Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Syneos Health, Inc. | |
Entity Central Index Key | 0001610950 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 103,755,391 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue | $ 1,119,006 | $ 1,057,196 |
Costs and operating expenses: | ||
Direct costs (exclusive of depreciation and amortization) | 886,802 | 840,823 |
Selling, general, and administrative expenses | 113,117 | 99,259 |
Restructuring and other costs | 14,413 | 13,707 |
Transaction and integration-related expenses | 16,658 | 25,211 |
Depreciation | 19,571 | 18,028 |
Amortization | 41,629 | 49,993 |
Total operating expenses | 1,092,190 | 1,047,021 |
Income from operations | 26,816 | 10,175 |
Other expense, net: | ||
Interest income | 1,502 | 839 |
Interest expense | (34,630) | (31,736) |
Loss on extinguishment of debt | (4,355) | (248) |
Other expense, net | (8,921) | (12,554) |
Total other expense, net | (46,404) | (43,699) |
Loss before provision for income taxes | (19,588) | (33,524) |
Income tax (expense) benefit | (10,416) | 8,972 |
Net loss | $ (30,004) | $ (24,552) |
Loss per share: | ||
Basic (USD per share) | $ (0.29) | $ (0.24) |
Diluted (USD per share) | $ (0.29) | $ (0.24) |
Weighted average common shares outstanding: | ||
Basic (in shares) | 103,365 | 104,449 |
Diluted (in shares) | 103,365 | 104,449 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (30,004) | $ (24,552) |
Unrealized gain (loss) on derivative instruments, net of income tax benefit (expense) of $95 and $0, respectively | (4,216) | |
Unrealized gain (loss) on derivative instruments, net of income tax benefit (expense) of $95 and $0, respectively | 434 | |
Foreign currency translation adjustments, net of income tax benefit (expense) of $0 and $(2,868), respectively | 20,604 | 33,923 |
Comprehensive income (loss) | $ (13,616) | $ 9,805 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized (loss) gain on derivative instruments, income tax benefit (expense) | $ 95 | |
Unrealized (loss) gain on derivative instruments, income tax benefit (expense) | $ 0 | |
Foreign currency translation adjustments, income tax benefit (expense) | $ 0 | $ (2,868) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash, cash equivalents, and restricted cash | $ 107,921 | $ 155,932 |
Accounts receivable and unbilled services, net | 1,221,660 | 1,256,731 |
Prepaid expenses and other current assets | 78,179 | 79,299 |
Total current assets | 1,407,760 | 1,491,962 |
Property and equipment, net | 175,990 | 183,486 |
Operating lease right-of-use assets | 239,391 | |
Goodwill | 4,344,744 | 4,333,159 |
Intangible assets, net | 1,096,619 | 1,133,612 |
Deferred income tax assets | 9,153 | 9,317 |
Other long-term assets | 113,873 | 103,373 |
Total assets | 7,387,530 | 7,254,909 |
Current liabilities: | ||
Accounts payable | 94,278 | 98,624 |
Accrued expenses | 535,521 | 563,527 |
Deferred revenue | 713,313 | 777,141 |
Current portion of operating lease obligations | 28,792 | |
Current portion of finance lease obligations | 11,808 | |
Current portion of finance lease obligations | 13,806 | |
Current portion of long-term debt | 0 | 50,100 |
Total current liabilities | 1,383,712 | 1,503,198 |
Long-term debt | 2,785,658 | 2,737,019 |
Operating lease long-term obligations | 236,905 | |
Finance lease long-term obligations | 27,144 | |
Finance lease long-term obligations | 26,759 | |
Deferred income tax liabilities | 26,823 | 25,120 |
Other long-term liabilities | 88,918 | 106,669 |
Total liabilities | 4,549,160 | 4,398,765 |
Commitments and contingencies (Note 18) | ||
Shareholders' equity: | ||
Preferred stock, $0.01 par value; 30,000 shares authorized, 0 shares issued and outstanding at March 31, 2019 and December 31, 2018 | 0 | 0 |
Common stock, $0.01 par value; 600,000 shares authorized, 103,753 and 103,372 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 1,038 | 1,034 |
Additional paid-in capital | 3,402,953 | 3,402,638 |
Accumulated other comprehensive loss, net of tax | (71,807) | (88,195) |
Accumulated deficit | (493,814) | (459,333) |
Total shareholders' equity | 2,838,370 | 2,856,144 |
Total liabilities and shareholders' equity | $ 7,387,530 | $ 7,254,909 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock shares authorized (in shares) | 30,000,000 | 30,000,000 |
Preferred stock shares issued (in shares) | 0 | 0 |
Preferred stock shares outstanding (in shares) | 0 | 0 |
Common stock par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock shares issued (in shares) | 103,753,000 | 103,372,000 |
Common stock shares outstanding (in shares) | 103,753,000 | 103,372,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (30,004) | $ (24,552) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 61,200 | 68,021 |
Amortization of Senior Notes premium, net of capitalized loan fees and original issue discount | (169) | (34) |
Share-based compensation | 14,267 | 7,879 |
Provision for doubtful accounts | 1,302 | 171 |
Provision for (benefit from) deferred income taxes | 1,544 | (10,735) |
Foreign currency transaction adjustments | (77) | 6,364 |
Fair value adjustment of contingent obligations | 724 | 1,194 |
Loss on extinguishment of debt | 4,355 | 248 |
Other non-cash items | (474) | 1,796 |
Changes in operating assets and liabilities, net of effect of business combinations: | ||
Accounts receivable, unbilled services, and deferred revenue | (25,471) | (90,617) |
Accounts payable and accrued expenses | (26,682) | (14,241) |
Other assets and liabilities | (13,821) | 7,521 |
Net cash used in operating activities | (13,306) | (46,985) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (11,445) | (21,286) |
Net cash used in investing activities | (11,445) | (21,286) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt, net of discount | 183,195 | 0 |
Payments of debt financing costs | (184) | 0 |
Repayments of long-term debt | (216,136) | (31,250) |
Proceeds from accounts receivable financing agreement | 26,500 | 0 |
Payments of contingent consideration related to business combinations | (8) | 0 |
Payments of finance leases | (1,274) | |
Payments of finance leases | (4,479) | |
Payments for repurchase of common stock | (26,616) | (37,493) |
Proceeds from exercise of stock options | 19,724 | 5,668 |
Payments related to tax withholding for share-based compensation | (11,539) | (2,323) |
Net cash used in financing activities | (26,338) | (69,877) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 3,078 | 5,127 |
Net change in cash, cash equivalents, and restricted cash | (48,011) | (133,021) |
Cash, cash equivalents, and restricted cash - beginning of period | 155,932 | 321,976 |
Cash, cash equivalents, and restricted cash - end of period | $ 107,921 | $ 188,955 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Shareholders' Equity Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit |
Balance (in shares) at Dec. 31, 2017 | 104,436 | ||||
Balance at Dec. 31, 2017 | $ 3,022,579 | $ 1,044 | $ 3,414,389 | $ (22,385) | $ (370,469) |
Stock repurchase (in shares) | (948) | ||||
Stock repurchase | (37,492) | $ (9) | (30,982) | (6,501) | |
RSU distributions net of shares for tax withholding (in shares) | 100 | ||||
RSU distributions net of shares for tax withholding | (2,323) | $ 1 | (2,324) | ||
Stock option exercises (in shares) | 216 | ||||
Stock option exercises | 5,626 | $ 2 | 5,624 | ||
Share-based compensation | 7,879 | 7,879 | |||
Net loss | (24,552) | (24,552) | |||
Unrealized gain (loss) on derivative instruments, net of taxes | 434 | 434 | |||
Foreign currency translation adjustment, net of taxes | 33,923 | 33,923 | |||
Balance (in shares) at Mar. 31, 2018 | 103,804 | ||||
Balance at Mar. 31, 2018 | 2,907,259 | $ 1,038 | 3,394,586 | 15,822 | (504,187) |
Balance at Dec. 31, 2017 | $ 3,022,579 | $ 1,044 | 3,414,389 | (22,385) | (370,469) |
Balance (in shares) at Dec. 31, 2018 | 103,372 | 103,372 | |||
Balance at Dec. 31, 2018 | $ 2,856,144 | $ 1,034 | 3,402,638 | (88,195) | (459,333) |
Stock repurchase (in shares) | (673) | ||||
Stock repurchase | (26,616) | $ (7) | (22,132) | (4,477) | |
RSU distributions net of shares for tax withholding (in shares) | 380 | ||||
RSU distributions net of shares for tax withholding | (11,533) | $ 4 | (11,537) | ||
Stock option exercises (in shares) | 674 | ||||
Stock option exercises | 19,724 | $ 7 | 19,717 | ||
Share-based compensation | 14,267 | 14,267 | |||
Net loss | (30,004) | (30,004) | |||
Unrealized gain (loss) on derivative instruments, net of taxes | (4,216) | (4,216) | |||
Foreign currency translation adjustment, net of taxes | $ 20,604 | 20,604 | |||
Balance (in shares) at Mar. 31, 2019 | 103,753 | 103,753 | |||
Balance at Mar. 31, 2019 | $ 2,838,370 | $ 1,038 | 3,402,953 | (71,807) | (493,814) |
Balance at Dec. 31, 2018 | $ 2,856,144 | $ 1,034 | $ 3,402,638 | $ (88,195) | $ (459,333) |
Basis of Presentation and Chang
Basis of Presentation and Changes in Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Changes in Significant Accounting Policies | Basis of Presentation and Changes in Significant Accounting Policies Nature of Operations Syneos Health, Inc. (the “Company”) is a global provider of end-to-end biopharmaceutical outsourcing solutions. The Company operates under two reportable segments, Clinical Solutions and Commercial Solutions, and derives its revenue through a suite of services designed to enhance its customers’ ability to successfully develop, launch, and market their products. The Company offers its solutions on both a standalone and integrated basis with biopharmaceutical development and commercialization services ranging from Phase I-IV clinical trial services to services associated with the commercialization of biopharmaceutical products. The Company’s customers include small, mid-sized, and large companies in the pharmaceutical, biotechnology, and medical device industries. Unaudited Interim Financial Information The Company prepared the accompanying unaudited condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. The significant accounting policies followed by the Company for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. The unaudited condensed consolidated financial statements, in management’s opinion, include all adjustments of a normal recurring nature necessary for a fair presentation. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , filed with the Securities and Exchange Commission on March 18, 2019 . The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the full year ending December 31, 2019 or any other future period. The unaudited condensed consolidated balance sheet at December 31, 2018 is derived from the amounts in the audited consolidated balance sheet included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . Recently Adopted Accounting Standards Leases . In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-02 (“ASU 2016-02”), Leases (Topic 842) , as further amended, to increase transparency and comparability among organizations by requiring the recognition of, at the lease commencement date, a lease liability for the obligation to make lease payments, and a right-of-use ("ROU") asset for the right to use the underlying asset, on the balance sheet. The Company adopted ASU 2016-02, and all related amendments, collectively “ASC 842”, as of January 1, 2019, using the modified retrospective approach. Results for reporting periods beginning on January 1, 2019 are presented under ASC 842, while prior period amounts continue to be reported and disclosed in accordance with the Company’s historical accounting treatment under Accounting Standards Codification 840 , Leases (“ASC 840”). In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, does not require the Company to reassess if a contract is or contains a lease and allows the Company to carry forward the historical lease classifications and historical initial direct costs. The Company made an accounting policy election under ASC 842 not to recognize ROU assets and lease liabilities for leases with a term of 12 months or less. Lease payments for these leases are recognized as lease costs on a straight-line basis over the lease term. The Company also elected to account for lease components and the associated non-lease components in the contracts as a single lease component for all classes of underlying assets. Adoption of the new standard resulted in the recording of additional net lease assets and lease liabilities, mainly related to operating leases, of approximately $214.0 million , as of January 1, 2019. The Company’s accounting for finance leases (previously classified as capital leases under ASC 840) remained substantially unchanged. |
Financial Statement Details
Financial Statement Details | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statement Details | Financial Statement Details Cash and Cash Equivalents Certain of the Company’s subsidiaries participate in a notional cash pooling arrangement to manage global liquidity requirements. The participants combine their cash balances in pooling accounts at the same financial institution with the ability to offset bank overdrafts of one participant against positive cash account balances held by another participant. The net cash balance related to this pooling arrangement is included in Cash, cash equivalents, and restricted cash in the unaudited condensed consolidated balance sheets. Accounts Receivable and Unbilled Services, net Accounts receivable and unbilled services, net of allowance for doubtful accounts, consisted of the following (in thousands): March 31, 2019 December 31, 2018 Accounts receivable billed $ 729,727 $ 733,142 Less allowance for doubtful accounts (5,882 ) (4,587 ) Accounts receivable billed, net 723,845 728,555 Accounts receivable unbilled 392,810 422,860 Contract assets 105,005 105,316 Accounts receivable billed and unbilled services, net $ 1,221,660 $ 1,256,731 Accounts Receivable Factoring Arrangement In May 2017, the Company entered into an accounts receivable factoring agreement to sell certain eligible unsecured trade accounts receivable, without recourse, to an unrelated third-party financial institution for cash. For the three months ended March 31, 2019 and March 31, 2018 , the Company factored $73.8 million and $45.4 million , respectively, of trade accounts receivable on a non-recourse basis and received $73.2 million and $45.2 million , respectively, in cash proceeds from the sale. The fees associated with these transactions were insignificant. Goodwill The changes in the carrying amount of goodwill by segment for the three months ended March 31, 2019 were as follows (in thousands): Total Clinical Commercial Balance at December 31, 2018: Gross carrying amount $ 4,349,325 $ 2,780,945 $ 1,568,380 Accumulated impairment losses (a) (16,166 ) (8,142 ) (8,024 ) Goodwill, net of accumulated impairment losses 4,333,159 2,772,803 1,560,356 2019 Activity: Impact of foreign currency translation 11,585 8,616 2,969 Balance at March 31, 2019: Gross carrying amount 4,360,910 2,789,561 1,571,349 Accumulated impairment losses (a) (16,166 ) (8,142 ) (8,024 ) Goodwill, net of accumulated impairment losses $ 4,344,744 $ 2,781,419 $ 1,563,325 (a) Accumulated impairment losses associated with the Clinical Solutions segment were recorded prior to 2019 and related to the former Phase I Services segment, now a component of the Clinical Solutions segment. Accumulated impairment losses associated with the Commercial Solutions segment were recorded prior to 2019 and related to the former Global Consulting segment, now a component of the Commercial Solutions segment. No impairment of goodwill was recorded for the three months ended March 31, 2019 . Transaction and Integration-Related Expenses Transaction and integration-related expenses consisted of the following (in thousands): Three Months Ended March 31, 2019 2018 Professional fees $ 12,846 $ 14,700 Debt modification and related expenses 2,241 — Integration and personnel retention-related costs 847 9,293 Fair value adjustments to contingent obligations 724 1,194 Other — 24 Total transaction and integration-related expenses $ 16,658 $ 25,211 Accumulated Other Comprehensive Loss, Net of Tax Accumulated other comprehensive loss, net of tax, consisted of the following (in thousands): March 31, 2019 December 31, 2018 Foreign currency translation adjustments $ (60,351 ) $ (80,955 ) Unrealized gain (loss) on derivative instruments (11,456 ) (7,240 ) Accumulated other comprehensive loss $ (71,807 ) $ (88,195 ) Changes in accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2019 were as follows (in thousands): Unrealized gain (loss) on derivative instruments Foreign currency translation adjustments Total Balance at December 31, 2018 $ (7,240 ) $ (80,955 ) $ (88,195 ) Other comprehensive gain (loss) before reclassifications (3,729 ) 20,604 16,875 Amount of gain reclassified from accumulated other comprehensive loss into the statement of operations (487 ) — (487 ) Net current period other comprehensive gain (loss), net of tax (4,216 ) 20,604 16,388 Balance at March 31, 2019 $ (11,456 ) $ (60,351 ) $ (71,807 ) The tax effects allocated to each component of other comprehensive income (loss) for the three months ended March 31, 2019 were as follows (in thousands): Before-Tax Amount Tax Benefit Net-of-Tax Amount Foreign currency translation adjustments $ 20,604 $ — $ 20,604 Unrealized loss on derivative instruments: Unrealized loss arising during period (3,805 ) 76 (3,729 ) Reclassification adjustment of realized gains to net income (loss) (506 ) 19 (487 ) Net unrealized loss on derivative instruments (4,311 ) 95 (4,216 ) Other comprehensive income (loss) $ 16,293 $ 95 $ 16,388 The tax effects allocated to each component of other comprehensive income (loss) for the three months ended March 31, 2018 were as follows (in thousands): Before-Tax Amount Tax Benefit Net-of-Tax Amount Foreign currency translation adjustments $ 36,791 $ (2,868 ) $ 33,923 Unrealized gain on derivative instruments: Unrealized gain arising during the period 711 — 711 Reclassification adjustment of realized gains to net loss (277 ) — (277 ) Net unrealized gain on derivative instruments 434 — 434 Other comprehensive income (loss) $ 37,225 $ (2,868 ) $ 34,357 Other Expense, Net Other expense, net consisted of the following (in thousands): Three Months Ended March 31, 2019 2018 Net realized foreign currency gain (loss) $ (8,406 ) $ (5,517 ) Net unrealized foreign currency gain (loss) 77 (6,364 ) Other, net (592 ) (673 ) Total other expense, net $ (8,921 ) $ (12,554 ) |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations inVentiv Health Merger On August 1, 2017 (the “Merger Date”), the Company completed a merger (the “Merger”) with Double Eagle Parent, Inc. (“inVentiv”), the parent company of inVentiv Health, Inc., with the Company surviving as the accounting and legal entity acquirer. The Merger was accounted for as a business combination using the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations . The purchase price has been allocated to the tangible assets and identifiable intangible assets acquired and liabilities assumed based upon their fair values. The excess of the purchase price over the tangible and intangible assets acquired and liabilities assumed has been recorded as goodwill. The goodwill in connection with the Merger is primarily attributable to the assembled workforce of inVentiv and the expected synergies of the Merger. In connection with the Merger, the Company assumed certain contingent tax-sharing obligations of inVentiv. The fair value of the contingent tax-sharing liability is remeasured at the end of each reporting period, with changes in the estimated fair value reflected in earnings until the liability is fully settled. The estimated fair value of the contingent tax-sharing obligations liability was $16.4 million and $15.7 million as of March 31, 2019 and December 31, 2018 , respectively. The liability is included in accrued expenses and other long-term liabilities on the accompanying unaudited condensed consolidated balance sheets. Kinapse Limited Acquisition In August 2018, the Company completed its acquisition of Kinapse Topco Limited (“Kinapse”), a provider of advisory and operational solutions to the global life sciences industry. The total purchase consideration was $100.1 million plus assumed debt, and included cash acquired of $4.9 million . The Company recognized $74.8 million of goodwill and $57.3 million of intangible assets, principally customer relationships, as a result of the acquisition. The goodwill is not deductible for income tax purposes. The Company’s assessment of fair value and the purchase price allocation related to this acquisition is preliminary and further adjustments may be necessary as additional information related to the fair values of assets acquired and liabilities assumed is assessed during the measurement period (up to one year from the acquisition date). The operating results from the Kinapse acquisition have been included in the Company’s Commercial Solutions segment from the date of acquisition. |
Long-Term Debt Obligations
Long-Term Debt Obligations | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt Obligations | Long-Term Debt Obligations The Company’s debt obligations consisted of the following (in thousands): March 31, 2019 December 31, 2018 Secured Debt Term Loan A due March 2024 $ 1,150,000 $ 975,000 Term Loan B due August 2024 1,017,364 1,221,000 Accounts receivable financing agreement due June 2020 195,900 169,400 Total secured debt 2,363,264 2,365,400 Unsecured Debt 7.5% Senior Unsecured Notes due 2024 403,000 403,000 Total debt obligations 2,766,264 2,768,400 Add: unamortized Senior Notes premium, net of term loan original issuance discount 29,305 32,303 Less: unamortized deferred issuance costs (9,911 ) (13,584 ) Less: current portion of debt — (50,100 ) Total debt obligations, non-current portion $ 2,785,658 $ 2,737,019 Concurrent with the completion of the Merger on August 1, 2017, the Company entered into a credit agreement (as amended, the "Credit Agreement") for: (i) a $1.0 billion Term Loan A facility that would mature on August 1, 2022 (the “Term Loan A”); (ii) a $1.6 billion Term Loan B facility that would mature on August 1, 2024 (the “Term Loan B”); and (iii) a five -year $500.0 million revolving credit facility (the “Revolver”) that would mature on August 1, 2022 . On May 4, 2018, the Company entered into Amendment No. 1 to the Credit Agreement, which, among other things, modified the terms of the Credit Agreement to reduce by 0.25% overall the applicable margins for alternate base rate loans and Adjusted Eurocurrency Rate loans with respect to both the Term Loan A and Term Loan B facilities. In February 2019, the Company voluntarily prepaid $25.0 million towards reducing its outstanding Term Loan B balance, which was applied against the regularly-scheduled quarterly principal payments. As a result of these and previous voluntary prepayments, the Company is not required to make a mandatory principal payment against the Term Loan B principal balance until maturity in August 2024. Additionally, during the three months ended March 31, 2019 , the Company made mandatory principal repayments of $12.5 million towards its Term Loan A. Amendment No. 2 to the Credit Agreement On March 26, 2019, the Company entered into Amendment No. 2 to the Credit Agreement (“the Second Amendment”). The Second Amendment, among other things, modifies the terms of the Credit Agreement to refinance the existing Term Loan A facility and the Revolver as follows: (a) to increase the existing Term Loan A facility by $587.5 million to $1.55 billion . $187.5 million of such increase was applied at closing to repay a portion of the Company’s existing Term Loan B facility and the fees and expenses incurred in connection with the Second Amendment, and the remaining $400.0 million will be available to be funded in multiple draws within 9 months of closing and applied to further prepay loans under the Term Loan B facility and/or redeem, repay, defease or discharge all or a portion of the Company’s Senior Unsecured Notes due 2024; (b) to increase the existing Revolver commitments available by $100.0 million to $600.0 million , and reduce the margin spread by 0.25% overall, resulting in (i) for Adjusted Eurocurrency Rate loans, a margin spread of 1.50% and (ii) for alternate base rate loans, a margin spread of 0.50% , with a single 0.25% step-down based on the achievement of certain leverage ratios; and (c) to extend the maturity such that the Term Loan A facility and the Revolver will mature 5 years from March 26, 2019. The Term Loan A facility and the Revolver will continue to be subject to the same affirmative covenants and negative covenants. The financial covenant will be set at a First Lien Leverage Ratio of 5.00 : 1.00 with a single step-down to 4.50 : 1.00 commencing with the fiscal quarter ending March 31, 2020. The Company was in compliance with all covenants of the Credit Agreement as of March 31, 2019 . In connection with the Second Amendment, during the three months ended March 31, 2019 , the Company recorded a $4.4 million loss on extinguishment of debt, mainly due to the write-off of the deferred issuance costs and debt discount. The funded amount of the Term Loan A facility was issued net of a discount and debt issuance costs totaling $2.8 million . These costs are being accreted as a component of interest expense using the effective interest rate method over the term of this facility. The Company recorded debt issuance costs and related fees in connection with the Revolver and the unfunded amount of the Term Loan A facility of approximately $3.5 million , which are included in other assets in the unaudited condensed consolidated balance sheet. These costs are amortized as a component of interest expense on a straight-line basis over the related terms. Covenant Restrictions under our Lease Agreement The lease agreement for the Company’s new corporate headquarters in Morrisville, North Carolina includes a provision that requires the Company to issue a letter of credit in certain amounts to the landlord based on the Company’s debt rating issued by Moody’s Investors Service (or other nationally-recognized debt rating agency). As of March 31, 2019 (and through the date of this filing), the Company’s credit rating was Ba3. As such, no letter of credit was required through the date of this filing. Any letters of credit issued in accordance with the aforementioned requirements would be issued under the Revolver, and would reduce its available borrowing capacity by the same amount. As of March 31, 2019 , the Company ha d $580.5 million (net of $19.5 million in outstanding letters of credit) of available borrowings for working capital and other purposes under the Revolver and $0.8 million of letters of credit that were not secured by the Revolver. Accounts Receivable Financing Agreement On June 29, 2018, the Company entered into an accounts receivable financing agreement ( as amended) with a termination date of June 29, 2020, unless terminated earlier pursuant to its terms. Under this agreement, certain of the Company’s consolidated subsidiaries will sell accounts receivable and unbilled services (including contract assets) balances to a wholly-owned, bankruptcy-remote special purpose entity (“SPE”). The SPE can borrow up to $250.0 million from a third-party lender, secured by liens on certain receivables and other assets of the SPE. The Company has guaranteed the performance of the obligations of existing and future subsidiaries that sell and service the accounts receivable under this agreement. The available borrowing capacity varies monthly according to the levels of the Company’s eligible accounts receivable and unbilled receivables. Loans under this agreement will accrue interest at a reserve-adjusted LIBOR rate or a base rate equal to the higher of (i) the applicable lender’s prime rate, and (ii) the federal funds rate plus 0.50% . The Company may prepay loans upon one business day’s prior notice and may terminate or reduce the facility limit of the accounts receivable financing agreement with 15 days ’ prior notice. As of March 31, 2019 , the Company had $195.9 million of outstanding borrowings under the accounts receivable financing agreement, which is recorded in long term debt on the accompanying unaudited condensed consolidated balance sheet. The remaining maximum capacity available for borrowing under this agreement was $54.1 million as of March 31, 2019 . Maturities of Debt Obligations As of March 31, 2019 , the contractual maturities of the Company’s debt obligations were as follows (in thousands): Principal Interest 2019 $ — $ 100,123 2020 239,024 128,807 2021 79,063 122,189 2022 107,813 118,252 2023 115,000 112,726 2024 and thereafter 2,225,364 57,441 Less: deferred issuance costs (9,911 ) Unamortized Senior Notes premium, net of term loan original issuance discount 29,305 Total $ 2,785,658 $ 639,538 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company’s operating leases are primarily related to its office facilities. The Company’s finance leases are related to vehicles that the Company leases for certain sales representatives in its Commercial Solutions segment. These leases have remaining lease terms of less than 1 year to 13 years, some of which include options to extend the term or terminate the lease. These options to extend or terminate a lease are included in the lease terms when it is reasonably certain that the Company will exercise that option. ROU assets and lease liabilities are recognized based on the present value of the fixed lease payments over the lease term at the commencement date. The ROU assets also include any initial direct costs incurred and lease payments made at or before the commencement date, and are reduced by lease incentives. The Company uses its incremental borrowing rate as the discount rate to determine the present value of the lease payments for leases that do not have a readily determinable implicit discount rate. The Company’s incremental borrowing rate is the rate of interest that it would have to borrow on a collateralized basis over a similar term and amount in a similar economic environment. The Company determines the incremental borrowing rates for its leases by adjusting the local risk free interest rate with a credit risk premium corresponding to the Company’s credit rating. The Company records rent expense for its operating leases on a straight-line basis from the lease commencement date until the end of the lease term. The Company records finance lease cost as a combination of the amortization expense for the ROU assets and interest expense for the outstanding lease liabilities using the discount rate discussed above. Variable lease payments for operating leases are related to the office facilities and include but are not limited to common area maintenance, parking, electricity and management fees. The variable lease payments for finance leases are related to maintenance programs for leased vehicles. Variable lease payments are based on occurrence or based on usage; therefore, they are not included as part of the initial ROU assets and liabilities’ calculation. The components of lease cost were as follows (in thousands): Three Months Ended Classification March 31, 2019 Operating leases: Fixed lease costs Selling, general, and administrative expenses $ 17,140 Short-term lease costs Selling, general, and administrative expenses 379 Variable lease costs Selling, general, and administrative expenses 7,790 Total operating lease costs $ 25,309 Finance leases: Amortization of right-of-use assets Depreciation $ 4,319 Interest on lease liabilities Interest expense 394 Variable lease costs Selling, general, and administrative expenses 1,827 Total finance lease costs $ 6,540 Supplemental balance sheet information related to finance leases was as follows (in thousands): Finance leases: March 31, 2019 Property and equipment, gross $ 53,545 Accumulated depreciation (19,932 ) Property and equipment, net $ 33,613 Current portion of finance lease obligations $ 11,808 Finance lease long-term obligations 27,144 Total finance lease liabilities $ 38,952 Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ (16,238 ) Operating cash flows for finance leases (394 ) Financing cash flows for finance leases (1,274 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 39,002 Finance leases 1,171 Weighted average remaining lease term March 31, 2019 Operating leases 8 years Finance leases 3 years Weighted average discount rate March 31, 2019 Operating leases 4.9 % Finance leases 3.2 % As of March 31, 2019 , maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Total 2019 (remaining 9 months) $ 27,533 $ 12,853 $ 40,386 2020 50,350 13,447 63,797 2021 44,824 9,922 54,746 2022 39,255 5,476 44,731 2023 35,678 37 35,715 2024 and thereafter 131,452 — 131,452 Total lease payments 329,092 41,735 $ 370,827 Less: management fee (559 ) Less: imputed interest (63,395 ) (2,224 ) Total lease liabilities $ 265,697 $ 38,952 Under ASC 840, as of December 31, 2018 , the Company had total capital lease assets of $55.3 million and accumulated depreciation of $17.6 million , which are included within property and equipment, net, on the unaudited condensed consolidated balance sheet. The related capital lease obligations totaled $40.6 million as of December 31, 2018 . For the three months ended March 31, 2018 , the Company recorded rent expense of $16.7 million for operating leases. |
Leases | Leases The Company’s operating leases are primarily related to its office facilities. The Company’s finance leases are related to vehicles that the Company leases for certain sales representatives in its Commercial Solutions segment. These leases have remaining lease terms of less than 1 year to 13 years, some of which include options to extend the term or terminate the lease. These options to extend or terminate a lease are included in the lease terms when it is reasonably certain that the Company will exercise that option. ROU assets and lease liabilities are recognized based on the present value of the fixed lease payments over the lease term at the commencement date. The ROU assets also include any initial direct costs incurred and lease payments made at or before the commencement date, and are reduced by lease incentives. The Company uses its incremental borrowing rate as the discount rate to determine the present value of the lease payments for leases that do not have a readily determinable implicit discount rate. The Company’s incremental borrowing rate is the rate of interest that it would have to borrow on a collateralized basis over a similar term and amount in a similar economic environment. The Company determines the incremental borrowing rates for its leases by adjusting the local risk free interest rate with a credit risk premium corresponding to the Company’s credit rating. The Company records rent expense for its operating leases on a straight-line basis from the lease commencement date until the end of the lease term. The Company records finance lease cost as a combination of the amortization expense for the ROU assets and interest expense for the outstanding lease liabilities using the discount rate discussed above. Variable lease payments for operating leases are related to the office facilities and include but are not limited to common area maintenance, parking, electricity and management fees. The variable lease payments for finance leases are related to maintenance programs for leased vehicles. Variable lease payments are based on occurrence or based on usage; therefore, they are not included as part of the initial ROU assets and liabilities’ calculation. The components of lease cost were as follows (in thousands): Three Months Ended Classification March 31, 2019 Operating leases: Fixed lease costs Selling, general, and administrative expenses $ 17,140 Short-term lease costs Selling, general, and administrative expenses 379 Variable lease costs Selling, general, and administrative expenses 7,790 Total operating lease costs $ 25,309 Finance leases: Amortization of right-of-use assets Depreciation $ 4,319 Interest on lease liabilities Interest expense 394 Variable lease costs Selling, general, and administrative expenses 1,827 Total finance lease costs $ 6,540 Supplemental balance sheet information related to finance leases was as follows (in thousands): Finance leases: March 31, 2019 Property and equipment, gross $ 53,545 Accumulated depreciation (19,932 ) Property and equipment, net $ 33,613 Current portion of finance lease obligations $ 11,808 Finance lease long-term obligations 27,144 Total finance lease liabilities $ 38,952 Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ (16,238 ) Operating cash flows for finance leases (394 ) Financing cash flows for finance leases (1,274 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 39,002 Finance leases 1,171 Weighted average remaining lease term March 31, 2019 Operating leases 8 years Finance leases 3 years Weighted average discount rate March 31, 2019 Operating leases 4.9 % Finance leases 3.2 % As of March 31, 2019 , maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Total 2019 (remaining 9 months) $ 27,533 $ 12,853 $ 40,386 2020 50,350 13,447 63,797 2021 44,824 9,922 54,746 2022 39,255 5,476 44,731 2023 35,678 37 35,715 2024 and thereafter 131,452 — 131,452 Total lease payments 329,092 41,735 $ 370,827 Less: management fee (559 ) Less: imputed interest (63,395 ) (2,224 ) Total lease liabilities $ 265,697 $ 38,952 Under ASC 840, as of December 31, 2018 , the Company had total capital lease assets of $55.3 million and accumulated depreciation of $17.6 million , which are included within property and equipment, net, on the unaudited condensed consolidated balance sheet. The related capital lease obligations totaled $40.6 million as of December 31, 2018 . For the three months ended March 31, 2018 , the Company recorded rent expense of $16.7 million for operating leases. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives In May 2016, the Company entered into interest rate swaps with a combined notional value of $300.0 million in an effort to limit its exposure to variable interest rates on its term loans. The swaps became effective on June 30, 2016 and a portion of the interest rate swaps expired on June 30, 2018, with the remainder expiring on May 14, 2020. As of March 31, 2019 , the remaining notional value of these interest rate swaps was $100.0 million . In June 2018, the Company entered into an interest rate swap with an aggregate notional value of $1.01 billion , that became effective on December 31, 2018, and that will expire on June 30, 2021. The significant terms of these derivatives are substantially the same as those contained within the Credit Agreement, including monthly settlements with the swap counterparties. Interest rate swaps are designated as hedging instruments. During the three months ended March 31, 2019 , the amount of loss recognized in other income (expense), net with respect to these contracts was inconsequential. As a result of an acquisition, the Company became a party to certain foreign currency exchange rate forward contracts that have expiration dates through April 2019. During the three months ended March 31, 2019 , the amount of loss recognized in other expense, net with respect to these contracts was inconsequential. The fair values of the Company’s derivative financial instruments and the line items on the accompanying unaudited condensed consolidated balance sheets to which they were recorded are as follows (in thousands): Balance Sheet Classification March 31, 2019 December 31, 2018 Interest rate swaps - current Prepaid expenses and other current assets $ 1,132 $ 1,355 Interest rate swaps - non-current Other long-term assets 111 441 Foreign currency exchange rate swaps - current Accrued expenses — (138 ) Interest rate swaps - current Accrued expenses (4,328 ) (3,031 ) Interest rate swaps - non-current Other long-term liabilities (8,832 ) (6,201 ) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Carried at Fair Value As of March 31, 2019 and December 31, 2018 , the Company’s financial assets and liabilities carried at fair value included cash and cash equivalents, restricted cash, trading securities, billed and unbilled accounts receivable (including contract assets), accounts payable, accrued expenses, deferred revenue, assumed contingent obligations, finance leases, liabilities under the accounts receivable financing agreement, and derivative instruments. The fair values of cash and cash equivalents, restricted cash, billed and unbilled accounts receivable (including contract assets), accounts payable, accrued expenses, deferred revenue, and the liabilities under the accounts receivable financing agreement approximate their respective carrying amounts because of the liquidity and short-term nature of these financial instruments. Financial Instruments Subject to Recurring Fair Value Measurements As of March 31, 2019 , the fair values of the major classes of the Company’s assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): Level 1 Level 2 Level 3 Total Assets: Trading securities (a) $ 20,674 $ — $ — $ 20,674 Derivative instruments (b) — 1,243 — 1,243 Total assets $ 20,674 $ 1,243 $ — $ 21,917 Liabilities: Derivative instruments (b) $ — $ 13,160 $ — $ 13,160 Contingent obligations related to business combinations (c) — — 20,966 20,966 Total liabilities $ — $ 13,160 $ 20,966 $ 34,126 As of December 31, 2018 , the fair values of the major classes of the Company’s assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): Level 1 Level 2 Level 3 Total Assets: Trading securities (a) $ 14,945 $ — $ — $ 14,945 Derivative instruments (b) — 1,796 — 1,796 Total assets $ 14,945 $ 1,796 $ — $ 16,741 Liabilities: Derivative instruments (b) $ — $ 9,370 $ — $ 9,370 Contingent consideration obligations related to business combinations (c) — — 20,127 20,127 Total liabilities $ — $ 9,370 $ 20,127 $ 29,497 (a) Represents fair value of investments in mutual funds based on quoted market prices which are used to fund the liability associated with the deferred compensation plan. (b) Represents fair value of interest rate swap and foreign currency exchange rate forward contract arrangements (see "Note 6 - Derivatives" for further information). (c) Represents fair value of contingent obligations related to business combinations (see "Note 3 - Business Combinations" for further information). The fair value of these liabilities are determined based on the Company’s best estimate of the probable timing and amount of settlement. The following table presents changes in the carrying amount of obligations classified as Level 3 category within the fair value hierarchy for the three months ended March 31, 2019 (in thousands): Balance at December 31, 2018 $ 20,127 Additions — Accretion recognized in earnings 839 Balance at March 31, 2019 $ 20,966 During the three months ended March 31, 2019 , there were no transfers of assets or liabilities between Level 1, Level 2 or Level 3 fair value measurements. Financial Instruments Subject to Non-Recurring Fair Value Measurements Certain assets, including goodwill and identifiable intangible assets, are carried on the balance sheets at cost and, subsequent to initial recognition, are measured at fair value on a non-recurring basis when certain identified events or changes in circumstances that may have a significant adverse effect on the carrying values of these assets occur. These assets are classified as Level 3 fair value measurements within the fair value hierarchy. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate a triggering event has occurred. Intangible assets are tested for impairment upon the occurrence of certain triggering events. As of March 31, 2019 and December 31, 2018 , assets subject to non-recurring fair value measurements totaled $5.44 billion and $5.47 billion , respectively. Fair Value Disclosures for Financial Instruments Not Carried at Fair Value The estimated fair value of the outstanding term loans and Senior Unsecured Notes is determined based on the price that the Company would have to pay to settle the liabilities. As these liabilities are not actively traded, they are classified as Level 2 fair value measurements. The estimated fair values of the Company’s outstanding term loans and Senior Unsecured Notes were as follows (in thousands): March 31, 2019 December 31, 2018 Carrying Value (a) Estimated Fair Value Carrying Value (a) Estimated Fair Value Term Loan A due March 2024 $ 1,146,253 $ 1,150,000 $ 973,218 $ 975,000 Term Loan B due August 2024 1,016,371 1,017,364 1,219,755 1,221,000 7.5% Senior Unsecured Notes due 2024 437,045 426,173 438,330 423,150 (a) The carrying value of the term loan debt is shown net of original issue debt discounts. The carrying value of the Senior Notes is inclusive of unamortized premiums. |
Restructuring and Other Costs
Restructuring and Other Costs | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Costs | Restructuring and Other Costs Merger-Related Restructuring In connection with the Merger, the Company established a restructuring plan to eliminate redundant positions and reduce its facility footprint worldwide. The Company expects to continue the ongoing evaluations of its workforce and facilities infrastructure needs through 2020 in an effort to optimize its resources. During the three months ended March 31, 2019 , the Company recognized approximately: (i) $6.3 million of employee severance and benefits related costs; and (ii) $2.0 million of facility closure and lease termination costs. Over the next several years, the Company expects to incur significant costs related to the restructuring of its operations in order to achieve targeted synergies as a result of the Merger. However, the timing and the amount of these costs depend on various factors, including, but not limited to, identifying and realizing synergy opportunities and executing the integration of the Company’s operations. Non-Merger Restructuring and Other Costs During the three months ended March 31, 2019 , the Company incurred $0.2 million of facility closure and lease termination costs related to the Company’s pre-Merger activities aimed at optimizing its resources worldwide. Additionally, during the three months ended March 31, 2019 , the Company recognized approximately $6.0 million of employee severance and benefits related costs. Accrued Restructuring Liabilities The following table summarizes activity related to the liabilities associated with restructuring and other costs during the three months ended March 31, 2019 (in thousands): Employee Severance Costs, Including Executive Transition Costs Facility Closure and Lease Termination Costs Other Costs Total Balance at December 31, 2018 $ 7,474 $ 16,761 $ 52 $ 24,287 Adoption of ASC 842 (a) — (16,761 ) — (16,761 ) Expenses incurred (b) 12,232 — 8 12,240 Cash payments made (4,071 ) — (38 ) (4,109 ) Balance at March 31, 2019 $ 15,635 $ — $ 22 $ 15,657 (a) As a result of the adoption of ASC 842, accrued expenses related to facility closure and lease termination costs are now reflected within the current portion of operating lease obligations and operating lease long-term obligations on the unaudited condensed consolidated balance sheet as of March 31, 2019 . These facility costs will be paid over the remaining terms of exited facilities, which range from 2019 through 2027. (b) The amount of expenses incurred for the three months ended March 31, 2019 excludes $2.2 million of facility lease closure and lease termination costs. Under ASC 842, these costs are reflected as a reduction of operating lease right-of-use assets on the unaudited condensed consolidated balance sheet. The Company expects that substantially all of the employee severance costs accrued as of March 31, 2019 will be paid within the next twelve months. Liabilities associated with these costs are included in accrued expenses on the accompanying unaudited condensed consolidated balance sheets. Restructuring and other costs included in net loss for the three months ended March 31, 2019 are presented in the restructuring and other costs in the unaudited condensed consolidated statements of operations. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity 2018 Stock Repurchase Program On February 26, 2018, the Company’s Board of Directors authorized the repurchase of up to an aggregate of $250.0 million of the Company’s common stock, to be executed from time to time in open market transactions effected through a broker at prevailing market prices, in block trades or through privately negotiated transactions (“2018 stock repurchase program”). The 2018 stock repurchase program commenced on March 1, 2018 and will end no later than December 31, 2019. The Company intends to use cash on hand and future operating cash flow to fund the stock repurchase program. The 2018 stock repurchase program does not obligate the Company to repurchase any particular amount of the Company’s common stock and may be modified, extended, suspended, or discontinued at any time. The timing and amount of repurchases will be determined by the Company’s management based on a variety of factors such as the market price of the Company’s common stock, the Company’s corporate requirements for cash, and overall market conditions. The stock repurchase program will be subject to applicable legal requirements, including federal and state securities laws and the applicable Nasdaq rules. The Company may also repurchase shares of its common stock pursuant to a trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, which would permit shares of the Company’s common stock to be repurchased when the Company might otherwise be precluded from doing so by law. In March 2018, the Company repurchased 948,100 shares of its common stock in open market transactions at an average price of $39.55 per share, resulting in a total purchase price of approximately $37.5 million . The Company immediately retired all of the repurchased common stock and charged the par value of the shares to common stock. The excess of the repurchase price over par was applied on a pro rata basis against additional paid-in-capital, with the remainder applied to accumulated deficit. In January 2019, the Company repurchased 552,100 shares of its common stock in open market transactions at an average price of $39.16 per share, resulting in a total purchase price of approximately $21.6 million . In February 2019, the Company repurchased 120,600 shares of its common stock in open market transactions at an average price of $41.40 per share, resulting in a total purchase price of approximately $5.0 million . The Company immediately retired all of the repurchased common stock and charged the par value of the shares to common stock. The excess of the repurchase price over the par value was applied on a pro rata basis against additional paid-in-capital, with the remainder applied to accumulated deficit. As of March 31, 2019 , the Company has remaining authorization to repurchase up to approximately $148.4 million of shares of its common stock under the 2018 stock repurchase program. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation 2019 Performance-Based RSU Awards During 2019, the Compensation Committee of the Company’s Board of Directors granted performance-based RSU awards (“PRSUs”) to certain executive officers. The total target number of PRSUs granted was 159,490 , which will vest in a percentage ranging from 0% to 150% depending on the level of achievement of the performance targets. Each award is scheduled to cliff-vest approximately three years from the grant date and is conditioned upon: (i) the attainment of performance targets related to the Company’s adjusted earnings per share (“adjusted EPS”) for each of the fiscal years 2019, 2020, and 2021; (ii) the three -year return on invested capital (“ROIC”) (tax-adjusted earnings before interest and taxes divided by average invested capital); and (iii) the continued employment and service of the employee from the grant date through the date when determination of the target attainment level for the last performance period is made. The vesting eligibility of the PRSUs granted will be split evenly between the adjusted EPS performance goals, which have three equal tranches, and the ROIC performance goal. The Company recognizes share-based compensation expense for PRSUs when attainment of each performance target becomes probable. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The following table provides a reconciliation of the numerators and denominators of the basic and diluted earnings (loss) per share computations (in thousands, except per share data): Three Months Ended March 31, 2019 2018 Numerator: Net loss $ (30,004 ) $ (24,552 ) Denominator: Basic weighted average common shares outstanding 103,365 104,449 Effect of dilutive securities: Stock options and other awards under deferred share-based compensation programs — — Diluted weighted average common shares outstanding 103,365 104,449 Loss per share: Basic $ (0.29 ) $ (0.24 ) Diluted $ (0.29 ) $ (0.24 ) Potential common shares outstanding that are considered anti-dilutive are excluded from the computation of diluted earnings (loss) per share. Potential common shares related to stock options and other awards under deferred share-based compensation programs may be determined to be anti-dilutive based on the application of the treasury stock method. Potential common shares are also considered anti-dilutive in the event of a net loss. The number of potential shares outstanding that were considered anti-dilutive using the treasury stock method and therefore excluded from the computation of diluted earnings (loss) per share, weighted for the portion of the period they were outstanding are as follows (in thousands): Three Months Ended March 31, 2019 2018 Anti-dilutive stock options and other awards 294 1,097 Anti-dilutive stock options and other awards under share-based compensation programs excluded based on reporting a net loss for the period 1,438 898 Total common stock equivalents excluded from diluted loss per share 1,732 1,995 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Expense For the three months ended March 31, 2019 , the Company recorded income tax expense of $10.4 million , compared to pre-tax loss of $19.6 million . The effective tax rate for the three months ended March 31, 2019 varied from the U.S. federal statutory income tax rate of 21.0% primarily due to: (i) base erosion anti-abuse minimum tax, (ii) foreign income inclusions such as the Global Intangible Low-Taxed Income provisions (“GILTI”), and (iii) a valuation allowance change on domestic deferred tax assets. For the three months ended March 31, 2018 , the Company recorded an income tax benefit of $9.0 million , compared to pre-tax loss of $33.5 million . The Company’s effective tax rate for the three months ended March 31, 2018 varied from the U.S. federal statutory income tax rate of 21.0% primarily due to: (i) research tax credits in foreign jurisdictions; (ii) a decrease in unrecognized tax benefits; and (iii) a valuation allowance change on domestic deferred tax assets. BEAT The Tax Cuts and Jobs Act of 2017 introduced a new tax on U.S. corporations that derive tax benefits from deductible payments to non-US affiliates called the base erosion and anti-abuse tax (“BEAT”). BEAT applies when base eroding payments are in excess of three percent of the Company’s total deductible payments and also where BEAT exceeds regular US taxable income, similar to an alternate minimum tax. Changes to the Company’s contractual arrangements, operating structure, and/or final regulations that modify the application of this provision could have a material impact on the Company’s tax provision. Unrecognized Tax Benefits The Company's gross unrecognized tax benefits, exclusive of associated interest and penalties, were $19.6 million and $19.2 million as of March 31, 2019 and December 31, 2018 , respectively. The increase of $0.4 million was primarily due to an unrecognized tax benefit in a foreign jurisdiction. Tax Returns Under Audit During the quarter ended March 31, 2019, the Company was notified by the Internal Revenue Service that the legacy inVentiv tax return was under audit for the tax year beginning November 10, 2016 and ending December 31, 2016. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customers | Revenue from Contracts with Customers Unsatisfied Performance Obligations As of March 31, 2019 , the total aggregate transaction price allocated to the unsatisfied performance obligations under contracts with contract terms greater than one year and which are not accounted for as a series pursuant to ASU No. 2014-09, Revenue from Contracts with Customers (“ASC 606”) was $5.94 billion . This amount includes revenue associated with reimbursable out-of-pocket expenses. The Company expects to recognize revenue over the remaining contract term of the individual projects, with contract terms generally ranging from one to five years. The amount of unsatisfied performance obligations is presented net of any constraints and as a result, is lower than the potential contractual revenue. Specifically, contracts that do not commence within a certain period of time require the Company to undertake numerous activities to fulfill these performance obligations, including various activities that are outside of the Company’s control. Accordingly, such contracts have been excluded from the unsatisfied performance obligations balance presented above. Timing of Billing and Performance During the three months ended March 31, 2019 , the Company recognized approximately $364.7 million of revenue that was included in the deferred revenue balance at the beginning of the period. During the three months ended March 31, 2019 , approximately $13.2 million of the Company’s revenue recognized was allocated to performance obligations partially satisfied in previous periods and predominately related to changes in scope and estimates in full service clinical studies. Changes in the contract assets and deferred revenue balances during the three months ended March 31, 2019 were not materially impacted by any other factors. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has two reportable segments: Clinical Solutions and Commercial Solutions. Each reportable business segment comprises multiple similar service offerings that, when combined, create a fully integrated biopharmaceutical outsourcing solutions organization . Clinical Solutions offers a variety of services spanning Phase I to Phase IV of clinical development , including full-service global studies, as well as individual service offerings such as clinical monitoring, investigator recruitment, patient recruitment, data management, and study startup to assist customers with their drug development process. Commercial Solutions provides commercialization services to the pharmaceutical, biotechnology, and healthcare industries, which include selling solutions, communication solutions (public relations and advertising), and consulting related services. The Company’s Chief Operating Decision Maker (“CODM”) reviews segment performance and allocates resources based upon segment revenue and income from operations. Inter-segment revenue is eliminated from the segment reporting presented to the CODM and is not included in the segment revenue presented in the table below. Certain costs are not allocated to the Company’s reportable segments and are reported as general corporate expenses. These costs primarily consist of share-based compensation and general operating expenses associated with the Company’s senior leadership, finance, Board of Directors, investor relations, and internal audit functions. The Company does not allocate depreciation, amortization, restructuring, or transaction and integration-related costs to its segments. Additionally, the CODM reviews the Company’s assets on a consolidated basis and the Company does not allocate assets to its reportable segments as they are not included in the review performed by the CODM for purposes of assessing segment performance or allocating resources. Information about reportable segment operating results is as follows (in thousands): Three Months Ended March 31, 2019 2018 Revenue: Clinical Solutions revenue $ 804,958 $ 786,839 Commercial Solutions revenue 314,048 270,357 Total consolidated revenue 1,119,006 1,057,196 Segment direct costs: Clinical Solutions 625,767 615,371 Commercial Solutions 252,873 221,700 Total segment direct costs 878,640 837,071 Segment selling, general, and administrative expenses: Clinical Solutions 69,702 65,946 Commercial Solutions 26,053 19,518 Total segment selling, general, and administrative expenses 95,755 85,464 Segment operating income: Clinical Solutions 109,489 105,522 Commercial Solutions 35,122 29,139 Total segment operating income 144,611 134,661 Direct costs and operating expenses not allocated to segments: Corporate selling, general, and administrative expenses 11,257 9,759 Share-based compensation included in direct costs 8,162 3,752 Share-based compensation included in selling, general, and administrative expenses 6,105 4,036 Restructuring and other costs 14,413 13,707 Transaction and integration-related expenses 16,658 25,211 Depreciation and amortization 61,200 68,021 Total consolidated income from operations $ 26,816 $ 10,175 |
Operations by Geographic Locati
Operations by Geographic Location | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Operations by Geographic Location | Operations by Geographic Location The following table summarizes information about revenue by geographic area (in thousands and with all intercompany transactions eliminated): Three Months Ended March 31, 2019 2018 Revenue: North America (a) $ 727,698 $ 731,766 Europe, Middle East, and Africa 258,347 228,837 Asia-Pacific 111,566 77,980 Latin America 21,395 18,613 Total revenue $ 1,119,006 $ 1,057,196 (a) Revenue for the North America region includes revenue attributable to the United States of $704.1 million and $696.4 million , or 62.9% and 65.9% of total revenue, for the three months ended March 31, 2019 and March 31, 2018 , respectively. No other country represented more than 10% of revenue for any period. Long-lived assets by geographic area for each period were as follows (in thousands and all intercompany transactions have been eliminated): March 31, 2019 December 31, 2018 Property and equipment, net: North America (a) $ 128,432 $ 133,593 Europe, Middle East and Africa 31,497 33,053 Asia-Pacific 12,701 13,328 Latin America 3,360 3,512 Total property and equipment, net $ 175,990 $ 183,486 (a) Long-lived assets for the North America region include property and equipment, net attributable to the United States of $123.0 million and $128.3 million as of March 31, 2019 and December 31, 2018 , respectively. |
Concentration of Credit Risk
Concentration of Credit Risk | 3 Months Ended |
Mar. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Concentration of Credit Risk The Company maintains cash depository accounts with several financial institutions worldwide and is exposed to credit risk related to the potential inability to access liquidity in financial institutions where its cash and cash equivalents are concentrated. The Company has not historically incurred any losses with respect to these balances and believes that they bear minimal credit risk. As of December 31, 2018 , the amount of cash and cash equivalents held outside the United States by the Company’s foreign subsidiaries was $43.6 million , or approximately 28% of the total consolidated cash and cash equivalents balance. As of March 31, 2019 , substantially all of the Company’s cash and cash equivalents were held within the United States. During the three months ended March 31, 2019 , one customer accounted for approximately 10% of the Company’s revenue. During the three months ended March 31, 2018 , one customer accounted for 11% of the Company’s revenue. As of March 31, 2019 and December 31, 2018 , one customer accounted for approximately 12% and 13% , respectively, of the Company’s billed accounts receivable, unbilled accounts receivable, and contract assets balances. |
Related-Party Transactions
Related-Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions For the three months ended March 31, 2019 , the Company incurred reimbursable out-of-pocket expenses of $1.1 million for professional services obtained from a provider whose member of the Board of Directors was also a member of the Company’s Board of Directors. Additionally, at March 31, 2019 , the Company had liabilities of $0.8 million included in accounts payable and accrued expenses on the unaudited condensed consolidated balance sheets associated with this related party. For the three months ended March 31, 2018 , the Company incurred reimbursable out-of-pocket expenses of $0.2 million for professional services obtained from a provider whose significant shareholder was also a significant shareholder of the Company. No material related-party revenue was recorded for the three months ended March 31, 2019 or 2018 . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings The Company is involved in various claims and legal actions arising in the ordinary course of business. The Company accrues a liability when a loss is considered probable and the amount can be reasonably estimated. When a material loss contingency is reasonably possible but not probable, the Company does not record a liability, but instead discloses the nature and the amount of the claim, and an estimate of the loss or range of loss, if such an estimate can be made. Legal fees are expensed as incurred. In the opinion of management, the outcome of any existing claims and legal or regulatory proceedings, other than the specific matters described below, if decided adversely, is not expected to have a material adverse effect on the Company's business, financial condition, results of operations, or cash flows. On December 1, 2017, the first of two virtually identical actions alleging federal securities law claims was filed against the Company and certain of its officers on behalf of a putative class of its shareholders. The first action, captioned Bermudez v. INC Research, Inc., et al, No. 17-09457 (S.D.N.Y.), names as defendants the Company, Michael Bell, Alistair MacDonald, Michael Gilbertini, and Gregory S. Rush (the "Bermudez action"), and the second action, Vaitkuvienë v. Syneos Health, Inc., et al, No. 18-0029 (E.D.N.C.), filed on January 25, 2018, names as defendants the Company, Alistair MacDonald, and Gregory S. Rush (the "Vaitkuvienë action"). Both complaints allege similar claims under Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934 on behalf of a putative class of purchasers of the Company's common stock between May 10, 2017 and November 8, 2017 and November 9, 2017. The complaints allege that the Company published inaccurate or incomplete information regarding, among other things, the financial performance and business outlook for inVentiv’s business prior to the Merger and with respect to the combined company following the Merger. On January 30, 2018, two alleged shareholders separately filed motions seeking to be appointed lead plaintiff and approving the selection of lead counsel. These motions remain pending. On March 30, 2018, Plaintiff Bermudez filed a notice of voluntary dismissal of the Bermudez action, without prejudice, and as to all defendants. On May 29, 2018, the Court in the Vaitkuvienë action appointed the San Antonio Fire & Police Pension Fund and El Paso Firemen & Policemen’s Pension Fund as Lead Plaintiffs and, on June 7, 2018, the Court entered a schedule providing for, among other things, Lead Plaintiffs to file an amended complaint by July 23, 2018 (later extended to July 30, 2018). Lead Plaintiffs filed their amended complaint on July 30, 2018, which also includes a claim against the same defendants listed above, as well as each member of the board of directors at the time of the INC Research - inVentiv Health merger vote in July 2017, contending that the inVentiv merger proxy was misleading under Section 14(a) of the Act. Lead Plaintiffs seek, among other things, orders (i) declaring that the lawsuit is a proper class action and (ii) awarding compensatory damages in an amount to be proven at trial, including interest thereon, and reasonable costs and expenses incurred in this action, including attorneys’ fees and expert fees, to Lead Plaintiffs and other class members. Defendants filed a Motion to Dismiss Plaintiffs’ Amended Complaint on September 20, 2018. Lead Plaintiffs filed a Response in Opposition to such motion on November 21, 2018, and Defendants filed a Reply to such response on December 5, 2018. The Company and the other defendants deny the allegations in these complaints and intend to defend vigorously against these claims. In the Company's opinion, the ultimate outcome of this matter is not expected to have a material adverse effect on the Company's financial position, results of operations, or cash flows. On September 24, 2018, the Court unsealed a civil complaint captioned United States, et. al vs. AstraZeneca PLC, et. al, No. 2:17-cv-01328-RSL (W.D. Wa.) against inVentiv Health, Inc. and other co-defendants. The complaint alleges that the Company and co-defendants violated the Federal False Claims Act (and various state analogues) and Anti-Kickback Statute through the provision of clinical education services. On December 17, 2018, the United States moved to dismiss this lawsuit, as well as other similar lawsuits supported by the relator in this action. The Company denies the allegations in the complaint intends to defend vigorously against these claims. In the Company’s opinion, the ultimate outcome of this matter is not expected to have a material adverse effect on the Company’s financial position, results of operations, or cash flows. On February 21, 2019, the SEC notified the Company that it has commenced an investigation into its revenue accounting policies, internal controls and related matters, and requested that the Company retain certain documents for the periods beginning with January 1, 2017. On March 22, 2019, the SEC subpoenaed certain documents in connection with its investigation. On March 1, 2019, a complaint was filed in the United States District Court for the District of New Jersey on behalf of a putative class of shareholders who purchased the Company's common stock during the period between May 10, 2017 and February 27, 2019. The complaint names the Company and certain of its executive officers as defendants and allege violations of the Securities Exchange Act of 1934, as amended, based on allegedly false or misleading statements about its business, operations, and prospects. The plaintiffs seek awards of compensatory damages, among other relief, and their costs and attorneys’ and experts’ fees. The Company is presently unable to predict the duration, scope or result of the SEC’s investigation, the related putative class action, or any other related lawsuit or investigation. As such, the Company is presently unable to develop a reasonable estimate of a possible loss or range of losses, if any, related to these matters. The SEC has a broad range of civil sanctions available should it commence an enforcement action, including injunctive relief, disgorgement, fines, penalties, or an order to take remedial action. The Company could incur additional expenses related to fines or to remedial measures. Furthermore, while the Company intends to defend the putative class action litigation vigorously, the outcome of such litigation or any other litigation is necessarily uncertain. The Company could be forced to expend significant resources in the defense of this lawsuit or future ones, and it may not prevail. As such, these matters could have a material adverse effect on the Company's business, annual or interim results of operations, cash flows, or its financial condition. Self-Insurance Reserves The Company is self-insured for certain losses relating to health insurance claims for the majority of its employees located within the United States. Additionally, the Company maintains certain self-insurance retention limits related to automobile and workers’ compensation insurance. Assumed Contingent Tax-Sharing Obligations As a result of the Merger, the Company assumed contingent tax-sharing obligations arising from inVentiv’s 2016 merger with Double Eagle Parent, Inc. As of March 31, 2019 and December 31, 2018 , the estimated fair value of the assumed contingent tax-sharing obligations was $16.4 million and $15.7 million , respectively. Contingent Earn-out Liability In connection with the Kinapse acquisition, the Company recorded a contingent earn out liability to be paid based on Kinapse meeting revenue targets as of March 31, 2021. The fair value of the earn out liability is remeasured at the end of each reporting period, with changes in the estimated fair value reflected in earnings until the liability is settled. The estimated fair value of the contingent earn out liability was $4.5 million and $4.4 million as of March 31, 2019 and December 31, 2018 , respectively, and is included in other long-term liabilities in the accompanying unaudited condensed consolidated balance sheets. |
Basis of Presentation and Cha_2
Basis of Presentation and Changes in Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The Company prepared the accompanying unaudited condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. The significant accounting policies followed by the Company for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. The unaudited condensed consolidated financial statements, in management’s opinion, include all adjustments of a normal recurring nature necessary for a fair presentation. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , filed with the Securities and Exchange Commission on March 18, 2019 . The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the full year ending December 31, 2019 or any other future period. The unaudited condensed consolidated balance sheet at December 31, 2018 is derived from the amounts in the audited consolidated balance sheet included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Leases . In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-02 (“ASU 2016-02”), Leases (Topic 842) , as further amended, to increase transparency and comparability among organizations by requiring the recognition of, at the lease commencement date, a lease liability for the obligation to make lease payments, and a right-of-use ("ROU") asset for the right to use the underlying asset, on the balance sheet. The Company adopted ASU 2016-02, and all related amendments, collectively “ASC 842”, as of January 1, 2019, using the modified retrospective approach. Results for reporting periods beginning on January 1, 2019 are presented under ASC 842, while prior period amounts continue to be reported and disclosed in accordance with the Company’s historical accounting treatment under Accounting Standards Codification 840 , Leases (“ASC 840”). In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, does not require the Company to reassess if a contract is or contains a lease and allows the Company to carry forward the historical lease classifications and historical initial direct costs. The Company made an accounting policy election under ASC 842 not to recognize ROU assets and lease liabilities for leases with a term of 12 months or less. Lease payments for these leases are recognized as lease costs on a straight-line basis over the lease term. The Company also elected to account for lease components and the associated non-lease components in the contracts as a single lease component for all classes of underlying assets. Adoption of the new standard resulted in the recording of additional net lease assets and lease liabilities, mainly related to operating leases, of approximately $214.0 million , as of January 1, 2019. The Company’s accounting for finance leases (previously classified as capital leases under ASC 840) remained substantially unchanged. |
Revenue from Contracts with Customers | The Company expects to recognize revenue over the remaining contract term of the individual projects, with contract terms generally ranging from one to five years. The amount of unsatisfied performance obligations is presented net of any constraints and as a result, is lower than the potential contractual revenue. Specifically, contracts that do not commence within a certain period of time require the Company to undertake numerous activities to fulfill these performance obligations, including various activities that are outside of the Company’s control. |
Leases | The Company’s operating leases are primarily related to its office facilities. The Company’s finance leases are related to vehicles that the Company leases for certain sales representatives in its Commercial Solutions segment. These leases have remaining lease terms of less than 1 year to 13 years, some of which include options to extend the term or terminate the lease. These options to extend or terminate a lease are included in the lease terms when it is reasonably certain that the Company will exercise that option. ROU assets and lease liabilities are recognized based on the present value of the fixed lease payments over the lease term at the commencement date. The ROU assets also include any initial direct costs incurred and lease payments made at or before the commencement date, and are reduced by lease incentives. The Company uses its incremental borrowing rate as the discount rate to determine the present value of the lease payments for leases that do not have a readily determinable implicit discount rate. The Company’s incremental borrowing rate is the rate of interest that it would have to borrow on a collateralized basis over a similar term and amount in a similar economic environment. The Company determines the incremental borrowing rates for its leases by adjusting the local risk free interest rate with a credit risk premium corresponding to the Company’s credit rating. The Company records rent expense for its operating leases on a straight-line basis from the lease commencement date until the end of the lease term. The Company records finance lease cost as a combination of the amortization expense for the ROU assets and interest expense for the outstanding lease liabilities using the discount rate discussed above. Variable lease payments for operating leases are related to the office facilities and include but are not limited to common area maintenance, parking, electricity and management fees. The variable lease payments for finance leases are related to maintenance programs for leased vehicles. Variable lease payments are based on occurrence or based on usage; therefore, they are not included as part of the initial ROU assets and liabilities’ calculation. |
Financial Statement Details (Ta
Financial Statement Details (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Billed Accounts Receivable, Net | Accounts receivable and unbilled services, net of allowance for doubtful accounts, consisted of the following (in thousands): March 31, 2019 December 31, 2018 Accounts receivable billed $ 729,727 $ 733,142 Less allowance for doubtful accounts (5,882 ) (4,587 ) Accounts receivable billed, net 723,845 728,555 Accounts receivable unbilled 392,810 422,860 Contract assets 105,005 105,316 Accounts receivable billed and unbilled services, net $ 1,221,660 $ 1,256,731 |
Schedule of Goodwill | The changes in the carrying amount of goodwill by segment for the three months ended March 31, 2019 were as follows (in thousands): Total Clinical Commercial Balance at December 31, 2018: Gross carrying amount $ 4,349,325 $ 2,780,945 $ 1,568,380 Accumulated impairment losses (a) (16,166 ) (8,142 ) (8,024 ) Goodwill, net of accumulated impairment losses 4,333,159 2,772,803 1,560,356 2019 Activity: Impact of foreign currency translation 11,585 8,616 2,969 Balance at March 31, 2019: Gross carrying amount 4,360,910 2,789,561 1,571,349 Accumulated impairment losses (a) (16,166 ) (8,142 ) (8,024 ) Goodwill, net of accumulated impairment losses $ 4,344,744 $ 2,781,419 $ 1,563,325 (a) Accumulated impairment losses associated with the Clinical Solutions segment were recorded prior to 2019 and related to the former Phase I Services segment, now a component of the Clinical Solutions segment. Accumulated impairment losses associated with the Commercial Solutions segment were recorded prior to 2019 and related to the former Global Consulting segment, now a component of the Commercial Solutions segment. No impairment of goodwill was recorded for the three months ended March 31, 2019 . |
Transaction and Integration-Related Expenses | Transaction and integration-related expenses consisted of the following (in thousands): Three Months Ended March 31, 2019 2018 Professional fees $ 12,846 $ 14,700 Debt modification and related expenses 2,241 — Integration and personnel retention-related costs 847 9,293 Fair value adjustments to contingent obligations 724 1,194 Other — 24 Total transaction and integration-related expenses $ 16,658 $ 25,211 |
Schedule of Accumulated Other Comprehensive Income (Loss), Net of Taxes | Accumulated other comprehensive loss, net of tax, consisted of the following (in thousands): March 31, 2019 December 31, 2018 Foreign currency translation adjustments $ (60,351 ) $ (80,955 ) Unrealized gain (loss) on derivative instruments (11,456 ) (7,240 ) Accumulated other comprehensive loss $ (71,807 ) $ (88,195 ) Changes in accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2019 were as follows (in thousands): Unrealized gain (loss) on derivative instruments Foreign currency translation adjustments Total Balance at December 31, 2018 $ (7,240 ) $ (80,955 ) $ (88,195 ) Other comprehensive gain (loss) before reclassifications (3,729 ) 20,604 16,875 Amount of gain reclassified from accumulated other comprehensive loss into the statement of operations (487 ) — (487 ) Net current period other comprehensive gain (loss), net of tax (4,216 ) 20,604 16,388 Balance at March 31, 2019 $ (11,456 ) $ (60,351 ) $ (71,807 ) |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | The tax effects allocated to each component of other comprehensive income (loss) for the three months ended March 31, 2019 were as follows (in thousands): Before-Tax Amount Tax Benefit Net-of-Tax Amount Foreign currency translation adjustments $ 20,604 $ — $ 20,604 Unrealized loss on derivative instruments: Unrealized loss arising during period (3,805 ) 76 (3,729 ) Reclassification adjustment of realized gains to net income (loss) (506 ) 19 (487 ) Net unrealized loss on derivative instruments (4,311 ) 95 (4,216 ) Other comprehensive income (loss) $ 16,293 $ 95 $ 16,388 The tax effects allocated to each component of other comprehensive income (loss) for the three months ended March 31, 2018 were as follows (in thousands): Before-Tax Amount Tax Benefit Net-of-Tax Amount Foreign currency translation adjustments $ 36,791 $ (2,868 ) $ 33,923 Unrealized gain on derivative instruments: Unrealized gain arising during the period 711 — 711 Reclassification adjustment of realized gains to net loss (277 ) — (277 ) Net unrealized gain on derivative instruments 434 — 434 Other comprehensive income (loss) $ 37,225 $ (2,868 ) $ 34,357 |
Schedule of Other Income (Expense), Net | Other expense, net consisted of the following (in thousands): Three Months Ended March 31, 2019 2018 Net realized foreign currency gain (loss) $ (8,406 ) $ (5,517 ) Net unrealized foreign currency gain (loss) 77 (6,364 ) Other, net (592 ) (673 ) Total other expense, net $ (8,921 ) $ (12,554 ) |
Long-Term Debt Obligations (Tab
Long-Term Debt Obligations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | The Company’s debt obligations consisted of the following (in thousands): March 31, 2019 December 31, 2018 Secured Debt Term Loan A due March 2024 $ 1,150,000 $ 975,000 Term Loan B due August 2024 1,017,364 1,221,000 Accounts receivable financing agreement due June 2020 195,900 169,400 Total secured debt 2,363,264 2,365,400 Unsecured Debt 7.5% Senior Unsecured Notes due 2024 403,000 403,000 Total debt obligations 2,766,264 2,768,400 Add: unamortized Senior Notes premium, net of term loan original issuance discount 29,305 32,303 Less: unamortized deferred issuance costs (9,911 ) (13,584 ) Less: current portion of debt — (50,100 ) Total debt obligations, non-current portion $ 2,785,658 $ 2,737,019 |
Contractual Maturities of Debt Obligations | As of March 31, 2019 , the contractual maturities of the Company’s debt obligations were as follows (in thousands): Principal Interest 2019 $ — $ 100,123 2020 239,024 128,807 2021 79,063 122,189 2022 107,813 118,252 2023 115,000 112,726 2024 and thereafter 2,225,364 57,441 Less: deferred issuance costs (9,911 ) Unamortized Senior Notes premium, net of term loan original issuance discount 29,305 Total $ 2,785,658 $ 639,538 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Cost and Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ (16,238 ) Operating cash flows for finance leases (394 ) Financing cash flows for finance leases (1,274 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 39,002 Finance leases 1,171 Weighted average remaining lease term March 31, 2019 Operating leases 8 years Finance leases 3 years Weighted average discount rate March 31, 2019 Operating leases 4.9 % Finance leases 3.2 % The components of lease cost were as follows (in thousands): Three Months Ended Classification March 31, 2019 Operating leases: Fixed lease costs Selling, general, and administrative expenses $ 17,140 Short-term lease costs Selling, general, and administrative expenses 379 Variable lease costs Selling, general, and administrative expenses 7,790 Total operating lease costs $ 25,309 Finance leases: Amortization of right-of-use assets Depreciation $ 4,319 Interest on lease liabilities Interest expense 394 Variable lease costs Selling, general, and administrative expenses 1,827 Total finance lease costs $ 6,540 |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to finance leases was as follows (in thousands): Finance leases: March 31, 2019 Property and equipment, gross $ 53,545 Accumulated depreciation (19,932 ) Property and equipment, net $ 33,613 Current portion of finance lease obligations $ 11,808 Finance lease long-term obligations 27,144 Total finance lease liabilities $ 38,952 |
Maturities of Lease Liabilities | As of March 31, 2019 , maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Total 2019 (remaining 9 months) $ 27,533 $ 12,853 $ 40,386 2020 50,350 13,447 63,797 2021 44,824 9,922 54,746 2022 39,255 5,476 44,731 2023 35,678 37 35,715 2024 and thereafter 131,452 — 131,452 Total lease payments 329,092 41,735 $ 370,827 Less: management fee (559 ) Less: imputed interest (63,395 ) (2,224 ) Total lease liabilities $ 265,697 $ 38,952 |
Maturities of Lease Liabilities | As of March 31, 2019 , maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Total 2019 (remaining 9 months) $ 27,533 $ 12,853 $ 40,386 2020 50,350 13,447 63,797 2021 44,824 9,922 54,746 2022 39,255 5,476 44,731 2023 35,678 37 35,715 2024 and thereafter 131,452 — 131,452 Total lease payments 329,092 41,735 $ 370,827 Less: management fee (559 ) Less: imputed interest (63,395 ) (2,224 ) Total lease liabilities $ 265,697 $ 38,952 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest Rate Swaps Designated as Hedging Instruments on the Consolidated Balance Sheets | The fair values of the Company’s derivative financial instruments and the line items on the accompanying unaudited condensed consolidated balance sheets to which they were recorded are as follows (in thousands): Balance Sheet Classification March 31, 2019 December 31, 2018 Interest rate swaps - current Prepaid expenses and other current assets $ 1,132 $ 1,355 Interest rate swaps - non-current Other long-term assets 111 441 Foreign currency exchange rate swaps - current Accrued expenses — (138 ) Interest rate swaps - current Accrued expenses (4,328 ) (3,031 ) Interest rate swaps - non-current Other long-term liabilities (8,832 ) (6,201 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | As of March 31, 2019 , the fair values of the major classes of the Company’s assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): Level 1 Level 2 Level 3 Total Assets: Trading securities (a) $ 20,674 $ — $ — $ 20,674 Derivative instruments (b) — 1,243 — 1,243 Total assets $ 20,674 $ 1,243 $ — $ 21,917 Liabilities: Derivative instruments (b) $ — $ 13,160 $ — $ 13,160 Contingent obligations related to business combinations (c) — — 20,966 20,966 Total liabilities $ — $ 13,160 $ 20,966 $ 34,126 As of December 31, 2018 , the fair values of the major classes of the Company’s assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): Level 1 Level 2 Level 3 Total Assets: Trading securities (a) $ 14,945 $ — $ — $ 14,945 Derivative instruments (b) — 1,796 — 1,796 Total assets $ 14,945 $ 1,796 $ — $ 16,741 Liabilities: Derivative instruments (b) $ — $ 9,370 $ — $ 9,370 Contingent consideration obligations related to business combinations (c) — — 20,127 20,127 Total liabilities $ — $ 9,370 $ 20,127 $ 29,497 (a) Represents fair value of investments in mutual funds based on quoted market prices which are used to fund the liability associated with the deferred compensation plan. (b) Represents fair value of interest rate swap and foreign currency exchange rate forward contract arrangements (see "Note 6 - Derivatives" for further information). (c) Represents fair value of contingent obligations related to business combinations (see "Note 3 - Business Combinations" for further information). The fair value of these liabilities are determined based on the Company’s best estimate of the probable timing and amount of settlement. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents changes in the carrying amount of obligations classified as Level 3 category within the fair value hierarchy for the three months ended March 31, 2019 (in thousands): Balance at December 31, 2018 $ 20,127 Additions — Accretion recognized in earnings 839 Balance at March 31, 2019 $ 20,966 |
Schedule of Estimated Fair Value of Financial Instruments Not Recorded at Fair Value | The estimated fair values of the Company’s outstanding term loans and Senior Unsecured Notes were as follows (in thousands): March 31, 2019 December 31, 2018 Carrying Value (a) Estimated Fair Value Carrying Value (a) Estimated Fair Value Term Loan A due March 2024 $ 1,146,253 $ 1,150,000 $ 973,218 $ 975,000 Term Loan B due August 2024 1,016,371 1,017,364 1,219,755 1,221,000 7.5% Senior Unsecured Notes due 2024 437,045 426,173 438,330 423,150 (a) The carrying value of the term loan debt is shown net of original issue debt discounts. The carrying value of the Senior Notes is inclusive of unamortized premiums. |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The following table summarizes activity related to the liabilities associated with restructuring and other costs during the three months ended March 31, 2019 (in thousands): Employee Severance Costs, Including Executive Transition Costs Facility Closure and Lease Termination Costs Other Costs Total Balance at December 31, 2018 $ 7,474 $ 16,761 $ 52 $ 24,287 Adoption of ASC 842 (a) — (16,761 ) — (16,761 ) Expenses incurred (b) 12,232 — 8 12,240 Cash payments made (4,071 ) — (38 ) (4,109 ) Balance at March 31, 2019 $ 15,635 $ — $ 22 $ 15,657 (a) As a result of the adoption of ASC 842, accrued expenses related to facility closure and lease termination costs are now reflected within the current portion of operating lease obligations and operating lease long-term obligations on the unaudited condensed consolidated balance sheet as of March 31, 2019 . These facility costs will be paid over the remaining terms of exited facilities, which range from 2019 through 2027. (b) The amount of expenses incurred for the three months ended March 31, 2019 excludes $2.2 million of facility lease closure and lease termination costs. Under ASC 842, these costs are reflected as a reduction of operating lease right-of-use assets on the unaudited condensed consolidated balance sheet. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table provides a reconciliation of the numerators and denominators of the basic and diluted earnings (loss) per share computations (in thousands, except per share data): Three Months Ended March 31, 2019 2018 Numerator: Net loss $ (30,004 ) $ (24,552 ) Denominator: Basic weighted average common shares outstanding 103,365 104,449 Effect of dilutive securities: Stock options and other awards under deferred share-based compensation programs — — Diluted weighted average common shares outstanding 103,365 104,449 Loss per share: Basic $ (0.29 ) $ (0.24 ) Diluted $ (0.29 ) $ (0.24 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The number of potential shares outstanding that were considered anti-dilutive using the treasury stock method and therefore excluded from the computation of diluted earnings (loss) per share, weighted for the portion of the period they were outstanding are as follows (in thousands): Three Months Ended March 31, 2019 2018 Anti-dilutive stock options and other awards 294 1,097 Anti-dilutive stock options and other awards under share-based compensation programs excluded based on reporting a net loss for the period 1,438 898 Total common stock equivalents excluded from diluted loss per share 1,732 1,995 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Information about reportable segment operating results is as follows (in thousands): Three Months Ended March 31, 2019 2018 Revenue: Clinical Solutions revenue $ 804,958 $ 786,839 Commercial Solutions revenue 314,048 270,357 Total consolidated revenue 1,119,006 1,057,196 Segment direct costs: Clinical Solutions 625,767 615,371 Commercial Solutions 252,873 221,700 Total segment direct costs 878,640 837,071 Segment selling, general, and administrative expenses: Clinical Solutions 69,702 65,946 Commercial Solutions 26,053 19,518 Total segment selling, general, and administrative expenses 95,755 85,464 Segment operating income: Clinical Solutions 109,489 105,522 Commercial Solutions 35,122 29,139 Total segment operating income 144,611 134,661 Direct costs and operating expenses not allocated to segments: Corporate selling, general, and administrative expenses 11,257 9,759 Share-based compensation included in direct costs 8,162 3,752 Share-based compensation included in selling, general, and administrative expenses 6,105 4,036 Restructuring and other costs 14,413 13,707 Transaction and integration-related expenses 16,658 25,211 Depreciation and amortization 61,200 68,021 Total consolidated income from operations $ 26,816 $ 10,175 |
Operations by Geographic Loca_2
Operations by Geographic Location (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Total Revenue by Geographic Area | The following table summarizes information about revenue by geographic area (in thousands and with all intercompany transactions eliminated): Three Months Ended March 31, 2019 2018 Revenue: North America (a) $ 727,698 $ 731,766 Europe, Middle East, and Africa 258,347 228,837 Asia-Pacific 111,566 77,980 Latin America 21,395 18,613 Total revenue $ 1,119,006 $ 1,057,196 (a) Revenue for the North America region includes revenue attributable to the United States of $704.1 million and $696.4 million , or 62.9% and 65.9% of total revenue, for the three months ended March 31, 2019 and March 31, 2018 , respectively. No other country represented more than 10% of revenue for any period. |
Long-Lived Assets by Geographic Area | Long-lived assets by geographic area for each period were as follows (in thousands and all intercompany transactions have been eliminated): March 31, 2019 December 31, 2018 Property and equipment, net: North America (a) $ 128,432 $ 133,593 Europe, Middle East and Africa 31,497 33,053 Asia-Pacific 12,701 13,328 Latin America 3,360 3,512 Total property and equipment, net $ 175,990 $ 183,486 (a) Long-lived assets for the North America region include property and equipment, net attributable to the United States of $123.0 million and $128.3 million as of March 31, 2019 and December 31, 2018 , respectively. |
Basis of Presentation and Cha_3
Basis of Presentation and Changes in Significant Accounting Policies - Narrative (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)segment | Jan. 01, 2019USD ($) | |
Accounting Policies [Abstract] | ||
Number of reportable segments | segment | 2 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 239,391 | |
Total lease liabilities | $ 265,697 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 214,000 | |
Total lease liabilities | $ 214,000 |
Financial Statement Details - A
Financial Statement Details - Accounts Receivable and Unbilled Services, net (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Accounts receivable billed | $ 729,727 | $ 733,142 |
Less allowance for doubtful accounts | (5,882) | (4,587) |
Accounts receivable billed, net | 723,845 | 728,555 |
Accounts receivable unbilled | 392,810 | 422,860 |
Contract assets | 105,005 | 105,316 |
Accounts receivable billed and unbilled services, net | $ 1,221,660 | $ 1,256,731 |
Financial Statement Details - N
Financial Statement Details - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Trade receivables sold | $ 73.8 | $ 45.4 |
Proceeds from sale of trade receivables | $ 73.2 | $ 45.2 |
Financial Statement Details - S
Financial Statement Details - Schedule of Goodwill (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
Gross carrying amount, beginning balance | $ 4,349,325,000 |
Accumulated impairment losses, beginning balance | (16,166,000) |
Goodwill net of accumulated impairment losses, beginning balance | 4,333,159,000 |
Impact of foreign currency translation | 11,585,000 |
Gross carrying amount, ending balance | 4,360,910,000 |
Accumulated impairment losses, ending balance | (16,166,000) |
Goodwill net of accumulated impairment losses, ending balance | 4,344,744,000 |
Impairment of goodwill | 0 |
Clinical Solutions | |
Goodwill [Roll Forward] | |
Gross carrying amount, beginning balance | 2,780,945,000 |
Accumulated impairment losses, beginning balance | (8,142,000) |
Goodwill net of accumulated impairment losses, beginning balance | 2,772,803,000 |
Impact of foreign currency translation | 8,616,000 |
Gross carrying amount, ending balance | 2,789,561,000 |
Accumulated impairment losses, ending balance | (8,142,000) |
Goodwill net of accumulated impairment losses, ending balance | 2,781,419,000 |
Commercial Solutions | |
Goodwill [Roll Forward] | |
Gross carrying amount, beginning balance | 1,568,380,000 |
Accumulated impairment losses, beginning balance | (8,024,000) |
Goodwill net of accumulated impairment losses, beginning balance | 1,560,356,000 |
Impact of foreign currency translation | 2,969,000 |
Gross carrying amount, ending balance | 1,571,349,000 |
Accumulated impairment losses, ending balance | (8,024,000) |
Goodwill net of accumulated impairment losses, ending balance | $ 1,563,325,000 |
Financial Statement Details - T
Financial Statement Details - Transaction and Integration-Related Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Professional fees | $ 12,846 | $ 14,700 |
Debt modification and related expenses | 2,241 | 0 |
Integration and personnel retention-related costs | 847 | 9,293 |
Fair value adjustment of contingent obligations | 724 | 1,194 |
Other | 0 | 24 |
Total transaction and integration-related expenses | $ 16,658 | $ 25,211 |
Financial Statement Details -_2
Financial Statement Details - Accumulated Other Comprehensive Income (Loss), Net of Taxes (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Foreign currency translation adjustments | $ (60,351) | $ (80,955) |
Unrealized gain (loss) on derivative instruments | (11,456) | (7,240) |
Accumulated other comprehensive loss | $ (71,807) | $ (88,195) |
Financial Statement Details -_3
Financial Statement Details - Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | $ 2,856,144 | $ 3,022,579 |
Other comprehensive gain (loss) before reclassifications | 16,875 | |
Amount of gain reclassified from accumulated other comprehensive loss into the statement of operations | (487) | |
Net current period other comprehensive gain (loss), net of tax | 16,388 | 34,357 |
Balance | 2,838,370 | 2,907,259 |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (88,195) | (22,385) |
Balance | (71,807) | 15,822 |
Unrealized gain (loss) on derivative instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (7,240) | |
Other comprehensive gain (loss) before reclassifications | (3,729) | 711 |
Amount of gain reclassified from accumulated other comprehensive loss into the statement of operations | (487) | (277) |
Net current period other comprehensive gain (loss), net of tax | (4,216) | 434 |
Balance | (11,456) | |
Foreign currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (80,955) | |
Other comprehensive gain (loss) before reclassifications | 20,604 | |
Amount of gain reclassified from accumulated other comprehensive loss into the statement of operations | 0 | |
Net current period other comprehensive gain (loss), net of tax | 20,604 | $ 33,923 |
Balance | $ (60,351) |
Financial Statement Details -_4
Financial Statement Details - Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized gain arising during period, Net-of-Tax Amount | $ 16,875 | |
Reclassification adjustment for losses (gains) realized in net loss, Net-of-Tax Amount | (487) | |
Other comprehensive income (loss), Before-Tax Amount | 16,293 | $ 37,225 |
Other comprehensive income (loss), Tax (Expense) or Benefit | 95 | (2,868) |
Net current period other comprehensive gain (loss), net of tax | 16,388 | 34,357 |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized gain arising during period, Net-of-Tax Amount | 20,604 | |
Reclassification adjustment for losses (gains) realized in net loss, Net-of-Tax Amount | 0 | |
Other comprehensive income (loss), Before-Tax Amount | 20,604 | 36,791 |
Other comprehensive income (loss), Tax (Expense) or Benefit | 0 | (2,868) |
Net current period other comprehensive gain (loss), net of tax | 20,604 | 33,923 |
Unrealized (loss) gain on derivative instruments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized gain arising during period, Before-Tax Amount | (3,805) | 711 |
Unrealized gain arising during period, Tax (Expense) or Benefit | 76 | 0 |
Unrealized gain arising during period, Net-of-Tax Amount | (3,729) | 711 |
Reclassification adjustment for losses (gains) realized in net loss, Before-Tax-Amount | (506) | (277) |
Reclassification adjustment for losses (gains) realized in net loss, Tax (Expense) or Benefit | 19 | 0 |
Reclassification adjustment for losses (gains) realized in net loss, Net-of-Tax Amount | (487) | (277) |
Other comprehensive income (loss), Before-Tax Amount | (4,311) | 434 |
Other comprehensive income (loss), Tax (Expense) or Benefit | 95 | 0 |
Net current period other comprehensive gain (loss), net of tax | $ (4,216) | $ 434 |
Financial Statement Details - O
Financial Statement Details - Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | ||
Net realized foreign currency gain (loss) | $ (8,406) | $ (5,517) |
Net unrealized foreign currency gain (loss) | 77 | (6,364) |
Other, net | (592) | (673) |
Total other expense, net | $ (8,921) | $ (12,554) |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) | 1 Months Ended | ||
Aug. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 4,344,744,000 | $ 4,333,159,000 | |
Recurring | |||
Business Acquisition [Line Items] | |||
Contingent obligations related to business combinations | 20,966,000 | 20,127,000 | |
InVentiv Merger | Recurring | |||
Business Acquisition [Line Items] | |||
Contingent obligations related to business combinations | 16,400,000 | 15,700,000 | |
Kinapse Acquisition | |||
Business Acquisition [Line Items] | |||
Contingent obligations related to business combinations | $ 4,500,000 | $ 4,400,000 | |
Consideration transferred | $ 100,100,000 | ||
Cash acquired | 4,900,000 | ||
Goodwill | 74,800,000 | ||
Intangible assets | 57,300,000 | ||
Goodwill deductible for income tax purposes | $ 0 |
Long-Term Debt Obligations - Sc
Long-Term Debt Obligations - Schedule of Debt Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total debt obligations | $ 2,766,264 | $ 2,768,400 |
Add: unamortized Senior Notes premium, net of term loan original issuance discount | 29,305 | 32,303 |
Less: unamortized deferred issuance costs | (9,911) | (13,584) |
Current portion of long-term debt | 0 | (50,100) |
Long-term debt | 2,785,658 | 2,737,019 |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Total debt obligations | 2,363,264 | 2,365,400 |
Secured Debt | Term Loan A due March 2024 | ||
Debt Instrument [Line Items] | ||
Total debt obligations | 1,150,000 | 975,000 |
Secured Debt | Term Loan B due August 2024 | ||
Debt Instrument [Line Items] | ||
Total debt obligations | 1,017,364 | 1,221,000 |
Secured Debt | Accounts receivable financing agreement due June 2020 | Accounts Receivable Securitization | ||
Debt Instrument [Line Items] | ||
Total debt obligations | $ 195,900 | 169,400 |
Unsecured Debt | 7.5% Senior Unsecured Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.50% | |
Total debt obligations | $ 403,000 | $ 403,000 |
Long-Term Debt Obligations - Cr
Long-Term Debt Obligations - Credit Agreement Narrative (Details) - USD ($) | Mar. 26, 2019 | May 04, 2018 | Aug. 01, 2017 | Feb. 28, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Debt Instrument [Line Items] | ||||||
Repayments of long-term debt | $ 216,136,000 | $ 31,250,000 | ||||
Term Loan B due August 2024 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of long-term debt | $ 187,500,000 | $ 25,000,000 | ||||
Repricing Amendment, Term A Loan | Secured Debt | ABR | ||||||
Debt Instrument [Line Items] | ||||||
Decrease to margin spread | 0.25% | |||||
Term Loan A due March 2024 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of long-term debt | $ 12,500,000 | |||||
Term Loan | Term Loan A due March 2024 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Term loan facility | $ 1,000,000,000 | |||||
Term Loan | Term Loan B due August 2024 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Term loan facility | $ 1,600,000,000 | |||||
Term Loan | Term Loan A due March 2024 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Term loan facility | $ 1,550,000,000 | |||||
Revolving Credit Facility | Revolving Credit Facility Due August 2022 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument term | 5 years | |||||
Maximum borrowing capacity under accounts receivable financing agreement | $ 500,000,000 |
Long-Term Debt Obligations - Am
Long-Term Debt Obligations - Amendment No. 2 to the Credit Agreement Narrative (Details) | Mar. 26, 2019USD ($) | Aug. 01, 2017USD ($) | Feb. 28, 2019USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) |
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 216,136,000 | $ 31,250,000 | |||
Loss on extinguishment of debt | 4,355,000 | $ 248,000 | |||
Term Loan A due March 2024 | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 12,500,000 | ||||
Term Loan B due August 2024 | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 187,500,000 | $ 25,000,000 | |||
Term Loan A and Revolving Credit Facility | December 31, 2017 through December 31, 2018 | |||||
Debt Instrument [Line Items] | |||||
Maximum first lien leverage ratio | 5 | ||||
Term Loan A and Revolving Credit Facility | First Quarter Ending March 31, 2019 | |||||
Debt Instrument [Line Items] | |||||
Maximum first lien leverage ratio | 4.50 | ||||
Amendment No 2 - Term Loan A (unfunded portion), and Revolving Credit Facility due March 2024 | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Discount and debt issuance costs | $ 3,500,000 | ||||
Term Loan | Term Loan A due March 2024 | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Increase to term loan facility | 587,500,000 | ||||
Term loan facility | 1,550,000,000 | ||||
Term Loan | Term Loan B due August 2024 | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Term loan facility | $ 1,600,000,000 | ||||
Term Loan | Term Loan A due March 2024, available within 9 months of closing | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Increase to term loan facility | 400,000,000 | ||||
Term Loan | Amendment No 2 - Term Loan A due March 2024 (funded portion) | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Discount and debt issuance costs | $ 2,800,000 | ||||
Term Loan | Term Loan A due March 2024 | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Term loan facility | 1,000,000,000 | ||||
Revolving Credit Facility | Amendment No 2 - Revolving Credit Facility due March 2024 | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Increase to existing commitments available | 100,000,000 | ||||
Maximum borrowing capacity under accounts receivable financing agreement | $ 600,000,000 | ||||
Debt instrument term | 5 years | ||||
Revolving Credit Facility | Amendment No 2 - Revolving Credit Facility due March 2024 | Secured Debt | ABR | |||||
Debt Instrument [Line Items] | |||||
Decrease to margin spread | 0.25% | ||||
Margin spread | 0.50% | ||||
Revolving Credit Facility | Amendment No 2 - Revolving Credit Facility due March 2024 | Secured Debt | Adjusted Eurocurrency Rate | |||||
Debt Instrument [Line Items] | |||||
Margin spread | 1.50% | ||||
Revolving Credit Facility | Revolving Credit Facility Due August 2022 | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity under accounts receivable financing agreement | $ 500,000,000 | ||||
Debt instrument term | 5 years |
Long-Term Debt Obligations - Co
Long-Term Debt Obligations - Covenant Restrictions under Lease Agreement (Details) $ in Millions | Mar. 31, 2019USD ($) |
Revolving Credit Facility Due August 2022 | Secured Debt | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Remaining capacity available under accounts receivable financing agreement | $ 580.5 |
Revolving Credit Facility Due August 2022 | Secured Debt | Letter of Credit | |
Debt Instrument [Line Items] | |
Long-term Line of Credit | 19.5 |
Term B Loan | Unsecured Debt | Letter of Credit | |
Debt Instrument [Line Items] | |
Long-term Line of Credit | $ 0.8 |
Long-Term Debt Obligations - Ac
Long-Term Debt Obligations - Accounts Receivable Financing Agreement (Details) - USD ($) | Jun. 29, 2018 | Mar. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,785,658,000 | |
Wholly-owned Special Purpose Entity | ||
Debt Instrument [Line Items] | ||
Prepay notice, term | 1 day | |
Termination or reduction to limit notice, term | 15 days | |
Accounts receivable financing agreement due June 29, 2020 | Secured Debt | Accounts Receivable Securitization | ||
Debt Instrument [Line Items] | ||
Long-term debt | 195,900,000 | |
Accounts receivable financing agreement due June 29, 2020 | Secured Debt | Accounts Receivable Securitization | Wholly-owned Special Purpose Entity | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity under accounts receivable financing agreement | 250,000,000 | |
Remaining capacity available under accounts receivable financing agreement | $ 54,100,000 | |
Accounts receivable financing agreement due June 29, 2020 | Secured Debt | Accounts Receivable Securitization | Wholly-owned Special Purpose Entity | Federal Funds Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.50% |
Long-Term Debt Obligations - _2
Long-Term Debt Obligations - Contractual Maturities of Debt Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Principal | ||
2019 | $ 0 | |
2020 | 239,024 | |
2021 | 79,063 | |
2022 | 107,813 | |
2023 | 115,000 | |
2024 and thereafter | 2,225,364 | |
Less: unamortized deferred issuance costs | (9,911) | $ (13,584) |
Unamortized Senior Notes premium, net of term loan original issuance discount | 29,305 | $ 32,303 |
Total | 2,785,658 | |
Interest | ||
2019 | 100,123 | |
2020 | 128,807 | |
2021 | 122,189 | |
2022 | 118,252 | |
2023 | 112,726 | |
2024 and thereafter | 57,441 | |
Total | $ 639,538 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Capital lease obligation | $ 40.6 | |
Operating Lease, Expense | $ 16.7 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Leases, remaining term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Leases, remaining term | 13 years | |
Vehicles | ||
Lessee, Lease, Description [Line Items] | ||
Capital lease obligation, gross | 55.3 | |
Capital lease obligation, accumulated depreciation | $ 17.6 |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Fixed Lease, Costs | $ 17,140 |
Fixed lease costs | 25,309 |
Short-term lease costs | 379 |
Variable lease costs | 7,790 |
Amortization of right-of-use assets | 4,319 |
Interest on lease liabilities | 394 |
Variable lease costs | 1,827 |
Total finance lease costs | $ 6,540 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Property and equipment, gross | $ 53,545 |
Accumulated depreciation | (19,932) |
Property and equipment, net | 33,613 |
Current portion of finance lease obligations | 11,808 |
Finance lease long-term obligations | 27,144 |
Total finance lease liabilities | $ 38,952 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating Lease, Payments | $ (16,238) |
Finance Lease, Interest Payment on Liability | (394) |
Payments of finance leases | (1,274) |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 39,002 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 1,171 |
Operating Lease, Weighted Average Remaining Lease Term | 8 years |
Finance Lease, Weighted Average Remaining Lease Term | 3 years |
Operating Lease, Weighted Average Discount Rate, Percent | 4.90% |
Finance Lease, Weighted Average Discount Rate, Percent | 3.20% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Leases | |
2019 (remaining 9 months) | $ 27,533 |
2020 | 50,350 |
2021 | 44,824 |
2022 | 39,255 |
2023 | 35,678 |
2024 and thereafter | 131,452 |
Total lease payments | 329,092 |
Less: imputed interest | (63,395) |
Total lease liabilities | 265,697 |
Finance Leases | |
2019 (remaining 9 months) | 12,853 |
2020 | 13,447 |
2021 | 9,922 |
2022 | 5,476 |
2023 | 37 |
2024 and thereafter | 0 |
Total lease payments | 41,735 |
Less: imputed interest | (2,224) |
Less: management fee | (559) |
Total lease liabilities | 38,952 |
2019 (remaining 9 months) | 40,386 |
2020 | 63,797 |
2021 | 54,746 |
2022 | 44,731 |
2023 | 35,715 |
2024 and thereafter | 131,452 |
Total lease payments | $ 370,827 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jun. 30, 2018 | May 31, 2016 |
Interest Rate Swaps, expiring on June 30, 2018 and May 14, 2020 | |||
Derivative [Line Items] | |||
Interest rate swaps, notional amount | $ 100 | $ 300 | |
Interest Rate Swap, expiring June 30, 2021 | |||
Derivative [Line Items] | |||
Interest rate swaps, notional amount | $ 1,010 |
Derivatives - Interest Rate Swa
Derivatives - Interest Rate Swaps Designated as Hedging Instruments on Consolidated Balance Sheets (Details) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Interest Rate Swap | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset - current | $ 1,132 | $ 1,355 |
Interest Rate Swap | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset - non-current | 111 | 441 |
Interest Rate Swap | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability - current | (4,328) | (3,031) |
Interest Rate Swap | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability - non-current | (8,832) | (6,201) |
Foreign Currency Exchange Rate Swap | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability - current | $ 0 | $ (138) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Trading securities | $ 20,674 | $ 14,945 |
Derivative instruments | 1,243 | 1,796 |
Total assets | 21,917 | 16,741 |
Liabilities: | ||
Derivative instruments | 13,160 | 9,370 |
Contingent obligations related to business combinations | 20,966 | 20,127 |
Total liabilities | 34,126 | 29,497 |
Level 1 | ||
Assets: | ||
Trading securities | 20,674 | 14,945 |
Derivative instruments | 0 | 0 |
Total assets | 20,674 | 14,945 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Contingent obligations related to business combinations | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | ||
Assets: | ||
Trading securities | 0 | 0 |
Derivative instruments | 1,243 | 1,796 |
Total assets | 1,243 | 1,796 |
Liabilities: | ||
Derivative instruments | 13,160 | 9,370 |
Contingent obligations related to business combinations | 0 | 0 |
Total liabilities | 13,160 | 9,370 |
Level 3 | ||
Assets: | ||
Trading securities | 0 | 0 |
Derivative instruments | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Contingent obligations related to business combinations | 20,966 | 20,127 |
Total liabilities | $ 20,966 | $ 20,127 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Changes in the Carrying Amount of Contingent Tax Sharing Obligations (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Fair Value Disclosures [Abstract] | |
Balance at December 31, 2018 | $ 20,127 |
Additions | 0 |
Accretion recognized in earnings | 839 |
Balance at March 31, 2019 | $ 20,966 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill and identifiable intangible assets | $ 5,440 | $ 5,470 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Estimated Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
7.5% Senior Unsecured Notes due 2024 | Unsecured Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate | 7.50% | |
Level 2 | Carrying Value | Term Loan A due March 2024 | Secured Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, carrying value | $ 1,146,253 | $ 973,218 |
Level 2 | Carrying Value | Term Loan B due August 2024 | Secured Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, carrying value | 1,016,371 | 1,219,755 |
Level 2 | Carrying Value | 7.5% Senior Unsecured Notes due 2024 | Unsecured Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, carrying value | 437,045 | 438,330 |
Level 2 | Estimated Fair Value | Term Loan A due March 2024 | Secured Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 1,150,000 | 975,000 |
Level 2 | Estimated Fair Value | Term Loan B due August 2024 | Secured Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 1,017,364 | 1,221,000 |
Level 2 | Estimated Fair Value | 7.5% Senior Unsecured Notes due 2024 | Unsecured Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 426,173 | $ 423,150 |
Restructuring and Other Costs -
Restructuring and Other Costs - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Employee Severance Costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges incurred | $ 6 |
Facility Closure and Lease Termination Costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges incurred | 0.2 |
InVentiv Merger | Employee Severance Costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges incurred | 6.3 |
InVentiv Merger | Facility Closure and Lease Termination Costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges incurred | $ 2 |
Restructuring and Other Costs_2
Restructuring and Other Costs - Schedule of Restructuring and Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Reserve | ||
Expenses incurred | $ 14,413 | $ 13,707 |
Facility lease closure and lease termination costs | 2,200 | |
Business Restructuring Reserves | ||
Restructuring Reserve | ||
Balance at beginning of period | 24,287 | |
Expenses incurred | 12,240 | |
Cash payments made | (4,109) | |
Balance at end of period | 15,657 | |
Business Restructuring Reserves | Accounting Standards Update 2016-02 | ||
Restructuring Reserve | ||
Adoption of ASC 842 | (16,761) | |
Business Restructuring Reserves | Employee Severance Costs, Including Executive Transition Costs | ||
Restructuring Reserve | ||
Balance at beginning of period | 7,474 | |
Expenses incurred | 12,232 | |
Cash payments made | (4,071) | |
Balance at end of period | 15,635 | |
Business Restructuring Reserves | Employee Severance Costs, Including Executive Transition Costs | Accounting Standards Update 2016-02 | ||
Restructuring Reserve | ||
Adoption of ASC 842 | 0 | |
Business Restructuring Reserves | Facility Closure and Lease Termination Costs | ||
Restructuring Reserve | ||
Balance at beginning of period | 16,761 | |
Expenses incurred | 0 | |
Cash payments made | 0 | |
Balance at end of period | 0 | |
Business Restructuring Reserves | Facility Closure and Lease Termination Costs | Accounting Standards Update 2016-02 | ||
Restructuring Reserve | ||
Adoption of ASC 842 | (16,761) | |
Business Restructuring Reserves | Other Costs | ||
Restructuring Reserve | ||
Balance at beginning of period | 52 | |
Expenses incurred | 8 | |
Cash payments made | (38) | |
Balance at end of period | 22 | |
Business Restructuring Reserves | Other Costs | Accounting Standards Update 2016-02 | ||
Restructuring Reserve | ||
Adoption of ASC 842 | $ 0 |
Shareholders' Equity - Narrati
Shareholders' Equity - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||||
Feb. 28, 2019 | Jan. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Feb. 26, 2018 | |
Class of Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 250,000,000 | |||||
Stock repurchased, total purchase price | $ 26,616,000 | $ 37,492,000 | ||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchased (in shares) | 120,600 | 552,100 | 948,100 | |||
Stock repurchased, average price per share (USD per share) | $ 41.40 | $ 39.16 | $ 39.55 | |||
Stock repurchased, total purchase price | $ 5,000,000 | $ 21,600,000 | $ 37,500,000 | |||
Stock repurchase program, remaining authorization to repurchase | $ 148,400,000 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - Performance-Based RSU Awards | 3 Months Ended |
Mar. 31, 2019trancheshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares granted (in shares) | shares | 159,490 |
Vesting period | 3 years |
Return on invested capital period | 3 years |
Number of equal tranches | tranche | 3 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rights, percentage | 0.00% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rights, percentage | 150.00% |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net loss | $ (30,004) | $ (24,552) |
Denominator: | ||
Basic weighted average common shares outstanding (in shares) | 103,365 | 104,449 |
Effect of dilutive securities: | ||
Stock options and other awards under deferred share-based compensation programs (in shares) | 0 | 0 |
Diluted weighted average common shares outstanding (in shares) | 103,365 | 104,449 |
Loss per share: | ||
Basic (USD per share) | $ (0.29) | $ (0.24) |
Diluted (USD per share) | $ (0.29) | $ (0.24) |
Earnings (Loss) Per Share - S_2
Earnings (Loss) Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings (Loss) Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Total common stock equivalents excluded from diluted loss per share (in shares) | 1,732 | 1,995 |
Stock-Based Compensation Plans | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Total common stock equivalents excluded from diluted loss per share (in shares) | 294 | 1,097 |
Stock-Based Compensation Plans | Anti-dilutive stock options and other awards under share-based compensation programs excluded based on reporting a net loss for the period | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Total common stock equivalents excluded from diluted loss per share (in shares) | 1,438 | 898 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) | $ 10,416 | $ (8,972) | |
Income (loss) before provision for income taxes | (19,588) | $ (33,524) | |
Gross unrecognized tax benefits | 19,600 | $ 19,200 | |
Decrease in unrecognized tax benefits, audit settlements and remeasurement of acquired positions | $ 400 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligations under contracts with a contract term greater than one year | $ 5,940 |
Revenue recognized, included in contract liabilities balance at beginning of period | 364.7 |
Increase (decrease) in revenue recognized, allocated to performance obligation partially satisfied in previous periods | $ 13.2 |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract term | 1 year |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract term | 5 years |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 2 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 1,119,006 | $ 1,057,196 |
Direct costs (exclusive of depreciation and amortization) | 886,802 | 840,823 |
Selling, general, and administrative expenses | 113,117 | 99,259 |
Operating income (loss) | 26,816 | 10,175 |
Restructuring and other costs | 14,413 | 13,707 |
Transaction and integration-related expenses | 16,658 | 25,211 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Direct costs (exclusive of depreciation and amortization) | 878,640 | 837,071 |
Selling, general, and administrative expenses | 95,755 | 85,464 |
Operating income (loss) | 144,611 | 134,661 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Selling, general, and administrative expenses | 11,257 | 9,759 |
Restructuring and other costs | 14,413 | 13,707 |
Transaction and integration-related expenses | 16,658 | 25,211 |
Depreciation and amortization | 61,200 | 68,021 |
Corporate | Direct costs | ||
Segment Reporting Information [Line Items] | ||
Share-based compensation expense | 8,162 | 3,752 |
Corporate | Selling, general, and administrative expenses | ||
Segment Reporting Information [Line Items] | ||
Share-based compensation expense | 6,105 | 4,036 |
Clinical Solutions | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 804,958 | 786,839 |
Direct costs (exclusive of depreciation and amortization) | 625,767 | 615,371 |
Selling, general, and administrative expenses | 69,702 | 65,946 |
Operating income (loss) | 109,489 | 105,522 |
Commercial Solutions | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 314,048 | 270,357 |
Direct costs (exclusive of depreciation and amortization) | 252,873 | 221,700 |
Selling, general, and administrative expenses | 26,053 | 19,518 |
Operating income (loss) | $ 35,122 | $ 29,139 |
Operations by Geographic Loca_3
Operations by Geographic Location - Total Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues by Geographic Location | ||
Revenue | $ 1,119,006 | $ 1,057,196 |
North America | ||
Revenues by Geographic Location | ||
Revenue | 727,698 | 731,766 |
United States | ||
Revenues by Geographic Location | ||
Revenue | $ 704,100 | $ 696,400 |
United States | Geographic Concentration Risk | Net Service Revenue | ||
Revenues by Geographic Location | ||
Concentration risk percentage | 62.90% | 65.90% |
Europe, Middle East, and Africa | ||
Revenues by Geographic Location | ||
Revenue | $ 258,347 | $ 228,837 |
Asia-Pacific | ||
Revenues by Geographic Location | ||
Revenue | 111,566 | 77,980 |
Latin America | ||
Revenues by Geographic Location | ||
Revenue | $ 21,395 | $ 18,613 |
Operations by Geographic Loca_4
Operations by Geographic Location - Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Long-Lived Assets by Geographic Location | ||
Total property and equipment, net | $ 175,990 | $ 183,486 |
North America | ||
Long-Lived Assets by Geographic Location | ||
Total property and equipment, net | 128,432 | 133,593 |
United States | ||
Long-Lived Assets by Geographic Location | ||
Total property and equipment, net | 123,000 | 128,300 |
Europe, Middle East, and Africa | ||
Long-Lived Assets by Geographic Location | ||
Total property and equipment, net | 31,497 | 33,053 |
Asia-Pacific | ||
Long-Lived Assets by Geographic Location | ||
Total property and equipment, net | 12,701 | 13,328 |
Latin America | ||
Long-Lived Assets by Geographic Location | ||
Total property and equipment, net | $ 3,360 | $ 3,512 |
Concentration of Credit Risk -
Concentration of Credit Risk - Concentration of Cash Balances (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Geographic Concentration Risk | Cash and Cash Equivalents | Non-US | |||
Concentration Risk [Line Items] | |||
Cash, cash equivalents, and restricted cash | $ 43.6 | ||
Concentration risk percentage | 28.00% | ||
Customer Concentration Risk | Total consolidated service revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | 11.00% | |
Customer Concentration Risk | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.00% | 13.00% |
Related-Party Transactions (Det
Related-Party Transactions (Details) - Affiliated Entity - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Incurred professional services costs, related party | $ 1.1 | $ 0.2 |
Liabilities, related party | $ 0.8 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | Jan. 30, 2018plaintiff | Dec. 01, 2017action | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Recurring | ||||
Loss Contingencies [Line Items] | ||||
Contingent obligations related to business combinations | $ 20,966 | $ 20,127 | ||
InVentiv Merger | Recurring | ||||
Loss Contingencies [Line Items] | ||||
Contingent obligations related to business combinations | 16,400 | 15,700 | ||
Kinapse Acquisition | ||||
Loss Contingencies [Line Items] | ||||
Contingent obligations related to business combinations | $ 4,500 | $ 4,400 | ||
Pending Litigation | Bermudez and Vaitkuviene Actions | ||||
Loss Contingencies [Line Items] | ||||
Number of actions taken by plaintiff | action | 2 | |||
Number of plaintiffs | plaintiff | 2 |
Uncategorized Items - synh-2019
Label | Element | Value |
Stockholders' Equity Attributable To Parent, Adjusted Balance | synh_StockholdersEquityAttributableToParentAdjustedBalance | $ 2,923,764,000 |
Common Stock [Member] | ||
Stockholders' Equity Attributable To Parent, Adjusted Balance | synh_StockholdersEquityAttributableToParentAdjustedBalance | $ 1,044,000 |
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 104,436,000 |
Retained Earnings [Member] | ||
Stockholders' Equity Attributable To Parent, Adjusted Balance | synh_StockholdersEquityAttributableToParentAdjustedBalance | $ (473,134,000) |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity Attributable To Parent, Adjusted Balance | synh_StockholdersEquityAttributableToParentAdjustedBalance | (18,535,000) |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity Attributable To Parent, Adjusted Balance | synh_StockholdersEquityAttributableToParentAdjustedBalance | 3,414,389,000 |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (98,815,000) |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (98,815,000) |
Accounting Standards Update 2018-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (3,850,000) |
Accounting Standards Update 2018-02 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 3,850,000 |