UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark one)
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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 September 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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Not Applicable |
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(Former name, former address and former fiscal year, if changed since last report) |
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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 by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). 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 $.01 per share |
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239,459,616 |
IMS HEALTH INCORPORATED
INDEX TO FORM 10-Q
2
IMS HEALTH INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited)
(Dollars and shares in thousands, except per share data)
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As
of September 30, |
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As
of December 31, |
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Assets: |
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Current Assets: |
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Cash and cash equivalents |
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$ |
307,422 |
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$ |
289,261 |
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Short-term marketable securities |
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34,312 |
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— |
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Accounts receivable, net of allowances of $4,846 and $5,808 in 2003 and 2002, respectively |
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227,121 |
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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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109,519 |
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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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678,374 |
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827,264 |
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Securities and other investments |
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15,316 |
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18,239 |
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TriZetto equity investment (Note 8) |
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49,448 |
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74,557 |
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Property, plant and equipment, net of accumulated depreciation of $166,134 and $150,606 in 2003 and 2002, respectively |
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132,375 |
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131,587 |
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Computer software |
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185,032 |
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168,985 |
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Goodwill |
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231,266 |
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184,163 |
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Other assets |
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187,327 |
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159,070 |
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Non-current assets of discontinued operations |
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— |
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54,663 |
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Total Assets |
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$ |
1,479,138 |
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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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$ |
31,810 |
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$ |
31,940 |
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Accrued and other current liabilities |
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170,320 |
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152,201 |
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Short-term debt |
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185,543 |
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204,812 |
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Accrued income taxes |
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154,182 |
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143,872 |
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Short-term deferred tax liability |
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12,126 |
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11,964 |
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Deferred revenues |
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95,359 |
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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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649,340 |
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678,583 |
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Postretirement and postemployment benefits |
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72,804 |
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73,813 |
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Long-term debt (Note 10) |
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342,762 |
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325,000 |
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Other liabilities |
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177,717 |
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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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$ |
1,242,623 |
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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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$ |
101,269 |
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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 $.01, authorized
800,000 shares; |
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$ |
3,350 |
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$ |
3,350 |
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Capital in excess of par |
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497,948 |
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497,562 |
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Retained earnings |
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1,724,620 |
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1,165,090 |
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Treasury stock, at cost, 95,586 and 53,980 shares at |
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(2,000,918 |
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(1,316,354 |
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Cumulative translation adjustment |
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(69,970 |
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(106,907 |
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Minimum pension liability adjustment, net of taxes of $8,371 at September 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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(2,809 |
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(3,141 |
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Unrealized gains on investments, net of taxes of $276 and $76 at September 30, 2003 and December 31, 2002, respectively |
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512 |
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143 |
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Total Shareholders’ Equity |
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$ |
135,246 |
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$ |
222,256 |
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Total Liabilities, Minority Interests and Shareholders’ Equity |
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$ |
1,479,138 |
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$ |
1,618,528 |
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See accompanying Notes to the Condensed Consolidated Financial Statements (unaudited).
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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$ |
345,978 |
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$ |
306,048 |
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Operating costs |
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137,954 |
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110,723 |
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Selling and administrative expenses |
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81,684 |
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70,416 |
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Depreciation and amortization |
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18,398 |
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14,398 |
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Operating Income |
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107,942 |
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110,511 |
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Interest income |
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739 |
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1,552 |
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Interest expense |
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(3,688 |
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(3,960 |
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Gains from investments, net |
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1,964 |
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1,200 |
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Loss on issuance of investees’ stock, net |
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(143 |
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(489 |
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Other expense, net |
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