Segment Information

3 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Information

NOTE 6 – 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").

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
	September 30, 2011		September 30, 2010
Service revenue
CRS	$	235,409	$	231,639
PCMS		35,648		28,335
Perceptive		43,678		35,846
Total service revenue	$	314,735	$	295,820
Direct costs
CRS	$	172,750	$	150,983
PCMS		20,978		17,222
Perceptive		28,446		21,439
Total direct costs	$	222,174	$	189,644
Gross profit
CRS	$	62,659	$	80,656
PCMS		14,670		11,113
Perceptive		15,232		14,407
Total gross profit	$	92,561	$	106,176