| 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. As part of a master netting arrangement, 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. Under the terms of the master netting arrangement, the financial institution has the right, ability, and intent to offset a positive balance in one account against an overdrawn amount in another account. Amounts in each of the accounts are unencumbered and unrestricted with respect to use. As such, 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. The Company’s net cash pool position consisted of the following (in thousands):
March 31, 2021
December 31, 2020
Gross cash position
$
193,053
$
220,261
Less: cash borrowings
(178,715
)
(204,647
)
Net cash position
$
14,338
$
15,614
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):
March 31, 2021
December 31, 2020
Accounts receivable billed
$
705,783
$
774,605
Accounts receivable unbilled
228,798
211,285
Contract assets
372,266
366,506
Less: Allowance for doubtful accounts
(7,679
)
(7,615
)
Accounts receivable and unbilled services, net
$
1,299,168
$
1,344,781
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 three months ended March 31, 2021 and 2020, the Company factored $30.1 million and $36.2 million, respectively, of trade accounts receivable on a non-recourse basis and received $30.0 million and $36.0 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 three months ended March 31, 2021 were as follows (in thousands):
Clinical Solutions (a)
Commercial Solutions (b)
Total
Balance as of December 31, 2020
$
3,216,335
$
1,559,843
$
4,776,178
Business combinations (c)
2,479
—
2,479
Impact of foreign currency translation and other (d)
49,079
(47,557
)
1,522
Balance as of March 31, 2021
$
3,267,893
$
1,512,286
$
4,780,179
(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 three months ended March 31, 2021. (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 three months ended March 31, 2021. (c) Amount represents measurement period adjustments to goodwill recognized in connection with the 2020 acquisitions of SHCR Holdings Corporation (“Synteract”) and Illingworth Research Group™ (“Illingworth Research”) within the Clinical Solutions segment. (d) Includes $44.2 million reallocation of goodwill from the Commercial Solutions segment to the Clinical Solutions segment to reflect the transfer of the Kinapse Regulatory and Operations Consulting service lines to align with management reporting in 2021. Accumulated Other Comprehensive Loss, Net of Taxes Accumulated other comprehensive loss, net of taxes, consisted of the following (in thousands):
Three Months Ended March 31,
2021
2020
Beginning balance
$
(40,801
)
$
(71,593
)
Foreign currency translation:
Beginning balance
(22,040
)
(56,757
)
Other comprehensive loss before reclassifications
(4,310
)
(48,788
)
Ending balance
(26,350
)
(105,545
)
Derivative instruments:
Beginning balance
(18,761
)
(14,836
)
Other comprehensive income (loss) before reclassifications
772
(12,510
)
Reclassification adjustments
5,165
1,780
Ending balance
(12,824
)
(25,566
)
Accumulated other comprehensive loss, net of taxes
$
(39,174
)
$
(131,111
) Changes in accumulated other comprehensive loss consisted of the following (in thousands):
Three Months Ended March 31,
2021
2020
Foreign currency translation adjustments:
Foreign currency translation adjustment, before taxes
$
(5,018
)
$
(48,788
)
Income tax benefit
(708
)
—
Foreign currency translation adjustments, net of taxes
(4,310
)
(48,788
)
Unrealized loss on derivative instruments:
Unrealized gain (loss) during period, before taxes
1,034
(19,783
)
Income tax expense (benefit)
262
(7,273
)
Unrealized gain (loss) during period, net of taxes
772
(12,510
)
Reclassification adjustment, before taxes
6,916
2,414
Income tax expense
1,751
634
Reclassification adjustment, net of taxes
5,165
1,780
Total unrealized gain (loss) on derivative instruments, net of taxes
5,937
(10,730
)
Total other comprehensive income (loss), net of taxes
$
1,627
$
(59,518
) Other Income, Net Other income, net consisted of the following (in thousands):
Three Months Ended March 31,
2021
2020
Net realized foreign currency loss (gain)
$
1,192
$
(5,096
)
Net unrealized foreign currency gain
(9,522
)
(15,019
)
Other, net
(1,526
)
1,185
Total other income, net
$
(9,856
)
$
(18,930
) |
