercised is the expiration date specified on Exhibit A hereto (the “Expiration Date”).  For the avoidance of doubt, the total number of shares of Stock underlying the SARs is subject to adjustment pursuant to Section 10 of the Plan.  For purposes of this Agreement, “Employer” shall mean the affiliate or subsidiary that employs the Participant (to the extent the Participant is not directly employed by the Company).

1.Nature of SARs.  The SARs provide to the Participant a right to receive, upon exercise of vested SARs in compliance with this Agreement, payment in shares of Stock.  The number of shares of Stock that shall be delivered to the Participant upon a valid exercise of the SARs, before any reduction for withholding taxes in accordance with Section 5, shall be determined by multiplying (i) times (ii) and dividing the resulting product by (iii), where:

(i)is the number of SARs being exercised;

(ii)is the excess of (A) the Fair Market Value of one share of Stock on the date of exercise, over (B) the “Base Price Per Share” set forth on Exhibit A; and

(iii)is the Fair Market Value of one share of Stock on the date of exercise.

Unless otherwise determined by the Company, no fractional shares of Stock will be issued in payment upon the exercise of the SARs.

2.Vesting; Exercisability; Manner of Exercise.  The SARs may not be exercised until they have vested.  

(a)Vesting Schedule.  Except as set forth below or in the Plan, the SARs shall become vested on the vesting dates set forth on Exhibit A hereto, subject to the Participant’s continued Employment through the applicable vesting date.

(b)Exercisability.  Once vested, the SARs shall be exercisable and may be exercised at any time or times prior to the close of business on the Expiration Date, subject to the provisions hereof and of the Plan and any procedures that the Committee may approve from time to time.  Notwithstanding any other provision hereof or of the Plan, no SARs shall be exercisable after the Expiration Date.

(c)Method of Exercise.  The Participant may exercise vested SARs by giving notice (in such manner as is acceptable to the Company) to the Company of his or her election to exercise such SARs.  This notice shall specify the number of SARs being exercised. For the avoidance of doubt, the Company may in its sole discretion establish alternative means to exercise vested SARs, including electronic forms using electronic signatures and interactive voice response systems using PIN numbers, in a manner directed by the Company, and the SARs shall be deemed to be exercised upon fulfillment of such alternative means.

(d)Delivery of Shares Upon Exercise.  Promptly following the date the SARs are exercised, payment shall be made to the Participant in shares of Stock, in accordance with Section 1.  Payment may be made by issuance of shares in the name of the Participant and delivery of such shares to the Participant or, in

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the discretion of the Company, by issuance and delivery of such shares to a financial institution for the account of the Participant, or in any other commercially reasonable manner as may be determined by the Company. 

(e)Restrictions on Delivered Shares.  The Participant’s sales or other dispositions of shares of Stock acquired upon exercise of the SARs will be subject to applicable restrictions under Company policies applicable to the Participant, including those covering insider trading by employees.

(f)Cash Settlement. Notwithstanding any provision in this Agreement to the contrary, the Company may, in its sole discretion, settle the Participant’s SARs in the form of (1) a cash payment to the extent settlement in shares of Stock (i) is prohibited under local law, or (ii) would require the Participant, the Company and/or the Employer to obtain the approval of any governmental and/or regulatory body in the Participant’s country of residence (and/or country of employment, if different), or (iii) is administratively burdensome; or (2) shares of Stock, but require the Participant to immediately exercise and sell such shares of Stock (in which case, as a condition to the grant of this award, the Participant hereby expressly authorizes the Company to issue sales instructions on the Participant’s behalf).

3.Use of Certain Defined Terms.  Capitalized terms used in this Agreement shall have the meaning specified in the Plan, unless a different meaning is specified herein.  In the event of a conflict between the terms and conditions of this Agreement and the Plan, the Plan shall control, except as expressly provided in Section 4 herein. The terms set forth below shall have the following meanings:

(a)“Disability” shall mean: (i) If the Participant is a party to an employment or severance-benefit agreement that contains a definition of “Disability,” the definition set forth in such agreement shall apply with respect to the Participant under the Plan for so long as such agreement is in effect; and (ii) otherwise, a disability that would entitle the Participant to long-term disability benefits under the Company’s long-term disability plan in which the Participant participates.  

(b)“Employment” shall mean the Participant’s employment by, or other service to, the Company or any of its subsidiaries.

(c)“Retirement” shall mean retirement from active Employment after attaining age 65, or after attaining age 55 and completion of at least five (5) years of Employment with the Company or any of its subsidiaries (including any acquired entity with respect to which the Committee has determined to credit pre-acquisition service for this purpose).

4.Termination of Service.  If the Participant’s Employment ceases for any reason, the SARs, to the extent not already then vested, will be immediately forfeited and any vested SARs will be treated as follows:

(a)Generally.  Subject to subsections (b), (c) and (d) below, the SARs, to the extent vested immediately prior to the cessation of the Participant’s Employment, will remain exercisable until the earlier of (i) 90 days following cessation of Employment or (ii) the Expiration Date, and, unless previously exercised, will thereupon immediately terminate.

(b)Disability, Death or Retirement.  In the event of a cessation of the Participant’s Employment by the Company by reason of the Participant’s Disability or due to the Participant’s death or Retirement, the SARs, to the extent vested immediately prior to such cessation of Employment, will remain exercisable until the earlier of (i) the first anniversary of such cessation of Employment, and (ii) the Expiration Date, and, unless previously exercised, will thereupon immediately terminate.  

(c)Termination for Cause.  The SARs, whether or not vested, will terminate immediately upon a cessation of the Participant’s Employment if such cessation of Employment has resulted in connection with an act or failure to act constituting Cause.

(d)Other Terminations of SARs.  Other provisions of the Plan and this Agreement, including Sections 7 and 8, may result in the termination of unexercised SARs prior to the Expiration Date.  

5.Income Tax and Social Insurance Withholding. Regardless of any action the Company and/or the Employer take with respect to any or all income tax (including U.S. federal, state and local taxes and/or non-U.S. taxes), social insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), the Participant acknowledges that the ultimate liability for all Tax-Related Items legally due by the

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Participant is and remains the Participant’s responsibility and that the Company and the Employer (a) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the SARs, including the grant of the SARs, the vesting of the SARs, the exercise of the SARs, the subsequent sale of any shares of Stock (or cash) acquired pursuant to the SARs and the receipt of any dividends and (b) do not commit to structure the terms of the grant or any aspect of the SARs to reduce or eliminate the liability for Tax-Related Items.  Prior to the delivery of shares of Stock upon exercise of the SARs, if the Participant’s country of residence (and/or the Participant’s country of employment, if different) requires withholding of Tax-Related Items, unless otherwise determined by the Committee, the Company shall withhold a sufficient number of whole shares of Stock otherwise issuable upon exercise of the SARs that have an aggregate Fair Market Value sufficient to pay the minimum Tax-Related Items required to be withheld with respect to the shares of Stock delivered upon such exercise of the SARs.  The cash equivalent of the shares of Stock withheld will be used to settle the obligation to withhold the Tax-Related Items.  Alternatively, the Company and/or Employer may withhold the minimum Tax-Related Items required to be withheld with respect to the shares of Stock in cash from the Participant’s regular salary and/or wages, or other amounts payable to the Participant.  In the event the withholding requirements are not satisfied through the withholding of Stock or through the Participant’s regular salary and/or wages or any other amounts payable to the Participant by the Employer, no shares of Stock will be issued to the Participant (or the Participant’s estate) upon exercise of the SARs unless and until satisfactory arrangements (as determined by the Committee) have been made by the Participant with respect to the payment of any Tax-Related Items that the Company or the Participant’s Employer determines, in its sole discretion, must be withheld or collected with respect to such SARs.  By accepting the SARs, the Participant expressly consents to the withholding of shares of Stock and/or withholding from the Participant’s regular salary and/or wages or other amounts payable to the Participant as provided for hereunder.  All other Tax-Related Items related to the SARs and any shares of Stock delivered in payment thereof are the Participant’s sole responsibility. 

6.Transferability. The SARs and this Agreement are personal to the Participant, are non-assignable and are not transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution or as permitted by the Committee.  Any attempted transfer, assignment, pledge or other disposition of the SARs or of any rights granted under this Agreement that is contrary to the provisions of the Plan or this Section 6 shall be null and void.  The SARs are exercisable, during the Participant’s lifetime, only by the Participant or his or her legal guardian, if any, and following the Participant’s death, only by the Participant’s legal representative or legatee, and, if the Committee permits a transfer of the SARs, by the permitted transferee.  A permitted transferee will have the rights of the Participant with regard to any transferred SARs, subject to any limitations imposed by the Company as a condition of permitting the transfer or otherwise.

7.Forfeiture; Recovery of Compensation.  

(a)The Committee may cancel, rescind, withhold or otherwise limit or restrict the SARs or delivery of shares upon exercise of the SARs at any time if the Participant is not in compliance with all applicable provisions of this Agreement and the Plan (including, but not limited to, Section 2(e), Section 6 and Section 9).

(b)By accepting the SARs, the Participant expressly acknowledges and agrees that his or her rights, and those of any permitted transferee of the SARs, under the SARs, including to any Stock acquired under the SARs or proceeds from the disposition thereof, are subject to Section 9 of the Plan (including any successor provision). Nothing in the preceding sentence shall be construed as limiting the general application of Section 10(e) of this Agreement.

8.Other Undertakings.  To protect the interests of the Company and its direct and indirect affiliates and subsidiaries (individually, an “IMS Company” and collectively, the “IMS Companies”), including the confidential information of the IMS Companies and the confidential information of their respective customers, data suppliers, prospective customers and other companies with which the IMS Companies have a business relationship, and in consideration of the covenants and promises and other valuable consideration described in this Agreement, the Company and the Participant agree as follows:

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(a)The Participant acknowledges and agrees that he or she is bound by the confidentiality and other covenants contained in one or more restrictive covenant and confidentiality agreements that he or she has executed with an IMS Company, which covenants and agreements are incorporated herein by reference and shall survive any exercise, expiration, forfeiture or other termination of this Agreement or the SARs issuable hereunder. The Participant also acknowledges and agrees that the Company shall be an affiliate for purposes of such restrictive covenant and confidentiality agreements.  

(b)The Participant acknowledges that the opportunity to participate in the Plan and the financial benefits that may accrue from such participation, is good, valuable and sufficient consideration for the following:

(i)The Participant acknowledges and agrees that he or she is and will remain bound by the non-competition, non-solicitation and other covenants contained in the restrictive covenant and confidentiality agreement(s) that he or she has executed with any of the IMS Companies to the fullest extent permitted by law.  

(ii)The Participant further acknowledges and agrees that the period during which the non-competition and non-solicitation covenants in such agreement(s) will apply following a termination of Employment shall be extended from twelve (12) months to eighteen (18) months; provided, however, that the remedies available for breach of any non-competition or non-solicitation covenants during such extended six-month period shall be limited to the following:  (x) to the extent then outstanding, the forfeiture of the SARs for no consideration, and (y) to the extent the SARs have been exercised on or after the date that is 18 months before Participant’s cessation of Employment, with respect to the shares of Stock issued upon such exercise (including shares withheld for taxes), the Participant shall pay to the Company an amount equal to (A) the aggregate fair market value of such shares of Stock as of the date of exercise, plus (B) the excess, if any, of the aggregate proceeds of all sales of such shares of Stock over the amount described under subsection (A) above.  (For this purpose, the Participant’s earliest sales of shares following such exercise will be deemed sales of the shares acquired upon such exercise.)  The Company shall also be entitled to the foregoing remedies in the event of a material breach of any confidentiality, non-disclosure or other similar covenant contained in the restrictive covenant and confidentiality agreement(s) that the Participant has executed with an IMS Company.

(iii)The Participant further acknowledges and agrees to the Company’s application, implementation and enforcement of (a) such policy set forth in Section 8(b)(ii) of this Agreement and (b) any provision of applicable law or Company policy relating to cancellation, recoupment, rescission or payback of compensation and expressly agrees that the Company may take such actions as are necessary to effectuate such policy (as applicable to the Participant) or applicable law without further consent or action being required by the Participant.  For purposes of the foregoing, the Participant expressly and explicitly authorizes the Company to issue instructions, on the Participant’s behalf, to any brokerage firm and/or third party administrator engaged by the Company to hold Participant’s shares of Stock and other amounts acquired under the Plan to re-convey, transfer or otherwise return such shares of Stock and/or other amounts to the Company.  To the extent that the terms of this Agreement and such policy conflict, the terms of such policy shall prevail.  

(iv)By accepting the SARs, the Participant consents to one or more deductions from any amounts any IMS Company owes the Participant from time to time in an aggregate amount equal to all amounts described in subsection (ii) above, to the extent such deductions are permitted by applicable law.  Any such deduction from an amount that constitutes a deferral of compensation under Code Section 409A may only take place at the time the amount would otherwise be payable to the Participant, except to the extent permitted by Code Section 409A.

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9.Governing Law and Venue.  

(a)This Agreement and all claims arising out of or based upon this Agreement or relating to the subject matter hereof shall be governed by and construed in accordance with the domestic substantive laws of the State of Delaware without giving effect to any choice or conflict of laws provision or rule that would cause the application of the domestic substantive laws of any other jurisdiction.

(b)Any legal proceeding arising out of this Plan or this Agreement shall be brought exclusively in the Federal or State courts located in the State of Delaware.  The Participant agrees to submit to personal jurisdiction and to venue in those courts.  The Participant further agrees to waive all legal challenges and defenses to the appropriateness of Delaware as the site of any such legal proceeding and to the application of the laws of the State of Delaware and any applicable Federal laws.

10.Miscellaneous.

(a)Notice hereunder shall be given to the Company at its principal place of business, and shall be given to the Participant at the last address shown in the Company’s records, or in either case at such other address as one party may subsequently furnish to the other party in writing.

(b)Notwithstanding any provisions of Agreement to the contrary, the SARs shall be subject to any special terms and conditions for the Participant’s country of residence (and/or country of employment, if different) set forth in the addendum to this Agreement (the “Addendum”).  Further, if the Participant transfers residency and/or employment to another country set forth in the Addendum, at the time of transfer, any special terms and conditions for such country will apply to the Participant to the extent the Company determines, in its sole discretion, that the application of such terms and conditions is necessary or advisable in order to comply with local law, rules and regulations or to facilitate the operation and administration of the SARs and the Plan (or the Company may establish alternative terms and conditions as may be necessary or advisable to accommodate the Participant’s transfer).  In all circumstances, any applicable Addendum shall constitute part of the Agreement.

(c)The Company reserves the right to impose other requirements on the SARs, any shares of Stock acquired pursuant to the SARs and the Participant’s participation in the Plan to the extent the Company determines, in its sole discretion, that such other requirements are necessary or advisable in order to comply with local law, rules and regulations or to facilitate the operation and administration of the SARs and the Plan.  Such requirements may include (but are not limited to) requiring the Participant to sign any agreements or undertakings that may be necessary to accomplish the foregoing.

(d)The issuance of Stock upon exercise of the SARs will be contingent upon the Company’s receipt of any agreement, statement or other evidence that the Company and/or the Committee may require to satisfy itself that the issuance of Stock pursuant to the exercise of the SARs and any subsequent resale of the shares of Stock will be in compliance with all applicable laws and regulations and with the requirements hereof and of the Plan.  The determination of the Committee as to such compliance shall be final and binding on the Participant.  The Participant shall not be deemed to be the holder of, or to have any dividend or other rights of a holder with respect to, any shares of Stock subject to the SARs unless and until the SARs shall have been exercised pursuant to the terms hereof and of the Plan, the Company shall have issued and delivered the shares of Stock to the Participant in accordance with Sections 1 and 2 of this Agreement, and the Participant’s name shall have been entered as the stockholder of record on the books of the Company (if an alternative method of delivery is elected by the Company under Section 2, Participant will be required to take appropriate steps to cause any nominee to transfer shares into the name of the Participant in order for Participant to become a record holder of the shares).  Thereupon, the Participant shall have full voting, dividend and other ownership rights with respect to such shares of Stock.

(e)This Agreement is subject in its entirety to the provisions of the Plan, which are incorporated herein by reference.  A copy of the Plan as in effect on the Grant Date has been furnished to the Participant.  By accepting this award of SARs, the Participant agrees to be bound by the terms of the Plan and this Agreement.  

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(f)The Agreement, the Addendum (if applicable) and the Plan constitute the entire understanding between the Participant and the Company regarding the SARs, and any prior agreements, commitments or negotiations concerning the SARs are superseded. 

(g)Any provision of this Agreement or the Addendum that is deemed invalid, illegal or unenforceable in any jurisdiction shall, as to that jurisdiction and subject to this Section, be ineffective to the extent of such invalidity, illegality or unenforceability, without affecting in any way the remaining provisions thereof in such jurisdiction or rendering that or any other provisions of this Agreement and the Addendum invalid, illegal, or unenforceable in any other jurisdiction.  If any covenant should be deemed invalid, illegal or unenforceable because its scope is considered excessive, such covenant shall be modified so that the scope of the covenant is reduced only to the minimum extent necessary to render the modified covenant valid, legal and enforceable.  No waiver of any provision or violation of this Agreement or the Addendum by the Company shall be implied by the Company’s forbearance or failure to take action.

11.Data Privacy. The Company and the Employer hereby notify the Participant of the following in relation to the Participant’s personal data and the collection, processing and transfer of such data in relation to the award of the SARs and the Participant’s participation in the Plan pursuant to applicable personal data protection laws.  The collection, processing and transfer of the Participant’s personal data is necessary for the Company’s administration of the Plan and the Participant’s participation in the Plan, and the Participant’s denial and/or objection to the collection, processing and transfer of personal data may affect the Participant’s ability to participate in the Plan.  As such, the Participant voluntarily acknowledges, consents and agrees (where required under applicable law) to the collection, use, processing and transfer of personal data as described herein.  The Company and the Employer hold certain personal information about the Participant, including (but not limited to) the Participant’s name, home address and telephone number, date of birth, social security number or other employee identification number, salary, nationality, job title, any shares of Stock or directorships held in the Company, details of all SARs or any other entitlement to shares of Stock awarded, canceled, purchased, vested, exercised, unvested or outstanding in the Participant’s favor for the purpose of managing and administering the Plan (“Data”).  The Data maybe provided by the Participant or collected, where lawful, from third parties, and the Company and the Employer will process the Data for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Plan.  The data processing will take place through electronic and non-electronic means according to logics and procedures strictly correlated to the purposes for which the Data is collected and with confidentiality and security provisions as set forth by applicable laws and regulations in the Participant’s country of residence.  Data processing operations will be performed in a manner that minimizes the use of personal and identification data when such operations are unnecessary for the processing purposes sought.  The Data will be accessible within the Company’s organization only by those persons requiring access for purposes of the implementation, administration and operation of the Plan and for the Participant’s participation in the Plan.  The Company and the Employer will transfer Data as necessary for the purpose of implementation, administration and management of the Participant’s participation in the Plan, and the Company and/or the Employer may each further transfer Data to any third parties assisting the Company in the implementation, administration and management of the Plan.  These recipients may be located in the European Economic Area, the United States or elsewhere throughout the world.  The Participant hereby authorizes (where required under applicable law) the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for purposes of implementing, administering and managing the Participant’s participation in the Plan, including any requisite transfer of such Data as may be required for the administration of the Plan and/or the subsequent holding of shares of Stock on the Participant’s behalf to a broker or other third party with whom the Participant may elect to deposit any shares of Stock acquired pursuant to the Plan.  The Participant may, at any time, exercise the Participant’s rights provided under applicable personal data protection laws, which may include the right to (a) obtain confirmation as to the existence of the Data, (b) verify the content, origin and accuracy of the Data, (c) request the integration, update, amendment, deletion, or blockage (for breach of applicable laws) of the Data, and (d) oppose, for legal reasons, the collection, processing or transfer of the Data that is not necessary or required for the implementation, administration and/or operation of the Plan and the Participant’s participation in the Plan.  The Participant may seek to exercise these rights by contacting the Participant’s local human resources manager.

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12.Acknowledgements and Acceptance  

In accepting the SARs, the Participant acknowledges and agrees that:

(a)The Participant will have no claim or entitlement (i) to compensation or damages in consequence of the termination of Employment for any reason whatsoever and whether or not in breach of contract, insofar as such claim or entitlement arises or may arise from his or her ceasing to have any rights under the Plan or this Agreement, (ii) to exercise the SARs as a result of such termination of Employment, except as expressly provided in this Agreement, or (iii) from the loss or diminution in value of the SARs or shares of Stock deliverable or delivered upon exercise of the SARs (including due to any delay between initiation of the exercise process and delivery of shares); and, upon the grant of the SARs and in partial consideration for his or her participation in the Plan and this Agreement, the Participant shall be deemed irrevocably to have waived any such claim or entitlement.

(b)If the Participant does not want to accept the SARs on the terms and conditions set out in this Agreement, the Plan and/or any related documents, the Participant may choose the “Decline” button.  The SARs will then be cancelled and no other benefit will be due to the Participant in lieu thereof.  If Participant does not “Decline” the SARs within thirty (30) days from the Grant Date, the Participant shall be deemed to have accepted the SARs and shall be deemed to have agreed to the terms and conditions set out in this Agreement, the Plan and/or any related documents.

(c)Neither the grant of the SARs, nor the issuance of Stock upon exercise of the SARs, will give the Participant any right to be retained in the employ or service of the Company or any of its subsidiaries, affect the right of the Company or any of its subsidiaries to discharge (as may otherwise be permitted under local law) or discipline the Participant at any time or affect any right of the Participant to terminate his or her Employment at any time.

(d)The Participant acknowledges and agrees that the Plan is discretionary in nature and limited in duration, and may be amended, cancelled, or terminated by the Company, in its sole discretion, at any time.

(e)The grant of SARs is a one-time benefit and does not create any contractual or other right for the Participant to receive a grant of SARs or benefits in lieu of SARs in the future. The terms of future Awards of SARs, if any, will be determined by the Company in its sole discretion, including, but not limited to, the form and timing of such Award, the number of shares of Stock subject to the SARs, and the vesting and exercise provisions applicable to the SARs.  

(f)The headings preceding the text of the sections hereof are inserted solely for convenience of reference, and shall not constitute a part of this Agreement, nor shall they affect its meaning, construction or effect.

(g)The grant of the SAR is not intended to be a public offering of securities in the Participant’s country of residence (and country of employment, if different).  The Company has not submitted any registration statement, prospectus or other filings with the local securities authorities (unless otherwise required under local law), and the grant of the SAR is not subject to the supervision of the local securities authorities.  No employee of the Company or any of the Company’s subsidiaries is permitted to advise the Participant on whether the Participant should acquire Stock by exercising the SAR under the Plan.  Investment in Stock involves a degree of risk.  Before deciding to acquire Stock by exercising the SAR, the Participant should carefully consider all risk factors relevant to the acquisition of Stock under the Plan and the Participant should carefully review all of the materials related to the SAR and the Plan.  In addition, the Participant should consult with the Participant’s personal advisor for professional investment advice.

(h)The Participant acknowledges and agrees that it is the Participant’s express intent that the Agreement, the Exhibit, the Addendum and the Plan and all other documents, notices and legal proceedings entered into, given or instituted pursuant to the award, be drawn up in English.  If the Participant has received the Agreement, the Exhibit, the Addendum and the Plan or any other documents related to the award translated into a language other than English, and if the meaning of the translated version is different than the English version, the English version shall control.

(i)As a condition to the SAR, the Participant agrees to repatriate all payments attributable to the Stock and/or cash acquired under the Plan in accordance with local foreign exchange rules and regulations in

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the Participant’s country of residence (and country of employment, if different).  In addition, the Participant also agrees to take any and all actions, and consents to any and all actions taken by the Company and its subsidiaries and affiliates and/or the Employer, as may be required to allow the Company and its subsidiaries and affiliates or the Employer to comply with local laws, rules and regulations in the Participant’s country of residence (and country of employment, if different).  Finally, the Participant agrees to take any and all actions as may be required to comply with the Participant’s personal obligations under local laws, rules and regulations in the Participant’s country of residence (and country of employment, if different). 

(j)By choosing the “Accept” button, the Participant accepts the SARs as described above and the terms and conditions set out in this Agreement, the Plan and any related documents.  Copies of the Plan and such related documents are being provided to Participant as part of this Agreement.  

IMS HEALTH HOLDINGS, INC.

/s/ Harvey A. Ashman

SVP, General Counsel & External Affairs and Corporate Secretary

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STOCK APPRECIATION RIGHTS AGREEMENT 

PURSUANT TO IMS HEALTH HOLDINGS, INC.

2014 INCENTIVE AND STOCK AWARD PLAN

Exhibit A

Name of Participant:	Ari Bousbib
No. of shares of Stock subject to the Stock Apprecitation Rights:	215,749
Base Price Per Share:	$25.02
Grant Date:	February 10, 2015
Expiration Date:	February 10, 2015

Vesting Schedule:

Number of SARs Exercisable		Vesting Date
53,937	(25%)	February 10, 2016
53,937	(25%)	February 10, 2017
53,937	(25%)	February 10, 2018
53,938	(25%)	February 10, 2019

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EX-10.35

Exhibit 10.35

IMS HEALTH HOLDINGS, INC.

2014 INCENTIVE AND STOCK AWARD PLAN

Amendment No. 1 to Stock Appreciation Rights Agreement

This Amendment No. 1 to Stock Appreciation Rights Agreement between IMS Health Holdings, Inc. (the “Company”) and Ari Bousbib (“Participant”) is entered into as of this 31^st day of December, 2015.

WHEREAS, the Company and Participant desire to amend the terms of the Stock Appreciation Rights Agreement, dated as of February 10, 2015, currently in effect (the “Agreement”), in order to provide for accelerated vesting in certain cases at or following a Change in Control or Covered Transaction, as such terms are defined in the 2014 Incentive and Stock Award Plan (the “Plan”).

NOW THEREFORE, the Company and Participant agree that the Agreement is hereby amended as follows:

1.Section 2(a) of the Agreement (“Vesting Schedule”) is hereby replaced in its entirety by the following (new language in italics):

(a)Vesting Schedule.  Except as set forth below or in the Plan, the SARs shall become vested on the vesting dates set forth on Exhibit A hereto, subject to the Participant’s continued Employment through the applicable vesting date, provided, however, that vesting will be accelerated as follows:

(i) In the event there occurs a Covered Transaction, or Change in Control in which there is no assumption, continuation, substitution or cash-out of all or a portion of this Award (the “Terminating SARs”), the Terminating SARs will vest immediately before the consummation of the Covered Transaction or other event relating to the Change in Control that would cause the Common Stock to cease to be outstanding.  

(ii) In the event there occurs a Covered Transaction or Change in Control in which the SARs will be assumed, continued, or substituted for (the “Continuing SARs”), in the event that, at or within 24 months after such Covered Transaction or Change in Control, (i) the Company terminates the Participant’s employment without Cause, (ii) the Participant terminates his employment for Good Reason, or (iii) an Expiration Termination occurs, the Continuing SARs will become fully vested immediately before such termination.  For this purpose, the terms “Cause,” “Expiration Termination” and “Good Reason” have the meanings as defined in the Employment Agreement between the Participant and the Company, as in effect at the Grant Date (the “Employment Agreement”).

2.Except as set forth in this Amendment No. 1 to Stock Appreciation Rights Agreement, all other terms and conditions of the Agreement shall remain unchanged and in full force and effect.

IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment No. 1 to Stock Appreciation Rights Agreement to be executed on its behalf as of the date first above written.

IMS HEALTH HOLDINGS, INC.

/s/ Harvey A. Ashman

SVP, General Counsel & External Affairs

and Corporate Secretary

Agreed and Accepted:

/s/ Ari Bousbib

Participant

EX-10.36

Exhibit 10.36

Name of Participant:  Ari Bousbib

Grant Date: December 31, 2015

IMS HEALTH HOLDINGS, INC.

2014 INCENTIVE AND STOCK AWARD PLAN

Restricted Stock Agreement

Pursuant to the IMS Health Holdings, Inc. 2014 Incentive and Stock Award Plan  (as amended from time to time, the “Plan”), IMS Health Holdings, Inc. (the “Company”) has granted to the Participant named above, on the grant date set forth above (the “Grant Date”), an award (the “Award”) of 923,962 shares of restricted stock (the “Restricted Stock”) under Section 6(d) of the Plan, subject in all cases to vesting and other terms and conditions set forth in this Restricted Stock Agreement (the “Agreement”).  For the avoidance of doubt, the total number of shares of Restricted Stock subject to the Award are subject to adjustment pursuant to Section 10 of the Plan.  A condition of the issuance of the Restricted Stock is that Participant remain employed from October 27, 2015 through December 31, 2015, which services are deemed to have a value not less than the aggregate par value of the Restricted Stock.

1.Vesting.  The Restricted Stock will vest as to 50% of the shares on the second anniversary of the Grant Date and as to the remaining 50% of the shares on the fourth anniversary of the Grant Date if, on the applicable vesting date, the Participant is and has been at all times since the Grant Date, either employed by the Company or one of its subsidiaries or in service to the Company as a director; provided, however, that the Restricted Stock is subject to accelerated vesting in accordance with Section 4(b).  Prior to vesting, the Company may retain in its possession the share certificate or other evidence of ownership (but Participant will be and remain the owner of the shares).  

2.Use of Certain Defined Terms.  Capitalized terms used in this Agreement shall have the meaning specified in the Plan, unless a different meaning is specified herein.  In the event of a conflict between the terms and conditions of this Agreement and the Plan, the Plan shall control.

3.Evidence of Ownership of Shares; Delivery Upon Vesting.  

(a)As an Award of Restricted Stock, the shares will be issued to the Participant as of the Grant Date.  Any Stock certificate or other evidence of ownership of the Restricted Stock will be in the name of Participant but will be held by the Company until the restrictions set forth herein have lapsed, and will bear a legend substantially as follows:

“The shares of Common Stock evidenced hereby are subject to the terms and conditions of a Restricted Stock Agreement dated December 31, 2015 between the registered owner and IMS Health Holdings, Inc.; such shares are subject to forfeiture under the terms of such Agreement; and such shares shall not be sold, transferred, assigned, pledged, encumbered or otherwise alienated or hypothecated except pursuant to the provisions of such Agreement.  A copy of such Agreement is available from IMS Health Holdings, Inc. upon request.”

Participant will have voting rights with regard to the Restricted Stock.

(b)Participant agrees that, upon request of the Company, he will deliver to the Company stock powers or other instruments of transfer or assignment, duly endorsed in blank with signature guaranteed, corresponding to each certificate for Restricted Stock or distributions thereon.  If Participant shall fail to provide the Company with any such stock power or other instrument of transfer or assignment, Participant hereby irrevocably appoints the Secretary of the Company as his attorney-in-fact to execute and deliver

any such power or other instrument which may be necessary to effectuate the transfer of the Restricted Stock (or assignment of distributions thereon) on the books and records of the Company.

(c)Upon vesting of the Restricted Stock, the risk of forfeiture will lapse and evidence of ownership of the shares immediately will be delivered to the Participant free of the restrictions on transferability otherwise imposed under this Agreement and free of such risk of forfeiture (except for any applicable recoupment or clawback policy of the Company).  The method of delivery will be in the discretion of the Company, either by delivery of one or more share certificates to the Participant, delivery of the shares to a financial institution for the account of the Participant or delivery in any other commercially reasonable manner as may be determined by the Company.  

(d)The Participant’s sales or other dispositions of shares of Stock following vesting will be subject to applicable restrictions under Company policies applicable to the Participant, including those covering insider trading by employees.

4.Termination of the Award.

(a)If the Participant’s employment by and service as a director of the Company and its subsidiaries (“Employment”) ceases for any reason prior to the vesting of shares of Restricted Stock, such unvested shares will be forfeited immediately unless otherwise determined by the Committee and subject to Section 4(b) below.  Other provisions of the Plan and this Agreement, including Sections 7 and 8, may result in the termination and forfeiture of the Award or portions thereof prior to vesting.

(b)In the event there occurs a Covered Transaction or Change in Control in which there is no assumption, continuation, substitution or cash-out of all or a portion of this Award (the “Terminating Restricted Stock”), the Terminating Restricted Stock will vest immediately before the consummation of the Covered Transaction or other event relating to the Change in Control that would cause the Common Stock to cease to be outstanding.  In the case of a Covered Transaction or a Change in Control in which the Restricted Stock will be assumed, continued, or substituted for (the “Continuing Restricted Stock”), in the event that, at or within 24 months after such Covered Transaction or Change in Control, (i) the Company terminates the Participant’s employment without Cause, (ii) the Participant terminates his employment for Good Reason, or (iii) an Expiration Termination occurs, the Continuing Restricted Stock will become fully vested immediately before such termination. For this purpose, the terms “Cause,” “Expiration Termination” and “Good Reason” have the meanings as defined in the Employment Agreement between the Participant and the Company, as in effect at the Grant Date.

5.Dividends and Adjustments.  In the event that the Company declares and pays regular cash dividends on Stock, any such dividends on the Restricted Stock payable prior to vesting will be retained by the Company and not paid to Participant (or, if delivered to the Participant, immediately will be returned by Participant to the Company).  Dividends other than regular cash dividends will result in an adjustment to the Award under Section 10 of the Plan (in which case the adjustment will be in lieu of payment of any such dividend). Shares of Stock or other property that directly or indirectly result from adjustments to a share of Restricted Stock shall be subject to the same risk of forfeiture, restriction on transferability and other terms and conditions as apply to such granted share of Restricted Stock.

6.Income Tax and Social Insurance Withholding.  Regardless of any action the Company takes with respect to any or all income tax (including U.S. federal, state and local taxes or non-U.S. taxes), social insurance, payroll tax, fringe benefit, payment on account or other tax-related withholding (“Tax-Related Items”), the Participant acknowledges that the ultimate liability for all Tax-Related Items legally due by the Participant is and remains the Participant’s responsibility and that the Company (a) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including the grant of the Restricted Stock, the vesting of the Restricted Stock, the subsequent sale of any shares of Stock resulting from the Award and the receipt of any dividends or other amounts resulting from any adjustment to the Award, and (b) does not commit to structure the terms of the Award or any aspect of the Award to reduce or eliminate the Participant’s liability for Tax-Related Items.  Participant is hereby advised that he is permitted under United States federal income tax

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law to elect (by filing a “Section 83(b)” election with the Internal Revenue Service) to be taxed on the compensation value of the Restricted Stock at the Grant Date, and agrees that if he makes such an election he will notify the Company immediately.  Unless the Participant has, in advance of the vesting of the Restricted Stock, made other arrangements satisfactory to the Company to satisfy withholding obligations, if the Participant’s country of residence (and/or the country of employment, if different) requires withholding of Tax-Related Items, the Company will withhold a sufficient number of whole shares of Stock that become vested having an aggregate fair market value sufficient to pay the minimum Tax-Related Items required to be withheld with respect to the vesting of the Restricted Stock.  The cash equivalent of the shares of Stock withheld will be used to settle the obligation to withhold the Tax-Related Items.  Alternatively, the Company may withhold the minimum Tax-Related Items required to be withheld with respect to the shares of Stocks in cash from the Participant’s regular salary and/or wages or any other amounts payable to the Participant.  In the event the withholding requirements are not satisfied through the withholding of shares of Stock by the Company or through the Participant’s regular salary and/or wages or other amounts payable to the Participant, no shares of Stock will be released to the Participant (or the Participant’s estate) upon vesting of the Restricted Stock unless and until satisfactory arrangements (as determined by the Committee) have been made by the Participant with respect to the payment of any Tax-Related Items that the Company determines, in its sole discretion, must be withheld or collected with respect to such Restricted Stock.  By accepting this grant of Restricted Stock, the Participant expressly consents and agrees to the withholding of shares of Stock and/or withholding from the Participant’s regular salary and/or wages or other amounts payable to the Participant as provided for hereunder.  All other Tax-Related Items related to the Restricted Stock are the Participant’s sole responsibility.

7.Transferability.  The Restricted Stock, Participant’s related rights and this Agreement are personal to the Participant, are non-assignable and are not transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution.  Any attempted transfer, assignment, pledge or other disposition of the Restricted Stock, any rights granted under this Agreement or this Agreement that is contrary to the provisions of the Plan or this Section 7 shall be null and void.  Except as permitted by the Plan, the delivery of any evidence of ownership of the Restricted Stock will be made, during the Participant’s lifetime, only to the Participant.   A permitted transferee will have the rights of the Participant with regard to any transferred Award, subject to any limitations imposed by the Company.

8.Forfeiture; Recovery of Compensation.  

(a)The Committee may determine that the Restricted Stock will be forfeited or release of the evidence of ownership of the shares will be delayed if the Participant is not in compliance with all applicable provisions of this Agreement and the Plan (including, but not limited to, Section 6, Section 8(b) and Section 9).

(b)By accepting this Award, the Participant expressly acknowledges and agrees that his or her rights, and those of any permitted transferee, with respect to the Restricted Stock, including to shares following vesting and proceeds from the disposition thereof, are subject to Section 9 of the Plan (including any successor provision). Nothing in the preceding sentence shall be construed as limiting the general application of Section 11(e) of this Agreement.

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9.Other Undertakings.  To protect the interests of the Company and its direct and indirect affiliates and subsidiaries (individually, an “IMS Company” and collectively, the “IMS Companies”), including the confidential information of the IMS Companies and the confidential information of their respective customers, data suppliers, prospective customers and other companies with which the IMS Companies have a business relationship, and in consideration of the covenants and promises and other valuable consideration described in this Agreement, the Company and the Participant agree as follows.

(a)The Participant acknowledges and agrees that he is bound by the confidentiality and other covenants contained in one or more restrictive covenant and confidentiality agreements that he has executed with an IMS Company, which covenants and agreements are incorporated herein by reference and shall survive any exercise, expiration, forfeiture or other termination of this Agreement or the Restricted Stock issued hereunder. The Participant also acknowledges and agrees that the Company shall be an affiliate for purposes of such restrictive covenant and confidentiality agreements.

(b)The Participant acknowledges that the opportunity to participate in the Plan and the financial benefits that may accrue from such participation is good, valuable and sufficient consideration for the following:

(i)The Participant acknowledges and agrees that he is and will remain bound by the non-competition, non-solicitation and other covenants contained in the restrictive covenant and confidentiality agreement(s) that he has executed with any of the IMS Companies to the fullest extent permitted by law.  

(ii)The Participant further acknowledges and agrees that the period during which the non-competition and non-solicitation covenants in such agreement(s) will apply following a termination of Employment shall be extended from twelve (12) months to eighteen (18) months; provided, however, that the remedies available for breach of any non-competition or non-solicitation covenants during such extended six-month period shall be limited to the following:  (x) to the extent then outstanding, the forfeiture of the Restricted Stock for no consideration, and (y) to the extent the Restricted Stock has vested on or after the date that is eighteen (18) months before the Participant’s cessation of Employment, with respect to the shares of Stock that became vested (including shares of Stock withheld for taxes), the Participant shall pay to the Company an amount equal to (A) the aggregate fair market value of such shares of Stock as of the date of vesting, plus (B) the excess, if any, of the aggregate proceeds of all sales of such shares of Stock over the amount described under subsection (A) above.  (For this purpose, the Participant’s earliest sales of shares following vesting will be deemed sales of the vested shares of Restricted Stock.)  The Company shall also be entitled to the foregoing remedies in the event of a material breach of any confidentiality, non-disclosure or other similar covenant contained in the restrictive covenant and confidentiality agreement(s) that the Participant has executed with an IMS Company.

(iii)The Participant further acknowledges and agrees to the Company’s application, implementation and enforcement of (a) such policy set forth in Section 9(b)(ii) of this Agreement and (b) any provision of applicable law or Company policy relating to cancellation, recoupment, rescission or payback of compensation and expressly agrees that the Company may take such actions as are necessary to effectuate such policy (as applicable to the Participant) or applicable law without further consent or action being required by the Participant.  For purposes of the foregoing, the Participant expressly and explicitly authorizes the Company to issue instructions, on the Participant’s behalf, to any brokerage firm and/or third party administrator engaged by the Company to hold Participant’s shares of Stock and other amounts acquired under the Plan to re-convey, transfer or otherwise return such shares of Stock and/or other amounts to the Company.  To the extent that the terms of this Agreement and such policy conflict, the terms of such policy shall prevail.  

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(iv)By accepting the Restricted Stock, the Participant consents to one or more deductions from any amounts any IMS Company owes the Participant from time to time in an aggregate amount equal to all amounts described in subsection (ii) above, to the extent such deductions are permitted by applicable law.  Any such deduction from an amount that constitutes a deferral of compensation under Code Section 409A may only take place at the time the amount would otherwise be payable to the Participant, except to the extent permitted by Code Section 409A.

10.Governing Law and Venue.

(a)This Agreement and all claims arising out of or based upon this Agreement or relating to the subject matter hereof shall be governed by and construed in accordance with the domestic substantive laws of the State of Delaware without giving effect to any choice or conflict of laws provision or rule that would cause the application of the domestic substantive laws of any other jurisdiction.

(b)Any legal proceeding arising out of this Plan or this Agreement shall be brought exclusively in the Federal or State courts located in the State of Delaware.  The Participant agrees to submit to personal jurisdiction and to venue in those courts.  The Participant further agrees to waive all legal challenges and defenses to the appropriateness of Delaware as the site of any such legal proceeding and to the application of the laws of the State of Delaware and any applicable Federal laws.

11.Miscellaneous.

(a)Notice hereunder shall be given to the Company at its principal place of business, and shall be given to the Participant at the last address shown in the Company’s records, or in either case at such other address as one party may subsequently furnish to the other party in writing.

(b)The Company reserves the right to impose other requirements on the Award, any shares of Stock issued pursuant to the Restricted Stock and the Participant’s participation in the Plan to the extent the Company determines, in its sole discretion, that such other requirements are necessary or advisable in order to comply with local law, rules and regulations or to facilitate the operation and administration of the Award and the Plan.  Such requirements may include (but are not limited to) requiring the Participant to sign any agreements or undertakings that may be necessary to accomplish the foregoing.

(c)The delivery of evidence of ownership of shares upon vesting of the Restricted Stock will be contingent upon the Company’s receipt of any agreement, statement or other evidence that the Company and/or the Committee may require to satisfy itself that such delivery pursuant to this Agreement and any subsequent resale of the shares of Stock will be in compliance with all applicable laws and regulations and with the requirements hereof and of the Plan.  The determination of the Committee as to such compliance shall be final and binding on the Participant.  If the Company elects a method of delivery under Section 3 other than delivery of a share certificate to Participant, Participant will be required to take appropriate steps to cause any nominee to transfer shares into the name of the Participant in order for Participant to become a record holder of the shares upon such delivery.  

(d)This Agreement is subject in its entirety to the provisions of the Plan, which are incorporated herein by reference.  A copy of the Plan as in effect on the Grant Date has been furnished to the Participant. By accepting the Award, the Participant agrees to be bound by the terms of the Plan and this Agreement.  

(e)The Agreement and the Plan constitute the entire understanding between the Participant and the Company regarding the Award, and any prior agreements, commitments or negotiations concerning the Award are superseded.

(f)Any provision of this Agreement that is deemed invalid, illegal or unenforceable in any jurisdiction shall, as to that jurisdiction and subject to this Section, be ineffective to the extent of such invalidity, illegality or unenforceability, without affecting in any way the remaining provisions thereof in

5

such jurisdiction or rendering that or any other provisions of this Agreement invalid, illegal, or unenforceable in any other jurisdiction.  If any covenant should be deemed invalid, illegal or unenforceable because its scope is considered excessive, such covenant shall be modified so that the scope of the covenant is reduced only to the minimum extent necessary to render the modified covenant valid, legal and enforceable.  No waiver of any provision or violation of this Agreement by the Company shall be implied by the Company’s forbearance or failure to take action.

(g)The Restricted Stock is intended to be subject to Code Section 83 and therefore be exempt from the requirements of Code Section 409A. The Plan and this Agreement shall be administered and interpreted in a manner consistent with this intent. If the Company determines that this Agreement is subject to Code Section 409A and that it has failed to comply with the requirements of that Section, the Company may, at the Company’s sole discretion and without Participant consent, amend the Agreement to cause the terms and conditions of the Agreement to comply with Code Section 409A or be exempt from Code Section 409A.

12.Data Privacy.  The Company hereby notifies the Participant of the following in relation to the Participant’s personal data and the collection, processing and transfer of such data in relation to the Award and the Participant’s participation in the Plan pursuant to applicable personal data protection laws.  The collection, processing and transfer of the Participant’s personal data is necessary for the Company’s administration of the Plan and the Participant’s participation in the Plan, and the Participant’s denial and/or objection to the collection, processing and transfer of personal data may affect the Participant’s ability to participate in the Plan.  As such, the Participant voluntarily acknowledges, consents and agrees (where required under applicable law) to the collection, use, processing and transfer of personal data as described herein.  The Company holds certain personal information about the Participant, including (but not limited to) the Participant’s name, home address and telephone number, date of birth, social security number or other employee identification number, salary, nationality, job title, any shares of Stock or directorships held in the Company, details of all Awards or any other entitlement to shares of Stock awarded, canceled, purchased, vested, unvested or outstanding in the Participant’s favor for the purpose of managing and administering the Plan (“Data”).  The Data maybe provided by the Participant or collected, where lawful, from third parties, and the Company will process the Data for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Plan.  The data processing will take place through electronic and non-electronic means according to logics and procedures strictly correlated to the purposes for which the Data is collected and with confidentiality and security provisions as set forth by applicable laws and regulations in the Participant’s country of residence.  Data processing operations will be performed in a manner that minimizes the use of personal and identification data when such operations are unnecessary for the processing purposes sought.  The Data will be accessible within the Company’s organization only by those persons requiring access for purposes of the implementation, administration and operation of the Plan and for the Participant’s participation in the Plan.  The Company will transfer Data as necessary for the purpose of implementation, administration and management of the Participant’s participation in the Plan, and the Company may further transfer Data to any third parties assisting the Company in the implementation, administration and management of the Plan.  These recipients may be located in the European Economic Area, the United States or elsewhere throughout the world.  The Participant hereby authorizes (where required under applicable law) the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for purposes of implementing, administering and managing the Participant’s participation in the Plan, including any requisite transfer of such Data as may be required for the administration of the Plan and/or the subsequent holding of shares of Stock on the Participant’s behalf to a broker or other third party with whom the Participant may elect to deposit any shares of Stock acquired pursuant to the Plan.  The Participant may, at any time, exercise the Participant’s rights provided under applicable personal data protection laws, which may include the right to (a) obtain confirmation as to the existence of the Data, (b) verify the content, origin and accuracy of the Data, (c) request the integration, update, amendment, deletion, or blockage (for breach of applicable laws) of the Data, and (d) oppose, for legal reasons, the collection, processing or transfer of the Data that is not necessary or required for the implementation, administration and/or operation of the Plan and the Participant’s participation in the Plan.  The Participant may seek to exercise these rights by contacting the Participant’s local human resources manager.

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13.Acknowledgements and Acceptance.

In accepting this Award, the Participant acknowledges and agrees that, except as may be provided under the terms of any employment agreement between Participant and the Company:

(a)The Participant will have no claim or entitlement (1) to compensation or damages in consequence of the termination of Employment for any reason whatsoever and whether or not in breach of contract, insofar as such claim or entitlement arises or may arise from his or her ceasing to have any rights under the Plan or this Agreement, (2) to vesting of the Restricted Stock as a result of such termination of Employment, except as expressly provided in this Agreement, or (3) from the loss or diminution in value of the Restricted Stock or shares of Stock following the vesting of the Restricted Stock (including due to any delay in delivery of evidence of ownership following vesting); and, upon the grant of the Award and in partial consideration for his or her participation in the Plan and this Agreement, the Participant shall be deemed irrevocably to have waived any such claim or entitlement.

(b)All questions arising under this Agreement and the Plan shall be decided by the Committee in its sole discretion.

(c)Neither the grant of the Restricted Stock, nor the vesting of the Restricted Stock or delivery of evidence of ownership of Stock will give the Participant any right to be retained in the employ or service of the Company or any of its subsidiaries, affect the right of the Company or any of its subsidiaries, to discharge (as may otherwise be permitted under local law) or discipline the Participant at any time, or affect any right of the Participant to terminate his or her Employment at any time.

(d)The Participant acknowledges and agrees that the Plan is discretionary in nature and limited in duration, and may be amended, cancelled, or terminated by the Company, in its sole discretion, at any time.  

(e)The grant of the Restricted Stock under the Plan is a one-time benefit and does not create any contractual or other right to receive Restricted Stock or benefits in lieu of Restricted Stock in the future.  The terms of future Restricted Stock, if any, will be determined by the Company in its sole discretion, including, but not limited to, the form and timing of such Award, the number of shares of Restricted Stock and the vesting provisions applicable to the Restricted Stock.

(f)The headings preceding the text of the sections hereof are inserted solely for convenience of reference, and shall not constitute a part of this Agreement, nor shall they affect its meaning, construction or effect.

[Remainder of the page intentionally left blank.]

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The Company, by its duly authorized officer, and the Participant have executed this Agreement as of the date first set forth above.

IMS HEALTH HOLDINGS, INC.

/s/ Harvey A. Ashman

SVP, General Counsel & External Affairs

and Corporate Secretary

Agreed and Accepted:

/s/ Ari Bousbib

Participant

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EX-21

Exhibit 21

IMS HEALTH HOLDINGS, INC.

List of Subsidiaries

Name of Subsidiary	State or Jurisdiction of Incorporation
Albatross Financial Solutions Limited	United Kingdom
AMIX S.a.r.l.	France
Appature, Inc.	Washington
Asesorias IMS Health Chile Limitada	Chile
Asserta Centroamerica Medicion de Mercados, S.A.	Guatemala
Battaerd Mansley Pty. Ltd.	Australia
Buzzeopdma LLC	Delaware
Cambridge Pharma Consultancy Limited.	United Kingdom
Cambridge Pharma Consultancy, Inc.	Delaware
CDS – Centre de Service SAS	France
Coordinated Management Holdings L.L.C.	Delaware
Coordinated Management Systems, Inc.	Delaware
Core Center For Outcomes Research GmbH	Switzerland
CORE Holding GmbH	Switzerland
CRM Health Korea Ltd.	Korea
CSD Health Korea Ltd.	Korea
Data Niche Associates, Inc.	Illinois
Dataline Software Limited	United Kingdom
Datandina Ecuador S.A.	Ecuador
Datec Industria E Comercio, Distribuidora Grafica E Mala Direta Ltda.	Brazil
Enterprise Associates, LLC	Delaware
Forcea NV	Belgium
Global Crown Investment Limited	Hong Kong
Grace Data Corporation	Nebraska
Healthcare Technology Intermediate Holdings, LLC	Delaware
Healthcare Technology Intermediate, Inc.	Delaware
Hospital Marketing Services Ltd.	United Kingdom
Iasist Holdco Limited	United Kingdom
Iasist Portugal, Consultadoria Na Área De Saúde, Unipessoal, LDA	Portugal
Iasist Sau Agencia En Chile	Chile
Iasist Sociedad Anonima Unipersonal	Spain
ICOMED Belgium, SA	Belgium
ICOMED S.a.r.l.	France
Impact Rx, LLC	South Africa
IMS (Gibraltar) Holding Limited	Gibraltar
IMS (UK) Pension Plan Trustee Company Limited	United Kingdom
IMS AB	Sweden
IMS Adriatic D.O.O. Za Konzalting	Croatia
IMS AG	Switzerland
IMS Bermuda Holdings Ltd.	Bermuda
IMS Bermuda Investments Ltd.	Bermuda
IMS Bulgaria E.O.O.D.	Bulgaria
IMS Chinametrik Incorporated	Delaware
IMS Chinametrik Limited	Hong Kong
IMS Consulting Myanmar Company, Ltd.	Myanmar
IMS Contracting & Compliance, Inc.	Delaware
IMS Cyprus LTD	Cyprus
IMS Government Solutions, Inc.	Delaware
IMS Health (Australia) Partnership	Australia
IMS Health (N.Z.) Limited	New Zealand
IMS Health (Pty.) Ltd.	South Africa
IMS Health A.S.	Czech Republic
IMS Health Analytics Services Private Limited	India
IMS Health Argentina S.A.	Argentina
IMS Health Asia Pte. Ltd.	Singapore
IMS Health Australia Holding Pty. Ltd.	Australia
IMS Health Australia Pty. Ltd.	Australia

IMS Health B.V.	Netherlands
IMS Health Bangladesh Limited	Bangladesh
IMS Health Beteiligungs-gesellschaft mbH	Germany
IMS Health Bolivia S.R.L.	Bolivia
IMS Health Canada Inc.	Canada
IMS Health Capital, Inc.	Nevada
IMS Health Consulting Bvba	Belgium
IMS Health Consulting Sp.z.o.o.	Poland
IMS Health De Venezuela C.A.	Venezuela
IMS Health Del Peru S.A.	Peru
IMS Health Deutschland GmbH	Germany
IMS Health Do Brasil Ltda.	Brazil
IMS Health Egypt Limited	Egypt
IMS Health Finance B.V.	Netherlands
IMS Health Finance UK I Limited	United Kingdom
IMS Health Finance UK Ii Ltd.	United Kingdom
IMS Health Finance Uk Iii Ltd.	United Kingdom
IMS Health Finance UK V Ltd.	United Kingdom
IMS Health Finance, Inc.	Delaware
IMS Health Global Holdings UK Limited.	United Kingdom
IMS Health Gmbh	Switzerland
IMS Health GmbH & Co. OHG	Germany
IMS Health Group Limited	United Kingdom
IMS Health Holdings (Pty.) Ltd.	South Africa
IMS Health HQ Limited	United Kingdom
IMS Health II – Technology Solutions LDA.	Portugal
IMS Health Incorporated	Delaware
IMS Health India Holding Corporation	Delaware
IMS Health India Private Limited	India
IMS Health Information  Solutions India Private Ltd.	India
IMS Health Information and Consulting Services India Private Limited	India
IMS Health Information Solutions (China) Co. Ltd.	China
IMS Health Information Solutions Argentina S.A.	Argentina
IMS Health Information Solutions Australia Pty. Ltd.	Australia
IMS Health Information Solutions France SAS	France
IMS Health Information Solutions Japan K.K.	Japan
IMS Health Information Solutions Taiwan Co. Ltd.	Taiwan
IMS Health Korea Ltd.	Korea
IMS Health Lanka (Private) Limited	Sri Lanka
IMS Health Licensing Associates, L.L.C.	Delaware
IMS Health Limited	Ireland
IMS Health Limited	United Kingdom
IMS Health LLC	Russia
IMS Health Malaysia Sdn. Bhd.	Malaysia
IMS Health Marktforschung Gmbh	Austria
IMS Health Norway A/S	Norway
IMS Health Oy	Finland
IMS Health Pakistan (Private) Limited	Pakistan
IMS Health Paraguay SRL	Paraguay
IMS Health Philippines, Inc.	Philippines
IMS Health Puerto Rico Inc.	Puerto Rico
IMS Health Regional Pte Ltd.	Singapore
IMS Health S.A.	Spain
IMS Health S.A.S.	France
IMS Health S.P.R.L.	Belgium
IMS Health S.R.L.	Italy
IMS Health Scottish L.P.	United Kingdom
IMS Health Services Ltd.	Hungary
IMS Health Soluçoes De Tecnologia DO Brazil Ltda.	Brazil
IMS Health Sp.z.o.o.	Poland
IMS Health Support Montargis S.a.r.l.	France
IMS Health Surveys Limited	United Kingdom
IMS Health Sweden AB	Sweden

2

IMS Health Taiwan Ltd.	Taiwan
IMS Health Technology Services Limited	United Kingdom
IMS Health Technology Solutions Australia Pty. Ltd.	Australia
IMS Health Technology Solutions Austria GmbH	Austria
IMS Health Technology Solutions China Co. Ltd	China
IMS Health Technology Solutions Colombia Ltda.	Colombia
IMS Health Technology Solutions Czech Republic SRO	Czech Republic
IMS Health Technology Solutions Denmark AS	Denmark
IMS Health Technology Solutions Finland OY	Finland
IMS Health Technology Solutions France SAS	France
IMS Health Technology Solutions Greece AE	Greece
IMS Health Technology Solutions Holdings AB	Sweden
IMS Health Technology Solutions Hungary Ltd.	Hungary
IMS Health Technology Solutions India Private Ltd	India
IMS Health Technology Solutions Italy SRL	Italy
IMS Health Technology Solutions Japan K.K.	Japan
IMS Health Technology Solutions Kazakhstan, LLC	Kazakhstan
IMS Health Technology Solutions Middle East L.L.C.	Egypt
IMS Health Technology Solutions Norway AS	Norway
IMS Health Technology Solutions Poland SP. z.o.o.	Poland
IMS Health Technology Solutions Romania Srl	Romania
IMS Health Technology Solutions Slovakia SRO	Slovak Republic
IMS Health Technology Solutions Sweden AB	Sweden
IMS Health Technology Solutions Switzerland Sa	Switzerland
IMS Health Technology Solutions Ukraine LLC	Ukraine
IMS Health Technology Solutions Venezuela C.A.	Venezuela
IMS Health Technology TUNISIA	Tunisia
IMS Health Tibbi Istatistik Ticaret Ve Musavirlik Ltd Sirketi	Turkey
IMS Health Trading Corporation	Delaware
IMS Health Transportation Services Corporation	Delaware
IMS Health Tunisia Sarl	Tunisia
IMS Health UK Investments Limited.	United Kingdom
IMS Health Uruguay S.A.	Uruguay
IMS Health, LDA.	Portugal
IMS Hellas EPE.	Greece
IMS Holdings (U.K.) Limited	United Kingdom
IMS Hospital Group Limited	United Kingdom
IMS Informatics Ag	Switzerland
IMS Informatics Holding Ag	Switzerland
IMS Information Medical Statistics (Israel) Ltd.	Israel
IMS Information Medical Statistics, spol.s.r.o.	Slovak Republic
IMS Information Solutions Belgium SA	Belgium
IMS Information Solutions Medical Research Limited	United Kingdom
IMS Information Solutions Spain S.L.U.	Spain
IMS Information Solutions UK Ltd.	United Kingdom
IMS Japan K.K.	Japan And Delaware
IMS Market Research Consulting (Shanghai) Co., Ltd.	China
IMS Medical Radar AB	Sweden
IMS Meridian Limited	Hong Kong
IMS Meridian Research Limited	British Virgin Islands
IMS Pharmaceutical Services Srl.	Romania
IMS Republica Dominicana, S.A.	Dominican Republic
IMS Services, LLC	Delaware
IMS Services, pharmaceutical marketing services Ltd.	Slovenia
IMS Software GmbH	Germany
IMS Software Services Ltd.	Delaware
IMS Technology Solutions Netherlands B.V.	Netherlands
IMS Technology Solutions Spain, SA	Spain
IMS Technology Solutions UK Limited	United Kingdom
IMS Trading Management, Inc.	Delaware
IMSworld Publications Limited.	United Kingdom
Infopharm Ltd.	United Kingdom
Informations Medicales & Statistiques S.A.R.L.	Morocco

3

Institute of Medical Communications NCO	Russia
Intercam Ltd.	Ireland
Intercomunicaciones Y Servicio De Datos Interdata S.A.	Colombia
Intercontinental Medical Statistics International, Ltd. (De)	Delaware
Intercontinental Medical Statistics Kenya Limited	Kenya
Interstatistik Ag	Switzerland
IPP  Technology Solutions Mexico SA de CV	Mexico
IPP Informacion Promocional y Publicitaria S.A. de C.V.	Mexico
M&H Informatics (Bd) Ltd.	Bangladesh
Med-Vantage, Inc.	Delaware
Mercados Y Analisis, S.A.	Spain
Mercurial Insights Holding Pty. Ltd.	Australia
Mercurial Insights Pty. Ltd.	Australia
Meridian Research Vietnam Ltd.	Vietnam
MSM Centroamerica Y El Caribe, SA	Costa Rica
M-Tag Pty. Limited	Australia
Nordisk Medicin Information AB	Sweden
Operaciones Centralizadas Latinoamericana Limitada	Chile
Pharma Deals Limited	United Kingdom
Pharmadat Marktforschumgs Gesellschaft M.B.H.	Austria
Pharmadata s.r.o.	Slovak Republic
PharmARC Consulting Services GmbH	Switzerland
PharmARC Inc.	New Jersey
Pharm-Consult Limited Liability Partnership	Kazakhstan
Pharmecon AS	Norway
PR Editions S.A.S.	France
PR International S.A.S.	France
Primeum IMS SAS	France
PT IMS Health Indonesia	Indonesia
Pygargus AB	Sweden
Rehfeld Partners A/S	Denmark
Rehfeld Solutions A/S	Denmark
Reportive SA	France
RMBC Pharma Ltd.	Russia
Rx India Corporation	Delaware
Schwarzeck Verlag GmbH	Germany
Shanghai Ims Market Research Co. Ltd.	China
Source Belgium Sprl	Belgium
Spartan Leasing Corporation	Delaware
Suomen Lääkedata Oy	Finland
The Amundsen Group, Inc.	Massachusetts
UAB IMS Health	Lithuania
Valuemedics Research, LLC	Delaware

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EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statement on FormS‑3 (No. 333-203836)and Form S‑8 (No.333-195143) of IMS Health Holdings, Inc., of our report datedFebruary 19, 2016 relating to the financial statements, financial statement schedules and the effectiveness of internal control over financial reporting, which appears in this Form 10‑K.

/s/PricewaterhouseCoopers LLP
New York, NY
February 19, 2016

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 Annual Report on Form 10-K of IMS Health 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: February 19, 2016

/s/ Ari Bousbib

Ari Bousbib

Chairman, Chief Executive Officer & 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, Ronald E. Bruehlman, certify that:

1. I have reviewed this Annual Report on Form 10-K of IMS Health 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: February 19, 2016

/s/ Ronald E. Bruehlman

Ronald E. Bruehlman

Senior 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

In connection with the Annual Report of IMS Health Holdings, Inc. (the “Company”) on Form 10-K for the fiscal year ended December 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Ari Bousbib, Chairman, Chief Executive Officer & President of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

· The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

· 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: February 19, 2016

/s/ Ari Bousbib

Ari Bousbib

Chairman, Chief Executive Officer & President

(Principal Executive Officer)

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

In connection with the Annual Report of IMS Health Holdings, Inc. (the “Company”) on Form 10-K for the fiscal year ended December 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Ronald E. Bruehlman, Senior Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

· The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

· 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: February 19, 2016

/s/ Ronald E. Bruehlman

Ronald E. Bruehlman

Senior Vice President and Chief Financial Officer

(Principal Financial Officer)

XML

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Feb. 10, 2016	Jun. 30, 2015
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY
Trading Symbol	IMS
Entity Registrant Name	IMS Health Holdings, Inc.
Entity Central Index Key	0001595262
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		329,338,615
Entity Public Float			$ 3,994

XML

Consolidated Statements of Financial Position - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 396	$ 390
Accounts receivable, net	508	330
Other current assets	188	294
Total Current Assets	1,092	1,014
Property, plant and equipment, net	167	153
Computer software, net	309	258
Goodwill	3,604	3,417
Other identifiable intangibles, net	2,178	2,142
Other assets	109	112
Total Assets	7,459	7,096
Current Liabilities:
Accounts payable	163	87
Accrued and other current liabilities	611	481
Current portion of long-term debt	59	50
Deferred revenues	200	167
Total Current Liabilities	1,033	785
Postretirement and postemployment benefits	109	95
Long-term debt	4,136	3,689
Deferred tax liability	526	904
Other liabilities	83	81
Total Liabilities	$ 5,887	$ 5,554
Commitments and Contingencies (Notes 12 and 13)
Shareholders’ Equity:
Common Stock, $0.01 par value, 700.0 shares authorized, 340.8 and 335.6 shares issued at December 31, 2015 and 2014, respectively	$ 3	$ 3
Capital in excess of par	2,038	1,975
Retained earnings (Accumulated deficit)	208	(209)
Treasury stock, at cost, 12.6 and 0.8 shares at December 31, 2015 and 2014, respectively	(327)	(10)
Accumulated other comprehensive loss	(350)	(217)
Total Shareholders’ Equity	1,572	1,542
Total Liabilities and Shareholders’ Equity	$ 7,459	$ 7,096

XML

Consolidated Statements of Financial Position (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	700,000,000	700,000,000
Common Stock, shares issued	340,800,000	335,600,000
Treasury stock, shares	12,600,000	800,000

XML

Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Statement [Abstract]
Revenue	$ 2,921	$ 2,641	$ 2,544
Information	1,483	1,515	1,525
Technology services	1,438	1,126	1,019
Operating costs of information, exclusive of depreciation and amortization	666	665	648
Direct and incremental costs of technology services, exclusive of depreciation and amortization	750	573	520
Selling and administrative expenses, exclusive of depreciation and amortization	712	721	596
Depreciation and amortization	341	441	410
Severance, impairment and other charges	88	33	16
Operating Income	364	208	354
Interest income	3	4	4
Interest expense	(169)	(221)	(332)
Other income (loss), net	19	(276)	(74)
Non-Operating Loss, Net	(147)	(493)	(402)
Income (loss) before income taxes	217	(285)	(48)
Benefit from income taxes	200	96	130
Net Income (Loss)	$ 417	$ (189)	$ 82
Earnings (Loss) per Share Attributable to Common Shareholders:
Basic	$ 1.26	$ (0.59)	$ 0.29
Diluted	$ 1.23	$ (0.59)	$ 0.29
Weighted-Average Common Shares Outstanding:
Basic	331.0	319.0	280.0
Diluted	339.3	319.0	287.0
Comprehensive Income (Loss):
Net Income (Loss)	$ 417	$ (189)	$ 82
Cumulative translation adjustment (net of taxes of $(42), $(27) and $—, respectively)	(118)	(178)	(183)
Unrealized gains on derivative instruments (net of taxes of $—, $— and $(4), respectively)	1	2	9
Gains on derivative instruments, reclassified into earnings (net of taxes of $9, $2 and $5, respectively)	(15)	(4)	(9)
Postretirement and postemployment adjustments (net of taxes of $—, $13, and $(16), respectively)	(1)	(30)	24
Other Comprehensive Loss	(133)	(210)	(159)
Total Comprehensive Income (Loss)	$ 284	$ (399)	$ (77)

XML

Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Other Comprehensive Income Loss Tax [Abstract]
Cumulative translation adjustment, taxes	$ (42)	$ (27)
Unrealized (losses) gains on derivatives, taxes			$ (4)
(Gains) losses on derivative instruments, reclassified into earnings, taxes	$ 9	2	5
Postretirement and postemployment adjustments, taxes		$ 13	$ (16)

XML

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash Flows from Operating Activities:
Net Income (Loss)	$ 417	$ (189)	$ 82
Adjustments to Reconcile Net Income (Loss) to Net Cash from Operating Activities:
Depreciation and amortization	341	441	410
Loss on extinguishment of debt		79	9
Deferred income taxes	(294)	(189)	(206)
Non-cash stock-based compensation charges	25	58	22
Foreign exchange loss on revaluation of foreign denominated debt			40
Non-cash (gains) losses on derivative instruments	(20)	10	(10)
Non-cash amortization of debt original issue discount and issuance costs	10	18	35
Loss on Venezuela remeasurement	7	49	14
Excess tax benefits from stock-based compensation	(11)
Other	11	1	4
Change in assets and liabilities, excluding effects from acquisitions and dispositions:
Net (increase) decrease in accounts receivable	(25)	(13)	4
Net decrease (increase) in other current assets	19	(17)	(9)
Net decrease in accounts payable	(4)	(17)	(5)
Net increase (decrease) in accrued and other current liabilities	15	(67)	70
Net increase (decrease) in deferred revenues	4	(16)	5
Increase in pension assets (net of liabilities)	(6)	(12)	(38)
Decrease (increase) in other long-term assets (net of long-term liabilities)	1	(26)	(13)
Net Cash Provided by Operating Activities	490	110	414
Cash Flows from Investing Activities:
Capital expenditures	(52)	(72)	(41)
Additions to computer software	(131)	(95)	(81)
Payments for acquisitions of businesses, net of cash acquired	(541)	(58)	(118)
Purchases of short-term investments			(22)
Proceeds from short-term investments		1	85
Purchase of interest rate caps		(21)
Decrease in restricted cash	14
Other investing activities, net	(6)	4	(3)
Net Cash Used in Investing Activities	(716)	(241)	(180)
Cash Flows from Financing Activities:
Borrowings under revolving credit facility	619	673	135
Repayments of revolving credit facility	(506)	(458)	(135)
Proceeds from issuance of debt	496	499	750
Repayments of debt	(57)	(1,783)	(28)
Debt issuance costs and amendment fees	(7)	(22)	(17)
Contingent consideration and deferred purchase price payments	(7)	(33)
Dividends paid			(753)
Proceeds from equity plan activity	27	17	1
Payments for treasury stock	(314)	(3)	(1)
Excess tax benefits from stock-based compensation	11
Proceeds from initial public offering, net of costs		987
Other financing activities			(4)
Net Cash Provided by (Used in) Financing Activities	262	(123)	(52)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(30)	(81)	(37)
Increase (Decrease) in Cash and Cash Equivalents	6	(335)	145
Cash and Cash Equivalents, Beginning of Period	390	725	580
Cash and Cash Equivalents, End of Period	396	390	725
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for interest	158	243	278
Cash paid during the period for income taxes	95	95	71
Cash received from income tax refunds	$ 3	$ 12	$ 63

XML

Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Millions	Total	(Gains) Losses on Derivative Instruments Reclassified into Earnings	Common Stock	Treasury Stock	Capital in Excess of Par	Retained Earnings (Accumulated Deficit)	Cumulative Translation Adjustment	Unrealized Gains (Losses) on Derivative Instruments	Unamortized Postretirement and Postemployment Adjustment	Accumulated Other Comprehensive Gain (Loss)
Balance at Dec. 31, 2012	$ 1,683	$ 9	$ 3	$ (4)	$ 1,634	$ (102)	$ 192	$ (8)	$ (41)	$ 152
Balance, shares at Dec. 31, 2012			280,400	(400)
Net Income (Loss)	82					82
Issuances of common stock	2				2
Issuances of common stock, Shares			100
Repurchases of common stock	(2)			$ (2)
Repurchases of common stock, Shares				(100)
Stock-based compensation expense	22				22
Dividends paid to shareholders, net of tax	(745)				(745)
Cumulative translation adjustments, net of tax	(183)						(183)			(183)
Unrealized gains on derivative instruments, net of tax	9							9		9
Gains on derivative instruments reclassified into earnings, net of tax	(9)	(9)								(9)
Postretirement and postemployment adjustments, net of tax	24								24	24
Balance at Dec. 31, 2013	883		$ 3	$ (6)	913	(20)	9	1	(17)	(7)
Balance, shares at Dec. 31, 2013			280,500	(500)
Net Income (Loss)	(189)					(189)
Issuances of common stock	1,003				1,003
Issuances of common stock, Shares			55,100
Repurchases of common stock	(3)			$ (4)	1
Repurchases of common stock, Shares				(300)
Stock-based compensation expense	58				58
Cumulative translation adjustments, net of tax	(178)						(178)			(178)
Unrealized gains on derivative instruments, net of tax	2							2		2
Gains on derivative instruments reclassified into earnings, net of tax	(4)	(4)								(4)
Postretirement and postemployment adjustments, net of tax	(30)								(30)	(30)
Balance at Dec. 31, 2014	1,542	(4)	$ 3	$ (10)	1,975	(209)	(169)	3	(47)	(217)
Balance, shares at Dec. 31, 2014			335,600	(800)
Net Income (Loss)	417					417
Issuances of common stock	27				27
Issuances of common stock, Shares			5,200
Repurchases of common stock	$ (317)			$ (317)
Repurchases of common stock, Shares	(670)			(11,800)
Stock-based compensation expense	$ 25				25
Net tax benefit on stock-based compensation	11				11
Cumulative translation adjustments, net of tax	(118)						(118)			(118)
Unrealized gains on derivative instruments, net of tax	1							1		1
Gains on derivative instruments reclassified into earnings, net of tax	(15)	(15)								(15)
Postretirement and postemployment adjustments, net of tax	(1)								(1)	(1)
Balance at Dec. 31, 2015	$ 1,572	$ (19)	$ 3	$ (327)	$ 2,038	$ 208	$ (287)	$ 4	$ (48)	$ (350)
Balance, shares at Dec. 31, 2015			340,800	(12,600)

XML

Business and Basis of Presentation

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Business and Basis of Presentation

Note 1. Business and Basis of Presentation

Background

IMS Health Holdings, Inc. (the “Company”) is a leading global information and technology services company providing clients in the healthcare industry with comprehensive solutions to measure and improve their performance. The Company has one of the largest and most comprehensive collections of healthcare information in the world, spanning sales, prescription and promotional data, medical claims, electronic medical records and social media. The Company standardizes, organizes, structures and integrates this data by applying its sophisticated analytics and leveraging its global technology infrastructure to help its clients run their organizations more efficiently and make better decisions to improve their operational and financial performance. The Company has a presence in over 100 countries and generated 61% of its 2015 revenue from outside the United States.

The Company serves key healthcare organizations and decision makers around the world, spanning the breadth of life science companies, including pharmaceutical, biotechnology, consumer health and medical device manufacturers, as well as distributors, providers, payers, government agencies, policymakers, researchers and the financial community. The Company’s information and technology services offerings, which it has developed with significant investment over its 60+ year history, are deeply integrated into its clients’ workflow.

On October 23, 2009, the Company was formed as Healthcare Technology Holdings, Inc. by investment entities affiliated with TPG Global, LLC, CPP Investment Board Private Holdings Inc. and Leonard Green & Partners, L.P (collectively, the “Sponsors”). In December 2013, the Company changed its name to IMS Health Holdings, Inc. On February 26, 2010, the Company acquired 100% of the outstanding shares of IMS Health Incorporated (“IMS Health” or “predecessor entity”) through its wholly owned subsidiary Healthcare Technology Acquisition, Inc. (the “Merger”). The Company was formed for the purpose of consummating the Merger with IMS Health and had no operations from inception other than its investment in IMS Health and its subsidiaries and costs incurred associated with its formation and the Merger.

Initial Public Offering

In April 2014, the Company completed its Initial Public Offering (“IPO”) of its common stock and raised net proceeds of approximately $987 million, after deducting underwriting discounts, commissions and related expenses totaling $53 million. Substantially all of the Company’s net proceeds of the IPO, approximately $500 million of borrowings under new term loans, $140 million of borrowings under the revolving credit facility and approximately $400 million of cash on the balance sheet were used to (i) fund the redemption of the Company’s 12.5% Senior Notes and Senior PIK Notes (defined in Note 7 below) and pay related fees and expenses, (ii) pay $30 million in the aggregate to holders of outstanding cash settled stock appreciation rights (“Phantom SARs”) granted under the Company’s 2010 Equity Incentive Plan (the “2010 Equity Plan”) and (iii) pay a one-time fee of $72 million to terminate the management services agreement with the Sponsors. As of December 31, 2015, the Sponsors collectively remained the majority shareholders of the Company.

Basis of Presentation

The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain prior year amounts have been reclassified to conform to the 2015 presentation. Amounts presented in the Consolidated Financial Statements may not add due to rounding.

XML

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

Consolidation.  The Consolidated Financial Statements of the Company include the accounts of the Company, its subsidiaries and investments in which the Company has control. Intercompany accounts and transactions are eliminated in consolidation. The Company recognizes in the income statement any gains or losses related to investments accounted for under the equity method.

Cash and cash equivalents and restricted cash.  Cash and cash equivalents include primarily time and demand deposits in the Company’s operating bank accounts. The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be cash equivalents. Restricted cash consists of amounts not immediately available.

Property, plant and equipment.  Buildings, machinery and equipment are recorded at cost and depreciated over their estimated useful lives to their salvage values using the straight-line method. Leasehold improvements are recorded at cost and amortized on a straight-line basis over the shorter of the term of the lease or the estimated useful life of the improvement. See Note 14.

Computer software.  Direct costs incurred in the development of the Company’s internal-use computer software are capitalized. Costs are capitalized from completion of the preliminary project stage and when it is considered probable that the software will be used to perform its intended function, up until the time the software is placed into service. Once placed into service, the software is amortized generally over a period of three to fifteen years. The Company periodically reviews the unamortized capitalized costs of its computer software to assess for any potential impairment. The Company recognizes immediately any impairment losses on software as a result of its review. Research and development costs are expensed in the periods in which they are incurred.

Business combinations.  Business combinations are accounted for using the acquisition method, and accordingly, the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree are recorded at their estimated fair values on the date of acquisition. Acquisition-related costs are expensed as incurred and recorded in selling and administrative expense, exclusive of depreciation and amortization. The Consolidated Financial Statements include the results of the acquisitions subsequent to each of their closings.

Goodwill.  Goodwill represents the excess purchase price over the fair value of identifiable net assets of businesses acquired, and is not amortized. The Company reviews the recoverability of goodwill annually (or based on any triggering event). To analyze goodwill for impairment, the Company must assign its goodwill to individual reporting units. Identification of reporting units, considers, among other things, the manner in which the Company operates its business and the availability of discrete financial information.

For its impairment test as of October 1, 2015, the Company utilized a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value which includes, but is not limited to, consideration of the results of its most recent quantitative impairment test, consideration of macroeconomic conditions, industry and market conditions, cost factors, cash flows, changes in key Company personnel and its share price.

For its impairment tests as of October 1, 2014 and 2013, the Company utilized a quantitative goodwill impairment test, which requires estimating fair value of a reporting unit based on a discounted cash flow analysis. A discounted cash flow analysis requires the Company to make various judgmental assumptions, including assumptions about the timing and amount of future cash flows, growth rates and discount rates. If the carrying amount of the reporting unit exceeds its fair value, the goodwill impairment loss is measured as the excess of the carrying value of goodwill over its fair value.

Based on its annual impairment tests in 2015, 2014 and 2013, no goodwill impairment charges were recorded. See Note 4.

Other long-lived assets.  The Company reviews the recoverability of its long-lived assets and identifiable intangibles held and used whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In general, the assessment of possible impairment is based on the Company’s ability to recover the carrying value of the asset from the undiscounted expected future cash flows of the asset. If the future cash flows are less than the carrying value of such asset, an impairment charge is recognized for the difference between the estimated fair value and the carrying value. In addition, the Company also reviews its indefinite-lived intangible assets on an annual basis.

Revenue recognition.  The Company recognizes revenue when the following criteria have been met: 1) persuasive evidence of an arrangement exists; 2) delivery has occurred or services have been rendered; 3) the seller’s price to the buyer is fixed or determinable; and 4) collectibility is reasonably assured.

The Company offers various information offerings developed to meet its clients’ needs by using data secured from a worldwide network of suppliers. The Company’s revenue arrangements may include multiple elements. A typical information offerings arrangement (primarily under fixed-price contracts) may include an ongoing subscription-based deliverable for which revenue is recognized ratably as earned over the contract period, and/or a one-time delivery of data offerings for which revenue is recognized upon delivery, assuming all other criteria are met. The Company’s subscription arrangements typically have terms ranging from one to three years and are generally non-cancelable and do not contain refund-type provisions.

The Company also offers technology services offerings that enable its clients to make informed business decisions. Technology services offerings consist of a mix of small and large-scale services and consulting projects, multi-year outsourcing contracts and Software-as-a-Service (“SaaS”) licenses. These arrangements typically have terms ranging from several weeks to three years, with a majority having terms of one year or less. Revenues for services engagements where deliverables occur ratably over time are recognized on a straight-line basis over the term of the arrangement. Revenues from time and material contracts are recognized as the services are provided. Revenues from fixed price ad hoc services and consulting contracts are recognized either over the contract term based on the ratio of the number of hours incurred for services provided during the period compared to the total estimated hours to be incurred over the entire arrangement (efforts based), or upon delivery (completed contract).

The deliverables in multi-element arrangements qualify as separate units of accounting as each has value on a standalone basis to the client, objective and reliable evidence of fair value for any undelivered item(s) exists, and where the arrangement includes a general right of return relative to the delivered item(s), delivery of the undelivered item(s) is probable and within the Company’s control. The Company allocates revenue to each element within its arrangements based upon their respective relative selling price. Fair values for these elements are based upon the normal pricing practices for these offerings when sold separately. The Company defers revenue for any undelivered elements, and recognizes revenue when the product is delivered or over the term of the agreement, in accordance with its revenue recognition policy for such element as noted above.

The Company presents its revenues net of taxes assessed by government authorities.

Payment terms vary by client, but are typically stipulated in the contract and are generally invoiced with 30 day payment terms. The Company generally does not offer extended payment terms. Advance payments from clients are credited to Deferred revenues and reflected in Revenue as earned over the contract term. Unbilled receivables are included in Accounts receivable, net in the Consolidated Statements of Financial Position and represent revenues for products delivered or services performed that have not yet been invoiced to the client. Unbilled receivables are generally invoiced within the following month.

Operating costs of information.  Operating costs of information includes costs attributable to personnel involved in production, data management and delivery, and the costs of acquiring and processing data for the Company’s information offerings. One of the Company’s major expenditures is the cost for the data it receives from suppliers. After receipt of the raw data and prior to the data being available for use in any part of the business, the Company is required to transform the raw data into useful information through a series of comprehensive processes. These processes involve significant employee costs and data processing costs. Costs associated with purchases are deferred within work-in-process inventory and recognized as expense as the corresponding data product revenue is recognized, generally over a thirty to sixty day period.

Direct and incremental costs of technology services.  Direct and incremental costs of technology services include costs of staff directly involved with delivering technology-related, consulting and services generating offerings and engagements, related accommodations and the costs of data purchased specifically for technology services engagements. Direct and incremental costs of technology services do not include an allocation of direct costs of data that are included in operating costs of information. Although the Company’s data, the costs of which are included in Operating costs of information, is used in multiple client solutions across different offerings within both information and technology services, the Company does not have a meaningful way to allocate the direct cost of the data between information and technology services. As such, the direct and incremental costs of technology services do not reflect the total costs incurred to deliver technology services engagements.

Restructuring activities.  The Company records a liability for significant costs associated with restructuring activities, including employee severance and related benefits, lease termination costs, asset impairments and other qualifying exit costs, when such costs are deemed probable and estimable. Employee severance benefits are calculated pursuant to the terms of established employee protection plans, in accordance with local statutory minimum requirements or individual employee contracts, as applicable. These charges are included in Severance, impairment and other charges, a component of operating income, on the Consolidated Statements of Comprehensive Income (Loss).

Pensions and other postretirement benefits.  The Company provides a number of retirement benefits to its employees, including defined benefit pension plans and postretirement medical plans. The determination of benefit obligations and expense is based on actuarial models. In order to measure benefit costs and obligations using these models, critical assumptions are made with regard to the discount rate, expected return on plan assets, cash balance crediting rate, lump sum conversion rate and the assumed rate of compensation increases. In addition, retiree medical care cost trend rates are a key assumption used exclusively in determining costs for the Company’s postretirement health care and life insurance benefit plans. Management reviews these critical assumptions at least annually. Other assumptions involve demographic factors such as the turnover, retirement and mortality rates. Management reviews these assumptions periodically and updates them when its experience deems it appropriate to do so.

The discount rate is the rate at which the benefit obligations could be effectively settled and is determined annually by management. For U.S. plans, the discount rate is based on results of a modeling process in which the plans’ expected cash flow (determined on a projected benefit obligation basis) is matched with spot rates developed from a yield curve comprised of high-grade (Moody’s Aa and above, or Standard and Poor’s AA and above) non-callable corporate bonds to develop the present value of the expected cash flow, and, prior to December 31, 2015, then determining the single rate (discount rate) which when applied to the expected cash flow derives that same present value. In the U.K. specifically, the discount rate is set based on the yields on a universe of approximately 120 high quality (Aa rated) non-callable corporate bonds denominated in U.K. Sterling, appropriate to the duration of Plan liabilities. For the other non-U.S. plans, the discount rate is based on the current yield of an index of high quality corporate bonds. At December 31, 2015, the discount rate ranged from 3.00% to 4.57% compared to 2.60% to 3.90% at December 31, 2014 for its U.S. pension plans and postretirement benefit plan. The discount rate for its U.K. pension plan increased to 3.89% at December 31, 2015 from 3.80% at December 31, 2014. The U.S. and U.K. plans represent approximately 90% of the consolidated benefit obligation as of December 31, 2015. The discount rates in other non-U.S. countries increased, as the range of applicable discount rates was 0.60% to 5.00% at December 31, 2015, compared to 0.50% to 4.60% at December 31, 2014.

In 2016, the Company will change its approach of how it estimates the service and interest cost components of net periodic benefit cost for its U.S. and U.K. pension benefit plans. Previously, the Company estimated the service and interest cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation. The new estimate utilizes a full yield curve approach in the estimation of these components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to each of the underlying projected cash flows based on time until payment. The new estimate provides a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows and their corresponding spot rates. The change does not affect the measurement of the Company’s U.S. and U.K. pension benefit obligations and it is accounted for as a change in accounting estimate, which is applied prospectively.

Under the U.S. qualified retirement plan, participants have a notional retirement account that increases with pay and investment credits. The rate used to determine the investment credit (cash balance crediting rate) varies monthly and is equal to 1/12th of the yield on 30-year U.S. Government Treasury Bonds, with a minimum of 0.25%. At retirement, the account is converted to a monthly retirement benefit.

In selecting an expected return on plan asset assumption, the Company considers the returns being earned by each plan investment category in the fund, the rates of return expected to be available for reinvestment and long-term economic forecasts for the type of investments held by the plan. The expected return on plan assets for the U.S. pension plans was 8.0% at January 1, 2016 and January 1, 2015. Outside the U.S., the range of applicable expected rates of return was 1.0% to 5.5% as of January 1, 2016 compared to 1.0% to 6.0% as of January 1, 2015. The actual return on plan assets will vary from year to year versus this assumption. The Company believes it is appropriate to use long-term expected forecasts in selecting the expected return on plan assets. As such, there can be no assurance that the Company’s actual return on plan assets will approximate the long-term expected forecasts. While the Company believes that the assumptions used are reasonable, differences in actual experience or changes in assumptions may materially affect its pension and postretirement obligations and future expense.

The Company’s estimated long-term rate of return on plan assets is based on the principles of capital market theory which maintain that over the long run, prudent investment risk taking is rewarded with incremental returns and that combining non-correlated assets can maximize risk adjusted portfolio returns. Long-term return estimates are developed by asset category based on actual class return data, historical relationships between asset classes and risk factors and peer plan data. Long-term return estimates for the Company’s U.K. pension plan are developed by asset category based on actual class return data, historical relationships between asset classes and risk factors.

The Company utilizes a corridor approach to amortizing unrecognized gains and losses in the pension and postretirement plans. Amortization occurs when the accumulated unrecognized net gain or loss balance exceeds the criterion of 10% of the larger of the beginning balances of the projected benefit obligation or the market-related value of the plan assets. The excess unrecognized gain or loss balance is then amortized using the straight-line method over the average remaining service-life of active employees expected to receive benefits. At December 31, 2015, the weighted-average remaining service-life of active employees was approximately 25 years.

Additional information on pension and other postretirement benefit plans is contained in Note 8.

Debt fees.  Costs incurred to issue debt are generally deferred and amortized as a component of interest expense over the estimated term of the related debt using the effective interest rate method.

Foreign currency.  The Company has significant investments in non-U.S. countries. Therefore, changes in the value of foreign currencies affect the Company’s Consolidated Financial Statements when translated into U.S. Dollars. For all operations outside the U.S. where the Company has designated the local currency as the functional currency, assets and liabilities are translated using end-of-period exchange rates; revenues, expenses and cash flows are translated using average rates of exchange prevailing during the period the transactions occurred. Translation gains and losses are included as an adjustment to the accumulated other comprehensive income (loss) (“AOCI”) component of Shareholders’ Equity. In addition, gains and losses from foreign currency transactions, such as those resulting from the settlement and revaluation of third-party and intercompany foreign receivables and payables, are included in the determination of net income (loss).

For operations in countries that are considered to be highly inflationary or where the U.S. Dollar is designated as the functional currency, monetary assets and liabilities are remeasured using end-of-period exchange rates, whereas non-monetary accounts are remeasured using historical exchange rates, and all remeasurement and transaction adjustments are recognized in Other income (loss), net.

Income taxes.  The Company operates in more than 100 countries around the world and its earnings are taxed at the applicable income tax rate in each of those countries. The Company provides for income taxes utilizing the asset and liability method of accounting for income taxes. Under this method, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each balance sheet date, based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. If it is determined that it is more likely than not that future tax benefits associated with a deferred tax asset will not be realized, a valuation allowance is provided. In the event the Company was to determine that it would be able to realize its deferred tax assets in the future in excess of its net recorded amount, an adjustment to the deferred tax asset would increase income in the period such determination was made. Likewise, should the Company determine that it would not be able to realize all or part of its net deferred tax asset in the future, an adjustment to the deferred tax asset would be charged to income in the period such determination was made. The effect on deferred tax assets and liabilities of a change in the tax rates is recognized in income in the period that includes the enactment date. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. See Note 11 for additional information.

Stock-based compensation.  The Company maintains an equity incentive plan, which provides for the grant of stock options (including incentive stock options), stock appreciation rights, restricted and deferred stock (including restricted stock units), dividend equivalents, other stock-based awards and performance awards, including annual incentive awards. The Company is required to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. For performance-based awards, stock-based compensation expense is adjusted over time based on the Company’s assessment of the probability of achieving the financial targets. The value of the portion of the award that is ultimately expected to vest is recognized as expense either on a straight-line basis over the requisite service period of the award or on a graded vesting basis (performance-based awards) in the Company’s Consolidated Statements of Comprehensive Income (Loss). As the stock-based compensation is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. The Company is required to estimate the forfeitures at the time of grant and revise, if necessary, in subsequent periods if actual forfeitures differ from those estimates. See Note 10 for additional information.

Computation of earnings (loss) per share.  Basic earnings (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed, when the result is dilutive, using the weighted-average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares primarily consist of employee stock options and restricted stock units.

Employee equity share options, restricted stock units, performance shares and similar equity instruments granted by the Company are treated as potential common shares outstanding in computing diluted earnings per share. Diluted shares outstanding include restricted stock units and the dilutive effect of in-the-money options which is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of benefits that would be recorded in additional paid-in capital when the award becomes deductible for tax purposes are assumed to be used to repurchase shares.

In periods of net loss, basic loss per share and diluted loss per share are the same since the effect of potential common shares is anti-dilutive and therefore excluded. See Note 17 for additional information.

Treasury stock.  The Company records treasury stock purchases under the cost method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid in capital. If the Company reissues treasury stock at an amount below its acquisition cost and additional paid in capital associated with prior treasury stock transactions is insufficient to cover the difference between the acquisition cost and the reissue price, this difference is recorded against retained earnings. See Note 9 for additional information.

Legal costs.  Legal costs are expensed as incurred.

Reportable segments.  The Company’s operations consist of one reportable segment, which represents management’s view of the Company’s operations based on its management and internal reporting structure. See Note 16 for additional information.

Use of estimates.  The preparation of financial statements and related disclosures in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and the related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates. The most significant estimates relate to allowances, depreciation of fixed assets including salvage values, carrying value of goodwill and intangible assets, provision for income taxes and tax assets and liabilities, reserves for severance, pensions and reserves for employee benefits, stock-based compensation, contingencies and litigation. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The accounting estimates used in the preparation of the Company’s Consolidated Financial Statements will change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. Actual results could vary from the estimates and assumptions used in the preparation of the Consolidated Financial Statements.

Recently Issued Accounting Standards

In November 2015, the Financial Accounting Standards Board (“FASB”) issued guidance on the balance sheet classification of deferred taxes. The guidance requires deferred tax assets and deferred tax liabilities be presented as noncurrent in a classified statement of financial position, instead of separately presenting deferred tax assets and deferred tax liabilities as current and noncurrent. The Company early-adopted the guidance effective December 31, 2015 on a prospective basis, and as such, prior periods were not restated on adoption.

In September 2015, the FASB issued guidance that eliminates the requirement to restate prior period financial statements for measurement period adjustments and requires the cumulative impact of a measurement period adjustment to be recognized in the reporting period in which the adjustment is identified. The guidance will be applied prospectively and is effective for the Company’s interim and annual periods beginning after December 15, 2015. The Company early-adopted the guidance during the fourth quarter ended December 31, 2015 with no material effect on the Consolidated Statement of Comprehensive Income (Loss). See Note 3 for more information regarding measurement period adjustments recorded during the three months ended December 31, 2015.

In May 2014, the FASB issued revised guidance on the recognition of revenue from contracts with customers. The guidance provides that revenue should be recognized for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires enhanced disclosures. In August 2015, the FASB delayed the effective date of the guidance to interim and annual periods beginning January 1, 2018. Earlier adoption is permitted. The Company is currently evaluating the impact of this new standard on its Consolidated Financial Statements, as well as the method of transition that it will use in adopting the new standard.

In May 2015, the FASB updated the accounting standards related to fair value measurement for investments that are measured at net asset value. The update eliminates the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share as a practical expedient. In addition, the update limits disclosures to investments for which the entity elected to measure the fair value using the practical expedient rather than all eligible investments. The update is effective beginning in the first quarter of 2016, with early adoption permitted, and will be applied retrospectively. The standard will only impact disclosures related to certain assets held by its pension plans and will not impact the Company’s consolidated financial results.

In April 2015, the FASB issued guidance to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. Under the new guidance, if a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance is effective for the Company’s interim and annual periods beginning after December 15, 2015. Early adoption is permitted. The Company does not believe the adoption of this guidance will have a material impact on its financial results.

Also in April 2015, the FASB issued guidance on the presentation of debt issuance costs. The guidance requires the presentation of debt issuance costs as a direct deduction from the related debt liability rather than as an asset. In August 2015, the FASB clarified the guidance that debt issuance costs related to line-of-credit arrangements could continue to be presented as an asset and be subsequently amortized over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the arrangement. The guidance is effective for the Company’s interim and annual periods beginning after December 15, 2015 and requires retrospective application to all prior periods presented. The Company adopted the guidance effective December 31, 2015 and presented $51 million and $54 million, respectively, of debt issuance costs as a direct deduction to the debt liability as of December 31, 2015 and 2014. The Company continues to present the unamortized debt issuance costs for its revolving credit facility in Other assets. This change in accounting principle did not have an impact on the Company’s results of operations, cash flows or stockholders’ equity.

In April 2014, the FASB issued guidance which changed the criteria for reporting discontinued operations and modifies the related disclosure requirements. Additionally, the new guidance requires that a business which qualifies as held for sale upon acquisition should be reported as discontinued operations. Adoption of this guidance, which was applied prospectively, on January 1, 2015 did not have a material impact on our Consolidated Financial Statements.

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Acquisitions

12 Months Ended

Dec. 31, 2015

Business Combinations [Abstract]

Acquisitions

Note 3. Acquisitions

The Company makes acquisitions to enhance its capabilities and offerings in certain areas, including technology services.

2015

On April 1, 2015, the Company completed the acquisition of certain customer relationship management (“CRM”) and strategic data businesses of Cegedim, SA (“Cegedim” and the “Cegedim acquisition”) at a price of €385 million plus an initial working capital adjustment of €11 million (or $426 million). In December 2015, the Company made a payment of €17 million, or approximately $19 million, to Cegedim, SA for an additional working capital adjustment, as part of the purchase agreement, bringing the purchase price to approximately $445 million. The acquisition included Cegedim’s (i) CRM solutions that help life sciences clients drive sales effectiveness, optimize marketing programs across multiple channels and mitigate regulatory compliance risks; (ii) OneKey Reference Database that provides insights on healthcare professionals across the globe; and (iii) information solutions that use primary market research. The acquisition was financed through a combination of existing cash and net proceeds from the Company’s 4.125% senior unsecured notes issued in March 2015 (the “4.125% Senior Notes”). See Note 7 for additional information on the 4.125% Senior Notes. The Company believes that the acquisition further enhances its software development, data warehousing, mobile applications and business intelligence tools, as well as analytics and implementation services.

During the fourth quarter of 2015, the Company recorded adjustments to its preliminary purchase price allocation as well as related deferred tax effects, including reducing the amount of identifiable intangible assets by $68 million due to the finalization of underlying assumptions used to value the asset. These adjustments did not have a material impact on the Company’s Consolidated Statement of Comprehensive Income (Loss).

The following table summarizes the purchase price allocation to the estimated fair values of the assets acquired and liabilities assumed for the Cegedim acquisition.

(in millions)
Cash	$	89
Accounts receivable		127
Other current assets		23
Property, plant and equipment		16
Goodwill		183
Identifiable intangible assets		190
Other assets		44
Liabilities assumed		(227	)
Total purchase price allocation	$	445

Identifiable intangible assets and their estimated useful lives consist of the following:

(in millions)	Useful life	Amount
Client relationships	10-15 years	$	66
Databases	5 years		86
Computer software	2-10 years		26
Trade names	10-15 years		12
Total intangible assets		$	190

The fair values for the intangible assets and property, plant and equipment acquired were primarily based on significant inputs that are not observable in the market and thus represent a Level 3 measurement in the fair value hierarchy. Client relationships, trade names and technology were valued using the income approach, which estimates the fair value based on the cash flows that an asset can be expected to generate over its remaining useful life. Key assumptions included forecasted revenues, expenses and cash flows; terminal period revenue growth and cash flows; weighted average cost of capital and discount rate. The cost approach, which estimates value by determining the current cost of replacing an asset with another of equivalent economic utility, was used for databases and property, plant and equipment.

Goodwill is attributable to the value of the synergies between the acquired company and IMS Health. The Company anticipates that the majority of the value assigned to goodwill will not be deductible for tax purposes.

The Company incurred acquisition-related costs for the Cegedim acquisition of $6 million during the year ended December 31, 2015.

Pro forma information

The following pro forma information presents the financial results as if the acquisition of Cegedim had occurred on January 1, 2014, with pro forma adjustments to give effect to an increase in Selling and administrative expenses for acquisition-related costs, additional depreciation and amortization for fair value adjustments of property, plant and equipment and intangible assets, an increase in interest expense from acquisition financing, and related tax effects. The pro forma results do not include any anticipated cost synergies, costs or other effects of the planned integration of Cegedim. Accordingly, such pro forma amounts are not necessarily indicative of the results that actually would have occurred for the periods presented below had the Cegedim acquisition been completed on January 1, 2014, nor are they indicative of the future operating results of the Company.

	Years Ended December 31,
(in millions)		2015		2014
Revenues	$	3,039	$	3,230
Net income (loss)		418		(473	)
Basic earnings (loss) per share		1.26		(1.48	)
Diluted earnings (loss) per share		1.23		(1.48	)

The Company’s Consolidated Statements of Comprehensive Income (Loss) for the year ended December 31, 2015 included $346 million of revenues related to the Cegedim acquisition. The revenue reflected a reduction of $5 million for the year ended December 31, 2015 related to deferred revenue adjustments to fair value. Following the closing of the Cegedim acquisition, the Company began integrating Cegedim’s operations, and as such, computing a separate measure of Cegedim’s stand-alone profitability for periods after the acquisition date is impracticable.

Other acquisitions

In addition to the Cegedim acquisition, the Company also completed fourteen unrelated individually immaterial acquisitions during 2015, four of which occurred in the fourth quarter of 2015. These acquisitions expanded the Company’s existing capabilities in technology services offerings, and to a lesser degree, information offerings. The purchase price allocations for some of these acquisitions will be finalized after the completion of the valuation of certain intangible assets and any adjustments to the preliminary purchase price allocation are not expected to have a material impact on the Company’s results of operations. The Consolidated Financial Statements include the results of the acquisitions subsequent to closing. As these acquisitions were immaterial to the Company’s operating results both individually and in the aggregate, pro forma results of operations are not provided.

During the years ended December 31, 2014 and 2013, the Company completed five and ten, respectively, unrelated individually immaterial acquisitions to strengthen our product offerings. Had these acquisitions occurred as of January 1, 2013 and 2012, respectively, the impact on the Company’s results of operations would not have been material.

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	December 31,
(in millions)	Period	2015		2014		2013
Total cost of acquisitions, net of cash acquired(1)		$	201	$	61	$	168
Acquisition-related costs			8		3		10
Amounts recorded in the Consolidated Statements of Financial   Position:
Goodwill		$	106	$	31	$	124
Portion of goodwill deductible for tax purposes			35		21		46
Computer software	5 years		15		2		16
Intangible assets:
Client relationships	10-20 years	$	100	$	18	$	24
Covenant not to compete	1-5 years		10		12		7
Databases	1-5 years		4		5		1
Trade names	3-8 years		2		—		5
Total intangible assets		$	116	$	35	$	37

⁽¹⁾ Total cost of acquisitions includes contingent consideration and deferred purchase price payments.

Contingent Consideration

Under the terms of certain acquisition-related purchase agreements, the Company may be required to pay additional amounts as contingent consideration based on the achievement of certain financial performance related metrics, ranging from $0 to $46 million through 2018. The Company’s contingent consideration recorded on the balance sheet was approximately $28 million and $24 million at December 31, 2015 and 2014, respectively. The fair value measurement of this contingent consideration is classified within Level 3 of the fair value hierarchy (see Note 6) and reflects the Company’s own assumptions in measuring fair values using the income approach. In developing these estimates, the Company considered certain performance projections, historical results, and industry trends. The liabilities are remeasured each reporting period and changes in the fair value estimates are included in Selling and administrative expenses.

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Goodwill and Identifiable Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Identifiable Intangible Assets

Note 4. Goodwill and Identifiable Intangible Assets

The following table sets forth changes in the Company’s goodwill for the years ended December 31, 2015 and 2014.

(in millions)	Goodwill
Balance at December 31, 2013	$	3,573
Goodwill assigned in purchase price allocations (see Note 3)		31
Foreign currency translation adjustments and other		(187	)
Balance at December 31, 2014	$	3,417
Goodwill assigned in purchase price allocations (see Note 3)		289
Foreign currency translation adjustments and other		(102	)
Balance at December 31, 2015	$	3,604

Intangible assets that have finite useful lives are amortized using the straight-line method over periods ranging from two to twenty years. The gross carrying amounts, related accumulated amortization and the weighted average amortization periods of the Company’s intangible assets are listed in the following table:

	December 31, 2015							December 31, 2014
(in millions)	Gross Carrying Amount		Accumulated Amortization			Weighted Average Amortization Period (Years)		Gross Carrying Amount		Accumulated Amortization
Databases	$	738	$	(652	)		1	$	679	$	(639	)
Client relationships		2,181		(714	)		13		2,051		(592	)
Trade names (finite-lived)		151		(46	)		13		142		(38	)
Trade names (indefinite-lived)		503		—		N/A			523		—
Covenants not to compete and other		39		(22	)		2		32		(16	)
Total Intangible Assets	$	3,612	$	(1,434	)		10	$	3,427	$	(1,285	)

Intangible asset amortization expense was $180 million, $290 million and $287 million during the years ended December 31, 2015, 2014 and 2013. Based on current estimated useful lives, amortization expense associated with intangible assets at December 31, 2015 is estimated to be as follows:

	Year Ended December 31,
(in millions)	2016		2017		2018		2019		2020		Thereafter
Amortization expense	$	180	$	167	$	163	$	161	$	120	$	884

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Severance, Impairment and Other Charges

12 Months Ended

Dec. 31, 2015

Restructuring And Related Activities [Abstract]

Severance, Impairment and Other Charges

Note 5. Severance, Impairment and Other Charges

Severance

As a result of ongoing cost reduction efforts, the Company recorded severance charges consisting of global workforce reductions to streamline its organization. The following table sets forth the activity in the Company’s severance-related reserves:

(in millions)	2015 Plan(1)			2013 and 2014 Plans(2)
Balance at December 31, 2013	$	—		$	12
Charges		—			22
Cash payments		—			(16	)
Balance at December 31, 2014		—			18
Charges		76			—
Cash payments		(25	)		(14	)
Balance at December 31, 2015	$	51		$	4

⁽¹⁾ In 2015, the Company implemented a restructuring plan (the “2015 Plan”) and recorded pre-tax severance charges of $76 million, $33 million of which was recorded in the fourth quarter of 2015. The Company expects that cash outlays related to the 2015 Plan will be substantially complete by the end of 2017.

⁽²⁾ In December 2013, the Company implemented a restructuring plan (the “2013 Plan”) and recorded a pre-tax severance charge of $12 million. In 2014, the Company implemented a restructuring plan (the “2014 Plan”) and recorded pre-tax severance charges of $22 million, $3 million of which was recorded in the fourth quarter of 2014. The Company expects that cash outlays related to the 2013 and 2014 Plans will be substantially complete by the end of 2016.

Other Charges

During 2015, the Company recorded impairment charges of $12 million, of which $5 million was recorded in the fourth quarter. The charges are primarily comprised of the write-off of the value of computer software that was no longer in use for $9 million and contract-related charges for which the Company will not realize any future economic benefits for $3 million.

During 2014, the Company recorded impairment charges of $11 million, of which $8 million related to impaired leases for properties in the United States and $3 million for the write-down of certain assets and contract-related charges for which the Company will not realize any future economic benefits.

During 2013, the Company recorded impairment charges of $10 million, $7 million of which related to impaired leases for properties vacated in the United States and $3 million for contract-related charges for which the Company will not realize any future economic benefits. Of the $7 million charge for impaired leases, $3 million was recorded in the fourth quarter of 2013.

Estimated future funding requirements for the Company related to severance, impairment and other charges are $56 million in fiscal 2016 and $1 million in fiscal 2017.

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Derivatives and Fair Value

12 Months Ended

Dec. 31, 2015

Derivatives And Fair Value Disclosure [Abstract]

Derivatives and Fair Value

Note 6. Derivatives and Fair Value

Foreign Exchange Risk Management

The Company transacts business in more than 100 countries and is subject to risks associated with fluctuating foreign exchange rates. The Company’s objective is to reduce earnings and cash flow volatility associated with foreign exchange rate movements. Accordingly, the Company enters into foreign currency forward contracts to minimize the impact of foreign exchange movements on non–functional currency assets and liabilities and to hedge non-U.S. Dollar anticipated royalties (“Royalty Hedging”). Additionally, through March 2014, the Company utilized foreign currency forward contracts to minimize the impact of foreign exchange movements on earnings before interest, taxes, depreciation and amortization (“EBITDA”). These contracts were unwound by the end of 2014. It is the Company’s policy to enter into foreign currency transactions only to the extent necessary to meet its objectives as stated above. The Company does not enter into foreign currency transactions for investment or speculative purposes. The principal currencies hedged are the Euro, the Japanese Yen, the Swiss Franc and the Canadian Dollar.

The forward contracts entered into for balance sheet risk management purposes are not designated as hedges and are carried at fair value, with changes in the fair value recorded to Other income (loss), net in the Consolidated Statements of Comprehensive Income (Loss). These contracts do not subject the Company to material balance sheet risk because gains and losses on these derivatives are intended to offset gains and losses on the assets and liabilities being hedged.

The forward contracts entered into for Royalty Hedging purposes are designated as hedges and are carried at fair value, with changes in the fair value recorded to Accumulated Other Comprehensive Income (Loss) (“AOCI”). The change in fair value is reclassified from AOCI to earnings in the quarter in which the hedged royalty is paid. These contracts have various expiration dates through September 2016.

Unrealized and realized gains and losses on the contracts entered into for managing foreign exchange movement on EBITDA did not qualify for hedge accounting, and therefore were not deferred and were included in the Consolidated Statements of Comprehensive Income (Loss) in Other income (loss), net.

The following table details the components of foreign exchange gain (loss) included in Other income (loss), net on the Consolidated Statements of Comprehensive Income (Loss):

	Years Ended December 31,
(in millions)	2015		2014			2013
Translation of non-functional currency debt	$	—	$	—		$	(40	)
Revaluation of other non-functional currency assets and liabilities(1)		6		(42	)		(28	)
Effect of derivatives		14		(3	)		9
Total foreign exchange gain (loss)	$	20	$	(45	)	$	(59	)

⁽¹⁾ 2015 and 2014 included charges of $7 million and $49 million, respectively, related to a change in the exchange rate used to remeasure the Company’s Venezuelan Bolívar account balances. Additionally, 2013 included a $14 million charge resulting from devaluation of Venezuelan Bolívars. The charges are further described below in this Note.

Net Investment Risk Management

Beginning in April 2014, the Company designated its foreign currency denominated debt as a hedge of its net investment in foreign subsidiaries to reduce the volatility in shareholders’ equity caused by changes in the Euro exchange rate with respect to the U.S. Dollar. As of December 31, 2015, these borrowings (net of original issue discount) were €1,127 million ($1,231 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 would be reclassified from AOCI to earnings upon the sale or substantial liquidation of these net investments. The amount of foreign exchange gains (losses) related to the net investment hedge included in cumulative translation adjustment for the years ended December 31, 2015 and 2014 was $102 million and $142 million, respectively.  

Interest Rate Risk Management

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

In April 2014, the Company purchased U.S. Dollar denominated interest rate caps (“2014 Caps”) for a total notional value of $1 billion at strike rates ranging between 2% and 3%. These caps are effective at various times between April 2014 and April 2016, and expire at various times between April 2017 and April 2019. The total premiums paid were $21 million. The 2014 Caps are designated as cash flow hedges. Additionally, the Company had U.S. Dollar and Euro denominated interest rate caps that expired at various times through January 2015. These expired caps were not designated as cash flow hedges.

The Company also entered into U.S. Dollar and Euro denominated interest rate swap agreements in April 2014 (“2014 Swaps”) to hedge interest rate exposure on notional amounts of approximately $600 million of its borrowings. The 2014 swaps were effective between April and June 2014, and expire at various times from March 2017 through March 2021. On these agreements, the Company pays a fixed rate ranging from 1.4% to 2.1% and receives a variable rate of interest equal to the greater of three-month U.S. Dollar London Interbank Offered Rate (“LIBOR”) or three-month Euro Interbank Offered Rate (“EURIBOR”), and 1%. The 2014 Swaps are designated as cash flow hedges. The Company also entered into interest rate swap agreements in May 2010 (“2010 Swaps”) to hedge interest rate exposure on notional amounts of $375 million of its borrowings. The 2010 Swaps were effective January 2012, and expire at various times through January 2016. On these agreements, the Company pays a fixed rate ranging from 3% to 3.3% and receives a variable rate of interest equal to the three-month LIBOR. The 2010 Swaps are not designated as cash flow hedges.

The fair values of derivative instruments in the Consolidated Statements of Financial Position are as follows:

		December 31, 2015						December 31, 2014
		Fair Value of Derivative				U.S. Dollar Notional		Fair Value of Derivative				U.S. Dollar Notional
(in millions)	Balance Sheet Caption	Asset		Liability				Asset		Liability
Derivatives Designated as Hedging Instruments:
Foreign exchange contracts	Accounts receivable/ Accounts payable	$	4	$	2	$	178	$	18	$	—	$	189
Interest rate caps	Non-Current Assets		4		—		1,000		12		—		1,000
Interest rate swaps	See below(1)		—		10		517		—		12		553
Derivatives not Designated as Hedging Instruments:
Foreign exchange contracts	Accounts receivable/ Accounts payable		3		—		148		—		2		93
Interest rate swaps	See below(1)		—		1		100		—		4		225
Total Derivatives		$	11	$	13			$	30	$	18

⁽¹⁾ $1 million included in Accrued and other current liabilities and $10 million included in Other liabilities at December 31, 2015 and $1 million included in Accrued and other current liabilities and $15 million included in Other liabilities at December 31, 2014 in the Consolidated Statements of Financial Position.

For derivatives designated as hedges, the Company assesses, both at the inception of the hedge and on an ongoing basis, whether the derivatives are highly effective in offsetting changes in fair values or cash flows of hedged items. If it is determined that a derivative ceases to be highly effective as a hedge, the Company will discontinue hedge accounting with respect to that derivative prospectively. When it is probable that a hedged forecasted transaction will not occur, the Company discontinues hedge accounting for the affected portion of the forecasted transaction, and reclassifies gains or losses that were accumulated in AOCI to earnings in Other Income (loss), net for foreign exchange derivatives and interest expense for interest rate derivatives on the Consolidated Statements of Comprehensive Income (Loss). Cash flows are classified consistent with the underlying hedged item.

The effects of derivative instruments in cash flow hedging relationships on the Consolidated Statements of Comprehensive Income (Loss) are as follows:

	Effect of Derivatives on Financial Performance
(in millions)	Amount of Income/(Loss) Recognized in AOCI								Location of Income/(Loss) Reclassified from AOCI into Earnings		Amount of Income/(Loss) Reclassified from AOCI into Earnings
Years Ended December 31,	2015			2014			2013				2015		2014		2013
Foreign exchange contracts	$	7		$	23		$	13		Other income (loss), net	$	24	$	7	$	14
Interest rate derivatives		(6	)		(20	)		—		Interest expense		—		—		—

The pre-tax gain (loss) recognized in earnings on derivatives not designated as hedging instruments was as follows:

	Years Ended December 31,
(in millions)	2015			2014			2013
Foreign exchange contracts(1)	$	(10	)	$	(9	)	$	(5	)
Interest rate derivatives(2)		—			(1	)		(1	)
Total derivatives not designated as hedging instruments	$	(10	)	$	(10	)	$	(6	)

⁽¹⁾ Included in Other income (loss), net.

⁽²⁾ Included in interest expense.

Changes in the fair value of derivatives that are designated as cash flow hedges are recorded in AOCI to the extent effective and reclassified into earnings in the same period or periods during which the transaction hedged by that derivative also affects earnings. The Company expects $4 million of pre-tax unrealized losses related to its foreign exchange contracts and interest rate derivatives included in AOCI at December 31, 2015 to be reclassified into earnings within the next twelve months.

Fair Value Disclosures

The Company is subject to authoritative guidance which requires a three-level hierarchy for disclosure of fair value measurements as follows:

Level 1 —	Quoted prices in active markets for identical assets or liabilities.
Level 2 —	Quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets; and model-derived valuations in which all significant inputs are observable in active markets.
Level 3 —	Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.

The carrying values of cash, cash equivalents, restricted cash, accounts receivable and accounts payable approximated their fair values at December 31, 2015 and 2014 due to the short-term nature of these instruments. At December 31, 2015 and 2014, the fair value of total debt approximated $4,229 million and $3,799 million, respectively, as determined under Level 2 measurements based on quoted prices for these financial instruments.

Recurring measurements

The following tables summarize assets and liabilities measured at fair value on a recurring basis at the dates indicated:

	Basis of Fair Value Measurements
	December 31, 2015
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Derivatives	$	—	$	11	$	—	$	11
Total	$	—	$	11	$	—	$	11
Liabilities
Contingent consideration	$	—	$	—	$	28	$	28
Derivatives		—		13		—		13
Total	$	—	$	13	$	28	$	41

	December 31, 2014
	Level 1		Level 2		Level 3		Total
Assets
Derivatives		—		30		—		30
Total	$	—	$	30	$	—	$	30
Liabilities
Contingent consideration	$	—	$	—	$	24	$	24
Derivatives		—		18		—		18
Total	$	—	$	18	$	24	$	42

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. 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.

The following table summarizes Level 3 acquisition-related contingent consideration liabilities (see Note 3) carried at fair value on a recurring basis with the use of unobservable inputs for the period indicated.

(in millions)	Contingent Consideration Liabilities
Balance at December 31, 2013	$	65
New acquisitions		3
Cash payments		(28	)
Changes in fair value estimates and foreign currency translation adjustments		(16	)
Balance at December 31, 2014		24
New acquisitions		19
Cash payments		(2	)
Changes in fair value estimates and foreign currency translation adjustments		(13	)
Balance at December 31, 2015	$	28

During 2014, the Company paid $25 million as a final settlement for an earn-out related to a 2013 acquisition. The settlement resulted in a $9 million change in the fair value of the contingent consideration liability.

Non-recurring measurements

In 2014, the Company recorded a $7 million impairment charge for a leased facility, resulting in a fair value measurement of $9 million. The fair value was based on a third party market assessment, a Level 2 measurement. Additionally in 2014, the Company wrote off the value of computer software that was no longer in use to zero and recorded an impairment charge of $2 million. The fair value reflects an internal review of the net realizable value of the software and thus is a Level 3 measurement.

In 2013, the Company wrote-off the value of a cost method investment and an associated asset that was no longer in use to zero and recorded charges of $5 million, $3 million of which were recorded in Severance, impairment and other charges and $2 million of which were recorded in Other income (loss), net. The fair value reflects an internal review of the net realizable value of the assets and thus is a Level 3 measurement. Also, in 2013, the Company recorded an additional $3 million impairment charge for a leased facility, resulting in a fair value measurement of the liability of $9 million at December 31, 2013. The fair value was based on a third party market assessment, a Level 2 measurement.

Venezuela

In February 2013, the Venezuelan government announced the devaluation of its currency. The official exchange rate was adjusted from 4.30 Bolívars to each U.S. Dollar to 6.30. The Company’s Swiss operating subsidiary, IMS AG, maintains certain account balances in Bolívars (mainly cash and cash equivalents). As these balances are held in a non-functional currency of IMS AG, the Company is required to mark-to-market these balances at each reporting date and reflect these movements as gains or losses in income. Additionally, since January 2010, Venezuela has been designated as hyper-inflationary, and as such, all foreign currency fluctuations are recorded in income for certain account balances at the Company’s local Venezuelan operating subsidiary. The Company recorded a pre-tax charge of approximately $14 million to Other income (loss), net, in 2013 related to the remeasurement of the IMS AG Venezuelan Bolívar account balances and the remeasurement of certain local Bolívar account balances.

In 2014, the Venezuelan government significantly expanded the use of the Supplementary Foreign Currency Administration System (“SICAD”) I exchange market and created a third exchange market called SICAD II, which the Company utilized to remeasure its Venezuelan Bolívar account balances beginning on June 30, 2014. As a result of the change to the SICAD II rate from the official exchange rate, the Company recorded a pre-tax charge of $49 million to foreign exchange loss within Other income (loss), net in 2014. In February 2015, the Venezuelan government announced that the SICAD II market would no longer be available, and a new foreign exchange market system ("SIMADI") was created. SIMADI has exchange rates significantly less favorable than SICAD II. As a result of the change to the SIMADI rate, the Company recorded a pre-tax charge of $7 million to foreign exchange loss within Other income (loss), net in 2015. At December 31, 2015, the SIMADI rate was approximately 199 Bolívars to one U.S. Dollar. The net assets held and revenue generated by the Company’s Venezuelan subsidiaries were not material to the Company’s consolidated results as of December 31, 2015.

Credit Concentrations

The Company continually monitors its positions with, and the credit quality of, the financial institutions which are counterparties to its financial instruments and does not anticipate non-performance by the counterparties. In general, the Company enters into transactions only with counterparties that are large banks and financial institutions. In addition, the Company attempts to limit the amount of credit exposure with any one institution. The Company would not have realized a material loss during the year ended of December 31, 2015 in the event of non-performance by any one counterparty.

The Company maintains accounts receivable balances ($508 million and $330 million, net of allowances, at December 31, 2015 and 2014, respectively), principally from clients in the pharmaceutical industry. The Company’s trade receivables do not represent significant concentrations of credit risk at December 31, 2015 due to the credit worthiness of its clients and their dispersion across many geographic areas.

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Debt

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Debt

Note 7. Debt

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

	December 31,
(in millions)	2015			2014
Senior Secured Credit Facilities:
Senior Secured Term A Loan due 2019—USD LIBOR at average floating rates of 2.86%	$	484		$	307
Senior Secured Term A Loan due 2019—EUR LIBOR at average floating rates of 2.25%		135			158
Senior Secured Term B Loan due 2021—USD LIBOR at average floating rates of 3.50%		1,717			1,735
Senior Secured Term B Loan due 2021—EUR LIBOR at average floating rates of 3.75%		802			901
Revolving Credit Facility due 2019:
U.S. Dollar denominated borrowings—USD LIBOR at average floating rates of 2.79%		328			215
4.125% Senior Notes due 2023 - Euro denominated		300			—
6.00% Senior Notes due 2020  - U.S. Dollar denominated		500			500
Principal Amount of Debt		4,266			3,816
Less: Debt Issuance Costs and Unamortized Discounts		(71	)		(77	)
Total Debt	$	4,195		$	3,739

Scheduled principal payments due on the Company’s debt as of December 31, 2015 were as follows:

	Year Ended December 31,
(in millions)	2016		2017		2018		2019		2020		Thereafter		Total
Debt	$	59	$	72	$	88	$	830	$	526	$	2,691	$	4,266

Senior Secured Credit Facilities

In May 2015, IMS Health Incorporated (“IMS Health”), an indirect wholly-owned subsidiary of the Company, entered into an amendment (the “2015 Amendment”) to the Third Amended and Restated Credit and Guaranty Agreement, dated as of March 17, 2014, among IMS Health, IMS AG and IMS Japan K.K., as co-borrowers, Healthcare Technology Intermediate Holdings, Inc., Bank of America, N.A. and the other lenders party thereto (as amended by the 2015 Amendment, the “Credit Agreement” and, together with the related security and other documents for the senior secured term loan facilities and the senior secured revolving facility, the “Senior Secured Credit Facilities”). The 2015 Amendment increased outstanding commitments under the Company’s existing Term A loans by $200 million. The proceeds from the additional term loans were used to fund a portion of the Company’s repurchase of its common shares in May 2015. See Note 9 for further information on the share repurchase. As a result of the 2015 Amendment, the Company incurred $2 million of fees, which are being amortized to interest expense.

In March 2014, IMS Health and certain of its subsidiaries, as co-borrowers, entered into an amendment (the “2014 Amendment”) to the Second Amended and Restated Credit and Guaranty Agreement, dated as of October 24, 2012. The 2014 Amendment added commitments in respect of new Term A loans (the “New Term Loans”) in the aggregate dollar equivalent amount of $500 million, increased outstanding commitments under the revolving credit facility to $500 million, modified certain interest rates and covenants and made additional modifications to the then outstanding senior secured credit facilities. The New Term Loans were funded in April 2014 concurrent with the Company’s IPO. See Note 1 for further information on the IPO. The New Term Loans and revolving credit facility mature in March 2019, while the Term B loans mature in March 2021. As a result of the 2014 Amendment, the Company recorded $11 million of debt extinguishment losses and $2 million of fees in Other income (loss), net during the year ended December 31, 2014.

In February 2013, IMS Health and certain of its subsidiaries entered into an amendment of the then existing senior secured term loans due 2017 (“Term Loan Amendment”) to reduce its borrowing costs. IMS Health reduced the borrowing margins and LIBOR floors by 50 basis points and 25 basis points, respectively, for both the USD and EUR tranches of debt. As a result of the Term Loan Amendment, the Company recorded $9 million of debt extinguishment losses and $3 million of fees in Other income (loss), net during the year ended December 31, 2013.

IMS Health is required to make scheduled quarterly payments on the Term A loans at rates that vary from 1.25% to 2.50% of the original principal amount of the term loans, with the remaining balance paid at maturity. Additionally IMS Health is required to make scheduled quarterly payments on the Term B loans equal to approximately 0.25% of the original principal amount of the term loans, with the remaining balance paid at maturity. IMS Health is also required to pay an annual commitment fee that ranges from 0.30% to 0.40% in respect of any unused commitments under the revolving credit facility.

At December 31, 2015, IMS Health, IMS AG and IMS Japan K.K., as co-borrowers, had an aggregate $500 million revolving credit facility, of which $172 million was unused. The Senior Secured Credit Facilities are secured by a security interest in substantially all of Healthcare Technology Intermediate Holdings, Inc.’s, IMS Health’s and the U.S. subsidiary guarantors’ tangible and intangible assets, including the stock of IMS Health and certain of IMS Health’s U.S. restricted subsidiaries and a portion of the stock of IMS Health’s non-U.S. restricted subsidiaries directly owned by Healthcare Technology Intermediate Holdings, Inc., IMS Health or a U.S. subsidiary guarantor. In addition, the obligations of IMS AG are guaranteed by certain of its Swiss restricted subsidiaries and are secured by certain assets of IMS AG and the Swiss guarantors, including the stock of the Swiss guarantors. The obligations of IMS Japan K.K. are secured by certain of its assets. There have been no borrowings by IMS Japan K.K. to date.

Senior Notes

In anticipation of the Cegedim acquisition, IMS Health issued €275 million aggregate principal amount of 4.125% senior unsecured notes due in April 2023 on March 30, 2015. The proceeds, along with cash on hand, were used on April 1, 2015 to fund the Cegedim acquisition and pay fees and expenses of $5 million in connection with the debt offering. See Note 3 for more information on the Cegedim acquisition. Interest on the 4.125% Senior Notes is payable semi-annually each year and commenced on October 1, 2015. The 4.125% Senior Notes are guaranteed on a senior unsecured basis by IMS Health’s wholly-owned domestic subsidiaries that are guarantors under the Senior Secured Credit Facilities. The Company may redeem the 4.125% Senior Notes, in whole or in part, at any time prior to April 1, 2018 at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of redemption, plus a “make-whole” premium. On or after April 1, 2018, the Company may redeem all or a portion of the 4.125% Senior Notes at predetermined redemption prices set forth in the indenture governing the 4.125% Senior Notes plus accrued and unpaid interest to the date of redemption.

In addition to the 4.125% Senior Notes, IMS Health has outstanding $500 million aggregate principal amount of 6% Senior Notes due in November 2020 (the “6% Senior Notes”). Interest is payable semi-annually each year. The 6% Senior Notes are guaranteed on a senior unsecured basis by IMS Health’s wholly-owned domestic subsidiaries that are guarantors under the Senior Secured Credit Facilities. The Company may redeem all or a portion of the 6% Senior Notes at predetermined redemption prices set forth in the indenture governing the 6% Senior Notes plus accrued and unpaid interest to the date of redemption.

Other

In connection with the Company’s IPO in April 2014, the Company redeemed its 12.5% senior notes and senior PIK notes and incurred a loss on extinguishment of debt of $219 million in 2014, consisting of a $151 million in aggregate payments for make-whole premiums related to such redemptions and $68 million write-off of debt issuance costs and discounts.

The Senior Secured Credit Facilities and the indentures for the 4.125% Senior Notes and 6% Senior Notes 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 New Term Loans, other actions permitted to be taken by a secured creditor. At December 31, 2015, the Company was in compliance with the financial covenants under the Company’s financing arrangements.

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Pension and Postretirement Benefits

12 Months Ended

Dec. 31, 2015

Compensation And Retirement Disclosure [Abstract]

Pension and Postretirement Benefits

Note 8. Pension and Postretirement Benefits

The Company sponsors both funded and unfunded defined benefit pension plans. These plans provide benefits based on various criteria, including, but not limited to, years of service and salary. The Company also sponsors an unfunded postretirement benefit plan in the U.S. that provides health and prescription drug benefits to retirees who meet the eligibility requirements. The Company uses a December 31 measurement date for all pension and postretirement benefit plans. The U.K. Defined Benefit Plan closed to future accrual at June 30, 2011.

The following tables summarize changes in the benefit obligation, the plan assets and the funded status of the Company’s pension and postretirement benefit plans as well as the components of net periodic benefit costs, including key assumptions.

	Pension Benefits
	U.S. Plans						Non-U.S. Plans
	Years Ended December 31,
(in millions)	2015			2014			2015			2014
Obligation and Funded Status:
Change in benefit obligation
Benefit obligation at beginning of year	$	291		$	249		$	305		$	247
Service cost		12			10			8			6
Interest cost		11			12			10			11
Foreign currency exchange adjustment		—			—			(14	)		(17	)
Actuarial loss (gain)		(22	)		28			(3	)		29
Benefits paid		(8	)		(8	)		(11	)		(9	)
Settlements and other		—			—			(1	)		(3	)
Acquisition(1)		—			—			24			—
Plan adoption(2)		—			—			—			41
Benefit obligation at end of year	$	284		$	291		$	318		$	305
Change in plan assets
Fair value of plan assets at beginning of year	$	295		$	274		$	283		$	234
Actual return on assets		(2	)		26			8			33
Foreign currency exchange adjustment		—			—			(12	)		(15	)
Employer contributions		4			3			7			14
Benefits paid		(8	)		(8	)		(11	)		(9	)
Settlements and other		—			—			—			(3	)
Acquisition(1)		—			—			2			—
Plan adoption(2)		—			—			—			29
Fair value of plan assets at end of year	$	289		$	295		$	277		$	283
Funded status	$	5		$	4		$	(41	)	$	(22	)
Amounts recognized in the Consolidated Statements of Financial Position:
Other assets	$	46		$	48		$	7		$	8
Accrued and other current liabilities		(2	)		(2	)		(2	)		(1	)
Postretirement and postemployment benefits liability		(39	)		(42	)		(46	)		(29	)
Net amount recognized	$	5		$	4		$	(41	)	$	(22	)
Accumulated benefit obligation	$	281		$	287		$	305		$	298

⁽¹⁾ Represents defined benefit plans acquired in the Cegedim acquisition.

⁽²⁾ Represents the conversion of a non-U.S. plan from a defined contribution plan to a defined benefit plan as of December 31, 2014.

	Other Benefits
	Years Ended December 31,
(in millions)	2015			2014
Obligation and Funded Status:
Change in benefit obligation
Benefit obligation at beginning of year	$	5		$	6
Actuarial loss (gain)		1			(1	)
Benefits paid (net of Medicare subsidy)		(1	)		—
Benefit obligation at end of year	$	5		$	5
Change in plan assets
Fair value of plan assets at beginning of year	$	—		$	—
Employer contributions		1			—
Benefits paid (net of Medicare subsidy)		(1	)		—
Fair value of plan assets at end of year	$	—		$	—
Funded status	$	(5	)	$	(5	)
Amounts recognized in the Consolidated Statements of Financial Position:
Accrued and other current liabilities	$	(1	)	$	(1	)
Postretirement and postemployment benefits liability		(4	)		(4	)
Net amount recognized	$	(5	)	$	(5	)

The following table provides the information for pension plans with an accumulated benefit obligation in excess of plan assets and projected benefit obligations in excess of plan assets.

	Pension Benefits
	U.S. Plans				Non-U.S. Plans
	Years Ended December 31,
(in millions)	2015		2014		2015		2014
Plans with accumulated benefit obligation in excess of plan assets:
Projected benefit obligation	$	43	$	46	$	86	$	62
Accumulated benefit obligation		42		45		75		54
Fair value of plan assets		2		1		38		35
Plans with projected benefit obligation in excess of plan assets:
Projected benefit obligation	$	43	$	46	$	86	$	63
Fair value of plan assets		2		1		38		37

The amounts recognized in AOCI for pension and other benefits at December 31 consisted of:

	Pension Benefits								Other Benefits
(in millions)	U.S. Plans				Non-U.S. Plans
	2015		2014		2015		2014		2015			2014
Net actuarial loss	$	13	$	12	$	37	$	38	$	1		$	1
Unrecognized initial obligation		—		—		—		13		—			—
Prior service cost (credit)		—		—		10		—		(3	)		(4	)
Total		13		12		47		51		(2	)		(3	)

The components of net periodic benefit cost and other changes in plan assets and benefit obligations recognized in Other Comprehensive Income (Loss) were as follows:

	Pension Benefits – U.S. Plans									Pension Benefits – Non-U.S. Plans
	Years Ended December 31,
(in millions)	2015			2014			2013			2015			2014			2013
Service cost	$	12		$	10		$	10		$	8		$	6		$	5
Interest cost		11			12			9			10			11			9
Expected return on plan assets		(22	)		(20	)		(18	)		(13	)		(13	)		(10	)
Amortization of prior service cost (credit)		—			—			—			1			—			—
Amortization of loss		1			—			1			1			1			—
Net periodic benefit cost	$	2		$	2		$	2		$	7		$	5		$	4
Other changes in plan assets and benefit obligations recognized in other comprehensive loss:
Actuarial loss (gain) – current years	$	2		$	22		$	(41	)	$	2		$	8		$	8
Prior service (cost) credit – current years		—			—			—			(1	)		—			—
Transition obligation		—			—			—			—			13			—
Amortization of prior service (cost) credit		—			—			—			(1	)		—			—
Amortization of actuarial loss		(1	)		—			(1	)		(1	)		(1	)		—
Total recognized in other comprehensive loss	$	1		$	22		$	(42	)	$	(1	)	$	20		$	8
Total recognized in net periodic benefit cost and other comprehensive loss	$	3		$	24		$	(40	)	$	6		$	25		$	12

	Other Benefits
	Years Ended December 31,
(in millions)	2015			2014			2013
Amortization of prior service cost (credit)	$	(1	)	$	(1	)	$	—
Net periodic benefit cost	$	(1	)	$	(1	)	$	—
Other changes in plan assets and benefit obligations recognized in other comprehensive loss:
Actuarial loss (gain) – current years	$	—		$	—		$	(1	)
Prior service (cost) credit – current years		—			—			(5	)
Amortization of prior service (cost) credit		1			1			—
Total recognized in other comprehensive loss	$	1		$	1		$	(6	)
Total recognized in net periodic benefit cost and other comprehensive loss	$	—		$	—		$	(6	)

The amounts in AOCI that are expected to be recognized as components of net periodic benefit cost (credit) during 2016 are as follows:

	Pension Benefits
(in millions)	U.S. Plans		Non-U.S. Plans				Other Benefits	Total
Net actuarial loss	$	—	$	(1	)	$	—	$	(1	)
Prior service credit		—		—			1		1
Total	$	—	$	(1	)	$	1	$	—

Assumptions

	Pension Benefits												Other Benefits
Weighted Average Assumptions Used to Determine Benefit Obligations at December 31,	U.S. Plans						Non-U.S. Plans
	2015			2014			2015			2014			2015			2014
Discount rate		4.48	%		3.87	%		3.16	%		3.30	%		3.00	%		2.60	%
Rate of compensation increase		3.00	%		3.00	%		2.40	%		1.94	%		N/A			N/A

	Pension Benefits																		Other Benefits
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for the Years Ended December 31,	U.S. Plans									Non-U.S. Plans
	2015			2014			2013			2015			2014			2013			2015			2014			2013
Discount rate		3.87	%		4.66	%		3.80	%		3.30	%		4.37	%		4.44	%		2.60	%		2.90	%		3.80	%
Expected long-term return on plan assets		7.96	%		7.97	%		8.00	%		5.02	%		5.39	%		6.30	%		N/A			N/A			N/A
Rate of compensation increase		3.00	%		3.00	%		3.00	%		1.94	%		1.98	%		1.85	%		N/A			N/A			N/A

	At December 31,
Assumed Health Care Cost Trend Rates	2015			2014			2013
Health care cost trend rate assumed for next year		7.50	%		7.50	%		7.50	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		5.0	%		5.0	%		5.0	%
Year that the rate reaches the ultimate trend rate		2021			2019			2019

Assumed health care cost trend rates could have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates at December 31, 2015 would have had less than a $1 million effect on the total of service and interest cost and on the accumulated postretirement benefit obligation.

Plan Assets

The Company’s pension plan weighted average asset allocations at December 31, 2015 and 2014, by asset category, follows:

	Plan Assets at December 31,
Asset Category	U.S. Plans						Non-U.S. Plans						Total
	2015			2014			2015			2014			2015			2014
Equity securities		70	%		70	%		35	%		35	%		53	%		53	%
Debt securities		25			25			42			43			33			34
Real estate		5			5			9			8			7			6
Other		—			—			14			14			7			7
Total		100	%		100	%		100	%		100	%		100	%		100	%

The target asset allocation for the Company’s pension plans is as follows:

Asset Category	U.S. Plans			Non-U.S. Plans			Total
Equity securities		60-80	%		30-45	%		45-65	%
Debt securities		20-30			35-50			30-40
Real estate		0-10			0-10			0-10
Other		—			10-20			0-10

The following tables summarize plan assets measured at fair value on the dates indicated:

	Fair Value Measurements
	December 31, 2015
(in millions)	Level 1		Level 2		Level 3		Total
Asset Category – U.S. Plans
Investment Funds
Domestic equities(1)	$	27	$	132	$	—	$	159
International equities(2)		18		27		—		45
Debt issued by national, state or local government(3)		—		12		—		12
Corporate bonds(4)		42		16		—		58
Real estate(5)		15		—		—		15
Total assets	$	102	$	187	$	—	$	289

	December 31, 2015
(in millions)	Level 1		Level 2		Level 3		Total
Asset Category – Non-U.S. Plans
Investment Funds
International equities(2)	$	—	$	97	$	—	$	97
Debt issued by national, state or local government(3)		2		69		—		71
Corporate bonds(4)		—		46		—		46
Real estate(5)		—		—		24		24
Investment funds(6)		—		7		—		7
Insurance contracts(7)		—		32		—		32
Total assets	$	2	$	251	$	24	$	277

	Fair Value Measurements
	December 31, 2014
(in millions)	Level 1		Level 2		Level 3		Total
Asset Category – U.S. Plans
Investment Funds
Domestic equities(1)	$	28	$	133	$	—	$	161
International equities(2)		18		27		—		45
Debt issued by national, state or local government(3)		—		13		—		13
Corporate bonds(4)		44		17		—		61
Real estate(5)		15		—		—		15
Total assets	$	105	$	190	$	—	$	295

	December 31, 2014
(in millions)	Level 1		Level 2		Level 3		Total
Asset Category – Non-U.S. Plans
Investment Funds
International equities(2)	$	—	$	100	$	—	$	100
Debt issued by national, state or local government(3)		2		76		—		78
Corporate bonds(4)		—		48		—		48
Real estate(5)		—		—		22		22
Investment funds(6)		—		6		—		6
Insurance contracts(7)		—		29		—		29
Total assets	$	2	$	259	$	22	$	283

⁽¹⁾ Comprises actively managed mutual funds, passively managed collective trusts and pooled funds investing primarily in companies with market capitalizations similar to that of the S&P 500, S&P Small Cap 600, Russell 1000 and Russell 2000 indexes. The collective trusts do not participate in securities lending.

⁽²⁾ Comprises actively managed mutual funds, passively managed collective trust fund and pooled funds investing primarily in companies in non-U.S. countries and non-U.S. developed market countries similar to that of the Morgan Stanley Capital International EAFE index. The collective trust does not participate in securities lending.

⁽³⁾ Comprises passively managed pooled funds primarily invested in debt instruments from non-U.S. national state or local Governments.

⁽⁴⁾ Comprises actively managed mutual funds, passively managed collective trust fund and pooled funds investing primarily in a diversified portfolio of investment grade U.S. and non-U.S. fixed income securities. The collective trust does not participate in securities lending.

⁽⁵⁾ Comprises an actively managed mutual fund and an actively managed pooled fund which primarily invests in real estate, including but not limited to offices, retail warehouses and shopping centers.

⁽⁶⁾ Comprises an actively managed investment fund which primarily invests in term deposit instruments offering a guaranteed investment return.

⁽⁷⁾ Assets are invested in a collective foundation through an insurance company which guarantees a minimum investment return.

Investments in mutual funds are valued at quoted market prices. Investments in common/collective trusts and pooled funds are valued at the net asset value (“NAV”) as reported by the trust. The NAV is based on the fair value of the underlying investments held by the fund less its liabilities. Insurance contracts are valued at the amount of the benefit liability. Level 3 real estate assets, which consist of an international property fund, directly invests in properties that rely on unobservable inputs to measure the fair value.

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in millions)	2015(1)			2014(1)
Beginning balance	$	22		$	20
Actual return on plan assets – assets held at end of year		3			3
Purchases, sales and settlements		(1	)		(1	)
Ending balance	$	24		$	22

⁽¹⁾ All amounts relate to property.

Investment Policies and Strategies

The Company invests primarily in a diversified portfolio of equity and debt securities that provide for long-term growth within reasonable and prudent levels of risk. The asset allocation targets established by the Company are strategic and applicable to the Plan’s long-term investing horizon. The portfolio is constructed and maintained to provide adequate liquidity to meet associated liabilities and minimize long-term expense and provide prudent diversification among asset classes in accordance with the principles of modern portfolio theory. The plan employs a diversified mix of actively managed investments around a core of passively managed index exposures in each asset class. Within each asset class, rapid market shifts, changes in economic conditions or an individual fund manager’s outlook may cause the asset allocation to fall outside the prescribed targets. The majority of the Company’s plan assets are measured quarterly against benchmarks established by the Company’s investment advisors and the Company’s Asset Management Committee, who reviews actual plan performance and has the authority to recommend changes as deemed appropriate. Assets are rebalanced periodically to their strategic targets to maintain the Plan’s strategic risk/reward characteristics. The Company periodically conducts asset liability modeling studies to ensure that the investment strategy is aligned with the obligations of the plans and that the assets will generate income and capital growth to meet the cost of current and future benefits that the plans provide. The pension plans do not include investments in Company stock at December 31, 2015 or 2014.

The portfolio for the Company’s U.K. Pension plan seeks to invest in a range of suitable assets of appropriate liquidity which will generate in the most effective manner possible, income and capital growth to ensure that there are sufficient assets to meet benefit payments when they fall due, while controlling the long-term costs of the plan and avoiding short-term volatility of investment returns. The plan seeks to achieve these objectives by investing in a mixture of real (equities) and monetary (fixed interest) assets. It recognizes that the returns on real assets, while expected to be greater over the long-term than those on monetary assets, are likely to be more volatile. A mixture across asset classes should nevertheless provide the level of returns required by the Plan. The trustee periodically conducts asset liability modeling exercises to ensure the investments are aligned with the appropriate benchmark to better reflect the Plan’s liabilities. The trustee also undertakes to review this benchmark on a regular basis.

Cash Flows

Contributions.   The Company expects to contribute $9 million in required contributions to its pension and postretirement benefit plans during fiscal 2016. The Company may make additional contributions into its pension plans in fiscal 2016 depending on, among other factors, how the funded status of those plans changes and in order to meet minimum funding requirements as set forth in employee benefit and tax laws, plus additional amounts the Company may deem to be appropriate.

Estimated future benefit payments and subsidy receipts.  The following benefit payments (net of expected participant contributions) are expected to be paid as follows:

	Year Ended December 31,
(in millions)	2016		2017		2018		2019		2020		2021-2025
Pension benefits	$	19	$	19	$	20	$	22	$	23	$	144
Other benefits		1		1		1		1		1		1

Other Plans

Plans accounted for as deferred compensation contracts.  The Company provides certain executives with supplemental pension benefits in accordance with their individual employment arrangements. The tables above in this Note do not include the Company’s expense or obligation associated with providing these benefits.

Plans accounted for as postretirement benefits.  The Company provides certain executives with postretirement medical, dental and life insurance benefits. These benefits are individually negotiated arrangements in accordance with their individual employment arrangements. The tables above in this Note do not include the Company’s expense or obligation associated with providing these benefits.

Information related to these unfunded plans is as follows:

	Obligation				(Income) Expense							Discount Rate used to Measure Obligation
	December 31,				Years Ended December 31,							December 31,
(in millions)	2015		2014		2015		2014			2013		2015			2014
Deferred compensation plan	$	1	$	1	$	—	$	—		$	—		4.2	%		3.9	%
Postretirement benefits plan		11		9		1		(1	)		2		4.4	%		3.9	%

Defined contribution plans.  Certain employees of the Company in the U.S. are eligible to participate in the Company-sponsored defined contribution plan. The Company makes a matching contribution of up to 50% of the employee’s contribution based on specified limits of the employee’s salary. The Company’s expense related to this plan was approximately $8 million, $7 million and $6 million for the years ended 2015, 2014 and 2013, respectively.

Certain key executives of the Company participate in an unfunded defined contribution executive retirement plan that was frozen to additional accruals for future service contributions in 2012. Participants continue to receive an annual investment credit based on the average of the annual yields at the end of each month on the AA-AAA rated 10+ year maturity component of the Merrill Lynch U.S. Corporate Bond Master Index. The Company’s expense related to this plan was de minimis for the years ended December 31, 2015 and 2014 and approximately $1 million for the year ended 2013.

There are additional Company-sponsored defined contribution arrangements for employees of the Company residing in countries other than the U.S. The Company is required to make contributions based on the specific requirements of the plans. The Company’s expense related to these plans was approximately $9 million, $8 million and $8 million for the years ended 2015, 2014 and 2013, respectively.

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Shareholders' Equity

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Shareholders' Equity

Note 9. Shareholders’ Equity

The Company amended its Certificate of Incorporation in April 2014, in connection with the closing of the IPO. The Amended and Restated Certificate of Incorporation authorizes the Board of Directors, at its discretion, to issue up to 50 million shares of preferred stock with a par value of $0.01 per share. The preferred stock is issuable in series, which may vary as to certain rights and preferences. As of December 31, 2015, no preferred shares have been issued. The Amended and Restated Certificate of Incorporation also set the number of authorized common shares at 700 million shares.

Share Repurchase

On December 16, 2015, the Company’s board of directors approved a $250 million common stock repurchase authorization. The Company’s share repurchase authorization allows the Company to buy opportunistically, when the Company believes that the share price provides the Company with an attractive use of cash flow and debt capacity. Through December 31, 2015, the Company purchased 670 thousand shares of its common stock having an aggregate value of approximately $17 million at an average price of $25.70 per share. The share repurchase was funded through a combination of cash and borrowings under the Company’s revolving credit facility. The repurchase authorization does not have a specified expiration date but can be modified, suspended or discontinued at any time.

On May 3, 2015, the Company’s board of directors approved a $300 million common stock repurchase authorization. In connection with that authorization, on May 12, 2015, the Company purchased 11.1 million shares of its common stock from the underwriters in the May Secondary Offering (as defined below) having an aggregate value of approximately $300 million at $27.0875 per share, equal to the midpoint between the public offering price and the price paid by the underwriters to the Selling Stockholders for the shares sold in the May 2015 Secondary Offering. To fund the share repurchase, the Company entered into the 2015 Amendment to the Credit Agreement that provided the Company with $200 million in additional term loan borrowings and utilized borrowings from its revolving credit facility and available cash. See Note 7 for additional information on the 2015 Amendment.

Secondary Offerings

In August 2015, existing shareholders of the Company (collectively, the “Selling Stockholders”) completed the sale of 20 million shares of the Company’s common stock to underwriters at a price of $31.17 per share (the “August Secondary Offering”). In May 2015, the Selling Stockholders completed the sale of 57.97 million shares of the Company’s common stock at a public offering price of $27.50 per share, including 6.87 million shares that were offered and sold by the Selling Stockholders pursuant to the full exercise of the underwriter’s option to purchase additional shares (the “May Secondary Offering” and, together with the August Secondary Offering, the “Secondary Offerings”). The Company did not sell any stock in, or receive any proceeds from, the Secondary Offerings. The Company incurred $1 million of expenses in 2015 related to the Secondary Offerings, which were included in Selling and administrative expenses.

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Stock-Based Compensation

12 Months Ended

Dec. 31, 2015

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

Note 10. Stock-Based Compensation

In March 2014, the Company’s board of directors adopted the IMS Health Holdings, Inc. 2014 Incentive and Stock Award Plan (the “2014 Equity Plan”). Both annual award opportunities and equity-based awards for certain key employees, including the Company’s named executive officers, non-employee directors, consultants and other persons who provide substantial services to the Company, are granted under the 2014 Equity Plan. Prior to the adoption of the 2014 Equity Plan, the Company authorized equity awards under the 2010 Equity Plan. At December 31, 2015, there were 41.2 million shares reserved for issuance under the Company’s 2014 Equity Plan, of which 26.1 million shares are available for future grants.

Beginning in 2015, the Company’s long-term incentive awards were comprised of stock settled stock appreciation rights (“SARs”) and performance shares, both of which were granted under the 2014 Equity Plan. Unless previously terminated or forfeited, the SARs are eligible to vest in equal increments of 25% on each of the first four anniversaries of the date of grant. The exercise price of the SARs is equal to the closing market price of the Company’s common stock as of the grant date and expire on the tenth anniversary of the date of grant. Performance shares are eligible to vest at the end of a three-year period based on achievement of challenging goals related to compound annual adjusted earnings per share (“Adjusted EPS”) and relative total shareholder return (“TSR”). The number of performance shares that may be earned ranges from 50% of the target award if the threshold levels of performance are achieved to 200% of the target if the maximum levels are achieved or exceeded. Each earned and vested performance share will be settled by delivery of one share of the Company’s common stock. Recipients of performance shares have no voting rights and are not eligible to receive dividends equivalents during the performance period. Performance shares are forfeited upon termination of employment prior to the end of the performance period.

Prior to 2015, the Company granted service-based and performance-based stock options. Unless previously terminated or forfeited, the service-based options vest in equal increments of 20% on each of the first five anniversaries of the date of grant and the performance-based options vest in equal increments of 20% on each of the first five anniversaries of the date of grant if the Annual or Cumulative EBITDA Target, as defined by the 2010 Equity Plan, with respect to the fiscal year to which the performance-based options are aligned, is achieved. The service-based and performance-based awards both have an exercise price equivalent to the fair market value on the date of grant and expire on the tenth anniversary of the date of grant. In connection with the IPO, the outstanding stock options that had been granted to the board of directors prior to 2014 became fully vested.

Additionally, the Company granted service-based restricted stock and restricted stock units (“RSUs”) to employees and directors who were not employees of the Company and not affiliated with the Company’s Sponsors with a fair value equal to the closing market price of the Company’s common stock on the date of grant. The restricted stock granted in 2015 and the RSUs granted to employees in 2014 vest in equal increments of 50% on each of the second and fourth anniversaries of the grant date. The restricted stock was granted under the 2014 Equity Plan and the RSUs were granted under the 2010 Equity Plan. The RSUs granted to non-employee directors in 2015 were granted under the 2014 Equity Plan and became fully vested in 2015.

The Company granted premium priced service-based options (“Premium Priced Options”) in 2010, which became fully vested in 2015. The awards have an exercise price equal to 150% of the fair market value on the date of grant and expire on the tenth anniversary of the date of grant. At December 31, 2015, 1.2 million shares are exercisable.

In August 2013, the board of directors of the Company declared a cash dividend of $2.60 per share. In accordance with the terms of the 2010 Equity Plan, option holders received $2.60 per share in respect of vested options and a corresponding $2.60 per share reduction in the exercise price of unvested options. The other terms of the equity awards, including vesting schedules, remained unchanged. The Company did not record a charge for modification of the exercise price for unvested awards as the modification was provided for by the terms of the 2010 Equity Plan.

The fair value of stock options and SARs is estimated using the Black-Scholes option-pricing model. For service-based options and SARs, the Company values the grants and recognizes compensation expense on a straight-line basis over the requisite service period of the award. For options and SARs with graded vesting, the Company values the grants and recognizes compensation expense as if each vesting portion of the award was part of the total award and not a separate award. For performance-based awards, stock-based compensation expense is adjusted over time based on the Company’s assessment of the probability of achieving the financial targets. The value of the portion of the award that is ultimately expected to vest is recognized as expense either on a straight-line basis over the requisite service period of the award for restricted stock and RSUs or on a graded vesting basis for performance shares. The fair value of restricted stock and RSUs was based on the closing market price of the Company’s common stock on the date of grant. The fair value of the performance shares is determined separately for the portion of the award based on Adjusted EPS and the portion of the award based on TSR. The fair value of the Adjusted EPS portion of the award is equal to the closing market price of the Company’s common stock on the grant date. The fair value of the TSR portion of the award is determined based on a Monte Carlo simulation model.

These models require the input of subjective assumptions that will usually have a significant impact on the fair value estimate. The following table summarizes the weighted average assumptions used to measure fair value:

	2015			2014			2013
Dividend yield(1)		0.0	%		0.0	%		0.0	%
Weighted average volatility(2)		33.9	%		26.4	%		26.7	%
Risk free interest rate(3)		1.70	%		1.68	%		1.19	%
Expected term(4)	6.50 years			5.50 years			5.50 years
Weighted average fair value of options granted	$	9.34		$	5.44		$	4.89

⁽¹⁾ The dividend yield of 0.0% is used because no recurring dividends have been authorized and the Company does not expect to pay cash dividends in the foreseeable future. An increase in the dividend yield will decrease stock compensation expense.

⁽²⁾  The weighted average volatility was developed using the historical volatility of several peer companies to IMS Health Holdings, Inc. for periods equal to the expected life of the grant. An increase in the weighted average volatility assumption will increase stock compensation expense.

⁽³⁾  The risk-free interest rate was developed using the U.S. Treasury yield curve for periods equal to the expected life of the options and SARs on the grant date. An increase in the risk-free interest rate will increase stock compensation expense.

⁽⁴⁾ The expected term was estimated for the 2015 grant of SARs based on the awards’ vesting period and contractual term. An increase in the expected holding period will increase stock compensation expense.

The following table summarizes the components and classification of stock-based compensation expense for the periods indicated:

	Years Ended December 31,
(in millions)	2015		2014		2013
Stock options and SARs	$	13	$	51	$	21
Performance shares		5		—		—
Restricted stock and RSUs		7		7		1
Total stock-based compensation expense	$	25	$	58	$	22
Operating costs of information, exclusive of depreciation and amortization	$	2	$	6	$	3
Direct and incremental costs of technology services, exclusive of depreciation and amortization		2		5		2
Selling and administrative expenses, exclusive of depreciation and amortization		21		47		17
Total stock-based compensation expense	$	25	$	58	$	22
Tax benefit on stock-based compensation expense	$	8	$	19	$	7

The tax benefit realized on stock options and SARs exercised for the years ended December 31, 2015, 2014 and 2013 was $11 million, $2 million and $—, respectively.

Stock Options and Stock Appreciation Rights

The following table summarizes activity of stock options with service conditions for the periods indicated:

(in millions)	Shares			Weighted Average Exercise Price		Weighted Average Remaining Term (Years)		Aggregate Intrinsic Value
Options outstanding, December 31, 2014		10.2		$	7.97		5.87	$	180
Exercises		(3.2	)		5.24
Forfeitures		(0.1	)		9.95
Options outstanding, December 31, 2015		6.9			9.19		5.06	$	138
Options vested or expected to vest, December 31, 2015		6.8		$	9.17		5.02	$	136
Options exercisable, December 31, 2015		3.7			10.73		4.83		80

As of December 31, 2015, approximately $2 million of unrecognized stock compensation expense related to unvested service-based stock options (net of estimated forfeitures) is expected to be recognized over a weighted-average period of approximately one year.

The following table summarizes activity of stock options with performance conditions for the periods indicated:

(in millions)	Shares			Weighted Average Exercise Price		Weighted Average Remaining Term (Years)		Aggregate Intrinsic Value
Options outstanding, December 31, 2014		5.3		$	6.69		5.95	$	101
Exercises		(1.7	)		5.76
Forfeitures		(0.1	)		9.81
Options outstanding, December 31, 2015		3.5			7.07		5.13	$	72
Options vested or expected to vest, December 31, 2015		3.4		$	8.21		5.08	$	71
Options exercisable, December 31, 2015		1.8			8.43		4.87		38

As of December 31, 2015, approximately $2 million of unrecognized stock compensation expense related to unvested performance-based stock options (net of estimated forfeitures) is expected to be recognized over a weighted-average period of approximately one year.

The following table summarizes activity of SARs for the periods indicated:

(in millions)	Shares			Weighted Average Exercise Price		Weighted Average Remaining Term (Years)		Aggregate Intrinsic Value
SARs outstanding, December 31, 2014		0.5		$	2.50		1.30	$	13
Granted		1.7			25.14
Exercises		(0.4	)		2.50
Forfeitures		(0.2	)		25.08
SARs outstanding, December 31, 2015		1.6			22.72		5.50	$	5
SARs vested or expected to vest, December 31, 2015		1.6		$	22.72		5.50	$	5
SARs exercisable, December 31, 2015		0.2			2.50		0.30		4

Included in the table above are SARs granted by a predecessor entity to the Company in 2010 to certain executives that will expire in 2016. As of December 31, 2015, approximately $11 million of unrecognized stock compensation expense related to unvested SARs (net of estimated forfeitures) is expected to be recognized over a weighted-average period of approximately two years.

Cash proceeds and intrinsic value related to total stock options and SARs exercised during 2015, 2014 and 2013, were as follows:

	Years Ended December 31,
(in millions)	2015		2014		2013
Proceeds received from the exercise of service based stock options	$	17	$	9	$	—
Intrinsic value of service based stock options and SARs exercised		90		27		1
Proceeds received from the exercise of performance based stock options	$	10	$	8	$	—
Intrinsic value of performance based stock options exercised		43		31		—

The intrinsic value for stock options and SARs was calculated based on the exercise price of the underlying awards and the market price of the Company’s common stock as of the end of the period.

Performance Shares

The following table summarizes activity of the performance shares for the periods indicated:

(in millions)	Shares			Weighted-Average Grant-Date Fair Value
Performance shares outstanding, December 31, 2014		—		$	—
Granted		0.6			25.13
Forfeitures		(0.1	)		25.08
Performance shares outstanding, December 31, 2015		0.5		$	25.14

As of December 31, 2015, there was $10 million of unrecognized compensation cost related to nonvested performance shares. The cost is expected to be recognized over a weighted-average period of approximately 2 years.

Restricted Stock and Restricted Stock Units

The following table summarizes activity of restricted stock and RSUs for the periods indicated:

(in millions)	Shares/Units			Weighted-Average Grant-Date Fair Value
Restricted stock and RSUs outstanding, December 31, 2014		1.4		$	19.55
Granted		1.0			27.47
Forfeitures		(0.1	)		19.50
Restricted stock and RSUs outstanding, December 31, 2015		2.3		$	22.76

During 2015 and 2014, 0.9 million restricted shares and 1.4 million RSUs were granted to employees and non-employee directors, respectively.

Fair value for restricted stock and RSUs with service conditions was as follows:

	Years Ended December 31,
(in millions)	2015		2014		2013
Fair value of restricted stock and RSUs which vested during the year	$	—	$	2	$	2
Fair value of restricted stock and RSUs outstanding		59		37		1

As of December 31, 2015, there was $38 million of unrecognized compensation cost related to nonvested restricted stock and RSUs. The cost is expected to be recognized over a weighted-average period of approximately 2 years.

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Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Note 11. Income Taxes

Income (loss) before income taxes consisted of:

	Years Ended December 31,
(in millions)	2015			2014			2013
U.S.	$	(61	)	$	(455	)	$	(240	)
Non-U.S.		278			170			192
Total	$	217		$	(285	)	$	(48	)

Provision for (benefit from) income taxes consisted of:

	Years Ended December 31,
(in millions)	2015			2014			2013
U.S. Federal and State:
Current	$	7		$	—		$	6
Deferred		(269	)		(141	)		(178	)
	$	(262	)	$	(141	)	$	(172	)
Non-U.S.:
Current	$	85		$	85		$	66
Deferred		(23	)		(40	)		(24	)
	$	62		$	45		$	42
Total	$	(200	)	$	(96	)	$	(130	)

The following table summarizes the significant differences between the U.S. Federal statutory taxes and the Company’s provision (benefit) for income taxes for consolidated financial statement purposes.

	Years Ended December 31,
	2015			2014			2013
Tax expense (benefit) at statutory rate		35	%		(35	)%		(35	)%
State and local income taxes, net of Federal tax benefit		4			(1	)		(21	)
Impact of Non-U.S. tax rates and credit		(5	)		8			(21	)
Impact of tax rate changes		(3	)		1			(12	)
Restructuring effect on deferred tax liability		—			(2	)		(178	)
Impact of change in assertion related to unremitted earnings		(118	)		—			—
Contract/statute of limitations expirations		(2	)		(2	)		(10	)
Reserves for uncertain tax positions		2			3			20
Audit settlements		(1	)		(4	)		(12	)
Other, net		(4	)		(2	)		—
Total tax benefit		(92	)%		(34	)%		(269	)%

The Company recorded a benefit for income taxes of $200 million in 2015, primarily due to the Company changing its assertion related to unremitted earnings of its non-U.S. subsidiaries. Historically, the Company provided deferred taxes with respect to all of the unremitted earnings of its non-U.S. subsidiaries. As of the beginning of 2015, the Company is asserting, with certain exceptions, that the unremitted earnings of its non-U.S. subsidiaries related to prior years, as well as those related to 2015 will be indefinitely reinvested. As a result of this change in assertion, in the first quarter of 2015, the Company reversed a previously established deferred tax liability of $256 million and as of December 31, 2015, have a deferred tax liability of $12 million. The Company has the intent and ability to indefinitely reinvest its non-U.S. subsidiaries’ unremitted earnings, with certain exceptions, as these earnings are no longer expected to be repatriated to the United States to meet the Company’s U.S. cash needs. Rather, the Company intends to reinvest the non-U.S. earnings in the growth of its non-U.S. businesses. The tax benefit for 2015 was also favorably impacted as a result of profits generated in non-U.S. tax jurisdictions with lower tax rates than the U.S. statutory tax rate. The Company recorded a tax charge of $2 million during 2015 for interest and penalties related to unrecognized tax benefits. As of December 31, 2015, the Company had $28 million of unrecognized tax benefits that if recognized would favorably affect the effective tax rate and $9 million of interest and penalties associated with unrecognized tax benefits.

The Company had a tax benefit for 2014 which was primarily due to a significant amount of deductible expenses in the U.S. related to the redemption of the Company’s 12.5% Senior Notes and Senior PIK Notes, the termination of the management services agreement with affiliates of the Sponsors, and non-executive Phantom SARs compensation expense. In addition, the Company’s effective tax rate was impacted as a result of profits generated in non-U.S. tax jurisdictions with lower tax rates than the U.S. statutory tax rate and by deferred U.S. income tax expense related to non-U.S. earnings net of associated tax credits. The Company also recorded a tax benefit of $6 million in the second quarter of 2014 as a result of the conclusion of a U.S. Federal income tax examination for 2010 and 2011. The Company recorded a tax charge of $3 million during 2014 for interest and penalties related to unrecognized tax benefits. As of December 31, 2014, the Company had $28 million of unrecognized tax benefits that if recognized would favorably affect the effective tax rate and $9 million of interest and penalties associated with unrecognized tax benefits.

In 2014, the Company completed the restructuring of its foreign operations and fully integrated its U.K., Spain and Austria businesses under the Company's main European holding company in Switzerland. The initial steps of the restructuring started during the fourth quarter of 2013. The restructuring significantly affected the book over tax basis differences among group members and the ultimate worldwide tax cost of a theoretical recognition of such differences. As a result, the associated deferred tax liability was reduced by approximately $5 million and $86 million as of December 31, 2014 and 2013, respectively.

In 2013, the Company’s effective tax rate was favorably impacted by a tax reduction of $10 million as a result of the conclusion of U.S. audits. In connection with one of the audits, the Company received a $47 million refund for which a receivable had been previously established. The Company also recorded tax reductions of $5 million as a result of the expiration of various statutes of limitation and $2 million for the reversal of a valuation allowance due to a change in enacted state tax law changes. The Company recorded a tax charge of $2 million during 2013 for interest and penalties related to unrecognized tax benefits. As of December 31, 2013, the Company had $38 million of unrecognized tax benefits that if recognized would favorably affect the effective tax rate and $11 million of interest and penalties associated with unrecognized tax benefits.

The Company files numerous consolidated and separate income tax returns in U.S. (federal and state) and non-U.S. jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal income tax examination by tax authorities for years before 2012, in state and local jurisdictions for years prior to 2011, and in its material non-U.S. jurisdictions prior to 2011. It is reasonably possible that within the next twelve months the Company could realize $3 million of unrecognized tax benefits as a result of the expiration of certain statutes of limitation.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Years Ended December 31,
(in millions)	2015			2014			2013
Gross unrecognized tax benefits at beginning of year	$	30		$	42		$	42
Gross (decreases) increases – prior period positions		—			(10	)		—
Gross increases – current period positions		4			5			11
Increases (decreases) – settlement with tax authorities		—			—			(7	)
Reductions – lapse of statute of limitations		(3	)		(4	)		(4	)
Other		1			(3	)		—
Gross unrecognized tax benefits at end of year	$	32		$	30		$	42

The Company’s deferred tax assets (liabilities) are comprised of the following at December 31:

	At December 31,
(in millions)	2015			2014
Deferred Tax Assets:
Net operating losses	$	265		$	211
Foreign tax credits		145			127
Employment benefits		18			14
Deferred revenues		20			14
Equity compensation		34			36
Postemployment benefits		17			8
Non-U.S. intangibles		2			5
Accrued liabilities		10			11
Other		61			50
		572			476
Valuation allowance		(101	)		(66	)
Total deferred tax assets	$	471		$	410
Deferred Tax Liabilities:
Intangible assets	$	(660	)	$	(711	)
Undistributed earnings		(12	)		(266	)
Computer software		(159	)		(118	)
Depreciation		(10	)		(11	)
Foreign exchange		(117	)		(50	)
Other		(24	)		(55	)
Total deferred tax liabilities	$	(982	)	$	(1,211	)
Net Deferred Tax Liability	$	(511	)	$	(801	)

The Company had federal, state and local, and non-U.S. tax credit and tax loss carryforwards, the tax effect of which was $433 million as of December 31, 2015. Of this amount, $26 million has an indefinite carryforward period, and the remaining $407 million expires at various times beginning in 2016. As of December 31, 2015, the Company had $101 million of valuation allowances established against state and local and non-U.S. net operating losses that based on available evidence, are more likely than not to expire before they can be utilized.

The table of deferred tax assets and liabilities shown above does not include certain deferred tax assets as of December 31, 2015 that arose directly from tax deductions related to equity compensation greater than compensation recognized for financial reporting. The Company had a federal net operating loss carryforward for tax purposes of $399 million as of December 31, 2015. The gross amount of net operating loss carryforwards for which a tax benefit would be recorded to additional paid-in capital if and when income taxes payable is reduced was approximately $78 million as of December 31, 2015. The Company uses tax law ordering in determining when excess tax benefits have been realized.

As of December 31, 2015, there is a book-over-tax basis difference with respect to the investments in non-U.S. subsidiaries of approximately $1,571 million. This basis difference relates to purchase accounting adjustments of approximately $826 million and undistributed earnings of approximately $745 million. The Company intends to indefinitely reinvest all unremitted earnings outside the U.S. with limited exceptions. As of December 31, 2015, deferred income taxes of $12 million have been provided on such earnings and approximately $270 million have not been provided on such earnings.

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Commitments

12 Months Ended

Dec. 31, 2015

Commitments And Contingencies Disclosure [Abstract]

Commitments

Note 12. Commitments

The Company’s contractual obligations include facility leases, agreements to purchase data and telecommunications services, and computer and other leases. At December 31, 2015, the minimum annual payment under these agreements and other contracts that have initial or remaining non-cancelable terms in excess of one year are as listed in the following table:

(in millions)	2016		2017		2018		2019		2020		Thereafter		Total
Operating leases(1)	$	66	$	52	$	41	$	31	$	29	$	51	$	270
Data acquisition and telecommunication services(2)		253		143		62		48		37		9		552
Computer and other leases(3)		23		16		10		7		3		—		59
Total	$	342	$	211	$	113	$	86	$	69	$	60	$	881

⁽¹⁾ Rental expense under real estate operating leases for the years ended 2015, 2014 and 2013 were $70 million, $51 million and $49 million, respectively.

⁽²⁾ Expense under data acquisition and telecommunications long-term contracts for the years ended 2015, 2014 and 2013 were $263 million, $221 million and $215 million, respectively.

⁽³⁾ Rental expense under computer and other leases for the years ended 2015, 2014 and 2013 were $26 million, $28 million and $25 million, respectively. These leases are frequently renegotiated or otherwise changed as advancements in computer technology produce opportunities to lower costs and improve performance.

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Contingencies

12 Months Ended

Dec. 31, 2015

Commitments And Contingencies Disclosure [Abstract]

Contingencies

Note 13. Contingencies

The Company and its subsidiaries are involved in legal and tax proceedings, claims and litigation arising in the ordinary course of business. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. For those matters where management currently believes it is probable that the Company will incur a loss and that the probable loss or range of loss can be reasonably estimated, the Company has recorded reserves in the Consolidated Financial Statements based on its best estimates of such loss. In other instances, because of the uncertainties related to either the probable outcome or the amount or range of loss, management is unable to make a reasonable estimate of a liability, if any. However, even in many instances where the Company has recorded an estimated liability, the Company is unable to predict with certainty the final outcome of the matter or whether resolution of the matter will materially affect the Company’s results of operations, financial position or cash flows. As additional information becomes available, the Company adjusts its assessments and estimates of such liabilities accordingly.

The Company routinely enters into agreements with its suppliers to acquire data and with its clients to sell data, all in the normal course of business. In these agreements, the Company sometimes agrees to indemnify and hold harmless the other party for any damages such other party may suffer as a result of potential intellectual property infringement and other claims related to the use of the data. The Company has not accrued a liability with respect to these matters, as the exposure is considered remote.

Based on its review of the latest information available, management does not expect the impact of pending legal and tax proceedings, claims and litigation, either individually or in the aggregate, to have a material adverse effect on the Company’s results of operations, cash flows or financial position. However, one or more unfavorable outcomes in any claim or litigation against the Company could have a material adverse effect for the period in which it is resolved. The following is a summary of certain legal matters involving the Company.

IMS Health Government Solutions Voluntary Disclosure Program Participation

The Company’s wholly-owned subsidiary, IMS Government Solutions Inc. (“IMS Government Solutions”), is primarily engaged in providing services and products under contracts with the U.S. government. U.S. government contracts are subject to extensive legal and regulatory requirements and, from time to time, agencies of the U.S. government have the ability to investigate whether contractors’ operations are being conducted in accordance with such requirements. U.S. government investigations, whether relating to these contracts or conducted for other reasons, could result in administrative, civil or criminal liabilities, including repayments, fines or penalties being imposed on us, or could lead to suspension or debarment from future U.S. government contracting. U.S. government investigations often take years to complete and may result in no adverse action against the Company.

IMS Government Solutions discovered potential noncompliance with various contract clauses and requirements under its General Services Administration Contract (the “GSA Contract”) which was awarded in 2002 to its predecessor company, Synchronous Knowledge Inc. (Synchronous Knowledge Inc. was acquired by IMS Health in May 2005). The potential noncompliance arose from three primary areas: first, at the direction of the government, work performed under one task order was invoiced under another task order without the appropriate modifications to the orders being made; second, personnel who did not meet strict compliance with the labor categories component of the qualification requirements of the GSA Contract were assigned to contracts; and third, certain discounts that were given to commercial customers were not also offered to the government, in alleged violation of the GSA Contract’s Price Reductions Clause. Upon discovery of the potential noncompliance, the Company began remediation efforts, promptly disclosed the potential noncompliance to the U.S. government, and was accepted into the Department of Defense Voluntary Disclosure Program. The Company filed its Voluntary Disclosure Program Report (“Disclosure Report”) on August 29, 2008. Based on the Company’s findings as disclosed in the Disclosure Report, the Company recorded a reserve of approximately $4 million for this matter in 2008. During 2010, the Company recorded an additional reserve of approximately $2 million as a result of its ongoing investigation relating to this matter. In September 2014, the General Services Administration offered to settle the third matter described above (i.e., the Price Reductions Clause aspect of the Disclosure Report) for $1.5 million, in-line with the amount the Company had recorded for this area of potential noncompliance. On April 23, 2015, the Company and the government executed the settlement agreement and made the $1.5 million payment. The Company is currently unable to determine the outcome of all of these matters pending the resolution of the Voluntary Disclosure Program process and its ultimate liability arising from these matters could exceed its current reserves.

Symphony Health Solutions litigation

On July 24, 2013, Symphony Health Solutions and two of its subsidiaries (collectively “Symphony”) filed a lawsuit in the U.S. District Court for the Eastern District of Pennsylvania against IMS Health alleging anticompetitive business practices in violation of the Sherman Antitrust Act and Pennsylvania State law. IMS Health asserted various counterclaims in that lawsuit. On December 20, 2013, IMS Health filed a lawsuit in the U.S. District Court for the District of Delaware against Symphony for infringement of three patents seeking injunctive relief and damages. In late 2015, the Company and Symphony entered into a settlement agreement whereby each of the parties agreed to terminate their respective lawsuits, and these lawsuits were dismissed with prejudice in January, 2016.

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Supplemental Financial Data

12 Months Ended

Dec. 31, 2015

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Supplemental Financial Data

Note 14. Supplemental Financial Data

The following tables summarize information related to the Company’s Statements of Financial Position:

	December 31,
(in millions)	2015			2014
Accounts Receivable, net:
Trade	$	460		$	296
Allowances		(9	)		(5	)
Unbilled receivables		57			39
Accounts receivable, net	$	508		$	330

	December 31,
(in millions)	2015		2014
Other Current Assets:
Deferred income taxes	$	—	$	105
Prepaid expenses		71		59
Work-in-process inventory		59		49
Income taxes receivable		10		4
Restricted cash		10		24
Other		38		53
Other current assets	$	188	$	294

	Estimated	December 31,
(in millions)	Useful Lives	2015			2014
Property, Plant and Equipment, net:
Buildings and improvements	40 - 50 years	$	53		$	54
Machinery and equipment	3 - 15 years		209			189
Leasehold improvements	1 - 11 years		48			43
Construction-in-progress			4			5
Property, plant and equipment, gross			314			291
Accumulated depreciation and amortization			(147	)		(138	)
Property, plant and equipment, net		$	167		$	153

Depreciation expense was $44 million, $48 million and $37 million for the years ended December 31, 2015, 2014 and 2013, respectively.

(in millions)
Computer Software, net:
December 31, 2013	$	263
Additions at cost		95
Acquisitions		2
Amortization		(103	)
Impairments, foreign exchange and other		1
December 31, 2014		258
Additions at cost		131
Acquisitions		41
Amortization		(117	)
Impairments, foreign exchange and other		(4	)
December 31, 2015	$	309

Accumulated amortization of total computer software was $452 million and $385 million at December 31, 2015 and 2014, respectively. Amortization expense was $86 million for the year ended December 31, 2013.

	December 31,
(in millions)	2015		2014
Other Assets:
Long-term pension assets	$	53	$	57
Securities and other investments		11		3
Long-term deferred tax asset		15		7
Other		30		45
Other assets	$	109	$	112

	December 31,
(in millions)	2015		2014
Accounts Payable:
Trade	$	53	$	25
Taxes other than income taxes		94		58
Other		16		4
Accounts payable	$	163	$	87

	December 31,
(in millions)	2015		2014
Accrued and Other Current Liabilities:
Salaries, wages, bonuses and other compensation	$	165	$	171
Accrued data acquisition costs		81		86
Accrued interest		18		17
Accrued professional fees		48		35
Accrued income taxes		36		42
Deferred tax liability		—		9
Accrued severance and other costs		56		21
Contingent consideration liability		16		18
Accrued loyalty (1)		99		—
Other		92		82
Accrued and other current liabilities	$	611	$	481

⁽¹⁾ The Company owns businesses that manage co-pay reimbursements on behalf of its pharmaceutical customers. These customers prefund the reimbursements, and the Company includes this cash on its balance sheet. The Company draws on this cash to pay pharmacies as consumers use these programs.

	December 31,
(in millions)	2015		2014
Other Liabilities:
Long-term uncertain tax benefits reserve	$	19	$	19
Contingent consideration liability		12		6
Other		52		56
Other liabilities	$	83	$	81

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Related Party

12 Months Ended

Dec. 31, 2015

Related Party Transactions [Abstract]

Related Party

Note 15. Related Party

Management Services Agreement

The Company had a management services agreement with affiliates of the Sponsors pursuant to which they would provide management services to the Company. In conjunction with the Company’s IPO, the management services agreement was terminated for a settlement amount of $72 million and the Company recorded this charge as a component of Selling and administrative expenses, exclusive of depreciation and amortization in the Consolidated Statements of Comprehensive Income (Loss) in 2014. Prior to the termination of the management services agreement, the Company paid an additional $2 million in 2014 in monitoring fees pursuant to the management services agreement. During 2013, the Company paid approximately $8 million in monitoring fees.

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Operations by Business Segment

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Operations by Business Segment

Note 16. Operations by Business Segment

Operating segments are defined as components of an enterprise about which financial information is available that is evaluated on a regular basis by the chief operating decision-maker, or decision-making groups, in deciding how to allocate resources to an individual segment and in assessing performance of the segment. The Company operates a globally consistent business model, offering clients in the healthcare industry with comprehensive solutions to measure and improve their performance.

The Company maintains regional geographic management who are responsible for bringing the Company’s full suite of offerings to their respective markets and to facilitate local execution of its global strategies. However, the Company maintains global leaders for the majority of its critical business processes; and the most significant performance evaluations and resource allocations made by the Company’s chief operating decision maker is made on a global basis. As such, the Company has concluded that it maintains one operating and reportable segment.

Geographic Financial Information

The following represents selected geographic information for the regions in which the Company operates.

(in millions)	Americas(1)		EMEA(2)		Asia Pacific(3)		Corporate & Other			Total
As of or For the Years Ended December 31,
2015
Revenue(4)	$	1,326	$	1,157	$	438	$	-		$	2,921
Operating income (loss)(5)		222		215		117		(190	)		364
Total assets		4,144		2,200		1,112		3			7,459
2014
Revenue(4)	$	1,205	$	1,007	$	429	$	-		$	2,641
Operating income (loss)(5)		283		276		134		(485	)		208
Total assets		3,833		2,035		1,112		116			7,096
2013
Revenue(4)	$	1,160	$	951	$	433	$	-		$	2,544
Operating income (loss)(5)		297		276		147		(366	)		354
Total assets		4,065		2,450		1,266		127			7,908

 In April 2015, the Company realigned its regional reporting so that India, Sri Lanka and Bangladesh are included in EMEA. Previously, these countries had been included in the Asia Pacific region. Additionally in 2015, the Company made changes to its geographic reporting classifications to move some functions out of Corporate and Other and into the regions. As a result of these changes, reclassifications of prior years’ geographic financial information were made to conform to the current year presentation. The reclassifications did not change previously reported Consolidated Results of Operations.

⁽¹⁾ Americas includes the United States, Canada and Latin America. Revenue in the United States was $1,127 million, $986 million and $935 million for the years ended December 31, 2015, 2014 and 2013, respectively. Total U.S. assets were $4,046 million, $3,659 million and $3,837 million at December 31, 2015, 2014 and 2013, respectively.

⁽²⁾ EMEA includes countries in Europe, the Middle East and Africa, and the countries of India, Sri Lanka and Bangladesh.

⁽³⁾ Asia Pacific includes Japan, Australia and other countries in the Asia Pacific region, excluding India, Sri Lanka and Bangladesh. Revenue in Japan was $245 million, $252 million and $261 million for the years ended December 31, 2015, 2014 and 2013, respectively.

⁽⁴⁾ Revenue relates to external clients and is primarily based on the location of the client. Revenue for the geographic regions includes the impact of foreign exchange in converting results into U.S. Dollars.

⁽⁵⁾ Operating income (loss) for the three geographic regions does not reflect the allocation of certain expenses that are maintained in Corporate and Other and as such, is not a true measure of the respective regions’ profitability. The Operating income (loss) amounts for the geographic regions include the impact of foreign exchange in converting results into U.S. Dollars. The following presents the depreciation and amortization for certain intangible assets recorded in connection with a merger transaction completed in 2010 by region that are included in Corporate and Other:

(in millions)	Americas		EMEA		Asia Pacific
For the Years Ended December 31,
2015	$	83	$	26	$	24
2014		126		86		39
2013		126		87		42

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Earnings (Loss) per Share

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Earnings (Loss) per Share

Note 17. Earnings (Loss) per Share

The following table presents the composition of basic and diluted weighted average shares outstanding:

	Years Ended December 31,
(Shares in millions)	2015		2014		2013
Basic weighted-average common shares outstanding		331.0		319.0		280.0
Effect of dilutive stock-based awards		8.3		—		7.0
Diluted weighted-average common shares outstanding		339.3		319.0		287.0
Shares excluded from computation of diluted (loss) earnings per share:
Weighted average potential common shares excluded from computation due to anti-dilutive effect		1.6		18.7		—

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Subsequent Events

12 Months Ended

Dec. 31, 2015

Subsequent Events [Abstract]

Subsequent Events

Note 18. Subsequent Events

Senior Secured Credit Facilities

In January 2016, IMS Health entered into an amendment (the “2016 Amendment”) to the Third Amended and Restated Credit and Guaranty Agreement, dated as of March 17, 2014, among IMS Health, IMS AG and IMS Japan K.K., as co-borrowers, Healthcare Technology Intermediate Holdings, Inc., Bank of America, N.A. and the other lenders party thereto. The 2016 Amendment increased outstanding commitments under the Company’s existing Term A loans by $300 million. The proceeds from the additional Term A loans will be used for general corporate purposes, including funding acquisitions and repaying existing loans under IMS Health’s senior secured revolving credit facility.

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Schedule I - Condensed Financial Information of Parent Company

12 Months Ended

Dec. 31, 2015

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Schedule I - Condensed Financial Information of Parent Company

SCHEDULE I

IMS Health Holdings, INC.

Parent Company Only

Condensed Statements of Financial Position

	December 31,
(in millions)	2015		2014
Assets
Current Assets:
Other current assets	$	4	$	5
Amounts receivable from subsidiaries		16		16
Total Current Assets		20		21
Investment in subsidiaries		1,533		1,538
Other assets		67		58
Total Assets	$	1,620	$	1,617
Liabilities and Shareholders’ Equity
Current Liabilities:
Amounts payable to subsidiaries	$	48	$	75
Total Liabilities	$	48	$	75
Shareholders’ Equity		1,572		1,542
Total Liabilities and Shareholders’ Equity	$	1,620	$	1,617

IMS Health Holdings, INC.

Parent Company Only

Condensed Statements of Comprehensive Income (Loss)

	Years Ended December 31,
(in millions)	2015			2014			2013
Operating costs of information	$	2		$	6		$	3
Direct and incremental costs of technology services		2			5			2
Selling and administrative expenses		21			47			17
Loss before income taxes and equity in net income (loss) of subsidiaries		(25	)		(58	)		(22	)
Benefit from income taxes		8			19			7
Equity in net income (loss) of subsidiaries		434			(150	)		97
Net income (loss)	$	417		$	(189	)	$	82
Other Comprehensive Loss:
Cumulative translation adjustment (net of taxes of $(42), $(27) and $—, respectively)	$	(118	)	$	(178	)	$	(183	)
Unrealized gains on derivatives (net of taxes of $—, $— and $(4), respectively)		1			2			9
Gains on derivative instruments, reclassified into earnings (net of taxes of $9, $2 and $5, respectively)		(15	)		(4	)		(9	)
Postretirement and postemployment adjustments (net of taxes of $—, $13 and $(16), respectively)		(1	)		(30	)		24
Other Comprehensive Loss	$	(133	)	$	(210	)	$	(159	)
Total Comprehensive Income (Loss)	$	284		$	(399	)	$	(77	)

IMS Health Holdings, INC.

Parent Company Only

Condensed Statements of Cash Flows

	Years Ended December 31,
(in millions)	2015		2014		2013
Net Cash Provided by (Used in) Operating Activities	$	—	$	—	$	—
Net Cash Provided by (Used in) Investing Activities		—		—		—
Net Cash Provided by (Used in) Financing Activities		—		—		—
Increase (Decrease) in Cash and Cash Equivalents		—		—		—
Cash and Cash Equivalents, Beginning of Period		—		—		—
Cash and Cash Equivalents, End of Period	$	—	$	—	$	—
Non-Cash Investing and Financing Activities:
Acquisitions of treasury stock	$	314	$	—	$	—
Dividends paid		—		—		(753	)

IMS Health Holdings, INC.

Parent Company Only

Notes to Condensed Financial Statements

Basis of Presentation

IMS Health Holdings, Inc. (the “Parent Company”) has accounted for the earnings of its subsidiaries under the equity method of accounting in these unconsolidated condensed financial statements. There are restrictions on the Parent Company’s ability to obtain funds from any of its subsidiaries. Accordingly, these condensed financial statements have been presented on a Parent-only basis. The notes to the condensed financial statements are an integral part of these condensed financial statements.

Share Repurchase

In December 2015, the Parent Company purchased 670 thousand shares of its common stock having an aggregate value of approximately $17 million at an average price of $25.70 per share. In May 2015, the Parent Company purchased 11.1 million shares of its common stock at $27.0875 per share from the underwriters in a registered public offering of the Company’s common stock by affiliates of certain of the Parent Company’s shareholders having an aggregate value of approximately $300 million. The share repurchases were paid by a subsidiary of the Parent Company.

Dividends

In August 2013, the Parent Company declared and paid a dividend to shareholders of $2.60 per share for a total of $753 million. The dividend was paid by a subsidiary of the Parent Company.

Commitments and Contingencies

The Parent Company had no material commitments during the reported periods.

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Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2015

Valuation And Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

(in millions)	Balance at Beginning of Period		Additions Charged to Costs and Expenses(a)		Deductions			Balance at End of Period
Valuation Allowance for Deferred Income Taxes
Year ended December 31, 2015	$	66	$	35	$	—		$	101
Year ended December 31, 2014		49		21		(4	)		66
Year ended December 31, 2013		45		9		(5	)		49

^(a) Valuation allowances on assets related to additional Net Operating Losses created during the year where, based on available evidence, it is more likely than not that such assets will not be realized.

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain prior year amounts have been reclassified to conform to the 2015 presentation. Amounts presented in the Consolidated Financial Statements may not add due to rounding.

Consolidation

Consolidation.  The Consolidated Financial Statements of the Company include the accounts of the Company, its subsidiaries and investments in which the Company has control. Intercompany accounts and transactions are eliminated in consolidation. The Company recognizes in the income statement any gains or losses related to investments accounted for under the equity method.

Cash and Cash Equivalents and Restricted Cash

Cash and cash equivalents and restricted cash.  Cash and cash equivalents include primarily time and demand deposits in the Company’s operating bank accounts. The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be cash equivalents. Restricted cash consists of amounts not immediately available.

Property, Plant and Equipment

Property, plant and equipment.  Buildings, machinery and equipment are recorded at cost and depreciated over their estimated useful lives to their salvage values using the straight-line method. Leasehold improvements are recorded at cost and amortized on a straight-line basis over the shorter of the term of the lease or the estimated useful life of the improvement. See Note 14.

Computer Software

Computer software.  Direct costs incurred in the development of the Company’s internal-use computer software are capitalized. Costs are capitalized from completion of the preliminary project stage and when it is considered probable that the software will be used to perform its intended function, up until the time the software is placed into service. Once placed into service, the software is amortized generally over a period of three to fifteen years. The Company periodically reviews the unamortized capitalized costs of its computer software to assess for any potential impairment. The Company recognizes immediately any impairment losses on software as a result of its review. Research and development costs are expensed in the periods in which they are incurred.

Business Combinations

Business combinations.  Business combinations are accounted for using the acquisition method, and accordingly, the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree are recorded at their estimated fair values on the date of acquisition. Acquisition-related costs are expensed as incurred and recorded in selling and administrative expense, exclusive of depreciation and amortization. The Consolidated Financial Statements include the results of the acquisitions subsequent to each of their closings.

Goodwill

Goodwill.  Goodwill represents the excess purchase price over the fair value of identifiable net assets of businesses acquired, and is not amortized. The Company reviews the recoverability of goodwill annually (or based on any triggering event). To analyze goodwill for impairment, the Company must assign its goodwill to individual reporting units. Identification of reporting units, considers, among other things, the manner in which the Company operates its business and the availability of discrete financial information.

For its impairment test as of October 1, 2015, the Company utilized a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value which includes, but is not limited to, consideration of the results of its most recent quantitative impairment test, consideration of macroeconomic conditions, industry and market conditions, cost factors, cash flows, changes in key Company personnel and its share price.

For its impairment tests as of October 1, 2014 and 2013, the Company utilized a quantitative goodwill impairment test, which requires estimating fair value of a reporting unit based on a discounted cash flow analysis. A discounted cash flow analysis requires the Company to make various judgmental assumptions, including assumptions about the timing and amount of future cash flows, growth rates and discount rates. If the carrying amount of the reporting unit exceeds its fair value, the goodwill impairment loss is measured as the excess of the carrying value of goodwill over its fair value.

Based on its annual impairment tests in 2015, 2014 and 2013, no goodwill impairment charges were recorded. See Note 4.

Other Long-Lived Assets

Other long-lived assets.  The Company reviews the recoverability of its long-lived assets and identifiable intangibles held and used whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In general, the assessment of possible impairment is based on the Company’s ability to recover the carrying value of the asset from the undiscounted expected future cash flows of the asset. If the future cash flows are less than the carrying value of such asset, an impairment charge is recognized for the difference between the estimated fair value and the carrying value. In addition, the Company also reviews its indefinite-lived intangible assets on an annual basis.

Revenue Recognition

Revenue recognition.  The Company recognizes revenue when the following criteria have been met: 1) persuasive evidence of an arrangement exists; 2) delivery has occurred or services have been rendered; 3) the seller’s price to the buyer is fixed or determinable; and 4) collectibility is reasonably assured.

The Company offers various information offerings developed to meet its clients’ needs by using data secured from a worldwide network of suppliers. The Company’s revenue arrangements may include multiple elements. A typical information offerings arrangement (primarily under fixed-price contracts) may include an ongoing subscription-based deliverable for which revenue is recognized ratably as earned over the contract period, and/or a one-time delivery of data offerings for which revenue is recognized upon delivery, assuming all other criteria are met. The Company’s subscription arrangements typically have terms ranging from one to three years and are generally non-cancelable and do not contain refund-type provisions.

The Company also offers technology services offerings that enable its clients to make informed business decisions. Technology services offerings consist of a mix of small and large-scale services and consulting projects, multi-year outsourcing contracts and Software-as-a-Service (“SaaS”) licenses. These arrangements typically have terms ranging from several weeks to three years, with a majority having terms of one year or less. Revenues for services engagements where deliverables occur ratably over time are recognized on a straight-line basis over the term of the arrangement. Revenues from time and material contracts are recognized as the services are provided. Revenues from fixed price ad hoc services and consulting contracts are recognized either over the contract term based on the ratio of the number of hours incurred for services provided during the period compared to the total estimated hours to be incurred over the entire arrangement (efforts based), or upon delivery (completed contract).

The deliverables in multi-element arrangements qualify as separate units of accounting as each has value on a standalone basis to the client, objective and reliable evidence of fair value for any undelivered item(s) exists, and where the arrangement includes a general right of return relative to the delivered item(s), delivery of the undelivered item(s) is probable and within the Company’s control. The Company allocates revenue to each element within its arrangements based upon their respective relative selling price. Fair values for these elements are based upon the normal pricing practices for these offerings when sold separately. The Company defers revenue for any undelivered elements, and recognizes revenue when the product is delivered or over the term of the agreement, in accordance with its revenue recognition policy for such element as noted above.

The Company presents its revenues net of taxes assessed by government authorities.

Payment terms vary by client, but are typically stipulated in the contract and are generally invoiced with 30 day payment terms. The Company generally does not offer extended payment terms. Advance payments from clients are credited to Deferred revenues and reflected in Revenue as earned over the contract term. Unbilled receivables are included in Accounts receivable, net in the Consolidated Statements of Financial Position and represent revenues for products delivered or services performed that have not yet been invoiced to the client. Unbilled receivables are generally invoiced within the following month.

Operating Costs of Information

Operating costs of information.  Operating costs of information includes costs attributable to personnel involved in production, data management and delivery, and the costs of acquiring and processing data for the Company’s information offerings. One of the Company’s major expenditures is the cost for the data it receives from suppliers. After receipt of the raw data and prior to the data being available for use in any part of the business, the Company is required to transform the raw data into useful information through a series of comprehensive processes. These processes involve significant employee costs and data processing costs. Costs associated with purchases are deferred within work-in-process inventory and recognized as expense as the corresponding data product revenue is recognized, generally over a thirty to sixty day period.

Direct and Incremental Costs of Technology Services

Direct and incremental costs of technology services.  Direct and incremental costs of technology services include costs of staff directly involved with delivering technology-related, consulting and services generating offerings and engagements, related accommodations and the costs of data purchased specifically for technology services engagements. Direct and incremental costs of technology services do not include an allocation of direct costs of data that are included in operating costs of information. Although the Company’s data, the costs of which are included in Operating costs of information, is used in multiple client solutions across different offerings within both information and technology services, the Company does not have a meaningful way to allocate the direct cost of the data between information and technology services. As such, the direct and incremental costs of technology services do not reflect the total costs incurred to deliver technology services engagements.

Restructuring Activities

Restructuring activities.  The Company records a liability for significant costs associated with restructuring activities, including employee severance and related benefits, lease termination costs, asset impairments and other qualifying exit costs, when such costs are deemed probable and estimable. Employee severance benefits are calculated pursuant to the terms of established employee protection plans, in accordance with local statutory minimum requirements or individual employee contracts, as applicable. These charges are included in Severance, impairment and other charges, a component of operating income, on the Consolidated Statements of Comprehensive Income (Loss).

Pensions and Other Postretirement Benefits

Pensions and other postretirement benefits.  The Company provides a number of retirement benefits to its employees, including defined benefit pension plans and postretirement medical plans. The determination of benefit obligations and expense is based on actuarial models. In order to measure benefit costs and obligations using these models, critical assumptions are made with regard to the discount rate, expected return on plan assets, cash balance crediting rate, lump sum conversion rate and the assumed rate of compensation increases. In addition, retiree medical care cost trend rates are a key assumption used exclusively in determining costs for the Company’s postretirement health care and life insurance benefit plans. Management reviews these critical assumptions at least annually. Other assumptions involve demographic factors such as the turnover, retirement and mortality rates. Management reviews these assumptions periodically and updates them when its experience deems it appropriate to do so.

The discount rate is the rate at which the benefit obligations could be effectively settled and is determined annually by management. For U.S. plans, the discount rate is based on results of a modeling process in which the plans’ expected cash flow (determined on a projected benefit obligation basis) is matched with spot rates developed from a yield curve comprised of high-grade (Moody’s Aa and above, or Standard and Poor’s AA and above) non-callable corporate bonds to develop the present value of the expected cash flow, and, prior to December 31, 2015, then determining the single rate (discount rate) which when applied to the expected cash flow derives that same present value. In the U.K. specifically, the discount rate is set based on the yields on a universe of approximately 120 high quality (Aa rated) non-callable corporate bonds denominated in U.K. Sterling, appropriate to the duration of Plan liabilities. For the other non-U.S. plans, the discount rate is based on the current yield of an index of high quality corporate bonds. At December 31, 2015, the discount rate ranged from 3.00% to 4.57% compared to 2.60% to 3.90% at December 31, 2014 for its U.S. pension plans and postretirement benefit plan. The discount rate for its U.K. pension plan increased to 3.89% at December 31, 2015 from 3.80% at December 31, 2014. The U.S. and U.K. plans represent approximately 90% of the consolidated benefit obligation as of December 31, 2015. The discount rates in other non-U.S. countries increased, as the range of applicable discount rates was 0.60% to 5.00% at December 31, 2015, compared to 0.50% to 4.60% at December 31, 2014.

In 2016, the Company will change its approach of how it estimates the service and interest cost components of net periodic benefit cost for its U.S. and U.K. pension benefit plans. Previously, the Company estimated the service and interest cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation. The new estimate utilizes a full yield curve approach in the estimation of these components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to each of the underlying projected cash flows based on time until payment. The new estimate provides a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows and their corresponding spot rates. The change does not affect the measurement of the Company’s U.S. and U.K. pension benefit obligations and it is accounted for as a change in accounting estimate, which is applied prospectively.

Under the U.S. qualified retirement plan, participants have a notional retirement account that increases with pay and investment credits. The rate used to determine the investment credit (cash balance crediting rate) varies monthly and is equal to 1/12th of the yield on 30-year U.S. Government Treasury Bonds, with a minimum of 0.25%. At retirement, the account is converted to a monthly retirement benefit.

In selecting an expected return on plan asset assumption, the Company considers the returns being earned by each plan investment category in the fund, the rates of return expected to be available for reinvestment and long-term economic forecasts for the type of investments held by the plan. The expected return on plan assets for the U.S. pension plans was 8.0% at January 1, 2016 and January 1, 2015. Outside the U.S., the range of applicable expected rates of return was 1.0% to 5.5% as of January 1, 2016 compared to 1.0% to 6.0% as of January 1, 2015. The actual return on plan assets will vary from year to year versus this assumption. The Company believes it is appropriate to use long-term expected forecasts in selecting the expected return on plan assets. As such, there can be no assurance that the Company’s actual return on plan assets will approximate the long-term expected forecasts. While the Company believes that the assumptions used are reasonable, differences in actual experience or changes in assumptions may materially affect its pension and postretirement obligations and future expense.

The Company’s estimated long-term rate of return on plan assets is based on the principles of capital market theory which maintain that over the long run, prudent investment risk taking is rewarded with incremental returns and that combining non-correlated assets can maximize risk adjusted portfolio returns. Long-term return estimates are developed by asset category based on actual class return data, historical relationships between asset classes and risk factors and peer plan data. Long-term return estimates for the Company’s U.K. pension plan are developed by asset category based on actual class return data, historical relationships between asset classes and risk factors.

The Company utilizes a corridor approach to amortizing unrecognized gains and losses in the pension and postretirement plans. Amortization occurs when the accumulated unrecognized net gain or loss balance exceeds the criterion of 10% of the larger of the beginning balances of the projected benefit obligation or the market-related value of the plan assets. The excess unrecognized gain or loss balance is then amortized using the straight-line method over the average remaining service-life of active employees expected to receive benefits. At December 31, 2015, the weighted-average remaining service-life of active employees was approximately 25 years.

Additional information on pension and other postretirement benefit plans is contained in Note 8.

Debt fees

Debt fees.  Costs incurred to issue debt are generally deferred and amortized as a component of interest expense over the estimated term of the related debt using the effective interest rate method.

Foreign Currency

Foreign currency.  The Company has significant investments in non-U.S. countries. Therefore, changes in the value of foreign currencies affect the Company’s Consolidated Financial Statements when translated into U.S. Dollars. For all operations outside the U.S. where the Company has designated the local currency as the functional currency, assets and liabilities are translated using end-of-period exchange rates; revenues, expenses and cash flows are translated using average rates of exchange prevailing during the period the transactions occurred. Translation gains and losses are included as an adjustment to the accumulated other comprehensive income (loss) (“AOCI”) component of Shareholders’ Equity. In addition, gains and losses from foreign currency transactions, such as those resulting from the settlement and revaluation of third-party and intercompany foreign receivables and payables, are included in the determination of net income (loss).

For operations in countries that are considered to be highly inflationary or where the U.S. Dollar is designated as the functional currency, monetary assets and liabilities are remeasured using end-of-period exchange rates, whereas non-monetary accounts are remeasured using historical exchange rates, and all remeasurement and transaction adjustments are recognized in Other income (loss), net.

Income Taxes

Income taxes.  The Company operates in more than 100 countries around the world and its earnings are taxed at the applicable income tax rate in each of those countries. The Company provides for income taxes utilizing the asset and liability method of accounting for income taxes. Under this method, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each balance sheet date, based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. If it is determined that it is more likely than not that future tax benefits associated with a deferred tax asset will not be realized, a valuation allowance is provided. In the event the Company was to determine that it would be able to realize its deferred tax assets in the future in excess of its net recorded amount, an adjustment to the deferred tax asset would increase income in the period such determination was made. Likewise, should the Company determine that it would not be able to realize all or part of its net deferred tax asset in the future, an adjustment to the deferred tax asset would be charged to income in the period such determination was made. The effect on deferred tax assets and liabilities of a change in the tax rates is recognized in income in the period that includes the enactment date. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. See Note 11 for additional information.

Stock-based Compensation

Stock-based compensation.  The Company maintains an equity incentive plan, which provides for the grant of stock options (including incentive stock options), stock appreciation rights, restricted and deferred stock (including restricted stock units), dividend equivalents, other stock-based awards and performance awards, including annual incentive awards. The Company is required to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. For performance-based awards, stock-based compensation expense is adjusted over time based on the Company’s assessment of the probability of achieving the financial targets. The value of the portion of the award that is ultimately expected to vest is recognized as expense either on a straight-line basis over the requisite service period of the award or on a graded vesting basis (performance-based awards) in the Company’s Consolidated Statements of Comprehensive Income (Loss). As the stock-based compensation is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. The Company is required to estimate the forfeitures at the time of grant and revise, if necessary, in subsequent periods if actual forfeitures differ from those estimates. See Note 10 for additional information.

Computation of Earnings (Loss) Per Share

Computation of earnings (loss) per share.  Basic earnings (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed, when the result is dilutive, using the weighted-average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares primarily consist of employee stock options and restricted stock units.

Employee equity share options, restricted stock units, performance shares and similar equity instruments granted by the Company are treated as potential common shares outstanding in computing diluted earnings per share. Diluted shares outstanding include restricted stock units and the dilutive effect of in-the-money options which is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of benefits that would be recorded in additional paid-in capital when the award becomes deductible for tax purposes are assumed to be used to repurchase shares.

In periods of net loss, basic loss per share and diluted loss per share are the same since the effect of potential common shares is anti-dilutive and therefore excluded. See Note 17 for additional information.

Treasury Stock

Treasury stock.  The Company records treasury stock purchases under the cost method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid in capital. If the Company reissues treasury stock at an amount below its acquisition cost and additional paid in capital associated with prior treasury stock transactions is insufficient to cover the difference between the acquisition cost and the reissue price, this difference is recorded against retained earnings. See Note 9 for additional information.

Legal Costs

Legal costs.  Legal costs are expensed as incurred.

Reportable Segments

Reportable segments.  The Company’s operations consist of one reportable segment, which represents management’s view of the Company’s operations based on its management and internal reporting structure. See Note 16 for additional information.

Use of Estimates

Use of estimates.  The preparation of financial statements and related disclosures in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and the related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates. The most significant estimates relate to allowances, depreciation of fixed assets including salvage values, carrying value of goodwill and intangible assets, provision for income taxes and tax assets and liabilities, reserves for severance, pensions and reserves for employee benefits, stock-based compensation, contingencies and litigation. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The accounting estimates used in the preparation of the Company’s Consolidated Financial Statements will change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. Actual results could vary from the estimates and assumptions used in the preparation of the Consolidated Financial Statements.

Recently Issued Accounting Standards

Recently Issued Accounting Standards

In November 2015, the Financial Accounting Standards Board (“FASB”) issued guidance on the balance sheet classification of deferred taxes. The guidance requires deferred tax assets and deferred tax liabilities be presented as noncurrent in a classified statement of financial position, instead of separately presenting deferred tax assets and deferred tax liabilities as current and noncurrent. The Company early-adopted the guidance effective December 31, 2015 on a prospective basis, and as such, prior periods were not restated on adoption.

In September 2015, the FASB issued guidance that eliminates the requirement to restate prior period financial statements for measurement period adjustments and requires the cumulative impact of a measurement period adjustment to be recognized in the reporting period in which the adjustment is identified. The guidance will be applied prospectively and is effective for the Company’s interim and annual periods beginning after December 15, 2015. The Company early-adopted the guidance during the fourth quarter ended December 31, 2015 with no material effect on the Consolidated Statement of Comprehensive Income (Loss). See Note 3 for more information regarding measurement period adjustments recorded during the three months ended December 31, 2015.

In May 2014, the FASB issued revised guidance on the recognition of revenue from contracts with customers. The guidance provides that revenue should be recognized for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires enhanced disclosures. In August 2015, the FASB delayed the effective date of the guidance to interim and annual periods beginning January 1, 2018. Earlier adoption is permitted. The Company is currently evaluating the impact of this new standard on its Consolidated Financial Statements, as well as the method of transition that it will use in adopting the new standard.

In May 2015, the FASB updated the accounting standards related to fair value measurement for investments that are measured at net asset value. The update eliminates the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share as a practical expedient. In addition, the update limits disclosures to investments for which the entity elected to measure the fair value using the practical expedient rather than all eligible investments. The update is effective beginning in the first quarter of 2016, with early adoption permitted, and will be applied retrospectively. The standard will only impact disclosures related to certain assets held by its pension plans and will not impact the Company’s consolidated financial results.

In April 2015, the FASB issued guidance to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. Under the new guidance, if a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance is effective for the Company’s interim and annual periods beginning after December 15, 2015. Early adoption is permitted. The Company does not believe the adoption of this guidance will have a material impact on its financial results.

Also in April 2015, the FASB issued guidance on the presentation of debt issuance costs. The guidance requires the presentation of debt issuance costs as a direct deduction from the related debt liability rather than as an asset. In August 2015, the FASB clarified the guidance that debt issuance costs related to line-of-credit arrangements could continue to be presented as an asset and be subsequently amortized over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the arrangement. The guidance is effective for the Company’s interim and annual periods beginning after December 15, 2015 and requires retrospective application to all prior periods presented. The Company adopted the guidance effective December 31, 2015 and presented $51 million and $54 million, respectively, of debt issuance costs as a direct deduction to the debt liability as of December 31, 2015 and 2014. The Company continues to present the unamortized debt issuance costs for its revolving credit facility in Other assets. This change in accounting principle did not have an impact on the Company’s results of operations, cash flows or stockholders’ equity.

In April 2014, the FASB issued guidance which changed the criteria for reporting discontinued operations and modifies the related disclosure requirements. Additionally, the new guidance requires that a business which qualifies as held for sale upon acquisition should be reported as discontinued operations. Adoption of this guidance, which was applied prospectively, on January 1, 2015 did not have a material impact on our Consolidated Financial Statements.

Contingent Consideration

The liabilities are remeasured each reporting period and changes in the fair value estimates are included in Selling and administrative expenses.

Intangible Assets

Intangible assets that have finite useful lives are amortized using the straight-line method over periods ranging from two to twenty years.

Derivatives

The forward contracts entered into for balance sheet risk management purposes are not designated as hedges and are carried at fair value, with changes in the fair value recorded to Other income (loss), net in the Consolidated Statements of Comprehensive Income (Loss).

The forward contracts entered into for Royalty Hedging purposes are designated as hedges and are carried at fair value, with changes in the fair value recorded to Accumulated Other Comprehensive Income (Loss) (“AOCI”). The change in fair value is reclassified from AOCI to earnings in the quarter in which the hedged royalty is paid.

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 would be reclassified from AOCI to earnings upon the sale or substantial liquidation of these net investments

For derivatives designated as hedges, the Company assesses, both at the inception of the hedge and on an ongoing basis, whether the derivatives are highly effective in offsetting changes in fair values or cash flows of hedged items. If it is determined that a derivative ceases to be highly effective as a hedge, the Company will discontinue hedge accounting with respect to that derivative prospectively. When it is probable that a hedged forecasted transaction will not occur, the Company discontinues hedge accounting for the affected portion of the forecasted transaction, and reclassifies gains or losses that were accumulated in AOCI to earnings in Other Income (loss), net for foreign exchange derivatives and interest expense for interest rate derivatives on the Consolidated Statements of Comprehensive Income (Loss). Cash flows are classified consistent with the underlying hedged item.

Changes in the fair value of derivatives that are designated as cash flow hedges are recorded in AOCI to the extent effective and reclassified into earnings in the same period or periods during which the transaction hedged by that derivative also affects earnings

Contingencies

For those matters where management currently believes it is probable that the Company will incur a loss and that the probable loss or range of loss can be reasonably estimated, the Company has recorded reserves in the Consolidated Financial Statements based on its best estimates of such loss. In other instances, because of the uncertainties related to either the probable outcome or the amount or range of loss, management is unable to make a reasonable estimate of a liability, if any. However, even in many instances where the Company has recorded an estimated liability, the Company is unable to predict with certainty the final outcome of the matter or whether resolution of the matter will materially affect the Company’s results of operations, financial position or cash flows. As additional information becomes available, the Company adjusts its assessments and estimates of such liabilities accordingly.

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Acquisitions (Tables)

12 Months Ended

Dec. 31, 2015

Cegedim Acquisition

Business Acquisition [Line Items]

Estimated Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the purchase price allocation to the estimated fair values of the assets acquired and liabilities assumed for the Cegedim acquisition.

(in millions)
Cash	$	89
Accounts receivable		127
Other current assets		23
Property, plant and equipment		16
Goodwill		183
Identifiable intangible assets		190
Other assets		44
Liabilities assumed		(227	)
Total purchase price allocation	$	445

Schedule of Identifiable Intangible Assets and Estimated Useful Lives

Identifiable intangible assets and their estimated useful lives consist of the following:

(in millions)	Useful life	Amount
Client relationships	10-15 years	$	66
Databases	5 years		86
Computer software	2-10 years		26
Trade names	10-15 years		12
Total intangible assets		$	190

Schedule of Pro Forma Information

The following pro forma information presents the financial results as if the acquisition of Cegedim had occurred on January 1, 2014, with pro forma adjustments to give effect to an increase in Selling and administrative expenses for acquisition-related costs, additional depreciation and amortization for fair value adjustments of property, plant and equipment and intangible assets, an increase in interest expense from acquisition financing, and related tax effects. The pro forma results do not include any anticipated cost synergies, costs or other effects of the planned integration of Cegedim. Accordingly, such pro forma amounts are not necessarily indicative of the results that actually would have occurred for the periods presented below had the Cegedim acquisition been completed on January 1, 2014, nor are they indicative of the future operating results of the Company.

	Years Ended December 31,
(in millions)		2015		2014
Revenues	$	3,039	$	3,230
Net income (loss)		418		(473	)
Basic earnings (loss) per share		1.26		(1.48	)
Diluted earnings (loss) per share		1.23		(1.48	)

All Acquisitions Excluding Cegedim Acquisition

Business Acquisition [Line Items]

Schedule of Financial Information Related to Acquisitions

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	December 31,
(in millions)	Period	2015		2014		2013
Total cost of acquisitions, net of cash acquired(1)		$	201	$	61	$	168
Acquisition-related costs			8		3		10
Amounts recorded in the Consolidated Statements of Financial   Position:
Goodwill		$	106	$	31	$	124
Portion of goodwill deductible for tax purposes			35		21		46
Computer software	5 years		15		2		16
Intangible assets:
Client relationships	10-20 years	$	100	$	18	$	24
Covenant not to compete	1-5 years		10		12		7
Databases	1-5 years		4		5		1
Trade names	3-8 years		2		—		5
Total intangible assets		$	116	$	35	$	37

⁽¹⁾ Total cost of acquisitions includes contingent consideration and deferred purchase price payments.

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Goodwill and Identifiable Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2015

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Changes in Goodwill

The following table sets forth changes in the Company’s goodwill for the years ended December 31, 2015 and 2014.

(in millions)	Goodwill
Balance at December 31, 2013	$	3,573
Goodwill assigned in purchase price allocations (see Note 3)		31
Foreign currency translation adjustments and other		(187	)
Balance at December 31, 2014	$	3,417
Goodwill assigned in purchase price allocations (see Note 3)		289
Foreign currency translation adjustments and other		(102	)
Balance at December 31, 2015	$	3,604

Schedule of Intangible Assets

The gross carrying amounts, related accumulated amortization and the weighted average amortization periods of the Company’s intangible assets are listed in the following table:

	December 31, 2015							December 31, 2014
(in millions)	Gross Carrying Amount		Accumulated Amortization			Weighted Average Amortization Period (Years)		Gross Carrying Amount		Accumulated Amortization
Databases	$	738	$	(652	)		1	$	679	$	(639	)
Client relationships		2,181		(714	)		13		2,051		(592	)
Trade names (finite-lived)		151		(46	)		13		142		(38	)
Trade names (indefinite-lived)		503		—		N/A			523		—
Covenants not to compete and other		39		(22	)		2		32		(16	)
Total Intangible Assets	$	3,612	$	(1,434	)		10	$	3,427	$	(1,285	)

Schedule of Amortization Expense Associated With Intangible Assets

Based on current estimated useful lives, amortization expense associated with intangible assets at December 31, 2015 is estimated to be as follows:

	Year Ended December 31,
(in millions)	2016		2017		2018		2019		2020		Thereafter
Amortization expense	$	180	$	167	$	163	$	161	$	120	$	884

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Severance, Impairment and Other Charges (Tables)

12 Months Ended

Dec. 31, 2015

Restructuring And Related Activities [Abstract]

Schedule of Severance Related Reserves

As a result of ongoing cost reduction efforts, the Company recorded severance charges consisting of global workforce reductions to streamline its organization. The following table sets forth the activity in the Company’s severance-related reserves:

(in millions)	2015 Plan(1)			2013 and 2014 Plans(2)
Balance at December 31, 2013	$	—		$	12
Charges		—			22
Cash payments		—			(16	)
Balance at December 31, 2014		—			18
Charges		76			—
Cash payments		(25	)		(14	)
Balance at December 31, 2015	$	51		$	4

⁽¹⁾ In 2015, the Company implemented a restructuring plan (the “2015 Plan”) and recorded pre-tax severance charges of $76 million, $33 million of which was recorded in the fourth quarter of 2015. The Company expects that cash outlays related to the 2015 Plan will be substantially complete by the end of 2017.

⁽²⁾ In December 2013, the Company implemented a restructuring plan (the “2013 Plan”) and recorded a pre-tax severance charge of $12 million. In 2014, the Company implemented a restructuring plan (the “2014 Plan”) and recorded pre-tax severance charges of $22 million, $3 million of which was recorded in the fourth quarter of 2014. The Company expects that cash outlays related to the 2013 and 2014 Plans will be substantially complete by the end of 2016.

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Derivatives and Fair Value (Tables)

12 Months Ended

Dec. 31, 2015

Derivative Instruments And Hedging Activities Disclosures [Line Items]

Schedule of Components of Foreign Exchange Gain (loss)

The following table details the components of foreign exchange gain (loss) included in Other income (loss), net on the Consolidated Statements of Comprehensive Income (Loss):

	Years Ended December 31,
(in millions)	2015		2014			2013
Translation of non-functional currency debt	$	—	$	—		$	(40	)
Revaluation of other non-functional currency assets and liabilities(1)		6		(42	)		(28	)
Effect of derivatives		14		(3	)		9
Total foreign exchange gain (loss)	$	20	$	(45	)	$	(59	)

⁽¹⁾ 2015 and 2014 included charges of $7 million and $49 million, respectively, related to a change in the exchange rate used to remeasure the Company’s Venezuelan Bolívar account balances. Additionally, 2013 included a $14 million charge resulting from devaluation of Venezuelan Bolívars. The charges are further described below in this Note.

Schedule of Fair Value of Derivative Instruments

The fair values of derivative instruments in the Consolidated Statements of Financial Position are as follows:

		December 31, 2015						December 31, 2014
		Fair Value of Derivative				U.S. Dollar Notional		Fair Value of Derivative				U.S. Dollar Notional
(in millions)	Balance Sheet Caption	Asset		Liability				Asset		Liability
Derivatives Designated as Hedging Instruments:
Foreign exchange contracts	Accounts receivable/ Accounts payable	$	4	$	2	$	178	$	18	$	—	$	189
Interest rate caps	Non-Current Assets		4		—		1,000		12		—		1,000
Interest rate swaps	See below(1)		—		10		517		—		12		553
Derivatives not Designated as Hedging Instruments:
Foreign exchange contracts	Accounts receivable/ Accounts payable		3		—		148		—		2		93
Interest rate swaps	See below(1)		—		1		100		—		4		225
Total Derivatives		$	11	$	13			$	30	$	18

⁽¹⁾ $1 million included in Accrued and other current liabilities and $10 million included in Other liabilities at December 31, 2015 and $1 million included in Accrued and other current liabilities and $15 million included in Other liabilities at December 31, 2014 in the Consolidated Statements of Financial Position.

Schedule of Effect of Derivatives on Financial Performance

The effects of derivative instruments in cash flow hedging relationships on the Consolidated Statements of Comprehensive Income (Loss) are as follows:

	Effect of Derivatives on Financial Performance
(in millions)	Amount of Income/(Loss) Recognized in AOCI								Location of Income/(Loss) Reclassified from AOCI into Earnings		Amount of Income/(Loss) Reclassified from AOCI into Earnings
Years Ended December 31,	2015			2014			2013				2015		2014		2013
Foreign exchange contracts	$	7		$	23		$	13		Other income (loss), net	$	24	$	7	$	14
Interest rate derivatives		(6	)		(20	)		—		Interest expense		—		—		—

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables summarize assets and liabilities measured at fair value on a recurring basis at the dates indicated:

	Basis of Fair Value Measurements
	December 31, 2015
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Derivatives	$	—	$	11	$	—	$	11
Total	$	—	$	11	$	—	$	11
Liabilities
Contingent consideration	$	—	$	—	$	28	$	28
Derivatives		—		13		—		13
Total	$	—	$	13	$	28	$	41

	December 31, 2014
	Level 1		Level 2		Level 3		Total
Assets
Derivatives		—		30		—		30
Total	$	—	$	30	$	—	$	30
Liabilities
Contingent consideration	$	—	$	—	$	24	$	24
Derivatives		—		18		—		18
Total	$	—	$	18	$	24	$	42

Schedule of Level 3 Acquisition-Related Contingent Consideration Liabilities Carried at Fair Value on a Recurring Basis

The following table summarizes Level 3 acquisition-related contingent consideration liabilities (see Note 3) carried at fair value on a recurring basis with the use of unobservable inputs for the period indicated.

(in millions)	Contingent Consideration Liabilities
Balance at December 31, 2013	$	65
New acquisitions		3
Cash payments		(28	)
Changes in fair value estimates and foreign currency translation adjustments		(16	)
Balance at December 31, 2014		24
New acquisitions		19
Cash payments		(2	)
Changes in fair value estimates and foreign currency translation adjustments		(13	)
Balance at December 31, 2015	$	28

Not Designated as Hedging Instrument

Derivative Instruments And Hedging Activities Disclosures [Line Items]

Schedule of Effect of Derivatives on Financial Performance

The pre-tax gain (loss) recognized in earnings on derivatives not designated as hedging instruments was as follows:

	Years Ended December 31,
(in millions)	2015			2014			2013
Foreign exchange contracts(1)	$	(10	)	$	(9	)	$	(5	)
Interest rate derivatives(2)		—			(1	)		(1	)
Total derivatives not designated as hedging instruments	$	(10	)	$	(10	)	$	(6	)

⁽¹⁾ Included in Other income (loss), net.

⁽²⁾ Included in interest expense.

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Debt (Tables)

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Schedule of Debt

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

	December 31,
(in millions)	2015			2014
Senior Secured Credit Facilities:
Senior Secured Term A Loan due 2019—USD LIBOR at average floating rates of 2.86%	$	484		$	307
Senior Secured Term A Loan due 2019—EUR LIBOR at average floating rates of 2.25%		135			158
Senior Secured Term B Loan due 2021—USD LIBOR at average floating rates of 3.50%		1,717			1,735
Senior Secured Term B Loan due 2021—EUR LIBOR at average floating rates of 3.75%		802			901
Revolving Credit Facility due 2019:
U.S. Dollar denominated borrowings—USD LIBOR at average floating rates of 2.79%		328			215
4.125% Senior Notes due 2023 - Euro denominated		300			—
6.00% Senior Notes due 2020  - U.S. Dollar denominated		500			500
Principal Amount of Debt		4,266			3,816
Less: Debt Issuance Costs and Unamortized Discounts		(71	)		(77	)
Total Debt	$	4,195		$	3,739

Schedule of Maturities of Long-Term Debt

Scheduled principal payments due on the Company’s debt as of December 31, 2015 were as follows:

	Year Ended December 31,
(in millions)	2016		2017		2018		2019		2020		Thereafter		Total
Debt	$	59	$	72	$	88	$	830	$	526	$	2,691	$	4,266

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Pension and Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2015

Compensation And Retirement Disclosure [Abstract]

Reconciliation of Benefit Obligations, Plan Assets and Funded Status

The following tables summarize changes in the benefit obligation, the plan assets and the funded status of the Company’s pension and postretirement benefit plans as well as the components of net periodic benefit costs, including key assumptions.

	Pension Benefits
	U.S. Plans						Non-U.S. Plans
	Years Ended December 31,
(in millions)	2015			2014			2015			2014
Obligation and Funded Status:
Change in benefit obligation
Benefit obligation at beginning of year	$	291		$	249		$	305		$	247
Service cost		12			10			8			6
Interest cost		11			12			10			11
Foreign currency exchange adjustment		—			—			(14	)		(17	)
Actuarial loss (gain)		(22	)		28			(3	)		29
Benefits paid		(8	)		(8	)		(11	)		(9	)
Settlements and other		—			—			(1	)		(3	)
Acquisition(1)		—			—			24			—
Plan adoption(2)		—			—			—			41
Benefit obligation at end of year	$	284		$	291		$	318		$	305
Change in plan assets
Fair value of plan assets at beginning of year	$	295		$	274		$	283		$	234
Actual return on assets		(2	)		26			8			33
Foreign currency exchange adjustment		—			—			(12	)		(15	)
Employer contributions		4			3			7			14
Benefits paid		(8	)		(8	)		(11	)		(9	)
Settlements and other		—			—			—			(3	)
Acquisition(1)		—			—			2			—
Plan adoption(2)		—			—			—			29
Fair value of plan assets at end of year	$	289		$	295		$	277		$	283
Funded status	$	5		$	4		$	(41	)	$	(22	)
Amounts recognized in the Consolidated Statements of Financial Position:
Other assets	$	46		$	48		$	7		$	8
Accrued and other current liabilities		(2	)		(2	)		(2	)		(1	)
Postretirement and postemployment benefits liability		(39	)		(42	)		(46	)		(29	)
Net amount recognized	$	5		$	4		$	(41	)	$	(22	)
Accumulated benefit obligation	$	281		$	287		$	305		$	298

⁽¹⁾ Represents defined benefit plans acquired in the Cegedim acquisition.

⁽²⁾ Represents the conversion of a non-U.S. plan from a defined contribution plan to a defined benefit plan as of December 31, 2014.

	Other Benefits
	Years Ended December 31,
(in millions)	2015			2014
Obligation and Funded Status:
Change in benefit obligation
Benefit obligation at beginning of year	$	5		$	6
Actuarial loss (gain)		1			(1	)
Benefits paid (net of Medicare subsidy)		(1	)		—
Benefit obligation at end of year	$	5		$	5
Change in plan assets
Fair value of plan assets at beginning of year	$	—		$	—
Employer contributions		1			—
Benefits paid (net of Medicare subsidy)		(1	)		—
Fair value of plan assets at end of year	$	—		$	—
Funded status	$	(5	)	$	(5	)
Amounts recognized in the Consolidated Statements of Financial Position:
Accrued and other current liabilities	$	(1	)	$	(1	)
Postretirement and postemployment benefits liability		(4	)		(4	)
Net amount recognized	$	(5	)	$	(5	)

Accumulated and Projected Benefit Obligation in Excess of Plan Assets

The following table provides the information for pension plans with an accumulated benefit obligation in excess of plan assets and projected benefit obligations in excess of plan assets.

	Pension Benefits
	U.S. Plans				Non-U.S. Plans
	Years Ended December 31,
(in millions)	2015		2014		2015		2014
Plans with accumulated benefit obligation in excess of plan assets:
Projected benefit obligation	$	43	$	46	$	86	$	62
Accumulated benefit obligation		42		45		75		54
Fair value of plan assets		2		1		38		35
Plans with projected benefit obligation in excess of plan assets:
Projected benefit obligation	$	43	$	46	$	86	$	63
Fair value of plan assets		2		1		38		37

Schedule of Amounts Recognized in AOCI for Pension and Other Benefits

The amounts recognized in AOCI for pension and other benefits at December 31 consisted of:

	Pension Benefits								Other Benefits
(in millions)	U.S. Plans				Non-U.S. Plans
	2015		2014		2015		2014		2015			2014
Net actuarial loss	$	13	$	12	$	37	$	38	$	1		$	1
Unrecognized initial obligation		—		—		—		13		—			—
Prior service cost (credit)		—		—		10		—		(3	)		(4	)
Total		13		12		47		51		(2	)		(3	)

Components of Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss

The components of net periodic benefit cost and other changes in plan assets and benefit obligations recognized in Other Comprehensive Income (Loss) were as follows:

	Pension Benefits – U.S. Plans									Pension Benefits – Non-U.S. Plans
	Years Ended December 31,
(in millions)	2015			2014			2013			2015			2014			2013
Service cost	$	12		$	10		$	10		$	8		$	6		$	5
Interest cost		11			12			9			10			11			9
Expected return on plan assets		(22	)		(20	)		(18	)		(13	)		(13	)		(10	)
Amortization of prior service cost (credit)		—			—			—			1			—			—
Amortization of loss		1			—			1			1			1			—
Net periodic benefit cost	$	2		$	2		$	2		$	7		$	5		$	4
Other changes in plan assets and benefit obligations recognized in other comprehensive loss:
Actuarial loss (gain) – current years	$	2		$	22		$	(41	)	$	2		$	8		$	8
Prior service (cost) credit – current years		—			—			—			(1	)		—			—
Transition obligation		—			—			—			—			13			—
Amortization of prior service (cost) credit		—			—			—			(1	)		—			—
Amortization of actuarial loss		(1	)		—			(1	)		(1	)		(1	)		—
Total recognized in other comprehensive loss	$	1		$	22		$	(42	)	$	(1	)	$	20		$	8
Total recognized in net periodic benefit cost and other comprehensive loss	$	3		$	24		$	(40	)	$	6		$	25		$	12

	Other Benefits
	Years Ended December 31,
(in millions)	2015			2014			2013
Amortization of prior service cost (credit)	$	(1	)	$	(1	)	$	—
Net periodic benefit cost	$	(1	)	$	(1	)	$	—
Other changes in plan assets and benefit obligations recognized in other comprehensive loss:
Actuarial loss (gain) – current years	$	—		$	—		$	(1	)
Prior service (cost) credit – current years		—			—			(5	)
Amortization of prior service (cost) credit		1			1			—
Total recognized in other comprehensive loss	$	1		$	1		$	(6	)
Total recognized in net periodic benefit cost and other comprehensive loss	$	—		$	—		$	(6	)

Schedule of Amounts in AOCI that are Expected to be Recognized as Components of Net Periodic Benefit Cost (Credit) During 2016

The amounts in AOCI that are expected to be recognized as components of net periodic benefit cost (credit) during 2016 are as follows:

	Pension Benefits
(in millions)	U.S. Plans		Non-U.S. Plans				Other Benefits	Total
Net actuarial loss	$	—	$	(1	)	$	—	$	(1	)
Prior service credit		—		—			1		1
Total	$	—	$	(1	)	$	1	$	—

Schedule of Weighted Average Assumptions Used to Determine Benefit Obligation and Net Periodic Benefit Cost

	Pension Benefits												Other Benefits
Weighted Average Assumptions Used to Determine Benefit Obligations at December 31,	U.S. Plans						Non-U.S. Plans
	2015			2014			2015			2014			2015			2014
Discount rate		4.48	%		3.87	%		3.16	%		3.30	%		3.00	%		2.60	%
Rate of compensation increase		3.00	%		3.00	%		2.40	%		1.94	%		N/A			N/A

	Pension Benefits																		Other Benefits
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for the Years Ended December 31,	U.S. Plans									Non-U.S. Plans
	2015			2014			2013			2015			2014			2013			2015			2014			2013
Discount rate		3.87	%		4.66	%		3.80	%		3.30	%		4.37	%		4.44	%		2.60	%		2.90	%		3.80	%
Expected long-term return on plan assets		7.96	%		7.97	%		8.00	%		5.02	%		5.39	%		6.30	%		N/A			N/A			N/A
Rate of compensation increase		3.00	%		3.00	%		3.00	%		1.94	%		1.98	%		1.85	%		N/A			N/A			N/A

Schedule of Assumed Health Care Cost Trend Rates

	At December 31,
Assumed Health Care Cost Trend Rates	2015			2014			2013
Health care cost trend rate assumed for next year		7.50	%		7.50	%		7.50	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		5.0	%		5.0	%		5.0	%
Year that the rate reaches the ultimate trend rate		2021			2019			2019

Schedule of Pension Plan Weighted Average Asset Allocations and Target Asset Allocation

The Company’s pension plan weighted average asset allocations at December 31, 2015 and 2014, by asset category, follows:

	Plan Assets at December 31,
Asset Category	U.S. Plans						Non-U.S. Plans						Total
	2015			2014			2015			2014			2015			2014
Equity securities		70	%		70	%		35	%		35	%		53	%		53	%
Debt securities		25			25			42			43			33			34
Real estate		5			5			9			8			7			6
Other		—			—			14			14			7			7
Total		100	%		100	%		100	%		100	%		100	%		100	%

The target asset allocation for the Company’s pension plans is as follows:

Asset Category	U.S. Plans			Non-U.S. Plans			Total
Equity securities		60-80	%		30-45	%		45-65	%
Debt securities		20-30			35-50			30-40
Real estate		0-10			0-10			0-10
Other		—			10-20			0-10

Schedule of Fair Value Hierarchy for Pension Assets

The following tables summarize plan assets measured at fair value on the dates indicated:

	Fair Value Measurements
	December 31, 2015
(in millions)	Level 1		Level 2		Level 3		Total
Asset Category – U.S. Plans
Investment Funds
Domestic equities(1)	$	27	$	132	$	—	$	159
International equities(2)		18		27		—		45
Debt issued by national, state or local government(3)		—		12		—		12
Corporate bonds(4)		42		16		—		58
Real estate(5)		15		—		—		15
Total assets	$	102	$	187	$	—	$	289

	December 31, 2015
(in millions)	Level 1		Level 2		Level 3		Total
Asset Category – Non-U.S. Plans
Investment Funds
International equities(2)	$	—	$	97	$	—	$	97
Debt issued by national, state or local government(3)		2		69		—		71
Corporate bonds(4)		—		46		—		46
Real estate(5)		—		—		24		24
Investment funds(6)		—		7		—		7
Insurance contracts(7)		—		32		—		32
Total assets	$	2	$	251	$	24	$	277

	Fair Value Measurements
	December 31, 2014
(in millions)	Level 1		Level 2		Level 3		Total
Asset Category – U.S. Plans
Investment Funds
Domestic equities(1)	$	28	$	133	$	—	$	161
International equities(2)		18		27		—		45
Debt issued by national, state or local government(3)		—		13		—		13
Corporate bonds(4)		44		17		—		61
Real estate(5)		15		—		—		15
Total assets	$	105	$	190	$	—	$	295

	December 31, 2014
(in millions)	Level 1		Level 2		Level 3		Total
Asset Category – Non-U.S. Plans
Investment Funds
International equities(2)	$	—	$	100	$	—	$	100
Debt issued by national, state or local government(3)		2		76		—		78
Corporate bonds(4)		—		48		—		48
Real estate(5)		—		—		22		22
Investment funds(6)		—		6		—		6
Insurance contracts(7)		—		29		—		29
Total assets	$	2	$	259	$	22	$	283

⁽¹⁾ Comprises actively managed mutual funds, passively managed collective trusts and pooled funds investing primarily in companies with market capitalizations similar to that of the S&P 500, S&P Small Cap 600, Russell 1000 and Russell 2000 indexes. The collective trusts do not participate in securities lending.

⁽²⁾ Comprises actively managed mutual funds, passively managed collective trust fund and pooled funds investing primarily in companies in non-U.S. countries and non-U.S. developed market countries similar to that of the Morgan Stanley Capital International EAFE index. The collective trust does not participate in securities lending.

⁽³⁾ Comprises passively managed pooled funds primarily invested in debt instruments from non-U.S. national state or local Governments.

⁽⁴⁾ Comprises actively managed mutual funds, passively managed collective trust fund and pooled funds investing primarily in a diversified portfolio of investment grade U.S. and non-U.S. fixed income securities. The collective trust does not participate in securities lending.

⁽⁵⁾ Comprises an actively managed mutual fund and an actively managed pooled fund which primarily invests in real estate, including but not limited to offices, retail warehouses and shopping centers.

⁽⁶⁾ Comprises an actively managed investment fund which primarily invests in term deposit instruments offering a guaranteed investment return.

⁽⁷⁾ Assets are invested in a collective foundation through an insurance company which guarantees a minimum investment return.

Schedule of Fair Value Measurements Using Significant Unobservable Inputs

Investments in mutual funds are valued at quoted market prices. Investments in common/collective trusts and pooled funds are valued at the net asset value (“NAV”) as reported by the trust. The NAV is based on the fair value of the underlying investments held by the fund less its liabilities. Insurance contracts are valued at the amount of the benefit liability. Level 3 real estate assets, which consist of an international property fund, directly invests in properties that rely on unobservable inputs to measure the fair value.

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in millions)	2015(1)			2014(1)
Beginning balance	$	22		$	20
Actual return on plan assets – assets held at end of year		3			3
Purchases, sales and settlements		(1	)		(1	)
Ending balance	$	24		$	22

⁽¹⁾ All amounts relate to property.

Schedule of Benefit Payments Expected to be Paid

Estimated future benefit payments and subsidy receipts.  The following benefit payments (net of expected participant contributions) are expected to be paid as follows:

	Year Ended December 31,
(in millions)	2016		2017		2018		2019		2020		2021-2025
Pension benefits	$	19	$	19	$	20	$	22	$	23	$	144
Other benefits		1		1		1		1		1		1

Summary of Information Related to Unfunded Plans

Information related to these unfunded plans is as follows:

	Obligation				(Income) Expense							Discount Rate used to Measure Obligation
	December 31,				Years Ended December 31,							December 31,
(in millions)	2015		2014		2015		2014			2013		2015			2014
Deferred compensation plan	$	1	$	1	$	—	$	—		$	—		4.2	%		3.9	%
Postretirement benefits plan		11		9		1		(1	)		2		4.4	%		3.9	%

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Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2015

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Weighted Average Assumptions Used to Compute the Weighted Average Fair Value of Stock Option Grants

The following table summarizes the weighted average assumptions used to measure fair value:

	2015			2014			2013
Dividend yield(1)		0.0	%		0.0	%		0.0	%
Weighted average volatility(2)		33.9	%		26.4	%		26.7	%
Risk free interest rate(3)		1.70	%		1.68	%		1.19	%
Expected term(4)	6.50 years			5.50 years			5.50 years
Weighted average fair value of options granted	$	9.34		$	5.44		$	4.89

⁽¹⁾ The dividend yield of 0.0% is used because no recurring dividends have been authorized and the Company does not expect to pay cash dividends in the foreseeable future. An increase in the dividend yield will decrease stock compensation expense.

⁽²⁾  The weighted average volatility was developed using the historical volatility of several peer companies to IMS Health Holdings, Inc. for periods equal to the expected life of the grant. An increase in the weighted average volatility assumption will increase stock compensation expense.

⁽³⁾  The risk-free interest rate was developed using the U.S. Treasury yield curve for periods equal to the expected life of the options and SARs on the grant date. An increase in the risk-free interest rate will increase stock compensation expense.

⁽⁴⁾ The expected term was estimated for the 2015 grant of SARs based on the awards’ vesting period and contractual term. An increase in the expected holding period will increase stock compensation expense.

Summary of Components and Classification of Stock-based Compensation Expense

The following table summarizes the components and classification of stock-based compensation expense for the periods indicated:

	Years Ended December 31,
(in millions)	2015		2014		2013
Stock options and SARs	$	13	$	51	$	21
Performance shares		5		—		—
Restricted stock and RSUs		7		7		1
Total stock-based compensation expense	$	25	$	58	$	22
Operating costs of information, exclusive of depreciation and amortization	$	2	$	6	$	3
Direct and incremental costs of technology services, exclusive of depreciation and amortization		2		5		2
Selling and administrative expenses, exclusive of depreciation and amortization		21		47		17
Total stock-based compensation expense	$	25	$	58	$	22
Tax benefit on stock-based compensation expense	$	8	$	19	$	7

Summary of Stock Appreciation Rights SARs

The following table summarizes activity of SARs for the periods indicated:

(in millions)	Shares			Weighted Average Exercise Price		Weighted Average Remaining Term (Years)		Aggregate Intrinsic Value
SARs outstanding, December 31, 2014		0.5		$	2.50		1.30	$	13
Granted		1.7			25.14
Exercises		(0.4	)		2.50
Forfeitures		(0.2	)		25.08
SARs outstanding, December 31, 2015		1.6			22.72		5.50	$	5
SARs vested or expected to vest, December 31, 2015		1.6		$	22.72		5.50	$	5
SARs exercisable, December 31, 2015		0.2			2.50		0.30		4

Summary of Cash Proceeds and Intrinsic Value Related to Total Stock Options Exercised

Cash proceeds and intrinsic value related to total stock options and SARs exercised during 2015, 2014 and 2013, were as follows:

	Years Ended December 31,
(in millions)	2015		2014		2013
Proceeds received from the exercise of service based stock options	$	17	$	9	$	—
Intrinsic value of service based stock options and SARs exercised		90		27		1
Proceeds received from the exercise of performance based stock options	$	10	$	8	$	—
Intrinsic value of performance based stock options exercised		43		31		—

Summary of Activity of Performance Share Units

The following table summarizes activity of the performance shares for the periods indicated:

(in millions)	Shares			Weighted-Average Grant-Date Fair Value
Performance shares outstanding, December 31, 2014		—		$	—
Granted		0.6			25.13
Forfeitures		(0.1	)		25.08
Performance shares outstanding, December 31, 2015		0.5		$	25.14

Summary of Activity of Restricted Stock and RUSs

The following table summarizes activity of restricted stock and RSUs for the periods indicated:

(in millions)	Shares/Units			Weighted-Average Grant-Date Fair Value
Restricted stock and RSUs outstanding, December 31, 2014		1.4		$	19.55
Granted		1.0			27.47
Forfeitures		(0.1	)		19.50
Restricted stock and RSUs outstanding, December 31, 2015		2.3		$	22.76

Summary of Fair Value for Restricted Stock and Restricted Stock Units with Service Conditions

Fair value for restricted stock and RSUs with service conditions was as follows:

	Years Ended December 31,
(in millions)	2015		2014		2013
Fair value of restricted stock and RSUs which vested during the year	$	—	$	2	$	2
Fair value of restricted stock and RSUs outstanding		59		37		1

Service-Based Stock Options

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Stock Options Activity

The following table summarizes activity of stock options with service conditions for the periods indicated:

(in millions)	Shares			Weighted Average Exercise Price		Weighted Average Remaining Term (Years)		Aggregate Intrinsic Value
Options outstanding, December 31, 2014		10.2		$	7.97		5.87	$	180
Exercises		(3.2	)		5.24
Forfeitures		(0.1	)		9.95
Options outstanding, December 31, 2015		6.9			9.19		5.06	$	138
Options vested or expected to vest, December 31, 2015		6.8		$	9.17		5.02	$	136
Options exercisable, December 31, 2015		3.7			10.73		4.83		80

Performance-Based Stock Options

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Stock Options Activity

The following table summarizes activity of stock options with performance conditions for the periods indicated:

(in millions)	Shares			Weighted Average Exercise Price		Weighted Average Remaining Term (Years)		Aggregate Intrinsic Value
Options outstanding, December 31, 2014		5.3		$	6.69		5.95	$	101
Exercises		(1.7	)		5.76
Forfeitures		(0.1	)		9.81
Options outstanding, December 31, 2015		3.5			7.07		5.13	$	72
Options vested or expected to vest, December 31, 2015		3.4		$	8.21		5.08	$	71
Options exercisable, December 31, 2015		1.8			8.43		4.87		38

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) Before Income Taxes

Income (loss) before income taxes consisted of:

	Years Ended December 31,
(in millions)	2015			2014			2013
U.S.	$	(61	)	$	(455	)	$	(240	)
Non-U.S.		278			170			192
Total	$	217		$	(285	)	$	(48	)

Schedule of Provision for (Benefit from) Income Taxes

Provision for (benefit from) income taxes consisted of:

	Years Ended December 31,
(in millions)	2015			2014			2013
U.S. Federal and State:
Current	$	7		$	—		$	6
Deferred		(269	)		(141	)		(178	)
	$	(262	)	$	(141	)	$	(172	)
Non-U.S.:
Current	$	85		$	85		$	66
Deferred		(23	)		(40	)		(24	)
	$	62		$	45		$	42
Total	$	(200	)	$	(96	)	$	(130	)

Effective Tax Rate Reconciliation

The following table summarizes the significant differences between the U.S. Federal statutory taxes and the Company’s provision (benefit) for income taxes for consolidated financial statement purposes.

	Years Ended December 31,
	2015			2014			2013
Tax expense (benefit) at statutory rate		35	%		(35	)%		(35	)%
State and local income taxes, net of Federal tax benefit		4			(1	)		(21	)
Impact of Non-U.S. tax rates and credit		(5	)		8			(21	)
Impact of tax rate changes		(3	)		1			(12	)
Restructuring effect on deferred tax liability		—			(2	)		(178	)
Impact of change in assertion related to unremitted earnings		(118	)		—			—
Contract/statute of limitations expirations		(2	)		(2	)		(10	)
Reserves for uncertain tax positions		2			3			20
Audit settlements		(1	)		(4	)		(12	)
Other, net		(4	)		(2	)		—
Total tax benefit		(92	)%		(34	)%		(269	)%

Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Years Ended December 31,
(in millions)	2015			2014			2013
Gross unrecognized tax benefits at beginning of year	$	30		$	42		$	42
Gross (decreases) increases – prior period positions		—			(10	)		—
Gross increases – current period positions		4			5			11
Increases (decreases) – settlement with tax authorities		—			—			(7	)
Reductions – lapse of statute of limitations		(3	)		(4	)		(4	)
Other		1			(3	)		—
Gross unrecognized tax benefits at end of year	$	32		$	30		$	42

Schedule of Deferred Tax Assets (Liabilities)

The Company’s deferred tax assets (liabilities) are comprised of the following at December 31:

	At December 31,
(in millions)	2015			2014
Deferred Tax Assets:
Net operating losses	$	265		$	211
Foreign tax credits		145			127
Employment benefits		18			14
Deferred revenues		20			14
Equity compensation		34			36
Postemployment benefits		17			8
Non-U.S. intangibles		2			5
Accrued liabilities		10			11
Other		61			50
		572			476
Valuation allowance		(101	)		(66	)
Total deferred tax assets	$	471		$	410
Deferred Tax Liabilities:
Intangible assets	$	(660	)	$	(711	)
Undistributed earnings		(12	)		(266	)
Computer software		(159	)		(118	)
Depreciation		(10	)		(11	)
Foreign exchange		(117	)		(50	)
Other		(24	)		(55	)
Total deferred tax liabilities	$	(982	)	$	(1,211	)
Net Deferred Tax Liability	$	(511	)	$	(801	)

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Commitments (Tables)

12 Months Ended

Dec. 31, 2015

Commitments And Contingencies Disclosure [Abstract]

Schedule of Minimum Annual Payment Under Contractual Obligations

The Company’s contractual obligations include facility leases, agreements to purchase data and telecommunications services, and computer and other leases. At December 31, 2015, the minimum annual payment under these agreements and other contracts that have initial or remaining non-cancelable terms in excess of one year are as listed in the following table:

(in millions)	2016		2017		2018		2019		2020		Thereafter		Total
Operating leases(1)	$	66	$	52	$	41	$	31	$	29	$	51	$	270
Data acquisition and telecommunication services(2)		253		143		62		48		37		9		552
Computer and other leases(3)		23		16		10		7		3		—		59
Total	$	342	$	211	$	113	$	86	$	69	$	60	$	881

⁽¹⁾ Rental expense under real estate operating leases for the years ended 2015, 2014 and 2013 were $70 million, $51 million and $49 million, respectively.

⁽²⁾ Expense under data acquisition and telecommunications long-term contracts for the years ended 2015, 2014 and 2013 were $263 million, $221 million and $215 million, respectively.

⁽³⁾ Rental expense under computer and other leases for the years ended 2015, 2014 and 2013 were $26 million, $28 million and $25 million, respectively. These leases are frequently renegotiated or otherwise changed as advancements in computer technology produce opportunities to lower costs and improve performance.

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Supplemental Financial Data (Tables)

12 Months Ended

Dec. 31, 2015

Statement Of Financial Position [Abstract]

Schedule of Accounts Receivable, Net

	December 31,
(in millions)	2015			2014
Accounts Receivable, net:
Trade	$	460		$	296
Allowances		(9	)		(5	)
Unbilled receivables		57			39
Accounts receivable, net	$	508		$	330

Schedule of Other Current Assets

	December 31,
(in millions)	2015		2014
Other Current Assets:
Deferred income taxes	$	—	$	105
Prepaid expenses		71		59
Work-in-process inventory		59		49
Income taxes receivable		10		4
Restricted cash		10		24
Other		38		53
Other current assets	$	188	$	294

Schedule of Property, Plant and Equipment, Net

	Estimated	December 31,
(in millions)	Useful Lives	2015			2014
Property, Plant and Equipment, net:
Buildings and improvements	40 - 50 years	$	53		$	54
Machinery and equipment	3 - 15 years		209			189
Leasehold improvements	1 - 11 years		48			43
Construction-in-progress			4			5
Property, plant and equipment, gross			314			291
Accumulated depreciation and amortization			(147	)		(138	)
Property, plant and equipment, net		$	167		$	153

Schedule of Computer Software, Net

(in millions)
Computer Software, net:
December 31, 2013	$	263
Additions at cost		95
Acquisitions		2
Amortization		(103	)
Impairments, foreign exchange and other		1
December 31, 2014		258
Additions at cost		131
Acquisitions		41
Amortization		(117	)
Impairments, foreign exchange and other		(4	)
December 31, 2015	$	309

Schedule of Other Assets

	December 31,
(in millions)	2015		2014
Other Assets:
Long-term pension assets	$	53	$	57
Securities and other investments		11		3
Long-term deferred tax asset		15		7
Other		30		45
Other assets	$	109	$	112

Schedule of Accounts Payable

	December 31,
(in millions)	2015		2014
Accounts Payable:
Trade	$	53	$	25
Taxes other than income taxes		94		58
Other		16		4
Accounts payable	$	163	$	87

Schedule of Accrued and Other Current Liabilities

	December 31,
(in millions)	2015		2014
Accrued and Other Current Liabilities:
Salaries, wages, bonuses and other compensation	$	165	$	171
Accrued data acquisition costs		81		86
Accrued interest		18		17
Accrued professional fees		48		35
Accrued income taxes		36		42
Deferred tax liability		—		9
Accrued severance and other costs		56		21
Contingent consideration liability		16		18
Accrued loyalty (1)		99		—
Other		92		82
Accrued and other current liabilities	$	611	$	481

⁽¹⁾ The Company owns businesses that manage co-pay reimbursements on behalf of its pharmaceutical customers. These customers prefund the reimbursements, and the Company includes this cash on its balance sheet. The Company draws on this cash to pay pharmacies as consumers use these programs.

Schedule of Other Noncurrent Liabilities

	December 31,
(in millions)	2015		2014
Other Liabilities:
Long-term uncertain tax benefits reserve	$	19	$	19
Contingent consideration liability		12		6
Other		52		56
Other liabilities	$	83	$	81

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Operations by Business Segment (Tables)

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Schedule of Geographic Information for Operating Regions

The following represents selected geographic information for the regions in which the Company operates.

(in millions)	Americas(1)		EMEA(2)		Asia Pacific(3)		Corporate & Other			Total
As of or For the Years Ended December 31,
2015
Revenue(4)	$	1,326	$	1,157	$	438	$	-		$	2,921
Operating income (loss)(5)		222		215		117		(190	)		364
Total assets		4,144		2,200		1,112		3			7,459
2014
Revenue(4)	$	1,205	$	1,007	$	429	$	-		$	2,641
Operating income (loss)(5)		283		276		134		(485	)		208
Total assets		3,833		2,035		1,112		116			7,096
2013
Revenue(4)	$	1,160	$	951	$	433	$	-		$	2,544
Operating income (loss)(5)		297		276		147		(366	)		354
Total assets		4,065		2,450		1,266		127			7,908

 In April 2015, the Company realigned its regional reporting so that India, Sri Lanka and Bangladesh are included in EMEA. Previously, these countries had been included in the Asia Pacific region. Additionally in 2015, the Company made changes to its geographic reporting classifications to move some functions out of Corporate and Other and into the regions. As a result of these changes, reclassifications of prior years’ geographic financial information were made to conform to the current year presentation. The reclassifications did not change previously reported Consolidated Results of Operations.

⁽¹⁾ Americas includes the United States, Canada and Latin America. Revenue in the United States was $1,127 million, $986 million and $935 million for the years ended December 31, 2015, 2014 and 2013, respectively. Total U.S. assets were $4,046 million, $3,659 million and $3,837 million at December 31, 2015, 2014 and 2013, respectively.

⁽²⁾ EMEA includes countries in Europe, the Middle East and Africa, and the countries of India, Sri Lanka and Bangladesh.

⁽³⁾ Asia Pacific includes Japan, Australia and other countries in the Asia Pacific region, excluding India, Sri Lanka and Bangladesh. Revenue in Japan was $245 million, $252 million and $261 million for the years ended December 31, 2015, 2014 and 2013, respectively.

⁽⁴⁾ Revenue relates to external clients and is primarily based on the location of the client. Revenue for the geographic regions includes the impact of foreign exchange in converting results into U.S. Dollars.

⁽⁵⁾ Operating income (loss) for the three geographic regions does not reflect the allocation of certain expenses that are maintained in Corporate and Other and as such, is not a true measure of the respective regions’ profitability. The Operating income (loss) amounts for the geographic regions include the impact of foreign exchange in converting results into U.S. Dollars. The following presents the depreciation and amortization for certain intangible assets recorded in connection with a merger transaction completed in 2010 by region that are included in Corporate and Other:

(in millions)	Americas		EMEA		Asia Pacific
For the Years Ended December 31,
2015	$	83	$	26	$	24
2014		126		86		39
2013		126		87		42

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Earnings (Loss) per Share (Tables)

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Composition of Basic and Diluted Weighted Average Shares Outstanding

The following table presents the composition of basic and diluted weighted average shares outstanding:

	Years Ended December 31,
(Shares in millions)	2015		2014		2013
Basic weighted-average common shares outstanding		331.0		319.0		280.0
Effect of dilutive stock-based awards		8.3		—		7.0
Diluted weighted-average common shares outstanding		339.3		319.0		287.0
Shares excluded from computation of diluted (loss) earnings per share:
Weighted average potential common shares excluded from computation due to anti-dilutive effect		1.6		18.7		—

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Business and Basis Presentation - Additional Information (Detail) $ in Millions	1 Months Ended	12 Months Ended
	Apr. 30, 2014 USD ($)	Dec. 31, 2015 USD ($) Country	Dec. 31, 2014 USD ($)	Feb. 26, 2010
Business And Basis Of Presentation [Line Items]
Proceeds from issuance of common stock after underwriting discounts, commission and related expenses	$ 987		$ 987
Principal amount of debt		$ 4,266	3,816
IPO
Business And Basis Of Presentation [Line Items]
Underwriting discounts, commissions and related expenses	53
Cash	400
One-time fee paid to terminate management services agreement	72		$ 72
IPO | 2010 Equity Incentive Plan | Phantom SARs
Business And Basis Of Presentation [Line Items]
Cash paid to stock appreciation right holders	$ 30
IPO | 12.5% Senior Notes due 2018
Business And Basis Of Presentation [Line Items]
Debt instrument, interest rate	12.50%
IPO | New Term Loans
Business And Basis Of Presentation [Line Items]
Principal amount of debt	$ 500
IPO | Revolving Credit Facility
Business And Basis Of Presentation [Line Items]
Borrowings under line of credit	$ 140
IMS Health Incorporated
Business And Basis Of Presentation [Line Items]
Percentage of outstanding shares				100.00%
Minimum
Business And Basis Of Presentation [Line Items]
Number of countries in which the company transacts business | Country		100
Outside United States | Geographic Concentration Risk | Revenue
Business And Basis Of Presentation [Line Items]
Percentage of revenue generated from outside the United States		61.00%

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Summary of Significant Accounting Policies - Additional Information (Detail)			12 Months Ended
	Jan. 01, 2016	Jan. 01, 2015	Dec. 31, 2015 USD ($) Country Segment	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Schedule Of Significant Accounting Policies [Line Items]
Maturity period of highly liquid investment			90 days
Goodwill impairment charges			$ 0	$ 0	$ 0
Investment credit minimum percentage			0.25%
Weighted-average remaining service-life of active employees			25 years
Number of reportable segments | Segment			1
Debt issuance cost direct deduction from debt liability			$ 51,000,000	$ 54,000,000
US and UK Pension Plans
Schedule Of Significant Accounting Policies [Line Items]
Percentage of consolidated benefit obligation			90.00%
Non-U.S. Plans
Schedule Of Significant Accounting Policies [Line Items]
Discount rate			3.16%	3.30%
Expected return on plan assets			5.02%	5.39%	6.30%
UK
Schedule Of Significant Accounting Policies [Line Items]
Discount rate			3.89%	3.80%
US Pension Plans
Schedule Of Significant Accounting Policies [Line Items]
Expected return on plan assets		8.00%
US Pension Plans | Subsequent Event
Schedule Of Significant Accounting Policies [Line Items]
Expected return on plan assets	8.00%
Minimum
Schedule Of Significant Accounting Policies [Line Items]
Amortized period of capitalized computer software			3 years
Number of countries in which the company transacts business | Country			100
Minimum | Non-US and Non-UK Plans
Schedule Of Significant Accounting Policies [Line Items]
Discount rate			0.60%	0.50%
Minimum | Non-U.S. Plans
Schedule Of Significant Accounting Policies [Line Items]
Expected return on plan assets		1.00%
Minimum | Non-U.S. Plans | Subsequent Event
Schedule Of Significant Accounting Policies [Line Items]
Expected return on plan assets	1.00%
Minimum | US Pension Plans | Postretirement Benefit Plan
Schedule Of Significant Accounting Policies [Line Items]
Discount rate			3.00%	2.60%
Maximum
Schedule Of Significant Accounting Policies [Line Items]
Amortized period of capitalized computer software			15 years
Maximum | Non-US and Non-UK Plans
Schedule Of Significant Accounting Policies [Line Items]
Discount rate			5.00%	4.60%
Maximum | Non-U.S. Plans
Schedule Of Significant Accounting Policies [Line Items]
Expected return on plan assets		6.00%
Maximum | Non-U.S. Plans | Subsequent Event
Schedule Of Significant Accounting Policies [Line Items]
Expected return on plan assets	5.50%
Maximum | US Pension Plans | Postretirement Benefit Plan
Schedule Of Significant Accounting Policies [Line Items]
Discount rate			4.57%	3.90%

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Acquisitions - Additional Information (Detail) € in Millions, $ in Millions			1 Months Ended		3 Months Ended	12 Months Ended
	Apr. 02, 2015 USD ($)	Apr. 02, 2015 EUR (€)	Dec. 31, 2015 USD ($)	Dec. 31, 2015 EUR (€)	Dec. 31, 2015 USD ($) Acquisition	Dec. 31, 2015 USD ($) Acquisition	Dec. 31, 2014 USD ($) Acquisition	Dec. 31, 2013 USD ($) Acquisition	Mar. 31, 2015
Business Acquisition [Line Items]
Revenue						$ 2,921	$ 2,641	$ 2,544
Contingent consideration, minimum			$ 0		$ 0	0
Contingent consideration, maximum			46		46	46
Contingent consideration, liability			28		28	28	24
Cegedim Acquisition
Business Acquisition [Line Items]
Acquisition price	$ 426	€ 385	445
Business combination working capital adjustment | €		€ 11
Business combination additional working capital adjustment			$ 19	€ 17
Reduction of identifiable intangible assets for adjustment to purchase price allocation					$ (68)
Acquisition-related costs						6
Revenue						346
Deferred revenue adjustment to fair value						$ 5
Cegedim Acquisition | 4.125% Senior Notes due 2023
Business Acquisition [Line Items]
Debt instrument, interest rate			4.125%		4.125%	4.125%			4.125%
All Acquisitions Excluding Cegedim Acquisition
Business Acquisition [Line Items]
Acquisition price						$ 201	61	168
Acquisition-related costs						$ 8	$ 3	$ 10
Number of businesses acquired | Acquisition					4	14	5	10

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Acquisitions - Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Apr. 01, 2015	Dec. 31, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Goodwill	$ 3,604		$ 3,417	$ 3,573
Cegedim Acquisition
Business Acquisition [Line Items]
Cash		$ 89
Accounts receivable		127
Other current assets		23
Property, plant and equipment		16
Goodwill		183
Identifiable intangible assets		190
Other assets		44
Liabilities assumed		(227)
Total purchase price allocation		$ 445

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Acquisitions - Schedule of Identifiable Intangible Assets and Estimated Useful Lives (Detail) - Cegedim Acquisition - USD ($) $ in Millions	Apr. 02, 2015	Apr. 01, 2015
Finite Lived Intangible Assets [Line Items]
Identifiable intangible assets		$ 190
Client Relationships
Finite Lived Intangible Assets [Line Items]
Identifiable intangible assets		66
Databases
Finite Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	5 years
Identifiable intangible assets		86
Computer software
Finite Lived Intangible Assets [Line Items]
Identifiable intangible assets		26
Trade Names
Finite Lived Intangible Assets [Line Items]
Identifiable intangible assets		$ 12
Minimum | Client Relationships
Finite Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	10 years
Minimum | Computer software
Finite Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	2 years
Minimum | Trade Names
Finite Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	10 years
Maximum | Client Relationships
Finite Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	15 years
Maximum | Computer software
Finite Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	10 years
Maximum | Trade Names
Finite Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	15 years

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Acquisitions - Schedule of Pro Forma Information (Detail) - Cegedim Acquisition - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Revenues	$ 3,039	$ 3,230
Net income (loss)	$ 418	$ (473)
Basic earnings (loss) per share	$ 1.26	$ (1.48)
Diluted earnings (loss) per share	$ 1.23	$ (1.48)

XML

Acquisitions - Schedule of Financial Information Related to Acquisitions (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Amounts recorded in the Consolidated Statements of Financial Position:
Goodwill	$ 289	$ 31
Computer software	309	258	$ 263
All Acquisitions Excluding Cegedim Acquisition
Business Acquisition [Line Items]
Total cost of acquisitions, net of cash acquired	201	61	168
Acquisition-related costs	8	3	10
Amounts recorded in the Consolidated Statements of Financial Position:
Goodwill	106	31	124
Portion of goodwill deductible for tax purposes	35	21	46
Computer software	15	2	16
Intangible assets	$ 116	35	37
All Acquisitions Excluding Cegedim Acquisition | Computer software
Business Acquisition [Line Items]
Amortization Period	5 years
All Acquisitions Excluding Cegedim Acquisition | Client Relationships
Amounts recorded in the Consolidated Statements of Financial Position:
Intangible assets	$ 100	18	24
All Acquisitions Excluding Cegedim Acquisition | Covenant Not to Compete
Amounts recorded in the Consolidated Statements of Financial Position:
Intangible assets	10	12	7
All Acquisitions Excluding Cegedim Acquisition | Databases
Amounts recorded in the Consolidated Statements of Financial Position:
Intangible assets	4	$ 5	1
All Acquisitions Excluding Cegedim Acquisition | Trade Names
Amounts recorded in the Consolidated Statements of Financial Position:
Intangible assets	$ 2		$ 5
All Acquisitions Excluding Cegedim Acquisition | Minimum | Client Relationships
Business Acquisition [Line Items]
Amortization Period	10 years
All Acquisitions Excluding Cegedim Acquisition | Minimum | Covenant Not to Compete
Business Acquisition [Line Items]
Amortization Period	1 year
All Acquisitions Excluding Cegedim Acquisition | Minimum | Databases
Business Acquisition [Line Items]
Amortization Period	1 year
All Acquisitions Excluding Cegedim Acquisition | Minimum | Trade Names
Business Acquisition [Line Items]
Amortization Period	3 years
All Acquisitions Excluding Cegedim Acquisition | Maximum | Client Relationships
Business Acquisition [Line Items]
Amortization Period	20 years
All Acquisitions Excluding Cegedim Acquisition | Maximum | Covenant Not to Compete
Business Acquisition [Line Items]
Amortization Period	5 years
All Acquisitions Excluding Cegedim Acquisition | Maximum | Databases
Business Acquisition [Line Items]
Amortization Period	5 years
All Acquisitions Excluding Cegedim Acquisition | Maximum | Trade Names
Business Acquisition [Line Items]
Amortization Period	8 years

XML

Goodwill and Identifiable Intangible Assets - Summary of Changes in Goodwill (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Goodwill Roll Forward
Beginning Balance	$ 3,417	$ 3,573
Goodwill assigned in purchase price allocations	289	31
Foreign currency translation adjustments and other	(102)	(187)
Ending Balance	$ 3,604	$ 3,417

XML

Goodwill and Identifiable Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Finite Lived Intangible Assets [Line Items]
Intangible asset amortization expense	$ 180	$ 290	$ 287
Minimum
Finite Lived Intangible Assets [Line Items]
Amortized period of intangible assets	2 years
Maximum
Finite Lived Intangible Assets [Line Items]
Amortized period of intangible assets	20 years

XML

Goodwill and Identifiable Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross carrying amount	$ 3,612	$ 3,427
Accumulated amortization	$ (1,434)	(1,285)
Weighted Average
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Weighted average amortization period (years)	10 years
Databases
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross carrying amount	$ 738	679
Accumulated amortization	$ (652)	(639)
Databases | Weighted Average
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Weighted average amortization period (years)	1 year
Client Relationships
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross carrying amount	$ 2,181	2,051
Accumulated amortization	$ (714)	(592)
Client Relationships | Weighted Average
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Weighted average amortization period (years)	13 years
Trade Names (Finite-Lived)
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross carrying amount	$ 151	142
Accumulated amortization	$ (46)	(38)
Trade Names (Finite-Lived) | Weighted Average
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Weighted average amortization period (years)	13 years
Covenants Not to Compete and Other
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross carrying amount	$ 39	32
Accumulated amortization	$ (22)	(16)
Covenants Not to Compete and Other | Weighted Average
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Weighted average amortization period (years)	2 years
Trade Names (Indefinite-Lived)
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross carrying amount	$ 503	$ 523

XML

Goodwill and Identifiable Intangible Assets - Schedule of Amortization Expense Associated With Intangible Assets (Detail) $ in Millions	Dec. 31, 2015 USD ($)
Finite Lived Intangible Assets Future Amortization Expense [Abstract]
Expected amortization expense in 2016	$ 180
Expected amortization expense in 2017	167
Expected amortization expense in 2018	163
Expected amortization expense in 2019	161
Expected amortization expense in 2020	120
Expected amortization expense after 2020	$ 884

XML

Severance, Impairment and Other Charges - Schedule of Severance Related Reserves (Detail) - Severance - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
2015 Plan
Restructuring Cost And Reserve [Line Items]
Charges	$ 76
Cash payments	(25)
Ending balance	51
2013 and 2014 Plans
Restructuring Cost And Reserve [Line Items]
Beginning balance	18	$ 12
Charges		22
Cash payments	(14)	(16)
Ending balance	$ 4	$ 18

XML

Severance, Impairment and Other Charges - Schedule of Severance Related Reserves (Parenthetical) (Detail) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		12 Months Ended
	Dec. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
2015 Plan
Restructuring Cost And Reserve [Line Items]
Pre-tax severance charge		$ 33		$ 76
2013 Plan
Restructuring Cost And Reserve [Line Items]
Pre-tax severance charge	$ 12
2014 Plan
Restructuring Cost And Reserve [Line Items]
Pre-tax severance charge			$ 3		$ 22

XML

Severance, Impairment and Other Charges - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Dec. 31, 2015	Dec. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Restructuring Cost And Reserve [Line Items]
Impairment charges	$ 5		$ 12	$ 11	$ 10
Contract-related Charges			3		3
Impaired leases for properties		$ 3
Write-down of assets and contract related charges				3
Estimated future fund for severance, impairment and other charges in fiscal 2016	56		56
Estimated future fund for severance, impairment and other charges in fiscal 2017	$ 1		1
United States
Restructuring Cost And Reserve [Line Items]
Impaired leases for properties				$ 8	$ 7
Computer Software
Restructuring Cost And Reserve [Line Items]
Write-down of assets			$ 9

XML

Derivatives and Fair Value - Additional Information (Detail) € in Millions, $ in Millions	3 Months Ended			12 Months Ended
	Mar. 31, 2015 USD ($)	Jun. 30, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2015 USD ($) Country VEF / $	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2015 EUR (€) Country VEF / $	Feb. 08, 2013 VEF / $	Feb. 07, 2013 VEF / $
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Total debt				$ 4,195	$ 3,739
Earn-out payment, final settlement					25
Change in fair value of contingent consideration liability					9
Impairment charge for a leased facility			$ 3
Loss on Venezuela remeasurement				7	49	$ 14
Accounts receivable, net				508	330
Credit Concentrations
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Accounts receivable, net				508	330
VENEZUELA
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Adjustment of currency exchange rate | VEF / $								6.30	4.30
Loss on Venezuela remeasurement				$ 7	49	14
VENEZUELA | SIMADI
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Adjustment of currency exchange rate | VEF / $				199			199
Loss on Venezuela remeasurement	$ 7
VENEZUELA | SICAD II
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Loss on Venezuela remeasurement		$ 49
Computer software
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Impairment charges of computer software					2
Cost Method Investment and Associated Asset
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Impairment charges of computer software						5
Cost Method Investment and Associated Asset | Severance and Other Charges
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Impairment charges of computer software						3
Cost Method Investment and Associated Asset | Other Loss, Net
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Impairment charges of computer software						2
Fair Value, Measurements, Nonrecurring
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Impairment charge for a leased facility					7	3
Level 2
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Fair value of debt				$ 4,229	3,799
Level 2 | Fair Value, Measurements, Nonrecurring | Lease Impairment
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Fair value measurement for impaired lease facility			9		9	9
Fair Value, Inputs, Level 3
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Earn-out payment, final settlement				2	28
Change in fair value of contingent consideration liability				13	16
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | Computer software
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Fair value measurement for impaired computer software					0
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | Cost Method Investment and Associated Asset
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Fair value measurement for impaired computer software			$ 0			$ 0
Net Investment Hedge
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Total debt				1,231			€ 1,127
Foreign exchange gain (loss) related to net investment hedge				$ 102	$ 142
Minimum
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Number of countries in which the company transacts business | Country				100			100

XML

Derivatives and Fair Value - Schedule of Components of Foreign Exchange Gain (Loss) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Translation of non-functional currency debt			$ (40)
Revaluation of other non-functional currency assets and liabilities	$ 6	$ (42)	(28)
Effect of derivatives	14	(3)	9
Total foreign exchange gain (loss)	$ 20	$ (45)	$ (59)

XML

Derivatives and Fair Value - Schedule of Components of Foreign Exchange Gain (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Loss on Venezuela remeasurement	$ 7	$ 49	$ 14
VENEZUELA
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Loss on Venezuela remeasurement	$ 7	$ 49	$ 14

XML

Derivatives and Fair Value - Interest Rate Risk Management - Additional Information (Detail) - USD ($)	1 Months Ended	12 Months Ended
	Apr. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	May. 31, 2010
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Premiums paid	$ 21,000,000
Interest Rate Cap | Designated as Hedging Instrument
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative, nominal value		$ 1,000,000,000	$ 1,000,000,000
Interest Rate Cap | Designated as Hedging Instrument | Interest Rate Caps April 2014
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative, nominal value	1,000,000,000
Interest Rate Cap | Not Designated as Hedging Instrument
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative, maturity period		2015-01
Interest Rate Swap | Designated as Hedging Instrument
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative, nominal value		$ 517,000,000	553,000,000
Interest Rate Swap | Designated as Hedging Instrument | Interest Rate Swap Agreements April 2014
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Notional amounts, borrowings	$ 600,000,000
Derivative basis spread on variable rate	1.00%
Interest Rate Swap | Not Designated as Hedging Instrument
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative, nominal value		$ 100,000,000	$ 225,000,000
Interest Rate Swap | Not Designated as Hedging Instrument | Interest Rate Swap Agreements May 2010
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative contract, period of effectiveness		2012-01
Notional amounts, borrowings				$ 375,000,000
Minimum | Designated as Hedging Instrument | Interest Rate Caps April 2014
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Strike rate	2.00%
Minimum | Interest Rate Cap | Designated as Hedging Instrument | Interest Rate Caps April 2014
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative, maturity period		2017-04
Derivative contract, period of effectiveness		2014-04
Minimum | Interest Rate Swap | Designated as Hedging Instrument | Interest Rate Swap Agreements April 2014
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative, maturity period		2017-03
Derivative contract, period of effectiveness		2014-04
Fixed interest payment rate	1.40%
Minimum | Interest Rate Swap | Not Designated as Hedging Instrument | Interest Rate Swap Agreements May 2010
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Fixed interest payment rate				3.00%
Maximum
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Pre-tax unrealized losses on foreign currency derivatives expected to be reclassified during next 12 months		$ (4,000,000)
Maximum | Designated as Hedging Instrument | Interest Rate Caps April 2014
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Strike rate	3.00%
Maximum | Interest Rate Cap | Designated as Hedging Instrument | Interest Rate Caps April 2014
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative, maturity period		2019-04
Derivative contract, period of effectiveness		2016-04
Maximum | Interest Rate Swap | Designated as Hedging Instrument | Interest Rate Swap Agreements April 2014
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative, maturity period		2021-03
Derivative contract, period of effectiveness		2014-06
Fixed interest payment rate	2.10%
Maximum | Interest Rate Swap | Not Designated as Hedging Instrument | Interest Rate Swap Agreements May 2010
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative, maturity period		2016-01
Fixed interest payment rate				3.30%

XML

Derivatives and Fair Value - Schedule of Fair Value of Derivative Instruments (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Derivatives Fair Value [Line Items]
Fair Value of Derivatives Asset	$ 11	$ 30
Fair Value of Derivatives Liability	13	18
Designated as Hedging Instrument | Foreign Exchange Contracts
Derivatives Fair Value [Line Items]
Derivative, nominal value	178	189
Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts receivable
Derivatives Fair Value [Line Items]
Fair Value of Derivatives Asset	4	18
Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts payable
Derivatives Fair Value [Line Items]
Fair Value of Derivatives Liability	2
Designated as Hedging Instrument | Interest Rate Cap
Derivatives Fair Value [Line Items]
Derivative, nominal value	1,000	1,000
Designated as Hedging Instrument | Interest Rate Cap | Other Assets
Derivatives Fair Value [Line Items]
Fair Value of Derivatives Asset	4	12
Designated as Hedging Instrument | Interest Rate Swap
Derivatives Fair Value [Line Items]
Fair Value of Derivatives Liability	10	12
Derivative, nominal value	517	553
Not Designated as Hedging Instrument | Foreign Exchange Contracts
Derivatives Fair Value [Line Items]
Derivative, nominal value	148	93
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts receivable
Derivatives Fair Value [Line Items]
Fair Value of Derivatives Asset	3
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts payable
Derivatives Fair Value [Line Items]
Fair Value of Derivatives Liability		2
Not Designated as Hedging Instrument | Interest Rate Swap
Derivatives Fair Value [Line Items]
Fair Value of Derivatives Liability	1	4
Derivative, nominal value	$ 100	$ 225

XML

Derivatives and Fair Value - Schedule of Fair Value of Derivative Instruments (Parenthetical) (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Derivatives Fair Value [Line Items]
Fair Value of Derivatives Liability	$ 13	$ 18
Interest Rate Swap | Accrued And Other Current Liabilities
Derivatives Fair Value [Line Items]
Fair Value of Derivatives Liability	1	1
Interest Rate Swap | Other Noncurrent Liabilities
Derivatives Fair Value [Line Items]
Fair Value of Derivatives Liability	$ 10	$ 15

XML

Derivatives and Fair Value - Schedule of Effect of Derivatives on Financial Performance (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Foreign Exchange Contracts
Derivative Instruments Gain Loss [Line Items]
Amount of Income/(Loss) Recognized in AOCI	$ 7	$ 23	$ 13
Foreign Exchange Contracts | Other Loss, Net
Derivative Instruments Gain Loss [Line Items]
Amount of Income/(Loss) Reclassified from AOCI into Earnings	24	7	$ 14
Interest Rate Derivatives
Derivative Instruments Gain Loss [Line Items]
Amount of Income/(Loss) Recognized in AOCI	$ (6)	$ (20)

XML

Schedule of Pre-Tax Gain (Loss) Recognized in Earnings on Derivatives (Detail) - Not Designated as Hedging Instrument - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Total derivatives not designated as hedging instruments	$ (10)	$ (10)	$ (6)
Foreign Exchange Contracts
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Total derivatives not designated as hedging instruments	$ (10)	(9)	(5)
Interest Rate Derivatives
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Total derivatives not designated as hedging instruments		$ (1)	$ (1)

XML

Derivatives and Fair Value - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Assets
Derivatives assets	$ 11	$ 30
Liabilities
Contingent consideration, liability	28	24
Derivatives liabilities	13	18
Level 3
Liabilities
Contingent consideration, liability	28	24	$ 65
Fair value measurements, recurring basis
Assets
Derivatives assets	11	30
Total assets	11	30
Liabilities
Contingent consideration, liability	28	24
Derivatives liabilities	13	18
Total liabilities	41	42
Fair value measurements, recurring basis | Level 2
Assets
Derivatives assets	11	30
Total assets	11	30
Liabilities
Derivatives liabilities	13	18
Total liabilities	13	18
Fair value measurements, recurring basis | Level 3
Liabilities
Contingent consideration, liability	28	24
Total liabilities	$ 28	$ 24

XML

Derivatives and Fair Value - Schedule of Level 3 Acquisition-Related Contingent Consideration Liabilities Carried at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 24
Cash payments		$ (25)
Changes in fair value estimates and foreign currency translation adjustments		(9)
Ending balance	28	24
Level 3
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	24	65
New acquisitions	19	3
Cash payments	(2)	(28)
Changes in fair value estimates and foreign currency translation adjustments	(13)	(16)
Ending balance	$ 28	$ 24

XML

Debt - Schedule of Debt (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Principal Amount of Debt	$ 4,266	$ 3,816
Less: Debt Issuance Costs and Unamortized Discounts	(71)	(77)
Total Debt	4,195	3,739
4.125% Senior Notes due 2023 | Euro denominated
Debt Instrument [Line Items]
Principal Amount of Debt	300
6.00% Senior Notes due 2020 | U.S. Dollar denominated
Debt Instrument [Line Items]
Principal Amount of Debt	500	500
USD LIBOR | Revolving Credit Facility due 2019 | U.S. Dollar denominated
Debt Instrument [Line Items]
Principal Amount of Debt	328	215
USD LIBOR | Secured Debt | Senior Secured Term A Loan due 2019
Debt Instrument [Line Items]
Principal Amount of Debt	484	307
USD LIBOR | Secured Debt | Senior Secured Term B Loan due 2021
Debt Instrument [Line Items]
Principal Amount of Debt	1,717	1,735
EUR LIBOR | Secured Debt | Senior Secured Term A Loan due 2019
Debt Instrument [Line Items]
Principal Amount of Debt	135	158
EUR LIBOR | Secured Debt | Senior Secured Term B Loan due 2021
Debt Instrument [Line Items]
Principal Amount of Debt	$ 802	$ 901

XML

Debt - Schedule of Debt (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2015
Revolving Credit Facility due 2019
Debt Instrument [Line Items]
Debt instrument, maturity year	2019
4.125% Senior Notes due 2023 | Euro denominated
Debt Instrument [Line Items]
Debt instrument, interest rate	4.125%
Debt instrument, maturity year	2023
6.00% Senior Notes due 2020
Debt Instrument [Line Items]
Debt instrument, interest rate	6.00%
6.00% Senior Notes due 2020 | U.S. Dollar denominated
Debt Instrument [Line Items]
Debt instrument, interest rate	6.00%
Debt instrument, maturity year	2020
USD LIBOR | Revolving Credit Facility due 2019 | U.S. Dollar denominated
Debt Instrument [Line Items]
Debt instrument, average floating rate	2.79%
USD LIBOR | Secured Debt | Senior Secured Term A Loan due 2019
Debt Instrument [Line Items]
Debt instrument, average floating rate	2.86%
Debt instrument, maturity year	2019
USD LIBOR | Secured Debt | Senior Secured Term B Loan due 2021
Debt Instrument [Line Items]
Debt instrument, average floating rate	3.50%
Debt instrument, maturity year	2021
EUR LIBOR | Secured Debt | Senior Secured Term A Loan due 2019
Debt Instrument [Line Items]
Debt instrument, average floating rate	2.25%
Debt instrument, maturity year	2019
EUR LIBOR | Secured Debt | Senior Secured Term B Loan due 2021
Debt Instrument [Line Items]
Debt instrument, average floating rate	3.75%
Debt instrument, maturity year	2021

XML

Debt - Schedule of Maturities of Long-Term Debt (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Long Term Debt By Maturity [Abstract]
Scheduled principal payments, 2016	$ 59
Scheduled principal payments, 2017	72
Scheduled principal payments, 2018	88
Scheduled principal payments, 2019	830
Scheduled principal payments, 2020	526
Scheduled principal payments, Thereafter	2,691
Total	$ 4,266	$ 3,816

XML

Debt - Senior Secured Credit Facilities - Additional Information (Detail) - USD ($)	1 Months Ended	12 Months Ended
	Feb. 28, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	May. 31, 2015	Mar. 31, 2014
Debt Instrument [Line Items]
Debt extinguishment losses			$ (79,000,000)	$ (9,000,000)
Principal amount of debt		$ 4,266,000,000	3,816,000,000
Senior Secured Term A Loan due 2019 | Minimum
Debt Instrument [Line Items]
Scheduled principal payments		1.25%
Senior Secured Term A Loan due 2019 | Maximum
Debt Instrument [Line Items]
Scheduled principal payments		2.50%
Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, borrowing capacity		$ 500,000,000
Unused borrowing capacity		172,000,000
Revolving Credit Facility | IMS Japan K.K.
Debt Instrument [Line Items]
Principal amount of debt		$ 0
Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Line of credit facility, unused capacity, commitment fee percentage		0.30%
Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Line of credit facility, unused capacity, commitment fee percentage		0.40%
Senior Secured Term B Loan due 2021
Debt Instrument [Line Items]
Scheduled principal payments		0.25%
Term Loan Amendment
Debt Instrument [Line Items]
Third party fees				3,000,000
Debt extinguishment losses				$ (9,000,000)
Reduced LIBOR floor on tranches of debt, basis points	0.25%
Reduced borrowing margins on tranches of debt, basis points	0.50%
2015 Term Loan Amended
Debt Instrument [Line Items]
Additional borrowing capacity under Term A loans					$ 200,000,000
Third party fees		$ 2,000,000
2014 Term Loan Amended
Debt Instrument [Line Items]
Third party fees			2,000,000
Debt extinguishment losses			$ (11,000,000)
2014 Term Loan Amended | Senior Secured Term A Loan due 2019
Debt Instrument [Line Items]
Additional borrowing capacity under Term A loans						$ 500,000,000
Debt instrument maturity date		2019-03
2014 Term Loan Amended | Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, borrowing capacity						$ 500,000,000
Debt instrument maturity date		2019-03
2014 Term Loan Amended | Senior Secured Term B Loan due 2021
Debt Instrument [Line Items]
Debt instrument maturity date		2021-03

XML

Debt - Senior Notes and Other - Additional Information (Detail) € in Millions, $ in Millions		12 Months Ended
	Apr. 02, 2015 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2015 EUR (€)	Mar. 31, 2015
Debt Instrument [Line Items]
Debt instrument, fees and expenses		$ 51	$ 54
Debt extinguishment losses			$ (79)	$ (9)
6.00% Senior Notes due 2020
Debt Instrument [Line Items]
Debt instrument, principal amount		$ 500
Debt instrument, interest rate		6.00%			6.00%
Debt instrument maturity date		2020-11
Debt instrument, redemption, description		The Company may redeem all or a portion of the 6% Senior Notes at predetermined redemption prices set forth in the indenture governing the 6% Senior Notes plus accrued and unpaid interest to the date of redemption.
12.5% Senior Notes
Debt Instrument [Line Items]
Debt instrument, interest rate			12.50%
12.5% Senior Notes and Senior PIK Notes
Debt Instrument [Line Items]
Debt extinguishment losses			$ (219)
Debt instrument, make whole premium			151
Write-off of debt issuance costs and discounts			$ 68
Cegedim Acquisition | 4.125% Senior Notes due 2023
Debt Instrument [Line Items]
Debt instrument, principal amount | €					€ 275
Debt instrument, interest rate		4.125%			4.125%	4.125%
Debt instrument maturity date		2023-04
Debt instrument, fees and expenses	$ 5
Debt instrument frequency of interest payment		Interest on the 4.125% Senior Notes is payable semi-annually each year and commenced on October 1, 2015.
Debt instrument, redemption, description		The Company may redeem the 4.125% Senior Notes, in whole or in part, at any time prior to April 1, 2018 at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of redemption, plus a “make-whole” premium. On or after April 1, 2018, the Company may redeem all or a portion of the 4.125% Senior Notes at predetermined redemption prices set forth in the indenture governing the 4.125% Senior Notes plus accrued and unpaid interest to the date of redemption.
Percentage of principal amount redeemable		100.00%

XML

Pension and Postretirement Benefits - Reconciliation of Benefit Obligations, Plan Assets and Funded Status (Detail) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Amounts recognized in the Consolidated Statements of Financial Position:
Postretirement and postemployment benefits liability		$ (109)	$ (95)
US Pension Plans
Change in benefit obligation
Benefit obligation at beginning of year		291	249
Service cost		12	10	$ 10
Interest cost		11	12	9
Actuarial loss (gain)		(22)	28
Benefits paid		(8)	(8)
Benefit obligation at end of year		284	291	249
Change in plan assets
Fair value of plan assets at beginning of year		295	274
Actual return on assets		(2)	26
Employer contributions		4	3
Benefits paid		(8)	(8)
Fair value of plan assets at end of year		289	295	274
Funded status		5	4
Amounts recognized in the Consolidated Statements of Financial Position:
Other assets		46	48
Accrued and other current liabilities		(2)	(2)
Postretirement and postemployment benefits liability		(39)	(42)
Net amount recognized		5	4
Accumulated benefit obligation		281	287
Non-U.S. Plans
Change in benefit obligation
Benefit obligation at beginning of year		305	247
Service cost		8	6	5
Interest cost		10	11	9
Foreign currency exchange adjustment		(14)	(17)
Actuarial loss (gain)		(3)	29
Benefits paid		(11)	(9)
Settlements and other		(1)	(3)
Acquisition	[1]	24
Plan adoption	[2]		41
Benefit obligation at end of year		318	305	247
Change in plan assets
Fair value of plan assets at beginning of year		283	234
Actual return on assets		8	33
Foreign currency exchange adjustment		(12)	(15)
Employer contributions		7	14
Benefits paid		(11)	(9)
Settlements and other			(3)
Acquisition	[1]	2
Plan adoption	[2]		29
Fair value of plan assets at end of year		277	283	234
Funded status		(41)	(22)
Amounts recognized in the Consolidated Statements of Financial Position:
Other assets		7	8
Accrued and other current liabilities		(2)	(1)
Postretirement and postemployment benefits liability		(46)	(29)
Net amount recognized		(41)	(22)
Accumulated benefit obligation		305	298
Other Benefits
Change in benefit obligation
Benefit obligation at beginning of year		5	6
Actuarial loss (gain)		1	(1)
Benefits paid		(1)
Benefit obligation at end of year		5	5	$ 6
Change in plan assets
Employer contributions		1
Benefits paid		(1)
Funded status		(5)	(5)
Amounts recognized in the Consolidated Statements of Financial Position:
Accrued and other current liabilities		(1)	(1)
Postretirement and postemployment benefits liability		(4)	(4)
Net amount recognized		$ (5)	$ (5)

[1] Represents defined benefit plans acquired in the Cegedim acquisition

[2] Represents the conversion of a non-U.S. plan from a defined contribution plan to a defined benefit plan as of December 31, 2014

XML

Pension and Postretirement Benefits - Accumulated and Projected Benefit Obligation in Excess of Plan Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
US Pension Plans
Plans with accumulated benefit obligation in excess of plan assets:
Projected benefit obligation	$ 43	$ 46
Accumulated benefit obligation	42	45
Fair value of plan assets	2	1
Plans with projected benefit obligation in excess of plan assets:
Projected benefit obligation	43	46
Fair value of plan assets	2	1
Non-U.S. Plans
Plans with accumulated benefit obligation in excess of plan assets:
Projected benefit obligation	86	62
Accumulated benefit obligation	75	54
Fair value of plan assets	38	35
Plans with projected benefit obligation in excess of plan assets:
Projected benefit obligation	86	63
Fair value of plan assets	$ 38	$ 37

XML

Pension and Postretirement Benefits - Amounts in AOCI for Pension and Other Benefits (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
US Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss	$ 13	$ 12
Total	13	12
Non-U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss	37	38
Unrecognized initial obligation		13
Prior service cost (credit)	10
Total	47	51
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss	1	1
Prior service cost (credit)	(3)	(4)
Total	$ (2)	$ (3)

XML

Pension and Postretirement Benefits - Components of Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Loss (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
US Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 12	$ 10	$ 10
Interest cost	11	12	9
Expected return on plan assets	(22)	(20)	(18)
Amortization of loss	1		1
Net periodic benefit cost	2	2	2
Other changes in plan assets and benefit obligations recognized in other comprehensive loss:
Actuarial loss (gain) – current years	2	22	(41)
Amortization of actuarial loss	(1)		(1)
Total recognized in other comprehensive loss	1	22	(42)
Total recognized in net periodic benefit cost and other comprehensive loss	3	24	(40)
Non-U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	8	6	5
Interest cost	10	11	9
Expected return on plan assets	(13)	(13)	(10)
Amortization of prior service cost (credit)	1
Amortization of loss	1	1
Net periodic benefit cost	7	5	4
Other changes in plan assets and benefit obligations recognized in other comprehensive loss:
Actuarial loss (gain) – current years	2	8	8
Prior service (cost) credit – current years	(1)
Transition obligation		13
Amortization of prior service (cost) credit	(1)
Amortization of actuarial loss	(1)	(1)
Total recognized in other comprehensive loss	(1)	20	8
Total recognized in net periodic benefit cost and other comprehensive loss	6	25	12
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Amortization of prior service cost (credit)	(1)	(1)
Net periodic benefit cost	(1)	(1)
Other changes in plan assets and benefit obligations recognized in other comprehensive loss:
Actuarial loss (gain) – current years			(1)
Prior service (cost) credit – current years			(5)
Amortization of prior service (cost) credit	1	1
Total recognized in other comprehensive loss	$ 1	$ 1	(6)
Total recognized in net periodic benefit cost and other comprehensive loss			$ (6)

XML

Pension and Postretirement Benefits - Amounts in AOCI Expected to be Recognized as Components of Net Periodic Benefit Cost (Credit) during 2016 (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss	$ (1)
Prior service credit	1
Non-U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss	(1)
Total	(1)
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Prior service credit	1
Total	$ 1

XML

Pension and Postretirement Benefits - Schedule of Weighted Average Assumptions Used to Determine Benefit Obligation and Net Periodic Benefit Cost (Detail)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
US Pension Plans
Weighted Average Assumptions Used to Determine Benefit Obligations
Discount rate	4.48%	3.87%
Rate of compensation increase	3.00%	3.00%
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost
Discount rate	3.87%	4.66%	3.80%
Expected long-term return on plan assets	7.96%	7.97%	8.00%
Rate of compensation increase	3.00%	3.00%	3.00%
Non-U.S. Plans
Weighted Average Assumptions Used to Determine Benefit Obligations
Discount rate	3.16%	3.30%
Rate of compensation increase	2.40%	1.94%
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost
Discount rate	3.30%	4.37%	4.44%
Expected long-term return on plan assets	5.02%	5.39%	6.30%
Rate of compensation increase	1.94%	1.98%	1.85%
Other Benefits
Weighted Average Assumptions Used to Determine Benefit Obligations
Discount rate	3.00%	2.60%
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost
Discount rate	2.60%	2.90%	3.80%

XML

Pension and Postretirement Benefits - Schedule of Assumed Health Care Cost Trend Rates (Detail)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Compensation And Retirement Disclosure [Abstract]
Health care cost trend rate assumed for next year	7.50%	7.50%	7.50%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	5.00%	5.00%	5.00%
Year that the rate reaches the ultimate trend rate	2021	2019	2019

XML

Pension and Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit and Defined Contribution Plans disclosure [line items]
Expected Contribution made to pension and postretirement benefit plan by employer	$ 9
US defined contribution plan
Defined Benefit and Defined Contribution Plans disclosure [line items]
Company makes matching contribution on employee's contribution	50.00%
Company’s expense related to defined contribution plan	$ 8	$ 7	$ 6
Defined Contribution Executive Retirement Plan
Defined Benefit and Defined Contribution Plans disclosure [line items]
Company’s expense related to defined contribution plan			1
Other than U.S. Defined Contribution Plans
Defined Benefit and Defined Contribution Plans disclosure [line items]
Company’s expense related to defined contribution plan	9	$ 8	$ 8
Maximum
Defined Benefit and Defined Contribution Plans disclosure [line items]
Effect on total of service and interest cost, 1-Percentage Point Increase	1
Effect on accumulated postretirement benefit obligation, 1-Percentage Point Increase	1
Effect on total of service and interest cost, 1-Percentage Point Decrease	1
Effect on accumulated postretirement benefit obligation, 1-Percentage Point Decrease	$ 1

XML

Pension and Postretirement Benefits - Schedule of Pension Plan Weighted Average Asset Allocations and Target Asset Allocation (Detail)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Pension plan weighted average asset	100.00%	100.00%
US Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Pension plan weighted average asset	100.00%	100.00%
Non-U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Pension plan weighted average asset	100.00%	100.00%
Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Pension plan weighted average asset	53.00%	53.00%
Pension plan target asset, Minimum	45.00%
Pension plan target asset, Maximum	65.00%
Equity Securities | US Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Pension plan weighted average asset	70.00%	70.00%
Pension plan target asset, Minimum	60.00%
Pension plan target asset, Maximum	80.00%
Equity Securities | Non-U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Pension plan weighted average asset	35.00%	35.00%
Pension plan target asset, Minimum	30.00%
Pension plan target asset, Maximum	45.00%
Debt Securities
Defined Benefit Plan Disclosure [Line Items]
Pension plan weighted average asset	33.00%	34.00%
Pension plan target asset, Minimum	30.00%
Pension plan target asset, Maximum	40.00%
Debt Securities | US Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Pension plan weighted average asset	25.00%	25.00%
Pension plan target asset, Minimum	20.00%
Pension plan target asset, Maximum	30.00%
Debt Securities | Non-U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Pension plan weighted average asset	42.00%	43.00%
Pension plan target asset, Minimum	35.00%
Pension plan target asset, Maximum	50.00%
Real Estate
Defined Benefit Plan Disclosure [Line Items]
Pension plan weighted average asset	7.00%	6.00%
Pension plan target asset, Minimum	0.00%
Pension plan target asset, Maximum	10.00%
Real Estate | US Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Pension plan weighted average asset	5.00%	5.00%
Pension plan target asset, Minimum	0.00%
Pension plan target asset, Maximum	10.00%
Real Estate | Non-U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Pension plan weighted average asset	9.00%	8.00%
Pension plan target asset, Minimum	0.00%
Pension plan target asset, Maximum	10.00%
Other
Defined Benefit Plan Disclosure [Line Items]
Pension plan weighted average asset	7.00%	7.00%
Pension plan target asset, Minimum	0.00%
Pension plan target asset, Maximum	10.00%
Other | Non-U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Pension plan weighted average asset	14.00%	14.00%
Pension plan target asset, Minimum	10.00%
Pension plan target asset, Maximum	20.00%

XML

Pension and Postretirement Benefits - Schedule of Plan Assets at Fair Value (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Level 3
Defined Benefit Plan Disclosure [Line Items]
Total assets	$ 24	$ 22	$ 20
US Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Total assets	289	295	274
US Pension Plans | Level 1
Defined Benefit Plan Disclosure [Line Items]
Total assets	102	105
US Pension Plans | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total assets	187	190
Non-U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Total assets	277	283	$ 234
Non-U.S. Plans | Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Total assets	32	29
Non-U.S. Plans | Level 1
Defined Benefit Plan Disclosure [Line Items]
Total assets	2	2
Non-U.S. Plans | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total assets	251	259
Non-U.S. Plans | Level 2 | Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Total assets	32	29
Non-U.S. Plans | Level 3
Defined Benefit Plan Disclosure [Line Items]
Total assets	24	22
Domestic equities | US Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Total assets	159	161
Domestic equities | US Pension Plans | Level 1
Defined Benefit Plan Disclosure [Line Items]
Total assets	27	28
Domestic equities | US Pension Plans | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total assets	132	133
International equities | US Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Total assets	45	45
International equities | US Pension Plans | Level 1
Defined Benefit Plan Disclosure [Line Items]
Total assets	18	18
International equities | US Pension Plans | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total assets	27	27
International equities | Non-U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Total assets	97	100
International equities | Non-U.S. Plans | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total assets	97	100
Debt issued by national, state or local government | US Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Total assets	12	13
Debt issued by national, state or local government | US Pension Plans | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total assets	12	13
Debt issued by national, state or local government | Non-U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Total assets	71	78
Debt issued by national, state or local government | Non-U.S. Plans | Level 1
Defined Benefit Plan Disclosure [Line Items]
Total assets	2	2
Debt issued by national, state or local government | Non-U.S. Plans | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total assets	69	76
Corporate bonds | US Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Total assets	58	61
Corporate bonds | US Pension Plans | Level 1
Defined Benefit Plan Disclosure [Line Items]
Total assets	42	44
Corporate bonds | US Pension Plans | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total assets	16	17
Corporate bonds | Non-U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Total assets	46	48
Corporate bonds | Non-U.S. Plans | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total assets	46	48
Real Estate | US Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Total assets	15	15
Real Estate | US Pension Plans | Level 1
Defined Benefit Plan Disclosure [Line Items]
Total assets	15	15
Real Estate | Non-U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Total assets	24	22
Real Estate | Non-U.S. Plans | Level 3
Defined Benefit Plan Disclosure [Line Items]
Total assets	24	22
Investment funds | Non-U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Total assets	7	6
Investment funds | Non-U.S. Plans | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total assets	$ 7	$ 6

XML

Pension and Postretirement Benefits - Schedule of Fair Value Measurements Using Significant Unobservable Inputs (Detail) - Fair Value, Inputs, Level 3 - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at beginning of year	$ 22	$ 20
Actual return on plan assets – assets held at end of year	3	3
Purchases, sales and settlements	(1)	(1)
Fair value of plan assets at end of year	$ 24	$ 22

XML

Pension and Postretirement Benefits - Schedule of Benefit Payments Expected to be Paid (Detail) $ in Millions	Dec. 31, 2015 USD ($)
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
2016	$ 19
2017	19
2018	20
2019	22
2020	23
2021-2025	144
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
2016	1
2017	1
2018	1
2019	1
2020	1
2021-2025	$ 1

XML

Pension and Postretirement Benefits - Summary of Information Related to Unfunded Plans (Detail) - Executive Plans - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Postretirement Medical, Dental and Life Insurance Benefits
Other Benefit Plans Disclosure [Line Items]
Unfunded Obligation	$ 11	$ 9
Postretirement Benefits Plan (Income) Expense	$ 1	$ (1)	$ 2
Discount Rate used to Measure Obligation	4.40%	3.90%
Deferred Compensation Contracts
Other Benefit Plans Disclosure [Line Items]
Unfunded Obligation	$ 1	$ 1
Discount Rate used to Measure Obligation	4.20%	3.90%

XML

Shareholders' Equity - Additional Information (Detail) - USD ($)		1 Months Ended			12 Months Ended
	May. 12, 2015	Dec. 31, 2015	Aug. 31, 2015	May. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 16, 2015	May. 03, 2015	Apr. 30, 2014
Class Of Stock [Line Items]
Preferred stock, shares authorized										50,000,000
Preferred stock, par value										$ 0.01
Preferred stock, shares issued		0			0
Common Stock, shares authorized		700,000,000			700,000,000	700,000,000
Amount authorized under common stock repurchase program								$ 250,000,000	$ 300,000,000
Shares of common stock repurchased	11,100,000				670,000
Aggregate value of common stock repurchased	$ 300,000,000	$ 17,000,000			$ 317,000,000	$ 3,000,000	$ 2,000,000
Average value per share of common stock repurchased	$ 27.0875				$ 25.70
Proceeds from issuance of debt	$ 200,000,000				$ 496,000,000	499,000,000	750,000,000
Number of common stock shares sold to underwriters in secondary offerings			20,000,000
Number of common stock shares sold in secondary public offering by selling shareholders				57,970,000
Selling and administrative expenses, exclusive of depreciation and amortization					712,000,000	$ 721,000,000	$ 596,000,000
Secondary Offerings
Class Of Stock [Line Items]
Offering price per share			$ 31.17	$ 27.50
Selling and administrative expenses, exclusive of depreciation and amortization					$ 1,000,000
Over-Allotment Option
Class Of Stock [Line Items]
Number of common stock shares sold in secondary public offering by selling shareholders				6,870,000

XML

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended	12 Months Ended
	Aug. 31, 2013	Dec. 31, 2015	Dec. 31, 2014
SARs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting terms		the SARs are eligible to vest in equal increments of 25% on each of the first four anniversaries of the date of grant.
Vested percentage		25.00%
Expiration period		10 years
Weighted average period of recognition		2 years
Unrecognized stock compensation expense related to unvested SARs		$ 11
Performance shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Pay-out performance share units range, minimum		50.00%
Pay-out performance share units range, maximum		200.00%
Vesting period		3 years
Weighted average period of recognition		2 years
Unrecognized compensation cost related to nonvested performance shares		$ 10
Granted		0.6
Service-Based Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting terms		the service-based options vest in equal increments of 20% on each of the first five anniversaries of the date of grant
Vested percentage			20.00%
Shares exercisable		3.7
Unrecognized stock compensation expense related to unvested stock options		$ 2
Weighted average period of recognition		1 year
Performance-Based Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting terms		performance-based options vest in equal increments of 20% on each of the first five anniversaries of the date of grant
Vested percentage			20.00%
Shares exercisable		1.8
Unrecognized stock compensation expense related to unvested stock options		$ 2
Weighted average period of recognition		1 year
Restricted Stock and Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average period of recognition		2 years
Unrecognized compensation cost related to nonvested performance shares		$ 38
Granted		1.0
Restricted Stock and Restricted Stock Units | Employees
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting terms		The restricted stock granted in 2015 and the RSUs granted to employees in 2014 vest in equal increments of 50% on each of the second and fourth anniversaries of the grant date
Vested percentage		50.00%
Premium Priced Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of exercise price		150.00%
Shares exercisable		1.2
Stock options and SARs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Tax benefit realized on stock options and SARS exercised		$ 11	$ 2
Restricted Stock Units | Employees and Non-Employee Directors
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted			1.4
Restricted Stock | Employees and Non-Employee Directors
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted		0.9
2014 Equity Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share reserved for issuance		41.2
Shares available for grants		26.1
2010 Equity Plan | Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Dividends declared, per share	$ 2.60
2010 Equity Plan | Unvested Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Reduction in exercise price	2.60
2010 Equity Plan | Vested Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Option holders cash receipt per share of vested stock	$ 2.60

XML

Stock Based Compensation - Summary of Weighted Average Assumptions Used to Compute the Weighted Average Fair Value of Stock Option Grants (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Dividend yield	0.00%	0.00%	0.00%
Weighted average volatility	33.90%	26.40%	26.70%
Risk free interest rate	1.70%	1.68%	1.19%
Expected term	6 years 6 months	5 years 6 months	5 years 6 months
Weighted average fair value of options granted	$ 9.34	$ 5.44	$ 4.89

XML

Stock Based Compensation - Summary of Weighted Average Assumptions Used to Compute the Weighted Average Fair Value of Stock Option Grants (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Dividend yield	0.00%	0.00%	0.00%

XML

Stock-Based Compensation - Summary of Components and Classification of Stock-based Compensation Expense (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	$ 25	$ 58	$ 22
Tax benefit on stock-based compensation expense	8	19	7
Stock options and SARs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	13	51	21
Performance shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	5
Restricted Stock and Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	7	7	1
Operating Costs of Information, Exclusive of Depreciation and Amortization
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	2	6	3
Direct and Incremental Costs of Technology Services, Exclusive of Depreciation and Amortization
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	2	5	2
Selling and Administrative Expenses, Exclusive of Depreciation and Amortization
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	$ 21	$ 47	$ 17

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Stock-Based Compensation - Summary of Stock Options Activity (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Service-Based Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options outstanding, Shares, Beginning balance	10.2
Exercises, Shares	(3.2)
Forfeitures, Shares	(0.1)
Options outstanding, Shares, Ending balance	6.9	10.2
Options vested or expected to vest, Shares	6.8
Options exercisable, Shares	3.7
Options outstanding, Weighted Average Exercise Price, Beginning balance	$ 7.97
Exercises, Weighted Average Exercise Price	5.24
Forfeitures, Weighted Average Exercise Price	9.95
Options outstanding, Weighted Average Exercise Price, Ending balance	9.19	$ 7.97
Options vested or expected to vest, Weighted Average Exercise Price	9.17
Options exercisable, Weighted Average Exercise Price	$ 10.73
Options outstanding, Weighted Average Remaining Term (Years)	5 years 22 days	5 years 10 months 13 days
Options vested or expected to vest, Weighted Average Remaining Term (Years)	5 years 7 days
Options exercisable, Weighted Average Remaining Term (Years)	4 years 9 months 29 days
Options outstanding, Aggregate Intrinsic Value	$ 138	$ 180
Options vested or expected to vest, Aggregate Intrinsic Value	136
Options exercisable, Aggregate Intrinsic Value	$ 80
Performance-Based Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options outstanding, Shares, Beginning balance	5.3
Exercises, Shares	(1.7)
Forfeitures, Shares	(0.1)
Options outstanding, Shares, Ending balance	3.5	5.3
Options vested or expected to vest, Shares	3.4
Options exercisable, Shares	1.8
Options outstanding, Weighted Average Exercise Price, Beginning balance	$ 6.69
Exercises, Weighted Average Exercise Price	5.76
Forfeitures, Weighted Average Exercise Price	9.81
Options outstanding, Weighted Average Exercise Price, Ending balance	7.07	$ 6.69
Options vested or expected to vest, Weighted Average Exercise Price	8.21
Options exercisable, Weighted Average Exercise Price	$ 8.43
Options outstanding, Weighted Average Remaining Term (Years)	5 years 1 month 17 days	5 years 11 months 12 days
Options vested or expected to vest, Weighted Average Remaining Term (Years)	5 years 29 days
Options exercisable, Weighted Average Remaining Term (Years)	4 years 10 months 13 days
Options outstanding, Aggregate Intrinsic Value	$ 72	$ 101
Options vested or expected to vest, Aggregate Intrinsic Value	71
Options exercisable, Aggregate Intrinsic Value	$ 38

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Stock-Based Compensation - Summary of Stock Appreciation Rights SARs (Detail) - SARs - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
SARs outstanding, Shares, Beginning balance	0.5
Granted, Shares	1.7
Exercises, Shares	(0.4)
Forfeitures, Shares	(0.2)
SARs outstanding, Shares, Ending balance	1.6	0.5
SARs vested or expected to vest, Shares	1.6
SARS exercisable, Shares	0.2
SARs outstanding, Weighted Average Exercise Price, Beginning balance	$ 2.50
Granted, Weighted Average Exercise Price	25.14
Exercises, Weighted Average Exercise Price	2.50
Forfeitures, Weighted Average Exercise Price	25.08
SARs outstanding, Weighted Average Exercise Price, Ending balance	22.72	$ 2.50
SARs vested or expected to vest, Weighted Average Exercise Price	22.72
SARS exercisable, Weighted Average Exercise Price	$ 2.50
SARs outstanding, Weighted Average Remaining Term (Years)	5 years 6 months	1 year 3 months 18 days
SARs vested or expected to vest, Weighted Average Remaining Term (Years)	5 years 6 months
SARS exercisable, Weighted Average Remaining Term (Years)	3 months 18 days
SARs outstanding, Aggregate Intrinsic Value	$ 5	$ 13
SARs Vested or expected to vest, Aggregate Intrinsic Value	5
SARS exercisable, Aggregate Intrinsic Value	$ 4

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Stock-Based Compensation - Summary of Cash Proceeds and Intrinsic Value Related to Total Stock Options Exercised (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Service Based Stock Options And Stock Appreciation Rights SARs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Proceeds received from the exercise of stock options	$ 17	$ 9
Intrinsic value of stock options exercised	90	27	$ 1
Performance-Based Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Proceeds received from the exercise of stock options	10	8
Intrinsic value of stock options exercised	$ 43	$ 31

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Stock-Based Compensation - Summary of Activity of Performance Share (Detail) - Performance shares shares in Millions	12 Months Ended
	Dec. 31, 2015 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted | shares	0.6
Forfeitures | shares	(0.1)
Shares outstanding, Ending balance | shares	0.5
Granted | $ / shares	$ 25.13
Forfeitures | $ / shares	25.08
Weighted Average Grant Date Fair Value, Ending balance | $ / shares	$ 25.14

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Stock-Based Compensation - Summary of Activity of Restricted Stock and RSU (Detail) - Restricted Stock and Restricted Stock Units shares in Millions	12 Months Ended
	Dec. 31, 2015 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares outstanding, Beginning balance | shares	1.4
Granted | shares	1.0
Forfeitures | shares	(0.1)
Shares outstanding, Ending balance | shares	2.3
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares	$ 19.55
Granted | $ / shares	27.47
Forfeitures | $ / shares	19.50
Weighted Average Grant Date Fair Value, Ending balance | $ / shares	$ 22.76

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Stock-Based Compensation - Summary of Fair Value for Restricted Stock Units (Detail) - Restricted Stock and Restricted Stock Units with Service Conditions - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Fair value of restricted stock and RSUs which vested during the year	$ 2	$ 2
Fair value of restricted stock and RSUs outstanding	$ 37	$ 1	$ 59

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Income Taxes - Schedule of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
U.S.	$ (61)	$ (455)	$ (240)
Non-U.S.	278	170	192
Income (loss) before income taxes	$ 217	$ (285)	$ (48)

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Income Taxes - Schedule of Provision for (Benefit from) Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
U.S. Federal and State:
Current	$ 7		$ 6
Deferred	(269)	$ (141)	(178)
Total provision for (benefit from) income taxes, U.S. Federal and State	(262)	(141)	(172)
Non-U.S.:
Current	85	85	66
Deferred	(23)	(40)	(24)
Total provision for (benefit from) income taxes, Non-U.S.	62	45	42
Total	$ (200)	$ (96)	$ (130)

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Income Taxes - Effective Tax Rate Reconciliation (Detail)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract]
Tax expense (benefit) at statutory rate	35.00%	(35.00%)	(35.00%)
State and local income taxes, net of Federal tax benefit	4.00%	(1.00%)	(21.00%)
Impact of Non-U.S. tax rates and credit	(5.00%)	8.00%	(21.00%)
Impact of tax rate changes	(3.00%)	1.00%	(12.00%)
Restructuring effect on deferred tax liability		(2.00%)	(178.00%)
Impact of change in assertion related to unremitted earnings	(118.00%)
Contract/statute of limitations expirations	(2.00%)	(2.00%)	(10.00%)
Reserves for uncertain tax positions	2.00%	3.00%	20.00%
Audit settlements	(1.00%)	(4.00%)	(12.00%)
Other, net	(4.00%)	(2.00%)
Total tax benefit	(92.00%)	(34.00%)	(269.00%)

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Jun. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax [Line Items]
Provision for (benefit from) income taxes			$ (200)	$ (96)	$ (130)
Reversal of deferred tax liability	$ 256
Deferred tax liability attributable to undistributed earnings			12	266
Tax charge on unrecognized tax benefits, interest and penalties			2	3	2
Tax expense related to unrecognized tax benefits			28	28	38
Unrecognized tax benefits, interest and penalties			9	9	11
Reserve reversals due to audit settlements		$ 6			10
Changes in deferred tax liability due to foreign entity restructuring				5	86
Cash received from income tax refunds			3	$ 12	63
Reserve reversal due to expiration of statute of limitations					5
Tax reductions for the reversal of a valuation allowance					2
Unrecognized tax benefits to be recognized over the next 12 months			3
Tax credit and tax loss carryforwards, tax effect			433
Indefinite carryforwards			26
Definite carryforwards			407
Net operating loss carryforward			399
Gross amount of net operating loss carryforwards that would impact additional paid in capital if tax benefit realized			78
Book-over-tax basis difference on investments in non-U.S. subsidiaries			1,571
Amount of book-over-tax basis difference related to purchase accounting adjustments			826
Amount of book-over-tax basis difference related to undistributed earnings			745
Deferred income taxes not provided on earnings			270
Specific Audit
Income Tax [Line Items]
Cash received from income tax refunds					$ 47
State and Local and Non-U.S.
Income Tax [Line Items]
Valuation allowances			$ 101

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Income Taxes - Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward
Gross unrecognized tax benefits at beginning of year	$ 30	$ 42	$ 42
Gross (decreases) increases – prior period positions		(10)
Gross increases – current period positions	4	5	11
Increases (decreases) – settlement with tax authorities			(7)
Reductions – lapse of statute of limitations	(3)	(4)	(4)
Other	1	(3)
Gross unrecognized tax benefits at end of year	$ 32	$ 30	$ 42

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Income Taxes - Schedule of Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Deferred Tax Assets:
Net operating losses	$ 265	$ 211
Foreign tax credits	145	127
Employment benefits	18	14
Deferred revenues	20	14
Equity compensation	34	36
Postemployment benefits	17	8
Non-U.S. intangibles	2	5
Accrued liabilities	10	11
Other	61	50
Gross deferred tax assets	572	476
Valuation allowance	(101)	(66)
Total deferred tax assets	471	410
Deferred Tax Liabilities:
Intangible assets	(660)	(711)
Undistributed earnings	(12)	(266)
Computer software	(159)	(118)
Depreciation	(10)	(11)
Foreign exchange	(117)	(50)
Other	(24)	(55)
Total deferred tax liabilities	(982)	(1,211)
Net Deferred Tax Liability	$ (511)	$ (801)

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Commitments - Schedule of Minimum Annual Payment Under Contractual Obligations (Detail) $ in Millions	Dec. 31, 2015 USD ($)
Other Commitments [Line Items]
2016	$ 342
2017	211
2018	113
2019	86
2020	69
Thereafter	60
Total	881
Operating Lease
Other Commitments [Line Items]
2016	66
2017	52
2018	41
2019	31
2020	29
Thereafter	51
Total	270
Data Acquisition and Telecommunication Services
Other Commitments [Line Items]
2016	253
2017	143
2018	62
2019	48
2020	37
Thereafter	9
Total	552
Computer And Other Leases
Other Commitments [Line Items]
2016	23
2017	16
2018	10
2019	7
2020	3
Total	$ 59

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Commitments - Schedule of Minimum Annual Payment Under Contractual Obligations (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Other Commitments [Line Items]
Rental expense	$ 70	$ 51	$ 49
Data Acquisition and Telecommunication Services
Other Commitments [Line Items]
Expense under long-term contracts	263	221	215
Computer And Other Leases
Other Commitments [Line Items]
Rental expense	$ 26	$ 28	$ 25

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Contingencies - Additional Information (Detail) - SKI Contingency - USD ($) $ in Millions		9 Months Ended	12 Months Ended
	Apr. 23, 2015	Sep. 30, 2014	Dec. 31, 2010	Dec. 31, 2008
Loss Contingencies [Line Items]
Contingency reserve				$ 4.0
Additional contingency reserve			$ 2.0
GSA settlement amount		$ 1.5
Settlement agreement payment	$ 1.5

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Supplemental Financial Data - Schedule of Accounts Receivable, Net (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Accounts Receivable, net:
Trade	$ 460	$ 296
Allowances	(9)	(5)
Unbilled receivables	57	39
Accounts receivable, net	$ 508	$ 330

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Supplemental Financial Data - Schedule of Other Current Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Other Current Assets:
Deferred income taxes		$ 105
Prepaid expenses	$ 71	59
Work-in-process inventory	59	49
Income taxes receivable	10	4
Restricted cash	10	24
Other	38	53
Other current assets	$ 188	$ 294

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Supplemental Financial Data - Schedule of Property, Plant and Equipment, Net (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment, net:
Property, plant and equipment, gross	$ 314	$ 291
Accumulated depreciation and amortization	(147)	(138)
Property, plant and equipment, net	167	153
Buildings and improvements
Property, Plant and Equipment, net:
Property, plant and equipment, gross	$ 53	54
Buildings and improvements | Minimum
Property, Plant and Equipment, net:
Property, Plant and Equipment, Estimated Useful Lives	40 years
Buildings and improvements | Maximum
Property, Plant and Equipment, net:
Property, Plant and Equipment, Estimated Useful Lives	50 years
Machinery and equipment
Property, Plant and Equipment, net:
Property, plant and equipment, gross	$ 209	189
Machinery and equipment | Minimum
Property, Plant and Equipment, net:
Property, Plant and Equipment, Estimated Useful Lives	3 years
Machinery and equipment | Maximum
Property, Plant and Equipment, net:
Property, Plant and Equipment, Estimated Useful Lives	15 years
Leasehold improvements
Property, Plant and Equipment, net:
Property, plant and equipment, gross	$ 48	43
Leasehold improvements | Minimum
Property, Plant and Equipment, net:
Property, Plant and Equipment, Estimated Useful Lives	1 year
Leasehold improvements | Maximum
Property, Plant and Equipment, net:
Property, Plant and Equipment, Estimated Useful Lives	11 years
Construction-in-progress
Property, Plant and Equipment, net:
Property, plant and equipment, gross	$ 4	$ 5

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Supplemental Financial Data - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property Plant And Equipment [Abstract]
Depreciation expense	$ 44	$ 48	$ 37
Computer software accumulated amortization	452	385
Computer software amortization expense	$ 117	$ 103	$ 86

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Supplemental Financial Data - Schedule of Computer Software, Net (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Computer Software, net:
Beginning balance	$ 258	$ 263
Additions at cost	131	95
Acquisitions	41	2
Amortization	(117)	(103)	$ (86)
Impairments, foreign exchange and other	(4)	1
Ending balance	$ 309	$ 258	$ 263

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Supplemental Financial Data - Schedule of Other Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Other Assets:
Long-term pension assets	$ 53	$ 57
Securities and other investments	11	3
Long-term deferred tax asset	15	7
Other	30	45
Other assets	$ 109	$ 112

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Supplemental Financial Data - Schedule of Accounts Payable (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Accounts Payable:
Trade	$ 53	$ 25
Taxes other than income taxes	94	58
Other	16	4
Accounts payable	$ 163	$ 87

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Supplemental Financial Data - Schedule of Accrued and Other Current Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Accrued and Other Current Liabilities:
Salaries, wages, bonuses and other compensation	$ 165	$ 171
Accrued data acquisition costs	81	86
Accrued interest	18	17
Accrued professional fees	48	35
Accrued income taxes	36	42
Deferred tax liability		9
Accrued severance and other costs	56	21
Contingent consideration liability	16	18
Accrued loyalty	99
Other	92	82
Accrued and other current liabilities	$ 611	$ 481

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Supplemental Financial Data - Schedule of Other Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Other Liabilities:
Long-term uncertain tax benefits reserve	$ 19	$ 19
Contingent consideration liability	12	6
Other	52	56
Other liabilities	$ 83	$ 81

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Related Party - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Apr. 30, 2014	Dec. 31, 2014	Dec. 31, 2013
Related Party Transaction [Line Items]
Monitoring fees paid for provision of services		$ 2	$ 8
IPO
Related Party Transaction [Line Items]
Related party transaction, settlement amount	$ 72	$ 72

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Operations by Business Segment - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2015 Segment
Segment Reporting [Abstract]
Number of operating segments	1
Number of reportable segments	1

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Operations by Business Segment - Schedule of Geographic Information for Operating Regions (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Geographical Information [Line Items]
Revenue	$ 2,921	$ 2,641	$ 2,544
Operating income (loss)	364	208	354
Total assets	7,459	7,096	7,908
Americas
Geographical Information [Line Items]
Revenue	1,326	1,205	1,160
Operating income (loss)	222	283	297
Total assets	4,144	3,833	4,065
EMEAI
Geographical Information [Line Items]
Revenue	1,157	1,007	951
Operating income (loss)	215	276	276
Total assets	2,200	2,035	2,450
Asia Pacific
Geographical Information [Line Items]
Revenue	438	429	433
Operating income (loss)	117	134	147
Total assets	1,112	1,112	1,266
Corporate and Other
Geographical Information [Line Items]
Operating income (loss)	(190)	(485)	(366)
Total assets	$ 3	$ 116	$ 127

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Operations by Business Segment - Schedule of Geographic Information for Operating Regions (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Geographical Information [Line Items]
Revenue	$ 2,921	$ 2,641	$ 2,544
Assets	7,459	7,096	7,908
Depreciation and amortization expense	180	290	287
United States
Geographical Information [Line Items]
Revenue	1,127	986	935
Assets	4,046	3,659	3,837
Japan
Geographical Information [Line Items]
Revenue	245	252	261
Americas
Geographical Information [Line Items]
Revenue	1,326	1,205	1,160
Assets	4,144	3,833	4,065
Americas | Assets Recorded In Connection With Merger Transaction
Geographical Information [Line Items]
Depreciation and amortization expense	83	126	126
EMEAI
Geographical Information [Line Items]
Revenue	1,157	1,007	951
Assets	2,200	2,035	2,450
EMEAI | Assets Recorded In Connection With Merger Transaction
Geographical Information [Line Items]
Depreciation and amortization expense	26	86	87
Asia Pacific
Geographical Information [Line Items]
Revenue	438	429	433
Assets	1,112	1,112	1,266
Asia Pacific | Assets Recorded In Connection With Merger Transaction
Geographical Information [Line Items]
Depreciation and amortization expense	$ 24	$ 39	$ 42

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Earnings (Loss) per Share - Composition of Basic and Diluted Weighted Average Shares Outstanding (Detail) - shares shares in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Earnings Per Share [Abstract]
Basic weighted-average common shares outstanding	331.0	319.0	280.0
Effect of dilutive stock-based awards	8.3		7.0
Diluted weighted-average common shares outstanding	339.3	319.0	287.0
Shares excluded from computation of diluted (loss) earnings per share:
Weighted average potential common shares excluded from computation due to anti-dilutive effect	1.6	18.7

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Subsequent Events - Additional Information (Detail) $ in Millions	Jan. 31, 2016 USD ($)
Subsequent Event | 2016 Term Loan Amended
Subsequent Event [Line Items]
Additional borrowing capacity under Term A loans	$ 300

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Schedule I - Condensed Statements of Financial Position (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Current Assets:
Other current assets	$ 188	$ 294
Total Current Assets	1,092	1,014
Other assets	109	112
Total Assets	7,459	7,096	$ 7,908
Current Liabilities:
Total Liabilities	5,887	5,554
Shareholders’ Equity	1,572	1,542	$ 883	$ 1,683
Total Liabilities and Shareholders’ Equity	7,459	7,096
Parent Company
Current Assets:
Other current assets	4	5
Amounts receivable from subsidiaries	16	16
Total Current Assets	20	21
Investment in subsidiaries	1,533	1,538
Other assets	67	58
Total Assets	1,620	1,617
Current Liabilities:
Amounts payable to subsidiaries	48	75
Total Liabilities	48	75
Shareholders’ Equity	1,572	1,542
Total Liabilities and Shareholders’ Equity	$ 1,620	$ 1,617

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Schedule I - Condensed Statements of Comprehensive Income Loss (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Condensed Statement Of Income Captions [Line Items]
Operating costs of information	$ 666	$ 665	$ 648
Direct and incremental costs of technology services	750	573	520
Selling and administrative expenses	712	721	596
Benefit from income taxes	200	96	130
Net Income (Loss)	417	(189)	82
Other Comprehensive Loss:
Cumulative translation adjustment (net of taxes of $(42), $(27) and $—, respectively)	(118)	(178)	(183)
Unrealized gains on derivative instruments (net of taxes of $—, $— and $(4), respectively)	1	2	9
Gains on derivative instruments, reclassified into earnings (net of taxes of $9, $2 and $5, respectively)	(15)	(4)	(9)
Postretirement and postemployment adjustments (net of taxes of $—, $13, and $(16), respectively)	(1)	(30)	24
Other Comprehensive Loss	(133)	(210)	(159)
Total Comprehensive Income (Loss)	284	(399)	(77)
Parent Company
Condensed Statement Of Income Captions [Line Items]
Operating costs of information	2	6	3
Direct and incremental costs of technology services	2	5	2
Selling and administrative expenses	21	47	17
Loss before income taxes and equity in net income (loss) of subsidiaries	(25)	(58)	(22)
Benefit from income taxes	8	19	7
Equity in net income (loss) of subsidiaries	434	(150)	97
Net Income (Loss)	417	(189)	82
Other Comprehensive Loss:
Cumulative translation adjustment (net of taxes of $(42), $(27) and $—, respectively)	(118)	(178)	(183)
Unrealized gains on derivative instruments (net of taxes of $—, $— and $(4), respectively)	1	2	9
Gains on derivative instruments, reclassified into earnings (net of taxes of $9, $2 and $5, respectively)	(15)	(4)	(9)
Postretirement and postemployment adjustments (net of taxes of $—, $13, and $(16), respectively)	(1)	(30)	24
Other Comprehensive Loss	(133)	(210)	(159)
Total Comprehensive Income (Loss)	$ 284	$ (399)	$ (77)

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Schedule I - Condensed Statements of Comprehensive Income Loss (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Condensed Statement Of Income Captions [Line Items]
Cumulative translation adjustment, taxes	$ (42)	$ (27)
Unrealized (losses) gains on derivatives, taxes			$ (4)
Losses (gains) on derivative instruments, reclassified into earnings, taxes	9	2	5
Postretirement and postemployment adjustments, taxes		13	(16)
Parent Company
Condensed Statement Of Income Captions [Line Items]
Cumulative translation adjustment, taxes	(42)	(27)
Unrealized (losses) gains on derivatives, taxes			(4)
Losses (gains) on derivative instruments, reclassified into earnings, taxes	$ 9	2	5
Postretirement and postemployment adjustments, taxes		$ 13	$ (16)

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Schedule I - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Aug. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Non-Cash Investing and Financing Activities:
Acquisitions of treasury stock		$ 314	$ 3	$ 1
Dividends paid				(753)
Parent Company
Non-Cash Investing and Financing Activities:
Acquisitions of treasury stock		$ 314
Dividends paid	$ (753)			$ (753)

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Schedule I - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions		1 Months Ended			12 Months Ended
	May. 12, 2015	Dec. 31, 2015	May. 31, 2015	Aug. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Condensed Financial Statements Captions [Line Items]
Shares of common stock repurchased	11,100				670
Aggregate value of common stock repurchased	$ 300	$ 17			$ 317	$ 3	$ 2
Average value per share of common stock repurchased	$ 27.0875				$ 25.70
Dividends paid to shareholders							753
Parent Company
Condensed Financial Statements Captions [Line Items]
Shares of common stock repurchased		670	11,100
Aggregate value of common stock repurchased		$ 17	$ 300
Average value per share of common stock repurchased			$ 27.0875		$ 25.70
Dividends declared, per share				$ 2.60
Dividends paid to shareholders				$ 753			$ 753

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Schedule II - Valuation and Qualifying Accounts (Detail) - Valuation Allowance for Deferred Income Taxes - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	$ 66	$ 49	$ 45
Additions Charged to Costs and Expenses	35	21	9
Deductions		(4)	(5)
Balance at End of Period	$ 101	$ 66	$ 49