SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended June 30, 2003 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from to |
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Commission file number 001-14049 |
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IMS Health Incorporated |
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(Exact name of registrant as specified in its charter) |
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Delaware |
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06-1506026 |
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(State of Incorporation) |
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(I.R.S. Employer Identification No.) |
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1499 Post Road, Fairfield, CT |
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06824 |
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(Address of principal executive offices) |
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(Zip Code) |
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Registrant’s telephone number, including area code (203) 319-4700 |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 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 ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
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Title |
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Shares
Outstanding |
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Common Stock, par value $.01 per share |
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239,100,245 |
IMS HEALTH INCORPORATED
INDEX TO FORM 10-Q
2
PART
I. FINANCIAL INFORMATION
Item I. FINANCIAL STATEMENTS
IMS HEALTH INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS
OF FINANCIAL POSITION (Unaudited)
(Dollars and shares in thousands, except per share data)
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As of June 30, |
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As of December 31, |
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Assets: |
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Current Assets: |
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Cash and cash equivalents |
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$ |
286,529 |
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$ |
289,261 |
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Short-term marketable securities |
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27,862 |
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— |
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Accounts receivable, net of allowances of $7,631 and $5,808 in 2003 and 2002, respectively |
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240,218 |
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215,868 |
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Other receivable (Note 9) |
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— |
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36,116 |
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Other current assets |
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114,705 |
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110,258 |
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Current assets of discontinued operations |
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— |
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175,761 |
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Total Current Assets |
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669,314 |
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827,264 |
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Securities and other investments |
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17,082 |
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18,239 |
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TriZetto equity investment (Note 8) |
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49,232 |
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74,557 |
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Property, plant and equipment, net of accumulated depreciation of $162,507 and $150,606 in 2003 and 2002, respectively |
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134,094 |
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131,587 |
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Computer software |
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179,236 |
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168,985 |
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Goodwill |
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226,135 |
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184,163 |
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Other assets |
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187,888 |
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159,070 |
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Non-current assets of discontinued operations |
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— |
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54,663 |
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Total Assets |
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$ |
1,462,981 |
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$ |
1,618,528 |
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Liabilities, Minority Interests and Shareholders’ Equity: |
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Current Liabilities: |
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Accounts payable |
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$ |
36,717 |
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$ |
31,940 |
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Accrued and other current liabilities |
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171,538 |
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152,201 |
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Short-term debt |
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250,023 |
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204,812 |
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Accrued income taxes |
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134,947 |
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143,872 |
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Short-term deferred tax liability |
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12,119 |
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11,964 |
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Deferred revenues |
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108,475 |
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94,061 |
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Current liabilities of discontinued operations |
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— |
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39,733 |
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Total Current Liabilities |
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713,819 |
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678,583 |
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Postretirement and postemployment benefits |
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74,110 |
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73,813 |
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Long-term debt (Note 10) |
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345,015 |
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325,000 |
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Other liabilities |
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170,939 |
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107,894 |
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Non-current liabilities of discontinued operations |
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— |
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31,622 |
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Total Liabilities |
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$ |
1,303,883 |
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$ |
1,216,912 |
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Commitments and contingencies (Note 9) |
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Minority Interests |
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$ |
103,326 |
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$ |
102,033 |
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Minority Interests of discontinued operations |
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— |
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77,327 |
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Shareholders’ Equity: |
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Common Stock, par value $.01, authorized 800,000 shares; issued 335,045 shares at June 30, 2003 and December 31, 2002, respectively |
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$ |
3,350 |
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$ |
3,350 |
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Capital in excess of par |
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500,068 |
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497,562 |
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Retained earnings |
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1,660,197 |
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1,165,090 |
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Treasury stock, at cost, 95,956 and 53,980 shares at June 30, 2003 and December 31, 2002, respectively |
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(2,009,931 |
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(1,316,354 |
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Cumulative translation adjustment |
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(77,634 |
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(106,907 |
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Minimum pension liability adjustment, net of taxes of $8,371 at June 30, 2003 and December 31, 2002 |
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(17,487 |
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(17,487 |
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Unrealized loss on changes in fair value of cash flow hedges, net of tax |
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(3,270 |
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(3,141 |
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Unrealized gains on investments, net of taxes of $258 and $76 at June 30, 2003 and December 31, 2002, respectively |
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479 |
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143 |
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Total Shareholders’ Equity |
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$ |
55,772 |
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$ |
222,256 |
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Total Liabilities, Minority Interests and Shareholders’ Equity |
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$ |
1,462,981 |
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$ |
1,618,528 |
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3
IMS HEALTH INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars and shares in thousands, except per share data)
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Three Months Ended |
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2003 |
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2002 |
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Operating Revenue |
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$ |
337,776 |
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$ |
303,900 |
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Operating costs |
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135,311 |
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119,834 |
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Selling and administrative expenses |
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85,335 |
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77,775 |
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Depreciation and amortization |
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19,831 |
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12,014 |
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Operating Income |
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97,299 |
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94,277 |
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Interest income |
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1,255 |
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1,379 |
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Interest expense |
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(3,920 |
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(3,625 |
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Gains (losses) from investments, net |
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32 |
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2,470 |
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Gain (loss) on issuance of investees’ stock, net |
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54 |
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(86 |
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Other expense, net |
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(9,835 |
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(15,607 |
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Non-Operating Income (Loss), Net |
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(12,414 |
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