PRA Health Sciences (PRAH) 10-Q 7 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	4-May-15
Document and Entity Information
Entity Registrant Name	PRA Health Sciences, Inc.
Entity Central Index Key	1613859
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		59,827,555
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

CONSOLIDATED_CONDENSED_BALANCE

CONSOLIDATED CONDENSED BALANCE SHEETS (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$64,003	$85,192
Restricted cash	6,844	6,337
Accounts receivable and unbilled services, net	372,354	338,781
Other current assets	61,449	58,413
Total current assets	504,650	488,723
Fixed assets, net	72,708	72,933
Goodwill	1,014,882	1,033,999
Intangible assets, net	575,394	600,910
Other assets	37,513	42,012
Total assets	2,205,147	2,238,577
Current liabilities:
Accounts payable	48,545	39,100
Accrued expenses and other current liabilities	133,592	131,135
Advance billings	291,168	296,121
Total current liabilities	473,305	466,356
Long-term debt, net	933,848	948,537
Other long-term liabilities	149,781	146,869
Total liabilities	1,556,934	1,561,762
Commitments and contingencies (Note 10)
Stockholders' equity:
Common stock, $0.01 par value, 1,000,000,000 authorized shares at March 31, 2015 and December 31, 2014; 59,827,555 and 59,814,444 issued and outstanding at March 31, 2015 and December 31, 2014, respectively	598	598
Additional paid-in capital	822,200	821,411
Accumulated other comprehensive loss	-116,087	-69,509
Accumulated deficit	-58,498	-75,685
Total stockholders' equity	648,213	676,815
Total liabilities and stockholders' equity	$2,205,147	$2,238,577

CONSOLIDATED_CONDENSED_BALANCE1

CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
CONSOLIDATED CONDENSED BALANCE SHEETS
Common stock, par value (in dollars per share)	$0.01	$0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	59,827,555	59,814,444
Common stock, shares outstanding	59,827,555	59,814,444

CONSOLIDATED_CONDENSED_STATEME

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Revenue:
Service revenue	$331,968	$311,352
Reimbursement revenue	56,610	43,388
Total revenue	388,578	354,740
Operating expenses:
Direct costs	218,961	215,151
Reimbursable out-of-pocket costs	56,610	43,388
Selling, general and administrative	60,835	60,839
Depreciation and amortization	19,235	24,638
Income from operations	32,937	10,724
Interest expense, net	-15,393	-21,766
Loss on modification of debt		-1,384
Foreign currency gains (losses), net	9,066	-3,712
Other expense, net	-464	-59
Income (loss) before income taxes and equity in losses of unconsolidated joint ventures	26,146	-16,197
Provision for (benefit from) income taxes	8,022	-6,333
Income (loss) before equity in losses of unconsolidated joint ventures	18,124	-9,864
Equity in losses of unconsolidated joint ventures, net of tax	-937	-177
Net income (loss)	$17,187	($10,041)
Net income (loss) per share attributable to common stockholders:
Basic (in dollars per share)	$0.29	($0.25)
Diluted (in dollars per share)	$0.27	($0.25)
Weighted average common shares outstanding:
Basic (in shares)	59,815	40,268
Diluted (in shares)	62,777	40,268

CONSOLIDATED_CONDENSED_STATEME1

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE LOSS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE LOSS
Net income (loss)	$17,187	($10,041)
Other comprehensive (loss) income:
Foreign currency translation adjustments	-40,357	1,894
Unrealized losses on derivative instruments, net of income taxes of $700 and $2,720	-6,238	-4,247
Reclassification adjustments:
Losses on derivatives included in net income (loss), net of income taxes of $0 and $0	17	0
Comprehensive loss	($29,391)	($12,394)

CONSOLIDATED_CONDENSED_STATEME2

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE LOSS
Unrealized losses on derivative instruments, tax	$700	$2,720
Losses on derivatives included in net income (loss), tax	$0	$0

CONSOLIDATED_CONDENSED_STATEME3

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net income (loss)	$17,187	($10,041)
Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	19,235	24,638
Amortization of debt issuance costs and discount	1,649	1,434
Stock-based compensation	775	892
Unrealized foreign currency (gains) losses	-11,375	2,644
Loss on modification of debt		1,384
Deferred income taxes	-1,753	-11,514
Other reconciling items	2,538	431
Changes in operating assets and liabilities:
Accounts receivable, unbilled services, and advance billings	-49,429	-66,635
Other operating assets and liabilities	24,579	16,440
Net cash provided by (used in) operating activities	3,406	-40,327
Cash flows from investing activities:
Purchase of fixed assets	-7,610	-5,784
Proceeds from RPS working capital settlement		15,000
Net cash (used in) provided by investing activities	-7,610	9,216
Cash flows from financing activities:
Repayments of long-term debt	-15,000	-2,225
Borrowings on line of credit		20,000
Proceeds from stock options exercises	14
Payments for common stock issuance costs	-525
Net cash (used in) provided by financing activities	-15,511	17,775
Effects of foreign exchange changes on cash and cash equivalents	-1,474	-517
Change in cash and cash equivalents	-21,189	-13,853
Cash and cash equivalents, beginning of period	85,192	72,155
Cash and cash equivalents, end of period	$64,003	$58,302

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2015
Basis of Presentation
Basis of Presentation
	(1) Basis of Presentation
	Unaudited Interim Financial Information
	The interim consolidated condensed financial statements include the accounts of PRA Health Sciences, Inc. and its subsidiaries, or the Company. These financial statements are prepared in conformity with U.S. generally accepted accounting principles, or GAAP, and are unaudited.  In the opinion of the Company’s management, all adjustments necessary for a fair presentation have been reflected.  Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted.  The accompanying interim consolidated condensed financial statements and related notes should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, or the Company’s 2014 Annual Report.
	The preparation of the interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim consolidated financial statements and the reported amounts of revenues and claims and expenses during the reporting period.  Actual results could differ from those estimates.
	The Company
	PRA Health Sciences, Inc. is a full-service global contract research organization providing a broad range of product development services for pharmaceutical and biotechnology companies around the world. The Company’s integrated services include data management, statistical analysis, clinical trial management, and regulatory and drug development consulting.
	Recent Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board, or FASB, issued an Accounting Standards Update, or ASU, No. 2014-09, ‘‘Revenue from Contracts with Customers,’’ to clarify the principles of recognizing revenue and create common revenue recognition guidance between GAAP and International Financial Reporting Standards. ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently assessing the potential impact of ASU No. 2014-09 on the Company’s consolidated condensed financial statements.
	In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern.” ASU No. 2014-15 clarifies management’s responsibility to evaluate whether there is a substantial doubt about the entity’s ability to continue as a going concern and provides guidance for related footnote disclosures. ASU No. 2014-15 will be effective for annual periods ending after December 15, 2016, and interim periods beginning after December 15, 2016. The adoption of ASU No. 2014-15 is not expected to have a material effect on the Company’s consolidated condensed financial statements.
	In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” ASU No. 2015-03 requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. ASU No. 2015-03 will be effective for annual reporting periods beginning after December 15, 2015, and interim periods within those fiscal years. As of March 31, 2015, the Company had $26.2 million in debt issuance costs in other assets that would be reclassified to long-term debt, net.

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements
	(2) Fair Value Measurements
	The Company records certain assets and liabilities at fair value.  Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date.  A three-level fair value hierarchy that prioritizes the inputs used to measure fair value is described below.  This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs.  The three levels of inputs used to measure fair value are as follows:
		·		Level 1 — Quoted prices in active markets for identical assets or liabilities.
		·		Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
		·		Level 3 — Unobservable inputs that are supported by little or no market activity. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.
	The carrying amount of financial instruments, including cash and cash equivalents, accounts receivable, unbilled services, accounts payable and advanced billings, approximate fair value due to the short maturities of these instruments.
	Recurring Fair Value Measurements
	The following table summarizes the fair value of the Company’s financial assets and liabilities that are measured on a recurring basis as of March 31, 2015 (in thousands):
			Level 1		Level 2		Level 3		Total
	Liabilities:
	Interest rate contracts		$	—	$	26,929	$	—	$	26,929
	Contingent consideration		—		—		2,000		2,000
	Total		$	—	$	26,929	$	2,000	$	28,929
	The Company values contingent consideration, related to business combinations, using a weighted probability of potential payment scenarios discounted at rates reflective of the weighted average cost of capital for the businesses acquired. Key assumptions used to estimate the fair value of contingent consideration include revenue and operating forecasts and the probability of achieving the specific targets.  Interest rate swaps and caps are measured at fair value using a market approach valuation technique. The valuation is based on an estimate of net present value of the expected cash flows using relevant mid-market observable data inputs and based on the assumption of no unusual market conditions or forced liquidation.
	The following table summarizes the changes in Level 3 financial assets and liabilities measured on a recurring basis for the three months ended March 31, 2015 (in thousands):
			Contingent
			Considerations -
			Accrued expenses and
			other current
			liabilities
	Balance at December 31, 2014		$	1,911
	Revaluations included in earnings		89
	Balance at March 31, 2015		$	2,000
	Non-recurring Fair Value Measurements
	Certain assets and liabilities are carried on the accompanying consolidated condensed balance sheets at cost and are not remeasured to fair value on a recurring basis. These assets include finite-lived intangible assets which are tested when a triggering event occurs and goodwill and identifiable indefinite-lived intangible assets which are tested for impairment annually on October 1 or when a triggering event occurs.
	As of March 31, 2015, assets carried on the balance sheet and not remeasured to fair value on a recurring basis totaling approximately $1,590.3 million were identified as Level 3. These assets are comprised of goodwill of $1,014.9 million and identifiable intangible assets of $575.4 million.

Concentration_of_Credit_Risk

Concentration of Credit Risk	3 Months Ended
	Mar. 31, 2015
Concentration of Credit Risk
Concentration of Credit Risk
	(3) Concentration of Credit Risk
	Financial instruments that potentially subject the Company to credit risk consist of cash and cash equivalents, accounts receivable, and unbilled services.  As of March 31, 2015, substantially all of the Company’s cash and cash equivalents were held in or invested with large financial institutions.  Accounts receivable include amounts due from pharmaceutical and biotechnology companies.  The Company establishes an allowance for potentially uncollectible receivables.  In management’s opinion, there is no additional material credit risk beyond amounts provided for such losses.
	Service revenue from individual customers greater than 10% of consolidated service revenue in the respective periods was as follows:
		Three Months Ended
		March 31,		March 31,
		2015		2014
	Customer A	11.4	%	—
	Accounts receivable and unbilled receivables from individual customers that were equal to or greater than 10% of consolidated accounts receivable and unbilled receivables at the respective dates were as follows:
		March 31,		December 31,
		2015		2014
	Customer A	13.2	%	14.4	%
	Customer B	—		10.2	%

Accounts_Receivable_and_Unbill

Accounts Receivable and Unbilled Services	3 Months Ended
	Mar. 31, 2015
Accounts Receivable and Unbilled Services
Accounts Receivable and Unbilled Services
	(4)  Accounts Receivable and Unbilled Services
	Accounts receivable and unbilled services include service revenue, reimbursement revenue, and amounts associated with work performed by investigators. Accounts receivable and unbilled services were as follows (in thousands):
		March 31,			December 31,
		2015			2014
	Accounts receivable	$	242,606		$	235,058
	Unbilled services	132,832			105,542
		375,438			340,600
	Less allowance for doubtful accounts	(3,084		)	(1,819		)
	Total accounts receivable and unbilled services, net	$	372,354		$	338,781

Goodwill_and_Intangible_Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2015
Goodwill and Intangible Assets
Goodwill and Intangible Assets
	(5) Goodwill and Intangible Assets
	Goodwill
	The changes in the carrying amount of goodwill are as follows (in thousands):
	Balance at December 31, 2014	$	1,033,999
	Currency translation	(19,117		)
	Balance at March 31, 2015	$	1,014,882
	There are no accumulated impairment charges as of March 31, 2015.
	Intangible Assets
	Intangible assets consist of the following (in thousands):
		March 31,			December 31,
		2015			2014
	Customer relationships	$	382,576		$	393,053
	Customer backlog	127,905			130,833
	Trade names (definite-lived)	25,757			25,762
	Patient list and other intangibles	20,900			20,900
	Non-competition agreements	2,765			2,774
	Total finite-lived intangible assets, gross	559,903			573,322
	Accumulated amortization	(102,519		)	(90,422		)
	Total finite-lived intangible assets, net	457,384			482,900
	Trade names (indefinite-lived)	118,010			118,010
	Total intangible assets, net	$	575,394		$	600,910
	Amortization expense was $14.1 million and $18.7 million during the three months ended March 31, 2015 and 2014, respectively. The estimated future amortization expense of finite-lived intangible assets is expected to be as follows (in thousands):
	2015 (remaining)	$	41,911
	2016	45,134
	2017	35,415
	2018	31,021
	2019	25,534
	2020 and thereafter	278,369
	Total	$	457,384
	Based upon the Company’s most recent annual goodwill impairment test that was conducted during the fourth quarter of 2014, the fair value of its Product Registration Services and Strategic Solutions reporting units substantially exceeded their carrying values; the estimated fair value of the Early Development Services, or EDS, reporting unit, however, closely approximated its carrying value. The goodwill of EDS was $123.4 million at March 31, 2015. The EDS reporting unit experienced significant cancellations in the second half of 2014 and was not able to realize synergies from the CRI Lifetree acquisition as quickly as originally forecasted. The Company’s current assumptions include higher revenue during the remainder of 2015, from existing backlog and increased new business awards, as well as making operational improvements to the business. Any negative changes in assumptions on revenue, new business awards, cancellations, or the Company’s ability to improve operations while maintaining a competitive cost structure could adversely affect the fair value of EDS and result in significant goodwill impairment charges in 2015 or later.

LongTerm_Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2015
Long-Term Debt.
Long-Term Debt
	(6) Long-Term Debt
	Long-term debt consisted of the following (in thousands):
		March 31,			December 31,
		2015			2014
	Term loans, first lien	$	714,000		$	729,000
	Senior notes	225,000			225,000
		939,000			954,000
	Less debt discount	(5,152		)	(5,463		)
	Total long-term debt, net	$	933,848		$	948,537
	Principal payments on long-term debt are due as follows (in thousands):
	2015 (remaining)	$	—
	2016	—
	2017	—
	2018	—
	2019	—
	2020 and thereafter	939,000
	Total	$	939,000
	The estimated fair value of long-term debt was $965.6 million and $966.0 million at March 31, 2015 and December 31, 2014, respectively.  The fair value of the senior notes was determined based on Level 2 inputs using the market approach, which is primarily based on rates at which the debt is traded among financial institutions.  The fair value of the term loans and borrowings under credit facilities was determined based on Level 3 inputs, which is primarily based on rates at which the debt is traded among financial institutions adjusted for the Company’s credit standing.
	On March 24, 2014, the Company completed a repricing transaction, or the Repricing, associated with the first lien term loan that reduced the applicable margin from 4.0% to 3.5%. As a result of the Repricing, the Company recognized a loss on modification of debt totaling $1.3 million, which was recorded during the three months ended March 31, 2014. The Company incurred $0.1 million in expenses for the repricing transaction, which were expensed during the three months ended March 31, 2014.
	Revolving Credit Facilities
	The Company’s revolving credit facilities provides for $125.0 million of potential borrowings and expires on September 23, 2018.  The interest rate on the revolving credit facilities is based on the LIBOR plus an applicable rate, based on the leverage ratio of the Company.  The Company, at its discretion, may choose interest periods of 1, 2, 3 or 6 months.  In addition, the Company is required to pay to the lenders a commitment fee of 0.5% quarterly for unused commitments on the revolver, subject to a step-down to 0.375% based upon achievement of a certain leverage ratio. At March 31, 2015 and December 31, 2014, the Company had no outstanding borrowings under the revolving credit facilities. In addition, at March 31, 2015 and December 31, 2014, the Company had $5.0 million and $5.1 million, respectively, in letters of credit outstanding, which are secured by the revolving credit facilities.

Stockholders_Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2015
Stockholders' Equity
Stockholders' Equity
	(7) Stockholders’ Equity
	Authorized Shares
	The Company is authorized to issue up to one billion shares of common stock, with a par value of $0.01.

StockBased_Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2015
Stock-Based Compensation
Stock-Based Compensation
	(8)  Stock-Based Compensation
	The Board of Directors granted 385,000 service-based options and 3,624 restricted stock awards, or RSAs, with a total grant date fair value of $3.9 million and $0.1 million, respectively, during the three months ended March 31, 2015.  There were no options or RSAs granted during the three months ended March 31, 2014.
	Stock-based compensation expense related to employee stock options and RSAs are summarized below (in thousands):
		Three Months Ended
		March 31,		March 31,
		2015		2014
	Direct costs	$	175	$	142
	Selling, general and administrative	600		750
	Total stock compensation expense	$	775	$	892

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2015
Income Taxes
Income Taxes
	(9) Income Taxes
	The Company’s effective income tax rate was 30.7% and 39.1% for the three months ended March 31, 2015 and 2014, respectively. The variation between the Company’s effective income tax rate and the U.S. statutory rate of 35% for the three months ended March 31, 2015 is primarily due to (i) income from foreign subsidiaries being taxed at rates lower than the U.S. statutory rate and (ii) the favorable impact of research and development tax credits.
	U.S. GAAP requires a two-step approach when evaluating uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence demonstrates that it is more likely than not that the position will be sustained upon audit, including resolution of any related appeals or litigation processes. The second step is to quantify the amount of tax benefit to recognize as the amount that is cumulatively more than 50% likely to be realized upon ultimate settlement with the taxing authorities.
	As of March 31, 2015, the Company’s liability for unrecognized tax benefits was $14.7 million. If any portion of this $14.7 million is recognized that impacts the effective tax rate, the Company will then include that portion in the computation of its effective tax rate. Although the ultimate timing of the resolution of audits is highly uncertain, the Company believes it is reasonably possible that approximately $0.4 million of gross unrecognized tax benefits will change in the next 12 months as a result of pending audit settlements or statute of limitations expirations.
	The Company files U.S. federal, U.S. state, and foreign tax returns. For U.S. federal purposes, the Company is generally no longer subject to tax examinations for years ended December 31, 2011 and prior. For U.S. state tax returns, the Company is generally no longer subject to tax examinations for years prior to 2011. For foreign purposes, the Company is generally no longer subject to examination for tax periods 2007 and prior. Certain carryforward tax attributes generated in prior years remain subject to examination and adjustment.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies
Commitments and Contingencies
	(10) Commitments and Contingencies
	Legal Proceedings
	The Company is involved in legal proceedings from time to time in the ordinary course of its business, including employment claims and claims related to other business transactions.  Although the outcome of such claims is uncertain, management believes that these legal proceedings will not have a material adverse effect on the financial condition or results of future operations of the Company.
	The Company is currently a party to litigation with the City of Sao Paulo, Brazil. The dispute relates to whether the export of services provided by the Company is subject to a local tax on services. The Company has not recorded a liability associated with the claim, which totaled $4.4 million at March 31, 2015, given it is not deemed probable the Company will incur a loss related to this case. However, a deposit totaling $4.4 million has been made to the Brazilian court in order to annul the potential tax obligation and to avoid the accrual of additional interest and penalties. This balance is recorded in other assets on the consolidated condensed balance sheet. The Company expects to recover the full amount of the deposit when the case is settled.

Restructuring

Restructuring	3 Months Ended
	Mar. 31, 2015
Restructuring
Restructuring
	(11) Restructuring
	European Restructuring
	During 2012, the Board of Directors of RPS Parent Holding Corp., or RPS, approved a restructuring plan, or European Restructuring Plan, to reduce support costs in its European Operations. RPS offered severance benefits to the terminated employees and eliminated approximately 75 positions. The Company elected to continue the European Restructuring Plan after acquiring RPS in September 2013 and a total of approximately $0.7 million is included in accrued expenses and other current liabilities as of March 31, 2015. This balance relates to outstanding contingency claims for certain former employees that were terminated as part of the European Restructuring Plan. The Company did not incur any additional restructuring expense during the three months ended March 31, 2015.
	The table below outlines the components of the restructuring charges (in thousands):
		Balance at		Foreign			Balance at
		December 31,		exchange			March 31,
		2014		adjustment			2015
	European Restructuring	$	753	$	(79	)	$	674
	Total	$	753	$	(79	)	$	674

Derivatives

Derivatives	3 Months Ended
	Mar. 31, 2015
Derivatives
Derivatives
	(12) Derivatives
	The Company is exposed to certain risks relating to our ongoing business operations. The primary risk that the Company seeks to manage by using derivative instruments is interest rate risk. Accordingly, the Company has instituted interest rate hedging programs that are accounted for in accordance with ASC 815, “Derivatives and Hedging.” The interest rate hedging program is a cash flow hedge program designed to minimize interest rate volatility. The Company swaps the difference between fixed and variable interest amounts calculated by reference to an agreed-upon notional principal amount, at specified intervals. The Company also employs an interest rate cap that compensates us if variable interest rates rise above a pre-determined rate. The Company’s interest rate contracts are designated as hedging instruments.
	On October 2, 2013, the Company entered into interest rate swap agreements with an aggregate notional principal amount of $620.0 million. The interest rate swaps will begin on September 23, 2015. The interest rate swaps will be used to hedge the Company’s variable rate debt. The interest rate swaps have maturity dates ranging from one to five years.
	In addition, on October 2, 2013 the Company also entered into an interest rate cap with an aggregate notional principal amount of $800.0 million. The interest rate cap began on September 23, 2014 and will expire on September 23, 2015. The interest rate cap is used to hedge the variable rate of the Company’s revolving credit facilities to the extent that the LIBOR rises above 4.0%.
	The following table presents the notional amounts and fair values (determined using level 2 inputs) of our derivatives as of March 31, 2015 and December 31, 2014. All liability amounts are reported in other long-term liabilities (in thousands):
				March 31, 2015						December 31, 2014
		Balance Sheet		Notional			Liability			Notional		Liability
		Classification		amount						amount
	Derivatives in a liability position:
	Interest rate contracts	Other long-term liabilities		$	1,420,000		$	(26,929	)	$	1,420,000	$	(19,446	)
	Total designated derivatives			$	1,420,000		$	(26,929	)	$	1,420,000	$	(19,446	)
	The Company records the effective portion of any change in the fair value of derivatives designated as hedging instruments under ASC 815 to other accumulated comprehensive (loss) income in our consolidated condensed balance sheet, net of deferred taxes, and will later reclassify into earnings when the hedged item affects earnings or is no longer expected to occur. Gains and losses from the ineffective portion of any hedge are recognized in earnings immediately. For other derivative contracts that do not qualify or no longer qualify for hedge accounting, changes in the fair value of the derivatives are recognized in earnings each period.
	During the fourth quarter of 2014, due to the debt repayments made in conjunction with the Company’s initial public offering, or IPO, in November 2014 and related changes to forecasted voluntary debt repayments in future periods, the Company determined interest rate swaps with a notional principal amount of $47.5 million no longer qualify for hedge accounting.  The change in estimated debt repayments also resulted in ineffectiveness in interest rate swaps with a notional principal amount of $297.5 million during the fourth quarter of 2014.
	The table below presents the effect of our derivatives on the consolidated condensed statements of operations and comprehensive loss for the three months ended March 31, 2015 and 2014 (in thousands):
		Three Months Ended
	Derivatives in Cash Flow Hedging Relationships (Interest Rate Contracts)	March 31,			March 31,
		2015			2014
	Amount of loss recognized in other comprehensive loss on derivatives	$	(6,238	)	$	(4,247	)
	Amount of loss recognized in other expense, net on derivatives (ineffective portion)	(56		)	—
	Amount of loss recognized in other expense, net on derivatives (no longer qualify for hedge accounting)	(489		)	—
	Amount of loss reclassified from accumulated other comprehensive loss into interest expense, net on derivatives	(17		)	—
	The Company expects that $0.2 million of unrealized losses will be reclassified out of accumulated other comprehensive loss and into interest expense, net over the next 12 months.

Related_Party_Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2015
Related Party Transactions
Related Party Transactions
	(13) Related Party Transactions
	At March 31, 2015 and December 31, 2014, Kohlberg Kravis Robert & Co. L.P., or KKR, the majority stockholder of the Company, held $0.8 million in first lien term debt.
	The Company paid management fees of $0.5 million to KKR pursuant to the terms of the monitoring agreement between the Company and KKR that was in effect prior to the IPO during the three months ended March 31, 2014. The Company did not pay any management fees to KKR during the three months ended March 31, 2015 due to the termination of the monitoring agreement in conjunction with the IPO during the fourth quarter of 2014.

Net_Income_Loss_Per_Share

Net Income (Loss) Per Share	3 Months Ended
	Mar. 31, 2015
Net Income (Loss) Per Share
Net Income (Loss) Per Share
	(14) Net Income (Loss) Per Share
	Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the applicable period. Diluted net income (loss) per share is calculated after adjusting the denominator of the basic net income (loss) per share calculation for the effect of all potentially dilutive common shares, which, in the Company’s case, includes shares issuable under the stock option and incentive award plan.
	The following table reconciles the basic to diluted weighted average shares outstanding (in thousands):
		Three Months Ended
		March 31,	March 31,
		2015	2014
	Basic weighted average common shares outstanding	59,815	40,268
	Effect of dilutive stock options and RSAs	2,962	—
	Diluted weighted average common shares outstanding	62,777	40,268
	Anti-dilutive shares	20	356
	The dilutive and anti-dilutive shares disclosed above were calculated using the treasury stock method. During the three months ended March 31, 2015, the anti-dilutive shares were due to the assumed exercise price exceeding the average market price of the Company’s common stock during the period. During the three months ended March 31, 2014, the anti-dilutive shares were due to the Company being in a net loss position during the period.

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2015
Fair Value Disclosures [Abstract]
Summary of the fair value of financial assets and liabilities measured on a recurring basis
	The following table summarizes the fair value of the Company’s financial assets and liabilities that are measured on a recurring basis as of March 31, 2015 (in thousands):
		Level 1		Level 2		Level 3		Total
	Liabilities:
	Interest rate contracts	$	—	$	26,929	$	—	$	26,929
	Contingent consideration	—		—		2,000		2,000
	Total	$	—	$	26,929	$	2,000	$	28,929
Summary of the changes in Level 3 financial assets and liabilities measured on a recurring basis
	The following table summarizes the changes in Level 3 financial assets and liabilities measured on a recurring basis for the three months ended March 31, 2015 (in thousands):
		Contingent
		Considerations -
		Accrued expenses and
		other current
		liabilities
	Balance at December 31, 2014	$	1,911
	Revaluations included in earnings	89
	Balance at March 31, 2015	$	2,000

Concentration_of_Credit_Risk_T

Concentration of Credit Risk (Tables) (Customer Concentration Risk)	3 Months Ended
	Mar. 31, 2015
Service revenue
Concentration risk
Schedule of concentration of risk by risk factor
		Three Months Ended
		March 31,		March 31,
		2015		2014
	Customer A	11.4	%	—
Accounts receivable and unbilled receivables
Concentration risk
Schedule of concentration of risk by risk factor
		March 31,		December 31,
		2015		2014
	Customer A	13.2	%	14.4	%
	Customer B	—		10.2	%

Accounts_Receivable_and_Unbill1

Accounts Receivable and Unbilled Services (Tables)	3 Months Ended
	Mar. 31, 2015
Accounts Receivable and Unbilled Services
Schedule of accounts receivable and unbilled services
	Accounts receivable and unbilled services include service revenue, reimbursement revenue, and amounts associated with work performed by investigators. Accounts receivable and unbilled services were as follows (in thousands):
		March 31,			December 31,
		2015			2014
	Accounts receivable	$	242,606		$	235,058
	Unbilled services	132,832			105,542
		375,438			340,600
	Less allowance for doubtful accounts	(3,084		)	(1,819		)
	Total accounts receivable and unbilled services, net	$	372,354		$	338,781

Goodwill_and_Intangible_Assets1

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2015
Goodwill and Intangible Assets
Schedule of changes in the carrying amount of goodwill
	The changes in the carrying amount of goodwill are as follows (in thousands):
	Balance at December 31, 2014	$	1,033,999
	Currency translation	(19,117		)
	Balance at March 31, 2015	$	1,014,882
Schedule of intangible assets
	Intangible assets consist of the following (in thousands):
		March 31,			December 31,
		2015			2014
	Customer relationships	$	382,576		$	393,053
	Customer backlog	127,905			130,833
	Trade names (definite-lived)	25,757			25,762
	Patient list and other intangibles	20,900			20,900
	Non-competition agreements	2,765			2,774
	Total finite-lived intangible assets, gross	559,903			573,322
	Accumulated amortization	(102,519		)	(90,422		)
	Total finite-lived intangible assets, net	457,384			482,900
	Trade names (indefinite-lived)	118,010			118,010
	Total intangible assets, net	$	575,394		$	600,910
Schedule of estimated future amortization expense	The estimated future amortization expense of finite-lived intangible assets is expected to be as follows (in thousands):
	2015 (remaining)	$	41,911
	2016	45,134
	2017	35,415
	2018	31,021
	2019	25,534
	2020 and thereafter	278,369
	Total	$	457,384

LongTerm_Debt_Tables

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2015
Long-Term Debt.
Schedule of long-term debt
	Long-term debt consisted of the following (in thousands):
		March 31,			December 31,
		2015			2014
	Term loans, first lien	$	714,000		$	729,000
	Senior notes	225,000			225,000
		939,000			954,000
	Less debt discount	(5,152		)	(5,463		)
	Total long-term debt, net	$	933,848		$	948,537
Schedule of principal payments on long-term debt due
	Principal payments on long-term debt are due as follows (in thousands):
	2015 (remaining)	$	—
	2016	—
	2017	—
	2018	—
	2019	—
	2020 and thereafter	939,000
	Total	$	939,000

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2015
Stock-Based Compensation
Schedule of stock-based compensation expense
	Stock-based compensation expense related to employee stock options and RSAs are summarized below (in thousands):
		Three Months Ended
		March 31,		March 31,
		2015		2014
	Direct costs	$	175	$	142
	Selling, general and administrative	600		750
	Total stock compensation expense	$	775	$	892

Restructuring_Tables

Restructuring (Tables)	3 Months Ended
	Mar. 31, 2015
Restructuring
Schedule of components of restructuring charges
	The table below outlines the components of the restructuring charges (in thousands):
		Balance at		Foreign			Balance at
		December 31,		exchange			March 31,
		2014		adjustment			2015
	European Restructuring	$	753	$	(79	)	$	674
	Total	$	753	$	(79	)	$	674

Derivatives_Tables

Derivatives (Tables)	3 Months Ended
	Mar. 31, 2015
Derivatives
Schedule of notional amounts and fair values of derivatives determined using level 2 inputs
	The following table presents the notional amounts and fair values (determined using level 2 inputs) of our derivatives as of March 31, 2015 and December 31, 2014. All liability amounts are reported in other long-term liabilities (in thousands):
				March 31, 2015						December 31, 2014
		Balance Sheet		Notional			Liability			Notional		Liability
		Classification		amount						amount
	Derivatives in a liability position:
	Interest rate contracts	Other long-term liabilities		$	1,420,000		$	(26,929	)	$	1,420,000	$	(19,446	)
	Total designated derivatives			$	1,420,000		$	(26,929	)	$	1,420,000	$	(19,446	)
Schedule of the effect of derivatives on the condensed consolidated statements of operations and comprehensive (loss) income
	The table below presents the effect of our derivatives on the consolidated condensed statements of operations and comprehensive loss for the three months ended March 31, 2015 and 2014 (in thousands):
		Three Months Ended
	Derivatives in Cash Flow Hedging Relationships (Interest Rate Contracts)	March 31,			March 31,
		2015			2014
	Amount of loss recognized in other comprehensive loss on derivatives	$	(6,238	)	$	(4,247	)
	Amount of loss recognized in other expense, net on derivatives (ineffective portion)	(56		)	—
	Amount of loss recognized in other expense, net on derivatives (no longer qualify for hedge accounting)	(489		)	—
	Amount of loss reclassified from accumulated other comprehensive loss into interest expense, net on derivatives	(17		)	—

Net_Income_Loss_Per_Share_Tabl

Net Income (Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2015
Net Income (Loss) Per Share
Schedule of weighted average basic and diluted common shares
	The following table reconciles the basic to diluted weighted average shares outstanding (in thousands):
		Three Months Ended
		March 31,	March 31,
		2015	2014
	Basic weighted average common shares outstanding	59,815	40,268
	Effect of dilutive stock options and RSAs	2,962	—
	Diluted weighted average common shares outstanding	62,777	40,268
	Anti-dilutive shares	20	356

Basis_of_Presentation_Details

Basis of Presentation (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2015
Basis of Presentation
Debt issuance costs	$26.20

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (Recurring, USD $)	Mar. 31, 2015
In Thousands, unless otherwise specified
Total
Liabilities:
Total	$28,929
Total | Interest rate contracts
Liabilities:
Total	26,929
Total | Contingent consideration
Liabilities:
Total	2,000
Level 2
Liabilities:
Total	26,929
Level 2 | Interest rate contracts
Liabilities:
Total	26,929
Level 3
Liabilities:
Total	2,000
Level 3 | Contingent consideration
Liabilities:
Total	$2,000

Fair_Value_Measurements_Detail1

Fair Value Measurements (Details 2) (Level 3, USD $)	3 Months Ended
	Mar. 31, 2015
Nonrecurring
Assets fair value measurements
Assets fair value	$1,590,300,000
Goodwill	1,014,900,000
Identifiable intangible assets	575,400,000
Contingent consideration | Recurring
Changes in the fair value of the Company's Level 3 financial liabilities
Beginning balance	1,911,000
Revaluations included in earnings	89,000
Ending balance	$2,000,000

Concentration_of_Credit_Risk_D

Concentration of Credit Risk (Details) (Customer Concentration Risk)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Service revenue | Customer A
Concentration risk
Concentration risk percentage	11.40%
Accounts receivable and unbilled receivables | Customer A
Concentration risk
Concentration risk percentage	13.20%	14.40%
Accounts receivable and unbilled receivables | Customer B
Concentration risk
Concentration risk percentage		10.20%

Accounts_Receivable_and_Unbill2

Accounts Receivable and Unbilled Services (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Accounts Receivable and Unbilled Services
Accounts receivable	$242,606	$235,058
Unbilled services	132,832	105,542
Total accounts receivable, gross	375,438	340,600
Less allowance for doubtful accounts	-3,084	-1,819
Total accounts receivable and unbilled services, net	$372,354	$338,781

Goodwill_and_Intangible_Assets2

Goodwill and Intangible Assets (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Changes in carrying amount of goodwill
Balance at the beginning of the period	$1,033,999,000
Currency translation	-19,117,000
Balance at the end of the period	1,014,882,000
Accumulated impairment charges	0
Intangible Assets
Total finite-lived intangible assets, gross	559,903,000		573,322,000
Accumulated amortization	-102,519,000		-90,422,000
Total finite-lived intangible assets, net	457,384,000		482,900,000
Trade names (indefinite-lived)	118,010,000		118,010,000
Total intangible assets, net	575,394,000		600,910,000
Amortization expense	14,100,000	18,700,000
2015 (remaining)	41,911,000
2016	45,134,000
2017	35,415,000
2018	31,021,000
2019	25,534,000
2020 and thereafter	278,369,000
Total finite-lived intangible assets, net	457,384,000		482,900,000
Customer relationships
Intangible Assets
Total finite-lived intangible assets, gross	382,576,000		393,053,000
Customer backlog
Intangible Assets
Total finite-lived intangible assets, gross	127,905,000		130,833,000
Trade names
Intangible Assets
Total finite-lived intangible assets, gross	25,757,000		25,762,000
Patient list and other intangibles
Intangible Assets
Total finite-lived intangible assets, gross	20,900,000		20,900,000
Non-competition agreements
Intangible Assets
Total finite-lived intangible assets, gross	2,765,000		2,774,000
EDS
Changes in carrying amount of goodwill
Balance at the end of the period	$123,400,000

LongTerm_Debt_Details

Long-Term Debt (Details) (USD $)	3 Months Ended	0 Months Ended		3 Months Ended
	Mar. 31, 2014	Mar. 24, 2014	Mar. 23, 2014	Mar. 31, 2015	Dec. 31, 2014
Current borrowings and long-term debt
Long-term debt, gross				$939,000,000	$954,000,000
Less debt discount				-5,152,000	-5,463,000
Total long-term debt, net				933,848,000	948,537,000
Principal payments on long-term debt
2020 and thereafter				939,000,000
Total				939,000,000	954,000,000
Estimated fair value of borrowings				965,600,000	966,000,000
Loss on extinguishment of debt	1,384,000
Term loans, first lien
Current borrowings and long-term debt
Long-term debt, gross				714,000,000	729,000,000
Principal payments on long-term debt
Total				714,000,000	729,000,000
Applicable margin on variable rate basis (as a percent)		3.50%	4.00%
Loss on extinguishment of debt	1,300,000
Expenses incurred in repricing transaction	100,000
Revolving credit facilities
Principal payments on long-term debt
Maximum borrowing capacity				125,000,000
Variable rate basis				LIBOR
Commitment fee (as a percent)				0.50%
Step-down commitment fee based upon achievement of a certain leverage ratio (as a percent)				0.38%
Outstanding borrowings				0	0
Outstanding letters of credit				5,000,000	5,100,000
Senior notes
Current borrowings and long-term debt
Long-term debt, gross				225,000,000	225,000,000
Principal payments on long-term debt
Total				$225,000,000	$225,000,000

Stockholders_Equity_Details

Stockholders' Equity (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Stockholders' Equity
Authorized shares (in shares)	1,000,000,000	1,000,000,000
Par value of share (in dollars per share)	$0.01	$0.01

StockBased_Compensation_Detail

Stock-Based Compensation (Details 1) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Stock Options and Restricted Stock Awards
Stock-based compensation
Total stock-based compensation expense	$775,000	$892,000
Stock options
Stock-based compensation
Stock options granted (in shares)	385,000	0
Fair value of stock options at grant date	3,900,000
Restricted Stock Awards
Stock-based compensation
Restricted stock awards granted (in shares)	3,624	0
Fair value of restricted stock awards at grant date	100,000
Direct costs | Stock Options and Restricted Stock Awards
Stock-based compensation
Total stock-based compensation expense	175,000	142,000
Selling, general, and administrative expenses | Stock Options and Restricted Stock Awards
Stock-based compensation
Total stock-based compensation expense	$600,000	$750,000

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Income Taxes
Effective income tax rate (as a percent)	30.70%	39.10%
U.S. statutory rate (as a percent)	35.00%
Liability for unrecognized tax benefits	$14.70
Amount of gross unrecognized tax benefits that will change in the next 12 months as a result of pending audit settlements or statute of limitations expirations	$0.40

Commitments_and_Contingencies_

Commitments and Contingencies (Details) (Tax related claim on export of services provided, USD $)	Mar. 31, 2015
In Millions, unless otherwise specified
Commitments and Contingencies
Amount of tax claimed to be due in litigation	$4.40
Other assets
Commitments and Contingencies
Deposit made to Brazilian court in tax litigation	$4.40

Restructuring_Details

Restructuring (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2012
		employee
Components of the restructuring charges
Balance at the beginning of the period	$753,000
Foreign exchange adjustment	-79,000
Balance at the end of the period	674,000
European Restructuring
Restructuring
Number of employees terminated		75
Components of the restructuring charges
Balance at the beginning of the period	753,000
Foreign exchange adjustment	-79,000
Balance at the end of the period	674,000
European Restructuring | Accrued expenses
Restructuring
Total cost incurred	$700,000

Derivatives_Details

Derivatives (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014	Oct. 02, 2013
Interest rate contracts
Derivative Gain (Loss)
Amount of loss recognized in other comprehensive loss income on derivatives	($6,238,000)	($4,247,000)
Amount of loss recognized in other expense, net on derivatives (ineffective portion)	-56,000
Amount of loss recognized in other expense, net on derivatives (no longer qualify for hedge accounting)	-489,000
Amount of loss reclassified from accumulated other comprehensive loss into interest expense, net on derivatives	-17,000
Unrealized losses expected to be reclassified out of accumulated other comprehensive (loss) income into interest expense	200,000
Estimated period for the anticipated transfer of (loss) income from accumulated other comprehensive income into earnings	12 months
Interest rate contracts | Designated as hedging instruments
Derivatives in a liability position:
Notional amount	1,420,000,000		1,420,000,000
Liability	-26,929,000		-19,446,000
Interest rate contracts | Designated as hedging instruments | Other long-term liabilities
Derivatives in a liability position:
Notional amount	1,420,000,000		1,420,000,000
Liability	-26,929,000		-19,446,000
Interest Rate Swap
Derivatives
Notional amount				620,000,000
Interest rate swap maturity, low end of range	1 year
Interest rate swap maturity, high end of range	5 years
Derivatives in a liability position:
Notional amount of ineffective portion			297,500,000
Interest Rate Swap | No longer designated as hedging instrument
Derivatives
Notional amount			47,500,000
Interest Rate Cap
Derivatives
Notional amount				$800,000,000
Variable rate basis	LIBOR
Interest rate cap	4.00%

Related_Party_Transactions_Det

Related Party Transactions (Details) (KKR, USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2015	Dec. 31, 2014
Related Party Transactions
Management fees paid	$0.50
First lien term debt
Related Party Transactions
First lien term debt held by related parties		$0.80	$0.80

Net_Income_Loss_Per_Share_Deta

Net Income (Loss) Per Share (Details)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Reconciliation of basic to diluted weighted average shares outstanding
Basic weighted average common shares outstanding	59,815	40,268
Effect of dilutive stock options and RSAs	2,962
Diluted weighted average common shares outstanding	62,777	40,268
Anti-dilutive shares	20	356