Financial Statement Details | 2. Financial Statement Details Cash, Cash Equivalents, and Restricted Cash Certain of the Company’s subsidiaries participate in a notional cash pooling arrangement to manage global liquidity requirements. The participants combine their cash balances in pooling accounts at the same financial institution with the ability to offset bank overdrafts of one participant against positive cash account balances held by another participant. The net cash balance related to this pooling arrangement is included in cash, cash equivalents, and restricted cash in the unaudited condensed consolidated balance sheets. During the three months ended June 30, 2020, the Company made a non-cash investment of $27.3 million to acquire certain intellectual property rights from a customer in lieu of cash payment for services rendered. Accounts Receivable and Unbilled Services, net Accounts receivable and unbilled services (including contract assets), net of allowance for doubtful accounts, consisted of the following (in thousands): June 30, 2020 December 31, 2019 Accounts receivable billed $ 659,556 $ 787,652 Unbilled services (including contract assets) 522,414 521,370 Less: Allowance for doubtful accounts (7,949 ) (5,381 ) Accounts receivable and unbilled services, net $ 1,174,021 $ 1,303,641 Unbilled services is comprised of approximately equal parts of unbilled accounts receivables and contract assets. Unbilled accounts receivables arise when the right to bill is contingent solely on the passage of time (e.g., in the following month) and contract assets arise in instances where the right to bill is associated with a contingency (e.g., achievement of a milestone). Accounts Receivable Factoring Arrangement The Company has an accounts receivable factoring agreement to sell certain eligible unsecured trade accounts receivable, without recourse, to an unrelated third-party financial institution for cash. For the six months ended June 30, 2020 and 2019, the Company factored $77.6 million and $113.7 million, respectively, of trade accounts receivable on a non-recourse basis and received $77.3 million and $112.8 million, respectively, in cash proceeds from the sale. The fees associated with these transactions were insignificant. Goodwill The changes in the carrying amount of goodwill by segment for the six months ended June 30, 2020 were as follows (in thousands): Clinical Solutions (a) Commercial Solutions (b) Total Balance as of January 1, 2020 $ 2,784,952 $ 1,565,428 $ 4,350,380 Impact of foreign currency translation (20,473 ) (6,678 ) (27,151 ) Balance as of June 30, 2020 $ 2,764,479 $ 1,558,750 $ 4,323,229 (a) Accumulated impairment losses of $8.1 million associated with the Clinical Solutions segment were recorded prior to 2016 and related to the former Phase I Services segment, now a component of the Clinical Solutions segment. No impairment of goodwill was recorded for the six months ended June 30, 2020. (b) Accumulated impairment losses of $8.0 million associated with the Commercial Solutions segment were recorded prior to 2015 and related to the former Global Consulting segment, now a component of the Commercial Solutions segment. No impairment of goodwill was recorded for the six months ended June 30, 2020. As of June 30, 2020, the Company evaluated whether a triggering event had occurred because of the broad impacts of the COVID-19 pandemic. The COVID-19 pandemic negatively impacted the Company’s results of operations during the three and six months ended June 30, 2020 and the Company expects the pandemic to continue to negatively impact its full year 2020 results of operations. However, at this time, the Company does not believe there has been a significant change in the long-term fundamentals of its business. The Company has concluded a triggering event did not occur, and, as a result, no interim impairment testing was required. The Company will continue to evaluate the impacts of the COVID-19 pandemic on its business. Depending on the extent to which future developments negatively impact the Company's results of operations and financial outlook, an interim impairment test may be required in the future. Transaction and Integration-Related Expenses Transaction and integration-related expenses consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Professional fees $ 2,438 $ 6,678 $ 12,561 $ 19,523 Debt modification and related expenses 71 1,732 71 3,973 Integration and personnel retention-related costs 707 909 2,256 1,756 Fair value adjustments to contingent obligations 152 (1,665 ) (3,943 ) (940 ) Total transaction and integration-related expenses $ 3,368 $ 7,654 $ 10,945 $ 24,312 Accumulated Other Comprehensive Loss , Net of Taxes Accumulated other comprehensive loss, net of taxes, consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Beginning balance $ (131,111 ) $ (71,807 ) $ (71,593 ) $ (88,195 ) Foreign currency translation: Beginning balance (105,545 ) (60,351 ) (56,757 ) (80,955 ) Other comprehensive income (loss) before reclassifications 2,870 (11,919 ) (45,918 ) 8,685 Ending balance (102,675 ) (72,270 ) (102,675 ) (72,270 ) Derivative instruments: Beginning balance (25,566 ) (11,456 ) (14,836 ) (7,240 ) Other comprehensive loss before reclassifications (5,461 ) (9,544 ) (17,971 ) (14,246 ) Reclassification adjustments 4,330 582 6,110 1,068 Ending balance (26,697 ) (20,418 ) (26,697 ) (20,418 ) Accumulated other comprehensive loss, net of taxes $ (129,372 ) $ (92,688 ) $ (129,372 ) $ (92,688 ) Changes in accumulated other comprehensive loss consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Foreign currency translation adjustments: Foreign currency translation adjustments, net of taxes $ 2,870 $ (11,919 ) $ (45,918 ) $ 8,685 Unrealized loss on derivative instruments: Unrealized loss during period, before taxes (6,876 ) (9,800 ) (26,659 ) (14,616 ) Income tax benefit (1,415 ) (256 ) (8,688 ) (370 ) Unrealized loss during period, net of taxes (5,461 ) (9,544 ) (17,971 ) (14,246 ) Reclassification adjustment, before taxes 5,797 601 8,211 1,106 Income tax expense 1,467 19 2,101 38 Reclassification adjustment, net of taxes 4,330 582 6,110 1,068 Total unrealized loss on derivative instruments, net of taxes (1,131 ) (8,962 ) (11,861 ) (13,178 ) Total other comprehensive income (loss), net of taxes $ 1,739 $ (20,881 ) $ (57,779 ) $ (4,493 ) Other Expense (Income), Net Other expense (income), net consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net realized foreign currency loss (gain) $ 3,045 $ (7,275 ) $ (2,051 ) $ 1,131 Net unrealized foreign currency loss (gain) 2,478 (880 ) (12,541 ) (957 ) Other, net 238 582 1,423 1,174 Total other expense (income), net $ 5,761 $ (7,573 ) $ (13,169 ) $ 1,348 |