Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

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, 2019, 2018 and 2017 (in thousands, except for earnings per share):



	Year Ended December 31,
	2019		2018		2017
Weighted-average shares:
Common shares outstanding		35,881		35,547		39,056
RSAs		100		142		90
Total weighted-average shares		35,981		35,689		39,146
Earnings per common share—Basic
Net income	$	100,443	$	73,185	$	39,122
Less: Undistributed earnings allocated to RSAs		279		291		90
Net income available to common shareholders—Basic	$	100,164	$	72,894	$	39,032

Net income per common share—Basic	$	2.79	$	2.05	$	1.00

Basic weighted-average common shares outstanding		35,881		35,547		39,056
Effect of diluted shares		1,695		1,365		783
Diluted weighted-average shares outstanding		37,576		36,912		39,839

Net income per common share—Diluted	$	2.67	$	1.97	$	0.98

Summary of Impact of Adoption of Accounting Standards

In connection with the implementation of ASC 606 on the modified retrospective method, the Company is presenting additional information to assist with the comparability of select line items of the current and prior period year to date reporting in its consolidated balance sheets and consolidated statements of operations. Below the Company has presented the amount by which each financial statement line item is affected in the current reporting period by the application of ASC 606 as compared with the guidance that was in effect before the change (ASC 605).

	Year Ended December 31, 2018
	As Reported		Adjustments			As Revised under ASC 605
Revenue:
Revenue, net	$	704,589	$	(704,589	)	$	-
Service revenue, net		-		478,063			478,063
Reimbursed out-of-pocket revenue		-		71,305			71,305
Total revenue		704,589		(155,221	)		549,368
Operating expenses:
Direct service costs, excluding depreciation and amortization		252,284		-			252,284
Reimbursed out-of-pocket expenses		236,775		(165,470	)		71,305
Total direct costs		489,059		(165,470	)		323,589
Total operating expenses		603,541		(165,470	)		438,071
Income from operations		101,048		10,249			111,297
Income before income taxes		93,951		10,249			104,200
Income tax provision		20,766		1,882			22,648
Net income	$	73,185	$	8,367		$	81,552
Net income per share attributable to common shareholders:
Basic	$	2.05	$	0.24		$	2.29
Diluted	$	1.97	$	0.23		$	2.20
Weighted average common shares outstanding:
Basic		35,547		-			35,547
Diluted		36,912		-			36,912

ASSETS	As of December 31, 2018
Current assets:	As Reported			Adjustments			As Revised under ASC 605
Accounts receivable and unbilled, net		133,449			(28,729	)		104,720
Prepaid expenses and other current assets		21,383			1,147			22,530
Total current assets		178,114			(27,582	)		150,532
Deferred income taxes		713			(389	)		324
Total assets	$	967,933		$	(27,971	)	$	939,962
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accrued expenses		87,493			(51,109	)		36,384
Pre-funded study costs		-			61,156			61,156
Advanced billings		147,935			(41,732	)		106,203
Other current liabilities		4,861			(590	)		4,271
Total current liabilities		257,026			(32,275	)		224,751
Deferred income tax liability		439			2,049			2,488
Other long-term liabilities		16,560			(382	)		16,178
Total liabilities		378,230			(30,608	)		347,622
Shareholders’ equity:
Accumulated deficit		(41,487	)		2,637			(38,850	)
Total shareholders’ equity		589,703			2,637			592,340
Total liabilities and shareholders’ equity	$	967,933		$	(27,971	)	$	939,962

CASH FLOWS FROM OPERATING ACTIVITIES:	Year Ended December 31, 2018
	As Reported			Adjustments			As Revised under ASC 605
Net income		73,185			8,367			81,552
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income tax provision		3,942			4,002			7,944
Changes in assets and liabilities:
Accounts receivable and unbilled, net		(27,047	)		4,842			(22,205	)
Prepaid expenses and other current assets		(1,241	)		(1,147	)		(2,388	)
Accrued expenses		29,029			(15,967	)		13,062
Pre-funded study costs		-			3,782			3,782
Advanced billings		35,593			(2,907	)		32,686
Other assets and liabilities, net		1,925			(972	)		953
Net cash provided by operating activities		156,584			-			156,584

ASU 2016-02

Summary of Impact of Adoption of Accounting Standards

The impact of the adoption of ASC 842 as of January 1, 2019 is as follows:

ASSETS	As of
	January 1, 2019			Adjustments			December 31, 2018
Current assets:
Prepaid expenses and other current assets		21,013			(370	)		21,383
Total current assets		177,744			(370	)		178,114
Property and equipment, net		37,613			(14,642	)		52,255
Operating lease right-of-use assets		51,854			51,854			-
Total assets	$	1,004,775		$	36,842		$	967,933
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Other current liabilities		10,951			6,090			4,861
Total current liabilities		263,116			6,090			257,026
Operating lease liabilities		45,294			45,294			-
Deemed landlord liability, less current portion		-			(24,484	)		24,484
Deferred income tax liability		3,158			2,719			439
Other long-term liabilities		14,630			(1,930	)		16,560
Total liabilities		405,919			27,689			378,230
Shareholders’ equity:
Accumulated deficit		(32,334	)		9,153			(41,487	)
Total shareholders’ equity		598,856			9,153			589,703
Total liabilities and shareholders’ equity	$	1,004,775		$	36,842		$	967,933