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Segments
6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
Segments

15. Segments

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

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Service revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Development

 

$

890,118

 

 

$

786,397

 

 

$

1,727,597

 

 

$

1,535,926

 

Integrated Healthcare Services

 

 

276,946

 

 

 

287,969

 

 

 

547,489

 

 

 

568,414

 

Total service revenues

 

 

1,167,064

 

 

 

1,074,366

 

 

 

2,275,086

 

 

 

2,104,340

 

Costs of revenue, service costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Development

 

 

529,075

 

 

 

453,450

 

 

 

1,013,715

 

 

 

890,872

 

Integrated Healthcare Services

 

 

211,564

 

 

 

230,395

 

 

 

427,490

 

 

 

454,800

 

Total costs of revenue, service costs

 

 

740,639

 

 

 

683,845

 

 

 

1,441,205

 

 

 

1,345,672

 

Selling, general and administrative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Development

 

 

174,093

 

 

 

156,777

 

 

 

337,646

 

 

 

311,885

 

Integrated Healthcare Services

 

 

39,559

 

 

 

38,845

 

 

 

76,250

 

 

 

76,767

 

General corporate and unallocated

 

 

36,916

 

 

 

30,276

 

 

 

62,188

 

 

 

56,852

 

Total selling, general and administrative

 

 

250,568

 

 

 

225,898

 

 

 

476,084

 

 

 

445,504

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Development

 

 

186,950

 

 

 

176,170

 

 

 

376,236

 

 

 

333,169

 

Integrated Healthcare Services

 

 

25,823

 

 

 

18,729

 

 

 

43,749

 

 

 

36,847

 

General corporate and unallocated

 

 

(36,916

)

 

 

(30,276

)

 

 

(62,188

)

 

 

(56,852

)

Restructuring costs

 

 

(25,114

)

 

 

(6,234

)

 

 

(28,258

)

 

 

(11,558

)

Total income from operations

 

$

150,743

 

 

$

158,389

 

 

$

329,539

 

 

$

301,606

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Depreciation and amortization expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Development

 

$

26,752

 

 

$

23,553

 

 

$

52,982

 

 

$

47,429

 

Integrated Healthcare Services

 

 

4,272

 

 

 

5,171

 

 

 

8,529

 

 

 

10,379

 

General corporate and unallocated

 

 

1,017

 

 

 

1,287

 

 

 

2,254

 

 

 

2,532

 

Total depreciation and amortization expense

 

$

32,041

 

 

$

30,011

 

 

$

63,765

 

 

$

60,340