10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2015

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number: 000-21244

PAREXEL INTERNATIONAL CORPORATION

(Exact name of registrant as specified in its charter)

Massachusetts	04-2776269
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
195 West Street Waltham, Massachusetts	02451
(Address of principal executive offices)	(Zip Code)

(781) 487-9900

Registrant’s telephone number, including area code

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	ý	Accelerated Filer	¨
Non-accelerated Filer	¨  (Do not check if a smaller reporting company)	Smaller Reporting Company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: As of October 30, 2015, there were 53,238,556 shares of common stock outstanding.

PAREXEL INTERNATIONAL CORPORATION

INDEX

Part I. Financial Information	2
Item 1. Financial Statements	2
Condensed Consolidated Balance Sheets (Unaudited): September 30, 2015 and June 30, 2015	2
Condensed Consolidated Statements Of Income and Comprehensive Income (Unaudited): Three Months Ended September 30, 2015 and 2014	3
Condensed Consolidated Statements Of Cash Flows (Unaudited): Three Months Ended September 30, 2015 and 2014	4
Notes To Condensed Consolidated Financial Statements (Unaudited)	5
Item 2. Management’s Discussion And Analysis Of Financial Condition And Results Of Operations	17
Item 3. Quantitative And Qualitative Disclosures About Market Risk	26
Item 4. Controls And Procedures	27
Part II. Other Information	28
Item 1. Legal Proceedings	28
Item 1A. Risk Factors	28
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 5. Other Information	28
Item 6. Exhibits	28
Signatures	29
Exhibit Index	30

1

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

PAREXEL INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in millions)

	September 30, 2015			June 30, 2015
ASSETS
Current assets:
Cash and cash equivalents	$	157.9		$	207.4
Billed accounts receivable, net	428.1			460.6
Unbilled accounts receivable, net	284.0			262.2
Prepaid expenses	29.8			15.6
Deferred tax assets	56.7			59.1
Income taxes receivable	7.3			12.8
Other current assets	41.4			44.4
Total current assets	1,005.2			1,062.1
Property and equipment, net	245.3			241.2
Goodwill	346.9			354.9
Other intangible assets, net	135.1			142.1
Non-current deferred tax assets	14.9			11.7
Long-term income taxes receivable	10.7			11.1
Other assets	42.0			41.9
Total assets	$	1,800.1		$	1,865.0
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Notes payable and current portion of long-term debt	$	12.8		$	8.9
Accounts payable	56.5			81.2
Deferred revenue	367.6			371.8
Accrued expenses	29.7			33.4
Accrued restructuring charges, current portion	32.7			20.2
Accrued employee benefits and withholdings	161.0			152.7
Current deferred tax liabilities	9.0			10.0
Income taxes payable	13.7			13.1
Other current liabilities	20.5			18.2
Total current liabilities	703.5			709.5
Long-term debt, net of current portion	470.2			345.4
Non-current deferred tax liabilities	26.3			33.0
Long-term income tax liabilities	32.8			27.1
Long-term deferred revenue	43.9			42.2
Other liabilities	43.8			42.5
Total liabilities	1,320.5			1,199.7
Stockholders’ equity:
Preferred stock	—			—
Common stock	0.5			0.6
Additional paid-in capital	—			37.7
Retained earnings	592.2			722.9
Accumulated other comprehensive (loss) income	(113.1		)	(95.9		)
Total stockholders’ equity	479.6			665.3
Total liabilities and stockholders’ equity	$	1,800.1		$	1,865.0

The accompanying notes are an integral part of the condensed consolidated financial statements.

2

PAREXEL INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(UNAUDITED)

(in millions, except per share data)

	Three Months Ended
	September 30, 2015			September 30, 2014
Service revenue	$	512.1		$	491.7
Reimbursement revenue	73.1			82.0
Total revenue	585.2			573.7
Direct costs	343.2			318.8
Reimbursable out-of-pocket expenses	73.1			82.0
Selling, general and administrative	94.9			99.0
Depreciation	18.0			16.9
Amortization	5.7			3.5
Restructuring charge (benefit)	14.8			(0.1		)
Total costs and expenses	549.7			520.1
Income from operations	35.5			53.6
Interest expense, net	(1.6		)	(1.7		)
Miscellaneous income, net	1.8			3.3
Total other income	0.2			1.6
Income before income taxes	35.7			55.2
Provision for income taxes	10.8			18.1
Net income	$	24.9		$	37.1
Earnings per common share
Basic	$	0.45		$	0.68
Diluted	$	0.45		$	0.67
Shares used in computing earnings per common share
Basic	55.0			54.7
Diluted	55.9			55.8
Comprehensive income
Net income	$	24.9		$	37.1
Unrealized loss on derivative instruments, net of taxes	(2.2		)	(7.2		)
Foreign currency translation adjustment	(15.0		)	(38.2		)
Total comprehensive income (loss)	$	7.7		$	(8.3	)

The accompanying notes are an integral part of the condensed consolidated financial statements.

3

PAREXEL INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in millions)

	Three Months Ended
	September 30, 2015			September 30, 2014
Cash flow from operating activities:
Net income	$	24.9		$	37.1
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	23.7			20.4
Stock-based compensation	5.1			4.1
Excess tax benefit from stock-based compensation	(1.5		)	(2.7		)
Deferred income taxes	(7.5		)	(7.4		)
Other non-cash items	6.3			(0.2		)
Changes in operating assets and liabilities, net of effects from acquisitions	3.2			(32.4		)
Net cash provided by operating activities	54.2			18.9
Cash flow from investing activities:
Acquisition of businesses, net of cash acquired	—			(1.6		)
Proceeds from sale and maturity of marketable securities	—			88.5
Purchase of property and equipment	(30.9		)	(12.1		)
Net cash (used in) provided by investing activities	(30.9		)	74.8
Cash flow from financing activities:
Proceeds from issuance of common stock, net	3.7			0.1
Excess tax benefit from stock-based compensation	1.5			2.8
Payments for share repurchase	(200.0		)	—
Borrowings under credit agreement/facility	280.0			107.5
Repayments under credit agreement/facility and other debt	(151.4		)	(87.5		)
Net cash (used in) provided by financing activities	(66.2		)	22.9
Effect of exchange rate changes on cash and cash equivalents	(6.6		)	(23.4		)
Net (decrease) increase in cash and cash equivalents	(49.5		)	93.2
Cash and cash equivalents at beginning of period	207.4			188.2
Cash and cash equivalents at end of period	$	157.9		$	281.4
Supplemental disclosures of cash flow information
Non-cash capital expenditures	$	6.9		$	—
Cash paid during the period for:
Interest	$	3.5		$	3.5
Income taxes, net of refunds	$	4.3		$	35.3

The accompanying notes are an integral part of the condensed consolidated financial statements.

4

PAREXEL INTERNATIONAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1. – BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of PAREXEL International Corporation (“PAREXEL,” the “Company,” “we,” “our” or “us”) have been prepared in accordance with generally accepted accounting principles ("GAAP") for interim financial information in the United States and the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (primarily consisting of normal recurring adjustments) considered necessary for a fair presentation of the Company’s financial position as of September 30, 2015, results of operations for the three months ended September 30, 2015 and 2014 have been included. Operating results for the three months ended September 30, 2015 are not necessarily indicative of the results that may be expected for other quarters or the entire fiscal year. For further information, refer to the audited consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2015 (the “2015 10-K”) filed with the Securities and Exchange Commission on August 25, 2015.

Recently Issued Accounting Standards

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which stipulates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. As originally issued, ASU 2014-09 will be effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2016. On July 9, 2015, the FASB approved the proposal to defer the effective date of this standard by one year. Early adoption is permitted for annual periods beginning after December 16, 2016. We are assessing the impact of adopting ASU No. 2014-09 on our consolidated financial statements.

In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. ASU 2014-12 requires that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Accounting Standards Codification (“ASC”) 718, Compensation—Stock Compensation, as it relates to such awards. ASU 2014-12 will be effective in the first quarter of our fiscal year ending June 30, 2017 with early adoption permitted using either of two methods: (1) prospective to all awards granted or modified after the effective date; or (2) retrospective to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all awards granted or modified thereafter, with the cumulative effect of applying ASU 2014-12 as an adjustment to the opening retained earnings balance as of the beginning of the earliest annual period presented in the financial statements. We do not expect the adoption of ASU No. 2014-12 to have a material impact on our consolidated financial statements.

In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810):Amendments to the Consolidation Analysis. ASU No. 2015-02 amended the process that a reporting entity must follow to determine whether it should consolidate certain types of legal entities. ASU 2015-02 is effective for fiscal years and interim periods within those years ending after December 15, 2015. Early application is permitted. We do not expect the adoption of ASU 2015-02 to have a material impact on our consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). ASU 2015-03 requires the presentation of debt issuance costs in the consolidated balance sheets as a reduction to the related debt liability rather than as an asset. Amortization of debt issuance costs continues to be classified as interest expense. ASU 2015-03 is effective for fiscal years beginning after December 15, 2016 with early adoption permitted. We are assessing the impact of adopting ASU No. 2015-03 on our consolidated financial statements.

In September 2015, the FASB issued ASU No. 2015-16 ("ASU 2015-16"), Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This ASU requires adjustments to provisional amounts that are identified during the measurement period of a business combination to be recognized in the reporting period in which the adjustment amounts are determined. Acquirers are no longer required to revise comparative information for prior periods as if the accounting for the business combination had been completed as of the acquisition date. The provisions of ASU 2015-16 are effective for reporting periods beginning after December 15, 2015. We are assessing the impact of adopting ASU No. 2015-16 on our consolidated financial statements.

NOTE 2. – EQUITY AND EARNINGS PER SHARE

We have authorized 5.0 million shares of preferred stock at $0.01 par value. As of September 30, 2015 and June 30, 2015, we had no shares of preferred stock issued and outstanding.

5

Notes to Consolidated Financial Statements (Continued)

We have authorized 150.0 million shares of common stock at $0.01 par value. As of September 30, 2015 and June 30, 2015, respectively, we had 53.2 million and 55.2 million shares of common stock issued and outstanding.

We compute basic earnings per share by dividing net income for the period by the weighted average number of common shares outstanding during the period. We compute diluted earnings per share by dividing net income by the weighted average number of common shares plus the dilutive effect of outstanding stock options and restricted stock awards and units. The following table outlines the basic and diluted earnings per share computations:

(in millions, except per share data)	Three Months Ended
	September 30, 2015		September 30, 2014
Net income attributable to common stock	$	24.9	$	37.1
Weighted average number of shares outstanding, used in computing basic earnings per share	55.0		54.7
Dilutive common stock equivalents	0.9		1.1
Weighted average number of shares outstanding used in computing diluted earnings per share	55.9		55.8
Basic earnings per share	$	0.45	$	0.68
Diluted earnings per share	$	0.45	$	0.67
Anti-dilutive equity instruments (excluded from the calculation of diluted earnings per share)	0.9		0.4

Share Repurchase Plan

Fiscal Year 2016 Share Repurchase

On September 14, 2015, we announced that our Board of Directors approved a share repurchase program (the “2016 Program”) authorizing the repurchase of up to $200.0 million of our common stock to be financed with cash on hand, cash generated from operations, existing credit facilities, or new financing.  On September 15, 2015, we entered into an agreement (the “2016 Agreement”) to purchase shares of our common stock from Wells Fargo Bank, National Association (“WF”), for an aggregate purchase price of$200.0 million pursuant to an accelerated share purchase program. Pursuant to the 2016 Agreement, in September 2015, we paid $200.0 million to WF and received from WF 2,274,343 shares of our common stock, representing 80% of the shares to be repurchased by us under the 2016 Agreement. The shares were repurchased at a price of $70.35 per share, which was the closing price of our common stock on the Nasdaq Global Select Market on September 16, 2015. These shares were canceled and restored to the status of authorized and unissued shares. As of September 30, 2015, we recorded the $200.0 million payment to WF as a decrease to equity in our consolidated balance sheet, consisting of decreases in common stock and additional paid-in capital. As additional paid-in capital was reduced to zero, the remainder was applied as a reduction in retained earnings.

Fiscal Year 2014 Share Repurchase

On June 2, 2014, we announced that our Board of Directors approved a share repurchase program (the “2014 Program”) authorizing the repurchase of up to $150.0 million of our common stock to be financed with cash on hand, cash generated from operations, existing credit facilities, or new financing.  On June 13, 2014, we entered into an agreement (the “2014 Agreement”) to purchase shares of our common stock from Goldman Sachs & Co. (“GS”), for an aggregate purchase price of $150.0 million pursuant to an accelerated share purchase program. Pursuant to the 2014 Agreement, in June 2014, we paid $150.0 million to GS and received from GS 2,284,844 shares of our common stock, representing 80% of the shares to be repurchased by us under the 2014 Agreement. The shares were repurchased at a price of $52.52 per share, which was the closing price of our common stock on the Nasdaq Global Select Market on June 13, 2014. These shares were canceled and restored to the status of authorized and unissued shares. As of June 30, 2014, we recorded the $150.0 million payment to GS as a decrease to equity in our consolidated balance sheet, consisting of decreases in common stock and additional paid-in capital. As additional paid-in capital was reduced to zero, the remainder was applied as a reduction in retained earnings.

On October 31, 2014, we received 345,165 shares representing the final settlement of the 2014 Agreement and the 2014 Program was completed. Pursuant to the 2014 Program, we repurchased 2,630,009 shares of our common stock at an average price of $57.03 per share from June 2014 to October 2014.

6

Notes to Consolidated Financial Statements (Continued)

NOTE 3. – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table reflects the activity for the components of accumulated other comprehensive income (loss), net of tax, for the three months ended September 30, 2015:

(in millions)	Foreign Currency			Unrealized Gain/Loss on Derivatives			Total
Balance as of June 30, 2015	$	(96.2	)	$	0.3		$	(95.9	)
Other comprehensive loss before reclassifications	(15.0		)	(4.1		)	(19.1		)
Loss reclassified from accumulated other comprehensive income	—			1.9			1.9
Net current-period other comprehensive loss	$	(15.0	)	$	(2.2	)	$	(17.2	)
Balance as of September 30, 2015	$	(111.2	)	$	(1.9	)	$	(113.1	)

The details regarding pre-tax gain (loss) on derivative instruments reclassified to net income from accumulated other comprehensive income (loss) for the three months ended September 30, 2015 and 2014 are presented below:

	Three Months Ended					Affected Line in the Consolidated Statements of Income
(in millions)	September 30, 2015			September 30, 2014
Interest rate contracts	$	(0.2	)	$	0.4	Interest expense, net
Foreign exchange contracts	(0.2		)	—		Service Revenue
Foreign exchange contracts	(2.8		)	1.3		Direct Costs
Cross-currency swap contracts	—			0.1		Miscellaneous income (expense), net
Total	$	(3.2	)	$	1.8

The amounts of gain (loss) reclassified from accumulated other comprehensive income into net income are net of taxes of $1.3 million, and $0.7 million for the three months ended September 30, 2015 and September 30, 2014, respectively.

NOTE 4. – STOCK-BASED COMPENSATION

We account for stock-based compensation according to FASB ASC 718, “Compensation—Stock Compensation.” The classification of compensation expense within the consolidated statements of income is presented in the following table:

(in millions)	Three Months Ended
	September 30, 2015		September 30, 2014
Direct costs	$	1.2	$	1.0
Selling, general and administrative	3.9		3.1
Total stock-based compensation	$	5.1	$	4.1

NOTE 5. RESTRUCTURING CHARGES

In June 2015, our Board of Directors approved a plan (the “Margin Acceleration Program”) to restructure our operations to improve the productivity and efficiency of the Company, simplify the organization, and streamline decision-making, thereby enhancing client engagement. The Margin Acceleration Program is company-wide. The activities under the Margin Acceleration Program are expected to be substantially completed by June 2016. In the fourth quarter of Fiscal Year 2015 and the first quarter of Fiscal Year 2016, we recorded $20.0 million and $14.8 million, respectively, in restructuring charges related to the Margin Acceleration Program.

7

Notes to Consolidated Financial Statements (Continued)

Changes in the restructuring accrual during the first quarter of Fiscal Year 2016 are summarized below:

	Balance at		Charges/(Benefits)		Payments/Foreign Currency Exchange			Balance at
	June 30, 2015							September 30, 2015
2015 Margin Acceleration Program
Employee severance	$	20.0	$	14.2	$	(1.6	)	$	32.6
Facilities-related	—		0.6		(0.6		)	—
Pre-Fiscal Year 2012 Restructuring Plans
Facilities-related	0.3		—		(0.1		)	0.2
Total	$	20.3	$	14.8	$	(2.3	)	$	32.8

The cash expenditures subsequent to September 30, 2015 for approximately $32.6 million in employee severance and $0.1 million of facility exit costs will be paid within the next twelve months.

NOTE 6. – SEGMENT INFORMATION

We have three reporting segments: Clinical Research Services (“CRS”), PAREXEL Consulting Services (“PC”), and PAREXEL Informatics (“PI”).

• 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, known as Peri/Post Approval Services. Our services include clinical trials management and biostatistics, commercialization, data management and clinical pharmacology, as well as related medical advisory, patient recruitment, clinical supply and drug logistics, pharmacovigilance, and investigator site services. PAREXEL Medical Communications Services ("MedCom") provides targeted communications services in support of product launch. We aggregate Early Phase with Phase II-III and Peri/Post Approval Services due to economic similarities in these operating segments.

• PC provides technical expertise and advice in such areas as drug development, regulatory affairs and strategic compliance. It also provides a full spectrum of market development and product development. Our PC consultants identify alternatives and propose solutions to address client issues associated with product development and registration.

• PI provides information technology solutions designed to help improve clients’ product development and regulatory submission processes. PI offers a portfolio of products and services that includes medical imaging services, ClinPhone^® RTSM, IMPACT^® clinical trials management systems (“CTMS”), DataLabs^® electronic data capture, web-based portals, systems integration, electronic patient reported outcomes, 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.

Effective July 1, 2015, certain components of the our business segments were reorganized to better align services offered to clients. Specifically, HERON™ and MedCom were transferred to the CRS segment from our PC segment to broaden the range of fully-integrated services to help clients position their products for market access and ongoing commercial success. For the three months ended September 30, 2015, we included the operating results of HERON™ and MedCom within the CRS segment and retroactively revised the three months ended September 30, 2014 to reflect this presentation change.

We evaluate our segment performance and allocate resources based on service revenue and gross profit (service revenue less direct costs), while other operating costs are allocated and evaluated on a geographic basis. Accordingly, we do not include the impact of selling, general, and administrative expenses, depreciation and amortization expense, other income (expense), and income tax expense in segment profitability. We attribute revenue to individual countries based upon the revenue earned in the respective countries; however, inter-segment transactions are not included in service revenue. Furthermore, we have a global infrastructure supporting our business segments, and therefore do not identify assets by reportable segment.

8

Notes to Consolidated Financial Statements (Continued)

Our segment results were as follows:

(in millions)	Three Months Ended
	September 30, 2015		September 30, 2014
Service revenue
CRS	$	410.2	$	384.9
PC	39.3		41.3
PI	62.6		65.5
Total service revenue	$	512.1	$	491.7
Direct costs
CRS	$	287.5	$	263.1
PC	20.2		21.6
PI	35.5		34.1
Total direct costs	$	343.2	$	318.8
Gross profit
CRS	$	122.7	$	121.8
PC	19.1		19.7
PI	27.1		31.4
Total gross profit	$	168.9	$	172.9

NOTE 7. – INCOME TAXES

We determine our global provision for corporate income taxes in accordance with FASB ASC 740, “Income Taxes.” We recognize our deferred tax assets and liabilities based upon the effect of temporary differences between the book and tax basis of recorded assets and liabilities. Further, we follow a methodology in which we identify, recognize, measure and disclose in our financial statements the effects of any uncertain tax return reporting positions that we have taken or expect to take. The methodology is based on the presumption that all relevant tax authorities possess full knowledge of those tax reporting positions, as well as all of the pertinent facts and circumstances. Our quarterly effective income tax rate reflects management’s estimates of our annual projected profitability in the various taxing jurisdictions in which we operate. Since the statutory tax rates differ in the jurisdictions in which we operate, changes in the distribution of profits and losses may have a significant impact on our effective income tax rate.

As of September 30, 2015, we had $35.8 million of gross unrecognized tax benefits, of which $24.9 million would impact the effective tax rate if recognized. As of June 30, 2015, we had $35.2 million of gross unrecognized tax benefits, of which $23.9 million would impact the effective tax rate if recognized. The reserves for unrecognized tax positions primarily relate to exposures for income tax matters such as changes in the jurisdiction in which income is taxable. The $0.6 million net increase in gross unrecognized tax benefits is primarily attributable to favorable positions we have taken, or expect to take, on tax returns.

As of September 30, 2015, we anticipate that the liability for unrecognized tax benefits for uncertain tax positions could decrease by approximately $15.1 million over the next 12 months primarily as a result of the expiration of statutes of limitations and settlements with tax authorities.

We recognize interest and penalties related to income tax matters in income tax expense. As of September 30, 2015 and June 30, 2015, $4.3 million and $4.2 million, respectively of gross interest and penalties were included in the liability for unrecognized tax benefits. For the three month periods ended September 30, 2015 and 2014, expenses of $0.2 million and $0.3 million, respectively, were recorded for interest and penalties related to tax matters.

We are subject to U.S. federal income tax, as well as income tax in multiple state, local and foreign jurisdictions. All material U.S. federal, state and local income tax matters have been concluded with the respective taxing authority through 2005. Substantially all material foreign income tax matters have been concluded for all years through 2001.

For the three months ended September 30, 2015 and 2014, we had effective income tax rates of 30.3% and 32.7%, respectively. The tax rates for these periods were lower than the expected statutory rate of 35% primarily as a result of the favorable effect of statutory tax rates applicable to income earned outside the United States on the projected annual effective tax rate.

NOTE 8.–CREDIT AGREEMENTS

Master Financing Agreement

On June 12, 2015, we entered into a three year, interest free Master Financing Agreement for $7.1 million with General Electric Capital Corporation, (“GECC”), in conjunction with a software term license purchase. On June 30, 2015 we received the gross

9

Notes to Consolidated Financial Statements (Continued)

proceeds of $7.1 million from GECC. Repayment of the principal borrowed under the Master Financing Agreement is due annually on July 1st as follows:

• $1.4 million paid on or prior to July 1, 2015;

• $2.8 million paid on or prior to July 1, 2016; and

• $2.9 million paid on or prior to July 1, 2017.

As of September 30, 2015, we had $5.7 million of principal borrowed under the Master Financing Agreement.

2014 Credit Agreement

On October 15, 2014, we, certain of our subsidiaries, Bank of America, N.A. (“Bank of America”), as Administrative Agent, Swingline Lender and L/C Issuer, Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPFS”), J.P. Morgan Securities LLC (“JPM Securities”), 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. (“JPMorgan”), HSBC and US Bank, as Joint Syndication Agents, and the other lenders party thereto entered into an amended and restated credit agreement (the “2014 Credit Agreement”) providing for a five-year term loan and revolving credit facility in the principal amount of up to $500.0 million (collectively, the “Loan Amount”), plus additional amounts of up to $300.0 million of loans to be made available upon request of the Company subject to specified terms and conditions.

The 2014 Credit Agreement amends and restates the amended and restated credit agreement dated as of March 22, 2013, by and among us, certain of our subsidiaries, Bank of America, as Administrative Agent, Swingline Lender and L/C Issuer, MLPFS, JPM Securities, HSBC, and US Bank as Joint Lead Arrangers and Joint Book Managers, JPMorgan, HSBC and US Bank, as Joint Syndication Agents, and the other lenders party thereto (the “2013 Credit Agreement”).

The loan facility available under the 2014 Credit Agreement consists of a term loan facility and a revolving credit facility. The principal amount of up to $200.0 million of the Loan Amount is available through the term loan facility, and the principal amount of up to $300.0 million of the Loan Amount is available through the revolving credit facility. A portion of the revolving credit facility is available for swingline loans of up to a sublimit of $100.0 million and for the issuance of standby letters of credit of up to a sublimit of $10.0 million.

The 2014 Credit Agreement is intended to provide funds for (i) stock repurchases, (ii) the issuance of letters of credit and (iii) our and our subsidiaries' other general corporate purposes, including permitted acquisitions.

As of September 30, 2015, we had $180.0 million of principal borrowed under the revolving credit facility and $200.0 million of principal borrowed under the term loan. As of June 30, 2015, we had $50.0 million of principal borrowed under the revolving credit facility and $200.0 million of principal borrowed under the term loan. The outstanding amounts are presented net of debt issuance cost of approximately $2.4 million and $2.5 million in our consolidated balance sheets at September 30, 2015 and June 30, 2015, respectively. As of September 30, 2015, we had borrowing availability of $120.0 million under the revolving credit facility.

The obligations under the 2014 Credit Agreement are guaranteed by certain of our material domestic subsidiaries, and the obligations, if any, of any foreign designated borrower are guaranteed by us and certain of our material domestic subsidiaries.

Borrowings (other than swingline loans) under the 2014 Credit Agreement bear interest, at our determination, at a rate based on either (a) LIBOR plus a margin (not to exceed a per annum rate of 1.750%) based on a ratio of consolidated funded debt to consolidated earnings before interest, taxes, depreciation and amortization (“EBITDA”) (the “Leverage Ratio”) or (b) the highest of (i) prime, (ii) the federal funds rate plus 0.500%, and (iii) the one month LIBOR rate plus 1.000% (such highest rate, the “Alternate Base Rate”), plus a margin (not to exceed a per annum rate of 0.750%) based on the Leverage Ratio. Swingline loans in U.S. dollars bear interest calculated at the Alternate Base Rate plus a margin (not to exceed a per annum rate of 0.750%). Loans outstanding under the 2014 Credit Agreement may be prepaid at any time in whole or in part without premium or penalty, other than customary breakage costs, if any, subject to the terms and conditions contained in the 2014 Credit Agreement. The 2014 Credit Agreement terminates and any outstanding loans under it mature and must be repaid on October 15, 2019.

Repayment of the principal borrowed under the revolving credit facility (other than a swingline loan) is due on October 15, 2019. A swingline loan under the 2014 Credit Agreement generally must be paid ten business days after the loan is made. Repayment of principal borrowed under the term loan facility is as follows, with the final payment of all amounts outstanding, plus accrued interest, being due on October 15, 2019:

• 1.25% by quarterly term loan amortization payments to be made commencing December 2015 and made on or prior to September 30, 2017;

• 2.50% by quarterly term loan amortization payments to be made after September 30, 2017, but on or prior to September 30, 2018;

• 5.00% by quarterly term loan amortization payments to be made after September 30, 2018, but prior to October 15, 2019; and

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Notes to Consolidated Financial Statements (Continued)

• 60.00% on October 15, 2019.

Interest due under the revolving credit facility (other than a swingline loan) and the term loan facility must be paid quarterly for borrowings with an interest rate determined with reference to the Alternate Base Rate. Interest must be paid on the last day of the interest period selected by the Company for borrowings determined with reference to LIBOR; provided that for interest periods of longer than three months, interest is required to be paid every three months. Interest under U.S. dollar swingline loans at the alternate base rate is payable quarterly.

Our obligations under the 2014 Credit Agreement may be accelerated upon the occurrence of an event of default under the 2014 Credit Agreement, which includes customary events of default, including payment defaults, defaults in the performance of affirmative and negative covenants, the inaccuracy of representations or warranties, bankruptcy and insolvency related defaults, cross defaults to material indebtedness, defaults relating to such matters as ERISA and judgments, and a change of control default.

The 2014 Credit Agreement contains negative covenants applicable to us and our subsidiaries, including financial covenants requiring us to comply with maximum leverage ratios and minimum interest coverage ratios, as well as restrictions on liens, investments, indebtedness, fundamental changes, acquisitions, dispositions of property, making specified restricted payments (including stock repurchases that would result in our exceeding an agreed-to leverage ratio), transactions with affiliates, and other restrictive covenants. As of September 30, 2015, we were in compliance with all covenants under the 2014 Credit Agreement.

In connection with the 2014 Credit Agreement, we agreed to pay a commitment fee on the revolving loan commitment calculated as a percentage of the unused amount of the revolving loan commitment at a per annum rate of up to 0.300% (based on the Leverage Ratio). To the extent there are letters of credit outstanding under the 2014 Credit Agreement, we will pay letter of credit fees plus a fronting fee and additional charges. We agreed to pay Bank of America (i) for its own account, an arrangement fee, (ii) for the account of each of the lenders, an upfront fee and (iii) for its own account, an annual agency fee.

In September 2011, we entered into an interest rate swap agreement which hedged $100.0 million of principal under our prior debt obligations and carries a fixed interest rate of 1.30%. In September 2015, the interest rate swap agreement matured and the related accumulated other comprehensive income was reclassified to net income during the three months ended September 30, 2015.

In May 2013, we entered into another interest rate swap agreement and hedged an additional principal amount of $100.0 million under the 2013 Credit Agreement with a fixed interest rate of 0.73%. The interest rate swap agreement now hedges $100.0 million of principal under our 2014 Credit Agreement. As of September 30, 2015, our debt under the 2014 Credit Agreement, including the $100.0 million of principal hedged with both interest swap agreements, carried an average annualized interest rate of 1.49%. These interest rate hedges were deemed to be fully effective in accordance with FASB ASC 815, “Derivatives and Hedging” (“ASC 815”) and, as such, unrealized gains and losses related to these derivatives are recorded as other comprehensive income in our consolidated balance sheets.

On October 1, 2015, we entered into a two year interest rate swap agreement effective September 30, 2016 and hedged an additional principal amount of $100.0 million under the 2014 Credit Agreement with a fixed interest rate of 1.104%.

Note Purchase Agreement

On July 25, 2013, we issued $100.0 million principal amount of 3.11% senior notes due July 25, 2020 (the “Notes”) for aggregate gross proceeds of $100.0 million in a private placement solely to accredited investors. The Notes were issued pursuant to a Note Purchase Agreement entered into by us with certain institutional investors on June 25, 2013 (the “Note Purchase Agreement”). Proceeds from the Notes were used to pay down $100.0 million of principal borrowed under the revolving credit facility of the 2013 Credit Agreement, as described below. We will pay interest on the outstanding balance of the Notes at a rate of 3.11% per annum, payable semi-annually on January 25 and July 25 of each year until the principal on the Notes shall have become due and payable. We may, at our option, upon notice and subject to the terms of the Note Purchase Agreement, prepay at any time all or part of the Notes in an amount not less than 10% of the aggregate principal amount of the Notes then outstanding, plus a Make-Whole Amount (as defined in the Note Purchase Agreement). The Notes become due and payable on July 25, 2020, unless payment is required to be made earlier under the terms of the Note Purchase Agreement.

The Note Purchase Agreement includes operational and financial covenants, with which we are required to comply, including, among others, maintenance of certain financial ratios and restrictions on additional indebtedness, liens and dispositions. As of September 30, 2015, we were in compliance with all covenants under the Note Purchase Agreement.

In connection with the Note Purchase Agreement, certain of our subsidiaries entered into a Subsidiary Guaranty, pursuant to which such subsidiaries guaranteed our obligations under the Notes and the Note Purchase Agreement.

As of September 30, 2015, there was $100.0 million in aggregate principal amount outstanding under the Notes. The outstanding amounts are presented net of debt issuance cost of approximately $0.3 million in our consolidated balance sheets.

Receivable Purchase Agreement

On February 19, 2013, we entered into a receivables purchase agreement (the “Receivable Agreement”) with JPMorgan Chase Bank, N.A. (“JPMorgan”). Under the Receivable Agreement, we sell to JPMorgan or other investors on an ongoing basis certain

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Notes to Consolidated Financial Statements (Continued)

of our trade receivables, together with ancillary rights and the proceeds thereof, which arise under contracts with a client, or its subsidiaries or affiliates. The Receivable Agreement includes customary representations and covenants on behalf of us, and may be terminated by either us or JPMorgan upon five business days advance notice. The Receivable Agreement provides a mechanism for accelerating the receipt of cash due on outstanding receivables. We account for the transfer of our receivables with respect to which we have satisfied the applicable revenue recognition criteria in accordance with FASB ASC 860, “Transfers and Servicing.” If we have not satisfied the applicable revenue recognition criteria for the underlying sales transaction, the transfer of the receivable is accounted for as a financing activity in accordance with FASB ASC 470, “Debt.” The accounts receivable and short-term debt balances are derecognized from our consolidated balance sheets at the earlier of the factored receivable’s due date or when all of the revenue recognition criteria are met for those billed services. During the three months ended September 30, 2015, we transferred approximately $40.0 million of trade receivables. As of September 30, 2015 and June 30, 2015, no transfers were accounted for as a financing activity.

2013 Credit Agreement

The 2013 Credit Agreement provided for a five-year term loan of $200.0 million and a revolving credit facility in the amount of up to $300.0 million, plus additional amounts of up to $200.0 million of loans to be made available upon our request subject to specified terms and conditions. A portion of the revolving credit facility was available for swingline loans of up to a sublimit of $75.0 million and for the issuance of standby letters of credit of up to a sublimit of $10.0 million. The 2013 Credit Agreement was amended and restated on October 15, 2014 as discussed above.

Our obligations under the 2013 Credit Agreement were guaranteed by certain of our material domestic subsidiaries, and the obligations, if any, of any foreign designated borrower were guaranteed by us and certain of our material domestic subsidiaries.

Borrowings (other than swingline loans) under the 2013 Credit Agreement bore interest, at our determination, at a rate based on either (i) LIBOR plus a margin (not to have exceeded a per annum rate of 1.750%) based on the Leverage Ratio or (ii) the Alternate Base Rate, plus a margin (not to have exceeded a per annum rate of 0.750%) based on the Leverage Ratio. Swingline loans in U.S. dollars bore interest calculated at the Alternate Base Rate plus a margin (not to have exceeded a per annum rate of 0.750%).

On October 15, 2014, all outstanding amounts under the 2013 Credit Agreement were fully repaid with the proceeds from the 2014 Credit Agreement.

Additional Lines of Credit

We have an unsecured line of credit with JP Morgan UK in the amount of $4.5 million that bears interest at an annual rate ranging from 2.00% to 4.00%. We entered into this line of credit to facilitate business transactions. At September 30, 2015, we had $4.5 million available under this line of credit.

We have a cash pool facility with RBS Nederland, NV in the amount of 4.0 million Euros that bears interest at an annual rate ranging between 2.00% and 4.00%. We entered into this line of credit to facilitate business transactions. At September 30, 2015, we had 4.0 million Euros available under this line of credit.

NOTE 9. – DEBT, COMMITMENTS, CONTINGENCIES AND GUARANTEES

As of September 30, 2015, our future minimum debt obligations related to the 2014 Credit Agreement and the Notes described in Note 8 above are as follows:

(in millions)	FY 2016		FY 2017		FY 2018		FY 2019		FY 2020		Thereafter		Total
Debt obligations (principal)	$	7.5	$	12.8	$	20.4	$	35.0	$	410.0	$	—	$	485.7

We have letter-of-credit agreements with banks totaling approximately $9.9 million guaranteeing performance under various operating leases and vendor agreements. Additionally, the borrowings under the 2014 Credit Agreement and the Notes are guaranteed by certain of our U.S. subsidiaries.

We periodically become involved in various claims and lawsuits that are incidental to our business. We are also regularly subject to, and are currently undergoing, audits by tax authorities in the United States and foreign jurisdictions for prior tax years. Although we believe our tax estimates are reasonable, and we intend to defend our positions through litigation if necessary, the final outcome of tax audits and related litigation is inherently uncertain and could be materially different than that reflected in our historical income tax provisions and accruals. Adverse outcomes of tax audits could also result in assessments of substantial additional taxes and/or fines or penalties relating to ongoing or future audits.

We believe, after consultation with counsel or other experts, that no matters currently pending would, in the event of an adverse outcome, either individually or in the aggregate, have a material impact on our consolidated financial position, results of operations, or liquidity.

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Notes to Consolidated Financial Statements (Continued)

NOTE 10. – DERIVATIVES

We are exposed to certain risks relating to our ongoing business operations. The primary risks managed 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.

• 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. Our interest rate contracts are designated as hedging instruments.

• Our foreign currency hedging program is a cash flow hedge program designed to mitigate foreign currency exchange rate volatility due to the foreign currency exchange exposure related to intercompany and significant external transactions. This program also intends to reduce the impact of foreign exchange rate risk on our direct costs and our service revenues. 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.

We also enter into other economic hedges to mitigate foreign currency exchange 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 September 30, 2015 and June 30, 2015. The gross position of all asset and liability amounts is reported in other current assets, other assets, other current liabilities, and other liabilities in our consolidated balance sheets.

(in millions)	September 30, 2015					June 30, 2015
	Notional Amount		Asset (Liability)			Notional Amount		Asset (Liability)
Derivatives designated as hedging instruments under ASC 815
Derivatives in an asset position:
Interest rate contracts	$	100.0	$	—		$	100.0	$	0.8
Foreign exchange contracts	43.1		1.0			140.6		2.9
Derivatives in a liability position:
Interest rate contracts	—		—			25.0		—
Foreign exchange contracts	137.6		(4.0		)	56.0		(4.6		)
Cross-currency swap contracts	—		—			19.0		(2.7		)
Total designated derivatives	$	280.7	$	(3.0	)	$	340.6	$	(3.6	)
Derivatives not designated as hedging instruments under ASC 815
Derivatives in an asset position:
Foreign exchange contracts	$	49.1	$	0.3		$	46.0	$	0.6
Derivatives in a liability position:
Foreign exchange contracts	78.3		(2.2		)	82.0		(1.8		)
Total non-designated derivatives	$	127.4	$	(1.9	)	$	128.0	$	(1.2	)
Total derivatives	$	408.1	$	(4.9	)	$	468.6	$	(4.8	)

Under certain circumstances, such as the occurrence of significant differences between actual cash payments and forecasted cash payments, the ASC 815 programs could be deemed ineffective. 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 sheets, net of deferred taxes, and any ineffective portion to miscellaneous income (expense), net in our consolidated statements of income. During the three months ended September 30, 2015 and 2014, we recorded losses of $1.0 million and $0.7 million, respectively, in miscellaneous income (expense), net in our consolidated statements of income to reflect ineffective portions of hedges.

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Notes to Consolidated Financial Statements (Continued)

The amounts recognized in other comprehensive income (loss), net of taxes, are presented below:

(in millions)	Three Months Ended
	September 30, 2015			September 30, 2014
Derivatives designated as hedging instruments under ASC 815
Interest rate contracts	$	(0.4	)	$	0.5
Foreign exchange contracts	(1.8		)	(7.7		)
Total designated derivatives	$	(2.2	)	$	(7.2	)

The unrealized gain (loss) on derivative instruments is net of $0.7 million and $4.1 million taxes, respectively, for the three months ended September 30, 2015 and 2014. The estimated net amount of the existing losses that are expected to be reclassified into earnings within the next twelve months is $3.3 million.

The change in the fair value of derivatives not designated as hedging instruments under ASC 815 is recorded to miscellaneous (expense) income, net in our consolidated statements of income. The total gains and losses related to foreign exchange contracts not designated as hedging instruments were losses of $2.8 million and $7.5 million for the three months ended September 30, 2015 and 2014, respectively. The unrealized losses recognized are presented below:

(in millions)	Three Months Ended
	September 30, 2015			September 30, 2014
Derivatives not designated as hedging instruments under ASC 815
Foreign exchange contracts	$	(0.7	)	$	(2.7	)
Total non-designated derivative unrealized loss, net	$	(0.7	)	$	(2.7	)

NOTE 11.– GOODWILL

As of September 30, 2015 and June 30, 2015, we had goodwill of $346.9 million and $354.9 million.  We evaluate goodwill for impairment annually, as well as whenever events or changes in circumstances suggest that the carrying value of goodwill may not be recoverable.  We test goodwill for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis on June 30th of each fiscal year or more frequently if indicators of impairment exist.  As discussed in Note 6, we reorganized certain components of our PC segment to our CRS segment on July 1, 2015.   We performed an impairment analysis immediately prior to and subsequent to the movement of these components and evaluated goodwill for impairment as of July 1, 2015 for our PC reporting unit, which had $20.6 million of goodwill as of June 30, 2015.   The performance of the test involves a two-step process. The first step of the impairment test involves comparing the fair values of the applicable reporting units with their aggregate carrying values, including goodwill.  We determined the fair value of our PC reporting unit using the income approach methodology of valuation that includes the discounted cash flow method, as well as other generally accepted valuation methodologies. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, we perform the second step of the goodwill impairment test to determine the amount of impairment loss. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit with the carrying value of that reporting unit. Based on this analysis, no impairment was identified. The Company's next annual impairment assessment will be performed as of June 30, 2016 unless indicators arise that would require the Company to re-evaluate at an earlier date.

NOTE 12.–FAIR VALUE MEASUREMENTS

We apply the provisions of FASB ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 defines fair value and provides guidance for measuring fair value and expands disclosures about fair value measurements. ASC 820 seeks to enable the reader of financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. ASC 820 requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:

• 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

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Notes to Consolidated Financial Statements (Continued)

◦ 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).

The following table sets forth by level, within the fair value hierarchy, our assets (liabilities) carried at fair value as of September 30, 2015:

(in millions)	Level 1		Level 2			Level 3			Total
Contingent consideration	$	—	$	—		$	(12.0	)	$	(12.0	)
Foreign currency exchange contracts	—		(4.9		)	—			(4.9		)
Total	$	—	$	(4.9	)	$	(12.0	)	$	(16.9	)

The following table sets forth by level, within the fair value hierarchy, our assets (liabilities) carried at fair value as of June 30, 2015:

(in millions)	Level 1		Level 2			Level 3			Total
Contingent consideration	$	—	$	—		$	(7.3	)	$	(7.3	)
Interest rate derivative instruments	—		0.7			—			0.7
Foreign currency exchange contracts	—		(5.6		)	—			(5.6		)
Total	$	—	$	(4.9	)	$	(7.3	)	$	(12.2	)

Level 1 Estimates

Cash equivalents are measured at quoted prices in active markets. These investments are considered cash equivalents due to the short maturity (less than 90 days) of the investments.

Level 2 Estimates

Interest rate derivative instruments are measured at fair value using a market approach valuation technique. The valuation is based on an estimate of net present value of the expected cash flows using relevant mid-market observable data inputs and based on the assumption of no unusual market conditions or forced liquidation.

Foreign currency exchange contracts are measured at fair value using a market approach valuation technique. The inputs to this technique utilize current foreign currency exchange forward market rates published by leading third-party financial news and data providers. This is observable data that represent the rates that the financial institution uses for contracts entered into at that date; however, they are not based on actual transactions so they are classified as Level 2.

Level 3 Estimates

Contingent consideration liabilities are re-measured to fair value each reporting period using projected financial targets, discount rates, probabilities of payment and projected payment dates. Projected contingent payment amounts are discounted back to the current period using a discounted cash flow model. Projected financial targets are based on our most recent internal operational budgets and may take into consideration alternate scenarios that could result in more or less profitability for the respective service line. Increases or decreases in projected financial targets and probabilities of payment may result in significant changes in the fair value measurements. Increases in discount rates and the time to payment may result in lower fair value measurements. Increases or decreases in any of those inputs in isolation may result in a significantly lower or higher fair value measurement.

We acquired ClinIntel Limited (“ClinIntel”), a provider of clinical randomization and trial supply management services, which are designed to make patient randomization and clinical supply chain solutions more efficient, in October 2014. The purchase price for the ClinIntel acquisition was approximately $8.8 million, plus the potential to pay up to an additional $16.2 million over a twenty-one month period following the acquisition date if ClinIntel achieves specific financial targets. The contingent consideration related to the ClinIntel acquisition is measured at fair value using an income approach valuation technique, specifically with probability weighted and discounted cash flows. Increases or decreases in the fair value of our contingent consideration liability is primarily impacted by the likelihood of achieving financial targets, but also from changes in discount periods and rates.

The recurring Level 3 fair value measurements of our contingent consideration liability include the following significant unobservable inputs:

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Notes to Consolidated Financial Statements (Continued)

	ClinIntel
Unobservable Input	Range
Discount rate	4%
Probability of achieving financial targets	100%
Projected period of payment	August 2016

The following table provides a summary of the change in our valuation of the fair value of the contingent consideration, which was determined by Level 3 inputs:

(in millions)	Fair Value
Balance at June 30, 2015	$	7.3
Change in fair value of contingent consideration	5.0
Effect of changes in exchange rates used for translation	(0.3		)
Balance at September 30, 2015	$	12.0

For the three months ended September 30, 2015 and 2014, the change in the fair value of the contingent consideration of $5.0 million and $1.0 million were recorded in selling, general and administrative expense, respectively.

For the three months ended September 30, 2015, there were no transfers among Level 1, Level 2, or Level 3 categories. Additionally, there were no changes in the valuation techniques used to determine the fair values of our Level 2 or Level 3 assets or liabilities.

The fair value of the debt under the Notes was estimated to be $98.0 million as of September 30, 2015, and was determined using U.S. government treasury rates and Level 3 inputs, including a credit risk adjustment.

The carrying value of our current and long-term debt under the 2014 Credit Agreement approximates fair value because all of the debt bears variable rate interest.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The financial information discussed below is derived from the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q. The financial information set forth and discussed below is unaudited but, in the opinion of our management, includes all adjustments (primarily consisting of normal recurring adjustments) considered necessary for a fair presentation of such information. Our results of operations for a particular quarter may not be indicative of results expected during subsequent fiscal quarters or for the entire fiscal year.

This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Section 27A of the Securities Act of 1933, as amended. For this purpose, any statements contained in this Quarterly Report on Form 10-Q regarding our strategy, future operations, financial position, future revenue, projected costs, prospects, plans and objectives of management, other than statements of historical facts, are forward-looking statements. The words “anticipates,” “believes,” “estimates,” “expects,” “appears,” “intends,” “may,” “plans,” “projects,” “would,” “could,” “should,” “targets,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We cannot guarantee that we actually will achieve the plans, intentions or expectations expressed or implied in our forward-looking statements. There are a number of important factors that could cause actual results, levels of activity, performance or events to differ materially from those expressed or implied in the forward-looking statements we make. These important factors are described under the heading “Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2015, filed with the Securities and Exchange Commission (the “SEC”) on August 25, 2015 (the “2015 10-K”), and under “Risk Factors” set forth in Part II, Item 1A below. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed herein may not occur and our actual performance and results may vary from those anticipated or otherwise suggested by such statements. You are cautioned not to place undue reliance on these forward-looking statements. Although we may elect to update forward-looking statements in the future, we specifically disclaim any obligation to do so, even if our estimates change, and you should not rely on those forward-looking statements as representing our views as of any date subsequent to the date of this Quarterly Report on Form 10-Q.

BUSINESS OVERVIEW

We are a leading biopharmaceutical outsourcing services company, providing a broad range of expertise in clinical research, clinical logistics, medical communications, consulting, commercialization and advanced technology products and services to the worldwide pharmaceutical, biotechnology, and medical device industries. Our primary objective is to provide quality solutions for managing the biopharmaceutical product lifecycle with the goal of reducing the time, risk, and cost associated with the development and commercialization of new therapies. Since our incorporation in 1983, we have developed significant expertise in processes and technologies supporting this strategy. Our product and service offerings include: clinical trials management, observational studies and patient/disease registries, data management, biostatistical analysis, epidemiology, health economics / outcomes research, pharmacovigilance, medical communications, clinical pharmacology, patient recruitment, clinical supply and drug logistics, post-marketing surveillance, regulatory and product development and commercialization consulting, health policy and reimbursement and market access consulting, medical imaging services, regulatory information management (“RIM”) solutions, ClinPhone randomization and trial supply management services (“RTSM”), electronic data capture systems (“EDC”), clinical trial management systems (“CTMS”), web-based portals, systems integration, patient diary applications, and other product development tools and services. We believe that our comprehensive services, depth of therapeutic area expertise, global footprint and related access to patients, and sophisticated information technology, along with our experience in global drug development and product launch services, represent key competitive strengths. We have three reporting segments: Clinical Research Services (“CRS”), PAREXEL Consulting Services (“PC”), and PAREXEL Informatics (“PI”).

• 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, known as Peri/Post Approval Services. Our services include clinical trials management and biostatistics, commercialization, data management and clinical pharmacology, as well as related medical advisory, patient recruitment, clinical supply and drug logistics, pharmacovigilance, and investigator site services. MedCom provides targeted communications services in support of product launch. We aggregate Early Phase with Phase II-III and Peri/Post Approval Services due to economic similarities in these operating segments.

• PC provides technical expertise and advice in such areas as drug development, regulatory affairs and strategic compliance. It also provides a full spectrum of market development and product development. Our PC consultants identify alternatives and propose solutions to address client issues associated with product development and registration.

• PI provides information technology solutions designed to help improve clients’ product development and regulatory submission processes. PI 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® RIM platform. These services are often bundled together and integrated with other

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applications to provide an eClinical solution for our clients. In addition, PI's portfolio of services is increasingly being embedded with that of CRS, to provide our clients with an integrated offering.

Effective July 1, 2015, certain components of our business segments were reorganized to better align services offered to clients. Specifically, HERON™ and MedCom were transferred to the CRS segment from our PC segment to broaden the range of fully-integrated services to help clients position their products for market access and ongoing commercial success. For the three months ended September 30, 2015, we included the operating results of HERON™ and MedCom within the CRS segment and retroactively revised the three months ended September 30, 2014 to reflect this presentation change.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

This discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and other financial information. On an ongoing basis, we evaluate our estimates and judgments. We base our estimates on historical experience and on various other factors that we believe to be reasonable under the circumstances. Actual results may differ from these estimates.

For further information on our other critical accounting policies, please refer to the consolidated financial statements and footnotes thereto included in the 2015 10-K.

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RESULTS OF OPERATIONS

ANALYSIS BY SEGMENT

We evaluate our segment performance and allocate resources based on service revenue and gross profit (service revenue less direct costs), while other operating costs are allocated and evaluated on a geographic basis. Accordingly, we do not include the impact of selling, general, and administrative expenses, depreciation and amortization expense, restructuring charges, other income (expense), and income tax expense in segment profitability. Inter-segment transactions are not included in service revenue. Furthermore, we have a global infrastructure supporting our business segments, and therefore, we do not identify assets by reportable segment.

Our segment results are as follows:

(dollar amounts in millions)	Three Months Ended
	September 30, 2015		September 30, 2014		Increase/(Decrease) $			Increase/(Decrease)%
Service revenue
CRS	$	410.2	$	384.9	$	25.3		6.6	%
PC	39.3		41.3		(2.0		)	(4.8	)%
PI	62.6		65.5		(2.9		)	(4.4	)%
Total service revenue	$	512.1	$	491.7	$	20.4		4.1	%
Direct costs
CRS	$	287.5	$	263.1	$	24.4		9.3	%
PC	20.2		21.6		(1.4		)	(6.5	)%
PI	35.5		34.1		1.4			4.1	%
Total direct costs	$	343.2	$	318.8	$	24.4		7.7	%
Gross profit
CRS	$	122.7	$	121.8	$	0.9		0.7	%
PC	19.1		19.7		(0.6		)	(3.0	)%
PI	27.1		31.4		(4.3		)	(13.7	)%
Total gross profit	$	168.9	$	172.9	$	(4.0	)	(2.3	)%

Three Months EndedSeptember 30, 2015 Compared With Three Months EndedSeptember 30, 2014:

Revenue

Service revenue increased by $20.4 million, or 4.1%, to $512.1 million for the three months ended September 30, 2015 from $491.7 million for the same period in 2014.

On a segment basis, CRS service revenue increased by $25.3 million, or 6.6%, to $410.2 million for the three months ended September 30, 2015 from $384.9 million for the same period in 2014. CRS service revenue was up due to higher backlog and the addition of $7.8 million of revenue generated from the acquisition of Quantum Solutions India (QSI).

PC service revenue decreased by $2.0 million, or 4.8%, to $39.3 million for the three months ended September 30, 2015 from $41.3 million for the same period in 2014. The decreases were due to an unfavorable business mix.

PI service revenue decreased by $2.9 million, or 4.4%, to $62.6 million for the three months ended September 30, 2015 from $65.5 million for the three months ended September 30, 2014. The decline in service revenue was primarily driven by an  unfavorable business mix due to lower RTSM backlog prior to the launch of our fourth generation ClinPhone.

Reimbursement revenue consists of reimbursable out-of-pocket expenses incurred on behalf of, and reimbursable by, clients. Reimbursement revenue does not yield any gross profit to us, nor does it have an impact on our net income.

Direct Costs

Direct costs increased by $24.4 million, or 7.7%, to $343.2 million for the three months ended September 30, 2015 from $318.8 million for the three months ended September 30, 2014. As a percentage of total service revenue, direct costs increased to 67.0% from 64.8% for the respective periods. The gross margin decrease was mainly driven by lower utilization in CRS and a decrease in PI's gross margin, partially offset by margin expansion in the PC segment.

On a segment basis, CRS direct costs increased by $24.4 million, or 9.3%, to $287.5 million for the three months ended September 30, 2015 from $263.1 million for the three months ended September 30, 2014. This increase resulted primarily from increased labor costs associated with headcount growth in CRS. As a percentage of CRS service revenue, CRS direct costs increased to 70.1% for

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the three months ended September 30, 2015 from 68.4% for the same period in 2014 due primarily to the need to hire staff in response to business wins.

PC direct costs decreased by $1.4 million, or 6.5%, to $20.2 million for the three months ended September 30, 2015 from $21.6 million for the three months ended September 30, 2014 largely due to a reduction in labor costs. As a percentage of PC service revenue, direct costs decreased to 51.4% from 52.3% for the respective periods due primarily to the more favorable revenue mix.

PI direct costs increased slightly by $1.4 million, or 4.1%, to $35.5 million for the three months ended September 30, 2015 from $34.1 million for the three months ended September 30, 2014. As a percentage of PI service revenue, PI direct costs increased to 56.7% for the three months ended September 30, 2015 from 52.1% for the same period in 2014 primarily due to lower revenue.

Selling, General and Administrative

Selling, general and administrative (“SG&A”) expense decreased by $4.1 million, or 4.1%, to $94.9 million for the three months ended September 30, 2015 from $99.0 million for the three months ended September 30, 2014. This decrease was primarily due to the favorable impact of foreign currency exchange rate movements, and the effect of efficiency initiatives for our support functions. These decreases were partially offset by an increase related to the change in fair value of acquisition related contingent consideration. As a percentage of service revenue, SG&A expense decreased to 18.5% of service revenue for the three months ended September 30, 2015 from 20.1% of service revenue for the three months ended September 30, 2014. This decrease was largely due to foreign currency exchange rate movements and effective cost management, leveraged against our revenue growth.

Depreciation and Amortization

Depreciation and amortization expense increased by $3.3 million, or 16.2%, to $23.7 million for the three months ended September 30, 2015 from $20.4 million for the same period in 2014. The increase in amortization expense was primarily attributable to our acquisition of QSI. As a percentage of service revenue, depreciation and amortization expense was 4.6% for the three months ended September 30, 2015 compared with 4.1% for the same period in 2014.

Restructuring Charge

In June 2015, we adopted the Margin Acceleration Program to restructure our operations to improve the productivity and efficiency of the Company, simplify the organization, and streamline decision-making, thereby enhancing client engagement. For the three months ended September 30, 2015, we recorded a net $14.8 million restructuring charge related to the Margin Acceleration Program, which consisted of $14.2 million of employee separation benefits and $0.6 million of lease termination related costs. From the announcement of the program through September 30, 2015, we recorded a net $34.8 million restructuring charge related to the Margin Acceleration Program, which consisted of $34.2 million of employee separation benefits and $0.6 million of lease termination related costs. The Margin Acceleration Program is company-wide and expected to result in pre-tax charges of between $35 million and $45.0 million. As a result of these initiatives, we expect to realize annual pre-tax savings of approximately $50.0 million to $60.0 million once our Margin Acceleration Program is completed.

Income from Operations

Income from operations decreased to $35.5 million for the three months ended September 30, 2015 from $53.6 million for the same period in 2014. Income from operations as a percentage of service revenue, or operating margin, decreased to 6.9% from 10.9% for the respective periods. This decrease in both income from operations and operating margin was due primarily to higher direct costs, which included a $14.8 million charge related to the Margin Acceleration Program and amortization of QSI intangible assets. These increases were partially offset by lower SG&A.

Other Income, Net

We recorded net other income of $0.2 million for the three months ended September 30, 2015 compared with net other income of $1.6 million for the three months ended September 30, 2014. The $1.4 million decrease in net other expense was primarily due to a $1.5 million decrease in miscellaneous income and a $0.1 million reduction in net interest expense. Net foreign currency exchange gains were recorded during both the three months ended September 30, 2015 and September 30, 2014. Both quarter results reflect the strengthening of the U.S. dollar against most major currencies throughout the world. Net interest expense decreased as a result of higher interest rates during the three months ended September 30, 2015, which resulted in an increase in interest income.

Taxes

For the three months ended September 30, 2015 and 2014, we had effective income tax rates of 30.3% and 32.7%, respectively.  The tax rates for the three months ended September 30, 2015 and 2014, each benefited from a favorable distribution of taxable income among lower tax rate foreign jurisdictions and the United States.

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LIQUIDITY AND CAPITAL RESOURCES

Since our inception, we have financed our operations and growth with cash flow from operations, proceeds from the sale of equity securities, and credit facilities. Investing activities primarily reflect the costs of capital expenditures for property and equipment as well as the funding of business acquisitions and the purchases of marketable securities. As of September 30, 2015, we had cash and cash equivalents of approximately $157.9 million. The majority of our cash and cash equivalents is held in foreign countries because excess cash generated in the United States is primarily used to repay our debt obligations. As of September 30, 2015 we did not hold any marketable securities. Foreign cash balances include unremitted foreign earnings, which are invested indefinitely outside of the United States. Our cash and cash equivalents are held in deposit accounts, which provide us with immediate and unlimited access to the funds. Repatriation of funds to the United States from non-U.S. entities may be subject to taxation or certain legal restrictions. Nevertheless, most of our cash resides in countries with few or no such legal restrictions.

DAYS SALES OUTSTANDING

Our operating cash flow is heavily influenced by changes in the levels of billed and unbilled receivables and deferred revenue. These account balances as well as days sales outstanding (“DSO”) in accounts receivable, net of deferred revenue, can vary based on contractual milestones and the timing and size of cash receipts. We calculate DSO by adding the end-of-period balances for billed and unbilled account receivables, net of deferred revenue (short-term and long-term) and the provision for losses on receivables, then dividing the resulting amount by the sum of total revenue plus investigator fees billed for the most recent quarter, and multiplying the resulting fraction by the number of days in the quarter. The following table presents the DSO, accounts receivable balances, and deferred revenue as of and for the three months ended September 30, 2015 and June 30, 2015:

(in millions)	September 30, 2015		June 30, 2015
Billed accounts receivable, net	$	428.1	$	460.6
Unbilled accounts receivable, net	284.0		262.2
Total accounts receivable	712.1		722.8
Deferred revenue	411.5		414.0
Net receivables	$	300.6	$	308.8
DSO (in days)	40		39

DSO for the three months ended September 30, 2015 was largely unchanged compared with the three months ended June 30, 2015.

CASH FLOWS

Operating Activities

Net cash provided by operating activities was $54.2 million for the three months ended September 30, 2015 and $18.9 million for the three months ended September 30, 2014. The $35.3 million increase in operating cash flows resulted primarily from a $35.6 million improvement in working capital, a $6.5 million increase in non-cash gains, and an increase of $4.3 million in depreciation, amortization and stock-based compensation expenses, partially offset by a decrease of $12.2 million in net income.

Investing Activities

Net cash used in investing activities was $30.9 million for the three months ended September 30, 2015 compared with net cash provided by investing activities of $74.8 million for the three months ended September 30, 2014.

During the three months ended September 30, 2015, we had $30.9 million in capital expenditures.

During the three months ended September 30, 2014, we received $88.5 million in net proceeds from the sale of marketable securities, which was partially offset by $12.1 million in capital expenditures.

Financing Activities

Net cash used in financing activities was $66.2 million for the three months ended September 30, 2015 compared with net cash provided by financing activities of $22.9 million for the three months ended September 30, 2014.

During the three months ended September 30, 2015, we paid $200.0 million as part of the accelerated share repurchase program and borrowed $130.0 million under the 2014 Credit Agreement (as defined below).

During the three months ended September 30, 2014, we borrowed an additional $20.0 million under the 2013 Credit Agreement (as defined below), and received $2.9 million in proceeds related to employee stock purchases.

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CREDIT AGREEMENTS

Master Financing Agreement

On June 12, 2015, we entered into a three year, interest free Master Financing Agreement for $7.1 million with General Electric Capital Corporation, (“GECC”), in conjunction with a software term license purchase. On June 30, 2015 we received the gross proceeds of $7.1 million from GECC. Repayment of the principal borrowed under the Master Financing Agreement is due annually on July 1st as follows:

• $1.4 million made on or prior to July 1, 2015;

• $2.8 million made on or prior to July 1, 2016; and

• $2.9 million made on or prior to July 1, 2017.

As of September 30, 2015, we had $5.7 million principal borrowed under the Master Financing Agreement.

2014 Credit Agreement

On October 15, 2014, we, certain of our subsidiaries, Bank of America, N.A. (“Bank of America”), as Administrative Agent, Swingline Lender and L/C Issuer, Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPFS”), J.P. Morgan Securities LLC (“JPM Securities”), 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. (“JPMorgan”), HSBC and US Bank, as Joint Syndication Agents, and the other lenders party thereto entered into an amended and restated credit agreement (the “2014 Credit Agreement”) providing for a five-year term loan and revolving credit facility in the principal amount of up to $500.0 million (collectively, the “Loan Amount”), plus additional amounts of up to $300.0 million of loans to be made available upon request of the Company subject to specified terms and conditions.

The 2014 Credit Agreement amends and restates the amended and restated credit agreement dated as of March 22, 2013, by and among us, certain of our subsidiaries, Bank of America, as Administrative Agent, Swingline Lender and L/C Issuer, MLPFS, JPM Securities, HSBC, and US Bank as Joint Lead Arrangers and Joint Book Managers, JPMorgan, HSBC and US Bank, as Joint Syndication Agents, and the other lenders party thereto (the “2013 Credit Agreement”).

The loan facility available under the 2014 Credit Agreement consists of a term loan facility and a revolving credit facility. The principal amount of up to $200.0 million of the Loan Amount is available through the term loan facility, and the principal amount of up to $300.0 million of the Loan Amount is available through the revolving credit facility. A portion of the revolving credit facility is available for swingline loans of up to a sublimit of $100.0 million and for the issuance of standby letters of credit of up to a sublimit of $10.0 million.

The 2014 Credit Agreement is intended to provide funds for (i) stock repurchases, (ii) the issuance of letters of credit and (iii) our and our subsidiaries' other general corporate purposes, including permitted acquisitions.

As of September 30, 2015, we had $180.0 million of principal borrowed under the revolving credit facility and $200.0 million of principal borrowed under the term loan. The outstanding amounts are presented net of debt issuance cost of approximately $2.4 million and $2.5 million in our consolidated balance sheets as of September 30, 2015 and June 30, 2015, respectively. As of September 30, 2015, we had borrowing availability of $120.0 million under the revolving credit facility.

The obligations under the 2014 Credit Agreement are guaranteed by certain of our material domestic subsidiaries, and the obligations, if any, of any foreign designated borrower are guaranteed by us and certain of our material domestic subsidiaries.

Borrowings (other than swingline loans) under the 2014 Credit Agreement bear interest, at our determination, at a rate based on either (a) LIBOR plus a margin (not to exceed a per annum rate of 1.750%) based on a ratio of consolidated funded debt to consolidated earnings before interest, taxes, depreciation and amortization (“EBITDA”) (the “Leverage Ratio”) or (b) the highest of (i) prime, (ii) the federal funds rate plus 0.500%, and (iii) the one month LIBOR rate plus 1.000% (such highest rate, the “Alternate Base Rate”), plus a margin (not to exceed a per annum rate of 0.750%) based on the Leverage Ratio. Swingline loans in U.S. dollars bear interest calculated at the Alternate Base Rate plus a margin (not to exceed a per annum rate of 0.750%). Loans outstanding under the 2014 Credit Agreement may be prepaid at any time in whole or in part without premium or penalty, other than customary breakage costs, if any, subject to the terms and conditions contained in the 2014 Credit Agreement. The 2014 Credit Agreement terminates and any outstanding loans under it mature and must be repaid on October 15, 2019.

Repayment of the principal borrowed under the revolving credit facility (other than a swingline loan) is due on October 15, 2019. A swingline loan under the 2014 Credit Agreement generally must be paid ten business days after the loan is made. Repayment of principal borrowed under the term loan facility is as follows, with the final payment of all amounts outstanding, plus accrued interest, being due on October 15, 2019:

• 1.25% by quarterly term loan amortization payments to be made commencing December 2015 and made on or prior to September 30, 2017;

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• 2.50% by quarterly term loan amortization payments to be made after September 30, 2017, but on or prior to September 30, 2018;

• 5.00% by quarterly term loan amortization payments to be made after September 30, 2018, but prior to October 15, 2019; and

• 60.00% on October 15, 2019.

Interest due under the revolving credit facility (other than a swingline loan) and the term loan facility must be paid quarterly for borrowings with an interest rate determined with reference to the Alternate Base Rate. Interest must be paid on the last day of the interest period selected by the Company for borrowings determined with reference to LIBOR; provided that for interest periods of longer than three months, interest is required to be paid every three months. Interest under U.S. dollar swingline loans at the alternate base rate is payable quarterly.

Our obligations under the 2014 Credit Agreement may be accelerated upon the occurrence of an event of default under the 2014 Credit Agreement, which includes customary events of default, including payment defaults, defaults in the performance of affirmative and negative covenants, the inaccuracy of representations or warranties, bankruptcy and insolvency related defaults, cross defaults to material indebtedness, defaults relating to such matters as ERISA and judgments, and a change of control default.

The 2014 Credit Agreement contains negative covenants applicable to us and our subsidiaries, including financial covenants requiring us to comply with maximum leverage ratios and minimum interest coverage ratios, as well as restrictions on liens, investments, indebtedness, fundamental changes, acquisitions, dispositions of property, making specified restricted payments (including stock repurchases that would result in our exceeding an agreed-to leverage ratio), transactions with affiliates, and other restrictive covenants. As of September 30, 2015, we were in compliance with all covenants under the 2014 Credit Agreement.

In connection with the 2014 Credit Agreement, we agreed to pay a commitment fee on the revolving loan commitment calculated as a percentage of the unused amount of the revolving loan commitment at a per annum rate of up to 0.300% (based on the Leverage Ratio). To the extent there are letters of credit outstanding under the 2014 Credit Agreement, we will pay letter of credit fees plus a fronting fee and additional charges. We agreed to pay Bank of America (i) for its own account, an arrangement fee, (ii) for the account of each of the lenders, an upfront fee and (iii) for its own account, an annual agency fee.

In September 2011, we entered into an interest rate swap agreement which hedged $100.0 million of principal under our prior debt obligations and carries a fixed interest rate of 1.30%. In September 2015, the interest rate swap agreement matured and the related accumulated other comprehensive income was reclassified to net income during the three months ended September 30, 2015.

In May 2013, we entered into another interest rate swap agreement and hedged an additional principal amount of $100.0 million under the 2013 Credit Agreement with a fixed interest rate of 0.73%. The interest rate swap agreement now hedges $100.0 million of principal under our 2014 Credit Agreement. As of September 30, 2015, our debt under the 2014 Credit Agreement, including the $100.0 million of principal hedged with both interest swap agreements, carried an average annualized interest rate of 1.49%. These interest rate hedges were deemed to be fully effective in accordance with FASB ASC 815, “Derivatives and Hedging” (“ASC 815”) and, as such, unrealized gains and losses related to these derivatives are recorded as other comprehensive income in our consolidated balance sheets.

On October 1, 2015, we entered into a two year interest rate swap agreement effective September 30, 2016 and hedged an additional principal amount of $100.0 million under the 2014 Credit Agreement with a fixed interest rate of 1.104%.

Note Purchase Agreement

On July 25, 2013, we issued $100.0 million principal amount of 3.11% senior notes due July 25, 2020 (the “Notes”) for aggregate gross proceeds of $100.0 million in a private placement solely to accredited investors. The Notes were issued pursuant to a Note Purchase Agreement entered into by us with certain institutional investors on June 25, 2013 (the “Note Purchase Agreement”). Proceeds from the Notes were used to pay down $100.0 million of principal borrowed under the revolving credit facility of the 2013 Credit Agreement, as described below. We will pay interest on the outstanding balance of the Notes at a rate of 3.11% per annum, payable semi-annually on January 25 and July 25 of each year until the principal on the Notes shall have become due and payable. We may, at our option, upon notice and subject to the terms of the Note Purchase Agreement, prepay at any time all or part of the Notes in an amount not less than 10% of the aggregate principal amount of the Notes then outstanding, plus a Make-Whole Amount (as defined in the Note Purchase Agreement). The Notes become due and payable on July 25, 2020, unless payment is required to be made earlier under the terms of the Note Purchase Agreement.

The Note Purchase Agreement includes operational and financial covenants, with which we are required to comply, including, among others, maintenance of certain financial ratios and restrictions on additional indebtedness, liens and dispositions. As of September 30, 2015, we were in compliance with all covenants under the Note Purchase Agreement.

In connection with the Note Purchase Agreement, certain of our subsidiaries entered into a Subsidiary Guaranty, pursuant to which such subsidiaries guaranteed our obligations under the Notes and the Note Purchase Agreement.

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As of September 30, 2015, there was $100.0 million in aggregate principal amount outstanding under the Notes. The outstanding amounts are presented net of debt issuance cost of approximately $0.3 million in our consolidated balance sheets.

Receivable Purchase Agreement

On February 19, 2013, we entered into a receivables purchase agreement (the “Receivable Agreement”) with JPMorgan Chase Bank, N.A. (“JPMorgan”). Under the Receivable Agreement, we sell to JPMorgan or other investors on an ongoing basis certain of our trade receivables, together with ancillary rights and the proceeds thereof, which arise under contracts with a client, or its subsidiaries or affiliates. The Receivable Agreement includes customary representations and covenants on behalf of us, and may be terminated by either us or JPMorgan upon five business days advance notice. The Receivable Agreement provides a mechanism for accelerating the receipt of cash due on outstanding receivables. We account for the transfer of our receivables with respect to which we have satisfied the applicable revenue recognition criteria in accordance with FASB ASC 860, “Transfers and Servicing.” If we have not satisfied the applicable revenue recognition criteria for the underlying sales transaction, the transfer of the receivable is accounted for as a financing activity in accordance with FASB ASC 470, “Debt.” The accounts receivable and short-term debt balances are derecognized from our consolidated balance sheets at the earlier of the factored receivable’s due date or when all of the revenue recognition criteria are met for those billed services. During the three months ended September 30, 2015, we transferred approximately $40.0 million of trade receivables. As of September 30, 2015 and June 30, 2015, no transfers were accounted for as a financing activity.

Additional Lines of Credit

We have an unsecured line of credit with JP Morgan UK in the amount of $4.5 million that bears interest at an annual rate ranging from 2.00% to 4.00%. We entered into this line of credit to facilitate business transactions. As of September 30, 2015, we had $4.5 million available under this line of credit.

We have a cash pool facility with RBS Nederland, NV in the amount of 4.0 million Euros that bears interest at an annual rate ranging between 2.00% and 4.00%. We entered into this line of credit to facilitate business transactions. As of September 30, 2015, we had 4.0 million Euros available under this line of credit.

DEBT, COMMITMENTS, CONTINGENCIES AND GUARANTEES

As of September 30, 2015, our future minimum debt obligations related to the 2014 Credit Agreement and the Notes described above under “Credit Agreements” are as follows:

(in millions)	FY 2016		FY 2017		FY 2018		FY 2019		FY 2020		Thereafter		Total
Debt obligations (principal)	$	7.5	$	12.8	$	20.4	$	35.0	$	410.0	$	—	$	485.7

We have letter-of-credit agreements with banks totaling approximately $9.9 million guaranteeing performance under various operating leases and vendor agreements. Additionally, the borrowings under the 2014 Credit Agreement and the Notes are guaranteed by certain of our U.S. subsidiaries.

We periodically become involved in various claims and lawsuits that are incidental to our business. We are also regularly subject to, and are currently undergoing, audits by tax authorities in the United States and foreign jurisdictions for prior tax years. Although we believe our tax estimates are reasonable, and we intend to defend our positions through litigation if necessary, the final outcome of tax audits and related litigation is inherently uncertain and could be materially different than that reflected in our historical income tax provisions and accruals. Adverse outcomes of tax audits could also result in assessments of substantial additional taxes and/or fines or penalties relating to ongoing or future audits.

We believe, after consultation with counsel or other experts, that no matters currently pending would, in the event of an adverse outcome, either individually or in the aggregate, have a material impact on our consolidated financial position, results of operations, or liquidity.

FINANCING NEEDS

Our primary cash needs are for operating expenses (such as salaries and fringe benefits, hiring and recruiting, business development and facilities), business acquisitions, capital expenditures, and repayment of principal and interest on our borrowings.

Credit Agreements and Note Purchase Agreement

In July 2013, we issued $100.0 million principal amount of 3.11% senior notes due July 25, 2020 for aggregate gross proceeds of $100.0 million in a private placement solely to accredited investors. We utilized the proceeds from the private placement to repay debt outstanding under our 2013 Credit Agreement. The Note Purchase Agreement permits the proceeds from the private placement to be used for working capital purposes, stock repurchase financing, debt refinancing, and for general corporate purposes including the financing of acquisitions, subject in each case to the terms of the Note Purchase Agreement.

Our requirements for cash to pay principal and interest on our borrowings will increase significantly in future periods based on amounts borrowed under our 2014 Credit Agreement and the Notes. Our primary committed external source of funds is the 2014 Credit Agreement. Our principal source of cash is from the performance of services under contracts with our clients. If we are unable to generate new contracts with existing and new clients or if the level of contract cancellations increases, our revenue and

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cash flow would be adversely affected (see Part II, Item 1A “Risk Factors” for further detail on these risks). Absent a material adverse change in the level of our new business bookings or contract cancellations, we believe that our existing capital resources together with cash flow from operations and borrowing capacity under existing credit facilities will be sufficient to meet our foreseeable cash needs over the next twelve months and on a longer term basis. Depending upon our revenue and cash flow from operations, it is possible that we will require external funds to repay amounts outstanding under our 2014 Credit Agreement upon its maturity in 2019.

We expect to continue to acquire businesses that enhance our service and product offerings, expand our therapeutic expertise, and/or increase our global presence. Depending on their size, any future acquisitions may require additional external financing, and we may from time to time seek to obtain funds from public or private issuances of equity or debt securities. We may be unable to secure such financing at all or on terms acceptable to us, as a result of our outstanding borrowings, including our outstanding borrowings under the 2014 Credit Agreement.

Under the terms of the 2014 Credit Agreement, interest rates are fixed based on market indices at the time of borrowing and, depending upon the interest mechanism selected by us, may float thereafter. As a result, the amount of interest payable by us on our borrowings may increase if market interest rates change. However, we expect to mitigate the risk of increasing market interest rates with our hedging programs described below under Part I, Item 3 “Quantitative and Qualitative Disclosures About Market Risk - Foreign Currency Exchange Rates and Interest Rates.”

Share Repurchases

On September 14, 2015, we announced that our Board of Directors approved a share repurchase program (the “2016 Program”) authorizing the repurchase of up to $200.0 million of our common stock to be financed with cash on hand, cash generated from operations, existing credit facilities, or new financing.  On September 15, 2015, we entered into an agreement (the “2016 Agreement”) to purchase shares of our common stock from Wells Fargo Bank, National Association (“WF”), for an aggregate purchase price of $200.0 million pursuant to an accelerated share purchase program. Pursuant to the 2016 Agreement, in September 2015, we paid $200.0 million to WF and received from WF 2,274,343 shares of our common stock, representing 80% of the shares to be repurchased by us under the 2016 Agreement. The shares were repurchased at a price of $70.35 per share, which was the closing price of our common stock on the Nasdaq Global Select Market on September 16, 2015. These shares were canceled and restored to the status of authorized and unissued shares. As of September 30, 2015, we recorded the $200.0 million payment to WF as a decrease to equity in our consolidated balance sheet, consisting of decreases in common stock and additional paid-in capital. As additional paid-in capital was reduced to zero, the remainder was applied as a reduction in retained earnings.

On June 2, 2014, we announced that our Board of Directors approved a share repurchase program (the “2014 Program”) authorizing the repurchase of up to $150.0 million of our common stock to be financed with cash on hand, cash generated from operations, existing credit facilities, or new financing.  On June 13, 2014, we entered into an agreement (the “2014 Agreement”) to purchase shares of our common stock from Goldman Sachs & Co. (“GS”), for an aggregate purchase price of $150.0 million pursuant to an accelerated share purchase program. Pursuant to the 2014 Agreement, in June 2014, we paid $150.0 million to GS and received from GS 2,284,844 shares of our common stock, representing 80% of the shares to be repurchased by us under the 2014 Agreement. The shares were repurchased at a price of $52.52 per share, which was the closing price of our common stock on the Nasdaq Global Select Market on June 13, 2014. These shares were canceled and restored to the status of authorized and unissued shares. As of June 30, 2014, we recorded the $150.0 million payment to GS as a decrease to equity in our consolidated balance sheet, consisting of decreases in common stock and additional paid-in capital. As additional paid-in capital was reduced to zero, the remainder was applied as a reduction in retained earnings.

On October 31, 2014, we received 345,165 shares representing the final settlement of the 2014 Agreement and the 2014 Program was completed. Pursuant to the 2014 Program, we repurchased 2,630,009 shares of our common stock at an average price of $57.03 per share from June 2014 to October 2014.

OFF-BALANCE SHEET ARRANGEMENTS

We have no material off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

INFLATION

We believe the effects of inflation generally do not have a material adverse impact on our operations or financial condition.

RECENTLY IMPLEMENTED AND ISSUED ACCOUNTING STANDARDS

See Note 1 to our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for more information on recently implemented and issued accounting standards.

25

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

MARKET RISK

Market risk is the potential loss arising from adverse changes in market rates and prices, such as foreign currency exchange rates, interest rates, and other relevant market rates or price changes. In the ordinary course of business, we are exposed to market risk resulting from changes in foreign currency exchange rates and interest rates, and we regularly evaluate our exposure to such changes. Our overall risk management strategy seeks to balance the magnitude of the exposure and the costs and availability of appropriate financial instruments.

FOREIGN CURRENCY EXCHANGE RATES AND INTEREST RATES

For the three months ended September 30, 2015 and 2014, we derived approximately 54.8% and 56.3% of our consolidated service revenue, respectively, from operations outside of the United States. In addition, for the three months ended September 30, 2015 and 2014, our Euro denominated service revenue accounted for 10.5% and 13.8% of our consolidated service revenue, respectively. We have no significant operations in countries in which the economy is considered to be highly inflationary. Our financial statements are denominated in U.S. dollars. Accordingly, changes in exchange rates between foreign currencies and the U.S. dollar will affect the translation of financial results into U.S. dollars for purposes of reporting our consolidated financial results.

It is our policy to mitigate the risks associated with fluctuations in foreign exchange rates and in market rates of interest. Accordingly, we have instituted foreign currency hedging programs and an interest rate swap program. See Note 10 to our consolidated financial statements included in this Quarterly Report on Form 10-Q for more information on our hedging programs and interest rate swap program. Our foreign currency hedging program was expanded in the first quarter of fiscal year ended June 30, 2013 in order to reduce the impact of foreign currency exchange rate risk on our gross margin.

As of September 30, 2015, the programs with derivatives designated as hedging instruments under ASC 815 were deemed effective and the notional values of the derivatives were approximately $280.7 million, including one interest rate swap agreement with a total notional value of $100.0 million that hedge borrowings under our 2014 Credit Agreement. 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. In such an event, the unrealized gains and losses related to these derivatives, which are currently reported in accumulated other comprehensive income in our consolidated balance sheets, would be recognized in earnings. As of September 30, 2015, the estimated amount that could be recognized in earnings was a loss of approximately $1.9 million, net of tax.

As of September 30, 2015, the notional value of derivatives that were not designated as hedging instruments under ASC 815 was approximately $127.4 million.

During the three months ended September 30, 2015 and 2014, we recorded net foreign currency exchange gains of $2.4 million and $3.4 million, respectively. We also have exposure to additional foreign currency exchange rate risk as it relates to assets and liabilities that are not part of the economic hedge or designated hedging programs, but that risk is difficult to quantify at any given point in time.

Our exposure to changes in interest rates relates primarily to the amount of our long-term debt. The current portion of our long-term debt was $12.8 million as of September 30, 2015 and $8.9 million as of June 30, 2015. Long-term debt was $472.8 million as of September 30, 2015 and $348.2 million as of June 30, 2015. As of September 30, 2015, $100.0 million of borrowings under our 2014 Credit Agreement were hedged under an interest rate swap agreement and $100.0 million in aggregate principal amount outstanding under the Notes carry a fixed interest rate of 3.11%. Based on average total debt for the three months ended September 30, 2015, an increase in the average interest rate of 100 basis points would reduce our pre-tax earnings and cash flows by approximately $2.8 million on an annual basis. On October 1, 2015, we entered into a two year interest rate swap agreement effective September 30, 2016 and hedged an additional principal amount of $100.0 million under the 2014 Credit Agreement with a fixed interest rate of 1.104%.

26

ITEM 4. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

Our management, with the participation of our chief executive officer and chief financial officer (our principal executive officer and principal financial officer, respectively), evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2015. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended ( the “Exchange Act”), means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of September 30, 2015, our chief executive officer and chief financial officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the fiscal quarter ended September 30, 2015 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

27

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We periodically become involved in various claims and lawsuits that are incidental to our business. We believe, after consultation with counsel, that no matters currently pending would, in the event of an adverse outcome, have a material impact on our consolidated financial statements.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for Fiscal Year 2015 filed with the SEC on August 25, 2015, which could materially affect our business, financial condition, and future operating results. The risks described in our Annual Report on Form 10-K are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, and operating results. There have been no material changes to the risk factors set forth in our Annual Report on Form 10-K for Fiscal Year 2015.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table provides information about repurchases of our equity securities during the three months ended September 30, 2015:

Period	(a) Total Number of Share (or Units) Purchased	(b) Average Price Paid per Share (or Unit)		(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	(d) Approximate Dollar Value of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs(1)
July 1, 2015 - July 31, 2015	—	$	—	—	$—
August 1, 2015 - August 30, 2015	—	$	—	—	$—
September 1, 2015 - September 30, 2015	2,274,343	$	70.35	2,274,343	$—
Total	2,274,343			2,274,343

⁽¹⁾ On September 14, 2015, we announced that our Board of Directors approved the 2016 Program authorizing the repurchase of up to $200.0 million of our common stock to be financed with cash on hand, cash generated from operations, existing credit facilities, or new financing.  On September 15, 2015, we entered into the 2016 Agreement to purchase shares of our common stock from WF, for an aggregate purchase price of $200.0 million pursuant to an accelerated share purchase program. Pursuant to the 2016 Agreement, in September 2015, we paid $200.0 million to WF and received from WF 2,274,343 shares of our common stock, representing 80% of the shares to be repurchased by us under the 2016 Agreement. The shares were repurchased at a price of $70.35 per share, which was the closing price of our common stock on the Nasdaq Global Select Market on September 16, 2015. These shares were canceled and restored to the status of authorized and unissued shares. As of September 30, 2015, we recorded the $200.0 million payment to WF as a decrease to equity in our consolidated balance sheet, consisting of decreases in common stock and additional paid-in capital. As additional paid-in capital was reduced to zero, the remainder was applied as a reduction in retained earnings.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

See the Exhibit Index on the page immediately preceding the exhibits for a list of exhibits filed as part of this Quarterly Report on Form 10-Q, which Exhibit Index is incorporated by this reference.

28

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		PAREXEL International Corporation
Date:	November 4, 2015	By: /s/ Josef H. von Rickenbach
		Josef H. von Rickenbach
		Chairman of the Board and Chief Executive Officer
		(Principal Executive Officer)
Date:	November 4, 2015	By: /s/ Ingo Bank
		Ingo Bank
		Senior Vice President and Chief Financial Officer
		(Principal Financial Officer)

29

EXHIBIT INDEX

Exhibit Number	Description
10.1	Letter Agreement Regarding Accelerated Share Repurchase Program by and between PAREXEL International Corporation and Wells Fargo Bank, National Association, dated September 15, 2015 (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K dated September 15, 2015 and incorporated herein by reference).
31.1	Principal executive officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Principal financial officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Principal executive officer certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Principal financial officer 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.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase

30

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Josef H. von Rickenbach, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of PAREXEL International Corporation;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 4, 2015	By: /s/ Josef H. von Rickenbach
		Josef H. von Rickenbach
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Ingo Bank, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of PAREXEL International Corporation;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 4, 2015	By: /s/ Ingo Bank
		Ingo Bank
		(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of PAREXEL International Corporation (the “Company”) for the period ended September 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Josef H. von Rickenbach, Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, that, to his knowledge:

(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:	November 4, 2015	By: /s/ Josef H. von Rickenbach
		Josef H. von Rickenbach
		Chairman of the Board and Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to PAREXEL International Corporation and will be retained by PAREXEL International Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of PAREXEL International Corporation (the “Company”) for the period ended September 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Ingo Bank, Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, that, to his knowledge:

(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:	November 4, 2015	By: /s/ Ingo Bank
		Ingo Bank
		Senior Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to PAREXEL International Corporation and will be retained by PAREXEL International Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Commitments, Contingencies And Guarantees (Details) $ in Millions	Sep. 30, 2015 USD ($)
Commitments, Contingencies And Guarantees [Abstract]
Letters of Credit Outstanding, Amount	$ 9.9

XML

Fair Value Measurements Level 3 Rollforward (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Contingent Consideration [Roll Forward]
Balance at June 30, 2015	$ 7.3
Effect of exchange rate on contingent consideration	(0.3)
Balance at September 30, 2015	12.0
Selling, General And Administrative [Member]
Contingent Consideration [Roll Forward]
Change in fair value of contingent consideration	$ 5.0	$ 1.0

XML

Segment Information (Service Revenue, Direct Costs And Gross Profit On Service Revenue Of Reportable Segment) (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Service revenue	$ 512.1	$ 491.7
Direct costs	343.2	318.8
Gross profit	168.9	172.9
CRS [Member]
Segment Reporting Information [Line Items]
Service revenue	410.2	384.9
Direct costs	287.5	263.1
Gross profit	122.7	121.8
PC [Member]
Segment Reporting Information [Line Items]
Service revenue	39.3	41.3
Direct costs	20.2	21.6
Gross profit	19.1	19.7
PI [Member]
Segment Reporting Information [Line Items]
Service revenue	62.6	65.5
Direct costs	35.5	34.1
Gross profit	$ 27.1	$ 31.4

XML

Derivatives (Tables)

3 Months Ended

Sep. 30, 2015

Summary of Derivative Instruments by Hedge Designation [Abstract]

Schedule Of Notional Amounts And Fair Values Of Derivatives

(in millions)	September 30, 2015					June 30, 2015
	Notional Amount		Asset (Liability)			Notional Amount		Asset (Liability)
Derivatives designated as hedging instruments under ASC 815
Derivatives in an asset position:
Interest rate contracts	$	100.0	$	—		$	100.0	$	0.8
Foreign exchange contracts	43.1		1.0			140.6		2.9
Derivatives in a liability position:
Interest rate contracts	—		—			25.0		—
Foreign exchange contracts	137.6		(4.0		)	56.0		(4.6		)
Cross-currency swap contracts	—		—			19.0		(2.7		)
Total designated derivatives	$	280.7	$	(3.0	)	$	340.6	$	(3.6	)
Derivatives not designated as hedging instruments under ASC 815
Derivatives in an asset position:
Foreign exchange contracts	$	49.1	$	0.3		$	46.0	$	0.6
Derivatives in a liability position:
Foreign exchange contracts	78.3		(2.2		)	82.0		(1.8		)
Total non-designated derivatives	$	127.4	$	(1.9	)	$	128.0	$	(1.2	)
Total derivatives	$	408.1	$	(4.9	)	$	468.6	$	(4.8	)

Schedule Of Change In The Fair Value Of Derivatives Designated As Hedging Instruments

(in millions)	Three Months Ended
	September 30, 2015			September 30, 2014
Derivatives designated as hedging instruments under ASC 815
Interest rate contracts	$	(0.4	)	$	0.5
Foreign exchange contracts	(1.8		)	(7.7		)
Total designated derivatives	$	(2.2	)	$	(7.2	)

Schedule Of Change In The Fair Value Derivatives Not Designated As Hedging Instruments

(in millions)	Three Months Ended
	September 30, 2015			September 30, 2014
Derivatives not designated as hedging instruments under ASC 815
Foreign exchange contracts	$	(0.7	)	$	(2.7	)
Total non-designated derivative unrealized loss, net	$	(0.7	)	$	(2.7	)

XML

Derivatives (Schedule Of Change In The Fair Value Of Derivatives Not Designated As Hedging Instruments) (Details) - Derivatives Not Designated As Hedging Instruments [Member] - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized Gain on Foreign Currency Derivatives, before Tax	$ (0.7)	$ (2.7)
Foreign Exchange Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value of derivatives not designated as hedging instruments	(2.8)	(7.5)
Unrealized Gain on Foreign Currency Derivatives, before Tax	$ (0.7)	$ (2.7)

XML

Credit Agreements Master Financing Agreement (Details) - USD ($) $ in Millions	Sep. 30, 2015	Jun. 12, 2015
Master Financing Agreement [Line Items]
Long-term Debt, Gross	$ 485.7	$ 7.1
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	7.5	1.4
Long-term Debt, Maturities, Repayments of Principal in Year Two	12.8	2.8
Long-term Debt, Maturities, Repayments of Principal in Year Three	20.4	$ 2.9
Master Financing Agreement [Member]
Master Financing Agreement [Line Items]
Long-term Debt, Gross	$ 5.7

XML

Accumulated Other Comprehensive Income

3 Months Ended

Sep. 30, 2015

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Comprehensive Income

COMPREHENSIVE INCOME (LOSS)

The following table reflects the activity for the components of accumulated other comprehensive income (loss), net of tax, for the three months ended September 30, 2015:

(in millions)	Foreign Currency			Unrealized Gain/Loss on Derivatives			Total
Balance as of June 30, 2015	$	(96.2	)	$	0.3		$	(95.9	)
Other comprehensive loss before reclassifications	(15.0		)	(4.1		)	(19.1		)
Loss reclassified from accumulated other comprehensive income	—			1.9			1.9
Net current-period other comprehensive loss	$	(15.0	)	$	(2.2	)	$	(17.2	)
Balance as of September 30, 2015	$	(111.2	)	$	(1.9	)	$	(113.1	)

The details regarding pre-tax gain (loss) on derivative instruments reclassified to net income from accumulated other comprehensive income (loss) for the three months ended September 30, 2015 and 2014 are presented below:

	Three Months Ended					Affected Line in the Consolidated Statements of Income
(in millions)	September 30, 2015			September 30, 2014
Interest rate contracts	$	(0.2	)	$	0.4	Interest expense, net
Foreign exchange contracts	(0.2		)	—		Service Revenue
Foreign exchange contracts	(2.8		)	1.3		Direct Costs
Cross-currency swap contracts	—			0.1		Miscellaneous income (expense), net
Total	$	(3.2	)	$	1.8

The amounts of gain (loss) reclassified from accumulated other comprehensive income into net income are net of taxes of $1.3 million, and $0.7 million for the three months ended September 30, 2015 and September 30, 2014, respectively.

XML

Goodwill (Details) - USD ($) $ in Millions	Sep. 30, 2015	Jun. 30, 2015
Goodwill [Line Items]
Goodwill	$ 346.9	$ 354.9
PC [Member]
Goodwill [Line Items]
Goodwill		$ 20.6

XML

Comprehensive Income (Schedule Of Comprehensive Income) (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	$ (111.2)		$ (96.2)
Other comprehensive income before reclassifications	(19.1)
Amounts reclassified from accumulated other comprehensive income to earnings, net of tax	1.9
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(15.0)	$ (38.2)
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	(2.2)	(7.2)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	(17.2)
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax	(1.9)		0.3
Accumulated Other Comprehensive Income (Loss), Net of Tax	(113.1)		$ (95.9)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(3.2)	1.8
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Tax	1.3	0.7
Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(0.2)
Cross Currency Swap Contracts [Member]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	0.0
Accumulated Translation Adjustment [Member]
Amounts reclassified from accumulated other comprehensive income to earnings, net of tax	0.0
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Other comprehensive income before reclassifications	(4.1)
Amounts reclassified from accumulated other comprehensive income to earnings, net of tax	1.9
Interest Expense [Member] | Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net		0.4
Sales Revenue, Services, Net [Member] | Foreign Exchange Contract [Member]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(2.8)	0.0
Cost of Sales [Member] | Foreign Exchange Contract [Member]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	$ (0.2)	1.3
Other Expense [Member] | Cross Currency Swap Contracts [Member]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net		$ 0.1

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Equity and Earnings Per Share (Computation Of Basic And Diluted Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended		5 Months Ended	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2015	Sep. 30, 2014	Oct. 31, 2014	Jun. 30, 2015	Jun. 30, 2014	Sep. 15, 2015	Sep. 14, 2015	Jun. 02, 2014
Class of Stock [Line Items]
Preferred Stock, Shares Authorized		5,000,000			5,000,000
Preferred Stock, Par or Stated Value Per Share		$ 0.01			$ 0.01
Preferred Stock, Shares Outstanding		0			0
Common Stock, Shares Authorized		150,000,000			150,000,000
Common Stock, Par or Stated Value Per Share		$ 0.01			$ 0.01
Common Stock, Shares, Outstanding		53,200,000			55,200,000
Disclosure of Repurchase Agreements [Abstract]
PercentOfSharesReceivedUnderASR		80.00%
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]
Net income attributable to common stock		$ 24.9	$ 37.1
Weighted average number of shares outstanding, used in computing basic earnings per share		55,000,000	54,700,000
Dilutive common stock equivalents		900,000	1,100,000
Weighted average number of shares outstanding used in computing diluted earnings per share		55,900,000	55,800,000
Basic earnings per share		$ 0.45	$ 0.68
Diluted earnings per share		$ 0.45	$ 0.67
Anti-dilutive options (excluded from the calculation of diluted earnings per share)		900,000	400,000
FY2016StockRepurchasePlan [Member] [Member] [Domain]
Disclosure of Repurchase Agreements [Abstract]
Stock Repurchase Program Authorized Amount							$ 200.0	$ 200.0
Treasury Stock, Shares, Acquired		2,274,343
Treasury Stock, Value, Acquired, Cost Method		$ 0.0
Accelerated Share Repurchases, Initial Price Paid Per Share		$ 70.35
FiscalYear2014StockRepurchasePlan [Member] [Member]
Disclosure of Repurchase Agreements [Abstract]
Stock Repurchase Program Authorized Amount									$ 150.0
Treasury Stock, Shares, Acquired		345,165		2,630,009	2,284,844
Treasury Stock, Value, Acquired, Cost Method					$ 150.0	$ 150.0
Accelerated Share Repurchases, Initial Price Paid Per Share				$ 57.03	$ 52.52
September 2012 Accelerated Share Repurchase [Member]
Disclosure of Repurchase Agreements [Abstract]
Treasury Stock, Value, Acquired, Cost Method	$ 50.0
September Open Market Repurchases [Member]
Disclosure of Repurchase Agreements [Abstract]
Treasury Stock, Value, Acquired, Cost Method	$ 50.0

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Fair Value Measurements (Schedule Of Fair Value Hierarchy, Assets (Liabilities) Carried At Fair Value) (Details) - USD ($) $ in Millions		3 Months Ended
	Oct. 03, 2014	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value		$ 12.0		$ 7.3
Long-term Debt, Fair Value		98.0
Interest Rate Derivative Instruments				0.7
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net		(4.9)		(5.6)
Business Acquisition, Contingent Consideration, at Fair Value		(12.0)		(7.3)
Total		(16.9)		(12.2)
Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest Rate Derivative Instruments				0.0
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net		0.0		0.0
Business Acquisition, Contingent Consideration, at Fair Value		0.0		0.0
Total		0.0		0.0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest Rate Derivative Instruments				0.7
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net		(4.9)		(5.6)
Business Acquisition, Contingent Consideration, at Fair Value		0.0		0.0
Total		(4.9)		(4.9)
Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest Rate Derivative Instruments				0.0
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net		0.0		0.0
Business Acquisition, Contingent Consideration, at Fair Value		(12.0)		(7.3)
Total		$ (12.0)		$ (7.3)
ClinIntel Acquisition [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Payments to Acquire Businesses, Gross	$ 8.8
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	$ 16.2
Fair Value Inputs, Discount Rate		4.00%
Selling, General and Administrative Expenses [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings		$ 5.0	$ 1.0

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Stock-Based Compensation (Classification Of Compensation Expense Within Consolidated Statements Of Income) (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based Compensation	$ 5.1	$ 4.1
Cost of Sales [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based Compensation	1.2	1.0
Selling, General And Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based Compensation	$ 3.9	$ 3.1

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Restructuring Charges (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 32.8		$ 20.3
Restructuring Charges	14.8	$ (0.1)
Two Thousand Fifteen Restructuring Plan [Member] [Domain]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	14.8
Employee Severance [Member] | Two Thousand Fifteen Restructuring Plan [Member] [Domain]
Restructuring Cost and Reserve [Line Items]
Capital Expenditures Incurred but Not yet Paid	32.6
Restructuring Reserve	32.6		20.0
Restructuring Charges	14.2
Facilities Related Charges [Member] | Two Thousand Fifteen Restructuring Plan [Member] [Domain]
Restructuring Cost and Reserve [Line Items]
Capital Expenditures Incurred but Not yet Paid	0.1
Restructuring Reserve	0.0		$ 0.0
Restructuring Charges	$ 0.6

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Equity and Earnings Per Share

3 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Equity and Earnings Per Share

EQUITY AND EARNINGS PER SHARE

We have authorized 5.0 million shares of preferred stock at $0.01 par value. As of September 30, 2015 and June 30, 2015, we had no shares of preferred stock issued and outstanding.

We have authorized 150.0 million shares of common stock at $0.01 par value. As of September 30, 2015 and June 30, 2015, respectively, we had 53.2 million and 55.2 million shares of common stock issued and outstanding.

We compute basic earnings per share by dividing net income for the period by the weighted average number of common shares outstanding during the period. We compute diluted earnings per share by dividing net income by the weighted average number of common shares plus the dilutive effect of outstanding stock options and restricted stock awards and units. The following table outlines the basic and diluted earnings per share computations:

(in millions, except per share data)	Three Months Ended
	September 30, 2015		September 30, 2014
Net income attributable to common stock	$	24.9	$	37.1
Weighted average number of shares outstanding, used in computing basic earnings per share	55.0		54.7
Dilutive common stock equivalents	0.9		1.1
Weighted average number of shares outstanding used in computing diluted earnings per share	55.9		55.8
Basic earnings per share	$	0.45	$	0.68
Diluted earnings per share	$	0.45	$	0.67
Anti-dilutive equity instruments (excluded from the calculation of diluted earnings per share)	0.9		0.4

Share Repurchase Plan

Fiscal Year 2016 Share Repurchase

On September 14, 2015, we announced that our Board of Directors approved a share repurchase program (the “2016 Program”) authorizing the repurchase of up to $200.0 million of our common stock to be financed with cash on hand, cash generated from operations, existing credit facilities, or new financing.  On September 15, 2015, we entered into an agreement (the “2016 Agreement”) to purchase shares of our common stock from Wells Fargo Bank, National Association (“WF”), for an aggregate purchase price of$200.0 million pursuant to an accelerated share purchase program. Pursuant to the 2016 Agreement, in September 2015, we paid $200.0 million to WF and received from WF 2,274,343 shares of our common stock, representing 80% of the shares to be repurchased by us under the 2016 Agreement. The shares were repurchased at a price of $70.35 per share, which was the closing price of our common stock on the Nasdaq Global Select Market on September 16, 2015. These shares were canceled and restored to the status of authorized and unissued shares. As of September 30, 2015, we recorded the $200.0 million payment to WF as a decrease to equity in our consolidated balance sheet, consisting of decreases in common stock and additional paid-in capital. As additional paid-in capital was reduced to zero, the remainder was applied as a reduction in retained earnings.

Fiscal Year 2014 Share Repurchase

On June 2, 2014, we announced that our Board of Directors approved a share repurchase program (the “2014 Program”) authorizing the repurchase of up to $150.0 million of our common stock to be financed with cash on hand, cash generated from operations, existing credit facilities, or new financing.  On June 13, 2014, we entered into an agreement (the “2014 Agreement”) to purchase shares of our common stock from Goldman Sachs & Co. (“GS”), for an aggregate purchase price of $150.0 million pursuant to an accelerated share purchase program. Pursuant to the 2014 Agreement, in June 2014, we paid $150.0 million to GS and received from GS 2,284,844 shares of our common stock, representing 80% of the shares to be repurchased by us under the 2014 Agreement. The shares were repurchased at a price of $52.52 per share, which was the closing price of our common stock on the Nasdaq Global Select Market on June 13, 2014. These shares were canceled and restored to the status of authorized and unissued shares. As of June 30, 2014, we recorded the $150.0 million payment to GS as a decrease to equity in our consolidated balance sheet, consisting of decreases in common stock and additional paid-in capital. As additional paid-in capital was reduced to zero, the remainder was applied as a reduction in retained earnings.

On October 31, 2014, we received 345,165 shares representing the final settlement of the 2014 Agreement and the 2014 Program was completed. Pursuant to the 2014 Program, we repurchased 2,630,009 shares of our common stock at an average price of $57.03 per share from June 2014 to October 2014.

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Restructuring Charges (Schedule Of Charges Against The Restructuring Accrual) (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Restructuring Cost and Reserve [Line Items]
Balance at June 30, 2013	$ 20.3
Provisions/Adjustments	14.8	$ (0.1)
Balance at September 30, 2013	32.8
Restructuring Reserve, Translation Adjustment	(2.3)
Two Thousand Fifteen Restructuring Plan [Member] [Domain]
Restructuring Cost and Reserve [Line Items]
Provisions/Adjustments	14.8
Two Thousand Fifteen Restructuring Plan [Member] [Domain] | Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Balance at June 30, 2013	20.0
Provisions/Adjustments	14.2
Balance at September 30, 2013	32.6
Restructuring Reserve, Translation Adjustment	(1.6)
Two Thousand Fifteen Restructuring Plan [Member] [Domain] | Facilities-Related Charges [Member]
Restructuring Cost and Reserve [Line Items]
Balance at June 30, 2013	0.0
Provisions/Adjustments	0.6
Balance at September 30, 2013	0.0
Restructuring Reserve, Translation Adjustment	(0.6)
Two Thousand Eleven Restructuring Plan [Member] | Facilities-Related Charges [Member]
Restructuring Cost and Reserve [Line Items]
Balance at June 30, 2013	0.3
Provisions/Adjustments	0.0
Balance at September 30, 2013	0.2
Restructuring Reserve, Translation Adjustment	$ (0.1)

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Derivatives (Schedule Of Notional Amounts And Fair Values Of Derivatives) (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Derivatives, Fair Value [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net	$ 1.0	$ (0.7)
Notional Amount	408.1		$ 468.6
Asset (Liability)	(4.9)		(4.8)
Derivatives Not Designated As Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	127.4		128.0
Asset (Liability)	(1.9)		(1.2)
Derivatives Designated As Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	280.7		340.6
Asset (Liability)	(3.0)		(3.6)
Interest Rate Contract [Member] | Derivatives Designated As Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	100.0
Derivative Liability, Fair Value, Gross Liability	0.0		0.0
Derivative Asset, Fair Value, Gross Asset	0.0		0.8
Derivative Liability, Notional Amount	0.0		25.0
Derivative Asset, Notional Amount	100.0		100.0
Cross Currency Swap Contracts [Member] | Derivatives Designated As Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability	0.0		(2.7)
Derivative Liability, Notional Amount	0.0		19.0
Foreign Exchange Contracts [Member] | Derivatives Not Designated As Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability	(2.2)		(1.8)
Derivative Asset, Fair Value, Gross Asset	0.3		0.6
Derivative Liability, Notional Amount	78.3		82.0
Derivative Asset, Notional Amount	49.1		46.0
Foreign Exchange Contracts [Member] | Derivatives Designated As Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability	(4.0)		(4.6)
Derivative Asset, Fair Value, Gross Asset	1.0		2.9
Derivative Liability, Notional Amount	137.6		56.0
Derivative Asset, Notional Amount	$ 43.1		$ 140.6

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Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2015	Jun. 30, 2015
ASSETS
Cash and cash equivalents	$ 157.9	$ 207.4
Billed and unbilled accounts receivable, net	428.1	460.6
Unbilled Receivables, Current	284.0	262.2
Prepaid expenses	29.8	15.6
Deferred tax assets	56.7	59.1
Income taxes receivable	7.3	12.8
Other current assets	41.4	44.4
Total current assets	1,005.2	1,062.1
Property and equipment, net	245.3	241.2
Goodwill	346.9	354.9
Other intangible assets, net	135.1	142.1
Non-current deferred tax assets	14.9	11.7
Long-term income taxes receivable	10.7	11.1
Other assets	42.0	41.9
Total assets	1,800.1	1,865.0
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable and current portion of long-term debt	12.8	8.9
Accounts payable	56.5	81.2
Deferred revenue	367.6	371.8
Accrued expenses	29.7	33.4
Restructuring Reserve, Current	32.7	20.2
Accrued employee benefits and withholdings	161.0	152.7
Current deferred tax liabilities	9.0	10.0
Taxes Payable, Current	13.7	13.1
Other current liabilities	20.5	18.2
Total current liabilities	703.5	709.5
Long-term debt, net of current portion	470.2	345.4
Non-current deferred tax liabilities	26.3	33.0
Long-term income tax liabilities	32.8	27.1
Long-term deferred revenue	43.9	42.2
Other liabilities	43.8	42.5
Total liabilities	1,320.5	1,199.7
Stockholders' equity:
Preferred stock	0.0	0.0
Common stock	0.5	0.6
Additional paid-in capital	0.0	37.7
Retained earnings	592.2	722.9
Accumulated other comprehensive (loss) income	(113.1)	(95.9)
Total stockholders' equity	479.6	665.3
Total liabilities and stockholders' equity	$ 1,800.1	$ 1,865.0

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Fair Value Measurements Unobservable Inputs (Details)	3 Months Ended
	Sep. 30, 2015
ClinIntel Acquisition [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Discount Rate	4.00%

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Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flow from operating activities:
Net Income (Loss) Attributable to Parent	$ 24.9	$ 37.1
Depreciation and amortization	23.7	20.4
Share-based Compensation	5.1	4.1
Excess Tax Benefit from Share-based Compensation, Operating Activities	(1.5)	(2.7)
Deferred income taxes	(7.5)	(7.4)
Other Noncash (Income) Expense	6.3	(0.2)
Changes in operating assets and liabilities	3.2	(32.4)
Net cash provided by (used in) operating activities:	54.2	18.9
Cash flow from investing activities:
Payments to Acquire Businesses, Net of Cash Acquired	0.0	(1.6)
Proceeds from Sale and Maturity of Marketable Securities	0.0	88.5
Purchases of property and equipment	(30.9)	(12.1)
Net cash used in investing activities	(30.9)	74.8
Cash flow from financing activities:
(Payments) proceeds from issuance of common stock	3.7	0.1
Payments for Repurchase of Common Stock	(200.0)	0.0
Excess Tax Benefit from Share-based Compensation, Financing Activities	1.5	2.8
Borrowing under credit agreement/facility	280.0	107.5
Repayments of Lines of Credit	(151.4)	(87.5)
Net cash (used in) provided by financing activities	(66.2)	22.9
Effect of exchange rate changes on cash and cash equivalents	(6.6)	(23.4)
Net increase (decrease) in cash and cash equivalents	(49.5)	93.2
Cash and cash equivalents at beginning of period	207.4	188.2
Cash and cash equivalents at end of period	157.9	281.4
Supplemental disclosures of cash flow information
Capital expenditure paid but incurred in prior periods	6.9	0.0
Interest	3.5	3.5
Income taxes, net of refunds	$ 4.3	$ 35.3

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Credit Agreements (Details) $ in Thousands, € in Millions	1 Months Ended	3 Months Ended
	May. 31, 2013 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2015 EUR (€)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Jun. 12, 2015 USD ($)	Jul. 25, 2013	Mar. 22, 2013 USD ($)
Line of Credit Facility [Line Items]
Derivative, Notional Amount				$ 408,100	$ 468,600
Letters of Credit Outstanding, Amount				9,900
Long-term Debt, Gross				$ 485,700		$ 7,100
Max commitment fee on revolving loan unused amount, percentage		0.30%
Interest rate swap, fixed interest rate	0.73%		1.30%	1.30%
JP Morgan [Member]
Line of Credit Facility [Line Items]
Transfers of Financial Assets Including Debt Activity		$ 40,000
Other Short-term Borrowings				$ 0
JP Morgan UK [Member]
Line of Credit Facility [Line Items]
Credit agreement maximum borrowing capacity				4,500
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum		2.00%
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum		4.00%
Remaining borrowing available under revolving credit facility				4,500
RBSNederlandNV [Member]
Line of Credit Facility [Line Items]
Credit agreement maximum borrowing capacity | €			€ 4.0
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum		2.00%
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum		4.00%
Remaining borrowing available under revolving credit facility | €			€ 4.0
Interest Rate Swap [Member]
Line of Credit Facility [Line Items]
Principal amount of debt hedged with an interest rate swap agreement	$ 100,000	$ 100,000
Senior Notes due in 2020 [Member]
Line of Credit Facility [Line Items]
Deferred Finance Costs, Noncurrent, Net				300
2013 Credit Agreement LIBOR [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate		1.75%
2013 Credit Agreement [Member]
Line of Credit Facility [Line Items]
Deferred Finance Costs, Noncurrent, Net				$ 2,400	2,500
Debt, Weighted Average Interest Rate			0.00%	0.00%
Swingline Loan [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity								$ 75,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Face Amount								200,000
Line of Credit Facility, Current Borrowing Capacity								300,000
Letters of Credit Outstanding, Amount								10,000
Remaining borrowing available under revolving credit facility				$ 120,000
2013 Credit Agreement One Month LIBOR Margin [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate		0.75%
2013 Credit Agreement Swingline [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate		0.75%
Term Loan [Member]
Line of Credit Facility [Line Items]
Long-term Debt								$ 200,000
Senior Notes due in 2020 [Member] | Senior Notes [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage							3.11%
Long-term Debt, Gross				100,000
Designated as Hedging Instrument [Member]
Line of Credit Facility [Line Items]
Derivative, Notional Amount				280,700	$ 340,600
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member]
Line of Credit Facility [Line Items]
Derivative, Notional Amount				$ 100,000

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Restructuring Charges (Tables)

3 Months Ended

Sep. 30, 2015

Restructuring Charges [Abstract]

Schedule Of Charges Against The Restructuring Accrual

	Balance at		Charges/(Benefits)		Payments/Foreign Currency Exchange			Balance at
	June 30, 2015							September 30, 2015
2015 Margin Acceleration Program
Employee severance	$	20.0	$	14.2	$	(1.6	)	$	32.6
Facilities-related	—		0.6		(0.6		)	—
Pre-Fiscal Year 2012 Restructuring Plans
Facilities-related	0.3		—		(0.1		)	0.2
Total	$	20.3	$	14.8	$	(2.3	)	$	32.8

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Credit Agreements 2014 Credit Agreement (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Oct. 15, 2014	Mar. 22, 2013
Debt Instrument [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.30%
Term Loan [Member]
Debt Instrument [Line Items]
Long-term Debt				$ 200.0
2013 Credit Agreement [Member]
Debt Instrument [Line Items]
Deferred Finance Costs, Noncurrent, Net	$ 2.4	$ 2.5
Swingline Loan [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Current Borrowing Capacity				75.0
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	$ 120.0
Line of Credit Facility, Current Borrowing Capacity				$ 300.0
2014 Credit Agreement [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity			$ 500.0
2014 Credit Agreement [Member] | LIBOR Plus Margin [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.75%
2014 Credit Agreement [Member] | Federal Funds Plus Margin [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.50%
2014 Credit Agreement [Member] | One Month LIBOR Plus Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.00%
2014 Credit Agreement [Member] | One Month LIBOR Plus Margin [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.75%
2014 Credit Agreement [Member] | Term Loan [Member]
Debt Instrument [Line Items]
Long-term Debt			$ 200.0
2014 Credit Agreement [Member] | Term Loan [Member] | Debt Instrument, Redemption, Period One [Member]
Debt Instrument [Line Items]
Term Loan, Quarterly Principal Payment Percentage			1.25%
2014 Credit Agreement [Member] | Term Loan [Member] | Debt Instrument, Redemption, Period Two [Member]
Debt Instrument [Line Items]
Term Loan, Quarterly Principal Payment Percentage			2.50%
2014 Credit Agreement [Member] | Term Loan [Member] | Debt Instrument, Redemption, Period Three [Member]
Debt Instrument [Line Items]
Term Loan, Quarterly Principal Payment Percentage			5.00%
2014 Credit Agreement [Member] | Term Loan [Member] | Debt Instrument, Redemption, Period Four [Member]
Debt Instrument [Line Items]
Term Loan, Quarterly Principal Payment Percentage			60.00%
2014 Credit Agreement [Member] | Swingline Loan [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Current Borrowing Capacity			$ 100.0
Debt Instrument, Basis Spread on Variable Rate	0.75%
2014 Credit Agreement [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long-term Line of Credit		$ 50.0	180.0
Line of Credit Facility, Current Borrowing Capacity			300.0
Letters of Credit, maximum issuance amount			$ 10.0

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Debt, Commitments, Contingencies And Guarantees Schedule of Contractual Obligation (Tables)

3 Months Ended

Sep. 30, 2015

Schedule of Long-term Debt Obligation [Abstract]

Schedule of Maturities of Long-term Debt [Table Text Block]

(in millions)	FY 2016		FY 2017		FY 2018		FY 2019		FY 2020		Thereafter		Total
Debt obligations (principal)	$	7.5	$	12.8	$	20.4	$	35.0	$	410.0	$	—	$	485.7

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Basis Of Presentation

3 Months Ended

Sep. 30, 2015

Basis Of Presentation [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of PAREXEL International Corporation (“PAREXEL,” the “Company,” “we,” “our” or “us”) have been prepared in accordance with generally accepted accounting principles ("GAAP") for interim financial information in the United States and the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (primarily consisting of normal recurring adjustments) considered necessary for a fair presentation of the Company’s financial position as of September 30, 2015, results of operations for the three months ended September 30, 2015 and 2014 have been included. Operating results for the three months ended September 30, 2015 are not necessarily indicative of the results that may be expected for other quarters or the entire fiscal year. For further information, refer to the audited consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2015 (the “2015 10-K”) filed with the Securities and Exchange Commission on August 25, 2015.

Recently Issued Accounting Standards

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which stipulates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. As originally issued, ASU 2014-09 will be effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2016. On July 9, 2015, the FASB approved the proposal to defer the effective date of this standard by one year. Early adoption is permitted for annual periods beginning after December 16, 2016. We are assessing the impact of adopting ASU No. 2014-09 on our consolidated financial statements.

In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. ASU 2014-12 requires that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Accounting Standards Codification (“ASC”) 718, Compensation—Stock Compensation, as it relates to such awards. ASU 2014-12 will be effective in the first quarter of our fiscal year ending June 30, 2017 with early adoption permitted using either of two methods: (1) prospective to all awards granted or modified after the effective date; or (2) retrospective to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all awards granted or modified thereafter, with the cumulative effect of applying ASU 2014-12 as an adjustment to the opening retained earnings balance as of the beginning of the earliest annual period presented in the financial statements. We do not expect the adoption of ASU No. 2014-12 to have a material impact on our consolidated financial statements.

In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810):Amendments to the Consolidation Analysis. ASU No. 2015-02 amended the process that a reporting entity must follow to determine whether it should consolidate certain types of legal entities. ASU 2015-02 is effective for fiscal years and interim periods within those years ending after December 15, 2015. Early application is permitted. We do not expect the adoption of ASU 2015-02 to have a material impact on our consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). ASU 2015-03 requires the presentation of debt issuance costs in the consolidated balance sheets as a reduction to the related debt liability rather than as an asset. Amortization of debt issuance costs continues to be classified as interest expense. ASU 2015-03 is effective for fiscal years beginning after December 15, 2016 with early adoption permitted. We are assessing the impact of adopting ASU No. 2015-03 on our consolidated financial statements.

In September 2015, the FASB issued ASU No. 2015-16 ("ASU 2015-16"), Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This ASU requires adjustments to provisional amounts that are identified during the measurement period of a business combination to be recognized in the reporting period in which the adjustment amounts are determined. Acquirers are no longer required to revise comparative information for prior periods as if the accounting for the business combination had been completed as of the acquisition date. The provisions of ASU 2015-16 are effective for reporting periods beginning after December 15, 2015. We are assessing the impact of adopting ASU No. 2015-16 on our consolidated financial statements.

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Condensed Consolidated Balance Sheets Parenthethical - $ / shares	Sep. 30, 2015	Jun. 30, 2015
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	150,000,000	150,000,000
Common Stock, Shares, Outstanding	53,200,000	55,200,000

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Goodwill Goodwill

3 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill Disclosure [Text Block]

NOTE 11.– GOODWILL

As of September 30, 2015 and June 30, 2015, we had goodwill of $346.9 million and $354.9 million.  We evaluate goodwill for impairment annually, as well as whenever events or changes in circumstances suggest that the carrying value of goodwill may not be recoverable.  We test goodwill for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis on June 30th of each fiscal year or more frequently if indicators of impairment exist.  As discussed in Note 6, we reorganized certain components of our PC segment to our CRS segment on July 1, 2015.   We performed an impairment analysis immediately prior to and subsequent to the movement of these components and evaluated goodwill for impairment as of July 1, 2015 for our PC reporting unit, which had $20.6 million of goodwill as of June 30, 2015.   The performance of the test involves a two-step process. The first step of the impairment test involves comparing the fair values of the applicable reporting units with their aggregate carrying values, including goodwill.  We determined the fair value of our PC reporting unit using the income approach methodology of valuation that includes the discounted cash flow method, as well as other generally accepted valuation methodologies. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, we perform the second step of the goodwill impairment test to determine the amount of impairment loss. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit with the carrying value of that reporting unit. Based on this analysis, no impairment was identified. The Company's next annual impairment assessment will be performed as of June 30, 2016 unless indicators arise that would require the Company to re-evaluate at an earlier date.

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Document And Entity Information - shares	3 Months Ended
	Sep. 30, 2015	Oct. 30, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Entity Registrant Name	PAREXEL INTERNATIONAL CORP
Entity Central Index Key	0000799729
Current Fiscal Year End Date	--06-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		53,238,556

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Fair Value Measurements

3 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

We apply the provisions of FASB ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 defines fair value and provides guidance for measuring fair value and expands disclosures about fair value measurements. ASC 820 seeks to enable the reader of financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. ASC 820 requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:

• 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).

The following table sets forth by level, within the fair value hierarchy, our assets (liabilities) carried at fair value as of September 30, 2015:

(in millions)	Level 1		Level 2			Level 3			Total
Contingent consideration	$	—	$	—		$	(12.0	)	$	(12.0	)
Foreign currency exchange contracts	—		(4.9		)	—			(4.9		)
Total	$	—	$	(4.9	)	$	(12.0	)	$	(16.9	)

The following table sets forth by level, within the fair value hierarchy, our assets (liabilities) carried at fair value as of June 30, 2015:

(in millions)	Level 1		Level 2			Level 3			Total
Contingent consideration	$	—	$	—		$	(7.3	)	$	(7.3	)
Interest rate derivative instruments	—		0.7			—			0.7
Foreign currency exchange contracts	—		(5.6		)	—			(5.6		)
Total	$	—	$	(4.9	)	$	(7.3	)	$	(12.2	)

Level 1 Estimates

Cash equivalents are measured at quoted prices in active markets. These investments are considered cash equivalents due to the short maturity (less than 90 days) of the investments.

Level 2 Estimates

Interest rate derivative instruments are measured at fair value using a market approach valuation technique. The valuation is based on an estimate of net present value of the expected cash flows using relevant mid-market observable data inputs and based on the assumption of no unusual market conditions or forced liquidation.

Foreign currency exchange contracts are measured at fair value using a market approach valuation technique. The inputs to this technique utilize current foreign currency exchange forward market rates published by leading third-party financial news and data providers. This is observable data that represent the rates that the financial institution uses for contracts entered into at that date; however, they are not based on actual transactions so they are classified as Level 2.

Level 3 Estimates

Contingent consideration liabilities are re-measured to fair value each reporting period using projected financial targets, discount rates, probabilities of payment and projected payment dates. Projected contingent payment amounts are discounted back to the current period using a discounted cash flow model. Projected financial targets are based on our most recent internal operational budgets and may take into consideration alternate scenarios that could result in more or less profitability for the respective service line. Increases or decreases in projected financial targets and probabilities of payment may result in significant changes in the fair value measurements. Increases in discount rates and the time to payment may result in lower fair value measurements. Increases or decreases in any of those inputs in isolation may result in a significantly lower or higher fair value measurement.

We acquired ClinIntel Limited (“ClinIntel”), a provider of clinical randomization and trial supply management services, which are designed to make patient randomization and clinical supply chain solutions more efficient, in October 2014. The purchase price for the ClinIntel acquisition was approximately $8.8 million, plus the potential to pay up to an additional $16.2 million over a twenty-one month period following the acquisition date if ClinIntel achieves specific financial targets. The contingent consideration related to the ClinIntel acquisition is measured at fair value using an income approach valuation technique, specifically with probability weighted and discounted cash flows. Increases or decreases in the fair value of our contingent consideration liability is primarily impacted by the likelihood of achieving financial targets, but also from changes in discount periods and rates.

The recurring Level 3 fair value measurements of our contingent consideration liability include the following significant unobservable inputs:

	ClinIntel
Unobservable Input	Range
Discount rate	4%
Probability of achieving financial targets	100%
Projected period of payment	August 2016

The following table provides a summary of the change in our valuation of the fair value of the contingent consideration, which was determined by Level 3 inputs:

(in millions)	Fair Value
Balance at June 30, 2015	$	7.3
Change in fair value of contingent consideration	5.0
Effect of changes in exchange rates used for translation	(0.3		)
Balance at September 30, 2015	$	12.0

For the three months ended September 30, 2015 and 2014, the change in the fair value of the contingent consideration of $5.0 million and $1.0 million were recorded in selling, general and administrative expense, respectively.

For the three months ended September 30, 2015, there were no transfers among Level 1, Level 2, or Level 3 categories. Additionally, there were no changes in the valuation techniques used to determine the fair values of our Level 2 or Level 3 assets or liabilities.

The fair value of the debt under the Notes was estimated to be $98.0 million as of September 30, 2015, and was determined using U.S. government treasury rates and Level 3 inputs, including a credit risk adjustment.

The carrying value of our current and long-term debt under the 2014 Credit Agreement approximates fair value because all of the debt bears variable rate interest.

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Condensed Consolidated Statements Of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	$ (15.0)	$ (38.2)
Revenues [Abstract]
Service revenue	512.1	491.7
Reimbursement revenue	73.1	82.0
Total revenue	585.2	573.7
Costs and Expenses [Abstract]
Direct costs	343.2	318.8
Reimbursable out-of-pocket expenses	73.1	82.0
Selling, general and administrative	94.9	99.0
Depreciation	18.0	16.9
Amortization of Intangible Assets	5.7	3.5
Restructuring charge (benefit)	14.8	(0.1)
Total costs and expenses	549.7	520.1
Income from operations	35.5	53.6
Interest Income (Expense), Net	(1.6)	(1.7)
Miscellaneous income (expense)	1.8	3.3
Total other income (expense)	0.2	1.6
Income before income taxes	35.7	55.2
Provision for income taxes	10.8	18.1
Net income	$ 24.9	$ 37.1
Earnings per common share
Basic	$ 0.45	$ 0.68
Diluted	$ 0.45	$ 0.67
Shares used in computing earnings per common share
Basic	55.0	54.7
Diluted	55.9	55.8

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Segment Information

3 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

We have three reporting segments: Clinical Research Services (“CRS”), PAREXEL Consulting Services (“PC”), and PAREXEL Informatics (“PI”).

• 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, known as Peri/Post Approval Services. Our services include clinical trials management and biostatistics, commercialization, data management and clinical pharmacology, as well as related medical advisory, patient recruitment, clinical supply and drug logistics, pharmacovigilance, and investigator site services. PAREXEL Medical Communications Services ("MedCom") provides targeted communications services in support of product launch. We aggregate Early Phase with Phase II-III and Peri/Post Approval Services due to economic similarities in these operating segments.

• PC provides technical expertise and advice in such areas as drug development, regulatory affairs and strategic compliance. It also provides a full spectrum of market development and product development. Our PC consultants identify alternatives and propose solutions to address client issues associated with product development and registration.

• PI provides information technology solutions designed to help improve clients’ product development and regulatory submission processes. PI offers a portfolio of products and services that includes medical imaging services, ClinPhone^® RTSM, IMPACT^® clinical trials management systems (“CTMS”), DataLabs^® electronic data capture, web-based portals, systems integration, electronic patient reported outcomes, 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.

Effective July 1, 2015, certain components of the our business segments were reorganized to better align services offered to clients. Specifically, HERON™ and MedCom were transferred to the CRS segment from our PC segment to broaden the range of fully-integrated services to help clients position their products for market access and ongoing commercial success. For the three months ended September 30, 2015, we included the operating results of HERON™ and MedCom within the CRS segment and retroactively revised the three months ended September 30, 2014 to reflect this presentation change.

We evaluate our segment performance and allocate resources based on service revenue and gross profit (service revenue less direct costs), while other operating costs are allocated and evaluated on a geographic basis. Accordingly, we do not include the impact of selling, general, and administrative expenses, depreciation and amortization expense, other income (expense), and income tax expense in segment profitability. We attribute revenue to individual countries based upon the revenue earned in the respective countries; however, inter-segment transactions are not included in service revenue. Furthermore, we have a global infrastructure supporting our business segments, and therefore do not identify assets by reportable segment.

Our segment results were as follows:

(in millions)	Three Months Ended
	September 30, 2015		September 30, 2014
Service revenue
CRS	$	410.2	$	384.9
PC	39.3		41.3
PI	62.6		65.5
Total service revenue	$	512.1	$	491.7
Direct costs
CRS	$	287.5	$	263.1
PC	20.2		21.6
PI	35.5		34.1
Total direct costs	$	343.2	$	318.8
Gross profit
CRS	$	122.7	$	121.8
PC	19.1		19.7
PI	27.1		31.4
Total gross profit	$	168.9	$	172.9

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Restructuring Charges

3 Months Ended

Sep. 30, 2015

Restructuring Charges [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

In June 2015, our Board of Directors approved a plan (the “Margin Acceleration Program”) to restructure our operations to improve the productivity and efficiency of the Company, simplify the organization, and streamline decision-making, thereby enhancing client engagement. The Margin Acceleration Program is company-wide. The activities under the Margin Acceleration Program are expected to be substantially completed by June 2016. In the fourth quarter of Fiscal Year 2015 and the first quarter of Fiscal Year 2016, we recorded $20.0 million and $14.8 million, respectively, in restructuring charges related to the Margin Acceleration Program.

Changes in the restructuring accrual during the first quarter of Fiscal Year 2016 are summarized below:

	Balance at		Charges/(Benefits)		Payments/Foreign Currency Exchange			Balance at
	June 30, 2015							September 30, 2015
2015 Margin Acceleration Program
Employee severance	$	20.0	$	14.2	$	(1.6	)	$	32.6
Facilities-related	—		0.6		(0.6		)	—
Pre-Fiscal Year 2012 Restructuring Plans
Facilities-related	0.3		—		(0.1		)	0.2
Total	$	20.3	$	14.8	$	(2.3	)	$	32.8

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Segment Information (Tables)

3 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Service Revenue, Direct Costs And Gross Profit On Service Revenue Of Reportable Segment

(in millions)	Three Months Ended
	September 30, 2015		September 30, 2014
Service revenue
CRS	$	410.2	$	384.9
PC	39.3		41.3
PI	62.6		65.5
Total service revenue	$	512.1	$	491.7
Direct costs
CRS	$	287.5	$	263.1
PC	20.2		21.6
PI	35.5		34.1
Total direct costs	$	343.2	$	318.8
Gross profit
CRS	$	122.7	$	121.8
PC	19.1		19.7
PI	27.1		31.4
Total gross profit	$	168.9	$	172.9

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Equity and Earnings Per Share (Tables)

3 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Computation Of Basic And Diluted Earnings Per Common Share

(in millions, except per share data)	Three Months Ended
	September 30, 2015		September 30, 2014
Net income attributable to common stock	$	24.9	$	37.1
Weighted average number of shares outstanding, used in computing basic earnings per share	55.0		54.7
Dilutive common stock equivalents	0.9		1.1
Weighted average number of shares outstanding used in computing diluted earnings per share	55.9		55.8
Basic earnings per share	$	0.45	$	0.68
Diluted earnings per share	$	0.45	$	0.67
Anti-dilutive equity instruments (excluded from the calculation of diluted earnings per share)	0.9		0.4

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Debt, Commitments, Contingencies And Guarantees

3 Months Ended

Sep. 30, 2015

Commitments, Contingencies And Guarantees [Abstract]

Commitments, Contingencies And Guarantees

COMMITMENTS, CONTINGENCIES AND GUARANTEES

As of September 30, 2015, our future minimum debt obligations related to the 2014 Credit Agreement and the Notes described in Note 8 above are as follows:

(in millions)	FY 2016		FY 2017		FY 2018		FY 2019		FY 2020		Thereafter		Total
Debt obligations (principal)	$	7.5	$	12.8	$	20.4	$	35.0	$	410.0	$	—	$	485.7

We have letter-of-credit agreements with banks totaling approximately $9.9 million guaranteeing performance under various operating leases and vendor agreements. Additionally, the borrowings under the 2014 Credit Agreement and the Notes are guaranteed by certain of our U.S. subsidiaries.

We periodically become involved in various claims and lawsuits that are incidental to our business. We are also regularly subject to, and are currently undergoing, audits by tax authorities in the United States and foreign jurisdictions for prior tax years. Although we believe our tax estimates are reasonable, and we intend to defend our positions through litigation if necessary, the final outcome of tax audits and related litigation is inherently uncertain and could be materially different than that reflected in our historical income tax provisions and accruals. Adverse outcomes of tax audits could also result in assessments of substantial additional taxes and/or fines or penalties relating to ongoing or future audits.

We believe, after consultation with counsel or other experts, that no matters currently pending would, in the event of an adverse outcome, either individually or in the aggregate, have a material impact on our consolidated financial position, results of operations, or liquidity.

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Income Taxes

3 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

We determine our global provision for corporate income taxes in accordance with FASB ASC 740, “Income Taxes.” We recognize our deferred tax assets and liabilities based upon the effect of temporary differences between the book and tax basis of recorded assets and liabilities. Further, we follow a methodology in which we identify, recognize, measure and disclose in our financial statements the effects of any uncertain tax return reporting positions that we have taken or expect to take. The methodology is based on the presumption that all relevant tax authorities possess full knowledge of those tax reporting positions, as well as all of the pertinent facts and circumstances. Our quarterly effective income tax rate reflects management’s estimates of our annual projected profitability in the various taxing jurisdictions in which we operate. Since the statutory tax rates differ in the jurisdictions in which we operate, changes in the distribution of profits and losses may have a significant impact on our effective income tax rate.

As of September 30, 2015, we had $35.8 million of gross unrecognized tax benefits, of which $24.9 million would impact the effective tax rate if recognized. As of June 30, 2015, we had $35.2 million of gross unrecognized tax benefits, of which $23.9 million would impact the effective tax rate if recognized. The reserves for unrecognized tax positions primarily relate to exposures for income tax matters such as changes in the jurisdiction in which income is taxable. The $0.6 million net increase in gross unrecognized tax benefits is primarily attributable to favorable positions we have taken, or expect to take, on tax returns.

As of September 30, 2015, we anticipate that the liability for unrecognized tax benefits for uncertain tax positions could decrease by approximately $15.1 million over the next 12 months primarily as a result of the expiration of statutes of limitations and settlements with tax authorities.

We recognize interest and penalties related to income tax matters in income tax expense. As of September 30, 2015 and June 30, 2015, $4.3 million and $4.2 million, respectively of gross interest and penalties were included in the liability for unrecognized tax benefits. For the three month periods ended September 30, 2015 and 2014, expenses of $0.2 million and $0.3 million, respectively, were recorded for interest and penalties related to tax matters.

We are subject to U.S. federal income tax, as well as income tax in multiple state, local and foreign jurisdictions. All material U.S. federal, state and local income tax matters have been concluded with the respective taxing authority through 2005. Substantially all material foreign income tax matters have been concluded for all years through 2001.

For the three months ended September 30, 2015 and 2014, we had effective income tax rates of 30.3% and 32.7%, respectively. The tax rates for these periods were lower than the expected statutory rate of 35% primarily as a result of the favorable effect of statutory tax rates applicable to income earned outside the United States on the projected annual effective tax rate.

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Credit Agreements

3 Months Ended

Sep. 30, 2015

Line of Credit Facility [Abstract]

Lines Of Credit

Master Financing Agreement

On June 12, 2015, we entered into a three year, interest free Master Financing Agreement for $7.1 million with General Electric Capital Corporation, (“GECC”), in conjunction with a software term license purchase. On June 30, 2015 we received the gross proceeds of $7.1 million from GECC. Repayment of the principal borrowed under the Master Financing Agreement is due annually on July 1st as follows:

• $1.4 million paid on or prior to July 1, 2015;

• $2.8 million paid on or prior to July 1, 2016; and

• $2.9 million paid on or prior to July 1, 2017.

As of September 30, 2015, we had $5.7 million of principal borrowed under the Master Financing Agreement.

2014 Credit Agreement

On October 15, 2014, we, certain of our subsidiaries, Bank of America, N.A. (“Bank of America”), as Administrative Agent, Swingline Lender and L/C Issuer, Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPFS”), J.P. Morgan Securities LLC (“JPM Securities”), 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. (“JPMorgan”), HSBC and US Bank, as Joint Syndication Agents, and the other lenders party thereto entered into an amended and restated credit agreement (the “2014 Credit Agreement”) providing for a five-year term loan and revolving credit facility in the principal amount of up to $500.0 million (collectively, the “Loan Amount”), plus additional amounts of up to $300.0 million of loans to be made available upon request of the Company subject to specified terms and conditions.

The 2014 Credit Agreement amends and restates the amended and restated credit agreement dated as of March 22, 2013, by and among us, certain of our subsidiaries, Bank of America, as Administrative Agent, Swingline Lender and L/C Issuer, MLPFS, JPM Securities, HSBC, and US Bank as Joint Lead Arrangers and Joint Book Managers, JPMorgan, HSBC and US Bank, as Joint Syndication Agents, and the other lenders party thereto (the “2013 Credit Agreement”).

The loan facility available under the 2014 Credit Agreement consists of a term loan facility and a revolving credit facility. The principal amount of up to $200.0 million of the Loan Amount is available through the term loan facility, and the principal amount of up to $300.0 million of the Loan Amount is available through the revolving credit facility. A portion of the revolving credit facility is available for swingline loans of up to a sublimit of $100.0 million and for the issuance of standby letters of credit of up to a sublimit of $10.0 million.

The 2014 Credit Agreement is intended to provide funds for (i) stock repurchases, (ii) the issuance of letters of credit and (iii) our and our subsidiaries' other general corporate purposes, including permitted acquisitions.

As of September 30, 2015, we had $180.0 million of principal borrowed under the revolving credit facility and $200.0 million of principal borrowed under the term loan. As of June 30, 2015, we had $50.0 million of principal borrowed under the revolving credit facility and $200.0 million of principal borrowed under the term loan. The outstanding amounts are presented net of debt issuance cost of approximately $2.4 million and $2.5 million in our consolidated balance sheets at September 30, 2015 and June 30, 2015, respectively. As of September 30, 2015, we had borrowing availability of $120.0 million under the revolving credit facility.

The obligations under the 2014 Credit Agreement are guaranteed by certain of our material domestic subsidiaries, and the obligations, if any, of any foreign designated borrower are guaranteed by us and certain of our material domestic subsidiaries.

Borrowings (other than swingline loans) under the 2014 Credit Agreement bear interest, at our determination, at a rate based on either (a) LIBOR plus a margin (not to exceed a per annum rate of 1.750%) based on a ratio of consolidated funded debt to consolidated earnings before interest, taxes, depreciation and amortization (“EBITDA”) (the “Leverage Ratio”) or (b) the highest of (i) prime, (ii) the federal funds rate plus 0.500%, and (iii) the one month LIBOR rate plus 1.000% (such highest rate, the “Alternate Base Rate”), plus a margin (not to exceed a per annum rate of 0.750%) based on the Leverage Ratio. Swingline loans in U.S. dollars bear interest calculated at the Alternate Base Rate plus a margin (not to exceed a per annum rate of 0.750%). Loans outstanding under the 2014 Credit Agreement may be prepaid at any time in whole or in part without premium or penalty, other than customary breakage costs, if any, subject to the terms and conditions contained in the 2014 Credit Agreement. The 2014 Credit Agreement terminates and any outstanding loans under it mature and must be repaid on October 15, 2019.

Repayment of the principal borrowed under the revolving credit facility (other than a swingline loan) is due on October 15, 2019. A swingline loan under the 2014 Credit Agreement generally must be paid ten business days after the loan is made. Repayment of principal borrowed under the term loan facility is as follows, with the final payment of all amounts outstanding, plus accrued interest, being due on October 15, 2019:

• 1.25% by quarterly term loan amortization payments to be made commencing December 2015 and made on or prior to September 30, 2017;

• 2.50% by quarterly term loan amortization payments to be made after September 30, 2017, but on or prior to September 30, 2018;

• 5.00% by quarterly term loan amortization payments to be made after September 30, 2018, but prior to October 15, 2019; and

• 60.00% on October 15, 2019.

Interest due under the revolving credit facility (other than a swingline loan) and the term loan facility must be paid quarterly for borrowings with an interest rate determined with reference to the Alternate Base Rate. Interest must be paid on the last day of the interest period selected by the Company for borrowings determined with reference to LIBOR; provided that for interest periods of longer than three months, interest is required to be paid every three months. Interest under U.S. dollar swingline loans at the alternate base rate is payable quarterly.

Our obligations under the 2014 Credit Agreement may be accelerated upon the occurrence of an event of default under the 2014 Credit Agreement, which includes customary events of default, including payment defaults, defaults in the performance of affirmative and negative covenants, the inaccuracy of representations or warranties, bankruptcy and insolvency related defaults, cross defaults to material indebtedness, defaults relating to such matters as ERISA and judgments, and a change of control default.

The 2014 Credit Agreement contains negative covenants applicable to us and our subsidiaries, including financial covenants requiring us to comply with maximum leverage ratios and minimum interest coverage ratios, as well as restrictions on liens, investments, indebtedness, fundamental changes, acquisitions, dispositions of property, making specified restricted payments (including stock repurchases that would result in our exceeding an agreed-to leverage ratio), transactions with affiliates, and other restrictive covenants. As of September 30, 2015, we were in compliance with all covenants under the 2014 Credit Agreement.

In connection with the 2014 Credit Agreement, we agreed to pay a commitment fee on the revolving loan commitment calculated as a percentage of the unused amount of the revolving loan commitment at a per annum rate of up to 0.300% (based on the Leverage Ratio). To the extent there are letters of credit outstanding under the 2014 Credit Agreement, we will pay letter of credit fees plus a fronting fee and additional charges. We agreed to pay Bank of America (i) for its own account, an arrangement fee, (ii) for the account of each of the lenders, an upfront fee and (iii) for its own account, an annual agency fee.

In September 2011, we entered into an interest rate swap agreement which hedged $100.0 million of principal under our prior debt obligations and carries a fixed interest rate of 1.30%. In September 2015, the interest rate swap agreement matured and the related accumulated other comprehensive income was reclassified to net income during the three months ended September 30, 2015.

In May 2013, we entered into another interest rate swap agreement and hedged an additional principal amount of $100.0 million under the 2013 Credit Agreement with a fixed interest rate of 0.73%. The interest rate swap agreement now hedges $100.0 million of principal under our 2014 Credit Agreement. As of September 30, 2015, our debt under the 2014 Credit Agreement, including the $100.0 million of principal hedged with both interest swap agreements, carried an average annualized interest rate of 1.49%. These interest rate hedges were deemed to be fully effective in accordance with FASB ASC 815, “Derivatives and Hedging” (“ASC 815”) and, as such, unrealized gains and losses related to these derivatives are recorded as other comprehensive income in our consolidated balance sheets.

On October 1, 2015, we entered into a two year interest rate swap agreement effective September 30, 2016 and hedged an additional principal amount of $100.0 million under the 2014 Credit Agreement with a fixed interest rate of 1.104%.

Note Purchase Agreement

On July 25, 2013, we issued $100.0 million principal amount of 3.11% senior notes due July 25, 2020 (the “Notes”) for aggregate gross proceeds of $100.0 million in a private placement solely to accredited investors. The Notes were issued pursuant to a Note Purchase Agreement entered into by us with certain institutional investors on June 25, 2013 (the “Note Purchase Agreement”). Proceeds from the Notes were used to pay down $100.0 million of principal borrowed under the revolving credit facility of the 2013 Credit Agreement, as described below. We will pay interest on the outstanding balance of the Notes at a rate of 3.11% per annum, payable semi-annually on January 25 and July 25 of each year until the principal on the Notes shall have become due and payable. We may, at our option, upon notice and subject to the terms of the Note Purchase Agreement, prepay at any time all or part of the Notes in an amount not less than 10% of the aggregate principal amount of the Notes then outstanding, plus a Make-Whole Amount (as defined in the Note Purchase Agreement). The Notes become due and payable on July 25, 2020, unless payment is required to be made earlier under the terms of the Note Purchase Agreement.

The Note Purchase Agreement includes operational and financial covenants, with which we are required to comply, including, among others, maintenance of certain financial ratios and restrictions on additional indebtedness, liens and dispositions. As of September 30, 2015, we were in compliance with all covenants under the Note Purchase Agreement.

In connection with the Note Purchase Agreement, certain of our subsidiaries entered into a Subsidiary Guaranty, pursuant to which such subsidiaries guaranteed our obligations under the Notes and the Note Purchase Agreement.

As of September 30, 2015, there was $100.0 million in aggregate principal amount outstanding under the Notes. The outstanding amounts are presented net of debt issuance cost of approximately $0.3 million in our consolidated balance sheets.

Receivable Purchase Agreement

On February 19, 2013, we entered into a receivables purchase agreement (the “Receivable Agreement”) with JPMorgan Chase Bank, N.A. (“JPMorgan”). Under the Receivable Agreement, we sell to JPMorgan or other investors on an ongoing basis certain of our trade receivables, together with ancillary rights and the proceeds thereof, which arise under contracts with a client, or its subsidiaries or affiliates. The Receivable Agreement includes customary representations and covenants on behalf of us, and may be terminated by either us or JPMorgan upon five business days advance notice. The Receivable Agreement provides a mechanism for accelerating the receipt of cash due on outstanding receivables. We account for the transfer of our receivables with respect to which we have satisfied the applicable revenue recognition criteria in accordance with FASB ASC 860, “Transfers and Servicing.” If we have not satisfied the applicable revenue recognition criteria for the underlying sales transaction, the transfer of the receivable is accounted for as a financing activity in accordance with FASB ASC 470, “Debt.” The accounts receivable and short-term debt balances are derecognized from our consolidated balance sheets at the earlier of the factored receivable’s due date or when all of the revenue recognition criteria are met for those billed services. During the three months ended September 30, 2015, we transferred approximately $40.0 million of trade receivables. As of September 30, 2015 and June 30, 2015, no transfers were accounted for as a financing activity.

2013 Credit Agreement

The 2013 Credit Agreement provided for a five-year term loan of $200.0 million and a revolving credit facility in the amount of up to $300.0 million, plus additional amounts of up to $200.0 million of loans to be made available upon our request subject to specified terms and conditions. A portion of the revolving credit facility was available for swingline loans of up to a sublimit of $75.0 million and for the issuance of standby letters of credit of up to a sublimit of $10.0 million. The 2013 Credit Agreement was amended and restated on October 15, 2014 as discussed above.

Our obligations under the 2013 Credit Agreement were guaranteed by certain of our material domestic subsidiaries, and the obligations, if any, of any foreign designated borrower were guaranteed by us and certain of our material domestic subsidiaries.

Borrowings (other than swingline loans) under the 2013 Credit Agreement bore interest, at our determination, at a rate based on either (i) LIBOR plus a margin (not to have exceeded a per annum rate of 1.750%) based on the Leverage Ratio or (ii) the Alternate Base Rate, plus a margin (not to have exceeded a per annum rate of 0.750%) based on the Leverage Ratio. Swingline loans in U.S. dollars bore interest calculated at the Alternate Base Rate plus a margin (not to have exceeded a per annum rate of 0.750%).

On October 15, 2014, all outstanding amounts under the 2013 Credit Agreement were fully repaid with the proceeds from the 2014 Credit Agreement.

Additional Lines of Credit

We have an unsecured line of credit with JP Morgan UK in the amount of $4.5 million that bears interest at an annual rate ranging from 2.00% to 4.00%. We entered into this line of credit to facilitate business transactions. At September 30, 2015, we had $4.5 million available under this line of credit.

We have a cash pool facility with RBS Nederland, NV in the amount of 4.0 million Euros that bears interest at an annual rate ranging between 2.00% and 4.00%. We entered into this line of credit to facilitate business transactions. At September 30, 2015, we had 4.0 million Euros available under this line of credit.

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Derivatives

3 Months Ended

Sep. 30, 2015

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 managed 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.

• 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. Our interest rate contracts are designated as hedging instruments.

• Our foreign currency hedging program is a cash flow hedge program designed to mitigate foreign currency exchange rate volatility due to the foreign currency exchange exposure related to intercompany and significant external transactions. This program also intends to reduce the impact of foreign exchange rate risk on our direct costs and our service revenues. 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.

We also enter into other economic hedges to mitigate foreign currency exchange 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 September 30, 2015 and June 30, 2015. The gross position of all asset and liability amounts is reported in other current assets, other assets, other current liabilities, and other liabilities in our consolidated balance sheets.

(in millions)	September 30, 2015					June 30, 2015
	Notional Amount		Asset (Liability)			Notional Amount		Asset (Liability)
Derivatives designated as hedging instruments under ASC 815
Derivatives in an asset position:
Interest rate contracts	$	100.0	$	—		$	100.0	$	0.8
Foreign exchange contracts	43.1		1.0			140.6		2.9
Derivatives in a liability position:
Interest rate contracts	—		—			25.0		—
Foreign exchange contracts	137.6		(4.0		)	56.0		(4.6		)
Cross-currency swap contracts	—		—			19.0		(2.7		)
Total designated derivatives	$	280.7	$	(3.0	)	$	340.6	$	(3.6	)
Derivatives not designated as hedging instruments under ASC 815
Derivatives in an asset position:
Foreign exchange contracts	$	49.1	$	0.3		$	46.0	$	0.6
Derivatives in a liability position:
Foreign exchange contracts	78.3		(2.2		)	82.0		(1.8		)
Total non-designated derivatives	$	127.4	$	(1.9	)	$	128.0	$	(1.2	)
Total derivatives	$	408.1	$	(4.9	)	$	468.6	$	(4.8	)

Under certain circumstances, such as the occurrence of significant differences between actual cash payments and forecasted cash payments, the ASC 815 programs could be deemed ineffective. 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 sheets, net of deferred taxes, and any ineffective portion to miscellaneous income (expense), net in our consolidated statements of income. During the three months ended September 30, 2015 and 2014, we recorded losses of $1.0 million and $0.7 million, respectively, in miscellaneous income (expense), net in our consolidated statements of income to reflect ineffective portions of hedges.

The amounts recognized in other comprehensive income (loss), net of taxes, are presented below:

(in millions)	Three Months Ended
	September 30, 2015			September 30, 2014
Derivatives designated as hedging instruments under ASC 815
Interest rate contracts	$	(0.4	)	$	0.5
Foreign exchange contracts	(1.8		)	(7.7		)
Total designated derivatives	$	(2.2	)	$	(7.2	)

The unrealized gain (loss) on derivative instruments is net of $0.7 million and $4.1 million taxes, respectively, for the three months ended September 30, 2015 and 2014. The estimated net amount of the existing losses that are expected to be reclassified into earnings within the next twelve months is $3.3 million.

The change in the fair value of derivatives not designated as hedging instruments under ASC 815 is recorded to miscellaneous (expense) income, net in our consolidated statements of income. The total gains and losses related to foreign exchange contracts not designated as hedging instruments were losses of $2.8 million and $7.5 million for the three months ended September 30, 2015 and 2014, respectively. The unrealized losses recognized are presented below:

(in millions)	Three Months Ended
	September 30, 2015			September 30, 2014
Derivatives not designated as hedging instruments under ASC 815
Foreign exchange contracts	$	(0.7	)	$	(2.7	)
Total non-designated derivative unrealized loss, net	$	(0.7	)	$	(2.7	)

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Income Tax Holiday [Line Items]
Gross unrecognized tax benefits	$ 35.8		$ 35.2
Gross unrecognized tax benefits that would impact the effective tax rate if recognized	24.9		23.9
Net change in liability for unrecognized tax benefits for uncertain tax positions	0.6
Anticipated liability decrease for unrecognized tax benefits for uncertain tax positions	15.1
Interest and penalties included in liability for unrecognized tax benefits	4.3		$ 4.2
Interest and penalties included in income tax expense	$ 0.2	$ 0.3
Effective income tax rate	30.30%	32.70%

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Stock-Based Compensation (Tables)

3 Months Ended

Sep. 30, 2015

Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]

Classification Of Compensation Expense Within Consolidated Statements Of Income

(in millions)	Three Months Ended
	September 30, 2015		September 30, 2014
Direct costs	$	1.2	$	1.0
Selling, general and administrative	3.9		3.1
Total stock-based compensation	$	5.1	$	4.1

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Fair Value Measurements (Tables)

3 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Schedule Of Fair Value Hierarchy, Assets (Liabilities) Carried At Fair Value

(in millions)	Level 1		Level 2			Level 3			Total
Contingent consideration	$	—	$	—		$	(12.0	)	$	(12.0	)
Foreign currency exchange contracts	—		(4.9		)	—			(4.9		)
Total	$	—	$	(4.9	)	$	(12.0	)	$	(16.9	)

(in millions)	Level 1		Level 2			Level 3			Total
Contingent consideration	$	—	$	—		$	(7.3	)	$	(7.3	)
Interest rate derivative instruments	—		0.7			—			0.7
Foreign currency exchange contracts	—		(5.6		)	—			(5.6		)
Total	$	—	$	(4.9	)	$	(7.3	)	$	(12.2	)

Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block]

The recurring Level 3 fair value measurements of our contingent consideration liability include the following significant unobservable inputs:

	ClinIntel
Unobservable Input	Range
Discount rate	4%
Probability of achieving financial targets	100%
Projected period of payment	August 2016

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following table provides a summary of the change in our valuation of the fair value of the contingent consideration, which was determined by Level 3 inputs:

(in millions)	Fair Value
Balance at June 30, 2015	$	7.3
Change in fair value of contingent consideration	5.0
Effect of changes in exchange rates used for translation	(0.3		)
Balance at September 30, 2015	$	12.0

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Derivatives (Schedule Of Change In The Fair Value Of Derivatives Designated As Hedging Instruments) (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax	$ (0.7)	$ (4.1)
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net	1.0	(0.7)
Estimated net amount of existing losses that are expected to be reclassified into earnings	3.3
Derivatives Designated As Hedging Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments, gain (loss) recognized in other comprehensive income, effective portion, net, total	(2.2)	(7.2)
Interest Rate Contract [Member] | Derivatives Designated As Hedging Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments, gain (loss) recognized in other comprehensive income, effective portion, net, total	(0.4)	0.5
Foreign Exchange Contracts [Member] | Derivatives Designated As Hedging Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments, gain (loss) recognized in other comprehensive income, effective portion, net, total	$ (1.8)	$ (7.7)

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Net Income (Loss) Attributable to Parent	$ 24.9	$ 37.1
Unrealized gain (loss) on derivative instruments, net of taxes	(2.2)	(7.2)
Foreign currency translation adjustment	(15.0)	(38.2)
Total comprehensive income (loss)	$ 7.7	$ (8.3)

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Stock-Based Compensation

3 Months Ended

Sep. 30, 2015

Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

We account for stock-based compensation according to FASB ASC 718, “Compensation—Stock Compensation.” The classification of compensation expense within the consolidated statements of income is presented in the following table:

(in millions)	Three Months Ended
	September 30, 2015		September 30, 2014
Direct costs	$	1.2	$	1.0
Selling, general and administrative	3.9		3.1
Total stock-based compensation	$	5.1	$	4.1

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Acquisitions, Goodwill, and Other Intangible Assets (Details) - USD ($) $ in Millions	Oct. 03, 2014	Sep. 30, 2015	Jun. 30, 2015
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Fair value of contingent consideration		$ 12.0	$ 7.3
Goodwill		$ 346.9	$ 354.9
ClinIntel Acquisition [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Cash paid, net of cash acquired	$ 8.8
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	$ 16.2

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Debt, Commitments, Contingencies And Guarantees Schedule of Contractual Obligation (Details) - USD ($) $ in Millions	Sep. 30, 2015	Jun. 12, 2015
Contractual Obligation [Abstract]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	$ 7.5	$ 1.4
Long-term Debt, Maturities, Repayments of Principal in Year Two	12.8	2.8
Long-term Debt, Maturities, Repayments of Principal in Year Three	20.4	2.9
Long-term Debt, Maturities, Repayments of Principal in Year Four	35.0
Long-term Debt, Maturities, Repayments of Principal in Year Five	410.0
Long-term Debt, Maturities, Repayments of Principal after Year Five	0.0
Long-term Debt, Gross	$ 485.7	$ 7.1

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Comprehensive Income (Tables)

3 Months Ended

Sep. 30, 2015

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Schedule Of Comprehensive Income

(in millions)	Foreign Currency			Unrealized Gain/Loss on Derivatives			Total
Balance as of June 30, 2015	$	(96.2	)	$	0.3		$	(95.9	)
Other comprehensive loss before reclassifications	(15.0		)	(4.1		)	(19.1		)
Loss reclassified from accumulated other comprehensive income	—			1.9			1.9
Net current-period other comprehensive loss	$	(15.0	)	$	(2.2	)	$	(17.2	)
Balance as of September 30, 2015	$	(111.2	)	$	(1.9	)	$	(113.1	)

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)

	Three Months Ended					Affected Line in the Consolidated Statements of Income
(in millions)	September 30, 2015			September 30, 2014
Interest rate contracts	$	(0.2	)	$	0.4	Interest expense, net
Foreign exchange contracts	(0.2		)	—		Service Revenue
Foreign exchange contracts	(2.8		)	1.3		Direct Costs
Cross-currency swap contracts	—			0.1		Miscellaneous income (expense), net
Total	$	(3.2	)	$	1.8