ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Massachusetts | 04-2776269 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |
195 West Street, Waltham, Massachusetts | 02451 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class: | Name of each exchange on which registered: | |
Common Stock, $.01 par value per share | Nasdaq Global Select Market |
Large Accelerated Filer | ý | Accelerated Filer | ¨ | |||
Non-accelerated Filer | ¨ (Do not check if smaller reporting company) | Smaller Reporting Company | ¨ |
• | Study Protocol Design – The protocol defines, among other things, the medical issues a study seeks to examine and the statistical tests that will be conducted. Accordingly, the protocol specifies the frequency and type of laboratory and clinical measures that are to be tracked and analyzed, the number of patients required to produce a statistically valid result, the period of time over which such patients must be tracked and the frequency and dosage of drug administration. |
• | CRF Design – Once the study protocol has been finalized, a paper or electronic CRF must be developed. The CRF is the critical document for collecting the necessary clinical data as dictated by the study protocol. It may change at different stages of a trial. |
• | Site and Investigator Recruitment – The product under investigation is administered to patients usually by third-party physicians, serving as independent contractors (referred to as investigators) at hospitals, clinics, or other locations, referred to as clinical sites. Medical devices are implemented or tested by investigators in similar settings. Potential investigators may be identified and solicited by the product sponsor. A significant portion of a trial’s success depends on the successful identification and recruitment of experienced investigators with an adequate base of patients who satisfy the requirements of the study protocol. We have access to thousands of investigators who have conducted clinical trials for us. We provide additional services at the clinical site to assist physicians and expedite the clinical research process. |
• | Patient Enrollment – The investigators, usually with our assistance, find and enroll patients suitable for the study. The speed with which trials can be completed is significantly affected by the rate at which patients are enrolled. Prospective patients are required to review information about the clinical test and the investigational product and its possible side effects, and sign an informed consent form to record their knowledge and acceptance of potential side effects. Patients also undergo a medical examination to determine whether they meet the requirements of the study protocol. Patients then receive the product under investigation or a control (for example, a placebo) and are examined |
• | Study Monitoring and Data Collection – As patients are examined and tests are conducted in accordance with the study protocol and applicable regulatory requirements, data are recorded on CRFs, either electronically or paper-based. CRFs are transmitted electronically from study sites or collected by specially trained persons known as clinical monitors. Sites are closely managed over the telephone/internet and monitors visit the sites as needed to ensure that the CRFs are completed correctly and to verify that the study has been conducted in compliance with the protocol and regulatory requirements. We offer several EDC technologies, which significantly enhance both the quality and timeliness of clinical data capture and collection while achieving significant efficiency savings. Our study monitoring and data collection services are designed to comply with the adverse events reporting guidelines and related regulatory requirements of the FDA and other relevant regulatory agencies. Approximately 90% of new trials are EDC-based. |
• | Data Management – Our data management professionals provide a broad array of services to support the accurate collection, organization, validation, and analysis of clinical data. For instance, they assist in the design of CRFs and investigator training manuals to ensure that data are collected in an organized and consistent format in compliance with the study protocol and all applicable regulatory requirements. Databases are designed according to the analytical specifications of the project and the particular needs of the client. The use of scanning and imaging of the CRFs and the use of EDC technologies to gather and report clinical data expedites data exchange while minimizing data collection errors by permitting the verification of data integrity in a more timely manner. After the data is entered, the data management team performs an array of data abstraction, data review, medical coding, serious adverse event reconciliations, loading of electronic data (such as laboratory data), database verification, and editing and resolution of data problems. The data is then submitted in a format prescribed by the sponsor. Our CRS business segment has extensive experience throughout the world in the creation of scientific databases for all phases of the drug development process, including the creation of customized databases to meet client-specific formats, integrated databases to support new drug application (“NDA”) and equivalent submissions and databases created and maintained in compliance with FDA, European, Asian and other regulatory specifications and requirements. |
• | Biostatistics and Programming – Our biostatistics professionals assist clients with all phases of drug development, including biostatistical consulting, database design, data analysis, and statistical reporting. These professionals develop and review protocols, design appropriate analysis plans, and design report formats to address the objectives of the study protocol as well as the client’s individual objectives. Working with programming staff, biostatisticians/epidemiologists perform appropriate analyses and produce tables, graphs, listings, and other applicable displays of results according to an analysis plan. Our biostatisticians/epidemiologists may also represent clients during panel hearings at the FDA and other regulatory agencies. |
• | Report Writing – A description of the study conducted, along with the statistical analysis of data collected during the trial and other clinical data are presented and summarized in a final report generated for inclusion in a regulatory document. We assist clients with writing reports for inclusion in these documents. |
• | Medical Services – Throughout the course of a development program, our physicians provide a wide range of medical research and consulting services to improve the efficiency and quality of clinical research, including medical supervision of clinical trials, medical monitoring of patient safety, review and reporting of adverse events, medical writing, and strategy and product development. Our medical services professionals also provide lifecycle drug safety services combining operational pharmacovigilance and pharmacovigilance consulting. Operational pharmacovigilance capabilities cover all phases of clinical development and drug safety for marketed products. |
• | Project Management – Throughout the entire spectrum of activities described above, our CRS segment provides project management services. These services entail providing overall leadership to our project team, acting as the main client liaison, project planning, managing progress against study goals and deliverables, budget management, progress and metrics reporting, and issue resolution. These project management services are offered on all types of studies – single-service, multi-service, or full-service. |
• | Integrated Product Development Consulting – Our Integrated Product Development (“IPD”) consulting group provides comprehensive product development and regulatory consulting services for pharmaceutical, biotechnology, and medical device companies in major jurisdictions in the U.S., Europe, Japan and emerging markets in Asia, Middle East, North Africa, and Latin America. These services include drug and device development and regulatory strategy design, scientific and technical evaluation, writing and review services, preparation, review and submission of regulatory applications (both for clinical trials and for marketing authorizations) to regulatory authorities in dozens of countries, regulatory training for client personnel, and expert liaison with the FDA, EMA, and other regulatory agencies around the world. Our IPD consulting group works closely with clients to design product development and regulatory strategies and comprehensive registration programs. Our product development and regulatory experts include individuals who have joined us from the biopharmaceutical industry and form regulatory agencies such as the FDA and agencies in the UK, Germany, The Netherlands, Sweden, and France. Our experts review existing published literature and regulatory precedents, evaluate the client's scientific and technical data of a product (Non-Clinical, Clinical, Chemistry, Manufacturing and Controls (“CMC”) and Regulatory) based on their individual and collective expertise and experience, assess the competitive and regulatory environments in specific relation to our clients’ products and business goals, identify deficiencies in client product documentation (“gap analysis”), and define the steps necessary to obtain regulatory approvals in the most expeditious manner. Through these services, we help our clients obtain regulatory approval for particular products or product lines in markets around the world. |
• | Clinical Trial Regulatory Services – Our Clinical Trial Regulatory Services team helps clients to efficiently submit clinical trial applications (CTAs) to regulatory authorities throughout the world. We manage successful interactions with regulatory agencies and deliver regulatory submissions in more than 75 countries throughout the world. |
• | Strategic Compliance Consulting – Our Strategic Compliance group offers a range of specialized clinical and manufacturing consulting services designed to help pharmaceutical, biotechnology, and medical device companies achieve and maintain regulatory compliance, product quality, and process excellence. These services include clinical and manufacturing compliance strategy, assistance with addressing regulatory agency enforcement issues, risk management, GCP, GLP, GTP and current GMP audits, consent decrees, pre-approval inspection readiness, process optimization, organizational alignment, and training. Our Strategic Compliance group offers its clients experienced regulatory and industry professionals – formerly from the FDA or from the quality departments of major biotech, pharmaceutical, and medical device companies. |
• | Medical Communications Services – Our Medical Communications Services (“MedCom”) group assists biopharmaceutical clients in their efforts to achieve optimal market penetration for their products worldwide through expert medical communications and publications services. MedCom utilizes its expertise in strategic consultancy, market and competitive landscaping, publications planning, scientific writing, managed markets, and regulatory compliance to provide effective and compliant scientific communications to a diverse audience of provider, payer, and patient advocacy group stakeholders. An integrated communications plan can detail external and internal strategies, including communications objectives, target audiences, communications priorities and timing, key messages, key meetings and events, and target publications and media. MedCom supports marketing communication objectives across a broad spectrum of media from publications through interactive technologies. Other services include planning of meetings and exhibits in premier scientific conferences and symposia. |
• | Commercialization Consulting Services – Our Commercialization Consulting Services group provides commercialization strategies and deliverables that assist clients in understanding how changing marketplace dynamics may impact product development, product reimbursement, patient access and commercial success. We identify, gather, analyze, and communicate data that is critical to maximizing product value and commercial success. Our service lines include strategic market access planning, systematic reviews for evidence development, economic modeling and evaluation, pricing, reimbursement strategies, global value dossier writing, and engagement with Health Technology Assessment authorities. The acquisition of HERON is intended to strengthen our ability to offer our clients a full spectrum of services that aid in developing products through reimbursement and market access strategies. We help our clients better prepare their products for the market, better prepare the market for their products and demonstrate product value in the marketplace. |
• | eClinical Suite – Perceptive offers most of our proprietary products and services (described below) in a single scalable technology platform, providing a unified framework to access a suite of seamlessly integrated application, data and information associated with clinical trials and programs. The increase in individual technology applications adopted in clinical trials has created new integration challenges and workflow inefficiencies, resulting in unintended loss of productivity. Perceptive MyTrials addresses this challenge by providing sponsors and investigative site users with a single place to plan, design and conduct their clinical trials through full data integration and application convergence. |
• | ClinPhone Randomization & Trial Supply Management (ClinPhone RTSM) – Perceptive provides automated randomization and logistics management through its ClinPhone RTSM solutions. Our services include both Interactive Voice Response (“IVR”) and Interactive Web Response (“IWR”) technologies. The ClinPhone RTSM solutions are used in clinical trials to achieve treatment group balance, eliminate selection bias, and limit the predictability of treatment allocations, all of which are designed to comply with the latest regulatory requirements. ClinPhone RTSM allows effective real-time implementation of randomization algorithm modifications required for adaptive trial designs. |
• | Medical Imaging Services – Perceptive offers products and services that allow our clients to apply and manage medical imaging in clinical trials. Clinical study sponsors increasingly rely on imaging as a surrogate endpoint in support of efficacy and safety. Our therapeutic and imaging experts provide a range of capabilities in the application of imaging techniques from early clinical development through peri-approval studies. These services include: |
◦ | Standardization of imaging and image management at investigative sites |
◦ | Image collection at a central location |
◦ | Development of independent review charters for review and approval by regulatory authorities |
◦ | Employing directly or subcontracting independent reviewers and training these reviewers on the assessment criteria and reviewer roles and responsibilities |
◦ | Management of the logistical processes involved in the independent review |
• | Clinical Trial Management System (CTMS) – We offer CTMS solutions to assist biopharmaceutical companies with the complex process of planning and managing clinical trials. Our IMPACT® solution provides established global pharmaceutical companies and service organizations with flexible options that include hosted or on-premise solutions. |
• | Electronic Data Capture (EDC) – DataLabs® EDC is one of the industry’s first single data management systems that unifies the functionality of paper data entry (PDE) with the flexibility of electronic data capture (EDC). DataLabs EDC is able to combine data collected on paper with data collected electronically into one easy-to-use electronic clinical data management platform. The collected information feeds into a single database providing clients with fully integrated data. With DataLabs EDC, users are able to design a study, collect data using either method and then clean and manage that data using a single system. |
• | Electronic Patient Reported Outcomes (ePRO) – Patient self-reported data is increasingly playing a key part in efficacy and quality of life assessment, patient recruitment, symptom and safety information and medical compliance monitoring. Our ePRO solutions provide the flexibility to choose among the most commonly used ePRO methods, IVR, Web, personal digital assistant (“PDA”), and computer tablet (“Tablet”): |
◦ | IVR (Interactive Voice Response) – Our IVR platform enables ePRO delivery using the subject’s own telephone, making it highly cost-effective and simple to deploy; |
◦ | Web/IWR (Interactive Web Response) – The Web offers all of the advantages and benefits of IVR as subjects use any desktop or laptop connected to the Internet to securely access the ePRO application; and |
◦ | PDA/Tablet – Depending on the specific characteristics of the protocol, a device-based solution may be best suited for a study. |
• | E-Clinical Technology Services (eCTS) – Perceptive provides leading solutions to integrate systems and processes to help companies simplify the concurrent use of the multiple technologies involved in clinical trials. Perceptive’s integrations are delivered by our dedicated eCTS experts who have an in-depth understanding of advanced technologies, clinical development processes and validated system integrations. Perceptive’s integration solutions and services include our Clinical Technology Integration Platform (CTIP), which is a proprietary environment designed to facilitate seamless two-way exchange of data across different systems via reliable and repeatable integrations. Through |
• | LIQUENT Regulatory Information Management –We offer software and professional service solutions designed to support the regulatory business processes of our life science clients. Our product suite, LIQUENT InSight®, is an end-to-end, integrated RIM platform. LIQUENT InSight provides our clients with regulatory submission planning, publishing, viewing and registration management capabilities necessary to get their products to market and effectively maintain them throughout their lifespan. We also provide a full complement of flexible Regulatory Affairs consulting and Regulatory Operational outsourcing services to help our clients meet the demands of a dynamic regulatory landscape. |
• | a broad international presence with strategically located facilities and access to end markets; |
• | the ability to organize and manage large-scale clinical trials on a global basis; |
• | the ability to recruit investigators and patients expeditiously; |
• | medical and scientific expertise in a specific therapeutic area; |
• | quality of services; |
• | breadth of services; |
• | the ability to integrate information technology with systems to improve the efficiency of clinical research; |
• | previous experience with a client or a specific therapeutic area; |
• | the ability to manage large and complex medical databases; |
• | the ability to provide statistical and regulatory services; |
• | financial strength and stability; and |
• | price. |
• | failure of products being tested to satisfy safety requirements; |
• | failure of products being tested to satisfy efficacy criteria; |
• | products having unexpected or undesired clinical results; |
• | client cost reductions as a result of budgetary limits or changing priorities; |
• | client decisions to forego a particular study, perhaps for economic reasons; |
• | merger or potential merger related activities involving the client; |
• | insufficient patient enrollment in a study; |
• | insufficient investigator recruitment; |
• | clinical drug manufacturing problems resulting in shortages of the product; |
• | product withdrawal following market launch; and |
• | shut down of manufacturing facilities. |
• | changes in a specific country’s or region’s political or economic conditions, including Western Europe, in particular; |
• | potential negative impact from changes in tax laws affecting any repatriation of profits; |
• | difficulty in staffing and managing widespread operations; |
• | unfavorable labor regulations applicable to our European or other international operations; |
• | changes in foreign currency exchange rates; and |
• | the need to ensure compliance with the numerous regulatory and legal requirements applicable to our business in each of these jurisdictions and to maintain an effective compliance program to ensure compliance. |
• | the level of new business authorizations in particular quarters or years; |
• | the timing of the initiation, progress, or cancellation of significant projects; |
• | foreign currency exchange rate fluctuations between quarters or years; |
• | restructuring charges; |
• | the mix of services offered in a particular quarter or year; |
• | the timing of the opening of new offices or internal expansion; |
• | timing, costs and the related financial impact of acquisitions; |
• | the timing and amount of costs associated with integrating acquisitions; |
• | the timing and amount of startup costs incurred in connection with the introduction of new products, services or subsidiaries; |
• | the dollar amount of changes in contract scope finalized during a particular period; and |
• | the amount of any reserves we are required to record. |
• | Foreign Currency Translation Risk. The revenue and expenses of our foreign operations are generally denominated in local currencies, primarily the pound sterling and the Euro, and are translated into U.S. dollars for financial reporting purposes. For Fiscal Year 2013 and Fiscal Year 2012, approximately 13.0% and 19.5% of consolidated service revenue, respectively, was from contracts denominated in Euros and service revenue from contracts denominated in pounds sterling was 2.6% and 3.9%, respectively. Accordingly, changes in exchange rates between foreign currencies and the U.S. dollar will affect the translation of foreign results into U.S. dollars for purposes of reporting our consolidated results. |
• | Foreign Currency Transaction Risk. We may be subjected to foreign currency transaction risk when our foreign subsidiaries enter into contracts or incur liabilities denominated in a currency other than the foreign subsidiary's functional (local) currency. We also may be subject to foreign currency transaction risk based upon our internal contracts and the extent of work performed by a particular region. To the extent that we are unable to shift the effects of currency fluctuations to our clients, foreign currency exchange rate fluctuations as a result of foreign currency exchange losses could have a material adverse effect on our results of operations. |
• | the requirement to exclude from our quarterly worldwide effective income tax calculations losses in jurisdictions in which no tax benefit can be recognized; |
• | the repatriation of foreign earnings to the U.S.; |
• | actual and projected full-year pretax income; |
• | changes in tax laws in various taxing jurisdictions; |
• | audits by taxing authorities; and |
• | the establishment of valuation allowances against deferred tax assets if it is determined that it is more likely than not that future tax benefits will not be realized. |
• | continue to improve operating, administrative, and information systems; |
• | accurately predict future personnel and resource needs to meet client contract commitments; |
• | track the progress of ongoing client projects; and |
• | attract and retain qualified management, sales, professional, scientific and technical operating personnel. |
• | identify suitable businesses or technologies to buy; |
• | complete the purchase of those businesses on terms acceptable to us; |
• | successfully integrate their operations into our own; |
• | obtain financing necessary for an acquisition at all or on commercially acceptable terms; or |
• | retain key personnel and customers of acquired businesses. |
• | assimilate the operations and services or products of the acquired company; |
• | integrate acquired personnel; |
• | retain and motivate key employees; |
• | retain customers; |
• | identify and manage risks facing the acquired company; and |
• | minimize the diversion of management’s attention from other business concerns. |
• | personal injury or death to patients who participate in the study or who use a product approved by regulatory authorities after the clinical research has concluded; |
• | general risks associated with our Early Phase facilities, including professional malpractice of physicians, nurses and other medical care providers; and |
• | errors and omissions during a trial that may undermine the usefulness of a trial or data from the trial or study. |
• | we had to pay damages or incur defense costs in connection with a claim that is outside the scope of an indemnification agreement; or |
• | a client failed to indemnify us in accordance with the terms of an indemnification agreement because it did not have the financial ability to fulfill its indemnification obligation or for any other reason. |
• | requiring us to dedicate a substantial portion of any cash flow from operations to the payment of interest on, and principal of, our debt, which will reduce the amounts available to fund working capital and capital expenditures, and for other general corporate purposes; |
• | increasing our vulnerability to general adverse economic and industry conditions; |
• | limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we compete; and |
• | placing us at a competitive disadvantage to our competitors that have less debt. |
• | incur additional debt; |
• | buy back our common stock; |
• | make certain investments; |
• | enter into certain types of transactions with affiliates; |
• | make specified restricted payments; and |
• | sell certain assets or merge with or into other companies. |
• | we have divided our board of directors into three classes that serve staggered three-year terms; |
• | we are subject to Section 8.06 of the Massachusetts Business Corporation Law, which provides that directors may only be removed by stockholders for cause, vacancies in our board of directors may only be filled by a vote of our board of directors, and the number of directors may be fixed only by our board of directors; |
• | we are subject to Chapter 110F of the Massachusetts General Laws, which may limit the ability of some interested stockholders to engage in business combinations with us; and |
• | our stockholders are limited in their ability to call or introduce proposals at stockholder meetings. |
• | operating results; |
• | earnings estimates by industry analysts; |
• | market conditions in our industry or the pharmaceutical and biotechnology industries; |
• | prospects of healthcare reform; |
• | changes in government regulations; |
• | general economic conditions, and |
• | our effective income tax rate. |
Region | Square Feet | |
The Americas | 765,000 | |
Europe, Middle East & Africa | 1,066,000 | |
Asia/Pacific | 524,000 | |
Total | 2,355,000 |
Facility | Sq. Ft. | Use of Facility | Lease Expirations | |||
Headquarters in Waltham, MA | 64,000 | CRS, PCMS and Corporate | 2019 | |||
Berlin, Germany | 382,000 | All Business Segments and General & Administrative | 2013 - 2035 | |||
Billerica, MA | 265,000 | All Business Segments and General & Administrative | 2018 - 2025 | |||
Hyderabad, India | 149,000 | All Business Segments and General & Administrative | 2016 - 2017 | |||
Uxbridge, UK | 88,000 | CRS, PCMS and General & Administrative | 2022 | |||
Nottingham, UK | 80,000 | Perceptive and General & Administrative | 2014 - 2018 |
2013 | 2012 | |||||||
High | Low | High | Low | |||||
First Quarter | $31.56 | $25.95 | $24.24 | $15.26 | ||||
Second Quarter | $33.13 | $28.45 | $22.99 | $17.99 | ||||
Third Quarter | $39.75 | $30.39 | $28.74 | $20.11 | ||||
Fourth Quarter | $49.02 | $38.51 | $28.93 | $23.75 |
Period | (a) Total Number of Share (or Units) Purchased | (b) Average Price Paid per Share (or Unit) | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||
April 1, 2013 - April 30, 2013 | 353,940 | $ | 39.84 | 353,940 | $34.6 million | |||||||
May 1, 2013 - May 31, 2013 | 366,714 | $ | 45.66 | 366,714 | $17.8 million | |||||||
June 1, 2013 - June 30, 2013 | 399,989 | * | $ | 46.58 | 331,417 | $2.4 million | ||||||
Total | 1,120,643 | 1,052,071 |
Fiscal Years Ended June 30, | ||||||||||||
Total Return Index For: | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | ||||||
PAREXEL International Stock | $100 | $55 | $82 | $90 | $107 | $175 | ||||||
Nasdaq Composite Index | $100 | $80 | $92 | $121 | $128 | $148 | ||||||
Nasdaq Health Care Index | $100 | $90 | $99 | $126 | $142 | $187 |
For the fiscal years ended June 30, | |||||||||||||||||||||
(in thousands, except per share data and number of employees) | 2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||
OPERATIONS | |||||||||||||||||||||
Service revenue | $ | 1,734,442 | $ | 1,396,508 | $ | 1,212,099 | $ | 1,131,039 | $ | 1,050,755 | |||||||||||
Income from operations (1) | $ | 136,123 | $ | 88,802 | $ | 81,630 | $ | 83,109 | $ | 75,644 | |||||||||||
Net income | $ | 95,972 | $ | 63,158 | $ | 48,786 | $ | 41,542 | $ | 39,307 | |||||||||||
Basic earnings per share | $ | 1.64 | $ | 1.06 | $ | 0.83 | $ | 0.72 | $ | 0.68 | |||||||||||
Diluted earnings per share | $ | 1.61 | $ | 1.05 | $ | 0.81 | $ | 0.71 | $ | 0.68 | |||||||||||
FINANCIAL POSITION | |||||||||||||||||||||
Cash and marketable securities | $ | 274,164 | $ | 213,579 | $ | 89,056 | $ | 107,413 | $ | 96,352 | |||||||||||
Working capital | $ | 403,229 | $ | 359,590 | $ | 317,298 | $ | 167,498 | $ | 191,705 | |||||||||||
Total assets | $ | 1,779,624 | $ | 1,532,156 | $ | 1,429,483 | $ | 1,220,710 | $ | 1,224,461 | |||||||||||
Short-term debt | $ | 20,399 | $ | 5,003 | $ | 5,867 | $ | 32,082 | $ | 32,090 | |||||||||||
Long-term debt | $ | 424,074 | $ | 211,784 | $ | 240,102 | $ | 183,707 | $ | 247,083 | |||||||||||
Stockholders’ equity | $ | 538,946 | $ | 609,675 | $ | 566,004 | $ | 439,555 | $ | 414,745 | |||||||||||
OTHER DATA | |||||||||||||||||||||
Purchases of property and equipment | $ | 81,089 | $ | 74,403 | $ | 60,153 | $ | 78,959 | $ | 75,181 | |||||||||||
Depreciation and amortization | $ | 73,186 | $ | 66,172 | $ | 65,480 | $ | 60,320 | $ | 52,928 | |||||||||||
Number of employees | 14,690 | 12,695 | 10,550 | 9,720 | 9,275 | ||||||||||||||||
Weighted average shares | |||||||||||||||||||||
Basic | 58,388 | 59,464 | 58,634 | 58,062 | 57,538 | ||||||||||||||||
Diluted | 59,447 | 60,426 | 59,874 | 58,756 | 57,847 | ||||||||||||||||
(1) | The fiscal year ended June 30, 2013 includes a $1.2 million net reduction to restructuring charges for adjustments to facility-related charges under our previously announced restructuring plans. | ||||||||||||||||||||
The fiscal year ended June 30, 2012 includes restructuring charges consisting of $4.3 million in severance costs, $1.9 million of facility-related costs and $0.6 million of legal charges in conjunction with an adverse judgment related to an exited facility. | |||||||||||||||||||||
The fiscal year ended June 30, 2011 includes restructuring charges consisting of $4.1 million of facility-related costs, $1.3 million in severance costs, and $3.1 million in impairment charges related to exited facilities. | |||||||||||||||||||||
The fiscal year ended June 30, 2010 includes restructuring charges consisting of $0.5 million related to accelerated depreciation, $5.2 million of facility-related costs and $11.6 million in severance costs; $4.3 million in legal settlement costs related to a small acquisition which was completed several years ago; and the release of $1.1 million in certain reserves due to lower than expected wind-down costs related to the $15 million accrual established in the second quarter of Fiscal Year 2009 for a client contract default (see next paragraph). | |||||||||||||||||||||
The fiscal year ended June 30, 2009 includes $15.0 million in other charges ($12.3 million for bad debt expense and $2.7 million in anticipated wind-down costs and related expenses for service fees, pass-through costs, and investigator fees). |
• | CRS constitutes our core business and includes all phases of clinical research from Early Phase (encompassing the early stages of clinical testing that range from first-in-man through proof-of-concept studies) to Phase II-III and Phase IV, which we call Peri-Approval Clinical Excellence (“PACE”). Our services include clinical trials management and biostatistics, data management and clinical pharmacology, as well as related medical advisory, patient recruitment, pharmacovigilance, and investigator site services. CRS also includes our clinical supply and drug logistics business. We have aggregated Early Phase with Phase II-III/PACE due to economic similarities in these operating segments. |
• | PCMS provides technical expertise and advice in such areas as drug development, regulatory affairs, product pricing and reimbursement, commercialization and strategic compliance. It also provides a full spectrum of market development, product development, and targeted communications services in support of product launch. Our PCMS consultants identify alternatives and propose solutions to address client issues associated with product development, registration, and commercialization. |
• | Perceptive provides information technology solutions designed to help improve clients’ product development and regulatory submission processes. Perceptive offers a portfolio of products and services that includes medical imaging services, ClinPhone® RTSM, IMPACT® CTMS, DataLabs® EDC, web-based portals, systems integration, electronic patient reported outcomes ("ePRO") and LIQUENT InSight® Regulatory Information Management (RIM) platform. These services are often bundled together and integrated with other applications to provide an eClinical solution for our clients. |
(in thousands) | Years Ended | Increase | % | ||||||||||||
June 30, 2013 | June 30, 2012 | ||||||||||||||
Service revenue | |||||||||||||||
CRS | $ | 1,303,569 | $ | 1,038,705 | $ | 264,864 | 25.5 | % | |||||||
PCMS | 202,524 | 167,125 | 35,399 | 21.2 | % | ||||||||||
Perceptive | 228,349 | 190,678 | 37,671 | 19.8 | % | ||||||||||
Total service revenue | $ | 1,734,442 | $ | 1,396,508 | $ | 337,934 | 24.2 | % | |||||||
Direct costs | |||||||||||||||
CRS | $ | 956,513 | $ | 759,539 | $ | 196,974 | 25.9 | % | |||||||
PCMS | 120,954 | 97,560 | 23,394 | 24.0 | % | ||||||||||
Perceptive | 130,069 | 114,730 | 15,339 | 13.4 | % | ||||||||||
Total direct costs | $ | 1,207,536 | $ | 971,829 | $ | 235,707 | 24.3 | % | |||||||
Gross profit | |||||||||||||||
CRS | $ | 347,056 | $ | 279,166 | $ | 67,890 | 24.3 | % | |||||||
PCMS | 81,570 | 69,565 | 12,005 | 17.3 | % | ||||||||||
Perceptive | 98,280 | 75,948 | 22,332 | 29.4 | % | ||||||||||
Total gross profit | $ | 526,906 | $ | 424,679 | $ | 102,227 | 24.1 | % | |||||||
(in thousands) | Years Ended | Increase (Decrease) | % | ||||||||||||
June 30, 2012 | June 30, 2011 | ||||||||||||||
Service revenue | |||||||||||||||
CRS | $ | 1,038,705 | $ | 922,827 | $ | 115,878 | 12.6 | % | |||||||
PCMS | 167,125 | 129,728 | 37,397 | 28.8 | % | ||||||||||
Perceptive | 190,678 | 159,544 | 31,134 | 19.5 | % | ||||||||||
Total service revenue | $ | 1,396,508 | $ | 1,212,099 | $ | 184,409 | 15.2 | % | |||||||
Direct costs | |||||||||||||||
CRS | $ | 759,539 | $ | 628,627 | $ | 130,912 | 20.8 | % | |||||||
PCMS | 97,560 | 77,679 | 19,881 | 25.6 | % | ||||||||||
Perceptive | 114,730 | 91,478 | 23,252 | 25.4 | % | ||||||||||
Total direct costs | $ | 971,829 | $ | 797,784 | $ | 174,045 | 21.8 | % | |||||||
Gross profit | |||||||||||||||
CRS | $ | 279,166 | $ | 294,200 | $ | (15,034 | ) | (5.1 | )% | ||||||
PCMS | 69,565 | 52,049 | 17,516 | 33.7 | % | ||||||||||
Perceptive | 75,948 | 68,066 | 7,882 | 11.6 | % | ||||||||||
Total gross profit | $ | 424,679 | $ | 414,315 | $ | 10,364 | 2.5 | % | |||||||
Fiscal Year 2013 | Fiscal Year 2012 | |||||||||||||
Region | Service Revenue | % of Total | Service Revenue | % of Total | ||||||||||
The Americas | $ | 867.0 | 50.0 | % | $ | 635.3 | 45.5 | % | ||||||
Europe, Middle East & Africa | $ | 624.0 | 36.0 | % | $ | 555.4 | 39.8 | % | ||||||
Asia/Pacific | $ | 243.4 | 14.0 | % | $ | 205.8 | 14.7 | % | ||||||
Total | $ | 1,734.4 | 100.0 | % | $ | 1,396.5 | 100.0 | % |
Fiscal Year 2012 | Fiscal Year 2011 | |||||||||||||
Region | Service Revenue | % of Total | Service Revenue | % of Total | ||||||||||
The Americas | $ | 635.3 | 45.5 | % | $ | 484.7 | 40.0 | % | ||||||
Europe, Middle East & Africa | $ | 555.5 | 39.8 | % | $ | 553.8 | 45.7 | % | ||||||
Asia/Pacific | $ | 205.7 | 14.7 | % | $ | 173.6 | 14.3 | % | ||||||
Total | $ | 1,396.5 | 100.0 | % | $ | 1,212.1 | 100.0 | % |
(in millions) | June 30, 2013 | June 30, 2012 | ||||||
Billed accounts receivable, net | $ | 457.2 | $ | 397.4 | ||||
Unbilled accounts receivable, net | 248.2 | 251.8 | ||||||
Total accounts receivable | 705.4 | 649.2 | ||||||
Deferred revenue | 408.3 | 359.7 | ||||||
Net receivables | $ | 297.1 | $ | 289.5 | ||||
DSO ( in days) | 42 | 49 |
• | 1.25% by quarterly term loan amortization payments to be made commencing in June 2013 and made prior to June 30, 2015; |
• | 2.50% by quarterly term loan amortization payments to be made on or after June 30, 2015, but prior to June 30, 2016; |
• | 5.00% by quarterly term loan amortization payments to be made on or after June 30, 2016, but prior to June 30, 2017; |
• | 7.50% by quarterly term loan amortization payment to be made on or after June 30, 2017, but prior to the Maturity Date; and |
• | 37.50% on the Maturity Date |
(in thousands) | Less than 1 year | 1-2 years | 3-5 years | More than 5 years | Total | |||||||||||||||
Debt obligations (principal) | $ | 20,399 | $ | 37,500 | $ | 390,000 | $ | — | $ | 447,899 | ||||||||||
Operating leases | 61,251 | 90,053 | 52,653 | 95,825 | 299,782 | |||||||||||||||
Purchase obligations* | 44,469 | 30,219 | 743 | — | 75,431 | |||||||||||||||
Total | $ | 126,119 | $ | 157,772 | $ | 443,396 | $ | 95,825 | $ | 823,112 | ||||||||||
*includes commitments to purchase software, hardware, and services. |
For the years ended June 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Service revenue | $ | 1,734,442 | $ | 1,396,508 | $ | 1,212,099 | ||||||
Reimbursement revenue | 261,524 | 221,726 | 210,326 | |||||||||
Total revenue | 1,995,966 | 1,618,234 | 1,422,425 | |||||||||
Costs and expenses: | ||||||||||||
Direct costs | 1,207,536 | 971,829 | 797,784 | |||||||||
Reimbursable out-of-pocket expenses | 261,524 | 221,726 | 210,326 | |||||||||
Selling, general and administrative | 318,806 | 263,462 | 259,099 | |||||||||
Depreciation | 63,187 | 57,419 | 55,549 | |||||||||
Amortization | 9,999 | 8,753 | 9,931 | |||||||||
Restructuring (benefit) charge | (1,209 | ) | 6,243 | 8,106 | ||||||||
Total costs and expenses | 1,859,843 | 1,529,432 | 1,340,795 | |||||||||
Income from operations | 136,123 | 88,802 | 81,630 | |||||||||
Interest income | 3,829 | 5,381 | 5,167 | |||||||||
Interest expense | (11,067 | ) | (12,384 | ) | (17,010 | ) | ||||||
Miscellaneous income (expense), net | 4,265 | (2,093 | ) | (11,153 | ) | |||||||
Total other expense, net | (2,973 | ) | (9,096 | ) | (22,996 | ) | ||||||
Income before provision for income taxes | 133,150 | 79,706 | 58,634 | |||||||||
Provision for income taxes | 37,178 | 16,548 | 9,848 | |||||||||
Net income | $ | 95,972 | $ | 63,158 | $ | 48,786 | ||||||
Earnings per share: | ||||||||||||
Basic | $ | 1.64 | $ | 1.06 | $ | 0.83 | ||||||
Diluted | $ | 1.61 | $ | 1.05 | $ | 0.81 | ||||||
Weighted average shares: | ||||||||||||
Basic | 58,388 | 59,464 | 58,634 | |||||||||
Diluted | 59,447 | 60,426 | 59,874 | |||||||||
Comprehensive income: | ||||||||||||
Net income | $ | 95,972 | $ | 63,158 | $ | 48,786 | ||||||
Unrealized loss on derivative instruments, net of taxes | 624 | (1,660 | ) | 7,156 | ||||||||
Foreign currency translation adjustment | (1,523 | ) | (46,334 | ) | 53,133 | |||||||
Total comprehensive income | $ | 95,073 | $ | 15,164 | $ | 109,075 | ||||||
June 30, 2013 | June 30, 2012 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 144,027 | $ | 213,579 | ||||
Marketable securities | 130,137 | — | ||||||
Billed and unbilled accounts receivable, net | 705,374 | 649,217 | ||||||
Prepaid expenses | 19,358 | 20,657 | ||||||
Deferred tax assets | 44,236 | 37,159 | ||||||
Income taxes receivable | 4,071 | — | ||||||
Other current assets | 30,254 | 22,352 | ||||||
Total current assets | 1,077,457 | 942,964 | ||||||
Property and equipment, net | 224,225 | 207,778 | ||||||
Goodwill | 319,478 | 255,455 | ||||||
Other intangible assets, net | 103,514 | 70,004 | ||||||
Non-current deferred tax assets | 8,556 | 13,885 | ||||||
Long-term income taxes receivable | 11,153 | 15,585 | ||||||
Other assets | 35,241 | 26,485 | ||||||
Total assets | $ | 1,779,624 | $ | 1,532,156 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Notes payable and current portion of long-term debt | $ | 20,399 | $ | 5,003 | ||||
Accounts payable | 54,232 | 50,783 | ||||||
Deferred revenue | 378,950 | 331,488 | ||||||
Accrued expenses | 41,200 | 41,008 | ||||||
Accrued restructuring charges, current portion | 1,011 | 3,772 | ||||||
Accrued employee benefits and withholdings | 149,290 | 120,368 | ||||||
Current deferred tax liabilities | 16,512 | 14,998 | ||||||
Income taxes payable | — | 3,644 | ||||||
Other current liabilities | 12,634 | 12,310 | ||||||
Total current liabilities | 674,228 | 583,374 | ||||||
Long-term debt, net of current portion | 424,074 | 211,784 | ||||||
Non-current deferred tax liabilities | 35,443 | 24,678 | ||||||
Long-term accrued restructuring charges, less current portion | 1,548 | 4,002 | ||||||
Long-term income tax liabilities | 45,183 | 50,008 | ||||||
Long-term deferred revenue | 29,386 | 28,226 | ||||||
Other liabilities | 30,816 | 20,409 | ||||||
Total liabilities | 1,240,678 | 922,481 | ||||||
Commitments and contingencies (Note 15) | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock - $0.01 par value; 5,000,000 shares authorized, 0 shares issued and outstanding at June 30, 2013 and June 30, 2012, respectively. | — | — | ||||||
Common stock - $0.01 par value; 150,000,000 and 75,000,000 shares authorized; 56,310,582 and 60,147,007 shares issued and outstanding at June 30, 2013 and June 30, 2012, respectively. | 563 | 601 | ||||||
Additional paid-in capital | 113,771 | 279,535 | ||||||
Retained earnings | 454,650 | 358,678 | ||||||
Accumulated other comprehensive loss | (30,038 | ) | (29,139 | ) | ||||
Total stockholders’ equity | 538,946 | 609,675 | ||||||
Total liabilities and stockholders’ equity | $ | 1,779,624 | $ | 1,532,156 |
For the years ended June 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Cash flow from operating activities: | ||||||||||||
Net income | $ | 95,972 | $ | 63,158 | $ | 48,786 | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 73,186 | 66,172 | 65,480 | |||||||||
Stock-based compensation | 11,168 | 11,131 | 10,162 | |||||||||
(Gain) loss on disposal of assets | (884 | ) | 1,119 | 289 | ||||||||
Deferred income taxes | 2,830 | (9,754 | ) | (14,462 | ) | |||||||
Impairment charges | 1,071 | 1,150 | 4,245 | |||||||||
(Benefit) provision for (recoveries) losses on receivables, net | (346 | ) | 818 | 1,783 | ||||||||
Excess tax benefit from stock-based compensation | (5,624 | ) | (5,256 | ) | — | |||||||
Other non-cash items | 1,005 | — | — | |||||||||
Changes in assets and liabilities, net of the effect from acquisitions: | ||||||||||||
Billed and unbilled accounts receivable | (51,292 | ) | (20,083 | ) | (142,051 | ) | ||||||
Prepaid expenses and other current assets | (6,751 | ) | (1,593 | ) | (1,719 | ) | ||||||
Other assets | (6,693 | ) | (5,460 | ) | (8,564 | ) | ||||||
Accounts payable | 3,955 | 20,202 | (4,786 | ) | ||||||||
Deferred revenue | 47,531 | 35,940 | 55,792 | |||||||||
Accrued expenses and other current liabilities | 18,659 | 63,303 | (37,741 | ) | ||||||||
Long-term income taxes payable, net of long-term income taxes receivable | (1,440 | ) | 11,958 | 16,169 | ||||||||
Other liabilities | 1,468 | 1,652 | 5,162 | |||||||||
Net cash provided by (used in) operating activities | 183,815 | 234,457 | (1,455 | ) | ||||||||
Cash flow from investing activities: | ||||||||||||
Purchases of marketable securities | (312,403 | ) | (53,647 | ) | — | |||||||
Proceeds from sale of marketable securities | 182,800 | 51,529 | 13,058 | |||||||||
Proceeds from note receivable | 659 | — | — | |||||||||
Purchases of property and equipment | (81,089 | ) | (74,403 | ) | (60,153 | ) | ||||||
Acquisition of businesses, net of cash acquired | (97,099 | ) | — | — | ||||||||
Proceeds from sale of assets | 1,677 | — | 1,394 | |||||||||
Net cash used in investing activities | (305,455 | ) | (76,521 | ) | (45,701 | ) | ||||||
Cash flow from financing activities: | ||||||||||||
Proceeds from issuance of common stock | 15,271 | 12,120 | 7,686 | |||||||||
Payment for share repurchase | (195,149 | ) | — | — | ||||||||
Excess tax benefit from stock-based compensation | 5,624 | 5,256 | — | |||||||||
Borrowings under credit agreement/facility | 795,000 | 268,000 | 440,000 | |||||||||
Repayments under credit agreement/facility | (577,500 | ) | (293,000 | ) | (407,500 | ) | ||||||
Proceeds from factoring agreement, net | 10,394 | — | — | |||||||||
Payments for deferred financing costs | (1,231 | ) | — | — | ||||||||
Repayments under other debt | — | (943 | ) | (2,071 | ) | |||||||
Purchase of non-controlling interests | — | — | (1,550 | ) | ||||||||
Net cash provided by (used) in financing activities | 52,409 | (8,567 | ) | 36,565 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (321 | ) | (24,846 | ) | 4,477 | |||||||
Net (decrease) increase in cash and cash equivalents | (69,552 | ) | 124,523 | (6,114 | ) | |||||||
Cash and cash equivalents at beginning of year | 213,579 | 89,056 | 95,170 | |||||||||
Cash and cash equivalents at end of year | $ | 144,027 | $ | 213,579 | $ | 89,056 | ||||||
Supplemental disclosures of cash flow information | ||||||||||||
Net cash paid during year for: | ||||||||||||
Interest | $ | 9,962 | $ | 10,802 | $ | 17,535 | ||||||
Income taxes, net of refunds | $ | 37,764 | $ | 9,709 | $ | 31,947 |
Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | ||||||||||||||||||||
Number of Shares | Par Value | Additional Paid-in Capital | |||||||||||||||||||||
Balance at June 30, 2010 | 58,434 | $ | 578 | $ | 233,677 | $ | 246,734 | $ | (41,434 | ) | $ | 439,555 | |||||||||||
Shares issued under stock option/restricted stock/employee stock purchase plans | 570 | 6 | 7,680 | 7,686 | |||||||||||||||||||
Stock-based compensation | 10,162 | 10,162 | |||||||||||||||||||||
Purchase of non-controlling interests | (474 | ) | (474 | ) | |||||||||||||||||||
Unrealized gain on derivative instruments, net of taxes | 7,156 | 7,156 | |||||||||||||||||||||
Foreign currency translation adjustment | 53,133 | 53,133 | |||||||||||||||||||||
Net income | 48,786 | 48,786 | |||||||||||||||||||||
Balance at June 30, 2011 | 59,004 | $ | 584 | $ | 251,045 | $ | 295,520 | $ | 18,855 | $ | 566,004 | ||||||||||||
Shares issued under stock option/restricted stock/employee stock purchase plans | 1,143 | 17 | 12,103 | 12,120 | |||||||||||||||||||
Stock-based compensation | 11,131 | 11,131 | |||||||||||||||||||||
Excess tax benefit related to employee equity awards | 5,256 | 5,256 | |||||||||||||||||||||
Unrealized loss on derivative instruments, net of taxes | (1,660 | ) | (1,660 | ) | |||||||||||||||||||
Foreign currency translation adjustment | (46,334 | ) | (46,334 | ) | |||||||||||||||||||
Net income | 63,158 | 63,158 | |||||||||||||||||||||
Balance at June 30, 2012 | 60,147 | $ | 601 | $ | 279,535 | $ | 358,678 | $ | (29,139 | ) | $ | 609,675 | |||||||||||
Shares issued under stock option/restricted stock/employee stock purchase plans, net | 1,470 | 15 | 15,256 | 15,271 | |||||||||||||||||||
Stock-based compensation | 11,168 | 11,168 | |||||||||||||||||||||
Excess tax benefit related to employee equity awards | 5,400 | 5,400 | |||||||||||||||||||||
Share repurchase | (5,306 | ) | (53 | ) | (197,588 | ) | (197,641 | ) | |||||||||||||||
Unrealized gain on derivative instruments, net of taxes | 624 | 624 | |||||||||||||||||||||
Foreign currency translation adjustment | (1,523 | ) | (1,523 | ) | |||||||||||||||||||
Net income | 95,972 | 95,972 | |||||||||||||||||||||
Balance at June 30, 2013 | 56,311 | $ | 563 | $ | 113,771 | $ | 454,650 | $ | (30,038 | ) | $ | 538,946 |
(in thousands) | ||||||||
Goodwill | Fiscal Year 2013 | Fiscal Year 2012 | ||||||
Beginning Balance | $ | 255,455 | $ | 262,313 | ||||
Goodwill arising from LIQUENT acquisition | 51,244 | — | ||||||
Goodwill arising from HERON acquisition | 16,631 | — | ||||||
Effect of changes in exchange rates used for translation | (3,852 | ) | (6,858 | ) | ||||
Ending Balance | $ | 319,478 | $ | 255,455 |
(in thousands) | Weighted Average Useful Life (years) | Cost | Accumulated Amortization/ Effect of Exchange Rate Changes | Net | ||||||||||
Intangible Asset | ||||||||||||||
Customer relationships and backlog | 12.1 | $ | 112,274 | $ | (44,706 | ) | $ | 67,568 | ||||||
Technology and other intangibles | 7.9 | 35,647 | (20,582 | ) | 15,065 | |||||||||
Definite-life tradename | 7.7 | 3,800 | (235 | ) | 3,565 | |||||||||
Indefinite-life tradename * | indefinite | 22,158 | (4,842 | ) | 17,316 | |||||||||
Total intangible assets | $ | 173,879 | $ | (70,365 | ) | $ | 103,514 | |||||||
* The tradename acquired in the ClinPhone acquisition has an indefinite useful life. |
(in thousands) | Weighted Average Useful Life (years) | Cost | Accumulated Amortization/ Effect of Exchange Rate Changes | Net | ||||||||||
Intangible Asset | ||||||||||||||
Customer relationships and backlog | 13.0 | $ | 76,774 | $ | (35,811 | ) | $ | 40,963 | ||||||
Technology and other intangibles | 7.0 | 26,330 | (15,963 | ) | 10,367 | |||||||||
Tradename* | indefinite | 22,158 | (3,484 | ) | 18,674 | |||||||||
Total intangible assets | $ | 125,262 | $ | (55,258 | ) | $ | 70,004 | |||||||
* The tradename acquired in the ClinPhone acquisition has an indefinite useful life. |
(in thousands) | ||||||||
Other Intangible Assets | Fiscal Year 2013 | Fiscal Year 2012 | ||||||
Beginning Balance | $ | 70,004 | $ | 79,958 | ||||
Intangibles assets acquired from LIQUENT acquisition | 32,600 | — | ||||||
Intangibles assets acquired from HERON acquisition | 15,500 | — | ||||||
Amortization | (9,999 | ) | (8,753 | ) | ||||
Effect of changes in exchange rates used for translation | (4,591 | ) | (1,201 | ) | ||||
Ending Balance | $ | 103,514 | $ | 70,004 |
(in thousands) | ||||||||
FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | ||||
$14,724 | $13,371 | $12,530 | $9,991 | $8,619 |
Total consideration transferred: | ||||
Cash paid, net of cash acquired | $ | 74,349 | ||
Preliminary allocation of consideration transferred: | ||||
Accounts receivable | $ | 8,470 | ||
Other current and non-current assets | 547 | |||
Property and equipment | 1,349 | |||
Definite-lived intangible assets | 32,600 | |||
Goodwill | 51,244 | |||
Total assets acquired | 94,210 | |||
Current liabilities | 5,330 | |||
Deferred revenue, current | 2,830 | |||
Deferred tax liabilities | 11,701 | |||
Total liabilities assumed | 19,861 | |||
Net assets acquired | $ | 74,349 |
Amount | Estimated Useful Life (Years) | |||||
Customer relationships | $ | 21,500 | 11 | |||
Technology | 7,800 | 8 | ||||
Trade name | 2,800 | 8 | ||||
Backlog | 500 | 1 | ||||
Total | $ | 32,600 |
Total consideration: | ||||
Cash paid, net of cash acquired | $ | 22,750 | ||
Fair value of contingent consideration | 5,934 | |||
Net purchase price | 28,684 | |||
Preliminary allocation of net purchase price: | ||||
Accounts receivable | $ | 1,927 | ||
Other current and non-current assets | 544 | |||
Property and equipment | 322 | |||
Definite-lived intangible assets | 15,500 | |||
Goodwill | 16,631 | |||
Total assets acquired | 34,924 | |||
Current liabilities | 1,539 | |||
Deferred revenue, current | 1,164 | |||
Deferred tax liabilities | 3,537 | |||
Total liabilities assumed | 6,240 | |||
Net assets acquired | $ | 28,684 |
Amount | Estimated Useful Life (Years) | |||||
Customer relationships | $ | 12,600 | 10 | |||
Technology | 1,000 | 5 | ||||
Trade name | 1,000 | 7 | ||||
Backlog | 900 | 1 | ||||
Total | $ | 15,500 |
• | Our interest rate hedging program is a cash flow hedge program designed to minimize interest rate volatility. We swap the difference between fixed and variable interest amounts calculated by reference to an agreed-upon notional principal amount, at specified intervals. We also employ an interest rate cap that compensates us if variable interest rates rise above a pre-determined rate. Our interest rate contracts are designated as hedging instruments. |
• | Our foreign currency hedging program is a cash flow hedge program designed to minimize foreign currency exchange rate volatility due to the foreign currency exchange exposure related to intercompany transactions. This program was expanded in the first quarter of our fiscal year ended June 30, 2013 in order to reduce the impact of foreign exchange rate risk on our gross margin. We primarily utilize forward currency exchange contracts and cross-currency swaps with maturities of no more than 12 months. These contracts are designated as hedging instruments. |
(in thousands) | June 30, 2013 | June 30, 2012 | |||||||||||||
Notional Amount | Asset (Liability) | Notional Amount | Asset (Liability) | ||||||||||||
Derivatives designated as hedging instruments under ASC 815 | |||||||||||||||
Derivatives in an asset position: | |||||||||||||||
Interest rate contracts | $ | 125,000 | $ | 3,269 | $ | 50,000 | $ | 2 | |||||||
Foreign exchange contracts | 20,245 | 333 | — | — | |||||||||||
Cross-currency swap contracts | 27,312 | 1,032 | — | — | |||||||||||
Derivatives in a liability position: | |||||||||||||||
Interest rate contracts | 100,000 | (2,208 | ) | 100,000 | (2,417 | ) | |||||||||
Foreign exchange contracts | 129,254 | (3,889 | ) | — | — | ||||||||||
Cross-currency swap contracts | — | — | 25,106 | (2,697 | ) | ||||||||||
Total designated derivatives | $ | 401,811 | $ | (1,463 | ) | $ | 175,106 | $ | (5,112 | ) | |||||
Derivatives not designated as hedging instruments under ASC 815 | |||||||||||||||
Derivatives in an asset position: | |||||||||||||||
Foreign exchange contracts | $ | 20,756 | $ | 91 | $ | — | $ | — | |||||||
Derivatives in a liability position: | |||||||||||||||
Foreign exchange contracts | 42,800 | (992 | ) | 100,815 | (213 | ) | |||||||||
Cross-currency interest rate swap contracts | 44,580 | (1,910 | ) | 43,405 | (4,544 | ) | |||||||||
Total non-designated derivatives | $ | 108,136 | $ | (2,811 | ) | $ | 144,220 | $ | (4,757 | ) | |||||
Total derivatives | $ | 509,947 | $ | (4,274 | ) | $ | 319,326 | $ | (9,869 | ) |
Years Ended | ||||||||
(in thousands) | June 30, 2013 | June 30, 2012 | ||||||
Derivatives designated as hedging instruments under ASC 815 | ||||||||
Interest rate contracts, net of taxes | $ | 2,818 | $ | (964 | ) | |||
Foreign exchange contracts, net of taxes | (2,129 | ) | — | |||||
Cross-currency swap contracts, net of taxes | (65 | ) | (696 | ) | ||||
Total designated derivative unrealized gain (loss), net | $ | 624 | $ | (1,660 | ) |
Years Ended | ||||||||
(in thousands) | June 30, 2013 | June 30, 2012 | ||||||
Derivatives not designated as hedging instruments under ASC 815 | ||||||||
Cross-currency interest rate swap contracts | $ | 2,634 | $ | (4,963 | ) | |||
Foreign exchange contracts | (688 | ) | (1,339 | ) | ||||
Total non-designated derivative unrealized gain (loss), net | $ | 1,946 | $ | (6,302 | ) |
(in thousands) | 2013 | 2012 | ||||||
Billed receivables | $ | 459,312 | $ | 400,698 | ||||
Unbilled receivables | 250,586 | 257,967 | ||||||
Provision for losses on receivables | (4,524 | ) | (9,448 | ) | ||||
Total | $ | 705,374 | $ | 649,217 |
(in thousands) | 2013 | 2012 | ||||||
Property and equipment: | ||||||||
Computer software | $ | 282,681 | $ | 235,922 | ||||
Computer hardware and office equipment | 94,932 | 84,831 | ||||||
Leasehold improvements | 87,982 | 85,928 | ||||||
Medical equipment | 16,337 | 18,122 | ||||||
Furniture and fixtures | 26,370 | 26,066 | ||||||
Buildings | 31 | 3,585 | ||||||
Office equipment and other assets | 19,193 | 17,496 | ||||||
Total | 527,526 | 471,950 | ||||||
Less: accumulated depreciation | (303,301 | ) | (264,172 | ) | ||||
Total | $ | 224,225 | $ | 207,778 |
Balance at | Provisions/ Adjustments | Payments/Foreign Currency Exchange | Balance at | |||||||||||||
(in thousands) | June 30, 2012 | June 30, 2013 | ||||||||||||||
2011 Restructuring Plan | ||||||||||||||||
Employee severance | $ | 1,884 | $ | (182 | ) | $ | (1,702 | ) | $ | — | ||||||
Facilities-related | 3,663 | (1,027 | ) | (1,661 | ) | 975 | ||||||||||
2010 Restructuring Plan | ||||||||||||||||
Facilities-related | 642 | — | (174 | ) | 468 | |||||||||||
Pre-2010 Plans | ||||||||||||||||
Facilities-related | 1,585 | — | (469 | ) | 1,116 | |||||||||||
Total | $ | 7,774 | $ | (1,209 | ) | $ | (4,006 | ) | $ | 2,559 | ||||||
Balance at | Provisions/ Adjustments | Payments/Foreign Currency Exchange | Balance at | |||||||||||||
(in thousands) | June 30, 2011 | June 30, 2012 | ||||||||||||||
2011 Restructuring Plan | ||||||||||||||||
Employee severance | $ | 1,622 | $ | 5,307 | $ | (5,045 | ) | $ | 1,884 | |||||||
Facilities-related | 3,720 | 2,004 | (2,061 | ) | 3,663 | |||||||||||
2010 Restructuring Plan | ||||||||||||||||
Employee severance | 1,160 | (984 | ) | (176 | ) | — | ||||||||||
Facilities-related | 855 | (84 | ) | (129 | ) | 642 | ||||||||||
Pre-2010 Plans | ||||||||||||||||
Facilities-related | 2,041 | — | (456 | ) | 1,585 | |||||||||||
Total | $ | 9,398 | $ | 6,243 | $ | (7,867 | ) | $ | 7,774 | |||||||
Balance at | Provisions/ Adjustments | Payments/Foreign Currency Exchange | Balance at | |||||||||||||
(in thousands) | June 30, 2010 | June 30, 2011 | ||||||||||||||
2011 Restructuring Plan | ||||||||||||||||
Employee severance | $ | — | $ | 1,790 | $ | (168 | ) | $ | 1,622 | |||||||
Facilities-related | — | 3,663 | 57 | 3,720 | ||||||||||||
2010 Restructuring Plan | ||||||||||||||||
Employee severance | 5,221 | (832 | ) | (3,229 | ) | 1,160 | ||||||||||
Facilities-related | 3,337 | (513 | ) | (1,969 | ) | 855 | ||||||||||
Other | 54 | (31 | ) | (23 | ) | — | ||||||||||
Pre-2010 Plans | ||||||||||||||||
Facilities-related | 1,466 | 940 | (365 | ) | 2,041 | |||||||||||
Total | $ | 10,078 | $ | 5,017 | $ | (5,697 | ) | $ | 9,398 |
• | 1.25% by quarterly term loan amortization payments to be made commencing in June 2013 and made prior to June 30, 2015; |
• | 2.50% by quarterly term loan amortization payments to be made on or after June 30, 2015, but prior to June 30, 2016; |
• | 5.00% by quarterly term loan amortization payments to be made on or after June 30, 2016, but prior to June 30, 2017; |
• | 7.50% by quarterly term loan amortization payment to be made on or after June 30, 2017, but prior to the Maturity Date; and |
• | 37.50% on the Maturity Date |
Years ended June 30, | ||||||||||||
(in thousands, except per share data) | 2013 | 2012 | 2011 | |||||||||
Net income attributable to common shares | $ | 95,972 | $ | 63,158 | $ | 48,786 | ||||||
Weighted average number of shares outstanding, used in computing basic earnings per share | 58,388 | 59,464 | 58,634 | |||||||||
Dilutive common stock equivalents | 1,059 | 962 | 1,240 | |||||||||
Weighted average shares used in computing diluted earnings per share | 59,447 | 60,426 | 59,874 | |||||||||
Basic earnings per share | $ | 1.64 | $ | 1.06 | $ | 0.83 | ||||||
Diluted earnings per share | $ | 1.61 | $ | 1.05 | $ | 0.81 | ||||||
Anti-dilutive options (excluded from the calculation of diluted earnings per share) | 503 | 2,231 | 1,478 |
(in thousands) | Foreign currency translation adjustments | Unrealized gain (loss) on derivative instruments | Total | |||||||||
Balance as of June 30, 2010 | $ | (34,414 | ) | $ | (7,020 | ) | $ | (41,434 | ) | |||
Changes during Fiscal Year 2011 | 53,133 | 7,156 | 60,289 | |||||||||
Balance as of June 30, 2011 | $ | 18,719 | $ | 136 | $ | 18,855 | ||||||
Changes during Fiscal Year 2012 | (46,334 | ) | (1,660 | ) | (47,994 | ) | ||||||
Balance as of June 30, 2012 | $ | (27,615 | ) | $ | (1,524 | ) | $ | (29,139 | ) | |||
Changes during Fiscal Year 2013 | (1,523 | ) | 624 | (899 | ) | |||||||
Balance as of June 30, 2013 | $ | (29,138 | ) | $ | (900 | ) | $ | (30,038 | ) |
Years ended June 30, | |||||||||
2013 | 2012 | 2011 | |||||||
Dividend yield | 0.0 | % | 0.0 | % | 0.0 | % | |||
Expected volatility | 56.4 | % | 56.9 | % | 55.9 | % | |||
Risk-free interest rate | 0.9 | % | 0.9 | % | 1.6 | % | |||
Expected term (in years) | 5.2 | 5.1 | 5.1 |
Years ended June 30, | ||||||||||||
(in thousands) | 2013 | 2012 | 2011 | |||||||||
Direct costs related | $ | 1,918 | $ | 1,815 | $ | 1,582 | ||||||
Selling, general and administrative related | 9,250 | 9,316 | 8,580 | |||||||||
Total stock-based compensation | $ | 11,168 | $ | 11,131 | $ | 10,162 |
Years ended June 30, | ||||||
(in thousands, except per share data) | 2013 | 2012 | 2011 | |||
Weighted-average fair value of options granted per share | $16.20 | $10.07 | $10.81 | |||
Intrinsic value of options exercised | $24,872 | $11,170 | $5,246 |
Number of Options | Weighted-Average Exercise Price | ||||||
Balance at June 30, 2012 | 3,758,284 | $ | 18.55 | ||||
Granted | 926,801 | $ | 32.95 | ||||
Exercised | (1,337,289 | ) | $ | 16.29 | |||
Canceled | (122,899 | ) | $ | 21.84 | |||
Balance at June 30, 2013 | 3,224,897 | $ | 23.51 |
Number of Options | Weighted-Average Exercise Price | Weighted- Average Remaining Contractual Life In Years | Aggregate Intrinsic Value (In Thousands) | ||||||||||
Outstanding | 3,224,897 | $ | 23.51 | 5.48 | $ | 72,450 | |||||||
Exercisable | 1,233,942 | $ | 19.67 | 3.68 | $ | 32,458 | |||||||
Expected to vest | 1,830,157 | $ | 25.69 | 6.56 | $ | 37,128 |
Shares | Weighted-Average Grant- Date Fair Value | ||||||
Unvested Balance at June 30, 2012 | 634,472 | $ | 17.36 | ||||
Granted | 186,066 | $ | 31.17 | ||||
Vested | (320,772 | ) | $ | 14.33 | |||
Forfeited | (30,500 | ) | $ | 22.65 | |||
Unvested Balance at June 30, 2013 | 469,266 | $ | 24.56 |
Shares Purchased | Average Purchase Price | ||||||
Fiscal Year 2013 | 62,777 | $ | 35.54 | ||||
Fiscal Year 2012 | 86,735 | $ | 21.81 | ||||
Fiscal Year 2011 | 102,551 | $ | 19.65 |
• | Level 1 – Unadjusted quoted prices in active markets that are accessible to the reporting entity at the measurement date for identical assets and liabilities. |
• | Level 2 – Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following: |
◦ | quoted prices for similar assets and liabilities in active markets |
◦ | quoted prices for identical or similar assets or liabilities in markets that are not active |
◦ | observable inputs other than quoted prices that are used in the valuation of the asset or liabilities (e.g., interest rate and yield curve quotes at commonly quoted intervals) |
◦ | inputs that are derived principally from or corroborated by observable market data by correlation or other means |
• | Level 3 – Unobservable inputs for the assets or liability (i.e., supported by little or no market activity). Level 3 inputs include management’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). |
(in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Contingent Consideration | $ | — | $ | — | $ | (5,934 | ) | $ | (5,934 | ) | ||||||
Interest Rate Derivative Instruments | — | (849 | ) | — | (849 | ) | ||||||||||
Foreign Currency Exchange Contracts | — | (3,425 | ) | — | (3,425 | ) | ||||||||||
Total | $ | — | $ | (4,274 | ) | $ | (5,934 | ) | $ | (10,208 | ) |
(in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Cash Equivalents | $ | 81,123 | $ | — | $ | — | $ | 81,123 | ||||||||
Interest Rate Derivative Instruments | — | (6,959 | ) | — | (6,959 | ) | ||||||||||
Foreign Currency Exchange Contracts | — | (2,910 | ) | — | (2,910 | ) | ||||||||||
Total | $ | 81,123 | $ | (9,869 | ) | $ | — | $ | 71,254 |
Unobservable Input | Range | |
Discount rate | 18% | |
Probability of achieving financial targets | 10% to 60% | |
Projected years of payment | 2013 - 2015 |
(in thousands) | Fair Value | |||
Balance at June 30, 2012 | $ | — | ||
Contingent consideration from the HERON acquisition | 5,934 | |||
Balance at June 30, 2013 | $ | 5,934 |
(in thousands) | 2013 | 2012 | 2011 | |||||||||
Domestic | $ | 35,792 | $ | 18,347 | $ | (18,712 | ) | |||||
Foreign | 97,358 | 61,359 | 77,346 | |||||||||
$ | 133,150 | $ | 79,706 | $ | 58,634 |
(in thousands) | 2013 | 2012 | 2011 | |||||||||
Current: | ||||||||||||
Federal | $ | 6,279 | $ | 8,054 | $ | 3,618 | ||||||
State | 2,565 | 1,010 | (702 | ) | ||||||||
Foreign | 26,651 | 9,608 | 26,072 | |||||||||
35,495 | 18,672 | 28,988 | ||||||||||
Deferred: | ||||||||||||
Federal | 7,650 | 2,447 | (17,307 | ) | ||||||||
State | (2,113 | ) | (869 | ) | (128 | ) | ||||||
Foreign | (3,854 | ) | (3,702 | ) | (1,705 | ) | ||||||
1,683 | (2,124 | ) | (19,140 | ) | ||||||||
$ | 37,178 | $ | 16,548 | $ | 9,848 |
(in thousands) | 2013 | % | 2012 | % | 2011 | % | |||||||||||||||
Income tax expense computed at the federal statutory rate | $ | 46,602 | 35.0 | % | $ | 27,897 | 35.0 | % | $ | 20,522 | 35.0 | % | |||||||||
State income taxes, net of federal benefit | 1,914 | 1.4 | % | (232 | ) | (0.3 | )% | 61 | 0.1 | % | |||||||||||
Foreign rate differential | (7,960 | ) | (6.0 | )% | (6,539 | ) | (8.2 | )% | (3,151 | ) | (5.4 | )% | |||||||||
Change in valuation allowances | (4,708 | ) | (3.5 | )% | 1,630 | 2.0 | % | (8,174 | ) | (13.9 | )% | ||||||||||
Change in reserves | 394 | 0.3 | % | (7,655 | ) | (9.6 | )% | 47 | 0.1 | % | |||||||||||
Research and development | (2,986 | ) | (2.2 | )% | (2,734 | ) | (3.4 | )% | (2,196 | ) | (3.7 | )% | |||||||||
Non-deductible losses | 440 | 0.3 | % | 678 | 0.9 | % | — | — | % | ||||||||||||
Other non-deductible expenses | 2,074 | 1.6 | % | 393 | 0.5 | % | 1,004 | 1.7 | % | ||||||||||||
Adjustment of net operating losses | 608 | 0.5 | % | 2,243 | 2.8 | % | — | — | |||||||||||||
Statutory tax rate changes | 798 | 0.5 | % | (1,047 | ) | (1.3 | )% | 436 | 0.7 | % | |||||||||||
Other, net | 2 | — | % | 1,914 | 2.4 | % | 1,299 | 2.2 | % | ||||||||||||
$ | 37,178 | 27.9 | % | $ | 16,548 | 20.8 | % | $ | 9,848 | 16.8 | % |
(in thousands) | 2013 | 2012 | ||||||
Deferred tax assets: | ||||||||
U.S. loss carryforwards | $ | 1,981 | $ | 3,431 | ||||
Foreign loss carryforwards | 6,240 | 6,885 | ||||||
Accrued expenses | 35,340 | 26,528 | ||||||
Tax credit carryforwards | 14,559 | 20,394 | ||||||
Provision for losses on receivables | 1,161 | 1,239 | ||||||
Deferred compensation | 7,517 | 9,120 | ||||||
Deferred revenue | 8,949 | 11,666 | ||||||
Intercompany loans | 2,765 | 2,774 | ||||||
Other | 1,168 | 663 | ||||||
Gross deferred tax assets | 79,680 | 82,700 | ||||||
Deferred tax asset valuation allowance | (6,023 | ) | (11,392 | ) | ||||
Total deferred tax assets | 73,657 | 71,308 | ||||||
Deferred tax liabilities: | ||||||||
Property and equipment | (5,606 | ) | (2,328 | ) | ||||
Revenue recognition | (26,537 | ) | (24,660 | ) | ||||
Intangible assets | (38,186 | ) | (30,817 | ) | ||||
Other | (2,491 | ) | (2,135 | ) | ||||
Total deferred tax liabilities | (72,820 | ) | (59,940 | ) | ||||
Net deferred tax assets | $ | 837 | $ | 11,368 |
(in thousands) | 2013 | 2012 | ||||||
Current deferred tax assets | $ | 44,236 | $ | 37,159 | ||||
Non-current deferred tax assets | 8,556 | 13,885 | ||||||
Current deferred tax liabilities | (16,512 | ) | (14,998 | ) | ||||
Non-current deferred tax liabilities | (35,443 | ) | (24,678 | ) | ||||
$ | 837 | $ | 11,368 |
(in thousands) | 2013 | 2012 | 2011 | |||||||||
Balance at beginning of year | $ | 53,813 | $ | 62,211 | $ | 56,345 | ||||||
Additions related to tax positions in prior years | — | 4,433 | 1,784 | |||||||||
Reductions related to tax positions in prior years | (2,869 | ) | (1,898 | ) | (127 | ) | ||||||
Reductions related to settlements with tax authorities | — | (477 | ) | (23 | ) | |||||||
Reductions related to the expiration of statutes | (4,662 | ) | (6,789 | ) | (901 | ) | ||||||
Currency translation adjustments | 309 | (3,667 | ) | 5,133 | ||||||||
Balance at end of year | $ | 46,591 | $ | 53,813 | $ | 62,211 |
(in thousands) | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | Thereafter | Total | |||||||||||||||||||||
Debt obligations (principal) | $ | 20,399 | $ | 12,500 | $ | 25,000 | $ | 45,000 | $ | 345,000 | $ | — | $ | 447,899 | ||||||||||||||
Operating leases | 61,251 | 50,552 | 39,501 | 30,093 | 22,560 | 95,825 | 299,782 | |||||||||||||||||||||
Purchase commitments* | 44,469 | 23,588 | 6,631 | 548 | 195 | — | 75,431 | |||||||||||||||||||||
Total | $ | 126,119 | $ | 86,640 | $ | 71,132 | $ | 75,641 | $ | 367,755 | $ | 95,825 | $ | 823,112 | ||||||||||||||
*includes commitments to purchase software, hardware and services |
(in thousands) | 2013 | 2012 | 2011 | |||||||||
Service revenue: | ||||||||||||
The Americas | $ | 866,998 | $ | 635,290 | $ | 484,657 | ||||||
Europe, Middle East & Africa | 624,010 | 555,467 | 553,801 | |||||||||
Asia/Pacific | 243,434 | 205,751 | 173,641 | |||||||||
Total | $ | 1,734,442 | $ | 1,396,508 | $ | 1,212,099 | ||||||
Income from operations: | ||||||||||||
The Americas | $ | 44,743 | $ | 27,493 | $ | (3,976 | ) | |||||
Europe, Middle East & Africa | 59,466 | 34,044 | 66,719 | |||||||||
Asia/Pacific | 31,914 | 27,265 | 18,887 | |||||||||
Total | $ | 136,123 | $ | 88,802 | $ | 81,630 | ||||||
Tangible long-lived assets: | ||||||||||||
The Americas | $ | 146,137 | $ | 133,050 | $ | 121,251 | ||||||
Europe, Middle East & Africa | 55,853 | 57,032 | 66,147 | |||||||||
Asia/Pacific | 22,235 | 17,696 | 13,944 | |||||||||
Total | $ | 224,225 | $ | 207,778 | $ | 201,342 |
(in thousands) | 2013 | 2012 | 2011 | |||||||||
Service revenue: | ||||||||||||
United States | $ | 797,380 | $ | 580,340 | $ | 441,546 | ||||||
United Kingdom | $ | 227,964 | $ | 181,386 | $ | 168,460 | ||||||
Germany | $ | 187,099 | $ | 194,528 | $ | 209,144 |
• | CRS constitutes our core business and includes all phases of clinical research from Early Phase (encompassing the early stages of clinical testing that range from first-in-man through proof-of-concept studies) to Phase II-III and Phase IV, which we call Peri-Approval Clinical Excellence (“PACE”). Our services include clinical trials management and biostatistics, data management and clinical pharmacology, as well as related medical advisory, patient recruitment, clinical supply and drug logistics, pharmacovigilance, and investigator site services. We aggregate Early Phase with Phase II-III/PACE due to economic similarities in these operating segments. |
• | PCMS provides technical expertise and advice in such areas as drug development, regulatory affairs, product pricing and reimbursement, commercialization and strategic compliance. It also provides a full spectrum of market development, product development, and targeted communications services in support of product launch. Our PCMS consultants identify alternatives and propose solutions to address client issues associated with product development, registration, and commercialization. HERON is included in our PCMS reportable segment. |
• | Perceptive provides information technology solutions designed to help improve clients’ product development and regulatory submission processes. Perceptive offers a portfolio of products and services that includes medical imaging services, ClinPhone® randomization and trial supply management ("RTSM"), IMPACT® clinical trials management systems ("CTMS"), DataLabs® electronic data capture ("EDC"), web-based portals, systems integration, electronic patient reported outcomes ("ePRO"), and LIQUENT InSight® Regulatory Information Management (RIM) solutions. These services are often bundled together and integrated with other applications to provide eClinical solutions for our clients. LIQUENT is included in our Perceptive reportable segment. |
(in thousands) | CRS | PCMS | PERCEPTIVE | TOTAL | ||||||||||||
Service revenue: | ||||||||||||||||
2013 | $ | 1,303,569 | $ | 202,524 | $ | 228,349 | $ | 1,734,442 | ||||||||
2012 | 1,038,705 | 167,125 | 190,678 | 1,396,508 | ||||||||||||
2011 | 922,827 | 129,728 | 159,544 | 1,212,099 | ||||||||||||
Gross profit on service revenue: | ||||||||||||||||
2013 | $ | 347,056 | $ | 81,570 | $ | 98,280 | $ | 526,906 | ||||||||
2012 | 279,166 | 69,565 | 75,948 | 424,679 | ||||||||||||
2011 | 294,200 | 52,049 | 68,066 | 414,315 |
Fiscal Year 2013 | ||||||||||||||||||||
(in thousands, except per share data) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total Year | |||||||||||||||
Service revenue | $ | 394,753 | $ | 422,068 | $ | 454,493 | $ | 463,128 | $ | 1,734,442 | ||||||||||
Gross profit | 115,349 | 120,743 | 142,576 | 148,238 | 526,906 | |||||||||||||||
Income from operations | 29,752 | 31,437 | 36,606 | 38,328 | 136,123 | |||||||||||||||
Net income | 15,064 | 21,343 | 29,524 | 30,041 | 95,972 | |||||||||||||||
Diluted earnings per share | $ | 0.25 | $ | 0.36 | $ | 0.50 | $ | 0.52 | $ | 1.61 | ||||||||||
Fiscal Year 2012 | ||||||||||||||||||||
(in thousands, except per share data) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total Year | |||||||||||||||
Service revenue | $ | 314,735 | $ | 333,170 | $ | 355,992 | $ | 392,611 | $ | 1,396,508 | ||||||||||
Gross profit | 92,561 | 105,071 | 114,547 | 112,500 | 424,679 | |||||||||||||||
Income from operations | 12,450 | 22,596 | 28,217 | 25,539 | 88,802 | |||||||||||||||
Net income | 9,561 | 12,940 | 22,869 | 17,788 | 63,158 | |||||||||||||||
Diluted earnings per share | $ | 0.16 | $ | 0.21 | $ | 0.38 | $ | 0.29 | $ | 1.05 |
The Company’s independent registered public accounting firm, Ernst & Young LLP, has issued an audit report on the Company’s internal control over financial reporting. This report appears on page 76. |
/s/ Josef H. von Rickenbach | /s/ James F. Winschel, Jr. | ||
Josef H. von Rickenbach | James F. Winschel, Jr. | ||
Chairman of the Board and Chief Executive Officer | Senior Vice President and Chief Financial Officer | ||
(principal executive officer) | (principal financial officer) |
• | The review and redesign of our internal controls related to business combinations, with emphasis on conforming an acquired entity's accounting policies with U.S. GAAP; |
• | The early evaluation by our Internal Audit group of the internal control environment of the acquired entity, together with periodic reports to management on internal control challenges and progress; |
• | The strengthening or supplementing of technical resources to provide for the completion of purchase accounting for the acquired entity as quickly as possible after transaction closing to identify and clear technical issues on a timely basis. The acceleration of integration of the acquired entity on to PAREXEL standard financial systems and shared services; |
• | The enhancement of oversight by senior financial management on the harmonization of accounting and financial policies of the acquired company with PAREXEL policies and processes. |
(a) | 1. Financial Statements | |
The following financial statements and supplementary data are included in Item 8 of this annual report: | ||
Reports of Independent Registered Public Accounting Firm for the years ended June 30, 2013, 2012 and 2011 | ||
Consolidated Statements of Income and Comprehensive Income for each of the three years ended June 30, 2013, 2012 and 2011 | ||
Consolidated Balance Sheets at June 30, 2013 and 2012 | ||
Consolidated Statements of Cash Flows for each of the three years ended June 30, 2013, 2012 and 2011 | ||
Consolidated Statements of Stockholders’ Equity for each of the three years ended June 30, 2013, 2012 and 2011 | ||
Notes to Consolidated Financial Statements | ||
2. Financial Statement Schedules | ||
Schedule II - Valuation and Qualifying Accounts | ||
All other schedules have been omitted since the required information is not present, or not present in amounts sufficient to require submission of the schedule or because the information required is included in the consolidated financial statements or the Notes thereto. | ||
3. Exhibits | ||
Exhibits filed with this Form 10-K are included on the Exhibit Index, which is incorporated herein by reference, and are filed or furnished as part of this report or are incorporated into this report by reference. |
By: | /s/ Josef H. von Rickenbach | Dated: | August 21, 2013 | |||
Josef H. von Rickenbach Chairman of the Board and Chief Executive Officer |
Signatures | Title(s) | Date | ||
/s/ Josef H. von Rickenbach | August 21, 2013 | |||
Josef H. von Rickenbach | Chairman of the Board and Chief Executive Officer (principal executive officer) | |||
/s/ A. Dana Callow, Jr. | August 21, 2013 | |||
A. Dana Callow, Jr. | Director | |||
/s/ Patrick J. Fortune | August 21, 2013 | |||
Patrick J. Fortune | Director | |||
/s/ Eduard E. Holdener | August 21, 2013 | |||
Eduard E. Holdener | Director | |||
/s/ Christopher J. Lindop | August 21, 2013 | |||
Christopher J. Lindop | Director | |||
/s/ Richard L. Love | August 21, 2013 | |||
Richard L. Love | Director | |||
/s/ James F. Winschel, Jr. | August 21, 2013 | |||
James F. Winschel, Jr. | Senior Vice President and Chief Financial Officer (principal financial and accounting officer) | |||
/s/ Ellen M. Zane | August 21, 2013 | |||
Ellen M. Zane | Director |
(in thousands) | Balance at beginning of year | Charged (credited) to costs and expenses | Other adjustments* | Balance at end of year | ||||||||||||
Provision for losses on receivables | ||||||||||||||||
Year ended June 30, 2011 | $ | 13,015 | $ | 1,783 | $ | (531 | ) | $ | 14,267 | |||||||
Year ended June 30, 2012 | $ | 14,267 | $ | 818 | $ | (5,637 | ) | $ | 9,448 | |||||||
Year ended June 30, 2013 | $ | 9,448 | $ | (346 | ) | $ | (4,578 | ) | $ | 4,524 | ||||||
* Other adjustments denote the effects of foreign currency exchange, write-offs, and recoveries. |
(in thousands) | Balance at beginning of year | Charged (credited) to income tax expense | Other adjustments* | Balance at end of year | ||||||||||||
Valuation allowance for deferred tax assets | ||||||||||||||||
Year ended June 30, 2011 | $ | 21,670 | $ | (6,782 | ) | $ | (452 | ) | $ | 14,436 | ||||||
Year ended June 30, 2012 | $ | 14,436 | $ | 1,179 | $ | (4,223 | ) | $ | 11,392 | |||||||
Year ended June 30, 2013 | $ | 11,392 | $ | (4,708 | ) | (661 | ) | $ | 6,023 | |||||||
* Other adjustments denote the effects of foreign currency exchange, write-offs, recoveries, acquisitions and certain reclassifications related to ASC 740. |
EXHIBIT NO. | DESCRIPTION | |
3.1 | Amended and Restated Articles of Organization of the Company, as amended. | |
3.2 | Amended and Restated By-laws of the Company, as amended (filed as Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2009 and incorporated herein by this reference). | |
4.1 | Specimen certificate representing the Common Stock of the Company (filed as Exhibit 4.1 to the Company’s Registration Statement on Form S-1 (File No. 33-97406) and incorporated herein by this reference). | |
10.1* | Second Amended and Restated 1995 Stock Plan of the Company (filed as Exhibit 10.9 to the Company’s Annual Report on Form 10-K for the year ended June 30, 1998 and incorporated herein by this reference). | |
10.2* | Form of Stock Option Agreement under the Company’s Second Amended and Restated 1995 Stock Plan (filed as Exhibit 99.1 to the Company’s current Report on Form 8-K dated September 2, 2004 and incorporated herein by this reference). | |
10.3* | Form of Stock Option Agreement for Executive Officers under the Company’s Second Amended and Restated 1995 Stock Plan (filed as Exhibit 10.3 to the Company’s Annual Report on Form 10-K for the year ended June 30, 2004 and incorporated herein by this reference). | |
10.4* | 1998 Non-Qualified, Non-Officer Stock Option Plan, as amended (filed as Exhibit 10.16 to the Company’s Annual Report on Form 10-K for the year ended June 30, 1999 and incorporated herein by this reference). | |
10.5* | 2001 Stock Incentive Plan of the Company (filed as Exhibit 10.7.1 to the Company’s Annual Report on Form 10-K for the year ended June 30, 2006 and incorporated herein by this reference). | |
10.6* | Amendment No. 1 to 2001 Stock Incentive Plan of the Company (filed as Exhibit 10.7.2 to the Company’s Annual Report on Form 10-K for the year ended June 30, 2006 and incorporated herein by this reference). | |
10.7* | Form of Stock Option Agreement under the Company’s 2001 Stock Incentive Plan (filed as Exhibit 10.4 to the Company’s Annual Report on Form 10-K for the year ended June 30, 2004 and incorporated herein by this reference). | |
10.8* | 2005 Stock Incentive Plan of the Company (filed as Exhibit 10.8 to the Company’s Annual Report on Form 10-K for the year ended June 30, 2006 and incorporated herein by this reference). | |
10.9* | Form of Restricted Stock Agreement for non-employee directors under the Company’s 2005 Stock Incentive Plan (filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2009 and incorporated herein by this reference). | |
10.10* | Form of Restricted Stock Agreement for executive officers under the Company’s 2005 Stock Incentive Plan (filed as Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2009 and incorporated herein by this reference). | |
10.11* | Form of Stock Option Agreement under the Company’s 2005 Stock Incentive Plan | |
10.12* | 2007 Stock Incentive Plan (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2007 and incorporated herein by reference). | |
10.13* | Form of Restricted Stock Unit Agreement for executive officers under the Company’s 2007 Stock Incentive Plan (filed as Exhibit 10.29 to the Company’s Annual Report on Form 10-K for the year ended June 30, 2010 and incorporated herein by reference). | |
10.14* | Form of Restricted Stock Agreement for non-employee directors under the Company’s 2007 Stock Incentive Plan | |
10.15* | Form of Restricted Stock Agreement for executive officers under the Company’s 2007 Stock Incentive Plan | |
10.16* | Form of Stock Option Agreement under the Company’s 2007 Stock Incentive Plan | |
10.17* | 2010 Stock Incentive Plan as amended. | |
10.18* | Form of Restricted Stock Agreement for non-employee directors under the Company’s 2010 Stock Incentive Plan (filed as Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 and incorporated herein by reference) | |
10.19* | Form of Restricted Stock Agreement for executive officers under the Company’s 2010 Stock Incentive Plan (filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 and incorporated herein by reference) | |
10.20* | Form of Restricted Stock Unit Agreement for executive officers under the Company’s 2010 Stock Incentive Plan (filed as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 and incorporated herein by reference) | |
10.21* | Form of Stock Option Agreement under the Company’s 2010 Stock Incentive Plan (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 and incorporated herein by reference) | |
10.22* | Corporate Plan for Retirement of the Company (filed as Exhibit 10.16 to the Company’s Registration Statement on Form S-1 (File No. 33-97406) and incorporated herein by this reference). | |
10.23 | Lease dated June 14, 1991 between 200 West Street Limited Partnership and the Company (filed as Exhibit 10.19 to the Company’s Annual Report on Form 10-K for the year ended June 30, 2000 and incorporated herein by this reference). | |
10.24 | First Amendment dated as of January 3, 1992 to the Lease dated June 14, 1991 between 200 West Street Limited Partnership and the Company (filed as Exhibit 10.25 to the Company’s Registration Statement on Form S-1 (File No. 33-97406) and incorporated herein by this reference). | |
10.25 | Second Amendment dated as of June 28, 1993 to the Lease dated June 14, 1991 between 200 West Street Limited Partnership and the Company (filed as Exhibit 10.28 to the Company’s Registration Statement on Form S-1 (File No. 33-97406) and incorporated herein by this reference). | |
10.26 | Third Amendment to Lease dated November 17, 1998 between Boston Properties Limited Partnership and the Company (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 1998 and incorporated herein by this reference). | |
10.27 | Fourth Amendment dated August 28, 2000 to the Lease dated November 17, 1998 between Boston Properties Limited Partnership and the Company (filed as Exhibit 10.22 to the Company’s Annual Report on Form 10-K for the year ended June 30, 2000 and incorporated herein by this reference). | |
10.28 | Fifth Amendment dated as of June 29, 2007 to the lease dated June 14, 1991 by and between Boston Properties Limited Partnership and PAREXEL International, LLC (filed as Exhibit 10.12.5 to the Company’s Annual Report on Form 10-K for the year ended June 30, 2007 and incorporated herein by this reference). |
EXHIBIT NO. | DESCRIPTION | |
10.29* | Amended and Restated Employment Agreement dated April 15, 2008 between Josef H. von Rickenbach and the Company (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 and incorporated herein by this reference). | |
10.30* | Employment Agreement, dated February 21, 2005, between Ulf Schneider and PAREXEL GmbH (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated February 21, 2005 and incorporated herein by this reference). | |
10.31* | Amended and Restated Change of Control/Severance Agreement, dated as of April 15, 2008, by and between the Company and James F. Winschel, Jr. (filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 and incorporated herein by this reference). | |
10.32* | Amended and Restated Change of Control/Severance Agreement, dated as of October 31, 2008, by and between the Company and Mark A. Goldberg (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated October 31, 2008 and incorporated herein by reference). | |
10.33* | PAREXEL International Amended and Restated Nonqualified Deferred Compensation Plan (filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 and incorporated herein by this reference). | |
10.34 | ABN – AMRO Cash Pooling Agreement, dated as of September 14, 2001 (filed as Exhibit 10.21 to the Company’s Annual Report on Form 10-K for the year ended June 30, 2003 and incorporated herein by this reference). | |
10.35 | Lease dated April 10, 2002 between API (No. 23) Limited, Arlington Property Investments Limited, PAREXEL International Limited and the Company (filed as Exhibit 10.22 to the Company’s Annual Report on Form 10-K for the year ended June 30, 2003 and incorporated herein by this reference). | |
10.36* | Amended and Restated Change of Control/Severance Agreement, dated as of April 15, 2008, by and between the Company and Douglas A. Batt (filed as Exhibit 10.26 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 and incorporated herein by this reference). | |
10.37.1* | Form of Key Employee Agreement for Executive Officers (US) (filed as Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 and incorporated herein by this reference). | |
10.37.2* | Form of Key Employee Agreement for Executive Officers (UK) (filed as Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 and incorporated herein by this reference). | |
10.38 | Amended and Restated Credit Agreement, dated as of March 22, 2013, among PAREXEL, certain subsidiaries of PAREXEL, Bank of America, N.A., as Administrative Agent, Swingline Lender and L/C Issuer, Merill Lynch Pierce Fenner & Smith Incorporated, JPMorgan Securities LLC, HSBC Bank USA, National Association ("HSBC") and U.S. Bank National Association ("US Bank"), as Joint Lead Arrangers and Joint Book Managers, JPMorgan Chase Bank, N.A., HSBC and US Bank, as Joint Syndication Agents, and the lenders party thereto (incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated March 22, 2013 and incorporated herein by this reference). | |
10.39* | Perceptive Informatics President Long-Term Discretionary Incentive Plan (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2010 and incorporated herein by this reference) | |
10.40* | Change of Control/severance Agreement, dated as of November 5, 2009, by and between the Company and Ulf Schneider (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated November 5, 2009, and incorporated herein by this reference). | |
10.41* | Key Employee Agreement, dated November 1, 2012, by and between PAREXEL International Limited and Anita Cooper (filed as Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2012 and incorporated herein by this reference). | |
10.43* | Key Employee Agreement, dated November 6, 2012, by and between PAREXEL International Corporation and Joseph C. Avellone (filed as Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2012 and incorporated herein by this reference). | |
10.44* | Employment Offer Letter, dated June 6, 2013, between PAREXEL International Corporation and Ingo Bank. | |
10.45* | Change of Control/Severance Agreement, dated as of July 1, 2013, by and between the Company and Ingo Bank. | |
10.46 | Receivables Purchase Agreement, dated as of February 19, 2013, by and between PAREXEL International, LLC and JPMorgan Chase Bank, N.A. (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K dated February 19, 2013 and incorporated herein by reference). | |
10.47 | Note Purchase Agreement, dated as of June 25, 2013, between the Company and the Purchasers listed therein (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K dated June 25, 2013 and incorporated herein by reference). | |
21.1 | List of subsidiaries of the Company. | |
23.1 | Consent of Independent Registered Public Accounting Firm. | |
31.1 | CEO certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | CFO certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 | CEO certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2 | CFO certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS** | XBRL Instance Document. | |
101.SCH** | XBRL Taxonomy Extension Schema. | |
101.CAL** | XBRL Taxonomy Extension Calculation Linkbase. | |
101.DEF** | XBRL Taxonomy Extension Definition Linkbase. | |
101.LAB** | XBRL Taxonomy Extension Label Linkbase. | |
101.PRE** | XBRL Taxonomy Extension Presentation Linkbase. | |
* Denotes management contract or any compensatory plan, contract or arrangement | ||
** In accordance with Rule 406T of Regulation S-T, the information in these exhibits is furnished and deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections |
WITHOUT PAR VALUE | WITH PAR VALUE | |||
TYPE | NUMBER OF SHARES | TYPE | NUMBER OF SHARES | PAR VALUE |
Common | 75,000,000 | $.01 | ||
Preferred | 5,000,000 | $.01 | ||
WITHOUT PAR VALUE | WITH PAR VALUE | |||
TYPE | NUMBER OF SHARES | TYPE | NUMBER OF SHARES | PAR VALUE |
Common | 150,000,000 | $.01 | ||
Preferred | 5,000,000 | $.01 | ||
(Illegible) | Filing fee: Minimum filing fee $100 per article amended, stock increases $100 per 100,000 shares, plus $100 for each additional 100,000 shares or any fraction thereof. | |
Examiner | ||
(Illegible) | TO BE FILLED IN BY CORPORATION | |
Name approval | Contact Information: | |
C | ||
W. Brett Davis, Esq. | ||
M | c/o PAREXEL International Corporation | |
195 West Street, Waltham, MA 02451 | ||
Telephone: 781-434-4056 | ||
Email: brett.davis@parexel.com | ||
Upon filing, a copy of this filing will be available at www.sec.state.ma.us/cor. If the document is rejected, a copy of the rejection sheet and rejected document will be available in the rejected queue. |
/s/ Ingo Bank | 6/7/2013 | |
Signature | Date |
Subsidiary Name | Location | Ownership % | ||
PAREXEL International S.A. | Argentina | 100% | ||
PAREXEL Argentina S.A. | Argentina | 100% | ||
PAREXEL International Pty Ltd | Australia | 100% | ||
PAREXEL Belgium SPRL | Belgium | 100% | ||
PAREXEL International Pesquisas Clinicas Ltda. | Brazil | 100% | ||
· PAREXEL International Pesquisas Clinicas Ltda. City of Embu das Artes Branch Office | ||||
PAREXEL International (BVI) Corp. | British Virgin Islands | 100% | ||
PAREXEL International (Canada), Ltd. | Canada, New Brunswick | 100% | ||
PAREXEL International (Cayman) Corp. | Cayman Islands | 100% | ||
PAREXEL International y Compania Limitada | Chile | 100% | ||
PAREXEL China Co. Ltd. | China, Peoples Republic of | 100% | ||
· PAREXEL China Co. Ltd. Beijing Branch Office | ||||
· PAREXEL China Co. Ltd. Chengdu Branch Office | ||||
· PAREXEL China Co. Ltd. Guangzhou Branch Office | ||||
· PAREXEL China Co. Ltd. Shenyang Branch Office | ||||
PAREXEL International Co. Ltd. | China, Republic of (Taiwan) | 100% | ||
PAREXEL International Colombia SAS | Colombia | 100% | ||
PAREXEL International d.o.o. (Croatia) | Croatia | 100% | ||
PAREXEL International Czech Republic S.R.O. | Czech Republic | 100% | ||
PAREXEL Denmark A/S | Denmark | 100% | ||
PAREXEL Finland OY | Finland | 100% | ||
PAREXEL International SARL | France | 100% | ||
PAREXEL International GmbH | Germany | 100% | ||
PAREXEL International Holding Germany GmbH | Germany | 100% | ||
PAREXEL International (Hong Kong) Company Limited | Hong Kong | 100% | ||
PAREXEL Hungary Limited | Hungary | 100% | ||
BVUD Research (India) Private Limited | India | 100% | ||
PAREXEL International (India) Private Limited | India | 100% | ||
PAREXEL International Clinical Research Private Limited | India | 100% | ||
HERON Health Pvt. Ltd | India | 100% | ||
Synchron Research Services Pvt. Ltd. | India | Approx. 31.1% | ||
Liquent Software India Private Limited | India | 100% | ||
PT PAREXEL International Indonesia | Indonesia | 100% | ||
PAREXEL International Clinical Research (Israel) Ltd. | Israel | 100% | ||
PAREXEL International SRL | Italy | 100% | ||
PAREXEL International Inc. | Japan | 100% | ||
PAREXEL Korea Co., Ltd. | Korea, Republic of | 100% | ||
PAREXEL International UAB | Lithuania | 100% | ||
PAREXEL International (Malaysia) SDN BHD | Malaysia | 100% | ||
PAREXEL International Mexico S.A. DE C.V. | Mexico | 100% | ||
PAREXEL International Mexico Services S.A. DE C.V. | Mexico | 100% | ||
Mirai Placebo B.V. | Netherlands | 100% | ||
PAREXEL Dutch Holding C.V. | Netherlands | 100% | ||
PAREXEL International Holding B.V. | Netherlands | 100% | ||
PAREXEL Nederland B.V. | Netherlands | 100% | ||
· The Representative Office of PAREXEL Nederland B.V. in Ho Chi Minh City | ||||
PAREXEL Norway AS | Norway | 100% | ||
PAREXEL Russia AS | Norway | 100% |
Subsidiary Name (cont.) | Location | Ownership % | ||
PAREXEL International (Peru) S.A. | Peru | 100% | ||
PAREXEL Clinical Research (Philippines) Ltd. Corp. | Philippines | 100% | ||
PAREXEL Polska SP ZOO | Poland | 100% | ||
PAREXEL International Romania SRL | Romania | 100% | ||
PAREXEL International (RUS) LLC | Russian Federation | 100% | ||
PAREXEL International d.o.o. (Serbia) | Serbia | 100% | ||
PAREXEL International (Singapore) Pte. Ltd. | Singapore | 100% | ||
FARMOVS PAREXEL (Proprietary) Limited | South Africa | 70% | ||
PAREXEL International (South Africa) Pty Ltd | South Africa | 100% | ||
PAREXEL International, S.L. | Spain | 100% | ||
PAREXEL Sweden AB | Sweden | 100% | ||
HERON Evidence Development AB | Sweden | 100% | ||
PAREXEL IP AG | Switzerland | 100% | ||
PAREXEL International (Thailand) Co., Ltd. | Thailand | 100% | ||
PAREXEL Ukraine LLC | Ukraine | 100% | ||
ClinPhone Development Ltd. | United Kingdom | 100% | ||
Perceptive eClinical Limited | United Kingdom | 100% | ||
ClinPhone Limited | United Kingdom | 100% | ||
Castlegate 211 Limited | United Kingdom | 100% | ||
Castlegate 252 Limited | United Kingdom | 100% | ||
Castlegate 283 Limited | United Kingdom | 100% | ||
Castlegate 284 Limited | United Kingdom | 100% | ||
Random Access Services Ltd. | United Kingdom | 100% | ||
‘Allo Language Services Ltd. | United Kingdom | 100% | ||
FWPS Group Ltd. | United Kingdom | 100% | ||
PAREXEL International (UK) Limited | United Kingdom | 100% | ||
PAREXEL International Holding UK Limited | United Kingdom | 100% | ||
PAREXEL International Limited | United Kingdom | 100% | ||
PAREXEL MMS Europe Limited | United Kingdom | 100% | ||
Perceptive Informatics UK Limited | United Kingdom | 100% | ||
Liquent Holdings Limited | United Kingdom | 100% | ||
Liquent Limited | United Kingdom | 100% | ||
· Liquent Limited French Branch | ||||
· Liquent Limited German Branch | ||||
Datafarm UK Limited | United Kingdom | 100% | ||
HERON Group Limited | United Kingdom | 100% | ||
HERON Evidence Development Ltd. | United Kingdom | 100% | ||
ClinPhone California Inc. | US, California | 100% | ||
PPSI, Inc. | US, Connecticut | 100% | ||
Perceptive Services, Inc. | US, Delaware | 100% | ||
DataLabs Inc. | US, Delaware | 100% | ||
PAREXEL International Dutch Holding LLC | US, Delaware | 100% | ||
PAREXEL International Holding Corporation | US, Delaware | 100% | ||
PAREXEL International, LLC | US, Delaware | 100% | ||
PAREXEL Medical Marketing Services (NJ), LLC | US, Delaware | 100% | ||
Perceptive Informatics, Inc. | US, Delaware | 100% | ||
Liquent Inc. | US, Delaware | 100% | ||
Datafarm Acquisition LLC | US, Delaware | 100% | ||
HERON Evidence Development LLC | US, Delaware | 100% | ||
PAREXEL International Trust | US, Massachusetts | 100% | ||
The Center for Bio-Medical Communication, Inc. | US, New Jersey | 100% | ||
PAREXEL (IMC), Inc. | US, Pennsylvania | 100% | ||
PAREXEL International Medical Marketing Services, Inc. | US, Virginia | 100% |
Date: | August 21, 2013 | By: /s/ Josef H. von Rickenbach | |
Josef H. von Rickenbach | |||
(principal executive officer) |
Date: | August 21, 2013 | By: /s/ James F. Winschel, Jr. | |
James F. Winschel, Jr. | |||
(principal financial officer) |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | August 21, 2013 | By: /s/ Josef H. von Rickenbach | |
Josef H. von Rickenbach | |||
Chairman of the Board and Chief Executive Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | August 21, 2013 | By: /s/ James F. Winschel, Jr. | |
James F. Winschel, Jr. | |||
Senior Vice President and Chief Financial Officer |
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Fair Value Measurements (Fair Value Hierarchy By Level) (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
Fair Value, Inputs, Level 3 [Member]
|
Jun. 30, 2012
Fair Value, Inputs, Level 3 [Member]
|
Jun. 30, 2013
Fair Value, Inputs, Level 1 [Member]
|
Jun. 30, 2012
Fair Value, Inputs, Level 1 [Member]
|
Jun. 30, 2013
Fair Value, Inputs, Level 2 [Member]
|
Jun. 30, 2012
Fair Value, Inputs, Level 2 [Member]
|
Jun. 30, 2013
Minimum [Member]
|
Jun. 30, 2013
Maximum [Member]
|
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Marketable Securities Maturity Period | 90 days | one year | ||||||||
Marketable Securities, Current | $ 130,137 | $ 0 | ||||||||
Cash and Cash Equivalents, Fair Value Disclosure | 81,123 | 0 | 0 | 81,123 | 0 | 0 | ||||
Contingent Consideration Classified as Equity, Fair Value Disclosure | (5,934) | (5,934) | ||||||||
Interest Rate Derivative Instruments | (849) | (6,959) | 0 | 0 | 0 | 0 | (849) | (6,959) | ||
Foreign Currency Exchange Contracts | (3,425) | (2,910) | 0 | 0 | 0 | 0 | (3,425) | (2,910) | ||
Assets, Fair Value Disclosure | $ (10,208) | $ 71,254 | $ (5,934) | $ 0 | $ 0 | $ 81,123 | $ (4,274) | $ (9,869) |
Accumulated Other Comprehensive Income (Loss)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss) has been calculated by PAREXEL in accordance with ASC 220, “Comprehensive Income.” The reconciliation of the components of accumulated other comprehensive income (loss) was as follows:
The unrealized gain (loss) on derivative instruments is net of taxes of $0.4 million in Fiscal Year 2013, $(0.8) million in Fiscal Year 2012, and $0.5 million in Fiscal Year 2011. |
Derivatives (Schedule Of Change In Fair Value Derivatives Not Designated As Hedging Instruments) (Details) (Derivatives Not Designated As Hedging Instruments [Member], USD $)
In Thousands, unless otherwise specified |
12 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Fair value of derivative not designated as hedging instruments | $ 1,946 | $ (6,302) |
Foreign Exchange Contracts [Member]
|
||
Fair value of derivative not designated as hedging instruments | (688) | (1,339) |
Currency Swap [Member]
|
||
Fair value of derivative not designated as hedging instruments | $ 2,634 | $ (4,963) |
Consolidated Balance Sheets (Parenthetical) (USD $)
|
Jun. 30, 2013
|
Jun. 30, 2012
|
---|---|---|
Statement of Financial Position [Abstract] | ||
Par value | $ 0.01 | $ 0.01 |
Shares authorized | 5,000,000 | 5,000,000 |
Shares issued and outstanding | 0 | 0 |
Par value | $ 0.01 | $ 0.01 |
Shares authorized | 150,000,000 | 75,000,000 |
Balance, shares | 56,310,582 | 60,147,007 |
Derivatives
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
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Summary of Derivative Instruments by Hedge Designation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | DERIVATIVES We are exposed to certain risks relating to our ongoing business operations. The primary risks that we seek to manage by using derivative instruments are interest rate risk and foreign currency exchange rate risk. Accordingly, we have instituted interest rate and foreign currency hedging programs that are accounted for in accordance with ASC 815, “Derivatives and Hedging.”
We also enter into other economic hedges to mitigate foreign currency exchange risk and interest rate risk related to intercompany and significant external transactions. These contracts are not designated as hedges in accordance with ASC 815. The following table presents the notional amounts and fair values of our derivatives as of June 30, 2013 and June 30, 2012. All asset and liability amounts are reported in other current assets and other current and non-current liabilities.
We record the effective portion of any change in the fair value of derivatives designated as hedging instruments under ASC 815 to other accumulated comprehensive income (loss) in our consolidated balance sheet, net of deferred taxes, and any ineffective portion to miscellaneous income (expense) in our consolidated statements of income. The amounts recognized for Fiscal Year 2013 and Fiscal Year 2012 in other comprehensive income (loss) are presented below:
Under certain circumstances, such as the occurrence of significant differences between actual cash receipts and forecasted cash receipts, the ASC 815 programs could be deemed ineffective. During Fiscal Year 2013 and 2012, the amounts recorded to reflect ineffective portions of any hedges were not material. The estimated net amount of the existing losses that are expected to be reclassified into earnings within the next twelve months is $4.1 million. The change in the fair value of derivatives not designated as hedging instruments under ASC 815 is recorded to miscellaneous expense, net in the income statement. The amounts recognized for Fiscal Year 2013 and Fiscal Year 2012 are presented below:
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Quarterly Operating Results
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12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Operating Results | QUARTERLY OPERATING RESULTS (UNAUDITED) The following is a summary of unaudited quarterly results of operations for the years ended June 30, 2013 and June 30, 2012:
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Accumulated Other Comprehensive Income (Loss) (Details) (USD $)
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12 Months Ended | |||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2011
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Jun. 30, 2010
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Accumulated other comprehensive income (loss), foreign currency translation adjustments | $ (29,138,000) | $ (27,615,000) | $ 18,719,000 | $ (34,414,000) |
Accumulated other comprehensive income (loss), unrealized gain (loss) on derivative instruments | (900,000) | (1,524,000) | 136,000 | (7,020,000) |
Accumulated other comprehensive income (loss) | (30,038,000) | (29,139,000) | 18,855,000 | (41,434,000) |
Other comprehensive income (loss), foreign currency translation adjustments | (1,523,000) | (46,334,000) | 53,133,000 | |
Other comprehensive income (loss), unrealized gain (loss) on derivative instruments | 624,000 | (1,660,000) | 7,156,000 | |
Other comprehensive income (loss) | (899,000) | (47,994,000) | 60,289,000 | |
Unrealized gain (loss) on derivative instruments, tax | $ 400,000 | $ (800,000) | $ 500,000 |
Restructuring Charges (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended |
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Jun. 30, 2013
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2011 Restructuring Plan [Member]
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Number managerial and staff positions eliminated | 150 |
Restructuring charges | $ 14.6 |
2010 Restructuring Plan [Member]
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Number managerial and staff positions eliminated | 240 |
Restructuring charges | $ 16.8 |
Stock And Employee Benefit Plans
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12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock And Employee Benefit Plans | STOCK AND EMPLOYEE BENEFIT PLANS Stock-Based Compensation We account for stock-based compensation under ASC 718, “Compensation-Stock Compensation.” The stock option compensation cost calculated under the fair value approach is recognized over the vesting period of the stock options (generally over four years). All stock option grants are subject to graded vesting as services are rendered. The fair value for granted options is estimated at the time of the grant using the Black-Scholes option-pricing model. Expected volatilities are based on historical volatilities and PAREXEL uses historical data to estimate option exercise behavior. The expected term represents an estimate of the period of time we expect the options to remain outstanding based on historical exercise and post-vesting termination data. The dividend yield equals the most recent dividend payment over the market price of the stock at the beginning of the period. The risk-free interest rate is the rate at the date of grant for a zero-coupon U.S. Treasury bond with a term that approximates the expected term of the option. The following weighted average assumptions were used in the Black-Scholes option-pricing model for awards issued during the respective periods:
For the last three fiscal years, we recognized the following stock-based compensation expense:
For Fiscal Years 2013, 2012, and 2011, the tax benefit related to stock compensation expense that we recognized was $3.1 million, $3.8 million, and $3.5 million, respectively. As of June 30, 2013, unearned stock-based compensation expense related to unvested awards (stock options and restricted stock) was approximately $25.7 million, which will be recognized over a weighted-average period of 3.0 years. Stock Options The Compensation Committee of the Board of Directors is responsible for the administration of PAREXEL’s stock option plans and determines the term of each option, the option exercise price, the number of option shares granted, and the rate at which options become exercisable. We adopted stock incentive plans in December 2010, December 2007, and September 2005, each of which provides for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based award grants of up to 9,000,000 shares in aggregate to employees, officers, directors, consultants, and advisors. The granting of awards under these plans is discretionary and the individuals who may become participants and receive awards under these plans, and the number of shares they may acquire, are not determinable. In September 2001, we adopted the 2001 Stock Incentive Plan (“2001 Plan”), which provides for the grant of incentive and non-qualified stock options for the purchase of up to an aggregate of 2,000,000 shares of common stock to employees, officers, directors, consultants, and advisors (and any individuals who have accepted an offer for employment) of PAREXEL. Options under the 2001 Plan expire no more than ten years from the date of grant and the expiration date and vesting period may vary at the Board of Directors’ discretion. The following table summarizes information related to stock option activity for the respective periods:
Stock option activity for the year ended June 30, 2013 was:
Options that were outstanding, exercisable, and expected to vest as of June 30, 2013 are as follows:
Restricted Stock PAREXEL uses restricted stock awards (“RSAs”) and restricted stock units (“RSUs”), granted under the plans described above, as a component of compensation for executive officers, non-employee members of the Board of Directors, and other employees. In Fiscal Year 2013, we granted RSAs and RSUs that will vest at the end of a three-year service period for employees or one-year service period for non-employee members of the Board. The fair values of the Fiscal Year 2013 restricted stock awards and restricted stock units were based upon the closing stock prices on the day of the grants. Restricted stock activity for the year ended June 30, 2013 was:
Employee Stock Purchase Plan PAREXEL sponsors an employee stock purchase plan (the “Purchase Plan”). The Purchase Plan allows eligible employees to purchase common stock at 95% of the fair market value of the stock on the last day of each purchase period (as defined by the Purchase Plan). The Purchase Plan also includes the automatic enrollment of contributions whereby an eligible employee’s compensation would be reduced and automatic enrollment contributions made on his/her behalf unless an affirmative election not to do so was made. The Purchase Plan is non-compensatory, and as such, no stock based compensation is recorded. An aggregate of approximately 1,800,000 shares may be issued under the Purchase Plan. The following table summarizes the purchases under the Purchase Plan for the last three fiscal years:
Savings Plan PAREXEL sponsors an employee savings plan (“the Plan”) as defined by Section 401(k) of the Internal Revenue Code of 1986, as amended. The Plan covers substantially all employees in the U.S. who elect to participate. Participants have the opportunity to invest on a pre-tax basis in a variety of mutual fund options and PAREXEL stock. We match 100% of each participant’s voluntary contributions up to 3% of gross salary per payroll period subject to an annual cap of $3,000. PAREXEL contributions vest to the participants in 20% increments for each year of employment and become fully vested after five years of continuous employment. Our contributions to the Plan were approximately $8.6 million, $6.1 million, and $5.2 million for the Fiscal Years 2013, 2012, and 2011, respectively. |
Geographic Information (Schedule Of Financial Information By Geographic Area) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||||
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Jun. 30, 2013
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Mar. 31, 2013
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Dec. 31, 2012
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Sep. 30, 2012
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Jun. 30, 2012
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Mar. 31, 2012
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Dec. 31, 2011
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Sep. 30, 2011
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2011
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Sales Revenue, Services, Net | $ 463,128 | $ 454,493 | $ 422,068 | $ 394,753 | $ 392,611 | $ 355,992 | $ 333,170 | $ 314,735 | $ 1,734,442 | $ 1,396,508 | $ 1,212,099 |
Income from operations | 38,328 | 36,606 | 31,437 | 29,752 | 25,539 | 28,217 | 22,596 | 12,450 | 136,123 | 88,802 | 81,630 |
Tangible long-lived assets | 224,225 | 207,778 | 224,225 | 207,778 | 201,342 | ||||||
The Americas [Member]
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Sales Revenue, Services, Net | 866,998 | 635,290 | 484,657 | ||||||||
Income from operations | 44,743 | 27,493 | (3,976) | ||||||||
Tangible long-lived assets | 146,137 | 133,050 | 146,137 | 133,050 | 121,251 | ||||||
Europe, Middle East & Africa [Member]
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Sales Revenue, Services, Net | 624,010 | 555,467 | 553,801 | ||||||||
Income from operations | 59,466 | 34,044 | 66,719 | ||||||||
Tangible long-lived assets | 55,853 | 57,032 | 55,853 | 57,032 | 66,147 | ||||||
Asia/Pacific [Member]
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Sales Revenue, Services, Net | 243,434 | 205,751 | 173,641 | ||||||||
Income from operations | 31,914 | 27,265 | 18,887 | ||||||||
Tangible long-lived assets | $ 22,235 | $ 17,696 | $ 22,235 | $ 17,696 | $ 13,944 |
Acquisitions, Additional Information (Detail) (USD $)
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12 Months Ended | 12 Months Ended | ||||
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Jun. 30, 2013
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Jun. 30, 2013
Liquent Acquisition [Member]
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Dec. 21, 2012
Liquent Acquisition [Member]
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Jun. 30, 2013
Heron Acquisition [Member]
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May 01, 2013
Heron Acquisition [Member]
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Dec. 20, 2012
2012 Term Loan [Member]
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Goodwill, Acquired During Period | $ 51,244,000 | $ 16,631,000 | ||||
Business Combination, Acquisition Related Costs | 1,200,000 | |||||
Business Acquisition, Cost of Acquired Entity, Cash Paid | 22,750,000 | |||||
Business Acquisition, Cost of Acquired Entity, Purchase Price | 74,349,000 | 28,684,000 | ||||
Business Acquisition, Contingent Consideration, Potential Cash Payment | 14,200,000 | |||||
Business Acquisition, Contingent Consideration, at Fair Value | (5,934,000) | 5,934,000 | ||||
Short-term Debt | $ 100,000,000 |
Income Taxes (Provisions For Income Taxes) (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2011
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Income Tax Expense (Benefit) [Abstract] | |||
Current, Federal | $ 6,279 | $ 8,054 | $ 3,618 |
Current, State | 2,565 | 1,010 | (702) |
Current, Foreign | 26,651 | 9,608 | 26,072 |
Current, Total | 35,495 | 18,672 | 28,988 |
Deferred, Federal | 7,650 | 2,447 | (17,307) |
Deferred, State | (2,113) | (869) | (128) |
Deferred, Foreign | (3,854) | (3,702) | (1,705) |
Deferred, Total | 1,683 | (2,124) | (19,140) |
Provision for income taxes | $ 37,178 | $ 16,548 | $ 9,848 |
Restructuring Charges (Schedule Of Changes In Restructuring Accrual) (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2011
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Restructuring Reserve, Beginning Balance | $ 7,774 | $ 9,398 | $ 10,078 |
Provisions/Adjustments | (1,209) | 6,243 | 8,106 |
Payments/Foreign Currency Exchange | (4,006) | (7,867) | (5,697) |
Restructuring Reserve, Ending Balance | 2,559 | 7,774 | 9,398 |
2011 Restructuring Plan [Member] | Employee Severance Costs [Member]
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Restructuring Reserve, Beginning Balance | 1,884 | 1,622 | 0 |
Provisions/Adjustments | (182) | 5,307 | 1,790 |
Payments/Foreign Currency Exchange | (1,702) | (5,045) | (168) |
Restructuring Reserve, Ending Balance | 0 | 1,884 | 1,622 |
2011 Restructuring Plan [Member] | Facilities-Related Charges [Member]
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Restructuring Reserve, Beginning Balance | 3,663 | 3,720 | 0 |
Provisions/Adjustments | (1,027) | 2,004 | 3,663 |
Payments/Foreign Currency Exchange | (1,661) | (2,061) | 57 |
Restructuring Reserve, Ending Balance | 975 | 3,663 | 3,720 |
2010 Restructuring Plan [Member] | Employee Severance Costs [Member]
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Restructuring Reserve, Beginning Balance | 1,160 | 5,221 | |
Provisions/Adjustments | (984) | (832) | |
Payments/Foreign Currency Exchange | (176) | (3,229) | |
Restructuring Reserve, Ending Balance | 0 | 1,160 | |
2010 Restructuring Plan [Member] | Facilities-Related Charges [Member]
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Restructuring Reserve, Beginning Balance | 642 | 855 | 3,337 |
Provisions/Adjustments | 0 | (84) | (513) |
Payments/Foreign Currency Exchange | (174) | (129) | (1,969) |
Restructuring Reserve, Ending Balance | 468 | 642 | 855 |
2010 Restructuring Plan [Member] | Other Charges [Member]
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Restructuring Reserve, Beginning Balance | 54 | ||
Provisions/Adjustments | (31) | ||
Payments/Foreign Currency Exchange | (23) | ||
Restructuring Reserve, Ending Balance | 0 | ||
Pre-2010 Plans [Member] | Facilities-Related Charges [Member]
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Restructuring Reserve, Beginning Balance | 1,585 | 2,041 | 1,466 |
Provisions/Adjustments | 0 | 0 | 940 |
Payments/Foreign Currency Exchange | (469) | (456) | (365) |
Restructuring Reserve, Ending Balance | 1,116 | 1,585 | 2,041 |
without_abandonmentcharge [Member]
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Provisions/Adjustments | $ 5,017 |
Income Taxes (Tables)
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Jun. 30, 2013
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Income Tax Expense (Benefit) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Domestic And Foreign Income (Loss) Before Income Taxes |
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Provisions For Income Taxes |
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Consolidated Effective Income Tax Rate Differed From The U.S Federal Statutory Income Tax Rate |
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Components Of Net Deferred Tax Assets |
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Net Deferred Tax Assets And Liabilities Included In The Consolidated Balance Sheets |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrecognized Income Tax Benefits, Excluding Accrued Interest And Penalties |
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Acquisitions (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
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Liquent Acquisition [Member]
|
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Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Purchase Price Allocation [Table Text Block] |
|
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Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] |
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Heron Acquisition [Member]
|
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Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Purchase Price Allocation [Table Text Block] |
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Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] |
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Summary Of Significant Accounting Policies (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
Jun. 30, 2012
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes In Carrying Amount Of Goodwill |
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Intangible Assets |
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Changes In Carrying Amounts Of Intangible Assets |
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Estimated Amortization Expense |
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Summary Of Significant Accounting Policies (Changes In Carrying Amount Of Intangible Assets) (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Carrying amount | $ 70,004 | $ 79,958 |
Amortization | (9,999) | (8,753) |
Effect of changes in rates used for translation | (4,591) | (1,201) |
Carrying amount | 103,514 | 70,004 |
Liquent Acquisition [Member]
|
||
Finite-lived Intangible Assets Acquired | 32,600 | 0 |
Heron Acquisition [Member]
|
||
Finite-lived Intangible Assets Acquired | $ 15,500 | $ 0 |
Stock And Employee Benefit Plans (Tables)
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
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Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Weighted Average Assumptions |
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Schedule Of Recognized Stock-Based Compensation Expense |
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Schedule Of Information Related To Stock Option Activity |
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Schedule Of Stock Option Activity |
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Schedule Of Stock Options Outstanding, Exercisable, And Expected To Vest |
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Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] |
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Schedule Of Purchases Under The 2000 Purchase Plan |
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Geographic Information (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Geographic Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Financial Information By Geographic Area |
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Schedule Of Service Revenue From Countries |
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Acquisitions Net Purchase Price and Preliminary Allocation for Acquisition (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2013
Liquent Acquisition [Member]
|
Jun. 30, 2012
Liquent Acquisition [Member]
|
Dec. 21, 2012
Liquent Acquisition [Member]
|
Jun. 30, 2013
Heron Acquisition [Member]
|
Jun. 30, 2012
Heron Acquisition [Member]
|
May 01, 2013
Heron Acquisition [Member]
|
|
Total consideration transferred: | |||||||
Business Acquisition, Cost of Acquired Entity, Cash Paid | $ 22,750 | ||||||
Business Acquisition, Contingent Consideration, at Fair Value | (5,934) | 5,934 | |||||
Business Acquisition, Cost of Acquired Entity, Purchase Price | 74,349 | 28,684 | |||||
Preliminary allocation of consideration transferred: | |||||||
Accounts receivable | 8,470 | 1,927 | |||||
Other current and non-current assets | 547 | 544 | |||||
Property and equipment | 1,349 | 322 | |||||
Finite-lived Intangible Assets Acquired | 32,600 | 0 | 15,500 | 0 | |||
Goodwill, Acquired During Period | 51,244 | 16,631 | |||||
Total assets acquired | 94,210 | 34,924 | |||||
Current liabilities | 5,330 | 1,539 | |||||
Deferred revenue, current | 2,830 | 1,164 | |||||
Deferred tax liabilities | 11,701 | 3,537 | |||||
Total liabilities assumed | $ 19,861 | $ 6,240 |
Restructuring Charges (Tables)
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
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Restructuring Charges [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Changes In Restructuring Accrual |
|
Stockholders' Equity (Details) (USD $)
In Millions, except Share data, unless otherwise specified |
12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 13 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 13 Months Ended | 12 Months Ended | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Sep. 30, 2012
September 2012 Accelerated Share Repurchase [Member]
|
Mar. 31, 2013
September 2012 Accelerated Share Repurchase [Member]
|
Jun. 30, 2013
September 2012 Accelerated Share Repurchase [Member]
|
Mar. 31, 2013
March 2013 Accelerated Share Repurchase [Member]
|
Sep. 30, 2013
March 2013 Accelerated Share Repurchase [Member]
|
Jun. 30, 2013
March 2013 Accelerated Share Repurchase [Member]
|
Jul. 31, 2013
March 2013 Accelerated Share Repurchase [Member]
|
Jun. 30, 2013
2012StockRepurchasePlan [Member]
|
Jun. 30, 2013
September Open Market Repurchases [Member]
|
Sep. 30, 2013
Open Market Repurchases [Member]
|
Jun. 30, 2013
Open Market Repurchases [Member]
|
Jul. 31, 2013
Open Market Repurchases [Member]
|
Jun. 30, 2013
March Open Market Repurchases [Member]
|
|
Class of Stock [Line Items] | ||||||||||||||
Shares Paid for Tax Withholding for Share Based Compensation | 251,296 | |||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 2.4 | |||||||||||||
Stock repurchase program, authorized value | 200 | |||||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 197.6 | $ 50.0 | $ 50.0 | $ 50.0 | $ 97.6 | $ 100.0 | $ 50.0 | |||||||
Treasury Stock, Shares, Acquired | 1,328,462 | 234,898 | 1,563,360 | 1,044,932 | 101,247 | 1,146,179 | 51,071 | 2,697,675 | 2,748,746 | |||||
Percent of advance payment under accelerated share repurchase agreement | 80.00% | |||||||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 31.98 | $ 38.28 | $ 43.62 | $ 36.17 | $ 36.38 |
Stock And Employee Benefit Plans (Schedule Of Stock Option Activity) (Details) (USD $)
|
12 Months Ended |
---|---|
Jun. 30, 2013
|
|
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
Beginning Balance, Number of Options | 3,758,284 |
Beginning Balance, Weighted-Average Exercise Price | $ 18.55 |
Granted, Number of Options | 926,801 |
Granted, Weighted-Average Exercise Price | $ 32.95 |
Exercised, Number of Options | (1,337,289) |
Exercised, Weighted-Average Exercise Price | $ 16.29 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | (122,899) |
Canceled, Weighted-Average Exercise Price | $ 21.84 |
Ending Balance, Number of Options | 3,224,897 |
Ending Balance, Weighted-Average Exercise Price | $ 23.51 |
Credit Arrangements - Note Purchase Agreement (Details) (USD $)
|
3 Months Ended | 0 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jul. 25, 2013
Subsequent Event [Member]
Senior Notes [Member]
3.11% Senior Notes due in 2020 [Member]
|
Jul. 25, 2013
Revolving Credit Facility [Member]
Subsequent Event [Member]
2013 Credit Agreement [Member]
|
May 31, 2013
Treasury Lock [Member]
agreement
|
May 31, 2013
Treasury Lock 1 [Member]
Treasury Lock [Member]
|
May 31, 2013
Treasury Lock 2 [Member]
Treasury Lock [Member]
|
May 31, 2013
Treasury Lock 3 [Member]
Treasury Lock [Member]
|
|
Debt Instrument [Line Items] | |||||||||
Principal amount of debt | $ 100,000,000.0 | ||||||||
Interest rate | 3.11% | ||||||||
Proceeds from Issuance of Long-term Debt | 107,500,000 | 100,000,000 | |||||||
Repayments of Long-term Lines of Credit | 100,000,000 | ||||||||
Prepayment of aggregate principal amount, minimum percent | 10.00% | ||||||||
Number of treasury lock agreements | 3 | ||||||||
Notional Amount | $ 509,947,000 | $ 319,326,000 | $ 25,000,000 | $ 25,000,000 | $ 25,000,000 |
Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)
|
12 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2010
|
|
Cash and Cash Equivalents, Fair Value Disclosure | $ 81,123,000 | |||
Marketable Securities, Current | 130,137,000 | 0 | ||
Cash and Cash Equivalents, at Carrying Value | 144,027,000 | 213,579,000 | 89,056,000 | 95,170,000 |
Investigator fees | 421,200,000 | 250,800,000 | 185,500,000 | |
Number of counterparties in derivative contracts | 10 | |||
Research and development expense | 23,800,000 | 21,000,000 | 23,000,000 | |
Transaction (losses) gains | 4,100,000 | 300,000 | (10,400,000) | |
Goodwill | 319,478,000 | 255,455,000 | 262,313,000 | |
Prepaid Expense and Other Assets, Current | 10,400,000 | |||
Deferred financing costs reclassified to long-term debt | 3,200,000 | |||
Office Furniture, Fixtures And Equipment [Member]
|
||||
Estimated useful lives, years | P5Y | |||
CRS [Member]
|
||||
Goodwill | 124,600,000 | |||
PCMS [Member]
|
||||
Goodwill | 20,800,000 | |||
Perceptive [Member]
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Goodwill | 174,100,000 | |||
Minimum [Member]
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Marketable Securities Maturity Period | 90 days | |||
Minimum [Member] | Computer Software And Hardware [Member]
|
||||
Estimated useful lives, minimum, years | 3 years | |||
Maximum [Member]
|
||||
Marketable Securities Maturity Period | one year | |||
Maximum [Member] | Computer Software And Hardware [Member]
|
||||
Estimated useful lives, years | P8Y | |||
Sales Revenue, Services, Net [Member]
|
||||
Concentration Risk, Customer | Two | 0 | ||
Accounts Receivable [Member]
|
||||
Concentration Risk, Customer | two | 0 | ||
Customer A [Member] | Sales Revenue, Services, Net [Member]
|
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Percentage of consolidated service revenue attributable to largest client | 17.00% | |||
Customer A [Member] | Accounts Receivable [Member]
|
||||
Percentage of consolidated service revenue attributable to largest client | 18.00% | |||
Customer B [Member] | Sales Revenue, Services, Net [Member]
|
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Percentage of consolidated service revenue attributable to largest client | 12.00% | |||
Customer B [Member] | Accounts Receivable [Member]
|
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Percentage of consolidated service revenue attributable to largest client | 12.00% | |||
Fair Value, Inputs, Level 1 [Member]
|
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Cash and Cash Equivalents, Fair Value Disclosure | $ 0 | $ 81,123,000 |
Stock And Employee Benefit Plans (Schedule Of Weighted Average Assumptions) (Details)
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12 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2011
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Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 56.40% | 56.90% | 55.90% |
Risk-free interest rate | 0.90% | 0.90% | 1.60% |
Expected term (in years) | 5 years 2 months 12 days | 5 years 1 month 6 days | 5 years 1 month 6 days |
Summary Of Significant Accounting Policies (Policy)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis Of Presentation And Principles Of Consolidation | Basis of Presentation and Principles of Consolidation The consolidated financial statements include the accounts of PAREXEL International Corporation, our wholly-owned and majority-owned subsidiaries. All inter-company accounts and transactions have been eliminated. |
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Reclassifications | Reclassification We reclassified $10.4 million of non-current deferred tax assets to current deferred tax assets for the period ended June 30, 2012. This change had no impact on total deferred tax assets. We also reclassified $3.2 million of deferred financing costs from other assets to long-term debt, net of current portion for the period ended June 30, 2012 as a contra-debt balance. We evaluated the quantitative and qualitative aspects of these adjustments and determined the corrections were not material. These reclassifications had no impact on our results of operations or statement of cash flow for the fiscal year ended June 30, 2012. |
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Use Of Estimates | Use of Estimates We prepare our financial statements in conformity with U.S. generally accepted accounting principles which require us to make estimates and assumptions that affect the amounts reported in the financial statements. Estimates are used in accounting for, among other items, revenue recognition, allowance for credit losses on receivables, valuation of derivative instruments, periodic impairment reviews of goodwill and intangible assets, contingent consideration, income taxes, and the valuation of long-term assets. Our estimates are based on the facts and circumstances available at the time estimates are made, historical experience, risk of loss, general economic conditions, trends, and assessments of the probable future outcomes of these matters. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the statement of operations in the period in which they are determined. |
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Fair Values Of Financial Instruments | Fair Values of Financial Instruments The fair value of our cash and cash equivalents, marketable securities, accounts receivable, and accounts payable approximates the carrying value of these financial instruments because of the short-term nature of any maturities. The carrying value of our short-term and long-term debt approximates fair value because all of the debt bears variable rate interest. We determine the estimated fair values of other financial instruments, including equity and risk management instruments, using available market information and valuation methodologies, primarily discounted cash flow analysis or input from independent investment bankers. |
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Revenue Recognition | Revenue Recognition We derive revenue from the delivery of service or software solutions to clients in the worldwide pharmaceutical, biotechnology, and medical device industries. In general, we recognize revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the service offering has been delivered to the client; (3) the collection of fees is probable; and (4) the amount of fees to be paid by the client is fixed or determinable. Revenue recognition treatment of each business segment is described below. Clinical Research Services (“CRS”) and PAREXEL Consulting and MedCom Services (“PCMS”) Service Revenue Service revenues in our CRS and PCMS businesses are derived principally from fee-for-service or fixed-price executory contracts, which typically involve competitive bid awards and multi-year terms. Client billing schedules and payment arrangements are prescribed under negotiated contract terms. Contract provisions do not provide for rights of return or refund, but normally include rights of cancellation with notice, in which case services delivered through the cancellation date are due and payable by the client, including certain costs to conclude the trial or study. Our client arrangements generally involve multiple service deliverables, where bundled service deliverables are accounted for in accordance with Accounting Standards Codification (“ASC”) 605-25, “Multiple-Element Arrangements.” We determined that each of our service deliverables have standalone value. ASC 605-25 requires the allocation of contract (arrangement) value to each separate unit of accounting based on the relative selling price of the various separate units of accounting in the arrangement. ASC 605-25 requires a hierarchy of evidence be followed when determining if evidence of the selling price of an item exists such that the best evidence of selling price of a unit of accounting is vendor-specific objective evidence (VSOE), or the price charged when a deliverable is sold separately. When VSOE is not available to determine selling price, relevant third-party evidence (TPE) of selling price should be used, if available. Lastly, when neither VSOE nor TPE of selling price for similar deliverables exists, management must use its best estimate of selling price considering all relevant information that is available without undue cost and effort. We generally are not able to establish VSOE as our deliverables are seldom sold separately. We have established TPE of selling price for each of our arrangement deliverables based on the price we charge for equivalent services when sold to other similar customers as well as our knowledge of market-pricing from the competitive bidding process for customer contracts offering similar services to comparably situated customers. Consequently, we allocate arrangement consideration at the inception of the arrangement using the relative selling prices of the deliverables within the contract based on TPE. We recognize revenues for the separate elements of our contracts upon delivery of actual units of output and when all other revenue recognition criteria are met. Revenue from fee-for-service contracts generally is recognized as units of output are delivered. Revenue on fixed-price contracts generally is measured by applying a proportional performance model using output units, such as site or investigator recruitment, patient enrollment, data management, or other deliverables common to our CRS business. Performance-based output units are pre-defined in contracts and revenue is recognized based upon actual units of completion. Revenue related to changes in contract scope, which are subject to client approval, is recognized when realization is assured and amounts are fixed or determinable. Perceptive Informatics, Inc. (“Perceptive”) Service Revenue Service revenue is derived principally from the delivery of software solutions through our Perceptive business segment. Software solutions include ClinPhone®RTSM, CTMS, EDC and RIM. Within Perceptive’s Clinphone® RTSM business, we offer selected software solutions through a hosted application delivered through a standard web-browser. We recognize revenue from application hosting services in accordance with ASC 985-605, “Revenue Recognition in the Software Industry” and ASC 605-25 as our customers do not have the right to take possession of the software. Revenue resulting from these hosting services consists of three stages: set-up (client specification and workflow), hosting and support services, and closeout reporting. Fees charged and costs incurred in the set-up stage are deferred until the start of the hosting period and are amortized and recognized ratably over the estimated hosting period, including customary and expected extensions. Deferred costs are direct costs associated with the trial and application setup. These costs include salary and benefits associated with direct labor costs incurred during trial setup, as well as third-party subcontract fees and other contract labor costs. In the event of a contract cancellation by a client, all deferred revenue is recognized and all deferred setup costs are expensed. To the extent that termination-related fees are payable under the contract, such fees are recognized in the period of termination. Perceptive's Medical Imaging business provides a service allowing customers to manage the image acquisitions and the analysis and quality of data obtained during a clinical trial. Service revenue is derived from executory contracts that are tailored to meet individual client requirements. Client billing schedules and payment arrangements are prescribed under negotiated contract terms. We recognize service revenue related to our Medical Imaging business based upon a proportional performance method utilizing a unitized output method. The defined units used for revenue recognition are used to track output measures that are specific to the services being provided in the contract, and may include site survey reports, project management tasks, number of reviews completed, and image receipt and processing |
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Reimbursement Revenue & Investigator Fees | Reimbursement Revenue & Investigator Fees Reimbursable out-of-pocket expenses are reflected in our Consolidated Statements of Income under “Reimbursement revenue” and “Reimbursable out-of-pocket expenses,” as we are the primary obligor for these expenses despite being reimbursed by our clients. In addition, as is customary in our industry, we routinely subcontract on behalf of our clients with independent physician investigators in connection with clinical trials. The related investigator fees are not reflected in our Service revenue, Reimbursement revenue, Reimbursable out-of-pocket expenses, or Direct costs, because these fees are reimbursed by clients on a “pass through basis,” without risk or reward to us. The amounts of these investigator fees were $421.2 million, $250.8 million, and $185.5 million for the fiscal years ended June 30, 2013, 2012, and 2011, respectively. |
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Business Combinations Policy | Business Combinations We account for acquisitions as business combinations in accordance with ASC Topic 805, “Business Combinations.” We allocate the amounts that we pay for each acquisition to the assets we acquire and liabilities we assume based on their fair values at the dates of acquisition, including identifiable intangible assets. We base the fair value of identifiable intangible assets acquired in a business combination on detailed valuations that use information and assumptions determined by management and which consider management's best estimates of inputs and assumptions that a market participant would use. We allocate any excess purchase price over the fair value of the net tangible and identifiable intangible assets acquired to goodwill. |
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Cash And Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments purchased with original maturities of 90 days or less to be cash equivalents. We had no cash equivalents balance as of June 30, 2013. As of June 30, 2012, we had $81.1 million in money-market accounts or other short-term securities that are considered to be cash equivalents. |
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Marketable Securities | Marketable Securities We account for investments in debt and equity securities in accordance with ASC 320, “Investments - Debt and Equity Securities.” As of June 30, 2013, we held $130.1 million marketable securities and we had no marketable securities as of June 30, 2012. |
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Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk Financial instruments that subject us to credit risk primarily consist of cash and cash equivalents, marketable securities, derivative financial instrument contracts, and accounts receivable. We maintain our cash and cash equivalent balances with high-quality financial institutions and, consequently, we believe that such funds are subject to minimal credit risk. Our marketable securities primarily consist of foreign government treasury certificates. We require all investments held by us be at least AAA+ rated and government treasury certificates, thereby reducing credit risk exposure. We have approximately ten different counterparties in our derivative contracts, which include interest rate swaps, an interest rate cap and foreign currency hedges. Each of these counterparties is in the financial services industry and is subject to the credit risks inherent to that industry. We perform ongoing credit evaluations of these counterparties. We perform ongoing credit evaluations related to the financial condition of our clients and, generally, do not require collateral. As of June 30, 2013, two clients individually accounted for 18% and 12% of our total billed and unbilled accounts receivables. As of June 30, 2012, no single client accounted for 10% or more of our billed and unbilled accounts receivables. Two clients individually accounted for 17% and 12% of our consolidated service revenue in Fiscal Year 2013. No single client accounted for 10% or more of our consolidated service revenue in Fiscal Year 2012 or Fiscal Year 2011. |
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Billed Accounts Receivable, Unbilled Accounts Receivable And Deferred Revenue | Billed Accounts Receivable, Unbilled Accounts Receivable and Deferred Revenue Billed accounts receivable represent amounts for which invoices have been sent to clients based on contract terms. Unbilled accounts receivable represent amounts recognized as revenue for which invoices have not yet been sent to clients due to contract terms. Deferred revenue represents amounts billed based on contractual provisions or payments received for which revenue has not yet been earned. We maintain a provision for losses on receivables based on historical collectability and specific identification of potential problem accounts. Uncollectible invoices are written off when collection efforts have been exhausted. |
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Property And Equipment | Property and Equipment Property and equipment is stated at cost. Depreciation is provided using the straight-line method based on estimated useful lives of 3 to 8 years for computer software and hardware, and 5 years for office furniture, fixtures and equipment. Leasehold improvements are amortized over the lesser of the estimated useful lives of the improvements or the remaining lease term, which include lease extensions when reasonably assured. Repair and maintenance costs are expensed as incurred. |
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Development Of Software For Internal Use | Development of Software for Internal Use PAREXEL accounts for the costs of software developed or obtained for internal use in accordance with ASC 350-40, “Internal-Use Software.” We capitalize costs of materials, consultants, payroll, and payroll-related costs for employees incurred in developing internal-use software. These costs are included in computer software in Note 6 below. Costs incurred during the preliminary project and post-implementation stages are charged to expense. |
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Research And Development Costs | Research and Development Costs We incur ongoing research and development costs related to core technologies used internally as well as software and technology sold externally. Unless eligible for capitalization, these costs are expensed as incurred. Research and development expense was $23.8 million, $21.0 million, and $23.0 million in Fiscal Years 2013, 2012, and 2011, respectively, and is included in selling, general and administrative expenses in the consolidated statements of income. |
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Goodwill | Goodwill PAREXEL follows the provisions of ASC 350, “Intangibles—Goodwill and Other.” Under this statement, goodwill as well as certain other intangible assets, determined to have an indefinite life, are not amortized. Instead, these assets are evaluated for impairment at least annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. For Fiscal Years 2013 and 2012, we performed the intangibles impairment testing in accordance with the guidance of Accounting Standards Update (“ASU”) 2011-08, “Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment,” and conducted an assessment of qualitative factors. We concluded that it was not more likely than not the fair value of a reporting unit was less than its carrying amount, including goodwill as of June 30, 2013 and 2012. There was no evidence of impairment of our goodwill balances as of June 30, 2013 or 2012. The changes in the carrying amount of goodwill for Fiscal Years 2013 and 2012 were as follows:
As of June 30, 2013, the carrying value of our goodwill by reportable segment was $124.6 million in CRS, $20.8 million in PCMS, and $174.1 million in Perceptive. |
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Long-lived Assets and Other Intangible Assets | Long-lived Assets and Other Intangible Assets Long-lived assets, including fixed assets and intangible assets which have a definitive life, are reviewed for impairment when circumstances indicate that the carrying amount of assets might not be recoverable. Indefinite-lived assets are reviewed annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value below the carrying value of the asset. In July 2012, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2012-02, “Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment.” ASU 2012-02 amends Topic 350 to allow a company to first assess qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying value. A company is not required to determine the fair value of the indefinite-lived intangible asset unless the entity determines, based on the qualitative assessment, that it is more likely than not that its fair value is less than the carrying value. ASU 2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012 and early adoption is permitted. For Fiscal 2013, we adopted the guidance of ASU 2012-02, conducted an assessment of qualitative factors and concluded that it was not more likely than not that the fair value of our indefinite-lived intangible assets was less than its carrying amount. For Fiscal 2012, we performed a quantitative impairment test, which involves various analyses, including undiscounted cash flow projections and a royalty-relief methodology. In the event undiscounted cash flow projections indicate impairment, we would record an impairment based on the fair value of the assets at the date of the impairment. There was no evidence of impairment of our indefinite-lived intangible asset balances as of June 30, 2013 or 2012. As of June 30, 2013, intangible assets consisted of the following:
As of June 30, 2012, intangible assets consisted of the following:
The changes in the carrying amounts of other intangible assets for Fiscal Years 2013 and 2012 were as follows:
Estimated amortization expense for the next five years is as follows:
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Income Taxes | Income Taxes Deferred tax assets and liabilities are recorded for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred tax assets are recognized for the estimated future tax benefits of deductible temporary differences and tax operating loss and credit carryforwards and are presented net of valuation allowances. Valuation allowances are established in jurisdictions where it is more likely than not that the benefits of the associated deferred tax assets will not be realized. Deferred income tax expense represents the change in the net deferred tax asset and liability balances. Interest and penalties are recognized as a component of income tax expense |
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Foreign Currency | Foreign Currency Assets and liabilities of PAREXEL’s international operations are translated into U.S. dollars at exchange rates that are in effect on the balance sheet date and equity accounts are translated at historical exchange rates. Income and expense items are translated at average exchange rates in effect during the year. Translation adjustments are accumulated in other comprehensive income (loss) as a separate component of stockholders’ equity in the consolidated balance sheet. Transaction gains and losses are included in miscellaneous expense, net in the consolidated statements of operations. Transaction gains (losses) were $4.1 million, $0.3 million, and $(10.4) million in Fiscal Years 2013, 2012, and 2011, respectively. |
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Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares plus the dilutive effect of outstanding stock options. We do not have any participating securities outstanding nor do we have more than one class of common stock. |
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New Accounting Pronouncements, Policy | Recently Issued Accounting Standards In December 2011, the FASB issued ASU No. 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.” ASU 2011-11 requires a company to disclose information about offsetting and related arrangements to enable readers of its financial statements to understand the effects of those arrangements on its financial position. ASU 2011-11 is effective for fiscal years beginning after January 1, 2013. In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” ASU 2013-01 was issued to limit the scope of ASU 2011-11 to derivatives (including bifurcated embedded derivatives), repurchase and reverse repurchase arrangements, and securities borrowing and lending transactions. The disclosures are effective for annual periods beginning on or after January 1, 2013 and interim periods within those annual periods. Entities should provide the disclosures required by this ASU retrospectively for all comparative periods presented. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In February 2013, the FASB issued ASU No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” ASU 2013-02 requires reporting and disclosure about changes in accumulated other comprehensive income (AOCI) balances and reclassifications out of AOCI. ASU 2013-02 is effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2012 and early adoption is permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In March 2013, the FASB issued ASU No. 2013-05, “Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” ASU 2013-05 addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. ASU 2013-05 is effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2013 and early adoption is permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. |
Summary Of Significant Accounting Policies
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The consolidated financial statements include the accounts of PAREXEL International Corporation, our wholly-owned and majority-owned subsidiaries. All inter-company accounts and transactions have been eliminated. Reclassification We reclassified $10.4 million of non-current deferred tax assets to current deferred tax assets for the period ended June 30, 2012. This change had no impact on total deferred tax assets. We also reclassified $3.2 million of deferred financing costs from other assets to long-term debt, net of current portion for the period ended June 30, 2012 as a contra-debt balance. We evaluated the quantitative and qualitative aspects of these adjustments and determined the corrections were not material. These reclassifications had no impact on our results of operations or statement of cash flow for the fiscal year ended June 30, 2012. Use of Estimates We prepare our financial statements in conformity with U.S. generally accepted accounting principles which require us to make estimates and assumptions that affect the amounts reported in the financial statements. Estimates are used in accounting for, among other items, revenue recognition, allowance for credit losses on receivables, valuation of derivative instruments, periodic impairment reviews of goodwill and intangible assets, contingent consideration, income taxes, and the valuation of long-term assets. Our estimates are based on the facts and circumstances available at the time estimates are made, historical experience, risk of loss, general economic conditions, trends, and assessments of the probable future outcomes of these matters. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the statement of operations in the period in which they are determined. Fair Values of Financial Instruments The fair value of our cash and cash equivalents, marketable securities, accounts receivable, and accounts payable approximates the carrying value of these financial instruments because of the short-term nature of any maturities. The carrying value of our short-term and long-term debt approximates fair value because all of the debt bears variable rate interest. We determine the estimated fair values of other financial instruments, including equity and risk management instruments, using available market information and valuation methodologies, primarily discounted cash flow analysis or input from independent investment bankers. Revenue Recognition We derive revenue from the delivery of service or software solutions to clients in the worldwide pharmaceutical, biotechnology, and medical device industries. In general, we recognize revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the service offering has been delivered to the client; (3) the collection of fees is probable; and (4) the amount of fees to be paid by the client is fixed or determinable. Revenue recognition treatment of each business segment is described below. Clinical Research Services (“CRS”) and PAREXEL Consulting and MedCom Services (“PCMS”) Service Revenue Service revenues in our CRS and PCMS businesses are derived principally from fee-for-service or fixed-price executory contracts, which typically involve competitive bid awards and multi-year terms. Client billing schedules and payment arrangements are prescribed under negotiated contract terms. Contract provisions do not provide for rights of return or refund, but normally include rights of cancellation with notice, in which case services delivered through the cancellation date are due and payable by the client, including certain costs to conclude the trial or study. Our client arrangements generally involve multiple service deliverables, where bundled service deliverables are accounted for in accordance with Accounting Standards Codification (“ASC”) 605-25, “Multiple-Element Arrangements.” We determined that each of our service deliverables have standalone value. ASC 605-25 requires the allocation of contract (arrangement) value to each separate unit of accounting based on the relative selling price of the various separate units of accounting in the arrangement. ASC 605-25 requires a hierarchy of evidence be followed when determining if evidence of the selling price of an item exists such that the best evidence of selling price of a unit of accounting is vendor-specific objective evidence (VSOE), or the price charged when a deliverable is sold separately. When VSOE is not available to determine selling price, relevant third-party evidence (TPE) of selling price should be used, if available. Lastly, when neither VSOE nor TPE of selling price for similar deliverables exists, management must use its best estimate of selling price considering all relevant information that is available without undue cost and effort. We generally are not able to establish VSOE as our deliverables are seldom sold separately. We have established TPE of selling price for each of our arrangement deliverables based on the price we charge for equivalent services when sold to other similar customers as well as our knowledge of market-pricing from the competitive bidding process for customer contracts offering similar services to comparably situated customers. Consequently, we allocate arrangement consideration at the inception of the arrangement using the relative selling prices of the deliverables within the contract based on TPE. We recognize revenues for the separate elements of our contracts upon delivery of actual units of output and when all other revenue recognition criteria are met. Revenue from fee-for-service contracts generally is recognized as units of output are delivered. Revenue on fixed-price contracts generally is measured by applying a proportional performance model using output units, such as site or investigator recruitment, patient enrollment, data management, or other deliverables common to our CRS business. Performance-based output units are pre-defined in contracts and revenue is recognized based upon actual units of completion. Revenue related to changes in contract scope, which are subject to client approval, is recognized when realization is assured and amounts are fixed or determinable. Perceptive Informatics, Inc. (“Perceptive”) Service Revenue Service revenue is derived principally from the delivery of software solutions through our Perceptive business segment. Software solutions include ClinPhone®RTSM, CTMS, EDC and RIM. Within Perceptive’s Clinphone® RTSM business, we offer selected software solutions through a hosted application delivered through a standard web-browser. We recognize revenue from application hosting services in accordance with ASC 985-605, “Revenue Recognition in the Software Industry” and ASC 605-25 as our customers do not have the right to take possession of the software. Revenue resulting from these hosting services consists of three stages: set-up (client specification and workflow), hosting and support services, and closeout reporting. Fees charged and costs incurred in the set-up stage are deferred until the start of the hosting period and are amortized and recognized ratably over the estimated hosting period, including customary and expected extensions. Deferred costs are direct costs associated with the trial and application setup. These costs include salary and benefits associated with direct labor costs incurred during trial setup, as well as third-party subcontract fees and other contract labor costs. In the event of a contract cancellation by a client, all deferred revenue is recognized and all deferred setup costs are expensed. To the extent that termination-related fees are payable under the contract, such fees are recognized in the period of termination. Perceptive's Medical Imaging business provides a service allowing customers to manage the image acquisitions and the analysis and quality of data obtained during a clinical trial. Service revenue is derived from executory contracts that are tailored to meet individual client requirements. Client billing schedules and payment arrangements are prescribed under negotiated contract terms. We recognize service revenue related to our Medical Imaging business based upon a proportional performance method utilizing a unitized output method. The defined units used for revenue recognition are used to track output measures that are specific to the services being provided in the contract, and may include site survey reports, project management tasks, number of reviews completed, and image receipt and processing. Reimbursement Revenue & Investigator Fees Reimbursable out-of-pocket expenses are reflected in our Consolidated Statements of Income under “Reimbursement revenue” and “Reimbursable out-of-pocket expenses,” as we are the primary obligor for these expenses despite being reimbursed by our clients. In addition, as is customary in our industry, we routinely subcontract on behalf of our clients with independent physician investigators in connection with clinical trials. The related investigator fees are not reflected in our Service revenue, Reimbursement revenue, Reimbursable out-of-pocket expenses, or Direct costs, because these fees are reimbursed by clients on a “pass through basis,” without risk or reward to us. The amounts of these investigator fees were $421.2 million, $250.8 million, and $185.5 million for the fiscal years ended June 30, 2013, 2012, and 2011, respectively. Business Combinations We account for acquisitions as business combinations in accordance with ASC Topic 805, “Business Combinations.” We allocate the amounts that we pay for each acquisition to the assets we acquire and liabilities we assume based on their fair values at the dates of acquisition, including identifiable intangible assets. We base the fair value of identifiable intangible assets acquired in a business combination on detailed valuations that use information and assumptions determined by management and which consider management's best estimates of inputs and assumptions that a market participant would use. We allocate any excess purchase price over the fair value of the net tangible and identifiable intangible assets acquired to goodwill. Cash and Cash Equivalents We consider all highly liquid investments purchased with original maturities of 90 days or less to be cash equivalents. We had no cash equivalents balance as of June 30, 2013. As of June 30, 2012, we had $81.1 million in money-market accounts or other short-term securities that are considered to be cash equivalents. Marketable Securities We account for investments in debt and equity securities in accordance with ASC 320, “Investments - Debt and Equity Securities.” As of June 30, 2013, we held $130.1 million marketable securities and we had no marketable securities as of June 30, 2012. Marketable securities are held in foreign government treasury certificates that are actively traded and have original maturities over 90 days but less than one year. Our foreign government treasury certificates securities of $130.1 million are classified as held-to-maturity based on our intent and ability to hold the securities to maturity and are recorded at amortized cost, which is not materially different than fair value. Interest and dividends related to these securities are reported as a component of interest income in our consolidated statements of income. Concentration of Credit Risk Financial instruments that subject us to credit risk primarily consist of cash and cash equivalents, marketable securities, derivative financial instrument contracts, and accounts receivable. We maintain our cash and cash equivalent balances with high-quality financial institutions and, consequently, we believe that such funds are subject to minimal credit risk. Our marketable securities primarily consist of foreign government treasury certificates. We require all investments held by us be at least AAA+ rated and government treasury certificates, thereby reducing credit risk exposure. We have approximately ten different counterparties in our derivative contracts, which include interest rate swaps, an interest rate cap and foreign currency hedges. Each of these counterparties is in the financial services industry and is subject to the credit risks inherent to that industry. We perform ongoing credit evaluations of these counterparties. We perform ongoing credit evaluations related to the financial condition of our clients and, generally, do not require collateral. As of June 30, 2013, two clients individually accounted for 18% and 12% of our total billed and unbilled accounts receivables. As of June 30, 2012, no single client accounted for 10% or more of our billed and unbilled accounts receivables. Two clients individually accounted for 17% and 12% of our consolidated service revenue in Fiscal Year 2013. No single client accounted for 10% or more of our consolidated service revenue in Fiscal Year 2012 or Fiscal Year 2011. Billed Accounts Receivable, Unbilled Accounts Receivable and Deferred Revenue Billed accounts receivable represent amounts for which invoices have been sent to clients based on contract terms. Unbilled accounts receivable represent amounts recognized as revenue for which invoices have not yet been sent to clients due to contract terms. Deferred revenue represents amounts billed based on contractual provisions or payments received for which revenue has not yet been earned. We maintain a provision for losses on receivables based on historical collectability and specific identification of potential problem accounts. Uncollectible invoices are written off when collection efforts have been exhausted. Property and Equipment Property and equipment is stated at cost. Depreciation is provided using the straight-line method based on estimated useful lives of 3 to 8 years for computer software and hardware, and 5 years for office furniture, fixtures and equipment. Leasehold improvements are amortized over the lesser of the estimated useful lives of the improvements or the remaining lease term, which include lease extensions when reasonably assured. Repair and maintenance costs are expensed as incurred. Development of Software for Internal Use PAREXEL accounts for the costs of software developed or obtained for internal use in accordance with ASC 350-40, “Internal-Use Software.” We capitalize costs of materials, consultants, payroll, and payroll-related costs for employees incurred in developing internal-use software. These costs are included in computer software in Note 6 below. Costs incurred during the preliminary project and post-implementation stages are charged to expense. Research and Development Costs We incur ongoing research and development costs related to core technologies used internally as well as software and technology sold externally. Unless eligible for capitalization, these costs are expensed as incurred. Research and development expense was $23.8 million, $21.0 million, and $23.0 million in Fiscal Years 2013, 2012, and 2011, respectively, and is included in selling, general and administrative expenses in the consolidated statements of income. Goodwill PAREXEL follows the provisions of ASC 350, “Intangibles—Goodwill and Other.” Under this statement, goodwill as well as certain other intangible assets, determined to have an indefinite life, are not amortized. Instead, these assets are evaluated for impairment at least annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. For Fiscal Years 2013 and 2012, we performed the intangibles impairment testing in accordance with the guidance of Accounting Standards Update (“ASU”) 2011-08, “Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment,” and conducted an assessment of qualitative factors. We concluded that it was not more likely than not the fair value of a reporting unit was less than its carrying amount, including goodwill as of June 30, 2013 and 2012. There was no evidence of impairment of our goodwill balances as of June 30, 2013 or 2012. The changes in the carrying amount of goodwill for Fiscal Years 2013 and 2012 were as follows:
As of June 30, 2013, the carrying value of our goodwill by reportable segment was $124.6 million in CRS, $20.8 million in PCMS, and $174.1 million in Perceptive. Long-lived Assets and Other Intangible Assets Long-lived assets, including fixed assets and intangible assets which have a definitive life, are reviewed for impairment when circumstances indicate that the carrying amount of assets might not be recoverable. Indefinite-lived assets are reviewed annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value below the carrying value of the asset. In July 2012, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2012-02, “Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment.” ASU 2012-02 amends Topic 350 to allow a company to first assess qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying value. A company is not required to determine the fair value of the indefinite-lived intangible asset unless the entity determines, based on the qualitative assessment, that it is more likely than not that its fair value is less than the carrying value. ASU 2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012 and early adoption is permitted. For Fiscal 2013, we adopted the guidance of ASU 2012-02, conducted an assessment of qualitative factors and concluded that it was not more likely than not that the fair value of our indefinite-lived intangible assets was less than its carrying amount. For Fiscal 2012, we performed a quantitative impairment test, which involves various analyses, including undiscounted cash flow projections and a royalty-relief methodology. In the event undiscounted cash flow projections indicate impairment, we would record an impairment based on the fair value of the assets at the date of the impairment. There was no evidence of impairment of our indefinite-lived intangible asset balances as of June 30, 2013 or 2012. As of June 30, 2013, intangible assets consisted of the following:
As of June 30, 2012, intangible assets consisted of the following:
The changes in the carrying amounts of other intangible assets for Fiscal Years 2013 and 2012 were as follows:
Estimated amortization expense for the next five years is as follows:
Income Taxes Deferred tax assets and liabilities are recorded for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred tax assets are recognized for the estimated future tax benefits of deductible temporary differences and tax operating loss and credit carryforwards and are presented net of valuation allowances. Valuation allowances are established in jurisdictions where it is more likely than not that the benefits of the associated deferred tax assets will not be realized. Deferred income tax expense represents the change in the net deferred tax asset and liability balances. Interest and penalties are recognized as a component of income tax expense Foreign Currency Assets and liabilities of PAREXEL’s international operations are translated into U.S. dollars at exchange rates that are in effect on the balance sheet date and equity accounts are translated at historical exchange rates. Income and expense items are translated at average exchange rates in effect during the year. Translation adjustments are accumulated in other comprehensive income (loss) as a separate component of stockholders’ equity in the consolidated balance sheet. Transaction gains and losses are included in miscellaneous expense, net in the consolidated statements of operations. Transaction gains (losses) were $4.1 million, $0.3 million, and $(10.4) million in Fiscal Years 2013, 2012, and 2011, respectively. Earnings Per Share Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares plus the dilutive effect of outstanding stock options. We do not have any participating securities outstanding nor do we have more than one class of common stock. Recently Issued Accounting Standards In December 2011, the FASB issued ASU No. 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.” ASU 2011-11 requires a company to disclose information about offsetting and related arrangements to enable readers of its financial statements to understand the effects of those arrangements on its financial position. ASU 2011-11 is effective for fiscal years beginning after January 1, 2013. In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” ASU 2013-01 was issued to limit the scope of ASU 2011-11 to derivatives (including bifurcated embedded derivatives), repurchase and reverse repurchase arrangements, and securities borrowing and lending transactions. The disclosures are effective for annual periods beginning on or after January 1, 2013 and interim periods within those annual periods. Entities should provide the disclosures required by this ASU retrospectively for all comparative periods presented. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In February 2013, the FASB issued ASU No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” ASU 2013-02 requires reporting and disclosure about changes in accumulated other comprehensive income (AOCI) balances and reclassifications out of AOCI. ASU 2013-02 is effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2012 and early adoption is permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In March 2013, the FASB issued ASU No. 2013-05, “Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” ASU 2013-05 addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. ASU 2013-05 is effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2013 and early adoption is permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. |
Billed And Unbilled Accounts Receivable
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Accounts Receivable, Net [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Billed And Unbilled Accounts Receivable | BILLED AND UNBILLED ACCOUNTS RECEIVABLE Accounts receivable at June 30, 2013 and June 30, 2012 consisted of the following:
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Acquisitions (Notes)
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Business Combination [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination Disclosure [Text Block] | ACQUISITIONS Our condensed consolidated financial statements include the operating results of acquired entities from their respective dates of acquisition. Transaction costs totaling $1.2 million associated with the acquisitions of LIQUENT, Inc. (“LIQUENT”) and HERON Group LTD ("HERON") acquisitions for the year ended June 30, 2013 were recognized as incurred and included in selling, general and administrative expenses in our consolidated statements of income. LIQUENT ACQUISITION On December 21, 2012, we acquired all of the outstanding equity securities of LIQUENT, a leading global provider of Regulatory Information Management (“RIM”) solutions for total cash consideration of approximately $74.3 million. By combining LIQUENT with our Perceptive segment, we believe that we have strengthened our regulatory capabilities by adding a regulatory information technology platform and provide our clients access to comprehensive regulatory agency submission planning, viewing, tracking, publishing, and registration management throughout the entire product lifecycle of a life sciences entity. We expect the acquisition also will benefit our PCMS business, where we can leverage LIQUENT’s significant expertise in regulatory information management outsourcing. The acquisition was initially funded through a new $100.0 million unsecured term loan agreement (the “2012 Term Loan”) with Bank of America, N.A. (defined as “Bank of America” in Note 8) (see Note 8). The components of the consideration transferred in conjunction with the LIQUENT acquisition and the preliminary allocation of that consideration is as follows (in thousands):
The amounts above related to accounting for income taxes represent the preliminary fair value estimates as of June 30, 2013 and each is subject to subsequent adjustment as we obtain additional information during the measurement period and finalize our fair value estimates. We expect to complete our accounting for the LIQUENT acquisition in our fiscal quarter ending December 31, 2013. The goodwill of $51.2 million arising from the LIQUENT acquisition largely reflects the expected synergies and expansion of our service offerings across products and markets complementary to our existing service offering and markets. The goodwill recorded is included in our Perceptive segment and is non-deductible for tax purposes. The following are the identifiable intangible assets acquired and their respective estimated useful lives, as determined based on valuations (dollar amounts in thousands):
HERON ACQUISITION On April 30, 2013, we acquired all of the outstanding equity securities of HERON, a life sciences consultancy which provides evidence-based commercialization services to support biopharmaceutical companies throughout the lifecycle of their products. The net purchase price was approximately $22.8 million, plus the potential for us to pay up to an additional $14.2 million over a twenty-six month period if specific financial targets for HERON are achieved. We determined the fair value of the contingent consideration as part of the HERON acquisition based on the probability of HERON attaining the specified financial targets and assigned a fair value of $5.9 million to the liability. The acquisition was funded through use of existing cash. HERON's results of operations are included in our PCMS segment. The components of the net purchase price in conjunction with the HERON acquisition and the preliminary allocation of that consideration is as follows (in thousands):
The amounts above represent the preliminary fair value estimates as of June 30, 2013 and each is subject to subsequent adjustment as we obtain additional information during the measurement period to finalize our fair value estimates for assets acquired, liabilities assumed, and our accounting for income taxes. We expect to complete our accounting for the HERON acquisition in our fiscal quarter ending March 31, 2014. The goodwill of $16.6 million arising from the HERON acquisition largely reflects the expected synergies and expansion of our service offerings across products and markets complementary to our existing service offering and markets. The goodwill recorded is included in our PCMS segment and is non-deductible for tax purposes. The following are the preliminary identifiable intangible assets acquired and their respective estimated useful lives, as determined based on preliminary valuations (dollar amounts in thousands):
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Segment Information (Tables)
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Service Revenue And Gross Profit On Service Revenue Of Reportable Segment |
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Derivatives (Tables)
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Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts and Fair Values of Derivatives [Table Text Block] |
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Schedule Of Change In Fair Value Derivatives Designated As Hedging Instruments |
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Schedule Of Change In Fair Value Derivatives Not Designated As Hedging Instruments |
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Earnings Per Share (Tables)
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Basic And Diluted Earnings Per Share |
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Stock And Employee Benefit Plans (Schedule Of Information Related To Stock Option Activity) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
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Jun. 30, 2012
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Jun. 30, 2011
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Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||
Weighted-average fair value of options granted per share | $ 16.20 | $ 10.07 | $ 10.81 |
Intrinsic value of options exercised | $ 24,872 | $ 11,170 | $ 5,246 |
Fair Value Measurements Fair Value, Liabilities Measured on Recurring Basis (Tables)
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] |
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Stock And Employee Benefit Plans (Schedule Of Recognized Stock-Based Compensation Expense) (Details) (USD $)
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Jun. 30, 2012
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Jun. 30, 2011
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Total stock-based compensation | $ 11,168 | $ 11,131 | $ 10,162 |
Direct Costs Related [Member]
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Total stock-based compensation | 1,918 | 1,815 | 1,582 |
Selling, General And Administrative Related [Member]
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Total stock-based compensation | $ 9,250 | $ 9,316 | $ 8,580 |
Property And Equipment (Schedule Of Property And Equipment) (Details) (USD $)
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2011
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Property, Plant and Equipment [Abstract] | |||
Computer software | $ 282,681,000 | $ 235,922,000 | |
Computer and office equipment | 94,932,000 | 84,831,000 | |
Leasehold improvements | 87,982,000 | 85,928,000 | |
Medical equipment | 16,337,000 | 18,122,000 | |
Furniture and fixtures | 26,370,000 | 26,066,000 | |
Buildings | 31,000 | 3,585,000 | |
Office equipment & other assets | 19,193,000 | 17,496,000 | |
Total | 527,526,000 | 471,950,000 | |
Less: accumulated depreciation | (303,301,000) | (264,172,000) | |
Total | 224,225,000 | 207,778,000 | |
Retired fully- depreciated assets | 13,000,000 | 35,800,000 | 900,000 |
Asset Impairment Charges | 1,100,000 | 300,000 | 4,300,000 |
Impairment loss due to change in fair value of property | 1,200,000 | ||
Impairment of Long-Lived Assets Held-for-use | $ 3,100,000 |