Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 01, 2017 | Jul. 28, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CHARLES RIVER LABORATORIES INTERNATIONAL INC | |
Entity Central Index Key | 1,100,682 | |
Current Fiscal Year End Date | --12-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jul. 1, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 47,593,800 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Income Statement [Abstract] | ||||
Service revenue | $ 329,398 | $ 292,847 | $ 633,929 | $ 513,548 |
Product revenue | 139,731 | 141,208 | 280,963 | 275,375 |
Total revenue | 469,129 | 434,055 | 914,892 | 788,923 |
Costs and expenses: | ||||
Cost of services provided (excluding amortization of intangible assets) | 214,716 | 196,121 | 421,536 | 343,470 |
Cost of products sold (excluding amortization of intangible assets) | 68,751 | 68,187 | 135,995 | 134,938 |
Selling, general and administrative | 94,533 | 100,473 | 186,023 | 183,417 |
Amortization of intangible assets | 9,819 | 11,213 | 20,556 | 17,565 |
Operating income | 81,310 | 58,061 | 150,782 | 109,533 |
Other income (expense): | ||||
Interest income | 161 | 222 | 363 | 485 |
Interest expense | (7,403) | (8,909) | (14,386) | (13,120) |
Other income, net | 2,848 | 5,016 | 18,204 | 9,042 |
Income from continuing operations, before income taxes | 76,916 | 54,390 | 154,963 | 105,940 |
Provision for income taxes | 22,243 | 18,845 | 53,327 | 32,820 |
Income from continuing operations, net of income taxes | 54,673 | 35,545 | 101,636 | 73,120 |
Income (loss) from discontinued operations, net of income taxes | (71) | 12 | (75) | (14) |
Net income | 54,602 | 35,557 | 101,561 | 73,106 |
Less: Net income attributable to noncontrolling interests | 650 | 350 | 831 | 756 |
Net income attributable to common shareholders | $ 53,952 | $ 35,207 | $ 100,730 | $ 72,350 |
Basic: | ||||
Continuing operations attributable to common shareholders (in dollars per share) | $ 1.14 | $ 0.75 | $ 2.12 | $ 1.54 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Net income attributable to common shareholders (in dollars per share) | 1.13 | 0.75 | 2.12 | 1.54 |
Diluted: | ||||
Continuing operations attributable to common shareholders (in dollars per share) | 1.12 | 0.73 | 2.08 | 1.51 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Net income attributable to common shareholders (in dollars per share) | $ 1.12 | $ 0.73 | $ 2.08 | $ 1.51 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 54,602 | $ 35,557 | $ 101,561 | $ 73,106 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment and other | 33,451 | (8,114) | 44,672 | (15,910) |
Amortization of net loss and prior service benefit included in net periodic cost for pension and other post-retirement benefit plans | 901 | 395 | 1,755 | 785 |
Comprehensive income, before income taxes | 88,954 | 27,838 | 147,988 | 57,981 |
Income tax expense related to items of other comprehensive income (Note 9) | 397 | 142 | 623 | 284 |
Comprehensive income, net of income taxes | 88,557 | 27,696 | 147,365 | 57,697 |
Less: Comprehensive income (loss) related to noncontrolling interests, net of income taxes | 900 | (136) | 1,198 | (9) |
Comprehensive income attributable to common shareholders, net of income taxes | $ 87,657 | $ 27,832 | $ 146,167 | $ 57,706 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 116,466 | $ 117,626 |
Trade receivables, net | 398,547 | 364,050 |
Inventories | 104,690 | 95,833 |
Prepaid assets | 50,671 | 34,315 |
Other current assets | 67,693 | 45,008 |
Total current assets | 738,067 | 656,832 |
Property, plant and equipment, net | 758,724 | 755,827 |
Goodwill | 776,453 | 787,517 |
Client relationships and Other intangible assets, net | 368,794 | 394,448 |
Deferred tax assets | 30,494 | 28,746 |
Other assets | 101,132 | 88,430 |
Total assets | 2,773,664 | 2,711,800 |
Current liabilities: | ||
Current portion of long-term debt and capital leases | 27,225 | 27,313 |
Accounts payable | 64,652 | 68,485 |
Accrued compensation | 84,732 | 93,471 |
Deferred revenue | 119,336 | 127,731 |
Accrued liabilities | 99,128 | 84,470 |
Other current liabilities | 27,362 | 26,500 |
Current liabilities of discontinued operations | 1,636 | 1,623 |
Total current liabilities | 424,071 | 429,593 |
Long-term debt, net and capital leases | 1,116,278 | 1,207,696 |
Deferred tax liabilities | 82,956 | 55,717 |
Other long-term liabilities | 163,799 | 159,239 |
Long-term liabilities of discontinued operations | 4,849 | 5,771 |
Total liabilities | 1,791,953 | 1,858,016 |
Commitments and contingencies (Note 13) | ||
Redeemable noncontrolling interest | 15,317 | 14,659 |
Equity: | ||
Preferred stock, $0.01 par value; 20,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 120,000 shares authorized; 87,329 shares issued and 47,586 shares outstanding as of July 1, 2017, and 86,301 shares issued and 47,363 shares outstanding as of December 31, 2016 | 873 | 863 |
Additional paid-in capital | 2,528,742 | 2,477,371 |
Retained earnings | 266,033 | 165,303 |
Treasury stock, at cost 39,743 shares and 38,938 shares as of July 1, 2017, and December 31, 2016, respectively | (1,623,825) | (1,553,005) |
Accumulated other comprehensive loss | (208,327) | (253,764) |
Total equity attributable to common shareholders | 963,496 | 836,768 |
Noncontrolling interests | 2,898 | 2,357 |
Total equity | 966,394 | 839,125 |
Total liabilities, redeemable noncontrolling interest and equity | 2,773,664 | 2,711,800 |
Client relationships, net | ||
Current assets: | ||
Client relationships and Other intangible assets, net | 299,348 | 320,157 |
Other intangible assets, net | ||
Current assets: | ||
Client relationships and Other intangible assets, net | $ 69,446 | $ 74,291 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Jul. 01, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 87,329,000 | 86,301,000 |
Common stock, shares outstanding (in shares) | 47,586,000 | 47,363,000 |
Treasury stock (in shares) | 39,743,000 | 38,938,000 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2017 | Jun. 25, 2016 | |
Cash flows relating to operating activities | ||
Net income | $ 101,561 | $ 73,106 |
Less: Loss from discontinued operations, net of income taxes | (75) | (14) |
Income from continuing operations, net of income taxes | 101,636 | 73,120 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 64,210 | 57,008 |
Stock-based compensation | 21,376 | 22,047 |
Deferred income taxes | 22,951 | (1,848) |
Gain on divestiture | (10,577) | 0 |
Other, net | (1,555) | (7,630) |
Changes in assets and liabilities: | ||
Trade receivables, net | (26,596) | (27,636) |
Inventories | (7,746) | (1,685) |
Accounts payable | (6,828) | 19,723 |
Accrued compensation | (10,715) | (4,243) |
Other assets and liabilities, net | (11,803) | (2,900) |
Net cash provided by operating activities | 134,353 | 125,956 |
Cash flows relating to investing activities | ||
Acquisition of businesses and assets, net of cash acquired | 0 | (578,772) |
Capital expenditures | (31,917) | (20,041) |
Purchases of investments | (29,976) | (18,111) |
Proceeds from sale of investments and distributions from venture capital investments | 3,479 | 8,074 |
Proceeds from divestiture | 72,462 | 0 |
Other, net | (22) | 4,074 |
Net cash provided by (used in) investing activities | 14,026 | (604,776) |
Cash flows relating to financing activities | ||
Proceeds from long-term debt and revolving credit facility | 136,224 | 881,975 |
Proceeds from exercises of stock options | 29,955 | 19,823 |
Payments on long-term debt, revolving credit facility and capital lease obligations | (249,973) | (375,209) |
Purchase of treasury stock | (70,820) | (12,198) |
Other, net | (450) | (4,142) |
Net cash (used in) provided by financing activities | (155,064) | 510,249 |
Discontinued operations | ||
Net cash used in operating activities from discontinued operations | (997) | (782) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 6,808 | 6,299 |
Net change in cash, cash equivalents, and restricted cash | (874) | 36,946 |
Cash, cash equivalents, and restricted cash, beginning of period | 119,894 | 119,963 |
Cash, cash equivalents, and restricted cash, end of period | 119,020 | 156,909 |
Supplemental cash flow information: | ||
Cash, cash equivalents, and restricted cash, end of period | $ 119,894 | $ 119,963 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jul. 01, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying condensed consolidated financial statements are unaudited and have been prepared by Charles River Laboratories International, Inc. (the Company) in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission. The year-end condensed consolidated balance sheet data was derived from the Company’s audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for fiscal year 2016 . The unaudited condensed consolidated financial statements, in the opinion of management, reflect all normal and recurring adjustments necessary for a fair statement of the Company’s financial position and results of operations. The Company has reclassified certain amounts in the unaudited condensed consolidated statements of cash flow for prior periods to conform to the current year presentation. See “Newly Adopted Accounting Pronouncements” below. Use of Estimates The preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires that the Company make estimates and judgments that may affect the reported amounts of assets, liabilities, redeemable noncontrolling interest, revenues, expenses and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, judgments and methodologies. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Changes in estimates are reflected in reported results in the period in which they become known. Consolidation The Company’s unaudited condensed consolidated financial statements reflect its financial statements and those of its subsidiaries in which the Company holds a controlling financial interest. For consolidated entities in which the Company owns or is exposed to less than 100% of the economics, the Company records net income (loss) attributable to noncontrolling interests in its consolidated statements of income equal to the percentage of the economic or ownership interest retained in such entities by the respective noncontrolling parties. Intercompany balances and transactions are eliminated in consolidation. The Company’s fiscal year is typically based on a 52-week year, with each quarter composed of 13 weeks ending on the last Saturday on, or closest to, March 31, June 30, September 30, and December 31. A 53 rd week was included in the fourth quarter of fiscal year 2016, which is occasionally necessary to align with a December 31 calendar year-end. Summary of Significant Accounting Policies The Company’s significant accounting policies are described in Note 1, “Description of Business and Summary of Significant Accounting Policies,” in the Company’s Annual Report on Form 10-K for fiscal year 2016 . Newly Adopted Accounting Pronouncements In November 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-18, “Restricted Cash.” The standard addresses the classification and presentation of restricted cash and restricted cash equivalents within the statement of cash flows. The Company elected to early adopt this standard in fiscal year 2017 and applied the changes retrospectively to all prior periods presented in its unaudited condensed consolidated statements of cash flows. The Company historically excluded restricted cash balances, recorded in current and long-term other assets, from cash and cash equivalents within the unaudited consolidated statements of cash flows, reflecting transfers between cash, cash equivalents, and restricted cash as a cash flow classified within cash flows relating to operating activities. As a result of the adoption of this standard, the Company combined restricted cash balances of $2.3 million and $2.0 million as of June 25, 2016 , and December 26, 2015, respectively, with cash and cash equivalents when reconciling the beginning and ending balances within the unaudited condensed consolidated statements of cash flows for the six months ended June 25, 2016 . In August 2016, the FASB issued ASU 2016-15, “ Classification of Certain Cash Receipts and Cash Payments.” The standard addresses the classification of certain transactions within the statement of cash flows, including cash payments for debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, and distributions received from equity method investments. The Company elected to early adopt this standard in fiscal year 2017 and applied the changes retrospectively to all prior periods presented within its unaudited condensed consolidated statements of cash flows. The adoption of this standard had no impact within the unaudited condensed consolidated statement of cash flows for the six months ended June 25, 2016 . In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” The standard reduces complexity in several aspects of the accounting for employee share-based compensation, including the income tax consequences, classification of awards as either equity or liabilities, and classification within the statement of cash flows. The Company adopted this standard in fiscal year 2017, and applied the changes as required by each amendment to its unaudited condensed consolidated financial statements and related disclosures. Under ASU 2016-09, the Company adopted the amendment to recognize excess tax benefits and tax deficiencies in the consolidated statement of income on a prospective basis, to present excess tax benefits within operating activities within the unaudited condensed consolidated statements of cash flows on a retrospective basis, and elected to change its accounting policy to account for forfeitures as they occur on a modified retrospective basis. The adoption to recognize excess tax benefits and tax deficiencies within the unaudited condensed consolidated statements of income on a prospective basis could result in fluctuations in the effective tax rate period-over-period depending on how many awards vest and the volatility of the Company’s stock price. During the three months ended July 1, 2017 , the impact to the provision for income taxes within the unaudited condensed consolidated statements of income was an excess tax benefit of $1.3 million . During the six months ended July 1, 2017 , the impact on the provision for income taxes within the unaudited condensed consolidated statements of income was an excess tax benefit of $8.8 million . Further, for the three and six months ended July 1, 2017 , the Company excluded the effect of windfall tax benefits from the hypothetical proceeds used to calculate the repurchase of shares under the treasury stock method for the calculation of diluted earnings per share. The adoption of the amendment to present excess tax benefits within operating activities within the unaudited condensed consolidated statements of cash flows on a retrospective basis resulted in the reclassification of a cash inflow of $9.1 million from cash provided by financing activities to cash provided by operating activities for the six months ended June 25, 2016 . The Company had previously classified cash paid for tax withholding purposes as a financing activity within the unaudited condensed consolidated statements of cash flows; therefore, there was no change related to this requirement under the amendment. The Company’s election to change its accounting policy to account for forfeitures when they occur on a modified retrospective basis resulted in an immaterial impact on its unaudited condensed consolidated financial statements and related disclosures. Newly Issued Accounting Pronouncements In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The standard requires an employer to disaggregate the service cost component from the other components of net benefit cost and provides explicit guidance on the presentation of the service cost component and the other components of net benefit cost in the statements of income. The ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years, and should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost in the statements of income. Early adoption is permitted within the first interim period of the fiscal year. The Company is still evaluating the impact this standard will have on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment.” The standard simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. This standard is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and will be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is still evaluating the impact this standard will have on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-01, “Clarifying the Definition of a Business.” The standard clarifies the definition of a business by adding guidance to assist entities in evaluating whether transactions should be accounted for as acquisitions of assets or businesses. This standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for certain transactions. The Company is still evaluating the impact this standard will have on its consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory.” The standard requires the immediate recognition of tax effects for an intra-entity asset transfer other than inventory. This standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, “Leases.” The standard established the principles that lessees and lessors will apply to report useful information to users of financial statements about the amount, timing and uncertainty of cash flows arising from a lease. This standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company is still evaluating the full impact this standard will have on its consolidated financial statements and related disclosures, but expects to recognize substantially all of its leases on the balance sheet by recording a right-to-use asset and a corresponding lease liability. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” The standard, including subsequently issued amendments, will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either a modified retrospective or cumulative effect transition method. The standard will require an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard will be effective for annual and interim periods beginning after December 15, 2017. The Company formed an implementation team during fiscal year 2016 to oversee adoption of the new standard. The implementation team has completed its initial assessment of the new standard, including a detailed review of the Company’s contract portfolio, revenue streams to identify potential differences in accounting as a result of the new standard, and selected the modified retrospective transition method. The Company continues to assess the impact on the existing revenue accounting policies, newly required financial statement disclosures, and executing on the project plan. Currently, the Company is finalizing contract reviews, working through anticipated changes to systems and business processes, and internal controls to support the adoption of the new standard. |
Business Acquisitions and Dives
Business Acquisitions and Divestiture | 6 Months Ended |
Jul. 01, 2017 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITIONS AND DIVESTITURE | BUSINESS ACQUISITIONS AND DIVESTITURE Brains On-Line On August 4, 2017, the Company acquired Brains On-Line, a leading contract research organization (CRO) providing critical data that advances novel therapeutics for the treatment of central nervous system (CNS) diseases. Brains On-Line strategically expands the Company’s existing CNS capabilities and establishes the Company as a single-source provider for a broad portfolio of discovery CNS services. The preliminary purchase price for Brains On-Line was approximately € 18 million in cash, subject to certain post-closing adjustments. In addition to the initial purchase price, the transaction includes potential additional payments of up to € 6.7 million based on future performance. The Brains On-Line business will be reported as part of the Company’s DSA reportable segment. Due to the limited time between the acquisition date and the filing of this Quarterly Report on Form 10-Q, it was not practicable for the Company to disclose the preliminary allocation of purchase price to assets acquired and liabilities assumed. Agilux On September 28, 2016 , the Company acquired Agilux Laboratories, Inc. (Agilux), a CRO that provides a suite of integrated discovery bioanalytical services for small and large molecules, drug metabolism and pharmacokinetic services, and pharmacology services. The acquisition supports the Company’s strategy to offer clients a broader, integrated portfolio that provides services continuously from the earliest stages of drug research through the non-clinical development process. The purchase price for Agilux was $64.9 million in cash and was funded by borrowings on the Company’s revolving credit facility. The business is reported as part of the Company’s DSA reportable segment. The purchase price allocation of $62.0 million , net of $2.9 million of cash acquired, was as follows: September 28, 2016 (in thousands) Trade receivables (contractual amount of $4,799) $ 4,799 Other current assets (excluding cash) 994 Property, plant and equipment 3,907 Other long-term assets 11 Definite-lived intangible assets 21,900 Goodwill 44,317 Current liabilities (3,812 ) Long-term liabilities (10,091 ) Total purchase price allocation $ 62,025 The purchase price allocations are subject to change as additional information becomes available concerning the fair value and tax basis of the assets acquired and liabilities assumed. Any additional adjustments to the purchase price allocation will be made as soon as practicable but no later than one year from the date of acquisition. From the date of the acquisition through July 1, 2017 , the Company recorded measurement-period adjustments related to the acquisition that resulted in an immaterial change to the purchase price allocation on a consolidated basis. The breakout of definite-lived intangible assets acquired was as follows: Definite-Lived Intangible Assets Weighted Average Amortization Life (in thousands) (in years) Client relationships $ 16,700 17 Other intangible assets 5,200 4 Total definite-lived intangible assets $ 21,900 14 The goodwill resulting from the transaction is primarily attributable to the potential growth of the Company’s DSA businesses from customers and technology introduced through Agilux and the assembled workforce of the acquired business. The goodwill attributable to Agilux is not deductible for tax purposes. The Company incurred $0.1 million and $0.3 million in transaction and integration costs in connection with the acquisition during the three and six months ended July 1, 2017 , respectively, which were included in selling, general and administrative expenses, within the unaudited condensed consolidated statements of income. Blue Stream On June 27, 2016 , the Company acquired Blue Stream Laboratories, Inc. (Blue Stream), an analytical CRO supporting the development of complex biologics and biosimilars. Combining Blue Stream with the Company’s existing discovery, safety assessment, and biologics capabilities created a leading CRO that has the ability to support biologic and biosimilar development from characterization through clinical testing and commercialization. The purchase price for Blue Stream was $11.7 million , including $3.0 million in contingent consideration, and was subject to certain customary adjustments. The acquisition was funded by borrowings on the Company’s revolving credit facility. The business is reported in the Company’s Manufacturing reportable segment. The Company estimated the fair value of this contingent consideration based on a probability-weighted set of outcomes. The contingent consideration is a one-time payment payable based on the achievement of a revenue target. The target was achieved and payment of the contingent consideration will be made in the third quarter of fiscal year 2017. The purchase price allocation of $11.7 million , net of a non-significant amount of cash acquired, was as follows: June 27, 2016 (in thousands) Trade receivables (contractual amount of $1,104) $ 1,104 Other current assets (excluding cash) 15 Property, plant and equipment 912 Other long-term assets 187 Definite-lived intangible assets 1,230 Goodwill 10,334 Current liabilities (1,132 ) Long-term liabilities (901 ) Total purchase price allocation $ 11,749 From the date of the acquisition through July 1, 2017 , the Company recorded measurement-period adjustments related to the acquisition that resulted in an immaterial change to the purchase price allocation on a consolidated basis. No further adjustments will be made to the purchase price allocation. The breakout of definite-lived intangible assets acquired was as follows: Definite-Lived Intangible Assets Weighted Average Amortization Life (in thousands) (in years) Client relationships $ 650 10 Other intangible assets 580 5 Total definite-lived intangible assets $ 1,230 7 The goodwill resulting from the transaction is primarily attributable to the potential growth of the Company’s Manufacturing segment from customers and technology introduced through Blue Stream, the assembled workforce of the acquired business, expected synergies, and the development of future proprietary processes. The goodwill attributable to Blue Stream is not deductible for tax purposes. The Company incurred non-significant transaction and integration costs in connection with the acquisition during the three and six months ended July 1, 2017 , which were included in selling, general and administrative expenses, within the unaudited condensed consolidated statements of income. The Company incurred $0.4 million of transaction and integration costs during the three and six months ended June 25, 2016, which were included in selling, general and administrative expenses, within the unaudited condensed consolidated statements of income. WIL Research On April 4, 2016 , the Company acquired WIL Research, a provider of safety assessment and CDMO services to biopharmaceutical, agricultural and industrial chemical companies worldwide. The acquisition enhanced the Company’s position as a leading global early-stage CRO by strengthening its ability to partner with clients across the drug discovery and development continuum. The purchase price for WIL Research was $604.8 million , including assumed liabilities of $0.4 million . The purchase price included payment for actual working capital of the acquired business. The acquisition was funded by cash on hand and borrowings on the Company’s $ 1.65B Credit Facility. See Note 7, “Long-Term Debt and Capital Lease Obligations.” WIL Research’s safety assessment and CDMO businesses are reported in the Company’s DSA and Manufacturing reportable segments, respectively. On February 10, 2017, the Company divested the CDMO business. The purchase price allocation of $577.4 million , net of $27.4 million of cash acquired, was as follows: April 4, 2016 (in thousands) Trade receivables (contractual amount of $48,625) $ 48,157 Inventories 2,296 Other current assets (excluding cash) 3,814 Property, plant and equipment 129,066 Other long-term assets 1,060 Definite-lived intangible assets 164,800 Goodwill 330,175 Deferred revenue (39,103 ) Other current liabilities (27,386 ) Long-term liabilities (35,488 ) Total purchase price allocation $ 577,391 The breakout of definite-lived intangible assets acquired was as follows: Definite-Lived Intangible Assets Weighted Average Amortization Life (in thousands) (in years) Client relationships $ 137,500 15 Developed technology 20,700 3 Backlog 6,600 1 Total definite-lived intangible assets $ 164,800 13 The goodwill resulting from the transaction, $19.0 million of which was deductible for tax purposes due to a prior asset acquisition, was primarily attributed to the potential growth of the Company’s DSA and Manufacturing businesses from clients introduced through WIL Research, the assembled workforce of the acquired business, and expected cost synergies. Subsequent to the divestiture of the CDMO business on February 10, 2017 , $14.8 million of the goodwill from the transaction is deductible for tax purposes. The Company incurred transaction and integration costs in connection with the acquisition of $0.7 million and $8.4 million for the three months ended July 1, 2017 and June 25, 2016 , respectively, which were included in selling, general and administrative expenses, within the unaudited condensed consolidated statements of income. The Company incurred transaction and integration costs in connection with the acquisition of $1.2 million and $12.4 million for the six months ended July 1, 2017 and June 25, 2016 , respectively, which were included in selling, general and administrative expenses, within the unaudited condensed consolidated statements of income. WIL Research revenue and operating income for each of the three and six months ended June 25, 2016 were $55.2 million and $1.0 million , respectively, since WIL Research was acquired on April 4, 2016. The following selected pro forma consolidated results of operations are presented as if the WIL Research acquisition had occurred as of the beginning of the period immediately preceding the period of acquisition after giving effect to certain adjustments. For the six months ended June 25, 2016 , these adjustments included additional amortization of intangible assets and depreciation of fixed assets of $2.7 million , reversal of interest expense on borrowings of $2.6 million , elimination of intercompany activity and other one-time costs, and the tax impacts of these adjustments. June 25, 2016 Three Months Ended Six Months Ended (in thousands, except per share amounts) Revenue $ 434,917 $ 849,455 Net income attributable to common shareholders 44,159 89,222 Earnings per common share Basic $ 0.94 $ 1.90 Diluted $ 0.92 $ 1.87 These pro forma results of operations have been prepared for comparative purposes only, and they do not purport to be indicative of the results of operations that actually would have resulted had the acquisition occurred on the date indicated or that may result in the future. No effect has been given for synergies, if any, that may have been realized through the acquisition. Contract Manufacturing On February 10, 2017 , the Company completed the divestiture of its CDMO business to Quotient Clinical Ltd., based in London, England, for $75.0 million in proceeds, net of $0.6 million in cash and cash equivalents transferred in conjunction with the sale and $0.3 million of working capital adjustments. The CDMO business was acquired in April 2016 as part of the acquisition of WIL Research and was reported in the Company’s Manufacturing reportable segment . Following a strategic review that was finalized subsequent to December 31, 2016, the Company determined that the CDMO business was not optimized within the Company’s portfolio at its current scale, and that the capital could be better deployed in other long-term growth opportunities. During the three months ended April 1, 2017, the Company recorded a gain on the divestiture of the CDMO business of $10.6 million , which was included in other income, net within the Company’s unaudited condensed consolidated statements of income. As of February 10, 2017 , the carrying amounts of the major classes of assets and liabilities associated with the divestiture of the CDMO business were as follows (in thousands): Assets Current assets $ 5,505 Property, plant and equipment, net 11,174 Goodwill 35,857 Long-term assets 17,154 Total assets $ 69,690 Liabilities Deferred revenue $ 4,878 Other current liabilities 1,158 Total liabilities $ 6,036 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 6 Months Ended |
Jul. 01, 2017 | |
Supplemental Balance Sheet Information [Abstract] | |
SUPPLEMENTAL BALANCE SHEET INFORMATION | SUPPLEMENTAL BALANCE SHEET INFORMATION The composition of trade receivables, net is as follows: July 1, 2017 December 31, 2016 (in thousands) Client receivables $ 306,238 $ 283,997 Unbilled revenue 94,515 82,203 Total 400,753 366,200 Less: Allowance for doubtful accounts (2,206 ) (2,150 ) Trade receivables, net $ 398,547 $ 364,050 The composition of inventories is as follows: July 1, 2017 December 31, 2016 (in thousands) Raw materials and supplies $ 18,319 $ 18,893 Work in process 14,774 13,681 Finished products 71,597 63,259 Inventories $ 104,690 $ 95,833 The composition of other current assets is as follows: July 1, 2017 December 31, 2016 (in thousands) Investments $ 23,476 $ 3,771 Prepaid income taxes 43,649 40,705 Restricted cash 568 532 Other current assets $ 67,693 $ 45,008 The composition of other assets is as follows: July 1, 2017 December 31, 2016 (in thousands) Life insurance policies $ 31,529 $ 29,456 Venture capital investments 54,857 45,331 Restricted cash 1,986 1,736 Other 12,760 11,907 Other assets $ 101,132 $ 88,430 The composition of other current liabilities is as follows: July 1, 2017 December 31, 2016 (in thousands) Accrued income taxes $ 26,425 $ 25,621 Other 937 879 Other current liabilities $ 27,362 $ 26,500 The composition of other long-term liabilities is as follows: July 1, 2017 December 31, 2016 (in thousands) Long-term pension liability $ 91,287 $ 89,984 Accrued executive supplemental life insurance retirement plan and deferred compensation plan 33,538 32,880 Other 38,974 36,375 Other long-term liabilities $ 163,799 $ 159,239 |
Venture Capital Investments
Venture Capital Investments | 6 Months Ended |
Jul. 01, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
VENTURE CAPITAL INVESTMENTS | VENTURE CAPITAL INVESTMENTS The Company invests in several venture capital funds that invest in start-up companies, primarily in the life sciences industry. The Company’s ownership interest in these funds ranges from 0.7% to 12.0% . The Company accounts for the investments in limited partnerships (LPs), which are variable interest entities, under the equity or cost method of accounting. The Company is not the primary beneficiary because it has no power to direct the activities that most significantly affect the LPs’ economic performance. The Company accounts for the investments in limited liability companies, which are not variable interest entities, under the equity method of accounting. The Company’s total commitments to the entities as of July 1, 2017 , were $87.7 million , of which the Company funded $45.5 million through that date. During the three and six months ended July 1, 2017 , the Company received dividends of zero and $4.4 million , respectively, from the entities. During the three and six months ended June 25, 2016 , the Company received no dividends from the entities. The Company recognized gains of $2.5 million and $5.0 million related to these investments for the three months ended July 1, 2017 and June 25, 2016 , respectively. The Company recognized gains of $6.7 million and $8.1 million related to these investments for the six months ended July 1, 2017 and June 25, 2016 , respectively. |
Fair Value
Fair Value | 6 Months Ended |
Jul. 01, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The Company has certain assets and liabilities recorded at fair value, which have been classified as Level 1, 2, or 3 within the fair value hierarchy: • Level 1 - Fair values are determined utilizing prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access, • Level 2 - Fair values are determined by utilizing quoted prices for identical or similar assets and liabilities in active markets or other market observable inputs such as interest rates, yield curves, and foreign currency spot rates, • Level 3 - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The fair value hierarchy level is determined by asset and liability class based on the lowest level of significant input. The observability of inputs may change for certain assets or liabilities. This condition could cause an asset or liability to be reclassified between levels. The Company recognizes transfers between levels within the fair value hierarchy, if any, at the end of each quarter. During the six months ended July 1, 2017 and June 25, 2016 , there were no transfers between levels. Valuation methodologies used for assets and liabilities measured or disclosed at fair value are as follows: • Cash equivalents - Valued at market prices determined through third-party pricing services; • Mutual funds - Valued at the unadjusted quoted net asset value of shares held by the Company; • Foreign currency forward contracts - Valued using market observable inputs, such as forward foreign exchange points and foreign exchanges rates; • Life insurance policies - Valued at cash surrender value based on the fair value of underlying investments; and • Contingent consideration - Valued based on a probability weighting of the future cash flows associated with the potential outcomes. Assets and liabilities measured at fair value on a recurring basis are summarized below: July 1, 2017 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents $ — $ 21 $ — $ 21 Other assets: Life insurance policies — 24,058 — 24,058 Total assets measured at fair value $ — $ 24,079 $ — $ 24,079 Other current liabilities: Contingent consideration $ — $ — $ 3,201 $ 3,201 Total liabilities measured at fair value $ — $ — $ 3,201 $ 3,201 December 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents $ — $ 21 $ — $ 21 Other assets: Life insurance policies — 22,121 — 22,121 Total assets measured at fair value $ — $ 22,142 $ — $ 22,142 Other current liabilities: Contingent consideration $ — $ — $ 3,621 $ 3,621 Total liabilities measured at fair value $ — $ — $ 3,621 $ 3,621 Contingent Consideration The following table provides a rollforward of the contingent consideration related to the business acquisitions. See Note 2, “Business Acquisitions and Divestiture.” Six Months Ended July 1, 2017 June 25, 2016 (in thousands) Beginning balance $ 3,621 $ 1,370 Additions — 600 Payments (406 ) (674 ) Total gains or losses (realized/unrealized): Reversal of previously recorded contingent liability and change in fair value (14 ) 13 Ending balance $ 3,201 $ 1,309 The unobservable inputs used in the fair value measurement of the Company’s contingent consideration are the probabilities of successful achievement of certain financial targets and a discount rate. Increases or decreases in any of the probabilities of success would result in a higher or lower fair value measurement, respectively. Increases or decreases in the discount rate would result in a lower or higher fair value measurement, respectively. Debt Instruments The book value of the Company’s term and revolving loans, which are variable rate loans carried at amortized cost, approximates the fair value based on current market pricing of similar debt. As the fair value is based on significant other observable inputs, including current interest and foreign currency exchange rates, it is deemed to be Level 2. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jul. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The following table provides a rollforward of the Company’s goodwill: Adjustments to Goodwill December 31, 2016 Acquisitions / (Divestitures) Transfers Foreign Exchange July 1, 2017 (in thousands) RMS $ 56,397 $ — $ — $ 793 $ 57,190 DSA 563,476 (9 ) — 18,125 581,592 Manufacturing 167,644 (36,000 ) — 6,027 137,671 Total $ 787,517 $ (36,009 ) $ — $ 24,945 $ 776,453 The reduction of goodwill during the six months ended July 1, 2017 related primarily to the divestiture of the CDMO business in the Manufacturing reportable segment. Intangible Assets, Net The following table displays intangible assets, net by major class: July 1, 2017 December 31, 2016 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in thousands) Backlog $ 7,970 $ (7,341 ) $ 629 $ 8,370 $ (6,390 ) $ 1,980 Technology 74,788 (20,539 ) 54,249 71,425 (14,314 ) 57,111 Trademarks and trade names 8,465 (4,311 ) 4,154 8,177 (4,124 ) 4,053 Other 16,978 (6,564 ) 10,414 16,775 (5,628 ) 11,147 Other intangible assets 108,201 (38,755 ) 69,446 104,747 (30,456 ) 74,291 Client relationships 518,555 (219,207 ) 299,348 519,123 (198,966 ) 320,157 Intangible assets $ 626,756 $ (257,962 ) $ 368,794 $ 623,870 $ (229,422 ) $ 394,448 During the six months ended July 1, 2017 , the Company divested the CDMO business, which resulted in a net decrease of $ 16.8 million and $ 0.3 million to client relationships and backlog, respectively. During the three months ended March 26, 2016 , the Company determined that the carrying values of certain DSA intangible assets were not recoverable and recorded an impairment charge of $ 1.9 million , which was included in costs of services provided (excluding amortization of intangible assets) within the unaudited condensed consolidated statements of income. |
Long-Term Debt and Capital Leas
Long-Term Debt and Capital Lease Obligations | 6 Months Ended |
Jul. 01, 2017 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS | LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS Long-Term Debt Long-term debt, net consists of the following: July 1, 2017 December 31, 2016 (in thousands) Term loans $ 617,500 $ 633,750 Revolving credit facility 498,290 578,759 Other long-term debt 3,705 185 Total debt 1,119,495 1,212,694 Less: current portion of long-term debt (24,576 ) (24,560 ) Long-term debt 1,094,919 1,188,134 Debt discount and debt issuance costs (6,697 ) (7,633 ) Long-term debt, net $ 1,088,222 $ 1,180,501 As of July 1, 2017 and December 31, 2016 , the weighted average interest rate on the Company’s debt was 2.34% and 1.89% , respectively. On March 30, 2016, the Company amended and restated its credit facility creating a $ 1.65 billion credit facility ($ 1.65B Credit Facility). In connection with the amendment and restatement, the Company expensed $ 1.4 million of debt issuance costs in the six months ended June 25, 2016 . The $ 1.65B Credit Facility provides for a $ 650.0 million term loan and a $ 1.0 billion multi-currency revolving facility. The term loan facility matures in 19 quarterly installments with the last installment due March 30, 2021. The revolving facility matures on March 30, 2021, and requires no scheduled payment before that date. Under specified circumstances, the Company has the ability to increase the term loan and/or revolving line of credit by up to $ 500.0 million in the aggregate. The interest rates applicable to the term loan and revolving loans under the $ 1.65B Credit Facility are, at the Company’s option, equal to either the base rate (which is the higher of (1) the prime rate, (2) the federal funds rate plus 0.50% , or (3) the one-month adjusted LIBOR rate plus 1.0% ) or the adjusted LIBOR rate, plus an interest rate margin based upon the Company’s leverage ratio. The $ 1.65B Credit Facility includes certain customary representations and warranties, events of default, notices of material adverse changes to the Company’s business and negative and affirmative covenants. These covenants include (1) maintenance of a ratio of consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) less capital expenditures to consolidated cash interest expense, for any period of four consecutive fiscal quarters, of no less than 3.50 to 1.0 as well as (2) maintenance of a ratio of consolidated indebtedness to consolidated EBITDA for any period of four consecutive fiscal quarters, of no more than 4.0 to 1.0 with step downs to 3.50 to 1.0 by the last day of the three months ended December 30, 2017. As of July 1, 2017 , the Company was compliant with all covenants. The obligations of the Company under the $ 1.65B Credit Facility are collateralized by substantially all of the assets of the Company. Letters of Credit As of July 1, 2017 and December 31, 2016 , the Company had $4.9 million in outstanding letters of credit. Capital Lease Obligations The Company’s capital lease obligations amounted to $30.7 million and $29.9 million as of July 1, 2017 and December 31, 2016 , respectively. |
Equity and Redeemable Noncontro
Equity and Redeemable Noncontrolling Interest | 6 Months Ended |
Jul. 01, 2017 | |
Equity [Abstract] | |
EQUITY AND REDEEMABLE NONCONTROLLING INTEREST | EQUITY AND REDEEMABLE NONCONTROLLING INTEREST Earnings Per Share The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share: Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) Numerator: Income from continuing operations, net of income taxes $ 54,673 $ 35,545 $ 101,636 $ 73,120 Income (loss) from discontinued operations, net of income taxes (71 ) 12 (75 ) (14 ) Less: Net income attributable to noncontrolling interests 650 350 831 756 Net income attributable to common shareholders $ 53,952 $ 35,207 $ 100,730 $ 72,350 Denominator: Weighted-average shares outstanding - Basic 47,591 47,061 47,569 46,852 Effect of dilutive securities: Stock options, restricted stock units, performance share units and restricted stock 751 858 835 939 Weighted-average shares outstanding - Diluted 48,342 47,919 48,404 47,791 Options to purchase 0.6 million and 0.8 million shares for the three months ended July 1, 2017 and June 25, 2016 , respectively, as well as an insignificant number of restricted shares, restricted stock units (RSUs), and performance share units (PSUs), were not included in computing diluted earnings per share because their inclusion would have been anti-dilutive. Options to purchase 0.6 million and 0.9 million shares for the six months ended July 1, 2017 and June 25, 2016 , respectively, as well as an insignificant number of restricted shares, RSUs and PSUs were not included in computing diluted earnings per share because their inclusion would have been anti-dilutive. Basic weighted average shares outstanding for both the six months ended July 1, 2017 and June 25, 2016 excluded the impact of 1.1 million shares of non-vested restricted stock and restricted stock units. Treasury Shares During the six months ended July 1, 2017 , the Company repurchased 0.6 million shares totaling $54.6 million under its authorized stock repurchase program. No shares were repurchased in the six months ended June 25, 2016 . On May 9, 2017, the Company’s Board of Directors increased the stock repurchase authorization by $150 million , to an aggregate amount of $1.3 billion . As of July 1, 2017 , the Company had $165.1 million remaining on the authorized stock repurchase program. The Company’s stock-based compensation plans permit the netting of common stock upon vesting of restricted stock, RSUs and PSUs in order to satisfy individual statutory tax withholding requirements. During the six months ended July 1, 2017 and June 25, 2016 , the Company acquired 0.2 million shares for $16.3 million and 0.2 million shares for $12.2 million , respectively, from such netting. Accumulated Other Comprehensive Income Changes to each component of accumulated other comprehensive income, net of income taxes, are as follows: Foreign Currency Translation Adjustment and Other Pension and Other Post-Retirement Benefit Plans Total (in thousands) December 31, 2016 $ (154,595 ) $ (99,169 ) $ (253,764 ) Other comprehensive loss before reclassifications 44,305 — 44,305 Amounts reclassified from accumulated other comprehensive income (loss) — 1,755 1,755 Net current period other comprehensive income 44,305 1,755 46,060 Income tax expense — 623 623 July 1, 2017 $ (110,290 ) $ (98,037 ) $ (208,327 ) Nonredeemable Noncontrolling Interest The Company has an investment in an entity whose financial results are consolidated in the Company’s financial statements, as it has the ability to exercise control over this entity. The interest of the noncontrolling party in this entity has been recorded as noncontrolling interest. The activity within the nonredeemable noncontrolling interest was not significant during the three and six months ended July 1, 2017 and June 25, 2016 . Redeemable Noncontrolling Interest The Company’s redeemable noncontrolling interest resulted from an acquisition of a 75% ownership interest in Vital River in January 2013 and a purchase of an additional 12% equity interest in Vital River in July 2016, totaling an ownership of 87% . Prior to the purchase of an additional 12% equity interest on July 7, 2016, the redeemable noncontrolling interest was reported at fair value. Concurrent with the purchase of an additional equity interest, the original agreement was amended providing the Company with the right to purchase, and the noncontrolling interest holders with the right to sell, the remaining 13% equity interest at a contractually defined redemption value, subject to a redemption floor (embedded derivative). These rights are exercisable beginning in 2019 and are accelerated in certain events. The redeemable noncontrolling interest is measured at the greater of the amount that would be paid if settlement occurred as of the balance sheet date based on the contractually defined redemption value ($ 14.6 million as of July 1, 2017 ) and its carrying amount adjusted for net income (loss) attributable to the noncontrolling interest. As the noncontrolling interest holders have the ability to require the Company to purchase the remaining 13% interest, the noncontrolling interest is classified in the mezzanine section of the condensed consolidated balance sheet, which is presented above the equity section and below liabilities. The agreement does not limit the amount that the Company could be required to pay to purchase the remaining 13% equity interest. The following table provides a rollforward of the activity related to the Company’s redeemable noncontrolling interest: Six Months Ended July 1, 2017 June 25, 2016 (in thousands) Beginning balance $ 14,659 $ 28,008 Total gains or losses (realized/unrealized): Net income attributable to noncontrolling interest 291 320 Foreign currency translation 367 (653 ) Change in fair value, included in additional paid-in capital — (1,851 ) Ending balance $ 15,317 $ 25,824 |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 01, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s effective tax rate for the three months ended July 1, 2017 and June 25, 2016 was 28.9% and 34.6% , respectively. The Company’s effective tax rate for the six months ended July 1, 2017 and June 25, 2016 was 34.4% and 31.0% , respectively. For the three months ended July 1, 2017 , the decrease was primarily attributable to the excess tax benefit associated with stock compensation of $1.3 million as a result of the adoption of ASU 2016-09, and prior year non-deductible transaction costs associated with the purchase of WIL Research. For the six months ended July 1, 2017 , the increase was primarily attributable to the tax on the gain on the divestiture of the CDMO business of $18.0 million , offset by the excess tax benefit associated with stock compensation of $8.8 million as a result of the adoption of ASU 2016-09. During the three months ended July 1, 2017 , the Company’s unrecognized income tax benefits increased by $0.9 million to $26.0 million , primarily due to an additional quarter of Canadian Scientific Research and Experimental Development credit reserves and unfavorable foreign exchange movement. The amount of unrecognized income tax benefits that would impact the effective tax rate increased by $0.7 million to $22.9 million , for the same reasons noted above. As of July 1, 2017 , the amount of accrued interest and penalties on unrecognized tax benefits was $2.4 million . The Company estimates that it is reasonably possible that the unrecognized tax benefits will decrease by up to $5.0 million over the next twelve-month period, primarily as a result of the outcome of a pending tax ruling and competent authority proceedings. The Company conducts business in a number of tax jurisdictions. As a result, it is subject to tax audits in jurisdictions including the U.S., U.K., China, Japan, France, Germany, and Canada. With few exceptions, the Company is no longer subject to U.S. and international income tax examinations for years before 2013. The Company and certain of its subsidiaries have ongoing tax controversies with various tax authorities in the U.S., Canada, Germany, and France. The Company does not believe that resolution of these controversies will have a material impact on its financial position or results of operations. In accordance with the Company’s policy, the remaining undistributed earnings of its non-U.S. subsidiaries remain indefinitely reinvested as of July 1, 2017 , as they are required to fund needs outside the U.S. and cannot be repatriated in a manner that is substantially tax free. Income tax expense related to changes in unrecognized pension gains, losses, and prior service costs was $0.4 million and $0.1 million for the three months ended July 1, 2017 and June 25, 2016 , respectively. Income tax expense related to changes in unrecognized pension gains, losses, and prior service costs was $0.6 million and $0.3 million for the six months ended July 1, 2017 and June 25, 2016 , respectively. |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefit Plans | 6 Months Ended |
Jul. 01, 2017 | |
Retirement Benefits [Abstract] | |
PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS | PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS The following table provides the components of net periodic cost for the Company’s pension, deferred compensation and executive supplemental life insurance retirement plans: Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) Service cost $ 774 $ 639 $ 1,528 $ 1,193 Interest cost 2,939 3,220 5,765 6,584 Expected return on plan assets (3,485 ) (3,998 ) (6,935 ) (7,990 ) Amortization of prior service credit (139 ) (144 ) (258 ) (288 ) Amortization of net loss 1,047 545 2,013 1,091 Net periodic cost $ 1,136 $ 262 $ 2,113 $ 590 The net periodic cost for the Company’s post-retirement benefit plan for the three and six months ended July 1, 2017 and June 25, 2016 was not significant. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jul. 01, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company has stock-based compensation plans under which employees and non-employee directors may be granted stock-based awards such as stock options, restricted stock, RSUs, and PSUs. The following table provides stock-based compensation by the financial statement line item in which it is reflected: Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) Cost of revenue $ 1,743 $ 1,667 $ 3,289 $ 3,349 Selling, general and administrative 10,147 10,439 18,087 18,698 Stock-based compensation, before income taxes 11,890 12,106 21,376 22,047 Provision for income taxes (4,276 ) (4,354 ) (7,584 ) (7,868 ) Stock-based compensation, net of income taxes $ 7,614 $ 7,752 $ 13,792 $ 14,179 During the six months ended July 1, 2017 , the Company granted stock options as to 0.6 million common shares with a per share weighted average grant date fair value of $18.27 , RSUs as to 0.2 million common shares with a per share weighted average grant date fair value of $88.08 , and PSUs as to 0.2 million common shares with a per share weighted average grant date fair value of $99.24 . The maximum number of common shares to be issued upon vesting of PSUs granted during the six months ended July 1, 2017 is 0.4 million . |
Foreign Currency Contracts
Foreign Currency Contracts | 6 Months Ended |
Jul. 01, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FOREIGN CURRENCY CONTRACTS | FOREIGN CURRENCY CONTRACTS The Company enters into foreign exchange forward contracts to limit its foreign currency exposure related to intercompany loans that are not of a long-term investment nature. These contracts are recorded at fair value in the Company’s unaudited condensed consolidated balance sheet and are not designated as hedging instruments. Any gains or losses on such contracts are immediately recognized in other income, net, and are largely offset by the remeasurement of the underlying intercompany loan balances. The Company did not have any foreign currency contracts open as of July 1, 2017 and December 31, 2016 . The following table summarizes gains recognized on foreign exchange forward contracts related to intercompany loans denominated in Euros on the Company’s unaudited condensed consolidated statements of income: Three Months Ended Six Months Ended Location of Gain July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) Other income, net $ — $ 1,130 $ — $ 3,373 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 01, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation Various lawsuits, claims and proceedings of a nature considered normal to its business are pending against the Company. While the outcome of any of these proceedings cannot be accurately predicted, the Company does not believe the ultimate resolution of any of these existing matters would have a material adverse effect on the Company’s business or financial condition. Lease Commitments During the six months ended July 1, 2017 , the Company assumed or entered into new lease agreements or exercised options to extend the lease terms for certain existing leases. As a result, the Company’s lease obligations through 2027 increased by $20.4 million . |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Restructuring and Asset Impairment | 6 Months Ended |
Jul. 01, 2017 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND ASSET IMPAIRMENT | RESTRUCTURING AND ASSET IMPAIRMENTS Workforce Reductions In recent fiscal years, the Company has been undertaking productivity improvement initiatives at various facilities. The following table provides a rollforward of the Company’s severance and transition costs liabilities related to those initiatives: Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) Beginning balance $ 3,451 $ 2,521 $ 3,680 $ 2,969 Expense 1,193 4,099 2,210 4,120 Payments / utilization (820 ) (2,940 ) (2,093 ) (3,353 ) Foreign currency adjustments 180 (2 ) 207 (58 ) Ending balance $ 4,004 $ 3,678 $ 4,004 $ 3,678 As of July 1, 2017 , $4.0 million of severance and other personnel related costs liabilities were included in accrued compensation within the Company’s unaudited condensed consolidated balance sheet. The following table presents severance and transition costs by classification within the unaudited condensed consolidated statements of income: Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) Cost of services provided and products sold (excluding amortization of intangible assets) $ 554 $ 367 $ 1,477 $ 388 Selling, general and administrative 639 3,732 733 3,732 Total severance and transition costs $ 1,193 $ 4,099 $ 2,210 $ 4,120 The following presents severance and transition related costs by reportable segment: Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) RMS $ 183 $ — $ 183 $ — DSA 344 4,099 540 4,120 Manufacturing 506 — 1,327 — Corporate 160 — 160 — Total severance and transition costs $ 1,193 $ 4,099 $ 2,210 $ 4,120 Facilities During the three months ended July 1, 2017 , the Company continued the consolidation of certain DSA facilities in the U.S., Ireland, and the U.K. As a result, the company recorded $0.1 million and an insignificant amount to other costs, related to the consolidation plans. During the three months ended June 25, 2016 , the consolidation of certain RMS and DSA facilities in the U.S. and the U.K. resulted in the Company recording $0.2 million of accelerated depreciation related to these activities. During the six months ended July 1, 2017 , the Company continued the consolidation of certain DSA facilities in the U.S., Ireland, and the U.K. As a result, an asset impairment charge of $0.2 million and other costs of $0.4 million were recorded related to the consolidation plans. During the six months ended June 25, 2016 , the consolidation of certain RMS and DSA facilities in the U.S. and the U.K. resulted in the Company recording $0.4 million of accelerated depreciation related to these activities. |
Segment Information
Segment Information | 6 Months Ended |
Jul. 01, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The following table presents revenue and other financial information by reportable segment: Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) RMS Revenue $ 124,002 $ 125,058 $ 251,163 $ 248,397 Operating income 33,579 35,445 71,290 71,831 Depreciation and amortization 4,945 5,118 10,037 10,368 Capital expenditures 4,404 2,381 7,007 3,434 DSA Revenue $ 252,092 $ 221,059 $ 479,850 $ 379,042 Operating income 51,690 32,381 90,350 63,211 Depreciation and amortization 18,965 18,600 38,334 30,557 Capital expenditures 7,102 4,644 15,425 9,351 Manufacturing Revenue $ 93,035 $ 87,938 $ 183,879 $ 161,484 Operating income 29,041 27,121 55,642 46,736 Depreciation and amortization 5,787 6,525 11,749 12,501 Capital expenditures 1,939 4,256 4,231 6,385 For the three months ended July 1, 2017 and June 25, 2016 , reconciliations of segment operating income, depreciation and amortization, and capital expenditures to the respective consolidated amounts are as follows: Operating Income Depreciation and Amortization Capital Expenditures July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) Total reportable segments $ 114,310 $ 94,947 $ 29,697 $ 30,243 $ 13,445 $ 11,281 Unallocated corporate (33,000 ) (36,886 ) 2,102 2,110 2,552 510 Total consolidated $ 81,310 $ 58,061 $ 31,799 $ 32,353 $ 15,997 $ 11,791 For the six months ended July 1, 2017 and June 25, 2016 , reconciliations of segment operating income, depreciation and amortization, and capital expenditures to the respective consolidated amounts are as follows: Operating Income Depreciation and Amortization Capital Expenditures July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) Total reportable segments $ 217,282 $ 181,778 $ 60,120 $ 53,426 $ 26,663 $ 19,170 Unallocated corporate (66,500 ) (72,245 ) 4,090 3,582 5,254 871 Total consolidated $ 150,782 $ 109,533 $ 64,210 $ 57,008 $ 31,917 $ 20,041 Revenue for each significant product or service offering is as follows: Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) RMS $ 124,002 $ 125,058 $ 251,163 $ 248,397 DSA 252,092 221,059 479,850 379,042 Manufacturing 93,035 87,938 183,879 161,484 Total revenue $ 469,129 $ 434,055 $ 914,892 $ 788,923 A summary of unallocated corporate expense consists of the following : Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) Stock-based compensation $ 7,421 $ 7,746 $ 13,004 $ 13,854 Compensation, benefits, and other employee-related expenses 11,079 7,738 26,041 20,279 External consulting and other service expenses 4,085 6,656 9,852 11,832 Information technology 3,617 2,364 6,010 5,496 Depreciation 2,102 2,111 4,090 3,583 Acquisition and integration 1,191 7,260 1,212 11,023 Other general unallocated corporate 3,505 3,011 6,291 6,178 Total unallocated corporate expense $ 33,000 $ 36,886 $ 66,500 $ 72,245 Other general unallocated corporate expense consists of various departmental costs including those associated with departments such as senior executives, corporate accounting, legal, tax, human resources, treasury, and investor relations. |
Basis of Presentation - Signifi
Basis of Presentation - Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 01, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | The preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires that the Company make estimates and judgments that may affect the reported amounts of assets, liabilities, redeemable noncontrolling interest, revenues, expenses and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, judgments and methodologies. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Changes in estimates are reflected in reported results in the period in which they become known. |
Consolidation | The Company’s unaudited condensed consolidated financial statements reflect its financial statements and those of its subsidiaries in which the Company holds a controlling financial interest. For consolidated entities in which the Company owns or is exposed to less than 100% of the economics, the Company records net income (loss) attributable to noncontrolling interests in its consolidated statements of income equal to the percentage of the economic or ownership interest retained in such entities by the respective noncontrolling parties. Intercompany balances and transactions are eliminated in consolidation. |
Fiscal Period | The Company’s fiscal year is typically based on a 52-week year, with each quarter composed of 13 weeks ending on the last Saturday on, or closest to, March 31, June 30, September 30, and December 31. A 53 rd week was included in the fourth quarter of fiscal year 2016, which is occasionally necessary to align with a December 31 calendar year-end. |
Newly Adopted and Issued Accounting Pronouncements | In November 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-18, “Restricted Cash.” The standard addresses the classification and presentation of restricted cash and restricted cash equivalents within the statement of cash flows. The Company elected to early adopt this standard in fiscal year 2017 and applied the changes retrospectively to all prior periods presented in its unaudited condensed consolidated statements of cash flows. The Company historically excluded restricted cash balances, recorded in current and long-term other assets, from cash and cash equivalents within the unaudited consolidated statements of cash flows, reflecting transfers between cash, cash equivalents, and restricted cash as a cash flow classified within cash flows relating to operating activities. As a result of the adoption of this standard, the Company combined restricted cash balances of $2.3 million and $2.0 million as of June 25, 2016 , and December 26, 2015, respectively, with cash and cash equivalents when reconciling the beginning and ending balances within the unaudited condensed consolidated statements of cash flows for the six months ended June 25, 2016 . In August 2016, the FASB issued ASU 2016-15, “ Classification of Certain Cash Receipts and Cash Payments.” The standard addresses the classification of certain transactions within the statement of cash flows, including cash payments for debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, and distributions received from equity method investments. The Company elected to early adopt this standard in fiscal year 2017 and applied the changes retrospectively to all prior periods presented within its unaudited condensed consolidated statements of cash flows. The adoption of this standard had no impact within the unaudited condensed consolidated statement of cash flows for the six months ended June 25, 2016 . In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” The standard reduces complexity in several aspects of the accounting for employee share-based compensation, including the income tax consequences, classification of awards as either equity or liabilities, and classification within the statement of cash flows. The Company adopted this standard in fiscal year 2017, and applied the changes as required by each amendment to its unaudited condensed consolidated financial statements and related disclosures. Under ASU 2016-09, the Company adopted the amendment to recognize excess tax benefits and tax deficiencies in the consolidated statement of income on a prospective basis, to present excess tax benefits within operating activities within the unaudited condensed consolidated statements of cash flows on a retrospective basis, and elected to change its accounting policy to account for forfeitures as they occur on a modified retrospective basis. The adoption to recognize excess tax benefits and tax deficiencies within the unaudited condensed consolidated statements of income on a prospective basis could result in fluctuations in the effective tax rate period-over-period depending on how many awards vest and the volatility of the Company’s stock price. During the three months ended July 1, 2017 , the impact to the provision for income taxes within the unaudited condensed consolidated statements of income was an excess tax benefit of $1.3 million . During the six months ended July 1, 2017 , the impact on the provision for income taxes within the unaudited condensed consolidated statements of income was an excess tax benefit of $8.8 million . Further, for the three and six months ended July 1, 2017 , the Company excluded the effect of windfall tax benefits from the hypothetical proceeds used to calculate the repurchase of shares under the treasury stock method for the calculation of diluted earnings per share. The adoption of the amendment to present excess tax benefits within operating activities within the unaudited condensed consolidated statements of cash flows on a retrospective basis resulted in the reclassification of a cash inflow of $9.1 million from cash provided by financing activities to cash provided by operating activities for the six months ended June 25, 2016 . The Company had previously classified cash paid for tax withholding purposes as a financing activity within the unaudited condensed consolidated statements of cash flows; therefore, there was no change related to this requirement under the amendment. The Company’s election to change its accounting policy to account for forfeitures when they occur on a modified retrospective basis resulted in an immaterial impact on its unaudited condensed consolidated financial statements and related disclosures. Newly Issued Accounting Pronouncements In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The standard requires an employer to disaggregate the service cost component from the other components of net benefit cost and provides explicit guidance on the presentation of the service cost component and the other components of net benefit cost in the statements of income. The ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years, and should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost in the statements of income. Early adoption is permitted within the first interim period of the fiscal year. The Company is still evaluating the impact this standard will have on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment.” The standard simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. This standard is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and will be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is still evaluating the impact this standard will have on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-01, “Clarifying the Definition of a Business.” The standard clarifies the definition of a business by adding guidance to assist entities in evaluating whether transactions should be accounted for as acquisitions of assets or businesses. This standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for certain transactions. The Company is still evaluating the impact this standard will have on its consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory.” The standard requires the immediate recognition of tax effects for an intra-entity asset transfer other than inventory. This standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, “Leases.” The standard established the principles that lessees and lessors will apply to report useful information to users of financial statements about the amount, timing and uncertainty of cash flows arising from a lease. This standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company is still evaluating the full impact this standard will have on its consolidated financial statements and related disclosures, but expects to recognize substantially all of its leases on the balance sheet by recording a right-to-use asset and a corresponding lease liability. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” The standard, including subsequently issued amendments, will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either a modified retrospective or cumulative effect transition method. The standard will require an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard will be effective for annual and interim periods beginning after December 15, 2017. The Company formed an implementation team during fiscal year 2016 to oversee adoption of the new standard. The implementation team has completed its initial assessment of the new standard, including a detailed review of the Company’s contract portfolio, revenue streams to identify potential differences in accounting as a result of the new standard, and selected the modified retrospective transition method. The Company continues to assess the impact on the existing revenue accounting policies, newly required financial statement disclosures, and executing on the project plan. Currently, the Company is finalizing contract reviews, working through anticipated changes to systems and business processes, and internal controls to support the adoption of the new standard. |
Business Acquisitions and Div23
Business Acquisitions and Divestiture (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The purchase price allocation of $577.4 million , net of $27.4 million of cash acquired, was as follows: April 4, 2016 (in thousands) Trade receivables (contractual amount of $48,625) $ 48,157 Inventories 2,296 Other current assets (excluding cash) 3,814 Property, plant and equipment 129,066 Other long-term assets 1,060 Definite-lived intangible assets 164,800 Goodwill 330,175 Deferred revenue (39,103 ) Other current liabilities (27,386 ) Long-term liabilities (35,488 ) Total purchase price allocation $ 577,391 The purchase price allocation of $62.0 million , net of $2.9 million of cash acquired, was as follows: September 28, 2016 (in thousands) Trade receivables (contractual amount of $4,799) $ 4,799 Other current assets (excluding cash) 994 Property, plant and equipment 3,907 Other long-term assets 11 Definite-lived intangible assets 21,900 Goodwill 44,317 Current liabilities (3,812 ) Long-term liabilities (10,091 ) Total purchase price allocation $ 62,025 The purchase price allocation of $11.7 million , net of a non-significant amount of cash acquired, was as follows: June 27, 2016 (in thousands) Trade receivables (contractual amount of $1,104) $ 1,104 Other current assets (excluding cash) 15 Property, plant and equipment 912 Other long-term assets 187 Definite-lived intangible assets 1,230 Goodwill 10,334 Current liabilities (1,132 ) Long-term liabilities (901 ) Total purchase price allocation $ 11,749 |
Definite-Lived Intangible Assets Acquired as Part of Business Combination | The breakout of definite-lived intangible assets acquired was as follows: Definite-Lived Intangible Assets Weighted Average Amortization Life (in thousands) (in years) Client relationships $ 137,500 15 Developed technology 20,700 3 Backlog 6,600 1 Total definite-lived intangible assets $ 164,800 13 The breakout of definite-lived intangible assets acquired was as follows: Definite-Lived Intangible Assets Weighted Average Amortization Life (in thousands) (in years) Client relationships $ 650 10 Other intangible assets 580 5 Total definite-lived intangible assets $ 1,230 7 The breakout of definite-lived intangible assets acquired was as follows: Definite-Lived Intangible Assets Weighted Average Amortization Life (in thousands) (in years) Client relationships $ 16,700 17 Other intangible assets 5,200 4 Total definite-lived intangible assets $ 21,900 14 |
Business Acquisition, Pro Forma Information | For the six months ended June 25, 2016 , these adjustments included additional amortization of intangible assets and depreciation of fixed assets of $2.7 million , reversal of interest expense on borrowings of $2.6 million , elimination of intercompany activity and other one-time costs, and the tax impacts of these adjustments. June 25, 2016 Three Months Ended Six Months Ended (in thousands, except per share amounts) Revenue $ 434,917 $ 849,455 Net income attributable to common shareholders 44,159 89,222 Earnings per common share Basic $ 0.94 $ 1.90 Diluted $ 0.92 $ 1.87 |
Carrying Amounts of Assets and Liabilities | As of February 10, 2017 , the carrying amounts of the major classes of assets and liabilities associated with the divestiture of the CDMO business were as follows (in thousands): Assets Current assets $ 5,505 Property, plant and equipment, net 11,174 Goodwill 35,857 Long-term assets 17,154 Total assets $ 69,690 Liabilities Deferred revenue $ 4,878 Other current liabilities 1,158 Total liabilities $ 6,036 |
Supplemental Balance Sheet In24
Supplemental Balance Sheet Information (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Supplemental Balance Sheet Information [Abstract] | |
Composition of Net Trade Receivables | The composition of trade receivables, net is as follows: July 1, 2017 December 31, 2016 (in thousands) Client receivables $ 306,238 $ 283,997 Unbilled revenue 94,515 82,203 Total 400,753 366,200 Less: Allowance for doubtful accounts (2,206 ) (2,150 ) Trade receivables, net $ 398,547 $ 364,050 |
Composition of Inventories | The composition of inventories is as follows: July 1, 2017 December 31, 2016 (in thousands) Raw materials and supplies $ 18,319 $ 18,893 Work in process 14,774 13,681 Finished products 71,597 63,259 Inventories $ 104,690 $ 95,833 |
Composition of Other Current Assets | The composition of other current assets is as follows: July 1, 2017 December 31, 2016 (in thousands) Investments $ 23,476 $ 3,771 Prepaid income taxes 43,649 40,705 Restricted cash 568 532 Other current assets $ 67,693 $ 45,008 |
Composition of Other Assets | The composition of other assets is as follows: July 1, 2017 December 31, 2016 (in thousands) Life insurance policies $ 31,529 $ 29,456 Venture capital investments 54,857 45,331 Restricted cash 1,986 1,736 Other 12,760 11,907 Other assets $ 101,132 $ 88,430 |
Composition of Other Current Liabilities | The composition of other current liabilities is as follows: July 1, 2017 December 31, 2016 (in thousands) Accrued income taxes $ 26,425 $ 25,621 Other 937 879 Other current liabilities $ 27,362 $ 26,500 |
Composition of Other Long-Term Liabilities | The composition of other long-term liabilities is as follows: July 1, 2017 December 31, 2016 (in thousands) Long-term pension liability $ 91,287 $ 89,984 Accrued executive supplemental life insurance retirement plan and deferred compensation plan 33,538 32,880 Other 38,974 36,375 Other long-term liabilities $ 163,799 $ 159,239 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: July 1, 2017 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents $ — $ 21 $ — $ 21 Other assets: Life insurance policies — 24,058 — 24,058 Total assets measured at fair value $ — $ 24,079 $ — $ 24,079 Other current liabilities: Contingent consideration $ — $ — $ 3,201 $ 3,201 Total liabilities measured at fair value $ — $ — $ 3,201 $ 3,201 December 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents $ — $ 21 $ — $ 21 Other assets: Life insurance policies — 22,121 — 22,121 Total assets measured at fair value $ — $ 22,142 $ — $ 22,142 Other current liabilities: Contingent consideration $ — $ — $ 3,621 $ 3,621 Total liabilities measured at fair value $ — $ — $ 3,621 $ 3,621 |
Fair Value, Contingent Consideration | The following table provides a rollforward of the contingent consideration related to the business acquisitions. See Note 2, “Business Acquisitions and Divestiture.” Six Months Ended July 1, 2017 June 25, 2016 (in thousands) Beginning balance $ 3,621 $ 1,370 Additions — 600 Payments (406 ) (674 ) Total gains or losses (realized/unrealized): Reversal of previously recorded contingent liability and change in fair value (14 ) 13 Ending balance $ 3,201 $ 1,309 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Rollforward of Goodwill | The following table provides a rollforward of the Company’s goodwill: Adjustments to Goodwill December 31, 2016 Acquisitions / (Divestitures) Transfers Foreign Exchange July 1, 2017 (in thousands) RMS $ 56,397 $ — $ — $ 793 $ 57,190 DSA 563,476 (9 ) — 18,125 581,592 Manufacturing 167,644 (36,000 ) — 6,027 137,671 Total $ 787,517 $ (36,009 ) $ — $ 24,945 $ 776,453 |
Schedule of Intangible Assets | The following table displays intangible assets, net by major class: July 1, 2017 December 31, 2016 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in thousands) Backlog $ 7,970 $ (7,341 ) $ 629 $ 8,370 $ (6,390 ) $ 1,980 Technology 74,788 (20,539 ) 54,249 71,425 (14,314 ) 57,111 Trademarks and trade names 8,465 (4,311 ) 4,154 8,177 (4,124 ) 4,053 Other 16,978 (6,564 ) 10,414 16,775 (5,628 ) 11,147 Other intangible assets 108,201 (38,755 ) 69,446 104,747 (30,456 ) 74,291 Client relationships 518,555 (219,207 ) 299,348 519,123 (198,966 ) 320,157 Intangible assets $ 626,756 $ (257,962 ) $ 368,794 $ 623,870 $ (229,422 ) $ 394,448 |
Long-Term Debt and Capital Le27
Long-Term Debt and Capital Lease Obligations (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt, net consists of the following: July 1, 2017 December 31, 2016 (in thousands) Term loans $ 617,500 $ 633,750 Revolving credit facility 498,290 578,759 Other long-term debt 3,705 185 Total debt 1,119,495 1,212,694 Less: current portion of long-term debt (24,576 ) (24,560 ) Long-term debt 1,094,919 1,188,134 Debt discount and debt issuance costs (6,697 ) (7,633 ) Long-term debt, net $ 1,088,222 $ 1,180,501 |
Equity and Redeemable Noncont28
Equity and Redeemable Noncontrolling Interest (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Equity [Abstract] | |
Reconciliation of the Numerator and Denominator in the Computations of the Basic and Diluted Earnings Per Share | The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share: Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) Numerator: Income from continuing operations, net of income taxes $ 54,673 $ 35,545 $ 101,636 $ 73,120 Income (loss) from discontinued operations, net of income taxes (71 ) 12 (75 ) (14 ) Less: Net income attributable to noncontrolling interests 650 350 831 756 Net income attributable to common shareholders $ 53,952 $ 35,207 $ 100,730 $ 72,350 Denominator: Weighted-average shares outstanding - Basic 47,591 47,061 47,569 46,852 Effect of dilutive securities: Stock options, restricted stock units, performance share units and restricted stock 751 858 835 939 Weighted-average shares outstanding - Diluted 48,342 47,919 48,404 47,791 |
Schedule of Accumulated Other Comprehensive Income | Changes to each component of accumulated other comprehensive income, net of income taxes, are as follows: Foreign Currency Translation Adjustment and Other Pension and Other Post-Retirement Benefit Plans Total (in thousands) December 31, 2016 $ (154,595 ) $ (99,169 ) $ (253,764 ) Other comprehensive loss before reclassifications 44,305 — 44,305 Amounts reclassified from accumulated other comprehensive income (loss) — 1,755 1,755 Net current period other comprehensive income 44,305 1,755 46,060 Income tax expense — 623 623 July 1, 2017 $ (110,290 ) $ (98,037 ) $ (208,327 ) |
Rollforward Redeemable Noncontrolling Interest | The following table provides a rollforward of the activity related to the Company’s redeemable noncontrolling interest: Six Months Ended July 1, 2017 June 25, 2016 (in thousands) Beginning balance $ 14,659 $ 28,008 Total gains or losses (realized/unrealized): Net income attributable to noncontrolling interest 291 320 Foreign currency translation 367 (653 ) Change in fair value, included in additional paid-in capital — (1,851 ) Ending balance $ 15,317 $ 25,824 |
Pension and Other Post-Retire29
Pension and Other Post-Retirement Benefit Plans Employee Benefits (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Cost | The following table provides the components of net periodic cost for the Company’s pension, deferred compensation and executive supplemental life insurance retirement plans: Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) Service cost $ 774 $ 639 $ 1,528 $ 1,193 Interest cost 2,939 3,220 5,765 6,584 Expected return on plan assets (3,485 ) (3,998 ) (6,935 ) (7,990 ) Amortization of prior service credit (139 ) (144 ) (258 ) (288 ) Amortization of net loss 1,047 545 2,013 1,091 Net periodic cost $ 1,136 $ 262 $ 2,113 $ 590 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table provides stock-based compensation by the financial statement line item in which it is reflected: Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) Cost of revenue $ 1,743 $ 1,667 $ 3,289 $ 3,349 Selling, general and administrative 10,147 10,439 18,087 18,698 Stock-based compensation, before income taxes 11,890 12,106 21,376 22,047 Provision for income taxes (4,276 ) (4,354 ) (7,584 ) (7,868 ) Stock-based compensation, net of income taxes $ 7,614 $ 7,752 $ 13,792 $ 14,179 |
Foreign Currency Contracts (Tab
Foreign Currency Contracts (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments, Gain (Loss) | The following table summarizes gains recognized on foreign exchange forward contracts related to intercompany loans denominated in Euros on the Company’s unaudited condensed consolidated statements of income: Three Months Ended Six Months Ended Location of Gain July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) Other income, net $ — $ 1,130 $ — $ 3,373 |
Restructuring and Asset Impai32
Restructuring and Asset Impairment (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Restructuring and Related Activities [Abstract] | |
Rollforward of Company's Severance and Retention Costs Liability | The following table provides a rollforward of the Company’s severance and transition costs liabilities related to those initiatives: Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) Beginning balance $ 3,451 $ 2,521 $ 3,680 $ 2,969 Expense 1,193 4,099 2,210 4,120 Payments / utilization (820 ) (2,940 ) (2,093 ) (3,353 ) Foreign currency adjustments 180 (2 ) 207 (58 ) Ending balance $ 4,004 $ 3,678 $ 4,004 $ 3,678 |
Schedule of Severance and Retention Costs | The following presents severance and transition related costs by reportable segment: Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) RMS $ 183 $ — $ 183 $ — DSA 344 4,099 540 4,120 Manufacturing 506 — 1,327 — Corporate 160 — 160 — Total severance and transition costs $ 1,193 $ 4,099 $ 2,210 $ 4,120 The following table presents severance and transition costs by classification within the unaudited condensed consolidated statements of income: Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) Cost of services provided and products sold (excluding amortization of intangible assets) $ 554 $ 367 $ 1,477 $ 388 Selling, general and administrative 639 3,732 733 3,732 Total severance and transition costs $ 1,193 $ 4,099 $ 2,210 $ 4,120 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Other Financial Information by Business Segment | The following table presents revenue and other financial information by reportable segment: Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) RMS Revenue $ 124,002 $ 125,058 $ 251,163 $ 248,397 Operating income 33,579 35,445 71,290 71,831 Depreciation and amortization 4,945 5,118 10,037 10,368 Capital expenditures 4,404 2,381 7,007 3,434 DSA Revenue $ 252,092 $ 221,059 $ 479,850 $ 379,042 Operating income 51,690 32,381 90,350 63,211 Depreciation and amortization 18,965 18,600 38,334 30,557 Capital expenditures 7,102 4,644 15,425 9,351 Manufacturing Revenue $ 93,035 $ 87,938 $ 183,879 $ 161,484 Operating income 29,041 27,121 55,642 46,736 Depreciation and amortization 5,787 6,525 11,749 12,501 Capital expenditures 1,939 4,256 4,231 6,385 |
Reconciliation of Segment Operating Income to Consolidated Operating Income | For the three months ended July 1, 2017 and June 25, 2016 , reconciliations of segment operating income, depreciation and amortization, and capital expenditures to the respective consolidated amounts are as follows: Operating Income Depreciation and Amortization Capital Expenditures July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) Total reportable segments $ 114,310 $ 94,947 $ 29,697 $ 30,243 $ 13,445 $ 11,281 Unallocated corporate (33,000 ) (36,886 ) 2,102 2,110 2,552 510 Total consolidated $ 81,310 $ 58,061 $ 31,799 $ 32,353 $ 15,997 $ 11,791 For the six months ended July 1, 2017 and June 25, 2016 , reconciliations of segment operating income, depreciation and amortization, and capital expenditures to the respective consolidated amounts are as follows: Operating Income Depreciation and Amortization Capital Expenditures July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) Total reportable segments $ 217,282 $ 181,778 $ 60,120 $ 53,426 $ 26,663 $ 19,170 Unallocated corporate (66,500 ) (72,245 ) 4,090 3,582 5,254 871 Total consolidated $ 150,782 $ 109,533 $ 64,210 $ 57,008 $ 31,917 $ 20,041 |
Schedule of Net Sales for Each Significant Product or Service Offering | Revenue for each significant product or service offering is as follows: Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) RMS $ 124,002 $ 125,058 $ 251,163 $ 248,397 DSA 252,092 221,059 479,850 379,042 Manufacturing 93,035 87,938 183,879 161,484 Total revenue $ 469,129 $ 434,055 $ 914,892 $ 788,923 |
Summary of Unallocated Corporate Overhead | A summary of unallocated corporate expense consists of the following : Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 (in thousands) Stock-based compensation $ 7,421 $ 7,746 $ 13,004 $ 13,854 Compensation, benefits, and other employee-related expenses 11,079 7,738 26,041 20,279 External consulting and other service expenses 4,085 6,656 9,852 11,832 Information technology 3,617 2,364 6,010 5,496 Depreciation 2,102 2,111 4,090 3,583 Acquisition and integration 1,191 7,260 1,212 11,023 Other general unallocated corporate 3,505 3,011 6,291 6,178 Total unallocated corporate expense $ 33,000 $ 36,886 $ 66,500 $ 72,245 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | Dec. 31, 2016 | Dec. 26, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Restricted cash combined with unrestricted cash | $ 119,020 | $ 156,909 | $ 119,020 | $ 156,909 | $ 119,894 | $ 119,963 |
Impact to income statement from recognition of excess tax benefits and tax deficiencies | $ 1,300 | 8,800 | ||||
Reclassification of net cash provided by operating activities | 134,353 | 125,956 | ||||
Reclassification of net cash provided by financing activities | $ 155,064 | (510,249) | ||||
Accounting Standards Update 2016-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reclassification of net cash provided by operating activities | 9,100 | |||||
Reclassification of net cash provided by financing activities | 9,100 | |||||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-18 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Restricted cash combined with unrestricted cash | $ 2,300 | $ 2,300 | $ 2,000 |
Business Acquisitions and Div35
Business Acquisitions and Divestiture - Brains On-Line (Details) - Subsequent Event - Brains On-Line € in Millions | Aug. 04, 2017EUR (€) |
Business Acquisition [Line Items] | |
Cash payments to acquire a business | € 18 |
Maximum contingent consideration | € 6.7 |
Business Acquisitions and Div36
Business Acquisitions and Divestiture - Agilux Additional Information (Details) - USD ($) $ in Thousands | Sep. 28, 2016 | Jun. 27, 2016 | Jul. 01, 2017 | Jul. 01, 2017 | Jun. 25, 2016 |
Blue Stream Laboratories | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 11,700 | ||||
Purchase price allocation | 11,749 | ||||
Cash acquired | $ 0 | ||||
Integration related costs and transaction costs | $ 0 | $ 0 | $ 400 | ||
Agilux Laboratories | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 64,900 | ||||
Purchase price allocation | 62,025 | ||||
Cash acquired | $ 2,900 | ||||
Integration related costs and transaction costs | $ 100 | $ 300 |
Business Acquisitions and Div37
Business Acquisitions and Divestiture - Agilux Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 | Sep. 28, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 776,453 | $ 787,517 | |
Agilux Laboratories | |||
Business Acquisition [Line Items] | |||
Trade receivables, contractual amount | $ 4,799 | ||
Trade receivables | 4,799 | ||
Other current assets (excluding cash) | 994 | ||
Property, plant and equipment | 3,907 | ||
Other long-term assets | 11 | ||
Definite-lived intangible assets | 21,900 | ||
Goodwill | 44,317 | ||
Other current liabilities | (3,812) | ||
Long-term liabilities | (10,091) | ||
Total purchase price allocation | $ 62,025 |
Business Acquisitions and Div38
Business Acquisitions and Divestiture - Agilux Definite-Lived Intangible Assets (Details) - Agilux Laboratories $ in Thousands | Sep. 28, 2016USD ($) |
Business Acquisition [Line Items] | |
Definite-Lived Intangible Assets | $ 21,900 |
Weighted Average Amortization Life | 14 years |
Client relationships | |
Business Acquisition [Line Items] | |
Definite-Lived Intangible Assets | $ 16,700 |
Weighted Average Amortization Life | 17 years |
Other intangible assets | |
Business Acquisition [Line Items] | |
Definite-Lived Intangible Assets | $ 5,200 |
Weighted Average Amortization Life | 4 years |
Business Acquisitions and Div39
Business Acquisitions and Divestiture - Blue Stream Additional Information (Details) - Blue Stream Laboratories - USD ($) $ in Thousands | Jun. 27, 2016 | Jul. 01, 2017 | Jul. 01, 2017 | Jun. 25, 2016 |
Business Acquisition [Line Items] | ||||
Purchase price | $ 11,700 | |||
Maximum contingent consideration | 3,000 | |||
Purchase price allocation | $ 11,749 | |||
Integration related costs and transaction costs | $ 0 | $ 0 | $ 400 |
Business Acquisitions and Div40
Business Acquisitions and Divestiture - Blue Stream Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 | Jun. 27, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 776,453 | $ 787,517 | |
Blue Stream Laboratories | |||
Business Acquisition [Line Items] | |||
Trade receivables, contractual amount | $ 1,104 | ||
Trade receivables | 1,104 | ||
Other current assets (excluding cash) | 15 | ||
Property, plant and equipment | 912 | ||
Other long-term assets | 187 | ||
Definite-lived intangible assets | 1,230 | ||
Goodwill | 10,334 | ||
Current liabilities | (1,132) | ||
Long-term liabilities | (901) | ||
Total purchase price allocation | $ 11,749 |
Business Acquisitions and Div41
Business Acquisitions and Divestiture - Blue Stream Definite Lived Intangible Assets (Details) - Blue Stream Laboratories $ in Thousands | Jun. 27, 2016USD ($) |
Business Acquisition [Line Items] | |
Definite-Lived Intangible Assets | $ 1,230 |
Weighted Average Amortization Life | 7 years |
Client relationships | |
Business Acquisition [Line Items] | |
Definite-Lived Intangible Assets | $ 650 |
Weighted Average Amortization Life | 10 years |
Other intangible assets | |
Business Acquisition [Line Items] | |
Definite-Lived Intangible Assets | $ 580 |
Weighted Average Amortization Life | 5 years |
Business Acquisitions and Div42
Business Acquisitions and Divestiture - WIL Research Additional Information (Details) - WIL Research - USD ($) $ in Thousands | Apr. 04, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | Feb. 11, 2017 | Feb. 10, 2017 |
Business Acquisition [Line Items] | |||||||
Purchase price | $ 604,800 | ||||||
Assumed liabilities | 400 | ||||||
Purchase price allocation | 577,391 | ||||||
Cash acquired | $ 27,400 | ||||||
Goodwill, expected tax deductible amount | $ 14,800 | $ 19,000 | |||||
Integration related costs and transaction costs | $ 700 | $ 8,400 | $ 1,200 | $ 12,400 | |||
Revenue | $ 55,200 | ||||||
Operating income | 1,000 | ||||||
Amortization of intangible assets and depreciation of fixed assets | 2,700 | ||||||
Reversal of interest expense on borrowings | $ 2,600 |
Business Acquisitions and Div43
Business Acquisitions and Divestiture - WIL Research Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 | Apr. 04, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 776,453 | $ 787,517 | |
WIL Research | |||
Business Acquisition [Line Items] | |||
Trade receivables, contractual amount | $ 48,625 | ||
Trade receivables | 48,157 | ||
Inventories | 2,296 | ||
Other current assets (excluding cash) | 3,814 | ||
Property, plant and equipment | 129,066 | ||
Other long-term assets | 1,060 | ||
Definite-lived intangible assets | 164,800 | ||
Goodwill | 330,175 | ||
Deferred revenue | (39,103) | ||
Other current liabilities | (27,386) | ||
Long-term liabilities | (35,488) | ||
Total purchase price allocation | $ 577,391 |
Business Acquisitions and Div44
Business Acquisitions and Divestiture - WIL Research Definite Lived Intangible Assets (Details) - WIL Research $ in Thousands | Apr. 04, 2016USD ($) |
Business Acquisition [Line Items] | |
Definite-Lived Intangible Assets | $ 164,800 |
Weighted Average Amortization Life | 13 years |
Client relationships | |
Business Acquisition [Line Items] | |
Definite-Lived Intangible Assets | $ 137,500 |
Weighted Average Amortization Life | 15 years |
Developed technology | |
Business Acquisition [Line Items] | |
Definite-Lived Intangible Assets | $ 20,700 |
Weighted Average Amortization Life | 3 years |
Backlog | |
Business Acquisition [Line Items] | |
Definite-Lived Intangible Assets | $ 6,600 |
Weighted Average Amortization Life | 1 year |
Business Acquisitions and Div45
Business Acquisitions and Divestiture - WIL Laboratories, Pro Forma Financial Information (Details) - WIL Research - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 25, 2016 | Jun. 25, 2016 | |
Business Acquisition [Line Items] | ||
Revenue | $ 434,917 | $ 849,455 |
Net income attributable to common shareholders | $ 44,159 | $ 89,222 |
Earnings per common share | ||
Basic (in dollars per share) | $ 0.94 | $ 1.90 |
Diluted (in dollars per share) | $ 0.92 | $ 1.87 |
Business Acquisitions and Div46
Business Acquisitions and Divestiture - Contract Manufacturing, Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2017 | Jul. 01, 2017 | Jun. 25, 2016 | Feb. 10, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on divestiture | $ 10,577 | $ 0 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | CDMO Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash received from divestiture | $ 75,000 | |||
Cash and cash equivalents transferred | 600 | |||
Working capital adjustments | $ 300 | |||
Gain on divestiture | $ 10,600 |
Business Acquisitions and Div47
Business Acquisitions and Divestiture - Contract Manufacturing, Schedule of Assets and Liabilities Disposed (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Feb. 10, 2017 | Dec. 31, 2016 |
Liabilities | |||
Deferred revenue | $ 1,636 | $ 1,623 | |
Other current liabilities | $ 4,849 | $ 5,771 | |
CDMO Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Assets | |||
Current assets | $ 5,505 | ||
Property, plant and equipment, net | 11,174 | ||
Goodwill | 35,857 | ||
Long-term assets | 17,154 | ||
Total assets | 69,690 | ||
Liabilities | |||
Deferred revenue | 4,878 | ||
Other current liabilities | 1,158 | ||
Total liabilities | $ 6,036 |
Supplemental Balance Sheet In48
Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 | Jun. 25, 2016 |
Composition of trade receivables | |||
Client receivables | $ 306,238 | $ 283,997 | |
Unbilled revenue | 94,515 | 82,203 | |
Total | 400,753 | 366,200 | |
Less: Allowance for doubtful accounts | (2,206) | (2,150) | |
Trade receivables, net | 398,547 | 364,050 | |
Composition of inventories | |||
Raw materials and supplies | 18,319 | 18,893 | |
Work in process | 14,774 | 13,681 | |
Finished products | 71,597 | 63,259 | |
Inventories | 104,690 | 95,833 | |
Composition of other current assets | |||
Investments | 23,476 | 3,771 | |
Prepaid income taxes | 43,649 | 40,705 | |
Restricted cash | 568 | 532 | $ 561 |
Other current assets | 67,693 | 45,008 | |
Composition of other assets | |||
Life insurance policies | 31,529 | 29,456 | |
Venture capital investments | 54,857 | 45,331 | |
Restricted cash | 1,986 | 1,736 | $ 1,763 |
Other | 12,760 | 11,907 | |
Other assets | 101,132 | 88,430 | |
Composition of other current liabilities | |||
Accrued income taxes | 26,425 | 25,621 | |
Other | 937 | 879 | |
Other current liabilities | 27,362 | 26,500 | |
Composition of other long-term liabilities | |||
Long-term pension liability | 91,287 | 89,984 | |
Accrued executive supplemental life insurance retirement plan and deferred compensation plan | 33,538 | 32,880 | |
Other | 38,974 | 36,375 | |
Other long-term liabilities | $ 163,799 | $ 159,239 |
Venture Capital Investments and
Venture Capital Investments and Marketable Securities - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||||
Committed contribution | $ 87,700,000 | $ 87,700,000 | ||
Venture capital investments | 45,500,000 | 45,500,000 | ||
Dividends received | 0 | $ 0 | 4,400,000 | $ 0 |
Gain (loss) from venture capital investments | $ 2,500,000 | $ 5,000,000 | $ 6,700,000 | $ 8,100,000 |
Minimum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 0.70% | 0.70% | ||
Maximum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 12.00% | 12.00% |
Fair Value - Fair Value of Asse
Fair Value - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 21 | $ 21 |
Other assets: | ||
Life insurance policies | 24,058 | 22,121 |
Total assets measured at fair value | 24,079 | 22,142 |
Other current liabilities: | ||
Contingent consideration | 3,201 | 3,621 |
Total liabilities measured at fair value | 3,201 | 3,621 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Other assets: | ||
Life insurance policies | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Other current liabilities: | ||
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 21 | 21 |
Other assets: | ||
Life insurance policies | 24,058 | 22,121 |
Total assets measured at fair value | 24,079 | 22,142 |
Other current liabilities: | ||
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Other assets: | ||
Life insurance policies | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Other current liabilities: | ||
Contingent consideration | 3,201 | 3,621 |
Total liabilities measured at fair value | $ 3,201 | $ 3,621 |
Fair Value - Contingent Conside
Fair Value - Contingent Consideration (Details) - Contingent Consideration - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2017 | Jun. 25, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 3,621 | $ 1,370 |
Additions | 0 | 600 |
Payments | (406) | (674) |
Total gains or losses (realized/unrealized): | ||
Reversal of previously recorded contingent liability and change in fair value | (14) | 13 |
Ending balance | $ 3,201 | $ 1,309 |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets - Gross Carrying Amount and Accumulated Amortization of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jul. 01, 2017USD ($) | |
Changes in gross carrying amount and accumulated amortization of goodwill | |
Gross carrying amount, balance at the beginning of the period | $ 787,517 |
Adjustments to Goodwill, Acquisitions/(Divestitures) | (36,009) |
Adjustments to Goodwill, Transfers | 0 |
Adjustments to Goodwill, Foreign Exchange | 24,945 |
Gross carrying amount, balance at the end of the period | 776,453 |
RMS | |
Changes in gross carrying amount and accumulated amortization of goodwill | |
Gross carrying amount, balance at the beginning of the period | 56,397 |
Adjustments to Goodwill, Acquisitions/(Divestitures) | 0 |
Adjustments to Goodwill, Transfers | 0 |
Adjustments to Goodwill, Foreign Exchange | 793 |
Gross carrying amount, balance at the end of the period | 57,190 |
DSA | |
Changes in gross carrying amount and accumulated amortization of goodwill | |
Gross carrying amount, balance at the beginning of the period | 563,476 |
Adjustments to Goodwill, Acquisitions/(Divestitures) | (9) |
Adjustments to Goodwill, Transfers | 0 |
Adjustments to Goodwill, Foreign Exchange | 18,125 |
Gross carrying amount, balance at the end of the period | 581,592 |
Manufacturing | |
Changes in gross carrying amount and accumulated amortization of goodwill | |
Gross carrying amount, balance at the beginning of the period | 167,644 |
Adjustments to Goodwill, Acquisitions/(Divestitures) | (36,000) |
Adjustments to Goodwill, Transfers | 0 |
Adjustments to Goodwill, Foreign Exchange | 6,027 |
Gross carrying amount, balance at the end of the period | $ 137,671 |
Goodwill and Intangible Asset53
Goodwill and Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 26, 2016 | Jul. 01, 2017 | Dec. 31, 2016 | |
Other intangible assets | |||
Gross | $ 626,756 | $ 623,870 | |
Accumulated Amortization | (257,962) | (229,422) | |
Net | 368,794 | 394,448 | |
Impairment charge | $ 1,900 | ||
Backlog | |||
Other intangible assets | |||
Gross | 7,970 | 8,370 | |
Accumulated Amortization | (7,341) | (6,390) | |
Net | 629 | 1,980 | |
Backlog | CDMO Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Other intangible assets | |||
Decrease in intangible assets resulting from divestiture of business | 300 | ||
Technology | |||
Other intangible assets | |||
Gross | 74,788 | 71,425 | |
Accumulated Amortization | (20,539) | (14,314) | |
Net | 54,249 | 57,111 | |
Trademarks and trade names | |||
Other intangible assets | |||
Gross | 8,465 | 8,177 | |
Accumulated Amortization | (4,311) | (4,124) | |
Net | 4,154 | 4,053 | |
Other | |||
Other intangible assets | |||
Gross | 16,978 | 16,775 | |
Accumulated Amortization | (6,564) | (5,628) | |
Net | 10,414 | 11,147 | |
Other intangible assets | |||
Other intangible assets | |||
Gross | 108,201 | 104,747 | |
Accumulated Amortization | (38,755) | (30,456) | |
Net | 69,446 | 74,291 | |
Client relationships | |||
Other intangible assets | |||
Gross | 518,555 | 519,123 | |
Accumulated Amortization | (219,207) | (198,966) | |
Net | 299,348 | $ 320,157 | |
Client relationships | CDMO Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Other intangible assets | |||
Decrease in intangible assets resulting from divestiture of business | $ 16,800 |
Long-Term Debt and Capital Le54
Long-Term Debt and Capital Lease Obligations - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,119,495 | $ 1,212,694 |
Less: current portion of long-term debt | (24,576) | (24,560) |
Long-term debt | 1,094,919 | 1,188,134 |
Debt discount and debt issuance costs | (6,697) | (7,633) |
Long-term debt, net | 1,088,222 | 1,180,501 |
Term loans | ||
Debt Instrument [Line Items] | ||
Total debt | 617,500 | 633,750 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total debt | 498,290 | 578,759 |
Other long-term debt | ||
Debt Instrument [Line Items] | ||
Total debt | $ 3,705 | $ 185 |
Long-Term Debt and Capital Le55
Long-Term Debt and Capital Lease Obligations - Additional Information (Details) | Mar. 30, 2016USD ($)payment | Jul. 01, 2017USD ($) | Jun. 25, 2016USD ($) | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 2.34% | 1.89% | ||
Credit facility | $ 1,650,000,000 | |||
Expensed debt issuance costs | $ 1,400,000 | |||
Maximum borrowing capacity, term loan and line of credit facility, potential increase available | $ 500,000,000 | |||
Number of consecutive fiscal periods | 1 year | |||
Credit facility | ||||
Debt Instrument [Line Items] | ||||
Minimum EBITDA less capital expenditures to consolidated cash interest expense ratio | 3.50 | |||
Maximum consolidated indebtedness to consolidated EBITDA | 4 | |||
Maximum consolidated indebtedness to consolidated EBITDA, with step-downs | 3.50 | |||
Other Capital Lease Obligations | ||||
Debt Instrument [Line Items] | ||||
Other capital lease obligations | $ 30,700,000 | $ 29,900,000 | ||
Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding | $ 4,900,000 | $ 4,900,000 | ||
Federal Funds Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.50% | |||
LIBOR | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.00% | |||
Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility | $ 650,000,000 | |||
Number of quarterly installment payments | payment | 19 | |||
Multi-currency Revolving Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility | $ 1,000,000,000 |
Equity and Redeemable Noncont56
Equity and Redeemable Noncontrolling Interest - Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Numerator: | ||||
Income from continuing operations, net of income taxes | $ 54,673 | $ 35,545 | $ 101,636 | $ 73,120 |
Income (loss) from discontinued operations, net of income taxes | (71) | 12 | (75) | (14) |
Less: Net income attributable to noncontrolling interests | 650 | 350 | 831 | 756 |
Net income attributable to common shareholders | $ 53,952 | $ 35,207 | $ 100,730 | $ 72,350 |
Denominator: | ||||
Weighted-average shares outstanding—Basic (in shares) | 47,591 | 47,061 | 47,569 | 46,852 |
Effect of dilutive securities: | ||||
Stock options, restricted stock units, performance share units and restricted stock (in shares) | 751 | 858 | 835 | 939 |
Weighted-average shares outstanding—Diluted (in shares) | 48,342 | 47,919 | 48,404 | 47,791 |
Equity and Redeemable Noncont57
Equity and Redeemable Noncontrolling Interest - Earnings Per Share, Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 0.6 | 0.8 | 0.6 | 0.9 |
Restricted Stock and Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 1.1 | 1.1 |
Equity and Redeemable Noncont58
Equity and Redeemable Noncontrolling Interest - Treasury Shares (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | May 09, 2017 | |
Treasury Shares | |||
Purchase of treasury stock | $ 70,820 | $ 12,198 | |
Shares acquired to satisfy minimum individual statutory tax withholdings for vesting of equity instruments (in shares) | 200,000 | 200,000 | |
Shares acquired to satisfy minimum individual statutory tax withholdings for vesting of equity instruments | $ 16,300 | $ 12,200 | |
Authorized Share Repurchase Program | |||
Treasury Shares | |||
Stock repurchased during period (in shares) | 600,000 | 0 | |
Purchase of treasury stock | $ 54,600 | ||
Stock repurchase authorization | $ 150,000 | ||
Aggregate amount authorized | $ 1,300,000 | ||
Remaining authorized repurchase amount | $ 165,100 |
Equity and Redeemable Noncont59
Equity and Redeemable Noncontrolling Interest - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||||
Other comprehensive loss before reclassifications | $ 44,305 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 1,755 | |||
Net current period other comprehensive income | 46,060 | |||
Income tax expense | $ 397 | $ 142 | 623 | $ 284 |
Foreign Currency Translation Adjustment and Other | ||||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||||
December 31, 2016 | (154,595) | |||
Other comprehensive loss before reclassifications | 44,305 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |||
Net current period other comprehensive income | 44,305 | |||
Income tax expense | 0 | |||
July 1, 2017 | (110,290) | (110,290) | ||
Pension and Other Post-Retirement Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||||
December 31, 2016 | (99,169) | |||
Other comprehensive loss before reclassifications | 0 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 1,755 | |||
Net current period other comprehensive income | 1,755 | |||
Income tax expense | 400 | $ 100 | 623 | $ 300 |
July 1, 2017 | (98,037) | (98,037) | ||
Total | ||||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||||
December 31, 2016 | (253,764) | |||
July 1, 2017 | $ (208,327) | $ (208,327) |
Equity and Redeemable Noncont60
Equity and Redeemable Noncontrolling Interest - Redeemable Noncontrolling Interest, Additional Information (Details) - USD ($) $ in Millions | Jul. 01, 2017 | Jul. 07, 2016 | Jan. 31, 2013 |
Investment [Line Items] | |||
Contractually defined redemption value | $ 14.6 | ||
Vital River | |||
Investment [Line Items] | |||
Ownership percentage | 87.00% | 12.00% | 75.00% |
Noncontrolling interest ownership percentage | 13.00% |
Equity and Redeemable Noncont61
Equity and Redeemable Noncontrolling Interest - Rollforward of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2017 | Jun. 25, 2016 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Beginning balance | $ 14,659 | $ 28,008 |
Total gains or losses (realized/unrealized): | ||
Foreign currency translation | 367 | (653) |
Ending balance | 15,317 | 25,824 |
Net income attributable to noncontrolling interest | ||
Total gains or losses (realized/unrealized): | ||
Income (loss) attributable to noncontrolling interest | 291 | 320 |
Change in fair value, included in additional paid-in capital | ||
Total gains or losses (realized/unrealized): | ||
Income (loss) attributable to noncontrolling interest | $ 0 | $ (1,851) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Effective tax rate | 28.90% | 34.60% | 34.40% | 31.00% |
Tax benefit associated with stock compensation | $ 1,300 | $ 8,800 | ||
Increase in unrecognized tax benefits | 900 | |||
Unrecognized tax benefits | 26,000 | 26,000 | ||
Increase in unrecognized tax benefits that would impact effective tax rate | 700 | |||
Unrecognized tax benefits that would impact effective tax rate | 22,900 | 22,900 | ||
Accrued interest and penalties on unrecognized tax benefits | 2,400 | 2,400 | ||
Decrease in unrecognized tax benefits that are reasonably possibly over the next twelve-month period | 5,000 | 5,000 | ||
Income tax expense | 397 | $ 142 | 623 | $ 284 |
Pension and Other Post-Retirement Benefit Plans | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income tax expense | $ 400 | $ 100 | 623 | $ 300 |
CDMO Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Tax on gain on divestiture | $ 18,000 |
Pension and Other Post-Retire63
Pension and Other Post-Retirement Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Pension | ||||
Employee benefits | ||||
Service cost | $ 774 | $ 639 | $ 1,528 | $ 1,193 |
Interest cost | 2,939 | 3,220 | 5,765 | 6,584 |
Expected return on plan assets | (3,485) | (3,998) | (6,935) | (7,990) |
Amortization of prior service credit | (139) | (144) | (258) | (288) |
Amortization of net loss | 1,047 | 545 | 2,013 | 1,091 |
Net periodic cost | 1,136 | 262 | 2,113 | 590 |
Post-retirement Benefit Plan | ||||
Employee benefits | ||||
Net periodic cost | $ 0 | $ 0 | $ 0 | $ 0 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Stock-based compensation expense | ||||
Stock-based compensation, before income taxes | $ 11,890 | $ 12,106 | $ 21,376 | $ 22,047 |
Provision for income taxes | (4,276) | (4,354) | (7,584) | (7,868) |
Stock-based compensation, net of income taxes | 7,614 | 7,752 | 13,792 | 14,179 |
Cost of revenue | ||||
Stock-based compensation expense | ||||
Stock-based compensation, before income taxes | 1,743 | 1,667 | 3,289 | 3,349 |
Selling, general and administrative | ||||
Stock-based compensation expense | ||||
Stock-based compensation, before income taxes | $ 10,147 | $ 10,439 | $ 18,087 | $ 18,698 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Grants (Details) shares in Millions | 6 Months Ended |
Jul. 01, 2017$ / sharesshares | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options granted (in shares) | 0.6 |
Stock options weighted average grant date fair value (in dollars per share) | $ / shares | $ 18.27 |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted (in shares) | 0.2 |
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 88.08 |
Performance Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted (in shares) | 0.2 |
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 99.24 |
Maximum shares to be awarded under plan (in shares) | 0.4 |
Foreign Currency Contracts - Ef
Foreign Currency Contracts - Effect on Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Other income (expense), net | Foreign Currency Forward Contract | ||||
Derivatives, Fair Value [Line Items] | ||||
Gain (loss) recognized | $ 0 | $ 1,130 | $ 0 | $ 3,373 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 6 Months Ended |
Jul. 01, 2017USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Increase in lease obligations | $ 20.4 |
Restructuring and Asset Impai68
Restructuring and Asset Impairment - Rollforward of Severance and Retention Costs Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 3,451 | $ 2,521 | $ 3,680 | $ 2,969 |
Expense | 1,193 | 4,099 | 2,210 | 4,120 |
Payments / utilization | (820) | (2,940) | (2,093) | (3,353) |
Foreign currency adjustments | 180 | (2) | 207 | (58) |
Ending balance | $ 4,004 | $ 3,678 | $ 4,004 | $ 3,678 |
Restructuring and Asset Impai69
Restructuring and Asset Impairment - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | Apr. 01, 2017 | Dec. 31, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Severance and retention costs liability | $ 4,004 | $ 3,678 | $ 4,004 | $ 3,678 | $ 3,451 | $ 3,680 | $ 2,521 | $ 2,969 |
Accelerated depreciation | $ 200 | $ 400 | ||||||
Impairment charges | 200 | |||||||
Other restructuring costs | 100 | 400 | ||||||
Accrued Compensation | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Severance and retention costs liability | $ 4,000 | $ 4,000 |
Restructuring and Asset Impai70
Restructuring and Asset Impairment - Severance and Retention Costs by Classification on the Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total severance and transition costs | $ 1,193 | $ 4,099 | $ 2,210 | $ 4,120 |
Cost of services provided and products sold (excluding amortization of intangible assets) | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total severance and transition costs | 554 | 367 | 1,477 | 388 |
Selling, general and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total severance and transition costs | $ 639 | $ 3,732 | $ 733 | $ 3,732 |
Restructuring and Asset Impai71
Restructuring and Asset Impairment - Severance and Retention Costs by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Segment Reporting Information [Line Items] | ||||
Total severance and transition costs | $ 1,193 | $ 4,099 | $ 2,210 | $ 4,120 |
RMS | ||||
Segment Reporting Information [Line Items] | ||||
Total severance and transition costs | 183 | 0 | 183 | 0 |
DSA | ||||
Segment Reporting Information [Line Items] | ||||
Total severance and transition costs | 344 | 4,099 | 540 | 4,120 |
Manufacturing | ||||
Segment Reporting Information [Line Items] | ||||
Total severance and transition costs | 506 | 0 | 1,327 | 0 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Total severance and transition costs | $ 160 | $ 0 | $ 160 | $ 0 |
Segment Information - Revenue a
Segment Information - Revenue and Other Financial Information by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 469,129 | $ 434,055 | $ 914,892 | $ 788,923 |
Operating income | 81,310 | 58,061 | 150,782 | 109,533 |
Depreciation and amortization | 31,799 | 32,353 | 64,210 | 57,008 |
Capital expenditures | 15,997 | 11,791 | 31,917 | 20,041 |
Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 114,310 | 94,947 | 217,282 | 181,778 |
Depreciation and amortization | 29,697 | 30,243 | 60,120 | 53,426 |
Capital expenditures | 13,445 | 11,281 | 26,663 | 19,170 |
RMS | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 124,002 | 125,058 | 251,163 | 248,397 |
Operating income | 33,579 | 35,445 | 71,290 | 71,831 |
Depreciation and amortization | 4,945 | 5,118 | 10,037 | 10,368 |
Capital expenditures | 4,404 | 2,381 | 7,007 | 3,434 |
DSA | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 252,092 | 221,059 | 479,850 | 379,042 |
Operating income | 51,690 | 32,381 | 90,350 | 63,211 |
Depreciation and amortization | 18,965 | 18,600 | 38,334 | 30,557 |
Capital expenditures | 7,102 | 4,644 | 15,425 | 9,351 |
Manufacturing | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 93,035 | 87,938 | 183,879 | 161,484 |
Operating income | 29,041 | 27,121 | 55,642 | 46,736 |
Depreciation and amortization | 5,787 | 6,525 | 11,749 | 12,501 |
Capital expenditures | $ 1,939 | $ 4,256 | $ 4,231 | $ 6,385 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Operating Income, Depreciation and Amortization, and Capital Expenditures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Segment Reporting Information [Line Items] | ||||
Operating income | $ 81,310 | $ 58,061 | $ 150,782 | $ 109,533 |
Depreciation and amortization | 31,799 | 32,353 | 64,210 | 57,008 |
Capital expenditures | 15,997 | 11,791 | 31,917 | 20,041 |
Total reportable segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 114,310 | 94,947 | 217,282 | 181,778 |
Depreciation and amortization | 29,697 | 30,243 | 60,120 | 53,426 |
Capital expenditures | 13,445 | 11,281 | 26,663 | 19,170 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | (33,000) | (36,886) | (66,500) | (72,245) |
Depreciation and amortization | 2,102 | 2,110 | 4,090 | 3,582 |
Capital expenditures | $ 2,552 | $ 510 | $ 5,254 | $ 871 |
Segment Information - Revenue P
Segment Information - Revenue Per Significant Product or Service (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 469,129 | $ 434,055 | $ 914,892 | $ 788,923 |
Operating segments | RMS | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 124,002 | 125,058 | 251,163 | 248,397 |
Operating segments | DSA | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 252,092 | 221,059 | 479,850 | 379,042 |
Operating segments | Manufacturing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 93,035 | $ 87,938 | $ 183,879 | $ 161,484 |
Segment Information - Summary o
Segment Information - Summary of Unallocated Corporate Overhead (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Segment Reporting Information [Line Items] | ||||
Stock-based compensation | $ 11,890 | $ 12,106 | $ 21,376 | $ 22,047 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Stock-based compensation | 7,421 | 7,746 | 13,004 | 13,854 |
Compensation, benefits, and other employee-related expenses | 11,079 | 7,738 | 26,041 | 20,279 |
External consulting and other service expenses | 4,085 | 6,656 | 9,852 | 11,832 |
Information technology | 3,617 | 2,364 | 6,010 | 5,496 |
Depreciation | 2,102 | 2,111 | 4,090 | 3,583 |
Acquisition and integration | 1,191 | 7,260 | 1,212 | 11,023 |
Other general unallocated corporate | 3,505 | 3,011 | 6,291 | 6,178 |
Total unallocated corporate expense | $ 33,000 | $ 36,886 | $ 66,500 | $ 72,245 |