Segment Information

9 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

PAREXEL is managed through three business segments:

• Clinical Research Services (CRS) constitutes our core business and includes Phase I-IV clinical trials management and biostatistics, data management and clinical pharmacology, as well as related medical advisory and investigator site services.

• PAREXEL Consulting and Medical Communication Services (PCMS) provides technical expertise and advice in such areas as drug development, regulatory affairs, product pricing and reimbursement, and strategic compliance. It also provides a full spectrum of market development, product development, and targeted communications services in support of product launch. Our PCMS consultants identify alternatives and propose solutions to address client issues associated with product development, registration, and commercialization.

• Perceptive Informatics (Perceptive) provides information technology solutions designed to improve the product development processes of our clients. Perceptive offers a portfolio of products and services that includes medical imaging services, ClinPhone® randomization and trial supply management (“RTSM”), DataLabs® electronic data capture (“EDC”), IMPACT® and TrialWorks® clinical trials management systems (“CTMS”), web-based portals, systems integration, and electronic patient reported outcomes (“ePRO”). These services are often bundled together and integrated with other applications to provide an eClinical solution for our clients.

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 external and internal contractual arrangements. Inter-segment transactions are not included in service revenue. Furthermore, PAREXEL has a global infrastructure supporting its business segments, and therefore, assets are not identified by reportable segment.

(in thousands)	Three Months Ended				Nine Months Ended
	March 31, 2012		March 31, 2011		March 31, 2012		March 31, 2011
Service revenue
CRS	$	263,372	$	227,006	$	746,652	$	690,009
PCMS	43,301		34,136		117,404		94,484
Perceptive	49,319		40,254		139,841		117,082
Total service revenue	$	355,992	$	301,396	$	1,003,897	$	901,575
Direct costs
CRS	$	188,520	$	152,149	$	539,111	$	460,654
PCMS	25,101		20,471		68,663		56,842
Perceptive	27,824		22,985		83,944		67,242
Total direct costs	$	241,445	$	195,605	$	691,718	$	584,738
Gross profit
CRS	$	74,852	$	74,857	$	207,541	$	229,355
PCMS	18,200		13,665		48,741		37,642
Perceptive	21,495		17,269		55,897		49,840
Total gross profit	$	114,547	$	105,791	$	312,179	$	316,837