Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2019 | |
Document And Entity Information [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Entity Registrant Name | ICON plc |
Entity Central Index Key | 0001060955 |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 417,604 | $ 395,851 |
Available for sale investments | 53,636 | 59,910 |
Accounts receivable, net | 407,814 | 414,791 |
Unbilled revenue | 493,114 | 362,926 |
Other receivables | 39,795 | 40,459 |
Prepayments and other current assets | 43,466 | 36,801 |
Income taxes receivable | 24,564 | 19,445 |
Total current assets | 1,479,993 | 1,330,183 |
Other Assets: | ||
Property, plant and equipment, net | 156,305 | 158,669 |
Goodwill | 877,017 | 756,260 |
Operating right-of-use assets | 107,681 | |
Other non-current assets | 16,514 | 14,525 |
Non-current income taxes receivable | 15,551 | 20,023 |
Non-current deferred tax asset | 14,900 | 13,577 |
Investments in equity-long term | 10,939 | 6,963 |
Intangible assets | 66,286 | 54,055 |
Total Assets | 2,745,186 | 2,354,255 |
Current Liabilities: | ||
Accounts payable | 20,764 | 13,288 |
Payments on account | 322,226 | 274,468 |
Other liabilities | 370,725 | 317,143 |
Income taxes payable | 15,264 | 5,724 |
Total current liabilities | 728,979 | 610,623 |
Other Liabilities: | ||
Non-current bank credit lines and loan facilities | 349,542 | 349,264 |
Non-current operating lease liabilities | 79,410 | |
Non-current other liabilities | 14,420 | 13,446 |
Non-current government grants | 803 | 877 |
Non-current income taxes payable | 17,272 | 17,551 |
Non-current deferred tax liability | 17,620 | 8,213 |
Commitments and contingencies | 0 | 0 |
Total Liabilities | 1,208,046 | 999,974 |
Shareholders' Equity: | ||
Ordinary shares, par value 6 euro cents per share; 100,000,000 shares authorized, 53,640,584 shares issued and outstanding at September 30, 2019 and 53,971,706 shares issued and outstanding at December 31, 2018 | 4,636 | 4,658 |
Additional paid‑in capital | 571,721 | 529,642 |
Other undenominated capital | 1,050 | 983 |
Accumulated other comprehensive income | (95,504) | (69,328) |
Retained earnings | 1,020,386 | 888,326 |
Total Shareholders' Equity | 1,502,289 | 1,354,281 |
Redeemable noncontrolling interest | 34,851 | 0 |
Total Shareholders' Equity and Redeemable Noncontrolling Interest | 1,537,140 | 1,354,281 |
Total Liabilities, Shareholders' Equity and Redeemable Noncontrolling Interest | $ 2,745,186 | $ 2,354,255 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - € / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in EUR per share) | € 0.06 | € 0.06 |
Ordinary shares, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Ordinary shares, shares issued (in shares) | 53,640,584 | 53,971,706 |
Ordinary shares, shares outstanding (in shares) | 53,640,584 | 53,971,706 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 710,441,000 | $ 655,017,000 | $ 2,080,430,000 | $ 1,916,752,000 |
Costs and expenses: | ||||
Direct costs | 499,791,000 | 459,196,000 | 1,465,944,000 | 1,339,014,000 |
Selling, general and administrative expense | 85,449,000 | 80,819,000 | 250,564,000 | 242,670,000 |
Depreciation and amortization | 15,157,000 | 17,062,000 | 45,842,000 | 51,006,000 |
Restructuring | 0 | 0 | 0 | 12,490,000 |
Total costs and expenses | 600,397,000 | 557,077,000 | 1,762,350,000 | 1,645,180,000 |
Income from operations | 110,044,000 | 97,940,000 | 318,080,000 | 271,572,000 |
Interest income | 1,852,000 | 1,314,000 | 5,377,000 | 3,154,000 |
Interest expense | (3,393,000) | (3,201,000) | (9,946,000) | (10,298,000) |
Income before provision for income taxes | 108,503,000 | 96,053,000 | 313,511,000 | 264,428,000 |
Provision for income taxes | (13,020,000) | (11,526,000) | (37,516,000) | (29,935,000) |
Net income | 95,483,000 | 84,527,000 | 275,995,000 | 234,493,000 |
Net income attributable to noncontrolling interest | (658,000) | 0 | (1,016,000) | 0 |
Net income attributable to the Group | $ 94,825,000 | $ 84,527,000 | $ 274,979,000 | $ 234,493,000 |
Net income per Ordinary Share attributable to the Group (note 10): | ||||
Basic (USD per share) | $ 1.73 | $ 1.55 | $ 5.08 | $ 4.33 |
Diluted (USD per share) | 1.72 | 1.54 | 5.03 | 4.27 |
Adjusted net income per Ordinary Share attributable to the Group (note 10): | ||||
Adjusted basic (non-GAAP) (USD per share) | 1.76 | 1.55 | 5.10 | 4.33 |
Adjusted diluted (non-GAAP) (USD per share) | $ 1.74 | $ 1.54 | $ 5.06 | $ 4.27 |
Weighted average number of Ordinary Shares outstanding: | ||||
Basic (in shares) | 54,004,963 | 54,368,656 | 53,935,939 | 54,134,639 |
Diluted (in shares) | 54,550,672 | 54,901,404 | 54,386,066 | 54,888,151 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 275,995 | $ 234,493 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Loss on disposal of property, plant and equipment | 217 | 9 |
Depreciation expense | 34,271 | 35,432 |
Amortization of operating right-of-use assets | 22,867 | |
Amortization of intangibles | 11,571 | 15,574 |
Amortization of government grants | (33) | (35) |
Interest on short term investments | (823) | (1,094) |
Interest on non-current operating lease liability | 2,020 | |
Gain on re-measurement of financial assets | (500) | 0 |
Stock compensation expense | 21,065 | 24,974 |
Amortization of interest rate hedge | (692) | (698) |
Amortization of financing costs | 393 | 671 |
Deferred taxes | 3,179 | (1,448) |
Changes in assets and liabilities: | ||
Decrease in accounts receivable | 16,264 | 4,935 |
Increase in unbilled revenue | (126,375) | (73,648) |
Decrease in other receivables | 1,616 | 4,919 |
Increase in prepayments and other current assets | (5,862) | (8,591) |
Increase in other non-current assets | (1,999) | (323) |
Increase/(decrease) in payments on account | 42,119 | (11,567) |
Increase/(decrease) in other current liabilities | 176 | (14,422) |
Decrease in operating lease liabilities | (25,440) | |
Increase/(decrease) in other non-current liabilities | 1,647 | (589) |
Increase in income taxes payable | 6,498 | 2,215 |
Decrease in accounts payable | (78) | (3,031) |
Net cash provided by operating activities | 278,096 | 207,776 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (31,929) | (28,387) |
Purchase of subsidiary undertakings | (116,431) | (1,645) |
Cash acquired with subsidiary undertaking | 11,700 | 0 |
Purchase of available for sale investments | (16,075) | (85,866) |
Sale of available for sale investments | 23,814 | 98,857 |
Purchase of investments in equity - long term | (3,476) | 0 |
Net cash used in investing activities | (132,397) | (17,041) |
Cash flows from financing activities: | ||
Financing costs | 0 | (823) |
Proceeds from exercise of equity compensation | 21,054 | 14,930 |
Share issue costs | (9) | (13) |
Repurchase of ordinary shares | (141,573) | (56,960) |
Share repurchase costs | (103) | (46) |
Net cash used in financing activities | (120,631) | (42,912) |
Effect of exchange rate movements on cash | (3,315) | (4,461) |
Net increase in cash and cash equivalents | 21,753 | 143,362 |
Cash and cash equivalents at beginning of period | 395,851 | 282,859 |
Cash and cash equivalents at end of period | $ 417,604 | $ 426,221 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity and Comprehensive Income - 9 months ended Sep. 30, 2019 - USD ($) $ in Thousands | Total | Ordinary Shares | Additional Paid-in Capital | Other Undenominated Capital | Accumulated Other Comprehensive Income | Retained Earnings | Redeemable Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2018 | 53,971,706 | 53,971,706 | |||||
Beginning balance at Dec. 31, 2018 | $ 1,354,281 | $ 4,658 | $ 529,642 | $ 983 | $ (69,328) | $ 888,326 | |
Comprehensive income: | |||||||
Net income attributable to the group | 274,979 | 274,979 | |||||
Currency translation adjustment | (22,989) | (22,989) | |||||
Currency impact of long term funding (net of tax) | (3,138) | (3,138) | |||||
Unrealized capital gain – investments | 643 | 643 | |||||
Amortization of interest rate hedge | (692) | (692) | |||||
Total comprehensive income | 248,803 | (26,176) | 274,979 | ||||
Exercise of share options (in shares) | 317,713 | ||||||
Exercise of share options | 21,030 | $ 21 | 21,009 | ||||
Issue of restricted share units (in shares) | 351,165 | ||||||
Issue of restricted share units | 24 | $ 24 | |||||
Non-cash stock compensation expense | 21,079 | 21,079 | |||||
Share issuance costs | (9) | (9) | |||||
Share repurchase program (in shares) | (1,000,000) | ||||||
Share repurchase program | (141,573) | $ (67) | 67 | (141,573) | |||
Share repurchase costs | (103) | (103) | |||||
Noncontrolling interest adjustment to redemption amount | $ (1,243) | (1,243) | |||||
Ending balance (in shares) at Sep. 30, 2019 | 53,640,584 | 53,640,584 | |||||
Ending balance at Sep. 30, 2019 | $ 1,502,289 | $ 4,636 | $ 571,721 | $ 1,050 | $ (95,504) | $ 1,020,386 | |
Beginning balance at Dec. 31, 2018 | 0 | $ 0 | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Acquisition of redeemable noncontrolling interest | 32,592 | ||||||
Noncontrolling interest adjustment to redemption amount | 1,243 | ||||||
Net income attributable to redeemable noncontrolling interest | 1,016 | ||||||
Beginning balance at Sep. 30, 2019 | $ 34,851 | $ 34,851 |
Basis of presentation
Basis of presentation | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation These condensed consolidated financial statements which have been prepared in accordance with United States Generally Accepted Accounting Principles (“US GAAP”) have not been audited. The condensed consolidated financial statements reflect all adjustments, which are, in the opinion of management, necessary to present a fair statement of the operating results and financial position for the periods presented. The preparation of the condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures in the condensed consolidated financial statements. Actual results could differ from those estimates. The condensed consolidated financial statements should be read in conjunction with the accounting policies and notes to the consolidated financial statements included in ICON’s Form 20-F for the year ended December 31, 2018 (see note 2 - Significant accounting policies for impact of adoption of ASC 842 'Leases' ). Operating results for the nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal period ending December 31, 2019 . |
Significant accounting policies
Significant accounting policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant accounting policies | Significant accounting policies Redeemable noncontrolling interests and equity ICON has obtained a majority ownership interest in MeDiNova and included in the purchase agreement are put and call option arrangements with the noncontrolling interest holders that require (put option) or enable (call option) ICON to purchase the remaining minority ownership at a later date. ICON accounts for this minority put arrangement as temporary equity, which is presented separately as redeemable noncontrolling interest on the Condensed Consolidated Balance Sheet. This classification reflects the assessment that the instruments are contingently redeemable in accordance with ASC 480-10-S99, 'Distinguishing Liabilities from Equity.' Redeemable noncontrolling interests are accreted to their redemption value over the period from the date of issuance to the first date on which the option is exercisable. The change in the option's redemption value is recorded against retained earnings. In a computation of earnings per share, the accretion of redeemable noncontrolling interests to their redemption value is a reduction of net income attributable to the Group. Basic and diluted net income per ordinary share attributable to the Group (GAAP) includes the adjustment to reflect the accretion of the noncontrolling interest to its redemption value. This accretion adjustment has been excluded from net income when calculating adjusted net income per ordinary share attributable to the Group (non-GAAP). Leases The Company adopted ASC 842 ' Leases ', with a date of initial application of January 1, 2019. The lease accounting policy applied in preparation of the results for the three and nine months ended September 30, 2019 therefore reflect application of ASC 842. ICON adopted the standard using the cumulative-effect adjustment approach. Under this transition method, ICON has applied the new standard as at the date of initial application (i.e. January 1, 2019), without restatement of comparative period amounts. The cumulative effect of applying the new standard is recorded as an adjustment to the opening consolidated balance sheet as at the date of initial application (see note 14 - Impact of change in accounting policies for further details). The comparative information has not been adjusted and therefore continues to be reported under ASC 840 ' Leases '. The new standard requires lessees to recognize the rights and obligations resulting from virtually all leases on the balance sheet as right-of-use (ROU) assets with corresponding lease liabilities. The most significant impact of application of the new standard for ICON relates to the recognition of right-of-use assets and lease liabilities on the Condensed Consolidated Balance Sheet for operating leases for certain property, vehicles and equipment. Prior to application of ASC 842, costs in respect of operating leases were charged to the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term. Pursuant to certain practical expedients available as part of adopting ASC 842, ICON has not reassessed; whether existing or expired contracts are or contain leases, the classification of existing or expired leases, or whether unamortized initial direct costs meet the new definition of initial direct costs under ASC 842. Additionally, ICON has elected to use hindsight in determining the lease term and in assessing impairment of ROU assets, if any. ICON determines if an arrangement is a lease at inception. Finance leases, if any, are depreciated on the same basis as property, plant and equipment. At September 30, 2019 and December 31, 2018, the Group did not account for any leases as finance leases. Operating leases are included in operating right-of-use assets, other liabilities and non-current operating lease liabilities on our Condensed Consolidated Balance Sheet with lease amortization recognized on a straight-line basis over the lease term. ROU assets and lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date or date of transition. Our lease terms may also include options to extend or terminate. ICON actively reviews options to extend or terminate leases and adjusts the ROU asset and lease liability when it is reasonably certain the option will be exercized. The ROU asset is adjusted for any prepayments made at the date of commencement and any initial direct costs incurred. As most of ICON's leases do not provide an implicit rate, the discount rate used is based on the rate of traded corporate bonds available at the commencement date adjusted for country risk, liquidity and lease term. Leasehold improvements are amortized over the shorter of the depreciable lives of the corresponding fixed assets or the lease term including any applicable renewals. Certain property leases include variable lease payments resulting from periodic rent increases based on an index which are recognized as incurred on the Condensed Consolidated Statements of Operations. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue disaggregated by customer profile is as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) (in thousands) Top client $ 80,857 $ 92,280 $ 270,416 $ 254,655 Clients 2-5 176,598 173,112 512,883 502,514 Clients 6-10 91,134 94,631 247,309 287,782 Clients 11-25 134,111 106,184 399,877 329,833 Other 227,741 188,810 649,945 541,968 Total $ 710,441 $ 655,017 $ 2,080,430 $ 1,916,752 Accounts receivables and unbilled revenue are as follows: September 30, 2019 December 31, 2018 (in thousands) Contract assets: Billed services (accounts receivable) $ 412,648 $ 423,680 Unbilled services (unbilled revenue) 493,114 362,926 Accounts receivable and unbilled revenue 905,762 786,606 Allowance for doubtful accounts (4,834 ) (8,889 ) Accounts receivable and unbilled revenue, net $ 900,928 $ 777,717 Unbilled services and payments on account or unearned revenue (contract assets and liabilities) were as follows: (in thousands, except percentages) September 30, 2019 December 31, 2018 $ Change % Change Unbilled services (unbilled revenue) $ 493,114 $ 362,926 $ 130,188 35.9 % Unearned revenue (payments on account) (322,226 ) (274,468 ) (47,758 ) 17.4 % Net balance $ 170,888 $ 88,458 $ 82,430 93.2 % Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to our contracts with customers. We record assets for amounts related to performance obligations that are satisfied but not yet billed and/or collected. These assets are recorded as unbilled services and therefore contract assets rather than accounts receivables when receipt of the consideration is conditional on something other than the passage of time. Liabilities are recorded for amounts that are collected in advance of the satisfaction of performance obligations or billed in advance of the revenue being earned. Unbilled services/revenue balances arise where invoicing or billing is based on the timing of agreed milestones related to service contracts for clinical research. Contractual billing arrangements in respect of certain reimbursable expenses (principally investigators) require billing by the investigator to the Company prior to billing by the Company to the customer. Unbilled services as at September 30, 2019 increased by $130.2 million as compared to December 31, 2018 . Payments on account or unearned revenue increased by $47.8 million over the same period resulting in an increase of $82.4 million in the net balance of unbilled services and payments on account or unearned revenue between December 31, 2018 and September 30, 2019 . These fluctuations are primarily due to timing of payments and invoicing related to the Group's clinical trial management contracts. The bad debt expense recognized on the Group's receivables and unbilled services was de minimis for the three and nine months ended September 30, 2019 and September 30, 2018 . As of September 30, 2019 approximately $5.2 billion of revenue is expected to be recognized in the future in respect of unsatisfied performance obligations. The Company expects to recognize revenue on approximately 40% of the unsatisfied performance obligation over the next 12 months |
Accounts receivable, unbilled r
Accounts receivable, unbilled revenue (contract assets) and payments on account or unearned revenue (contract liabilities) | 9 Months Ended |
Sep. 30, 2019 | |
Contracts Receivable [Abstract] | |
Accounts receivable, unbilled revenue (contract assets) and payments on account or unearned revenue (contract liabilities) | Revenue Revenue disaggregated by customer profile is as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) (in thousands) Top client $ 80,857 $ 92,280 $ 270,416 $ 254,655 Clients 2-5 176,598 173,112 512,883 502,514 Clients 6-10 91,134 94,631 247,309 287,782 Clients 11-25 134,111 106,184 399,877 329,833 Other 227,741 188,810 649,945 541,968 Total $ 710,441 $ 655,017 $ 2,080,430 $ 1,916,752 Accounts receivables and unbilled revenue are as follows: September 30, 2019 December 31, 2018 (in thousands) Contract assets: Billed services (accounts receivable) $ 412,648 $ 423,680 Unbilled services (unbilled revenue) 493,114 362,926 Accounts receivable and unbilled revenue 905,762 786,606 Allowance for doubtful accounts (4,834 ) (8,889 ) Accounts receivable and unbilled revenue, net $ 900,928 $ 777,717 Unbilled services and payments on account or unearned revenue (contract assets and liabilities) were as follows: (in thousands, except percentages) September 30, 2019 December 31, 2018 $ Change % Change Unbilled services (unbilled revenue) $ 493,114 $ 362,926 $ 130,188 35.9 % Unearned revenue (payments on account) (322,226 ) (274,468 ) (47,758 ) 17.4 % Net balance $ 170,888 $ 88,458 $ 82,430 93.2 % Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to our contracts with customers. We record assets for amounts related to performance obligations that are satisfied but not yet billed and/or collected. These assets are recorded as unbilled services and therefore contract assets rather than accounts receivables when receipt of the consideration is conditional on something other than the passage of time. Liabilities are recorded for amounts that are collected in advance of the satisfaction of performance obligations or billed in advance of the revenue being earned. Unbilled services/revenue balances arise where invoicing or billing is based on the timing of agreed milestones related to service contracts for clinical research. Contractual billing arrangements in respect of certain reimbursable expenses (principally investigators) require billing by the investigator to the Company prior to billing by the Company to the customer. Unbilled services as at September 30, 2019 increased by $130.2 million as compared to December 31, 2018 . Payments on account or unearned revenue increased by $47.8 million over the same period resulting in an increase of $82.4 million in the net balance of unbilled services and payments on account or unearned revenue between December 31, 2018 and September 30, 2019 . These fluctuations are primarily due to timing of payments and invoicing related to the Group's clinical trial management contracts. The bad debt expense recognized on the Group's receivables and unbilled services was de minimis for the three and nine months ended September 30, 2019 and September 30, 2018 . As of September 30, 2019 approximately $5.2 billion of revenue is expected to be recognized in the future in respect of unsatisfied performance obligations. The Company expects to recognize revenue on approximately 40% of the unsatisfied performance obligation over the next 12 months |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Nine Months Ended Year Ended September 30, 2019 December 31, 2018 (in thousands) Opening balance $ 756,260 $ 769,058 Current period acquisitions (Note 6) 136,585 — Prior period acquisitions — 1,048 Foreign exchange movement (15,828 ) (13,846 ) Closing balance $ 877,017 $ 756,260 |
Business combinations
Business combinations | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business combinations | Business combinations Acquisitions – CRN Holdings LLC (trading as Symphony Clinical Research ("Symphony")) On September 24, 2019 a subsidiary of the Company, ICON Clinical Research LLC, acquired a 100% interest in Symphony. Symphony is a leading provider of at-home trial services and site support services. The acquisition of Symphony further enhances our site & patient services offering. The acquisition of Symphony has been accounted for as a business combination in accordance with ASC 805 ' Business Combinations' . The Company has made a provisional assessment of the fair value of assets acquired and liabilities assumed as at that date. September 24, 2019 (in thousands) Cash $ 3,295 Property, plant and equipment 581 Operating right-of-use assets 820 Goodwill* 26,957 Intangible asset** 5,842 Accounts receivable 3,940 Unbilled revenue 254 Prepayments and other current assets 133 Other receivables 36 Accounts payable (1,084 ) Payments on account (1,420 ) Other liabilities (1,347 ) Non-current lease liabilities (531 ) Net assets acquired $ 37,476 Cash outflows $ 34,976 Contingent consideration 2,500 Total consideration $ 37,476 *Goodwill represents the acquisition of an established workforce and the capability to provide at-home trial services and site support solutions. **The Company has made an initial estimate of separate intangible assets acquired of $5.8 million , principally customer relationships and order book assets. This assessment is under review and will be finalized within 12 months of the date of acquisition. Acquisitions – MeDiNova On May 23, 2019 a subsidiary of the Company, ICON Clinical Research (UK) Limited acquired a majority shareholding in MeDiNova, a site network with research sites in key markets in Europe and Africa. ICON has the right to acquire the remaining shares in the company during 2020. The vendors also have a right to sell the remaining shares to ICON during 2020. The acquisition further enhances ICON's patient recruitment capabilities in EMEA and complements ICON's existing site network in the US, PMG Research. The acquisition of MeDiNova has been accounted for as a business combination in accordance with ASC 805 ' Business Combinations' . The Company has made a provisional assessment of the fair value of assets acquired and liabilities assumed as at that date. May 23, 2019 (in thousands) Cash $ 7,719 Property, plant and equipment 670 Operating right-of-use assets 1,558 Goodwill* 82,058 Intangible asset** 5,972 Accounts receivable 3,488 Unbilled revenue 4,272 Prepayments and other current assets 406 Other receivables 819 Accounts payable (5,484 ) Payments on account (5,796 ) Other liabilities (7,052 ) Non-current lease liabilities (1,128 ) Non-current deferred tax liability (1,226 ) Net assets acquired $ 86,276 Cash outflows $ 39,282 Consideration payable 14,841 Working capital receivable (439 ) Redeemable noncontrolling interest 32,592 Total consideration (including redeemable noncontrolling interest) $ 86,276 *Goodwill represents the acquisition of an established workforce and access to a broad site network in Europe and Africa. **The Company has made an initial estimate of separate intangible assets acquired of $6.0 million , principally customer relationships, a patient database and order book assets. This assessment is under review and will be finalized within 12 months of the date of acquisition. Acquisitions – MolecularMD Corp ("MMD") On January 25, 2019 a subsidiary of the Company, ICON Laboratory Services Inc. acquired 100% of the share capital of MMD. MMD is a molecular diagnostic specialty laboratory that enables the development and commercialization of precision medicines in oncology. The consideration on acquisition was $42.2 million . The acquisition of MMD has been accounted for as a business combination in accordance with ASC 805 ' Business Combinations' . The Company has made a provisional assessment of the fair value of assets acquired and liabilities assumed as at that date. The following table summarizes the Company’s fair values of the assets acquired and liabilities assumed: January, 25 2019 (in thousands) Cash $ 686 Property, plant and equipment 1,697 Operating right-of-use assets 2,866 Goodwill* 27,570 Order backlog** 2,787 Customer list** 10,623 Accounts receivable 3,100 Unbilled revenue 2,421 Prepayments and other current assets 908 Other receivables 43 Accounts payable (1,279 ) Payments on account (540 ) Other liabilities (1,932 ) Non-current lease liabilities (2,167 ) Non-current other liabilities (1,123 ) Non-current deferred tax liability (3,487 ) Net assets acquired $ 42,173 Cash outflows $ 42,349 Working capital adjustment (176 ) Total consideration $ 42,173 *Goodwill represents the acquisition of an established workforce with experience in molecular diagnostic specialty laboratory services and commercialization of precision medicines in oncology. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Restructuring charges No restructuring charge was recognized during the nine months ended September 30, 2019 ( September 30, 2018 : $12.5 million ). Prior Period Restructuring charges A restructuring charge of $12.5 million was recognized during the year ended December 31, 2018 under a restructuring plan adopted following a review of operations. The restructuring plan reflected resource rationalization across the business to improve resource utilization, resulting in a charge of $9.7 million and office consolidation resulting in the recognition of an onerous lease obligation of $2.8 million . Workforce reductions Onerous Lease Total (in thousands) Initial restructuring charge recorded $ 9,684 $ 2,806 $ 12,490 Utilization (5,399 ) (672 ) (6,071 ) Provision at December 31, 2018 $ 4,285 $ 2,134 $ 6,419 Utilization (3,430 ) (992 ) (4,422 ) Provision at September 30, 2019 $ 855 $ 1,142 $ 1,997 A restructuring charge of $7.8 million was recognized during the year ended December 31, 2017 under a restructuring plan adopted following a review of operations. The restructuring plan reflected resource rationalization across the business to improve resource utilization. Workforce Reductions (in thousands) Total provision recognized $ 7,753 Utilized (4,656 ) Provision at December 31, 2017 $ 3,097 Utilized (1,015 ) Provision at December 31, 2018 $ 2,082 Utilized (1,445 ) Provision at September 30, 2019 $ 637 At September 30, 2019 , $ 2.2 million is included within other liabilities and $ 0.4 million within non-current other liabilities. |
Operating leases
Operating leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Operating leases | Operating leases Lease costs recorded under operating leases for the three and nine months ended September 30, 2019 were as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 (in thousands) Operating lease costs 8,713 $ 26,332 Income from sub-leases (378 ) (1,445 ) Net operating lease costs 8,335 $ 24,887 Of the total cost of $24.9 million incurred in the nine months ended September 30, 2019 , $23.0 million is recorded within selling, general and administration costs and $1.9 million is recorded within direct costs. During the three and nine months ended September 30, 2019 , the Group did no t incur any costs related to variable lease payments. The adoption of ASC 842 resulted in the recognition of operating right-of-use assets and lease liabilities of $106.5 million at January 1, 2019. Additional right-of-use assets obtained in exchange for lease obligations during the three and nine months ended September 30, 2019 totaled $7.5 million and $25.4 million , respectively. The weighted average remaining lease term and weighted-average discount rate at September 30, 2019 were 5.47 years and 2.98% , respectively. Future minimum lease payments under non-cancelable leases as of September 30, 2019 were as follows: Minimum rental payments (in thousands) Due within 1 year $ 28,107 Due between 1 and 5 years 69,656 Thereafter 18,594 Total future minimum lease payments 116,357 Lease imputed interest (8,840 ) Total $ 107,517 Operating lease liabilities are presented as current and non-current. Operating lease liabilities of $28.1 million have been included in other liabilities as at September 30, 2019 . |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes Income taxes recognized during the three and nine months ended September 30, 2019 and September 30, 2018 , comprise: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) (in thousands) Provision for income taxes $ 13,020 $ 11,526 $ 37,516 $ 31,388 Tax impact of restructuring and other items — — — (1,453 ) Provision for income taxes $ 13,020 $ 11,526 $ 37,516 $ 29,935 As at September 30, 2019 the Company maintains a $ 22.5 million liability ( December 31, 2018 : $ 22.5 million ) for unrecognized tax benefit, which is comprised of $ 21.5 million ( December 31, 2018 : $ 21.4 million ) related to items generating unrecognized tax benefits and $ 1.0 million ( December 31, 2018 : $ 1.1 million ) for interest and related penalties to such items. The Company recognizes interest accrued on unrecognized tax benefits as an additional income tax expense. The Company has analyzed the filing positions in all of the significant federal, state and foreign jurisdictions where it is required to file income tax returns, as well as open tax years in these jurisdictions. The only periods subject to examination by the major tax jurisdictions where the Company does business are 2014 through 2018 tax years. The Company does not believe that the outcome of any examination will have a material impact on its financial statements. |
Net income per ordinary share
Net income per ordinary share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net income per ordinary share | Net income per ordinary share Basic net income per ordinary share attributable to the Group has been computed by dividing net income available to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted net income per ordinary share is computed by adjusting the weighted average number of ordinary shares outstanding during the period for all potentially dilutive ordinary shares outstanding during the period and adjusting net income for any changes in income or loss that would result from the conversion of such potential ordinary shares. There is no difference in net income used for basic and diluted net income per ordinary share. Basic and diluted net income per ordinary share attributable to the Group (GAAP) includes the adjustment to reflect the accretion of the noncontrolling interest in MeDiNova to its redemption value. This accretion adjustment of $1.2 million has been excluded from net income when calculating adjusted net income per ordinary share attributable to the Group (non-GAAP). The reconciliation of the number of shares used in the computation of basic and diluted net income per ordinary share is as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Weighted average number of ordinary shares outstanding for basic net income per ordinary share 54,004,963 54,368,656 53,935,939 54,134,639 Effect of dilutive share options outstanding 545,709 532,748 450,127 753,512 Weighted average number of ordinary shares outstanding for diluted net income per ordinary share 54,550,672 54,901,404 54,386,066 54,888,151 The reconciliation between adjusted net income per Ordinary Share attributable to the Group and net income per Ordinary Share attributable to the Group is as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) (in thousands) Net income attributable to the Group $ 94,825 $ 84,527 $ 274,979 $ 234,493 Noncontrolling interest adjustment to redemption amount (1,243 ) — (1,243 ) — Net income attributable to the Group (including NCI redemption adjustment) 93,582 84,527 273,736 234,493 Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Net income per Ordinary Share attributable to the Group (including NCI redemption adjustment): Basic (GAAP) $ 1.73 $ 1.55 $ 5.08 $ 4.33 Diluted (GAAP) $ 1.72 $ 1.54 $ 5.03 $ 4.27 Adjusted net income per Ordinary Share attributable to the Group (excluding NCI redemption adjustment): Adjusted basic (non-GAAP) $ 1.76 $ 1.55 $ 5.10 $ 4.33 Adjusted diluted (non-GAAP) $ 1.74 $ 1.54 $ 5.06 $ 4.27 |
Share-based awards
Share-based awards | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based awards | Share-based awards Share Options On July 21, 2008, the Company adopted the Employee Share Option Plan 2008 (the “2008 Employee Plan”) pursuant to which the Compensation and Organization Committee of the Company’s Board of Directors may grant options to any employee, or any Director holding a salaried office or employment with the Company or a Subsidiary for the purchase of ordinary shares. On the same date, the Company also adopted the Consultants Share Option Plan 2008 (the “2008 Consultants Plan”), pursuant to which the Compensation and Organization Committee of the Company’s Board of Directors may grant options to any consultant, adviser or non-executive Director retained by the Company or any Subsidiary for the purchase of ordinary shares. On February 14, 2017, both the 2008 Employee Plan and the 2008 Consultants Plan (together the “2008 Option Plans”) were amended and restated in order to increase the number of options that can be issued under the 2008 Consultants Plan from 400,000 to 1.0 million and to extend the date for options to be granted under the 2008 Option Plans. An aggregate of 6.0 million ordinary shares have been reserved under the 2008 Employee Plan, as reduced by any shares issued or to be issued pursuant to options granted under the 2008 Consultants Plan, under which a limit of 1.0 million shares applies. Further, the maximum number of ordinary shares with respect to which options may be granted under the 2008 Employee Option Plan, during any calendar year to any employee shall be 400,000 ordinary shares. There is no individual limit under the 2008 Consultants Plan. No options may be granted under the 2008 Option Plans after February 14, 2027. Each option granted under the 2008 Option Plans will be an employee stock option, or NSO, as described in Section 422 or 423 of the Internal Revenue Code. Each grant of an option under the 2008 Options Plans will be evidenced by a Stock Option Agreement between the optionee and the Company. The exercise price will be specified in each Stock Option Agreement, however option prices will not be less than 100% of the fair market value of an ordinary share on the date the option is granted. On January 17, 2003, the Company adopted the Share Option Plan 2003 (the “2003 Share Option Plan”) pursuant to which the Compensation and Organization Committee of the Board could grant options to officers and other employees of the Company or its subsidiaries for the purchase of ordinary shares. An aggregate of 6.0 million ordinary shares were reserved under the 2003 Share Option Plan; and, in no event could the number of ordinary shares issued pursuant to options awarded under this plan exceed 10% of the outstanding shares, as defined in the 2003 Share Option Plan, at the time of the grant, unless the Board expressly determined otherwise. Further, the maximum number of ordinary shares with respect to which options could be granted under the 2003 Share Option Plan during any calendar year to any employee was 400,000 ordinary shares. The 2003 Share Option Plan expired on January 17, 2013. No new options may be granted under this plan. Share option awards are granted with an exercise price equal to the market price of the Company’s shares at date of grant. Prior to 2018, share options typically vest over a period of five years from date of grant and expire eight years from date of grant. Share options granted to non-executive directors during 2018 vest over 12 months and expire eight years from the date of grant. The maximum contractual term of options outstanding at September 30, 2019 is eight years . The following table summarizes option activity for the nine months ended September 30, 2019 : Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life Outstanding at December 31, 2018 920,746 $ 74.32 $ 22.39 Granted 97,112 $ 140.13 $ 43.43 Exercised (317,713 ) $ 66.19 $ 19.93 Forfeited (28,060 ) $ 88.38 $ 26.82 Outstanding at September 30, 2019 672,085 $ 87.08 $ 26.41 4.97 Exercisable at September 30, 2019 310,834 $ 67.84 $ 20.77 3.83 The Company has outstanding options with fair values ranging from $ 9.72 to $ 43.59 per option or a weighted average fair value of $ 15.60 per option. The Company issues ordinary shares for all options exercised. The total amount of fully vested share options which remained outstanding at September 30, 2019 was 310,834 . Fully vested share options at September 30, 2019 have an average remaining contractual term of 3.83 years , an average exercise price of $ 67.84 and a total intrinsic value of $ 24.7 million . The total intrinsic value of options exercised during the nine months ended September 30, 2019 was $ 24.9 million ( September 30, 2018 : $ 32.6 million ). The following table summarizes the movement in non-vested share options for the nine months ended September 30, 2019 : Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Grant Date Fair Value Non-vested outstanding at December 31, 2018 522,823 $ 88.18 $ 26.41 Granted 97,112 $ 140.13 $ 43.43 Vested (233,861 ) $ 84.91 $ 25.68 Forfeited (24,823 ) $ 97.28 $ 29.20 Non-vested outstanding at September 30, 2019 361,251 $ 103.63 $ 31.26 Fair value of Stock Options Assumptions The weighted average fair value of options granted during the nine months ended September 30, 2019 and September 30, 2018 was calculated using the Black-Scholes option pricing model. The weighted average grant date fair values and assumptions used were as follows: Nine Months Ended September 30, 2019 September 30, 2018 Weighted average grant date fair value $ 43.43 $ 36.84 Assumptions: Expected volatility 30 % 30 % Dividend yield — % — % Risk-free interest rate 2.55 % 2.73 % Expected life 5 years 5 years Expected volatility is based on the historical volatility of our common stock over a period equal to the expected term of the options; the expected life represents the weighted average period of time that options granted are expected to be outstanding given consideration to vesting schedules and our historical experience of past vesting and termination patterns. The risk-free rate is based on the U.S. government zero-coupon bonds yield curve in effect at time of the grant for periods corresponding with the expected life of the option. Restricted Share Units and Performance Share Units On July 21, 2008, the Company adopted the 2008 Employees Restricted Share Unit Plan (the “2008 RSU Plan”) pursuant to which the Compensation and Organization Committee of the Company’s Board of Directors may select any employee, or any Director holding a salaried office or employment with the Company, or a Subsidiary to receive an award under the plan. An aggregate of 1.0 million ordinary shares have been reserved for issuance under the 2008 RSU Plan. On April 23, 2013, the Company adopted the 2013 Employees Restricted Share Unit and Performance Share Unit Plan (the “2013 RSU Plan”) pursuant to which the Compensation and Organization Committee of the Company’s Board of Directors may select any employee, or any Director holding a salaried office or employment with the Company, or a Subsidiary to receive an award under the plan. On May 11, 2015, the 2013 RSU Plan was amended and restated in order to increase the number of shares that can be issued under the RSU Plan by 2.5 million shares. Accordingly, an aggregate of 4.1 million ordinary shares have been reserved for issuance under the 2013 RSU Plan. The awards are at par value and vest over a service period. On April 30 2019, the Company approved the 2019 Consultants and Directors Restricted Share Unit Plan (the “2019 Consultants RSU Plan”), which was effective as of May 16, 2019, pursuant to which the Compensation and Organization Committee of the Company’s Board of Directors may select any consultant, adviser or non-executive Director retained by the Company, or a Subsidiary to receive an award under the plan. 250,000 ordinary shares have been reserved for issuance under the 2019 Consultants RSU Plan. The awards are at par value and vest over a service period. Awards granted to non-executive directors in May 2019 vest over twelve months. The Company has awarded RSUs and PSUs to certain key individuals of the Group. The following table summarizes RSU and PSU activity for the nine months ended September 30, 2019 : PSU Outstanding Number of Shares PSU Weighted Average Grant Date Fair Value PSU Weighted Average Remaining Contractual Life RSU Outstanding Number of Shares RSU Weighted Average Grant Date Fair Value RSU Weighted Average Remaining Contractual Life Outstanding at December 31, 2018 251,053 $ 89.95 0.96 534,677 $ 89.50 1.22 Granted 60,182 $ 140.13 158,341 $ 138.24 Shares vested (118,611 ) $ 71.45 (234,395 ) $ 68.97 Forfeited (14,847 ) $ 90.72 (52,411 ) $ 103.61 Outstanding at September 30, 2019 177,777 $ 110.73 1.28 406,212 $ 118.52 1.66 The fair value of PSUs vested for the nine months ended September 30, 2019 totaled $8.5 million (full year 2018 : $ 14.7 million ). The fair value of RSUs vested for the nine months ended September 30, 2019 totaled $ 16.2 million (full year 2018 : $ 18.8 million ). The PSUs vest based on service and specified EPS targets over the periods 2017 – 2019, 2018 – 2020 and 2019 – 2021. Depending on the amount of EPS from 2017 to 2021 , up to an additional 76,321 PSUs may also be granted. Non-cash stock compensation expense Non-cash stock compensation expense for the three and nine months ended September 30, 2019 and September 30, 2018 has been allocated as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) (in thousands) Direct costs $ 4,535 $ 4,708 $ 11,607 $ 13,761 Selling, general and administrative 3,696 3,836 9,458 11,213 $ 8,231 $ 8,544 $ 21,065 $ 24,974 Total non-cash stock compensation expense not yet recognized at September 30, 2019 amounted to $ 50.9 million . The weighted average period over which this is expected to be recognized is 2.34 years . |
Share capital
Share capital | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Share capital | Share capital On January 8, 2019, the Company commenced a share buyback program of up to 1.0 million shares. The Company can acquire up to 10% of its outstanding ordinary shares (by way of redemption), in accordance with Irish law, the United States securities laws, and the Company’s constitutional documents through open market share acquisitions. The buyback program gives a broker authority to acquire the Company’s ordinary shares from time to time on the open market in accordance with agreed terms and limitations. The acquisition of shares pursuant to the buyback program was effected by way of redemption and cancellation of the shares, in accordance with the Constitution of the Company. During the nine months ended September 30, 2019 1.0 million ordinary shares were redeemed by the Company under this buyback program for a total consideration of $ 141.6 million . All ordinary shares that were redeemed under the buyback program were canceled in accordance with the Constitution of the Company and the nominal value of these shares transferred to an other undenominated capital reserve as required under Irish Company Law. |
Business segment information
Business segment information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Business segment information | Business segment information The Company determines and presents operating segments based on the information that is internally provided to the chief operating decision maker, the (‘CODM’) in accordance with ASC 280 'Segment Reporting' . The Company determined that the CODM was comprised of the Chief Executive Officer and the Chief Financial Officer. The Company determines and presents operating segments based on the information that is provided to the CODM. The Company operates as one single business segment, which is the provision of outsourced development services on a global basis to the pharmaceutical, biotechnology and medical devices industries. There have been no changes to the basis of segmentation or the measurement basis for the segment results in the period. The Company is a clinical research organization (“CRO”), providing outsourced development services on a global basis to the pharmaceutical, biotechnology and medical device industries. It specializes in the strategic development, management and analysis of programs that support all stages of the clinical development process - from compound selection to Phase I-IV clinical studies. The Company has the expertise and capability to conduct clinical trials in most major therapeutic areas on a global basis and has the operational flexibility to provide development services on a stand-alone basis or as part of an integrated “full service” solution. The Company has expanded predominately through internal growth together with a number of strategic acquisitions to enhance its expertise and capabilities in certain areas of the clinical development process. The Company is generally awarded projects based upon responses to requests for proposals received from companies in the pharmaceutical, biotechnology and medical device industries or work orders executed under our strategic partnership arrangements. Contracts with customers are generally entered into centrally, in most cases with ICON Clinical Research Limited (“ICON Ireland”), the Company’s principal operating subsidiary in Ireland. Revenues, which consist primarily of fees earned under these contracts, are allocated to individual entities within the Group, based on where the work is performed in accordance with the Company’s global transfer pricing model. ICON Ireland acts as the group entrepreneur under the Company’s global transfer pricing model given its role in the development and management of the group, its ownership of key intellectual property and customer relationships, its key role in the mitigation of risks faced by the group and its responsibility for maintaining the Company’s global network. ICON Ireland enters into the majority of the Company’s customer contracts. ICON Ireland remunerates other operating entities in the ICON Group on the basis of a guaranteed cost plus mark-up for the services they perform in each of their local territories. The cost plus mark-up for each ICON entity is established to ensure that each of ICON Ireland and the ICON entities that are involved in the conduct of services for customers, earn an appropriate arms-length return having regard to the assets owned, risks borne, and functions performed by each entity from these intercompany transactions. The cost plus mark up policy is reviewed annually to ensure that it is market appropriate. The geographic split of revenue disclosed for each region outside Ireland is the cost plus revenue attributable to these entities. The residual revenues of the Group, once each ICON entity has been paid its respective intercompany service fee, generally fall to be retained by ICON Ireland. As such, revenues and income from operations in Ireland are a function of this global transfer pricing model and comprise revenues of the Group after deducting the cost plus revenues attributable to the activities performed outside Ireland. The Company's areas of operation outside of Ireland include the United States, United Kingdom, Belgium, France, Germany, Italy, Spain, The Netherlands, Sweden, Turkey, Poland, Bulgaria, Portugal, Czech Republic, Latvia, Russia, Ukraine, Hungary, Israel, Romania, Canada, Mexico, Brazil, Colombia, Argentina, Chile, Peru, India, China (including Hong Kong), South Korea, Japan, Thailand, Taiwan, Singapore, The Philippines, Australia, New Zealand, South Africa and Serbia. The geographical distribution of the Company’s segment measures as at September 30, 2019 and December 31, 2018 and for the three and nine months ended September 30, 2019 and September 30, 2018 is as follows: a) The distribution of revenue by geographical area was as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) (in thousands) Ireland * $ 320,459 $ 270,709 $ 929,419 $ 765,939 Rest of Europe 98,080 91,292 282,717 283,024 U.S. 223,900 227,279 664,752 674,150 Rest of World 68,002 65,737 203,542 193,639 Total $ 710,441 $ 655,017 $ 2,080,430 $ 1,916,752 * All sales shown for Ireland are export sales. b) The distribution of income from operations including restructuring by geographical area was as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) (in thousands) Ireland $ 82,529 $ 71,435 $ 231,202 $ 190,832 Rest of Europe 10,234 7,038 21,747 23,864 U.S. 11,975 14,413 45,382 40,918 Rest of World 5,306 5,054 19,749 15,958 Total $ 110,044 $ 97,940 $ 318,080 $ 271,572 c) The distribution of income from operations excluding restructuring by geographical area was as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) (in thousands) Ireland $ 82,529 $ 71,435 $ 231,202 $ 203,322 Rest of Europe 10,234 7,038 21,747 23,864 U.S. 11,975 14,413 45,382 40,918 Rest of World 5,306 5,054 19,749 15,958 Total $ 110,044 $ 97,940 $ 318,080 $ 284,062 d) The distribution of property, plant and equipment, net, by geographical area was as follows: September 30, 2019 December 31, 2018 (in thousands) Ireland $ 99,317 $ 106,206 Rest of Europe 10,379 9,807 U.S. 24,103 25,535 Rest of World 22,506 17,121 Total $ 156,305 $ 158,669 e) The distribution of depreciation and amortization by geographical area was as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) (in thousands) Ireland $ 6,777 $ 8,053 $ 21,345 $ 23,917 Rest of Europe 1,304 1,491 3,968 4,654 U.S. 5,883 6,396 17,146 18,997 Rest of World 1,193 1,122 3,383 3,438 Total $ 15,157 $ 17,062 $ 45,842 $ 51,006 f) The distribution of total assets by geographical area was as follows: September 30, 2019 December 31, 2018 (in thousands) Ireland $ 1,166,505 $ 1,073,411 Rest of Europe 652,782 514,010 U.S. 762,376 646,512 Rest of World 163,523 120,322 Total $ 2,745,186 $ 2,354,255 |
Impact of change in accounting
Impact of change in accounting policies | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Impact of change in accounting policies | Impact of change in accounting policies The new leasing standard (ASU No. 2016-02 ' Leases ') was issued in February 2016. ASC 842 ' Leases ' supersedes the requirements in ASC 840 ' Leases ' and requires that lessees recognize rights and obligations from virtually all leases (other than leases that meet the definition of a short-term lease) on their balance sheets as right-of-use assets with corresponding lease liabilities. The ASU also provides additional guidance on how to classify leases and how to determine the lease term for accounting purposes. In July 2018, the FASB issued ASU No. 2018-11 ' Leases (Topic 842): Targeted Improvements ', which provides the option to adopt the standard retrospectively for each prior period presented, as initially set out in ASU No. 2016-02, or as of the adoption date with a cumulative-effect adjustment to the opening balance of retained earnings. ASC 842 became effective for ICON plc with effect from January 1, 2019. ICON adopted the new standard as of January 1, 2019 under the cumulative effect adjustment approach. Under this transition method, the new standard is applied from January 1, 2019 without restatement of comparative period amounts. Results for the three and nine months ended September 30, 2018 are therefore presented under the previous leasing accounting principles, ASC 840 ' Leases '. Operating lease liabilities and right-of-use assets have been recorded on the Condensed Consolidated Balance Sheet as at January 1, 2019 of $106.5 million . There is no impact of adopting ASC 842 on opening retained earnings at January 1, 2019. |
Significant accounting polici_2
Significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Redeemable noncontrolling interests and equity | Redeemable noncontrolling interests and equity ICON has obtained a majority ownership interest in MeDiNova and included in the purchase agreement are put and call option arrangements with the noncontrolling interest holders that require (put option) or enable (call option) ICON to purchase the remaining minority ownership at a later date. ICON accounts for this minority put arrangement as temporary equity, which is presented separately as redeemable noncontrolling interest on the Condensed Consolidated Balance Sheet. This classification reflects the assessment that the instruments are contingently redeemable in accordance with ASC 480-10-S99, 'Distinguishing Liabilities from Equity.' Redeemable noncontrolling interests are accreted to their redemption value over the period from the date of issuance to the first date on which the option is exercisable. The change in the option's redemption value is recorded against retained earnings. In a computation of earnings per share, the accretion of redeemable noncontrolling interests to their redemption value is a reduction of net income attributable to the Group. Basic and diluted net income per ordinary share attributable to the Group (GAAP) includes the adjustment to reflect the accretion of the noncontrolling interest to its redemption value. This accretion adjustment has been excluded from net income when calculating adjusted net income per ordinary share attributable to the Group (non-GAAP). |
Leases | Leases The Company adopted ASC 842 ' Leases ', with a date of initial application of January 1, 2019. The lease accounting policy applied in preparation of the results for the three and nine months ended September 30, 2019 therefore reflect application of ASC 842. ICON adopted the standard using the cumulative-effect adjustment approach. Under this transition method, ICON has applied the new standard as at the date of initial application (i.e. January 1, 2019), without restatement of comparative period amounts. The cumulative effect of applying the new standard is recorded as an adjustment to the opening consolidated balance sheet as at the date of initial application (see note 14 - Impact of change in accounting policies for further details). The comparative information has not been adjusted and therefore continues to be reported under ASC 840 ' Leases '. The new standard requires lessees to recognize the rights and obligations resulting from virtually all leases on the balance sheet as right-of-use (ROU) assets with corresponding lease liabilities. The most significant impact of application of the new standard for ICON relates to the recognition of right-of-use assets and lease liabilities on the Condensed Consolidated Balance Sheet for operating leases for certain property, vehicles and equipment. Prior to application of ASC 842, costs in respect of operating leases were charged to the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term. Pursuant to certain practical expedients available as part of adopting ASC 842, ICON has not reassessed; whether existing or expired contracts are or contain leases, the classification of existing or expired leases, or whether unamortized initial direct costs meet the new definition of initial direct costs under ASC 842. Additionally, ICON has elected to use hindsight in determining the lease term and in assessing impairment of ROU assets, if any. ICON determines if an arrangement is a lease at inception. Finance leases, if any, are depreciated on the same basis as property, plant and equipment. At September 30, 2019 and December 31, 2018, the Group did not account for any leases as finance leases. Operating leases are included in operating right-of-use assets, other liabilities and non-current operating lease liabilities on our Condensed Consolidated Balance Sheet with lease amortization recognized on a straight-line basis over the lease term. ROU assets and lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date or date of transition. Our lease terms may also include options to extend or terminate. ICON actively reviews options to extend or terminate leases and adjusts the ROU asset and lease liability when it is reasonably certain the option will be exercized. The ROU asset is adjusted for any prepayments made at the date of commencement and any initial direct costs incurred. As most of ICON's leases do not provide an implicit rate, the discount rate used is based on the rate of traded corporate bonds available at the commencement date adjusted for country risk, liquidity and lease term. Leasehold improvements are amortized over the shorter of the depreciable lives of the corresponding fixed assets or the lease term including any applicable renewals. Certain property leases include variable lease payments resulting from periodic rent increases based on an index which are recognized as incurred on the Condensed Consolidated Statements of Operations. ICON accounts for lease and non-lease components separately with lease components flowing through the Condensed Consolidated Balance Sheet and non-lease components expensed directly to the Condensed Consolidated Statements of Operations. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Revenue disaggregated by customer profile is as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) (in thousands) Top client $ 80,857 $ 92,280 $ 270,416 $ 254,655 Clients 2-5 176,598 173,112 512,883 502,514 Clients 6-10 91,134 94,631 247,309 287,782 Clients 11-25 134,111 106,184 399,877 329,833 Other 227,741 188,810 649,945 541,968 Total $ 710,441 $ 655,017 $ 2,080,430 $ 1,916,752 |
Accounts receivable, unbilled_2
Accounts receivable, unbilled revenue (contract assets) and payments on account or unearned revenue (contract liabilities) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Contracts Receivable [Abstract] | |
Schedule of Contracts with Customers, Asset and Liabilities | Accounts receivables and unbilled revenue are as follows: September 30, 2019 December 31, 2018 (in thousands) Contract assets: Billed services (accounts receivable) $ 412,648 $ 423,680 Unbilled services (unbilled revenue) 493,114 362,926 Accounts receivable and unbilled revenue 905,762 786,606 Allowance for doubtful accounts (4,834 ) (8,889 ) Accounts receivable and unbilled revenue, net $ 900,928 $ 777,717 Unbilled services and payments on account or unearned revenue (contract assets and liabilities) were as follows: (in thousands, except percentages) September 30, 2019 December 31, 2018 $ Change % Change Unbilled services (unbilled revenue) $ 493,114 $ 362,926 $ 130,188 35.9 % Unearned revenue (payments on account) (322,226 ) (274,468 ) (47,758 ) 17.4 % Net balance $ 170,888 $ 88,458 $ 82,430 93.2 % |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Nine Months Ended Year Ended September 30, 2019 December 31, 2018 (in thousands) Opening balance $ 756,260 $ 769,058 Current period acquisitions (Note 6) 136,585 — Prior period acquisitions — 1,048 Foreign exchange movement (15,828 ) (13,846 ) Closing balance $ 877,017 $ 756,260 |
Business combinations (Tables)
Business combinations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Summary of Estimates of Fair Values of Assets Acquired and Liabilities Assumed | May 23, 2019 (in thousands) Cash $ 7,719 Property, plant and equipment 670 Operating right-of-use assets 1,558 Goodwill* 82,058 Intangible asset** 5,972 Accounts receivable 3,488 Unbilled revenue 4,272 Prepayments and other current assets 406 Other receivables 819 Accounts payable (5,484 ) Payments on account (5,796 ) Other liabilities (7,052 ) Non-current lease liabilities (1,128 ) Non-current deferred tax liability (1,226 ) Net assets acquired $ 86,276 Cash outflows $ 39,282 Consideration payable 14,841 Working capital receivable (439 ) Redeemable noncontrolling interest 32,592 Total consideration (including redeemable noncontrolling interest) $ 86,276 *Goodwill represents the acquisition of an established workforce and access to a broad site network in Europe and Africa. **The Company has made an initial estimate of separate intangible assets acquired of $6.0 million January, 25 2019 (in thousands) Cash $ 686 Property, plant and equipment 1,697 Operating right-of-use assets 2,866 Goodwill* 27,570 Order backlog** 2,787 Customer list** 10,623 Accounts receivable 3,100 Unbilled revenue 2,421 Prepayments and other current assets 908 Other receivables 43 Accounts payable (1,279 ) Payments on account (540 ) Other liabilities (1,932 ) Non-current lease liabilities (2,167 ) Non-current other liabilities (1,123 ) Non-current deferred tax liability (3,487 ) Net assets acquired $ 42,173 Cash outflows $ 42,349 Working capital adjustment (176 ) Total consideration $ 42,173 *Goodwill represents the acquisition of an established workforce with experience in molecular diagnostic specialty laboratory services and commercialization of precision medicines in oncology. **The Company has made an estimate of separate intangible assets acquired, being customer relationships and order book assets. This assessment will be finalized within 12 months of the date of acquisition. September 24, 2019 (in thousands) Cash $ 3,295 Property, plant and equipment 581 Operating right-of-use assets 820 Goodwill* 26,957 Intangible asset** 5,842 Accounts receivable 3,940 Unbilled revenue 254 Prepayments and other current assets 133 Other receivables 36 Accounts payable (1,084 ) Payments on account (1,420 ) Other liabilities (1,347 ) Non-current lease liabilities (531 ) Net assets acquired $ 37,476 Cash outflows $ 34,976 Contingent consideration 2,500 Total consideration $ 37,476 *Goodwill represents the acquisition of an established workforce and the capability to provide at-home trial services and site support solutions. **The Company has made an initial estimate of separate intangible assets acquired of $5.8 million , principally customer relationships and order book assets. This assessment is under review and will be finalized within 12 months of the date of acquisition. |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Details of Movement in Restructuring Provisions Recognized | Workforce Reductions (in thousands) Total provision recognized $ 7,753 Utilized (4,656 ) Provision at December 31, 2017 $ 3,097 Utilized (1,015 ) Provision at December 31, 2018 $ 2,082 Utilized (1,445 ) Provision at September 30, 2019 $ 637 Workforce reductions Onerous Lease Total (in thousands) Initial restructuring charge recorded $ 9,684 $ 2,806 $ 12,490 Utilization (5,399 ) (672 ) (6,071 ) Provision at December 31, 2018 $ 4,285 $ 2,134 $ 6,419 Utilization (3,430 ) (992 ) (4,422 ) Provision at September 30, 2019 $ 855 $ 1,142 $ 1,997 |
Operating leases (Tables)
Operating leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease costs | Lease costs recorded under operating leases for the three and nine months ended September 30, 2019 were as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 (in thousands) Operating lease costs 8,713 $ 26,332 Income from sub-leases (378 ) (1,445 ) Net operating lease costs 8,335 $ 24,887 |
Operating lease maturity | Future minimum lease payments under non-cancelable leases as of September 30, 2019 were as follows: Minimum rental payments (in thousands) Due within 1 year $ 28,107 Due between 1 and 5 years 69,656 Thereafter 18,594 Total future minimum lease payments 116,357 Lease imputed interest (8,840 ) Total $ 107,517 |
Income taxes (Tables)
Income taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense | Income taxes recognized during the three and nine months ended September 30, 2019 and September 30, 2018 , comprise: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) (in thousands) Provision for income taxes $ 13,020 $ 11,526 $ 37,516 $ 31,388 Tax impact of restructuring and other items — — — (1,453 ) Provision for income taxes $ 13,020 $ 11,526 $ 37,516 $ 29,935 |
Net income per ordinary share (
Net income per ordinary share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Number of Shares Used in Computation of Basic and Diluted Net Income Per Ordinary Share | The reconciliation of the number of shares used in the computation of basic and diluted net income per ordinary share is as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Weighted average number of ordinary shares outstanding for basic net income per ordinary share 54,004,963 54,368,656 53,935,939 54,134,639 Effect of dilutive share options outstanding 545,709 532,748 450,127 753,512 Weighted average number of ordinary shares outstanding for diluted net income per ordinary share 54,550,672 54,901,404 54,386,066 54,888,151 |
Reconciliation of Adjusted Net Income per Ordinary Share and Net Income per Ordinary Share | The reconciliation between adjusted net income per Ordinary Share attributable to the Group and net income per Ordinary Share attributable to the Group is as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) (in thousands) Net income attributable to the Group $ 94,825 $ 84,527 $ 274,979 $ 234,493 Noncontrolling interest adjustment to redemption amount (1,243 ) — (1,243 ) — Net income attributable to the Group (including NCI redemption adjustment) 93,582 84,527 273,736 234,493 Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Net income per Ordinary Share attributable to the Group (including NCI redemption adjustment): Basic (GAAP) $ 1.73 $ 1.55 $ 5.08 $ 4.33 Diluted (GAAP) $ 1.72 $ 1.54 $ 5.03 $ 4.27 Adjusted net income per Ordinary Share attributable to the Group (excluding NCI redemption adjustment): Adjusted basic (non-GAAP) $ 1.76 $ 1.55 $ 5.10 $ 4.33 Adjusted diluted (non-GAAP) $ 1.74 $ 1.54 $ 5.06 $ 4.27 |
Share-based awards (Tables)
Share-based awards (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of share option activity | The following table summarizes option activity for the nine months ended September 30, 2019 : Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life Outstanding at December 31, 2018 920,746 $ 74.32 $ 22.39 Granted 97,112 $ 140.13 $ 43.43 Exercised (317,713 ) $ 66.19 $ 19.93 Forfeited (28,060 ) $ 88.38 $ 26.82 Outstanding at September 30, 2019 672,085 $ 87.08 $ 26.41 4.97 Exercisable at September 30, 2019 310,834 $ 67.84 $ 20.77 3.83 |
Schedule of movement in non-vested share options | The following table summarizes the movement in non-vested share options for the nine months ended September 30, 2019 : Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Grant Date Fair Value Non-vested outstanding at December 31, 2018 522,823 $ 88.18 $ 26.41 Granted 97,112 $ 140.13 $ 43.43 Vested (233,861 ) $ 84.91 $ 25.68 Forfeited (24,823 ) $ 97.28 $ 29.20 Non-vested outstanding at September 30, 2019 361,251 $ 103.63 $ 31.26 |
Schedule of weighted average fair values and assumptions used | The weighted average grant date fair values and assumptions used were as follows: Nine Months Ended September 30, 2019 September 30, 2018 Weighted average grant date fair value $ 43.43 $ 36.84 Assumptions: Expected volatility 30 % 30 % Dividend yield — % — % Risk-free interest rate 2.55 % 2.73 % Expected life 5 years 5 years |
Schedule of RSU and PSU activity | The following table summarizes RSU and PSU activity for the nine months ended September 30, 2019 : PSU Outstanding Number of Shares PSU Weighted Average Grant Date Fair Value PSU Weighted Average Remaining Contractual Life RSU Outstanding Number of Shares RSU Weighted Average Grant Date Fair Value RSU Weighted Average Remaining Contractual Life Outstanding at December 31, 2018 251,053 $ 89.95 0.96 534,677 $ 89.50 1.22 Granted 60,182 $ 140.13 158,341 $ 138.24 Shares vested (118,611 ) $ 71.45 (234,395 ) $ 68.97 Forfeited (14,847 ) $ 90.72 (52,411 ) $ 103.61 Outstanding at September 30, 2019 177,777 $ 110.73 1.28 406,212 $ 118.52 1.66 |
Schedule of non-cash stock compensation expense | Non-cash stock compensation expense for the three and nine months ended September 30, 2019 and September 30, 2018 has been allocated as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) (in thousands) Direct costs $ 4,535 $ 4,708 $ 11,607 $ 13,761 Selling, general and administrative 3,696 3,836 9,458 11,213 $ 8,231 $ 8,544 $ 21,065 $ 24,974 |
Business segment information (T
Business segment information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Distribution of Revenue by Geographical Area | The distribution of revenue by geographical area was as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) (in thousands) Ireland * $ 320,459 $ 270,709 $ 929,419 $ 765,939 Rest of Europe 98,080 91,292 282,717 283,024 U.S. 223,900 227,279 664,752 674,150 Rest of World 68,002 65,737 203,542 193,639 Total $ 710,441 $ 655,017 $ 2,080,430 $ 1,916,752 * All sales shown for Ireland are export sales. |
Distribution of Income from Operations by Geographical Area | The distribution of income from operations including restructuring by geographical area was as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) (in thousands) Ireland $ 82,529 $ 71,435 $ 231,202 $ 190,832 Rest of Europe 10,234 7,038 21,747 23,864 U.S. 11,975 14,413 45,382 40,918 Rest of World 5,306 5,054 19,749 15,958 Total $ 110,044 $ 97,940 $ 318,080 $ 271,572 c) The distribution of income from operations excluding restructuring by geographical area was as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) (in thousands) Ireland $ 82,529 $ 71,435 $ 231,202 $ 203,322 Rest of Europe 10,234 7,038 21,747 23,864 U.S. 11,975 14,413 45,382 40,918 Rest of World 5,306 5,054 19,749 15,958 Total $ 110,044 $ 97,940 $ 318,080 $ 284,062 |
Distribution of Property, Plant and Equipment, Net, by Geographical Area | The distribution of property, plant and equipment, net, by geographical area was as follows: September 30, 2019 December 31, 2018 (in thousands) Ireland $ 99,317 $ 106,206 Rest of Europe 10,379 9,807 U.S. 24,103 25,535 Rest of World 22,506 17,121 Total $ 156,305 $ 158,669 |
Distribution of Depreciation and Amortization by Geographical Area | The distribution of depreciation and amortization by geographical area was as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) (in thousands) Ireland $ 6,777 $ 8,053 $ 21,345 $ 23,917 Rest of Europe 1,304 1,491 3,968 4,654 U.S. 5,883 6,396 17,146 18,997 Rest of World 1,193 1,122 3,383 3,438 Total $ 15,157 $ 17,062 $ 45,842 $ 51,006 |
Distribution of Total Assets by Geographical Area | The distribution of total assets by geographical area was as follows: September 30, 2019 December 31, 2018 (in thousands) Ireland $ 1,166,505 $ 1,073,411 Rest of Europe 652,782 514,010 U.S. 762,376 646,512 Rest of World 163,523 120,322 Total $ 2,745,186 $ 2,354,255 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 710,441 | $ 655,017 | $ 2,080,430 | $ 1,916,752 |
Top client | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 80,857 | 92,280 | 270,416 | 254,655 |
Clients 2-5 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 176,598 | 173,112 | 512,883 | 502,514 |
Clients 6-10 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 91,134 | 94,631 | 247,309 | 287,782 |
Clients 11-25 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 134,111 | 106,184 | 399,877 | 329,833 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 227,741 | $ 188,810 | $ 649,945 | $ 541,968 |
Accounts receivable, unbilled_3
Accounts receivable, unbilled revenue (contract assets) and payments on account or unearned revenue (contract liabilities) - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Contracts Receivable [Abstract] | ||
Billed services (accounts receivable) | $ 412,648 | $ 423,680 |
Unbilled services (unbilled revenue) | 493,114 | 362,926 |
Accounts receivable and unbilled revenue | 905,762 | 786,606 |
Allowance for doubtful accounts | (4,834) | (8,889) |
Accounts receivable and unbilled revenue, net | 900,928 | 777,717 |
Unearned revenue (payments on account) | (322,226) | (274,468) |
Net balance | 170,888 | $ 88,458 |
Change in unbilled services (unbilled revenue) | 130,188 | |
Change in unearned revenue (payments on account) | (47,758) | |
Change in net balance | $ 82,430 | |
Change in unbilled services (unbilled revenue), percent | 35.90% | |
Change in unearned revenue (payments on account), percent | 17.40% | |
Change in net balance, percent | 93.20% |
Accounts receivable, unbilled_4
Accounts receivable, unbilled revenue (contract assets) and payments on account or unearned revenue (contract liabilities) - Revenue Remaining Performance Obligations (Details) $ in Billions | Sep. 30, 2019USD ($) |
Contracts Receivable [Abstract] | |
Revenue, remaining performance obligation | $ 5.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percent | 40.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Opening balance | $ 756,260 | $ 769,058 |
Current period acquisitions (Note 6) | 136,585 | 0 |
Prior period acquisitions | 0 | 1,048 |
Foreign exchange movement | (15,828) | (13,846) |
Closing balance | $ 877,017 | $ 756,260 |
Business combinations - Acquisi
Business combinations - Acquisitions - Symphony Clinical Research (Details) - USD ($) $ in Thousands | Sep. 24, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 877,017 | $ 756,260 | $ 769,058 | ||
Cash outflows | $ 116,431 | $ 1,645 | |||
Symphony | |||||
Business Acquisition [Line Items] | |||||
Percentage of share capital acquired | 100.00% | ||||
Cash | $ 3,295 | ||||
Property, plant and equipment | 581 | ||||
Operating right-of-use assets | 820 | ||||
Goodwill | 26,957 | ||||
Intangible asset | 5,842 | ||||
Accounts receivable | 3,940 | ||||
Unbilled revenue | 254 | ||||
Prepayments and other current assets | 133 | ||||
Other receivables | 36 | ||||
Accounts payable | (1,084) | ||||
Payments on account | (1,420) | ||||
Other liabilities | (1,347) | ||||
Non-current lease liabilities | (531) | ||||
Net assets acquired | 37,476 | ||||
Cash outflows | 34,976 | ||||
Contingent consideration | 2,500 | ||||
Total consideration | $ 37,476 |
Business combinations - Acqui_2
Business combinations - Acquisitions - MeDiNova (Details) - USD ($) $ in Thousands | May 23, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 877,017 | $ 756,260 | $ 769,058 | ||
Cash outflows | $ 116,431 | $ 1,645 | |||
MeDiNova | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 7,719 | ||||
Property, plant and equipment | 670 | ||||
Operating right-of-use assets | 1,558 | ||||
Goodwill | 82,058 | ||||
Intangible asset | 5,972 | ||||
Accounts receivable | 3,488 | ||||
Unbilled revenue | 4,272 | ||||
Prepayments and other current assets | 406 | ||||
Other receivables | 819 | ||||
Accounts payable | (5,484) | ||||
Payments on account | (5,796) | ||||
Other liabilities | (7,052) | ||||
Non-current lease liabilities | (1,128) | ||||
Non-current deferred tax liability | (1,226) | ||||
Net assets acquired | 86,276 | ||||
Cash outflows | 39,282 | ||||
Consideration payable | 14,841 | ||||
Working capital receivable | (439) | ||||
Redeemable noncontrolling interest | 32,592 | ||||
Total consideration (including redeemable noncontrolling interest) | $ 86,276 |
Business combinations - Acqui_3
Business combinations - Acquisitions - MolecularMD Corp (Details) - USD ($) $ in Thousands | Jan. 25, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 877,017 | $ 756,260 | $ 769,058 | ||
Cash outflows | $ 116,431 | $ 1,645 | |||
MolecularMD Corp | |||||
Business Acquisition [Line Items] | |||||
Percentage of share capital acquired | 100.00% | ||||
Cash | $ 686 | ||||
Property, plant and equipment | 1,697 | ||||
Operating right-of-use assets | 2,866 | ||||
Goodwill | 27,570 | ||||
Accounts receivable | 3,100 | ||||
Unbilled revenue | 2,421 | ||||
Prepayments and other current assets | 908 | ||||
Other receivables | 43 | ||||
Accounts payable | (1,279) | ||||
Payments on account | (540) | ||||
Other liabilities | (1,932) | ||||
Non-current lease liabilities | (2,167) | ||||
Non-current other liabilities | (1,123) | ||||
Non-current deferred tax liability | (3,487) | ||||
Net assets acquired | 42,173 | ||||
Cash outflows | 42,349 | ||||
Working capital adjustment | (176) | ||||
Total consideration | 42,173 | ||||
Order backlog | MolecularMD Corp | |||||
Business Acquisition [Line Items] | |||||
Intangible asset | 2,787 | ||||
Customer list | MolecularMD Corp | |||||
Business Acquisition [Line Items] | |||||
Intangible asset | $ 10,623 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 0 | $ 0 | $ 0 | $ 12,490,000 | ||
Other liabilities | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve, current | 2,200,000 | 2,200,000 | ||||
Non-current other liabilities | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve, noncurrent | $ 400,000 | $ 400,000 | ||||
Resource Rationalizations 2018 | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 12,490,000 | |||||
Resource Rationalizations 2018 | Workforce Reduction | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 9,684,000 | |||||
Resource Rationalizations 2018 | Onerous Lease | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 2,806,000 | |||||
Resource Rationalizations 2017 | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 7,800,000 | |||||
Resource Rationalizations 2017 | Workforce Reduction | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 7,753,000 |
Restructuring - 2018 Restructur
Restructuring - 2018 Restructuring Plan (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | $ 0 | $ 0 | $ 0 | $ 12,490,000 | |
Resource Rationalizations 2018 | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | $ 12,490,000 | ||||
Provision, beginning balance | 6,419,000 | ||||
Utilization | (4,422,000) | (6,071,000) | |||
Provision, ending balance | 1,997,000 | 1,997,000 | 6,419,000 | ||
Resource Rationalizations 2018 | Workforce Reduction | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | 9,684,000 | ||||
Provision, beginning balance | 4,285,000 | ||||
Utilization | (3,430,000) | (5,399,000) | |||
Provision, ending balance | 855,000 | 855,000 | 4,285,000 | ||
Resource Rationalizations 2018 | Onerous Lease | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | 2,806,000 | ||||
Provision, beginning balance | 2,134,000 | ||||
Utilization | (992,000) | (672,000) | |||
Provision, ending balance | $ 1,142,000 | $ 1,142,000 | $ 2,134,000 |
Restructuring - 2017 Restructur
Restructuring - 2017 Restructuring Plan (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||||||
Restructuring charges | $ 0 | $ 0 | $ 0 | $ 12,490,000 | ||
Resource Rationalizations 2017 | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring charges | $ 7,800,000 | |||||
Resource Rationalizations 2017 | Workforce Reduction | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring charges | 7,753,000 | |||||
Provision, beginning balance | 2,082,000 | $ 3,097,000 | $ 3,097,000 | |||
Utilized | (1,445,000) | (1,015,000) | (4,656,000) | |||
Provision, ending balance | $ 637,000 | $ 637,000 | $ 2,082,000 | $ 3,097,000 |
Operating leases - Lease Costs
Operating leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease costs | $ 8,713 | $ 26,332 |
Income from sub-leases | (378) | (1,445) |
Net operating lease costs | $ 8,335 | $ 24,887 |
Operating leases - Narrative (D
Operating leases - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total lease cost | $ 8,335,000 | $ 24,887,000 | |
Costs related to variable lease payments | 0 | 0 | |
Operating right-of-use assets | 107,681,000 | 107,681,000 | |
Operating lease liabilities | 107,517,000 | 107,517,000 | |
Right-of-use assets obtained in exchange for lease obligations | $ 7,500,000 | $ 25,400,000 | |
Weighted average remaining lease term (in years) | 5 years 5 months 19 days | 5 years 5 months 19 days | |
Weighted average discount rate | 2.98% | 2.98% | |
Other liabilities | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease liabilities | $ 28,100,000 | $ 28,100,000 | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating right-of-use assets | $ 106,500,000 | ||
Operating lease liabilities | $ 106,500,000 | ||
Selling, general and administration costs | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total lease cost | 23,000,000 | ||
Direct costs | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total lease cost | $ 1,900,000 |
Operating leases - Operating Le
Operating leases - Operating Lease Maturity (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Due within 1 year | $ 28,107 |
Due between 1 and 5 years | 69,656 |
Thereafter | 18,594 |
Total future minimum lease payments | 116,357 |
Lease imputed interest | (8,840) |
Operating lease liabilities | $ 107,517 |
Income taxes - Income Taxes Rec
Income taxes - Income Taxes Recognized During Period (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 13,020 | $ 11,526 | $ 37,516 | $ 31,388 |
Tax impact of restructuring and other items | 0 | 0 | 0 | (1,453) |
Provision for income taxes | $ 13,020 | $ 11,526 | $ 37,516 | $ 29,935 |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Liability for unrecognized tax benefit | $ 22.5 | $ 22.5 |
Items generating unrecognized tax benefits | 21.5 | 21.4 |
Interest and related penalties | $ 1 | $ 1.1 |
Net income per ordinary share -
Net income per ordinary share - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Accretion adjustment | $ 1,243 | $ 0 | $ 1,243 | $ 0 |
Net income per ordinary share_2
Net income per ordinary share - Reconciliation of Number of Shares Used in Computation of Basic and Diluted Net Income Per Ordinary Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Weighted average number of ordinary shares outstanding for basic net income per ordinary share (in shares) | 54,004,963 | 54,368,656 | 53,935,939 | 54,134,639 |
Effect of dilutive share options outstanding (in shares) | 545,709 | 532,748 | 450,127 | 753,512 |
Weighted average number of ordinary shares outstanding for diluted net income per ordinary share (in shares) | 54,550,672 | 54,901,404 | 54,386,066 | 54,888,151 |
Net income per ordinary share_3
Net income per ordinary share - Reconciliation of Adjusted Net Income per Ordinary Share and Net Income per Ordinary Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to the group | $ 94,825 | $ 84,527 | $ 274,979 | $ 234,493 |
Noncontrolling interest adjustment to redemption amount | (1,243) | 0 | (1,243) | 0 |
Net income attributable to the Group (including NCI redemption adjustment) | $ 93,582 | $ 84,527 | $ 273,736 | $ 234,493 |
Net income per Ordinary Share attributable to the Group (including NCI redemption adjustment): | ||||
Basic (GAAP) (USD per share) | $ 1.73 | $ 1.55 | $ 5.08 | $ 4.33 |
Diluted (GAAP) (USD per share) | 1.72 | 1.54 | 5.03 | 4.27 |
Adjusted net income per Ordinary Share attributable to the Group (excluding NCI redemption adjustment): | ||||
Adjusted basic (non-GAAP) (USD per share) | 1.76 | 1.55 | 5.10 | 4.33 |
Adjusted diluted (non-GAAP) (USD per share) | $ 1.74 | $ 1.54 | $ 5.06 | $ 4.27 |
Share-based awards - Narrative
Share-based awards - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 14, 2017 | May 11, 2015 | Jan. 17, 2003 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | May 16, 2019 | Feb. 13, 2017 | Jul. 21, 2008 |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||||||
Non-cash stock compensation expense not yet recognized | $ 50.9 | ||||||||
Unrecognized stock-based compensation expense, weighted average period (in years) | 2 years 4 months 2 days | ||||||||
Consultants Stock Plan, 2008 Plan | |||||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||||||
Ordinary shares which have been reserved for issuance (in shares) | 1,000,000 | 400,000 | |||||||
Limit of shares issued or to be issued pursuant to options granted (in shares) | 1,000,000 | ||||||||
Employee Stock Plan, 2008 Plan | |||||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||||||
Ordinary shares which have been reserved for issuance (in shares) | 6,000,000 | ||||||||
Maximum number of shares per employee (in shares) | 400,000 | ||||||||
Option Plans 2008 | Minimum | |||||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||||||
Percentage of option price for fair value of ordinary share | 100.00% | ||||||||
Employee Stock Plan, 2003 Plan | |||||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||||||
Ordinary shares which have been reserved for issuance (in shares) | 6,000,000 | ||||||||
Maximum number of shares per employee (in shares) | 400,000 | ||||||||
Maximum number of award as percentage of shares outstanding | 10.00% | ||||||||
Employee Stock Option | |||||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||||||
Weighted average contractual term of options outstanding (in years) | 4 years 11 months 19 days | ||||||||
Weighted average fair value per option (USD per share) | $ 15.60 | ||||||||
Exercisable - number of shares | 310,834 | ||||||||
Exercisable - weighted average remaining contractual life (in years) | 3 years 9 months 29 days | ||||||||
Exercisable - weighted average exercise price (USD per share) | $ 67.84 | ||||||||
Fully vested total intrinsic value | $ 24.7 | ||||||||
Intrinsic value of option exercised | $ 24.9 | $ 32.6 | |||||||
Employee Stock Option | Minimum | |||||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||||||
Options outstanding fair value (USD per share) | $ 9.72 | ||||||||
Employee Stock Option | Maximum | |||||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||||||
Weighted average contractual term of options outstanding (in years) | 8 years | ||||||||
Options outstanding fair value (USD per share) | $ 43.59 | ||||||||
Restricted Stock Units 2008 | |||||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||||||
Ordinary shares which have been reserved for issuance (in shares) | 1,000,000 | ||||||||
Restricted Stock Units 2013 | |||||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||||||
Ordinary shares which have been reserved for issuance (in shares) | 4,100,000 | ||||||||
Ordinary shares which have been reserved for issuance (in shares) | 2,500,000 | ||||||||
Consultants Restricted Stock Units 2019 | |||||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||||||
Ordinary shares which have been reserved for issuance (in shares) | 250,000 | ||||||||
Performance Share Unit (PSUs) | |||||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||||||
Fair value of stock units vested | $ 8.5 | $ 14.7 | |||||||
Restricted Stock Units (RSUs) | |||||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||||||
Fair value of stock units vested | $ 16.2 | $ 18.8 | |||||||
PSUs Based on Service and EPS Targets | Maximum | |||||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||||||
Stock units to be granted (in shares) | 76,321 | ||||||||
Award Date, Prior to 2018 | Employee Stock Option | |||||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||||||
Shares vesting period (in years) | 5 years | ||||||||
Shares expiration period (in years) | 8 years | ||||||||
Award Date, 2018 And Thereafter | Employee Stock Option | |||||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||||||
Shares vesting period (in years) | 1 year | ||||||||
Shares expiration period (in years) | 8 years | ||||||||
Non-executive directors | Consultants Restricted Stock Units 2019 | |||||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||||||
Shares vesting period (in years) | 1 year |
Share-based awards - Summary of
Share-based awards - Summary of Stock Option Activity (Details) - Employee Stock Option - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Options Outstanding Number of Shares | ||
Outstanding at beginning of period (in shares) | 920,746 | |
Granted (in shares) | 97,112 | |
Exercised (in shares) | (317,713) | |
Forfeited (in shares) | (28,060) | |
Outstanding at end of period (in shares) | 672,085 | |
Exercisable at end of period (in shares) | 310,834 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (USD per share) | $ 74.32 | |
Granted (USD per share) | 140.13 | |
Exercised (USD per share) | 66.19 | |
Forfeited (USD per share) | 88.38 | |
Outstanding at end of period (USD per share) | 87.08 | |
Exercisable at end of period (USD per share) | 67.84 | |
Weighted Average Grant Date Fair Value | ||
Outstanding at beginning of period (USD per share) | 22.39 | |
Granted (USD per share) | 43.43 | $ 36.84 |
Exercised (USD per share) | 19.93 | |
Forfeited (USD per share) | 26.82 | |
Outstanding at end of period (USD per share) | 26.41 | |
Exercisable at end of period (USD per share) | $ 20.77 | |
Weighted Average Remaining Contractual Life | ||
Outstanding at end of period (in years) | 4 years 11 months 19 days | |
Exercisable at end of period (in years) | 3 years 9 months 29 days |
Share-based awards - Summary _2
Share-based awards - Summary of Movement in Non-Vested Share Options (Details) - Employee Stock Option - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Options Outstanding Number of Shares | ||
Non-vested outstanding at beginning of period (in shares) | 522,823 | |
Granted (in shares) | 97,112 | |
Vested (in shares) | (233,861) | |
Forfeited (in shares) | (24,823) | |
Non-vested outstanding at end of period (in shares) | 361,251 | |
Weighted Average Exercise Price | ||
Non-vested outstanding at beginning of period (USD per share) | $ 88.18 | |
Granted (USD per share) | 140.13 | |
Vested (USD per share) | 84.91 | |
Forfeited (USD per share) | 97.28 | |
Non-vested outstanding at end of period (USD per share) | 103.63 | |
Weighted Average Grant Date Fair Value | ||
Non-vested outstanding at beginning of period (USD per share) | 26.41 | |
Granted (USD per share) | 43.43 | $ 36.84 |
Vested (USD per share) | 25.68 | |
Forfeited (USD per share) | 29.20 | |
Non-vested outstanding at end of period (USD per share) | $ 31.26 |
Share-based awards - Schedule o
Share-based awards - Schedule of Weighted Average Fair Values and Assumptions Used (Details) - Employee Stock Option - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value | $ 43.43 | $ 36.84 |
Assumptions: | ||
Expected volatility | 30.00% | 30.00% |
Dividend yield | 0.00% | 0.00% |
Risk-free interest rate | 2.55% | 2.73% |
Expected life | 5 years | 5 years |
Share-based awards - Summary _3
Share-based awards - Summary of RSU and PSU Activity (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Performance Share Unit (PSUs) | ||
Outstanding Number of Shares | ||
Outstanding at beginning of period (in shares) | 251,053 | |
Granted (in shares) | 60,182 | |
Shares vested (in shares) | (118,611) | |
Forfeited (in shares) | (14,847) | |
Outstanding at end of period (in shares) | 177,777 | 251,053 |
Weighted Average Grant Date Fair Value | ||
Outstanding at beginning of period (USD per share) | $ 89.95 | |
Granted (USD per share) | 140.13 | |
Shares vested (USD per share) | 71.45 | |
Forfeited (USD per share) | 90.72 | |
Outstanding at end of period (USD per share) | $ 110.73 | $ 89.95 |
Weighted Average Remaining Contractual Life | ||
Outstanding at end of period (in years) | 1 year 3 months 10 days | 29 days |
Restricted Stock Units (RSUs) | ||
Outstanding Number of Shares | ||
Outstanding at beginning of period (in shares) | 534,677 | |
Granted (in shares) | 158,341 | |
Shares vested (in shares) | (234,395) | |
Forfeited (in shares) | (52,411) | |
Outstanding at end of period (in shares) | 406,212 | 534,677 |
Weighted Average Grant Date Fair Value | ||
Outstanding at beginning of period (USD per share) | $ 89.50 | |
Granted (USD per share) | 138.24 | |
Shares vested (USD per share) | 68.97 | |
Forfeited (USD per share) | 103.61 | |
Outstanding at end of period (USD per share) | $ 118.52 | $ 89.50 |
Weighted Average Remaining Contractual Life | ||
Outstanding at end of period (in years) | 1 year 7 months 28 days | 1 year 2 months 19 days |
Share-based awards - Schedule_2
Share-based awards - Schedule of Non-cash Stock Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | $ 8,231 | $ 8,544 | $ 21,065 | $ 24,974 |
Direct costs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | 4,535 | 4,708 | 11,607 | 13,761 |
Selling, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | $ 3,696 | $ 3,836 | $ 9,458 | $ 11,213 |
Share capital (Details)
Share capital (Details) - Buyback Program - USD ($) $ in Millions | Jan. 08, 2019 | Sep. 30, 2019 |
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchase program, number of shares authorized to be repurchased (in shares) | 1,000,000 | |
Stock repurchased (in shares) | 1,000,000 | |
Stock repurchased | $ 141.6 | |
Maximum | ||
Equity, Class of Treasury Stock [Line Items] | ||
Share repurchase program, authorized percentage | 10.00% |
Business segment information -
Business segment information - Narrative (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Business segment information _2
Business segment information - Distribution of Net Revenue by Geographical Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 710,441 | $ 655,017 | $ 2,080,430 | $ 1,916,752 |
Ireland | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 320,459 | 270,709 | 929,419 | 765,939 |
Rest of Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 98,080 | 91,292 | 282,717 | 283,024 |
U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 223,900 | 227,279 | 664,752 | 674,150 |
Rest of World | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 68,002 | $ 65,737 | $ 203,542 | $ 193,639 |
Business segment information _3
Business segment information - Distribution of Income from Operations, Including Restructuring, by Geographical Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Income from operations, including restructuring | $ 110,044 | $ 97,940 | $ 318,080 | $ 271,572 |
Ireland | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations, including restructuring | 82,529 | 71,435 | 231,202 | 190,832 |
Rest of Europe | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations, including restructuring | 10,234 | 7,038 | 21,747 | 23,864 |
U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations, including restructuring | 11,975 | 14,413 | 45,382 | 40,918 |
Rest of World | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations, including restructuring | $ 5,306 | $ 5,054 | $ 19,749 | $ 15,958 |
Business segment information _4
Business segment information - Distribution of Income from Operations, Excluding Restructuring, by Geographical Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Income from operations, excluding restructuring | $ 110,044 | $ 97,940 | $ 318,080 | $ 284,062 |
Ireland | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations, excluding restructuring | 82,529 | 71,435 | 231,202 | 203,322 |
Rest of Europe | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations, excluding restructuring | 10,234 | 7,038 | 21,747 | 23,864 |
U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations, excluding restructuring | 11,975 | 14,413 | 45,382 | 40,918 |
Rest of World | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations, excluding restructuring | $ 5,306 | $ 5,054 | $ 19,749 | $ 15,958 |
Business segment information _5
Business segment information - Distribution of Property, Plant and Equipment, Net, by Geographical Area (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 156,305 | $ 158,669 |
Ireland | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 99,317 | 106,206 |
Rest of Europe | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 10,379 | 9,807 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 24,103 | 25,535 |
Rest of World | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 22,506 | $ 17,121 |
Business segment information _6
Business segment information - Distribution of Depreciation and Amortization by Geographical Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 15,157 | $ 17,062 | $ 45,842 | $ 51,006 |
Ireland | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 6,777 | 8,053 | 21,345 | 23,917 |
Rest of Europe | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 1,304 | 1,491 | 3,968 | 4,654 |
U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 5,883 | 6,396 | 17,146 | 18,997 |
Rest of World | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 1,193 | $ 1,122 | $ 3,383 | $ 3,438 |
Business segment information _7
Business segment information - Distribution of Total Assets by Geographical Area (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Assets | $ 2,745,186 | $ 2,354,255 |
Ireland | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,166,505 | 1,073,411 |
Rest of Europe | ||
Segment Reporting Information [Line Items] | ||
Assets | 652,782 | 514,010 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Assets | 762,376 | 646,512 |
Rest of World | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 163,523 | $ 120,322 |
Impact of change in accountin_2
Impact of change in accounting policies - Narrative (Details) - USD ($) | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease liabilities | $ 107,517,000 | ||
Operating right-of-use assets | 107,681,000 | ||
Shareholders' equity | 1,502,289,000 | $ 1,354,281,000 | |
Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Shareholders' equity | $ 1,020,386,000 | $ 888,326,000 | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease liabilities | $ 106,500,000 | ||
Operating right-of-use assets | 106,500,000 | ||
Accounting Standards Update 2016-02 | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Shareholders' equity | $ 0 |