Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2018 | |
Document And Entity Information [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q3 |
Trading Symbol | ICLR |
Entity Registrant Name | ICON PLC |
Entity Central Index Key | 1,060,955 |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||||
Cash and cash equivalents | $ 426,221 | $ 282,859 | $ 209,805 | $ 192,541 |
Short term investments - available for sale | 65,261 | 77,589 | ||
Accounts receivable, net | 373,264 | 379,501 | ||
Unbilled revenue | 338,523 | 268,509 | ||
Other receivables | 38,501 | 33,798 | ||
Prepayments and other current assets | 42,314 | 34,377 | ||
Income taxes receivable | 21,457 | 24,385 | ||
Total current assets | 1,305,541 | 1,101,018 | ||
Other Assets: | ||||
Property, plant and equipment, net | 154,548 | 163,051 | ||
Goodwill | 760,884 | 769,058 | $ 616,088 | |
Other non-current assets | 15,694 | 15,393 | ||
Non-current income taxes receivable | 18,977 | 18,396 | ||
Non-current deferred tax asset | 15,922 | 8,074 | ||
Intangible assets | 54,162 | 71,628 | ||
Total Assets | 2,325,728 | 2,146,618 | ||
Current Liabilities: | ||||
Accounts payable | 15,306 | 18,590 | ||
Payments on account | 353,636 | 298,992 | ||
Other liabilities | 216,959 | 233,503 | ||
Income taxes payable | 16,239 | 14,973 | ||
Total current liabilities | 602,140 | 566,058 | ||
Other Liabilities: | ||||
Non-current bank credit lines and loan facilities | 349,169 | 348,888 | ||
Non-current other liabilities | 16,670 | 17,111 | ||
Non-current government grants | 902 | 966 | ||
Non-current income taxes payable | 14,773 | 14,879 | ||
Non-current deferred tax liability | 7,590 | 7,716 | ||
Commitments and contingencies | 0 | 0 | ||
Total Liabilities | 991,244 | 955,618 | ||
Shareholders' Equity: | ||||
Common stock, value, issued | 4,689 | 4,664 | ||
Additional paid‑in capital | 521,191 | 481,337 | ||
Other undenominated capital | 947 | 912 | ||
Accumulated other comprehensive income | (64,526) | (38,713) | ||
Retained earnings | 872,183 | 742,800 | ||
Total Shareholders' Equity | 1,334,484 | 1,191,000 | ||
Total Liabilities and Shareholders' Equity | $ 2,325,728 | $ 2,146,618 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - € / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in EUR per share) | € 0.06 | € 0.06 |
Ordinary shares, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Ordinary shares, shares issued (in shares) | 54,435,930 | 54,081,601 |
Ordinary shares, shares outstanding (in shares) | 54,435,930 | 54,081,601 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue: | ||||
Revenue | $ 655,017 | $ 596,169 | $ 1,916,752 | $ 1,766,016 |
Reimbursable expenses | (155,846) | (462,716) | ||
Total Revenue | 655,017 | 440,323 | 1,916,752 | 1,303,300 |
Costs and expenses: | ||||
Direct costs, reimbursable expenses | 179,642 | 0 | 507,708 | 0 |
Direct costs, other | 279,554 | 259,672 | 831,306 | 760,175 |
Selling, general and administrative expense | 80,819 | 79,433 | 242,670 | 241,655 |
Depreciation and amortization | 17,062 | 16,280 | 51,006 | 45,123 |
Restructuring | 0 | 0 | 12,490 | 7,753 |
Total costs and expenses | 557,077 | 355,385 | 1,645,180 | 1,054,706 |
Income from operations | 97,940 | 84,938 | 271,572 | 248,594 |
Interest income | 1,314 | 632 | 3,154 | 1,766 |
Interest expense | (3,201) | (3,177) | (10,298) | (9,535) |
Income before provision for income taxes | 96,053 | 82,393 | 264,428 | 240,825 |
Provision for income taxes | (11,526) | (8,239) | (29,935) | (30,445) |
Net income | $ 84,527 | $ 74,154 | $ 234,493 | $ 210,380 |
Net income per Ordinary Share: | ||||
Basic (USD per share) | $ 1.55 | $ 1.37 | $ 4.33 | $ 3.89 |
Diluted (USD per share) | $ 1.54 | $ 1.35 | $ 4.27 | $ 3.84 |
Weighted average number of Ordinary Shares outstanding: | ||||
Basic (in shares) | 54,368,656 | 54,109,566 | 54,134,639 | 54,110,022 |
Diluted (in shares) | 54,901,404 | 54,756,184 | 54,888,151 | 54,840,112 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 234,493 | $ 210,380 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Loss on disposal of property, plant and equipment | 9 | 185 |
Depreciation expense | 35,432 | 31,748 |
Amortization of intangibles | 15,574 | 13,375 |
Amortization of government grants | (35) | (33) |
Interest on short term investments | (1,094) | (887) |
Stock compensation expense | 24,974 | 26,961 |
Amortization of gain on interest rate hedge | (698) | (696) |
Amortization of financing costs | 671 | 408 |
Deferred taxes | (1,448) | 1,579 |
Changes in assets and liabilities: | ||
Decrease in accounts receivable | 4,935 | 90,205 |
Increase in unbilled revenue | (73,648) | (47,707) |
Decrease/(increase) in other receivables | 4,919 | (5,560) |
Increase in prepayments and other current assets | (8,591) | (2,169) |
Increase in other non-current assets | (323) | (1,219) |
Decrease in payments on account | (11,567) | (40,389) |
Decrease in other current liabilities | (14,422) | 2,449 |
Decrease in other non-current liabilities | (589) | (3,682) |
Increase in income taxes payable | 2,215 | 792 |
Decrease in accounts payable | (3,031) | 1,444 |
Net cash provided by operating activities | 207,776 | 277,184 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (28,387) | (23,690) |
Purchase of subsidiary undertakings | (1,645) | (144,131) |
Cash acquired with subsidiary undertaking | 0 | 18,634 |
Purchase of short term investments | (85,866) | (36,451) |
Sale of short term investments | 98,857 | 22,728 |
Net cash used in investing activities | (17,041) | (162,910) |
Cash flows from financing activities: | ||
Financing costs | (823) | |
Proceeds from exercise of equity compensation | 14,930 | 7,825 |
Share issue costs | (13) | (13) |
Repurchase of ordinary shares | (56,960) | (108,106) |
Share repurchase costs | (46) | (86) |
Net cash used in financing activities | (42,912) | (100,380) |
Effect of exchange rate movements on cash | (4,461) | 3,370 |
Net increase in cash and cash equivalents | 143,362 | 17,264 |
Cash and cash equivalents at beginning of period | 282,859 | 192,541 |
Cash and cash equivalents at end of period | $ 426,221 | $ 209,805 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity and Comprehensive Income - USD ($) $ in Thousands | Total | Ordinary Shares | Additional Paid-in Capital | Other Undenominated Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Cumulative effect adjustment from adoption of ASC 606 | Accounting Standards Update 2014-09 | $ (48,104) | $ (48,104) | ||||
Balance, beginning balance (in shares) at Dec. 31, 2017 | 54,081,601 | 54,081,601 | ||||
Balance, beginning balance (in shares) (Accounting Standards Update 2014-09) at Dec. 31, 2017 | 54,081,601 | |||||
Beginning balance at Dec. 31, 2017 | $ 1,191,000 | $ 4,664 | $ 481,337 | $ 912 | $ (38,713) | 742,800 |
Beginning balance (Accounting Standards Update 2014-09) at Dec. 31, 2017 | 1,142,896 | $ 4,664 | 481,337 | 912 | (38,713) | 694,696 |
Net income | 234,493 | 234,493 | ||||
Currency translation adjustment | (19,069) | (19,069) | ||||
Currency impact of long term funding (net of tax) | (4,137) | (4,137) | ||||
Unrealized capital gain – investments | (429) | (429) | ||||
Amortization of interest rate hedge | (698) | (698) | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (1,480) | $ (1,480) | ||||
Fair value of cash flow hedge (net of tax) | (1,480) | |||||
Total comprehensive income | 208,680 | 234,493 | ||||
Exercise of share options (in shares) | 355,216 | |||||
Exercise of share options | 14,895 | $ 25 | 14,870 | |||
Issue of restricted share units (in shares) | 484,256 | |||||
Issue of restricted share units | 35 | $ 35 | ||||
Non-cash stock compensation expense | 24,997 | 24,997 | ||||
Share issuance costs | (13) | $ (13) | ||||
Share repurchase program (in shares) | (485,143) | |||||
Share repurchase program | (56,960) | $ (35) | $ 35 | (56,960) | ||
Share repurchase costs | $ (46) | (46) | ||||
Balance, ending balance (in shares) at Sep. 30, 2018 | 54,435,930 | |||||
Ending balance at Sep. 30, 2018 | $ 1,334,484 | $ 872,183 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These condensed consolidated financial statements which have been prepared in accordance with United States Generally Accepted Accounting Principles (“US GAAP”) have not been audited. The condensed consolidated financial statements reflect all adjustments, which are, in the opinion of management, necessary to present a fair statement of the operating results and financial position for the periods presented. The preparation of the condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures in the condensed consolidated financial statements. Actual results could differ from those estimates. The condensed consolidated financial statements should be read in conjunction with the accounting policies and notes to the consolidated financial statements included in ICON’s Form 20-F for the year ended December 31, 2017 . Operating results for the nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal period ending December 31, 2018 . |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant accounting policies The Company adopted Accounting Standards Codification (ASC) 606 ‘ Revenue from Contracts with Customers’ , with a date of initial application of January 1, 2018. The revenue recognition accounting policy applied in preparation of the results for the nine months ended September 30, 2018 therefore reflect application of ASC 606. ICON has elected to adopt the standard using the cumulative effect transition method. Under this transition method, ICON has applied the new standard as at the date of initial application (i.e. January 1, 2018), without restatement of comparative period amounts. The cumulative effect of initially applying the new standard (to revenue, costs and tax) is recorded as an adjustment to the opening balance of equity at the date of initial application. See 'Note 13 - Impact of change in accounting policies' for details. The comparative information has not been adjusted and therefore continues to be reported under ASC 605 ‘Revenue Recognition’ . The new standard requires application of five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligation 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 the performance obligation. The most significant impact of application of the standard relates to our assessment of performance and percentage of completion in respect of our clinical trial service revenue. Prior to application of ASC 606, the revenue attributable to performance was determined based on both input and output methods of measurement. We have concluded that under the new standard, a clinical trial is a single performance obligation satisfied over time i.e. the full service obligation in respect of a clinical trial (including those services performed by investigators and other parties) is considered a single performance obligation. Promises offered to the customer are not distinct within the context of the contract. We have concluded that ICON is the contract principal in respect of both direct services and in the use of third parties (principally investigator services) that support the clinical research trial. The transaction price is determined by reference to the contract or change order value (total service revenue and pass-through/ reimbursable expenses) adjusted to reflect a realizable contract value. Revenue is recognized as the single performance obligation is satisfied. The progress towards completion for clinical service contracts is measured therefore based on an input measure being total project costs (inclusive of third party costs) at each reporting period. See 'Note 13 - Impact of change in accounting policies' for details of the impact of application of the provisions of ASC 606 in the nine months ended September 30, 2018 and in respect of the position at September 30, 2018 . |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue disaggregated by customer profile is as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (in thousands) (in thousands) Top client $ 92,280 $ 73,212 $ 254,655 $ 264,142 Clients 2-5 173,112 95,068 502,514 274,074 Clients 6-10 94,631 70,320 287,782 184,800 Clients 11-25 106,184 79,377 329,833 223,267 Other 188,810 122,347 541,968 357,017 Total $ 655,017 $ 440,323 $ 1,916,752 $ 1,303,300 Trade accounts receivable, unbilled services and payments on account Trade accounts receivables and unbilled revenue are as follows: September 30, 2018 December 31, 2017 (in thousands) Contract assets: Billed services (accounts receivable) $ 381,735 $ 388,431 Unbilled services (unbilled revenue) 338,523 268,509 Trade accounts receivable and unbilled revenue 720,258 656,940 Allowance for doubtful accounts (8,471 ) (8,930 ) Trade accounts receivable and unbilled revenue, net $ 711,787 $ 648,010 Unbilled services and payments on account were as follows: (in thousands, except percentages) September 30, 2018 December 31, 2017 $ Change % Change Unbilled services (unbilled revenue) $ 338,523 $ 268,509 $ 70,014 26.1 % Unearned revenue (payments on account) (353,636 ) (298,992 ) (54,644 ) 18.3 % Net balance $ (15,113 ) $ (30,483 ) $ 15,370 50.4 % Unbilled services as at September 30, 2018 increased by $70.0 million as compared to December 31, 2017 . Adoption of ASC 606 as at January 1, 2018 resulted in a net reduction in unbilled revenue of $42.0 million and a net increase in payments on account of $25.1 million . Unbilled services/revenue balances arise where invoicing or billing is based on the timing of agreed milestones related to service contracts for clinical research. Payments on account increased by $54.6 million over the same period resulting in an increase of $15.4 million in the net balance of unbilled services and payments on account between December 31, 2017 and September 30, 2018 . These fluctuations are primarily due to timing of payments and invoicing related to the Group's clinical trial management contracts. The bad debt expense recognized on the Group's receivables and unbilled services was de minimis for the three and nine months ended September 30, 2018 . As of September 30, 2018 approximately $5.2 billion of revenue is expected to be recognized in the future in respect of unrealized performance obligations. The Company expects to recognize revenue on approximately 40% of the unrealized performance obligation over the next 12 months, with the remainder recognized thereafter over the duration of the customer contracts. |
Trade accounts receivable, unbi
Trade accounts receivable, unbilled services and payments on account | 9 Months Ended |
Sep. 30, 2018 | |
Contracts Receivable [Abstract] | |
Trade accounts receivable, unbilled services and payments on account | Revenue Revenue disaggregated by customer profile is as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (in thousands) (in thousands) Top client $ 92,280 $ 73,212 $ 254,655 $ 264,142 Clients 2-5 173,112 95,068 502,514 274,074 Clients 6-10 94,631 70,320 287,782 184,800 Clients 11-25 106,184 79,377 329,833 223,267 Other 188,810 122,347 541,968 357,017 Total $ 655,017 $ 440,323 $ 1,916,752 $ 1,303,300 Trade accounts receivable, unbilled services and payments on account Trade accounts receivables and unbilled revenue are as follows: September 30, 2018 December 31, 2017 (in thousands) Contract assets: Billed services (accounts receivable) $ 381,735 $ 388,431 Unbilled services (unbilled revenue) 338,523 268,509 Trade accounts receivable and unbilled revenue 720,258 656,940 Allowance for doubtful accounts (8,471 ) (8,930 ) Trade accounts receivable and unbilled revenue, net $ 711,787 $ 648,010 Unbilled services and payments on account were as follows: (in thousands, except percentages) September 30, 2018 December 31, 2017 $ Change % Change Unbilled services (unbilled revenue) $ 338,523 $ 268,509 $ 70,014 26.1 % Unearned revenue (payments on account) (353,636 ) (298,992 ) (54,644 ) 18.3 % Net balance $ (15,113 ) $ (30,483 ) $ 15,370 50.4 % Unbilled services as at September 30, 2018 increased by $70.0 million as compared to December 31, 2017 . Adoption of ASC 606 as at January 1, 2018 resulted in a net reduction in unbilled revenue of $42.0 million and a net increase in payments on account of $25.1 million . Unbilled services/revenue balances arise where invoicing or billing is based on the timing of agreed milestones related to service contracts for clinical research. Payments on account increased by $54.6 million over the same period resulting in an increase of $15.4 million in the net balance of unbilled services and payments on account between December 31, 2017 and September 30, 2018 . These fluctuations are primarily due to timing of payments and invoicing related to the Group's clinical trial management contracts. The bad debt expense recognized on the Group's receivables and unbilled services was de minimis for the three and nine months ended September 30, 2018 . As of September 30, 2018 approximately $5.2 billion of revenue is expected to be recognized in the future in respect of unrealized performance obligations. The Company expects to recognize revenue on approximately 40% of the unrealized performance obligation over the next 12 months, with the remainder recognized thereafter over the duration of the customer contracts. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Nine Months Ended Year Ended September 30, 2018 December 31, 2017 (in thousands) Opening balance $ 769,058 $ 616,088 Current period acquisitions (Note 6) — 129,222 Prior period acquisitions (Note 6) 1,048 1,393 Foreign exchange movement (9,222 ) 22,355 Closing balance $ 760,884 $ 769,058 |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Acquisitions – Mapi Group On July 27, 2017, a subsidiary of the Company, ICON Clinical Research Limited, acquired Mapi Group. Mapi Group is a leading patient-centered health outcomes research and commercialization company. Cash outflows on acquisition were $145.8 million . The acquisition agreement provided for working capital targets to be achieved. On March 26, 2018, the Company paid $1.6 million in respect of these targets on completion of the working capital review. The acquisition of Mapi Group has been accounted for as a business combination in accordance with ASC 805 ' Business Combinations' . The Company has made a provisional assessment of the fair value of assets acquired and liabilities assumed as at that date. The table following summarizes the Company’s fair values of the assets acquired and liabilities assumed: July 27, 2017 (in thousands) Cash $ 19,649 Property, plant and equipment 4,872 Goodwill* 130,270 Order book 13,012 Customer list 18,392 Accounts receivable 15,874 Unbilled revenue 6,984 Prepayments and other current assets 2,587 Other receivables 1,430 Income taxes receivable 4,262 Accounts payable (2,994 ) Payments on account (31,445 ) Other liabilities (24,952 ) Non-current other liabilities (1,061 ) Non-current deferred tax liability (11,104 ) Net assets acquired $ 145,776 Cash outflows $ 144,131 Working capital adjustment $ 1,645 Total consideration $ 145,776 *Goodwill represents the acquisition of an established workforce with experience in late phase commercialization, analytics, real world evidence generation and strategic regulatory services in clinical trial services for biologics, drugs and devices. Goodwill related to the business acquired is not tax deductible. Acquisitions – ICON Government & Public Health Solutions (formerly Clinical Research Management (ClinicalRM)) On September 15, 2016, a subsidiary of the Company, ICON US Holdings Inc. acquired ICON Government & Public Health Solutions (''GPHS'') which resulted in net cash outflow of $52.4 million (including certain payments made on behalf of GPHS totaling $9.2 million ). GPHS is a full-service CRO specializing in preclinical through Phase IV support of clinical research and clinical trial services for biologics, drugs and devices. The organization helps customers progress their products to market faster with a wide array of research, regulatory and sponsor services within the U.S. and around the globe. GPHS provide full service and functional research solutions to a broad range of US government agencies. Their extensive expertise extends across basic and applied research, infectious diseases, vaccines development, testing and the response to bio-threats. They have worked in collaboration with government and commercial customers to respond to the threat of global viral epidemics. Further consideration of up to $12.0 million was payable if certain performance milestones are achieved in respect of periods up to December 31, 2017. The fair value of the contingent consideration on acquisition and at March 31, 2017 was estimated at $6 million The evaluation of the performance and forecast performance of GPHS against performance milestones was updated as required at June 30, 2017. Arising from that evaluation, the fair value of the contingent consideration liability was determined as $ Nil , resulting in a net credit of $6 million being recorded within selling, general & administrative expenses in the Statement of Operations. The acquisition of GPHS has been accounted for as a business combination in accordance with FASB ASC 805 Business Combinations . The table following summarizes the fair values of the assets acquired and liabilities assumed: September 15, 2016 (in thousands) Cash $ 3,168 Property, plant and equipment 939 Goodwill* 35,969 Customer lists 4,012 Order backlog 1,668 Brand 1,409 Accounts receivable 11,431 Unbilled revenue 3,868 Prepayments and other current assets 1,673 Accounts payable (165 ) Other liabilities (5,569 ) Non-current other liabilities (7 ) Net assets acquired $ 58,396 Total consideration $ 58,396 *Goodwill represents the acquisition of an established workforce with experience in preclinical through Phase IV support of clinical research and clinical trial services for biologics, drugs and devices. Goodwill related to the US portion of the business acquired is tax deductible. In finalizing the goodwill on acquisition of GPHS in the twelve month period from acquisition, fair value adjustments were made which resulted in an increase to unbilled revenue ( $1.1 million ) and other liabilities ( $1.1 million ) and in a decrease to accounts receivable ( $0.3 million ) and accounts payable ( $0.5 million ). Customer list, order backlog and brand intangible asset values were also finalized. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Restructuring charges A restructuring charge of $ 12.5 million was recognized during the nine months ended September 30, 2018 under a restructuring plan adopted following a review of operations. The restructuring plan reflected resource rationalization across the business to improve resource utilizations, resulting in a charge of $9.7 million and office consolidation resulting in the recognition of an onerous lease obligation of $2.8 million . Details of the restructuring charge recognized in the three and nine months ended September 30, 2018 are as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (in thousands) (in thousands) Restructuring charges $ — $ — $ 12,490 $ 7,753 Total $ — $ — $ 12,490 $ 7,753 Details of the movement in the restructuring charge recognized in the three and nine months ended September 30, 2018 are as follows: Workforce reductions Onerous Lease Total (in thousands) Initial restructuring charge recorded $ 9,684 $ 2,806 $ 12,490 Utilization (3,978 ) (538 ) $ (4,516 ) Provision at September 30, 2018 $ 5,706 $ 2,268 $ 7,974 Prior Period Restructuring charges A restructuring charge of $ 7.8 million was recognized during the year ended December 31, 2017 under a restructuring plan adopted following a review of operations. The restructuring plan reflected resource rationalization across the business to improve resource utilization. Workforce Reductions (in thousands) Total provision recognized $ 7,753 Utilized (4,656 ) Provision at December 31, 2017 $ 3,097 Utilized (1,015 ) Provision at September 30, 2018 $ 2,082 A restructuring charge of $ 8.2 million was recognized during the year ended December 31, 2016 under a restructuring plan adopted following a review by the Company of its operations. The restructuring plan includes resource rationalizations in certain areas of the business to improve resource utilization, resulting in a charge of $ 6.2 million and office consolidation resulting in the recognition of an onerous lease obligation of $ 2.0 million during the twelve months ended December 31, 2016 . Workforce Reductions Onerous Lease Total (in thousands) Total provision recognized $ 6,190 $ 1,969 $ 8,159 Utilized (5,734 ) (571 ) (6,305 ) Foreign exchange (63 ) — (63 ) Provision at December 31, 2016 $ 393 $ 1,398 $ 1,791 Utilized (393 ) (1,081 ) (1,474 ) Provision at December 31, 2017 $ — $ 317 $ 317 Utilized — (317 ) (317 ) Provision at September 30, 2018 $ — $ — $ — A restructuring charge of $ 8.8 million was recognized during the year ended December 31, 2014 . Following the closure of the Company’s European Phase 1 services in 2013, the Company recognized a charge in 2014 in relation to its Manchester, United Kingdom facility; $ 5.6 million in relation to asset impairments and $ 3.2 million in relation to an onerous lease charge associated with this facility. Onerous Lease Asset Impairment Total (in thousands) Total provision recognized $ 3,167 $ 5,629 $ 8,796 Asset write off — (5,629 ) (5,629 ) Provision at December 31, 2014 $ 3,167 $ — $ 3,167 Utilized (1,167 ) — (1,167 ) Provision at December 31, 2015 $ 2,000 $ — $ 2,000 Utilized (1,359 ) — (1,359 ) Provision at December 31, 2016 $ 641 $ — $ 641 Utilized (441 ) — (441 ) Provision at December 31, 2017 $ 200 $ — $ 200 Utilized (200 ) — (200 ) Provision at September 30, 2018 $ — $ — $ — At September 30, 2018 , $ 9.4 million is included within other liabilities and $ 0.7 million within non-current other liabilities. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes recognized during the three and nine months ended September 30, 2018 , comprise: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (in thousands) (in thousands) Provision for income taxes $ 11,526 $ 8,239 $ 31,388 $ 31,414 Tax impact of restructuring and other items — — (1,453 ) (969 ) Provision for income taxes after restructuring and other items $ 11,526 $ 8,239 $ 29,935 $ 30,445 As at September 30, 2018 the Company maintains a $ 25.8 million liability ( December 31, 2017 : $ 26.1 million ) for unrecognized tax benefit, which is comprised of $ 22.5 million ( December 31, 2017 : $ 23.7 million ) related to items generating unrecognized tax benefits and $ 3.3 million ( December 31, 2017 : $ 2.4 million ) for interest and related penalties to such items. The Company recognizes interest accrued on unrecognized tax benefits as an additional income tax expense. The Company has analyzed the filing positions in all of the significant federal, state and foreign jurisdictions where it is required to file income tax returns, as well as open tax years in these jurisdictions. The only periods subject to examination by the major tax jurisdictions where the Company does business are 2013 through 2017 tax years. The Company does not believe that the outcome of any examination will have a material impact on its financial statements. |
Net income per ordinary share
Net income per ordinary share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net income per ordinary share | Net income per ordinary share Basic net income per ordinary share has been computed by dividing net income available to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted net income per ordinary share is computed by adjusting the weighted average number of ordinary shares outstanding during the period for all potentially dilutive ordinary shares outstanding during the period and adjusting net income for any changes in income or loss that would result from the conversion of such potential ordinary shares. There is no difference in net income used for basic and diluted net income per ordinary share. The reconciliation of the number of shares used in the computation of basic and diluted net income per ordinary share is as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Weighted average number of ordinary shares outstanding for basic net income per ordinary share 54,368,656 54,109,566 54,134,639 54,110,022 Effect of dilutive share options outstanding 532,748 646,618 753,512 730,090 Weighted average number of ordinary shares outstanding for diluted net income per ordinary share 54,901,404 54,756,184 54,888,151 54,840,112 |
Share-based Awards
Share-based Awards | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Awards | Share-based Awards Share Options On July 21, 2008, the Company adopted the Employee Share Option Plan 2008 (the “2008 Employee Plan”) pursuant to which the Compensation and Organization Committee of the Company’s Board of Directors may grant options to any employee, or any Director holding a salaried office or employment with the Company or a Subsidiary for the purchase of ordinary shares. On the same date, the Company also adopted the Consultants Share Option Plan 2008 (the “2008 Consultants Plan”), pursuant to which the Compensation and Organization Committee of the Company’s Board of Directors may grant options to any consultant, adviser or non-executive Director retained by the Company or any Subsidiary for the purchase of ordinary shares. On February 14, 2017, both the 2008 Employee Plan and the 2008 Consultants Plan (together the “2008 Option Plans”) were amended and restated in order to increase the number of options that can be issued under the 2008 Consultants Plan from 400,000 to 1.0 million and to extend the date for options to be granted under the 2008 Option Plans. An aggregate of 6.0 million ordinary shares have been reserved under the 2008 Employee Plan, as reduced by any shares issued or to be issued pursuant to options granted under the 2008 Consultants Plan, under which a limit of 1.0 million shares applies. Further, the maximum number of ordinary shares with respect to which options may be granted under the 2008 Employee Option Plan, during any calendar year to any employee shall be 400,000 ordinary shares. There is no individual limit under the 2008 Consultants Plan. No options may be granted under the 2008 Option Plans after February 14, 2027. Each option granted under the 2008 Option Plans will be an employee stock option, or NSO, as described in Section 422 or 423 of the Internal Revenue Code. Each grant of an option under the 2008 Options Plans will be evidenced by a Stock Option Agreement between the optionee and the Company. The exercise price will be specified in each Stock Option Agreement, however option prices will not be less than 100% of the fair market value of an ordinary share on the date the option is granted. On January 17, 2003, the Company adopted the Share Option Plan 2003 (the “2003 Share Option Plan”) pursuant to which the Compensation and Organization Committee of the Board could grant options to officers and other employees of the Company or its subsidiaries for the purchase of ordinary shares. An aggregate of 6.0 million ordinary shares were reserved under the 2003 Share Option Plan; and, in no event could the number of ordinary shares issued pursuant to options awarded under this plan exceed 10% of the outstanding shares, as defined in the 2003 Share Option Plan, at the time of the grant, unless the Board expressly determined otherwise. Further, the maximum number of ordinary shares with respect to which options could be granted under the 2003 Share Option Plan during any calendar year to any employee was 400,000 ordinary shares. The 2003 Share Option Plan expired on January 17, 2013. No new options may be granted under this plan. Share option awards are granted with an exercise price equal to the market price of the Company’s shares at date of grant. Share options typically vest over a period of five years from date of grant and expire eight years from date of grant. Share option awards granted to non-Executive Directors during the nine months ended September 30, 2018 vest one year from the date of grant. The maximum contractual term of options outstanding at September 30, 2018 is eight years . The following table summarizes option activity for the nine months ended September 30, 2018 : Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life Outstanding at December 31, 2017 1,171,393 $ 56.02 $ 17.15 Granted 167,557 $ 118.90 $ 36.84 Exercised (355,216 ) $ 41.93 $ 13.76 Forfeited (7,705 ) $ 34.78 $ 11.83 Outstanding at September 30, 2018 976,029 $ 72.11 $ 21.80 5.10 Exercisable at September 30, 2018 452,066 $ 53.60 $ 16.60 3.86 The Company has outstanding options with fair values ranging from $ 8.53 to $ 39.96 per option or a weighted average fair value of $ 14.57 per option. The Company issues ordinary shares for all options exercised. The total amount of fully vested share options which remained outstanding at September 30, 2018 was 452,066 . Fully vested share options at September 30, 2018 have an average remaining contractual term of 3.86 years , an average exercise price of $ 53.6 and a total intrinsic value of $ 45.3 million . The total intrinsic value of options exercised during the nine months ended September 30, 2018 was $ 32.6 million ( September 30, 2017 : $ 21.8 million ). The following table summarizes the movement in non-vested share options for the nine months ended September 30, 2018 : Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Grant Date Fair Value Non-vested outstanding at December 31, 2017 694,727 $ 68.06 $ 20.03 Granted 167,557 $ 118.90 $ 36.84 Vested (335,616 ) $ 62.28 $ 18.53 Forfeited (2,705 ) $ 56.58 $ 16.84 Non-vested outstanding at September 30, 2018 523,963 $ 88.07 $ 26.38 Fair value of Stock Options Assumptions The weighted average fair value of options granted during the nine months ended September 30, 2018 and September 30, 2017 was calculated using the Black-Scholes option pricing model. The weighted average grant date fair values and assumptions used were as follows: Nine Months Ended September 30, 2018 September 30, 2017 Weighted average grant date fair value $ 36.84 $ 25.06 Assumptions: Expected volatility 30 % 29 % Dividend yield — % — % Risk-free interest rate 2.73 % 1.93 % Expected life 5 years 5 years Expected volatility is based on the historical volatility of our common stock over a period equal to the expected term of the options; the expected life represents the weighted average period of time that options granted are expected to be outstanding given consideration to vesting schedules and our historical experience of past vesting and termination patterns. The risk-free rate is based on the U.S. government zero-coupon bonds yield curve in effect at time of the grant for periods corresponding with the expected life of the option. Restricted Share Units and Performance Share Units On July 21, 2008, the Company adopted the 2008 Employees Restricted Share Unit Plan (the “2008 RSU Plan”) pursuant to which the Compensation and Organization Committee of the Company’s Board of Directors may select any employee, or any Director holding a salaried office or employment with the Company, or a Subsidiary to receive an award under the plan. An aggregate of 1.0 million ordinary shares have been reserved for issuance under the 2008 RSU Plan. On April 23, 2013, the Company adopted the 2013 Employees Restricted Share Unit and Performance Share Unit Plan (the “2013 RSU Plan”) pursuant to which the Compensation and Organization Committee of the Company’s Board of Directors may select any employee, or any Director holding a salaried office or employment with the Company, or a Subsidiary to receive an award under the plan. On May 11, 2015, the 2013 RSU Plan was amended and restated in order to increase the number of shares that can be issued under the RSU Plan by 2.5 million shares. Accordingly, an aggregate of 4.1 million ordinary shares have been reserved for issuance under the 2013 RSU Plan. The shares are awarded at par value and vest over a service period. Awards under the 2013 RSU Plan may be settled in cash or shares at the option of the Company. The Company has awarded RSUs and PSUs to certain key individuals of the Group. The following table summarizes RSU and PSU activity for the nine months ended September 30, 2018 : PSU Outstanding Number of Shares PSU Weighted Average Grant Date Fair Value PSU Weighted Average Remaining Contractual Life RSU Outstanding Number of Shares RSU Weighted Average Grant Date Fair Value RSU Weighted Average Remaining Contractual Life Outstanding at December 31, 2017 511,026 $ 72.07 0.93 715,970 $ 72.65 1.28 Granted 71,906 $ 116.02 159,070 $ 123.32 Shares vested (215,826 ) $ 68.28 (271,183 ) $ 67.96 Forfeited (116,053 ) $ 70.89 (57,429 ) $ 76.90 Outstanding at September 30, 2018 251,053 $ 85.95 1.21 546,428 $ 89.28 1.46 The fair value of RSUs vested for the nine months ended September 30, 2018 totaled $ 18.4 million (full year 2017: $ 16.6 million ). The fair value of PSUs vested for the nine months ended September 30, 2018 totaled $14.7 million (full year 2017: $ 15.0 million ). The PSUs vest based on service and specified EPS targets over the period 2015 – 2018, 2016 – 2019, 2017 – 2020 and 2018 – 2021. Since 2013, 147,630 PSUs (net of forfeitures) have been granted. Depending on the amount of EPS from 2015 to 2021 , up to an additional 103,423 PSUs may also be granted. Non-cash stock compensation expense Non-cash stock compensation expense for the three and nine months ended September 30, 2018 has been allocated as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (in thousands) (in thousands) Direct costs $ 4,708 $ 4,551 $ 13,761 $ 14,855 Selling, general and administrative 3,836 3,709 11,213 12,106 $ 8,544 $ 8,260 $ 24,974 $ 26,961 Total non-cash stock compensation expense not yet recognized at September 30, 2018 amounted to $ 51.5 million . The weighted average period over which this is expected to be recognized is 2.1 years . The amendments required by Accounting Standards Update (‘ASU’) 2016-09 ‘Improvements to Employee Share-Based Payment Accounting’ require the Company to record all tax effects related to share-based payments through the income statement rather than additional paid in capital. The Company applied the updated standard prospectively during the year ended December 31, 2017 . |
Share Capital
Share Capital | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Share Capital | Share Capital On October 3, 2016, the Company commenced a previously announced share buyback program of up to $ 400 million . The Company can acquire up to 10% of its outstanding ordinary shares (by way of redemption), in accordance with Irish law, the United States securities laws, and the Company’s constitutional documents through open market share acquisitions. The buyback program gives a broker authority to acquire the Company’s ordinary shares from time to time on the open market in accordance with agreed terms and limitations. The acquisition of shares pursuant to the buyback program was effected by way of redemption and cancellation of the shares, in accordance with the Constitution of the Company. During the nine months ended September 30, 2018 485,143 ordinary shares were redeemed by the Company under this buyback program for a total consideration of $ 57.0 million . At September 30, 2018 a total of 3,503,557 ordinary shares were redeemed by the Company under this buyback program for a total consideration of $ 300.1 million . All ordinary shares that were redeemed under the buyback program were canceled in accordance with the Constitution of the Company and the nominal value of these shares transferred to an other undenominated capital reserve as required under Irish Company Law. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | Business Segment Information The Company determines and presents operating segments based on the information that is internally provided to the chief operating decision maker, together the (‘CODM’) in accordance with FASB ASC 280-10 Disclosures about Segments of an Enterprises and Related Information . The Chief Executive Officer, Chief Financial Officer and Chief Operating Officer, were together considered the Company’s CODM in the period up to and including March 1, 2017. On March 1, 2017, Mr. Ciaran Murray transitioned from his role as Chief Executive Officer to the role of Executive Chairman of the Board of Directors and Dr. Steve Cutler was appointed as Chief Executive Officer. As of March 1, 2017, the Company determined that the CODM was comprised of the Chief Executive Officer and the Chief Financial Officer. The Company determines and presents operating segments based on the information that is provided to the CODM. The Company operates as one single business segment, which is the provision of outsourced development services on a global basis to the pharmaceutical, biotechnology and medical devices industries. There have been no changes to the basis of segmentation or the measurement basis for the segment results in the period. The Company is a clinical research organization (“CRO”), providing outsourced development services on a global basis to the pharmaceutical, biotechnology and medical device industries. It specializes in the strategic development, management and analysis of programs that support all stages of the clinical development process - from compound selection to Phase I-IV clinical studies. The Company has the expertise and capability to conduct clinical trials in most major therapeutic areas on a global basis and has the operational flexibility to provide development services on a stand-alone basis or as part of an integrated “full service” solution. The Company has expanded predominately through internal growth together with a number of strategic acquisitions to enhance its expertise and capabilities in certain areas of the clinical development process. The Company is generally awarded projects based upon responses to requests for proposals received from companies in the pharmaceutical, biotechnology and medical device industries or work orders executed under our strategic partnership arrangements. Contracts with customers are generally entered into centrally, in most cases with ICON Clinical Research Limited (“ICON Ireland”), the Company’s principal operating subsidiary in Ireland. Revenues, which consist primarily of fees earned under these contracts, are allocated to individual entities within the Group, based on where the work is performed in accordance with the Company’s global transfer pricing model. ICON Ireland acts as the group entrepreneur under the Company’s global transfer pricing model given its role in the development and management of the group, its ownership of key intellectual property and customer relationships, its key role in the mitigation of risks faced by the group and its responsibility for maintaining the Company’s global network. ICON Ireland enters into the majority of the Company’s customer contracts. ICON Ireland remunerates other operating entities in the ICON Group on the basis of a guaranteed cost plus mark up for the services they perform in each of their local territories. The cost plus mark up for each ICON entity is established to ensure that each of ICON Ireland and the ICON entities that are involved in the conduct of services for customers, earn an appropriate arms-length return having regard to the assets owned, risks borne, and functions performed by each entity from these intercompany transactions. The cost plus mark up policy is reviewed annually to ensure that it is market appropriate. The geographic split of revenue disclosed for each region outside Ireland is the cost plus revenue attributable to these entities. The residual revenues of the Group, once each ICON entity has been paid its respective intercompany service fee, generally fall to be retained by ICON Ireland. As such revenues and income from operations in Ireland are a function of this global transfer pricing model and comprise revenues of the Group after deducting the cost plus revenues attributable to the activities performed outside Ireland. The Company's areas of operation outside of Ireland include the United States, United Kingdom, Belgium, France, Germany, Italy, Spain, The Netherlands, Sweden, Turkey, Poland, Czech Republic, Latvia, Russia, Ukraine, Hungary, Israel, Romania, Canada, Mexico, Brazil, Colombia, Argentina, Chile, Peru, India, China, South Korea, Japan, Thailand, Taiwan, Singapore, The Philippines, Australia, New Zealand, and South Africa. The geographical distribution of the Company’s segment measures as at September 30, 2018 and December 31, 2017 and for the three and nine months ended September 30, 2018 and September 30, 2017 is as follows: a) The distribution of revenue by geographical area was as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (in thousands) (in thousands) Ireland $ 270,709 $ 231,718 $ 765,939 $ 695,382 Rest of Europe 91,292 94,622 283,024 246,101 U.S. 227,279 213,202 674,150 666,222 Rest of World 65,737 56,627 193,639 158,311 Total $ 655,017 $ 596,169 $ 1,916,752 $ 1,766,016 * All sales shown for Ireland are export sales. ** 2017 restated for gross revenue. b) The distribution of income from operations including restructuring, by geographical area was as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (in thousands) (in thousands) Ireland $ 71,435 $ 62,152 $ 190,832 $ 164,760 Rest of Europe 7,038 2,526 23,864 15,124 U.S. 14,413 16,150 40,918 52,897 Rest of World 5,054 4,110 15,958 15,813 Total $ 97,940 $ 84,938 $ 271,572 $ 248,594 c) The distribution of income from operations excluding restructuring, by geographical area was as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (in thousands) (in thousands) Ireland $ 71,435 $ 62,152 $ 203,322 $ 172,513 Rest of Europe 7,038 2,526 23,864 15,124 U.S. 14,413 16,150 40,918 52,897 Rest of World 5,054 4,110 15,958 15,813 Total $ 97,940 $ 84,938 $ 284,062 $ 256,347 d) The distribution of property, plant and equipment, net, by geographical area was as follows: September 30, 2018 December 31, 2017 (in thousands) Ireland $ 104,935 $ 111,329 Rest of Europe 9,657 9,026 U.S. 24,384 27,797 Rest of World 15,572 14,899 Total $ 154,548 $ 163,051 e) The distribution of depreciation and amortization by geographical area was as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (in thousands) (in thousands) Ireland $ 8,053 $ 6,985 $ 23,917 $ 19,465 Rest of Europe 1,491 3,469 4,654 6,498 U.S. 6,396 4,819 18,997 16,348 Rest of World 1,122 1,007 3,438 2,812 Total $ 17,062 $ 16,280 $ 51,006 $ 45,123 f) The distribution of total assets by geographical area was as follows: September 30, 2018 December 31, 2017 (in thousands) Ireland $ 1,020,644 $ 880,378 Rest of Europe 493,363 504,418 U.S. 690,471 650,681 Rest of World 121,250 111,141 Total $ 2,325,728 $ 2,146,618 |
Impact of change in accounting
Impact of change in accounting policies | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Impact fo change in accounting policy | Impact of change in accounting policies The Company adopted ASC 606 ‘ Revenue from Contracts with Customers’ , with a date of initial application of January 1, 2018. The revenue recognition accounting policy applied in preparation of the results for the three and nine months ended September 30, 2018 therefore reflect application of ASC 606. ICON has elected to adopt the standard using the cumulative effect transition method. Under this transition method, ICON has applied the new standard as at the date of initial application (i.e. January 1, 2018), without restatement of comparative amounts. The cumulative effect of initially applying the new standard (to revenue, costs and tax) is recorded as an adjustment to the opening balance of equity at the date of initial application. The comparative information has not been adjusted and therefore continues to be reported under ASC 605 ‘Revenue Recognition’ . The new standard requires application of five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligation 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 the performance obligation. The most significant impact of application of the standard relates to our assessment of performance and percentage of completion in respect of our clinical trial service revenue. Prior to application of ASC 606, the revenue attributable to performance was determined based on both input and output methods of measurement. We have concluded that under the new standard, a clinical trial service is a single performance obligation satisfied over time i.e. the full service obligation in respect of a clinical trial (including those services performed by investigators and other parties) is considered a single performance obligation. Promises offered to the customer are not distinct within the context of the contract. We have concluded that ICON is the contract principal in respect of both direct services and in the use of third parties (principally investigator services) that support the clinical research project. The transaction price is determined by reference to the contract or change order value (total service revenue and pass-through/ reimbursable expenses) adjusted to reflect a realizable contract value. Revenue is recognized as the single performance obligation is satisfied. The progress towards completion for clinical service contracts is measured therefore based on on an input measure being total project costs (inclusive of third party costs) at each reporting period. The tables on the pages following summarize the impact of adopting ASC 606 on the consolidated financial statements for the three and nine months ended September 30, 2018 . ICON plc CONDENSED CONSOLIDATED BALANCE SHEETS AS AT SEPTEMBER 30, 2018 (UNAUDITED) September 30, 2018 As reported Adjustments Balance without adoption of Topic 606 ASSETS (in thousands) Current Assets: Cash and cash equivalents $ 426,221 $ — $ 426,221 Short term investments - available for sale 65,261 — 65,261 Accounts receivable, net 373,264 — 373,264 Unbilled revenue 338,523 45,851 384,374 Other receivables 38,501 (12,455 ) 26,046 Prepayments and other current assets 42,314 — 42,314 Income taxes receivable 21,457 — 21,457 Total current assets 1,305,541 33,396 1,338,937 Other Assets: Property, plant and equipment, net 154,548 — 154,548 Goodwill 760,884 — 760,884 Other non-current assets 15,694 — 15,694 Non-current income taxes receivable 18,977 — 18,977 Non-current deferred tax asset 15,922 (5,978 ) 9,944 Intangible assets 54,162 — 54,162 Total Assets $ 2,325,728 $ 27,418 $ 2,353,146 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Accounts payable $ 15,306 $ — $ 15,306 Payments on account 353,636 (25,100 ) 328,536 Other liabilities 216,959 — 216,959 Income taxes payable 16,239 1,291 17,530 Total current liabilities 602,140 (23,809 ) 578,331 Other Liabilities: Non-current bank credit lines and loan facilities 349,169 — 349,169 Non-current other liabilities 16,670 — 16,670 Non-current government grants 902 — 902 Non-current income taxes payable 14,773 — 14,773 Non-current deferred tax liability 7,590 — 7,590 Commitments and contingencies — — — Total Liabilities 991,244 (23,809 ) 967,435 Shareholders' Equity: Ordinary shares, par value 6 euro cents per share; 100,000,000 shares authorized, 54,435,930 shares issued and outstanding at September 30, 2018 and 54,081,601 shares issued and outstanding at December 31, 2017 4,689 — 4,689 Additional paid‑in capital 521,191 — 521,191 Other undenominated capital 947 — 947 Accumulated other comprehensive income (64,526 ) — (64,526 ) Retained earnings 872,183 51,227 923,410 Total Shareholders' Equity 1,334,484 51,227 1,385,711 Total Liabilities and Shareholders' Equity $ 2,325,728 $ 27,418 $ 2,353,146 ICON plc CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2018 UNAUDITED) Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 September 30, 2018 September 30, 2018 September 30, 2018 September 30, 2018 As reported Adjustments Balance without adoption of Topic 606 As reported Adjustments Balance without adoption of Topic 606 (in thousands except share and per share data) (in thousands except share and per share data) Revenue: Revenue $ 655,017 $ 1,022 $ 656,039 $ 1,916,752 $ 3,867 $ 1,920,619 Reimbursable expenses — (179,642 ) $ (179,642 ) — (507,708 ) $ (507,708 ) (178,620 ) 476,397 (503,841 ) 1,412,911 Costs and expenses: Direct costs - Reimbursable expenses 179,642 (179,642 ) — 507,708 (507,708 ) — - Other direct costs 279,554 — 279,554 831,306 — 831,306 Selling, general and administrative expense 80,819 125 80,944 242,670 347 243,017 Depreciation and amortization 17,062 — 17,062 51,006 51,006 Restructuring — — — 12,490 12,490 Total costs and expenses 557,077 (179,517 ) 377,560 1,645,180 (507,361 ) 1,137,819 Income from operations 97,940 897 98,837 271,572 3,520 275,092 Interest income 1,314 — 1,314 3,154 — 3,154 Interest expense (3,201 ) — (3,201 ) (10,298 ) — (10,298 ) Income before provision for income taxes 96,053 897 96,950 264,428 3,520 267,948 Provision for income taxes (11,526 ) (108 ) (11,634 ) (29,935 ) (397 ) (30,332 ) Net income $ 84,527 $ 789 $ 85,316 $ 234,493 $ 3,123 $ 237,616 ICON plc CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 (UNAUDITED) Nine Months Ended September 30, 2018 As Reported Adjustments Balance without adoption of Topic 606 (in thousands) Cash flows from operating activities: Net income $ 234,493 $ 3,123 $ 237,616 Adjustments to reconcile net income to net cash provided by operating activities: Loss on disposal of property, plant and equipment 9 — 9 Depreciation expense 35,432 — 35,432 Amortization of intangibles 15,574 — 15,574 Amortization of government grants (35 ) — (35 ) Interest on short term investments (1,094 ) — (1,094 ) Stock compensation expense 24,974 — 24,974 Amortization of gain on interest rate hedge (698 ) — (698 ) Amortization of financing costs 671 — 671 Deferred taxes (1,448 ) 5,978 4,530 Changes in assets and liabilities: Decrease in accounts receivable 4,935 — 4,935 Increase in unbilled revenue (73,648 ) 2,253 (71,395 ) Decrease in other receivables 4,919 12,455 17,374 Increase in prepayments and other current assets (8,591 ) — (8,591 ) Increase in other non-current assets (323 ) — (323 ) Decrease in payments on account (11,567 ) (25,100 ) (36,667 ) Decrease in other current liabilities (14,422 ) — (14,422 ) Decrease in other non-current liabilities (589 ) — (589 ) Increase in income taxes payable 2,215 1,291 3,506 Decrease in accounts payable (3,031 ) — (3,031 ) Net cash provided by operating activities 207,776 — 207,776 Cash flows from investing activities: Purchase of property, plant and equipment (28,387 ) — (28,387 ) Purchase of subsidiary undertakings (1,645 ) — (1,645 ) Purchase of short term investments (85,866 ) — (85,866 ) Sale of short term investments 98,857 — 98,857 Net cash used in investing activities (17,041 ) — (17,041 ) Cash flows from financing activities: Financing costs (823 ) — (823 ) Proceeds from exercise of equity compensation 14,930 — 14,930 Share issue costs (13 ) — (13 ) Repurchase of ordinary shares (56,960 ) — (56,960 ) Share repurchase costs (46 ) — (46 ) Net cash used in financing activities (42,912 ) — (42,912 ) Effect of exchange rate movements on cash (4,461 ) (4,461 ) Net increase in cash and cash equivalents 143,362 — 143,362 Cash and cash equivalents at beginning of period 282,859 282,859 Cash and cash equivalents at end of period $ 426,221 $ — $ 426,221 ICON plc CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME (UNAUDITED) Shares Amount Additional Paid-in Capital Other Undenominated Capital Accumulated Other Comprehensive Income Retained Earnings Total (dollars in thousands, except share data) Balance at December 31, 2017 54,081,601 $ 4,664 $ 481,337 $ 912 $ (38,713 ) $ 742,800 $ 1,191,000 Comprehensive income: Net income (as reported) — — — — — 234,493 234,493 Impact of change in accounting policy — — — — — 3,123 3,123 Currency translation adjustment — — — — (19,069 ) (19,069 ) Currency impact of long term funding — — — — (4,137 ) — (4,137 ) Unrealized capital gain – investments — — — — (429 ) — (429 ) Amortization of interest rate hedge — — — — (698 ) — (698 ) Fair value of cash flow hedge — — — — (1,480 ) — (1,480 ) Total comprehensive income — — — — (25,813 ) 237,616 211,803 Exercise of share options 355,216 25 14,870 — — — 14,895 Issue of restricted share units 484,256 35 — — — — 35 Non-cash stock compensation expense — — 24,997 — — — 24,997 Share issuance costs — — (13 ) — — — (13 ) Share repurchase program (485,143 ) (35 ) — 35 — (56,960 ) (56,960 ) Share repurchase costs — — — — — (46 ) (46 ) Balance at September 30, 2018 54,435,930 $ 4,689 $ 521,191 $ 947 $ (64,526 ) $ 923,410 $ 1,385,711 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | The Company adopted Accounting Standards Codification (ASC) 606 ‘ Revenue from Contracts with Customers’ , with a date of initial application of January 1, 2018. The revenue recognition accounting policy applied in preparation of the results for the nine months ended September 30, 2018 therefore reflect application of ASC 606. ICON has elected to adopt the standard using the cumulative effect transition method. Under this transition method, ICON has applied the new standard as at the date of initial application (i.e. January 1, 2018), without restatement of comparative period amounts. The cumulative effect of initially applying the new standard (to revenue, costs and tax) is recorded as an adjustment to the opening balance of equity at the date of initial application. See 'Note 13 - Impact of change in accounting policies' for details. The comparative information has not been adjusted and therefore continues to be reported under ASC 605 ‘Revenue Recognition’ . The new standard requires application of five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligation 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 the performance obligation. The most significant impact of application of the standard relates to our assessment of performance and percentage of completion in respect of our clinical trial service revenue. Prior to application of ASC 606, the revenue attributable to performance was determined based on both input and output methods of measurement. We have concluded that under the new standard, a clinical trial is a single performance obligation satisfied over time i.e. the full service obligation in respect of a clinical trial (including those services performed by investigators and other parties) is considered a single performance obligation. Promises offered to the customer are not distinct within the context of the contract. We have concluded that ICON is the contract principal in respect of both direct services and in the use of third parties (principally investigator services) that support the clinical research trial. The transaction price is determined by reference to the contract or change order value (total service revenue and pass-through/ reimbursable expenses) adjusted to reflect a realizable contract value. Revenue is recognized as the single performance obligation is satisfied. The progress towards completion for clinical service contracts is measured therefore based on an input measure being total project costs (inclusive of third party costs) at each reporting period. See 'Note 13 - Impact of change in accounting policies' for details of the impact of application of the provisions of ASC 606 in the nine months ended September 30, 2018 and in respect of the position at September 30, 2018 . |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Revenue disaggregated by customer profile is as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (in thousands) (in thousands) Top client $ 92,280 $ 73,212 $ 254,655 $ 264,142 Clients 2-5 173,112 95,068 502,514 274,074 Clients 6-10 94,631 70,320 287,782 184,800 Clients 11-25 106,184 79,377 329,833 223,267 Other 188,810 122,347 541,968 357,017 Total $ 655,017 $ 440,323 $ 1,916,752 $ 1,303,300 |
Trade accounts receivable, un_2
Trade accounts receivable, unbilled services and payments on account (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Contracts Receivable [Abstract] | |
Schedule of Contracts with Customers, Asset and Liabilities | Trade accounts receivables and unbilled revenue are as follows: September 30, 2018 December 31, 2017 (in thousands) Contract assets: Billed services (accounts receivable) $ 381,735 $ 388,431 Unbilled services (unbilled revenue) 338,523 268,509 Trade accounts receivable and unbilled revenue 720,258 656,940 Allowance for doubtful accounts (8,471 ) (8,930 ) Trade accounts receivable and unbilled revenue, net $ 711,787 $ 648,010 Unbilled services and payments on account were as follows: (in thousands, except percentages) September 30, 2018 December 31, 2017 $ Change % Change Unbilled services (unbilled revenue) $ 338,523 $ 268,509 $ 70,014 26.1 % Unearned revenue (payments on account) (353,636 ) (298,992 ) (54,644 ) 18.3 % Net balance $ (15,113 ) $ (30,483 ) $ 15,370 50.4 % |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Nine Months Ended Year Ended September 30, 2018 December 31, 2017 (in thousands) Opening balance $ 769,058 $ 616,088 Current period acquisitions (Note 6) — 129,222 Prior period acquisitions (Note 6) 1,048 1,393 Foreign exchange movement (9,222 ) 22,355 Closing balance $ 760,884 $ 769,058 |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Mapi Group | |
Schedule of summary of recognized identified assets acquired and liabilities assumed | The table following summarizes the Company’s fair values of the assets acquired and liabilities assumed: July 27, 2017 (in thousands) Cash $ 19,649 Property, plant and equipment 4,872 Goodwill* 130,270 Order book 13,012 Customer list 18,392 Accounts receivable 15,874 Unbilled revenue 6,984 Prepayments and other current assets 2,587 Other receivables 1,430 Income taxes receivable 4,262 Accounts payable (2,994 ) Payments on account (31,445 ) Other liabilities (24,952 ) Non-current other liabilities (1,061 ) Non-current deferred tax liability (11,104 ) Net assets acquired $ 145,776 Cash outflows $ 144,131 Working capital adjustment $ 1,645 Total consideration $ 145,776 *Goodwill represents the acquisition of an established workforce with experience in late phase commercialization, analytics, real world evidence generation and strategic regulatory services in clinical trial services for biologics, drugs and devices. Goodwill related to the business acquired is not tax deductible. |
Clinical Research Management Inc. | |
Schedule of summary of recognized identified assets acquired and liabilities assumed | The acquisition of GPHS has been accounted for as a business combination in accordance with FASB ASC 805 Business Combinations . The table following summarizes the fair values of the assets acquired and liabilities assumed: September 15, 2016 (in thousands) Cash $ 3,168 Property, plant and equipment 939 Goodwill* 35,969 Customer lists 4,012 Order backlog 1,668 Brand 1,409 Accounts receivable 11,431 Unbilled revenue 3,868 Prepayments and other current assets 1,673 Accounts payable (165 ) Other liabilities (5,569 ) Non-current other liabilities (7 ) Net assets acquired $ 58,396 Total consideration $ 58,396 *Goodwill represents the acquisition of an established workforce with experience in preclinical through Phase IV support of clinical research and clinical trial services for biologics, drugs and devices. Goodwill related to the US portion of the business acquired is tax deductible. |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Workforce Reductions Onerous Lease Total (in thousands) Total provision recognized $ 6,190 $ 1,969 $ 8,159 Utilized (5,734 ) (571 ) (6,305 ) Foreign exchange (63 ) — (63 ) Provision at December 31, 2016 $ 393 $ 1,398 $ 1,791 Utilized (393 ) (1,081 ) (1,474 ) Provision at December 31, 2017 $ — $ 317 $ 317 Utilized — (317 ) (317 ) Provision at September 30, 2018 $ — $ — $ — A restructuring charge of $ 8.8 million was recognized during the year ended December 31, 2014 . Following the closure of the Company’s European Phase 1 services in 2013, the Company recognized a charge in 2014 in relation to its Manchester, United Kingdom facility; $ 5.6 million in relation to asset impairments and $ 3.2 million in relation to an onerous lease charge associated with this facility. Onerous Lease Asset Impairment Total (in thousands) Total provision recognized $ 3,167 $ 5,629 $ 8,796 Asset write off — (5,629 ) (5,629 ) Provision at December 31, 2014 $ 3,167 $ — $ 3,167 Utilized (1,167 ) — (1,167 ) Provision at December 31, 2015 $ 2,000 $ — $ 2,000 Utilized (1,359 ) — (1,359 ) Provision at December 31, 2016 $ 641 $ — $ 641 Utilized (441 ) — (441 ) Provision at December 31, 2017 $ 200 $ — $ 200 Utilized (200 ) — (200 ) Provision at September 30, 2018 $ — $ — $ — Details of the restructuring charge recognized in the three and nine months ended September 30, 2018 are as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (in thousands) (in thousands) Restructuring charges $ — $ — $ 12,490 $ 7,753 Total $ — $ — $ 12,490 $ 7,753 |
Details of Movement in Restructuring Provisions Recognized | The restructuring plan reflected resource rationalization across the business to improve resource utilization. Workforce Reductions (in thousands) Total provision recognized $ 7,753 Utilized (4,656 ) Provision at December 31, 2017 $ 3,097 Utilized (1,015 ) Provision at September 30, 2018 $ 2,082 Details of the movement in the restructuring charge recognized in the three and nine months ended September 30, 2018 are as follows: Workforce reductions Onerous Lease Total (in thousands) Initial restructuring charge recorded $ 9,684 $ 2,806 $ 12,490 Utilization (3,978 ) (538 ) $ (4,516 ) Provision at September 30, 2018 $ 5,706 $ 2,268 $ 7,974 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense | Income taxes recognized during the three and nine months ended September 30, 2018 , comprise: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (in thousands) (in thousands) Provision for income taxes $ 11,526 $ 8,239 $ 31,388 $ 31,414 Tax impact of restructuring and other items — — (1,453 ) (969 ) Provision for income taxes after restructuring and other items $ 11,526 $ 8,239 $ 29,935 $ 30,445 |
Net income per ordinary share (
Net income per ordinary share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Number of Shares Used in Computation of Basic and Diluted Net Income Per Ordinary Share | The reconciliation of the number of shares used in the computation of basic and diluted net income per ordinary share is as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Weighted average number of ordinary shares outstanding for basic net income per ordinary share 54,368,656 54,109,566 54,134,639 54,110,022 Effect of dilutive share options outstanding 532,748 646,618 753,512 730,090 Weighted average number of ordinary shares outstanding for diluted net income per ordinary share 54,901,404 54,756,184 54,888,151 54,840,112 |
Share-based Awards (Tables)
Share-based Awards (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share option activity | The following table summarizes option activity for the nine months ended September 30, 2018 : Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life Outstanding at December 31, 2017 1,171,393 $ 56.02 $ 17.15 Granted 167,557 $ 118.90 $ 36.84 Exercised (355,216 ) $ 41.93 $ 13.76 Forfeited (7,705 ) $ 34.78 $ 11.83 Outstanding at September 30, 2018 976,029 $ 72.11 $ 21.80 5.10 Exercisable at September 30, 2018 452,066 $ 53.60 $ 16.60 3.86 |
Schedule of movement in non-vested share options | The following table summarizes the movement in non-vested share options for the nine months ended September 30, 2018 : Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Grant Date Fair Value Non-vested outstanding at December 31, 2017 694,727 $ 68.06 $ 20.03 Granted 167,557 $ 118.90 $ 36.84 Vested (335,616 ) $ 62.28 $ 18.53 Forfeited (2,705 ) $ 56.58 $ 16.84 Non-vested outstanding at September 30, 2018 523,963 $ 88.07 $ 26.38 |
Schedule of weighted average fair values and assumptions used | The weighted average grant date fair values and assumptions used were as follows: Nine Months Ended September 30, 2018 September 30, 2017 Weighted average grant date fair value $ 36.84 $ 25.06 Assumptions: Expected volatility 30 % 29 % Dividend yield — % — % Risk-free interest rate 2.73 % 1.93 % Expected life 5 years 5 years |
Schedule of RSU and PSU activity | The following table summarizes RSU and PSU activity for the nine months ended September 30, 2018 : PSU Outstanding Number of Shares PSU Weighted Average Grant Date Fair Value PSU Weighted Average Remaining Contractual Life RSU Outstanding Number of Shares RSU Weighted Average Grant Date Fair Value RSU Weighted Average Remaining Contractual Life Outstanding at December 31, 2017 511,026 $ 72.07 0.93 715,970 $ 72.65 1.28 Granted 71,906 $ 116.02 159,070 $ 123.32 Shares vested (215,826 ) $ 68.28 (271,183 ) $ 67.96 Forfeited (116,053 ) $ 70.89 (57,429 ) $ 76.90 Outstanding at September 30, 2018 251,053 $ 85.95 1.21 546,428 $ 89.28 1.46 |
Schedule of non-cash stock compensation expense | Non-cash stock compensation expense for the three and nine months ended September 30, 2018 has been allocated as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (in thousands) (in thousands) Direct costs $ 4,708 $ 4,551 $ 13,761 $ 14,855 Selling, general and administrative 3,836 3,709 11,213 12,106 $ 8,544 $ 8,260 $ 24,974 $ 26,961 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Distribution of Net Revenue by Geographical Area | The distribution of revenue by geographical area was as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (in thousands) (in thousands) Ireland $ 270,709 $ 231,718 $ 765,939 $ 695,382 Rest of Europe 91,292 94,622 283,024 246,101 U.S. 227,279 213,202 674,150 666,222 Rest of World 65,737 56,627 193,639 158,311 Total $ 655,017 $ 596,169 $ 1,916,752 $ 1,766,016 * All sales shown for Ireland are export sales. ** 2017 restated for gross revenue. |
Distribution of Income from Operations by Geographical Area | The distribution of income from operations including restructuring, by geographical area was as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (in thousands) (in thousands) Ireland $ 71,435 $ 62,152 $ 190,832 $ 164,760 Rest of Europe 7,038 2,526 23,864 15,124 U.S. 14,413 16,150 40,918 52,897 Rest of World 5,054 4,110 15,958 15,813 Total $ 97,940 $ 84,938 $ 271,572 $ 248,594 c) The distribution of income from operations excluding restructuring, by geographical area was as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (in thousands) (in thousands) Ireland $ 71,435 $ 62,152 $ 203,322 $ 172,513 Rest of Europe 7,038 2,526 23,864 15,124 U.S. 14,413 16,150 40,918 52,897 Rest of World 5,054 4,110 15,958 15,813 Total $ 97,940 $ 84,938 $ 284,062 $ 256,347 |
Distribution of Property, Plant and Equipment, Net, by Geographical Area | The distribution of property, plant and equipment, net, by geographical area was as follows: September 30, 2018 December 31, 2017 (in thousands) Ireland $ 104,935 $ 111,329 Rest of Europe 9,657 9,026 U.S. 24,384 27,797 Rest of World 15,572 14,899 Total $ 154,548 $ 163,051 |
Distribution of Depreciation and Amortization by Geographical Area | e) The distribution of depreciation and amortization by geographical area was as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (in thousands) (in thousands) Ireland $ 8,053 $ 6,985 $ 23,917 $ 19,465 Rest of Europe 1,491 3,469 4,654 6,498 U.S. 6,396 4,819 18,997 16,348 Rest of World 1,122 1,007 3,438 2,812 Total $ 17,062 $ 16,280 $ 51,006 $ 45,123 |
Distribution of Total Assets by Geographical Area | ) The distribution of total assets by geographical area was as follows: September 30, 2018 December 31, 2017 (in thousands) Ireland $ 1,020,644 $ 880,378 Rest of Europe 493,363 504,418 U.S. 690,471 650,681 Rest of World 121,250 111,141 Total $ 2,325,728 $ 2,146,618 |
Impact of change in accountin_2
Impact of change in accounting policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The tables on the pages following summarize the impact of adopting ASC 606 on the consolidated financial statements for the three and nine months ended September 30, 2018 . ICON plc CONDENSED CONSOLIDATED BALANCE SHEETS AS AT SEPTEMBER 30, 2018 (UNAUDITED) September 30, 2018 As reported Adjustments Balance without adoption of Topic 606 ASSETS (in thousands) Current Assets: Cash and cash equivalents $ 426,221 $ — $ 426,221 Short term investments - available for sale 65,261 — 65,261 Accounts receivable, net 373,264 — 373,264 Unbilled revenue 338,523 45,851 384,374 Other receivables 38,501 (12,455 ) 26,046 Prepayments and other current assets 42,314 — 42,314 Income taxes receivable 21,457 — 21,457 Total current assets 1,305,541 33,396 1,338,937 Other Assets: Property, plant and equipment, net 154,548 — 154,548 Goodwill 760,884 — 760,884 Other non-current assets 15,694 — 15,694 Non-current income taxes receivable 18,977 — 18,977 Non-current deferred tax asset 15,922 (5,978 ) 9,944 Intangible assets 54,162 — 54,162 Total Assets $ 2,325,728 $ 27,418 $ 2,353,146 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Accounts payable $ 15,306 $ — $ 15,306 Payments on account 353,636 (25,100 ) 328,536 Other liabilities 216,959 — 216,959 Income taxes payable 16,239 1,291 17,530 Total current liabilities 602,140 (23,809 ) 578,331 Other Liabilities: Non-current bank credit lines and loan facilities 349,169 — 349,169 Non-current other liabilities 16,670 — 16,670 Non-current government grants 902 — 902 Non-current income taxes payable 14,773 — 14,773 Non-current deferred tax liability 7,590 — 7,590 Commitments and contingencies — — — Total Liabilities 991,244 (23,809 ) 967,435 Shareholders' Equity: Ordinary shares, par value 6 euro cents per share; 100,000,000 shares authorized, 54,435,930 shares issued and outstanding at September 30, 2018 and 54,081,601 shares issued and outstanding at December 31, 2017 4,689 — 4,689 Additional paid‑in capital 521,191 — 521,191 Other undenominated capital 947 — 947 Accumulated other comprehensive income (64,526 ) — (64,526 ) Retained earnings 872,183 51,227 923,410 Total Shareholders' Equity 1,334,484 51,227 1,385,711 Total Liabilities and Shareholders' Equity $ 2,325,728 $ 27,418 $ 2,353,146 ICON plc CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2018 UNAUDITED) Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 September 30, 2018 September 30, 2018 September 30, 2018 September 30, 2018 As reported Adjustments Balance without adoption of Topic 606 As reported Adjustments Balance without adoption of Topic 606 (in thousands except share and per share data) (in thousands except share and per share data) Revenue: Revenue $ 655,017 $ 1,022 $ 656,039 $ 1,916,752 $ 3,867 $ 1,920,619 Reimbursable expenses — (179,642 ) $ (179,642 ) — (507,708 ) $ (507,708 ) (178,620 ) 476,397 (503,841 ) 1,412,911 Costs and expenses: Direct costs - Reimbursable expenses 179,642 (179,642 ) — 507,708 (507,708 ) — - Other direct costs 279,554 — 279,554 831,306 — 831,306 Selling, general and administrative expense 80,819 125 80,944 242,670 347 243,017 Depreciation and amortization 17,062 — 17,062 51,006 51,006 Restructuring — — — 12,490 12,490 Total costs and expenses 557,077 (179,517 ) 377,560 1,645,180 (507,361 ) 1,137,819 Income from operations 97,940 897 98,837 271,572 3,520 275,092 Interest income 1,314 — 1,314 3,154 — 3,154 Interest expense (3,201 ) — (3,201 ) (10,298 ) — (10,298 ) Income before provision for income taxes 96,053 897 96,950 264,428 3,520 267,948 Provision for income taxes (11,526 ) (108 ) (11,634 ) (29,935 ) (397 ) (30,332 ) Net income $ 84,527 $ 789 $ 85,316 $ 234,493 $ 3,123 $ 237,616 ICON plc CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 (UNAUDITED) Nine Months Ended September 30, 2018 As Reported Adjustments Balance without adoption of Topic 606 (in thousands) Cash flows from operating activities: Net income $ 234,493 $ 3,123 $ 237,616 Adjustments to reconcile net income to net cash provided by operating activities: Loss on disposal of property, plant and equipment 9 — 9 Depreciation expense 35,432 — 35,432 Amortization of intangibles 15,574 — 15,574 Amortization of government grants (35 ) — (35 ) Interest on short term investments (1,094 ) — (1,094 ) Stock compensation expense 24,974 — 24,974 Amortization of gain on interest rate hedge (698 ) — (698 ) Amortization of financing costs 671 — 671 Deferred taxes (1,448 ) 5,978 4,530 Changes in assets and liabilities: Decrease in accounts receivable 4,935 — 4,935 Increase in unbilled revenue (73,648 ) 2,253 (71,395 ) Decrease in other receivables 4,919 12,455 17,374 Increase in prepayments and other current assets (8,591 ) — (8,591 ) Increase in other non-current assets (323 ) — (323 ) Decrease in payments on account (11,567 ) (25,100 ) (36,667 ) Decrease in other current liabilities (14,422 ) — (14,422 ) Decrease in other non-current liabilities (589 ) — (589 ) Increase in income taxes payable 2,215 1,291 3,506 Decrease in accounts payable (3,031 ) — (3,031 ) Net cash provided by operating activities 207,776 — 207,776 Cash flows from investing activities: Purchase of property, plant and equipment (28,387 ) — (28,387 ) Purchase of subsidiary undertakings (1,645 ) — (1,645 ) Purchase of short term investments (85,866 ) — (85,866 ) Sale of short term investments 98,857 — 98,857 Net cash used in investing activities (17,041 ) — (17,041 ) Cash flows from financing activities: Financing costs (823 ) — (823 ) Proceeds from exercise of equity compensation 14,930 — 14,930 Share issue costs (13 ) — (13 ) Repurchase of ordinary shares (56,960 ) — (56,960 ) Share repurchase costs (46 ) — (46 ) Net cash used in financing activities (42,912 ) — (42,912 ) Effect of exchange rate movements on cash (4,461 ) (4,461 ) Net increase in cash and cash equivalents 143,362 — 143,362 Cash and cash equivalents at beginning of period 282,859 282,859 Cash and cash equivalents at end of period $ 426,221 $ — $ 426,221 ICON plc CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME (UNAUDITED) Shares Amount Additional Paid-in Capital Other Undenominated Capital Accumulated Other Comprehensive Income Retained Earnings Total (dollars in thousands, except share data) Balance at December 31, 2017 54,081,601 $ 4,664 $ 481,337 $ 912 $ (38,713 ) $ 742,800 $ 1,191,000 Comprehensive income: Net income (as reported) — — — — — 234,493 234,493 Impact of change in accounting policy — — — — — 3,123 3,123 Currency translation adjustment — — — — (19,069 ) (19,069 ) Currency impact of long term funding — — — — (4,137 ) — (4,137 ) Unrealized capital gain – investments — — — — (429 ) — (429 ) Amortization of interest rate hedge — — — — (698 ) — (698 ) Fair value of cash flow hedge — — — — (1,480 ) — (1,480 ) Total comprehensive income — — — — (25,813 ) 237,616 211,803 Exercise of share options 355,216 25 14,870 — — — 14,895 Issue of restricted share units 484,256 35 — — — — 35 Non-cash stock compensation expense — — 24,997 — — — 24,997 Share issuance costs — — (13 ) — — — (13 ) Share repurchase program (485,143 ) (35 ) — 35 — (56,960 ) (56,960 ) Share repurchase costs — — — — — (46 ) (46 ) Balance at September 30, 2018 54,435,930 $ 4,689 $ 521,191 $ 947 $ (64,526 ) $ 923,410 $ 1,385,711 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 655,017 | $ 440,323 | $ 1,916,752 | $ 1,303,300 |
Top client | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 92,280 | 73,212 | 254,655 | 264,142 |
Clients 2-5 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 173,112 | 95,068 | 502,514 | 274,074 |
Clients 6-10 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 94,631 | 70,320 | 287,782 | 184,800 |
Clients 11-25 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 106,184 | 79,377 | 329,833 | 223,267 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 188,810 | $ 122,347 | $ 541,968 | $ 357,017 |
Trade accounts receivable, un_3
Trade accounts receivable, unbilled services and payments on account Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Billed services (accounts receivable) | $ 381,735 | $ 388,431 | |
Unbilled revenue | 338,523 | 268,509 | |
Trade accounts receivable and unbilled revenue | 720,258 | 656,940 | |
Allowance for doubtful accounts | (8,471) | (8,930) | |
Trade accounts receivable and unbilled revenue, net | 711,787 | 648,010 | |
Unearned revenue (payments on account) | (353,636) | (298,992) | |
Change in unbilled receivables | $ 70,014 | ||
Change in unbilled receivables, percent | 26.10% | ||
Change in customer advances and deposits | $ 54,644 | ||
Change in customer advances and deposits, percent | 18.30% | ||
Net balance | $ (15,113) | $ (30,483) | |
Change in advance payments netted against unbilled contracts receivable | $ 15,370 | ||
Change in advance payments netted against unbilled contracts receivable, percent | 50.40% | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Unbilled revenue | $ 45,851 | ||
Change in unbilled receivables | $ 42,000 | ||
Change in customer advances and deposits | $ (25,100) |
Trade accounts receivable, un_4
Trade accounts receivable, unbilled services and payments on account Revenue remaining performance obligations (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Contracts Receivable [Abstract] | |
Revenue, remaining performance obligation | $ 5,200,000 |
Change in unbilled receivables | $ 70,014 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Contracts Receivable [Abstract] | |
Revenue, remaining performance obligation, percent | 40.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Goodwill (Detail)
Goodwill (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Opening balance | $ 769,058 | $ 616,088 |
Current period acquisitions (Note 6) | 0 | 129,222 |
Prior period acquisitions (Note 6) | 1,048 | 1,393 |
Foreign exchange movement | (9,222) | 22,355 |
Closing balance | $ 760,884 | $ 769,058 |
Fair value of assets acquired a
Fair value of assets acquired and liabilities assumed of Mapi Group (Detail) - USD ($) $ in Thousands | Jul. 27, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 760,884 | $ 769,058 | $ 616,088 | ||
Cash outflows | $ 1,645 | $ 144,131 | |||
Mapi Group | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 19,649 | ||||
Property, plant and equipment | 4,872 | ||||
Goodwill | 130,270 | ||||
Accounts receivable | 15,874 | ||||
Unbilled revenue | 6,984 | ||||
Prepayments and other current assets | 2,587 | ||||
Other receivables | 1,430 | ||||
Income taxes receivable | 4,262 | ||||
Accounts payable | (2,994) | ||||
Payments on account | (31,445) | ||||
Other liabilities | (24,952) | ||||
Non-current other liabilities | (1,061) | ||||
Non-current deferred tax liability | (11,104) | ||||
Net assets acquired | 145,776 | ||||
Cash outflows | 144,131 | ||||
Working capital adjustment | 1,645 | ||||
Total consideration | 145,776 | ||||
Order backlog | Mapi Group | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 13,012 | ||||
Customer lists | Mapi Group | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 18,392 |
Fair values of assets acquired
Fair values of assets acquired and liabilities assumed of Clinical RM (Detail) - USD ($) $ in Thousands | Sep. 15, 2016 | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 760,884 | $ 769,058 | $ 616,088 | |
Clinical Research Management Inc. | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 3,168 | |||
Property, plant and equipment | 939 | |||
Goodwill | 35,969 | |||
Accounts receivable | 11,431 | |||
Unbilled revenue | 3,868 | |||
Prepayments and other current assets | 1,673 | |||
Accounts payable | (165) | |||
Other liabilities | (5,569) | |||
Non-current other liabilities | (7) | |||
Net assets acquired | 58,396 | |||
Total consideration | 58,396 | |||
Clinical Research Management Inc. | Customer lists | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 4,012 | |||
Clinical Research Management Inc. | Order backlog | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 1,668 | |||
Clinical Research Management Inc. | Brand | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 1,409 |
Business Combinations Narrative
Business Combinations Narrative (Details) - USD ($) | Jul. 27, 2017 | Sep. 15, 2016 | Jun. 30, 2017 | Sep. 30, 2017 | Mar. 31, 2017 |
Mapi Group | |||||
Business Acquisition [Line Items] | |||||
Cash outflows on acquisition | $ 145,800,000 | ||||
Working capital adjustment | $ 1,645,000 | ||||
Clinical Research Management Inc. | |||||
Business Acquisition [Line Items] | |||||
Cash outflows on acquisition | $ 52,400,000 | ||||
Certain payments made on behalf of business acquired | 9,200,000 | ||||
Contingent consideration | $ 12,000,000 | ||||
Fair value of contingent consideration liability | $ 0 | $ 6,000,000 | |||
Fair value adjustments made to unbilled revenue | $ 1,100,000 | ||||
Fair value adjustments made to other liabilities | 1,100,000 | ||||
Fair value adjustments made to AR acquired | 300,000 | ||||
Fair value of adjustments made to accounts payable | $ 500,000 | ||||
Clinical Research Management Inc. | Selling, general and administrative | |||||
Business Acquisition [Line Items] | |||||
Contingent consideration recorded in SG&A costs | $ 6,000,000 |
Restructuring Restructuring - N
Restructuring Restructuring - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 0 | $ 0 | $ 12,490 | $ 7,753 | $ 7,800 | $ 8,800 | |
Workforce Reduction | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 9,684 | ||||||
Onerous Lease | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 2,806 | ||||||
Resource Rationalizations | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 8,159 | ||||||
Resource Rationalizations | Workforce Reduction | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 6,190 | ||||||
Resource Rationalizations | Onerous Lease | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 1,969 | ||||||
Manchester Facility | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 8,796 | ||||||
Asset impairment charges | 5,629 | ||||||
Manchester Facility | Onerous Lease | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 3,167 | ||||||
Asset impairment charges | 0 | ||||||
Manchester Facility | Asset Impairment | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 5,629 | ||||||
Asset impairment charges | $ 5,629 | ||||||
Other Current Liabilities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring reserve, current | 9,400 | 9,400 | |||||
Other Noncurrent Liabilities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring reserve, noncurrent | $ 700 | $ 700 |
Restructuring Restructuring cha
Restructuring Restructuring charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 0 | $ 0 | $ 12,490 | $ 7,753 | $ 7,800 | $ 8,800 |
Utilization | (4,516) | |||||
Restructuring reserve | 7,974 | 7,974 | ||||
Onerous Lease | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 2,806 | |||||
Utilization | (538) | |||||
Restructuring reserve | 2,268 | 2,268 | ||||
Workforce Reduction | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 9,684 | |||||
Utilization | (3,978) | |||||
Restructuring reserve | $ 5,706 | $ 5,706 |
Restructuring Prior period rest
Restructuring Prior period restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring | $ 0 | $ 0 | $ 12,490 | $ 7,753 | $ 7,800 | $ 8,800 | ||
Utilization | (4,516) | |||||||
Restructuring, ending balance | 7,974 | 7,974 | ||||||
Workforce Reduction | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring | 9,684 | |||||||
Utilization | (3,978) | |||||||
Restructuring, ending balance | 5,706 | 5,706 | ||||||
Onerous Lease | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring | 2,806 | |||||||
Utilization | (538) | |||||||
Restructuring, ending balance | 2,268 | 2,268 | ||||||
Prior period workforce reduction | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring | $ 7,753 | |||||||
Restructuring, beginning balance | 3,097 | |||||||
Utilization | (1,015) | (4,656) | ||||||
Restructuring, ending balance | 2,082 | 2,082 | 3,097 | |||||
Manchester Facility | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring | 8,796 | |||||||
Restructuring, beginning balance | 200 | 641 | 641 | 2,000 | $ 3,167 | |||
Utilization | (200) | (441) | (1,359) | (1,167) | ||||
Asset impairment charges | (5,629) | |||||||
Restructuring, ending balance | 0 | 0 | 200 | 641 | 2,000 | 3,167 | ||
Manchester Facility | Onerous Lease | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring | 3,167 | |||||||
Restructuring, beginning balance | 200 | 641 | 641 | 2,000 | 3,167 | |||
Utilization | (200) | (441) | (1,359) | (1,167) | ||||
Asset impairment charges | 0 | |||||||
Restructuring, ending balance | 0 | 0 | 200 | 641 | 2,000 | 3,167 | ||
Manchester Facility | Asset Impairment | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring | 5,629 | |||||||
Restructuring, beginning balance | 0 | 0 | 0 | 0 | 0 | |||
Utilization | 0 | 0 | 0 | 0 | ||||
Asset impairment charges | (5,629) | |||||||
Restructuring, ending balance | 0 | 0 | 0 | 0 | $ 0 | $ 0 | ||
Resource Rationalizations | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring | 8,159 | |||||||
Restructuring, beginning balance | 317 | 1,791 | 1,791 | |||||
Utilization | (317) | (1,474) | (6,305) | |||||
Foreign exchange | (63) | |||||||
Restructuring, ending balance | 0 | 0 | 317 | 1,791 | ||||
Resource Rationalizations | Workforce Reduction | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring | 6,190 | |||||||
Restructuring, beginning balance | 0 | 393 | 393 | |||||
Utilization | 0 | (393) | (5,734) | |||||
Foreign exchange | (63) | |||||||
Restructuring, ending balance | 0 | 0 | 0 | 393 | ||||
Resource Rationalizations | Onerous Lease | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring | 1,969 | |||||||
Restructuring, beginning balance | 317 | $ 1,398 | 1,398 | |||||
Utilization | (317) | (1,081) | (571) | |||||
Foreign exchange | 0 | |||||||
Restructuring, ending balance | $ 0 | $ 0 | $ 317 | $ 1,398 |
Income Taxes Recognized During
Income Taxes Recognized During Period (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 11,526 | $ 8,239 | $ 31,388 | $ 31,414 |
Tax impact of restructuring and other items | 0 | 0 | (1,453) | (969) |
Provision for income taxes after restructuring and other items | $ 11,526 | $ 8,239 | $ 29,935 | $ 30,445 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Liability for unrecognized tax benefit | $ 25.8 | $ 26.1 |
Items generating unrecognized tax benefits | 22.5 | 23.7 |
Interest and related penalties | $ 3.3 | $ 2.4 |
Earliest Tax Year | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Tax year subject to examination by major tax jurisdictions | 2,013 | |
Latest Tax Year | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Tax year subject to examination by major tax jurisdictions | 2,017 |
Reconciliation of Number of Sha
Reconciliation of Number of Shares Used in Computation of Basic and Diluted Net Income Per Ordinary Share (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Weighted average number of ordinary shares outstanding for basic net income per ordinary share (in shares) | 54,368,656 | 54,109,566 | 54,134,639 | 54,110,022 |
Effect of dilutive share options outstanding (in shares) | 532,748 | 646,618 | 753,512 | 730,090 |
Weighted average number of ordinary shares outstanding for diluted net income per ordinary share (in shares) | 54,901,404 | 54,756,184 | 54,888,151 | 54,840,112 |
Share-based Awards - Narrative
Share-based Awards - Narrative (Detail) - USD ($) $ / shares in Units, $ in Millions | Feb. 14, 2017 | May 11, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Jun. 30, 2018 |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Limit of shares issued or to be issued pursuant to options granted | 1,000,000 | |||||
Non-cash stock compensation expense not yet recognized | $ 51.5 | |||||
Unrecognized stock-based compensation expense, weighted average period (years) | 2 years 22 days | |||||
Employee Stock Plan, 2008 Plan | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Ordinary shares which have been reserved for issuance | 6,000,000 | |||||
Employee Stock Plan, 2008 Plan | Minimum | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Additional number of ordinary shares which have been reserved for issuance | 400,000 | |||||
Percentage of option price for fair value of ordinary share | 100.00% | |||||
Employee Stock Plan, 2008 Plan | Maximum | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Additional number of ordinary shares which have been reserved for issuance | 1,000,000 | |||||
Employee Stock Plan, 2003 Plan | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Ordinary shares which have been reserved for issuance | 6,000,000 | |||||
Maximum number of award as percentage of shares outstanding | 10.00% | |||||
Employee Stock Plan, 2003 Plan | Individual Employee | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Ordinary shares which have been reserved for issuance | 400,000 | |||||
Employee Stock Option | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Shares vesting period | 5 years | |||||
Shares expiration period | 8 years | |||||
Weighted average contractual term of options outstanding | 5 years 1 month 6 days | |||||
Weighted average fair value per option | $ 14.57 | |||||
Exercisable - number of shares | 452,066 | |||||
Exercisable - weighted average remaining contractual life | 3 years 10 months 11 days | |||||
Exercisable - weighted average exercise price | $ 53.60 | |||||
Fully vested total intrinsic value | $ 45.3 | |||||
Intrinsic value of option exercised | $ 32.6 | $ 21.8 | ||||
Employee Stock Option | Minimum | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Options outstanding fair value | $ 8.53 | |||||
Employee Stock Option | Maximum | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Weighted average contractual term of options outstanding | 8 years | |||||
Options outstanding fair value | $ 39.96 | |||||
Restricted Stock Units 2008 | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Ordinary shares which have been reserved for issuance | 1,000,000 | |||||
Restricted Stock Units 2013 | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Additional number of ordinary shares which have been reserved for issuance | 2,500,000 | |||||
Ordinary shares which have been reserved for issuance | 4,100,000 | |||||
Restricted Stock Units (RSUs) | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Fair value of stock units vested | $ 18.4 | $ 16.6 | ||||
Stock units granted | 159,070 | |||||
Performance Share Unit (PSUs) | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Fair value of stock units vested | $ 14.7 | $ 15 | ||||
Stock units granted | 71,906 | |||||
PSUs Based on Service and EPS Targets | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Stock units granted | 147,630 | |||||
PSUs Based on Service and EPS Targets | Minimum | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Cumulative EPS vesting period | 2,015 | |||||
PSUs Based on Service and EPS Targets | Maximum | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Stock units to be granted | 103,423 | |||||
Cumulative EPS vesting period | 2,021 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - Employee Stock Option - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Options Outstanding Number of Shares | ||
Outstanding at beginning of period (in shares) | 1,171,393 | |
Granted (in shares) | 167,557 | |
Exercised (in shares) | (355,216) | |
Forfeited (in shares) | (7,705) | |
Outstanding at end of period (in shares) | 976,029 | |
Exercisable at end of period | 452,066 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (USD per share) | $ 56.02 | |
Granted (USD per share) | 118.90 | |
Exercised (USD per share) | 41.93 | |
Forfeited (USD per share) | 34.78 | |
Outstanding at end of period (USD per share) | 72.11 | |
Exercisable at end of period (USD per share) | 53.60 | |
Weighted Average Fair Value | ||
Outstanding at beginning of period (USD per share) | 17.15 | |
Granted (USD per share) | 36.84 | $ 25.06 |
Exercised (USD per share) | 13.76 | |
Forfeited (USD per share) | 11.83 | |
Outstanding at end of period (USD per share) | 21.80 | |
Exercisable at end of period (USD per share) | $ 16.60 | |
Weighted Average Remaining Contractual Life | ||
Outstanding at end of period | 5 years 1 month 6 days | |
Exercisable at end of period | 3 years 10 months 11 days |
Summary of Movement in Non-Vest
Summary of Movement in Non-Vested Share Options (Detail) - Employee Stock Option - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Options Outstanding Number of Shares | ||
Beginning Balance (in shares) | 694,727 | |
Granted (in shares) | 167,557 | |
Vested (in shares) | (335,616) | |
Forfeited (in shares) | (2,705) | |
Ending Balance (in shares) | 523,963 | |
Weighted Average Exercise Price | ||
Beginning balance (USD per share) | $ 68.06 | |
Granted (USD per share) | 118.90 | |
Vested (USD per share) | 62.28 | |
Forfeited (USD per share) | 56.58 | |
Ending balance (USD per share) | 88.07 | |
Weighted Average Fair Value | ||
Beginning Balance (USD per share) | 20.03 | |
Granted (USD per share) | 36.84 | $ 25.06 |
Vested (USD per share) | 18.53 | |
Forfeited (USD per share) | 16.84 | |
Ending Balance (USD per share) | $ 26.38 |
Schedule of Weighted Average Fa
Schedule of Weighted Average Fair Values and Assumptions Used (Detail) - Employee Stock Option - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value | $ 36.84 | $ 25.06 |
Assumptions: | ||
Expected volatility | 30.00% | 29.00% |
Dividend yield | 0.00% | 0.00% |
Risk-free interest rate | 2.73% | 1.93% |
Expected life | 5 years | 5 years |
Summary of RSU and PSU Activity
Summary of RSU and PSU Activity (Detail) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Performance Share Unit (PSUs) | ||
Outstanding Number of Shares | ||
Outstanding at beginning of period (in shares) | 511,026 | |
Granted (in shares) | 71,906 | |
Shares vested (in shares) | (215,826) | |
Forfeited (in shares) | (116,053) | |
Outstanding at ending of period (in share) | 251,053 | 511,026 |
Weighted Average Fair Value | ||
Outstanding at beginning of period (USD per share) | $ 72.07 | |
Granted (USD per share) | 116.02 | |
Shares vested (USD per share) | 68.28 | |
Forfeited (USD per share) | 70.89 | |
Outstanding at end of period (USD per share) | $ 85.95 | $ 72.07 |
Weighted Average Remaining Contractual Life | ||
Outstanding at end of period | 1 year 2 months 15 days | 11 months 5 days |
Restricted Stock Units (RSUs) | ||
Outstanding Number of Shares | ||
Outstanding at beginning of period (in shares) | 715,970 | |
Granted (in shares) | 159,070 | |
Shares vested (in shares) | (271,183) | |
Forfeited (in shares) | (57,429) | |
Outstanding at ending of period (in share) | 546,428 | 715,970 |
Weighted Average Fair Value | ||
Outstanding at beginning of period (USD per share) | $ 72.65 | |
Granted (USD per share) | 123.32 | |
Shares vested (USD per share) | 67.96 | |
Forfeited (USD per share) | 76.90 | |
Outstanding at end of period (USD per share) | $ 89.28 | $ 72.65 |
Weighted Average Remaining Contractual Life | ||
Outstanding at end of period | 1 year 5 months 15 days | 1 year 3 months 11 days |
Schedule of Non-cash Stock Comp
Schedule of Non-cash Stock Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | $ 8,544 | $ 8,260 | $ 24,974 | $ 26,961 |
Direct costs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | 4,708 | 4,551 | 13,761 | 14,855 |
Selling, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | $ 3,836 | $ 3,709 | $ 11,213 | $ 12,106 |
Share Capital Narrative (Detail
Share Capital Narrative (Details) - Buyback Program - USD ($) | Oct. 03, 2016 | Sep. 30, 2018 | Sep. 30, 2018 |
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchase program, authorized amount | $ 400,000,000 | ||
Stock repurchased (in shares) | 485,143 | 3,503,557 | |
Stock repurchased | $ 57,000,000 | $ 300,100,000 | |
Maximum | |||
Equity, Class of Treasury Stock [Line Items] | |||
Share repurchase program, authorized percentage | 10.00% |
Business Segment Information Na
Business Segment Information Narrative (Details) | 9 Months Ended |
Sep. 30, 2018segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Distribution of Net Revenue by
Distribution of Net Revenue by Geographical Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 655,017 | $ 596,169 | $ 1,916,752 | $ 1,766,016 |
Ireland | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 270,709 | 231,718 | 765,939 | 695,382 |
Rest of Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 91,292 | 94,622 | 283,024 | 246,101 |
U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 227,279 | 213,202 | 674,150 | 666,222 |
Rest of World | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 65,737 | $ 56,627 | $ 193,639 | $ 158,311 |
Distribution Income from Operat
Distribution Income from Operations, including Restructuring, by Geographical Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Income from operations | $ 97,940 | $ 84,938 | $ 271,572 | $ 248,594 |
Income from operations excluding restructuring | 97,940 | 84,938 | 284,062 | 256,347 |
Ireland | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | 71,435 | 62,152 | 190,832 | 164,760 |
Income from operations excluding restructuring | 71,435 | 62,152 | 203,322 | 172,513 |
Rest of Europe | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | 7,038 | 2,526 | 23,864 | 15,124 |
Income from operations excluding restructuring | 7,038 | 2,526 | 23,864 | 15,124 |
U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | 14,413 | 16,150 | 40,918 | 52,897 |
Income from operations excluding restructuring | 14,413 | 16,150 | 40,918 | 52,897 |
Rest of World | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | 5,054 | 4,110 | 15,958 | 15,813 |
Income from operations excluding restructuring | $ 5,054 | $ 4,110 | $ 15,958 | $ 15,813 |
Distribution of Property, Plant
Distribution of Property, Plant and Equipment, Net, by Geographical Area (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 154,548 | $ 163,051 |
Ireland | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 104,935 | 111,329 |
Rest of Europe | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 9,657 | 9,026 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 24,384 | 27,797 |
Rest of World | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 15,572 | $ 14,899 |
Distribution of Depreciation an
Distribution of Depreciation and Amortization by Geographical Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 17,062 | $ 16,280 | $ 51,006 | $ 45,123 |
Ireland | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 8,053 | 6,985 | 23,917 | 19,465 |
Rest of Europe | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 1,491 | 3,469 | 4,654 | 6,498 |
U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 6,396 | 4,819 | 18,997 | 16,348 |
Rest of World | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 1,122 | $ 1,007 | $ 3,438 | $ 2,812 |
Distribution of Total Assets by
Distribution of Total Assets by Geographical Area (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Assets | $ 2,325,728 | $ 2,146,618 |
Ireland | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,020,644 | 880,378 |
Rest of Europe | ||
Segment Reporting Information [Line Items] | ||
Assets | 493,363 | 504,418 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Assets | 690,471 | 650,681 |
Rest of World | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 121,250 | $ 111,141 |
Impact of change in accountin_3
Impact of change in accounting policies Balance sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||||
Cash and cash equivalents | $ 426,221 | $ 282,859 | $ 209,805 | $ 192,541 |
Short term investments - available for sale | 65,261 | 77,589 | ||
Accounts receivable, net | 373,264 | 379,501 | ||
Unbilled revenue | 338,523 | 268,509 | ||
Other receivables | 38,501 | 33,798 | ||
Prepayments and other current assets | 42,314 | 34,377 | ||
Income taxes receivable | 21,457 | 24,385 | ||
Total current assets | 1,305,541 | 1,101,018 | ||
Other Assets: | ||||
Property, plant and equipment, net | 154,548 | 163,051 | ||
Goodwill | 760,884 | 769,058 | $ 616,088 | |
Other non-current assets | 15,694 | 15,393 | ||
Non-current income taxes receivable | 18,977 | 18,396 | ||
Non-current deferred tax asset | 15,922 | 8,074 | ||
Intangible assets | 54,162 | 71,628 | ||
Total Assets | 2,325,728 | 2,146,618 | ||
Current Liabilities: | ||||
Accounts payable | 15,306 | 18,590 | ||
Payments on account | 353,636 | 298,992 | ||
Other liabilities | 216,959 | 233,503 | ||
Income taxes payable | 16,239 | 14,973 | ||
Total current liabilities | 602,140 | 566,058 | ||
Other Liabilities: | ||||
Non-current bank credit lines and loan facilities | 349,169 | 348,888 | ||
Non-current other liabilities | 16,670 | 17,111 | ||
Non-current government grants | 902 | 966 | ||
Non-current income taxes payable | 14,773 | 14,879 | ||
Non-current deferred tax liability | 7,590 | 7,716 | ||
Commitments and contingencies | 0 | 0 | ||
Total Liabilities | 991,244 | 955,618 | ||
Shareholders' Equity: | ||||
Common stock, value, issued | 4,689 | 4,664 | ||
Additional paid‑in capital | 521,191 | 481,337 | ||
Other undenominated capital | 947 | 912 | ||
Accumulated other comprehensive income | (64,526) | (38,713) | ||
Retained earnings | 872,183 | 742,800 | ||
Total Shareholders' Equity | 1,334,484 | 1,191,000 | ||
Total Liabilities and Shareholders' Equity | 2,325,728 | 2,146,618 | ||
Accounting Standards Update 2014-09 | ||||
Shareholders' Equity: | ||||
Total Shareholders' Equity | 1,142,896 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Current Assets: | ||||
Cash and cash equivalents | 0 | |||
Short term investments - available for sale | 0 | |||
Accounts receivable, net | 0 | |||
Unbilled revenue | 45,851 | |||
Other receivables | (12,455) | |||
Prepayments and other current assets | 0 | |||
Income taxes receivable | 0 | |||
Total current assets | 33,396 | |||
Other Assets: | ||||
Property, plant and equipment, net | 0 | |||
Goodwill | 0 | |||
Other non-current assets | 0 | |||
Non-current income taxes receivable | 0 | |||
Non-current deferred tax asset | (5,978) | |||
Intangible assets | 0 | |||
Total Assets | 27,418 | |||
Current Liabilities: | ||||
Accounts payable | 0 | |||
Payments on account | (25,100) | |||
Other liabilities | 0 | |||
Income taxes payable | 1,291 | |||
Total current liabilities | (23,809) | |||
Other Liabilities: | ||||
Non-current bank credit lines and loan facilities | 0 | |||
Non-current other liabilities | 0 | |||
Non-current government grants | 0 | |||
Non-current income taxes payable | 0 | |||
Non-current deferred tax liability | 0 | |||
Commitments and contingencies | 0 | |||
Total Liabilities | (23,809) | |||
Shareholders' Equity: | ||||
Common stock, value, issued | 0 | |||
Additional paid‑in capital | 0 | |||
Other undenominated capital | 0 | |||
Accumulated other comprehensive income | 0 | |||
Retained earnings | 51,227 | |||
Total Shareholders' Equity | 51,227 | |||
Total Liabilities and Shareholders' Equity | 27,418 | |||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Shareholders' Equity: | ||||
Total Shareholders' Equity | 1,385,711 | |||
Calculated under Revenue Guidance in Effect before Topic 606 | Accounting Standards Update 2014-09 | ||||
Current Assets: | ||||
Cash and cash equivalents | 426,221 | $ 282,859 | ||
Short term investments - available for sale | 65,261 | |||
Accounts receivable, net | 373,264 | |||
Unbilled revenue | 384,374 | |||
Other receivables | 26,046 | |||
Prepayments and other current assets | 42,314 | |||
Income taxes receivable | 21,457 | |||
Total current assets | 1,338,937 | |||
Other Assets: | ||||
Property, plant and equipment, net | 154,548 | |||
Goodwill | 760,884 | |||
Other non-current assets | 15,694 | |||
Non-current income taxes receivable | 18,977 | |||
Non-current deferred tax asset | 9,944 | |||
Intangible assets | 54,162 | |||
Total Assets | 2,353,146 | |||
Current Liabilities: | ||||
Accounts payable | 15,306 | |||
Payments on account | 328,536 | |||
Other liabilities | 216,959 | |||
Income taxes payable | 17,530 | |||
Total current liabilities | 578,331 | |||
Other Liabilities: | ||||
Non-current bank credit lines and loan facilities | 349,169 | |||
Non-current other liabilities | 16,670 | |||
Non-current government grants | 902 | |||
Non-current income taxes payable | 14,773 | |||
Non-current deferred tax liability | 7,590 | |||
Commitments and contingencies | 0 | |||
Total Liabilities | 967,435 | |||
Shareholders' Equity: | ||||
Common stock, value, issued | 4,689 | |||
Additional paid‑in capital | 521,191 | |||
Other undenominated capital | 947 | |||
Accumulated other comprehensive income | (64,526) | |||
Retained earnings | 923,410 | |||
Total Shareholders' Equity | 1,385,711 | |||
Total Liabilities and Shareholders' Equity | $ 2,353,146 |
Impact of change in accountin_4
Impact of change in accounting policies Balance sheet - phantom (Details) - € / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in EUR per share) | € 0.06 | € 0.06 |
Ordinary shares, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Ordinary shares, shares issued (in shares) | 54,435,930 | 54,081,601 |
Ordinary shares, shares outstanding (in shares) | 54,435,930 | 54,081,601 |
Impact of change in accountin_5
Impact of change in accounting policies Statement of operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2014 | |
Revenues [Abstract] | ||||||
Revenue | $ 655,017 | $ 596,169 | $ 1,916,752 | $ 1,766,016 | ||
Reimbursable expenses | (155,846) | (462,716) | ||||
Total Revenue | 655,017 | 440,323 | 1,916,752 | 1,303,300 | ||
Costs and expenses [Abstract] | ||||||
Direct costs, reimbursable expenses | 179,642 | 0 | 507,708 | 0 | ||
Direct costs, other | 279,554 | 259,672 | 831,306 | 760,175 | ||
Selling, general and administrative expense | 80,819 | 79,433 | 242,670 | 241,655 | ||
Depreciation and amortization | 17,062 | 16,280 | 51,006 | 45,123 | ||
Restructuring | 0 | 0 | 12,490 | 7,753 | $ 7,800 | $ 8,800 |
Total costs and expenses | 557,077 | 355,385 | 1,645,180 | 1,054,706 | ||
Income from operations | 97,940 | 84,938 | 271,572 | 248,594 | ||
Interest income | 1,314 | 632 | 3,154 | 1,766 | ||
Interest expense | (3,201) | (3,177) | (10,298) | (9,535) | ||
Income before provision for income taxes | 96,053 | 82,393 | 264,428 | 240,825 | ||
Provision for income taxes | (11,526) | (8,239) | (29,935) | (30,445) | ||
Net income | 84,527 | $ 74,154 | 234,493 | $ 210,380 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | ||||||
Costs and expenses [Abstract] | ||||||
Net income | 3,123 | |||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||||
Revenues [Abstract] | ||||||
Revenue | 1,022 | 3,867 | ||||
Reimbursable expenses | (179,642) | (507,708) | ||||
Total Revenue | (178,620) | (503,841) | ||||
Costs and expenses [Abstract] | ||||||
Direct costs, reimbursable expenses | (179,642) | (507,708) | ||||
Direct costs, other | 0 | 0 | ||||
Selling, general and administrative expense | 125 | 347 | ||||
Depreciation and amortization | 0 | |||||
Restructuring | 0 | |||||
Total costs and expenses | (179,517) | (507,361) | ||||
Income from operations | 897 | 3,520 | ||||
Interest income | 0 | 0 | ||||
Interest expense | 0 | 0 | ||||
Income before provision for income taxes | 897 | 3,520 | ||||
Provision for income taxes | (108) | (397) | ||||
Net income | 789 | 3,123 | ||||
Calculated under Revenue Guidance in Effect before Topic 606 | Accounting Standards Update 2014-09 | ||||||
Revenues [Abstract] | ||||||
Revenue | 656,039 | 1,920,619 | ||||
Reimbursable expenses | (179,642) | (507,708) | ||||
Total Revenue | 476,397 | 1,412,911 | ||||
Costs and expenses [Abstract] | ||||||
Direct costs, reimbursable expenses | 0 | 0 | ||||
Direct costs, other | 279,554 | 831,306 | ||||
Selling, general and administrative expense | 80,944 | 243,017 | ||||
Depreciation and amortization | 17,062 | 51,006 | ||||
Restructuring | 0 | 12,490 | ||||
Total costs and expenses | 377,560 | 1,137,819 | ||||
Income from operations | 98,837 | 275,092 | ||||
Interest income | 1,314 | 3,154 | ||||
Interest expense | (3,201) | (10,298) | ||||
Income before provision for income taxes | 96,950 | 267,948 | ||||
Provision for income taxes | (11,634) | (30,332) | ||||
Net income | $ 85,316 | $ 237,616 |
Impact of change in accountin_6
Impact of change in accounting policies Statement of cash flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities [Abstract] | ||||
Net income | $ 84,527 | $ 74,154 | $ 234,493 | $ 210,380 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Loss on disposal of property, plant and equipment | 9 | 185 | ||
Depreciation expense | 35,432 | 31,748 | ||
Amortization of intangibles | 15,574 | 13,375 | ||
Amortization of government grants | (35) | (33) | ||
Interest on short term investments | (1,094) | (887) | ||
Stock compensation expense | 8,544 | 8,260 | 24,974 | 26,961 |
Amortization of gain on interest rate hedge | (698) | (696) | ||
Amortization of financing costs | 671 | 408 | ||
Deferred taxes | (1,448) | 1,579 | ||
Changes in assets and liabilities: | ||||
Decrease in accounts receivable | 4,935 | 90,205 | ||
Increase in unbilled revenue | (73,648) | (47,707) | ||
Decrease in other receivables | 4,919 | (5,560) | ||
Increase in prepayments and other current assets | (8,591) | (2,169) | ||
Increase in other non-current assets | (323) | (1,219) | ||
Decrease in payments on account | (11,567) | (40,389) | ||
Decrease in other current liabilities | (14,422) | 2,449 | ||
Decrease in other non-current liabilities | (589) | (3,682) | ||
Increase in income taxes payable | 2,215 | 792 | ||
Decrease in accounts payable | (3,031) | 1,444 | ||
Net cash provided by operating activities | 207,776 | 277,184 | ||
Cash flows from investing activities [Abstract] | ||||
Purchase of property, plant and equipment | (28,387) | (23,690) | ||
Purchase of subsidiary undertakings | (1,645) | (144,131) | ||
Purchase of short term investments | (85,866) | (36,451) | ||
Sale of short term investments | 98,857 | 22,728 | ||
Net cash used in investing activities | (17,041) | (162,910) | ||
Cash flows from financing activities [Abstract] | ||||
Financing costs | (823) | |||
Proceeds from exercise of equity compensation | 14,930 | 7,825 | ||
Share issue costs | (13) | (13) | ||
Repurchase of ordinary shares | (56,960) | (108,106) | ||
Share repurchase costs | (46) | (86) | ||
Net cash used in financing activities | (42,912) | (100,380) | ||
Effect of exchange rate movements on cash | (4,461) | 3,370 | ||
Net increase in cash and cash equivalents | 143,362 | 17,264 | ||
Cash and cash equivalents at beginning of period | 282,859 | 192,541 | ||
Cash and cash equivalents at end of period | 426,221 | $ 209,805 | 426,221 | $ 209,805 |
Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
Cash flows from operating activities [Abstract] | ||||
Net income | 3,123 | |||
Cash flows from financing activities [Abstract] | ||||
Financing costs | 0 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Cash flows from operating activities [Abstract] | ||||
Net income | 789 | 3,123 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Loss on disposal of property, plant and equipment | 0 | |||
Depreciation expense | 0 | |||
Amortization of intangibles | 0 | |||
Amortization of government grants | 0 | |||
Interest on short term investments | 0 | |||
Stock compensation expense | 0 | |||
Amortization of gain on interest rate hedge | 0 | |||
Amortization of financing costs | 0 | |||
Deferred taxes | 5,978 | |||
Changes in assets and liabilities: | ||||
Decrease in accounts receivable | 0 | |||
Increase in unbilled revenue | 2,253 | |||
Decrease in other receivables | 12,455 | |||
Increase in prepayments and other current assets | 0 | |||
Increase in other non-current assets | 0 | |||
Decrease in payments on account | (25,100) | |||
Decrease in other current liabilities | 0 | |||
Decrease in other non-current liabilities | 0 | |||
Increase in income taxes payable | 1,291 | |||
Decrease in accounts payable | 0 | |||
Net cash provided by operating activities | 0 | |||
Cash flows from investing activities [Abstract] | ||||
Purchase of property, plant and equipment | 0 | |||
Purchase of subsidiary undertakings | 0 | |||
Purchase of short term investments | 0 | |||
Sale of short term investments | 0 | |||
Net cash used in investing activities | 0 | |||
Cash flows from financing activities [Abstract] | ||||
Proceeds from exercise of equity compensation | 0 | |||
Share issue costs | 0 | |||
Repurchase of ordinary shares | 0 | |||
Share repurchase costs | 0 | |||
Net cash used in financing activities | 0 | |||
Effect of exchange rate movements on cash | ||||
Net increase in cash and cash equivalents | 0 | |||
Cash and cash equivalents at beginning of period | ||||
Cash and cash equivalents at end of period | 0 | 0 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Cash flows from financing activities [Abstract] | ||||
Financing costs | (823) | |||
Calculated under Revenue Guidance in Effect before Topic 606 | Accounting Standards Update 2014-09 | ||||
Cash flows from operating activities [Abstract] | ||||
Net income | 85,316 | 237,616 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Loss on disposal of property, plant and equipment | 9 | |||
Depreciation expense | 35,432 | |||
Amortization of intangibles | 15,574 | |||
Amortization of government grants | (35) | |||
Interest on short term investments | (1,094) | |||
Stock compensation expense | 24,974 | |||
Amortization of gain on interest rate hedge | (698) | |||
Amortization of financing costs | 671 | |||
Deferred taxes | 4,530 | |||
Changes in assets and liabilities: | ||||
Decrease in accounts receivable | 4,935 | |||
Increase in unbilled revenue | (71,395) | |||
Decrease in other receivables | 17,374 | |||
Increase in prepayments and other current assets | (8,591) | |||
Increase in other non-current assets | (323) | |||
Decrease in payments on account | (36,667) | |||
Decrease in other current liabilities | (14,422) | |||
Decrease in other non-current liabilities | (589) | |||
Increase in income taxes payable | 3,506 | |||
Decrease in accounts payable | (3,031) | |||
Net cash provided by operating activities | 207,776 | |||
Cash flows from investing activities [Abstract] | ||||
Purchase of property, plant and equipment | (28,387) | |||
Purchase of subsidiary undertakings | (1,645) | |||
Purchase of short term investments | (85,866) | |||
Sale of short term investments | 98,857 | |||
Net cash used in investing activities | (17,041) | |||
Cash flows from financing activities [Abstract] | ||||
Proceeds from exercise of equity compensation | 14,930 | |||
Share issue costs | (13) | |||
Repurchase of ordinary shares | (56,960) | |||
Share repurchase costs | (46) | |||
Net cash used in financing activities | (42,912) | |||
Effect of exchange rate movements on cash | (4,461) | |||
Net increase in cash and cash equivalents | 143,362 | |||
Cash and cash equivalents at beginning of period | 282,859 | |||
Cash and cash equivalents at end of period | $ 426,221 | $ 426,221 |
Impact of change in accountin_7
Impact of change in accounting policies Statement of shareholders' equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Balance, beginning balance (in shares) | 54,081,601 | |||
Beginning balance | $ 1,191,000 | |||
Net income | $ 84,527 | $ 74,154 | 234,493 | $ 210,380 |
Currency translation adjustment | (19,069) | |||
Currency impact of long term funding | (4,137) | |||
Unrealized capital gain – investments | (429) | |||
Amortization of interest rate hedge | (698) | |||
Fair value of cash flow hedge | (1,480) | |||
Total comprehensive income | 208,680 | |||
Exercise of share options | 14,895 | |||
Issue of restricted share units | 35 | |||
Non-cash stock compensation expense | 24,997 | |||
Share issuance costs | (13) | |||
Share repurchase program | (56,960) | |||
Share repurchase costs | $ (46) | |||
Balance, ending balance (in shares) | 54,435,930 | 54,435,930 | ||
Ending balance | $ 1,334,484 | $ 1,334,484 | ||
Ordinary Shares | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Balance, beginning balance (in shares) | 54,081,601 | |||
Beginning balance | $ 4,664 | |||
Exercise of share options (in shares) | 355,216 | |||
Exercise of share options | $ 25 | |||
Issue of restricted share units (in shares) | 484,256 | |||
Issue of restricted share units | $ 35 | |||
Share repurchase program (in shares) | (485,143) | |||
Share repurchase program | $ (35) | |||
Additional Paid-in Capital | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Beginning balance | 481,337 | |||
Exercise of share options | 14,870 | |||
Non-cash stock compensation expense | 24,997 | |||
Share issuance costs | (13) | |||
Other Undenominated Capital | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Beginning balance | 912 | |||
Share repurchase program | 35 | |||
Accumulated Other Comprehensive Income (Loss) | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Beginning balance | (38,713) | |||
Currency translation adjustment | (19,069) | |||
Currency impact of long term funding | (4,137) | |||
Unrealized capital gain – investments | (429) | |||
Amortization of interest rate hedge | (698) | |||
Fair value of cash flow hedge | (1,480) | |||
Retained Earnings | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Beginning balance | 742,800 | |||
Net income | 234,493 | |||
Total comprehensive income | 234,493 | |||
Share repurchase program | (56,960) | |||
Share repurchase costs | (46) | |||
Ending balance | 872,183 | 872,183 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net income | 3,123 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Retained Earnings | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net income | 3,123 | |||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total comprehensive income | 211,803 | |||
Ending balance | $ 1,385,711 | $ 1,385,711 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Ordinary Shares | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Balance, ending balance (in shares) | 54,435,930 | 54,435,930 | ||
Ending balance | $ 4,689 | $ 4,689 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Additional Paid-in Capital | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Ending balance | 521,191 | 521,191 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Other Undenominated Capital | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Ending balance | 947 | 947 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Accumulated Other Comprehensive Income (Loss) | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total comprehensive income | (25,813) | |||
Ending balance | (64,526) | (64,526) | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Retained Earnings | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total comprehensive income | 237,616 | |||
Ending balance | $ 923,410 | $ 923,410 |