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Business Segment Information | 12 Months Ended
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Dec. 31, 2013
Business Segment Information | 17. Business Segment Information The Company is a contract research organization (“CRO”), providing outsourced development services on a global basis to the pharmaceutical, biotechnology and medical device industries. It specializes in the strategic development, management and analysis of programs that support all stages of the clinical development process - from compound selection to Phase I-IV clinical studies. The Company has the expertise and capability to conduct clinical trials in most major therapeutic areas on a global basis and has the operational flexibility to provide development services on a stand-alone basis or as part of an integrated “full service” solution. The Company has expanded predominately through internal growth, together with a number of strategic acquisitions to enhance its expertise and capabilities in certain areas of the clinical development process. The Company also provides laboratory services through its central laboratory business, which includes the Company’s central laboratories located in Dublin, New York, India, Singapore and China. The Company determines and presents operating segments based on the information that is internally provided to the Chief Executive Officer and Chief Financial Officer, who together are considered the Company’s chief operating decision maker, in accordance with FASB ASC 280-10 Disclosures about Segments of an Enterprises and Related Information. Historically, the Group organized, operated and assessed its business in two segments, the clinical research segment and the central laboratory segment. In Q1 2013 the Group consolidated and reclassified the results of the former central laboratory segment into the clinical research segment as the central laboratory segment does not reach the thresholds of net revenue, income from operations and total assets as a requirement for being reported as a separate segment. Management determined that its clinical research and central laboratory businesses operate in the same clinical research market, have a similar customer profile, are subject to the same regulatory environment, support the development of new clinical therapies and are so economically similar, reporting their results on an aggregated basis would be more useful to users of the Company’s financial statements. The Company's areas of operation outside of Ireland include the United States, United Kingdom, France, Germany, Italy, Spain, The Netherlands, Sweden, Belgium, Turkey, Poland, Czech Republic, Lithuania, Latvia, Russia, Ukraine, Hungary, Israel, Romania, Canada, Mexico, Brazil, Colombia, Argentina, Chile, Peru, India, China, South Korea, Japan, Thailand, Taiwan, Singapore, The Philippines, Australia, New Zealand, and South Africa. Segment information as at December 31, 2013 and December 31, 2012 and for the years ended December 31, 2013, December 31, 2012 and December 31, 2011 is as follows: a) The distribution of net revenue by geographical area was as follows:
|  |  | Year ended |
|  |  | December |  |  |  | December |  |  |  | December |
|  |  | 2013 |  |  |  | 2012 |  |  |  | 2011 |
|  |  | (in thousands) |
Ireland |  | $ | 272,683 |  |  | $ | 171,977 |  |  | $ | 88,869 |
Rest of Europe |  |  | 333,543 |  |  |  | 338,537 |  |  |  | 348,492 |
U.S. |  |  | 582,250 |  |  |  | 471,700 |  |  |  | 393,957 |
Other |  |  | 147,582 |  |  |  | 132,792 |  |  |  | 114,411 |
Total |  | $ | 1,336,058 |  |  | $ | 1,115,006 |  |  | $ | 945,729 |
b) The distribution of income from operations, including restructuring and other items, by geographical area was as follows:
|  | Year ended |
|  | December |  |  | December |  |  | December |
|  | 2013 |  |  | 2012 |  |  | 2011 |
|  | (in thousands) |
Ireland |  | $ | 81,811 |  |  | $ | 9,659 |  |  | $ | (34,703 | )
Rest of Europe |  |  | 2,831 |  |  |  | 29,240 |  |  |  | 32,175 |
U.S. |  |  | 29,472 |  |  |  | 21,036 |  |  |  | 24,874 |
Other |  |  | 7,053 |  |  |  | 8,082 |  |  |  | 7,097 |
Total |  | $ | 121,167 |  |  | $ | 68,017 |  |  | $ | 29,443 |
c) The distribution of income from operations, excluding restructuring and other items, by geographical area was as follows:
|  | Year ended |
|  | December |  |  | December |  |  | December |
|  | 2013 |  |  | 2012 |  |  | 2011 |
|  | (in thousands) |
Ireland |  | $ | 82,867 |  |  | $ | 11,733 |  |  | $ | (33,139 | )
Rest of Europe |  |  | 6,269 |  |  |  | 29,786 |  |  |  | 35,175 |
U.S. |  |  | 33,564 |  |  |  | 23,687 |  |  |  | 30,127 |
Other |  |  | 7,500 |  |  |  | 8,447 |  |  |  | 7,097 |
Total |  | $ | 130,200 |  |  | $ | 73,653 |  |  | $ | 39,260 |
d) The distribution of property, plant and equipment, net, by geographical area was as follows:
|  | December 31, |  |  | December 31, |
|  | 2013 |  |  | 2012 |
|  | (in thousands) |
Ireland |  | $ | 103,868 |  |  | $ | 110,369 |
Rest of Europe |  |  | 14,630 |  |  |  | 16,115 |
U.S. |  |  | 33,947 |  |  |  | 32,400 |
Other |  |  | 8,385 |  |  |  | 9,489 |
Total |  | $ | 160,830 |  |  | $ | 168,373 |
e) The distribution of depreciation and amortization by geographical area was as follows:
|  | Year ended |
|  | December |  |  | December |  |  | December |
|  | 2013 |  |  | 2012 |  |  | 2011 |
|  | (in thousands) |
Ireland |  | $ | 19,826 |  |  | $ | 17,885 |  |  | $ | 15,192 |
Rest of Europe |  |  | 6,595 |  |  |  | 7,211 |  |  |  | 7,057 |
U.S. |  |  | 16,233 |  |  |  | 13,865 |  |  |  | 12,427 |
Other |  |  | 3,860 |  |  |  | 3,862 |  |  |  | 4,006 |
Total |  | $ | 46,514 |  |  | $ | 42,823 |  |  | $ | 38,682 |
f) The distribution of total assets by geographical area was as follows:
|  | December 31, |  |  | December 31, |
|  | 2013 |  |  | 2012 |
|  | (in thousands) |
Ireland |  | $ | 581,568 |  |  | $ | 476,159 |
Rest of Europe |  |  | 321,661 |  |  |  | 236,305 |
U.S. |  |  | 486,232 |  |  |  | 437,756 |
Other |  |  | 52,999 |  |  |  | 51,888 |
Total |  | $ | 1,442,460 |  |  | $ | 1,202,108 |
g) The distribution of capital expenditures by geographical area was as follows:
|  | Year ended |
|  | December |  |  | December |  |  | December |
|  | 2013 |  |  | 2012 |  |  | 2011 |
|  | (in thousands) |
Ireland |  | $ | 3,976 |  |  | $ | 12,406 |  |  | $ | 16,987 |
Rest of Europe |  |  | 1,887 |  |  |  | 2,506 |  |  |  | 4,795 |
U.S. |  |  | 20,842 |  |  |  | 13,389 |  |  |  | 10,222 |
Other |  |  | 2,783 |  |  |  | 4,725 |  |  |  | 4,001 |
Total |  | $ | 29,488 |  |  | $ | 33,026 |  |  | $ | 36,005 |
h) The following table sets forth the clients which represented 10% or more of the Company's net revenue in each of the periods set out below.
|  | Year ended |
|  | December |  |  | December |  |  | December |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Client A |  |  | 26 | % |  |  | 18 | % |  |  | * |
Client B |  |  | 10 | % |  |  | 12 | % |  |  | 13 | %
* Net revenue did not exceed 10%. i) The distribution of interest income by geographical area was as follows:
|  | Year ended |
|  | December |  |  | December |  |  | December |
|  | 2013 |  |  | 2012 |  |  | 2011 |
|  | (in thousands) |
Ireland |  | $ | 355 |  |  | $ | 464 |  |  | $ | 762 |
Rest of Europe |  |  | 501 |  |  |  | 661 |  |  |  | 364 |
U.S. |  |  | - |  |  |  | 3 |  |  |  | 18 |
Other |  |  | 130 |  |  |  | 23 |  |  |  | 50 |
Total |  | $ | 986 |  |  | $ | 1,151 |  |  | $ | 1,194 |
j) The distribution of the tax charge by geographical area was as follows:
|  | Year ended |
|  | December |  |  | December |  |  | December |
|  | 2013 |  |  | 2012 |  |  | 2011 |
|  | (in thousands) |
Ireland |  | $ | 11,073 |  |  | $ | 1,216 |  |  | $ | (3,475 | )
Rest of Europe |  |  | (7 | ) |  |  | 3,298 |  |  |  | 657 |
U.S. |  |  | 5,072 |  |  |  | 3,669 |  |  |  | 4,656 |
Other |  |  | 1,915 |  |  |  | 3,618 |  |  |  | 4,277 |
Total |  | $ | 18,053 |  |  | $ | 11,801 |  |  | $ | 6,115 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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