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Segments
9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Segments

16. Segments

The following table presents the Company’s operations by reportable segment. The Company is managed through two reportable segments, Product Development and Integrated Healthcare Services. Product Development, which primarily serves biopharmaceutical clients engaged in research and development, provides clinical research and clinical trial services. Integrated Healthcare Services provides commercialization services to biopharmaceutical clients and research, analytics, real-world and late phase research, and other services to both biopharmaceutical clients and the broader healthcare market.

Certain costs are not allocated to the Company’s segments and are reported as general corporate and unallocated expenses. These costs primarily consist of stock-based compensation, and expenses for corporate overhead functions such as senior leadership, finance, human resources, information technology, facilities and legal. The Company does not allocate restructuring costs, merger related costs or impairment charges to its segments. Information presented below is in thousands:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Service revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Development

 

$

874,312

 

 

$

810,045

 

 

$

2,601,909

 

 

$

2,345,971

 

Integrated Healthcare Services

 

 

262,111

 

 

 

283,435

 

 

 

809,600

 

 

 

851,849

 

Total service revenues

 

 

1,136,423

 

 

 

1,093,480

 

 

 

3,411,509

 

 

 

3,197,820

 

Costs of revenue, service costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Development

 

 

499,638

 

 

 

461,858

 

 

 

1,513,353

 

 

 

1,352,730

 

Integrated Healthcare Services

 

 

204,153

 

 

 

221,200

 

 

 

631,643

 

 

 

676,000

 

Total costs of revenue, service costs

 

 

703,791

 

 

 

683,058

 

 

 

2,144,996

 

 

 

2,028,730

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Development

 

 

167,732

 

 

 

166,758

 

 

 

505,378

 

 

 

478,643

 

Integrated Healthcare Services

 

 

35,172

 

 

 

38,186

 

 

 

111,422

 

 

 

114,953

 

General corporate and unallocated

 

 

30,741

 

 

 

26,471

 

 

 

83,987

 

 

 

83,323

 

Total selling, general and administrative expenses

 

 

233,645

 

 

 

231,415

 

 

 

700,787

 

 

 

676,919

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Development

 

 

206,942

 

 

 

181,429

 

 

 

583,178

 

 

 

514,598

 

Integrated Healthcare Services

 

 

22,786

 

 

 

24,049

 

 

 

66,535

 

 

 

60,896

 

General corporate and unallocated

 

 

(30,741

)

 

 

(26,471

)

 

 

(83,987

)

 

 

(83,323

)

Restructuring costs

 

 

467

 

 

 

(11,984

)

 

 

(27,791

)

 

 

(23,542

)

Merger related costs

 

 

(3,747

)

 

 

 

 

 

(12,689

)

 

 

 

Impairment charges

 

 

(27,937

)

 

 

 

 

 

(27,937

)

 

 

 

Total income from operations

 

$

167,770

 

 

$

167,023

 

 

$

497,309

 

 

$

468,629

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Depreciation and amortization expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Development

 

$

29,593

 

 

$

26,681

 

 

$

82,575

 

 

$

74,110

 

Integrated Healthcare Services

 

 

4,020

 

 

 

5,118

 

 

 

12,549

 

 

 

15,497

 

General corporate and unallocated

 

 

990

 

 

 

1,085

 

 

 

3,244

 

 

 

3,617

 

Total depreciation and amortization expense

 

$

34,603

 

 

$

32,884

 

 

$

98,368

 

 

$

93,224