Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 09, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-37856 | ||
Entity Registrant Name | Medpace Holdings, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 32-0434904 | ||
Entity Address, Address Line One | 5375 Medpace Way | ||
Entity Address, City or Town | Cincinnati | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 45227 | ||
City Area Code | 513 | ||
Local Phone Number | 579-9911 | ||
Title of 12(b) Security | Common Stock $0.01 par value | ||
Trading Symbol | MEDP | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5.6 | ||
Entity Common Stock, Shares Outstanding | 30,759,281 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE | ||
Entity Central Index Key | 0001668397 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Cincinnati, Ohio |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 245,449 | $ 28,265 |
Accounts receivable and unbilled, net (includes $2.4 million and $7.7 million with related parties at December 31, 2023 and 2022, respectively) | 298,400 | 253,404 |
Prepaid expenses and other current assets (includes $0.3 million with related parties at December 31, 2023) | 49,979 | 52,293 |
Total current assets | 593,828 | 333,962 |
Property and equipment, net | 120,589 | 109,849 |
Operating lease right-of-use assets | 144,801 | 139,068 |
Goodwill | 662,396 | 662,396 |
Intangible assets, net | 35,809 | 38,008 |
Deferred income taxes | 74,435 | 48,083 |
Other assets | 24,970 | 21,129 |
Total assets | 1,656,828 | 1,352,495 |
Current liabilities: | ||
Accounts payable (includes $3.1 million and $0.3 million with related parties at December 31, 2023 and 2022, respectively) | 31,869 | 33,069 |
Accrued expenses | 292,961 | 210,125 |
Advanced billings (includes $10.1 million and $8.8 million with related parties at December 31, 2023 and 2022, respectively) | 559,860 | 462,729 |
Short-term debt | 0 | 50,000 |
Other current liabilities (includes $12.5 million with related parties at December 31, 2022) | 40,441 | 47,547 |
Total current liabilities | 925,131 | 803,470 |
Operating lease liabilities | 142,122 | 138,867 |
Deferred income tax liability | 2,404 | 1,070 |
Other long-term liabilities | 28,221 | 22,701 |
Total liabilities | 1,097,878 | 966,108 |
Commitments and contingencies (see Note 12) | ||
Shareholders’ equity: | ||
Preferred stock - $0.01 par-value; 5,000,000 shares authorized; no shares issued and outstanding at December 31, 2023 and 2022, respectively | 0 | 0 |
Common stock - $0.01 par-value; 250,000,000 shares authorized at December 31, 2023 and 2022, respectively; 30,752,292 and 31,091,694 shares issued and outstanding at December 31, 2023 and 2022, respectively | 308 | 309 |
Treasury stock - 70,573 and 71,573 shares at December 31, 2023 and 2022, respectively | (12,322) | (12,497) |
Additional paid-in capital | 802,681 | 770,794 |
Accumulated deficit | (221,645) | (359,827) |
Accumulated other comprehensive loss | (10,072) | (12,392) |
Total shareholders’ equity | 558,950 | 386,387 |
Total liabilities and shareholders’ equity | $ 1,656,828 | $ 1,352,495 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts receivable and unbilled, net | $ 298,400 | $ 253,404 |
Prepaid expenses and other current assets | 49,979 | 52,293 |
Accounts payable | 31,869 | 33,069 |
Advanced billings | 559,860 | 462,729 |
Other current liabilities | $ 40,441 | $ 47,547 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock issued (in shares) | 30,752,292 | 31,091,694 |
Common stock outstanding (in shares) | 30,752,292 | 31,091,694 |
Treasury stock (in shares) | 70,573 | 71,573 |
Related Party | ||
Accounts receivable and unbilled, net | $ 2,400 | $ 7,700 |
Prepaid expenses and other current assets | 300 | |
Accounts payable | 3,100 | 300 |
Advanced billings | $ 10,100 | 8,800 |
Other current liabilities | $ 12,500 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue, net (includes $59.6 million, $55.4 million and $34.5 million with related parties for the years ended December 31, 2023, 2022 and 2021, respectively) | $ 1,885,842 | $ 1,459,996 | $ 1,142,377 |
Operating expenses: | |||
Direct operating costs | 1,361,337 | 1,027,558 | 814,222 |
Selling, general and administrative | 161,352 | 131,400 | 108,421 |
Depreciation | 24,129 | 18,989 | 16,005 |
Amortization | 2,199 | 3,352 | 5,114 |
Total operating expenses | 1,549,017 | 1,181,299 | 943,762 |
Income from operations | 336,825 | 278,697 | 198,615 |
Other (expense) income, net: | |||
Miscellaneous (expense) income, net | (655) | 7,068 | 3,342 |
Interest expense, net | (488) | (2,905) | (105) |
Total other (expense) income, net | (1,143) | 4,163 | 3,237 |
Income before income taxes | 335,682 | 282,860 | 201,852 |
Income tax provision | 52,872 | 37,492 | 20,004 |
Net income | $ 282,810 | $ 245,368 | $ 181,848 |
Net income per share attributable to common shareholders: | |||
Earnings per share, basic (in dollars per share) | $ 9.20 | $ 7.57 | $ 5.06 |
Earnings per share, diluted (in dollars per share) | $ 8.88 | $ 7.28 | $ 4.81 |
Weighted average common shares outstanding: | |||
Weighted average number of shares outstanding, basic (in shares) | 30,722 | 32,388 | 35,862 |
Weighted-average shares outstanding, diluted (in shares) | 31,841 | 33,671 | 37,697 |
Direct Costs | |||
Operating expenses: | |||
Direct operating costs | $ 638,249 | $ 534,887 | $ 441,090 |
Reimbursed out-of-pocket expenses | |||
Operating expenses: | |||
Direct operating costs | $ 723,088 | $ 492,671 | $ 373,132 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Total revenue | $ 1,885,842 | $ 1,459,996 | $ 1,142,377 |
Related Party | |||
Total revenue | $ 59,600 | $ 55,400 | $ 34,500 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 282,810 | $ 245,368 | $ 181,848 |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments, net of taxes | 2,320 | (7,546) | (4,715) |
Comprehensive income | $ 285,130 | $ 237,822 | $ 177,133 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive Loss |
Balance, beginning of period at Dec. 31, 2020 | $ 805,779 | $ 355 | $ (5,578) | $ 695,904 | $ 115,229 | $ (131) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 181,848 | 181,848 | ||||
Foreign currency translation | (4,715) | (4,715) | ||||
Stock-based compensation expense | 14,469 | 14,469 | ||||
Stock options exercised | 17,643 | 8 | 151 | 17,484 | ||
Repurchases of common stock | (62,096) | (3) | (62,093) | |||
Balance, end of period at Dec. 31, 2021 | 952,928 | 360 | (5,427) | 727,857 | 234,984 | (4,846) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 245,368 | 245,368 | ||||
Foreign currency translation | (7,546) | (7,546) | ||||
Stock-based compensation expense | 21,412 | 21,412 | ||||
Stock options exercised | 22,074 | 6 | 1,746 | 21,525 | (1,203) | |
Repurchases of common stock | (847,849) | (57) | (14,243) | (833,549) | ||
Retirement of treasury stock | 0 | 5,427 | (5,427) | |||
Balance, end of period at Dec. 31, 2022 | 386,387 | 309 | (12,497) | 770,794 | (359,827) | (12,392) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 282,810 | 282,810 | ||||
Foreign currency translation | 2,320 | 2,320 | ||||
Stock-based compensation expense | 20,516 | 20,516 | ||||
Stock options exercised | 11,378 | 7 | 11,371 | |||
Repurchases of common stock | (144,461) | (8) | (144,453) | |||
Re-issuance of treasury stock | 0 | 175 | (175) | |||
Balance, end of period at Dec. 31, 2023 | $ 558,950 | $ 308 | $ (12,322) | $ 802,681 | $ (221,645) | $ (10,072) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 282,810 | $ 245,368 | $ 181,848 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 24,129 | 18,989 | 16,005 |
Amortization | 2,199 | 3,352 | 5,114 |
Stock-based compensation expense | 20,516 | 21,412 | 14,469 |
Noncash lease expense | 19,646 | 18,015 | 16,288 |
Deferred income tax benefit | (25,117) | (23,014) | (37,112) |
Other | 2,705 | (2,127) | 8 |
Changes in assets and liabilities: | |||
Accounts receivable and unbilled, net | (48,282) | (66,920) | (24,982) |
Prepaid expenses and other current assets | 2,986 | (10,175) | (9,134) |
Accounts payable | 1,051 | 6,431 | 1,866 |
Accrued expenses | 82,080 | 52,476 | 26,156 |
Advanced billings | 97,131 | 118,088 | 88,977 |
Lease liabilities | (18,873) | (15,899) | (15,632) |
Other assets and liabilities, net | (9,607) | 22,054 | (544) |
Net cash provided by operating activities | 433,374 | 388,050 | 263,327 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Property and equipment expenditures | (36,648) | (36,879) | (28,271) |
Other | 2,019 | (1,863) | (3,093) |
Net cash used in investing activities | (34,629) | (38,742) | (31,364) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from stock option exercises | 11,378 | 22,074 | 17,643 |
Repurchases of common stock | (144,020) | (847,849) | (62,096) |
Proceeds from revolving loan | 105,000 | 324,200 | 0 |
Payments on revolving loan | (155,000) | (274,200) | 0 |
Net cash used in financing activities | (182,642) | (775,775) | (44,453) |
EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 1,081 | (6,572) | (3,972) |
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 217,184 | (433,039) | 183,538 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period | 28,265 | 461,304 | 277,766 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period | 245,449 | 28,265 | 461,304 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION— | |||
Cash paid during the period for income taxes | 76,353 | 50,164 | 56,243 |
Cash paid during the period for interest | 3,056 | 2,935 | 123 |
Acquisition of property and equipment—non-cash | $ 5,254 | $ 7,838 | $ 6,352 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Description of Business Medpace Holdings, Inc. together with its subsidiaries, (“Medpace” or the “Company”), a Delaware corporation, is a global provider of clinical research-based drug and medical device development services. The Company partners with pharmaceutical, biotechnology, and medical device companies in the development and execution of clinical trials. The Company’s drug development services focus on full service Phase I-IV clinical development services and include development plan design, coordinated central laboratory, project management, regulatory affairs, clinical monitoring, data management and analysis, pharmacovigilance new drug application submissions, and post-marketing clinical support. The Company also provides bio-analytical laboratory services, clinical human pharmacology, imaging services, and electrocardiography reading support for clinical trials. The Company’s operations are principally based in North America, Europe, and Asia. Share Repurchases In 2018, the Board of Directors approved a stock repurchase program which has been amended several times to increase the aggregate amount of the stock repurchase authorization. For the year ended December 31, 2022, the Company repurchased 5,463,244 shares for $800.5 million under this repurchase program. For the year ended December 31, 2021, the Company repurchased 377,783 shares for $62.1 million. As of June 30, 2022, the Company completed all authorized share repurchases under this repurchase program. In the fourth quarter of 2022, the Board approved a new stock repurchase program of up to $500.0 million. For the year ended December 31, 2023, the Company repurchased 781,068 shares for $144.0 million under the new repurchase program. For the year ended December 31, 2022, the Company repurchased 228,247 shares for $47.2 million under the new repurchase program. As of December 31, 2023, we have remaining authorization of $308.8 million under the new repurchase program. Repurchases under the share repurchase programs are executed in the open market or negotiated transactions under trading plans established pursuant to Rule 10b5-1. The Company constructively retires the repurchased shares associated with these approved share repurchase programs, except for a small portion which were retained as Treasury Shares on the consolidated statements of shareholders' equity. Retired share repurchase amounts paid in excess of par value are reflected within Accumulated deficit/Retained earnings in the Company’s consolidated balance sheets. The repurchase programs may be suspended or discontinued at any time without notice. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) and include the accounts and operations of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. Significant items that are subject to management estimates and assumptions include revenue, net, allowances for doubtful accounts, acquisition purchase price allocations, long-lived asset impairment and useful lives, exit liabilities, stock-based compensation, uncertain income tax positions and contingencies. Reportable Segments The Company emphasizes its full service outsourcing model, providing services focused on the development, management and execution of clinical trials. As part of this full service approach, the Company utilizes centralized systems, customer interface technology, support functions and processes that cross service offerings and align resources to deliver efficient clinical trial services. Given the full service approach, the chief executive officer, who is the chief operating decision maker (“CODM”) assesses the allocation of resources based on key metrics including revenue, backlog, and net awards by service offering and consolidated profitability and consolidated cash flows. Based on the Company’s full service model, internal management and reporting structure, and key metrics used by the CODM to make resource allocation decisions, management has determined that the Company’s operations consist of a single operating segment. Therefore, results of operations are presented as a single reportable segment. Foreign Currencies Assets and liabilities recorded in foreign currencies on foreign subsidiary financial statements are translated at the exchange rate on the balance sheet date, while equity accounts are translated at historical exchange rates. Revenue and expenses are recorded at average rates of exchange during the year. Translation adjustments are recorded to Accumulated other comprehensive loss in the consolidated statements of shareholders’ equity and consolidated statements of comprehensive income. Separately, net realized gains and losses on foreign currency transactions are included in Miscellaneous income, net, on the consolidated statements of operations. Foreign currency transactions resulted in a net (loss)/gain of $(1.9) million, $3.9 million, and $2.8 million during the years ended December 31, 2023, 2022, and 2021, respectively. Revenue Recognition The Company generally enters into contracts with customers to provide services ranging in duration from a few months to several years. The contract terms generally provide for payments based on a fixed fee or unit-of-service arrangement. The Company accounts for revenue in accordance with ASC 606, Revenue from Contracts with Customers. Revenue on contracts is recognized when or as the Company satisfies the contract performance obligations, at the amount that reflects the Company’s cumulative progress toward delivery of the performance obligation. This progress assessment is applied to the amount of consideration to which the Company expects to be paid for delivery of the performance obligation. The Company’s performance obligations are generally satisfied over time and related revenue is recognized as services are provided to meet these obligations. Contract Assumptions An arrangement is accounted for as a contract within the scope of ASC 606 when the Company and its customers approve the contract, are committed to perform their respective obligations, each party can identify its rights regarding the goods or services to be transferred, commercial substance is present, and it is probable that the Company will collect substantially all of the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. For the Company’s services to meet this criteria, contracts generally need to be written, pending regulatory hurdles required to commence work must be cleared, the study protocol must be completed, the customer must have adequate funding or reasonable path to funding to execute the contracted portion of the study, and the study must be actively moving forward. Once these criteria have been met, it is deemed that the Company and its customers are committed to perform their respective obligations. Depending on the timing of when these criteria are met, revenue recognition may vary significantly on a period over period basis. Accounting for contracts performed over a period of time involves the use of various assumptions to estimate total contract revenue and costs. The Company estimates expected costs to complete a contract and recognizes contracted revenue over the life of the contract as those costs are incurred. Cost estimates are based on a detailed project budget and are developed based on many variables, including, but not limited to, the scope of the work, the complexity of the study, the participating geographic locations and the Company’s historical experience. To assist with the estimation of costs expected at completion over the life of a project, regular contract reviews are performed in which performance to date is compared to the most current estimate to complete assumptions. The reviews include an assessment of costs incurred to date compared to expectations based on budget assumptions and other circumstances specific to the project. The total estimated costs necessary to complete is updated and any revisions to the existing cost estimate results in cumulative adjustments to the amount of revenue recognized in the period in which the revisions are identified. In the case of cost estimates related to activities legally contracted as reimbursable in nature, including but not limited to investigator fee activity, these estimates also influence the Company’s assumed contract value and assumed remaining performance obligations. Because of the uncertainties inherent in estimating the costs necessary to fulfill contractual obligations, it is possible that estimates may change in the near term, resulting in a material change in revenue reported. Contracts generally provide for pricing modifications upon scope of work changes. The Company recognizes revenue, at an amount to which it expects to be entitled, related to work performed in connection with scope changes when the underlying services are performed and a binding contractual commitment has been established with the customer. If the Company’s customers do not agree to contract changes upon changes in the Company’s scope of work, the Company could be exposed to cost overruns and reduced contract profitability. Costs are not deferred in anticipation of contracts being awarded or amendments being finalized, but are expensed as incurred. Most contracts are terminable by the customer, either immediately or according to advance notice terms specified within the contracts. These contracts require payment of fees for services rendered through the date of termination and may require payment for subsequent services necessary to conclude the study or close out the contract. Final settlement amounts are agreed to with the customer based on remaining work to be performed. These amounts are included in revenue when the Company believes the amount can be estimated reliably and its realization is probable. In evaluating the probability of recognition, the Company considers the contractual basis for the settlement amount and the objective evidence available to support the amount. Certain contracts contain volume rebate arrangements with our customers that provide for rebates if certain specified spending thresholds are met. These obligations are considered as a reduction in revenue when it appears probable that the arrangement thresholds will be met, which can be at contract inception. Total revenue is presented net of rebates of $12.1 million, $7.9 million and $7.2 million in the consolidated statements of operations during the years ended December 31, 2023, 2022 and 2021, respectively. The Company occasionally enters into incentive fee arrangements with customers that provide for additional compensation if certain defined contractual milestones or performance thresholds are met. These additional fees are included in the estimated transaction price when there is a basis to reasonably estimate the amount of the fee and when achievement of the incentive milestone is deemed probable. These estimates are based on anticipated performance, the Company’s best judgment at the time or ultimately, upon achievement of the threshold or milestone. The Company records revenue net of any tax assessments by governmental authorities that are imposed and concurrent with specific revenue generating transactions. Performance Obligations Substantially all of the Company’s contracts consist of a single performance obligation, as the promise to transfer the individual services described in the contracts are not separately identifiable from other promises in the contracts, and therefore not distinct. Revenue recognition is determined by assessing the progress of performance completed or delivered to date compared to total services to be delivered under the terms of the arrangement. The measures utilized to assess progress on the satisfaction of performance are specific to the performance obligation identified in the contract. For the majority of the Company’s contract performance obligations, it utilizes the input method of cost to cost to measure progress, as the Company has determined that it is the most consistent measure of progress among contract tasks and represents the most faithful depiction of the transfer of services over the contract life. Under this method, the Company determines cost incurred to date for the services it provides compared to the total estimated costs at completion. For certain other contractual performance obligations, the Company has determined that an output method is the best measure of progress. These relate to certain unitized contracts, and the Company recognizes revenue in the period in which the unit is delivered compared to total contracted units. As of December 31, 2023 and 2022, the Company had approximately $2.9 billion and $2.7 billion of performance obligations remaining to be performed for active projects. Concentration of Credit Risk Financial instruments that subject the Company to credit risk primarily consist of cash and cash equivalents and accounts receivable. The cash and cash equivalent balances are held and maintained with financial institutions with reputable credit ratings and, consequently, the Company believes that such funds are subject to minimal credit risk. The Company generally does not require collateral or other securities to support customer receivables. In the years ended December 31, 2023, 2022 and 2021, credit losses have been immaterial and within management’s expectations. At December 31, 2023 and 2022, there were no customers accounting for more than 10% of the Company’s accounts receivable. Costs and Expenses The Company incurs costs associated with service delivery including direct labor and related employee benefits, laboratory supplies, and other expenses. These costs are recorded in Direct service costs, excluding depreciation and amortization as a component of Total direct costs in the accompanying consolidated statements of operations. In addition, the Company incurs expenses on behalf of its customers for various project expenditures including, but not limited to, investigator site payments, travel, meetings, printing, and shipping and handling fees that are reimbursed by its customers at cost. These costs are included in Reimbursable out-of-pocket expenses as a component of Total direct costs in the accompanying consolidated statements of operations. Total direct costs are expensed as incurred and are not deferred in anticipation of contracts being awarded or finalization of changes in scope. Selling, general and administrative includes administrative payroll and related employee benefits, sales and marketing expenses, administrative travel, and other expenses not directly related to service delivery. Rent, utilities, supplies, and software license expenses are allocated between Total direct costs, and Selling, general and administrative based on the estimated contribution among service delivery and support function efforts on a percentage basis. Depreciation and amortization is reported separately in the accompanying consolidated statements of operations. Costs of sales and marketing activities not subject to recovery pursuant to customer contracts, such as feasibility assessments and negotiation of contracts, are expensed as incurred and recorded as a component of Selling, general and administrative in the accompanying consolidated statements of operations. Advertising expenses are recorded as a component of Selling, general and administrative expenses in the accompanying consolidated statements of operations. Total advertising expenses of $1.5 million, $1.3 million and $1.2 million were incurred during the years ended December 31, 2023, 2022 and 2021, respectively. Income Taxes The Company’s consolidated US federal income tax return is comprised of its US subsidiaries, its foreign branches and certain foreign subsidiaries. The Company provides for income taxes on all transactions that have been recognized in the consolidated financial statements in accordance with accounting guidance governing income tax accounting. Accordingly, the impact of changes in income tax laws on deferred tax assets and deferred tax liabilities are recognized in net earnings in the period during which such changes are enacted. The Company records deferred tax assets and liabilities based on temporary differences between the financial statement bases and tax bases of assets and liabilities. Deferred tax assets are recorded for tax benefit carryforwards using tax rates anticipated to be in effect in the year in which the temporary differences are expected to reverse. If it does not appear more likely than not that the full value of a deferred tax asset will be realized, the Company records a valuation allowance against the deferred tax asset, with an offsetting charge to the Company’s income tax provision or benefit. The value of the Company’s deferred tax assets is estimated based on, among other things, the Company’s ability to generate a sufficient level of future taxable income. In estimating future taxable income, the Company has considered both positive and negative evidence, such as historical and forecasted results of operations, and has considered the implementation of prudent and feasible tax planning strategies. The Company’s accounting position is that unremitted foreign earnings are indefinitely reinvested. Therefore, the Company has not recorded deferred foreign withholding taxes on the unremitted foreign earnings. Refer to Note 11 for further information regarding this assertion. The Company follows accounting guidance related to accounting for uncertainty in income taxes which requires significant judgment in determining what constitutes an individual tax position as well as assessing the possible outcome of each tax position. Changes in judgments as to recognition or measurement of tax positions can materially affect the estimate of the effective tax rate, and, consequently, the Company’s consolidated financial results. The Company considers many factors when evaluating and estimating tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. In addition, the calculation of tax liabilities involves dealing with uncertainties in the application of complex tax regulations in a multitude of jurisdictions. The Company determines its liability for uncertain tax positions globally. If the payment of these amounts ultimately proves to be unnecessary, the reversal of liabilities would result in tax benefits being recognized in the period when it is determined the liabilities are no longer necessary. If the calculation of the liability related to uncertain tax positions proves to be more or less than the ultimate assessment, a tax expense or tax benefit would result. Interest and penalties associated with uncertain tax positions are recognized as components of the Company’s Income tax provision. Stock-Based Compensation The Company has stock-based employee compensation plans for which it incurs compensation expense. Equity Awards In connection with the Company's initial public offering (IPO), the Board approved the formation of the 2016 Incentive Award Plan (the “2016 Plan”). The 2016 Plan provides for long-term equity incentive compensation for key employees, officers and non-employee directors. A variety of discretionary awards (collectively, the “Awards”) for employees and non-employee directors are authorized under the 2016 Plan, including vested common shares, stock options, stock appreciation rights (SARs), restricted stock awards (RSAs), restricted stock units (RSUs), or other cash based or stock dividend equivalent awards. The vesting of such awards may be conditioned upon either a specified period of time or the attainment of specific performance goals as determined by the administrator of the 2016 Plan. The option price and term are also subject to determination by the administrator with respect to each grant. Option prices are generally expected to be set at the market price of our common stock at the date of grant and option terms are not expected to exceed ten years. All outstanding Awards under the 2016 Plan are equity classified awards. Stock-based compensation expense for the 2016 Plan is calculated using the fair value method on the grant date. The Company expenses stock-based compensation over the term of the award based on the vesting described in the award agreement. Stock-based compensation expense is allocated between Total direct costs, and Selling, general and administrative in the consolidated statements of operations based on the underlying classification and scope of work for the employees receiving the Awards. Net Income Per Share Basic and diluted earnings or loss per share (EPS) are computed using the two-class method, which is an earnings allocation that determines EPS for each class of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. The Company’s RSAs are considered participating securities because they are legally issued at the date of grant and holders are entitled to receive non-forfeitable dividends during the vesting term. The computation of diluted EPS includes additional common shares, such as unvested RSUs and stock options with exercise prices less than the average market price of the Company’s common stock during the period (“in-the-money options”), which would be considered outstanding. This assumes that additional shares would have to be issued in cases where the exercise price of stock options is less than the value of the common stock being acquired because the cash proceeds received from the stock option holder would not be sufficient to acquire that same number of shares. The Company does not compute diluted EPS in cases where the inclusion of such additional shares would be anti-dilutive in effect. The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31, 2023, 2022 and 2021 (in thousands, except for earnings per share): Year Ended December 31, 2023 2022 2021 Weighted-average shares: Common shares outstanding 30,722 32,388 35,862 RSAs 21 21 90 Total weighted-average shares 30,743 32,409 35,952 Earnings per common share—Basic Net income $ 282,810 $ 245,368 $ 181,848 Less: Undistributed earnings allocated to RSAs (191) (157) (458) Net income available to common shareholders—Basic $ 282,619 $ 245,211 $ 181,390 Net income per common share—Basic $ 9.20 $ 7.57 $ 5.06 Basic weighted-average common shares outstanding 30,722 32,388 35,862 Effect of diluted shares 1,119 1,283 1,835 Diluted weighted-average shares outstanding 31,841 33,671 37,697 Net income per common share—Diluted $ 8.88 $ 7.28 $ 4.81 For the years ended December 31, 2023, 2022 and 2021, the computation of diluted EPS excludes the effect of (in thousands) 0, 9 and 9 stock options, respectively, due to each respective period’s average fair value of the Company’s common stock not exceeding the exercise prices. Fair Value Measurements The Company follows accounting guidance related to fair value measurements that defines fair value, establishes a framework for measuring fair value, and establishes a hierarchy for inputs used in measuring fair value. This hierarchy maximizes the use of “observable” inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy specifies three levels based on the inputs, as follows: Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities. Level 2: Valuations based on directly observable inputs or unobservable inputs corroborated by market data. Level 3: Valuations based on unobservable inputs supported by little or no market activity representing management’s determination of assumptions of how market participants would price the assets or liabilities. The fair value of financial instruments such as cash and cash equivalents, accounts receivable and unbilled, net, accounts payable, accrued expenses, and advanced billings approximate their carrying amounts due to their short term maturities. The Company does not have any material recurring fair value measurements as of December 31, 2023 and 2022. There were no material transfers between Level 1, Level 2, or Level 3 during the years ended December 31, 2023, 2022 and 2021. Cash and Cash Equivalents, including Restricted Cash Cash and cash equivalents, including restricted cash, are invested in demand deposits and money market funds, all of which have an original maturity of three months or less. Restricted cash consists of customer funds received in advance and subject to specific restrictions, as well as amounts placed in escrow for contingent payments resulting from acquisitions or other contractual arrangements. Accounts Receivable and Unbilled, Net Accounts receivable represent amounts due from the Company’s customers who are concentrated primarily in the pharmaceutical, biotechnology, and medical device industries. Unbilled services represent revenue recognized to date that is currently not billable to the customer pursuant to contractual terms. In general, amounts become billable upon the achievement of negotiated contractual events or in accordance with predetermined payment schedules. Amounts classified to unbilled services are those billable to customers within one year from the respective balance sheet date. The Company grants credit terms to its customers prior to signing a service contract and monitors the creditworthiness of its customers on an ongoing basis. The Company maintains an allowance for doubtful accounts based on specific identification of accounts receivable that are at risk of not being collected. Uncollectible accounts receivable are written off only after all reasonable collection efforts have been exhausted. Moreover, in some cases the Company requires advance payment from its customers for a portion of the study contract price upon the signing of a service contract. These advance payments are deferred and recognized as revenue as services are performed. Inventory Inventory, which consists primarily of laboratory supplies, is valued at the lower of cost or market. Inventory is stated at purchased cost using the first-in, first out (FIFO) cost method. The inventory balance is included in Prepaid expenses and other current assets in the consolidated balance sheets. Property and Equipment Property and equipment is recorded at cost. Depreciation is provided on the straight-line method at rates adequate to allocate the cost of the applicable assets over their estimated useful lives, which is three five thirty Leases The Company enters into contracts to lease facilities and equipment to be used in its operations. At contract inception, the Company determines whether a contract contains a lease within the scope of Accounting Standard Codification Topic 842, Leases (ASC 842), and determines the appropriate classification of the lease as either operating or finance. Contracts containing operating leases are recorded on the consolidated balance sheets within Operating lease right-of-use (ROU) assets, Other current liabilities, and Operating lease liabilities. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term as of the lease commencement date. In addition, operating ROU assets also include lease payments made and exclude lease incentives and initial direct costs incurred. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term within Total direct costs and Selling, general, and administrative expenses. Variable lease costs are primarily related to adjustments for inflation, common area maintenance and property tax and are recognized within Total direct costs and Selling, general and administrative expenses. Contracts containing finance leases are recognized initially in the same manner as Operating lease ROU assets and liabilities; however, they are recorded on the consolidated balance sheets within Property and equipment, net, Other current liabilities, and Other long-term liabilities. Finance lease assets are subsequently amortized on a straight line basis over the lease term within Depreciation expense, while the lease liability is accreted within Interest expense, net utilizing the discount rate determined at lease commencement and reduced by periodic lease payments over the lease term. Currently, the Company does not have any finance leases. The discount rate utilized in determining the present value of future payments for both operating and finance leases, unless implicit in the lease contract, is determined based on the Company’s collateralized incremental borrowing rate based on the information available at lease commencement. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option as determined at lease commencement. Many of our lease agreements have both lease and non-lease components, which the Company has elected to treat as a single lease component for recognition purposes. The Company may enter into short-term leases (leases with a lease term of less than one year), which it has elected not to capitalize as assets and liabilities on the consolidated balance sheets, but instead recognizes lease payments within Total direct costs and Selling, general, and administrative expenses on a straight line basis over the lease term. Goodwill and Intangible Assets Goodwill Goodwill represents the excess of purchase price over the fair value of net assets acquired in business combinations. The carrying value of goodwill is reviewed at least annually for impairment, or as indicators of potential impairment are identified, at the reporting unit level. The reporting units are Phase I-IV clinical research services and Laboratories as of December 31, 2023. The Company performs its annual impairment tests during the fourth quarter each year, comparing the fair value of each of our reporting units with its carrying amount, inclusive of goodwill. A goodwill impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. Fair value is estimated using a combination of the income approach, a discounted cash flow analysis, and the market approach, utilizing the guideline company method. There was no indication of impairment related to goodwill based on the fourth quarter 2023 assessment. Intangible Assets The Company has an indefinite lived intangible asset related to its trade name. The carrying value of the trade name asset is reviewed at least annually for impairment, or as indicators of potential impairment are identified. The Company performs its annual impairment test in the fourth quarter each year in conjunction with its annual assessment of goodwill. The assessment consists of comparing the carrying value of the indefinite lived intangible asset to its estimated fair value, utilizing the relief from royalty method, an income approach valuation. There was no indication of impairment related to the trade name asset based on the fourth quarter 2023 assessment. Finite-lived intangible assets consist mainly of the value assigned to customer relationships and developed technologies. Finite-lived intangible assets are amortized straight-line or using an accelerated method over their estimated useful lives of fifteen years. Impairment of Long-Lived Assets Long-lived assets, primarily property and equipment and finite-lived intangible assets, are reviewed for impairment and the reasonableness of the estimated useful lives whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable or that a change in useful life may be appropriate. Recoverability for long-lived assets is determined by comparing the forecasted undiscounted cash flows of the operation to which the assets relate to the carrying amount of the assets. If the undiscounted cash flows are less than the carrying amount of the assets, then the Company reduces the carrying value of the assets to estimated fair values, which are primarily based upon forecasted discounted cash flows. Fair value of long-lived assets is determined based on a combination of discounted cash flows and market multiples. There was no indication of impairment related to long-lived assets based on the fourth quarter 2023 assessment. Advanced Billings Advanced billings represents cash received from customers, or billed amounts per an agreed upon payment schedule, in advance of services being performed or revenue being recognized. Government Assistance The Company receives government incentives from domestic and foreign governments. The incentives come in various arrangements, but consist primarily in the form of tax credits, economic development grants and property tax abatement credits. Tax credits are available to the Company, in certain jurisdictions, for qualifying research and development spend as well as for certain employment related milestone agreements. These tax credits are recorded on a jurisdiction-by-jurisdiction basis upon the first instance of the credit being monetized. Upon achieving a history of monetization in a jurisdiction, income is typically estimated as the activities or contractual requirements defined in the applicable agreements occur. Depending on the jurisdiction laws and regulations, credits can be monetized immediately or up to 3 years after the credits have been submitted to the relevant taxing agencies. The Company receives grants from certain jurisdictions for economic development projects, based on job growth, employee retention and capital investment commitments. These grant funds are reimbursed to the Company upon achieving certain milestones and recognized as eligible costs are incurred. Property tax abatement credits are available to the Company in certain jurisdictions that reduce the cost of renting or owning real and business personal property. These credits are monetized through reductions to the real estate tax liability at the time payments are due and recognized as real estate taxes are incurred. Government incentives are recorded in accordance with their purpose, net of fees incurred to monetize the benefit, as a reduction of expense within Direct service costs, excluding depreciation and amortization and Selling, general and administrative Recently Adopted Accounting Standards In November 2021, the FASB issued ASU 2021-10, "Government Assistance (Topic 832): Disclosures by Business Entities about Go |
CONTRACT ASSETS AND CONTRACT LI
CONTRACT ASSETS AND CONTRACT LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
CONTRACT ASSETS AND CONTRACT LIABILITIES | CONTRACT ASSETS AND CONTRACT LIABILITIES Contract assets and liabilities are reflected in the Company’s consolidated balance sheets within the accounts reflected below. Contract Assets Accounts receivable represent amounts due from the Company’s customers who are concentrated primarily in the pharmaceutical, biotechnology, and medical device industries. Unbilled represents revenue recognized to date that has not been billed or is not yet contractually billable to the customer. In general, amounts become billable upon the achievement of negotiated contractual events, in accordance with predetermined payment schedules or when a reimbursable expense has been incurred. Amounts classified to unbilled are those billable to customers within one year from the respective balance sheet date. Accounts receivable and unbilled, net consisted of the following at December 31 (in thousands): 2023 2022 Accounts receivable $ 275,932 $ 213,169 Unbilled receivables 22,475 40,405 Less: allowance for doubtful accounts (7) (170) Total accounts receivable and unbilled, net $ 298,400 $ 253,404 Contract Liabilities Advanced billings represents cash received from customers, or billed amounts per an agreed upon payment schedule, in advance of services being performed or revenue being recognized. During the year ended December 31, 2023, the Company recognized approximately $396.3 million of revenue that was included in the Advanced billings balance at the beginning of the year. Advanced billings consisted of the following at December 31 (in thousands): 2023 2022 Advanced billings $ 559,860 $ 462,729 A rollforward of allowance for doubtful account activity is as follows: Year Ended December 31, 2023 2022 2021 Allowance for doubtful accounts - beginning balance $ (170) $ (171) $ (346) Current year provision (3,420) — (11) Write-offs, recoveries and the effects of foreign currency exchange 3,583 1 186 Allowance for doubtful accounts - ending balance $ (7) $ (170) $ (171) |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following at December 31, (in thousands): 2023 2022 Land $ 4,833 $ 2,410 Equipment 39,927 31,851 Furniture, fixtures, and leasehold improvements 99,581 87,543 Computer hardware, software, and phone equipment 32,051 26,049 Buildings 16,419 13,594 Construction-in-progress 7,182 10,518 Property and equipment at cost 199,993 171,965 Less: Accumulated depreciation (79,404) (62,116) Property and equipment, net $ 120,589 $ 109,849 Depreciation expense was $24.1 million, $19.0 million and $16.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill Total assets reflected on the balance sheet and not remeasured to fair value on a recurring basis, identified as Level 3 measurements, as of December 31, 2023 are $694.0 million, comprised of $662.4 million of goodwill and $31.6 million of identified indefinite-lived intangible assets. Accumulated goodwill impairment losses to date amounts to $9.3 million, all of which was recognized in the year ended December 31, 2015. Intangible Assets, Net Intangible assets, net consisted of the following at December 31 (in thousands): 2023 2022 Intangible assets: Finite-lived intangible assets: Carrying amount: Customer relationships 145,051 145,051 Accumulated amortization: Customer relationships (140,888) (138,689) Total finite-lived intangible assets, net 4,163 6,362 Trade name (indefinite-lived) 31,646 31,646 Total intangible assets, net $ 35,809 $ 38,008 As of December 31, 2023, estimated amortization expense of the Company’s intangible assets for each of the next five years is as follows (in thousands): Amortization 2024 $ 1,443 2025 946 2026 620 2027 577 2028 577 $ 4,163 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses consisted of the following at December 31 (in thousands): 2023 2022 Employee compensation and benefits $ 75,822 $ 71,197 Project related reimbursable expenses 205,864 128,416 Other 11,275 10,512 Total accrued expenses $ 292,961 $ 210,125 |
SHORT-TERM DEBT
SHORT-TERM DEBT | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
SHORT-TERM DEBT | SHORT-TERM DEBT Debt consisted of the following at December 31 (in thousands): 2023 2022 Credit facility $ — $ 50,000 Short-term debt $ — $ 50,000 The estimated fair value of the Company’s debt based on Level 2 inputs using the market approach, which is primarily based on rates at which the debt is traded among financial institutions, approximates the carrying value as of December 31, 2022. On September 30, 2019 (the “Closing Date”), the Company obtained an unsecured credit facility in an aggregate principal amount up to $50.0 million (as amended from time to time, the “Credit Facility”) through its wholly owned subsidiaries, Medpace, Inc., as borrower (the “Borrower”), and Medpace IntermediateCo, Inc., as guarantor (the “Guarantor”). On the Closing Date, the Borrower and lender entered into a Loan Agreement (as it may be amended from time to time, the “Loan Agreement”) providing for the Credit Facility, and the Guarantor executed a Guaranty Agreement providing for its guarantee of the payment and performance of the obligations under the Loan Agreement. On March 15, 2022, the Company entered into Amendment No. 4 to the Loan Agreement, which increased the aggregate principal amount that may be borrowed under the facility’s line of credit to up to $250.0 million. On March 31, 2023, the Company entered into Amendment No. 5 to the Loan Agreement, which changed the aggregate principal amount that may be borrowed under the facility's line of credit to up to $150.0 million, adjusted the interest rate and fee charged on the credit facility and extended the expiration date of resolving credit note to March 29, 2024. The Credit Facility bears interest at a rate of the sum of The Secured Overnight Financing Rate (SOFR) plus 125 basis points (1.25%) or the highest of the Prime Rate, the sum of the Overnight Bank Funding Rate plus 50 basis points (0.50%) and the sum of Daily Simple SOFR plus 100 basis points (1.00%). The Loan Agreement contains other customary loan terms, representations and warranties, and affirmative and negative covenants, in each case, subject to customary limitations, exceptions and exclusions. The Loan Agreement contains certain events of default, including, among others, non-payment of principal or interest and breach of the covenants. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lessee, Operating Leases | LEASES The Company enters into leases for real estate and equipment. Real estate leases are for our corporate office space and laboratories around the world. Real estate leases have remaining lease terms of less than 1 year to 17 years. Many of the Company’s leases include options to extend the leases on a month to month basis or for set periods for up to 20 years. Many leases also include options to terminate the leases within 1 year or per other contractual terms. The components of lease expense were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Operating lease cost $ 27,919 $ 25,874 $ 23,873 Variable lease cost $ 9,455 $ 8,569 $ 6,627 Supplemental cash flow information related to the leases was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 19,829 $ 17,002 $ 16,266 Right-of-use assets obtained in exchange for lease obligations: Operating leases 23,960 30,882 33,133 Supplemental balance sheet information related to the leases was as follows at December 31 (in thousands): 2023 2022 Operating lease right-of-use assets - related parties $ 83,065 $ 86,356 Operating lease right-of-use assets - non-related parties 61,736 52,712 Operating lease right-of-use assets $ 144,801 $ 139,068 Other current liabilities - related parties 5,730 5,409 Other current liabilities - non-related parties 16,635 13,863 Other current liabilities $ 22,365 $ 19,272 Operating lease liabilities - related parties 90,568 93,393 Operating lease liabilities - non-related parties 51,554 45,474 Operating lease liabilities 142,122 138,867 Total operating lease liabilities $ 164,487 $ 158,139 Weighted Average Remaining Lease Term (years) Operating leases 10.0 11.1 Weighted Average Discount Rate Operating leases 5.6 % 5.2 % Lease payments due related to lease liabilities as of December 31, 2023 were as follows (in thousands): Related Party Non-Related Parties Total 2024 $ 11,412 $ 18,671 $ 30,083 2025 11,607 17,008 28,615 2026 11,807 14,199 26,006 2027 10,839 10,974 21,813 2028 8,609 6,124 14,733 Later years 91,669 9,548 101,217 Total lease payments 145,943 76,524 222,467 Less: imputed interest (49,645) (8,335) (57,980) Total $ 96,298 $ 68,189 $ 164,487 As of December 31, 2023, we have several additional leases with contractual obligations, which have not yet commenced, with future payments of $2.7 million. |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | SHAREHOLDERS’ EQUITY Stock-Based Compensation 2016 Incentive Award Plan On August 11, 2016 in connection with the Company's IPO, the Board approved the 2016 Incentive Award Plan (the “2016 Plan”). The 2016 Plan provides for long-term equity incentive compensation for key employees, officers and non-employee directors. A variety of discretionary awards (collectively, the “Awards”) for employees and non-employee directors are authorized under the 2016 Plan, including vested shares, stock options, stock appreciation rights (SARs), restricted stock awards (RSAs), restricted stock units (RSUs), or other cash based or stock dividend equivalent awards, which are all equity-classified instruments under the 2016 Plan. The number of shares registered and available for grant under the 2016 Plan is 6,000,000. The vesting of such awards may be conditioned upon either a specified period of time or the attainment of specific performance goals as determined by the administrator of the 2016 Plan. The option price and term are also subject to determination by the administrator with respect to each grant. Option prices are generally expected to be set at the market price of the Company’s common stock at the date of grant and option terms are not expected to exceed ten years. The Company granted 47,238 awards to employees under the 2016 Incentive Award Plan during the year ended December 31, 2023, consisting of 45,988 RSU and 1,250 stock option awards having four year vesting schedules. The Company granted an additional 848 RSU that vest in four approximately equal installments on March 31, 2024, June 30, 2024, September 30, 2024 and December 31, 2024, and 11,187 stock option awards to non-employee directors under the 2016 Incentive Award Plan, during the year ended December 31, 2023. These stock option awards will vest on the earlier of (a) the day immediately preceding the date of the first annual meeting following the date of grant and (b) the first anniversary of the date of grant, subject to the non-employee director continuing in service through the applicable vesting date. The Company granted 405,550 awards to employees under the 2016 Incentive Award Plan during the year ended December 31, 2022, consisting of 164,478 RSU and 113,838 stock option awards having four year vesting schedules and 127,234 stock option awards having two year vesting schedules. The Company granted an additional 1,117 RSU that vest in four approximately equal installments on March 31, 2023, June 30, 2023, September 30, 2023 and December 31, 2023, and 11,418 stock option awards to non-employee directors under the 2016 Incentive Award Plan, during the year ended December 31, 2022. These stock option awards will vest on the earlier of (a) the day immediately preceding the date of the first annual meeting following the date of grant and (b) the first anniversary of the date of grant, subject to the non-employee director continuing in service through the applicable vesting date. The Company granted 374,235 awards to employees under the 2016 Incentive Award Plan during the year ended December 31, 2021, consisting of 74,725 RSU and 205,086 stock option awards vesting after 4 years and six months, 27,854 RSU and 9,000 stock option awards vesting after four years, and 57,570 stock option awards vesting after two years. The Company granted an additional 10,932 stock option awards to non-employee directors under the 2016 Incentive Award Plan, during the year ended December 31, 2021. These awards will vest on the earlier of (a) the day immediately preceding the date of the first annual meeting following the date of grant and (b) the first anniversary of the date of grant, subject to the non-employee director continuing in service through the applicable vesting date. The 2016 Plan expires in 2026, except for awards then outstanding, and is administered by the Board. All Awards granted at the IPO or thereafter were or will be issued under the 2016 Plan. The Company satisfies stock option exercises and vested stock awards with treasury shares or newly issued shares. Shares available for future stock compensation grants under the 2016 Plan totaled 2.3 million at December 31, 2023 and 2022, respectively. Equity Awards Valuation Assumptions The Company determines the fair value of stock options using the Black-Scholes-Merton option pricing model (the “BSM Model”). The BSM Model is primarily affected by the fair value of the Company’s common stock (see restricted share valuation discussion below), the expected holding period for the option, expected stock price volatility over the term of the awards, the risk-free interest rate, and expected dividends. The following table sets forth the key weighted-average assumptions used in the BSM Model to calculate the fair value of options: Year Ended December 31, 2023 2022 2021 Expected holding period - years 4.1 4.7 5.0 Expected volatility 45.4% 36.5% 34.3% Risk-free interest rate 3.8% 1.9% 0.9% Expected dividend yield 0.0% 0.0% 0.0% The assumptions used in the table above reflect grant date inputs to arrive at the grant date fair values for stock options subject to equity-classified stock compensation accounting. The expected holding period represents the period of time the grants are expected to be outstanding. The Company uses the simplified method, as prescribed by accounting guidance governing such awards, to calculate the expected holding period for options granted to employees as we do not have sufficient historical evidence data to provide a reasonable basis upon which to estimate the expected holding period. For options valued by the Company for the years ended December 31, 2023, 2022 and 2021, respectively, the expected holding period is based on an average between the midpoint of the vesting date and the expiration date of the options. Due to the lack of Company specific historical and implied volatility data, our estimate of expected volatility is based upon a blended approach that utilizes the historical volatility of the Company's common stock for periods in which the Company has sufficient information and the historical volatility of a group of peer companies that are most representative of our company. The risk-free interest rate is based on the yield on U.S. Treasury obligations with remaining durations equal to the expected holding period of the options. The expected dividend yield is assumed to be zero based on recent and anticipated dividend activity. The fair value of restricted shares is based upon the market price of the Company’s common stock on the date of grant as listed on the NASDAQ. The following table summarizes the grant date fair values of stock options and restricted shares issued during the period as well as the allocation of stock-based compensation expense to Total direct costs, and Selling, general and administrative reported in the consolidated statements of operations: Year Ended December 31, 2023 2022 2021 Weighted average, grant date fair value Stock options $ 85.30 $ 47.57 $ 52.70 Restricted shares (RSAs and RSUs) $ 225.69 $ 149.87 $ 174.94 Stock-based compensation expense allocated to: Total direct costs $ 11,099 $ 11,801 $ 9,345 Selling, general, and administrative 9,417 9,611 5,124 Total stock-based compensation expense $ 20,516 $ 21,412 $ 14,469 Award Activity The following table sets forth the Company’s stock option activity: Year Ended December 31, 2023 2022 2021 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding - beginning of Period 1,629,148 $ 89.71 1,992,915 $ 68.39 2,500,727 $ 43.26 Granted 12,437 $ 211.25 252,490 $ 138.91 282,588 $ 168.34 Exercised (287,048) $ 39.64 (579,407) $ 38.10 (745,572) $ 23.67 Cancelled/Forfeited/Expired (11,250) $ 183.04 (36,850) $ 85.40 (44,828) $ 40.50 Outstanding - end of period 1,343,287 $ 100.75 1,629,148 $ 89.71 1,992,915 $ 68.39 Exercisable - end of period 901,865 $ 74.79 1,116,255 $ 60.52 1,290,627 $ 56.43 The following table sets forth the Company’s Restricted Share activity: Year Ended December 31, 2023 2022 2021 Shares/Units Shares/Units Shares/Units Outstanding and unvested - beginning of period 523,377 602,187 695,562 Granted 46,836 165,595 102,579 Vested (154,618) (197,000) (119,000) Forfeited (24,597) (47,405) (76,954) Outstanding and unvested - end of period 390,998 523,377 602,187 The following table summarizes information about stock options expected to vest, stock options exercisable, and unvested restricted share awards expected to vest at December 31, 2023: Weighted Average Stock Restricted Weighted Average Number of stock options expected to vest $ 100.75 1,343,287 — 2.7 Number of restricted shares/units expected to vest 390,998 Total expected to vest 1,343,287 390,998 Total stock options exercisable $ 74.79 901,865 — 2.1 Unrecognized compensation cost (in thousands) $ 7,727 $ 27,058 Weighted average years over which unrecognized compensation cost will be recognized 1.8 2.5 The following table sets forth the aggregate intrinsic value of stock options exercised, the fair values of awards vested, and share based liabilities settled during the respective periods (in thousands): Year Ended December 31, 2023 2022 2021 Total intrinsic value of stock options exercised $ 56,548 $ 77,527 $ 104,695 Total grant-date fair value of stock options vested $ 3,591 $ 5,228 $ 5,185 Total grant-date fair value of restricted shares vested $ 9,306 $ 9,248 $ 3,796 Total settlement date fair value of restricted shares vested $ 31,842 $ 32,802 $ 22,321 The actual tax benefits recognized related to stock-based compensation totaled $18.9 million, $23.2 million and $20.9 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2023 | |
Compensation Related Costs [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The Company provides a 401(k) plan that covers substantially all U.S. employees. Participants can elect to contribute up to 50% of their eligible earnings on a pre-tax basis, subject to Internal Revenue Service annual limitations. The U.S.-based plan offers a year-end employer matching contribution, requiring the participant to be an employee at year-end to qualify for the match. Participants with one year or more of service are eligible for the matching contribution. Participants fully vest in the employer contributions after three years of service. The employer contribution represents a percentage of a participant’s eligible compensation. The Company’s 401(k) Plan costs were $7.4 million, $5.4 million and $4.3 million during the years ended December 31, 2023, 2022 and 2021, respectively, and were allocated between Total direct costs, and Selling, general and administrative in the consolidated statements of operations. The Company has various defined contribution arrangements for eligible employees of non-U.S. entities. These defined contribution arrangements provide employees with retirement savings and life insurance benefits. The Company incurred expenses related to these arrangements of $3.3 million, $2.5 million and $1.9 million in the years ended December 31, 2023, 2022 and 2021, respectively, and were allocated between Total direct costs, and Selling, general and administrative in the consolidated statements of operations. The Company is also required to pay certain minimum statutory post-employment benefits. The Company recognizes a liability and the associated expense for these benefits when it is probable that employees are entitled to the benefit. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company files income tax returns for U.S. federal and various U.S. states, as well as various foreign jurisdictions. The liabilities for unrecognized tax benefits are carried in Other long-term liabilities on the consolidated balance sheets because the payment of cash is not anticipated within one year of the balance sheet date. The components of income before income taxes consisted of the following (in thousands): Year Ended December 31, 2023 2022 2021 Domestic $ 312,870 $ 260,564 $ 187,535 Foreign jurisdictions 22,812 22,296 14,317 Income before income taxes $ 335,682 $ 282,860 $ 201,852 Income tax provision consisted of the following (in thousands): Current Deferred Total Year ended December 31, 2023 U.S. Federal $ 64,381 $ (24,117) $ 40,264 U.S. state and local 8,848 (1,869) 6,979 Foreign jurisdictions 4,622 1,007 5,629 $ 77,851 $ (24,979) $ 52,872 Year ended December 31, 2022 U.S. Federal $ 49,991 $ (19,705) $ 30,286 U.S. state and local 7,160 (3,297) 3,863 Foreign jurisdictions 3,330 13 3,343 $ 60,481 $ (22,989) $ 37,492 Year ended December 31, 2021 U.S. Federal $ 46,138 $ (32,677) $ 13,461 U.S. state and local 8,405 (3,622) 4,783 Foreign jurisdictions 2,580 (820) 1,760 $ 57,123 $ (37,119) $ 20,004 The difference between the statutory rate for federal income tax and the effective income tax rate was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Income tax expense calculated at the federal statutory rate $ 70,493 21.0 % $ 59,401 21.0 % $ 42,389 21.0 % Effect of: State and local taxes, net of federal benefit 5,146 1.5 4,235 1.5 3,698 1.8 Tax on foreign earnings, net of tax credits and deductions (1,305) (0.4) (3,277) (1.2) (3,113) (1.5) Deferred credit (596) (0.2) (621) (0.2) (667) (0.3) Permanent items: Stock-based awards (14,692) (4.4) (18,738) (6.6) (19,042) (9.5) Deduction for FDII (9,358) (2.8) (4,983) (1.8) (4,860) (2.4) Other 63 — 595 0.2 (364) (0.2) State/Local tax credits (2,536) (0.8) (1,294) (0.5) (976) (0.5) Change in liability for uncertain tax positions 4,784 1.4 1,560 0.6 2,349 1.2 Other 873 0.5 614 0.3 590 0.3 $ 52,872 15.8 % $ 37,492 13.3 % $ 20,004 9.9 % As of December 31, 2023, the Company’s accounting position is that unremitted foreign earnings are indefinitely reinvested. Therefore, the Company has not recorded deferred foreign withholding taxes on the unremitted foreign earnings and it is not practicable to determine the amount of the additional taxes that would result if these earnings were repatriated. The undistributed earnings of foreign subsidiaries was approximately $59.2 million for the year ended December 31, 2023. Components of the Company’s net deferred tax asset (liability) included in the consolidated balance sheets consisted of the following at December 31 (in thousands): 2023 2022 Deferred tax assets: Accrued liabilities $ 27,101 $ 24,483 Depreciation and amortization 1,258 1,269 Foreign operating loss carryforward 35 30 Advanced billings 98,438 67,789 Other 2,474 1,005 Valuation allowance (1,826) (430) Total deferred tax assets 127,480 94,146 Deferred tax liabilities: Depreciation and amortization (52,443) (44,731) Prepaid expenses (1,581) (1,263) Other (1,425) (1,139) Total deferred tax liabilities (55,449) (47,133) Net deferred tax asset (liability) $ 72,031 $ 47,013 The Company has foreign operating loss carryforwards for which a deferred tax asset of less than $0.1 million has been established as of December 31, 2023. The Company does not have a valuation allowance against this deferred tax asset as of December 31, 2023 based upon its assessment that it is more likely than not that this amount will be realized. The ultimate realization of this tax benefit is dependent upon the generation of sufficient operating income in the respective tax jurisdictions. The foreign net operating loss carryforwards will expire in 2027 and 2028 if not utilized. Annual activity related to the Company’s valuation allowance is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Beginning Balance $ 430 $ 850 $ 578 Additions charged to expense 1,582 15 305 Reductions from utilization, reassessments and expirations (186) (493) (33) Remeasurement due to effect of tax reform — 58 — Ending Balance $ 1,826 $ 430 $ 850 A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Beginning Balance $ 15,947 $ 13,784 $ 10,691 Increases in tax positions for prior years — 171 1,253 Decreases in tax positions for prior years (97) (490) (223) Increases in tax positions for current year 5,382 4,871 3,098 Lapse in statute of limitations (852) (2,389) (1,035) Ending Balance $ 20,380 $ 15,947 $ 13,784 Interest and penalties associated with uncertain tax positions are recognized as components of Income tax provision in the consolidated statements of operations. There was no material change to tax-related interest and penalties during the years ended December 31, 2023, 2022 and 2021. As of December 31, 2023 and 2022, respectively, the Company has a liability for interest and penalties of $5.2 million and $3.8 million that is associated with related tax liabilities of $16.2 million and $12.7 million for uncertain tax positions. The Company operates in various foreign, state and local jurisdictions. The number of tax years for which the statute of limitations remains open for foreign, state and local jurisdictions varies by jurisdiction and is approximately four years (2019 through 2023). For federal tax purposes, the Company’s open tax years are 2020 through 2023. |
COMMITMENTS, CONTINGENCIES, AND
COMMITMENTS, CONTINGENCIES, AND GUARANTEES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES, AND GUARANTEES | COMMITMENTS, CONTINGENCIES, AND GUARANTEES Legal Proceedings Medpace periodically becomes involved in various claims and lawsuits that are incidental to its business. Management believes, after consultation with counsel, that no matters currently pending would, in the event of an adverse outcome, have a material impact on the Company’s consolidated balance sheets, statements of operations, or cash flows for the years ended December 31, 2023, 2022 and 2021. Purchase Commitments The Company has several minimum purchase commitments for project related supplies totaling $17.2 million as of December 31, 2023. In return for the commitment, Medpace receives preferential pricing. The commitments expire at various times through 2029. |
MISCELLANEOUS (EXPENSE) INCOME,
MISCELLANEOUS (EXPENSE) INCOME, NET | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
MISCELLANEOUS (EXPENSE) INCOME, NET | MISCELLANEOUS (EXPENSE) INCOME, NET Miscellaneous (expense) income, net consisted of the following (in thousands): Year Ended December 31, 2023 2022 2021 Net (loss) gain on foreign-currency transactions $ (1,929) $ 3,859 $ 2,779 Other income 1,274 3,209 563 Miscellaneous (expense) income, net $ (655) $ 7,068 $ 3,342 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Employee Loans The Company periodically extends short term loans or advances to employees, typically upon commencement of employment. Total receivables as a result of these employee advances of $0.3 million existed at December 31, 2023 and 2022, respectively, and are included in the Prepaid expenses and other current assets and Other assets line items of the consolidated balance sheets, respectively, depending on the contractual repayment date. Service Agreements LIB Therapeutics LLC and subsidiaries (“LIB”) Certain executives and employees of the Company, including the chief executive officer, are members of LIB’s board of managers and/or have equity investments in LIB. The Company entered into a MSA dated November 24, 2015 with LIB, a company that engages in research, development, marketing and commercialization of pharmaceutical drugs. Subsequently, the Company and LIB have entered into several task orders for the Company to perform clinical trial related services. The Company recognized total revenue from LIB of $43.7 million, $40.5 million and $11.8 million during the years ended December 31, 2023, 2022 and 2021, respectively, in the Company’s consolidated statement of operations. As of December 31, 2023 and 2022, the Company had, from LIB, Advanced billings of $7.6 million and $7.4 million in the consolidated balance sheets, respectively. In addition, the Company had Accounts receivable and unbilled, net from LIB of $0.5 million and $5.5 million in the consolidated balance sheets at December 31, 2023 and 2022, respectively. The Company had Other current liabilities with LIB of $12.5 million in the consolidated balance sheets at December 31, 2022. CinRX Pharma, subsidiaries and affiliates (“CinRx”) Certain executives and employees of the Company, including the chief executive officer, are members of CinRx’s board of managers and/or have equity investments in CinRx, a biotech company. The Company and CinRx have entered into several task orders for the Company to perform clinical trial related services. During the years ended December 31, 2023, 2022 and 2021, the Company recognized total revenue from CinRx of $15.8 million, $15.0 million and $22.7 million in the Company’s consolidated statements of operations, respectively. As of December 31, 2023 and 2022, the Company had Advanced billings from CinRx of $2.5 million and $1.4 million in the consolidated balance sheets, respectively. As of December 31, 2023 and 2022 the Company had Accounts receivable and unbilled, net from CinRx of $1.9 million and $2.2 million in the consolidated balance sheets, respectively. The Company had Prepaid expenses and other current assets with CinRX of $0.2 million in the consolidated balance sheets at December 31, 2023. Certain affiliates of CinRx included in previous reported quarters are no longer disclosed due to changes in the affiliate relationship. The Summit Hotel (“The Summit”) The Summit Hotel, located on the Medpace campus, is owned by the chief executive officer. Medpace incurs travel lodging and meeting expenses at The Summit. During the years ended December 31, 2023, 2022 and 2021, Medpace incurred expenses of $0.4 million, $0.3 million and $0.3 million at The Summit, respectively. Leased Real Estate Campus Headquarters Leases The Company entered into an operating lease for the occupancy of office space in a building in Cincinnati, Ohio with an entity that is wholly owned by the chief executive officer of the Company. The Company has evaluated its relationship with the related party and concluded that the related party is not a variable interest entity because the Company has no direct ownership interest or relationship other than the leases. The lease was renewed in the first quarter of fiscal year 2023 for a term of ten years through December 2032 with a renewal option for one 10-year term at prevailing market rates. The Company pays rent, taxes, insurance, and maintenance expenses that arise from the use of the properties. Annual base rent for the corporate headquarters allows for adjustments to the rental rate annually for increases in the consumer price index. The Company has determined that the lease is an operating lease. Operating lease cost recognized for the years ended December 31, 2023, 2022 and 2021 was $2.6 million, $2.3 million and 2.1 million, respectively, and was allocated between Total direct costs, and Selling, general and administrative in the consolidated statements of operations. The Operating lease right-of-use assets at December 31, 2023 and 2022 were $19.3 million and $18.2 million in the consolidated balance sheets, respectively. The current and long-term portions of the lease liabilities at December 31, 2023 were $1.5 million and $18.1 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the consolidated balance sheets. The current and long-term portions of the lease liabilities at December 31, 2022 were $1.5 million and $16.7 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the consolidated balance sheets. In 2018, Medpace, Inc. entered into a multi-year lease agreement governing future occupancy of additional office space in Cincinnati, Ohio with an entity that is wholly owned by the Company’s chief executive officer and certain members of his immediate family. The Company began to occupy the premises in the second quarter of fiscal year 2020. The lease expires in 2040 and the Company has two 10-year options to extend the term of the lease. The Company pays rent, taxes, insurance, and maintenance expenses that arise from the use of the property. Annual base rent for the corporate headquarters allows for adjustments to the rental rate annually for increases in the consumer price index. The Company has determined that the lease is an operating lease. Operating lease cost recognized for the years ended December 31, 2023, 2022 and 2021 was $5.7 million, respectively. The operating lease cost was allocated between Total direct costs and Selling, general and administrative in the consolidated statements of operations. The Operating lease right-of-use assets at December 31, 2023 and 2022 were $51.9 million and $53.5 million in the consolidated balance sheets, respectively. The current and long-term portions of the lease liabilities at December 31, 2023 were $1.3 million and $63.5 million, respectively. The current and long-term portions of the lease liabilities at December 31, 2022 were $1.1 million and $64.8 million, respectively and were recognized in Other current liabilities and Operating lease liabilities in the consolidated balance sheets. The Company entered into two multi-year lease agreements governing the occupancy of space of two buildings in Cincinnati, Ohio with an entity that is wholly owned by the Company’s chief executive officer and certain members of his immediate family. The Company assumed occupancy in 2012 and the leases expire in 2027 with the Company having one 10-year option to extend the lease term. The Company pays rent, taxes, insurance, and maintenance expenses that arise from the use of the property. Annual base rent for the corporate headquarters allows for adjustments to the rental rate annually for increases in the consumer price index. The Company has determined that the leases are operating leases. Operating lease cost recognized for the years ended December 31, 2023, 2022 and 2021 was $3.6 million, respectively. The lease cost was allocated between Total direct costs and Selling, general and administrative in the consolidated statements of operations. The Operating lease right-of-use assets at December 31, 2023 and 2022 were $11.9 million and $14.6 million, respectively, in the consolidated balance sheets. The current and long-term portions of the lease liabilities at December 31, 2023 were $3.0 million and $8.9 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the consolidated balance sheets. The current and long-term portions of the lease liabilities at December 31, 2022 were $2.8 million and $11.9 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the consolidated balance sheets. Travel Services The Company incurs expenses for travel services for company executives provided by private aviation charter companies which is a company controlled by the chief executive officer of the Company (each a “private aviation charter”). The Company may contract directly with the private aviation charter for the use of its aircraft or indirectly through a third party aircraft management and jet charter company (the “Aircraft Management Company”). The travel services provided are primarily for business purposes, with certain personal travel paid for as part of the executives’ compensation arrangements. The Aircraft Management Company also makes the private aviation charter aircraft available to third parties. The Company incurred travel expenses of $2.0 million, $2.3 million and $1.3 million during the years ended December 31, 2023, 2022 and 2021, respectively. These travel expenses are recorded in Selling, general and administrative in the Company’s consolidated statements of operations. As of December 31, 2023 and 2022, the Company had Accounts payable to the Aircraft Management Company of $0.4 million and $0.3 million, respectively, in the consolidated balance sheets. |
ENTITY WIDE DISCLOSURES
ENTITY WIDE DISCLOSURES | 12 Months Ended |
Dec. 31, 2023 | |
Entity Wide Disclosures [Abstract] | |
ENTITY WIDE DISCLOSURES | ENTITY WIDE DISCLOSURES Operations By Geographic Location The Company conducts operations in North America, Europe, Asia, South America, Africa and Australia through wholly-owned subsidiaries and representative sales offices. The Company attributes revenue to geographical locations based upon the location of the contracting entity. For the years ended December 31, 2023, 2022 and 2021, total revenue attributable to the U.S. represented approximately 98%, 98% and 97%, respectively, of total consolidated total revenue. The following table summarizes property and equipment, net by geographic region and is further broken down to show countries which account for 10% or more of total as of December 31, if any (in thousands): 2023 2022 Property and equipment, net: United States $ 77,850 $ 81,217 Europe Belgium 18,190 11,778 Other 8,772 9,294 Total Europe 26,962 21,072 Asia-Pacific 14,472 6,223 Other 1,305 1,337 Total property and equipment, net $ 120,589 $ 109,849 Revenue by Category The following table disaggregates the Company’s revenue by major source (in thousands): Years Ended December 31, 2023 2022 2021 Therapeutic Area Oncology $ 587,097 $ 467,796 $ 362,846 Other 404,844 296,914 267,415 Metabolic 376,842 244,682 159,900 Cardiology 193,690 174,634 119,692 AVAI 163,312 118,031 110,976 Central Nervous System 160,057 157,939 121,548 Total revenue $ 1,885,842 $ 1,459,996 $ 1,142,377 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income | $ 282,810 | $ 245,368 | $ 181,848 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | During the three months ended December 31, 2023, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K, except as described in the table below: Action Date Trading Arrangement Total Shares to be Purchased or Sold Duration/Expiration Date Rule 10b5-1* Non-Rule 10b5-1** Medpace Investors, LLC [1] Adopt November 14, 2023 [2] X Up to 25,000 shares to be sold Good until cancelled Medpace Investors, LLC [1] Adopt November 15, 2023 [3] X Up to 50,000 shares to be sold Good until cancelled Medpace Investors, LLC [1] Adopt November 17, 2023 [4] X Up to 50,000 shares to be sold Good until cancelled Medpace Investors, LLC [1] Adopt November 20, 2023 [5] X Up to 50,000 shares to be sold Good until cancelled Medpace Investors, LLC [1] Adopt November 21, 2023 [6] X Up to 50,000 shares to be sold Good until cancelled Medpace Investors, LLC [1] Adopt November 27, 2023 [7] X Up to 50,000 shares to be sold Good until cancelled Medpace Investors, LLC [1] Adopt November 29, 2023 [8] X Up to 50,000 shares to be sold Good until cancelled Susan E. Burwig, Executive Vice President, Operations Adopt December 14, 2023 [9] X Up to 12,400 shares to be sold The earlier of until cancelled or 180 days from the placement of the limit order * Intended to satisfy the affirmative defense of Rule 10b5-1(c). ** Not intended to satisfy the affirmative defense of Rule 10b5-1(c). [1] August J. Troendle, Chief Executive Officer and Chairman of the Board of the Company, is the sole manager and controlling unit holder of Medpace Investors, LLC (“MPI”) and has sole voting and investment control with respect to the securities held by MPI. Mr. Troendle may be deemed to indirectly beneficially own the securities of the Company held by MPI but disclaims beneficial ownership of such securities except to the extent of his pecuniary interest therein . [2] On November 14, 2023, MPI placed a limit order to sell up to 25,000 shares that were previously acquired through open market purchases. [3] On November 15, 2023, MPI placed a limit order to sell up to 50,000 shares that were previously acquired through open market purchases. [4] On November 17, 2023, MPI placed a limit order to sell up to 50,000 shares that were previously acquired through open market purchases. [5] On November 20, 2023, MPI placed a limit order to sell up to 50,000 shares that were previously acquired through open market purchases. [6] On November 21, 2023, MPI placed a limit order to sell up to 50,000 shares that were previously acquired through open market purchases. [7] On November 27, 2023, MPI placed a limit order to sell up to 50,000 shares that were previously acquired through open market purchases. [8] On November 29, 2023, MPI placed a limit order to sell up to 50,000 shares that were previously acquired through open market purchases. [9] On December 14, 2023, Ms. Burwig placed a limit order to sell up to 12,400 shares that were previously acquired through an exercise of stock options . | |
Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
August J. Troendle [Member] | ||
Trading Arrangements, by Individual | ||
Name | August J. Troendle | |
Title | Chief Executive Officer and Chairman of the Board of the Company | |
Susan E. Burwig [Member] | ||
Trading Arrangements, by Individual | ||
Name | Susan E. Burwig | |
Title | Executive Vice President, Operations | |
Non-Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 14, 2023 | |
Aggregate Available | 12,400 | 12,400 |
Trading Arrangement With MPI Adopted On Nov 14, 2023 [Member] | August J. Troendle [Member] | ||
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 14, 2023 | |
Aggregate Available | 25,000 | 25,000 |
Trading Arrangement With MPI Adopted On Nov 15, 2023 [Member] | August J. Troendle [Member] | ||
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 15, 2023 | |
Aggregate Available | 50,000 | 50,000 |
Trading Arrangement With MPI Adopted On Nov 17, 2023 [Member] | August J. Troendle [Member] | ||
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 17, 2023 | |
Aggregate Available | 50,000 | 50,000 |
Trading Arrangement With MPI Adopted On Nov 20, 2023 [Member] | August J. Troendle [Member] | ||
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 20, 2023 | |
Aggregate Available | 50,000 | 50,000 |
Trading Arrangement With MPI Adopted On Nov 21, 2023 [Member] | August J. Troendle [Member] | ||
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 21, 2023 | |
Aggregate Available | 50,000 | 50,000 |
Trading Arrangement With MPI Adopted On Nov 27, 2023 [Member] | August J. Troendle [Member] | ||
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 27, 2023 | |
Aggregate Available | 50,000 | 50,000 |
Trading Arrangement With MPI Adopted On Nov 29, 2023 [Member] | August J. Troendle [Member] | ||
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 29, 2023 | |
Aggregate Available | 50,000 | 50,000 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Share Repurchases | Repurchases under the share repurchase programs are executed in the open market or negotiated transactions under trading plans established pursuant to Rule 10b5-1. The Company constructively retires the repurchased shares associated with these approved share repurchase programs, except for a small portion which were retained as Treasury Shares on the consolidated statements of shareholders' equity. Retired share repurchase amounts paid in excess of par value are reflected within Accumulated deficit/Retained earnings in the Company’s consolidated balance sheets. The repurchase programs may be suspended or discontinued at any time without notice. |
Principles of Consolidation and Presentation | Principles of Consolidation and Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) and include the accounts and operations of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. Significant items that are subject to management estimates and assumptions include revenue, net, allowances for doubtful accounts, acquisition purchase price allocations, long-lived asset impairment and useful lives, exit liabilities, stock-based compensation, uncertain income tax positions and contingencies. |
Reportable Segments | Reportable Segments The Company emphasizes its full service outsourcing model, providing services focused on the development, management and execution of clinical trials. As part of this full service approach, the Company utilizes centralized systems, customer interface technology, support functions and processes that cross service offerings and align resources to deliver efficient clinical trial services. Given the full service approach, the chief executive officer, who is the chief operating decision maker (“CODM”) assesses the allocation of resources based on key metrics including revenue, backlog, and net awards by service offering and consolidated profitability and consolidated cash flows. Based on the Company’s full service model, internal management and reporting structure, and key metrics used by the CODM to make resource allocation decisions, management has determined that the Company’s operations consist of a single operating segment. Therefore, results of operations are presented as a single reportable segment. |
Foreign Currencies | Foreign Currencies Assets and liabilities recorded in foreign currencies on foreign subsidiary financial statements are translated at the exchange rate on the balance sheet date, while equity accounts are translated at historical exchange rates. Revenue and expenses are recorded at average rates of exchange during the year. Translation adjustments are recorded to Accumulated other comprehensive loss in the consolidated statements of shareholders’ equity and consolidated statements of comprehensive income. |
Revenue Recognition | Revenue Recognition The Company generally enters into contracts with customers to provide services ranging in duration from a few months to several years. The contract terms generally provide for payments based on a fixed fee or unit-of-service arrangement. The Company accounts for revenue in accordance with ASC 606, Revenue from Contracts with Customers. Revenue on contracts is recognized when or as the Company satisfies the contract performance obligations, at the amount that reflects the Company’s cumulative progress toward delivery of the performance obligation. This progress assessment is applied to the amount of consideration to which the Company expects to be paid for delivery of the performance obligation. The Company’s performance obligations are generally satisfied over time and related revenue is recognized as services are provided to meet these obligations. Contract Assumptions An arrangement is accounted for as a contract within the scope of ASC 606 when the Company and its customers approve the contract, are committed to perform their respective obligations, each party can identify its rights regarding the goods or services to be transferred, commercial substance is present, and it is probable that the Company will collect substantially all of the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. For the Company’s services to meet this criteria, contracts generally need to be written, pending regulatory hurdles required to commence work must be cleared, the study protocol must be completed, the customer must have adequate funding or reasonable path to funding to execute the contracted portion of the study, and the study must be actively moving forward. Once these criteria have been met, it is deemed that the Company and its customers are committed to perform their respective obligations. Depending on the timing of when these criteria are met, revenue recognition may vary significantly on a period over period basis. Accounting for contracts performed over a period of time involves the use of various assumptions to estimate total contract revenue and costs. The Company estimates expected costs to complete a contract and recognizes contracted revenue over the life of the contract as those costs are incurred. Cost estimates are based on a detailed project budget and are developed based on many variables, including, but not limited to, the scope of the work, the complexity of the study, the participating geographic locations and the Company’s historical experience. To assist with the estimation of costs expected at completion over the life of a project, regular contract reviews are performed in which performance to date is compared to the most current estimate to complete assumptions. The reviews include an assessment of costs incurred to date compared to expectations based on budget assumptions and other circumstances specific to the project. The total estimated costs necessary to complete is updated and any revisions to the existing cost estimate results in cumulative adjustments to the amount of revenue recognized in the period in which the revisions are identified. In the case of cost estimates related to activities legally contracted as reimbursable in nature, including but not limited to investigator fee activity, these estimates also influence the Company’s assumed contract value and assumed remaining performance obligations. Because of the uncertainties inherent in estimating the costs necessary to fulfill contractual obligations, it is possible that estimates may change in the near term, resulting in a material change in revenue reported. Contracts generally provide for pricing modifications upon scope of work changes. The Company recognizes revenue, at an amount to which it expects to be entitled, related to work performed in connection with scope changes when the underlying services are performed and a binding contractual commitment has been established with the customer. If the Company’s customers do not agree to contract changes upon changes in the Company’s scope of work, the Company could be exposed to cost overruns and reduced contract profitability. Costs are not deferred in anticipation of contracts being awarded or amendments being finalized, but are expensed as incurred. Most contracts are terminable by the customer, either immediately or according to advance notice terms specified within the contracts. These contracts require payment of fees for services rendered through the date of termination and may require payment for subsequent services necessary to conclude the study or close out the contract. Final settlement amounts are agreed to with the customer based on remaining work to be performed. These amounts are included in revenue when the Company believes the amount can be estimated reliably and its realization is probable. In evaluating the probability of recognition, the Company considers the contractual basis for the settlement amount and the objective evidence available to support the amount. Certain contracts contain volume rebate arrangements with our customers that provide for rebates if certain specified spending thresholds are met. These obligations are considered as a reduction in revenue when it appears probable that the arrangement thresholds will be met, which can be at contract inception. Total revenue is presented net of rebates of $12.1 million, $7.9 million and $7.2 million in the consolidated statements of operations during the years ended December 31, 2023, 2022 and 2021, respectively. The Company occasionally enters into incentive fee arrangements with customers that provide for additional compensation if certain defined contractual milestones or performance thresholds are met. These additional fees are included in the estimated transaction price when there is a basis to reasonably estimate the amount of the fee and when achievement of the incentive milestone is deemed probable. These estimates are based on anticipated performance, the Company’s best judgment at the time or ultimately, upon achievement of the threshold or milestone. The Company records revenue net of any tax assessments by governmental authorities that are imposed and concurrent with specific revenue generating transactions. Performance Obligations Substantially all of the Company’s contracts consist of a single performance obligation, as the promise to transfer the individual services described in the contracts are not separately identifiable from other promises in the contracts, and therefore not distinct. Revenue recognition is determined by assessing the progress of performance completed or delivered to date compared to total services to be delivered under the terms of the arrangement. The measures utilized to assess progress on the satisfaction of performance are specific to the performance obligation identified in the contract. For the majority of the Company’s contract performance obligations, it utilizes the input method of cost to cost to measure progress, as the Company has determined that it is the most consistent measure of progress among contract tasks and represents the most faithful depiction of the transfer of services over the contract life. Under this method, the Company determines cost incurred to date for the services it provides compared to the total estimated costs at completion. For certain other contractual performance obligations, the Company has determined that an output method is the best measure of progress. These relate to certain unitized contracts, and the Company recognizes revenue in the period in which the unit is delivered compared to total contracted units. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that subject the Company to credit risk primarily consist of cash and cash equivalents and accounts receivable. The cash and cash equivalent balances are held and maintained with financial institutions with reputable credit ratings and, consequently, the Company believes that such funds are subject to minimal credit risk. |
Costs and Expenses | Costs and Expenses The Company incurs costs associated with service delivery including direct labor and related employee benefits, laboratory supplies, and other expenses. These costs are recorded in Direct service costs, excluding depreciation and amortization as a component of Total direct costs in the accompanying consolidated statements of operations. In addition, the Company incurs expenses on behalf of its customers for various project expenditures including, but not limited to, investigator site payments, travel, meetings, printing, and shipping and handling fees that are reimbursed by its customers at cost. These costs are included in Reimbursable out-of-pocket expenses as a component of Total direct costs in the accompanying consolidated statements of operations. Total direct costs are expensed as incurred and are not deferred in anticipation of contracts being awarded or finalization of changes in scope. Selling, general and administrative includes administrative payroll and related employee benefits, sales and marketing expenses, administrative travel, and other expenses not directly related to service delivery. Rent, utilities, supplies, and software license expenses are allocated between Total direct costs, and Selling, general and administrative based on the estimated contribution among service delivery and support function efforts on a percentage basis. Depreciation and amortization is reported separately in the accompanying consolidated statements of operations. Costs of sales and marketing activities not subject to recovery pursuant to customer contracts, such as feasibility assessments and negotiation of contracts, are expensed as incurred and recorded as a component of Selling, general and administrative in the accompanying consolidated statements of operations. |
Income Taxes | Income Taxes The Company’s consolidated US federal income tax return is comprised of its US subsidiaries, its foreign branches and certain foreign subsidiaries. The Company provides for income taxes on all transactions that have been recognized in the consolidated financial statements in accordance with accounting guidance governing income tax accounting. Accordingly, the impact of changes in income tax laws on deferred tax assets and deferred tax liabilities are recognized in net earnings in the period during which such changes are enacted. The Company records deferred tax assets and liabilities based on temporary differences between the financial statement bases and tax bases of assets and liabilities. Deferred tax assets are recorded for tax benefit carryforwards using tax rates anticipated to be in effect in the year in which the temporary differences are expected to reverse. If it does not appear more likely than not that the full value of a deferred tax asset will be realized, the Company records a valuation allowance against the deferred tax asset, with an offsetting charge to the Company’s income tax provision or benefit. The value of the Company’s deferred tax assets is estimated based on, among other things, the Company’s ability to generate a sufficient level of future taxable income. In estimating future taxable income, the Company has considered both positive and negative evidence, such as historical and forecasted results of operations, and has considered the implementation of prudent and feasible tax planning strategies. The Company’s accounting position is that unremitted foreign earnings are indefinitely reinvested. Therefore, the Company has not recorded deferred foreign withholding taxes on the unremitted foreign earnings. Refer to Note 11 for further information regarding this assertion. The Company follows accounting guidance related to accounting for uncertainty in income taxes which requires significant judgment in determining what constitutes an individual tax position as well as assessing the possible outcome of each tax position. Changes in judgments as to recognition or measurement of tax positions can materially affect the estimate of the effective tax rate, and, consequently, the Company’s consolidated financial results. The Company considers many factors when evaluating and estimating tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. In addition, the calculation of tax liabilities involves dealing with uncertainties in the application of complex tax regulations in a multitude of jurisdictions. The Company determines its liability for uncertain tax positions globally. If the payment of these amounts ultimately proves to be unnecessary, the reversal of liabilities would result in tax benefits being recognized in the period when it is determined the liabilities are no longer necessary. If the calculation of the liability related to uncertain tax positions proves to be more or less than the ultimate assessment, a tax expense or tax benefit would result. Interest and penalties associated with uncertain tax positions are recognized as components of the Company’s Income tax provision. |
Stock-Based Compensation | Stock-Based Compensation The Company has stock-based employee compensation plans for which it incurs compensation expense. Equity Awards In connection with the Company's initial public offering (IPO), the Board approved the formation of the 2016 Incentive Award Plan (the “2016 Plan”). The 2016 Plan provides for long-term equity incentive compensation for key employees, officers and non-employee directors. A variety of discretionary awards (collectively, the “Awards”) for employees and non-employee directors are authorized under the 2016 Plan, including vested common shares, stock options, stock appreciation rights (SARs), restricted stock awards (RSAs), restricted stock units (RSUs), or other cash based or stock dividend equivalent awards. The vesting of such awards may be conditioned upon either a specified period of time or the attainment of specific performance goals as determined by the administrator of the 2016 Plan. The option price and term are also subject to determination by the administrator with respect to each grant. Option prices are generally expected to be set at the market price of our common stock at the date of grant and option terms are not expected to exceed ten years. All outstanding Awards under the 2016 Plan are equity classified awards. |
Net Income Per Share | Net Income Per Share Basic and diluted earnings or loss per share (EPS) are computed using the two-class method, which is an earnings allocation that determines EPS for each class of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. The Company’s RSAs are considered participating securities because they are legally issued at the date of grant and holders are entitled to receive non-forfeitable dividends during the vesting term. The computation of diluted EPS includes additional common shares, such as unvested RSUs and stock options with exercise prices less than the average market price of the Company’s common stock during the period (“in-the-money options”), which would be considered outstanding. This assumes that additional shares would have to be issued in cases where the exercise price of stock options is less than the value of the common stock being acquired because the cash proceeds received from the stock option holder would not be sufficient to acquire that same number of shares. The Company does not compute diluted EPS in cases where the inclusion of such additional shares would be anti-dilutive in effect. |
Fair Value Measurements | Fair Value Measurements The Company follows accounting guidance related to fair value measurements that defines fair value, establishes a framework for measuring fair value, and establishes a hierarchy for inputs used in measuring fair value. This hierarchy maximizes the use of “observable” inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy specifies three levels based on the inputs, as follows: Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities. Level 2: Valuations based on directly observable inputs or unobservable inputs corroborated by market data. Level 3: Valuations based on unobservable inputs supported by little or no market activity representing management’s determination of assumptions of how market participants would price the assets or liabilities. The fair value of financial instruments such as cash and cash equivalents, accounts receivable and unbilled, net, accounts payable, accrued expenses, and advanced billings approximate their carrying amounts due to their short term maturities. The Company does not have any material recurring fair value measurements as of December 31, 2023 and 2022. There were no material transfers between Level 1, Level 2, or Level 3 during the years ended December 31, 2023, 2022 and 2021. |
Cash and Cash Equivalents, including Restricted Cash | Cash and Cash Equivalents, including Restricted Cash |
Accounts Receivable and Unbilled, Net | Accounts Receivable and Unbilled, Net Accounts receivable represent amounts due from the Company’s customers who are concentrated primarily in the pharmaceutical, biotechnology, and medical device industries. Unbilled services represent revenue recognized to date that is currently not billable to the customer pursuant to contractual terms. In general, amounts become billable upon the achievement of negotiated contractual events or in accordance with predetermined payment schedules. Amounts classified to unbilled services are those billable to customers within one year from the respective balance sheet date. The Company grants credit terms to its customers prior to signing a service contract and monitors the creditworthiness of its customers on an ongoing basis. The Company maintains an allowance for doubtful accounts based on specific identification of accounts receivable that are at risk of not being collected. Uncollectible accounts receivable are written off only after all reasonable collection efforts have been exhausted. Moreover, in some cases the Company requires advance payment from its customers for a portion of the study contract price upon the signing of a service contract. These advance payments are deferred and recognized as revenue as services are performed. |
Inventory | Inventory Inventory, which consists primarily of laboratory supplies, is valued at the lower of cost or market. Inventory is stated at purchased cost using the first-in, first out (FIFO) cost method. The inventory balance is included in Prepaid expenses and other current assets in the consolidated balance sheets. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost. Depreciation is provided on the straight-line method at rates adequate to allocate the cost of the applicable assets over their estimated useful lives, which is three five thirty |
Leases | Leases The Company enters into contracts to lease facilities and equipment to be used in its operations. At contract inception, the Company determines whether a contract contains a lease within the scope of Accounting Standard Codification Topic 842, Leases (ASC 842), and determines the appropriate classification of the lease as either operating or finance. Contracts containing operating leases are recorded on the consolidated balance sheets within Operating lease right-of-use (ROU) assets, Other current liabilities, and Operating lease liabilities. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term as of the lease commencement date. In addition, operating ROU assets also include lease payments made and exclude lease incentives and initial direct costs incurred. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term within Total direct costs and Selling, general, and administrative expenses. Variable lease costs are primarily related to adjustments for inflation, common area maintenance and property tax and are recognized within Total direct costs and Selling, general and administrative expenses. Contracts containing finance leases are recognized initially in the same manner as Operating lease ROU assets and liabilities; however, they are recorded on the consolidated balance sheets within Property and equipment, net, Other current liabilities, and Other long-term liabilities. Finance lease assets are subsequently amortized on a straight line basis over the lease term within Depreciation expense, while the lease liability is accreted within Interest expense, net utilizing the discount rate determined at lease commencement and reduced by periodic lease payments over the lease term. Currently, the Company does not have any finance leases. The discount rate utilized in determining the present value of future payments for both operating and finance leases, unless implicit in the lease contract, is determined based on the Company’s collateralized incremental borrowing rate based on the information available at lease commencement. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option as determined at lease commencement. Many of our lease agreements have both lease and non-lease components, which the Company has elected to treat as a single lease component for recognition purposes. The Company may enter into short-term leases (leases with a lease term of less than one year), which it has elected not to capitalize as assets and liabilities on the consolidated balance sheets, but instead recognizes lease payments within Total direct costs and Selling, general, and administrative expenses on a straight line basis over the lease term. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill represents the excess of purchase price over the fair value of net assets acquired in business combinations. The carrying value of goodwill is reviewed at least annually for impairment, or as indicators of potential impairment are identified, at the reporting unit level. The reporting units are Phase I-IV clinical research services and Laboratories as of December 31, 2023. The Company performs its annual impairment tests during the fourth quarter each year, comparing the fair value of each of our reporting units with its carrying amount, inclusive of goodwill. A goodwill impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. Fair value is estimated using a combination of the income approach, a discounted cash flow analysis, and the market approach, utilizing the guideline company method. There was no indication of impairment related to goodwill based on the fourth quarter 2023 assessment. Intangible Assets The Company has an indefinite lived intangible asset related to its trade name. The carrying value of the trade name asset is reviewed at least annually for impairment, or as indicators of potential impairment are identified. The Company performs its annual impairment test in the fourth quarter each year in conjunction with its annual assessment of goodwill. The assessment consists of comparing the carrying value of the indefinite lived intangible asset to its estimated fair value, utilizing the relief from royalty method, an income approach valuation. There was no indication of impairment related to the trade name asset based on the fourth quarter 2023 assessment. Finite-lived intangible assets consist mainly of the value assigned to customer relationships and developed technologies. Finite-lived intangible assets are amortized straight-line or using an accelerated method over their estimated useful lives of fifteen years. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, primarily property and equipment and finite-lived intangible assets, are reviewed for impairment and the reasonableness of the estimated useful lives whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable or that a change in useful life may be appropriate. Recoverability for long-lived assets is determined by comparing the forecasted undiscounted cash flows of the operation to which the assets relate to the carrying amount of the assets. If the undiscounted cash flows are less than the carrying amount of the assets, then the Company reduces the carrying value of the assets to estimated fair values, which are primarily based upon forecasted discounted cash flows. Fair value of long-lived assets is determined based on a combination of discounted cash flows and market multiples. There was no indication of impairment related to long-lived assets based on the fourth quarter 2023 assessment. |
Advanced Billings | Advanced Billings Advanced billings represents cash received from customers, or billed amounts per an agreed upon payment schedule, in advance of services being performed or revenue being recognized. |
Government Assistance | Government Assistance The Company receives government incentives from domestic and foreign governments. The incentives come in various arrangements, but consist primarily in the form of tax credits, economic development grants and property tax abatement credits. Tax credits are available to the Company, in certain jurisdictions, for qualifying research and development spend as well as for certain employment related milestone agreements. These tax credits are recorded on a jurisdiction-by-jurisdiction basis upon the first instance of the credit being monetized. Upon achieving a history of monetization in a jurisdiction, income is typically estimated as the activities or contractual requirements defined in the applicable agreements occur. Depending on the jurisdiction laws and regulations, credits can be monetized immediately or up to 3 years after the credits have been submitted to the relevant taxing agencies. The Company receives grants from certain jurisdictions for economic development projects, based on job growth, employee retention and capital investment commitments. These grant funds are reimbursed to the Company upon achieving certain milestones and recognized as eligible costs are incurred. Property tax abatement credits are available to the Company in certain jurisdictions that reduce the cost of renting or owning real and business personal property. These credits are monetized through reductions to the real estate tax liability at the time payments are due and recognized as real estate taxes are incurred. Direct service costs, excluding depreciation and amortization and Selling, general and administrative |
Recently Adopted Accounting Standards and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Standards In November 2021, the FASB issued ASU 2021-10, "Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance" which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity's financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. The guidance is effective for annual periods beginning after December 15, 2021, with early adoption permitted. The Company adopted this standard on a prospective basis in the fourth quarter of 2022. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" which requires entities to enhance disclosures around segment reporting. The guidance is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the effect this standard will have on its consolidated financial statements and related disclosures. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Reconciliation of Denominators and Additional Shares that are Excluded from the Calculation of EPS | The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31, 2023, 2022 and 2021 (in thousands, except for earnings per share): Year Ended December 31, 2023 2022 2021 Weighted-average shares: Common shares outstanding 30,722 32,388 35,862 RSAs 21 21 90 Total weighted-average shares 30,743 32,409 35,952 Earnings per common share—Basic Net income $ 282,810 $ 245,368 $ 181,848 Less: Undistributed earnings allocated to RSAs (191) (157) (458) Net income available to common shareholders—Basic $ 282,619 $ 245,211 $ 181,390 Net income per common share—Basic $ 9.20 $ 7.57 $ 5.06 Basic weighted-average common shares outstanding 30,722 32,388 35,862 Effect of diluted shares 1,119 1,283 1,835 Diluted weighted-average shares outstanding 31,841 33,671 37,697 Net income per common share—Diluted $ 8.88 $ 7.28 $ 4.81 |
CONTRACT ASSETS AND CONTRACT _2
CONTRACT ASSETS AND CONTRACT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Company's Contract Assets and Contract Liabilities | Accounts receivable and unbilled, net consisted of the following at December 31 (in thousands): 2023 2022 Accounts receivable $ 275,932 $ 213,169 Unbilled receivables 22,475 40,405 Less: allowance for doubtful accounts (7) (170) Total accounts receivable and unbilled, net $ 298,400 $ 253,404 Advanced billings consisted of the following at December 31 (in thousands): 2023 2022 Advanced billings $ 559,860 $ 462,729 |
Accounts Receivable, Allowance for Credit Loss | A rollforward of allowance for doubtful account activity is as follows: Year Ended December 31, 2023 2022 2021 Allowance for doubtful accounts - beginning balance $ (170) $ (171) $ (346) Current year provision (3,420) — (11) Write-offs, recoveries and the effects of foreign currency exchange 3,583 1 186 Allowance for doubtful accounts - ending balance $ (7) $ (170) $ (171) |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment, net consisted of the following at December 31, (in thousands): 2023 2022 Land $ 4,833 $ 2,410 Equipment 39,927 31,851 Furniture, fixtures, and leasehold improvements 99,581 87,543 Computer hardware, software, and phone equipment 32,051 26,049 Buildings 16,419 13,594 Construction-in-progress 7,182 10,518 Property and equipment at cost 199,993 171,965 Less: Accumulated depreciation (79,404) (62,116) Property and equipment, net $ 120,589 $ 109,849 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consisted of the following at December 31 (in thousands): 2023 2022 Intangible assets: Finite-lived intangible assets: Carrying amount: Customer relationships 145,051 145,051 Accumulated amortization: Customer relationships (140,888) (138,689) Total finite-lived intangible assets, net 4,163 6,362 Trade name (indefinite-lived) 31,646 31,646 Total intangible assets, net $ 35,809 $ 38,008 |
Schedule of Estimated Amortization Expense of Intangible Assets | As of December 31, 2023, estimated amortization expense of the Company’s intangible assets for each of the next five years is as follows (in thousands): Amortization 2024 $ 1,443 2025 946 2026 620 2027 577 2028 577 $ 4,163 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following at December 31 (in thousands): 2023 2022 Employee compensation and benefits $ 75,822 $ 71,197 Project related reimbursable expenses 205,864 128,416 Other 11,275 10,512 Total accrued expenses $ 292,961 $ 210,125 |
SHORT-TERM DEBT (Tables)
SHORT-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following at December 31 (in thousands): 2023 2022 Credit facility $ — $ 50,000 Short-term debt $ — $ 50,000 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of lease expense were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Operating lease cost $ 27,919 $ 25,874 $ 23,873 Variable lease cost $ 9,455 $ 8,569 $ 6,627 |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to the leases was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 19,829 $ 17,002 $ 16,266 Right-of-use assets obtained in exchange for lease obligations: Operating leases 23,960 30,882 33,133 |
Summary of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to the leases was as follows at December 31 (in thousands): 2023 2022 Operating lease right-of-use assets - related parties $ 83,065 $ 86,356 Operating lease right-of-use assets - non-related parties 61,736 52,712 Operating lease right-of-use assets $ 144,801 $ 139,068 Other current liabilities - related parties 5,730 5,409 Other current liabilities - non-related parties 16,635 13,863 Other current liabilities $ 22,365 $ 19,272 Operating lease liabilities - related parties 90,568 93,393 Operating lease liabilities - non-related parties 51,554 45,474 Operating lease liabilities 142,122 138,867 Total operating lease liabilities $ 164,487 $ 158,139 Weighted Average Remaining Lease Term (years) Operating leases 10.0 11.1 Weighted Average Discount Rate Operating leases 5.6 % 5.2 % |
Schedule of Lease Payments Due Related To Lease Liabilities | Lease payments due related to lease liabilities as of December 31, 2023 were as follows (in thousands): Related Party Non-Related Parties Total 2024 $ 11,412 $ 18,671 $ 30,083 2025 11,607 17,008 28,615 2026 11,807 14,199 26,006 2027 10,839 10,974 21,813 2028 8,609 6,124 14,733 Later years 91,669 9,548 101,217 Total lease payments 145,943 76,524 222,467 Less: imputed interest (49,645) (8,335) (57,980) Total $ 96,298 $ 68,189 $ 164,487 |
SHAREHOLDERS_ EQUITY (Tables)
SHAREHOLDERS’ EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Weighted-Average Assumptions Used in BSM Model to Calculate Fair Value of Options | The following table sets forth the key weighted-average assumptions used in the BSM Model to calculate the fair value of options: Year Ended December 31, 2023 2022 2021 Expected holding period - years 4.1 4.7 5.0 Expected volatility 45.4% 36.5% 34.3% Risk-free interest rate 3.8% 1.9% 0.9% Expected dividend yield 0.0% 0.0% 0.0% |
Schedule of Grant Date Fair Value and Stock-based Compensation Expense Allocated | The following table summarizes the grant date fair values of stock options and restricted shares issued during the period as well as the allocation of stock-based compensation expense to Total direct costs, and Selling, general and administrative reported in the consolidated statements of operations: Year Ended December 31, 2023 2022 2021 Weighted average, grant date fair value Stock options $ 85.30 $ 47.57 $ 52.70 Restricted shares (RSAs and RSUs) $ 225.69 $ 149.87 $ 174.94 Stock-based compensation expense allocated to: Total direct costs $ 11,099 $ 11,801 $ 9,345 Selling, general, and administrative 9,417 9,611 5,124 Total stock-based compensation expense $ 20,516 $ 21,412 $ 14,469 |
Schedule of Stock Option Activity | The following table sets forth the Company’s stock option activity: Year Ended December 31, 2023 2022 2021 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding - beginning of Period 1,629,148 $ 89.71 1,992,915 $ 68.39 2,500,727 $ 43.26 Granted 12,437 $ 211.25 252,490 $ 138.91 282,588 $ 168.34 Exercised (287,048) $ 39.64 (579,407) $ 38.10 (745,572) $ 23.67 Cancelled/Forfeited/Expired (11,250) $ 183.04 (36,850) $ 85.40 (44,828) $ 40.50 Outstanding - end of period 1,343,287 $ 100.75 1,629,148 $ 89.71 1,992,915 $ 68.39 Exercisable - end of period 901,865 $ 74.79 1,116,255 $ 60.52 1,290,627 $ 56.43 |
Schedule of Restricted Share Activity | The following table sets forth the Company’s Restricted Share activity: Year Ended December 31, 2023 2022 2021 Shares/Units Shares/Units Shares/Units Outstanding and unvested - beginning of period 523,377 602,187 695,562 Granted 46,836 165,595 102,579 Vested (154,618) (197,000) (119,000) Forfeited (24,597) (47,405) (76,954) Outstanding and unvested - end of period 390,998 523,377 602,187 |
Schedule of Stock Options Expected To Vest, Stock Options Exercisable, and Unvested Restricted Share Awards Expected To Vest | The following table summarizes information about stock options expected to vest, stock options exercisable, and unvested restricted share awards expected to vest at December 31, 2023: Weighted Average Stock Restricted Weighted Average Number of stock options expected to vest $ 100.75 1,343,287 — 2.7 Number of restricted shares/units expected to vest 390,998 Total expected to vest 1,343,287 390,998 Total stock options exercisable $ 74.79 901,865 — 2.1 Unrecognized compensation cost (in thousands) $ 7,727 $ 27,058 Weighted average years over which unrecognized compensation cost will be recognized 1.8 2.5 |
Schedule of Aggregate Intrinsic Value of Stock Options Exercised, Fair Values of Awards Vested, and Share Based Liabilities Settled | The following table sets forth the aggregate intrinsic value of stock options exercised, the fair values of awards vested, and share based liabilities settled during the respective periods (in thousands): Year Ended December 31, 2023 2022 2021 Total intrinsic value of stock options exercised $ 56,548 $ 77,527 $ 104,695 Total grant-date fair value of stock options vested $ 3,591 $ 5,228 $ 5,185 Total grant-date fair value of restricted shares vested $ 9,306 $ 9,248 $ 3,796 Total settlement date fair value of restricted shares vested $ 31,842 $ 32,802 $ 22,321 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Before Income Taxes | The components of income before income taxes consisted of the following (in thousands): Year Ended December 31, 2023 2022 2021 Domestic $ 312,870 $ 260,564 $ 187,535 Foreign jurisdictions 22,812 22,296 14,317 Income before income taxes $ 335,682 $ 282,860 $ 201,852 |
Schedule of Income Tax Provision | Income tax provision consisted of the following (in thousands): Current Deferred Total Year ended December 31, 2023 U.S. Federal $ 64,381 $ (24,117) $ 40,264 U.S. state and local 8,848 (1,869) 6,979 Foreign jurisdictions 4,622 1,007 5,629 $ 77,851 $ (24,979) $ 52,872 Year ended December 31, 2022 U.S. Federal $ 49,991 $ (19,705) $ 30,286 U.S. state and local 7,160 (3,297) 3,863 Foreign jurisdictions 3,330 13 3,343 $ 60,481 $ (22,989) $ 37,492 Year ended December 31, 2021 U.S. Federal $ 46,138 $ (32,677) $ 13,461 U.S. state and local 8,405 (3,622) 4,783 Foreign jurisdictions 2,580 (820) 1,760 $ 57,123 $ (37,119) $ 20,004 |
Summary Of Difference Between Statutory Rate for Federal Income Tax and Effective Income Tax Rate | The difference between the statutory rate for federal income tax and the effective income tax rate was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Income tax expense calculated at the federal statutory rate $ 70,493 21.0 % $ 59,401 21.0 % $ 42,389 21.0 % Effect of: State and local taxes, net of federal benefit 5,146 1.5 4,235 1.5 3,698 1.8 Tax on foreign earnings, net of tax credits and deductions (1,305) (0.4) (3,277) (1.2) (3,113) (1.5) Deferred credit (596) (0.2) (621) (0.2) (667) (0.3) Permanent items: Stock-based awards (14,692) (4.4) (18,738) (6.6) (19,042) (9.5) Deduction for FDII (9,358) (2.8) (4,983) (1.8) (4,860) (2.4) Other 63 — 595 0.2 (364) (0.2) State/Local tax credits (2,536) (0.8) (1,294) (0.5) (976) (0.5) Change in liability for uncertain tax positions 4,784 1.4 1,560 0.6 2,349 1.2 Other 873 0.5 614 0.3 590 0.3 $ 52,872 15.8 % $ 37,492 13.3 % $ 20,004 9.9 % |
Schedule of Components of Company's Net Deferred Tax Asset (Liability) | Components of the Company’s net deferred tax asset (liability) included in the consolidated balance sheets consisted of the following at December 31 (in thousands): 2023 2022 Deferred tax assets: Accrued liabilities $ 27,101 $ 24,483 Depreciation and amortization 1,258 1,269 Foreign operating loss carryforward 35 30 Advanced billings 98,438 67,789 Other 2,474 1,005 Valuation allowance (1,826) (430) Total deferred tax assets 127,480 94,146 Deferred tax liabilities: Depreciation and amortization (52,443) (44,731) Prepaid expenses (1,581) (1,263) Other (1,425) (1,139) Total deferred tax liabilities (55,449) (47,133) Net deferred tax asset (liability) $ 72,031 $ 47,013 |
Schedule of Annual Activity Related to Valuation Allowance | Annual activity related to the Company’s valuation allowance is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Beginning Balance $ 430 $ 850 $ 578 Additions charged to expense 1,582 15 305 Reductions from utilization, reassessments and expirations (186) (493) (33) Remeasurement due to effect of tax reform — 58 — Ending Balance $ 1,826 $ 430 $ 850 |
Schedule of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Beginning Balance $ 15,947 $ 13,784 $ 10,691 Increases in tax positions for prior years — 171 1,253 Decreases in tax positions for prior years (97) (490) (223) Increases in tax positions for current year 5,382 4,871 3,098 Lapse in statute of limitations (852) (2,389) (1,035) Ending Balance $ 20,380 $ 15,947 $ 13,784 |
MISCELLANEOUS (EXPENSE) INCOM_2
MISCELLANEOUS (EXPENSE) INCOME, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Components of Miscellaneous Income (Expense), Net | Miscellaneous (expense) income, net consisted of the following (in thousands): Year Ended December 31, 2023 2022 2021 Net (loss) gain on foreign-currency transactions $ (1,929) $ 3,859 $ 2,779 Other income 1,274 3,209 563 Miscellaneous (expense) income, net $ (655) $ 7,068 $ 3,342 |
ENTITY WIDE DISCLOSURES (Tables
ENTITY WIDE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Entity Wide Disclosures [Abstract] | |
Summary of Property and Equipment, Net by Geographic Region | The following table summarizes property and equipment, net by geographic region and is further broken down to show countries which account for 10% or more of total as of December 31, if any (in thousands): 2023 2022 Property and equipment, net: United States $ 77,850 $ 81,217 Europe Belgium 18,190 11,778 Other 8,772 9,294 Total Europe 26,962 21,072 Asia-Pacific 14,472 6,223 Other 1,305 1,337 Total property and equipment, net $ 120,589 $ 109,849 |
Summary of Revenue by Major Source | The following table disaggregates the Company’s revenue by major source (in thousands): Years Ended December 31, 2023 2022 2021 Therapeutic Area Oncology $ 587,097 $ 467,796 $ 362,846 Other 404,844 296,914 267,415 Metabolic 376,842 244,682 159,900 Cardiology 193,690 174,634 119,692 AVAI 163,312 118,031 110,976 Central Nervous System 160,057 157,939 121,548 Total revenue $ 1,885,842 $ 1,459,996 $ 1,142,377 |
BASIS OF PRESENTATION - (Detail
BASIS OF PRESENTATION - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basis Of Presentation [Line Items] | |||
Repurchase of shares, value | $ 144,020 | $ 847,849 | $ 62,096 |
2018 Share Repurchase Program | |||
Basis Of Presentation [Line Items] | |||
Stock repurchased, including number of shares for re-issuance (in shares) | 5,463,244 | ||
Repurchase of shares (in shares) | 377,783,000 | ||
Repurchase of shares, value | $ 800,500 | $ 62,100 | |
2022 Share Repurchase Program | |||
Basis Of Presentation [Line Items] | |||
Repurchase of shares (in shares) | 781,068 | 228,247 | |
Repurchase of shares, value | $ 144,000 | $ 47,200 | |
2022 Share Repurchase Program | Maximum | |||
Basis Of Presentation [Line Items] | |||
Stock repurchase program, authorized amount | $ 500,000 | ||
Remaining amount of repurchase program | $ 308,800 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) customer shares | Dec. 31, 2022 USD ($) customer shares | Dec. 31, 2021 USD ($) shares | |
Summary Of Significant Accounting Policies [Line Items] | |||
Net gain (loss) on foreign currency transaction | $ (1,929) | $ 3,859 | $ 2,779 |
Sales rebates | 12,100 | 7,900 | $ 7,200 |
Performance obligations remaining to be performed | $ 2,900,000 | $ 2,700,000 | |
Number of customers accounted for more than 10% of accounts receivable | customer | 0 | 0 | |
Government assistance, amount | $ 15,500 | $ 15,400 | |
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Direct operating costs, Selling, general and administrative | ||
Prepaid Expenses and Other Current Assets | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Government assistance, amount | $ 9,500 | 11,300 | |
Other Assets | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Government assistance, amount | $ 12,200 | $ 7,100 | |
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life of finite-lived intangible assets | 15 years | ||
Maximum | 2016 Incentive Award Plan | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Share-based compensation option terms | 10 years | ||
Maximum | Computer Hardware Software Phone and Medical Imaging Equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment | 5 years | ||
Maximum | Furniture and Fixtures and Other Equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment | 7 years | ||
Maximum | Buildings | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment | 40 years | ||
Maximum | Computer Software Developed Costs | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment | 3 years | ||
Minimum | Computer Hardware Software Phone and Medical Imaging Equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment | 3 years | ||
Minimum | Furniture and Fixtures and Other Equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment | 5 years | ||
Minimum | Buildings | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment | 30 years | ||
Stock options | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Anti-dilutive securities excluded from computation of diluted EPS (in shares) | shares | 0 | 9 | 9 |
Selling, general, and administrative | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Advertisement expenses | $ 1,500 | $ 1,300 | $ 1,200 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted-average shares: | |||
Weighted average number of shares outstanding, basic (in shares) | 30,722 | 32,388 | 35,862 |
Total weighted average shares outstanding, basic (in shares) | 30,743 | 32,409 | 35,952 |
Earnings per common share—Basic | |||
Net income | $ 282,810 | $ 245,368 | $ 181,848 |
Net income available to common shareholders—Basic | $ 282,619 | $ 245,211 | $ 181,390 |
Net income per common share, basic (in dollars per share) | $ 9.20 | $ 7.57 | $ 5.06 |
Weighted average number of shares outstanding, basic (in shares) | 30,722 | 32,388 | 35,862 |
Effect of diluted shares (in shares) | 1,119 | 1,283 | 1,835 |
Weighted-average shares outstanding, diluted (in shares) | 31,841 | 33,671 | 37,697 |
Net income per common share, diluted (in dollars per share) | $ 8.88 | $ 7.28 | $ 4.81 |
RSAs | |||
Weighted-average shares: | |||
Weighted average number of shares outstanding, basic (in shares) | 21 | 21 | 90 |
Earnings per common share—Basic | |||
Less: Undistributed earnings allocated to RSAs | $ (191) | $ (157) | $ (458) |
Weighted average number of shares outstanding, basic (in shares) | 21 | 21 | 90 |
Common Stock | |||
Weighted-average shares: | |||
Weighted average number of shares outstanding, basic (in shares) | 30,722 | 32,388 | 35,862 |
Earnings per common share—Basic | |||
Weighted average number of shares outstanding, basic (in shares) | 30,722 | 32,388 | 35,862 |
CONTRACT ASSETS AND CONTRACT _3
CONTRACT ASSETS AND CONTRACT LIABILITIES - Summary of Accounts Receivable and Unbilled, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||||
Accounts receivable | $ 275,932 | $ 213,169 | ||
Unbilled receivables | 22,475 | 40,405 | ||
Less: allowance for doubtful accounts | (7) | (170) | $ (171) | $ (346) |
Total accounts receivable and unbilled, net | $ 298,400 | $ 253,404 |
CONTRACT ASSETS AND CONTRACT _4
CONTRACT ASSETS AND CONTRACT LIABILITIES - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized | $ 396.3 |
CONTRACT ASSETS AND CONTRACT _5
CONTRACT ASSETS AND CONTRACT LIABILITIES - Summary of Advanced Billings (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Advanced billings | $ 559,860 | $ 462,729 |
CONTRACT ASSETS AND CONTRACT _6
CONTRACT ASSETS AND CONTRACT LIABILITIES - Schedule of Allowance for Doubtful Account Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for doubtful accounts - beginning balance | $ (170) | $ (171) | $ (346) |
Current year provision | (3,420) | 0 | (11) |
Write-offs, recoveries and the effects of foreign currency exchange | 3,583 | 1 | 186 |
Allowance for doubtful accounts - ending balance | $ (7) | $ (170) | $ (171) |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property Plant and Equipment [Line Items] | ||
Property and equipment at cost | $ 199,993 | $ 171,965 |
Less: Accumulated depreciation | (79,404) | (62,116) |
Property and equipment, net | 120,589 | 109,849 |
Land | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment at cost | 4,833 | 2,410 |
Equipment | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment at cost | 39,927 | 31,851 |
Furniture, fixtures, and leasehold improvements | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment at cost | 99,581 | 87,543 |
Computer hardware, software, and phone equipment | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment at cost | 32,051 | 26,049 |
Buildings | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment at cost | 16,419 | 13,594 |
Construction-in-progress | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment at cost | $ 7,182 | $ 10,518 |
PROPERTY AND EQUIPMENT, NET - N
PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 24,129 | $ 18,989 | $ 16,005 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill And Intangible Assets [Line Items] | ||
Fair value assets measured on non-recurring basis | $ 1,656,828 | $ 1,352,495 |
Goodwill | 662,396 | $ 662,396 |
Indefinite-lived intangible assets | 31,600 | |
Accumulated goodwill impairment losses to date | 9,300 | |
Fair Value Measurement Non-Recurring | Level 3 | ||
Goodwill And Intangible Assets [Line Items] | ||
Fair value assets measured on non-recurring basis | $ 694,000 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accumulated amortization: | ||
Total finite-lived intangible assets, net | $ 4,163 | $ 6,362 |
Trade name (indefinite-lived) | 31,646 | 31,646 |
Total intangible assets, net | 35,809 | 38,008 |
Customer relationships | ||
Finite-lived intangible assets: | ||
Finite-lived intangible assets, gross | 145,051 | 145,051 |
Accumulated amortization: | ||
Total accumulated amortization | $ (140,888) | $ (138,689) |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 1,443 | |
2025 | 946 | |
2026 | 620 | |
2027 | 577 | |
2028 | 577 | |
Total finite-lived intangible assets, net | $ 4,163 | $ 6,362 |
ACCRUED EXPENSES - Schedule of
ACCRUED EXPENSES - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Employee compensation and benefits | $ 75,822 | $ 71,197 |
Project related reimbursable expenses | 205,864 | 128,416 |
Other | 11,275 | 10,512 |
Total accrued expenses | $ 292,961 | $ 210,125 |
SHORT-TERM DEBT - Schedule of D
SHORT-TERM DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Short-Term Debt [Line Items] | ||
Short-term debt | $ 0 | $ 50,000 |
Credit facility | ||
Short-Term Debt [Line Items] | ||
Short-term debt | $ 0 | $ 50,000 |
SHORT-TERM DEBT - Narrative (De
SHORT-TERM DEBT - Narrative (Details) - Credit facility - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Mar. 31, 2023 | Mar. 15, 2022 | Sep. 30, 2019 | |
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 150 | $ 250 | ||
Outstanding letters of credit (less than) | $ 0.1 | |||
Secured Overnight Financing Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis points | 1.25% | |||
Overnight Bank Funding Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis points | 0.50% | |||
Daily Simple SOFR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis points | 1% | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, principal amount | $ 50 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Lessee Lease Description [Line Items] | |
Lease not yet commenced, future payments | $ 2.7 |
Real Estate | Minimum | |
Lessee Lease Description [Line Items] | |
Remaining lease term, operating lease | 1 year |
Real Estate | Maximum | |
Lessee Lease Description [Line Items] | |
Remaining lease term, operating lease | 17 years |
Real Estate and Equipment | Maximum | |
Lessee Lease Description [Line Items] | |
Lease renewal term, operating lease | 20 years |
Operating lease, options to terminate lease term | 1 year |
LEASES - Summary of Components
LEASES - Summary of Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 27,919 | $ 25,874 | $ 23,873 |
Variable lease cost | $ 9,455 | $ 8,569 | $ 6,627 |
LEASES - Summary of Supplementa
LEASES - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 19,829 | $ 17,002 | $ 16,266 |
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | $ 23,960 | $ 30,882 | $ 33,133 |
LEASES - Summary of Supplemen_2
LEASES - Summary of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases, Supplemental Balance Sheet Information [Line Items] | ||
Operating lease right-of-use assets | $ 144,801 | $ 139,068 |
Other current liabilities - related parties | $ 22,365 | $ 19,272 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities (includes $12.5 million with related parties at December 31, 2022) | Other current liabilities (includes $12.5 million with related parties at December 31, 2022) |
Operating lease liabilities | $ 142,122 | $ 138,867 |
Total operating lease liabilities | $ 164,487 | $ 158,139 |
Weighted Average Remaining Lease Term (years) | ||
Operating leases | 10 years | 11 years 1 month 6 days |
Weighted Average Discount Rate | ||
Operating leases | 5.60% | 5.20% |
Related Party | ||
Leases, Supplemental Balance Sheet Information [Line Items] | ||
Operating lease right-of-use assets | $ 83,065 | $ 86,356 |
Other current liabilities - related parties | 5,730 | 5,409 |
Operating lease liabilities | 90,568 | 93,393 |
Total operating lease liabilities | 96,298 | |
Non-Related Party | ||
Leases, Supplemental Balance Sheet Information [Line Items] | ||
Operating lease right-of-use assets | 61,736 | 52,712 |
Other current liabilities - related parties | 16,635 | 13,863 |
Operating lease liabilities | 51,554 | $ 45,474 |
Total operating lease liabilities | $ 68,189 |
LEASES - Schedule of Lease Paym
LEASES - Schedule of Lease Payments Due Related To Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Lease Liabilities Payments Due [Line Items] | ||
2024 | $ 30,083 | |
2025 | 28,615 | |
2026 | 26,006 | |
2027 | 21,813 | |
2028 | 14,733 | |
Later years | 101,217 | |
Total lease payments | 222,467 | |
Less: imputed interest | (57,980) | |
Total | 164,487 | $ 158,139 |
Related Party | ||
Operating Lease Liabilities Payments Due [Line Items] | ||
2024 | 11,412 | |
2025 | 11,607 | |
2026 | 11,807 | |
2027 | 10,839 | |
2028 | 8,609 | |
Later years | 91,669 | |
Total lease payments | 145,943 | |
Less: imputed interest | (49,645) | |
Total | 96,298 | |
Non-Related Party | ||
Operating Lease Liabilities Payments Due [Line Items] | ||
2024 | 18,671 | |
2025 | 17,008 | |
2026 | 14,199 | |
2027 | 10,974 | |
2028 | 6,124 | |
Later years | 9,548 | |
Total lease payments | 76,524 | |
Less: imputed interest | (8,335) | |
Total | $ 68,189 |
SHAREHOLDERS_ EQUITY - Narrativ
SHAREHOLDERS’ EQUITY - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 USD ($) installment shares | Dec. 31, 2022 USD ($) installment shares | Dec. 31, 2021 USD ($) shares | Aug. 11, 2016 shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options granted (in shares) | 12,437 | 252,490 | 282,588 | |
Expected dividend yield | 0% | 0% | 0% | |
Actual tax benefits recognized related to stock-based compensation | $ | $ 18.9 | $ 23.2 | $ 20.9 | |
2016 Incentive Award Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares registered and available for grant (in shares) | 6,000,000 | |||
Shares available for future stock compensation grants (in shares) | 2,300,000 | 2,300,000 | ||
2016 Incentive Award Plan | Granted to Employees | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Awards granted to employees (in shares) | 47,238 | |||
2016 Incentive Award Plan | Employee | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Awards granted to employees (in shares) | 405,550 | 374,235 | ||
2016 Incentive Award Plan | Non Employee Directors | Restricted Stock Units (RSU) | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares granted (in shares) | 848 | 1,117 | ||
Award vesting installments | installment | 4 | 4 | ||
2016 Incentive Award Plan | Non Employee Directors | Stock options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options granted (in shares) | 11,187 | 11,418 | 10,932 | |
2016 Incentive Award Plan | Vesting After Four Years | Restricted Stock Units (RSU) | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Award vesting period | 4 years | 4 years | 4 years | |
Shares granted (in shares) | 45,988 | 164,478 | 27,854 | |
2016 Incentive Award Plan | Vesting After Four Years | Stock options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options granted (in shares) | 1,250 | 113,838 | 9,000 | |
Award vesting period | 4 years | 4 years | 4 years | |
2016 Incentive Award Plan | Vesting After Two Years | Stock options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options granted (in shares) | 127,234 | 57,570 | ||
Award vesting period | 2 years | 2 years | ||
2016 Incentive Award Plan | Vesting After Four Years and Six Months | Restricted Stock Units (RSU) | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Award vesting period | 4 years 6 months | |||
Shares granted (in shares) | 74,725 | |||
2016 Incentive Award Plan | Vesting After Four Years and Six Months | Stock options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options granted (in shares) | 205,086 | |||
Award vesting period | 4 years 6 months | |||
2016 Incentive Award Plan | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation option terms | 10 years |
SHAREHOLDERS_ EQUITY -Schedule
SHAREHOLDERS’ EQUITY -Schedule of Weighted-Average Assumptions Used in BSM Model to Calculate Fair Value of Options (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected holding period - years | 4 years 1 month 6 days | 4 years 8 months 12 days | 5 years |
Expected volatility | 45.40% | 36.50% | 34.30% |
Risk-free interest rate | 3.80% | 1.90% | 0.90% |
Expected dividend yield | 0% | 0% | 0% |
SHAREHOLDERS_ EQUITY - Schedule
SHAREHOLDERS’ EQUITY - Schedule of Grant Date Fair Value and Stock-based Compensation Expense Allocated (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 20,516 | $ 21,412 | $ 14,469 |
Stock options | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Weighted average, grant date fair value (in dollars per share) | $ 85.30 | $ 47.57 | $ 52.70 |
Restricted shares (RSAs and RSUs) | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Weighted average, grant date fair value (in dollars per share) | $ 225.69 | $ 149.87 | $ 174.94 |
Total direct costs | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 11,099 | $ 11,801 | $ 9,345 |
Selling, general, and administrative | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 9,417 | $ 9,611 | $ 5,124 |
SHAREHOLDERS_ EQUITY - Schedu_2
SHAREHOLDERS’ EQUITY - Schedule of Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward] | |||
Options outstanding, beginning of period (in shares) | 1,629,148 | 1,992,915 | 2,500,727 |
Options granted (in shares) | 12,437 | 252,490 | 282,588 |
Options exercised (in shares) | (287,048) | (579,407) | (745,572) |
Options cancelled/forfeited/expired (in shares) | (11,250) | (36,850) | (44,828) |
Options outstanding, end of period (in shares) | 1,343,287 | 1,629,148 | 1,992,915 |
Options exercisable (in shares) | 901,865 | 1,116,255 | 1,290,627 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Options outstanding, beginning of period (in dollars per share) | $ 89.71 | $ 68.39 | $ 43.26 |
Options granted (in dollars per share) | 211.25 | 138.91 | 168.34 |
Options exercised (in dollars per share) | 39.64 | 38.10 | 23.67 |
Options cancelled/forfeited/expired (in dollars per share) | 183.04 | 85.40 | 40.50 |
Options outstanding, end of period (in dollars per share) | 100.75 | 89.71 | 68.39 |
Options exercisable, end of period (in dollars per share) | $ 74.79 | $ 60.52 | $ 56.43 |
SHAREHOLDERS_ EQUITY - Schedu_3
SHAREHOLDERS’ EQUITY - Schedule of Restricted Share Activity (Details) - Restricted Shares - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding and unvested, beginning of period (in shares) | 523,377 | 602,187 | 695,562 |
Granted (in shares) | 46,836 | 165,595 | 102,579 |
Vested (in shares) | (154,618) | (197,000) | (119,000) |
Forfeited (in shares) | (24,597) | (47,405) | (76,954) |
Outstanding and unvested, end of period (in shares) | 390,998 | 523,377 | 602,187 |
SHAREHOLDERS_ EQUITY - Schedu_4
SHAREHOLDERS’ EQUITY - Schedule of Stock Options Expected To Vest, Stock Options Exercisable, and Unvested Restricted Share Awards Expected To Vest (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options expected to vest, weighted average exercise price (in dollars per share) | $ 100.75 | ||
Options exercisable, end of period (in dollars per share) | $ 74.79 | $ 60.52 | $ 56.43 |
Stock options expected to vest (in shares) | 1,343,287 | ||
Shares/units expected to vest (in shares) | 390,998 | ||
Number of stock options expected to vest, weighted average remaining life | 2 years 8 months 12 days | ||
Total stock options exercisable, weighted average remaining life | 2 years 1 month 6 days | ||
Stock options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock options expected to vest (in shares) | 1,343,287 | ||
Total stock options exercisable (in shares) | 901,865 | ||
Unrecognized compensation cost | $ 7,727 | ||
Weighted average years over which unrecognized compensation cost will be recognized | 1 year 9 months 18 days | ||
RSAs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average years over which unrecognized compensation cost will be recognized | 2 years 6 months | ||
Shares/units expected to vest (in shares) | 390,998 | ||
Unrecognized compensation cost | $ 27,058 |
SHAREHOLDERS_ EQUITY - Schedu_5
SHAREHOLDERS’ EQUITY - Schedule of Aggregate Intrinsic Value of Stock Options Exercised, Fair Values of Awards Vested, and Share Based Liabilities Settled (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total intrinsic value of stock options exercised | $ 56,548 | $ 77,527 | $ 104,695 |
Total grant-date fair value of stock options vested | 3,591 | 5,228 | 5,185 |
Restricted Shares | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total grant-date fair value of restricted shares vested | 9,306 | 9,248 | 3,796 |
Total settlement date fair value of restricted shares vested | $ 31,842 | $ 32,802 | $ 22,321 |
EMPLOYEE BENEFIT PLANS - (Detai
EMPLOYEE BENEFIT PLANS - (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum annual contribution by employee, percentage of pre-tax earnings | 50% | ||
U.S. Employees | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Minimum period of service required for matching contribution eligibility | 1 year | ||
Minimum required period of service for employer contributions to fully vest | 3 years | ||
Recognized cost of employee benefit plan | $ 7.4 | $ 5.4 | $ 4.3 |
Non-U.S. Employees | Defined Contribution Arrangements | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Recognized cost of employee benefit plan | $ 3.3 | $ 2.5 | $ 1.9 |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 312,870 | $ 260,564 | $ 187,535 |
Foreign jurisdictions | 22,812 | 22,296 | 14,317 |
Income before income taxes | $ 335,682 | $ 282,860 | $ 201,852 |
INCOME TAXES- Schedule of Incom
INCOME TAXES- Schedule of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal, current | $ 64,381 | $ 49,991 | $ 46,138 |
U.S. federal, deferred | (24,117) | (19,705) | (32,677) |
U.S. federal, total | 40,264 | 30,286 | 13,461 |
U.S. state and local, current | 8,848 | 7,160 | 8,405 |
U.S. state and local, deferred | (1,869) | (3,297) | (3,622) |
U.S. state and local, total | 6,979 | 3,863 | 4,783 |
Foreign jurisdictions, current | 4,622 | 3,330 | 2,580 |
Foreign jurisdictions, deferred | 1,007 | 13 | (820) |
Foreign jurisdictions, total | 5,629 | 3,343 | 1,760 |
Income tax provision (benefit), current | 77,851 | 60,481 | 57,123 |
Income tax provision (benefit), deferred | (24,979) | (22,989) | (37,119) |
Income tax provision (benefit), total | $ 52,872 | $ 37,492 | $ 20,004 |
INCOME TAXES - Summary Of Diffe
INCOME TAXES - Summary Of Difference Between Statutory Rate for Federal Income Tax and Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense calculated at the federal statutory rate | $ 70,493 | $ 59,401 | $ 42,389 |
State and local taxes, net of federal benefit | 5,146 | 4,235 | 3,698 |
Tax on foreign earnings, net of tax credits and deductions | (1,305) | (3,277) | (3,113) |
Deferred credit | (596) | (621) | (667) |
Stock-based awards | (14,692) | (18,738) | (19,042) |
Deduction for FDII | (9,358) | (4,983) | (4,860) |
Other | 63 | 595 | (364) |
State/Local tax credits | (2,536) | (1,294) | (976) |
Change in liability for uncertain tax positions | 4,784 | 1,560 | 2,349 |
Other | 873 | 614 | 590 |
Income tax provision (benefit), total | $ 52,872 | $ 37,492 | $ 20,004 |
Income tax expense calculated at the federal statutory rate, percent | 21% | 21% | 21% |
State and local taxes, net of federal benefit, percent | 1.50% | 1.50% | 1.80% |
Tax on foreign earnings, net of tax credits and deductions, percent | (0.40%) | (1.20%) | (1.50%) |
Deferred credit, percent | (0.20%) | (0.20%) | (0.30%) |
Stock-based awards, percent | (4.40%) | (6.60%) | (9.50%) |
Deduction for FDII, percent | (2.80%) | (1.80%) | (2.40%) |
Other, percent | 0% | 0.20% | (0.20%) |
State/Local tax credits, percent | (0.80%) | (0.50%) | (0.50%) |
Change in liability for uncertain tax positions, percent | 1.40% | 0.60% | 1.20% |
Other, percent | 0.50% | 0.30% | 0.30% |
Effective income tax rate reconciliation, percent | 15.80% | 13.30% | 9.90% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Line Items] | ||
Amount of undistributed earnings of foreign subsidiaries for which deferred foreign withholding taxes not recorded | $ 59.2 | |
Liability for interest and penalties | 5.2 | $ 3.8 |
Liability for uncertain tax position | $ 16.2 | $ 12.7 |
Number of tax years | 4 years | |
Foreign, State and Local Jurisdictions | Earliest Tax Year | ||
Income Tax Disclosure [Line Items] | ||
Open tax year | 2019 | |
Foreign, State and Local Jurisdictions | Latest Tax Year | ||
Income Tax Disclosure [Line Items] | ||
Open tax year | 2023 | |
Federal | Earliest Tax Year | ||
Income Tax Disclosure [Line Items] | ||
Open tax year | 2020 | |
Federal | Latest Tax Year | ||
Income Tax Disclosure [Line Items] | ||
Open tax year | 2023 |
INCOME TAXES- Schedule of Compo
INCOME TAXES- Schedule of Components of Company's Net Deferred Tax Asset (Liability) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Accrued liabilities | $ 27,101 | $ 24,483 |
Depreciation and amortization | 1,258 | 1,269 |
Foreign operating loss carryforward | 35 | 30 |
Advanced billings | 98,438 | 67,789 |
Other | 2,474 | 1,005 |
Valuation allowance | (1,826) | (430) |
Total deferred tax assets | 127,480 | 94,146 |
Deferred tax liabilities: | ||
Depreciation and amortization | (52,443) | (44,731) |
Prepaid expenses | (1,581) | (1,263) |
Other | (1,425) | (1,139) |
Total deferred tax liabilities | (55,449) | (47,133) |
Net deferred tax asset | $ 72,031 | $ 47,013 |
INCOME TAXES - Schedule of Annu
INCOME TAXES - Schedule of Annual Activity Related to Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | $ 430 | $ 850 | $ 578 |
Additions charged to expense | 1,582 | 15 | 305 |
Reductions from utilization, reassessments and expirations | (186) | (493) | (33) |
Remeasurement due to effect of tax reform | 0 | 58 | 0 |
Ending Balance | $ 1,826 | $ 430 | $ 850 |
INCOME TAXES - Schedule of Gros
INCOME TAXES - Schedule of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 15,947 | $ 13,784 | $ 10,691 |
Increases in tax positions for prior years | 0 | 171 | 1,253 |
Decreases in tax positions for prior years | (97) | (490) | (223) |
Increases in tax positions for current year | 5,382 | 4,871 | 3,098 |
Lapse in statute of limitations | (852) | (2,389) | (1,035) |
Ending Balance | $ 20,380 | $ 15,947 | $ 13,784 |
COMMITMENTS, CONTINGENCIES, A_2
COMMITMENTS, CONTINGENCIES, AND GUARANTEES - (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum purchase commitments for project related supplies | $ 17.2 |
MISCELLANEOUS (EXPENSE) INCOM_3
MISCELLANEOUS (EXPENSE) INCOME, NET - Components of Miscellaneous Income (Expense), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |||
Net (loss) gain on foreign-currency transactions | $ (1,929) | $ 3,859 | $ 2,779 |
Other income | 1,274 | 3,209 | 563 |
Miscellaneous (expense) income, net | $ (655) | $ 7,068 | $ 3,342 |
RELATED PARTY TRANSACTIONS - (D
RELATED PARTY TRANSACTIONS - (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 renewal_option | Dec. 31, 2023 USD ($) renewal_option building Agreement | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Related Party Transaction [Line Items] | ||||
Total revenue | $ 1,885,842 | $ 1,459,996 | $ 1,142,377 | |
Advanced billings | 559,860 | 462,729 | ||
Accounts receivable and unbilled, net | 298,400 | 253,404 | ||
Other current liabilities | 40,441 | 47,547 | ||
Prepaid expense and other assets, current | 49,979 | 52,293 | ||
Operating lease cost recognized | 27,919 | 25,874 | 23,873 | |
Operating lease right-of-use assets | 144,801 | 139,068 | ||
Current portion of lease liability | 22,365 | 19,272 | ||
Long-term portion of lease liabilities | 142,122 | 138,867 | ||
Accounts payable | 31,869 | 33,069 | ||
Related Party | ||||
Related Party Transaction [Line Items] | ||||
Total revenue | 59,600 | 55,400 | 34,500 | |
Advanced billings | 10,100 | 8,800 | ||
Accounts receivable and unbilled, net | 2,400 | 7,700 | ||
Other current liabilities | 12,500 | |||
Prepaid expense and other assets, current | 300 | |||
Operating lease right-of-use assets | 83,065 | 86,356 | ||
Current portion of lease liability | 5,730 | 5,409 | ||
Long-term portion of lease liabilities | 90,568 | 93,393 | ||
Accounts payable | 3,100 | 300 | ||
Employee Loans | Related Party | ||||
Related Party Transaction [Line Items] | ||||
Prepaid expenses, other current assets, and other assets | 300 | 300 | ||
Related Party Service Agreement | Related Party | LIB | ||||
Related Party Transaction [Line Items] | ||||
Advanced billings | 7,600 | 7,400 | ||
Accounts receivable and unbilled, net | 500 | 5,500 | ||
Other current liabilities | 12,500 | |||
Related Party Service Agreement | Related Party | CinRx Pharma and Subsidiaries | ||||
Related Party Transaction [Line Items] | ||||
Advanced billings | 2,500 | 1,400 | ||
Accounts receivable and unbilled, net | 1,900 | 2,200 | ||
Prepaid expense and other assets, current | 200 | |||
Related Party Service Agreement | Related Party | The Summit Hotel | ||||
Related Party Transaction [Line Items] | ||||
Operating costs and expenses | 400 | 300 | 300 | |
Related Party Service Agreement | Related Party | Revenue net | LIB | ||||
Related Party Transaction [Line Items] | ||||
Total revenue | 43,700 | 40,500 | 11,800 | |
Related Party Service Agreement | Related Party | Revenue net | CinRx Pharma and Subsidiaries | ||||
Related Party Transaction [Line Items] | ||||
Total revenue | $ 15,800 | 15,000 | 22,700 | |
Leased Real Estate | Related Party | Office Space | Chief Executive Officer And Immediate Family | ||||
Related Party Transaction [Line Items] | ||||
Number of lease renewal, 10-year option | renewal_option | 2 | |||
Lease term upon renewal | 10 years | |||
Operating lease right-of-use assets | $ 51,900 | 53,500 | ||
Current portion of lease liability | 1,300 | 1,100 | ||
Long-term portion of lease liabilities | $ 63,500 | 64,800 | ||
Leased Real Estate | Related Party | Building | Chief Executive Officer And Immediate Family | ||||
Related Party Transaction [Line Items] | ||||
Number of lease renewal, 10-year option | renewal_option | 1 | |||
Lease term upon renewal | 10 years | |||
Operating lease right-of-use assets | $ 11,900 | 14,600 | ||
Current portion of lease liability | 3,000 | 2,800 | ||
Long-term portion of lease liabilities | $ 8,900 | 11,900 | ||
Number of lease agreements | Agreement | 2 | |||
Number of buildings | building | 2 | |||
Leased Real Estate | Related Party | Direct Costs and Selling General And Administrative | Office Space | Chief Executive Officer And Immediate Family | ||||
Related Party Transaction [Line Items] | ||||
Operating lease cost recognized | $ 5,700 | 5,700 | 5,700 | |
Leased Real Estate | Related Party | Direct Costs and Selling General And Administrative | Building | Chief Executive Officer And Immediate Family | ||||
Related Party Transaction [Line Items] | ||||
Operating lease cost recognized | 3,600 | 3,600 | 3,600 | |
Leased Real Estate | Chief Executive Officer | ||||
Related Party Transaction [Line Items] | ||||
Term of lease | 10 years | |||
Number of lease renewal, 10-year option | renewal_option | 1 | |||
Lease term upon renewal | 10 years | |||
Operating lease right-of-use assets | 19,300 | 18,200 | ||
Current portion of lease liability | 1,500 | 1,500 | ||
Long-term portion of lease liabilities | 18,100 | 16,700 | ||
Leased Real Estate | Chief Executive Officer | Direct Costs and Selling General And Administrative | ||||
Related Party Transaction [Line Items] | ||||
Operating lease cost recognized | 2,600 | 2,300 | 2,100 | |
Travel Services | Related Party | ||||
Related Party Transaction [Line Items] | ||||
Accounts payable | 400 | 300 | ||
Travel Services | Chief Executive Officer | ||||
Related Party Transaction [Line Items] | ||||
Travel expenses with related party | $ 2,000 | $ 2,300 | $ 1,300 |
ENTITY WIDE DISCLOSURES - Narra
ENTITY WIDE DISCLOSURES - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
United States | Total Revenue | Geographical Locations | |||
Product And Services Information [Line Items] | |||
Percentage of total revenue to consolidated total revenue | 98% | 98% | 97% |
ENTITY WIDE DISCLOSURES - Summa
ENTITY WIDE DISCLOSURES - Summary of Property and Equipment, Net by Geographic Region (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property and equipment, net: | ||
Property and equipment, net | $ 120,589 | $ 109,849 |
United States | ||
Property and equipment, net: | ||
Property and equipment, net | 77,850 | 81,217 |
Europe, Belgium | ||
Property and equipment, net: | ||
Property and equipment, net | 18,190 | 11,778 |
Europe, Other | ||
Property and equipment, net: | ||
Property and equipment, net | 8,772 | 9,294 |
Total Europe | ||
Property and equipment, net: | ||
Property and equipment, net | 26,962 | 21,072 |
Asia-Pacific | ||
Property and equipment, net: | ||
Property and equipment, net | 14,472 | 6,223 |
Other | ||
Property and equipment, net: | ||
Property and equipment, net | $ 1,305 | $ 1,337 |
ENTITY WIDE DISCLOSURES - Sum_2
ENTITY WIDE DISCLOSURES - Summary of Revenue by Major Source (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 1,885,842 | $ 1,459,996 | $ 1,142,377 |
Oncology | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 587,097 | 467,796 | 362,846 |
Other | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 404,844 | 296,914 | 267,415 |
Metabolic | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 376,842 | 244,682 | 159,900 |
Cardiology | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 193,690 | 174,634 | 119,692 |
AVAI | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 163,312 | 118,031 | 110,976 |
Central Nervous System | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 160,057 | 157,939 | 121,548 |
Revenue net | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 1,885,842 | $ 1,459,996 | $ 1,142,377 |