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 |
|
|