Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company is managed through two reportable segments: Clinical Development Services and Phase I Services. Clinical Development Services offers a variety of services, including full-service global studies, as well as ancillary services such as clinical monitoring, investigator recruitment, patient recruitment, data management, study reports to assist customers with their drug development process, and specialized consulting services. Phase I Services focuses on clinical development services for Phase I trials that include scientific exploratory medicine, first-in-human studies through proof-of-concept stages, and support for Phase I studies in established compounds.

The Company’s Chief Operating Decision Maker ("CODM") reviews segment performance and allocates resources based upon segment revenue and segment contribution margin. Inter-segment revenue is eliminated from the segment reporting presented to the CODM and is not included in the segment revenue presented in the table below. Revenue, direct costs, and contribution margin for each of the Company's segments were as follows (in thousands):

	Three Months Ended March 31,
	2017		2016
Revenue:
Clinical Development Services	$	249,727	$	245,973
Phase I Services	2,351		3,024
Segment revenue	252,078		248,997
Reimbursable out-of-pocket expenses not allocated to segments	129,840		164,090
Total revenue	$	381,918	$	413,087
Direct costs:
Clinical Development Services	$	152,620	$	149,314
Phase I Services	2,215		2,744
Segment direct costs	154,835		152,058
Reimbursable out-of-pocket expenses not allocated to segments	129,840		164,090
Direct costs and reimbursable out-of-pocket expenses	$	284,675	$	316,148
Segment contribution margin:
Clinical Development Services	$	97,107	$	96,659
Phase I Services	136		280
Segment contribution margin	97,243		96,939
Less expenses not allocated to segments:
Selling, general, and administrative	44,934		43,479
Restructuring, CEO transition and other costs	1,927		6,038
Transaction expenses	2		561
Depreciation and amortization	15,628		14,353
Consolidated income from operations	$	34,752	$	32,508

The CODM reviews the Company's assets on a consolidated basis. The Company does not allocate assets to its reportable segments as they are not included in the review performed by the CODM for purposes of assessing segment performance or allocating resources.