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 March 31, 2005 |
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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 001-14049
IMS
Health Incorporated
(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) |
Registrant’s telephone number, including area code (203) 319-4700
Not Applicable
(Former name, former address and former fiscal year, if changed since last
report)
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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of Class |
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At March 31, 2005 |
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Common Stock, par value $.01 per share |
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226,591,694 |
IMS HEALTH INCORPORATED
INDEX TO FORM 10-Q
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Item 3. Quantitative and Qualitative Disclosures About Market Risk |
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Item 2. Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities |
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2
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
IMS HEALTH INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION (Unaudited)
(Dollars and shares in thousands, except per
share data)
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As of March 31, |
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As of December 31, |
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Assets: |
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Current Assets: |
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Cash and cash equivalents |
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$ |
401,327 |
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$ |
444,903 |
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Short-term marketable securities |
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6,748 |
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15,053 |
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Accounts receivable, net of allowances of $7,567 and $8,270 in 2005 and 2004, respectively |
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330,312 |
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280,548 |
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Other current assets |
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190,534 |
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196,015 |
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Total Current Assets |
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928,921 |
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936,519 |
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Securities and other investments |
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8,032 |
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7,915 |
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Property, plant and equipment, net of accumulated depreciation of $194,032 and $192,440 in 2005 and 2004, respectively |
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140,082 |
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145,214 |
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Computer software |
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235,007 |
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230,021 |
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Goodwill |
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342,972 |
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302,229 |
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Other assets |
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269,206 |
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268,808 |
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Total Assets |
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$ |
1,924,220 |
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$ |
1,890,706 |
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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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$ |
70,523 |
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$ |
70,344 |
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Accrued and other current liabilities |
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208,893 |
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237,139 |
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Accrued income taxes |
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177,919 |
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116,985 |
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Short-term deferred tax liability |
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9,641 |
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9,923 |
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Deferred revenues |
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117,794 |
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119,730 |
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Total Current Liabilities |
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584,770 |
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554,121 |
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Postretirement and postemployment benefits |
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99,531 |
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99,899 |
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Long-term debt (Note 9) |
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731,490 |
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626,670 |
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Other liabilities |
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219,326 |
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252,326 |
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Total Liabilities |
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$ |
1,635,117 |
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$ |
1,533,016 |
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Commitments and Contingencies (Note 8) |
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Minority Interests |
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$ |
99,645 |
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$ |
101,976 |
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Shareholders’ Equity: |
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Common Stock, par value $.01, authorized 800,000 shares; issued 335,045 shares at March 31, 2005 and December 31, 2004, respectively |
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$ |
3,350 |
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$ |
3,350 |
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Capital in excess of par |
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473,742 |
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477,768 |
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Retained earnings |
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2,081,852 |
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2,056,079 |
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Treasury stock, at cost, 108,454 and 105,916 shares at March 31, 2005 and December 31, 2004, respectively |
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(2,330,404 |
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(2,268,414 |
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Cumulative translation adjustment |
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(14,059 |
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12,239 |
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Minimum pension liability adjustment, net of taxes of $11,129 at March 31, 2005 and December 31, 2004 |
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(24,691 |
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(24,691 |
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Unrealized loss on changes in fair value of cash flow hedges, net of tax |
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(312 |
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(665 |
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Unrealized (loss) gain on investments, net of tax |
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(20 |
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48 |
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Total Shareholders’ Equity |
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$ |
189,458 |
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$ |
255,714 |
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Total Liabilities, Minority Interests and Shareholders’ Equity |
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$ |
1,924,220 |
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$ |
1,890,706 |
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3
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Three Months Ended |
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2005 |
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2004 |
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Operating Revenue |
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$ |
410,984 |
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$ |
361,576 |
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Operating costs |
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183,357 |
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152,688 |
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Selling and administrative expenses |
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106,078 |
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90,950 |
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Depreciation and amortization |
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24,677 |
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21,706 |
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Operating Income |
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96,872 |
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96,232 |
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Interest income |
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2,355 |
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962 |
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Interest expense |
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(6,153 |
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(4,271 |
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Gains from investments, net |
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2,671 |
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6,453 |
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Other income, net |
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