Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 29, 2018 | Oct. 26, 2018 | |
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 | --12-29 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 29, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 48,096,420 | |
Emerging Growth Company | false | |
Smaller Reporting Company | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Total revenue | $ 585,295 | $ 464,232 | $ 1,664,566 | $ 1,379,124 |
Costs and expenses: | ||||
Selling, general and administrative | 113,033 | 92,428 | 336,936 | 277,157 |
Amortization of intangible assets | 18,805 | 10,357 | 47,813 | 30,913 |
Operating income | 84,362 | 74,062 | 228,901 | 225,454 |
Other income (expense): | ||||
Interest income | 230 | 134 | 694 | 497 |
Interest expense | (17,197) | (7,667) | (47,031) | (22,053) |
Other income, net | 5,910 | 6,410 | 24,069 | 24,004 |
Income from continuing operations, before income taxes | 73,305 | 72,939 | 206,633 | 227,902 |
Provision for income taxes | 12,403 | 19,945 | 39,613 | 73,272 |
Income from continuing operations, net of income taxes | 60,902 | 52,994 | 167,020 | 154,630 |
Income (loss) from discontinued operations, net of income taxes | 0 | (39) | 1,506 | (114) |
Net income | 60,902 | 52,955 | 168,526 | 154,516 |
Less: Net income attributable to noncontrolling interests | 534 | 481 | 1,818 | 1,312 |
Net income attributable to common shareholders | $ 60,368 | $ 52,474 | $ 166,708 | $ 153,204 |
Basic: | ||||
Continuing operations attributable to common shareholders (in dollars per share) | $ 1.25 | $ 1.11 | $ 3.43 | $ 3.23 |
Discontinued operations (in dollars per share) | 0 | 0 | 0.03 | 0 |
Net income attributable to common shareholders (in dollars per share) | 1.25 | 1.11 | 3.47 | 3.22 |
Diluted: | ||||
Continuing operations attributable to common shareholders (in dollars per share) | 1.22 | 1.09 | 3.36 | 3.17 |
Discontinued operations (in dollars per share) | 0 | 0 | 0.03 | 0 |
Net income attributable to common shareholders (in dollars per share) | $ 1.22 | $ 1.08 | $ 3.39 | $ 3.16 |
Service | ||||
Total revenue | $ 443,038 | $ 326,711 | $ 1,226,948 | $ 960,640 |
Costs and expenses: | ||||
Cost of services provided (excluding amortization of intangible assets) | 298,018 | 219,725 | 844,130 | 641,945 |
Product | ||||
Total revenue | 142,257 | 137,521 | 437,618 | 418,484 |
Costs and expenses: | ||||
Cost of services provided (excluding amortization of intangible assets) | $ 71,077 | $ 67,660 | $ 206,786 | $ 203,655 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 60,902 | $ 52,955 | $ 168,526 | $ 154,516 |
Other comprehensive income: | ||||
Foreign currency translation adjustment and other | (6,805) | 24,570 | (14,524) | 69,242 |
Amortization of net loss and prior service benefit included in net periodic cost for pension and other post-retirement benefit plans | 615 | 883 | 1,864 | 2,638 |
Comprehensive income, before income taxes | 54,712 | 78,408 | 155,866 | 226,396 |
Less: Income tax (benefit) expense related to items of other comprehensive income | 257 | 153 | (341) | 776 |
Comprehensive income, net of income taxes | 54,455 | 78,255 | 156,207 | 225,620 |
Less: Comprehensive (loss) income related to noncontrolling interests, net of income taxes | (74) | 766 | 886 | 1,964 |
Comprehensive income attributable to common shareholders | $ 54,529 | $ 77,489 | $ 155,321 | $ 223,656 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 138,866 | $ 163,794 |
Trade receivables, net | 487,339 | 430,016 |
Inventories | 125,500 | 114,956 |
Prepaid assets | 43,764 | 36,544 |
Other current assets | 42,697 | 81,315 |
Total current assets | 838,166 | 826,625 |
Property, plant and equipment, net | 896,901 | 781,973 |
Goodwill | 1,252,700 | 804,906 |
Client relationships and other intangible assets, net | 629,733 | 369,762 |
Deferred tax assets | 24,562 | 22,654 |
Other assets | 154,595 | 124,002 |
Total assets | 3,796,657 | 2,929,922 |
Current liabilities: | ||
Current portion of long-term debt and capital leases | 31,651 | 30,998 |
Accounts payable | 77,736 | 77,838 |
Accrued compensation | 112,731 | 101,044 |
Deferred revenue | 140,760 | 117,569 |
Accrued liabilities | 109,810 | 89,780 |
Other current liabilities | 66,911 | 44,460 |
Current liabilities of discontinued operations | 1,815 | |
Total current liabilities | 539,599 | 463,504 |
Long-term debt, net and capital leases | 1,652,733 | 1,114,105 |
Deferred tax liabilities | 145,331 | 89,540 |
Other long-term liabilities | 184,954 | 194,815 |
Long-term liabilities of discontinued operations | 0 | 3,942 |
Total liabilities | 2,522,617 | 1,865,906 |
Commitments and contingencies (Note 15) | ||
Redeemable noncontrolling interest | 17,331 | 16,609 |
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; 88,315 shares issued and 48,094 shares outstanding as of September 29, 2018, and 87,495 shares issued and 47,402 shares outstanding as of December 30, 2017 | 883 | 875 |
Additional paid-in capital | 2,625,256 | 2,560,192 |
Retained earnings | 460,120 | 288,658 |
Treasury stock, at cost, 40,221 shares and 40,093 shares as of September 29, 2018 and December 30, 2017, respectively | (1,673,705) | (1,659,914) |
Accumulated other comprehensive loss | (159,448) | (144,731) |
Total equity attributable to common shareholders | 1,253,106 | 1,045,080 |
Noncontrolling interest | 3,603 | 2,327 |
Total equity | 1,256,709 | 1,047,407 |
Total liabilities, redeemable noncontrolling interest and equity | 3,796,657 | 2,929,922 |
Client relationships, net | ||
Current assets: | ||
Client relationships and other intangible assets, net | 545,799 | 301,891 |
Other intangible assets, net | ||
Current assets: | ||
Client relationships and other intangible assets, net | $ 83,934 | $ 67,871 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Sep. 29, 2018 | Dec. 30, 2017 |
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) | 88,315,000 | 87,495,000 |
Common stock, shares outstanding (in shares) | 48,094,000 | 47,402,000 |
Treasury stock (in shares) | 40,221,000 | 40,093,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Cash flows relating to operating activities | ||
Net income | $ 168,526 | $ 154,516 |
Income (loss) from discontinued operations, net of income taxes | 1,506 | (114) |
Income from continuing operations, net of income taxes | 167,020 | 154,630 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 120,198 | 97,675 |
Stock-based compensation | 35,908 | 32,902 |
Deferred income taxes | (10,385) | 18,176 |
Gain on venture capital investments | (22,760) | (12,321) |
Gain on divestiture | 0 | (10,577) |
Other, net | 10,036 | 1,034 |
Changes in assets and liabilities: | ||
Trade receivables, net | (30,318) | (42,712) |
Inventories | (10,340) | (9,500) |
Accounts payable | (5,322) | (6,160) |
Accrued compensation | 6,088 | (10,548) |
Deferred revenue | 33,491 | (16,849) |
Customer contract deposits | 34,455 | 0 |
Other assets and liabilities, net | (26,904) | (1,912) |
Net cash provided by operating activities | 301,167 | 193,838 |
Cash flows relating to investing activities | ||
Acquisitions of businesses and assets, net of cash acquired | (822,611) | (22,474) |
Capital expenditures | (71,378) | (53,928) |
Purchases of investments and contributions to venture capital investments | (20,535) | (42,135) |
Proceeds from sale of investments | 30,595 | 6,604 |
Proceeds from divestiture | 0 | 72,462 |
Other, net | (118) | (288) |
Net cash used in investing activities | (884,047) | (39,759) |
Cash flows relating to financing activities | ||
Proceeds from long-term debt and revolving credit facility | 2,392,201 | 229,255 |
Proceeds from exercises of stock options | 30,228 | 35,089 |
Payments on long-term debt, revolving credit facility, and capital lease obligations | (1,832,805) | (309,258) |
Payments on debt financing costs | (18,337) | 0 |
Purchase of treasury stock | (13,791) | (106,902) |
Other, net | 0 | (3,650) |
Net cash provided by (used in) financing activities | 557,496 | (155,466) |
Discontinued operations | ||
Net cash used in operating activities from discontinued operations | (3,735) | (1,489) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 4,664 | 9,135 |
Net change in cash, cash equivalents, and restricted cash | (24,455) | 6,259 |
Cash, cash equivalents, and restricted cash, beginning of period | 166,331 | 119,894 |
Cash, cash equivalents, and restricted cash, end of period | 141,876 | 126,153 |
Supplemental cash flow information: | ||
Cash, cash equivalents, and restricted cash, end of period | $ 166,331 | $ 119,894 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 29, 2018 | |
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 (SEC). 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 2017 . 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 income for prior periods to conform to the current year presentation. See “Newly Adopted Accounting Pronouncements” below for further discussion and impact on the condensed consolidated financial statements. 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 52-weeks, 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. 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 2017 . Newly Adopted Accounting Pronouncements In March 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-05, “Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SAB 118).” This standard amends Accounting Standards Codification 740, Income Taxes (ASC 740) to provide guidance on accounting for the tax effects of U.S. Tax Reform pursuant to SAB 118, which allows companies to complete the accounting under ASC 740 within a one-year measurement period from the enactment date of U.S. Tax Reform. This standard is effective upon issuance and the Company has complied with the amendments. See Note 11, “Income Taxes” for further discussion. In February 2018, the FASB issued ASU 2018-02, “ Income Statement - Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The standard allows for reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects arising from the change in the reduction of the U.S. federal statutory income tax rate to 21% from 35%. The Company elected to early adopt this standard in fiscal year 2018 as permitted on a prospective basis, resulting in a reclassification of $3.3 million from Accumulated other comprehensive income to Retained earnings as a result of remeasuring the Company’s deferred tax liabilities related to its pension and other post-retirement benefit plan gains and losses. The Company’s policy is to release material stranded tax effects on a specific identification basis. 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 Company adopted this standard in fiscal year 2018 and applied the changes retrospectively to the presentation of the service cost component and the other components of net periodic pension cost in the statements of income for all periods presented as required. The adoption of this standard increased Operating income by $0.1 million and $0.7 million during the three and nine months ended September 30, 2017, respectively. In connection with the impact of Operating income to the Company’s reportable segments for the three months ended September 30, 2017, Research Models and Services (RMS) decreased by $0.1 million , Discovery and Safety Assessment (DSA) decreased by $0.3 million , Manufacturing Support (Manufacturing) decreased by less than $0.1 million , and Unallocated corporate increased by $0.4 million . For the nine months ended September 30, 2017, Operating income for RMS decreased by $0.1 million , DSA decreased by $1.0 million , Manufacturing decreased by less than $0.1 million , and Unallocated corporate increased by $1.7 million . 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. The Company’s adoption of this standard in fiscal year 2018 did not have a significant impact on the 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. The Company’s adoption of this standard in fiscal year 2018 did not have a significant impact on the consolidated financial statements and related disclosures. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Liabilities.” This standard, including a subsequently issued amendment under ASU 2018-03, “ Technical Corrections and Improvements to Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities” , requires equity investments that are not accounted for under the equity method of accounting to be measured at fair value with changes recognized in net income, simplifies the impairment assessment of certain equity investments, and updates certain presentation and disclosure requirements. The Company adopted this standard in fiscal year 2018, resulting in an increase of $1.9 million to Other assets with a corresponding increase to Retained earnings and Deferred taxes of $1.4 million and $0.5 million , respectively. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” The standard, including subsequently issued amendments, replaced most existing revenue recognition guidance in U.S. GAAP and permits the use of either a modified retrospective or cumulative effect transition method. The Company elected the modified retrospective transition method. The standard requires 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 Company adopted this standard in fiscal year 2018 . See Note 3, “Revenue From Contracts With Customers” for a discussion of the Company’s adoption of this standard and its impact on the consolidated financial statements and related disclosures. Newly Issued Accounting Pronouncements In August 2018, the FASB issued ASU 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computer Arrangement that is a Service Contract.” ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years and will be applied either retrospectively or prospectively. Early adoption is permitted. The Company is still evaluating the impact this standard will have on its consolidated financial statements and related disclosures . In August 2018, the FASB issued ASU 2018-14, “Compensation Retirement Benefits - Defined Benefit Plans -General (Subtopic 715-20).” ASU 2018-14 removes the requirements to disclose the amounts in Accumulated other comprehensive income (loss) expected to be recognized as components of net periodic benefit cost over the next fiscal year and the related party disclosures about the amount of future annual benefits covered by insurance contracts. In addition, the ASU adds the requirement to disclose an explanation for any significant gains and losses related to changes in the benefit obligation for the period. The ASU is effective for fiscal years ending after December 15, 2020 and will be applied on a retrospective basis to all periods presented. Early adoption is permitted. The Company is still evaluating the impact this standard will have on its consolidated financial statements and related disclosures . In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 removes the disclosure requirement for the amount and reasons for transfers between Level 1 and Level 2 fair value measurements as well as the process for Level 3 fair value measurements. In addition, the ASU adds the disclosure requirements for changes in unrealized gains and losses included in Other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period as well as the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years and will be applied on a retrospective basis to all periods presented. Early adoption is permitted. The Company is still evaluating the impact this standard will have on its consolidated financial statements and related disclosures . In June 2018, the FASB issued ASU 2018-07, “Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting.” ASU 2018-07 aligns the accounting for share-based payment awards issued to employees and nonemployees as well as improves financial reporting for share-based payments to nonemployees. The ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years and will be applied to all new option awards granted after the date of adoption. 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 August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities.” ASU 2017-12 refines and expands hedge accounting for both financial and commodity risks. It also creates more transparency around how economic results are presented, both on the face of the financial statements and in the disclosures. In addition, this ASU makes certain targeted improvements to simplify the application of hedge accounting guidance. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, and requires the modified retrospective approach. Early adoption is permitted. This update applies to all existing hedging relationships on the date of adoption with the cumulative effect of adoption being reflected as of the beginning of the fiscal year of adoption. 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 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, including subsequently issued amendments, 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 ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company formed an implementation team during fiscal year 2017 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 lease portfolio. The Company continues to assess the impact on the existing lease accounting policies, newly required financial statement disclosures, and executing on the project plan. Currently, the Company is performing contract reviews, evaluating anticipated changes to systems, business processes, and internal controls to support the adoption of the new standard. 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 as of December 30, 2018 (day one of fiscal year 2019, which is the Company’s adoption date) by recording a right-of-use asset and a corresponding lease liability. The Company will adopt this standard using a modified retrospective transition approach to be applied to leases existing as of or entered into after the adoption date. |
BUSINESS ACQUISITIONS AND DIVES
BUSINESS ACQUISITIONS AND DIVESTITURE | 9 Months Ended |
Sep. 29, 2018 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITIONS AND DIVESTITURE | BUSINESS ACQUISITIONS AND DIVESTITURE MPI Research On April 3, 2018 , the Company acquired MPI Research, a non-clinical contract research organization (CRO) providing comprehensive testing services to biopharmaceutical and medical device companies worldwide. The acquisition enhances 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 MPI Research was $829.7 million in cash, subject to certain post-closing adjustments that may change the purchase price. The acquisition was funded by borrowings on the Company’s $ 2.3B Credit Facility as well as the issuance of the Company’s Senior Notes. See Note 9, “Long-Term Debt and Capital Lease Obligations.” This business is reported as part of the Company’s DSA reportable segment. The preliminary purchase allocation of $800.8 million , net of $27.7 million of cash acquired and a final net working capital adjustment of $1.2 million , was as follows: April 3, 2018 (in thousands) Trade receivables (contractual amount of $35,073) $ 35,073 Inventories 4,463 Other current assets (excluding cash) 5,893 Property, plant and equipment 128,403 Goodwill 440,662 Definite-lived intangible assets 309,200 Other long-term assets 1,081 Deferred revenue (22,600 ) Current liabilities (32,885 ) Deferred tax liabilities (66,277 ) Other long-term liabilities (2,213 ) Total purchase price allocation $ 800,800 The purchase price allocation is subject to change as additional information becomes available concerning the fair value and tax basis of the assets acquired and liabilities assumed, including certain contracts and obligations. 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 September 29, 2018 , 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 $ 264,900 13 Developed technology 23,400 3 Backlog 20,900 2 Total definite-lived intangible assets $ 309,200 12 The goodwill resulting from the transaction, $4.1 million of which is deductible for tax purposes due to a prior asset acquisition, is primarily attributable to the potential growth of the Company’s DSA business from customers introduced through MPI Research and the assembled workforce of the acquired business. The Company incurred transaction and integration costs in connection with the acquisition of $0.8 million and $15.3 million for the three and nine months ended September 29, 2018 , respectively, which were primarily included in Selling, general and administrative expenses. MPI Research revenue for the three and nine months ended September 29, 2018 was $70.2 million and $136.8 million , respectively. MPI Research operating income for the three and nine months ended September 29, 2018 was $12.2 million and $20.4 million , respectively. The following selected pro forma consolidated results of operations are presented as if the MPI 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 nine months ended September 29, 2018 , these adjustments included additional amortization of intangible assets and depreciation of fixed assets of $11.8 million , additional interest expense on borrowings of $2.8 million , elimination of intercompany activity and other one-time costs, and the tax impacts of these adjustments. For the nine months ended September 30, 2017 , these adjustments included additional amortization of intangible assets and depreciation of fixed assets of $17.3 million , additional interest expense on borrowings of $19.3 million , elimination of intercompany activity and other one-time costs, and the tax impacts of these adjustments. Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) Revenue $ 585,295 $ 523,948 $ 1,726,683 $ 1,555,146 Net income attributable to common shareholders 59,297 48,927 168,872 139,258 Earnings per common share Basic $ 1.23 $ 1.03 $ 3.51 $ 2.93 Diluted $ 1.20 $ 1.01 $ 3.44 $ 2.87 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 dates indicated or that may result in the future. No effect has been given for synergies, if any, that may be realized through the acquisition. KWS BioTest Limited On January 11, 2018 , the Company acquired KWS BioTest Limited (KWS BioTest), a CRO specializing in in vitro and in vivo discovery testing services for immuno-oncology, inflammatory and infectious diseases. The acquisition enhances the Company’s discovery expertise, with complementary offerings that provide the Company’s customers with additional tools in the active therapeutic research areas of oncology and immunology. The purchase price for KWS BioTest was $20.3 million in cash, subject to certain post-closing adjustments that may change the purchase price, and was funded by the Company’s various borrowings. In addition to the initial purchase price, the transaction includes aggregate, undiscounted contingent payments of up to £ 3.0 million (approximately $3.9 million based on recent exchange rates), based on future performance. During the three months ended September 29, 2018 , the terms of these contingent payments were amended, resulting in a fixed payment of £ 2.0 million (approximately $2.6 million based on recent exchange rates), due in the first quarter of fiscal year 2019. The KWS BioTest business is reported as part of the Company’s DSA reportable segment. The preliminary purchase price allocation of $21.5 million , net of $1.0 million of cash acquired and a final net working capital adjustment of $0.4 million , was as follows: January 11, 2018 (in thousands) Trade receivables (contractual amount of $1,309) $ 1,309 Other current assets (excluding cash) 99 Property, plant and equipment 1,136 Definite-lived intangible assets - client relationships 3,647 Goodwill 17,660 Current liabilities (1,575 ) Deferred revenue (151 ) Long-term liabilities (596 ) Total purchase price allocation $ 21,529 The purchase price allocation is subject to change as additional information becomes available concerning the fair value and tax basis of the assets acquired and liabilities assumed, including certain contracts and obligations. 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 September 29, 2018 , 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 only definite-lived intangible asset relates to client relationships, which will be amortized over a weighted average life of 12 years. The goodwill resulting from the transaction is primarily attributable to the potential growth of the Company’s DSA business from customers introduced through KWS BioTest and the assembled workforce of the acquired business. The goodwill attributable to KWS BioTest is not deductible for tax purposes. The Company incurred transaction and integration costs of $0.1 million and $0.6 million in connection with the acquisition for the three and nine months ended September 29, 2018 , respectively, which were included in Selling, general and administrative expenses, within the unaudited condensed consolidated statements of income. Pro forma financial information as well as actual revenue and operating income have not been included because KWS BioTest’s financial results are not significant when compared to the Company’s consolidated financial results. Brains On-Line On August 4, 2017 , the Company acquired Brains On-Line, a 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 purchase price for Brains On-Line was $21.3 million in cash and was funded by the Company’s various borrowings. In addition to the initial purchase price, the transaction includes aggregate, undiscounted contingent payments of up to €6.7 million (approximately $7.8 million based on recent exchange rates), based on future performance. The Brains On-Line business is reported as part of the Company’s DSA reportable segment. The contingent payments become payable based on the achievement of certain revenue and earnings targets. If achieved, the payments become due in the first quarter of fiscal year 2019. The Company estimated the fair value of this contingent consideration based on a probability-weighted set of outcomes. The purchase price allocation of $20.1 million , net of $ 0.6 million of cash acquired, was as follows: August 4, 2017 (in thousands) Trade receivables (contractual amount of $1,146) $ 1,146 Other current assets (excluding cash) 640 Property, plant and equipment 664 Other long-term assets 29 Definite-lived intangible assets 9,300 Goodwill 12,582 Current liabilities (1,683 ) Deferred revenue (405 ) Long-term liabilities (2,151 ) Total purchase price allocation $ 20,122 From the date of acquisition through June 30, 2018, 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 $ 7,000 13 Other intangible assets 2,300 10 Total definite-lived intangible assets $ 9,300 12 The goodwill resulting from the transaction is primarily attributable to the potential growth of the Company’s DSA business from customers and technology introduced through Brains On-Line and the assembled workforce of the acquired business. The goodwill attributable to Brains On-Line is not deductible for tax purposes. No significant integration costs were incurred in connection with the acquisition for the three and nine months ended September 29, 2018 . The Company incurred transaction and integration costs in connection with the acquisition of $1.2 million and $2.1 million for the three and nine months ended September 30, 2017 , respectively, which were included in Selling, general and administrative expenses, within the unaudited condensed consolidated statements of income. Pro forma financial information as well as actual revenue and operating income have not been included because Brains On-Line’s financial results are not significant when compared to the Company’s consolidated financial results. Contract Manufacturing On February 10, 2017 , the Company sold 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 . 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. The carrying amounts of the major classes of assets and liabilities associated with the divestiture of the CDMO business were as follows: February 10, 2017 Assets (in thousands) 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 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Sep. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Adoption of ASC Topic 606, “Revenue from Contracts with Customers” (ASC 606) ASC 606 became effective for the Company on December 31, 2017 and was adopted using the modified retrospective method for all contracts not completed as of the date of adoption. For contracts that were modified before the effective date, the Company reflected the aggregate effect of all modifications when identifying performance obligations and allocating transaction price in accordance with the practical expedient, which did not have a material effect on the cumulative impact of adopting ASC 606. The reported results for 2018 reflect the application of ASC 606 guidance while the historical results for 2017 were prepared under the guidance of ASC 605, “Revenue Recognition” (ASC 605). The cumulative effect of applying ASC 606 to all contracts with customers that were not completed as of December 30, 2017 was immaterial. There is no material difference in the reporting of revenue for the three and nine months ended September 29, 2018 in accordance with ASC 606 when compared to ASC 605. Revenue Recognition Revenue is recognized when, or as, obligations under the terms of a contract are satisfied, which occurs when control of the promised products or services is transferred to customers. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or services to a customer (“transaction price”). To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing the amount to which the Company expects to be entitled. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information (historical, current and forecasted) that is reasonably available. Sales, value add, and other taxes collected on behalf of third parties are excluded from revenue. When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Generally, the Company does not extend payment terms beyond one year. Applying the practical expedient, the Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. None of the Company’s contracts contained a significant financing component for the nine months ended September 29, 2018 . Contracts with customers may contain multiple performance obligations. For such arrangements, the transaction price is allocated to each performance obligation based on the estimated relative standalone selling prices of the promised products or services underlying each performance obligation. The Company determines standalone selling prices based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Contracts are often modified to account for changes in contract specifications and requirements. Contract modifications exist when the modification either creates new, or changes existing, enforceable rights and obligations. Generally, when contract modifications create new performance obligations, the modification is considered to be a separate contract and revenue is recognized prospectively. When contract modifications change existing performance obligations, the existing transaction price and measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. Product revenue is generally recognized when the customer obtains control of the Company’s product, which occurs at a point in time, and may be upon shipment or upon delivery based on the contractual shipping terms of a contract. Service revenue is generally recognized over time as the services are delivered to the customer based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. Depending on which better depicts the transfer of value to the customer, the Company generally measures its progress using either cost-to-cost (input method) or right-to-invoice (output method). The Company uses the cost-to-cost measure of progress when it best depicts the transfer of value to the customer which occurs as the Company incurs costs on its contract, generally related to fixed fee service contracts . Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. The costs calculation includes variables such as labor hours, allocation of overhead costs, research model costs, and subcontractor costs. Revenue is recorded proportionally as costs are incurred. The right-to-invoice measure of progress is generally related to rate per unit contracts, as the extent of progress towards completion is measured based on discrete service or time-based increments, such as samples tested or labor hours incurred. Revenue is recorded in the amount invoiced since that amount corresponds directly to the value of the Company’s performance to date. Disaggregation of Revenue The following tables disaggregate the Company’s revenue by major business line and timing of transfer of products or services for the three and nine months ended September 29, 2018 (in thousands): Major Products/Service Lines: Three Months Ended September 29, 2018 Nine Months Ended September 29, 2018 RMS $ 126,811 $ 391,195 DSA 352,257 958,665 Manufacturing 106,227 314,706 Total revenue $ 585,295 $ 1,664,566 Timing of Revenue Recognition: Three Months Ended September 29, 2018 Nine Months Ended September 29, 2018 RMS Services and products transferred over time $ 49,417 $ 146,947 Services and products transferred at a point in time 77,394 244,248 DSA Services and products transferred over time 352,203 958,174 Services and products transferred at a point in time 54 491 Manufacturing Services and products transferred over time 31,420 92,978 Services and products transferred at a point in time 74,807 221,728 Total revenue $ 585,295 $ 1,664,566 RMS The RMS business generates revenue through the commercial production and sale of research models and the provision of services related to the maintenance and monitoring of research models and management of clients’ research operations. Revenue from the sale of research models is recognized at a point in time when the customer obtains control of the product, which may be upon shipment or upon delivery based on the shipping terms of a contract. Revenue generated from research models services is recognized over time and is typically based on a right-to-invoice measure of progress (output method) as invoiced amounts correspond directly to the value of the Company’s performance to date . DSA The Discovery and Safety Assessment business provides a full suite of integrated drug discovery services directed at the identification, screening and selection of a lead compound for drug development and offers a full range of safety assessment services including bioanalysis, drug metabolism, pharmacokinetics, toxicology and pathology. Discovery and Safety Assessment services revenue is generally recognized over time using the cost-to-cost or right to invoice measures of progress, primarily representing fixed fee service contracts and per unit service contracts, respectively . Manufacturing The Manufacturing business includes Microbial Solutions, which provides in vitro (non-animal) lot-release testing products, microbial detection products, and species identification services; Biologics Testing Services (Biologics), which performs specialized testing of biologics; and Avian Vaccine Services (Avian), which supplies specific-pathogen-free chicken eggs and chickens. Species identification service revenue is generally recognized at a point in time as identifications are completed by the Company. Biologics service revenue is generally recognized over time using the cost-to-cost measure of progress. Microbial Solutions and Avian product sales are generally recognized at a point in time when the customer obtains control of the product, which may be upon shipment or upon delivery based on the contractual shipping terms of a contract. Transaction Price Allocated to Future Performance Obligations ASC 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of September 29, 2018 . The guidance provides certain practical expedients that limit this requirement and, therefore, the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed. The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially satisfied) as of September 29, 2018 : Revenue Expected to be Recognized in Future Periods Less than 1 Year 1 to 3 Years 4 to 5 Years Beyond 5 Years Total (in thousands) DSA $ 126,336 $ 82,192 $ 3,299 $ 492 $ 212,319 Manufacturing 10,286 20,245 9,013 68 39,612 Total $ 136,622 $ 102,437 $ 12,312 $ 560 $ 251,931 Contract Balances from Contracts with Customers The timing of revenue recognition, billings and cash collections results in billed receivables (client receivables), contract assets (unbilled revenue), contract liabilities (current and non-current deferred revenue), and customer deposits on the unaudited condensed consolidated balance sheets. The Company’s pay ment terms are generally 30 days in the United States and consistent with prevailing practice in international markets. A contract asset is recorded when a right to consideration in exchange for goods or services transferred to a customer is conditioned other than the passage of time. Client receivables are recorded separately from contract assets since only the passage of time is required before consideration is due. A contract liability is recorded when consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract. Contract liabilities are recognized as revenue after control of the products or services is transferred to the customer and all revenue recognition criteria have been met. The following table provides information about client receivables, contract assets, and contract liabilities from contracts with customers: September 29, 2018 December 30, 2017 (1) (in thousands) Balances from contracts with customers only: Client receivables $ 376,302 $ 335,839 Contract assets (unbilled revenue) 113,311 96,297 Contract liabilities (current and long-term deferred revenue) 178,331 125,882 Contract liabilities (customer contract deposits) 44,586 — (1) The beginning balance as of December 30, 2017 is presented under the guidance of ASC 605. Under ASC 606, when the Company does not have the unconditional right to advanced billings, both advanced client payments and unpaid advanced client billings are excluded from deferred revenue, with the advanced billings also being excluded from client receivables. As of September 29, 2018 , the Company excluded approximately $16 million of unpaid advanced client billings from both client receivables and deferred revenue and approximately $45 million of advanced client payments have been presented as customer contract deposits within other current liabilities in the accompanying unaudited condensed consolidated financial statements. Other changes in the contract asset and the contract liability balances during the nine months ended September 29, 2018 were as follows: (i) Changes due to business combinations: See Note 2. “Business Acquisitions and Divestiture” for client receivables and deferred revenue that were acquired as part of the MPI Research acquisition occurring on April 3, 2018 and the KWS BioTest acquisition occurring on January 11, 2018. (ii) Cumulative catch-up adjustments to revenue that affect the corresponding contract asset or contract liability, including adjustments arising from a change in the measure of progress, a change in an estimate of the transaction price (including any changes in the assessment of whether an estimate of variable consideration is constrained), or a contract modification: During the nine months ended September 29, 2018 , an immaterial cumulative catch-up adjustment to revenue was recorded. (iii) A change in the time frame for a right to consideration to become unconditional (that is, for a contract asset to be recorded as a client receivable): Approximately $88 million of unbilled revenue as of December 30, 2017 was billed during the nine months ended September 29, 2018 . (iv) A change in the time frame for a performance obligation to be satisfied (that is, for the recognition of revenue arising from a contract liability): Approximately $110 million of contract liabilities as of December 30, 2017 were recognized as revenue during the nine months ended September 29, 2018 . |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 29, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company retrospectively adopted ASU 2017-07 in fiscal year 2018, which impacted segment information. Service cost is reflected in operating income within the unaudited condensed consolidated statements of income while all other components of net periodic cost are recorded in Other income, net within the unaudited condensed consolidated statements of income. See Note 1, “Basis of Presentation.” The Company’s three reportable segments are Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Support (Manufacturing). The following table presents revenue and other financial information by reportable segment: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) RMS Revenue $ 126,811 $ 122,020 $ 391,195 $ 373,183 Operating income 32,121 30,665 104,893 101,949 Depreciation and amortization 4,811 5,272 14,565 15,309 Capital expenditures 8,166 6,762 18,105 13,769 DSA Revenue $ 352,257 $ 246,946 $ 958,665 $ 726,796 Operating income 62,909 46,324 160,391 135,994 Depreciation and amortization 31,433 20,333 83,262 58,667 Capital expenditures 10,800 10,127 34,496 25,552 Manufacturing Revenue $ 106,227 $ 95,266 $ 314,706 $ 279,145 Operating income 33,266 31,920 95,904 87,563 Depreciation and amortization 5,709 5,572 17,313 17,321 Capital expenditures 2,709 2,879 12,731 7,111 For the three and nine months ended September 29, 2018 and September 30, 2017 , 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 September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) Three Months Ended: Total reportable segments $ 128,296 $ 108,909 $ 41,953 $ 31,177 $ 21,675 $ 19,768 Unallocated corporate (43,934 ) (34,847 ) 1,639 2,288 764 2,243 Total consolidated $ 84,362 $ 74,062 $ 43,592 $ 33,465 $ 22,439 $ 22,011 Nine Months Ended: Total reportable segments $ 361,188 $ 325,506 $ 115,140 $ 91,297 $ 65,332 $ 46,432 Unallocated corporate (132,287 ) (100,052 ) 5,058 6,378 6,046 7,496 Total consolidated $ 228,901 $ 225,454 $ 120,198 $ 97,675 $ 71,378 $ 53,928 Revenue for each significant product or service offering is as follows: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) RMS $ 126,811 $ 122,020 $ 391,195 $ 373,183 DSA 352,257 246,946 958,665 726,796 Manufacturing 106,227 95,266 314,706 279,145 Total revenue $ 585,295 $ 464,232 $ 1,664,566 $ 1,379,124 A summary of unallocated corporate expense consists of the following : Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) Stock-based compensation $ 7,910 $ 7,255 $ 24,517 $ 20,259 Compensation, benefits, and other employee-related expenses 20,464 11,337 56,375 36,083 External consulting and other service expenses 4,767 6,729 12,711 16,581 Information technology 3,070 3,237 8,723 9,247 Depreciation 1,639 2,288 5,058 6,378 Acquisition and integration 1,122 1,327 15,678 2,539 Other general unallocated corporate 4,962 2,674 9,225 8,965 Total unallocated corporate expense $ 43,934 $ 34,847 $ 132,287 $ 100,052 Other general unallocated corporate expense consists of costs associated with departments such as senior executives, corporate accounting, legal, tax, human resources, treasury, and investor relations. Revenue by geographic area is as follows: U.S. Europe Canada Asia Pacific Other Consolidated (in thousands) Three Months Ended: September 29, 2018 $ 336,811 $ 159,473 $ 53,665 $ 34,062 $ 1,284 $ 585,295 September 30, 2017 238,226 141,967 51,864 31,953 222 464,232 Nine Months Ended: September 29, 2018 $ 919,807 $ 481,955 $ 153,802 $ 104,817 $ 4,185 $ 1,664,566 September 30, 2017 714,460 418,468 152,293 93,094 809 1,379,124 Included in the Asia Pacific category above are operations located in China, Japan, Korea, Australia, Singapore, and India. Included in the Other category above are operations located in Brazil and Israel. Revenue represents sales originating in entities physically located in the identified geographic area. |
SUPPLEMENTAL BALANCE SHEET INFO
SUPPLEMENTAL BALANCE SHEET INFORMATION | 9 Months Ended |
Sep. 29, 2018 | |
Supplemental Balance Sheet Information [Abstract] | |
SUPPLEMENTAL BALANCE SHEET INFORMATION | SUPPLEMENTAL BALANCE SHEET INFORMATION The composition of trade receivables, net is as follows: September 29, 2018 December 30, 2017 (in thousands) Client receivables $ 376,302 $ 335,839 Unbilled revenue 113,311 96,297 Total 489,613 432,136 Less: Allowance for doubtful accounts (2,274 ) (2,120 ) Trade receivables, net $ 487,339 $ 430,016 The composition of inventories is as follows: September 29, 2018 December 30, 2017 (in thousands) Raw materials and supplies $ 20,798 $ 19,858 Work in process 20,231 18,200 Finished products 84,471 76,898 Inventories $ 125,500 $ 114,956 The composition of other current assets is as follows: September 29, 2018 December 30, 2017 (in thousands) Investments $ 5,238 $ 28,489 Prepaid income taxes 36,733 52,234 Restricted cash 426 592 Other 300 — Other current assets $ 42,697 $ 81,315 The composition of other assets is as follows: September 29, 2018 December 30, 2017 (in thousands) Life insurance policies $ 35,916 $ 34,008 Venture capital investments 95,837 71,101 Restricted cash 2,584 1,945 Other 20,258 16,948 Other assets $ 154,595 $ 124,002 The composition of other current liabilities is as follows: September 29, 2018 December 30, 2017 (in thousands) Accrued income taxes $ 21,387 $ 43,250 Customer contract deposits 44,586 — Other 938 1,210 Other current liabilities $ 66,911 $ 44,460 The composition of other long-term liabilities is as follows: September 29, 2018 December 30, 2017 (in thousands) U.S. Transition Tax $ 52,070 $ 61,038 Long-term pension liability 20,231 52,364 Accrued executive supplemental life insurance retirement plan and deferred compensation plan 38,610 37,582 Long-term deferred revenue 37,571 8,313 Other 36,472 35,518 Other long-term liabilities $ 184,954 $ 194,815 |
VENTURE CAPITAL INVESTMENTS
VENTURE CAPITAL INVESTMENTS | 9 Months Ended |
Sep. 29, 2018 | |
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 less than 1% to 12.0% . The Company accounts for the investments in limited partnerships (LPs), which are variable interest entities, under the equity method of accounting. For publicly-held investments in the LPs, the Company adjusts for changes in fair market value based on reported share holdings at the end of each fiscal quarter. 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 commitment to the venture capital funds as of September 29, 2018 was $114.9 million , of which the Company funded $65.3 million through that date. The Company received dividends totaling $5.6 million and $3.3 million for the three months ended September 29, 2018 and September 30, 2017 , respectively. The Company received dividends totaling $14.1 million and $7.7 million for the nine months ended September 29, 2018 and September 30, 2017 , respectively. The Company recognized gains of $5.4 million and $5.6 million related to the venture capital investments for the three months ended September 29, 2018 and September 30, 2017 , respectively. The Company recognized gains of $22.8 million and $12.3 million related to the venture capital investments for the nine months ended September 29, 2018 and September 30, 2017 , respectively. Gains and losses are recorded in Other income, net in the accompanying unaudited condensed consolidated statements of income. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 29, 2018 | |
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 nine months ended September 29, 2018 and September 30, 2017 , 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; • 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. The book value of the Company’s 5.5% Senior Notes (Senior Notes) due in 2026, which are fixed rate debt carried at amortized cost, approximates fair value based on quoted market prices and on borrowing rates available to the Company; 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: September 29, 2018 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents $ — $ 18,717 $ — $ 18,717 Other current assets: Foreign currency forward contract 29 29 Other assets: Life insurance policies — 28,193 — 28,193 Total assets measured at fair value $ — $ 46,939 $ — $ 46,939 Other current liabilities: Contingent consideration $ — $ — $ 3,400 $ 3,400 Total liabilities measured at fair value $ — $ — $ 3,400 $ 3,400 December 30, 2017 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents $ — $ 21 $ — $ 21 Other assets: Life insurance policies — 26,358 — 26,358 Total assets measured at fair value $ — $ 26,379 $ — $ 26,379 Other current liabilities: Contingent consideration $ — $ — $ 298 $ 298 Total liabilities measured at fair value $ — $ — $ 298 $ 298 Contingent Consideration The following table provides a rollforward of the contingent consideration related to previous business acquisitions. See Note 2, “Business Acquisitions and Divestiture.” Nine Months Ended September 29, 2018 September 30, 2017 (in thousands) Beginning balance $ 298 $ 3,621 Additions 3,315 296 Payments — (3,606 ) Foreign currency translation (213 ) — Reversal of previously recorded contingent liability — (15 ) Ending balance $ 3,400 $ 296 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 within the fair value hierarchy. The book value of the Company’s Senior Notes, which are a fixed rate obligation carried at amortized cost, approximates the fair value at quoted market prices as well as borrowing rates available to the Company. As the fair value is based on significant other observable outputs, it is deemed to be Level 2 within the fair value hierarchy. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 29, 2018 | |
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 30, 2017 Acquisitions Foreign Exchange September 29, 2018 (in thousands) RMS $ 58,122 $ — $ (1,059 ) $ 57,063 DSA 605,176 459,228 (9,428 ) 1,054,976 Manufacturing 141,608 2,551 (3,498 ) 140,661 Goodwill $ 804,906 $ 461,779 $ (13,985 ) $ 1,252,700 The increase in goodwill during the nine months ended September 29, 2018 related primarily to the acquisitions of MPI Research and KWS BioTest in the DSA reportable segment, an immaterial a cquisition of an Australian business in the Manufacturing reportable segment, and the impact of foreign exchange . Intangible Assets, Net The following table displays intangible assets, net by major class: September 29, 2018 December 30, 2017 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in thousands) Backlog $ 20,900 $ (12,391 ) $ 8,509 $ 8,111 $ (8,111 ) $ — Technology 102,794 (39,271 ) 63,523 81,309 (27,157 ) 54,152 Trademarks and trade names 8,466 (4,619 ) 3,847 8,661 (4,562 ) 4,099 Other 17,532 (9,477 ) 8,055 17,465 (7,845 ) 9,620 Other intangible assets 149,692 (65,758 ) 83,934 115,546 (47,675 ) 67,871 Client relationships 798,574 (252,775 ) 545,799 540,425 (238,534 ) 301,891 Intangible assets $ 948,266 $ (318,533 ) $ 629,733 $ 655,971 $ (286,209 ) $ 369,762 The increase in intangible assets, net during the nine months ended September 29, 2018 related primarily to the acquisitions of MPI Research and KWS BioTest in the DSA reportable segment. |
LONG-TERM DEBT AND CAPITAL LEAS
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS | 9 Months Ended |
Sep. 29, 2018 | |
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: September 29, 2018 December 30, 2017 (in thousands) Term loans $ 740,625 $ 601,250 Revolving facility 411,931 500,997 Senior Notes 500,000 — Other long-term debt 18,091 18,292 Total debt 1,670,647 1,120,539 Less: Current portion of long-term debt (28,229 ) (28,546 ) Long-term debt 1,642,418 1,091,993 Debt discount and debt issuance costs (17,068 ) (5,770 ) Long-term debt, net $ 1,625,350 $ 1,086,223 As of September 29, 2018 and December 30, 2017 , the weighted average interest rate on the Company’s debt was 3.72% and 2.45% , respectively. Term Loans and Revolving Facility On March 26, 2018, the Company amended and restated its credit facility creating a $ 2.3 billion credit facility ($ 2.3B Credit Facility) which extends the maturity date for the credit facility. The $ 2.3B Credit Facility provides for a $ 750.0 million term loan and a $ 1.55 billion multi-currency revolving facility. The amendment was accounted for as a debt modification. In connection with the transaction, the Company capitalized approximately $6.2 million within Long-term debt, net and capital leases in the accompanying unaudited condensed consolidated balance sheets and expensed approximately $1.0 million of debt issuance costs recorded within Interest expense in the accompanying unaudited condensed consolidated statements of income. The term loan facility matures in 19 quarterly installments with the last installment due March 26, 2023. The revolving facility matures on March 26, 2023, and requires no scheduled payment before that date. Under specified circumstances, the Company has the ability to increase the term loan and/or revolving facility by up to $ 1.0 billion in the aggregate. The interest rates applicable to the term loan and revolving facility under the $ 2.3B 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 $ 2.3B 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 4.50 to 1.0 with step downs to 3.50 to 1.0 by the last day of the first quarter of 2020. As of September 29, 2018 , the Company was compliant with all covenants. The obligations of the Company under the $ 2.3B Credit Facility are collateralized by substantially all of the assets of the Company. Senior Notes Offering On April 3, 2018, the Company entered into an indenture (Indenture) with MUFG Union Bank, N.A., (Trustee) in connection with the offering of $500.0 million in aggregate principal amount of the Company’s 5.5% Senior Notes (Senior Notes), due in 2026, in an unregistered offering. Under the terms of the Indenture, interest on the Senior Notes is payable semi-annually on April 1 and October 1 of each year, beginning on October 1, 2018. The Senior Notes are guaranteed fully and unconditionally, jointly and severally on a senior unsecured basis (Note Guarantees) by the Company and certain of its U.S. subsidiaries. In connection with the transaction, the Company incurred approximately $7.4 million of debt issuance costs within Long-term debt, net and capital leases in the accompanying unaudited condensed consolidated balance sheets. The Company may redeem all or part of the Senior Notes at any time prior to April 1, 2021, at its option, at a redemption price equal to 100% of the principal amount of such Senior Notes plus the Applicable Premium (as defined in the Indenture). The Company may also redeem up to 40% of the Senior Notes with the proceeds of certain equity offerings completed before April 1, 2021, at a redemption price equal to 105.5% of the principal amount of such Senior Notes. On or after April 1, 2021, the Company may on any one or more occasions redeem all or a part of the Senior Notes, at the redemption prices specified in the Indenture based on the applicable date of redemption. Upon the occurrence of a Change of Control Triggering Event (as defined in the Indenture), the Company will be required to offer to repurchase the Senior Notes at a purchase price equal to 101% of the aggregate principal amount of such Senior Notes. Any redemption of the Senior Notes would also require settlement of accrued and unpaid interest, if any, to but excluding the redemption date. The Indenture contains certain covenants, including but not limited to, limitations and restrictions on the ability of the Company and its U.S. subsidiaries to (i) create certain liens, (ii) enter into any Sale and Leaseback Transaction (as defined in the Indenture) with respect to any property, and (iii) merge, consolidate, sell or otherwise dispose of all or substantially all of their assets. These covenants are subject to a number of conditions, qualifications, exceptions and limitations. Any event of default, as defined, could result in the acceleration of the repayment of the obligations. Net proceeds from the Senior Notes of $493.8 million were used to partially repay the outstanding revolving credit facility on April 3, 2018. Commitment Letter On February 12, 2018, the Company secured a $830 million commitment under a 364-day senior unsecured bridge loan facility (the “ Bridge Facility ”) for the purpose of financing the acquisition of MPI Research. The Bridge Facility was terminated as of April 3, 2018 upon the successful acquisition of MPI Research. Debt issuance costs of $1.8 million , which were capitalized upon the execution of the Bridge Facility, were expensed upon termination of the agreement on April 3, 2018. In addition, the Company incurred and expensed $2.0 million of fees pertaining to a temporary backstop facility related to the negotiation of the Credit Facility during the three months ended March 31, 2018. These costs were included in Interest expense in the accompanying unaudited condensed consolidated statements of income. Letters of Credit As of September 29, 2018 and December 30, 2017 , the Company had $5.5 million and $4.9 million , respectively, in outstanding letters of credit. Capital Lease Obligations The Company’s capital lease obligations amounted to $30.8 million and $30.3 million as of September 29, 2018 and December 30, 2017 , respectively. |
EQUITY AND NONCONTROLLING INTER
EQUITY AND NONCONTROLLING INTEREST | 9 Months Ended |
Sep. 29, 2018 | |
Equity [Abstract] | |
EQUITY AND NONCONTROLLING INTEREST | EQUITY AND NONCONTROLLING INTERESTS Earnings Per Share The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) Numerator: Income from continuing operations, net of income taxes $ 60,902 $ 52,994 $ 167,020 $ 154,630 Income (loss) from discontinued operations, net of income taxes — (39 ) 1,506 (114 ) Less: Net income attributable to noncontrolling interests 534 481 1,818 1,312 Net income attributable to common shareholders $ 60,368 $ 52,474 $ 166,708 $ 153,204 Denominator: Weighted-average shares outstanding - Basic 48,310 47,451 48,098 47,530 Effect of dilutive securities: Stock options, restricted stock units, performance share units and restricted stock 1,016 939 1,020 910 Weighted-average shares outstanding - Diluted 49,326 48,390 49,118 48,440 Options to purchase 0.5 million and 0.4 million shares for the three months ended September 29, 2018 and September 30, 2017 , respectively, as well as a non-significant 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 0.5 million and 0.6 million shares for the nine months ended September 29, 2018 and September 30, 2017 , respectively, as well as a non-significant 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 the nine months ended September 29, 2018 and September 30, 2017 excluded the impact of 1.0 million and 1.1 million shares, respectively, of non-vested restricted stock and RSUs. Treasury Shares During the nine months ended September 29, 2018 , the Company did no t repurchase any shares under its authorized stock repurchase program. During the nine months ended September 30, 2017 , the Company repurchased 1.0 million shares totaling $90.6 million under its $1.3 billion authorized stock repurchase program. As of September 29, 2018 , the Company had $129.1 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 nine months ended September 29, 2018 and September 30, 2017 , the Company acquired 0.1 million shares for $13.8 million and 0.2 million shares for $16.3 million , respectively, from such netting. In October 2018, the Company’s Board of Directors approved the cancellation and return to the Company’s authorized and unissued capital stock of 40.2 million treasury shares for no consideration. Accumulated Other Comprehensive Income (Loss) Changes to each component of accumulated other comprehensive income (loss), net of income taxes, are as follows: Foreign Currency Translation Adjustment and Other Pension and Other Post-Retirement Benefit Plans Total (in thousands) December 30, 2017 $ (77,545 ) $ (67,186 ) $ (144,731 ) Other comprehensive loss before reclassifications (13,592 ) — (13,592 ) Amounts reclassified from accumulated other comprehensive loss — 1,864 1,864 Net current period other comprehensive (loss) income (13,592 ) 1,864 (11,728 ) Amount reclassified from accumulated other comprehensive loss due to adoption of ASU 2018-02 (See Note 1) — 3,330 3,330 Income tax (benefit) expense (801 ) 460 (341 ) September 29, 2018 $ (90,336 ) $ (69,112 ) $ (159,448 ) 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 immaterial during the three and nine months ended September 29, 2018 and September 30, 2017 . Redeemable Noncontrolling Interest The Company’s redeemable noncontrolling interest in Vital River is 13% . The Company has the right to purchase, and the noncontrolling interest holders have 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 ( $17.3 million as of September 29, 2018 ) 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 unaudited condensed consolidated balance sheets, 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: Nine Months Ended September 29, 2018 September 30, 2017 (in thousands) Beginning balance $ 16,609 $ 14,659 Total gains or losses (realized/unrealized): Net income attributable to noncontrolling interest 543 474 Adjustment to redemption value 1,111 — Foreign currency translation (932 ) 652 Ending balance $ 17,331 $ 15,785 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s effective tax rates for the three months ended September 29, 2018 and September 30, 2017 were 16.9% and 27.3% , respectively. The Company’s effective tax rates for the nine months ended September 29, 2018 and September 30, 2017 were 19.2% and 32.2% , respectively. For the three months ended September 29, 2018 , the decrease in the effective tax rate from the prior year period was primarily attributable to the net benefits of U.S. Tax Reform, as well as a one-time benefit under SAB 118 as discussed in the U.S. Tax Reform section below. For the nine months ended September 29, 2018 , the decrease in the effective tax rate from the prior year period was primarily attributable to the items previously mentioned, as well as the tax rate impact of the $18.0 million gain on the CDMO business divestiture in the first quarter of 2017. For the three months ended September 29, 2018 , the Company’s unrecognized tax benefits increased by $0.3 million to $20.1 million , primarily due to an additional quarter of Canadian Scientific Research and Experimental Development Credit reserves offset with the settlement of prior period positions with tax authorities. For the three months ended September 29, 2018 , the unrecognized income tax benefits that would impact the effective tax rate increased by $0.8 million to $18.8 million , for the same reasons listed above. The accrued interest on unrecognized tax benefits was $2.8 million at September 29, 2018 . The Company estimates that it is reasonably possible that the unrecognized tax benefits will decrease by up to $8.2 million over the next twelve-month period, primarily due to the outcome of pending tax audits and statute of limitation lapses. The Company continues to monitor its accounting for the elements of U.S. Tax Reform enacted in December 2017. The Company made reasonable estimates of the effects of U.S. Tax Reform to its consolidated financial statements in fiscal year 2017 based on guidance and regulations released by the Internal Revenue Service. During the three months ended September 29, 2018, t he Company recorded measurement period adjustments under SAB 118 to the provisional amounts recorded in the fourth quarter of 2017 based on the filing of the Company’s 2017 U.S. federal tax return. The measurement period adjustments included a $1.0 million tax benefit relating to a decreased Transition Tax liability and a $1.8 million tax benefit for additional decreases to the net deferred tax liability relating to the reduction on the U.S. federal statutory tax rate to 21% . The Company anticipates finalizing and recording any adjustments resulting from the release of any additional guidance and interpretations by the end of its fiscal year ending December 29, 2018 . 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, France, Germany, and Canada. With few exceptions, the Company is no longer subject to U.S. and international income tax examinations for years before 2015. The Company and certain of its subsidiaries have ongoing tax controversies with various tax authorities in the U.S., Canada, Germany, France, and India. The Company does not believe that resolution of these controversies will have a material impact on its financial position or results of operations. |
PENSION AND OTHER POST-RETIREME
PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS | 9 Months Ended |
Sep. 29, 2018 | |
Retirement Benefits [Abstract] | |
PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS | PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS The Company retrospectively adopted ASU 2017-07 in fiscal year 2018. Service cost is reflected in Cost of services provided (excluding amortization of intangible assets) and Selling, general and administrative within the unaudited condensed consolidated statements of income. All other components of net periodic cost are recorded in Other income, net within the unaudited condensed consolidated statements of income. See Note 1, “Basis of Presentation.” 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 Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) Service cost $ 814 $ 749 $ 2,629 $ 2,277 Interest cost 2,752 2,663 8,241 8,428 Expected return on plan assets (3,801 ) (3,476 ) (11,690 ) (10,411 ) Amortization of prior service credit (135 ) (134 ) (406 ) (392 ) Amortization of net loss 736 1,017 2,267 3,030 Net periodic cost $ 366 $ 819 $ 1,041 $ 2,932 The net periodic cost for the Company’s other post-retirement benefit plan for the three and nine months ended September 29, 2018 and September 30, 2017 was not significant. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 29, 2018 | |
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 Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) Cost of revenue $ 1,596 $ 1,700 $ 4,747 $ 4,989 Selling, general and administrative 10,224 9,826 31,161 27,913 Stock-based compensation $ 11,820 $ 11,526 $ 35,908 $ 32,902 During the nine months ended September 29, 2018 , the Company granted stock options representing 0.5 million common shares with a per-share weighted-average grant date fair value of $24.80 , RSUs representing 0.2 million common shares with a per-share weighted-average grant date fair value of $109.15 , and PSUs representing 0.2 million common shares with a per-share weighted-average grant date fair value of $117.28 . The maximum number of common shares to be issued upon vesting of PSUs granted during the nine months ended September 29, 2018 is 0.4 million . |
FOREIGN CURRENCY CONTRACT
FOREIGN CURRENCY CONTRACT | 9 Months Ended |
Sep. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FOREIGN CURRENCY CONTRACT | FOREIGN CURRENCY CONTRACT The Company entered into a foreign exchange forward contract to limit its foreign currency exposure related to intercompany loans that are not of a long-term investment nature. The contract is recorded at fair value in the Company’s unaudited condensed consolidated balance sheets and is not designated as hedging instruments. Any gains or losses on such a contract is immediately recognized in Other income, net, and is largely offset by the remeasurement of the underlying intercompany loan balances. The notional amount and fair value of the Company’s foreign currency forward contract is summarized as follows: Notional Amount Fair Value Balance Sheet Location (in thousands) September 29, 2018 $ 28,665 $ 29 Other Current Asset The effect of the foreign exchange forward contract related to an intercompany loan denominated in British Pounds on the Company’s unaudited condensed consolidated statements of income was immaterial for the three months ended September 29, 2018 . The forward contract outstanding as of September 29, 2018 had a duration of 1 month . The Company had no such contracts during the three months ended September 30, 2017 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 29, 2018 | |
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 nine months ended September 29, 2018 , 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 2032 increased by $55.2 million during the nine months ended September 29, 2018 . |
RESTRUCTURING AND ASSET IMPAIRM
RESTRUCTURING AND ASSET IMPAIRMENT | 9 Months Ended |
Sep. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND ASSET IMPAIRMENT | RESTRUCTURING AND ASSET IMPAIRMENTS Global RMS Restructuring Initiatives In the fourth quarter of fiscal year 2017, the Company committed to a plan to further reduce costs and improve operating efficiencies in its RMS reportable segment. The plan included ceasing production within the Company’s facility in Maryland and reducing its workforce at various global RMS facilities during 2018. On August 1, 2018, the Company’s Board of Directors approved a modification to the plan which repurposes the facility in Maryland to be used for alternative initiatives. The following table presents a summary of severance and transition costs, and asset impairments (referred to as restructuring costs) related to this initiative within the unaudited condensed consolidated statements of income for the three and nine months ended September 29, 2018 . Three Months Ended Nine Months Ended September 29, 2018 Severance and Transition Costs Asset Impairments and Other Costs Total Severance and Transition Costs Asset Impairments and Other Costs Total (in thousands) Cost of services provided and products sold (excluding amortization of intangible assets) $ 95 $ 238 $ 333 $ 650 $ 822 $ 1,472 Selling, general and administrative (30 ) — (30 ) 158 — 158 Total $ 65 $ 238 $ 303 $ 808 $ 822 $ 1,630 Restructuring costs incurred during the fourth quarter of 2017 were $18.1 million , which primarily related to non-cash asset impairments and accelerated depreciation charges of $17.7 million . The costs incurred during the three and nine months ended September 29, 2018 were $0.3 million and $1.6 million , respectively. The remaining restructuring costs related to this initiative in 2018 are not expected to exceed $1.0 million , all of which relate to employee separation costs and other transition costs. All of the costs are recorded in the RMS reportable segment. The cash portion of the total costs are not expected to exceed $2.5 million . Other Restructuring Initiatives In recent fiscal years, the Company has undertaken productivity improvement initiatives within all reportable segments at various locations across the U.S., Europe, and Japan. This includes workforce right-sizing and scalability initiatives, resulting in severance and transition costs; and cost related to the consolidation of facilities, resulting in asset impairment and accelerated depreciation charges. The Company’s existing lease obligations for certain facilities continue through various dates, the latest being March 2028. The following table presents a summary of restructuring costs related to these initiatives within the unaudited condensed consolidated statements of income for the three and nine months ended September 29, 2018 and September 30, 2017 . Three Months Ended September 29, 2018 September 30, 2017 Severance and Transition Costs Asset Impairments and Other Costs Total Severance and Transition Costs Asset Impairments and Other Costs Total (in thousands) Cost of services provided and products sold (excluding amortization of intangible assets) $ 30 $ 5 $ 35 $ 189 $ 276 $ 465 Selling, general and administrative 4,619 21 4,640 447 — 447 Total $ 4,649 $ 26 $ 4,675 $ 636 $ 276 $ 912 Nine Months Ended September 29, 2018 September 30, 2017 Severance and Transition Costs Asset Impairments and Other Costs Total Severance and Transition Costs Asset Impairments and Other Costs Total (in thousands) Cost of services provided and products sold (excluding amortization of intangible assets) $ 767 $ 27 $ 794 $ 1,188 $ 485 $ 1,673 Selling, general and administrative 6,354 21 6,375 788 — 788 Total $ 7,121 $ 48 $ 7,169 $ 1,976 $ 485 $ 2,461 The following table presents restructuring costs by reportable segment for these productivity improvement initiatives: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) DSA $ 56 $ 360 $ 1,021 $ 841 Manufacturing — 552 870 1,620 Unallocated corporate 4,619 — 5,278 — Total $ 4,675 $ 912 $ 7,169 $ 2,461 The following table provides a rollforward for all of the Company’s severance and transition costs, and lease obligation liabilities related to all restructuring activities: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) Beginning balance $ 6,810 $ 7,010 $ 6,856 $ 8,102 Expense 4,714 636 7,929 1,976 Payments / utilization (4,407 ) (676 ) (7,544 ) (3,506 ) Foreign currency adjustments (55 ) 200 (179 ) 598 Ending balance $ 7,062 $ 7,170 $ 7,062 $ 7,170 As of September 29, 2018 and September 30, 2017 , $2.6 million and $2.9 million of severance and other personnel related costs liabilities and lease obligation liabilities, respectively, were included in accrued compensation and accrued liabilities within the Company’s unaudited condensed consolidated balance sheets and $4.4 million and $4.3 million , respectively, were included in other long-term liabilities within the Company’s unaudited condensed consolidated balance sheets. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 29, 2018 | |
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 52-weeks, 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. |
Newly Adopted and Issued Accounting Pronouncements | In March 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-05, “Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SAB 118).” This standard amends Accounting Standards Codification 740, Income Taxes (ASC 740) to provide guidance on accounting for the tax effects of U.S. Tax Reform pursuant to SAB 118, which allows companies to complete the accounting under ASC 740 within a one-year measurement period from the enactment date of U.S. Tax Reform. This standard is effective upon issuance and the Company has complied with the amendments. See Note 11, “Income Taxes” for further discussion. In February 2018, the FASB issued ASU 2018-02, “ Income Statement - Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The standard allows for reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects arising from the change in the reduction of the U.S. federal statutory income tax rate to 21% from 35%. The Company elected to early adopt this standard in fiscal year 2018 as permitted on a prospective basis, resulting in a reclassification of $3.3 million from Accumulated other comprehensive income to Retained earnings as a result of remeasuring the Company’s deferred tax liabilities related to its pension and other post-retirement benefit plan gains and losses. The Company’s policy is to release material stranded tax effects on a specific identification basis. 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 Company adopted this standard in fiscal year 2018 and applied the changes retrospectively to the presentation of the service cost component and the other components of net periodic pension cost in the statements of income for all periods presented as required. The adoption of this standard increased Operating income by $0.1 million and $0.7 million during the three and nine months ended September 30, 2017, respectively. In connection with the impact of Operating income to the Company’s reportable segments for the three months ended September 30, 2017, Research Models and Services (RMS) decreased by $0.1 million , Discovery and Safety Assessment (DSA) decreased by $0.3 million , Manufacturing Support (Manufacturing) decreased by less than $0.1 million , and Unallocated corporate increased by $0.4 million . For the nine months ended September 30, 2017, Operating income for RMS decreased by $0.1 million , DSA decreased by $1.0 million , Manufacturing decreased by less than $0.1 million , and Unallocated corporate increased by $1.7 million . 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. The Company’s adoption of this standard in fiscal year 2018 did not have a significant impact on the 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. The Company’s adoption of this standard in fiscal year 2018 did not have a significant impact on the consolidated financial statements and related disclosures. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Liabilities.” This standard, including a subsequently issued amendment under ASU 2018-03, “ Technical Corrections and Improvements to Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities” , requires equity investments that are not accounted for under the equity method of accounting to be measured at fair value with changes recognized in net income, simplifies the impairment assessment of certain equity investments, and updates certain presentation and disclosure requirements. The Company adopted this standard in fiscal year 2018, resulting in an increase of $1.9 million to Other assets with a corresponding increase to Retained earnings and Deferred taxes of $1.4 million and $0.5 million , respectively. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” The standard, including subsequently issued amendments, replaced most existing revenue recognition guidance in U.S. GAAP and permits the use of either a modified retrospective or cumulative effect transition method. The Company elected the modified retrospective transition method. The standard requires 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 Company adopted this standard in fiscal year 2018 . See Note 3, “Revenue From Contracts With Customers” for a discussion of the Company’s adoption of this standard and its impact on the consolidated financial statements and related disclosures. Newly Issued Accounting Pronouncements In August 2018, the FASB issued ASU 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computer Arrangement that is a Service Contract.” ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years and will be applied either retrospectively or prospectively. Early adoption is permitted. The Company is still evaluating the impact this standard will have on its consolidated financial statements and related disclosures . In August 2018, the FASB issued ASU 2018-14, “Compensation Retirement Benefits - Defined Benefit Plans -General (Subtopic 715-20).” ASU 2018-14 removes the requirements to disclose the amounts in Accumulated other comprehensive income (loss) expected to be recognized as components of net periodic benefit cost over the next fiscal year and the related party disclosures about the amount of future annual benefits covered by insurance contracts. In addition, the ASU adds the requirement to disclose an explanation for any significant gains and losses related to changes in the benefit obligation for the period. The ASU is effective for fiscal years ending after December 15, 2020 and will be applied on a retrospective basis to all periods presented. Early adoption is permitted. The Company is still evaluating the impact this standard will have on its consolidated financial statements and related disclosures . In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 removes the disclosure requirement for the amount and reasons for transfers between Level 1 and Level 2 fair value measurements as well as the process for Level 3 fair value measurements. In addition, the ASU adds the disclosure requirements for changes in unrealized gains and losses included in Other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period as well as the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years and will be applied on a retrospective basis to all periods presented. Early adoption is permitted. The Company is still evaluating the impact this standard will have on its consolidated financial statements and related disclosures . In June 2018, the FASB issued ASU 2018-07, “Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting.” ASU 2018-07 aligns the accounting for share-based payment awards issued to employees and nonemployees as well as improves financial reporting for share-based payments to nonemployees. The ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years and will be applied to all new option awards granted after the date of adoption. 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 August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities.” ASU 2017-12 refines and expands hedge accounting for both financial and commodity risks. It also creates more transparency around how economic results are presented, both on the face of the financial statements and in the disclosures. In addition, this ASU makes certain targeted improvements to simplify the application of hedge accounting guidance. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, and requires the modified retrospective approach. Early adoption is permitted. This update applies to all existing hedging relationships on the date of adoption with the cumulative effect of adoption being reflected as of the beginning of the fiscal year of adoption. 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 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, including subsequently issued amendments, 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 ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company formed an implementation team during fiscal year 2017 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 lease portfolio. The Company continues to assess the impact on the existing lease accounting policies, newly required financial statement disclosures, and executing on the project plan. Currently, the Company is performing contract reviews, evaluating anticipated changes to systems, business processes, and internal controls to support the adoption of the new standard. 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 as of December 30, 2018 (day one of fiscal year 2019, which is the Company’s adoption date) by recording a right-of-use asset and a corresponding lease liability. The Company will adopt this standard using a modified retrospective transition approach to be applied to leases existing as of or entered into after the adoption date. |
BUSINESS ACQUISITIONS AND DIV_2
BUSINESS ACQUISITIONS AND DIVESTITURE (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Business Combinations [Abstract] | |
Summary of Purchase Price Allocation | The purchase price allocation of $20.1 million , net of $ 0.6 million of cash acquired, was as follows: August 4, 2017 (in thousands) Trade receivables (contractual amount of $1,146) $ 1,146 Other current assets (excluding cash) 640 Property, plant and equipment 664 Other long-term assets 29 Definite-lived intangible assets 9,300 Goodwill 12,582 Current liabilities (1,683 ) Deferred revenue (405 ) Long-term liabilities (2,151 ) Total purchase price allocation $ 20,122 The preliminary purchase allocation of $800.8 million , net of $27.7 million of cash acquired and a final net working capital adjustment of $1.2 million , was as follows: April 3, 2018 (in thousands) Trade receivables (contractual amount of $35,073) $ 35,073 Inventories 4,463 Other current assets (excluding cash) 5,893 Property, plant and equipment 128,403 Goodwill 440,662 Definite-lived intangible assets 309,200 Other long-term assets 1,081 Deferred revenue (22,600 ) Current liabilities (32,885 ) Deferred tax liabilities (66,277 ) Other long-term liabilities (2,213 ) Total purchase price allocation $ 800,800 The preliminary purchase price allocation of $21.5 million , net of $1.0 million of cash acquired and a final net working capital adjustment of $0.4 million , was as follows: January 11, 2018 (in thousands) Trade receivables (contractual amount of $1,309) $ 1,309 Other current assets (excluding cash) 99 Property, plant and equipment 1,136 Definite-lived intangible assets - client relationships 3,647 Goodwill 17,660 Current liabilities (1,575 ) Deferred revenue (151 ) Long-term liabilities (596 ) Total purchase price allocation $ 21,529 |
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 $ 264,900 13 Developed technology 23,400 3 Backlog 20,900 2 Total definite-lived intangible assets $ 309,200 12 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 $ 7,000 13 Other intangible assets 2,300 10 Total definite-lived intangible assets $ 9,300 12 |
Carrying Amounts of Assets and Liabilities to be Disposed Of | The carrying amounts of the major classes of assets and liabilities associated with the divestiture of the CDMO business were as follows: February 10, 2017 Assets (in thousands) 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 |
Schedule of Business Acquisition, Pro Forma Information | For the nine months ended September 30, 2017 , these adjustments included additional amortization of intangible assets and depreciation of fixed assets of $17.3 million , additional interest expense on borrowings of $19.3 million , elimination of intercompany activity and other one-time costs, and the tax impacts of these adjustments. Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) Revenue $ 585,295 $ 523,948 $ 1,726,683 $ 1,555,146 Net income attributable to common shareholders 59,297 48,927 168,872 139,258 Earnings per common share Basic $ 1.23 $ 1.03 $ 3.51 $ 2.93 Diluted $ 1.20 $ 1.01 $ 3.44 $ 2.87 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate the Company’s revenue by major business line and timing of transfer of products or services for the three and nine months ended September 29, 2018 (in thousands): Major Products/Service Lines: Three Months Ended September 29, 2018 Nine Months Ended September 29, 2018 RMS $ 126,811 $ 391,195 DSA 352,257 958,665 Manufacturing 106,227 314,706 Total revenue $ 585,295 $ 1,664,566 Timing of Revenue Recognition: Three Months Ended September 29, 2018 Nine Months Ended September 29, 2018 RMS Services and products transferred over time $ 49,417 $ 146,947 Services and products transferred at a point in time 77,394 244,248 DSA Services and products transferred over time 352,203 958,174 Services and products transferred at a point in time 54 491 Manufacturing Services and products transferred over time 31,420 92,978 Services and products transferred at a point in time 74,807 221,728 Total revenue $ 585,295 $ 1,664,566 Revenue for each significant product or service offering is as follows: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) RMS $ 126,811 $ 122,020 $ 391,195 $ 373,183 DSA 352,257 246,946 958,665 726,796 Manufacturing 106,227 95,266 314,706 279,145 Total revenue $ 585,295 $ 464,232 $ 1,664,566 $ 1,379,124 Revenue by geographic area is as follows: U.S. Europe Canada Asia Pacific Other Consolidated (in thousands) Three Months Ended: September 29, 2018 $ 336,811 $ 159,473 $ 53,665 $ 34,062 $ 1,284 $ 585,295 September 30, 2017 238,226 141,967 51,864 31,953 222 464,232 Nine Months Ended: September 29, 2018 $ 919,807 $ 481,955 $ 153,802 $ 104,817 $ 4,185 $ 1,664,566 September 30, 2017 714,460 418,468 152,293 93,094 809 1,379,124 |
Schedule of Estimated Revenue Related to Performance Obligations | The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially satisfied) as of September 29, 2018 : Revenue Expected to be Recognized in Future Periods Less than 1 Year 1 to 3 Years 4 to 5 Years Beyond 5 Years Total (in thousands) DSA $ 126,336 $ 82,192 $ 3,299 $ 492 $ 212,319 Manufacturing 10,286 20,245 9,013 68 39,612 Total $ 136,622 $ 102,437 $ 12,312 $ 560 $ 251,931 |
Schedule of Client Receivables, Contract Assets and Contract Liabilities | The following table provides information about client receivables, contract assets, and contract liabilities from contracts with customers: September 29, 2018 December 30, 2017 (1) (in thousands) Balances from contracts with customers only: Client receivables $ 376,302 $ 335,839 Contract assets (unbilled revenue) 113,311 96,297 Contract liabilities (current and long-term deferred revenue) 178,331 125,882 Contract liabilities (customer contract deposits) 44,586 — (1) The beginning balance as of December 30, 2017 is presented under the guidance of ASC 605. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
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 Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) RMS Revenue $ 126,811 $ 122,020 $ 391,195 $ 373,183 Operating income 32,121 30,665 104,893 101,949 Depreciation and amortization 4,811 5,272 14,565 15,309 Capital expenditures 8,166 6,762 18,105 13,769 DSA Revenue $ 352,257 $ 246,946 $ 958,665 $ 726,796 Operating income 62,909 46,324 160,391 135,994 Depreciation and amortization 31,433 20,333 83,262 58,667 Capital expenditures 10,800 10,127 34,496 25,552 Manufacturing Revenue $ 106,227 $ 95,266 $ 314,706 $ 279,145 Operating income 33,266 31,920 95,904 87,563 Depreciation and amortization 5,709 5,572 17,313 17,321 Capital expenditures 2,709 2,879 12,731 7,111 |
Reconciliation of Segment Operating Income to Consolidated Operating Income | For the three and nine months ended September 29, 2018 and September 30, 2017 , 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 September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) Three Months Ended: Total reportable segments $ 128,296 $ 108,909 $ 41,953 $ 31,177 $ 21,675 $ 19,768 Unallocated corporate (43,934 ) (34,847 ) 1,639 2,288 764 2,243 Total consolidated $ 84,362 $ 74,062 $ 43,592 $ 33,465 $ 22,439 $ 22,011 Nine Months Ended: Total reportable segments $ 361,188 $ 325,506 $ 115,140 $ 91,297 $ 65,332 $ 46,432 Unallocated corporate (132,287 ) (100,052 ) 5,058 6,378 6,046 7,496 Total consolidated $ 228,901 $ 225,454 $ 120,198 $ 97,675 $ 71,378 $ 53,928 |
Revenue Disaggregated by Products and Services and Geographic Area | The following tables disaggregate the Company’s revenue by major business line and timing of transfer of products or services for the three and nine months ended September 29, 2018 (in thousands): Major Products/Service Lines: Three Months Ended September 29, 2018 Nine Months Ended September 29, 2018 RMS $ 126,811 $ 391,195 DSA 352,257 958,665 Manufacturing 106,227 314,706 Total revenue $ 585,295 $ 1,664,566 Timing of Revenue Recognition: Three Months Ended September 29, 2018 Nine Months Ended September 29, 2018 RMS Services and products transferred over time $ 49,417 $ 146,947 Services and products transferred at a point in time 77,394 244,248 DSA Services and products transferred over time 352,203 958,174 Services and products transferred at a point in time 54 491 Manufacturing Services and products transferred over time 31,420 92,978 Services and products transferred at a point in time 74,807 221,728 Total revenue $ 585,295 $ 1,664,566 Revenue for each significant product or service offering is as follows: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) RMS $ 126,811 $ 122,020 $ 391,195 $ 373,183 DSA 352,257 246,946 958,665 726,796 Manufacturing 106,227 95,266 314,706 279,145 Total revenue $ 585,295 $ 464,232 $ 1,664,566 $ 1,379,124 Revenue by geographic area is as follows: U.S. Europe Canada Asia Pacific Other Consolidated (in thousands) Three Months Ended: September 29, 2018 $ 336,811 $ 159,473 $ 53,665 $ 34,062 $ 1,284 $ 585,295 September 30, 2017 238,226 141,967 51,864 31,953 222 464,232 Nine Months Ended: September 29, 2018 $ 919,807 $ 481,955 $ 153,802 $ 104,817 $ 4,185 $ 1,664,566 September 30, 2017 714,460 418,468 152,293 93,094 809 1,379,124 |
Summary of Unallocated Corporate Overhead | A summary of unallocated corporate expense consists of the following : Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) Stock-based compensation $ 7,910 $ 7,255 $ 24,517 $ 20,259 Compensation, benefits, and other employee-related expenses 20,464 11,337 56,375 36,083 External consulting and other service expenses 4,767 6,729 12,711 16,581 Information technology 3,070 3,237 8,723 9,247 Depreciation 1,639 2,288 5,058 6,378 Acquisition and integration 1,122 1,327 15,678 2,539 Other general unallocated corporate 4,962 2,674 9,225 8,965 Total unallocated corporate expense $ 43,934 $ 34,847 $ 132,287 $ 100,052 |
SUPPLEMENTAL BALANCE SHEET IN_2
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Supplemental Balance Sheet Information [Abstract] | |
Composition of Net Trade Receivables | The composition of trade receivables, net is as follows: September 29, 2018 December 30, 2017 (in thousands) Client receivables $ 376,302 $ 335,839 Unbilled revenue 113,311 96,297 Total 489,613 432,136 Less: Allowance for doubtful accounts (2,274 ) (2,120 ) Trade receivables, net $ 487,339 $ 430,016 |
Composition of Inventories | The composition of inventories is as follows: September 29, 2018 December 30, 2017 (in thousands) Raw materials and supplies $ 20,798 $ 19,858 Work in process 20,231 18,200 Finished products 84,471 76,898 Inventories $ 125,500 $ 114,956 |
Composition of Other Current Assets | The composition of other current assets is as follows: September 29, 2018 December 30, 2017 (in thousands) Investments $ 5,238 $ 28,489 Prepaid income taxes 36,733 52,234 Restricted cash 426 592 Other 300 — Other current assets $ 42,697 $ 81,315 |
Composition of Other Assets | The composition of other assets is as follows: September 29, 2018 December 30, 2017 (in thousands) Life insurance policies $ 35,916 $ 34,008 Venture capital investments 95,837 71,101 Restricted cash 2,584 1,945 Other 20,258 16,948 Other assets $ 154,595 $ 124,002 |
Composition of Other Current Liabilities | The composition of other current liabilities is as follows: September 29, 2018 December 30, 2017 (in thousands) Accrued income taxes $ 21,387 $ 43,250 Customer contract deposits 44,586 — Other 938 1,210 Other current liabilities $ 66,911 $ 44,460 |
Composition of Other Long-Term Liabilities | The composition of other long-term liabilities is as follows: September 29, 2018 December 30, 2017 (in thousands) U.S. Transition Tax $ 52,070 $ 61,038 Long-term pension liability 20,231 52,364 Accrued executive supplemental life insurance retirement plan and deferred compensation plan 38,610 37,582 Long-term deferred revenue 37,571 8,313 Other 36,472 35,518 Other long-term liabilities $ 184,954 $ 194,815 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
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: September 29, 2018 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents $ — $ 18,717 $ — $ 18,717 Other current assets: Foreign currency forward contract 29 29 Other assets: Life insurance policies — 28,193 — 28,193 Total assets measured at fair value $ — $ 46,939 $ — $ 46,939 Other current liabilities: Contingent consideration $ — $ — $ 3,400 $ 3,400 Total liabilities measured at fair value $ — $ — $ 3,400 $ 3,400 December 30, 2017 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents $ — $ 21 $ — $ 21 Other assets: Life insurance policies — 26,358 — 26,358 Total assets measured at fair value $ — $ 26,379 $ — $ 26,379 Other current liabilities: Contingent consideration $ — $ — $ 298 $ 298 Total liabilities measured at fair value $ — $ — $ 298 $ 298 |
Rollforward of Contingent Consideration Related to Previous Acquisitions | The following table provides a rollforward of the contingent consideration related to previous business acquisitions. See Note 2, “Business Acquisitions and Divestiture.” Nine Months Ended September 29, 2018 September 30, 2017 (in thousands) Beginning balance $ 298 $ 3,621 Additions 3,315 296 Payments — (3,606 ) Foreign currency translation (213 ) — Reversal of previously recorded contingent liability — (15 ) Ending balance $ 3,400 $ 296 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Rollforward of Goodwill | The following table provides a rollforward of the Company’s goodwill: Adjustments to Goodwill December 30, 2017 Acquisitions Foreign Exchange September 29, 2018 (in thousands) RMS $ 58,122 $ — $ (1,059 ) $ 57,063 DSA 605,176 459,228 (9,428 ) 1,054,976 Manufacturing 141,608 2,551 (3,498 ) 140,661 Goodwill $ 804,906 $ 461,779 $ (13,985 ) $ 1,252,700 |
Schedule of Intangible Assets | The following table displays intangible assets, net by major class: September 29, 2018 December 30, 2017 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in thousands) Backlog $ 20,900 $ (12,391 ) $ 8,509 $ 8,111 $ (8,111 ) $ — Technology 102,794 (39,271 ) 63,523 81,309 (27,157 ) 54,152 Trademarks and trade names 8,466 (4,619 ) 3,847 8,661 (4,562 ) 4,099 Other 17,532 (9,477 ) 8,055 17,465 (7,845 ) 9,620 Other intangible assets 149,692 (65,758 ) 83,934 115,546 (47,675 ) 67,871 Client relationships 798,574 (252,775 ) 545,799 540,425 (238,534 ) 301,891 Intangible assets $ 948,266 $ (318,533 ) $ 629,733 $ 655,971 $ (286,209 ) $ 369,762 |
LONG-TERM DEBT AND CAPITAL LE_2
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt, net consists of the following: September 29, 2018 December 30, 2017 (in thousands) Term loans $ 740,625 $ 601,250 Revolving facility 411,931 500,997 Senior Notes 500,000 — Other long-term debt 18,091 18,292 Total debt 1,670,647 1,120,539 Less: Current portion of long-term debt (28,229 ) (28,546 ) Long-term debt 1,642,418 1,091,993 Debt discount and debt issuance costs (17,068 ) (5,770 ) Long-term debt, net $ 1,625,350 $ 1,086,223 |
EQUITY AND NONCONTROLLING INT_2
EQUITY AND NONCONTROLLING INTEREST (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
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 Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) Numerator: Income from continuing operations, net of income taxes $ 60,902 $ 52,994 $ 167,020 $ 154,630 Income (loss) from discontinued operations, net of income taxes — (39 ) 1,506 (114 ) Less: Net income attributable to noncontrolling interests 534 481 1,818 1,312 Net income attributable to common shareholders $ 60,368 $ 52,474 $ 166,708 $ 153,204 Denominator: Weighted-average shares outstanding - Basic 48,310 47,451 48,098 47,530 Effect of dilutive securities: Stock options, restricted stock units, performance share units and restricted stock 1,016 939 1,020 910 Weighted-average shares outstanding - Diluted 49,326 48,390 49,118 48,440 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes to each component of accumulated other comprehensive income (loss), net of income taxes, are as follows: Foreign Currency Translation Adjustment and Other Pension and Other Post-Retirement Benefit Plans Total (in thousands) December 30, 2017 $ (77,545 ) $ (67,186 ) $ (144,731 ) Other comprehensive loss before reclassifications (13,592 ) — (13,592 ) Amounts reclassified from accumulated other comprehensive loss — 1,864 1,864 Net current period other comprehensive (loss) income (13,592 ) 1,864 (11,728 ) Amount reclassified from accumulated other comprehensive loss due to adoption of ASU 2018-02 (See Note 1) — 3,330 3,330 Income tax (benefit) expense (801 ) 460 (341 ) September 29, 2018 $ (90,336 ) $ (69,112 ) $ (159,448 ) |
Rollforward Redeemable Noncontrolling Interest | The following table provides a rollforward of the activity related to the Company’s redeemable noncontrolling interest: Nine Months Ended September 29, 2018 September 30, 2017 (in thousands) Beginning balance $ 16,609 $ 14,659 Total gains or losses (realized/unrealized): Net income attributable to noncontrolling interest 543 474 Adjustment to redemption value 1,111 — Foreign currency translation (932 ) 652 Ending balance $ 17,331 $ 15,785 |
PENSION AND OTHER POST-RETIRE_2
PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
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 Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) Service cost $ 814 $ 749 $ 2,629 $ 2,277 Interest cost 2,752 2,663 8,241 8,428 Expected return on plan assets (3,801 ) (3,476 ) (11,690 ) (10,411 ) Amortization of prior service credit (135 ) (134 ) (406 ) (392 ) Amortization of net loss 736 1,017 2,267 3,030 Net periodic cost $ 366 $ 819 $ 1,041 $ 2,932 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
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 Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) Cost of revenue $ 1,596 $ 1,700 $ 4,747 $ 4,989 Selling, general and administrative 10,224 9,826 31,161 27,913 Stock-based compensation $ 11,820 $ 11,526 $ 35,908 $ 32,902 |
FOREIGN CURRENCY CONTRACT (Tabl
FOREIGN CURRENCY CONTRACT (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional and Fair Value of Foreign Currency Contracts | The notional amount and fair value of the Company’s foreign currency forward contract is summarized as follows: Notional Amount Fair Value Balance Sheet Location (in thousands) September 29, 2018 $ 28,665 $ 29 Other Current Asset |
RESTRUCTURING AND ASSET IMPAI_2
RESTRUCTURING AND ASSET IMPAIRMENT (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Costs | The following table presents a summary of restructuring costs related to these initiatives within the unaudited condensed consolidated statements of income for the three and nine months ended September 29, 2018 and September 30, 2017 . Three Months Ended September 29, 2018 September 30, 2017 Severance and Transition Costs Asset Impairments and Other Costs Total Severance and Transition Costs Asset Impairments and Other Costs Total (in thousands) Cost of services provided and products sold (excluding amortization of intangible assets) $ 30 $ 5 $ 35 $ 189 $ 276 $ 465 Selling, general and administrative 4,619 21 4,640 447 — 447 Total $ 4,649 $ 26 $ 4,675 $ 636 $ 276 $ 912 Nine Months Ended September 29, 2018 September 30, 2017 Severance and Transition Costs Asset Impairments and Other Costs Total Severance and Transition Costs Asset Impairments and Other Costs Total (in thousands) Cost of services provided and products sold (excluding amortization of intangible assets) $ 767 $ 27 $ 794 $ 1,188 $ 485 $ 1,673 Selling, general and administrative 6,354 21 6,375 788 — 788 Total $ 7,121 $ 48 $ 7,169 $ 1,976 $ 485 $ 2,461 The following table presents restructuring costs by reportable segment for these productivity improvement initiatives: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) DSA $ 56 $ 360 $ 1,021 $ 841 Manufacturing — 552 870 1,620 Unallocated corporate 4,619 — 5,278 — Total $ 4,675 $ 912 $ 7,169 $ 2,461 The following table presents a summary of severance and transition costs, and asset impairments (referred to as restructuring costs) related to this initiative within the unaudited condensed consolidated statements of income for the three and nine months ended September 29, 2018 . Three Months Ended Nine Months Ended September 29, 2018 Severance and Transition Costs Asset Impairments and Other Costs Total Severance and Transition Costs Asset Impairments and Other Costs Total (in thousands) Cost of services provided and products sold (excluding amortization of intangible assets) $ 95 $ 238 $ 333 $ 650 $ 822 $ 1,472 Selling, general and administrative (30 ) — (30 ) 158 — 158 Total $ 65 $ 238 $ 303 $ 808 $ 822 $ 1,630 |
Rollforward of Company's Severance and Transition Costs and Lease Obligation Liabilities | The following table provides a rollforward for all of the Company’s severance and transition costs, and lease obligation liabilities related to all restructuring activities: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (in thousands) Beginning balance $ 6,810 $ 7,010 $ 6,856 $ 8,102 Expense 4,714 636 7,929 1,976 Payments / utilization (4,407 ) (676 ) (7,544 ) (3,506 ) Foreign currency adjustments (55 ) 200 (179 ) 598 Ending balance $ 7,062 $ 7,170 $ 7,062 $ 7,170 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Dec. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Amount reclassified from accumulated other comprehensive loss to retained earnings | $ 3,330 | ||||
Adjustments to operating income related to adoption of new accounting guidance | $ 84,362 | $ 74,062 | 228,901 | $ 225,454 | |
Adjustments to other assets as a result of adoption of new accounting guidance | 154,595 | 154,595 | $ 124,002 | ||
Adjustment to retained earnings as a result of newly adopted accounting guidance | 460,120 | 460,120 | 288,658 | ||
Adjustment to deferred tax assets as a result of newly adopted accounting guidance | 24,562 | 24,562 | $ 22,654 | ||
Accounting Standards Update 2017-07 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adjustments to operating income related to adoption of new accounting guidance | 100 | 700 | |||
Accounting Standards Update 2016-01 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adjustments to other assets as a result of adoption of new accounting guidance | 1,900 | 1,900 | |||
Adjustment to retained earnings as a result of newly adopted accounting guidance | 1,400 | 1,400 | |||
Adjustment to deferred tax assets as a result of newly adopted accounting guidance | 500 | 500 | |||
RMS | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adjustments to operating income related to adoption of new accounting guidance | 32,121 | 30,665 | 104,893 | 101,949 | |
RMS | Accounting Standards Update 2017-07 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adjustments to operating income related to adoption of new accounting guidance | (100) | (100) | |||
DSA | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adjustments to operating income related to adoption of new accounting guidance | 62,909 | 46,324 | 160,391 | 135,994 | |
DSA | Accounting Standards Update 2017-07 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adjustments to operating income related to adoption of new accounting guidance | (300) | (1,000) | |||
Manufacturing | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adjustments to operating income related to adoption of new accounting guidance | 33,266 | 31,920 | 95,904 | 87,563 | |
Manufacturing | Accounting Standards Update 2017-07 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adjustments to operating income related to adoption of new accounting guidance | (100) | (100) | |||
Unallocated corporate | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adjustments to operating income related to adoption of new accounting guidance | $ (43,934) | (34,847) | $ (132,287) | (100,052) | |
Unallocated corporate | Accounting Standards Update 2017-07 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adjustments to operating income related to adoption of new accounting guidance | $ 400 | $ 1,700 |
BUSINESS ACQUISITIONS AND DIV_3
BUSINESS ACQUISITIONS AND DIVESTITURE - MPI Research Narrative (Details) - USD ($) | Apr. 03, 2018 | Sep. 29, 2018 | Sep. 29, 2018 | Sep. 30, 2017 | Mar. 26, 2018 |
Credit facility | $2.3 Billion Credit Facility | |||||
Business Acquisition [Line Items] | |||||
Credit facility | $ 2,300,000,000 | ||||
MPI Research | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 829,700,000 | ||||
Purchase price allocation | 800,800,000 | ||||
Cash acquired | 27,700,000 | ||||
Adjustments related to prior period | 1,200,000 | ||||
Goodwill, amount expected to be deductible for tax purposes | $ 4,100,000 | ||||
Integration related costs and transaction costs | $ 800,000 | $ 15,300,000 | |||
Pro forma revenue since acquisition date | 70,200,000 | 136,800,000 | |||
Pro forma operating income since acquisition date | $ 12,200,000 | 20,400,000 | |||
Depreciation and Amortization Expense | MPI Research | |||||
Business Acquisition [Line Items] | |||||
Adjustments related to prior period | 11,800,000 | $ 17,300,000 | |||
Interest Expense | MPI Research | |||||
Business Acquisition [Line Items] | |||||
Adjustments related to prior period | $ 2,800,000 | $ 19,300,000 |
BUSINESS ACQUISITIONS AND DIV_4
BUSINESS ACQUISITIONS AND DIVESTITURE - MPI Research Purchase Price Allocation (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Apr. 03, 2018 | Dec. 30, 2017 |
Business Acquisition [Line Items] | |||
Trade receivables, contractual amount | $ 35,073 | ||
Goodwill | $ 1,252,700 | $ 804,906 | |
MPI Research | |||
Business Acquisition [Line Items] | |||
Trade receivables | 35,073 | ||
Inventories | 4,463 | ||
Other current assets (excluding cash) | 5,893 | ||
Property, plant and equipment | 128,403 | ||
Goodwill | 440,662 | ||
Definite-lived intangible assets | 309,200 | ||
Other long-term assets | 1,081 | ||
Deferred revenue | (22,600) | ||
Current liabilities | (32,885) | ||
Deferred tax liabilities | (66,277) | ||
Other long-term liabilities | (2,213) | ||
Total purchase price allocation | $ 800,800 |
BUSINESS ACQUISITIONS AND DIV_5
BUSINESS ACQUISITIONS AND DIVESTITURE - MPI Research Definite-Lived Intangible Assets (Details) - MPI Research $ in Thousands | Apr. 03, 2018USD ($) |
Business Acquisition [Line Items] | |
Definite-Lived Intangible Assets | $ 309,200 |
Weighted Average Amortization Life | 12 years |
Client relationships | |
Business Acquisition [Line Items] | |
Definite-Lived Intangible Assets | $ 264,900 |
Weighted Average Amortization Life | 13 years |
Developed technology | |
Business Acquisition [Line Items] | |
Definite-Lived Intangible Assets | $ 23,400 |
Weighted Average Amortization Life | 3 years |
Backlog | |
Business Acquisition [Line Items] | |
Definite-Lived Intangible Assets | $ 20,900 |
Weighted Average Amortization Life | 2 years |
BUSINESS ACQUISITIONS AND DIV_6
BUSINESS ACQUISITIONS AND DIVESTITURE - MPI Research Pro Forma Information (Details) - MPI Research - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Business Acquisition [Line Items] | ||||
Revenue | $ 585,295 | $ 523,948 | $ 1,726,683 | $ 1,555,146 |
Net income attributable to common shareholders | $ 59,297 | $ 48,927 | $ 168,872 | $ 139,258 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 1.23 | $ 1.03 | $ 3.51 | $ 2.93 |
Diluted (in dollars per share) | $ 1.20 | $ 1.01 | $ 3.44 | $ 2.87 |
BUSINESS ACQUISITIONS AND DIV_7
BUSINESS ACQUISITIONS AND DIVESTITURE - KWS BioTest Limited Narrative (Details) - KWS BioTest Limited $ in Thousands, £ in Millions | Jan. 11, 2018USD ($) | Sep. 29, 2018USD ($) | Sep. 29, 2018USD ($) | Sep. 29, 2018GBP (£) | Jan. 11, 2018GBP (£) |
Business Acquisition [Line Items] | |||||
Purchase price | $ 20,300 | ||||
Undiscounted contingent payments | 3,900 | $ 2,600 | $ 2,600 | £ 2 | £ 3 |
Purchase price allocation | 21,529 | ||||
Cash acquired | 1,000 | ||||
Adjustments related to prior period | $ 400 | ||||
Integration related costs and transaction costs | $ 100 | $ 600 | |||
Client relationships | |||||
Business Acquisition [Line Items] | |||||
Weighted average amortization life of intangible assets acquired | 12 years |
BUSINESS ACQUISITIONS AND DIV_8
BUSINESS ACQUISITIONS AND DIVESTITURE - KWS BioTest Limited Purchase Price Allocation (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Apr. 03, 2018 | Jan. 11, 2018 | Dec. 30, 2017 |
Business Acquisition [Line Items] | ||||
Trade receivables, contractual amount | $ 35,073 | |||
Goodwill | $ 1,252,700 | $ 804,906 | ||
KWS BioTest Limited | ||||
Business Acquisition [Line Items] | ||||
Trade receivables, contractual amount | $ 1,309 | |||
Trade receivables | 1,309 | |||
Other current assets (excluding cash) | 99 | |||
Property, plant and equipment | 1,136 | |||
Definite-lived intangible assets - client relationships | 3,647 | |||
Goodwill | 17,660 | |||
Current liabilities | (1,575) | |||
Deferred revenue | (151) | |||
Other long-term liabilities | (596) | |||
Total purchase price allocation | $ 21,529 |
BUSINESS ACQUISITIONS AND DIV_9
BUSINESS ACQUISITIONS AND DIVESTITURE - Brains On-Line Narrative (Details) - Brains On-Line $ in Thousands, € in Millions | Aug. 04, 2017USD ($) | Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | Aug. 04, 2017EUR (€) | Aug. 04, 2017USD ($) |
Business Acquisition [Line Items] | |||||||
Purchase price | $ 21,300 | ||||||
Undiscounted contingent payments | € 6.7 | $ 7,800 | |||||
Purchase price allocation | $ 20,122 | ||||||
Cash acquired | $ 600 | ||||||
Integration related costs and transaction costs | $ 0 | $ 1,200 | $ 0 | $ 2,100 |
BUSINESS ACQUISITIONS AND DI_10
BUSINESS ACQUISITIONS AND DIVESTITURE - Brains On-Line Purchase Price Allocation (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Apr. 03, 2018 | Dec. 30, 2017 | Aug. 04, 2017 |
Business Acquisition [Line Items] | ||||
Trade receivables, contractual amount | $ 35,073 | |||
Goodwill | $ 1,252,700 | $ 804,906 | ||
Brains On-Line | ||||
Business Acquisition [Line Items] | ||||
Trade receivables, contractual amount | $ 1,146 | |||
Trade receivables | 1,146 | |||
Other current assets (excluding cash) | 640 | |||
Property, plant and equipment | 664 | |||
Other long-term assets | 29 | |||
Definite-lived intangible assets | 9,300 | |||
Goodwill | 12,582 | |||
Current liabilities | (1,683) | |||
Deferred revenue | (405) | |||
Other long-term liabilities | (2,151) | |||
Total purchase price allocation | $ 20,122 |
BUSINESS ACQUISITIONS AND DI_11
BUSINESS ACQUISITIONS AND DIVESTITURE - Brains On-Line Definite-Lived Intangible Assets (Details) - Brains On-Line $ in Thousands | Aug. 04, 2017USD ($) |
Business Acquisition [Line Items] | |
Definite-Lived Intangible Assets | $ 9,300 |
Weighted Average Amortization Life | 12 years |
Client relationships | |
Business Acquisition [Line Items] | |
Definite-Lived Intangible Assets | $ 7,000 |
Weighted Average Amortization Life | 13 years |
Other intangible assets | |
Business Acquisition [Line Items] | |
Definite-Lived Intangible Assets | $ 2,300 |
Weighted Average Amortization Life | 10 years |
BUSINESS ACQUISITIONS AND DI_12
BUSINESS ACQUISITIONS AND DIVESTITURE - Contract Manufacturing Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Feb. 10, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on divestiture | $ 0 | $ 10,577 | ||
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 DI_13
BUSINESS ACQUISITIONS AND DIVESTITURE - Contract Manufacturing, Schedule of Assets and Liabilities Disposed (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 | Feb. 10, 2017 |
Liabilities | |||
Deferred revenue | $ 1,815 | ||
Other current liabilities | $ 0 | $ 3,942 | |
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 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation of Revenues by Major Business Line (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 585,295 | $ 464,232 | $ 1,664,566 | $ 1,379,124 |
RMS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 126,811 | 122,020 | 391,195 | 373,183 |
DSA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 352,257 | 246,946 | 958,665 | 726,796 |
Manufacturing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 106,227 | $ 95,266 | 314,706 | $ 279,145 |
Services and products transferred over time | RMS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 49,417 | 146,947 | ||
Services and products transferred over time | DSA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 352,203 | 958,174 | ||
Services and products transferred over time | Manufacturing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 31,420 | 92,978 | ||
Services and products transferred at a point in time | RMS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 77,394 | 244,248 | ||
Services and products transferred at a point in time | DSA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 54 | 491 | ||
Services and products transferred at a point in time | Manufacturing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 74,807 | $ 221,728 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Estimated Revenue Related to Performance Obligations (Details) $ in Thousands | Sep. 29, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-09-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 136,622 |
Performance obligations expected to be satisfied, expected timing | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 102,437 |
Performance obligations expected to be satisfied, expected timing | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 12,312 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 560 |
Performance obligations expected to be satisfied, expected timing | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 251,931 |
DSA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-09-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 126,336 |
DSA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 82,192 |
DSA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 3,299 |
DSA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 492 |
DSA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 212,319 |
Manufacturing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-09-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 10,286 |
Manufacturing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 20,245 |
Manufacturing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 9,013 |
Manufacturing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 68 |
Manufacturing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 39,612 |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018 | Dec. 30, 2017 | |
Revenue from Contract with Customer [Abstract] | ||
Payment terms | 30 days | |
Unpaid advanced client billings | $ 16,000 | |
Contract liabilities (customer contract deposits) | 44,586 | $ 0 |
Revenue billed during period | 88,000 | |
Revenue recognized during period related to contract liabilities | $ 110,000 |
REVENUE FROM CONTRACTS WITH C_6
REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Client Receivables, Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Client receivables | $ 376,302 | $ 335,839 |
Contract assets (unbilled revenue) | 113,311 | 96,297 |
Contract liabilities (current and long-term deferred revenue) | 178,331 | |
Contract liabilities (customer contract deposits) | $ 44,586 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Client receivables | 335,839 | |
Contract assets (unbilled revenue) | 96,297 | |
Contract liabilities (current and long-term deferred revenue) | 125,882 | |
Contract liabilities (customer contract deposits) | $ 0 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 9 Months Ended |
Sep. 29, 2018segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
SEGMENT INFORMATION - Revenue a
SEGMENT INFORMATION - Revenue and Other Financial Information by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 585,295 | $ 464,232 | $ 1,664,566 | $ 1,379,124 |
Operating income | 84,362 | 74,062 | 228,901 | 225,454 |
Depreciation and amortization | 43,592 | 33,465 | 120,198 | 97,675 |
Capital expenditures | 22,439 | 22,011 | 71,378 | 53,928 |
RMS | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 126,811 | 122,020 | 391,195 | 373,183 |
Operating income | 32,121 | 30,665 | 104,893 | 101,949 |
Depreciation and amortization | 4,811 | 5,272 | 14,565 | 15,309 |
Capital expenditures | 8,166 | 6,762 | 18,105 | 13,769 |
DSA | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 352,257 | 246,946 | 958,665 | 726,796 |
Operating income | 62,909 | 46,324 | 160,391 | 135,994 |
Depreciation and amortization | 31,433 | 20,333 | 83,262 | 58,667 |
Capital expenditures | 10,800 | 10,127 | 34,496 | 25,552 |
Manufacturing | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 106,227 | 95,266 | 314,706 | 279,145 |
Operating income | 33,266 | 31,920 | 95,904 | 87,563 |
Depreciation and amortization | 5,709 | 5,572 | 17,313 | 17,321 |
Capital expenditures | $ 2,709 | $ 2,879 | $ 12,731 | $ 7,111 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Segment Operating Income, Depreciation and Amortization, and Capital Expenditures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Operating income | $ 84,362 | $ 74,062 | $ 228,901 | $ 225,454 |
Depreciation and amortization | 43,592 | 33,465 | 120,198 | 97,675 |
Capital expenditures | 22,439 | 22,011 | 71,378 | 53,928 |
Total reportable segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 128,296 | 108,909 | 361,188 | 325,506 |
Depreciation and amortization | 41,953 | 31,177 | 115,140 | 91,297 |
Capital expenditures | 21,675 | 19,768 | 65,332 | 46,432 |
Unallocated corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | (43,934) | (34,847) | (132,287) | (100,052) |
Depreciation and amortization | 1,639 | 2,288 | 5,058 | 6,378 |
Capital expenditures | $ 764 | $ 2,243 | $ 6,046 | $ 7,496 |
SEGMENT INFORMATION - Revenue P
SEGMENT INFORMATION - Revenue Per Significant Product or Service (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 585,295 | $ 464,232 | $ 1,664,566 | $ 1,379,124 |
RMS | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 126,811 | 122,020 | 391,195 | 373,183 |
DSA | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 352,257 | 246,946 | 958,665 | 726,796 |
Manufacturing | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 106,227 | $ 95,266 | $ 314,706 | $ 279,145 |
SEGMENT INFORMATION - Summary o
SEGMENT INFORMATION - Summary of Unallocated Corporate Overhead (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Stock-based compensation | $ 11,820 | $ 11,526 | $ 35,908 | $ 32,902 |
Unallocated corporate | ||||
Segment Reporting Information [Line Items] | ||||
Stock-based compensation | 7,910 | 7,255 | 24,517 | 20,259 |
Compensation, benefits, and other employee-related expenses | 20,464 | 11,337 | 56,375 | 36,083 |
External consulting and other service expenses | 4,767 | 6,729 | 12,711 | 16,581 |
Information technology | 3,070 | 3,237 | 8,723 | 9,247 |
Depreciation | 1,639 | 2,288 | 5,058 | 6,378 |
Acquisition and integration | 1,122 | 1,327 | 15,678 | 2,539 |
Other general unallocated corporate | 4,962 | 2,674 | 9,225 | 8,965 |
Total unallocated corporate expense | $ 43,934 | $ 34,847 | $ 132,287 | $ 100,052 |
SEGMENT INFORMATION - Disaggreg
SEGMENT INFORMATION - Disaggregation of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | $ 585,295 | $ 464,232 | $ 1,664,566 | $ 1,379,124 |
U.S. | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 336,811 | 238,226 | 919,807 | 714,460 |
Europe | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 159,473 | 141,967 | 481,955 | 418,468 |
Canada | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 53,665 | 51,864 | 153,802 | 152,293 |
Asia Pacific | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 34,062 | 31,953 | 104,817 | 93,094 |
Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | $ 1,284 | $ 222 | $ 4,185 | $ 809 |
SUPPLEMENTAL BALANCE SHEET IN_3
SUPPLEMENTAL BALANCE SHEET INFORMATION (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 | Sep. 30, 2017 |
Composition of trade receivables | |||
Client receivables | $ 376,302 | $ 335,839 | |
Contract assets (unbilled revenue) | 113,311 | 96,297 | |
Total | 489,613 | 432,136 | |
Less: Allowance for doubtful accounts | (2,274) | (2,120) | |
Trade receivables, net | 487,339 | 430,016 | |
Composition of inventories | |||
Raw materials and supplies | 20,798 | 19,858 | |
Work in process | 20,231 | 18,200 | |
Finished products | 84,471 | 76,898 | |
Inventories | 125,500 | 114,956 | |
Composition of other current assets | |||
Investments | 5,238 | 28,489 | |
Prepaid income taxes | 36,733 | 52,234 | |
Restricted cash | 426 | 592 | $ 591 |
Other | 300 | 0 | |
Other current assets | 42,697 | 81,315 | |
Composition of other assets | |||
Life insurance policies | 35,916 | 34,008 | |
Venture capital investments | 95,837 | 71,101 | |
Restricted cash | 2,584 | 1,945 | $ 1,944 |
Other | 20,258 | 16,948 | |
Other assets | 154,595 | 124,002 | |
Composition of other current liabilities | |||
Accrued income taxes | 21,387 | 43,250 | |
Customer contract deposits | 44,586 | 0 | |
Other | 938 | 1,210 | |
Other current liabilities | 66,911 | 44,460 | |
Composition of other long-term liabilities | |||
U.S. Transition Tax | 52,070 | 61,038 | |
Long-term pension liability | 20,231 | 52,364 | |
Accrued executive supplemental life insurance retirement plan and deferred compensation plan | 38,610 | 37,582 | |
Long-term deferred revenue | 37,571 | 8,313 | |
Other | 36,472 | 35,518 | |
Other long-term liabilities | $ 184,954 | $ 194,815 |
VENTURE CAPITAL INVESTMENTS - N
VENTURE CAPITAL INVESTMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||
Committed contribution | $ 114.9 | $ 114.9 | ||
Venture capital investments | 65.3 | 65.3 | ||
Dividends received | 5.6 | $ 3.3 | 14.1 | $ 7.7 |
Gain (loss) from venture capital investments | $ 5.4 | $ 5.6 | $ 22.8 | $ 12.3 |
Minimum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 1.00% | 1.00% | ||
Maximum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 12.00% | 12.00% |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) | Apr. 03, 2018 |
Senior Notes | Senior Notes Due 2026 | |
Debt Instrument [Line Items] | |
Stated interest rate | 5.50% |
FAIR VALUE - Fair Value of Asse
FAIR VALUE - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 18,717 | $ 21 |
Other current assets: | ||
Foreign currency forward contract | 29 | |
Other assets: | ||
Life insurance policies | 28,193 | 26,358 |
Total assets measured at fair value | 46,939 | 26,379 |
Other current liabilities: | ||
Contingent consideration | 3,400 | 298 |
Total liabilities measured at fair value | 3,400 | 298 |
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 | 18,717 | 21 |
Other current assets: | ||
Foreign currency forward contract | 29 | |
Other assets: | ||
Life insurance policies | 28,193 | 26,358 |
Total assets measured at fair value | 46,939 | 26,379 |
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 | 3,400 | 298 |
Total liabilities measured at fair value | $ 3,400 | $ 298 |
FAIR VALUE - Contingent Conside
FAIR VALUE - Contingent Consideration (Details) - Contingent Consideration - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 298 | $ 3,621 |
Additions | 3,315 | 296 |
Payments | 0 | (3,606) |
Foreign currency translation | (213) | 0 |
Reversal of previously recorded contingent liability | 0 | (15) |
Ending balance | $ 3,400 | $ 296 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Rollforward of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 29, 2018USD ($) | |
Changes in gross carrying amount and accumulated amortization of goodwill | |
December 30, 2017 | $ 804,906 |
Acquisitions | 461,779 |
Foreign Exchange | (13,985) |
September 29, 2018 | 1,252,700 |
RMS | |
Changes in gross carrying amount and accumulated amortization of goodwill | |
December 30, 2017 | 58,122 |
Acquisitions | 0 |
Foreign Exchange | (1,059) |
September 29, 2018 | 57,063 |
DSA | |
Changes in gross carrying amount and accumulated amortization of goodwill | |
December 30, 2017 | 605,176 |
Acquisitions | 459,228 |
Foreign Exchange | (9,428) |
September 29, 2018 | 1,054,976 |
Manufacturing | |
Changes in gross carrying amount and accumulated amortization of goodwill | |
December 30, 2017 | 141,608 |
Acquisitions | 2,551 |
Foreign Exchange | (3,498) |
September 29, 2018 | $ 140,661 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Other intangible assets | ||
Gross | $ 948,266 | $ 655,971 |
Accumulated Amortization | (318,533) | (286,209) |
Net | 629,733 | 369,762 |
Backlog | ||
Other intangible assets | ||
Gross | 20,900 | 8,111 |
Accumulated Amortization | (12,391) | (8,111) |
Net | 8,509 | 0 |
Technology | ||
Other intangible assets | ||
Gross | 102,794 | 81,309 |
Accumulated Amortization | (39,271) | (27,157) |
Net | 63,523 | 54,152 |
Trademarks and trade names | ||
Other intangible assets | ||
Gross | 8,466 | 8,661 |
Accumulated Amortization | (4,619) | (4,562) |
Net | 3,847 | 4,099 |
Other | ||
Other intangible assets | ||
Gross | 17,532 | 17,465 |
Accumulated Amortization | (9,477) | (7,845) |
Net | 8,055 | 9,620 |
Other intangible assets | ||
Other intangible assets | ||
Gross | 149,692 | 115,546 |
Accumulated Amortization | (65,758) | (47,675) |
Net | 83,934 | 67,871 |
Client relationships | ||
Other intangible assets | ||
Gross | 798,574 | 540,425 |
Accumulated Amortization | (252,775) | (238,534) |
Net | $ 545,799 | $ 301,891 |
LONG-TERM DEBT AND CAPITAL LE_3
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,670,647 | $ 1,120,539 |
Less: Current portion of long-term debt | (28,229) | (28,546) |
Long-term debt | 1,642,418 | 1,091,993 |
Debt discount and debt issuance costs | (17,068) | (5,770) |
Long-term debt, net | 1,625,350 | 1,086,223 |
Term loans | ||
Debt Instrument [Line Items] | ||
Total debt | 740,625 | 601,250 |
Revolving facility | ||
Debt Instrument [Line Items] | ||
Total debt | 411,931 | 500,997 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt | 500,000 | 0 |
Other long-term debt | ||
Debt Instrument [Line Items] | ||
Total debt | $ 18,091 | $ 18,292 |
LONG-TERM DEBT AND CAPITAL LE_4
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS - Narrative (Details) | Apr. 03, 2018USD ($) | Mar. 26, 2018USD ($)payment | Sep. 29, 2018USD ($) | Feb. 12, 2018USD ($) | Dec. 30, 2017USD ($) |
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 3.72% | 2.45% | |||
Number of consecutive fiscal quarters | 1 year | ||||
Other Capital Lease Obligations | |||||
Debt Instrument [Line Items] | |||||
Other capital lease obligations | $ 30,800,000 | $ 30,300,000 | |||
$2.3 Billion Credit Facility | Credit facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility | $ 2,300,000,000 | ||||
Gross debt issuance costs | 6,200,000 | ||||
Debt issuance costs | 1,000,000 | ||||
Maximum borrowing capacity, term loan and line of credit facility, potential increase available | $ 1,000,000,000 | ||||
Minimum EBITDA less capital expenditures to consolidated cash interest expense ratio | 3.50 | ||||
Maximum consolidated indebtedness to consolidated EBITDA | 4.50 | ||||
Maximum consolidated indebtedness to consolidated EBITDA, with step-downs | 3.50 | ||||
$2.3 Billion Credit Facility | Credit facility | Federal Funds Rate | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 0.50% | ||||
$2.3 Billion Credit Facility | Credit facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 1.00% | ||||
$2.3 Billion Credit Facility | Credit facility | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility | $ 1,550,000,000 | ||||
Term Loan | Credit facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility | $ 750,000,000 | ||||
Number of quarterly installment payments | payment | 19 | ||||
Senior Notes Due 2026 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Gross debt issuance costs | $ 7,400,000 | ||||
Aggregate principal amount | $ 500,000,000 | ||||
Stated interest rate | 5.50% | ||||
Redemption price percentage, conditional upon equity offerings | 40.00% | ||||
Redemption price percentage in the event of a change of control | 101.00% | ||||
Net proceeds from debt | $ 493,800,000 | ||||
Senior Notes Due 2026 | Senior Notes | Redemption Period One | |||||
Debt Instrument [Line Items] | |||||
Redemption price percentage | 100.00% | ||||
Senior Notes Due 2026 | Senior Notes | Redemption Period Two | |||||
Debt Instrument [Line Items] | |||||
Redemption price percentage | 105.50% | ||||
Bridge Loan | |||||
Debt Instrument [Line Items] | |||||
Credit facility | $ 830,000,000 | ||||
Gross debt issuance costs | 1,800,000 | ||||
Fees paid for temporary backstop facility | 2,000,000 | ||||
Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Letters of credit outstanding | $ 5,500,000 | $ 4,900,000 |
EQUITY AND NONCONTROLLING INT_3
EQUITY AND NONCONTROLLING INTEREST - Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Income from continuing operations, net of income taxes | $ 60,902 | $ 52,994 | $ 167,020 | $ 154,630 |
Income (loss) from discontinued operations, net of income taxes | 0 | (39) | 1,506 | (114) |
Less: Net income attributable to noncontrolling interests | 534 | 481 | 1,818 | 1,312 |
Net income attributable to common shareholders | $ 60,368 | $ 52,474 | $ 166,708 | $ 153,204 |
Denominator: | ||||
Weighted-average shares outstanding—Basic (in shares) | 48,310 | 47,451 | 48,098 | 47,530 |
Effect of dilutive securities: | ||||
Stock options, restricted stock units, performance share units and restricted stock (in shares) | 1,016 | 939 | 1,020 | 910 |
Weighted-average shares outstanding—Diluted (in shares) | 49,326 | 48,390 | 49,118 | 48,440 |
EQUITY AND NONCONTROLLING INT_4
EQUITY AND NONCONTROLLING INTEREST - Earnings Per Share, Additional Information (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
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) | 0.5 | 0.4 | 0.5 | 0.6 |
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 |
EQUITY AND NONCONTROLLING INT_5
EQUITY AND NONCONTROLLING INTEREST - Treasury Shares (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |
Oct. 31, 2018 | Sep. 29, 2018 | Sep. 30, 2017 | |
Treasury Shares | |||
Purchase of treasury stock | $ 13,791,000 | $ 106,902,000 | |
Shares acquired to satisfy minimum individual statutory tax withholdings for vesting of equity instruments (in shares) | 100,000 | 200,000 | |
Shares acquired to satisfy minimum individual statutory tax withholdings for vesting of equity instruments | $ 13,800,000 | $ 16,300,000 | |
Subsequent Event | |||
Treasury Shares | |||
Treasury shares retired (in shares) | 40,200,000 | ||
Authorized Share Repurchase Program | |||
Treasury Shares | |||
Purchase of treasury stock | $ 0 | $ 90,600,000 | |
Stock repurchased during period (in shares) | 0 | 1,000,000 | |
Stock repurchase authorization | $ 1,300,000,000 | ||
Remaining authorized repurchase amount | $ 129,100,000 |
EQUITY AND NONCONTROLLING INT_6
EQUITY AND NONCONTROLLING INTEREST - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||||
Other comprehensive loss before reclassifications | $ (13,592) | |||
Amounts reclassified from accumulated other comprehensive loss | 1,864 | |||
Net current period other comprehensive (loss) income | (11,728) | |||
Amount reclassified from accumulated other comprehensive loss due to adoption of ASU 2018-02 (See Note 1) | 3,330 | |||
Income tax (benefit) expense | $ 257 | $ 153 | (341) | $ 776 |
Foreign Currency Translation Adjustment and Other | ||||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||||
December 30, 2017 | (77,545) | |||
Other comprehensive loss before reclassifications | (13,592) | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||
Net current period other comprehensive (loss) income | (13,592) | |||
Amount reclassified from accumulated other comprehensive loss due to adoption of ASU 2018-02 (See Note 1) | 0 | |||
Income tax (benefit) expense | (801) | |||
September 29, 2018 | (90,336) | (90,336) | ||
Pension and Other Post-Retirement Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||||
December 30, 2017 | (67,186) | |||
Other comprehensive loss before reclassifications | 0 | |||
Amounts reclassified from accumulated other comprehensive loss | 1,864 | |||
Net current period other comprehensive (loss) income | 1,864 | |||
Amount reclassified from accumulated other comprehensive loss due to adoption of ASU 2018-02 (See Note 1) | 3,330 | |||
Income tax (benefit) expense | 460 | |||
September 29, 2018 | (69,112) | (69,112) | ||
Total | ||||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||||
December 30, 2017 | (144,731) | |||
September 29, 2018 | $ (159,448) | $ (159,448) |
EQUITY AND NONCONTROLLING INT_7
EQUITY AND NONCONTROLLING INTEREST - Redeemable Noncontrolling Interest, Additional Information (Details) $ in Millions | Sep. 29, 2018USD ($) |
Investment [Line Items] | |
Contractually defined redemption value | $ 17.3 |
Vital River | |
Investment [Line Items] | |
Noncontrolling interest ownership percentage | 13.00% |
EQUITY AND NONCONTROLLING INT_8
EQUITY AND NONCONTROLLING INTEREST - Rollforward of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Beginning balance | $ 16,609 | $ 14,659 |
Total gains or losses (realized/unrealized): | ||
Adjustment to redemption value | 1,111 | 0 |
Foreign currency translation | (932) | 652 |
Ending balance | 17,331 | 15,785 |
Net income attributable to noncontrolling interest | ||
Total gains or losses (realized/unrealized): | ||
Net income attributable to noncontrolling interest | $ 543 | $ 474 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Effective tax rate | 16.90% | 27.30% | 19.20% | 32.20% |
Decrease in unrecognized tax benefits due to settlement of prior positions with tax authorities | $ 0.3 | |||
Unrecognized tax benefits | 20.1 | $ 20.1 | ||
Increase in unrecognized tax benefits that would impact effective tax rate | 0.8 | |||
Unrecognized tax benefits that would impact effective tax rate | 18.8 | 18.8 | ||
Accrued interest and penalties on unrecognized tax benefits | 2.8 | 2.8 | ||
Decrease in unrecognized tax benefits that are reasonably possibly over the next twelve-month period (up to) | 8.2 | 8.2 | ||
Tax cuts and jobs act of 2017, provisional (benefit) obligation | (1) | |||
Tax benefit from decreases in tax liability related to decrease in enacted tax rate | $ 1.8 | |||
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 |
PENSION AND OTHER POST-RETIRE_3
PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Pension | ||||
Employee benefits | ||||
Service cost | $ 814 | $ 749 | $ 2,629 | $ 2,277 |
Interest cost | 2,752 | 2,663 | 8,241 | 8,428 |
Expected return on plan assets | (3,801) | (3,476) | (11,690) | (10,411) |
Amortization of prior service credit | (135) | (134) | (406) | (392) |
Amortization of net loss | 736 | 1,017 | 2,267 | 3,030 |
Net periodic cost | 366 | 819 | 1,041 | 2,932 |
Other Postretirement Benefits 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 | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Stock-based compensation expense | ||||
Stock-based compensation | $ 11,820 | $ 11,526 | $ 35,908 | $ 32,902 |
Cost of revenue | ||||
Stock-based compensation expense | ||||
Stock-based compensation | 1,596 | 1,700 | 4,747 | 4,989 |
Selling, general and administrative | ||||
Stock-based compensation expense | ||||
Stock-based compensation | $ 10,224 | $ 9,826 | $ 31,161 | $ 27,913 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Stock-Based Compensation Grants (Details) shares in Millions | 9 Months Ended |
Sep. 29, 2018$ / sharesshares | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options granted (in shares) | 0.5 |
Stock options weighted average grant date fair value (in dollars per share) | $ / shares | $ 24.80 |
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 | $ 109.15 |
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 | $ 117.28 |
Maximum shares to be awarded under plan (in shares) | 0.4 |
FOREIGN CURRENCY CONTRACT (Deta
FOREIGN CURRENCY CONTRACT (Details) - Foreign Exchange Forward - Not Designated as Hedging Instrument $ in Thousands | 9 Months Ended |
Sep. 29, 2018USD ($) | |
Derivatives, Fair Value [Line Items] | |
Foreign currency contract, term | 1 month |
Other Current Assets | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 28,665 |
Fair Value | $ 29 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 9 Months Ended |
Sep. 29, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Increase in lease obligations | $ 55.2 |
RESTRUCTURING AND ASSET IMPAI_3
RESTRUCTURING AND ASSET IMPAIRMENT - Restructuring Costs by Classification on the Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | $ 4,675 | $ 912 | $ 7,169 | $ 2,461 | |
Cost of services provided and products sold (excluding amortization of intangible assets) | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 35 | 465 | 794 | 1,673 | |
Selling, general and administrative | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 4,640 | 447 | 6,375 | 788 | |
Severance and Transition Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 4,649 | 636 | 7,121 | 1,976 | |
Severance and Transition Costs | Cost of services provided and products sold (excluding amortization of intangible assets) | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 30 | 189 | 767 | 1,188 | |
Severance and Transition Costs | Selling, general and administrative | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 4,619 | 447 | 6,354 | 788 | |
Asset Impairments and Other Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 26 | 276 | 48 | 485 | |
Asset Impairments and Other Costs | Cost of services provided and products sold (excluding amortization of intangible assets) | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 5 | 276 | 27 | 485 | |
Asset Impairments and Other Costs | Selling, general and administrative | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 21 | $ 0 | 21 | $ 0 | |
RMS | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 303 | $ 18,100 | 1,630 | ||
RMS | Cost of services provided and products sold (excluding amortization of intangible assets) | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 333 | 1,472 | |||
RMS | Selling, general and administrative | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | (30) | 158 | |||
RMS | Severance and Transition Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 65 | 808 | |||
RMS | Severance and Transition Costs | Cost of services provided and products sold (excluding amortization of intangible assets) | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 95 | 650 | |||
RMS | Severance and Transition Costs | Selling, general and administrative | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | (30) | 158 | |||
RMS | Asset Impairments and Other Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 238 | 822 | |||
RMS | Asset Impairments and Other Costs | Cost of services provided and products sold (excluding amortization of intangible assets) | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 238 | 822 | |||
RMS | Asset Impairments and Other Costs | Selling, general and administrative | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | $ 0 | $ 0 |
RESTRUCTURING AND ASSET IMPAI_4
RESTRUCTURING AND ASSET IMPAIRMENT - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 29, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs | $ 4,675 | $ 912 | $ 7,169 | $ 2,461 | ||||
Severance and retention costs liability | 7,062 | $ 6,856 | 7,170 | 7,062 | 7,170 | $ 6,810 | $ 7,010 | $ 8,102 |
Accrued Compensation | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Severance and retention costs liability | 2,600 | 2,900 | 2,600 | 2,900 | ||||
RMS | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs | 303 | 18,100 | 1,630 | |||||
RMS | Maximum | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Expected restructuring costs (not expected to exceed) | 1,000 | 1,000 | ||||||
Cash portion of expected amount (up to) | 2,500 | |||||||
Asset Impairments and Accelerated Depreciation | RMS | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs | $ 17,700 | |||||||
Severance and Transition Costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs | 4,649 | 636 | 7,121 | 1,976 | ||||
Severance and Transition Costs | Other Noncurrent Liabilities | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Severance and retention costs liability | 4,400 | $ 4,300 | 4,400 | $ 4,300 | ||||
Severance and Transition Costs | RMS | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs | $ 65 | $ 808 |
RESTRUCTURING AND ASSET IMPAI_5
RESTRUCTURING AND ASSET IMPAIRMENT - Schedule of Other Restructuring Initiatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 4,675 | $ 912 | $ 7,169 | $ 2,461 |
Cost of revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 35 | 465 | 794 | 1,673 |
Selling, general and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 4,640 | 447 | 6,375 | 788 |
Severance and Transition Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 4,649 | 636 | 7,121 | 1,976 |
Severance and Transition Costs | Cost of revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 30 | 189 | 767 | 1,188 |
Severance and Transition Costs | Selling, general and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 4,619 | 447 | 6,354 | 788 |
Asset Impairments and Other Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 26 | 276 | 48 | 485 |
Asset Impairments and Other Costs | Cost of revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 5 | 276 | 27 | 485 |
Asset Impairments and Other Costs | Selling, general and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 21 | $ 0 | $ 21 | $ 0 |
RESTRUCTURING AND ASSET IMPAI_6
RESTRUCTURING AND ASSET IMPAIRMENT - Severance and Retention Costs by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total severance and transition costs | $ 4,675 | $ 912 | $ 7,169 | $ 2,461 |
DSA | ||||
Segment Reporting Information [Line Items] | ||||
Total severance and transition costs | 56 | 360 | 1,021 | 841 |
Manufacturing | ||||
Segment Reporting Information [Line Items] | ||||
Total severance and transition costs | 0 | 552 | 870 | 1,620 |
Unallocated corporate | ||||
Segment Reporting Information [Line Items] | ||||
Total severance and transition costs | $ 4,619 | $ 0 | $ 5,278 | $ 0 |
RESTRUCTURING AND ASSET IMPAI_7
RESTRUCTURING AND ASSET IMPAIRMENT - Rollforward of Severance and Transition Costs Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 6,810 | $ 7,010 | $ 6,856 | $ 8,102 |
Expense | 4,714 | 636 | 7,929 | 1,976 |
Payments / utilization | (4,407) | (676) | (7,544) | (3,506) |
Foreign currency adjustments | (55) | 200 | (179) | 598 |
Ending balance | $ 7,062 | $ 7,170 | $ 7,062 | $ 7,170 |