Delaware
|
|
001-39212
|
|
45-3806427
|
(State or other jurisdiction
of incorporation)
|
|
(Commission
File Number)
|
|
(IRS Employer
Identification No.)
|
☐
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
☐
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
☐
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
☐
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e- 4(c))
|
Title of each class
|
|
Trading
Symbol(s)
|
|
Name of each exchange
on which registered
|
Common Stock, par value $0.01 per share
|
|
PPD
|
|
The NASDAQ Stock Market LLC
(Nasdaq Global Select Market)
|
Item 8.01.
|
Other Events
|
Item 9.01
|
Financial Statements and Exhibits.
|
Exhibit No.
|
|
Description
|
|
|
|
23.1*
|
|
|
99.1*
|
|
|
99.2*
|
|
|
99.3*
|
|
|
101.INS*
|
|
XBRL Instance Document
|
101.SCH*
|
|
XBRL Taxonomy Extension Schema
|
101.CAL*
|
|
XBRL Taxonomy Extension Calculation Linkbase
|
101.DEF*
|
|
XBRL Taxonomy Extension Definition Linkbase
|
101.LAB*
|
|
XBRL Taxonomy Extension Label Linkbase
|
101.PRE*
|
|
XBRL Taxonomy Extension Presentation Linkbase
|
*
|
Furnished herewith.
|
|
|
|
PPD, Inc.
|
||
|
|
|
By:
|
|
/s/ B. Judd Hartman
|
Name:
|
|
B. Judd Hartman
|
Title:
|
|
Executive Vice President, General
|
|
|
Counsel and Secretary
|
|
|
|
|
|
|
|
|
Change
|
||||||||||||||||||
|
|
|
|
|
|
|
|
2019 vs. 2018
|
|
2018 vs. 2017
|
||||||||||||||||
(dollars in millions)
|
|
2019
|
|
2018
|
|
2017
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||||
Net authorizations (for the years ended December 31)
|
|
$
|
3,827.3
|
|
|
$
|
3,421.0
|
|
|
$
|
2,485.4
|
|
|
$
|
406.3
|
|
|
11.9
|
%
|
|
$
|
935.6
|
|
|
37.6
|
%
|
Backlog (as of December 31)
|
|
7,066.3
|
|
|
6,313.7
|
|
|
5,730.6
|
|
|
752.6
|
|
|
11.9
|
|
|
583.1
|
|
|
10.2
|
|
|||||
Backlog conversion (quarterly average for the years ended December 31)
|
|
11.9
|
%
|
|
11.9
|
%
|
|
11.7
|
%
|
|
|
|
—
|
|
|
|
|
0.2
|
|
|||||||
Net book-to-bill
|
|
1.2x
|
|
|
1.2x
|
|
|
0.9x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
||||||||||||||||||
|
|
Years Ended December 31,
|
|
2019 vs. 2018
|
|
2018 vs. 2017
|
||||||||||||||||||||
(dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||||
Revenue
|
|
$
|
4,031,017
|
|
|
$
|
3,748,971
|
|
|
$
|
2,767,476
|
|
|
$
|
282,046
|
|
|
7.5
|
%
|
|
$
|
981,495
|
|
|
35.5
|
%
|
Reimbursed revenue
|
|
—
|
|
|
—
|
|
|
233,574
|
|
|
—
|
|
|
n.m.
|
|
|
(233,574
|
)
|
|
n.m.
|
|
|||||
Total revenue
|
|
$
|
4,031,017
|
|
|
$
|
3,748,971
|
|
|
$
|
3,001,050
|
|
|
$
|
282,046
|
|
|
7.5
|
|
|
$
|
747,921
|
|
|
24.9
|
|
|
|
|
|
|
|
|
|
Change
|
||||||||||||||||||
|
|
Years Ended December 31,
|
|
2019 vs. 2018
|
|
2018 vs. 2017
|
||||||||||||||||||||
(dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||||
Direct costs
|
|
$
|
1,484,258
|
|
|
$
|
1,333,812
|
|
|
$
|
1,302,983
|
|
|
$
|
150,446
|
|
|
11.3
|
%
|
|
$
|
30,829
|
|
|
2.4
|
%
|
% of total revenue
|
|
36.8
|
%
|
|
35.6
|
%
|
|
43.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
||||||||||||||||||
|
|
Years Ended December 31,
|
|
2019 vs. 2018
|
|
2018 vs. 2017
|
||||||||||||||||||||
(dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||||
Reimbursed costs
|
|
$
|
924,634
|
|
|
$
|
940,913
|
|
|
$
|
233,574
|
|
|
$
|
(16,279
|
)
|
|
(1.7
|
)%
|
|
$
|
707,339
|
|
|
302.8
|
%
|
% of total revenue
|
|
22.9
|
%
|
|
25.1
|
%
|
|
7.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
||||||||||||||||||
|
|
Years Ended December 31,
|
|
2019 vs. 2018
|
|
2018 vs. 2017
|
||||||||||||||||||||
(dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||||
Selling, general and administrative expenses
|
|
$
|
938,806
|
|
|
$
|
813,035
|
|
|
$
|
809,333
|
|
|
$
|
125,771
|
|
|
15.5
|
%
|
|
$
|
3,702
|
|
|
0.5
|
%
|
% of total revenue
|
|
23.3
|
%
|
|
21.7
|
%
|
|
27.0
|
%
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Recapitalization costs
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
114,766
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Depreciation and amortization
|
|
$
|
264,830
|
|
|
$
|
258,974
|
|
|
$
|
279,066
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Goodwill and long-lived asset impairments
|
|
$
|
1,284
|
|
|
$
|
29,626
|
|
|
$
|
43,459
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Interest expense, net
|
|
$
|
311,744
|
|
|
$
|
263,618
|
|
|
$
|
253,891
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
(Loss) gain on investments
|
|
$
|
(19,043
|
)
|
|
$
|
15,936
|
|
|
$
|
92,750
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Other (expense) income, net
|
|
$
|
(27,143
|
)
|
|
$
|
21,701
|
|
|
$
|
(40,259
|
)
|
|
|
Years Ended December 31,
|
||||||||||
(dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Provision for (benefit from) income taxes
|
|
$
|
2,957
|
|
|
$
|
39,579
|
|
|
$
|
(284,360
|
)
|
Effective income tax rate
|
|
5.0
|
%
|
|
27.0
|
%
|
|
(1,726.6
|
)%
|
|
|
|
|
|
|
|
|
Change
|
||||||||||||||||||
|
|
Years Ended December 31,
|
|
2019 vs. 2018
|
|
2018 vs. 2017
|
||||||||||||||||||||
(dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||||
Segment revenue
|
|
$
|
3,354,163
|
|
|
$
|
3,182,870
|
|
|
$
|
2,319,103
|
|
|
$
|
171,293
|
|
|
5.4
|
%
|
|
$
|
863,767
|
|
|
37.2
|
%
|
Segment direct costs
|
|
1,162,678
|
|
|
1,064,557
|
|
|
1,053,557
|
|
|
98,121
|
|
|
9.2
|
|
|
11,000
|
|
|
1.0
|
|
|||||
Segment reimbursed costs
|
|
845,580
|
|
|
876,617
|
|
|
—
|
|
|
(31,037
|
)
|
|
(3.5
|
)
|
|
876,617
|
|
|
—
|
|
|||||
Segment SG&A expenses
|
|
529,425
|
|
|
475,242
|
|
|
464,794
|
|
|
54,183
|
|
|
11.4
|
|
|
10,448
|
|
|
2.2
|
|
|||||
Segment operating income
|
|
816,480
|
|
|
766,454
|
|
|
800,752
|
|
|
50,026
|
|
|
6.5
|
|
|
(34,298
|
)
|
|
(4.3
|
)
|
|
|
|
|
|
|
|
|
Change
|
||||||||||||||||||
|
|
Years Ended December 31,
|
|
2019 vs. 2018
|
|
2018 vs. 2017
|
||||||||||||||||||||
(dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||||
Segment revenue
|
|
$
|
676,854
|
|
|
$
|
566,101
|
|
|
$
|
448,373
|
|
|
$
|
110,753
|
|
|
19.6
|
%
|
|
$
|
117,728
|
|
|
26.3
|
%
|
Segment direct costs
|
|
307,346
|
|
|
258,472
|
|
|
235,137
|
|
|
48,874
|
|
|
18.9
|
|
|
23,335
|
|
|
9.9
|
|
|||||
Segment reimbursed costs
|
|
79,054
|
|
|
64,296
|
|
|
—
|
|
|
14,758
|
|
|
23.0
|
|
|
64,296
|
|
|
—
|
|
|||||
Segment SG&A expenses
|
|
81,373
|
|
|
68,305
|
|
|
60,097
|
|
|
13,068
|
|
|
19.1
|
|
|
8,208
|
|
|
13.7
|
|
|||||
Segment operating income
|
|
209,081
|
|
|
175,028
|
|
|
153,139
|
|
|
34,053
|
|
|
19.5
|
|
|
21,889
|
|
|
14.3
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Revenue:
|
|
|
|
|
|
||||||
Revenue
|
$
|
4,031,017
|
|
|
$
|
3,748,971
|
|
|
$
|
2,767,476
|
|
Reimbursed revenue
|
—
|
|
|
—
|
|
|
233,574
|
|
|||
Total revenue
|
4,031,017
|
|
|
3,748,971
|
|
|
3,001,050
|
|
|||
|
|
|
|
|
|
||||||
Operating costs and expenses:
|
|
|
|
|
|
||||||
Direct costs, exclusive of depreciation and amortization
|
1,484,258
|
|
|
1,333,812
|
|
|
1,302,983
|
|
|||
Reimbursed costs
|
924,634
|
|
|
940,913
|
|
|
233,574
|
|
|||
Selling, general and administrative expenses
|
938,806
|
|
|
813,035
|
|
|
809,333
|
|
|||
Recapitalization costs
|
—
|
|
|
—
|
|
|
114,766
|
|
|||
Depreciation and amortization
|
264,830
|
|
|
258,974
|
|
|
279,066
|
|
|||
Goodwill and long-lived asset impairments
|
1,284
|
|
|
29,626
|
|
|
43,459
|
|
|||
Total operating costs and expenses
|
3,613,812
|
|
|
3,376,360
|
|
|
2,783,181
|
|
|||
Income from operations
|
417,205
|
|
|
372,611
|
|
|
217,869
|
|
|||
Interest expense, net of interest income of $5,233, $5,454 and $3,553 in
|
|
|
|
|
|
||||||
2019, 2018 and 2017, respectively
|
(311,744
|
)
|
|
(263,618
|
)
|
|
(253,891
|
)
|
|||
(Loss) gain on investments
|
(19,043
|
)
|
|
15,936
|
|
|
92,750
|
|
|||
Other (expense) income, net
|
(27,143
|
)
|
|
21,701
|
|
|
(40,259
|
)
|
|||
Income before provision for (benefit from) income taxes
|
59,275
|
|
|
146,630
|
|
|
16,469
|
|
|||
Provision for (benefit from) income taxes
|
2,957
|
|
|
39,579
|
|
|
(284,360
|
)
|
|||
Income before equity in losses of unconsolidated affiliates
|
56,318
|
|
|
107,051
|
|
|
300,829
|
|
|||
Equity in losses of unconsolidated affiliates, net of income taxes
|
(3,563
|
)
|
|
(186
|
)
|
|
—
|
|
|||
Net income
|
52,755
|
|
|
106,865
|
|
|
300,829
|
|
|||
Net income attributable to noncontrolling interest
|
(4,934
|
)
|
|
(2,679
|
)
|
|
(4,802
|
)
|
|||
Net income attributable to PPD, Inc.
|
47,821
|
|
|
104,186
|
|
|
296,027
|
|
|||
Recapitalization investment portfolio consideration
|
6,846
|
|
|
(7,849
|
)
|
|
(97,136
|
)
|
|||
Net income attributable to common stockholders of PPD, Inc.
|
$
|
54,667
|
|
|
$
|
96,337
|
|
|
$
|
198,891
|
|
|
|
|
|
|
|
||||||
Earnings per share attributable to common stockholders of PPD, Inc.:
|
|
|
|
|
|
||||||
Basic
|
$
|
0.20
|
|
|
$
|
0.34
|
|
|
$
|
0.68
|
|
Diluted
|
$
|
0.19
|
|
|
$
|
0.34
|
|
|
$
|
0.68
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
279,285
|
|
|
279,238
|
|
|
291,027
|
|
|||
Diluted
|
280,693
|
|
|
279,317
|
|
|
293,826
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
$
|
52,755
|
|
|
$
|
106,865
|
|
|
$
|
300,829
|
|
|
|
|
|
|
|
||||||
Other comprehensive income (loss):
|
|
|
|
|
|
||||||
Foreign currency translation adjustments, net of income taxes of
|
|
|
|
|
|
||||||
$0, $0 and $16,825 in 2019, 2018 and 2017, respectively
|
24,824
|
|
|
(91,177
|
)
|
|
143,158
|
|
|||
Defined benefit pension plan adjustments, net of income taxes of
|
|
|
|
|
|
||||||
($259), $339 and $1,382 in 2019, 2018 and 2017, respectively
|
(1,314
|
)
|
|
1,504
|
|
|
10,923
|
|
|||
Derivative instruments adjustments, net of income taxes of
|
|
|
|
|
|
||||||
($2,804), $2,183 and $4,785 in 2019, 2018 and 2017, respectively
|
(9,523
|
)
|
|
11,159
|
|
|
9,219
|
|
|||
Other comprehensive income (loss)
|
13,987
|
|
|
(78,514
|
)
|
|
163,300
|
|
|||
Comprehensive income
|
66,742
|
|
|
28,351
|
|
|
464,129
|
|
|||
Comprehensive income attributable to noncontrolling interest
|
(5,144
|
)
|
|
(3,159
|
)
|
|
(5,315
|
)
|
|||
Comprehensive income attributable to PPD, Inc.
|
61,598
|
|
|
25,192
|
|
|
458,814
|
|
|||
Recapitalization investment portfolio consideration
|
6,846
|
|
|
(7,849
|
)
|
|
(97,136
|
)
|
|||
Comprehensive income attributable to common stockholders of PPD, Inc.
|
$
|
68,444
|
|
|
$
|
17,343
|
|
|
$
|
361,678
|
|
Assets
|
|||||||
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
345,187
|
|
|
553,066
|
|
|
Accounts receivable and unbilled services, net
|
1,326,614
|
|
|
1,260,724
|
|
||
Income taxes receivable
|
27,437
|
|
|
16,065
|
|
||
Prepaid expenses and other current assets
|
119,776
|
|
|
102,274
|
|
||
Total current assets
|
1,819,014
|
|
|
1,932,129
|
|
||
|
|
|
|
||||
Property and equipment, net
|
458,845
|
|
|
399,103
|
|
||
Investments in unconsolidated affiliates
|
34,028
|
|
|
8,756
|
|
||
Investments
|
250,348
|
|
|
265,715
|
|
||
Goodwill
|
1,764,104
|
|
|
1,723,378
|
|
||
Intangible assets, net
|
892,091
|
|
|
1,028,973
|
|
||
Other assets
|
156,220
|
|
|
131,307
|
|
||
Operating lease right-of-use assets
|
181,596
|
|
|
—
|
|
||
Total assets
|
$
|
5,556,246
|
|
|
$
|
5,489,361
|
|
Liabilities, Redeemable Noncontrolling Interest and Stockholders’ Deficit
|
|||||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
130,060
|
|
|
$
|
89,010
|
|
Accrued expenses:
|
|
|
|
||||
Payables to investigators
|
322,231
|
|
|
355,144
|
|
||
Accrued employee compensation
|
263,834
|
|
|
240,679
|
|
||
Accrued interest
|
44,527
|
|
|
35,681
|
|
||
Other accrued expenses
|
138,632
|
|
|
108,335
|
|
||
Income taxes payable
|
15,161
|
|
|
8,953
|
|
||
Unearned revenue
|
1,110,872
|
|
|
921,964
|
|
||
Current portion of operating lease liabilities
|
45,962
|
|
|
—
|
|
||
Current portion of long-term debt and finance lease obligations
|
35,794
|
|
|
34,907
|
|
||
Total current liabilities
|
2,107,073
|
|
|
1,794,673
|
|
||
|
|
|
|
||||
Accrued income taxes
|
38,465
|
|
|
26,597
|
|
||
Deferred tax liabilities
|
92,225
|
|
|
165,114
|
|
||
Recapitalization investment portfolio liability
|
191,678
|
|
|
198,524
|
|
||
Long-term operating lease liabilities, less current portion
|
153,766
|
|
|
—
|
|
||
Long-term debt and finance lease obligations, less current portion
|
5,608,134
|
|
|
4,760,777
|
|
||
Other liabilities
|
33,017
|
|
|
41,205
|
|
||
Total liabilities
|
8,224,358
|
|
|
6,986,890
|
|
||
Commitments and contingencies (Note 1)
|
|
|
|
||||
Redeemable noncontrolling interest
|
30,036
|
|
|
24,892
|
|
||
Stockholders’ deficit:
|
|
|
|
||||
Common stock $0.01 par value, 2,080,000 shares authorized;
|
|
|
|
||||
280,127 shares issued and 279,426 shares outstanding as of
|
|
|
|
||||
December 31, 2019 and 2,080,000 shares authorized;
|
|
|
|
||||
279,545 shares issued and 279,030 shares outstanding as of
|
2,801
|
|
|
2,795
|
|
||
December 31, 2018
|
|
|
|
||||
Treasury stock, at cost, 701 and 515 shares, respectively, at
|
(12,707
|
)
|
|
(8,933
|
)
|
||
December 31, 2019 and December 31, 2018
|
|
|
|
||||
Additional paid-in-capital
|
1,983
|
|
|
41,685
|
|
||
Accumulated deficit
|
(2,391,321
|
)
|
|
(1,245,077
|
)
|
||
Accumulated other comprehensive loss
|
(298,904
|
)
|
|
(312,891
|
)
|
||
Total stockholders’ deficit
|
(2,698,148
|
)
|
|
(1,522,421
|
)
|
||
Total liabilities, redeemable noncontrolling interest and stockholders’ deficit
|
$
|
5,556,246
|
|
|
$
|
5,489,361
|
|
|
|
|
|
|
PPD, Inc. Stockholders’ Deficit
|
||||||||||||||||||||||||||||||
|
|
|
|
|
Common Stock
|
|
Treasury Stock
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
Redeemable Noncontrolling Interest
|
|
|
Shares
|
|
Amount
|
|
Paid-in-Capital
|
|
Shares
|
|
Amount
|
|
Accumulated Other Comprehensive Loss
|
|
Accumulated Deficit
|
|
Total Stockholders’ Deficit
|
||||||||||||||||
Balance, December 31, 2016
|
|
$
|
19,330
|
|
|
|
313,411
|
|
|
$
|
3,134
|
|
|
$
|
4,209
|
|
|
1,068
|
|
|
$
|
(9,790
|
)
|
|
$
|
(397,677
|
)
|
|
$
|
(564,117
|
)
|
|
$
|
(964,241
|
)
|
Net income
|
|
4,802
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
296,027
|
|
|
296,027
|
|
|||||||
Other comprehensive income
|
|
513
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
163,300
|
|
|
—
|
|
|
163,300
|
|
|||||||
Vesting of restricted stock
|
|
—
|
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Issuance of common stock for stock option exercises
|
|
—
|
|
|
|
272
|
|
|
3
|
|
|
1,122
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,125
|
|
|||||||
Repurchases of common stock
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
201
|
|
|
(1,808
|
)
|
|
—
|
|
|
—
|
|
|
(1,808
|
)
|
|||||||
Stock-based compensation expense
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
74,299
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
74,299
|
|
|||||||
Recapitalization cancellation of treasury stock
|
|
—
|
|
|
|
(1,268
|
)
|
|
(12
|
)
|
|
5
|
|
|
(1,269
|
)
|
|
11,598
|
|
|
—
|
|
|
(11,591
|
)
|
|
—
|
|
|||||||
Recapitalization share issuances
|
|
—
|
|
|
|
184,080
|
|
|
1,841
|
|
|
769,098
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,999,062
|
|
|
2,770,001
|
|
|||||||
Recapitalization share redemptions
|
|
—
|
|
|
|
(219,958
|
)
|
|
(2,200
|
)
|
|
(778,100
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,529,576
|
)
|
|
(3,309,876
|
)
|
|||||||
Recapitalization cash option settlement
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
(52,207
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(142,299
|
)
|
|
(194,506
|
)
|
|||||||
Recapitalization share option settlement
|
|
—
|
|
|
|
2,391
|
|
|
23
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|||||||
Recapitalization investment portfolio consideration
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(217,170
|
)
|
|
(217,170
|
)
|
|||||||
Recapitalization tax benefit consideration
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(105,159
|
)
|
|
(105,159
|
)
|
|||||||
Recapitalization transaction costs
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,279
|
)
|
|
(7,279
|
)
|
|||||||
Employee stock purchases
|
|
—
|
|
|
|
496
|
|
|
5
|
|
|
7,462
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,467
|
|
|||||||
Purchase of noncontrolling interest
|
|
(2,912
|
)
|
|
|
—
|
|
|
—
|
|
|
(3,888
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,888
|
)
|
|||||||
Other
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|||||||
Balance, December 31, 2017
|
|
21,733
|
|
|
|
279,443
|
|
|
2,794
|
|
|
22,018
|
|
|
—
|
|
|
—
|
|
|
(234,377
|
)
|
|
(1,282,115
|
)
|
|
(1,491,680
|
)
|
|||||||
Impact from adoption of ASC 606, net of tax
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(55,467
|
)
|
|
(55,467
|
)
|
|||||||
Balance, January 1, 2018
|
|
21,733
|
|
|
|
279,443
|
|
|
2,794
|
|
|
22,018
|
|
|
—
|
|
|
—
|
|
|
(234,377
|
)
|
|
(1,337,582
|
)
|
|
(1,547,147
|
)
|
|||||||
Net income
|
|
2,679
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
104,186
|
|
|
104,186
|
|
|||||||
Other comprehensive income (loss)
|
|
480
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(78,514
|
)
|
|
—
|
|
|
(78,514
|
)
|
|||||||
Vesting of restricted stock
|
|
—
|
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Issuance of common stock for stock option exercises
|
|
—
|
|
|
|
61
|
|
|
1
|
|
|
922
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
923
|
|
|||||||
Repurchases of common stock
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
515
|
|
|
(8,933
|
)
|
|
—
|
|
|
—
|
|
|
(8,933
|
)
|
|||||||
Stock-based compensation expense
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
18,265
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,265
|
|
|||||||
Recapitalization investment portfolio consideration
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,849
|
)
|
|
(7,849
|
)
|
|||||||
Recapitalization tax benefit consideration
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,161
|
)
|
|
(3,161
|
)
|
|||||||
Employee stock purchases
|
|
—
|
|
|
|
32
|
|
|
—
|
|
|
480
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
480
|
|
|||||||
Other
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(671
|
)
|
|
(671
|
)
|
|||||||
Balance, December 31, 2018
|
|
24,892
|
|
|
|
279,545
|
|
|
2,795
|
|
|
41,685
|
|
|
515
|
|
|
(8,933
|
)
|
|
(312,891
|
)
|
|
(1,245,077
|
)
|
|
(1,522,421
|
)
|
|||||||
Net income
|
|
4,934
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,821
|
|
|
47,821
|
|
|||||||
Other comprehensive income
|
|
210
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,987
|
|
|
—
|
|
|
13,987
|
|
|||||||
Vesting of restricted stock
|
|
—
|
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Issuance of common stock for stock option exercises
|
|
—
|
|
|
|
301
|
|
|
3
|
|
|
4,521
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,524
|
|
|||||||
Issuance of common stock for acquisition
|
|
—
|
|
|
|
268
|
|
|
3
|
|
|
4,998
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,001
|
|
|||||||
Repurchases of common stock
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
186
|
|
|
(3,774
|
)
|
|
—
|
|
|
—
|
|
|
(3,774
|
)
|
|||||||
Stock-based compensation expense
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
15,632
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,632
|
|
|||||||
Modification of stock option awards to cash and liability awards
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
(19,669
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,669
|
)
|
|||||||
Return of capital and special dividend to stockholders
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
(45,184
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,200,816
|
)
|
|
(1,246,000
|
)
|
|||||||
Recapitalization investment portfolio consideration
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,846
|
|
|
6,846
|
|
|||||||
Other
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(95
|
)
|
|
(95
|
)
|
|||||||
Balance, December 31, 2019
|
|
$
|
30,036
|
|
|
|
280,127
|
|
|
$
|
2,801
|
|
|
$
|
1,983
|
|
|
701
|
|
|
$
|
(12,707
|
)
|
|
$
|
(298,904
|
)
|
|
$
|
(2,391,321
|
)
|
|
$
|
(2,698,148
|
)
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
52,755
|
|
|
$
|
106,865
|
|
|
$
|
300,829
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
264,830
|
|
|
258,974
|
|
|
279,066
|
|
|||
Goodwill and long-lived asset impairments
|
1,284
|
|
|
29,626
|
|
|
43,459
|
|
|||
Stock-based compensation expense
|
15,632
|
|
|
18,265
|
|
|
74,299
|
|
|||
Non-cash operating lease expense
|
40,633
|
|
|
—
|
|
|
—
|
|
|||
Amortization of debt issuance and modification costs and debt discount
|
17,768
|
|
|
10,082
|
|
|
9,001
|
|
|||
Amortization of accumulated other comprehensive income on terminated interest rate swaps
|
(9,523
|
)
|
|
(5,269
|
)
|
|
—
|
|
|||
Loss (gain) on investments
|
19,043
|
|
|
(15,936
|
)
|
|
(92,750
|
)
|
|||
Benefit from deferred income taxes
|
(84,795
|
)
|
|
(26,062
|
)
|
|
(317,385
|
)
|
|||
Amortization of costs to obtain a contract
|
11,432
|
|
|
8,693
|
|
|
—
|
|
|||
Other
|
12,929
|
|
|
(11,691
|
)
|
|
2,834
|
|
|||
Change in operating assets and liabilities, net of effect of businesses acquired or sold:
|
|
|
|
|
|
||||||
Accounts receivable and unbilled services, net
|
(28,075
|
)
|
|
(144,822
|
)
|
|
(12,300
|
)
|
|||
Prepaid expenses and other current assets
|
(11,465
|
)
|
|
18,510
|
|
|
36,787
|
|
|||
Other assets
|
(31,288
|
)
|
|
(26,819
|
)
|
|
(37,118
|
)
|
|||
Income taxes, net
|
7,712
|
|
|
606
|
|
|
(10,278
|
)
|
|||
Accounts payable, accrued expenses and other liabilities
|
26,283
|
|
|
(4,443
|
)
|
|
102,974
|
|
|||
Operating lease liabilities
|
(39,065
|
)
|
|
—
|
|
|
—
|
|
|||
Unearned revenue
|
166,856
|
|
|
206,827
|
|
|
(20,339
|
)
|
|||
Net cash provided by operating activities
|
432,946
|
|
|
423,406
|
|
|
359,079
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Purchases of property and equipment
|
(125,928
|
)
|
|
(116,145
|
)
|
|
(105,135
|
)
|
|||
Acquisitions of businesses, net of cash and cash equivalents acquired
|
(74,187
|
)
|
|
224
|
|
|
(24,219
|
)
|
|||
Capital contributions paid for investments
|
(4,069
|
)
|
|
(1,546
|
)
|
|
(1,844
|
)
|
|||
Distributions received from investments
|
452
|
|
|
27,778
|
|
|
36,397
|
|
|||
Investments in unconsolidated affiliates
|
(30,000
|
)
|
|
(9,000
|
)
|
|
—
|
|
|||
Proceeds from sale of business
|
—
|
|
|
8,000
|
|
|
—
|
|
|||
Other
|
504
|
|
|
164
|
|
|
2,058
|
|
|||
Net cash used in investing activities
|
(233,228
|
)
|
|
(90,525
|
)
|
|
(92,743
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Purchase of treasury stock
|
(4,012
|
)
|
|
(8,630
|
)
|
|
(1,808
|
)
|
|||
Proceeds from exercise of stock options
|
4,524
|
|
|
923
|
|
|
1,125
|
|
|||
Proceeds from issuance of HoldCo notes
|
891,000
|
|
|
—
|
|
|
550,000
|
|
|||
Payments on long-term debt and finance leases
|
(37,409
|
)
|
|
(35,387
|
)
|
|
(35,012
|
)
|
|||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
(7,080
|
)
|
|||
Payment of debt issuance and debt modification costs
|
(30,142
|
)
|
|
—
|
|
|
(11,939
|
)
|
|||
Proceeds from recapitalization share issuance
|
—
|
|
|
—
|
|
|
2,770,001
|
|
|||
Payout for recapitalization share redemptions
|
—
|
|
|
—
|
|
|
(3,309,876
|
)
|
|||
Recapitalization cash option settlement
|
—
|
|
|
—
|
|
|
(194,506
|
)
|
|||
Recapitalization transaction costs
|
—
|
|
|
—
|
|
|
(7,279
|
)
|
|||
Recapitalization tax benefit distribution
|
—
|
|
|
(108,320
|
)
|
|
—
|
|
|||
Recapitalization investment portfolio distribution
|
—
|
|
|
(16,008
|
)
|
|
(10,486
|
)
|
|||
Proceeds from employee stock purchases
|
—
|
|
|
480
|
|
|
7,467
|
|
|||
Return of capital and special dividend to stockholders
|
(1,246,000
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash used in financing activities
|
(422,039
|
)
|
|
(166,942
|
)
|
|
(249,393
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
14,442
|
|
|
(31,833
|
)
|
|
40,276
|
|
|||
Net (decrease) increase in cash and cash equivalents
|
(207,879
|
)
|
|
134,106
|
|
|
57,219
|
|
|||
Cash and cash equivalents, beginning of the period
|
553,066
|
|
|
418,960
|
|
|
361,741
|
|
|||
Cash and cash equivalents, end of the period
|
$
|
345,187
|
|
|
$
|
553,066
|
|
|
$
|
418,960
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Other (expense) income, net:
|
|
|
|
|
|
||||||
Foreign currency (losses) gains, net
|
$
|
(24,659
|
)
|
|
$
|
16,682
|
|
|
$
|
(40,132
|
)
|
Other income
|
3,778
|
|
|
8,728
|
|
|
706
|
|
|||
Other expense
|
(6,262
|
)
|
|
(3,709
|
)
|
|
(833
|
)
|
|||
Total other (expense) income, net
|
$
|
(27,143
|
)
|
|
$
|
21,701
|
|
|
$
|
(40,259
|
)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Cash paid for interest (for the years ended December 31)
|
$
|
300,528
|
|
|
$
|
262,921
|
|
|
$
|
238,826
|
|
Cash paid for income taxes, net (for the years ended December 31)
|
72,510
|
|
|
64,714
|
|
|
43,438
|
|
|||
Purchases of property and equipment in current liabilities (as of December 31)
|
29,924
|
|
|
17,461
|
|
|
22,725
|
|
Buildings
|
20-40 years
|
Furniture and equipment
|
4-18 years
|
Computer equipment and software
|
1-5 years
|
Trade names
|
10-23 years
|
Investigator/payer network
|
5-10 years
|
Technology/intellectual property
|
2-8 years
|
Know-how/processes
|
7-10 years
|
Backlog
|
1-6 years
|
Customer relationships
|
13-23 years
|
•
|
each issued and outstanding share of Jaguar I common stock was automatically canceled and converted into one share of initial PPD common stock;
|
•
|
shares of Jaguar I common stock held in treasury were canceled and retired for no cash or other consideration; and
|
•
|
PPD assumed the Jaguar I 2011 Equity Incentive Plan (the “Jaguar I Plan”) and each outstanding option to purchase Jaguar I common stock (a “Jaguar I Option”) was converted into an equivalent option to purchase the same number of shares of initial PPD common stock (a “PPD Option”), including the same terms, conditions and vesting requirements in place prior to the Reorganization Merger.
|
•
|
the Conversion occurred;
|
•
|
Buyer was funded with cash equity contributions totaling $770.2 million from investment funds affiliated with the Sponsors in exchange for the issuance of 51.1 million shares; and
|
•
|
a rollover of initial PPD common stock by one of the Sponsor affiliates and certain members of management occurred (collectively, the “Rollover Sellers”) for a total of $1.4 billion, whereby the Rollover Sellers contributed 92.5 million shares of initial PPD common stock (the “Rollover Shares”) in exchange for the same number of shares of Buyer common stock, plus the right to receive additional consideration as described below.
|
•
|
87.1 million shares of initial PPD common stock (including PPD restricted stock) issued and outstanding were canceled and converted into and became the right to receive from Buyer, without interest, $1.3 billion in cash consideration plus additional consideration as described below;
|
•
|
shares common stock of Buyer were converted into shares of PPD common stock, respectively;
|
•
|
outstanding initial PPD Options, whether or not vested or exercisable, became fully vested and were canceled and converted into the right to receive (i) the excess of the per share consideration over the applicable exercise price multiplied by the number of shares issuable upon exercise (the “PPD Option Consideration”), (ii) unpaid special cash bonuses (previously awarded, unvested and unpaid) with respect to such Jaguar I Options (“Special Cash Bonuses”) and (iii) additional consideration as described below. Certain members of management who held initial PPD Options received a portion of their PPD Option Consideration in the form of 2.4 million shares of PPD common stock. Refer below for more information on PPD Option Consideration and Special Cash Bonuses;
|
•
|
132.8 million shares of initial PPD common stock issued and outstanding were cancelled and converted into $2.0 billion of cash consideration payable to certain affiliates of the Majority Sponsors which was deferred (the “Deferred Recapitalization Payment”) until September 29, 2017 (the “Deferred Payment Date”). Refer below for more information on the Deferred Recapitalization Payment; and
|
•
|
the owners of initial PPD common stock after the Reorganization Merger and prior to the Recapitalization Merger (including the Rollover Sellers) and holders of initial PPD Options (collectively, the “Pre-Closing Holders”) each became entitled to receive additional consideration (“Additional Recapitalization Consideration”) related to certain tax benefits anticipated to be received by PPD as a result of the Recapitalization (as specified in the Merger Agreement) and a portion of future cash distributions, if any, to be received by the Company from its investments held at the time of the Recapitalization (the “Investment Portfolio”). Refer below for more information on the Additional Recapitalization Consideration.
|
•
|
Eagle II issued $550.0 million of senior unsecured notes, the proceeds of which were used to pay, in part, the cash consideration for the Recapitalization, the PPD Option Consideration and fees and expenses related to the Recapitalization. See Note 10, “Long-term Debt and Finance Lease Obligations” for additional information on the senior unsecured notes; and
|
•
|
the Company incurred $70.4 million of fees and expenses (“Transaction Costs”) related to the Recapitalization.
|
•
|
a comparison of actual total costs incurred in the current month to the budgeted total costs for the month;
|
•
|
detailed input from project teams relating to the status of the project, including the rate of enrollment, the ability to complete individual tasks in the time allotted, the anticipated total units to be achieved, an assessment of expected third-party pass-through and out-of-pocket costs and potential changes to the project scope;
|
•
|
a comparison of third-party pass-through and out-of-pocket costs to direct costs and direct units to be achieved;
|
•
|
a comparison of the fees invoiced and collected to revenue recognized;
|
•
|
a review of experience on projects recently completed or currently running; and
|
•
|
a review of specific customer and industry changes.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Accounts receivable
|
$
|
726,111
|
|
|
$
|
700,280
|
|
Unbilled services
|
609,674
|
|
|
565,473
|
|
||
Total accounts receivable and unbilled services
|
1,335,785
|
|
|
1,265,753
|
|
||
Allowance for doubtful accounts
|
(9,171
|
)
|
|
(5,029
|
)
|
||
Total accounts receivable and unbilled services, net
|
$
|
1,326,614
|
|
|
$
|
1,260,724
|
|
|
|
December 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Unearned revenue
|
|
$
|
1,110,872
|
|
|
$
|
921,964
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Balance at the beginning of the period
|
$
|
(5,029
|
)
|
|
$
|
(4,904
|
)
|
|
$
|
(3,105
|
)
|
Current year provision
|
(4,243
|
)
|
|
(618
|
)
|
|
(3,466
|
)
|
|||
Write-offs
|
101
|
|
|
493
|
|
|
1,667
|
|
|||
Balance at the end of the period
|
$
|
(9,171
|
)
|
|
$
|
(5,029
|
)
|
|
$
|
(4,904
|
)
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Capitalized costs to obtain a contract, net
|
$
|
25,766
|
|
|
$
|
23,062
|
|
|
|
|
|
||||
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
Amortization of costs to obtain a contract
|
$
|
11,432
|
|
|
$
|
8,693
|
|
|
Years Ended December 31,
|
||||
|
2019
|
|
2018
|
|
2017
|
Expected term (years)
|
6.5
|
|
6.5
|
|
6.5
|
Risk-free interest rate (%)
|
2.3
|
|
2.6
|
|
2.1
|
Expected volatility (%)
|
26.4
|
|
25.0
|
|
26.0
|
Expected dividend (%)
|
—
|
|
—
|
|
—
|
|
Stock Options
|
|
Weighted-
Average Exercise Price |
|
Weighted-
Average Remaining Contractual Life |
|
Aggregate
Intrinsic Value as of December 31, 2019 |
|||||
Outstanding at January 1, 2019
|
19,630
|
|
|
$
|
15.28
|
|
|
8.6 years
|
|
|
||
Granted
|
2,367
|
|
|
19.62
|
|
|
|
|
|
|||
Exercised
|
(301
|
)
|
|
15.06
|
|
|
|
|
|
|||
Forfeited
|
(1,108
|
)
|
|
15.00
|
|
|
|
|
|
|||
Expired
|
(285
|
)
|
|
15.23
|
|
|
|
|
|
|||
Outstanding at December 31, 2019
|
20,303
|
|
|
$
|
14.10
|
|
|
7.8 years
|
|
$
|
154,203
|
|
Exercisable at December 31, 2019
|
7,162
|
|
|
$
|
14.31
|
|
|
7.6 years
|
|
$
|
52,944
|
|
Vested or expected to vest at December 31, 2019
|
17,753
|
|
|
$
|
14.57
|
|
|
7.9 years
|
|
$
|
126,662
|
|
|
|
|
Stock Options Outstanding
|
|
Stock Options Exercisable
|
||||||||||||
|
Exercise Price
|
|
Number Outstanding at December 31, 2019
|
|
Weighted-Average Remaining Contractual Life
|
|
Weighted-Average Exercise Price
|
|
Number Exercisable at December 31, 2019
|
|
Weighted-Average Exercise Price
|
||||||
Time-based
|
$ 14.35 - $ 21.70
|
|
8,870
|
|
|
7.9 years
|
|
$
|
15.89
|
|
|
2,725
|
|
|
$
|
15.18
|
|
Performance-based
|
9.89 - 21.70
|
|
9,048
|
|
|
7.9 years
|
|
13.20
|
|
|
4,437
|
|
|
13.77
|
|
||
Liquidity/realization event-based
|
10.59 - 21.70
|
|
2,385
|
|
|
7.6 years
|
|
10.88
|
|
|
—
|
|
|
—
|
|
|
Restricted Stock
|
|
Weighted-Average
Grant Date Fair Value |
|||
Unvested at January 1, 2019
|
11
|
|
|
$
|
15.39
|
|
Granted
|
12
|
|
|
18.66
|
|
|
Vested
|
(14
|
)
|
|
16.48
|
|
|
Unvested at December 31, 2019
|
9
|
|
|
$
|
18.05
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||
Shares authorized
|
2,080,000
|
|
|
2,080,000
|
|
Shares issued
|
280,127
|
|
|
279,545
|
|
|
|
|
|
||
Shares outstanding:
|
|
|
|
||
Voting
|
276,052
|
|
|
276,052
|
|
Non-voting
|
3,374
|
|
|
2,978
|
|
Total shares outstanding
|
279,426
|
|
|
279,030
|
|
|
|
Acquired Intangible Assets
|
|
Weighted-Average Amortization Period (in years)
|
||
Customer relationships
|
|
$
|
2,000
|
|
|
15
|
Know-how/processes
|
|
1,800
|
|
|
8
|
|
Investigator network
|
|
1,900
|
|
|
8
|
|
Trade names
|
|
1,400
|
|
|
10
|
|
Total
|
|
$
|
7,100
|
|
|
10
|
Purchase price
|
$
|
45,187
|
|
|
|
||
Identifiable assets acquired:
|
|
||
Cash and cash equivalents
|
$
|
6,003
|
|
Accounts receivable and unbilled services, net
|
23,143
|
|
|
Prepaid expenses and other current assets
|
3,817
|
|
|
Property and equipment
|
19,273
|
|
|
Intangible assets
|
7,100
|
|
|
Other assets
|
5,403
|
|
|
Operating lease right-of-use assets
|
1,609
|
|
|
Total identifiable assets acquired
|
66,348
|
|
|
Liabilities assumed:
|
|
||
Accounts payable
|
(5,565
|
)
|
|
Other accrued expenses
|
(4,026
|
)
|
|
Unearned revenue
|
(7,210
|
)
|
|
Long-term debt and finance lease obligations
|
(38
|
)
|
|
Deferred tax liabilities
|
(3,447
|
)
|
|
Other liabilities
|
(331
|
)
|
|
Operating lease liabilities
|
(1,609
|
)
|
|
Total liabilities assumed
|
(22,226
|
)
|
|
Separately identifiable net assets acquired
|
44,122
|
|
|
Goodwill
|
1,065
|
|
|
Total net assets
|
$
|
45,187
|
|
|
|
Acquired Intangible Assets
|
|
Weighted-Average Amortization Period (in years)
|
||
Customer relationships
|
|
$
|
7,500
|
|
|
13
|
Trade names
|
|
900
|
|
|
10
|
|
Technology/intellectual property
|
|
5,100
|
|
|
8
|
|
Total
|
|
$
|
13,500
|
|
|
11
|
|
|
Acquired Intangible Assets
|
|
Weighted-Average Amortization Period (in years)
|
||
Customer relationships
|
|
$
|
5,300
|
|
|
15
|
Backlog
|
|
120
|
|
|
2
|
|
Investigator network
|
|
1,800
|
|
|
8
|
|
Know-how/processes
|
|
4,800
|
|
|
10
|
|
Total
|
|
$
|
12,020
|
|
|
12
|
Business Combination
|
|
Time Period
|
|
Net Revenue
|
|
Net (Loss) Income
|
||
Synarc
|
|
September 3, 2019 to December 31, 2019
|
|
$
|
17,170
|
|
|
Insignificant
|
Medimix
|
|
July 1, 2019 to December 31, 2019
|
|
5,996
|
|
|
Insignificant
|
|
Optimal
|
|
September 1, 2017 to December 31, 2017
|
|
3,339
|
|
|
Insignificant
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Medable, Inc.
|
$
|
15,684
|
|
|
$
|
8,756
|
|
Science 37, Inc.
|
18,344
|
|
|
—
|
|
||
Total
|
$
|
34,028
|
|
|
$
|
8,756
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Auven Therapeutics Holdings, L.P.
|
$
|
228,959
|
|
|
$
|
241,305
|
|
venBio Global Strategic Fund, L.P.
|
14,108
|
|
|
12,690
|
|
||
Venture capital funds and investment partnerships
|
5,386
|
|
|
2,129
|
|
||
Other investments
|
1,895
|
|
|
9,591
|
|
||
Total
|
$
|
250,348
|
|
|
$
|
265,715
|
|
|
December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Net investment (loss) income (for the years ended December 31)
|
$
|
(280,962
|
)
|
|
$
|
(140,943
|
)
|
|
$
|
598,285
|
|
Total assets (as of December 31)
|
1,396,040
|
|
|
1,645,063
|
|
|
2,005,154
|
|
|||
Total liabilities (as of December 31)
|
30,812
|
|
|
2,105
|
|
|
126,407
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Land
|
$
|
6,795
|
|
|
$
|
6,809
|
|
Buildings and leasehold improvements
|
384,975
|
|
|
345,262
|
|
||
Furniture and equipment
|
264,233
|
|
|
245,522
|
|
||
Computer equipment and software
|
311,381
|
|
|
307,126
|
|
||
Construction-in-progress, including information
|
|
|
|
|
|||
technology systems under development
|
76,972
|
|
|
39,110
|
|
||
Total property and equipment
|
1,044,356
|
|
|
943,829
|
|
||
Less: accumulated depreciation and amortization
|
(585,511
|
)
|
|
(544,726
|
)
|
||
Property and equipment, net
|
$
|
458,845
|
|
|
$
|
399,103
|
|
|
Total
|
|
Clinical Development Services
|
|
Laboratory Services
|
||||||
Balance at December 31, 2017:
|
|
|
|
|
|
||||||
Goodwill
|
$
|
1,887,805
|
|
|
$
|
1,661,191
|
|
|
$
|
226,614
|
|
Accumulated impairment losses
|
(97,085
|
)
|
|
(69,806
|
)
|
|
(27,279
|
)
|
|||
Goodwill, net
|
1,790,720
|
|
|
1,591,385
|
|
|
199,335
|
|
|||
2018 Activity:
|
|
|
|
|
|
||||||
Translation adjustments
|
(38,707
|
)
|
|
(38,707
|
)
|
|
—
|
|
|||
Goodwill impairment
|
(29,626
|
)
|
|
(29,626
|
)
|
|
—
|
|
|||
Measurement period adjustments for prior acquisition
|
991
|
|
|
991
|
|
|
—
|
|
|||
Balance at December 31, 2018:
|
|
|
|
|
|
||||||
Goodwill
|
1,850,089
|
|
|
1,623,475
|
|
|
226,614
|
|
|||
Accumulated impairment losses
|
(126,711
|
)
|
|
(99,432
|
)
|
|
(27,279
|
)
|
|||
Goodwill, net
|
1,723,378
|
|
|
1,524,043
|
|
|
199,335
|
|
|||
2019 Activity:
|
|
|
|
|
|
||||||
Translation adjustments
|
12,814
|
|
|
12,814
|
|
|
—
|
|
|||
Goodwill recorded from current year acquisitions
|
27,912
|
|
|
27,912
|
|
|
—
|
|
|||
Balance at December 31, 2019:
|
|
|
|
|
|
||||||
Goodwill
|
1,890,815
|
|
|
1,664,201
|
|
|
226,614
|
|
|||
Accumulated impairment losses
|
(126,711
|
)
|
|
(99,432
|
)
|
|
(27,279
|
)
|
|||
Goodwill, net
|
$
|
1,764,104
|
|
|
$
|
1,564,769
|
|
|
$
|
199,335
|
|
|
|
December 31,
|
||||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||||
|
|
Carrying Amount
|
|
Accumulated Amortization
|
|
Net
|
|
Carrying Amount
|
|
Accumulated Amortization
|
|
Net
|
||||||||||||
Customer relationships
|
|
$
|
884,788
|
|
|
$
|
(415,427
|
)
|
|
$
|
469,361
|
|
|
$
|
870,648
|
|
|
$
|
(356,099
|
)
|
|
$
|
514,549
|
|
Trade names
|
|
372,210
|
|
|
(139,141
|
)
|
|
233,069
|
|
|
368,189
|
|
|
(121,614
|
)
|
|
246,575
|
|
||||||
Backlog
|
|
177,599
|
|
|
(175,571
|
)
|
|
2,028
|
|
|
176,610
|
|
|
(172,884
|
)
|
|
3,726
|
|
||||||
Investigator/payer network
|
|
236,082
|
|
|
(185,478
|
)
|
|
50,604
|
|
|
233,356
|
|
|
(161,219
|
)
|
|
72,137
|
|
||||||
Technology/intellectual property
|
|
8,600
|
|
|
(3,319
|
)
|
|
5,281
|
|
|
3,500
|
|
|
(2,700
|
)
|
|
800
|
|
||||||
Know-how/processes
|
|
586,971
|
|
|
(455,223
|
)
|
|
131,748
|
|
|
582,011
|
|
|
(391,593
|
)
|
|
190,418
|
|
||||||
Favorable leases
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,700
|
|
|
(932
|
)
|
|
768
|
|
||||||
Total
|
|
$
|
2,266,250
|
|
|
$
|
(1,374,159
|
)
|
|
$
|
892,091
|
|
|
$
|
2,236,014
|
|
|
$
|
(1,207,041
|
)
|
|
$
|
1,028,973
|
|
Year
|
|
Amortization Expense
|
||
2020
|
|
$
|
157,935
|
|
2021
|
|
145,842
|
|
|
2022
|
|
74,678
|
|
|
2023
|
|
67,652
|
|
|
2024
|
|
61,390
|
|
|
Thereafter
|
|
384,594
|
|
|
Total future amortization expense
|
|
$
|
892,091
|
|
|
|
|
|
|
|
|
December 31,
|
||||||
|
Maturity Date
|
|
Effective Rate
|
|
Stated Rate
|
|
2019
|
|
2018
|
||||
Term Loan
|
August 2022
|
|
4.51%
|
|
4.30%
|
|
$
|
3,096,429
|
|
|
$
|
3,128,852
|
|
OpCo Notes
|
August 2023
|
|
6.61%
|
|
6.38%
|
|
1,125,000
|
|
|
1,125,000
|
|
||
Initial HoldCo Notes
|
May 2022
|
|
8.92%
|
|
7.63%
|
|
550,000
|
|
|
550,000
|
|
||
Additional HoldCo Notes
|
May 2022
|
|
8.90%
|
|
7.75%
|
|
900,000
|
|
|
—
|
|
||
Other debt
|
April 2025
|
|
1.13%
|
|
1.13%
|
|
5,707
|
|
|
8,950
|
|
||
Finance lease obligations
|
Various
|
|
Various
|
|
Various
|
|
28,726
|
|
|
23,815
|
|
||
|
|
|
|
|
|
|
5,705,862
|
|
|
4,836,617
|
|
||
Unamortized debt discount
|
|
(13,956
|
)
|
|
(9,008
|
)
|
|||||||
Unamortized debt issuance costs
|
|
(47,978
|
)
|
|
(31,925
|
)
|
|||||||
Current portion of long-term debt and finance lease obligations
|
|
(35,794
|
)
|
|
(34,907
|
)
|
|||||||
Long-term debt and finance lease obligations, less current portion
|
|
$
|
5,608,134
|
|
|
$
|
4,760,777
|
|
|
Maturity Date
|
|
Interest Rate
|
|
Committed Credit
|
|
Available Credit December 31, 2019
|
|
Available Credit December 31, 2018
|
||||||
Revolving Credit Facility
|
May 15, 2022
|
|
LIBOR + 3.25%
|
|
$
|
300,000
|
|
|
$
|
298,370
|
|
|
$
|
298,370
|
|
Year
|
|
Amount
|
||
2020
|
|
$
|
35,794
|
|
2021
|
|
36,014
|
|
|
2022
|
|
4,485,451
|
|
|
2023
|
|
1,128,587
|
|
|
2024
|
|
3,477
|
|
|
Thereafter
|
|
16,539
|
|
|
Total
|
|
$
|
5,705,862
|
|
Classification
|
|
December 31, 2019
|
||
Property and equipment, net
|
|
$
|
23,084
|
|
|
|
|
||
Current portion of long-term debt and finance lease obligations
|
|
$
|
2,861
|
|
Long-term debt and finance lease obligations, less current portion
|
|
24,510
|
|
|
Total finance lease liabilities
|
|
$
|
27,371
|
|
Lease expenses
|
|
Year Ended December 31, 2019
|
||
Finance lease cost:
|
|
|
||
Amortization of ROU assets
|
|
$
|
2,497
|
|
Interest on lease liabilities
|
|
1,968
|
|
|
Operating lease expense
|
|
54,179
|
|
|
Short-term lease expense
|
|
1,301
|
|
|
Variable lease expense
|
|
15,804
|
|
|
Total lease expense
|
|
$
|
75,749
|
|
|
|
Year Ended December 31, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
||
Operating cash flows for operating leases
|
|
$
|
52,502
|
|
Operating cash flows for finance leases
|
|
1,968
|
|
|
Financing cash flows for finance leases
|
|
1,948
|
|
|
|
|
|
||
ROU assets obtained in exchange for lease obligations:
|
|
|
||
Operating leases
|
|
42,520
|
|
|
Finance leases
|
|
3,736
|
|
|
|
December 31, 2019
|
|
Weighted-average remaining lease term:
|
|
|
|
Operating leases
|
|
6.3 years
|
|
Finance leases
|
|
8.5 years
|
|
Weighted-average discount rate:
|
|
|
|
Operating leases
|
|
5.8
|
%
|
Finance leases
|
|
7.2
|
%
|
Year
|
|
Operating Leases
|
|
Finance Leases
|
|
Total
|
||||||
2020
|
|
$
|
55,907
|
|
|
$
|
4,730
|
|
|
$
|
60,637
|
|
2021
|
|
49,195
|
|
|
4,865
|
|
|
54,060
|
|
|||
2022
|
|
35,476
|
|
|
5,000
|
|
|
40,476
|
|
|||
2023
|
|
25,822
|
|
|
4,610
|
|
|
30,432
|
|
|||
2024
|
|
18,239
|
|
|
4,335
|
|
|
22,574
|
|
|||
2025 and thereafter
|
|
58,479
|
|
|
12,069
|
|
|
70,548
|
|
|||
Total lease payments
|
|
243,118
|
|
|
35,609
|
|
|
278,727
|
|
|||
Less: imputed interest
|
|
(43,390
|
)
|
|
(8,238
|
)
|
|
(51,628
|
)
|
|||
Total
|
|
$
|
199,728
|
|
|
$
|
27,371
|
|
|
$
|
227,099
|
|
Year
|
|
Operating Leases
|
|
Capital Leases
|
|
Total
|
||||||
2019
|
|
$
|
55,120
|
|
|
$
|
2,484
|
|
|
$
|
57,604
|
|
2020
|
|
52,228
|
|
|
2,458
|
|
|
54,686
|
|
|||
2021
|
|
43,490
|
|
|
2,751
|
|
|
46,241
|
|
|||
2022
|
|
29,131
|
|
|
3,032
|
|
|
32,163
|
|
|||
2023
|
|
19,829
|
|
|
2,773
|
|
|
22,602
|
|
|||
2024 and thereafter
|
|
71,895
|
|
|
10,317
|
|
|
82,212
|
|
|||
Total lease payments
|
|
$
|
271,693
|
|
|
$
|
23,815
|
|
|
$
|
295,508
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Domestic
|
$
|
668,036
|
|
|
$
|
118,393
|
|
|
$
|
(219,274
|
)
|
Foreign
|
(608,761
|
)
|
|
28,237
|
|
|
235,743
|
|
|||
Income before provision for (benefit from) income taxes
|
$
|
59,275
|
|
|
$
|
146,630
|
|
|
$
|
16,469
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
U.S. federal income taxes:
|
|
|
|
|
|
||||||
Current
|
$
|
32,051
|
|
|
$
|
16,775
|
|
|
$
|
7,252
|
|
Deferred
|
(55,206
|
)
|
|
(24,426
|
)
|
|
(293,164
|
)
|
|||
U.S. state income taxes:
|
|
|
|
|
|
|
|
|
|||
Current
|
1,614
|
|
|
2,843
|
|
|
3,406
|
|
|||
Deferred
|
(18,658
|
)
|
|
(3,038
|
)
|
|
(15,074
|
)
|
|||
Foreign income taxes:
|
|
|
|
|
|
|
|
|
|||
Current
|
44,657
|
|
|
49,411
|
|
|
25,192
|
|
|||
Deferred
|
(1,501
|
)
|
|
(1,986
|
)
|
|
(11,972
|
)
|
|||
Provision for (benefit from) income taxes
|
$
|
2,957
|
|
|
$
|
39,579
|
|
|
$
|
(284,360
|
)
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Effective tax rate
|
5.0
|
%
|
|
27.0
|
%
|
|
(1,726.6
|
)%
|
|||
Income tax expense at federal statutory rate
|
$
|
12,461
|
|
|
$
|
30,792
|
|
|
$
|
5,764
|
|
State taxes, net of federal tax benefit
|
(13,437
|
)
|
|
(706
|
)
|
|
(4,577
|
)
|
|||
Nondeductible interest
|
7,781
|
|
|
9,749
|
|
|
7,643
|
|
|||
Residual tax impact on foreign earnings
|
—
|
|
|
—
|
|
|
(91,820
|
)
|
|||
Research and development credits
|
(11,206
|
)
|
|
(9,609
|
)
|
|
(9,321
|
)
|
|||
Other nondeductible transaction costs
|
1,226
|
|
|
—
|
|
|
—
|
|
|||
Recapitalization costs, net
|
—
|
|
|
—
|
|
|
(36,403
|
)
|
|||
Goodwill impairment
|
—
|
|
|
6,221
|
|
|
13,431
|
|
|||
Rate change
|
—
|
|
|
—
|
|
|
(110,290
|
)
|
|||
Change in valuation allowance
|
(6,550
|
)
|
|
8,532
|
|
|
(6,318
|
)
|
|||
Foreign tax rate differential
|
39,776
|
|
|
(40,724
|
)
|
|
(50,222
|
)
|
|||
Foreign tax credit
|
(39,456
|
)
|
|
(24,999
|
)
|
|
—
|
|
|||
Global intangible low-taxed income
|
65,918
|
|
|
46,269
|
|
|
—
|
|
|||
Foreign-derived intangible income
|
—
|
|
|
(6,225
|
)
|
|
—
|
|
|||
Provision to return adjustment
|
(2,948
|
)
|
|
(9,098
|
)
|
|
(1,116
|
)
|
|||
Other taxes
|
1,542
|
|
|
2,358
|
|
|
1,645
|
|
|||
Other permanent items
|
3,623
|
|
|
2,417
|
|
|
(1,571
|
)
|
|||
Intercompany financing
|
(67,607
|
)
|
|
13,981
|
|
|
(3,780
|
)
|
|||
Effect of double taxation, net of dividend received
|
2,164
|
|
|
4,022
|
|
|
4,598
|
|
|||
Unrecognized tax benefits
|
9,807
|
|
|
6,541
|
|
|
(1,752
|
)
|
|||
Other, net
|
(137
|
)
|
|
58
|
|
|
(271
|
)
|
|||
Provision for (benefit from) income taxes
|
$
|
2,957
|
|
|
$
|
39,579
|
|
|
$
|
(284,360
|
)
|
|
December 31,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||
Property and equipment and intangible assets
|
$
|
—
|
|
|
$
|
232,945
|
|
|
$
|
—
|
|
|
$
|
255,583
|
|
Operating lease obligations/ROU assets
|
49,932
|
|
|
46,404
|
|
|
—
|
|
|
—
|
|
||||
Accrued expenses
|
26,412
|
|
|
—
|
|
|
15,611
|
|
|
—
|
|
||||
Investment basis difference
|
—
|
|
|
32,066
|
|
|
—
|
|
|
39,854
|
|
||||
Stock options and restricted stock
|
11,173
|
|
|
—
|
|
|
8,793
|
|
|
—
|
|
||||
Future benefit of tax credits
|
25,920
|
|
|
—
|
|
|
19,755
|
|
|
—
|
|
||||
Future benefit of carryforward losses
|
53,077
|
|
|
—
|
|
|
57,042
|
|
|
—
|
|
||||
Uncertain tax benefits
|
1,026
|
|
|
—
|
|
|
4,227
|
|
|
—
|
|
||||
Unearned revenue
|
32,230
|
|
|
—
|
|
|
49,044
|
|
|
—
|
|
||||
Other
|
21,410
|
|
|
25,800
|
|
|
34,584
|
|
|
34,099
|
|
||||
Disallowed interest carryforward
|
78,697
|
|
|
—
|
|
|
74,221
|
|
|
—
|
|
||||
Valuation allowance
|
(38,178
|
)
|
|
—
|
|
|
(88,980
|
)
|
|
—
|
|
||||
Total deferred income taxes
|
$
|
261,699
|
|
|
$
|
337,215
|
|
|
$
|
174,297
|
|
|
$
|
329,536
|
|
|
December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Balance at the beginning of the period
|
$
|
(88,980
|
)
|
|
$
|
(78,025
|
)
|
|
$
|
(79,740
|
)
|
Additions charged to costs and expenses
|
(2,463
|
)
|
|
(11,527
|
)
|
|
(5,375
|
)
|
|||
Additions or reductions charged to other accounts (1)
|
43,418
|
|
|
—
|
|
|
(197
|
)
|
|||
Reductions charged to costs and expenses
|
9,847
|
|
|
572
|
|
|
7,287
|
|
|||
Balance at end of the period
|
$
|
(38,178
|
)
|
|
$
|
(88,980
|
)
|
|
$
|
(78,025
|
)
|
|
December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Unrecognized tax benefit at beginning of period
|
$
|
28,442
|
|
|
$
|
21,890
|
|
|
$
|
20,102
|
|
Gross increases - tax positions in prior period
|
5,997
|
|
|
6,408
|
|
|
4,606
|
|
|||
Gross decreases - tax positions in prior period
|
(7,967
|
)
|
|
(277
|
)
|
|
(839
|
)
|
|||
Gross increases - tax positions in current period
|
13,908
|
|
|
7,970
|
|
|
1,488
|
|
|||
Foreign exchange rate movements
|
49
|
|
|
(275
|
)
|
|
161
|
|
|||
Lapse of statute
|
(696
|
)
|
|
(7,274
|
)
|
|
(3,628
|
)
|
|||
Unrecognized tax benefit at end of period
|
$
|
39,733
|
|
|
$
|
28,442
|
|
|
$
|
21,890
|
|
|
|
|
Pre-Tax Gain Recognized in OCI or OCL
|
||||||||||
Derivatives in Cash Flow Hedging Relationships
|
|
Years Ended December 31,
|
|||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||||
Foreign currency forward contracts
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,708
|
|
|
Interest rate swaps
|
|
—
|
|
|
18,960
|
|
|
2,269
|
|
|
|
|
|
Pre-Tax Gain (Loss) Reclassified from AOCL or AOCI into Income
|
||||||||||
Derivatives in Cash Flow Hedging Relationships
|
|
Location of Gain (Loss) Reclassified from AOCL or AOCI into Statements of Operations
|
|
Years Ended December 31,
|
||||||||||
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Foreign currency forward contracts
|
|
Revenue
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,887
|
|
Foreign currency forward contracts
|
|
Direct costs
|
|
—
|
|
|
—
|
|
|
3,000
|
|
|||
Interest rate swaps
|
|
Interest expense, net
|
|
12,327
|
|
|
5,618
|
|
|
(11,914
|
)
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Net periodic pension cost (credit):
|
|
|
|
|
|
||||||
Interest cost
|
$
|
2,397
|
|
|
$
|
2,370
|
|
|
$
|
2,596
|
|
Expected return on plan assets
|
(2,106
|
)
|
|
(3,195
|
)
|
|
(4,125
|
)
|
|||
Amortization of actuarial loss
|
605
|
|
|
784
|
|
|
1,693
|
|
|||
Net periodic pension cost (credit)
|
$
|
896
|
|
|
$
|
(41
|
)
|
|
$
|
164
|
|
|
|
|
|
|
|
||||||
Other changes in plan assets and benefit obligations recognized in OCL or (OCI):
|
|
|
|
|
|
||||||
Net actuarial loss (gain) arising during period
|
$
|
2,180
|
|
|
$
|
(1,169
|
)
|
|
$
|
(11,881
|
)
|
Amortization of actuarial loss
|
(605
|
)
|
|
(784
|
)
|
|
(1,693
|
)
|
|||
Foreign currency translation adjustment
|
—
|
|
|
110
|
|
|
1,269
|
|
|||
Total OCL or (OCI)
|
$
|
1,575
|
|
|
$
|
(1,843
|
)
|
|
$
|
(12,305
|
)
|
|
|
|
|
|
|
||||||
Total recognized in net periodic pension cost (credit) and OCL or (OCI)
|
$
|
2,471
|
|
|
$
|
(1,884
|
)
|
|
$
|
(12,141
|
)
|
|
Years Ended December 31,
|
||||
|
2019
|
|
2018
|
|
2017
|
Discount rate
|
3.0%
|
|
2.6%
|
|
2.7%
|
Rate of compensation increase
|
3.7%
|
|
3.7%
|
|
3.7%
|
Long-term rate of return on plan assets
|
2.5%
|
|
3.7%
|
|
5.6%
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Change in benefit obligation:
|
|
|
|
||||
Projected benefit obligation, beginning of year
|
$
|
80,435
|
|
|
$
|
91,356
|
|
Interest cost
|
2,397
|
|
|
2,370
|
|
||
Net actuarial loss (gain)
|
11,287
|
|
|
(6,400
|
)
|
||
Plan amendments
|
—
|
|
|
135
|
|
||
Benefits paid
|
(2,465
|
)
|
|
(2,168
|
)
|
||
Foreign currency translation adjustment
|
811
|
|
|
(4,858
|
)
|
||
Projected benefit obligation, end of year
|
$
|
92,465
|
|
|
$
|
80,435
|
|
|
|
|
|
||||
Change in plan assets:
|
|
|
|
||||
Fair value of plan assets, beginning of year
|
$
|
84,894
|
|
|
$
|
88,794
|
|
Actual return on plan assets
|
11,254
|
|
|
(1,716
|
)
|
||
Employer contributions
|
—
|
|
|
5,077
|
|
||
Benefits paid
|
(2,465
|
)
|
|
(2,168
|
)
|
||
Foreign currency translation adjustment
|
867
|
|
|
(5,093
|
)
|
||
Fair value of plan assets, end of year
|
$
|
94,550
|
|
|
$
|
84,894
|
|
|
|
|
|
||||
Funded status recorded as other assets
|
$
|
2,085
|
|
|
$
|
4,459
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Projected benefit obligation
|
$
|
92,465
|
|
|
$
|
80,435
|
|
Accumulated benefit obligation
|
89,637
|
|
|
76,676
|
|
||
Fair value of plan assets
|
94,550
|
|
|
84,894
|
|
Year
|
|
Amount
|
||
2021
|
|
$
|
3,639
|
|
2022
|
|
3,769
|
|
|
Total
|
|
$
|
7,408
|
|
|
December 31,
|
||
|
2019
|
|
2018
|
Discount rate
|
2.1%
|
|
3.0%
|
Rate of compensation increase
|
3.6%
|
|
3.7%
|
|
|
|
|
Weighted-Average Asset Allocation
|
|||||
|
|
Target
|
|
December 31,
|
|||||
Asset Category
|
|
Allocation
|
|
2019
|
|
2018
|
|||
Equity securities
|
|
38.5
|
%
|
|
39.0
|
%
|
|
38.9
|
%
|
Debt securities
|
|
61.5
|
%
|
|
60.8
|
%
|
|
61.0
|
%
|
Cash
|
|
—
|
%
|
|
0.2
|
%
|
|
0.1
|
%
|
Total
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Year
|
|
Amount
|
||
2020
|
|
$
|
941
|
|
2021
|
|
955
|
|
|
2022
|
|
971
|
|
|
2023
|
|
986
|
|
|
2024
|
|
1,002
|
|
|
Next 5 years
|
|
5,248
|
|
|
Total
|
|
$
|
10,103
|
|
As of December 31, 2019
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Investments
|
$
|
1,895
|
|
|
$
|
—
|
|
|
$
|
248,453
|
|
|
$
|
250,348
|
|
Total assets
|
$
|
1,895
|
|
|
$
|
—
|
|
|
$
|
248,453
|
|
|
$
|
250,348
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Contingent consideration
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,489
|
|
|
$
|
9,489
|
|
Recapitalization investment portfolio liability
|
—
|
|
|
—
|
|
|
191,678
|
|
|
191,678
|
|
||||
Total liabilities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
201,167
|
|
|
$
|
201,167
|
|
As of December 31, 2018
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Investments
|
$
|
9,591
|
|
|
$
|
—
|
|
|
$
|
256,124
|
|
|
$
|
265,715
|
|
Total assets
|
$
|
9,591
|
|
|
$
|
—
|
|
|
$
|
256,124
|
|
|
$
|
265,715
|
|
|
|
|
|
|
|
|
|
||||||||
Liability
|
|
|
|
|
|
|
|
||||||||
Recapitalization investment portfolio liability
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
198,524
|
|
|
$
|
198,524
|
|
Total liability
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
198,524
|
|
|
$
|
198,524
|
|
|
|
Quantitative Information About Level 3 Fair Value Measurements for December 31, 2019
|
||||||
Description
|
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range of Rates
|
Fair value option investments
|
|
$243,067
|
|
Market evaluation/pricing models
|
|
Discount for lack of marketability
|
|
10.0% - 30.0%
|
|
|
|
|
Recent acquisition transactions
|
|
Discount for lack of control
|
|
20.0% - 35.0%
|
|
|
|
|
|
|
|
|
|
|
|
Quantitative information about Level 3 Fair Value Measurements for December 31, 2018
|
||||||
Description
|
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range of Rates
|
Fair value option investments
|
|
$253,995
|
|
Market evaluation/pricing models
|
|
Discount for lack of marketability
|
|
12.5% - 27.5%
|
|
|
|
|
Recent acquisition transactions
|
|
Discount for lack of control
|
|
25.0% - 30.0%
|
|
2019
|
|
2018
|
||||
Balance as of January 1,
|
$
|
256,124
|
|
|
$
|
272,431
|
|
Reclassifications from cost method to fair value method
|
—
|
|
|
3,610
|
|
||
Recognized fair value (loss) gain
|
(11,288
|
)
|
|
9,691
|
|
||
Cash distributions received
|
(452
|
)
|
|
(27,778
|
)
|
||
Capital contributions paid
|
4,069
|
|
|
1,546
|
|
||
Transfer out to Level 1
|
—
|
|
|
(3,376
|
)
|
||
Balance as of December 31,
|
$
|
248,453
|
|
|
$
|
256,124
|
|
|
2019
|
|
2018
|
||||
Balance as of January 1,
|
$
|
198,524
|
|
|
$
|
206,507
|
|
Recapitalization investment portfolio consideration change in value
|
(6,846
|
)
|
|
7,849
|
|
||
Cash distributions paid
|
—
|
|
|
(15,832
|
)
|
||
Balance as of December 31,
|
$
|
191,678
|
|
|
$
|
198,524
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
|
Carrying Amount
|
|
Estimated Fair Value
|
|
Carrying Amount
|
|
Estimated Fair Value
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
345,187
|
|
|
$
|
345,187
|
|
|
$
|
553,066
|
|
|
$
|
553,066
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Term Loan
|
3,096,429
|
|
|
3,111,911
|
|
|
3,128,552
|
|
|
2,933,299
|
|
||||
OpCo Notes
|
1,125,000
|
|
|
1,164,566
|
|
|
1,125,000
|
|
|
1,077,874
|
|
||||
Initial HoldCo Notes
|
550,000
|
|
|
559,873
|
|
|
550,000
|
|
|
531,878
|
|
||||
Additional HoldCo Notes
|
900,000
|
|
|
915,120
|
|
|
—
|
|
|
—
|
|
||||
Other debt
|
5,707
|
|
|
5,707
|
|
|
8,950
|
|
|
8,950
|
|
Annual
|
Foreign
Currency Translation |
|
Derivative
Instruments |
|
Pension Plan |
|
Accumulated Other Comprehensive
Loss |
||||||||
Balance as of December 31, 2016
|
$
|
(383,257
|
)
|
|
$
|
(2,289
|
)
|
|
$
|
(12,131
|
)
|
|
$
|
(397,677
|
)
|
OCI before reclassifications
|
126,333
|
|
|
5,122
|
|
|
9,765
|
|
|
141,220
|
|
||||
Amounts reclassified from AOCL
|
16,825
|
|
|
4,097
|
|
|
1,158
|
|
|
22,080
|
|
||||
Net OCI
|
143,158
|
|
|
9,219
|
|
|
10,923
|
|
|
163,300
|
|
||||
Balance as of December 31, 2017
|
(240,099
|
)
|
|
6,930
|
|
|
(1,208
|
)
|
|
(234,377
|
)
|
||||
(OCL) or OCI before reclassifications
|
(91,177
|
)
|
|
14,498
|
|
|
861
|
|
|
(75,818
|
)
|
||||
Amounts reclassified from AOCI or AOCL
|
—
|
|
|
(4,261
|
)
|
|
643
|
|
|
(3,618
|
)
|
||||
Other
|
—
|
|
|
922
|
|
|
—
|
|
|
922
|
|
||||
Net (OCL) or OCI
|
(91,177
|
)
|
|
11,159
|
|
|
1,504
|
|
|
(78,514
|
)
|
||||
Balance as of December 31, 2018
|
(331,276
|
)
|
|
18,089
|
|
|
296
|
|
|
(312,891
|
)
|
||||
OCI or (OCL) before reclassifications
|
24,824
|
|
|
—
|
|
|
(1,803
|
)
|
|
23,021
|
|
||||
Amounts reclassified from AOCL or AOCI
|
—
|
|
|
(9,523
|
)
|
|
489
|
|
|
(9,034
|
)
|
||||
Net OCI or (OCL)
|
24,824
|
|
|
(9,523
|
)
|
|
(1,314
|
)
|
|
13,987
|
|
||||
Balance as of December 31, 2019
|
$
|
(306,452
|
)
|
|
$
|
8,566
|
|
|
$
|
(1,018
|
)
|
|
$
|
(298,904
|
)
|
|
|
Years Ended December 31,
|
|
|
||||||||||
Details about AOCI or AOCL Components
|
|
2019
|
|
2018
|
|
2017
|
|
Affected line item in statements of operations
|
||||||
Gains (losses) on derivative instruments:
|
|
|
|
|
|
|
|
|
||||||
Foreign currency forward contracts
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,887
|
|
|
Revenue
|
Foreign currency forward contracts
|
|
—
|
|
|
—
|
|
|
3,000
|
|
|
Direct costs
|
|||
Interest rate swaps
|
|
12,327
|
|
|
5,618
|
|
|
(11,914
|
)
|
|
Interest expense, net
|
|||
Total before income tax (expense) benefit
|
|
12,327
|
|
|
5,618
|
|
|
(7,027
|
)
|
|
|
|||
Income tax (expense) benefit
|
|
(2,804
|
)
|
|
(1,357
|
)
|
|
2,930
|
|
|
Provision for (benefit from) income taxes
|
|||
Total net of income tax
|
|
$
|
9,523
|
|
|
$
|
4,261
|
|
|
$
|
(4,097
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation:
|
|
|
|
|
|
|
|
|
||||||
Income tax expense
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(16,825
|
)
|
|
Provision for (benefit from) income taxes
|
|
|
|
|
|
|
|
|
|
||||||
Defined benefit pension plan:
|
|
|
|
|
|
|
|
|
||||||
Amortization of actuarial loss
|
|
$
|
(605
|
)
|
|
$
|
(784
|
)
|
|
$
|
(1,693
|
)
|
|
Net periodic pension costs (1)
|
Income tax benefit
|
|
116
|
|
|
141
|
|
|
535
|
|
|
Provision for (benefit from) income taxes
|
|||
Total net of income tax
|
|
$
|
(489
|
)
|
|
$
|
(643
|
)
|
|
$
|
(1,158
|
)
|
|
|
|
Years Ended December 31,
|
||||||||||
Numerator:
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
$
|
52,755
|
|
|
$
|
106,865
|
|
|
$
|
300,829
|
|
Net income attributable to noncontrolling interest
|
(4,934
|
)
|
|
(2,679
|
)
|
|
(4,802
|
)
|
|||
Net income attributable to PPD, Inc.
|
47,821
|
|
|
104,186
|
|
|
296,027
|
|
|||
Recapitalization investment portfolio consideration
|
6,846
|
|
|
(7,849
|
)
|
|
(97,136
|
)
|
|||
Net income attributable to common stockholders of PPD, Inc.
|
$
|
54,667
|
|
|
$
|
96,337
|
|
|
$
|
198,891
|
|
Denominator:
|
|
|
|
|
|
||||||
Basic weighted-average common shares outstanding
|
279,285
|
|
|
279,238
|
|
|
291,027
|
|
|||
Effect of dilutive stock options and restricted stock
|
1,408
|
|
|
79
|
|
|
2,799
|
|
|||
Diluted weighted-average common shares outstanding
|
280,693
|
|
|
279,317
|
|
|
293,826
|
|
|||
Earnings per share:
|
|
|
|
|
|
||||||
Basic
|
$
|
0.20
|
|
|
$
|
0.34
|
|
|
$
|
0.68
|
|
Diluted
|
$
|
0.19
|
|
|
$
|
0.34
|
|
|
$
|
0.68
|
|
|
Years Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
Anti-dilutive stock options and restricted stock
|
434
|
|
|
106
|
|
|
5,333
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Segment revenue:
|
|
|
|
|
|
||||||
Clinical Development Services
|
$
|
3,354,163
|
|
|
$
|
3,182,870
|
|
|
$
|
2,319,103
|
|
Laboratory Services
|
676,854
|
|
|
566,101
|
|
|
448,373
|
|
|||
Total segment revenue
|
4,031,017
|
|
|
3,748,971
|
|
|
2,767,476
|
|
|||
Segment direct costs:
|
|
|
|
|
|
||||||
Clinical Development Services
|
1,162,678
|
|
|
1,064,557
|
|
|
1,053,557
|
|
|||
Laboratory Services
|
307,346
|
|
|
258,472
|
|
|
235,137
|
|
|||
Total segment direct costs
|
1,470,024
|
|
|
1,323,029
|
|
|
1,288,694
|
|
|||
Segment reimbursed costs:
|
|
|
|
|
|
||||||
Clinical Development Services
|
845,580
|
|
|
876,617
|
|
|
—
|
|
|||
Laboratory Services
|
79,054
|
|
|
64,296
|
|
|
—
|
|
|||
Total segment reimbursed costs
|
924,634
|
|
|
940,913
|
|
|
—
|
|
|||
Segment SG&A expenses:
|
|
|
|
|
|
||||||
Clinical Development Services
|
529,425
|
|
|
475,242
|
|
|
464,794
|
|
|||
Laboratory Services
|
81,373
|
|
|
68,305
|
|
|
60,097
|
|
|||
Total segment SG&A expenses
|
610,798
|
|
|
543,547
|
|
|
524,891
|
|
|||
Segment operating income:
|
|
|
|
|
|
||||||
Clinical Development Services
|
816,480
|
|
|
766,454
|
|
|
800,752
|
|
|||
Laboratory Services
|
209,081
|
|
|
175,028
|
|
|
153,139
|
|
|||
Total segment operating income
|
$
|
1,025,561
|
|
|
$
|
941,482
|
|
|
$
|
953,891
|
|
|
|
|
|
|
|
||||||
Total segment revenue
|
$
|
4,031,017
|
|
|
$
|
3,748,971
|
|
|
$
|
2,767,476
|
|
Other revenue not allocated to segments (1)
|
—
|
|
|
—
|
|
|
233,574
|
|
|||
Total revenue
|
4,031,017
|
|
|
3,748,971
|
|
|
3,001,050
|
|
|||
|
|
|
|
|
|
||||||
Total segment direct costs
|
1,470,024
|
|
|
1,323,029
|
|
|
1,288,694
|
|
|||
Total segment reimbursed costs
|
924,634
|
|
|
940,913
|
|
|
—
|
|
|||
Total segment SG&A expenses
|
610,798
|
|
|
543,547
|
|
|
524,891
|
|
|||
|
|
|
|
|
|
||||||
Operating costs and expenses not allocated to segments:
|
|
|
|
|
|
||||||
Direct costs
|
14,234
|
|
|
10,783
|
|
|
14,289
|
|
|||
Reimbursed costs
|
—
|
|
|
—
|
|
|
233,574
|
|
|||
SG&A expenses
|
328,008
|
|
|
269,488
|
|
|
284,442
|
|
|||
Recapitalization costs
|
—
|
|
|
—
|
|
|
114,766
|
|
|||
Depreciation and amortization
|
264,830
|
|
|
258,974
|
|
|
279,066
|
|
|||
Goodwill and long-lived asset impairments
|
1,284
|
|
|
29,626
|
|
|
43,459
|
|
|||
Total operating costs and expenses
|
3,613,812
|
|
|
3,376,360
|
|
|
2,783,181
|
|
|||
Income from operations
|
$
|
417,205
|
|
|
$
|
372,611
|
|
|
$
|
217,869
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Revenue:
|
|
|
|
|
|
||||||
North America(1)
|
$
|
2,155,609
|
|
|
$
|
1,981,814
|
|
|
$
|
1,413,079
|
|
Latin America
|
147,375
|
|
|
129,644
|
|
|
117,665
|
|
|||
Europe, Middle East and Africa(2)
|
1,310,573
|
|
|
1,280,861
|
|
|
979,921
|
|
|||
Asia-Pacific
|
417,460
|
|
|
356,652
|
|
|
256,811
|
|
|||
Revenue
|
4,031,017
|
|
|
3,748,971
|
|
|
2,767,476
|
|
|||
Reimbursed revenue
|
—
|
|
|
—
|
|
|
233,574
|
|
|||
Total revenue
|
$
|
4,031,017
|
|
|
$
|
3,748,971
|
|
|
$
|
3,001,050
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Property and equipment, net:
|
|
|
|
||||
North America(1)
|
$
|
372,163
|
|
|
$
|
328,690
|
|
Latin America
|
4,294
|
|
|
2,732
|
|
||
Europe, Middle East and Africa
|
51,780
|
|
|
53,434
|
|
||
Asia-Pacific
|
30,608
|
|
|
14,247
|
|
||
Total property and equipment, net
|
$
|
458,845
|
|
|
$
|
399,103
|
|
|
|
2019
|
||||||||||||||
|
|
Fourth Quarter
|
|
Third Quarter
|
|
Second Quarter
|
|
First Quarter
|
||||||||
Revenue
|
|
$
|
1,046,884
|
|
|
$
|
1,023,864
|
|
|
$
|
996,531
|
|
|
$
|
963,738
|
|
Income from operations
|
|
113,276
|
|
|
118,699
|
|
|
97,511
|
|
|
87,719
|
|
||||
Net income attributable to noncontrolling interest
|
|
(1,544
|
)
|
|
(1,161
|
)
|
|
(1,368
|
)
|
|
(861
|
)
|
||||
Recapitalization investment portfolio consideration
|
|
(9,984
|
)
|
|
11,231
|
|
|
(5,029
|
)
|
|
10,628
|
|
||||
Net income (loss) attributable to common stockholders of PPD, Inc.
|
|
$
|
6,766
|
|
|
$
|
26,652
|
|
|
$
|
25,716
|
|
|
$
|
(4,467
|
)
|
Basic earnings (loss) per share(1)
|
|
$
|
0.02
|
|
|
$
|
0.10
|
|
|
$
|
0.09
|
|
|
$
|
(0.02
|
)
|
Diluted earnings (loss) per share(1)
|
|
$
|
0.02
|
|
|
$
|
0.09
|
|
|
$
|
0.09
|
|
|
$
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
2018
|
||||||||||||||
|
|
Fourth Quarter
|
|
Third Quarter
|
|
Second Quarter
|
|
First Quarter
|
||||||||
Revenue
|
|
$
|
978,637
|
|
|
$
|
907,404
|
|
|
$
|
910,535
|
|
|
$
|
952,395
|
|
Income from operations
|
|
101,646
|
|
|
77,888
|
|
|
99,791
|
|
|
93,286
|
|
||||
Net (income) loss attributable to noncontrolling interest
|
|
(1,366
|
)
|
|
(839
|
)
|
|
56
|
|
|
(530
|
)
|
||||
Recapitalization investment portfolio consideration
|
|
23,198
|
|
|
(27,258
|
)
|
|
(1,329
|
)
|
|
(2,460
|
)
|
||||
Net income (loss) attributable to common stockholders of PPD, Inc.
|
|
$
|
36,591
|
|
|
$
|
4,100
|
|
|
$
|
57,699
|
|
|
$
|
(2,053
|
)
|
Basic earnings (loss) per share(1)
|
|
$
|
0.13
|
|
|
$
|
0.01
|
|
|
$
|
0.21
|
|
|
$
|
(0.01
|
)
|
Diluted earnings (loss) per share(1)
|
|
$
|
0.13
|
|
|
$
|
0.01
|
|
|
$
|
0.21
|
|
|
$
|
(0.01
|
)
|
PPD, Inc. (Parent Company Only)
|
||||||||||||
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
||||||||||||
(in thousands)
|
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
For the period from
|
||||||
|
|
Year Ended
|
|
Year Ended
|
|
May 11, 2017 to
|
||||||
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||
Equity in income of subsidiaries
|
|
$
|
53,159
|
|
|
$
|
105,308
|
|
|
$
|
244,936
|
|
General and administrative expenses
|
|
6,452
|
|
|
1,345
|
|
|
221
|
|
|||
Income before income tax benefit
|
|
46,707
|
|
|
103,963
|
|
|
244,715
|
|
|||
Income tax benefit
|
|
(1,114
|
)
|
|
(223
|
)
|
|
(69
|
)
|
|||
Net income
|
|
47,821
|
|
|
104,186
|
|
|
244,784
|
|
|||
Equity in other comprehensive income (loss) of subsidiaries
|
|
13,777
|
|
|
(78,994
|
)
|
|
79,300
|
|
|||
Total comprehensive income
|
|
$
|
61,598
|
|
|
$
|
25,192
|
|
|
$
|
324,084
|
|
PPD, Inc. (Parent Company Only)
|
||||||||
BALANCE SHEETS
|
||||||||
(in thousands)
|
||||||||
|
|
|
|
|
||||
ASSETS
|
||||||||
|
|
|
|
|
||||
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Cash and cash equivalents
|
|
$
|
2,458
|
|
|
$
|
2,757
|
|
Deferred costs
|
|
3,699
|
|
|
—
|
|
||
Total assets
|
|
$
|
6,157
|
|
|
$
|
2,757
|
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
||||||||
|
|
|
|
|
||||
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Other liabilities
|
|
$
|
205,819
|
|
|
$
|
217,513
|
|
Recapitalization investment portfolio liability
|
|
191,678
|
|
|
198,524
|
|
||
Investments in subsidiaries
|
|
2,306,808
|
|
|
1,109,141
|
|
||
Total liabilities
|
|
2,704,305
|
|
|
1,525,178
|
|
||
Common stock $0.01 par value, 2,080,000 shares authorized; 280,127
|
|
|
|
|
||||
shares issued and 279,426 shares outstanding as of December 31, 2019
|
|
|
|
|
||||
and 2,080,000 shares authorized; 279,545 shares issued
|
|
|
|
|
||||
and 279,030 shares outstanding as of December 31, 2018
|
|
2,801
|
|
|
2,795
|
|
||
Other stockholders' deficit
|
|
(2,700,949
|
)
|
|
(1,525,216
|
)
|
||
Total stockholders' deficit
|
|
(2,698,148
|
)
|
|
(1,522,421
|
)
|
||
Total liabilities and stockholders' deficit
|
|
$
|
6,157
|
|
|
$
|
2,757
|
|
PPD, Inc. (Parent Company Only)
|
||||||||||||
STATEMENTS OF CASH FLOWS
|
||||||||||||
(in thousands)
|
||||||||||||
|
|
|
|
|
|
For the period from
|
||||||
|
|
Year Ended
|
|
Year Ended
|
|
May 11, 2017 to
|
||||||
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||
Net cash used in operating activities
|
|
$
|
(15,492
|
)
|
|
$
|
(2,105
|
)
|
|
$
|
(94
|
)
|
Cash flows from investing activities:
|
|
|
|
|
|
|
||||||
Return of capital from subsidiaries
|
|
1,260,681
|
|
|
123,000
|
|
|
539,876
|
|
|||
Net cash provided by investing activities
|
|
1,260,681
|
|
|
123,000
|
|
|
539,876
|
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
||||||
Purchase of treasury stock
|
|
(4,012
|
)
|
|
(8,630
|
)
|
|
—
|
|
|||
Proceeds from exercise of stock options
|
|
4,524
|
|
|
923
|
|
|
—
|
|
|||
Proceeds from recapitalization share issuance
|
|
—
|
|
|
—
|
|
|
2,770,001
|
|
|||
Payout for recapitalization share redemptions
|
|
—
|
|
|
—
|
|
|
(3,309,876
|
)
|
|||
Recapitalization tax benefit distribution
|
|
—
|
|
|
(99,745
|
)
|
|
—
|
|
|||
Recapitalization investment portfolio distribution
|
|
—
|
|
|
(14,741
|
)
|
|
(3,798
|
)
|
|||
Proceeds from employee stock purchases
|
|
—
|
|
|
480
|
|
|
7,466
|
|
|||
Return of capital and special dividend to stockholders
|
|
(1,246,000
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash used in financing activities
|
|
(1,245,488
|
)
|
|
(121,713
|
)
|
|
(536,207
|
)
|
|||
Net change in cash and cash equivalents
|
|
(299
|
)
|
|
(818
|
)
|
|
3,575
|
|
|||
Cash and cash equivalents at beginning of period
|
|
2,757
|
|
|
3,575
|
|
|
—
|
|
|||
Cash and cash equivalents at end of period
|
|
$
|
2,458
|
|
|
$
|
2,757
|
|
|
$
|
3,575
|
|
|
|
Dividends Paid
|
||
Paid in May 2019
|
|
$
|
1,086,281
|
|
Paid in November 2019
|
|
174,400
|
|
|
Total paid in 2019
|
|
$
|
1,260,681
|
|
|
|
|
||
Paid in June 2018
|
|
$
|
107,000
|
|
Paid in November 2018
|
|
16,000
|
|
|
Total paid in 2018
|
|
$
|
123,000
|
|