Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | FALSE |
Document Period End Date | 31-Dec-14 |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
Trading Symbol | ICLR |
Entity Registrant Name | ICON PLC |
Entity Central Index Key | 1060955 |
Current Fiscal Year End Date | -19 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 60,106,780 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $118,900 | $182,519 |
Short term investments - available for sale (Note 3) | 97,100 | 138,317 |
Accounts receivable, net | 370,956 | 342,581 |
Unbilled revenue | 146,163 | 113,239 |
Other receivables | 17,491 | 14,415 |
Deferred tax asset (Note 13) | 24,716 | 28,644 |
Prepayments and other current assets | 28,465 | 24,664 |
Income taxes receivable (Note 13) | 15,716 | 9,049 |
Total current assets | 819,507 | 853,428 |
Other Assets: | ||
Property, plant and equipment, net (Note 6) | 148,185 | 160,830 |
Goodwill (Note 4) | 463,324 | 357,523 |
Non-current other assets | 11,583 | 6,732 |
Non-current income taxes receivable (Note 13) | 15,060 | 25,172 |
Non-current deferred tax asset (Note 13) | 21,472 | 7,421 |
Intangible assets (Note 5) | 49,719 | 31,354 |
Total Assets | 1,528,850 | 1,442,460 |
Current Liabilities: | ||
Accounts payable | 2,793 | 4,594 |
Payments on account | 280,097 | 297,347 |
Other liabilities (Note 7) | 251,091 | 194,812 |
Deferred tax liability (Note 13) | 229 | |
Income taxes payable (Note 13) | 4,149 | 4,416 |
Total current liabilities | 538,359 | 501,169 |
Other Liabilities: | ||
Non-current other liabilities (Note 8) | 13,179 | 11,198 |
Non-current government grants (Note 11) | 1,116 | 1,359 |
Non-current income taxes payable (Note 13) | 12,389 | 5,288 |
Non-current deferred tax liability (Note 13) | 13,601 | 12,867 |
Shareholders' Equity: | ||
Ordinary shares, par value 6 euro cents per share; 100,000,000 shares authorized, (Note 12) 60,106,780 shares issued and outstanding at December 31, 2014 and 61,587,257 shares issued and outstanding at December 31, 2013. | 5,037 | 5,168 |
Additional paid-in capital | 327,234 | 279,572 |
Capital redemption reserve (Note 12 (a)) | 305 | 100 |
Accumulated other comprehensive income (Note 19) | -37,555 | 1,960 |
Retained earnings | 655,185 | 623,779 |
Total Shareholders' Equity | 950,206 | 910,579 |
Total Liabilities and Shareholders' Equity | $1,528,850 | $1,442,460 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (EUR €) | Dec. 31, 2014 | Dec. 31, 2013 |
Ordinary shares, par value | € 0.06 | € 0.06 |
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 |
Ordinary shares, shares issued | 60,106,780 | 61,587,257 |
Ordinary shares, shares outstanding | 60,106,780 | 61,587,257 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue: | |||
Gross revenue | $2,030,286 | $1,784,345 | $1,503,993 |
Reimbursable expenses | -526,970 | -448,287 | -388,987 |
Net revenue | 1,503,316 | 1,336,058 | 1,115,006 |
Costs and expenses: | |||
Direct costs | 903,167 | 845,413 | 717,750 |
Selling, general and administrative | 336,461 | 313,931 | 280,780 |
Depreciation and amortization | 52,542 | 46,514 | 42,823 |
Restructuring and other items, net (Note 14) | 8,796 | 9,033 | 5,636 |
Total costs and expenses | 1,300,966 | 1,214,891 | 1,046,989 |
Income from operations | 202,350 | 121,167 | 68,017 |
Interest income | 1,151 | 986 | 1,151 |
Interest expense | -785 | -1,288 | -1,947 |
Income before provision for income taxes | 202,716 | 120,865 | 67,221 |
Provision for income taxes (Note 13) | -30,248 | -18,053 | -11,801 |
Net income | $172,468 | $102,812 | $55,420 |
Net income per ordinary share: | |||
Basic | $2.80 | $1.69 | $0.92 |
Diluted | $2.73 | $1.65 | $0.92 |
Weighted average number of ordinary shares outstanding: | |||
Basic (Note 2 (u)) | 61,496,115 | 60,907,274 | 59,968,174 |
Diluted (Note 2 (u)) | 63,131,417 | 62,253,251 | 60,450,706 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $172,468 | $102,812 | $55,420 |
Currency translation adjustment | -45,038 | 10,725 | 4,494 |
Currency impact on long-term funding | 9,806 | -1,046 | 1,982 |
Tax on currency impact of long term funding | -178 | -87 | -356 |
Unrealized capital gain/(loss) - investments | 20 | -239 | 861 |
Actuarial (loss)/gain on defined benefit pension plan | -4,125 | 1,383 | 689 |
Total comprehensive income | $132,953 | $113,548 | $63,090 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity and Comprehensive Income (USD $) | Total | Ordinary Shares | Additional Paid-in Capital | Capital Redemption Reserve | Accumulated Other Comprehensive Income | Retained Earnings |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Dec. 31, 2011 | $681,544 | $5,055 | $211,549 | $44 | ($16,446) | $481,342 |
Balance (in shares) at Dec. 31, 2011 | 60,135,603 | |||||
Comprehensive Income: | ||||||
Net income | 55,420 | 55,420 | ||||
Currency translation adjustment | 4,494 | 4,494 | ||||
Currency impact on long-term funding | 1,982 | 1,982 | ||||
Tax on currency impact of long term funding | -356 | -356 | ||||
Unrealized capital gain - investments | 861 | 861 | ||||
Actuarial gain on defined benefit pension plan | 689 | 689 | ||||
Total comprehensive income | 63,090 | |||||
Exercise of share options (in shares) | 890,236 | |||||
Exercise of share options | 13,015 | 68 | 12,947 | |||
Share based compensation expense | 11,521 | 11,521 | ||||
Share issue costs | -74 | -74 | ||||
Repurchase of ordinary shares (in shares) | -738,341 | |||||
Repurchase of ordinary shares | -15,605 | -56 | 56 | -15,605 | ||
Share repurchase costs | -190 | -190 | ||||
Excess tax benefit on exercise of equity compensation | 1,274 | 1,274 | ||||
Balance at Dec. 31, 2012 | 754,575 | 5,067 | 237,217 | 100 | -8,776 | 520,967 |
Balance (in shares) at Dec. 31, 2012 | 60,287,498 | |||||
Comprehensive Income: | ||||||
Net income | 102,812 | 102,812 | ||||
Currency translation adjustment | 10,725 | 10,725 | ||||
Currency impact on long-term funding | -1,046 | -1,046 | ||||
Tax on currency impact of long term funding | -87 | -87 | ||||
Unrealized capital gain - investments | -239 | -239 | ||||
Actuarial gain on defined benefit pension plan | 1,383 | 1,383 | ||||
Total comprehensive income | 113,548 | |||||
Exercise of share options (in shares) | 1,249,759 | |||||
Exercise of share options | 26,989 | 101 | 26,888 | |||
Issue of restricted share units (in shares) | 50,000 | |||||
Issue of restricted share units | 4 | 4 | ||||
Share based compensation expense | 13,882 | 13,882 | ||||
Share issue costs | -70 | -70 | ||||
Excess tax benefit on exercise of equity compensation | 1,651 | 1,651 | ||||
Balance at Dec. 31, 2013 | 910,579 | 5,168 | 279,572 | 100 | 1,960 | 623,779 |
Balance (in shares) at Dec. 31, 2013 | 61,587,257 | 61,587,257 | ||||
Comprehensive Income: | ||||||
Net income | 172,468 | 172,468 | ||||
Currency translation adjustment | -45,038 | -45,038 | ||||
Currency impact on long-term funding | 9,806 | 9,806 | ||||
Tax on currency impact of long term funding | -178 | -178 | ||||
Unrealized capital gain - investments | 20 | 20 | ||||
Actuarial gain on defined benefit pension plan | -4,125 | -4,125 | ||||
Total comprehensive income | 132,953 | |||||
Exercise of share options (in shares) | 926,407 | |||||
Exercise of share options | 22,256 | 74 | 22,182 | |||
Issue of restricted share units (in shares) | 233,726 | |||||
Issue of restricted share units | 18 | 18 | ||||
Share based compensation expense | 23,078 | 23,078 | ||||
Share issue costs | -20 | -20 | ||||
Repurchase of ordinary shares (in shares) | -2,640,610 | |||||
Repurchase of ordinary shares | -140,030 | -205 | 205 | -140,030 | ||
Share repurchase costs | -1,032 | -1,032 | ||||
Excess tax benefit on exercise of equity compensation | 2,404 | 2,404 | ||||
Balance at Dec. 31, 2014 | $950,206 | $5,037 | $327,234 | $305 | ($37,555) | $655,185 |
Balance (in shares) at Dec. 31, 2014 | 60,106,780 | 60,106,780 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $172,468 | $102,812 | $55,420 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Loss on disposal of property, plant and equipment | 248 | 662 | 233 |
Depreciation expense | 42,200 | 38,975 | 35,210 |
Amortization of intangibles | 10,342 | 7,539 | 7,613 |
Amortization of government grants | -213 | -349 | -154 |
Stock compensation expense | 22,742 | 14,220 | 11,521 |
Deferred taxes | -7,900 | -10,583 | -10,430 |
Changes in assets and liabilities: | |||
Increase in accounts receivable | -7,032 | -37,538 | -79,155 |
(Increase)/decrease in unbilled revenue | -13,671 | -4,015 | 13,227 |
(Increase)/decrease in other receivables | -4,259 | -1,638 | 1,125 |
(Increase)/decrease in prepayments and other current assets | -3,574 | -898 | 682 |
Increase in other non current assets | -2,264 | -1,146 | -861 |
(Decrease)/increase in payments on account | -47,548 | 76,066 | 68,654 |
Increase in other current liabilities | 15,111 | 43,291 | 17,035 |
Increase in other non current liabilities | 1,283 | 899 | 189 |
Increase /(decrease) in income taxes payable | 3,021 | -5,013 | -7,916 |
(Decrease)/increase in accounts payable | -11,006 | -2,057 | 1,038 |
Net cash provided by operating activities | 169,948 | 221,227 | 113,431 |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | -32,779 | -29,488 | -30,791 |
Purchase of subsidiary undertakings and acquisition costs | -124,301 | -93,553 | -72,508 |
Cash acquired with subsidiary undertaking | 3,527 | 1,039 | 2,572 |
Sale of short term investments | 102,565 | 109,795 | 82,193 |
Purchase of short term investments | -61,328 | -172,168 | -102,575 |
Net cash used in investing activities | -112,316 | -184,375 | -121,109 |
Cash flows from financing activities: | |||
Drawdown of credit lines and facilities | 20,000 | ||
Repayment of credit lines and facilities | -20,000 | ||
Proceeds from the exercise of equity compensation | 22,274 | 26,993 | 13,015 |
Share issuance costs | -20 | -70 | -74 |
Excess tax benefit on exercise of equity compensation | 2,404 | 1,651 | 1,274 |
Repurchase of ordinary shares | -140,030 | -15,605 | |
Share repurchase costs | -1,032 | -190 | |
Receipt of government grant | 225 | 340 | |
Net cash (used in)/provided by financing activities | -116,404 | 28,799 | -1,240 |
Effect of exchange rate movements on cash | -4,847 | 2,821 | 3,728 |
Net (decrease)/increase in cash and cash equivalents | -63,619 | 68,472 | -5,190 |
Cash and cash equivalents at beginning of year | 182,519 | 114,047 | 119,237 |
Cash and cash equivalents at end of year | $118,900 | $182,519 | $114,047 |
Description_of_business
Description of business | 12 Months Ended |
Dec. 31, 2014 | |
Description of business | 1. Description of business |
ICON plc and its subsidiaries (“the Company” or “ICON”) is a contract research organization (“CRO”), providing outsourced development services on a global basis to the pharmaceutical, biotechnology and medical device industries. We specialize 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. Our vision is to be the Global CRO partner of choice in drug development by delivering best in class information, solutions and performance in clinical and outcomes research. | |
We believe that we are one of a select group of CRO’s with the expertise and capability to conduct clinical trials in most major therapeutic areas on a global basis and have the operational flexibility to provide development services on a stand-alone basis or as part of an integrated “full service” solution. At December 31, 2014 we had approximately 10,600 employees, in 81 locations in 38 countries. During the year ended December 31, 2014, we derived approximately 40.3%, 48.8% and 10.9% of our net revenue in the United States, Europe and Rest of World, respectively. | |
We began operations in 1990 and have expanded our business predominately through internal growth, together with a number of strategic acquisitions to enhance our capabilities and expertise in certain areas of the clinical development process. We are incorporated in Ireland and our principal executive office is located at: South County Business Park, Leopardstown, Dublin 18, Republic of Ireland. The contact telephone number of this office is 011- 353-1- 291-2000. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Significant Accounting Policies | 2. Significant Accounting Policies | ||||||||||||
The accounting policies noted below were applied in the preparation of the accompanying financial statements of the Company and are in conformity with accounting principles generally accepted in the United States. | |||||||||||||
(a) Basis of consolidation | |||||||||||||
The consolidated financial statements include the financial statements of the Company and all of its subsidiaries. All significant intercompany profits, transactions and account balances have been eliminated. The results of subsidiary undertakings acquired in the period are included in the consolidated statement of operations from the date of acquisition. | |||||||||||||
(b) Use of estimates | |||||||||||||
The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. The principle management estimates and judgements used in preparing the financial statements relate to revenue recognition, taxation, goodwill and business combinations. | |||||||||||||
(c) Revenue recognition | |||||||||||||
The Company primarily earns revenues by providing a number of different services to its customers. These services, which are integral elements of the clinical development process, include clinical trials management, biometric activities, consulting, imaging, contract staffing, informatics and laboratory services. Contracts range in duration from a number of months to several years. Revenue for services, as rendered, is recognized only after persuasive evidence of an arrangement exists, the sales price is fixed or determinable and collectability is reasonably assured. | |||||||||||||
Clinical trials management revenue is recognized on a proportional performance method. Depending on the contractual terms revenue is either recognized on the percentage of completion method based on the relationship between hours incurred and the total estimated hours of the trial or on the unit of delivery method. Contract costs equate to the product of labor hours incurred and compensation rates. For the percentage of completion method, the input (effort expended) method has been used to measure progress towards completion as there is a direct relationship between input and productivity. Contract revenue is the product of the aggregated labor hours required to complete the specified contract tasks at the agreed contract rates. The Company regularly reviews the estimate of total contract time to ensure such estimates remain appropriate taking into account actual contract stage of completion, remaining time to complete and any identified changes to the contract scope. Remaining time to complete depends on the specific contract tasks and the complexity of the contract and can include geographical site selection and initiation, patient enrolment, patient testing and level of results analysis required. While the Company may routinely adjust time estimates, the Company’s estimates and assumptions historically have been accurate in all material respects in the aggregate. Where revenue is recognized on the unit of delivery method, the basis applied is the number of units completed as a percentage of the total number of contractual units. | |||||||||||||
Biometrics revenue is recognized on a fee-for-service method as each unit of data is prepared on the basis of the number of units completed in a period as a percentage of the total number of contracted units. Imaging revenue is recognized on a fee-for-service basis recognizing revenue for each image completed. Consulting revenue is recognized on a fee-for-service basis as each hour of the related service is performed. Contract staffing revenue is recognized on a fee-for-service basis, over the time the related service is performed, or in the case of permanent placement, once the candidate has been placed with the client. Informatics revenue is recognized on a fee-for-service basis. Informatics contracts are treated as multiple element arrangements, with contractual elements comprising licence fee revenue, support fee revenue and revenue from software services, each of which can be sold separately. Sales prices for contractual elements are determined by reference to objective and reliable evidence of their sales price. Licence and support fee revenues are recognized rateably over the period of the related agreement. Revenue from software services is recognized using the percentage of completion method based on the relationship between hours incurred and the total estimated hours required to perform the service. | |||||||||||||
Laboratory service revenue is recognized on a fee-for-service basis. The Company accounts for laboratory service contracts as multiple element arrangements, with contractual elements comprising laboratory kits and laboratory testing, each of which can be sold separately. Sales prices for contractual elements are determined by reference to objective and reliable evidence of their sales price. Revenues for contractual elements are recognized on the basis of the number of deliverable units completed in the period. | |||||||||||||
Contracts generally contain provisions for renegotiation in the event of changes in the scope, nature, duration, or volume of services of the contract. Renegotiated amounts are recognized as revenue by revision to the total contract value arising as a result of an authorised customer change order. | |||||||||||||
The difference between the amount of revenue recognized and the amount billed on a particular contract is included in the balance sheet as unbilled revenue or payments on account. Normally, amounts become billable upon the achievement of certain milestones, for example, target patient enrollment rates, clinical testing sites initiated or case report forms completed. Once the milestone target is reached, amounts become billable in accordance with pre-agreed payment schedules included in the contract or on submission of appropriate billing detail. Such cash payments are not representative of revenue earned on the contract as revenues are recognized over the period in which the specified contractual obligations are fulfilled. Amounts included in unbilled revenue are expected to be collected within one year and are included within current assets. Advance billings to customers, for which revenue has not been recognized, are recognized as payments on account within current liabilities. | |||||||||||||
In the event of contract termination, if the value of work performed and recognized as revenue is greater than aggregate milestone billings at the date of termination, cancellation clauses usually ensure that the Company is paid for all work performed to the termination date. | |||||||||||||
(d) Reimbursable expenses | |||||||||||||
Reimbursable expenses comprise investigator payments and certain other costs which are reimbursed by clients under terms specific to each contract and are deducted from gross revenue in arriving at net revenue. Investigator payments are accrued based on patient enrollment over the life of the contract. Investigator payments are made based on predetermined contractual arrangements, which may differ from the accrual of the expense. | |||||||||||||
(e) Direct costs | |||||||||||||
Direct costs consist of compensation, associated employee benefits and share-based payments for project-related employees and other direct project-related costs. | |||||||||||||
(f) Advertising costs | |||||||||||||
All costs associated with advertising and promotion are expensed as incurred. The advertising and promotion expense was $3,563,900, $5,195,120 and $3,679,000 for the years ended December 31, 2014, December 31, 2013 and December 31, 2012 respectively. | |||||||||||||
(g) Foreign currencies and translation of subsidiaries | |||||||||||||
The Company's financial statements are prepared in United States dollars. Transactions in currencies other than United States dollars are recorded at the rate ruling at the date of the transactions. Monetary assets and liabilities denominated in currencies other than United States dollars are translated into United States dollars at exchange rates prevailing at the balance sheet date. Adjustments resulting from these translations are charged or credited to income. Amounts credited or charged to the statement of operations for the years ended December 31, 2014, December 31, 2013 and December 31, 2012 were as follows: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
(in thousands) | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Amounts (credited) | $ | (5,942 | ) | $ | (1,233 | ) | $ | (1,231 | ) | ||||
The financial statements of subsidiaries with other functional currencies are translated at period end rates for the balance sheet and average rates for the statement of operations. Translation gains and losses arising are reported as a movement on accumulated other comprehensive income. | |||||||||||||
(h) Disclosure about fair value of financial instruments | |||||||||||||
The following methods and assumptions were used to estimate the fair value of each material class of financial instrument: | |||||||||||||
Cash, cash equivalents, unbilled revenue, other receivables, short term investments, prepayments and other current assets, accounts receivable, accounts payable, investigator payments, payments on account, accrued liabilities, accrued bonuses and income taxes payable have carrying amounts that approximate fair value due to the short term maturities of these instruments. Other liabilities’ carrying amounts approximate fair value based on net present value of estimated future cash flows. | |||||||||||||
(i) Business combinations | |||||||||||||
The cost of a business combination is measured as the aggregate of the fair values at the date of exchange of assets given, liabilities incurred or assumed and equity instruments issued in exchange for control. Where a business combination agreement provides for an adjustment to the cost of the acquisition which is contingent upon future events, the amount of the estimated adjustment is recognized at the acquisition date at the fair value of this contingent consideration. Any changes to this estimate in subsequent periods will depend on the classification of the contingent consideration. If the contingent consideration is classified as equity it shall not be re-measured and the settlement shall be accounted for within equity. If the contingent consideration is classified as a liability any adjustments will be accounted for through the Consolidated Statement of Operations or other comprehensive income depending on whether the liability is considered a financial instrument. | |||||||||||||
The assets, liabilities and contingent liabilities of businesses acquired are measured at their fair values at the date of acquisition. In the case of a business combination which is completed in stages, the fair values of the identifiable assets, liabilities and contingent liabilities are determined at the date of each exchange transaction. When the initial accounting for a business combination is determined provisionally, any subsequent adjustments to the provisional values allocated to the identifiable assets, liabilities and contingent liabilities are made within twelve months of the acquisition date and presented as adjustments to the original acquisition accounting. | |||||||||||||
(j) Goodwill and Impairment | |||||||||||||
Goodwill represents the excess of the cost of acquired entities over the net amounts assigned to assets acquired and liabilities assumed. Goodwill primarily comprises acquired workforce in place which does not qualify for recognition as an asset apart from goodwill. Goodwill is stated net of any provision for impairment. The Company tests goodwill annually for any impairments or whenever events occur which may indicate impairment. The first step is to compare the carrying amount of the reporting unit’s assets to the fair value of the reporting unit. If the carrying amount exceeds the fair value then a second step is completed which involves the fair value of the reporting unit being allocated to each asset and liability with the excess being implied goodwill. The impairment loss is the amount by which the recorded goodwill exceeds the implied goodwill. No impairment was recognized as a result of the impairment testing carried out for the years ended December 31, 2014, December 31, 2013 and December 31, 2012. | |||||||||||||
(k) Intangible assets | |||||||||||||
Intangible assets are amortized on a straight line basis over their estimated useful life. | |||||||||||||
(l) Cash and cash equivalents | |||||||||||||
Cash and cash equivalents include cash and highly liquid investments with initial maturities of three months or less and are stated at cost, which approximates market value. | |||||||||||||
(m) Short term investments - available for sale | |||||||||||||
The Company classifies short-term investments as available for sale in accordance with the terms of FASB ASC 320, Investments – Debt and Equity Securities. Realized gains and losses are determined using specific identification. The investments are reported at fair value, with unrealized gains or losses reported in a separate component of shareholders’ equity. Any differences between the cost and fair value of the investments are represented by accrued interest. | |||||||||||||
(n) Inventory | |||||||||||||
Inventory is valued at the lower of cost and net market value and after provisions for obsolescence. Cost of inventories comprises the purchase price and attributable costs, less trade discounts. At December 31, 2014 the carrying value of inventory, included within prepayments and other current assets on the balance sheet, was $1.7 million (2013: $2.2 million). | |||||||||||||
(o) Property, plant and equipment | |||||||||||||
Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation of property, plant and equipment is computed using the straight line method based on the estimated useful lives of the assets as listed below: | |||||||||||||
Years | |||||||||||||
Building | 40 | ||||||||||||
Computer equipment and software | 8-Feb | ||||||||||||
Office furniture and fixtures | 8 | ||||||||||||
Laboratory equipment | 5 | ||||||||||||
Motor vehicles | 5 | ||||||||||||
Leasehold improvements are amortized using the straight-line method over the estimated useful life of the asset or the lease term, whichever is shorter. | |||||||||||||
(p) Leased assets | |||||||||||||
Costs in respect of operating leases are charged to the statement of operations on a straight line basis over the lease term. | |||||||||||||
Assets acquired under capital finance leases are included in the balance sheet at the present value of the future minimum lease payments and are depreciated over the shorter of the lease term and their remaining useful lives. The corresponding liabilities are recorded in the balance sheet and the interest element of the capital lease rental is charged to interest expense. | |||||||||||||
(q) Income taxes | |||||||||||||
The Company applies the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement. | |||||||||||||
(r) Government grants | |||||||||||||
Government grants received relating to capital expenditures are shown as deferred income and credited to income on a basis consistent with the depreciation policy of the relevant assets. Grants relating to categories of operating expenditures are credited to income in the period in which the expenditure to which they relate is charged. | |||||||||||||
Under the grant agreements amounts received may become repayable in full should certain circumstances specified within the grant agreements occur, including downsizing by the Company, disposing of the related assets, ceasing to carry on its business or the appointment of a receiver over any of its assets. The Company has not recognized any loss contingency having assessed as remote the likelihood of these events arising. | |||||||||||||
(s) Research and development credits | |||||||||||||
Research and development credits are available to the Company under the tax laws in certain jurisdictions, based on qualifying research and development spend as defined under those tax laws. Research and development credits are generally recognized as a reduction of income tax expense. However, certain tax jurisdictions provide refundable credits that are not wholly dependent on the Company’s ongoing income tax status or income tax position. In these circumstances the benefit of these credits is not recorded as a reduction to income tax expense, but rather as a reduction of operating expenditure. | |||||||||||||
(t) Pension costs | |||||||||||||
The Company contributes to defined contribution plans covering all eligible employees. The Company contributes to these plans based upon various fixed percentages of employee compensation and such contributions are expensed as incurred. | |||||||||||||
The Company operates, through a subsidiary, a defined benefit plan for certain of its United Kingdom employees. The Company accounts for the costs of this plan using actuarial models required by FASB ASC 715-30 and the plan is presented in accordance with the requirements of FASB ASC 715-60 Defined Benefit Plans – Other Post retirement. | |||||||||||||
(u) Net income per ordinary share | |||||||||||||
Basic net income per ordinary share 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. The reconciliation of the number of shares used in the computation of basic and diluted net income per ordinary share is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average number of ordinary shares outstanding for basic net income per ordinary share | 61,496,115 | 60,907,274 | 59,968,174 | ||||||||||
Effect of dilutive share options outstanding | 1,635,302 | 1,345,977 | 482,532 | ||||||||||
Weighted average number of ordinary shares outstanding for diluted net income per ordinary share | 63,131,417 | 62,253,251 | 60,450,706 | ||||||||||
(v) Share-based compensation | |||||||||||||
The Company accounts for its share options , restricted share units (“RSU’s”) and performance share units (“PSU’s”) in accordance with the provisions of FASB ASC 718, Compensation – Stock Compensation. Share-based compensation expense for equity-settled awards made to employees and directors is measured and recognized based on estimated grant date fair values. These equity-settled awards include employee share options, RSU’s and PSU’s. | |||||||||||||
Share-based compensation expense for share options awarded to employees and directors is estimated at the grant date based on each option’s fair value as calculated using the Black-Scholes option-pricing model. Share-based compensation for RSU’s and PSU’s awarded to employees and directors is calculated based on the market value of the Company’s shares on the date of award of the RSU’s and PSU’s. The value of awards expected to vest is recognized as an expense over the requisite service periods. Forfeitures are estimated on the date of grant and revised if actual or expected forfeiture activity differs materially from original estimates. | |||||||||||||
Estimating the grant date fair value of share options as of the grant date using an option-pricing model, such as the Black-Scholes model, is affected by the Company’s share price as well as assumptions regarding a number of complex variables. These variables include, but are not limited to, the expected share price volatility over the term of the awards, risk-free interest rates, and the expected term of the awards. | |||||||||||||
(w) Impairment of long-lived assets | |||||||||||||
Long lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount of the asset or fair value less selling costs. | |||||||||||||
(x) Reclassifications | |||||||||||||
Certain amounts in the consolidated financial statements have been reclassified where necessary to conform to the current year presentation. |
Short_term_investments_availab
Short term investments - available for sale | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Short term investments - available for sale | 3. Short term investments - available for sale | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
At start of year | $ | 138,317 | $ | 76,183 | |||||
Additions | 61,328 | 172,168 | |||||||
Disposals | (102,565 | ) | (109,795 | ) | |||||
Unrealized capital gain/(loss) - investments | 20 | (239 | ) | ||||||
At end of year | $ | 97,100 | $ | 138,317 | |||||
The Company classifies its short term investments as available for sale. Short term investments comprise highly liquid investments with maturities of greater than three months and minimum “A-” rated fixed and floating rate securities. Short term investments at December 31, 2014 have an average maturity of 1.7 years compared to 1.6 years at December 31, 2013. The investments are reported at fair value with unrealized gains or losses reported in a separate component of shareholders’ equity. Any differences between the cost and fair value of investments are represented by accrued interest. The fair value of short term investments are represented by level 1 fair value measurements – quoted prices in active markets for identical assets. |
Goodwill
Goodwill | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Goodwill | 4. Goodwill | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Opening goodwill | $ | 357,523 | $ | 315,441 | |||||
Current year acquisitions | 121,209 | 36,922 | |||||||
Foreign exchange movement | (15,408 | ) | 5,160 | ||||||
Closing goodwill | $ | 463,324 | $ | 357,523 | |||||
The Company has made a number of strategic acquisitions since its inception to enhance its capabilities and experience in certain areas of the clinical development process. Goodwill arising on acquisition represents the excess of the cost of acquired entities over the net amounts assigned to assets acquired and liabilities assumed. Goodwill primarily comprises acquired workforce in place which does not qualify for recognition as an asset apart from goodwill. | |||||||||
The Company tests goodwill annually for impairment or whenever events occur which may indicate impairment. The results of the Company’s goodwill impairment testing during the year ended December 31, 2014 provided no evidence of impairment and indicated the existence of sufficient headroom such that a reasonably possible change to the key assumptions used would be unlikely to result in an impairment of the related goodwill. | |||||||||
(a) Acquisitions of Aptiv Solutions | |||||||||
On May 7, 2014 the Company acquired 100% of the common stock of Aptiv Solutions (“Aptiv”), a global biopharmaceutical and medical device development services company and leader in adaptive clinical trials for a cash consideration of $143.5 million, including certain payments to be made on behalf of the company on completion totalling $22.4 million. Aptiv offers full-service clinical trial consulting and regulatory support for drugs, medical devices and diagnostics with a specific focus on strategies to increase product development efficiency and productivity. It is a market leader in the integrated design and execution of adaptive clinical trials for exploratory and late phase development as well as being an industry leader in medical device and diagnostic development in key medical technology segments. | |||||||||
The acquisition of Aptiv has been accounted for as a business combination in accordance with FASB ASC 805 Business Combinations. The following table summarizes the preliminary estimated fair values of the assets acquired and the liabilities assumed: | |||||||||
7-May | |||||||||
2014 | |||||||||
(in thousands) | |||||||||
Property, plant and equipment | $ | 6,924 | |||||||
Goodwill* | 121,209 | ||||||||
Intangible asset** | 30,037 | ||||||||
Cash and cash equivalents | 3,527 | ||||||||
Accounts receivable | 25,091 | ||||||||
Unbilled revenue | 21,154 | ||||||||
Prepayments and other current assets*** | 5,254 | ||||||||
Non-current assets | 2,911 | ||||||||
Accounts payable | (9,565 | ) | |||||||
Other liabilities | (29,903 | ) | |||||||
Payments on account | (31,094 | ) | |||||||
Non-current other liabilities**** | (24,444 | ) | |||||||
Net assets acquired | $ | 121,101 | |||||||
Cash consideration | $ | 143,500 | |||||||
Adjustments to cash consideration***** | (22,399 | ) | |||||||
Net purchase consideration | $ | 121,101 | |||||||
* Goodwill represents the acquisition of an established workforce with experience in clinical trial consulting and regulatory support for the development of drugs, medical devices and diagnostics, with a specific focus on strategy to increase efficiency and productivity in product development. Goodwill related to the US portion of the business acquired is tax deductible. | |||||||||
** The Company have assumed a 20% valuation of Intangible asset. This is currently under review and will be finalized within the 12 month period from the date of acquisition. | |||||||||
*** The Company has included a provisional assessment of uncertain tax benefits relating to certain historic net operating losses carryforwards. This is currently under review and will be finalized within the 12 month period from the date of acquisition. | |||||||||
**** The Company has a defined benefit plan covering its employees in Switzerland as mandated by the Swiss government. Benefits are based on the employee’s years of service and compensation. Benefits are paid directly by the Company when they become due, in conformity with the funding requirements of applicable government regulations. An estimate of the liability at the date of acquisition is included within non-current other liabilities. | |||||||||
***** Adjustments to cash consideration represent certain one-time liabilities identified at the acquisition date. | |||||||||
The proforma effect of the Aptiv Solutions acquisition if completed on January 1, 2013 would have resulted in net revenue, net income and earnings per share for the fiscal years ended December 31, 2013 and December 31, 2014 as follows: | |||||||||
Year Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Net revenue | $ | 1,543,820 | $ | 1,451,682 | |||||
Net income | $ | 172,508 | $ | 101,857 | |||||
Basic earnings per share | $ | 2.81 | $ | 1.67 | |||||
Diluted earnings per share | $ | 2.73 | $ | 1.64 | |||||
(b) Acquisition of Clinical Trial Services Division of Cross Country Healthcare, Inc. | |||||||||
On February 15, 2013 the Company acquired the clinical trial services division of Cross Country Healthcare Inc. for an initial cash consideration of $51.9 million. Cross Country Healthcare’s Clinical Trial Services division includes US resourcing providers, ClinForce and Assent Consulting, whose services include contract staffing, permanent placement and functional service provision. The division also includes AKOS, a leading US and EU provider of pharmacovigilance and drug safety services. ClinForce and Assent have been combined with ICON’s functional service provision (“FSP”) division, DOCS, creating a leader in global resourcing and FSP, while AKOS has enhanced the services offered by ICON’s medical and safety services team. | |||||||||
The acquisition agreement also provided for certain working capital targets to be achieved by the clinical trial services division of Cross Country Healthcare, Inc on completion. In October 2013 the Company received $0.2 million on completion of this review. | |||||||||
The acquisition of the clinical trial services division of Cross Country Healthcare, Inc has been accounted for as a business combination in accordance with FASB ASC 805 Business Combinations. The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed: | |||||||||
15-Feb | |||||||||
2013 | |||||||||
(in thousands) | |||||||||
Property, plant and equipment | $ | 339 | |||||||
Goodwill* | 36,922 | ||||||||
Intangible asset – customer relationships | 3,300 | ||||||||
Intangible asset – order backlog | 600 | ||||||||
Cash and cash equivalents | 1,039 | ||||||||
Accounts receivable | 9,200 | ||||||||
Unbilled revenue | 2,128 | ||||||||
Prepayments and other current assets | 465 | ||||||||
Non-current assets | 6 | ||||||||
Other liabilities | (2,285 | ) | |||||||
Non-current other liabilities | (16 | ) | |||||||
Net assets acquired | $ | 51,698 | |||||||
Cash consideration | $ | 51,897 | |||||||
Working capital adjustment | (199 | ) | |||||||
Net purchase consideration | $ | 51,698 | |||||||
* Goodwill represents the acquisition of an established workforce with experience in the clinical research industry, thereby allowing the Company to enhance its capabilities in global resourcing and FSP and also medical and safety services. Goodwill related to the US portion of the business acquired is tax deductible. | |||||||||
The proforma effect of the clinical trial services division of Cross Country Healthcare, Inc acquisition if completed on January 1, 2012 would have resulted in net revenue, net income and earnings per share for the fiscal years ended December 31, 2012 and December 31, 2013 as follows: | |||||||||
Year Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Net revenue | $ | 1,343,996 | $ | 1,182,734 | |||||
Net income | $ | 103,133 | $ | 58,944 | |||||
Basic earnings per share | $ | 1.69 | $ | 0.98 | |||||
Diluted earnings per share | $ | 1.66 | $ | 0.98 | |||||
(c) Acquisition of PriceSpective | |||||||||
On February 28, 2012 the Company acquired 100% of the common stock of PriceSpective LLC (PriceSpective) strategy consulting company for an initial cash consideration of $37.1 million. Headquartered in Philadelphia, and with offices in London, Los Angeles, San Diego, Raleigh and Boston, PriceSpective is a premier consultancy that has a strong reputation for excellence in strategic pricing, market access, Health Economics and Outcomes Research (“HEOR”), due diligence support and payer engagement services. Since PriceSpective’s incorporation in 2003, it has developed strategies for dozens of new product launches, and hundreds of development and in-market products, across 40+ disease areas. Further consideration of up to $15.0 million was payable if certain performance milestones were achieved in respect of periods up to December 31, 2012. On August 13, 2012 the Company paid $5.0 million in relation to performance milestones for the year ended December 31, 2011. On May 29, 2013 the Company paid $10.0 million in relation to the remaining performance milestones for the year ended December 31, 2012. | |||||||||
The following table summarizes the Company’s estimates of the fair values of assets acquired and the liabilities assumed: | |||||||||
28-Feb | |||||||||
2012 | |||||||||
(in thousands) | |||||||||
Property, plant and equipment | $ | 256 | |||||||
Goodwill* | 42,247 | ||||||||
Intangible asset – customer relationships | 10,237 | ||||||||
Intangible asset – order backlog | 405 | ||||||||
Intangible asset – non-compete arrangements | 392 | ||||||||
Cash and cash equivalents | 2,311 | ||||||||
Accounts receivable | 2,662 | ||||||||
Unbilled revenue | 1,140 | ||||||||
Other current assets | 236 | ||||||||
Current liabilities | (7,788 | ) | |||||||
Liability arising from contingent consideration arrangement | (15,000 | ) | |||||||
Net assets acquired | $ | 37,098 | |||||||
Cash consideration | $ | 37,199 | |||||||
Working capital adjustment | (101 | ) | |||||||
Contingent consideration | 15,000 | ||||||||
Amount of total consideration | 52,098 | ||||||||
Liabilities included in preliminary purchase price allocation re contingent consideration | (15,000 | ) | |||||||
Net purchase consideration | $ | 37,098 | |||||||
* Goodwill represents the acquisition of an established workforce with experience in strategic pricing, market access, HEOR, due diligence support and payer engagement services. Goodwill related to the US portion of the business acquired is tax deductible. | |||||||||
The proforma effect of the PriceSpective acquisition if completed on January 1, 2011 would have resulted in net revenue, net income and earnings per share for the fiscal years ended December 31, 2011 and December 31, 2012 as follows: | |||||||||
Year Ended | |||||||||
December 31, | |||||||||
2012 | 2011 | ||||||||
(in thousands) | |||||||||
Net revenue | $ | 1,118,410 | $ | 964,388 | |||||
Net income | $ | 55,931 | $ | 25,363 | |||||
Basic earnings per share | $ | 0.93 | $ | 0.42 | |||||
Diluted earnings per share | $ | 0.93 | $ | 0.42 | |||||
(d) Acquisition of BeijingWits Medical | |||||||||
On February 15, 2012 the Company acquired 100% of the common stock of BeijingWits Medical Consulting Co. Limited (BeijingWits Medical), a leading Chinese CRO, for an initial cash consideration of $9.0 million. BeijingWits Medical offers full-service clinical development capabilities and has a strong track record in clinical trial execution in China. It is a renowned expert in Chinese regulatory processes and a leading advocate of International Conference on Harmonization Good Clinical Practise (“ICH GCP”) in China. In addition to boosting the Company’s service capabilities in the region, BeijingWits Medical has strengthened the Company’s presence in China through the addition of over 100 highly qualified and experienced professionals in Beijing, Shanghai, Chengdu, Guangzhou, Wuhan and Hong Kong. Further consideration of up to $7.0 million may become payable if certain performance milestones were achieved in respect of periods up to December 31, 2013. On June 13, 2013 the Company paid $3.8 million in relation to the remaining performance milestones for the year ended December 31, 2012. On November 7, 2014 the Company paid $3.2 million in relation to the remaining performance milestones for the year ended December 31, 2013. No further amounts remain due. | |||||||||
The following table summarizes the Company’s estimates of the fair values of assets acquired and the liabilities assumed: | |||||||||
15-Feb | |||||||||
2012 | |||||||||
(in thousands) | |||||||||
Property, plant and equipment | $ | 172 | |||||||
Goodwill* | 13,512 | ||||||||
Intangible asset – customer relationships | 1,761 | ||||||||
Intangible asset – order backlog | 376 | ||||||||
Intangible asset – non-compete arrangements | 97 | ||||||||
Cash and cash equivalents | 587 | ||||||||
Accounts receivable | 657 | ||||||||
Unbilled revenue | 176 | ||||||||
Other current assets | 228 | ||||||||
Deferred tax liability | (559 | ) | |||||||
Current liabilities | (1,007 | ) | |||||||
Liability arising from contingent consideration arrangement | (7,000 | ) | |||||||
Net assets acquired | $ | 9,000 | |||||||
Cash consideration | $ | 9,000 | |||||||
Contingent consideration | 7,000 | ||||||||
Amount of total consideration | 16,000 | ||||||||
Liabilities included in preliminary purchase price allocation re contingent consideration | (7,000 | ) | |||||||
Net purchase consideration | $ | 9,000 | |||||||
* Goodwill represents the acquisition of an established workforce with experience in clinical trial execution and regulatory processes in China and is not tax deductible. | |||||||||
The proforma effect of the BeijingWits acquisition if completed on January 1, 2011 would have resulted in net revenue, net income and earnings per share for the fiscal years ended December 31, 2011 and December 31, 2012 as follows: | |||||||||
Year Ended | |||||||||
December 31, | |||||||||
2012 | 2011 | ||||||||
(in thousands) | |||||||||
Net revenue | $ | 1,115,355 | $ | 989,942 | |||||
Net income | $ | 55,349 | $ | 22,549 | |||||
Basic earnings per share | $ | 0.92 | $ | 0.37 | |||||
Diluted earnings per share | $ | 0.92 | $ | 0.37 |
Intangible_Assets
Intangible Assets | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Intangible Assets | 5. Intangible Assets | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Cost | (in thousands) | ||||||||
Customer relationships acquired | $ | 36,130 | $ | 36,900 | |||||
Technology asset acquired | 11,169 | 11,169 | |||||||
Order backlog | 3,171 | 3,171 | |||||||
Tradenames acquired | 1,357 | 1,357 | |||||||
Volunteer list acquired | 1,325 | 1,325 | |||||||
Non-compete arrangements | 489 | 489 | |||||||
Aptiv intangible asset | 30,037 | - | |||||||
Foreign exchange movement | (2,769 | ) | (62 | ) | |||||
Total cost | 80,909 | 54,349 | |||||||
Accumulated amortization | (32,120 | ) | (22,550 | ) | |||||
Foreign exchange movement | 930 | (445 | ) | ||||||
Net book value | $ | 49,719 | $ | 31,354 | |||||
On May 7, 2014 the Company acquired Aptiv Solutions (“Aptiv”), a global biopharmaceutical and medical device development services company and leader in adaptive clinical trials. Aptiv offers full-service clinical trial consulting and regulatory support for drugs, medical devices and diagnostics with a specific focus on strategy to increase product development efficiency and productivity. The intangible asset split and estimated useful life is currently under review by the Company and will be finalized within 12 months from the date of acquisition. $3,313,000 has been amortized in the period since the date of acquisition. | |||||||||
On February 15, 2013 the Company acquired the Clinical Trial Services division of Cross Country Healthcare, Inc. Cross Country Healthcare’s Clinical Trial Services division includes US resourcing providers, ClinForce and Assent Consulting, whose services include contract staffing, permanent placement and functional service provision (“FSP”). The value of certain customer relationships and order backlog identified of $3.3 million and $0.6 million respectively are being amortized over approximately 3 years and 1 year, the estimated period of benefit. $2,663,000 has been amortized in the period since the date of acquisition. | |||||||||
On February 28, 2012 the Company acquired PriceSpective, a strategy consulting company. The value of certain customer relationships identified of $10.2 million is being amortized over approximately 10 years, the estimated period of benefit. The value of order backlog and certain non-compete arrangements identified of $0.4 million and $0.4 million respectively are being amortized over approximately 0.8 and 3 years, the estimated period of benefit. $3,675,000 has been amortized in the period since the date of acquisition. | |||||||||
On February 15, 2012 the Company acquired BeijingWits Medical, a Chinese CRO. The value of certain customer relationships and order backlog identified of $1.8 million and $0.4 million respectively are being amortized over approximately 10 and 4 years, the estimated period of benefit. The value of certain non-compete arrangements identified of $0.01 million are being amortized over approximately 5 years, the estimated period of benefit. $845,000 has been amortized in the period since the date of acquisition. | |||||||||
On July 14, 2011 the Company acquired Firecrest Clinical Limited, a provider of technology solutions that boost investigator site performance and study management. The value of certain technology assets and customer relationships identified of $11.2 million and $5.2 million respectively are being amortized over approximately 7.5 years, the estimated period of benefit. The value of the Firecrest tradename and order backlog identified of $1.4 million and $1.2 million respectively are being amortized over approximately 4.5 and 1.2 years, the estimated period of benefit. $9,152,000 has been amortized in the period since the date of acquisition. | |||||||||
On January 14, 2011 the Company acquired Oxford Outcomes Limited, an international health outcomes consultancy business. The value of certain customer relationships and order backlog identified of $6.6 million and $0.6 million respectively are being amortized over approximately 6.5 and 2 years, the estimated period of benefit. $4,791,000 has been amortized in the period since the date of acquisition. | |||||||||
On November 14, 2008 the Company acquired Prevalere Life Sciences, a US provider of bioanalytical and immunoassay laboratory services. The value of certain customer relationships identified of $7.4 million is being amortized over periods ranging from approximately 7 to 11 years, the estimated period of the benefit. $4,977,000 has been amortized in the period since the date of acquisition. | |||||||||
On February 11, 2008 the Company acquired Healthcare Discoveries, a US provider of Phase I clinical trial services. The value of certain client relationships identified of $1.6 million is being amortized over periods ranging from approximately 2 to 9 years, the estimated periods of benefit. The value of certain volunteer lists identified of $1.3 million is being amortized over approximately 6 years, the estimated period of benefit. $2,704,000 has been amortized in the period since the date of acquisition. | |||||||||
Future intangible asset amortization expense for the years ended December 31, 2015 to December 31, 2019 is as follows: | |||||||||
Year ended | |||||||||
31-Dec | |||||||||
(in thousands) | |||||||||
2015 | $ | 6,506 | |||||||
2016 | 4,972 | ||||||||
2017 | 3,990 | ||||||||
2018 | 3,434 | ||||||||
2019 | 1,491 | ||||||||
$ | 20,393 |
Property_Plant_and_Equipment_n
Property, Plant and Equipment, net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment, net | 6. Property, Plant and Equipment, net | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Cost | |||||||||
Land | $ | 3,464 | $ | 3,464 | |||||
Building | 88,580 | 96,450 | |||||||
Computer equipment and software | 247,980 | 212,019 | |||||||
Office furniture and fixtures | 64,690 | 68,268 | |||||||
Laboratory equipment | 23,599 | 29,678 | |||||||
Leasehold improvements | 19,516 | 15,304 | |||||||
Motor vehicles | 47 | 56 | |||||||
447,876 | 425,239 | ||||||||
Less accumulated depreciation and asset write off | (299,691 | ) | (264,409 | ) | |||||
Property, plant and equipment (net) | $ | 148,185 | $ | 160,830 |
Other_Liabilities
Other Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Liabilities | 7. Other Liabilities | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Personnel related liabilities | $ | 167,362 | $ | 138,639 | |||||
Facility related liabilities | 19,862 | 16,205 | |||||||
General overhead liabilities | 33,422 | 31,034 | |||||||
Other liabilities | 26,631 | 3,019 | |||||||
Short term government grants (note 11) | 110 | 240 | |||||||
Restructuring and other items (note 14) | 3,704 | 2,430 | |||||||
Acquisition consideration payable | - | 3,245 | |||||||
$ | 251,091 | $ | 194,812 |
Other_NonCurrent_Liabilities
Other Non-Current Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Non-Current Liabilities | 8. Other Non-Current Liabilities | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Personnel related liabilities | 1,059 | $ | 4,278 | ||||||
Defined benefit pension obligations, net (note 9) | 7,466 | 3,536 | |||||||
Other non-current liabilities | 4,654 | 3,384 | |||||||
$ | 13,179 | $ | 11,198 |
Employee_Benefits
Employee Benefits | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Employee Benefits | 9. Employee Benefits | ||||||||||||
Certain Company employees are eligible to participate in a defined contribution plan (the "Plan"). Participants in the Plan may elect to defer a portion of their pre-tax earnings into a pension plan, which is run by an independent party. The Company matches participant's contributions typically at 6% of the participant's annual compensation. Contributions to the plan are recorded, as an expense in the Consolidated Statement of Operations. Contributions for the years ended December 31, 2012, December 31, 2013 and December 31, 2014 were $18,187,000, $20,293,000 and $22,582,000 respectively. | |||||||||||||
The Company's United States operations maintain a retirement plan (the "U.S. Plan") that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Participants in the U.S. Plan may elect to defer a portion of their pre-tax earnings, up to the Internal Revenue Service annual contribution limit. The Company matches 50% of each participant's contributions; each participant can contribute up to 6% of their annual compensation. Contributions to this U.S. Plan are recorded, in the year contributed, as an expense in the Consolidated Statement of Operations. Contributions for the years ended December 31, 2012, December 31, 2013 and December 31, 2014 were $8,442,000, $9,816,000 and $10,514,000 respectively. | |||||||||||||
One of the Company’s subsidiaries which was acquired during the 2003 fiscal year, ICON Development Solutions Limited, operates a defined benefit pension plan in the United Kingdom for its employees. The plan is managed externally and the related pension costs and liabilities are assessed in accordance with the advice of a professionally qualified actuary. Plan assets at December 31, 2014, December 31, 2013 and December 31, 2012, consist of units held in independently administered funds. The pension costs of this plan are presented in the following tables in accordance with the requirements of ASC 715-60, Defined Benefit Plans – Other Postretirement. The plan has been closed to new entrants with effect from July 1, 2003. | |||||||||||||
Change in benefit obligation | December 31, | December 31, | |||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Benefit obligation at beginning of year | $ | 24,958 | $ | 22,527 | |||||||||
Service cost | 91 | 251 | |||||||||||
Interest cost | 1,235 | 1,005 | |||||||||||
Plan participants’ contributions | 44 | 75 | |||||||||||
Plan curtailments | 359 | - | |||||||||||
Benefits paid | (68 | ) | (105 | ) | |||||||||
Actuarial loss | 8,270 | 680 | |||||||||||
Foreign currency exchange rate changes | (2,014 | ) | 525 | ||||||||||
Benefit obligation at end of year | $ | 32,875 | $ | 24,958 | |||||||||
Change in plan assets | December 31, | December 31, | |||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Fair value of plan assets at beginning of year | $ | 21,422 | $ | 17,807 | |||||||||
Actual return on plan assets | 5,424 | 2,916 | |||||||||||
Employer contributions | 155 | 224 | |||||||||||
Plan participants’ contributions | 44 | 75 | |||||||||||
Benefits paid | (68 | ) | (105 | ) | |||||||||
Foreign currency exchange rate changes | (1,568 | ) | 505 | ||||||||||
Fair value of plan assets at end of year | $ | 25,409 | $ | 21,422 | |||||||||
The fair values of the assets above do not include any of the Company’s own financial instruments, property occupied by, or other assets used by, the Company. | |||||||||||||
Funded status | December 31, | December 31, | |||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Projected benefit obligation | $ | (32,875 | ) | $ | (24,958 | ) | |||||||
Fair value of plan assets | 25,409 | 21,422 | |||||||||||
Funded status | $ | (7,466 | ) | $ | (3,536 | ) | |||||||
Non-current other liabilities | $ | (7,466 | ) | $ | (3,536 | ) | |||||||
The following amounts were recorded in the consolidated statement of operations as components of the net periodic benefit cost: | |||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Service cost | $ | 91 | $ | 251 | $ | 242 | |||||||
Interest cost | 1,235 | 1,005 | 964 | ||||||||||
Expected return on plan assets | (1,299 | ) | (983 | ) | (895 | ) | |||||||
Amortization of net loss | 20 | 130 | 179 | ||||||||||
Curtailment loss | 359 | - | - | ||||||||||
Net periodic benefit cost | $ | 406 | $ | 403 | $ | 490 | |||||||
The following assumptions were used at the commencement of the year in determining the net periodic pension benefit cost for the years ended December 31, 2012, December 31, 2013 and December 31, 2014: | |||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Discount rate | 4.7 | % | 4.6 | % | 4.7 | % | |||||||
Rate of compensation increase | 4 | % | 3.4 | % | 3.5 | % | |||||||
Expected rate of return on plan assets | 6.1 | % | 5.7 | % | 5.8 | % | |||||||
Accumulated other comprehensive income | December 31, | December 31, | December 31, | ||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Actuarial loss - benefit obligation | $ | 8,270 | $ | 680 | $ | 405 | |||||||
Actuarial gain – plan assets | (4,125 | ) | (1,933 | ) | (915 | ) | |||||||
Actuarial gain recognized in net periodic benefit cost | (20 | ) | (130 | ) | (179 | ) | |||||||
Total | $ | 4,125 | $ | (1,383 | ) | $ | (689 | ) | |||||
The estimated net gain and prior service cost for the defined benefit pension plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next year are $268,000 and $nil respectively. | |||||||||||||
Amounts recognized in accumulated other comprehensive income that have not yet been recognized as components of net periodic benefit cost are as follows: | |||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Net actuarial loss | $ | 6,113 | $ | 1,988 | $ | 3,371 | |||||||
Total | $ | 6,113 | $ | 1,988 | $ | 3,371 | |||||||
Benefit Obligation | |||||||||||||
The following assumptions were used in determining the benefit obligation at December 31, 2014: | |||||||||||||
December 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Discount rate | 3.6 | % | 4.7 | % | |||||||||
Rate of compensation increase | 3.6 | % | 4 | % | |||||||||
The discount rate is determined by reference to UK long dated government and corporate bond yields at the balance sheet date. This is represented by the iboxx corporate bond over 15 year index plus 20 basis points. | |||||||||||||
Plan Assets | |||||||||||||
The assets of the scheme are invested with Legal and General and held in a combination of the Active Corporate Bond Over 10 Year fund, Gilt, and Index Linked Gilt funds. The overall investment strategy is that approximately 70% of investments are in government bonds (both fixed interest and index linked) and approximately 30% of investments held in corporate bonds. This results in a concentration of investments in bond type assets, though invested in a number of different bond funds are currently invested in. There is no self investment in employer related assets. The expected long-term rate of return on assets at December 31, 2014 of 2.7% was calculated as the value of the fund after application of a market value reduction factor. The expected long term rates of return on different asset classes are as follows: | |||||||||||||
Asset Category | Expected long-term return per annum | ||||||||||||
Corporate Bonds | 3.6 | % | |||||||||||
Gilts | 2.4 | % | |||||||||||
The long-term expected return on corporate bonds and gilts (fixed interest and index linked) is determined by reference to bond yields and gilt yields at the balance sheet date. | |||||||||||||
The underlying asset split of the fund is shown below. | |||||||||||||
Asset Category | December 31, | December 31, | |||||||||||
2014 | 2013 | ||||||||||||
Equity | - | 70 | % | ||||||||||
Corporate Bonds | 26 | % | 30 | % | |||||||||
Gilts | 74 | % | - | ||||||||||
100 | % | 100 | % | ||||||||||
Applying the above expected long term rates of return to the asset distribution at December 31, 2014, gives rise to an expected overall rate of return of scheme assets of approximately 2.7% per annum. | |||||||||||||
Plan Asset Fair Value Measurements | |||||||||||||
Quoted Prices in Active Markets for Identical | |||||||||||||
Assets | |||||||||||||
Level 1 | |||||||||||||
(in thousands) | |||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||
Cash | $ | 16 | $ | 58 | |||||||||
Fixed Income Securities | |||||||||||||
Legal and General Active Corporate Bond – Over 10 Year | 6,560 | 5,788 | |||||||||||
Legal and General Gilt Funds | 6,977 | - | |||||||||||
Legal and General Index Linked Gilt Funds | 11,856 | - | |||||||||||
Other Types of Investments | |||||||||||||
Baillie Gifford Diversified Growth Fund | - | 8,452 | |||||||||||
Standard Life Global Absolute Return Strategies | - | 7,124 | |||||||||||
$ | 25,409 | $ | 21,422 | ||||||||||
Cash Flows | |||||||||||||
The Company expects to contribute $0.1 million to its pension fund in the year ending December 31, 2015. | |||||||||||||
The following annual benefit payments, which reflect expected future service as appropriate, are expected to be paid. | |||||||||||||
(in thousands) | |||||||||||||
2015 | $ | 65 | |||||||||||
2016 | 67 | ||||||||||||
2017 | 70 | ||||||||||||
2018 | 72 | ||||||||||||
2019 | 73 | ||||||||||||
Years 2020 - 2024 | $ | 294 | |||||||||||
The expected cash flows are estimated figures based on the members expected to retire over the next 10 years assuming no early retirements plus an additional amount in respect of recent average withdrawal experience. At the present time it is not clear whether annuities will be purchased when members reach retirement or whether pensions will be paid each month out of scheme assets. The cash flows above have been estimated on the assumption that pensions will be paid monthly out of scheme assets. If annuities are purchased, then the expected benefit payments will be significantly different from those shown above. |
Equity_Incentive_Schemes_and_S
Equity Incentive Schemes and Stock Compensation Charges | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Equity Incentive Schemes and Stock Compensation Charges | 10. Equity Incentive Schemes and Stock Compensation Charges | ||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
Each option granted under the 2008 Employee Plan or the 2008 Consultants Plan (together 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. | |||||||||||||||||||||||||
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 400,000 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 July 21, 2018. | |||||||||||||||||||||||||
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. Share options typically vest over a period of five years from date of grant and expire eight years from date of grant. The maximum contractual term of options outstanding at December 31, 2014 is eight years. | |||||||||||||||||||||||||
The following table summarizes the transactions for the Company’s share option plans for the years ended December 31, 2014, December 31, 2013 and December 31, 2012: | |||||||||||||||||||||||||
Options Granted | Number of | Weighted | Weighted Average Grant | ||||||||||||||||||||||
Under Plans | Shares | Average | Date Fair | ||||||||||||||||||||||
Exercise Price | Value | ||||||||||||||||||||||||
Outstanding at December 31, 2011 | 4,902,818 | 4,902,818 | $ | 21.87 | $ | 8.61 | |||||||||||||||||||
Granted | 842,273 | 842,273 | $ | 22.01 | $ | 9.59 | |||||||||||||||||||
Exercised | (890,236 | ) | (890,236 | ) | $ | 14.62 | $ | 6.16 | |||||||||||||||||
Cancelled | (504,224 | ) | (504,224 | ) | $ | 25.14 | $ | 9.76 | |||||||||||||||||
Outstanding at December 31, 2012 | 4,350,631 | 4,350,631 | $ | 23.01 | $ | 9.17 | |||||||||||||||||||
Granted | 264,950 | 264,950 | $ | 33.09 | $ | 12.05 | |||||||||||||||||||
Exercised | (1,249,759 | ) | (1,249,759 | ) | $ | 21.6 | $ | 8.58 | |||||||||||||||||
Cancelled | (392,034 | ) | (392,034 | ) | $ | 25.27 | $ | 10.02 | |||||||||||||||||
Outstanding at December 31, 2013 | 2,973,788 | 2,973,788 | $ | 24.2 | $ | 9.57 | |||||||||||||||||||
Granted | 366,985 | 366,985 | $ | 45.82 | $ | 14.09 | |||||||||||||||||||
Exercised | (926,407 | ) | (926,407 | ) | $ | 24.02 | $ | 9.45 | |||||||||||||||||
Cancelled | (186,666 | ) | (186,666 | ) | $ | 22.17 | $ | 9.01 | |||||||||||||||||
Outstanding at December 31, 2014 | 2,227,700 | 2,227,700 | $ | 28 | $ | 10.4 | |||||||||||||||||||
Vested and exercisable at December 31, 2014 | 1,024,550 | 1,024,550 | $ | 25.03 | $ | 9.72 | |||||||||||||||||||
The weighted average remaining contractual life of options outstanding and options exercisable at December 31, 2014, was 4.58 years and 3.22 years respectively (2013: 4.52 years and 3.29 years respectively). 494,951 options are expected to vest during the year ended December 31, 2015 (655,224 options were expected to vest during the year ended December 31, 2014). | |||||||||||||||||||||||||
The intrinsic value of options exercised during the year ended December 31, 2014 amounted to $23.0 million. The intrinsic value of options outstanding and options exercisable at December 31, 2014 amounted to $51.2 million and $26.6 million respectively. Intrinsic value is calculated based on the market value versus strike price of the Company’s shares at the date of exercise. | |||||||||||||||||||||||||
Non-vested shares outstanding as at December 31, 2014 are as follows: | |||||||||||||||||||||||||
Options | Weighted Average | Weighted Average | |||||||||||||||||||||||
Outstanding | Exercise Price | Fair Value | |||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||
Non-vested outstanding at December 31, 2013 | 1,468,081 | $ | 23.45 | $ | 9.45 | ||||||||||||||||||||
Granted | 366,985 | 45.82 | 14.09 | ||||||||||||||||||||||
Vested | (496,775 | ) | 22.85 | 9.13 | |||||||||||||||||||||
Forfeited | (135,141 | ) | 23.36 | 9.57 | |||||||||||||||||||||
Non-vested outstanding at December 31, 2014 | 1,203,150 | $ | 30.54 | $ | 10.98 | ||||||||||||||||||||
Outstanding and exercisable share options: | |||||||||||||||||||||||||
The following table summarizes information concerning outstanding and exercisable share options as of December 31, 2014: | |||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||
Range Exercise | Number of | Weighted | Weighted | Number of | Weighted Average | ||||||||||||||||||||
Price | Shares | Average | Average Exercise | Shares | Exercise Price | ||||||||||||||||||||
Remaining | Price | ||||||||||||||||||||||||
Contractual Life | |||||||||||||||||||||||||
$15.84 | 50,000 | 2.33 | $15.84 | 50,000 | $15.84 | ||||||||||||||||||||
$16.80 | 90,000 | 4.83 | $16.80 | 30,000 | $16.80 | ||||||||||||||||||||
$17.17 | 18,000 | 4.85 | $17.17 | 6,000 | $17.17 | ||||||||||||||||||||
$18.98 | 600 | 1.87 | $18.98 | 600 | $18.98 | ||||||||||||||||||||
$19.45 | 6,000 | 3.82 | $19.45 | - | $19.45 | ||||||||||||||||||||
$20.16 | 600 | 3.87 | $20.16 | 200 | $20.16 | ||||||||||||||||||||
$20.28 | 344,811 | 4.17 | $20.28 | 187,539 | $20.28 | ||||||||||||||||||||
$20.59 | 115,200 | 5.14 | $20.59 | 23,400 | $20.59 | ||||||||||||||||||||
$21.25 | 19,741 | 0.12 | $21.25 | 19,741 | $21.25 | ||||||||||||||||||||
$22.26 | 125,637 | 2.15 | $22.26 | 125,637 | $22.26 | ||||||||||||||||||||
$22.30 | 352,793 | 5.32 | $22.30 | 113,729 | $22.30 | ||||||||||||||||||||
$23.66 | 8,720 | 5.57 | $23.66 | 3,380 | $23.66 | ||||||||||||||||||||
$24.25 | 50,000 | 3.18 | $24.25 | 50,000 | $24.25 | ||||||||||||||||||||
$24.46 | 217,907 | 3.17 | $24.46 | 145,419 | $24.46 | ||||||||||||||||||||
$26.20 | 2,400 | 3.38 | $26.20 | 1,920 | $26.20 | ||||||||||||||||||||
$26.71 | 4,450 | 5.7 | $26.71 | 1,780 | $26.71 | ||||||||||||||||||||
$29.45 | 3,000 | 3.32 | $29.45 | 2,400 | $29.45 | ||||||||||||||||||||
$31.49 | 11,650 | 6.16 | $31.49 | 1,690 | $31.49 | ||||||||||||||||||||
$32.37 | 187,498 | 6.33 | $32.37 | 38,698 | $32.37 | ||||||||||||||||||||
$35.33 | 211,756 | 1.15 | $35.33 | 211,756 | $35.33 | ||||||||||||||||||||
$36.22 | 34,630 | 6.46 | $36.22 | 6,921 | $36.22 | ||||||||||||||||||||
$37.90 | 10,300 | 6.93 | $37.90 | 2,060 | $37.90 | ||||||||||||||||||||
$40.83 | 111,463 | 7.39 | $40.83 | 680 | $40.83 | ||||||||||||||||||||
$41.25 | 1,000 | 1.67 | $41.25 | 1,000 | $41.25 | ||||||||||||||||||||
$47.03 | 82,147 | 7.17 | $47.03 | - | $47.03 | ||||||||||||||||||||
$48.67 | 163,367 | 7.21 | $48.67 | - | $48.67 | ||||||||||||||||||||
$51.35 | 4,030 | 7.6 | $51.35 | - | $51.35 | ||||||||||||||||||||
$15.84 - $51.35 | 2,227,700 | 4.58 | $28.00 | 1,024,550 | $25.03 | ||||||||||||||||||||
Options outstanding include both vested and unvested options as at December 31, 2014. Options exercisable represent options which have vested at December 31, 2014. From the date of grant, substantially all options vest over a five year period at 20% per annum. | |||||||||||||||||||||||||
Fair value of Stock Options Assumptions | |||||||||||||||||||||||||
The weighted average fair value of options granted during the years ended December 31, 2014, December 31, 2013 and December 31, 2012 was calculated using the Black-Scholes option pricing model. The weighted average fair values and assumptions were as follows: | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Weighted average fair value | $ | 14.09 | $ | 12.05 | $ | 9.59 | |||||||||||||||||||
Assumptions: | |||||||||||||||||||||||||
Expected volatility | 32 | % | 40 | % | 50 | % | |||||||||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||||||||||
Risk-free interest rate | 1.57 | % | 0.76 | % | 0.83 | % | |||||||||||||||||||
Expected life | 5.0 years | 5.0 years | 5.0 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. An aggregate of 1.6 million ordinary shares have been reserved for issuance under the 2013 RSU Plan. The shares are awarded at zero cost and vest over a service period. Awards under the 2013 RSU Plan may be settled in cash or shares at the option of the Company. | |||||||||||||||||||||||||
The Company has awarded RSU’s and PSU’s to certain key individuals of the Group. The following table summarizes RSU and PSU activity for the year ended December 31, 2014: | |||||||||||||||||||||||||
PSU | PSU | PSU | RSU | RSU | RSU | ||||||||||||||||||||
Outstanding | Weighted | Weighted | Outstanding | Weighted | Weighted | ||||||||||||||||||||
Number of | Average | Average | Number of | Average | Average | ||||||||||||||||||||
Shares | Fair | Remaining Contractual | Shares | Fair Value | Remaining Contractual | ||||||||||||||||||||
Value | Life | Life | |||||||||||||||||||||||
Outstanding at December 31, 2013 | 353,244 | $ | 33.04 | 2.35 | 846,459 | $ | 27.05 | 1.77 | |||||||||||||||||
Granted | 346,108 | $ | 46.34 | 521,926 | $ | 41.84 | |||||||||||||||||||
Shares vested | - | - | (233,726 | ) | $ | 21.11 | |||||||||||||||||||
Forfeited | (30,181 | ) | $ | 34.62 | (95,663 | ) | $ | 32.68 | |||||||||||||||||
Outstanding at December 31, 2014 | 669,171 | $ | 39.78 | 1.77 | 1,038,996 | $ | 35.19 | 1.67 | |||||||||||||||||
105 | |||||||||||||||||||||||||
The fair value of RSU’s vested for the year ended December 31, 2014 totaled $4.9 million (2013: $1.1 million). | |||||||||||||||||||||||||
No PSU’s vested during 2014 or 2013. | |||||||||||||||||||||||||
The PSUs vest based on service and specified EPS targets over the periods 2014 – 2016 and 2015 – 2017. Since 2013, 337,738 PSUs (net of forfeitures) have been granted. Depending on the actual amount of EPS from 2013 to 2017, up to an additional 331,433 PSUs may also be granted. | |||||||||||||||||||||||||
Non-cash stock compensation expense | |||||||||||||||||||||||||
Income from operations for the year ended December 31, 2014 is stated after charging $22.7 million in respect of non-cash stock compensation expense. Non-cash stock compensation expense for the year ended December 31, 2014 has been allocated as follows: | |||||||||||||||||||||||||
Year ended | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Direct costs | $ | 12,531 | $ | 7,835 | $ | 6,007 | |||||||||||||||||||
Selling, general and administrative | $ | 10,211 | $ | 6,385 | $ | 4,894 | |||||||||||||||||||
Restructuring and other non-recurring items (note 14) | - | - | $ | 620 | |||||||||||||||||||||
Total compensation costs | $ | 22,742 | $ | 14,220 | $ | 11,521 | |||||||||||||||||||
Total non-cash stock compensation expense not yet recognized at December 31, 2014 amounted to $51.6 million. The weighted average period over which this is expected to be recognized is 2.28 years. Total tax benefit recognized in additional paid in capital related to the non-cash compensation expense amounted to $2.4 million for the year ended December 31, 2014 (2013: $1.7 million, 2012: $1.3 million). |
Government_Grants
Government Grants | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Government Grants | 11. Government Grants | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Received | $ | 3,698 | $ | 3,698 | |||||
Less accumulated amortization | (2,710 | ) | (2,497 | ) | |||||
Foreign exchange translation adjustment | 238 | 398 | |||||||
Total government grants | 1,226 | 1,599 | |||||||
Less current portion | (110 | ) | (240 | ) | |||||
Non-current government grants | $ | 1,116 | $ | 1,359 | |||||
Capital grants received may be refundable in full if certain events occur. Such events, as set out in the related grant agreements, include sale of the related asset, liquidation of the Company or failure to comply with other conditions of the grant agreements. No loss contingency has been recognized as the likelihood of such events arising has been assessed as remote. Government grants amortized to the profit and loss account amounted to $213,000 and $349,000 for the years ended December 31, 2014 and December 31, 2013 respectively. As at December 31, 2014 the Company had $0.7 million in restricted retained earnings, pursuant to the terms of grant agreements. |
Share_Capital
Share Capital | 12 Months Ended |
Dec. 31, 2014 | |
Share Capital | 12. Share Capital |
Holders of ordinary shares will be entitled to receive such dividends as may be recommended by the board of directors of the Company and approved by the shareholders and/or such interim dividends as the board of directors of the Company may decide. On liquidation or a winding up of the Company, the par value of the ordinary shares will be repaid out of the assets available for distribution among the holders of the ordinary shares of the Company. Holders of ordinary shares have no conversion or redemption rights. On a show of hands, every holder of an ordinary share present in person or proxy at a general meeting of shareholders shall have one vote, for each ordinary share held with no individual having more than one vote. | |
During the year ended December 31, 2014, 926,407 options were exercised by employees at an average exercise price of $24.02 per share for total proceeds of $22.3 million. During the year ended December 31, 2014, 233,726 ordinary shares were issued in respect of certain RSU’s previously awarded by the Company. | |
During the year ended December 31, 2013, 1,249,759 options were exercised by employees at an average exercise price of $21.60 per share for total proceeds of $27.0 million. During the year ended December 31, 2013, 50,000 ordinary shares were issued in respect of certain RSU’s previously awarded by the Company. | |
During the year ended December 31, 2012, 890,236 options were exercised by employees at an average exercise price of $14.62 per share for total proceeds of $13.0 million. | |
(a) Share Repurchase Program | |
On October 27, 2011 the Company announced its intention to commence a share repurchase program of up to $50 million. On November 22, 2011 the Company entered into two separate share repurchase plans of up to $10 million each, covering the periods November 23, 2011 to December 31, 2011 and January 1, 2012 to February 20, 2012 respectively. On February 21, 2012 the Company entered into a further share repurchase plan of up to $20 million, covering the period February 22, 2012 to April 22, 2012. On April 27, 2012 the Company entered into a fourth share repurchase plan of up to $20 million, covering the period April 27, 2012 to July 18, 2012. On July 30, 2012 the Company entered into a fifth share repurchase plan of up to $10 million, covering the period July 30, 2012 to October 26, 2012. On September 19, 2014 the Company announced that it had completed a $40 million redemption of the Company’s ordinary shares and that it had entered into a further program under which the Company can acquire up to an additional $100 million of its outstanding ordinary shares (by way of redemption), in accordance with United States securities laws through open market share acquisitions. | |
Under the repurchase program, a broker purchased the Company’s shares from time to time on the open market or in privately negotiated transactions in accordance with agreed terms and limitations. The program was designed to allow share repurchases during periods when the Company would ordinarily not be permitted to do so because it may be in possession of material non-public or price-sensitive information, applicable insider trading laws or self-imposed trading blackout periods. The Company’s instructions to the broker were irrevocable and the trading decisions in respect of the repurchase program were made independently of and uninfluenced by the Company. The Company confirms that on entering the share repurchase plans it had no material non-public, price-sensitive or inside information regarding the Company or its securities. Furthermore, the Company will not enter into additional plans whilst in possession of such information. The timing and actual number of shares acquired by way of the redemption will be dependent on market conditions, legal and regulatory requirements and the other terms and limitations contained in the program. In addition, acquisitions under the program may be suspended or discontinued in certain circumstances in accordance with the agreed terms. Therefore, there can be no assurance as to the timing or number of shares that may be acquired under the program. | |
During the year ended December 31, 2014 2,640,610 ordinary shares were repurchased by the Company for a total consideration of $140.0 million. There were no share repurchases completed during 2013. During the year ended December 31, 2012 738,341 ordinary shares were repurchased by the Company for a total consideration of $15.6 million. All ordinary shares repurchased by the Company were cancelled, and the nominal value of these shares transferred to a capital redemption reserve fund as required under Irish Company Law. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Taxes | 13. Income Taxes | ||||||||||||
The Company’s United States and Irish based subsidiaries file tax returns in the United States and Ireland respectively. Other foreign subsidiaries are taxed separately under the laws of their respective countries. | |||||||||||||
The components of income before provision for income tax expense are as follows: | |||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Ireland | $ | 143,889 | $ | 80,914 | $ | 12,157 | |||||||
United States | 6,966 | 16,218 | 11,371 | ||||||||||
Other | 51,861 | 23,733 | 43,693 | ||||||||||
Income before provision for income taxes | $ | 202,716 | $ | 120,865 | $ | 67,221 | |||||||
The components of total income tax expense are as follows: | |||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Provision for income taxes: | |||||||||||||
Current: | |||||||||||||
Ireland | $ | 19,562 | $ | 9,158 | $ | 1,684 | |||||||
United States | 7,891 | 14,492 | 12,290 | ||||||||||
Other | 10,695 | 4,876 | 8,257 | ||||||||||
Total current tax | 38,148 | 28,526 | 22,231 | ||||||||||
Deferred expense/(benefit): | |||||||||||||
Ireland | (1,178 | ) | 1,914 | (287 | ) | ||||||||
United States | (3,031 | ) | (9,420 | ) | (9,715 | ) | |||||||
Other | (3,691 | ) | (2,967 | ) | (428 | ) | |||||||
Total deferred tax expense/(benefit) | (7,900 | ) | (10,473 | ) | (10,430 | ) | |||||||
Provision for income taxes | 30,248 | 18,053 | 11,801 | ||||||||||
Impact on shareholders equity and other comprehensive income of the tax consequence of : | |||||||||||||
Excess tax benefit on stock compensation | (2,404 | ) | (1,651 | ) | (1,274 | ) | |||||||
Currency impact on long term funding | 178 | 87 | 356 | ||||||||||
Total | $ | 28,022 | $ | 16,489 | $ | 10,883 | |||||||
Ireland’s statutory income tax rate is 12.5%. The Company’s consolidated effective tax rate differed from the statutory rate as set forth below; | |||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Taxes at Irish statutory rate of 12.5% (2013:12.5%; | $ | 25,340 | $ | 15,108 | $ | 8,401 | |||||||
2012:12.5%) | |||||||||||||
Foreign and other income taxed at higher rates | 1,981 | 4,085 | 6,360 | ||||||||||
Research & development tax incentives | (1,810 | ) | (2,598 | ) | (4,954 | ) | |||||||
Movement in valuation allowance | (1,965 | ) | 2,389 | 1,557 | |||||||||
Effects of change in tax rates | 543 | 1,553 | 867 | ||||||||||
Increase in unrecognized tax benefits | 2,869 | (1,409 | ) | 646 | |||||||||
Prior year over provision | (552 | ) | (47 | ) | (678 | ) | |||||||
Effects of permanent items | 3,219 | (1,002 | ) | (26 | ) | ||||||||
Other | 623 | (26 | ) | (372 | ) | ||||||||
$ | 30,248 | $ | 18,053 | $ | 11,801 | ||||||||
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are presented below: | |||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Deferred tax liabilities: | |||||||||||||
Property, plant and equipment | $ | 4,270 | $ | 6,501 | $ | 6,631 | |||||||
Goodwill attributable to intangibles | 18,645 | 14,013 | 11,467 | ||||||||||
Other intangible assets | 3,657 | 970 | 2,707 | ||||||||||
Accruals | 238 | 51 | 77 | ||||||||||
Other | - | 4 | 88 | ||||||||||
Unrealized FX | 1,709 | 1,056 | 1,160 | ||||||||||
Total deferred tax liabilities recognized | 28,519 | 22,595 | 22,130 | ||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss and tax credits carryforwards | 30,586 | 29,696 | 26,545 | ||||||||||
Property, plant and equipment | 4,002 | 2,739 | 2,345 | ||||||||||
Accrued expenses and payments on account | 37,620 | 30,136 | 20,326 | ||||||||||
Stock compensation | 8,717 | 6,291 | 5,586 | ||||||||||
Deferred compensation expense | 1,853 | 1,187 | 1,136 | ||||||||||
Other | 892 | - | - | ||||||||||
Unrealized FX | 352 | 92 | 98 | ||||||||||
Total deferred tax assets | 84,022 | 70,141 | 56,036 | ||||||||||
Valuation allowance for deferred tax assets | (23,145 | ) | (24,348 | ) | (21,190 | ) | |||||||
Deferred tax assets recognized | 60,877 | 45,793 | $ | 34,846 | |||||||||
Deferred tax assets net of unrecognized tax benefits | 60,877 | 45,793 | 34,846 | ||||||||||
Overall Net deferred tax asset | 32,358 | $ | 23,198 | $ | 12,716 | ||||||||
At December 31, 2014 non-U.S subsidiaries had operating loss carryforwards for income tax purposes that may be carried forward indefinitely, available to offset against future taxable income, if any, of approximately $95.6 million (2013: $96.2 million). In addition at December 31, 2014 non-U.S subsidiaries had tax credit carryforwards for income tax purposes, that may be carried forward indefinitely, available to offset against future tax liabilities, if any, of approximately $3.6 million (2013: $2.4 million). At December 31, 2014 non-U.S. subsidiaries also had additional operating loss carry forwards of $5.8 million which are due to expire between 2015 and 2017. | |||||||||||||
At December 31, 2014 U.S. subsidiaries had U.S. federal and state net operating loss (“NOL”) carry forwards of approximately $36.9 million and $65.1 million, respectively. These net operating losses are available for offset against future taxable income and expire between 2015 and 2033. Of the $36.9 million U.S. federal net operating losses, approximately $11.8 million is currently available for offset against future U.S. federal taxable income. The subsidiary’s ability to use the U.S. federal and state net operating loss carry forwards is limited on an annual basis due to change of ownership in 2000, 2010 and 2014, as defined by Section 382 of the Internal Revenue Code of 1986, as amended. | |||||||||||||
The expected expiry dates of these losses are as follows: | |||||||||||||
Federal | State | ||||||||||||
NOL’s | NOL’s | ||||||||||||
(in thousands) | |||||||||||||
2015- 2020 | 678 | 1,893 | |||||||||||
2021- 2025 | 4,031 | 12,705 | |||||||||||
2026- 2033 | 32,170 | 50,542 | |||||||||||
$ | 36,879 | $ | 65,140 | ||||||||||
In addition US subsidiaries have alternative minimum tax credit carry forwards of approximately $0.3 million that are available to reduce future U.S. federal regular income taxes, over an indefinite period. They also have general business credit carry forwards of approximately $0.3 million that are available to offset future U.S. federal income taxes. | |||||||||||||
The valuation allowance at December 31, 2014 was approximately $23.1 million. The valuation allowance for deferred tax assets as of December 31, 2013 and December 31, 2012 was $24.3 million and $21.2 million respectively. The net change in the total valuation allowance was a decrease of $1.2 million during 2014 and an increase of $3.1 million during 2013. | |||||||||||||
The valuation allowances at December 31, 2014 and December 31, 2013 were primarily related to tax losses and tax credits carried forward that, in the judgment of management, are not more likely than not to be realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. In the UK, a change in commercial circumstances led to a change in judgment concerning the need for a valuation allowance on certain limited loss carryforwards; the release of the beginning of year valuation allowance resulted in a tax benefit of $3.1 million. | |||||||||||||
The Company has not recognized a deferred tax liability for the undistributed earnings of foreign subsidiaries that arose in 2014 and prior years as the Company considers these earnings to be indefinitely reinvested. It is not practicable to calculate the unrecognized deferred tax liability. | |||||||||||||
A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows: | |||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Gross amount of unrecognized tax benefits at start of year | $ | 5,780 | $ | 7,189 | $ | 6,543 | |||||||
Increase related to acquired tax positions | 14,552 | - | - | ||||||||||
Increase related to prior year tax positions | 565 | - | 1,167 | ||||||||||
Decrease related to prior year tax positions | (183 | ) | (494 | ) | - | ||||||||
Increase related to current year tax positions | 3,709 | 2,269 | 1,473 | ||||||||||
Settlements | (2 | ) | (899 | ) | (98 | ) | |||||||
Lapse of statute of limitations | (1,220 | ) | (2,285 | ) | (1,896 | ) | |||||||
Gross amount of unrecognized tax benefits at end of year | $ | 23,201 | $ | 5,780 | $ | 7,189 | |||||||
The relevant statute of limitations for gross unrealized tax benefits totaling $2.3 million could potentially expire during 2015. $14.5 million of the increase during the year ended December 31, 2014 reflects pre-acquisition tax positions taken by companies acquired during the period. | |||||||||||||
Included in the balance of total unrecognized tax benefits at December 31, 2014 there were net potential benefits of $23.2 million which, if recognized, would affect the effective rate on income tax from continuing operations. The balance of total unrecognized tax benefits at December 31, 2013 and December 31, 2012 included net potential benefits which, if recognized, would affect the effective rate of income tax from continuing operations of $5.8 million and $7.2 million respectively. | |||||||||||||
Interest and penalties recognized as a net expense during the year ended December 31, 2014 amounted to $0.2 million (2013: net benefit of $0.2 million, 2012: net benefit of $0.1 million) and are included within the provision for income taxes. Total accrued interest and penalties as of December 31, 2014 and December 31, 2013 were $2.4 million and $0.9 million respectively and are included in the closing income tax liabilities at those dates. | |||||||||||||
Our major tax jurisdictions are the United States and Ireland. We may potentially be subjected to tax audits in both our major jurisdictions. In the United States tax periods open to audit include the years ended December 31, 2011, December 31, 2012, December 31, 2013 and December 31, 2014. In Ireland tax periods open to audit include the years ended December 31, 2010, December 31, 2011, December 31, 2012, December 31, 2013 and December 31, 2014. During such audits, local tax authorities may challenge the positions taken by us in tax returns. |
Restructuring_and_other_items
Restructuring and other items | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Restructuring and other items | 14. Restructuring and other items | ||||||||||||
Restructuring and other items recognized during the year ended December 31, 2014 comprise: | |||||||||||||
Year Ended | |||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Restructuring charges | $ | 8,796 | $ | 9,033 | $ | 4,525 | |||||||
Other items | - | - | 1,111 | ||||||||||
Net charge | $ | 8,796 | $ | 9,033 | $ | 5,636 | |||||||
Restructuring Charges | |||||||||||||
A restructuring charge of $8.8 million was recognized during the year ended December 31, 2014. Following the closure of the Company’s European Phase 1 services in 2013, the Company recognized a charge in 2014 in relation to its Manchester, United Kingdom facility; $5.6 million in relation to asset impairments and $3.2 million in relation to an onerous lease charge associated with this facility. We expect this to be paid by 2024. | |||||||||||||
Onerous | Asset | ||||||||||||
Lease | Impairment | Total | |||||||||||
(in thousands) | |||||||||||||
Total provision recognized | $ | 3,167 | $ | 5,629 | $ | 8,796 | |||||||
Asset write-off | - | (5,629 | ) | (5,629 | ) | ||||||||
Provision at December 31, 2014 | $ | 3,167 | - | $ | 3,167 | ||||||||
Prior Period Restructuring Charges | |||||||||||||
Restructuring and other items of $9.0 million were recorded during the year ended December 31, 2013. During 2013 the Company conducted a review of its operations. This review resulted in the adoption of an initial restructuring plan, which included the closure of its Phase I facility in Omaha, Nebraska. This followed the expansion of the Company’s Phase I facility in San Antonio, Texas and the consolidation of the Company’s US Phase I capabilities in this location. The restructuring plan also included resource rationalizations in certain areas of the business to improve resource utilization. A further restructuring plan was also adopted during 2013 which resulted in resource rationalizations in order to improve operating efficiencies and reduce expenses. Details of the movement in this restructuring plan are as follows: | |||||||||||||
Workforce | Office | ||||||||||||
Reductions | Consolidations | Total | |||||||||||
(in thousands) | |||||||||||||
Q1 Plan - Initial provision recognized | $ | 3,903 | $ | 509 | $ | 4,412 | |||||||
Q2 Plan - Initial provision recognized | 4,228 | 393 | 4,621 | ||||||||||
Total provision recognized | 8,131 | 902 | 9,033 | ||||||||||
Cash payments | (6,544 | ) | (199 | ) | (6,743 | ) | |||||||
Amounts released | (93 | ) | - | (93 | ) | ||||||||
Foreign exchange movement | (3 | ) | - | (3 | ) | ||||||||
Provision at December 31, 2013 | $ | 1,491 | $ | 703 | $ | 2,194 | |||||||
Cash payments | (1,319 | ) | (337 | ) | (1,656 | ) | |||||||
Amounts released | - | - | - | ||||||||||
Foreign exchange movement | (1 | ) | - | (1 | ) | ||||||||
Provision at December 31, 2014 | $ | 171 | $ | 366 | $ | 537 | |||||||
Other Items | |||||||||||||
On September 30, 2011 Mr. Peter Gray retired as Chief Executive Officer (“CEO”) of the Company, in accordance with the provisions of his service agreement, which was terminable on twelve months notice by either party. On October 1, 2011 Mr. Gray was appointed Vice Chairman of the Board. On June 11, 2012 the Company entered into an agreement with Mr. Gray whereby Mr. Gray’s employment and directorship of ICON plc and other ICON group companies would terminate on July 19, 2012. Under the terms of this agreement Mr. Gray would be entitled to be paid €160,000 ($220,000) in lieu of the balance of his notice period and to receive a discretionary bonus of €194,000 ($271,000) in respect of 2012. In addition, under the agreement Mr. Gray’s unvested share options would vest on the date of termination of his employment. The Company recognized a share-based compensation charge of $738,000 in respect of these options during the year ended December 31, 2012, $620,000 of which was recognized within restructuring and other items. |
Provision_for_Doubtful_Debts
Provision for Doubtful Debts | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Provision for Doubtful Debts | 15. Provision for Doubtful Debts | ||||||||
The Company does business with most major international pharmaceutical companies. Provision for doubtful debts at December 31, 2014 comprises: | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Opening provision | $ | 3,148 | $ | 5,047 | |||||
Amounts used during the year | (502 | ) | (3,132 | ) | |||||
Amounts provided during the year | 2,874 | 1,368 | |||||||
Amounts released during the year | (62 | ) | (135 | ) | |||||
Closing provision | $ | 5,458 | $ | 3,148 |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies | 16. Commitments and Contingencies | ||||
Litigation | |||||
The Company is not party to any litigation or other legal proceedings that the Company believes could reasonably be expected to have a material adverse effect on the Company's business, results of operations and financial condition. | |||||
Operating Leases | |||||
The Company has several non-cancelable operating leases, primarily for facilities, that expire over the next 10 years. These leases generally contain renewal options and require the Company to pay all executory costs such as maintenance and insurance. The Company recognized $54.3 million, $54.9 million and $52.5 million in rental expense, including rates, for the years ended December 31, 2014, December 31, 2013 and December 31, 2012 respectively. Future minimum rental commitments for operating leases with non-cancelable terms in excess of one year are as follows: | |||||
Minimum rental payments | |||||
(in thousands) | |||||
2015 | 43,122 | ||||
2016 | 34,733 | ||||
2017 | 24,096 | ||||
2018 | 19,049 | ||||
2019 | 14,000 | ||||
Thereafter | 54,824 | ||||
Total | $ | 189,824 |
Business_Segment_and_Geographi
Business Segment and Geographical Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Business Segment and Geographical Information | 17. Business Segment and Geographical Information | ||||||||||||
The Company is a contract 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 determines and presents operating segments based on the information that is internally provided to the Chief Executive Officer, Chief Financial Officer and Chief Operating Officer, who together are considered the Company’s chief operating decision maker, in accordance with FASB ASC 280-10 Disclosures about Segments of an Enterprises and Related Information. | |||||||||||||
Revenues are allocated to individual entities based on where the work is performed in accordance with the Company’s global transfer pricing model. Revenues and income from operations in Ireland are a function of this transfer pricing model. | |||||||||||||
Given ICON Clinical Research Limited (“ICON Ireland”) role in the development and management of the group, it’s ownership of key intellectual property, customer relationships, its key role in the mitigation of risks faced by the group, plus the responsibility for maintaining the group’s global network, ICON Ireland acts as the group entrepreneur and enters into the majority of the Company’s customer contracts. As such, ICON Ireland remunerates most of the other operating entities (“cost plus service providers”) 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 in the various geographical areas 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. | |||||||||||||
Under this method, the residual operating profits (or losses) of the group, once the cost plus service providers have been paid their respective intercompany service fee, generally fall to be retained by ICON Ireland. The geographic split of revenue disclosed for each region outside Ireland is the cost plus revenue attributable to these entities. The revenues disclosed as relating to Ireland are the net revenues 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, France, Germany, Italy, Spain, The Netherlands, Sweden, Turkey, Poland, Czech Republic, Lithuania, Latvia, Russia, Ukraine, Hungary, Israel, Romania, Switzerland, Canada, Mexico, Brazil, Colombia, Argentina, Chile, Peru, India, China, South Korea, Japan, Thailand, Taiwan, Singapore, The Philippines, Australia, New Zealand, and South Africa. | |||||||||||||
Business segment and geographical information as at December 31, 2014 and December 31, 2013 and for the years ended December 31, 2014, December 31, 2013 and December 31, 2012 is as follows: | |||||||||||||
a) The distribution of net revenue by geographical area was as follows: | |||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Ireland | $ | 360,376 | $ | 272,683 | $ | 171,977 | |||||||
Rest of Europe | 372,634 | 333,543 | 338,537 | ||||||||||
U.S. | 605,815 | 582,250 | 471,700 | ||||||||||
Other | 164,491 | 147,582 | 132,792 | ||||||||||
Total | $ | 1,503,316 | $ | 1,336,058 | $ | 1,115,006 | |||||||
b) The distribution of income from operations, including restructuring and other items, by geographical area was as follows: | |||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Ireland | $ | 138,185 | $ | 81,811 | $ | 9,659 | |||||||
Rest of Europe | 14,481 | 2,831 | 29,240 | ||||||||||
U.S. | 39,058 | 29,472 | 21,036 | ||||||||||
Other | 10,626 | 7,053 | 8,082 | ||||||||||
Total | $ | 202,350 | $ | 121,167 | $ | 68,017 | |||||||
c) The distribution of income from operations, excluding restructuring and other items, by geographical area was as follows: | |||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Ireland | $ | 138,185 | $ | 82,867 | $ | 11,733 | |||||||
Rest of Europe | 23,277 | 6,269 | 29,786 | ||||||||||
U.S. | 39,058 | 33,564 | 23,687 | ||||||||||
Other | 10,626 | 7,500 | 8,447 | ||||||||||
Total | $ | 211,146 | $ | 130,200 | $ | 73,653 | |||||||
d) The distribution of property, plant and equipment, net, by geographical area was as follows: | |||||||||||||
December 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Ireland | $ | 95,574 | $ | 103,868 | |||||||||
Rest of Europe | 10,419 | 14,630 | |||||||||||
U.S. | 33,978 | 33,947 | |||||||||||
Other | 8,214 | 8,385 | |||||||||||
Total | $ | 148,185 | $ | 160,830 | |||||||||
e) The distribution of depreciation and amortization by geographical area was as follows: | |||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Ireland | $ | 20,731 | $ | 19,826 | $ | 17,885 | |||||||
Rest of Europe | 7,478 | 6,595 | 7,211 | ||||||||||
U.S. | 20,491 | 16,233 | 13,865 | ||||||||||
Other | 3,842 | 3,860 | 3,862 | ||||||||||
Total | $ | 52,542 | $ | 46,514 | $ | 42,823 | |||||||
f) The distribution of total assets by geographical area was as follows: | |||||||||||||
December 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Ireland | $ | 495,747 | $ | 581,568 | |||||||||
Rest of Europe | 324,086 | 321,661 | |||||||||||
U.S. | 648,559 | 486,232 | |||||||||||
Other | 60,458 | 52,999 | |||||||||||
Total | $ | 1,528,850 | $ | 1,442,460 | |||||||||
g) The distribution of capital expenditures by geographical area was as follows: | |||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Ireland | $ | 15,117 | $ | 3,976 | $ | 12,406 | |||||||
Rest of Europe | 2,278 | 1,887 | 2,506 | ||||||||||
U.S. | 12,224 | 20,842 | 13,389 | ||||||||||
Other | 3,160 | 2,783 | 4,725 | ||||||||||
Total | $ | 32,779 | $ | 29,488 | $ | 33,026 | |||||||
h) The following table sets forth the clients which represented 10% or more of the Company's net revenue in each of the periods set out below. | |||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Client A | 31 | % | 26 | % | 18 | % | |||||||
Client B | - | * | 10 | % | 12 | % | |||||||
* Net revenue did not exceed 10%. | |||||||||||||
i) The distribution of interest income by geographical area was as follows: | |||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Ireland | $ | 284 | $ | 355 | $ | 464 | |||||||
Rest of Europe | 798 | 501 | 661 | ||||||||||
U.S. | - | - | 3 | ||||||||||
Other | 69 | 130 | 23 | ||||||||||
Total | $ | 1,151 | $ | 986 | $ | 1,151 | |||||||
j) The distribution of the tax charge by geographical area was as follows: | |||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Ireland | $ | 18,384 | $ | 11,073 | $ | 1,216 | |||||||
Rest of Europe | 2,855 | (7 | ) | 3,298 | |||||||||
U.S. | 4,860 | 5,072 | 3,669 | ||||||||||
Other | 4,149 | 1,915 | 3,618 | ||||||||||
Total | $ | 30,248 | $ | 18,053 | $ | 11,801 |
Supplemental_Disclosure_of_Cas
Supplemental Disclosure of Cash Flow Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplemental Disclosure of Cash Flow Information | 18. Supplemental Disclosure of Cash Flow Information | ||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Non-cash interest on acquisition consideration payable* | - | $ | 240 | $ | 940 | ||||||||
Cash paid for interest | $ | 533 | $ | 548 | $ | 602 | |||||||
Cash paid for income taxes | $ | 17,829 | $ | 14,103 | $ | 18,475 | |||||||
* recorded within interest expense |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accumulated Other Comprehensive Income | 19. Accumulated Other Comprehensive Income | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Currency translation adjustments | $ | (22,210 | ) | $ | 22,828 | ||||
Currency impact on long term funding (Net of tax) | (9,252 | ) | (18,880 | ) | |||||
Actuarial loss on defined benefit pension plan (note 9) | (6,113 | ) | (1,988 | ) | |||||
Unrealised capital gain/(loss) – investments (note 3) | 20 | - | |||||||
Total | $ | (37,555 | ) | $ | 1,960 |
Impact_of_New_Accounting_Prono
Impact of New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
Impact of New Accounting Pronouncements | 20. Impact of New Accounting Pronouncements |
In January 2015, the FASB issued ASU No. 2015-01 Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. ASU 2015-01 eliminates the separate presentation of extraordinary items, net of tax and the related earnings per share, but does not affect the requirement to disclose material items that are unusual in nature or infrequently occurring. The amendments in ASU 2015-01 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The Company does not expect the adoption of ASU 2015-01 to have a material impact on the financial statements. | |
In June 2014, the FASB issued ASU No. 2014-12 Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force). ASU 2014-12 requires a reporting entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. A reporting entity should apply FASB ASC Topic 718, Compensation—Stock Compensation, to awards with performance conditions that affect vesting. ASU 2014-12 requires a reporting entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. A reporting entity should apply FASB ASC Topic 718, Compensation—Stock Compensation, to awards with performance conditions that affect vesting. The amendments in ASU 2014-12 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The Company does not expect the adoption of ASU 2014-18 to have a material impact on the financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606). ASU 2014-09 provides a five-step analysis of transactions to determine when and how revenue is recognized. The ASU will require many companies to use more judgment than under current U.S. GAAP. The amendments in ASU 2014-09 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company does not expect the adoption of ASU 2014-09 to have a material impact on the financial statements. | |
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The amendments in ASU 2013-11 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of ASU 2013-11 did not have a material impact on the financial statements. | |
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. When a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity, the parent is required to apply the guidance in Subtopic 830-30 to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. For an equity method investment that is a foreign entity, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment. However, this treatment does not apply to an equity method investment that is not a foreign entity. In those instances, the cumulative translation adjustment is released into net income only if the partial sale represents a complete or substantially complete liquidation of the foreign entity that contains the equity method investment. The amendments in ASU 2013-05 are effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of ASU 2013-05 did not have a material impact on the financial statements. |
Related_Parties
Related Parties | 12 Months Ended |
Dec. 31, 2014 | |
Related Parties | 21. Related Parties |
On July 19, 2012, Mr. Peter Gray retired as a Director and employee of the Company. The Company subsequently entered into an agreement with Integritum Limited, a company controlled by Mr. Gray, for the provision of consultancy services for a period of two years from August 1, 2012, at an agreed fee of €265,000 ($350,000) per annum. | |
On December 31, 2009, Dr. John Climax retired as Chairman of the Board of the Company. From January 2010 he has held the position as an outside director of the Company. The Company entered into an agreement with Rotrua Limited, a company controlled by Dr. Climax for the provision of consultancy services for a period of three years from January 1, 2010, at an agreed fee of €262,500 ($346,000) per annum. The consultancy agreement expired in December 2012. |
Subsequent_Events
Subsequent Events | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Subsequent Events | 22. Subsequent Events | ||||
Acquisition of MediMedia Pharma Solotions. | |||||
On February 27, 2015 the Company acquired MediMedia Pharma Solutions for a total cash consideration of $120.0 million. Headquartered in Yardley, Pennsylvania, MediMedia Pharma Solutions includes MediMedia Managed Markets and Complete Healthcare Communications. MediMedia Managed Markets is a leading provider of strategic payer-validated market access solutions. Complete Healthcare Communications is one of the leading medical and scientific communication agencies working with medical affairs, commercial and brand development teams within life science companies. | |||||
The folowing table summarizes the Company’s provisional estimates of the fair values of the assets acquired and liabilities assumed: | |||||
February 27, | |||||
2015 | |||||
(In thousands) | |||||
Property, plant and equipment | $ | 796 | |||
Accounts receivable | 4,877 | ||||
Unbilled revenue | 4,826 | ||||
Prepayments and other current assets | 721 | ||||
Accounts payable | (671 | ) | |||
Other liabilities | (4,763 | ) | |||
Payments on account | (4,376 | ) | |||
Net assets acquired | $ | 1,410 | |||
It is anticipated that goodwill arising from the acquisition of the MediMedia Managed Markets will comprise an established workforce with experience in the provision of strategic payer-validated market access solutions while the acquisition of Complete Healthcare Communications will comprise an established workforce with significant communication experience working with medical affairs, commercial and brand development teams within the life science industry. Other intangible assets are expected to comprise customer relationships. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Basis of Consolidation | (a) Basis of consolidation | ||||||||||||
The consolidated financial statements include the financial statements of the Company and all of its subsidiaries. All significant intercompany profits, transactions and account balances have been eliminated. The results of subsidiary undertakings acquired in the period are included in the consolidated statement of operations from the date of acquisition. | |||||||||||||
Use of Estimates | (b) Use of estimates | ||||||||||||
The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. The principle management estimates and judgements used in preparing the financial statements relate to revenue recognition, taxation, goodwill and business combinations. | |||||||||||||
Revenue Recognition | (c) Revenue recognition | ||||||||||||
The Company primarily earns revenues by providing a number of different services to its customers. These services, which are integral elements of the clinical development process, include clinical trials management, biometric activities, consulting, imaging, contract staffing, informatics and laboratory services. Contracts range in duration from a number of months to several years. Revenue for services, as rendered, is recognized only after persuasive evidence of an arrangement exists, the sales price is fixed or determinable and collectability is reasonably assured. | |||||||||||||
Clinical trials management revenue is recognized on a proportional performance method. Depending on the contractual terms revenue is either recognized on the percentage of completion method based on the relationship between hours incurred and the total estimated hours of the trial or on the unit of delivery method. Contract costs equate to the product of labor hours incurred and compensation rates. For the percentage of completion method, the input (effort expended) method has been used to measure progress towards completion as there is a direct relationship between input and productivity. Contract revenue is the product of the aggregated labor hours required to complete the specified contract tasks at the agreed contract rates. The Company regularly reviews the estimate of total contract time to ensure such estimates remain appropriate taking into account actual contract stage of completion, remaining time to complete and any identified changes to the contract scope. Remaining time to complete depends on the specific contract tasks and the complexity of the contract and can include geographical site selection and initiation, patient enrolment, patient testing and level of results analysis required. While the Company may routinely adjust time estimates, the Company’s estimates and assumptions historically have been accurate in all material respects in the aggregate. Where revenue is recognized on the unit of delivery method, the basis applied is the number of units completed as a percentage of the total number of contractual units. | |||||||||||||
Biometrics revenue is recognized on a fee-for-service method as each unit of data is prepared on the basis of the number of units completed in a period as a percentage of the total number of contracted units. Imaging revenue is recognized on a fee-for-service basis recognizing revenue for each image completed. Consulting revenue is recognized on a fee-for-service basis as each hour of the related service is performed. Contract staffing revenue is recognized on a fee-for-service basis, over the time the related service is performed, or in the case of permanent placement, once the candidate has been placed with the client. Informatics revenue is recognized on a fee-for-service basis. Informatics contracts are treated as multiple element arrangements, with contractual elements comprising licence fee revenue, support fee revenue and revenue from software services, each of which can be sold separately. Sales prices for contractual elements are determined by reference to objective and reliable evidence of their sales price. Licence and support fee revenues are recognized rateably over the period of the related agreement. Revenue from software services is recognized using the percentage of completion method based on the relationship between hours incurred and the total estimated hours required to perform the service. | |||||||||||||
Laboratory service revenue is recognized on a fee-for-service basis. The Company accounts for laboratory service contracts as multiple element arrangements, with contractual elements comprising laboratory kits and laboratory testing, each of which can be sold separately. Sales prices for contractual elements are determined by reference to objective and reliable evidence of their sales price. Revenues for contractual elements are recognized on the basis of the number of deliverable units completed in the period. | |||||||||||||
Contracts generally contain provisions for renegotiation in the event of changes in the scope, nature, duration, or volume of services of the contract. Renegotiated amounts are recognized as revenue by revision to the total contract value arising as a result of an authorised customer change order. | |||||||||||||
The difference between the amount of revenue recognized and the amount billed on a particular contract is included in the balance sheet as unbilled revenue or payments on account. Normally, amounts become billable upon the achievement of certain milestones, for example, target patient enrollment rates, clinical testing sites initiated or case report forms completed. Once the milestone target is reached, amounts become billable in accordance with pre-agreed payment schedules included in the contract or on submission of appropriate billing detail. Such cash payments are not representative of revenue earned on the contract as revenues are recognized over the period in which the specified contractual obligations are fulfilled. Amounts included in unbilled revenue are expected to be collected within one year and are included within current assets. Advance billings to customers, for which revenue has not been recognized, are recognized as payments on account within current liabilities. | |||||||||||||
In the event of contract termination, if the value of work performed and recognized as revenue is greater than aggregate milestone billings at the date of termination, cancellation clauses usually ensure that the Company is paid for all work performed to the termination date. | |||||||||||||
Reimbursable Expenses | (d) Reimbursable expenses | ||||||||||||
Reimbursable expenses comprise investigator payments and certain other costs which are reimbursed by clients under terms specific to each contract and are deducted from gross revenue in arriving at net revenue. Investigator payments are accrued based on patient enrollment over the life of the contract. Investigator payments are made based on predetermined contractual arrangements, which may differ from the accrual of the expense. | |||||||||||||
Direct Costs | (e) Direct costs | ||||||||||||
Direct costs consist of compensation, associated employee benefits and share-based payments for project-related employees and other direct project-related costs. | |||||||||||||
Advertising Costs | (f) Advertising costs | ||||||||||||
All costs associated with advertising and promotion are expensed as incurred. The advertising and promotion expense was $3,563,900, $5,195,120 and $3,679,000 for the years ended December 31, 2014, December 31, 2013 and December 31, 2012 respectively. | |||||||||||||
Foreign Currencies and Translation of Subsidiaries | (g) Foreign currencies and translation of subsidiaries | ||||||||||||
The Company's financial statements are prepared in United States dollars. Transactions in currencies other than United States dollars are recorded at the rate ruling at the date of the transactions. Monetary assets and liabilities denominated in currencies other than United States dollars are translated into United States dollars at exchange rates prevailing at the balance sheet date. Adjustments resulting from these translations are charged or credited to income. Amounts credited or charged to the statement of operations for the years ended December 31, 2014, December 31, 2013 and December 31, 2012 were as follows: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
(in thousands) | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Amounts (credited) | $ | (5,942 | ) | $ | (1,233 | ) | $ | (1,231 | ) | ||||
The financial statements of subsidiaries with other functional currencies are translated at period end rates for the balance sheet and average rates for the statement of operations. Translation gains and losses arising are reported as a movement on accumulated other comprehensive income. | |||||||||||||
Disclosure About Fair Value of Financial Instruments | (h) Disclosure about fair value of financial instruments | ||||||||||||
The following methods and assumptions were used to estimate the fair value of each material class of financial instrument: | |||||||||||||
Cash, cash equivalents, unbilled revenue, other receivables, short term investments, prepayments and other current assets, accounts receivable, accounts payable, investigator payments, payments on account, accrued liabilities, accrued bonuses and income taxes payable have carrying amounts that approximate fair value due to the short term maturities of these instruments. Other liabilities’ carrying amounts approximate fair value based on net present value of estimated future cash flows. | |||||||||||||
Business Combinations | (i) Business combinations | ||||||||||||
The cost of a business combination is measured as the aggregate of the fair values at the date of exchange of assets given, liabilities incurred or assumed and equity instruments issued in exchange for control. Where a business combination agreement provides for an adjustment to the cost of the acquisition which is contingent upon future events, the amount of the estimated adjustment is recognized at the acquisition date at the fair value of this contingent consideration. Any changes to this estimate in subsequent periods will depend on the classification of the contingent consideration. If the contingent consideration is classified as equity it shall not be re-measured and the settlement shall be accounted for within equity. If the contingent consideration is classified as a liability any adjustments will be accounted for through the Consolidated Statement of Operations or other comprehensive income depending on whether the liability is considered a financial instrument. | |||||||||||||
The assets, liabilities and contingent liabilities of businesses acquired are measured at their fair values at the date of acquisition. In the case of a business combination which is completed in stages, the fair values of the identifiable assets, liabilities and contingent liabilities are determined at the date of each exchange transaction. When the initial accounting for a business combination is determined provisionally, any subsequent adjustments to the provisional values allocated to the identifiable assets, liabilities and contingent liabilities are made within twelve months of the acquisition date and presented as adjustments to the original acquisition accounting. | |||||||||||||
Goodwill and Impairment | (j) Goodwill and Impairment | ||||||||||||
Goodwill represents the excess of the cost of acquired entities over the net amounts assigned to assets acquired and liabilities assumed. Goodwill primarily comprises acquired workforce in place which does not qualify for recognition as an asset apart from goodwill. Goodwill is stated net of any provision for impairment. The Company tests goodwill annually for any impairments or whenever events occur which may indicate impairment. The first step is to compare the carrying amount of the reporting unit’s assets to the fair value of the reporting unit. If the carrying amount exceeds the fair value then a second step is completed which involves the fair value of the reporting unit being allocated to each asset and liability with the excess being implied goodwill. The impairment loss is the amount by which the recorded goodwill exceeds the implied goodwill. No impairment was recognized as a result of the impairment testing carried out for the years ended December 31, 2014, December 31, 2013 and December 31, 2012. | |||||||||||||
Intangible Assets | (k) Intangible assets | ||||||||||||
Intangible assets are amortized on a straight line basis over their estimated useful life. | |||||||||||||
Cash and Cash Equivalents | (l) Cash and cash equivalents | ||||||||||||
Cash and cash equivalents include cash and highly liquid investments with initial maturities of three months or less and are stated at cost, which approximates market value. | |||||||||||||
Short Term Investments - Available for Sale | (m) Short term investments - available for sale | ||||||||||||
The Company classifies short-term investments as available for sale in accordance with the terms of FASB ASC 320, Investments – Debt and Equity Securities. Realized gains and losses are determined using specific identification. The investments are reported at fair value, with unrealized gains or losses reported in a separate component of shareholders’ equity. Any differences between the cost and fair value of the investments are represented by accrued interest. | |||||||||||||
Inventory | (n) Inventory | ||||||||||||
Inventory is valued at the lower of cost and net market value and after provisions for obsolescence. Cost of inventories comprises the purchase price and attributable costs, less trade discounts. At December 31, 2014 the carrying value of inventory, included within prepayments and other current assets on the balance sheet, was $1.7 million (2013: $2.2 million). | |||||||||||||
Property, Plant and Equipment | (o) Property, plant and equipment | ||||||||||||
Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation of property, plant and equipment is computed using the straight line method based on the estimated useful lives of the assets as listed below: | |||||||||||||
Years | |||||||||||||
Building | 40 | ||||||||||||
Computer equipment and software | 8-Feb | ||||||||||||
Office furniture and fixtures | 8 | ||||||||||||
Laboratory equipment | 5 | ||||||||||||
Motor vehicles | 5 | ||||||||||||
Leasehold improvements are amortized using the straight-line method over the estimated useful life of the asset or the lease term, whichever is shorter. | |||||||||||||
Leased Assets | (p) Leased assets | ||||||||||||
Costs in respect of operating leases are charged to the statement of operations on a straight line basis over the lease term. | |||||||||||||
Assets acquired under capital finance leases are included in the balance sheet at the present value of the future minimum lease payments and are depreciated over the shorter of the lease term and their remaining useful lives. The corresponding liabilities are recorded in the balance sheet and the interest element of the capital lease rental is charged to interest expense. | |||||||||||||
Income Taxes | (q) Income taxes | ||||||||||||
The Company applies the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement. | |||||||||||||
Government Grants | (r) Government grants | ||||||||||||
Government grants received relating to capital expenditures are shown as deferred income and credited to income on a basis consistent with the depreciation policy of the relevant assets. Grants relating to categories of operating expenditures are credited to income in the period in which the expenditure to which they relate is charged. | |||||||||||||
Under the grant agreements amounts received may become repayable in full should certain circumstances specified within the grant agreements occur, including downsizing by the Company, disposing of the related assets, ceasing to carry on its business or the appointment of a receiver over any of its assets. The Company has not recognized any loss contingency having assessed as remote the likelihood of these events arising. | |||||||||||||
Research and Development Credits | (s) Research and development credits | ||||||||||||
Research and development credits are available to the Company under the tax laws in certain jurisdictions, based on qualifying research and development spend as defined under those tax laws. Research and development credits are generally recognized as a reduction of income tax expense. However, certain tax jurisdictions provide refundable credits that are not wholly dependent on the Company’s ongoing income tax status or income tax position. In these circumstances the benefit of these credits is not recorded as a reduction to income tax expense, but rather as a reduction of operating expenditure. | |||||||||||||
Pension Costs | (t) Pension costs | ||||||||||||
The Company contributes to defined contribution plans covering all eligible employees. The Company contributes to these plans based upon various fixed percentages of employee compensation and such contributions are expensed as incurred. | |||||||||||||
The Company operates, through a subsidiary, a defined benefit plan for certain of its United Kingdom employees. The Company accounts for the costs of this plan using actuarial models required by FASB ASC 715-30 and the plan is presented in accordance with the requirements of FASB ASC 715-60 Defined Benefit Plans – Other Post retirement. | |||||||||||||
Net Income per Ordinary Share | (u) Net income per ordinary share | ||||||||||||
Basic net income per ordinary share 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. The reconciliation of the number of shares used in the computation of basic and diluted net income per ordinary share is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average number of ordinary shares outstanding for basic net income per ordinary share | 61,496,115 | 60,907,274 | 59,968,174 | ||||||||||
Effect of dilutive share options outstanding | 1,635,302 | 1,345,977 | 482,532 | ||||||||||
Weighted average number of ordinary shares outstanding for diluted net income per ordinary share | 63,131,417 | 62,253,251 | 60,450,706 | ||||||||||
Share-Based Compensation | (v) Share-based compensation | ||||||||||||
The Company accounts for its share options , restricted share units (“RSU’s”) and performance share units (“PSU’s”) in accordance with the provisions of FASB ASC 718, Compensation – Stock Compensation. Share-based compensation expense for equity-settled awards made to employees and directors is measured and recognized based on estimated grant date fair values. These equity-settled awards include employee share options, RSU’s and PSU’s. | |||||||||||||
Share-based compensation expense for share options awarded to employees and directors is estimated at the grant date based on each option’s fair value as calculated using the Black-Scholes option-pricing model. Share-based compensation for RSU’s and PSU’s awarded to employees and directors is calculated based on the market value of the Company’s shares on the date of award of the RSU’s and PSU’s. The value of awards expected to vest is recognized as an expense over the requisite service periods. Forfeitures are estimated on the date of grant and revised if actual or expected forfeiture activity differs materially from original estimates. | |||||||||||||
Estimating the grant date fair value of share options as of the grant date using an option-pricing model, such as the Black-Scholes model, is affected by the Company’s share price as well as assumptions regarding a number of complex variables. These variables include, but are not limited to, the expected share price volatility over the term of the awards, risk-free interest rates, and the expected term of the awards. | |||||||||||||
Impairment of Long-Lived Assets | (w) Impairment of long-lived assets | ||||||||||||
Long lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount of the asset or fair value less selling costs. | |||||||||||||
Reclassifications | (x) Reclassifications | ||||||||||||
Certain amounts in the consolidated financial statements have been reclassified where necessary to conform to the current year presentation. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Adjustments Resulting From Foreign Currency Translations | Amounts credited or charged to the statement of operations for the years ended December 31, 2014, December 31, 2013 and December 31, 2012 were as follows: | ||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
(in thousands) | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Amounts (credited) | $ | (5,942 | ) | $ | (1,233 | ) | $ | (1,231 | ) | ||||
Estimated Useful Lives of Assets | Depreciation of property, plant and equipment is computed using the straight line method based on the estimated useful lives of the assets as listed below: | ||||||||||||
Years | |||||||||||||
Building | 40 | ||||||||||||
Computer equipment and software | 8-Feb | ||||||||||||
Office furniture and fixtures | 8 | ||||||||||||
Laboratory equipment | 5 | ||||||||||||
Motor vehicles | 5 | ||||||||||||
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: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average number of ordinary shares outstanding for basic net income per ordinary share | 61,496,115 | 60,907,274 | 59,968,174 | ||||||||||
Effect of dilutive share options outstanding | 1,635,302 | 1,345,977 | 482,532 | ||||||||||
Weighted average number of ordinary shares outstanding for diluted net income per ordinary share | 63,131,417 | 62,253,251 | 60,450,706 |
Short_term_investments_availab1
Short term investments - available for sale (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Cost and Fair Value of Investments | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
At start of year | $ | 138,317 | $ | 76,183 | |||||
Additions | 61,328 | 172,168 | |||||||
Disposals | (102,565 | ) | (109,795 | ) | |||||
Unrealized capital gain/(loss) - investments | 20 | (239 | ) | ||||||
At end of year | $ | 97,100 | $ | 138,317 |
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Goodwill | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Opening goodwill | $ | 357,523 | $ | 315,441 | |||||
Current year acquisitions | 121,209 | 36,922 | |||||||
Foreign exchange movement | (15,408 | ) | 5,160 | ||||||
Closing goodwill | $ | 463,324 | $ | 357,523 | |||||
Aptiv Solutions | |||||||||
Summary of Estimates of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary estimated fair values of the assets acquired and the liabilities assumed: | ||||||||
7-May | |||||||||
2014 | |||||||||
(in thousands) | |||||||||
Property, plant and equipment | $ | 6,924 | |||||||
Goodwill* | 121,209 | ||||||||
Intangible asset** | 30,037 | ||||||||
Cash and cash equivalents | 3,527 | ||||||||
Accounts receivable | 25,091 | ||||||||
Unbilled revenue | 21,154 | ||||||||
Prepayments and other current assets*** | 5,254 | ||||||||
Non-current assets | 2,911 | ||||||||
Accounts payable | (9,565 | ) | |||||||
Other liabilities | (29,903 | ) | |||||||
Payments on account | (31,094 | ) | |||||||
Non-current other liabilities**** | (24,444 | ) | |||||||
Net assets acquired | $ | 121,101 | |||||||
Cash consideration | $ | 143,500 | |||||||
Adjustments to cash consideration***** | (22,399 | ) | |||||||
Net purchase consideration | $ | 121,101 | |||||||
* Goodwill represents the acquisition of an established workforce with experience in clinical trial consulting and regulatory support for the development of drugs, medical devices and diagnostics, with a specific focus on strategy to increase efficiency and productivity in product development. Goodwill related to the US portion of the business acquired is tax deductible. | |||||||||
** The Company have assumed a 20% valuation of Intangible asset. This is currently under review and will be finalized within the 12 month period from the date of acquisition. | |||||||||
*** The Company has included a provisional assessment of uncertain tax benefits relating to certain historic net operating losses carryforwards. This is currently under review and will be finalized within the 12 month period from the date of acquisition. | |||||||||
**** The Company has a defined benefit plan covering its employees in Switzerland as mandated by the Swiss government. Benefits are based on the employee’s years of service and compensation. Benefits are paid directly by the Company when they become due, in conformity with the funding requirements of applicable government regulations. An estimate of the liability at the date of acquisition is included within non-current other liabilities. | |||||||||
***** Adjustments to cash consideration represent certain one-time liabilities identified at the acquisition date. | |||||||||
Proforma Effect in Net Revenue Net Income and Earnings Per Share | The proforma effect of the Aptiv Solutions acquisition if completed on January 1, 2013 would have resulted in net revenue, net income and earnings per share for the fiscal years ended December 31, 2013 and December 31, 2014 as follows: | ||||||||
Year Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Net revenue | $ | 1,543,820 | $ | 1,451,682 | |||||
Net income | $ | 172,508 | $ | 101,857 | |||||
Basic earnings per share | $ | 2.81 | $ | 1.67 | |||||
Diluted earnings per share | $ | 2.73 | $ | 1.64 | |||||
Clinical Trial Services | |||||||||
Summary of Estimates of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed: | ||||||||
15-Feb | |||||||||
2013 | |||||||||
(in thousands) | |||||||||
Property, plant and equipment | $ | 339 | |||||||
Goodwill* | 36,922 | ||||||||
Intangible asset – customer relationships | 3,300 | ||||||||
Intangible asset – order backlog | 600 | ||||||||
Cash and cash equivalents | 1,039 | ||||||||
Accounts receivable | 9,200 | ||||||||
Unbilled revenue | 2,128 | ||||||||
Prepayments and other current assets | 465 | ||||||||
Non-current assets | 6 | ||||||||
Other liabilities | (2,285 | ) | |||||||
Non-current other liabilities | (16 | ) | |||||||
Net assets acquired | $ | 51,698 | |||||||
Cash consideration | $ | 51,897 | |||||||
Working capital adjustment | (199 | ) | |||||||
Net purchase consideration | $ | 51,698 | |||||||
* Goodwill represents the acquisition of an established workforce with experience in the clinical research industry, thereby allowing the Company to enhance its capabilities in global resourcing and FSP and also medical and safety services. Goodwill related to the US portion of the business acquired is tax deductible. | |||||||||
Proforma Effect in Net Revenue Net Income and Earnings Per Share | The proforma effect of the clinical trial services division of Cross Country Healthcare, Inc acquisition if completed on January 1, 2012 would have resulted in net revenue, net income and earnings per share for the fiscal years ended December 31, 2012 and December 31, 2013 as follows: | ||||||||
Year Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Net revenue | $ | 1,343,996 | $ | 1,182,734 | |||||
Net income | $ | 103,133 | $ | 58,944 | |||||
Basic earnings per share | $ | 1.69 | $ | 0.98 | |||||
Diluted earnings per share | $ | 1.66 | $ | 0.98 | |||||
BeijingWits Medical Limited | |||||||||
Summary of Estimates of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the Company’s estimates of the fair values of assets acquired and the liabilities assumed: | ||||||||
15-Feb | |||||||||
2012 | |||||||||
(in thousands) | |||||||||
Property, plant and equipment | $ | 172 | |||||||
Goodwill* | 13,512 | ||||||||
Intangible asset – customer relationships | 1,761 | ||||||||
Intangible asset – order backlog | 376 | ||||||||
Intangible asset – non-compete arrangements | 97 | ||||||||
Cash and cash equivalents | 587 | ||||||||
Accounts receivable | 657 | ||||||||
Unbilled revenue | 176 | ||||||||
Other current assets | 228 | ||||||||
Deferred tax liability | (559 | ) | |||||||
Current liabilities | (1,007 | ) | |||||||
Liability arising from contingent consideration arrangement | (7,000 | ) | |||||||
Net assets acquired | $ | 9,000 | |||||||
Cash consideration | $ | 9,000 | |||||||
Contingent consideration | 7,000 | ||||||||
Amount of total consideration | 16,000 | ||||||||
Liabilities included in preliminary purchase price allocation re contingent consideration | (7,000 | ) | |||||||
Net purchase consideration | $ | 9,000 | |||||||
* Goodwill represents the acquisition of an established workforce with experience in clinical trial execution and regulatory processes in China and is not tax deductible. | |||||||||
Proforma Effect in Net Revenue Net Income and Earnings Per Share | The proforma effect of the BeijingWits acquisition if completed on January 1, 2011 would have resulted in net revenue, net income and earnings per share for the fiscal years ended December 31, 2011 and December 31, 2012 as follows: | ||||||||
Year Ended | |||||||||
December 31, | |||||||||
2012 | 2011 | ||||||||
(in thousands) | |||||||||
Net revenue | $ | 1,115,355 | $ | 989,942 | |||||
Net income | $ | 55,349 | $ | 22,549 | |||||
Basic earnings per share | $ | 0.92 | $ | 0.37 | |||||
Diluted earnings per share | $ | 0.92 | $ | 0.37 | |||||
PriceSpective LLC | |||||||||
Summary of Estimates of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the Company’s estimates of the fair values of assets acquired and the liabilities assumed: | ||||||||
28-Feb | |||||||||
2012 | |||||||||
(in thousands) | |||||||||
Property, plant and equipment | $ | 256 | |||||||
Goodwill* | 42,247 | ||||||||
Intangible asset – customer relationships | 10,237 | ||||||||
Intangible asset – order backlog | 405 | ||||||||
Intangible asset – non-compete arrangements | 392 | ||||||||
Cash and cash equivalents | 2,311 | ||||||||
Accounts receivable | 2,662 | ||||||||
Unbilled revenue | 1,140 | ||||||||
Other current assets | 236 | ||||||||
Current liabilities | (7,788 | ) | |||||||
Liability arising from contingent consideration arrangement | (15,000 | ) | |||||||
Net assets acquired | $ | 37,098 | |||||||
Cash consideration | $ | 37,199 | |||||||
Working capital adjustment | (101 | ) | |||||||
Contingent consideration | 15,000 | ||||||||
Amount of total consideration | 52,098 | ||||||||
Liabilities included in preliminary purchase price allocation re contingent consideration | (15,000 | ) | |||||||
Net purchase consideration | $ | 37,098 | |||||||
* Goodwill represents the acquisition of an established workforce with experience in strategic pricing, market access, HEOR, due diligence support and payer engagement services. Goodwill related to the US portion of the business acquired is tax deductible. | |||||||||
Proforma Effect in Net Revenue Net Income and Earnings Per Share | The proforma effect of the PriceSpective acquisition if completed on January 1, 2011 would have resulted in net revenue, net income and earnings per share for the fiscal years ended December 31, 2011 and December 31, 2012 as follows: | ||||||||
Year Ended | |||||||||
December 31, | |||||||||
2012 | 2011 | ||||||||
(in thousands) | |||||||||
Net revenue | $ | 1,118,410 | $ | 964,388 | |||||
Net income | $ | 55,931 | $ | 25,363 | |||||
Basic earnings per share | $ | 0.93 | $ | 0.42 | |||||
Diluted earnings per share | $ | 0.93 | $ | 0.42 | |||||
MediMedia Pharma Solutions | |||||||||
Summary of Estimates of Fair Values of Assets Acquired and Liabilities Assumed | The folowing table summarizes the Company’s provisional estimates of the fair values of the assets acquired and liabilities assumed: | ||||||||
February 27, | |||||||||
2015 | |||||||||
(In thousands) | |||||||||
Property, plant and equipment | $ | 796 | |||||||
Accounts receivable | 4,877 | ||||||||
Unbilled revenue | 4,826 | ||||||||
Prepayments and other current assets | 721 | ||||||||
Accounts payable | (671 | ) | |||||||
Other liabilities | (4,763 | ) | |||||||
Payments on account | (4,376 | ) | |||||||
Net assets acquired | $ | 1,410 |
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Intangible Assets | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Cost | (in thousands) | ||||||||
Customer relationships acquired | $ | 36,130 | $ | 36,900 | |||||
Technology asset acquired | 11,169 | 11,169 | |||||||
Order backlog | 3,171 | 3,171 | |||||||
Tradenames acquired | 1,357 | 1,357 | |||||||
Volunteer list acquired | 1,325 | 1,325 | |||||||
Non-compete arrangements | 489 | 489 | |||||||
Aptiv intangible asset | 30,037 | - | |||||||
Foreign exchange movement | (2,769 | ) | (62 | ) | |||||
Total cost | 80,909 | 54,349 | |||||||
Accumulated amortization | (32,120 | ) | (22,550 | ) | |||||
Foreign exchange movement | 930 | (445 | ) | ||||||
Net book value | $ | 49,719 | $ | 31,354 | |||||
Future Intangible Asset Amortization Expense | Future intangible asset amortization expense for the years ended December 31, 2015 to December 31, 2019 is as follows: | ||||||||
Year ended | |||||||||
31-Dec | |||||||||
(in thousands) | |||||||||
2015 | $ | 6,506 | |||||||
2016 | 4,972 | ||||||||
2017 | 3,990 | ||||||||
2018 | 3,434 | ||||||||
2019 | 1,491 | ||||||||
$ | 20,393 |
Property_Plant_and_Equipment_n1
Property, Plant and Equipment, net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property Plant and Equipment Net | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Cost | |||||||||
Land | $ | 3,464 | $ | 3,464 | |||||
Building | 88,580 | 96,450 | |||||||
Computer equipment and software | 247,980 | 212,019 | |||||||
Office furniture and fixtures | 64,690 | 68,268 | |||||||
Laboratory equipment | 23,599 | 29,678 | |||||||
Leasehold improvements | 19,516 | 15,304 | |||||||
Motor vehicles | 47 | 56 | |||||||
447,876 | 425,239 | ||||||||
Less accumulated depreciation and asset write off | (299,691 | ) | (264,409 | ) | |||||
Property, plant and equipment (net) | $ | 148,185 | $ | 160,830 |
Other_Liabilities_Tables
Other Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Liabilities | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Personnel related liabilities | $ | 167,362 | $ | 138,639 | |||||
Facility related liabilities | 19,862 | 16,205 | |||||||
General overhead liabilities | 33,422 | 31,034 | |||||||
Other liabilities | 26,631 | 3,019 | |||||||
Short term government grants (note 11) | 110 | 240 | |||||||
Restructuring and other items (note 14) | 3,704 | 2,430 | |||||||
Acquisition consideration payable | - | 3,245 | |||||||
$ | 251,091 | $ | 194,812 |
Other_NonCurrent_Liabilities_T
Other Non-Current Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Noncurrent Liabilities | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Personnel related liabilities | 1,059 | $ | 4,278 | ||||||
Defined benefit pension obligations, net (note 9) | 7,466 | 3,536 | |||||||
Other non-current liabilities | 4,654 | 3,384 | |||||||
$ | 13,179 | $ | 11,198 |
Employee_Benefits_Tables
Employee Benefits (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Pension Costs of Plan | The pension costs of this plan are presented in the following tables in accordance with the requirements of ASC 715-60, Defined Benefit Plans – Other Postretirement. The plan has been closed to new entrants with effect from July 1, 2003. | ||||||||||||
Change in benefit obligation | December 31, | December 31, | |||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Benefit obligation at beginning of year | $ | 24,958 | $ | 22,527 | |||||||||
Service cost | 91 | 251 | |||||||||||
Interest cost | 1,235 | 1,005 | |||||||||||
Plan participants’ contributions | 44 | 75 | |||||||||||
Plan curtailments | 359 | - | |||||||||||
Benefits paid | (68 | ) | (105 | ) | |||||||||
Actuarial loss | 8,270 | 680 | |||||||||||
Foreign currency exchange rate changes | (2,014 | ) | 525 | ||||||||||
Benefit obligation at end of year | $ | 32,875 | $ | 24,958 | |||||||||
Change in plan assets | December 31, | December 31, | |||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Fair value of plan assets at beginning of year | $ | 21,422 | $ | 17,807 | |||||||||
Actual return on plan assets | 5,424 | 2,916 | |||||||||||
Employer contributions | 155 | 224 | |||||||||||
Plan participants’ contributions | 44 | 75 | |||||||||||
Benefits paid | (68 | ) | (105 | ) | |||||||||
Foreign currency exchange rate changes | (1,568 | ) | 505 | ||||||||||
Fair value of plan assets at end of year | $ | 25,409 | $ | 21,422 | |||||||||
Funded Status | Funded status | December 31, | December 31, | ||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Projected benefit obligation | $ | (32,875 | ) | $ | (24,958 | ) | |||||||
Fair value of plan assets | 25,409 | 21,422 | |||||||||||
Funded status | $ | (7,466 | ) | $ | (3,536 | ) | |||||||
Non-current other liabilities | $ | (7,466 | ) | $ | (3,536 | ) | |||||||
Components of Net Periodic Benefit Cost | The following amounts were recorded in the consolidated statement of operations as components of the net periodic benefit cost: | ||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Service cost | $ | 91 | $ | 251 | $ | 242 | |||||||
Interest cost | 1,235 | 1,005 | 964 | ||||||||||
Expected return on plan assets | (1,299 | ) | (983 | ) | (895 | ) | |||||||
Amortization of net loss | 20 | 130 | 179 | ||||||||||
Curtailment loss | 359 | - | - | ||||||||||
Net periodic benefit cost | $ | 406 | $ | 403 | $ | 490 | |||||||
Amounts Recognized in Accumulated Other Comprehensive Income Which Have Not Yet Been Recognized as Components of Net Periodic Benefit Cost | Amounts recognized in accumulated other comprehensive income that have not yet been recognized as components of net periodic benefit cost are as follows: | ||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Net actuarial loss | $ | 6,113 | $ | 1,988 | $ | 3,371 | |||||||
Total | $ | 6,113 | $ | 1,988 | $ | 3,371 | |||||||
Assumptions Used in Calculating Pension Benefit Obligations | The following assumptions were used in determining the benefit obligation at December 31, 2014: | ||||||||||||
December 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Discount rate | 3.6 | % | 4.7 | % | |||||||||
Rate of compensation increase | 3.6 | % | 4 | % | |||||||||
Expected Long Term Rates of Return on Different Asset Classes | The expected long term rates of return on different asset classes are as follows: | ||||||||||||
Asset Category | Expected long-term return per annum | ||||||||||||
Corporate Bonds | 3.6 | % | |||||||||||
Gilts | 2.4 | % | |||||||||||
Underlying Asset Split of Fund | The underlying asset split of the fund is shown below. | ||||||||||||
Asset Category | December 31, | December 31, | |||||||||||
2014 | 2013 | ||||||||||||
Equity | - | 70 | % | ||||||||||
Corporate Bonds | 26 | % | 30 | % | |||||||||
Gilts | 74 | % | - | ||||||||||
100 | % | 100 | % | ||||||||||
Annual Benefit Payments which Reflect Expected Future Service | The following annual benefit payments, which reflect expected future service as appropriate, are expected to be paid. | ||||||||||||
(in thousands) | |||||||||||||
2015 | $ | 65 | |||||||||||
2016 | 67 | ||||||||||||
2017 | 70 | ||||||||||||
2018 | 72 | ||||||||||||
2019 | 73 | ||||||||||||
Years 2020 - 2024 | $ | 294 | |||||||||||
Pension Plans, Defined Benefit | |||||||||||||
Assumptions Used in Calculating Net Periodic Benefit Cost | The following assumptions were used at the commencement of the year in determining the net periodic pension benefit cost for the years ended December 31, 2012, December 31, 2013 and December 31, 2014: | ||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Discount rate | 4.7 | % | 4.6 | % | 4.7 | % | |||||||
Rate of compensation increase | 4 | % | 3.4 | % | 3.5 | % | |||||||
Expected rate of return on plan assets | 6.1 | % | 5.7 | % | 5.8 | % | |||||||
Accumulated other comprehensive income | December 31, | December 31, | December 31, | ||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Actuarial loss - benefit obligation | $ | 8,270 | $ | 680 | $ | 405 | |||||||
Actuarial gain – plan assets | (4,125 | ) | (1,933 | ) | (915 | ) | |||||||
Actuarial gain recognized in net periodic benefit cost | (20 | ) | (130 | ) | (179 | ) | |||||||
Total | $ | 4,125 | $ | (1,383 | ) | $ | (689 | ) | |||||
Fair Value, Inputs, Level 1 | |||||||||||||
Plan Asset Fair Value Measurements | Plan Asset Fair Value Measurements | ||||||||||||
Quoted Prices in Active Markets for Identical | |||||||||||||
Assets | |||||||||||||
Level 1 | |||||||||||||
(in thousands) | |||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||
Cash | $ | 16 | $ | 58 | |||||||||
Fixed Income Securities | |||||||||||||
Legal and General Active Corporate Bond – Over 10 Year | 6,560 | 5,788 | |||||||||||
Legal and General Gilt Funds | 6,977 | - | |||||||||||
Legal and General Index Linked Gilt Funds | 11,856 | - | |||||||||||
Other Types of Investments | |||||||||||||
Baillie Gifford Diversified Growth Fund | - | 8,452 | |||||||||||
Standard Life Global Absolute Return Strategies | - | 7,124 | |||||||||||
$ | 25,409 | $ | 21,422 |
Equity_Incentive_Schemes_and_S1
Equity Incentive Schemes and Stock Compensation Charges (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Transactions for Company's Share Option Plans | The following table summarizes the transactions for the Company’s share option plans for the years ended December 31, 2014, December 31, 2013 and December 31, 2012: | ||||||||||||||||||||||||
Options Granted | Number of | Weighted | Weighted Average Grant | ||||||||||||||||||||||
Under Plans | Shares | Average | Date Fair | ||||||||||||||||||||||
Exercise Price | Value | ||||||||||||||||||||||||
Outstanding at December 31, 2011 | 4,902,818 | 4,902,818 | $ | 21.87 | $ | 8.61 | |||||||||||||||||||
Granted | 842,273 | 842,273 | $ | 22.01 | $ | 9.59 | |||||||||||||||||||
Exercised | (890,236 | ) | (890,236 | ) | $ | 14.62 | $ | 6.16 | |||||||||||||||||
Cancelled | (504,224 | ) | (504,224 | ) | $ | 25.14 | $ | 9.76 | |||||||||||||||||
Outstanding at December 31, 2012 | 4,350,631 | 4,350,631 | $ | 23.01 | $ | 9.17 | |||||||||||||||||||
Granted | 264,950 | 264,950 | $ | 33.09 | $ | 12.05 | |||||||||||||||||||
Exercised | (1,249,759 | ) | (1,249,759 | ) | $ | 21.6 | $ | 8.58 | |||||||||||||||||
Cancelled | (392,034 | ) | (392,034 | ) | $ | 25.27 | $ | 10.02 | |||||||||||||||||
Outstanding at December 31, 2013 | 2,973,788 | 2,973,788 | $ | 24.2 | $ | 9.57 | |||||||||||||||||||
Granted | 366,985 | 366,985 | $ | 45.82 | $ | 14.09 | |||||||||||||||||||
Exercised | (926,407 | ) | (926,407 | ) | $ | 24.02 | $ | 9.45 | |||||||||||||||||
Cancelled | (186,666 | ) | (186,666 | ) | $ | 22.17 | $ | 9.01 | |||||||||||||||||
Outstanding at December 31, 2014 | 2,227,700 | 2,227,700 | $ | 28 | $ | 10.4 | |||||||||||||||||||
Vested and exercisable at December 31, 2014 | 1,024,550 | 1,024,550 | $ | 25.03 | $ | 9.72 | |||||||||||||||||||
Non Vested Shares Outstanding | Non-vested shares outstanding as at December 31, 2014 are as follows: | ||||||||||||||||||||||||
Options | Weighted Average | Weighted Average | |||||||||||||||||||||||
Outstanding | Exercise Price | Fair Value | |||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||
Non-vested outstanding at December 31, 2013 | 1,468,081 | $ | 23.45 | $ | 9.45 | ||||||||||||||||||||
Granted | 366,985 | 45.82 | 14.09 | ||||||||||||||||||||||
Vested | (496,775 | ) | 22.85 | 9.13 | |||||||||||||||||||||
Forfeited | (135,141 | ) | 23.36 | 9.57 | |||||||||||||||||||||
Non-vested outstanding at December 31, 2014 | 1,203,150 | $ | 30.54 | $ | 10.98 | ||||||||||||||||||||
Information Concerning Outstanding and Exercisable Share Options | The following table summarizes information concerning outstanding and exercisable share options as of December 31, 2014: | ||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||
Range Exercise | Number of | Weighted | Weighted | Number of | Weighted Average | ||||||||||||||||||||
Price | Shares | Average | Average Exercise | Shares | Exercise Price | ||||||||||||||||||||
Remaining | Price | ||||||||||||||||||||||||
Contractual Life | |||||||||||||||||||||||||
$15.84 | 50,000 | 2.33 | $15.84 | 50,000 | $15.84 | ||||||||||||||||||||
$16.80 | 90,000 | 4.83 | $16.80 | 30,000 | $16.80 | ||||||||||||||||||||
$17.17 | 18,000 | 4.85 | $17.17 | 6,000 | $17.17 | ||||||||||||||||||||
$18.98 | 600 | 1.87 | $18.98 | 600 | $18.98 | ||||||||||||||||||||
$19.45 | 6,000 | 3.82 | $19.45 | - | $19.45 | ||||||||||||||||||||
$20.16 | 600 | 3.87 | $20.16 | 200 | $20.16 | ||||||||||||||||||||
$20.28 | 344,811 | 4.17 | $20.28 | 187,539 | $20.28 | ||||||||||||||||||||
$20.59 | 115,200 | 5.14 | $20.59 | 23,400 | $20.59 | ||||||||||||||||||||
$21.25 | 19,741 | 0.12 | $21.25 | 19,741 | $21.25 | ||||||||||||||||||||
$22.26 | 125,637 | 2.15 | $22.26 | 125,637 | $22.26 | ||||||||||||||||||||
$22.30 | 352,793 | 5.32 | $22.30 | 113,729 | $22.30 | ||||||||||||||||||||
$23.66 | 8,720 | 5.57 | $23.66 | 3,380 | $23.66 | ||||||||||||||||||||
$24.25 | 50,000 | 3.18 | $24.25 | 50,000 | $24.25 | ||||||||||||||||||||
$24.46 | 217,907 | 3.17 | $24.46 | 145,419 | $24.46 | ||||||||||||||||||||
$26.20 | 2,400 | 3.38 | $26.20 | 1,920 | $26.20 | ||||||||||||||||||||
$26.71 | 4,450 | 5.7 | $26.71 | 1,780 | $26.71 | ||||||||||||||||||||
$29.45 | 3,000 | 3.32 | $29.45 | 2,400 | $29.45 | ||||||||||||||||||||
$31.49 | 11,650 | 6.16 | $31.49 | 1,690 | $31.49 | ||||||||||||||||||||
$32.37 | 187,498 | 6.33 | $32.37 | 38,698 | $32.37 | ||||||||||||||||||||
$35.33 | 211,756 | 1.15 | $35.33 | 211,756 | $35.33 | ||||||||||||||||||||
$36.22 | 34,630 | 6.46 | $36.22 | 6,921 | $36.22 | ||||||||||||||||||||
$37.90 | 10,300 | 6.93 | $37.90 | 2,060 | $37.90 | ||||||||||||||||||||
$40.83 | 111,463 | 7.39 | $40.83 | 680 | $40.83 | ||||||||||||||||||||
$41.25 | 1,000 | 1.67 | $41.25 | 1,000 | $41.25 | ||||||||||||||||||||
$47.03 | 82,147 | 7.17 | $47.03 | - | $47.03 | ||||||||||||||||||||
$48.67 | 163,367 | 7.21 | $48.67 | - | $48.67 | ||||||||||||||||||||
$51.35 | 4,030 | 7.6 | $51.35 | - | $51.35 | ||||||||||||||||||||
$15.84 - $51.35 | 2,227,700 | 4.58 | $28.00 | 1,024,550 | $25.03 | ||||||||||||||||||||
Weighted Average Fair Values and Assumptions Used | The weighted average fair values and assumptions were as follows: | ||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Weighted average fair value | $ | 14.09 | $ | 12.05 | $ | 9.59 | |||||||||||||||||||
Assumptions: | |||||||||||||||||||||||||
Expected volatility | 32 | % | 40 | % | 50 | % | |||||||||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||||||||||
Risk-free interest rate | 1.57 | % | 0.76 | % | 0.83 | % | |||||||||||||||||||
Expected life | 5.0 years | 5.0 years | 5.0 years | ||||||||||||||||||||||
RSU and PSU Activity | The Company has awarded RSU’s and PSU’s to certain key individuals of the Group. The following table summarizes RSU and PSU activity for the year ended December 31, 2014: | ||||||||||||||||||||||||
PSU | PSU | PSU | RSU | RSU | RSU | ||||||||||||||||||||
Outstanding | Weighted | Weighted | Outstanding | Weighted | Weighted | ||||||||||||||||||||
Number of | Average | Average | Number of | Average | Average | ||||||||||||||||||||
Shares | Fair | Remaining Contractual | Shares | Fair Value | Remaining Contractual | ||||||||||||||||||||
Value | Life | Life | |||||||||||||||||||||||
Outstanding at December 31, 2013 | 353,244 | $ | 33.04 | 2.35 | 846,459 | $ | 27.05 | 1.77 | |||||||||||||||||
Granted | 346,108 | $ | 46.34 | 521,926 | $ | 41.84 | |||||||||||||||||||
Shares vested | - | - | (233,726 | ) | $ | 21.11 | |||||||||||||||||||
Forfeited | (30,181 | ) | $ | 34.62 | (95,663 | ) | $ | 32.68 | |||||||||||||||||
Outstanding at December 31, 2014 | 669,171 | $ | 39.78 | 1.77 | 1,038,996 | $ | 35.19 | 1.67 | |||||||||||||||||
Schedule of Non-cash Stock Compensation Expense | Non-cash stock compensation expense for the year ended December 31, 2014 has been allocated as follows: | ||||||||||||||||||||||||
Year ended | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Direct costs | $ | 12,531 | $ | 7,835 | $ | 6,007 | |||||||||||||||||||
Selling, general and administrative | $ | 10,211 | $ | 6,385 | $ | 4,894 | |||||||||||||||||||
Restructuring and other non-recurring items (note 14) | - | - | $ | 620 | |||||||||||||||||||||
Total compensation costs | $ | 22,742 | $ | 14,220 | $ | 11,521 |
Government_Grants_Tables
Government Grants (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Government Grant | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Received | $ | 3,698 | $ | 3,698 | |||||
Less accumulated amortization | (2,710 | ) | (2,497 | ) | |||||
Foreign exchange translation adjustment | 238 | 398 | |||||||
Total government grants | 1,226 | 1,599 | |||||||
Less current portion | (110 | ) | (240 | ) | |||||
Non-current government grants | $ | 1,116 | $ | 1,359 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Components of Income Before Provision for Income Tax Expense | The components of income before provision for income tax expense are as follows: | ||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Ireland | $ | 143,889 | $ | 80,914 | $ | 12,157 | |||||||
United States | 6,966 | 16,218 | 11,371 | ||||||||||
Other | 51,861 | 23,733 | 43,693 | ||||||||||
Income before provision for income taxes | $ | 202,716 | $ | 120,865 | $ | 67,221 | |||||||
Components of Total Income Tax Expense | The components of total income tax expense are as follows: | ||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Provision for income taxes: | |||||||||||||
Current: | |||||||||||||
Ireland | $ | 19,562 | $ | 9,158 | $ | 1,684 | |||||||
United States | 7,891 | 14,492 | 12,290 | ||||||||||
Other | 10,695 | 4,876 | 8,257 | ||||||||||
Total current tax | 38,148 | 28,526 | 22,231 | ||||||||||
Deferred expense/(benefit): | |||||||||||||
Ireland | (1,178 | ) | 1,914 | (287 | ) | ||||||||
United States | (3,031 | ) | (9,420 | ) | (9,715 | ) | |||||||
Other | (3,691 | ) | (2,967 | ) | (428 | ) | |||||||
Total deferred tax expense/(benefit) | (7,900 | ) | (10,473 | ) | (10,430 | ) | |||||||
Provision for income taxes | 30,248 | 18,053 | 11,801 | ||||||||||
Impact on shareholders equity and other comprehensive income of the tax consequence of : | |||||||||||||
Excess tax benefit on stock compensation | (2,404 | ) | (1,651 | ) | (1,274 | ) | |||||||
Currency impact on long term funding | 178 | 87 | 356 | ||||||||||
Total | $ | 28,022 | $ | 16,489 | $ | 10,883 | |||||||
Reconciliation of Consolidated Effective Tax Rate and Statutory Rate | The Company’s consolidated effective tax rate differed from the statutory rate as set forth below; | ||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Taxes at Irish statutory rate of 12.5% (2013:12.5%; | $ | 25,340 | $ | 15,108 | $ | 8,401 | |||||||
2012:12.5%) | |||||||||||||
Foreign and other income taxed at higher rates | 1,981 | 4,085 | 6,360 | ||||||||||
Research & development tax incentives | (1,810 | ) | (2,598 | ) | (4,954 | ) | |||||||
Movement in valuation allowance | (1,965 | ) | 2,389 | 1,557 | |||||||||
Effects of change in tax rates | 543 | 1,553 | 867 | ||||||||||
Increase in unrecognized tax benefits | 2,869 | (1,409 | ) | 646 | |||||||||
Prior year over provision | (552 | ) | (47 | ) | (678 | ) | |||||||
Effects of permanent items | 3,219 | (1,002 | ) | (26 | ) | ||||||||
Other | 623 | (26 | ) | (372 | ) | ||||||||
$ | 30,248 | $ | 18,053 | $ | 11,801 | ||||||||
Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are presented below: | ||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Deferred tax liabilities: | |||||||||||||
Property, plant and equipment | $ | 4,270 | $ | 6,501 | $ | 6,631 | |||||||
Goodwill attributable to intangibles | 18,645 | 14,013 | 11,467 | ||||||||||
Other intangible assets | 3,657 | 970 | 2,707 | ||||||||||
Accruals | 238 | 51 | 77 | ||||||||||
Other | - | 4 | 88 | ||||||||||
Unrealized FX | 1,709 | 1,056 | 1,160 | ||||||||||
Total deferred tax liabilities recognized | 28,519 | 22,595 | 22,130 | ||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss and tax credits carryforwards | 30,586 | 29,696 | 26,545 | ||||||||||
Property, plant and equipment | 4,002 | 2,739 | 2,345 | ||||||||||
Accrued expenses and payments on account | 37,620 | 30,136 | 20,326 | ||||||||||
Stock compensation | 8,717 | 6,291 | 5,586 | ||||||||||
Deferred compensation expense | 1,853 | 1,187 | 1,136 | ||||||||||
Other | 892 | - | - | ||||||||||
Unrealized FX | 352 | 92 | 98 | ||||||||||
Total deferred tax assets | 84,022 | 70,141 | 56,036 | ||||||||||
Valuation allowance for deferred tax assets | (23,145 | ) | (24,348 | ) | (21,190 | ) | |||||||
Deferred tax assets recognized | 60,877 | 45,793 | $ | 34,846 | |||||||||
Deferred tax assets net of unrecognized tax benefits | 60,877 | 45,793 | 34,846 | ||||||||||
Overall Net deferred tax asset | 32,358 | $ | 23,198 | $ | 12,716 | ||||||||
Expected Expiry Dates of NOL's | The expected expiry dates of these losses are as follows: | ||||||||||||
Federal | State | ||||||||||||
NOL’s | NOL’s | ||||||||||||
(in thousands) | |||||||||||||
2015- 2020 | 678 | 1,893 | |||||||||||
2021- 2025 | 4,031 | 12,705 | |||||||||||
2026- 2033 | 32,170 | 50,542 | |||||||||||
$ | 36,879 | $ | 65,140 | ||||||||||
Reconciliation of Beginning and Ending Amount of Total Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows: | ||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Gross amount of unrecognized tax benefits at start of year | $ | 5,780 | $ | 7,189 | $ | 6,543 | |||||||
Increase related to acquired tax positions | 14,552 | - | - | ||||||||||
Increase related to prior year tax positions | 565 | - | 1,167 | ||||||||||
Decrease related to prior year tax positions | (183 | ) | (494 | ) | - | ||||||||
Increase related to current year tax positions | 3,709 | 2,269 | 1,473 | ||||||||||
Settlements | (2 | ) | (899 | ) | (98 | ) | |||||||
Lapse of statute of limitations | (1,220 | ) | (2,285 | ) | (1,896 | ) | |||||||
Gross amount of unrecognized tax benefits at end of year | $ | 23,201 | $ | 5,780 | $ | 7,189 |
Restructuring_and_other_items_
Restructuring and other items (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Recognized Restructuring and Other Items, Net | Restructuring and other items recognized during the year ended December 31, 2014 comprise: | ||||||||||||
Year Ended | |||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Restructuring charges | $ | 8,796 | $ | 9,033 | $ | 4,525 | |||||||
Other items | - | - | 1,111 | ||||||||||
Net charge | $ | 8,796 | $ | 9,033 | $ | 5,636 | |||||||
Restructuring Charges | Onerous | Asset | |||||||||||
Lease | Impairment | Total | |||||||||||
(in thousands) | |||||||||||||
Total provision recognized | $ | 3,167 | $ | 5,629 | $ | 8,796 | |||||||
Asset write-off | - | (5,629 | ) | (5,629 | ) | ||||||||
Provision at December 31, 2014 | $ | 3,167 | - | $ | 3,167 | ||||||||
Details of Movement in Restructuring Provisions Recognized | Details of the movement in this restructuring plan are as follows: | ||||||||||||
Workforce | Office | ||||||||||||
Reductions | Consolidations | Total | |||||||||||
(in thousands) | |||||||||||||
Q1 Plan - Initial provision recognized | $ | 3,903 | $ | 509 | $ | 4,412 | |||||||
Q2 Plan - Initial provision recognized | 4,228 | 393 | 4,621 | ||||||||||
Total provision recognized | 8,131 | 902 | 9,033 | ||||||||||
Cash payments | (6,544 | ) | (199 | ) | (6,743 | ) | |||||||
Amounts released | (93 | ) | - | (93 | ) | ||||||||
Foreign exchange movement | (3 | ) | - | (3 | ) | ||||||||
Provision at December 31, 2013 | $ | 1,491 | $ | 703 | $ | 2,194 | |||||||
Cash payments | (1,319 | ) | (337 | ) | (1,656 | ) | |||||||
Amounts released | - | - | - | ||||||||||
Foreign exchange movement | (1 | ) | - | (1 | ) | ||||||||
Provision at December 31, 2014 | $ | 171 | $ | 366 | $ | 537 |
Provision_for_Doubtful_Debts_T
Provision for Doubtful Debts (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Provision for Doubtful Debts | The Company does business with most major international pharmaceutical companies. Provision for doubtful debts at December 31, 2014 comprises: | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Opening provision | $ | 3,148 | $ | 5,047 | |||||
Amounts used during the year | (502 | ) | (3,132 | ) | |||||
Amounts provided during the year | 2,874 | 1,368 | |||||||
Amounts released during the year | (62 | ) | (135 | ) | |||||
Closing provision | $ | 5,458 | $ | 3,148 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Future Minimum Rental Commitments for Operating Leases with Non-cancelable Terms | Future minimum rental commitments for operating leases with non-cancelable terms in excess of one year are as follows: | ||||
Minimum rental payments | |||||
(in thousands) | |||||
2015 | 43,122 | ||||
2016 | 34,733 | ||||
2017 | 24,096 | ||||
2018 | 19,049 | ||||
2019 | 14,000 | ||||
Thereafter | 54,824 | ||||
Total | $ | 189,824 |
Business_Segment_and_Geographi1
Business Segment and Geographical Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Distribution of Net Revenue by Geographical Area | a) The distribution of net revenue by geographical area was as follows: | ||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Ireland | $ | 360,376 | $ | 272,683 | $ | 171,977 | |||||||
Rest of Europe | 372,634 | 333,543 | 338,537 | ||||||||||
U.S. | 605,815 | 582,250 | 471,700 | ||||||||||
Other | 164,491 | 147,582 | 132,792 | ||||||||||
Total | $ | 1,503,316 | $ | 1,336,058 | $ | 1,115,006 | |||||||
Distribution of Income from Operations by Geographical Area | b) The distribution of income from operations, including restructuring and other items, by geographical area was as follows: | ||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Ireland | $ | 138,185 | $ | 81,811 | $ | 9,659 | |||||||
Rest of Europe | 14,481 | 2,831 | 29,240 | ||||||||||
U.S. | 39,058 | 29,472 | 21,036 | ||||||||||
Other | 10,626 | 7,053 | 8,082 | ||||||||||
Total | $ | 202,350 | $ | 121,167 | $ | 68,017 | |||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Ireland | $ | 138,185 | $ | 82,867 | $ | 11,733 | |||||||
Rest of Europe | 23,277 | 6,269 | 29,786 | ||||||||||
U.S. | 39,058 | 33,564 | 23,687 | ||||||||||
Other | 10,626 | 7,500 | 8,447 | ||||||||||
Total | $ | 211,146 | $ | 130,200 | $ | 73,653 | |||||||
Distribution of Property, Plant and Equipment, Net, by Geographical Area | d) The distribution of property, plant and equipment, net, by geographical area was as follows: | ||||||||||||
December 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Ireland | $ | 95,574 | $ | 103,868 | |||||||||
Rest of Europe | 10,419 | 14,630 | |||||||||||
U.S. | 33,978 | 33,947 | |||||||||||
Other | 8,214 | 8,385 | |||||||||||
Total | $ | 148,185 | $ | 160,830 | |||||||||
Distribution of Depreciation and Amortization by Geographical Area | e) The distribution of depreciation and amortization by geographical area was as follows: | ||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Ireland | $ | 20,731 | $ | 19,826 | $ | 17,885 | |||||||
Rest of Europe | 7,478 | 6,595 | 7,211 | ||||||||||
U.S. | 20,491 | 16,233 | 13,865 | ||||||||||
Other | 3,842 | 3,860 | 3,862 | ||||||||||
Total | $ | 52,542 | $ | 46,514 | $ | 42,823 | |||||||
Distribution of Total Assets by Geographical Area | f) The distribution of total assets by geographical area was as follows: | ||||||||||||
December 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Ireland | $ | 495,747 | $ | 581,568 | |||||||||
Rest of Europe | 324,086 | 321,661 | |||||||||||
U.S. | 648,559 | 486,232 | |||||||||||
Other | 60,458 | 52,999 | |||||||||||
Total | $ | 1,528,850 | $ | 1,442,460 | |||||||||
Distribution of Capital Expenditures by Geographical Area | g) The distribution of capital expenditures by geographical area was as follows: | ||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Ireland | $ | 15,117 | $ | 3,976 | $ | 12,406 | |||||||
Rest of Europe | 2,278 | 1,887 | 2,506 | ||||||||||
U.S. | 12,224 | 20,842 | 13,389 | ||||||||||
Other | 3,160 | 2,783 | 4,725 | ||||||||||
Total | $ | 32,779 | $ | 29,488 | $ | 33,026 | |||||||
Clients Representing Company's Net Revenue | h) The following table sets forth the clients which represented 10% or more of the Company's net revenue in each of the periods set out below. | ||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Client A | 31 | % | 26 | % | 18 | % | |||||||
Client B | - | * | 10 | % | 12 | % | |||||||
* Net revenue did not exceed 10%. | |||||||||||||
Distribution of Interest Income by Business Segment | i) The distribution of interest income by geographical area was as follows: | ||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Ireland | $ | 284 | $ | 355 | $ | 464 | |||||||
Rest of Europe | 798 | 501 | 661 | ||||||||||
U.S. | - | - | 3 | ||||||||||
Other | 69 | 130 | 23 | ||||||||||
Total | $ | 1,151 | $ | 986 | $ | 1,151 | |||||||
Distribution of Tax Charge by Geographical Area | j) The distribution of the tax charge by geographical area was as follows: | ||||||||||||
Year ended | |||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Ireland | $ | 18,384 | $ | 11,073 | $ | 1,216 | |||||||
Rest of Europe | 2,855 | (7 | ) | 3,298 | |||||||||
U.S. | 4,860 | 5,072 | 3,669 | ||||||||||
Other | 4,149 | 1,915 | 3,618 | ||||||||||
Total | $ | 30,248 | $ | 18,053 | $ | 11,801 |
Supplemental_Disclosure_of_Cas1
Supplemental Disclosure of Cash Flow Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplemental Disclosure of Cash Flow Information | Year ended | ||||||||||||
December | December | December | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Non-cash interest on acquisition consideration payable* | - | $ | 240 | $ | 940 | ||||||||
Cash paid for interest | $ | 533 | $ | 548 | $ | 602 | |||||||
Cash paid for income taxes | $ | 17,829 | $ | 14,103 | $ | 18,475 | |||||||
* recorded within interest expense |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accumulated Other Comprehensive Income | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Currency translation adjustments | $ | (22,210 | ) | $ | 22,828 | ||||
Currency impact on long term funding (Net of tax) | (9,252 | ) | (18,880 | ) | |||||
Actuarial loss on defined benefit pension plan (note 9) | (6,113 | ) | (1,988 | ) | |||||
Unrealised capital gain/(loss) – investments (note 3) | 20 | - | |||||||
Total | $ | (37,555 | ) | $ | 1,960 |
Description_of_Business_Additi
Description of Business - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Location | |
Country | |
Employee | |
Product Information [Line Items] | |
Number of employees | 10,600 |
Number of locations in which company operates | 81 |
Number of countries in which company operates | 38 |
Geographic Concentration Risk | United States | Sales Revenue, Net | |
Product Information [Line Items] | |
Percentage of company revenue | 40.30% |
Geographic Concentration Risk | Europe | Sales Revenue, Net | |
Product Information [Line Items] | |
Percentage of company revenue | 48.80% |
Geographic Concentration Risk | Rest of World | Sales Revenue, Net | |
Product Information [Line Items] | |
Percentage of company revenue | 10.90% |
Significant_Accounting_Policie3
Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Significant Accounting Policies [Line Items] | |||
Advertising and promotion expense | $3,563,900 | $5,195,120 | $3,679,000 |
Impairment charge | 0 | 0 | 0 |
Carrying value of inventory | $1,700,000 | $2,200,000 |
Adjustments_Resulting_from_For
Adjustments Resulting from Foreign Currency Translations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Intercompany Foreign Currency Balance [Line Items] | |||
Amounts (credited) | ($5,942) | ($1,233) | ($1,231) |
Estimated_Useful_Lives_of_Asse
Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Building | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Office furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 8 years |
Laboratory equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Motor vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Computer equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 2 years |
Computer equipment and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 8 years |
Reconciliation_of_Number_of_Sh
Reconciliation of Number of Shares Used in Computation of Basic and Diluted Net Income Per Ordinary Share (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Weighted Average Number of Diluted Shares Outstanding [Line Items] | |||
Weighted average number of ordinary shares outstanding for basic net income per ordinary share | 61,496,115 | 60,907,274 | 59,968,174 |
Effect of dilutive share options outstanding | 1,635,302 | 1,345,977 | 482,532 |
Weighted average number of ordinary shares outstanding for diluted net income per ordinary share | 63,131,417 | 62,253,251 | 60,450,706 |
Cost_and_Fair_Value_of_Investm
Cost and Fair Value of Investments (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||
At start of year | $138,317 | $76,183 |
Additions | 61,328 | 172,168 |
Disposals | -102,565 | -109,795 |
Unrealized capital gain/(loss) - investments | 20 | -239 |
At end of year | $97,100 | $138,317 |
Recovered_Sheet1
Short Term Investments - Available for Sale - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Short term investments average maturity period | 1 year 8 months 12 days | 1 year 7 months 6 days |
Goodwill_Detail
Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ||
Opening goodwill | $357,523 | $315,441 |
Current year acquisitions | 121,209 | 36,922 |
Foreign exchange movement | -15,408 | 5,160 |
Closing goodwill | $463,324 | $357,523 |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 15, 2013 | Oct. 30, 2013 | 29-May-13 | Aug. 13, 2012 | Feb. 28, 2012 | 7-May-14 | Nov. 07, 2014 | Jun. 13, 2013 | Feb. 15, 2012 | ||
Business Acquisition [Line Items] | |||||||||||||
Cash consideration | $124,301,000 | $93,553,000 | $72,508,000 | ||||||||||
Clinical Trial Services | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash consideration | 51,897,000 | ||||||||||||
Working capital adjustment | 200,000 | ||||||||||||
PriceSpective LLC | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Percentage of common stock acquired | 100.00% | ||||||||||||
Cash consideration | 52,098,000 | ||||||||||||
Additional consideration | 15,000,000 | ||||||||||||
Further consideration paid in relation to certain performance milestones achieved | 10,000,000 | 5,000,000 | |||||||||||
Cash consideration | 37,199,000 | ||||||||||||
PriceSpective LLC | Initial | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash consideration | 37,100,000 | ||||||||||||
Aptiv Solutions | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Percentage of common stock acquired | 100.00% | ||||||||||||
Cash consideration | 143,500,000 | ||||||||||||
Adjustments to cash consideration | 22,399,000 | [1] | |||||||||||
BeijingWits Medical Limited | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Percentage of common stock acquired | 100.00% | ||||||||||||
Cash consideration | 16,000,000 | ||||||||||||
Additional consideration | 7,000,000 | ||||||||||||
Further consideration paid in relation to certain performance milestones achieved | 3,200,000 | 3,800,000 | |||||||||||
Cash consideration | $9,000,000 | ||||||||||||
BeijingWits Medical Limited | Minimum | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Addition of new employees | 100 | ||||||||||||
[1] | Adjustments to cash consideration represent certain one-time liabilities identified at the acquisition date. |
Summary_of_Estimates_of_Fair_V
Summary of Estimates of Fair Values of Assets Acquired and Liabilities Assumed of Aptiv Solutions (Detail) (USD $) | 0 Months Ended | ||||
In Thousands, unless otherwise specified | 7-May-14 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Acquisition [Line Items] | |||||
Goodwill | $463,324 | $357,523 | $315,441 | ||
Aptiv Solutions | |||||
Business Acquisition [Line Items] | |||||
Property, plant and equipment | 6,924 | ||||
Goodwill | 121,209 | [1] | |||
Intangible asset | 30,037 | [2] | |||
Cash and cash equivalents | 3,527 | ||||
Accounts receivable | 25,091 | ||||
Unbilled revenue | 21,154 | ||||
Prepayments and other current assets | 5,254 | [3] | |||
Non-current assets | 2,911 | ||||
Accounts payable | -9,565 | ||||
Other liabilities | -29,903 | ||||
Payments on account | -31,094 | ||||
Non-current other liabilities | -24,444 | [4] | |||
Net assets acquired | 121,101 | ||||
Cash consideration | 143,500 | ||||
Adjustments to cash consideration | -22,399 | [5] | |||
Net assets acquired/Net purchase consideration | $121,101 | ||||
[1] | Goodwill represents the acquisition of an established workforce with experience in clinical trial consulting and regulatory support for the development of drugs, medical devices and diagnostics, with a specific focus on strategy to increase efficiency and productivity in product development. Goodwill related to the US portion of the business acquired is tax deductible. | ||||
[2] | The Company have assumed a 20% valuation of Intangible asset. This is currently under review and will be finalized within the 12 month period from the date of acquisition. | ||||
[3] | The Company has included a provisional assessment of uncertain tax benefits relating to certain historic net operating losses carryforwards. This is currently under review and will be finalized within the 12 month period from the date of acquisition. | ||||
[4] | The Company has a defined benefit plan covering its employees in Switzerland as mandated by the Swiss government. Benefits are based on the employee's years of service and compensation. Benefits are paid directly by the Company when they become due, in conformity with the funding requirements of applicable government regulations. An estimate of the liability at the date of acquisition is included within non-current other liabilities. | ||||
[5] | Adjustments to cash consideration represent certain one-time liabilities identified at the acquisition date. |
Summary_of_Estimates_of_Fair_V1
Summary of Estimates of Fair Values of Assets Acquired and Liabilities Assumed of Aptiv Solutions (Parenthetical) (Detail) (Aptiv Solutions) | 0 Months Ended |
7-May-14 | |
Aptiv Solutions | |
Business Acquisition [Line Items] | |
Percentage of valuation assumed on intangible assets | 20.00% |
Proforma_Effect_in_Net_Revenue
Proforma Effect in Net Revenue, Net Income and Earnings Per Share (Detail) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Aptiv Solutions | ||||
Business Acquisition [Line Items] | ||||
Net revenue | $1,543,820 | $1,451,682 | ||
Net income | 172,508 | 101,857 | ||
Basic earnings per share | $2.81 | $1.67 | ||
Diluted earnings per share | $2.73 | $1.64 | ||
Clinical Trial Services | ||||
Business Acquisition [Line Items] | ||||
Net revenue | 1,343,996 | 1,182,734 | ||
Net income | 103,133 | 58,944 | ||
Basic earnings per share | $1.69 | $0.98 | ||
Diluted earnings per share | $1.66 | $0.98 | ||
PriceSpective LLC | ||||
Business Acquisition [Line Items] | ||||
Net revenue | 1,118,410 | 964,388 | ||
Net income | 55,931 | 25,363 | ||
Basic earnings per share | $0.93 | $0.42 | ||
Diluted earnings per share | $0.93 | $0.42 | ||
BeijingWits Medical Limited | ||||
Business Acquisition [Line Items] | ||||
Net revenue | 1,115,355 | 989,942 | ||
Net income | $55,349 | $22,549 | ||
Basic earnings per share | $0.92 | $0.37 | ||
Diluted earnings per share | $0.92 | $0.37 |
Summary_of_Estimates_of_Fair_V2
Summary of Estimates of Fair Values of Assets Acquired and Liabilities Assumed of Clinical Trial Services Division of Cross Country Healthcare, Inc. (Detail) (USD $) | 0 Months Ended | ||||
In Thousands, unless otherwise specified | Feb. 15, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Acquisition [Line Items] | |||||
Goodwill | $463,324 | $357,523 | $315,441 | ||
Clinical Trial Services | |||||
Business Acquisition [Line Items] | |||||
Property, plant and equipment | 339 | ||||
Goodwill | 36,922 | [1] | |||
Cash and cash equivalents | 1,039 | ||||
Accounts receivable | 9,200 | ||||
Unbilled revenue | 2,128 | ||||
Prepayments and other current assets | 465 | ||||
Non-current assets | 6 | ||||
Other liabilities | -2,285 | ||||
Non-current other liabilities | -16 | ||||
Net assets acquired | 51,698 | ||||
Cash consideration | 51,897 | ||||
Working capital adjustment | -199 | ||||
Net assets acquired/Net purchase consideration | 51,698 | ||||
Clinical Trial Services | Customer relationships acquired | |||||
Business Acquisition [Line Items] | |||||
Intangible asset | 3,300 | ||||
Clinical Trial Services | Order Backlog | |||||
Business Acquisition [Line Items] | |||||
Intangible asset | $600 | ||||
[1] | Goodwill represents the acquisition of an established workforce with experience in the clinical research industry, thereby allowing the Company to enhance its capabilities in global resourcing and FSP and also medical and safety services. Goodwill related to the US portion of the business acquired is tax deductible. |
Summary_of_Estimates_of_Fair_V3
Summary of Estimates of Fair Values of Assets Acquired and Liabilities Assumed of PriceSpective LLC (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2012 | |
Business Acquisition [Line Items] | |||||
Goodwill | $463,324 | $357,523 | $315,441 | ||
Cash consideration | 124,301 | 93,553 | 72,508 | ||
Contingent consideration | 3,245 | ||||
PriceSpective LLC | |||||
Business Acquisition [Line Items] | |||||
Property, plant and equipment | 256 | ||||
Goodwill | 42,247 | [1] | |||
Cash and cash equivalents | 2,311 | ||||
Accounts receivable | 2,662 | ||||
Unbilled revenue | 1,140 | ||||
Other current assets | 236 | ||||
Current liabilities | -7,788 | ||||
Liability arising from contingent consideration arrangement | -15,000 | ||||
Net assets acquired | 37,098 | ||||
Cash consideration | 37,199 | ||||
Working capital adjustment | -101 | ||||
Contingent consideration | 15,000 | ||||
Amount of total consideration | 52,098 | ||||
Liabilities included in preliminary purchase price allocation re contingent consideration | -15,000 | ||||
Net assets acquired/Net purchase consideration | 37,098 | ||||
PriceSpective LLC | Customer relationships acquired | |||||
Business Acquisition [Line Items] | |||||
Intangible asset | 10,237 | ||||
PriceSpective LLC | Order Backlog | |||||
Business Acquisition [Line Items] | |||||
Intangible asset | 405 | ||||
PriceSpective LLC | Non-compete Agreements | |||||
Business Acquisition [Line Items] | |||||
Intangible asset | $392 | ||||
[1] | Goodwill represents the acquisition of an established workforce with experience in strategic pricing, market access, HEOR, due diligence support and payer engagement services. Goodwill related to the US portion of the business acquired is tax deductible. |
Summary_of_Estimates_of_Fair_V4
Summary of Estimates of Fair Values of Assets Acquired and Liabilities Assumed of BeijingWits Medical Limited (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 15, 2012 | |
Business Acquisition [Line Items] | |||||
Goodwill | $463,324 | $357,523 | $315,441 | ||
Cash consideration | 124,301 | 93,553 | 72,508 | ||
Contingent consideration | 3,245 | ||||
BeijingWits Medical Limited | |||||
Business Acquisition [Line Items] | |||||
Property, plant and equipment | 172 | ||||
Goodwill | 13,512 | [1] | |||
Cash and cash equivalents | 587 | ||||
Accounts receivable | 657 | ||||
Unbilled revenue | 176 | ||||
Other current assets | 228 | ||||
Deferred tax liability | -559 | ||||
Current liabilities | -1,007 | ||||
Liability arising from contingent consideration arrangement | -7,000 | ||||
Net assets acquired | 9,000 | ||||
Cash consideration | 9,000 | ||||
Contingent consideration | 7,000 | ||||
Amount of total consideration | 16,000 | ||||
Liabilities included in preliminary purchase price allocation re contingent consideration | -7,000 | ||||
Net assets acquired/Net purchase consideration | 9,000 | ||||
BeijingWits Medical Limited | Customer relationships acquired | |||||
Business Acquisition [Line Items] | |||||
Intangible asset | 1,761 | ||||
BeijingWits Medical Limited | Order Backlog | |||||
Business Acquisition [Line Items] | |||||
Intangible asset | 376 | ||||
BeijingWits Medical Limited | Non-compete Agreements | |||||
Business Acquisition [Line Items] | |||||
Intangible asset | $97 | ||||
[1] | Goodwill represents the acquisition of an established workforce with experience in clinical trial execution and regulatory processes in China and is not tax deductible. |
Intangible_Assets_Detail
Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cost | ||
Foreign exchange movement | ($2,769) | ($62) |
Intangible assets gross | 80,909 | 54,349 |
Accumulated amortization | -32,120 | -22,550 |
Foreign exchange movement | 930 | -445 |
Net book value | 49,719 | 31,354 |
Customer relationships acquired | ||
Cost | ||
Intangible assets gross | 36,130 | 36,900 |
Technology Assets | ||
Cost | ||
Intangible assets gross | 11,169 | 11,169 |
Order Backlog | ||
Cost | ||
Intangible assets gross | 3,171 | 3,171 |
Trade Names | ||
Cost | ||
Intangible assets gross | 1,357 | 1,357 |
Volunteer list acquired | ||
Cost | ||
Intangible assets gross | 1,325 | 1,325 |
Non-compete Agreements | ||
Cost | ||
Intangible assets gross | 489 | 489 |
Aptiv intangible asset | ||
Cost | ||
Intangible assets gross | $30,037 |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 0 Months Ended | ||||||||
Feb. 15, 2012 | Jul. 14, 2011 | Jan. 14, 2011 | Nov. 14, 2008 | Feb. 11, 2008 | Feb. 28, 2012 | Feb. 15, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Amount amortized since date of acquisition | $32,120,000 | $22,550,000 | |||||||
BeijingWits Medical Limited | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Amount amortized since date of acquisition | 845,000 | ||||||||
BeijingWits Medical Limited | Customer relationships acquired | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Value of amortizable intangible asset acquired | 1,800,000 | ||||||||
Amortization period | 10 years | ||||||||
BeijingWits Medical Limited | Order Backlog | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Value of amortizable intangible asset acquired | 400,000 | ||||||||
Amortization period | 4 years | ||||||||
BeijingWits Medical Limited | Non-compete Agreements | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Value of amortizable intangible asset acquired | 10,000 | ||||||||
Amortization period | 5 years | ||||||||
Firecrest Clinical Limited | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Amount amortized since date of acquisition | 9,152,000 | ||||||||
Firecrest Clinical Limited | Customer relationships acquired | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Value of amortizable intangible asset acquired | 5,200,000 | ||||||||
Amortization period | 7 years 6 months | ||||||||
Firecrest Clinical Limited | Order Backlog | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Value of amortizable intangible asset acquired | 1,200,000 | ||||||||
Amortization period | 1 year 2 months 12 days | ||||||||
Firecrest Clinical Limited | Technology Assets | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Value of amortizable intangible asset acquired | 11,200,000 | ||||||||
Amortization period | 7 years 6 months | ||||||||
Firecrest Clinical Limited | Trade Names | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Value of amortizable intangible asset acquired | 1,400,000 | ||||||||
Amortization period | 4 years 6 months | ||||||||
Oxford Outcomes Limited | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Amount amortized since date of acquisition | 4,791,000 | ||||||||
Oxford Outcomes Limited | Customer relationships acquired | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Value of amortizable intangible asset acquired | 6,600,000 | ||||||||
Amortization period | 6 years 6 months | ||||||||
Oxford Outcomes Limited | Order Backlog | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Value of amortizable intangible asset acquired | 600,000 | ||||||||
Amortization period | 2 years | ||||||||
Prevalere Life Sciences | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Amount amortized since date of acquisition | 4,977,000 | ||||||||
Prevalere Life Sciences | Volunteer list acquired | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Value of amortizable intangible asset acquired | 7,400,000 | ||||||||
Prevalere Life Sciences | Minimum | Volunteer list acquired | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Amortization period | 7 years | ||||||||
Prevalere Life Sciences | Maximum | Volunteer list acquired | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Amortization period | 11 years | ||||||||
Healthcare Discoveries Inc | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Amount amortized since date of acquisition | 2,704,000 | ||||||||
Healthcare Discoveries Inc | Customer relationships acquired | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Value of amortizable intangible asset acquired | 1,600,000 | ||||||||
Healthcare Discoveries Inc | Volunteer list acquired | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Value of amortizable intangible asset acquired | 1,300,000 | ||||||||
Healthcare Discoveries Inc | Minimum | Customer relationships acquired | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Amortization period | 2 years | ||||||||
Healthcare Discoveries Inc | Minimum | Volunteer list acquired | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Amortization period | 6 years | ||||||||
Healthcare Discoveries Inc | Maximum | Customer relationships acquired | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Amortization period | 9 years | ||||||||
PriceSpective LLC | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Amount amortized since date of acquisition | 3,675,000 | ||||||||
PriceSpective LLC | Customer relationships acquired | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Value of amortizable intangible asset acquired | 10,200,000 | ||||||||
Amortization period | 10 years | ||||||||
PriceSpective LLC | Order Backlog | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Value of amortizable intangible asset acquired | 400,000 | ||||||||
Amortization period | 9 months 18 days | ||||||||
PriceSpective LLC | Non-compete Agreements | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Value of amortizable intangible asset acquired | 400,000 | ||||||||
Amortization period | 3 years | ||||||||
Aptiv Solutions | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Amount amortized since date of acquisition | 3,313,000 | ||||||||
Clinical Trial Services | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Amount amortized since date of acquisition | 2,663,000 | ||||||||
Clinical Trial Services | Customer relationships acquired | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Value of amortizable intangible asset acquired | 3,300,000 | ||||||||
Amortization period | 3 years | ||||||||
Clinical Trial Services | Order Backlog | |||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||
Value of amortizable intangible asset acquired | $600,000 | ||||||||
Amortization period | 1 year |
Future_Intangible_Asset_Amorti
Future Intangible Asset Amortization Expense (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets [Line Items] | |
2015 | $6,506 |
2016 | 4,972 |
2017 | 3,990 |
2018 | 3,434 |
2019 | 1,491 |
Finite Lived Intangible Assets, Amortization Expense, Net, Total | $20,393 |
Recovered_Sheet2
Property, Plant and Equipment, Net (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cost | ||
Land | $3,464 | $3,464 |
Building | 88,580 | 96,450 |
Computer equipment and software | 247,980 | 212,019 |
Office furniture and fixtures | 64,690 | 68,268 |
Laboratory equipment | 23,599 | 29,678 |
Leasehold improvements | 19,516 | 15,304 |
Motor vehicles | 47 | 56 |
Property, Plant and Equipment, Gross, Total | 447,876 | 425,239 |
Less accumulated depreciation and asset write off | -299,691 | -264,409 |
Property, plant and equipment (net) | $148,185 | $160,830 |
Other_Liabilities_Detail
Other Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities [Line Items] | ||
Personnel related liabilities | $167,362 | $138,639 |
Facility related liabilities | 19,862 | 16,205 |
General overhead liabilities | 33,422 | 31,034 |
Other liabilities | 26,631 | 3,019 |
Short term government grants (note 11) | 110 | 240 |
Restructuring and other items (note 14) | 3,704 | 2,430 |
Acquisition consideration payable | 3,245 | |
Other Liabilities | $251,091 | $194,812 |
Other_NonCurrent_Liabilities_D
Other Non-Current Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Accrued Liabilities [Line Items] | ||
Defined benefit pension obligations, net (note 9) | $7,466 | $3,536 |
Other non-current liabilities | 4,654 | 3,384 |
Other liabilities, noncurrent | 13,179 | 11,198 |
Personnel Related | ||
Schedule of Accrued Liabilities [Line Items] | ||
Other liabilities, noncurrent | $1,059 | $4,278 |
Employee_Benefits_Additional_I
Employee Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate Description | Certain Company employees are eligible to participate in a defined contribution plan (the "Plan"). Participants in the Plan may elect to defer a portion of their pre-tax earnings into a pension plan, which is run by an independent party. The Company matches participant's contributions typically at 6% of the participant's annual compensation. Contributions to this plan are recorded, as an expense in the Consolidated Statement of Operations. Contributions for the years ended December 31, 2012, December 31, 2013 and December 31, 2014 were $18,187,000, $20,293,000 and $20,293,000 respectively. | ||
Plan participants' contributions | $44,000 | $75,000 | |
Net gain for the defined benefit pension plan | 268,000 | ||
Prior service cost for the defined benefit pension plan | |||
Expected rate of return on plan assets | 2.70% | ||
Expected long term rate of return on bonds Description | Above expected long term rates of return to the asset distribution at December 31, 2014, gives rise to an expected overall rate of return of scheme assets of approximately 2.7% per annum. | ||
Contribution to pension fund in the year ending December 31, 2015 | 100,000 | ||
Expected benefit cash flow description | The expected cash flows are estimated figures based on the members expected to retire over the next 10 years assuming no early retirements plus an additional amount in respect of recent average withdrawal experience. | ||
Retirement period used as a basis to estimate expected cash flows | 10 years | ||
Legal and General over 15 year Gilts Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long term rate of return on bonds Description | The long-term expected return on corporate bonds and gilts (fixed interest and index linked) is determined by reference to bond yields and gilt yields at the balance sheet date. | ||
Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of investments | 70.00% | ||
Corporate Bond Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected rate of return on plan assets | 3.60% | ||
Percentage of investments | 30.00% | ||
Corporate Bond Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Basis point increase in benefits obligation discount rate | 0.20% | ||
Defined benefit plan bond maturity period | 15 years | ||
Defined Benefit Plan Contributions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions percentage of compensation | 6.00% | ||
Plan participants' contributions | 22,582,000 | 20,293,000 | 18,187,000 |
Defined Contribution Pension Plan 401(k) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions percentage of compensation | 6.00% | ||
Plan participants' contributions | $10,514,000 | $9,816,000 | $8,442,000 |
Participant's contributions percentage | 50.00% |
Change_in_Benefit_Obligations_
Change in Benefit Obligations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at beginning of year | $24,958 | $22,527 | |
Service cost | 91 | 251 | 242 |
Interest cost | 1,235 | 1,005 | 964 |
Plan participants' contributions | 44 | 75 | |
Plan curtailments | 359 | ||
Benefits paid | -68 | -105 | |
Actuarial loss | 8,270 | 680 | |
Foreign currency exchange rate changes | -2,014 | 525 | |
Benefit obligation at end of year | $32,875 | $24,958 | $22,527 |
Change_in_Plan_Assets_Detail
Change in Plan Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | $21,422 | $17,807 |
Actual return on plan assets | 5,424 | 2,916 |
Employer contributions | 155 | 224 |
Plan participants' contributions | 44 | 75 |
Benefits paid | -68 | -105 |
Foreign currency exchange rate changes | -1,568 | 505 |
Fair value of plan assets at end of year | $25,409 | $21,422 |
Funded_Status_Detail
Funded Status (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | ($32,875) | ($24,958) | |
Fair value of plan assets | 25,409 | 21,422 | 17,807 |
Funded status | -7,466 | -3,536 | |
Non-current other liabilities | ($7,466) | ($3,536) |
Components_of_Net_Periodic_Ben
Components of Net Periodic Benefit Cost (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $91 | $251 | $242 |
Interest cost | 1,235 | 1,005 | 964 |
Expected return on plan assets | -1,299 | -983 | -895 |
Amortization of net loss | 20 | 130 | 179 |
Curtailment loss | 359 | ||
Net periodic benefit cost | $406 | $403 | $490 |
Net_Periodic_Pension_Benefit_C
Net Periodic Pension Benefit Cost Assumptions (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected rate of return on plan assets | 2.70% | ||
Actuarial loss - benefit obligation | $8,270 | $680 | $405 |
Actuarial gain - plan assets | -4,125 | -1,933 | -915 |
Actuarial gain recognized in net periodic benefit cost | -20 | -130 | -179 |
Total | $4,125 | ($1,383) | ($689) |
Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.70% | 4.60% | 4.70% |
Rate of compensation increase | 4.00% | 3.40% | 3.50% |
Expected rate of return on plan assets | 6.10% | 5.70% | 5.80% |
Amounts_recognized_in_accumula
Amounts recognized in accumulated other comprehensive income that have not been recognized (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss | $6,113 | $1,988 | $3,371 |
Total | $6,113 | $1,988 | $3,371 |
Assumptions_Used_in_Determinin
Assumptions Used in Determining Benefit Obligation (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.60% | 4.70% |
Rate of compensation increase | 3.60% | 4.00% |
Expected_Long_Term_Rates_of_Re
Expected Long Term Rates of Return on Different Asset Classes (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected long-term return per annum | 2.70% |
Corporate Bond Securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected long-term return per annum | 3.60% |
Glits | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected long-term return per annum | 2.40% |
Underlying_Asset_Split_of_Fund
Underlying Asset Split of Fund (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total underlying asset split | 100.00% | 100.00% |
Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total underlying asset split | 70.00% | |
Corporate Bond Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total underlying asset split | 26.00% | 30.00% |
Glits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total underlying asset split | 74.00% |
Plan_Asset_Fair_Value_Measurem
Plan Asset Fair Value Measurements (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $25,409 | $21,422 | $17,807 |
Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 25,409 | 21,422 | |
Fair Value, Inputs, Level 1 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 16 | 58 | |
Fair Value, Inputs, Level 1 | Fixed Income Securities | Legal and General Active Corporate Bond Over 10 Year | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6,560 | 5,788 | |
Fair Value, Inputs, Level 1 | Fixed Income Securities | Legal and General Gilt Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6,977 | ||
Fair Value, Inputs, Level 1 | Fixed Income Securities | Legal and General Index Linked Gilt Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11,856 | ||
Fair Value, Inputs, Level 1 | Other Types Of Investments | Baillie Gifford Diversified Growth Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8,452 | ||
Fair Value, Inputs, Level 1 | Other Types Of Investments | Standard Life Global Absolute Return Strategies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $7,124 |
Annual_Benefit_Payments_Detail
Annual Benefit Payments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected future benefit payments in 2015 | $65 |
Expected future benefit payments in 2016 | 67 |
Expected future benefit payments in 2017 | 70 |
Expected future benefit payments in 2018 | 72 |
Expected future benefit payments in 2019 | 73 |
Expected future benefit payments in Years 2020 - 2024 | $294 |
Equity_Incentive_Schemes_and_S2
Equity Incentive Schemes and Stock Compensation Charges - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 24 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 23, 2013 | Dec. 31, 2014 | Dec. 31, 2015 | |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Contractual term of options outstanding | 4 years 6 months 29 days | 4 years 6 months 7 days | ||||
Weighted Average Remaining Contractual Life of Options Exercisable | 3 years 2 months 19 days | 3 years 3 months 15 days | ||||
Options Expected to Vest | 655,224 | 655,224 | ||||
Intrinsic Value Of Options Exercised | $23,000,000 | |||||
Intrinsic Value Of Options Outstanding | 51,200,000 | 51,200,000 | ||||
Intrinsic Value Of Options Exercisable | 26,600,000 | 26,600,000 | ||||
Share-based compensation expense | 22,742,000 | 14,220,000 | 11,521,000 | |||
Non-cash stock compensation expense not yet recognized | 51,600,000 | 51,600,000 | ||||
Unrecognized stock-based compensation expense, weighted average period (years) | 2 years 3 months 11 days | |||||
Tax benefit on exercise of options | 2,404,000 | 1,651,000 | 1,274,000 | |||
Scenario, Forecast | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Options Expected to Vest | 494,951 | |||||
Employee Stock Plan, 2008 Plan | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Ordinary shares which have been reserved for issuance | 6,000,000 | 6,000,000 | ||||
Employee Stock Plan, 2008 Plan | Individual Employee | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Ordinary shares which have been reserved for issuance | 400,000 | 400,000 | ||||
Employee Stock Plan, 2008 Plan | 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 | 6,000,000 | 6,000,000 | ||||
Maximum number of award as percentage of shares outstanding | 10.00% | |||||
Employee Stock Plan, 2003 Plan | Individual Employee | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Ordinary shares which have been reserved for issuance | 400,000 | 400,000 | ||||
Employee Stock Option | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Shares vesting period | 5 years | |||||
Shares expiration period | 8 years | |||||
Options vesting percentage | 20.00% | |||||
Employee Stock Option | Maximum | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Contractual term of options outstanding | 8 years | |||||
Restricted Stock Units 2008 | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Ordinary shares which have been reserved for issuance | 1,000,000 | 1,000,000 | ||||
Restricted Stock Units 2013 | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Ordinary shares which have been reserved for issuance | 1,600,000 | |||||
Cost of shares awarded | 0 | |||||
Restricted Stock Units (RSUs) | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Fair value of stock units vested | $4,900,000 | $1,100,000 | ||||
Stock units vested | 233,726 | |||||
Stock units granted | 521,926 | |||||
Performance Share Unit (PSUs) | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Stock units vested | 0 | 0 | ||||
Stock units granted | 346,108 | |||||
PSUs Based on Service and EPS Targets | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Stock units granted | 337,738 | |||||
PSUs Based on Service and EPS Targets | Minimum | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Cumulative EPS vesting period | 2013 | |||||
PSUs Based on Service and EPS Targets | Maximum | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Stock units to be granted | 331,433 | 331,433 | ||||
Cumulative EPS vesting period | 2017 |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Detail) (Stock Option And Award Plans, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Option And Award Plans | |||
Options Granted Under Plans | |||
Beginning balance | 2,973,788 | 4,350,631 | 4,902,818 |
Granted | 366,985 | 264,950 | 842,273 |
Exercised | -926,407 | -1,249,759 | -890,236 |
Cancelled | -186,666 | -392,034 | -504,224 |
Ending Balance | 2,227,700 | 2,973,788 | 4,350,631 |
Vested and exercisable at end of period | 1,024,550 | ||
Number of Shares | |||
Beginning balance | 2,973,788 | 4,350,631 | 4,902,818 |
Granted | 366,985 | 264,950 | 842,273 |
Exercised | -926,407 | -1,249,759 | -890,236 |
Cancelled | -186,666 | -392,034 | -504,224 |
Ending balance | 2,227,700 | 2,973,788 | 4,350,631 |
Vested and exercisable at end of period | 1,024,550 | ||
Weighted Average Exercise Price | |||
Beginning balance | $24.20 | $23.01 | $21.87 |
Granted | $45.82 | $33.09 | $22.01 |
Exercised | $24.02 | $21.60 | $14.62 |
Cancelled | $22.17 | $25.27 | $25.14 |
Ending balance | $28 | $24.20 | $23.01 |
Vested and exercisable at end of period | $25.03 | ||
Weighted Average Grant Date Fair Value | |||
Beginning balance | $9.57 | $9.17 | $8.61 |
Granted | $14.09 | $12.05 | $9.59 |
Exercised | $9.45 | $8.58 | $6.16 |
Cancelled | $9.01 | $10.02 | $9.76 |
Ending balance | $10.40 | $9.57 | $9.17 |
Vested and exercisable at end of period | $9.72 |
Summary_of_Movement_in_NonVest
Summary of Movement in Non-Vested Share Options (Detail) (Employee Stock Option, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Stock Option | |||
Options Outstanding Number of Shares | |||
Beginning Balance | 1,468,081 | ||
Granted | 366,985 | ||
Vested | -496,775 | ||
Forfeited | -135,141 | ||
Ending Balance | 1,203,150 | 1,468,081 | |
Weighted Average Exercise Price | |||
Beginning balance | $23.45 | ||
Granted | $45.82 | ||
Vested | $22.85 | ||
Forfeited | $23.36 | ||
Ending balance | $30.54 | $23.45 | |
Weighted Average Fair Value | |||
Beginning Balance | $9.45 | ||
Granted | $14.09 | $12.05 | $9.59 |
Vested | $9.13 | ||
Forfeited | $9.57 | ||
Ending Balance | $10.98 | $9.45 |
Outstanding_and_Exercisable_Sh
Outstanding and Exercisable Share Options (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $51.35 |
Range Exercise Price Minimum | $15.84 |
Options Outstanding Number of Shares | 2,227,700 |
Options Outstanding Weighted Average Remaining Contractual Life | 4 years 6 months 29 days |
Options Outstanding Weighted Average Exercise Price | $28 |
Options Exercisable Number of Shares | 1,024,550 |
Options Exercisable Weighted Average Exercise Price | $25.03 |
Range 1 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $15.84 |
Options Outstanding Number of Shares | 50,000 |
Options Outstanding Weighted Average Remaining Contractual Life | 2 years 3 months 29 days |
Options Outstanding Weighted Average Exercise Price | $15.84 |
Options Exercisable Number of Shares | 50,000 |
Options Exercisable Weighted Average Exercise Price | $15.84 |
Range 2 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $16.80 |
Options Outstanding Number of Shares | 90,000 |
Options Outstanding Weighted Average Remaining Contractual Life | 4 years 9 months 29 days |
Options Outstanding Weighted Average Exercise Price | $16.80 |
Options Exercisable Number of Shares | 30,000 |
Options Exercisable Weighted Average Exercise Price | $16.80 |
Range 3 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $17.17 |
Options Outstanding Number of Shares | 18,000 |
Options Outstanding Weighted Average Remaining Contractual Life | 4 years 10 months 6 days |
Options Outstanding Weighted Average Exercise Price | $17.17 |
Options Exercisable Number of Shares | 6,000 |
Options Exercisable Weighted Average Exercise Price | $17.17 |
Range 4 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $18.98 |
Options Outstanding Number of Shares | 600 |
Options Outstanding Weighted Average Remaining Contractual Life | 1 year 10 months 13 days |
Options Outstanding Weighted Average Exercise Price | $18.98 |
Options Exercisable Number of Shares | 600 |
Options Exercisable Weighted Average Exercise Price | $18.98 |
Range 5 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $19.45 |
Options Outstanding Number of Shares | 6,000 |
Options Outstanding Weighted Average Remaining Contractual Life | 3 years 9 months 26 days |
Options Outstanding Weighted Average Exercise Price | $19.45 |
Options Exercisable Weighted Average Exercise Price | $19.45 |
Range 6 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $20.16 |
Options Outstanding Number of Shares | 600 |
Options Outstanding Weighted Average Remaining Contractual Life | 3 years 10 months 13 days |
Options Outstanding Weighted Average Exercise Price | $20.16 |
Options Exercisable Number of Shares | 200 |
Options Exercisable Weighted Average Exercise Price | $20.16 |
Range 7 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $20.28 |
Options Outstanding Number of Shares | 344,811 |
Options Outstanding Weighted Average Remaining Contractual Life | 4 years 2 months 1 day |
Options Outstanding Weighted Average Exercise Price | $20.28 |
Options Exercisable Number of Shares | 187,539 |
Options Exercisable Weighted Average Exercise Price | $20.28 |
Range 8 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $20.59 |
Options Outstanding Number of Shares | 115,200 |
Options Outstanding Weighted Average Remaining Contractual Life | 5 years 1 month 21 days |
Options Outstanding Weighted Average Exercise Price | $20.59 |
Options Exercisable Number of Shares | 23,400 |
Options Exercisable Weighted Average Exercise Price | $20.59 |
Range 9 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $21.25 |
Options Outstanding Number of Shares | 19,741 |
Options Outstanding Weighted Average Remaining Contractual Life | 1 month 13 days |
Options Outstanding Weighted Average Exercise Price | $21.25 |
Options Exercisable Number of Shares | 19,741 |
Options Exercisable Weighted Average Exercise Price | $21.25 |
Range 10 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $22.26 |
Options Outstanding Number of Shares | 125,637 |
Options Outstanding Weighted Average Remaining Contractual Life | 2 years 1 month 24 days |
Options Outstanding Weighted Average Exercise Price | $22.26 |
Options Exercisable Number of Shares | 125,637 |
Options Exercisable Weighted Average Exercise Price | $22.26 |
Range 11 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $22.30 |
Options Outstanding Number of Shares | 352,793 |
Options Outstanding Weighted Average Remaining Contractual Life | 5 years 3 months 26 days |
Options Outstanding Weighted Average Exercise Price | $22.30 |
Options Exercisable Number of Shares | 113,729 |
Options Exercisable Weighted Average Exercise Price | $22.30 |
Range 12 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $23.66 |
Options Outstanding Number of Shares | 8,720 |
Options Outstanding Weighted Average Remaining Contractual Life | 5 years 6 months 26 days |
Options Outstanding Weighted Average Exercise Price | $23.66 |
Options Exercisable Number of Shares | 3,380 |
Options Exercisable Weighted Average Exercise Price | $23.66 |
Range 13 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $24.25 |
Options Outstanding Number of Shares | 50,000 |
Options Outstanding Weighted Average Remaining Contractual Life | 3 years 2 months 5 days |
Options Outstanding Weighted Average Exercise Price | $24.25 |
Options Exercisable Number of Shares | 50,000 |
Options Exercisable Weighted Average Exercise Price | $24.25 |
Range 14 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $24.46 |
Options Outstanding Number of Shares | 217,907 |
Options Outstanding Weighted Average Remaining Contractual Life | 3 years 2 months 1 day |
Options Outstanding Weighted Average Exercise Price | $24.46 |
Options Exercisable Number of Shares | 145,419 |
Options Exercisable Weighted Average Exercise Price | $24.46 |
Range 15 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $26.20 |
Options Outstanding Number of Shares | 2,400 |
Options Outstanding Weighted Average Remaining Contractual Life | 3 years 4 months 17 days |
Options Outstanding Weighted Average Exercise Price | $26.20 |
Options Exercisable Number of Shares | 1,920 |
Options Exercisable Weighted Average Exercise Price | $26.20 |
Range 16 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $26.71 |
Options Outstanding Number of Shares | 4,450 |
Options Outstanding Weighted Average Remaining Contractual Life | 5 years 8 months 12 days |
Options Outstanding Weighted Average Exercise Price | $26.71 |
Options Exercisable Number of Shares | 1,780 |
Options Exercisable Weighted Average Exercise Price | $26.71 |
Range 17 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $29.45 |
Options Outstanding Number of Shares | 3,000 |
Options Outstanding Weighted Average Remaining Contractual Life | 3 years 3 months 26 days |
Options Outstanding Weighted Average Exercise Price | $29.45 |
Options Exercisable Number of Shares | 2,400 |
Options Exercisable Weighted Average Exercise Price | $29.45 |
Range 18 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $31.49 |
Options Outstanding Number of Shares | 11,650 |
Options Outstanding Weighted Average Remaining Contractual Life | 6 years 1 month 28 days |
Options Outstanding Weighted Average Exercise Price | $31.49 |
Options Exercisable Number of Shares | 1,690 |
Options Exercisable Weighted Average Exercise Price | $31.49 |
Range 19 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $32.37 |
Options Outstanding Number of Shares | 187,498 |
Options Outstanding Weighted Average Remaining Contractual Life | 6 years 3 months 29 days |
Options Outstanding Weighted Average Exercise Price | $32.37 |
Options Exercisable Number of Shares | 38,698 |
Options Exercisable Weighted Average Exercise Price | $32.37 |
Range 20 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $35.33 |
Options Outstanding Number of Shares | 211,756 |
Options Outstanding Weighted Average Remaining Contractual Life | 1 year 1 month 24 days |
Options Outstanding Weighted Average Exercise Price | $35.33 |
Options Exercisable Number of Shares | 211,756 |
Options Exercisable Weighted Average Exercise Price | $35.33 |
Range 21 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $36.22 |
Options Outstanding Number of Shares | 34,630 |
Options Outstanding Weighted Average Remaining Contractual Life | 6 years 5 months 16 days |
Options Outstanding Weighted Average Exercise Price | $36.22 |
Options Exercisable Number of Shares | 6,921 |
Options Exercisable Weighted Average Exercise Price | $36.22 |
Range 22 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $37.90 |
Options Outstanding Number of Shares | 10,300 |
Options Outstanding Weighted Average Remaining Contractual Life | 6 years 11 months 5 days |
Options Outstanding Weighted Average Exercise Price | $37.90 |
Options Exercisable Number of Shares | 2,060 |
Options Exercisable Weighted Average Exercise Price | $37.90 |
Range 23 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $40.83 |
Options Outstanding Number of Shares | 111,463 |
Options Outstanding Weighted Average Remaining Contractual Life | 7 years 4 months 21 days |
Options Outstanding Weighted Average Exercise Price | $40.83 |
Options Exercisable Number of Shares | 680 |
Options Exercisable Weighted Average Exercise Price | $40.83 |
Range 24 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $41.25 |
Options Outstanding Number of Shares | 1,000 |
Options Outstanding Weighted Average Remaining Contractual Life | 1 year 8 months 1 day |
Options Outstanding Weighted Average Exercise Price | $41.25 |
Options Exercisable Number of Shares | 1,000 |
Options Exercisable Weighted Average Exercise Price | $41.25 |
Range 25 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $47.03 |
Options Outstanding Number of Shares | 82,147 |
Options Outstanding Weighted Average Remaining Contractual Life | 7 years 2 months 1 day |
Options Outstanding Weighted Average Exercise Price | $47.03 |
Options Exercisable Weighted Average Exercise Price | $47.03 |
Range 26 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $48.67 |
Options Outstanding Number of Shares | 163,367 |
Options Outstanding Weighted Average Remaining Contractual Life | 7 years 2 months 16 days |
Options Outstanding Weighted Average Exercise Price | $48.67 |
Options Exercisable Weighted Average Exercise Price | $48.67 |
Range 27 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range Exercise Price Maximum | $51.35 |
Options Outstanding Number of Shares | 4,030 |
Options Outstanding Weighted Average Remaining Contractual Life | 7 years 7 months 6 days |
Options Outstanding Weighted Average Exercise Price | $51.35 |
Options Exercisable Weighted Average Exercise Price | $51.35 |
Schedule_of_Weighted_Average_F
Schedule of Weighted Average Fair Values and Assumptions Used (Detail) (Employee Stock Option, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value | $14.09 | $12.05 | $9.59 |
Assumptions: | |||
Expected volatility | 32.00% | 40.00% | 50.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.57% | 0.76% | 0.83% |
Expected life | 5 years | 5 years | 5 years |
Summary_of_RSU_and_PSU_Activit
Summary of RSU and PSU Activity (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Performance Share Unit (PSUs) | ||
Outstanding Number of Shares | ||
Outstanding at beginning of period | 353,244 | |
Granted | 346,108 | |
Shares vested | 0 | 0 |
Forfeited | -30,181 | |
Outstanding at ending of period | 669,171 | 353,244 |
Weighted Average Fair Value | ||
Outstanding at beginning of period | $33.04 | |
Granted | $46.34 | |
Forfeited | $34.62 | |
Outstanding at end of period | $39.78 | $33.04 |
Weighted Average Remaining Contractual Life | ||
Outstanding at end of period | 1 year 9 months 7 days | 2 years 4 months 6 days |
Restricted Stock Units (RSUs) | ||
Outstanding Number of Shares | ||
Outstanding at beginning of period | 846,459 | |
Granted | 521,926 | |
Shares vested | -233,726 | |
Forfeited | -95,663 | |
Outstanding at ending of period | 1,038,996 | 846,459 |
Weighted Average Fair Value | ||
Outstanding at beginning of period | $27.05 | |
Granted | $41.84 | |
Shares vested | $21.11 | |
Forfeited | $32.68 | |
Outstanding at end of period | $35.19 | $27.05 |
Weighted Average Remaining Contractual Life | ||
Outstanding at end of period | 1 year 8 months 1 day | 1 year 9 months 7 days |
Schedule_of_Noncash_Stock_Comp
Schedule of Non-cash Stock Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $22,742 | $14,220 | $11,521 |
Direct costs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 12,531 | 7,835 | 6,007 |
Selling, general and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 10,211 | 6,385 | 4,894 |
Restructuring and other non-recurring items | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $620 |
Government_Grants_Detail
Government Grants (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Government Grants [Line Items] | ||
Received | $3,698 | $3,698 |
Less accumulated amortization | -2,710 | -2,497 |
Foreign exchange translation adjustment | 238 | 398 |
Total government grants | 1,226 | 1,599 |
Less current portion | -110 | -240 |
Non-current government grants | $1,116 | $1,359 |
Government_Grants_Additional_I
Government Grants - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Government Grants [Line Items] | ||
Government grants amortized to profit and loss account | $213,000 | $349,000 |
Restricted retained earnings | $700,000 |
Share_Capital_Additional_Infor
Share Capital - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 22, 2011 | Feb. 21, 2012 | Apr. 27, 2012 | Jul. 30, 2012 | Oct. 27, 2011 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||
Share allotment description | Every holder of an ordinary share present in person or proxy at a general meeting of shareholders shall have one vote, for each ordinary share held with no individual having more than one vote. | |||||||
Ordinary shares repurchased | 2,640,610 | 0 | 738,341 | |||||
Ordinary shares repurchased, value | $140 | $15.60 | ||||||
Employee Stock Option | ||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||
Options exercised by employees | 926,407 | 1,249,759 | 890,236 | |||||
Average exercise price of Option per share | $24.02 | 21.6 | $14.62 | |||||
Total proceeds from exercise of stock options by employees | 22.3 | 27 | 13 | |||||
Restricted Stock Units (RSUs) | ||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||
Ordinary shares issued in respect of certain RSU's previously awarded by the Company | 233,726 | 50,000 | ||||||
Maximum | ||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||
Share repurchase program value | 50 | |||||||
Plan 1 | ||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||
Share repurchase plans, start date | 23-Nov-11 | |||||||
Share repurchase plans, end date | 31-Dec-11 | |||||||
Plan 1 | Maximum | ||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||
Share repurchase program value | 10 | |||||||
Plan 2 | ||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||
Share repurchase plans, start date | 1-Jan-12 | |||||||
Share repurchase plans, end date | 20-Feb-12 | |||||||
Plan 2 | Maximum | ||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||
Share repurchase program value | 10 | |||||||
Plan 3 | ||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||
Share repurchase plans, start date | 22-Feb-12 | |||||||
Share repurchase plans, end date | 22-Apr-12 | |||||||
Plan 3 | Maximum | ||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||
Share repurchase program value | 20 | |||||||
Plan 4 | ||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||
Share repurchase plans, start date | 27-Apr-12 | |||||||
Share repurchase plans, end date | 18-Jul-12 | |||||||
Plan 4 | Maximum | ||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||
Share repurchase program value | 20 | |||||||
Plan 5 | ||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||
Share repurchase plans, start date | 30-Jul-12 | |||||||
Share repurchase plans, end date | 26-Oct-12 | |||||||
Plan 5 | Maximum | ||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||
Share repurchase program value | 10 |
Components_of_Income_Before_Pr
Components of Income Before Provision for Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items] | |||
Income before provision for income taxes | $202,716 | $120,865 | $67,221 |
Ireland | |||
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items] | |||
Income before provision for income taxes | 143,889 | 80,914 | 12,157 |
United States | |||
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items] | |||
Income before provision for income taxes | 6,966 | 16,218 | 11,371 |
Other | |||
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items] | |||
Income before provision for income taxes | $51,861 | $23,733 | $43,693 |
Components_of_Total_Income_Tax
Components of Total Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Current tax | $38,148 | $28,526 | $22,231 |
Deferred expense/(benefit): | |||
Deferred tax expense/(benefit) | -7,900 | -10,473 | -10,430 |
Provision for income taxes | 30,248 | 18,053 | 11,801 |
Impact on shareholders equity and other comprehensive income of the tax consequence of : | |||
Excess tax benefit on stock compensation | -2,404 | -1,651 | -1,274 |
Currency impact on long term funding | 178 | 87 | 356 |
Total | 28,022 | 16,489 | 10,883 |
Ireland | |||
Current: | |||
Current tax | 19,562 | 9,158 | 1,684 |
Deferred expense/(benefit): | |||
Deferred tax expense/(benefit) | -1,178 | 1,914 | -287 |
Provision for income taxes | 18,384 | 11,073 | 1,216 |
United States | |||
Current: | |||
Current tax | 7,891 | 14,492 | 12,290 |
Deferred expense/(benefit): | |||
Deferred tax expense/(benefit) | -3,031 | -9,420 | -9,715 |
Provision for income taxes | 4,860 | 5,072 | 3,669 |
Other | |||
Current: | |||
Current tax | 10,695 | 4,876 | 8,257 |
Deferred expense/(benefit): | |||
Deferred tax expense/(benefit) | -3,691 | -2,967 | -428 |
Provision for income taxes | $4,149 | $1,915 | $3,618 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Ireland's statutory income tax rate | 12.50% | 12.50% | 12.50% |
Valuation allowance for deferred tax assets | $23,145,000 | $24,348,000 | $21,190,000 |
Net change in the total valuation allowance | 1,200,000 | 3,100,000 | |
Deferred tax expense/(benefit) resulted from valuation allowance release | 3,100,000 | ||
Deferred tax liability unrecognized for the undistributed earnings of foreign subsidiaries | 0 | 0 | 0 |
Unrecognized tax benefit | 2,300,000 | ||
Unrecognized Tax Benefits, Period Increase | 14,500,000 | ||
Total unrecognized tax benefits net of potential benefits | 23,200,000 | 5,800,000 | 7,200,000 |
Interest and penalties recognized as an expense | 200,000 | 200,000 | 100,000 |
Total accrued interest and penalties | 2,400,000 | 900,000 | |
Tax Jurisdiction Description | In the United States tax periods open to audit include the years ended December 31, 2011, December 31, 2012, December 31, 2013 and December 31, 2014. In Ireland tax periods open to audit include the years ended December 31, 2010, December 31, 2011, December 31, 2012, December 31, 2013 and December 31, 2014. During such audits, local tax authorities may challenge the positions taken by us in tax returns. | ||
Foreign Country | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Non-U.S subsidiaries Operating loss carry forwards for income tax | 95,600,000 | 96,200,000 | |
Additional operating loss carry forward | 5,800,000 | ||
Non-U.S subsidiaries tax credit carry forwards for income tax | 3,600,000 | 2,400,000 | |
Expiration period | Expire between 2015 and 2017 | ||
Ireland | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Ireland's statutory income tax rate | 12.50% | ||
United States | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Expiration period | Expire between 2015 and 2033 | ||
U.S. Federal net operating loss carry forwards currently available for offset | 11,800,000 | ||
Limitation description | Due to change of ownership in 2000, 2010 and 2014, as defined by Section 382 of the Internal Revenue Code of 1986, as amended. | ||
Alternative minimum tax credit carry forwards | 300,000 | ||
Business credit carry forwards that are available to offset | 300,000 | ||
United States | Federal | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Additional operating loss carry forward | 36,879,000 | ||
United States | State | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Additional operating loss carry forward | $65,140,000 |
Consolidated_Effective_Tax_Rat
Consolidated Effective Tax Rate Differed from Statutory Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | |||
Taxes at Irish statutory rate of 12.5% (2013:12.5%; 2012:12.5%) | $25,340 | $15,108 | $8,401 |
Foreign and other income taxed at higher rates | 1,981 | 4,085 | 6,360 |
Research & development tax incentives | -1,810 | -2,598 | -4,954 |
Movement in valuation allowance | -1,965 | 2,389 | 1,557 |
Effects of change in tax rates | 543 | 1,553 | 867 |
Increase in unrecognized tax benefits | 2,869 | -1,409 | 646 |
Prior year over provision | -552 | -47 | -678 |
Effects of permanent items | 3,219 | -1,002 | -26 |
Other | 623 | -26 | -372 |
Provision for income taxes | $30,248 | $18,053 | $11,801 |
Consolidated_Effective_Tax_Rat1
Consolidated Effective Tax Rate Differed from Statutory Rate (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | |||
Irish statutory rate | 12.50% | 12.50% | 12.50% |
Tax_Effects_of_Temporary_Diffe
Tax Effects of Temporary Differences That Gives Rise to Significant Portions of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Deferred tax liabilities: | |||
Property, plant and equipment | $4,270 | $6,501 | $6,631 |
Goodwill attributable to intangibles | 18,645 | 14,013 | 11,467 |
Other intangible assets | 3,657 | 970 | 2,707 |
Accruals | 238 | 51 | 77 |
Other | 4 | 88 | |
Unrealized FX | 1,709 | 1,056 | 1,160 |
Total deferred tax liabilities recognized | 28,519 | 22,595 | 22,130 |
Deferred tax assets: | |||
Net operating loss and tax credits carryforwards | 30,586 | 29,696 | 26,545 |
Property, plant and equipment | 4,002 | 2,739 | 2,345 |
Accrued expenses and payments on account | 37,620 | 30,136 | 20,326 |
Stock compensation | 8,717 | 6,291 | 5,586 |
Deferred compensation expense | 1,853 | 1,187 | 1,136 |
Other | 892 | ||
Unrealized FX | 352 | 92 | 98 |
Total deferred tax assets | 84,022 | 70,141 | 56,036 |
Valuation allowance for deferred tax assets | -23,145 | -24,348 | -21,190 |
Deferred tax assets recognized | 60,877 | 45,793 | 34,846 |
Deferred tax assets net of unrecognized tax benefits | 60,877 | 45,793 | 34,846 |
Overall Net deferred tax asset | $32,358 | $23,198 | $12,716 |
Expected_Expiry_Dates_of_NOIs_
Expected Expiry Dates of NOI's (Detail) (United States, USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward | $36,879 |
Federal | Expiring 2014-2020 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward | 678 |
Federal | Expiring 2021-2025 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward | 4,031 |
Federal | Expiring 2026-2032 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward | 32,170 |
State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward | 65,140 |
State | Expiring 2014-2020 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward | 1,893 |
State | Expiring 2021-2025 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward | 12,705 |
State | Expiring 2026-2032 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward | $50,542 |
Reconciliation_of_Beginning_an
Reconciliation of Beginning and Ending Amount of Total Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Contingency [Line Items] | |||
Gross amount of unrecognized tax benefits at start of year | $5,780 | $7,189 | $6,543 |
Increase related to acquired tax positions | 14,552 | ||
Increase related to prior year tax positions | 565 | 1,167 | |
Decrease related to prior year tax positions | -183 | -494 | |
Increase related to current year tax positions | 3,709 | 2,269 | 1,473 |
Settlements | -2 | -899 | -98 |
Lapse of statute of limitations | -1,220 | -2,285 | -1,896 |
Gross amount of unrecognized tax benefits at end of year | $23,201 | $5,780 | $7,189 |
Recognized_Restructuring_and_O
Recognized Restructuring and Other Items, Net (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $8,796 | $9,033 | $4,525 |
Other items | 1,111 | ||
Net charge | $8,796 | $9,033 | $5,636 |
Recovered_Sheet3
Restructuring and Other Items - Additional Information (Detail) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||
Jun. 11, 2012 | Jun. 11, 2012 | Jun. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 11, 2012 | Jun. 11, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | Asset Impairment | Onerous Lease | |
USD ($) | USD ($) | |||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | $8,796,000 | $9,033,000 | $4,525,000 | $5,600,000 | $3,200,000 | |||||
Restructuring and other charges | 9,000,000 | |||||||||
Agreement settlement charges | 220,000 | 160,000 | ||||||||
Discretionary bonus | 271,000 | 194,000 | ||||||||
Share-based compensation | $620,000 | $738,000 |
Restructuring_Charges_Detail
Restructuring Charges (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Total provision recognized | $8,796 | $9,033 | $4,525 |
Closing provision | 537 | 2,194 | |
Manchester, United Kingdom facility closure | |||
Restructuring Cost and Reserve [Line Items] | |||
Total provision recognized | 8,796 | ||
Asset write-off | -5,629 | ||
Closing provision | 3,167 | ||
Onerous Lease | Manchester, United Kingdom facility closure | |||
Restructuring Cost and Reserve [Line Items] | |||
Total provision recognized | 3,167 | ||
Closing provision | 3,167 | ||
Asset Impairment | Manchester, United Kingdom facility closure | |||
Restructuring Cost and Reserve [Line Items] | |||
Total provision recognized | 5,629 | ||
Asset write-off | -5,629 | ||
Closing provision | $0 |
Details_of_Movement_in_Restruc
Details of Movement in Restructuring Provisions Recognized (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Initial provision recognized | $8,796 | $9,033 | $4,525 |
Cash payments | -1,656 | -6,743 | |
Amounts released | -93 | ||
Foreign exchange movement | -1 | -3 | |
Closing provision | 537 | 2,194 | |
1st Quarter 2013 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial provision recognized | 4,412 | ||
2nd Quarter 2013 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial provision recognized | 4,621 | ||
Workforce Reduction | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial provision recognized | 8,131 | ||
Cash payments | -1,319 | -6,544 | |
Amounts released | -93 | ||
Foreign exchange movement | -1 | -3 | |
Closing provision | 171 | 1,491 | |
Workforce Reduction | 1st Quarter 2013 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial provision recognized | 3,903 | ||
Workforce Reduction | 2nd Quarter 2013 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial provision recognized | 4,228 | ||
Office Consolidations | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial provision recognized | 902 | ||
Cash payments | -337 | -199 | |
Closing provision | 366 | 703 | |
Office Consolidations | 1st Quarter 2013 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial provision recognized | 509 | ||
Office Consolidations | 2nd Quarter 2013 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial provision recognized | $393 |
Provision_For_Doubtful_Debts_D
Provision For Doubtful Debts (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Opening provision | $3,148 | $5,047 |
Amounts used during the year | -502 | -3,132 |
Amounts provided during the year | 2,874 | 1,368 |
Amounts released during the year | -62 | -135 |
Closing provision | $5,458 | $3,148 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Lease Obligations [Line Items] | |||
Non-cancelable operating leases for facilities expiration period | 10 years | ||
Operating leases rental expense | $54.30 | $54.90 | $52.50 |
Future_Minimum_Rental_Commitme
Future Minimum Rental Commitments for Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
2015 | $43,122 |
2016 | 34,733 |
2017 | 24,096 |
2018 | 19,049 |
2019 | 14,000 |
Thereafter | 54,824 |
Total | $189,824 |
Distribution_of_Net_Revenue_by
Distribution of Net Revenue by Geographical Area (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Net Revenue | $1,503,316 | $1,336,058 | $1,115,006 |
Ireland | |||
Segment Reporting Information [Line Items] | |||
Net Revenue | 360,376 | 272,683 | 171,977 |
Rest Of Europe | |||
Segment Reporting Information [Line Items] | |||
Net Revenue | 372,634 | 333,543 | 338,537 |
United States | |||
Segment Reporting Information [Line Items] | |||
Net Revenue | 605,815 | 582,250 | 471,700 |
Other | |||
Segment Reporting Information [Line Items] | |||
Net Revenue | $164,491 | $147,582 | $132,792 |
Distribution_of_Income_from_Op
Distribution of Income from Operations, including Restructuring and Other Items, by Geographical Area (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Income from operations | $202,350 | $121,167 | $68,017 |
Ireland | |||
Segment Reporting Information [Line Items] | |||
Income from operations | 138,185 | 81,811 | 9,659 |
Rest Of Europe | |||
Segment Reporting Information [Line Items] | |||
Income from operations | 14,481 | 2,831 | 29,240 |
United States | |||
Segment Reporting Information [Line Items] | |||
Income from operations | 39,058 | 29,472 | 21,036 |
Other | |||
Segment Reporting Information [Line Items] | |||
Income from operations | $10,626 | $7,053 | $8,082 |
Distribution_of_Income_from_Op1
Distribution of Income from Operations, excluding Restructuring and Other Items, by Geographical Area (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Income from operations, excluding restructuring and other items | $211,146 | $130,200 | $73,653 |
Ireland | |||
Segment Reporting Information [Line Items] | |||
Income from operations, excluding restructuring and other items | 138,185 | 82,867 | 11,733 |
Rest Of Europe | |||
Segment Reporting Information [Line Items] | |||
Income from operations, excluding restructuring and other items | 23,277 | 6,269 | 29,786 |
United States | |||
Segment Reporting Information [Line Items] | |||
Income from operations, excluding restructuring and other items | 39,058 | 33,564 | 23,687 |
Other | |||
Segment Reporting Information [Line Items] | |||
Income from operations, excluding restructuring and other items | $10,626 | $7,500 | $8,447 |
Distribution_of_Property_Plant
Distribution of Property, Plant and Equipment, Net, by Geographical Area (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $148,185 | $160,830 |
Ireland | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 95,574 | 103,868 |
Rest Of Europe | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 10,419 | 14,630 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 33,978 | 33,947 |
Other | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $8,214 | $8,385 |
Distribution_of_Depreciation_a
Distribution of Depreciation and Amortization by Geographical Area (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Disclosure [Line Items] | |||
Depreciation and amortization | $52,542 | $46,514 | $42,823 |
Ireland | |||
Segment Reporting Disclosure [Line Items] | |||
Depreciation and amortization | 20,731 | 19,826 | 17,885 |
Rest Of Europe | |||
Segment Reporting Disclosure [Line Items] | |||
Depreciation and amortization | 7,478 | 6,595 | 7,211 |
United States | |||
Segment Reporting Disclosure [Line Items] | |||
Depreciation and amortization | 20,491 | 16,233 | 13,865 |
Other | |||
Segment Reporting Disclosure [Line Items] | |||
Depreciation and amortization | $3,842 | $3,860 | $3,862 |
Distribution_of_Total_Assets_b
Distribution of Total Assets by Geographical Area (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Assets | $1,528,850 | $1,442,460 |
Ireland | ||
Segment Reporting Information [Line Items] | ||
Assets | 495,747 | 581,568 |
Rest Of Europe | ||
Segment Reporting Information [Line Items] | ||
Assets | 324,086 | 321,661 |
United States | ||
Segment Reporting Information [Line Items] | ||
Assets | 648,559 | 486,232 |
Other | ||
Segment Reporting Information [Line Items] | ||
Assets | $60,458 | $52,999 |
Distribution_of_Capital_Expend
Distribution of Capital Expenditure by Geographical Area (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Capital Expenditures | $32,779 | $29,488 | $33,026 |
Ireland | |||
Property, Plant and Equipment [Line Items] | |||
Capital Expenditures | 15,117 | 3,976 | 12,406 |
Rest Of Europe | |||
Property, Plant and Equipment [Line Items] | |||
Capital Expenditures | 2,278 | 1,887 | 2,506 |
United States | |||
Property, Plant and Equipment [Line Items] | |||
Capital Expenditures | 12,224 | 20,842 | 13,389 |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Capital Expenditures | $3,160 | $2,783 | $4,725 |
Clients_Representing_Companys_
Clients Representing Company's Net Revenue (Detail) (Customer Concentration Risk [Member], Sales Revenue, Net) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Client A | |||
Revenue, Major Customer [Line Items] | |||
Clients which represented 10% or more of the company's net revenue | 31.00% | 26.00% | 18.00% |
Client B | |||
Revenue, Major Customer [Line Items] | |||
Clients which represented 10% or more of the company's net revenue | 10.00% | 12.00% |
Distribution_of_Interest_Incom
Distribution of Interest Income by Geographical Area (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Disclosure [Line Items] | |||
Interest income | $1,151 | $986 | $1,151 |
Ireland | |||
Segment Reporting Disclosure [Line Items] | |||
Interest income | 284 | 355 | 464 |
Rest Of Europe | |||
Segment Reporting Disclosure [Line Items] | |||
Interest income | 798 | 501 | 661 |
United States | |||
Segment Reporting Disclosure [Line Items] | |||
Interest income | 3 | ||
Other | |||
Segment Reporting Disclosure [Line Items] | |||
Interest income | $69 | $130 | $23 |
Distribution_of_Tax_Charge_by_
Distribution of Tax Charge by Geographical Area (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Line Items] | |||
Tax Charge | $30,248 | $18,053 | $11,801 |
Ireland | |||
Income Taxes [Line Items] | |||
Tax Charge | 18,384 | 11,073 | 1,216 |
Rest Of Europe | |||
Income Taxes [Line Items] | |||
Tax Charge | 2,855 | -7 | 3,298 |
United States | |||
Income Taxes [Line Items] | |||
Tax Charge | 4,860 | 5,072 | 3,669 |
Other | |||
Income Taxes [Line Items] | |||
Tax Charge | $4,149 | $1,915 | $3,618 |
Supplemental_Disclosure_of_Cas2
Supplemental Disclosure of Cash Flow Information (Detail) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Schedule of Cash Flow, Supplemental [Line Items] | |||||
Non-cash interest on acquisition consideration payable | $240 | [1] | $940 | [1] | |
Cash paid for interest | 533 | 548 | 602 | ||
Cash paid for income taxes | $17,829 | $14,103 | $18,475 | ||
[1] | recorded within interest expense |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Currency translation adjustments | ($22,210) | $22,828 | |
Currency impact on long term funding (Net of tax) | -9,252 | -18,880 | |
Actuarial loss on defined benefit pension plan (note 9) | -6,113 | -1,988 | -3,371 |
Unrealised capital gain/(loss) - investments (note 3) | 20 | ||
Total | ($37,555) | $1,960 |
Related_Parties_Additional_Inf
Related Parties - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
Mr. Peter Gray | Mr. Peter Gray | Dr. John Climax | Dr. John Climax | |
USD ($) | EUR (€) | USD ($) | EUR (€) | |
Related Party Transaction [Line Items] | ||||
Related party transaction amounts | $350,000 | € 265,000 | $346,000 | € 262,500 |
Term of Agreement | 2 years | 2 years | 3 years | 3 years |
Related party agreement beginning date | 1-Aug-12 | 1-Aug-12 | ||
Related party agreement expiration date | 31-Dec-12 | 31-Dec-12 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event, MediMedia Pharma Solutions, USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Feb. 27, 2015 |
Subsequent Event | MediMedia Pharma Solutions | |
Subsequent Event [Line Items] | |
Cash consideration | $120,000 |
Summary_of_Estimates_of_Fair_V5
Summary of Estimates of Fair Values of Assets Acquired and Liabilities Assumed of MediMedia Pharma Solotions (Detail) (Subsequent Event, MediMedia Pharma Solutions, USD $) | Feb. 27, 2015 |
In Thousands, unless otherwise specified | |
Subsequent Event | MediMedia Pharma Solutions | |
Business Acquisition [Line Items] | |
Property, plant and equipment | $796 |
Accounts receivable | 4,877 |
Unbilled revenue | 4,826 |
Prepayments and other current assets | 721 |
Accounts payable | -671 |
Other liabilities | -4,763 |
Payments on account | -4,376 |
Net assets acquired | $1,410 |