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Impact of change in accounting policies (Tables) | 6 Months Ended
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Jun. 30, 2018
Revenue from Contract with Customer [Abstract] |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The tables on the pages following summarize the impact of adopting ASC 606 on the consolidated financial statements for the three and six months ended June 30, 2018. ICON plc CONDENSED CONSOLIDATED BALANCE SHEETS AS AT JUNE 30, 2018 (UNAUDITED)
| June 30, 2018
| As reported | Adjustments | Balance without adoption of Topic 606
ASSETS | (in thousands)
Current Assets: |  |  |
Cash and cash equivalents | $ | 289,219 |  | $ | — |  | $ | 289,219 |
Short term investments - available for sale | 83,777 |  | — |  | 83,777 |
Accounts receivable, net | 404,572 |  | — |  | 404,572 |
Unbilled revenue | 274,501 |  | 44,829 |  | 319,330 |
Other receivables | 48,068 |  | (12,330 | ) | 35,738 |
Prepayments and other current assets | 24,038 |  | — |  | 24,038 |
Income taxes receivable | 24,475 |  | — |  | 24,475 |
Total current assets | 1,148,650 |  | 32,499 |  | 1,181,149 |
Other Assets: |  |  |  |  |  |
Property, plant and equipment, net | 155,020 |  | — |  | 155,020 |
Goodwill | 759,137 |  | — |  | 759,137 |
Other non-current assets | 15,715 |  | — |  | 15,715 |
Non-current income taxes receivable | 18,180 |  | — |  | 18,180 |
Non-current deferred tax asset | 17,420 |  | (6,276 | ) | 11,144 |
Intangible assets | 60,374 |  | — |  | 60,374 |
Total Assets | $ | 2,174,496 |  | $ | 26,223 |  | $ | 2,200,719 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |
Current Liabilities: |  |  |  |  |  |
Accounts payable | $ | 15,123 |  | $ | — |  | $ | 15,123 |
Payments on account | 326,741 |  | (25,100 | ) | 301,641 |
Other liabilities | 192,339 |  | — |  | 192,339 |
Income taxes payable | 14,049 |  | 885 |  | 14,934 |
Total current liabilities | 548,252 |  | (24,215 | ) | 524,037 |
Other Liabilities: |  |  |  |  |  |
Non-current bank credit lines and loan facilities | 349,074 |  | — |  | 349,074 |
Non-current other liabilities | 16,179 |  | — |  | 16,179 |
Non-current government grants | 908 |  | — |  | 908 |
Non-current income taxes payable | 13,622 |  | — |  | 13,622 |
Non-current deferred tax liability | 7,713 |  | — |  | 7,713 |
Commitments and contingencies | — |  | — |  | — |
Total Liabilities | 935,748 |  | (24,215 | ) | 911,533 |
Shareholders' Equity: |  |  |  |  |  |
Ordinary shares, par value 6 euro cents per share; 100,000,000 shares authorized, |  |  |  |  |  |
54,327,869 shares issued and outstanding at June 30, 2018 and |  |  |  |  |  |
54,081,601 shares issued and outstanding at December 31, 2017 | 4,684 |  | — |  | 4,684 |
Additional paid‑in capital | 508,195 |  | — |  | 508,195 |
Other undenominated capital | 945 |  | — |  | 945 |
Accumulated other comprehensive income | (65,522 | ) | — |  | (65,522 | )
Retained earnings | 790,446 |  | 50,438 |  | 840,884 |
Total Shareholders' Equity | 1,238,748 |  | 50,438 |  | 1,289,186 |
Total Liabilities and Shareholders' Equity | $ | 2,174,496 |  | $ | 26,223 |  | $ | 2,200,719 |
ICON plc CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2018 UNAUDITED)
| Three Months Ended |  | Six Months Ended
| June 30, 2018 |  | June 30, 2018 |  | June 30, 2018 |  | June 30, 2018 |  | June 30, 2018 |  | June 30, 2018
| As reported |  | Adjustments |  | Balance without adoption of Topic 606 |  | As reported |  | Adjustments |  | Balance without adoption of Topic 606
| (in thousands except share and per share data) |  | (in thousands except share and per share data)
Revenue: |  |  |  |  |  |  |  |  |  |  |
Revenue | $ | 641,610 |  |  | $ | 1,614 |  |  | $ | 643,224 |  |  | $ | 1,261,735 |  |  | $ | 2,845 |  |  | $ | 1,264,580 |
Reimbursable expenses | — |  |  | (169,313 | ) |  | $ | (169,313 | ) |  | — |  |  | (328,066 | ) |  | $ | (328,066 | )
|  |  |  | (167,699 | ) |  | 473,911 |  |  |  |  |  | (325,221 | ) |  | 936,514 |
Costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Direct costs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
- Reimbursable expenses | 169,313 |  |  | (169,313 | ) |  | — |  |  | 328,066 |  |  | (328,066 | ) |  | — |
- Other direct costs | 279,913 |  |  | — |  |  | 279,913 |  |  | 551,752 |  |  | — |  |  | 551,752 |
Selling, general and administrative expense | 80,936 |  |  | 62 |  |  | 80,998 |  |  | 161,851 |  |  | 222 |  |  | 162,073 |
Depreciation and amortization | 17,046 |  |  | — |  |  | 17,046 |  |  | 33,944 |  |  | — |  |  | 33,944 |
Restructuring | 12,490 |  |  | — |  |  | 12,490 |  |  | 12,490 |  |  | — |  |  | 12,490 |
Total costs and expenses | 559,698 |  |  | (169,251 | ) |  | 390,447 |  |  | 1,088,103 |  |  | (327,844 | ) |  | 760,259 |
Income from operations | 81,912 |  |  | 1,552 |  |  | 83,464 |  |  | 173,632 |  |  | 2,623 |  |  | 176,255 |
Interest income | 1,017 |  |  | — |  |  | 1,017 |  |  | 1,840 |  |  | — |  |  | 1,840 |
Interest expense | (3,302 | ) |  | — |  |  | (3,302 | ) |  | (7,097 | ) |  | — |  |  | (7,097 | )
Income before provision for income taxes | 79,627 |  |  | 1,552 |  |  | 81,179 |  |  | 168,375 |  |  | 2,623 |  |  | 170,998 |
Provision for income taxes | (7,759 | ) |  | (155 | ) |  | (7,914 | ) |  | (18,409 | ) |  | (289 | ) |  | (18,698 | )
Net income | $ | 71,868 |  |  | $ | 1,397 |  |  | $ | 73,265 |  |  | $ | 149,966 |  |  | $ | 2,334 |  |  | $ | 152,300 |
ICON plc CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2018 (UNAUDITED)
| Six Months Ended
| June 30, 2018
| As Reported | Adjustments | Balance without adoption of Topic 606
| (in thousands)
Cash flows from operating activities: |
Net income | $ | 149,966 |  | $ | 2,334 |  | $ | 152,300 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |
Loss on disposal of property, plant and equipment | 2 |  | — |  | 2 |
Depreciation expense | 23,779 |  | — |  | 23,779 |
Amortization of intangibles | 10,165 |  | — |  | 10,165 |
Amortization of government grants | (24 | ) | — |  | (24 | )
Interest on short term investments | (712 | ) | — |  | (712 | )
Stock compensation expense | 16,430 |  | — |  | 16,430 |
Amortization of gain on interest rate hedge | (463 | ) | — |  | (463 | )
Amortization of financing costs | 530 |  | — |  | 530 |
Deferred taxes | (2,745 | ) | 6,276 |  | 3,531 |
Changes in assets and liabilities: |  |  |  |  |
Increase in accounts receivable | (26,685 | ) | — |  | (26,685 | )
Increase in unbilled revenue | (51,052 | ) | 3,275 |  | (47,777 | )
(Increase)/decrease in other receivables | (5,082 | ) | 12,330 |  | 7,248 |
Decrease in prepayments and other current assets | 9,777 |  | — |  | 9,777 |
Increase in other non-current assets | (338 | ) | — |  | (338 | )
Increase in payments on account | 2,616 |  | (25,100 | ) | (22,484 | )
Decrease in other current liabilities | (38,547 | ) | — |  | (38,547 | )
Decrease in other non-current liabilities | (1,083 | ) | — |  | (1,083 | )
Decrease in income taxes payable | (3,622 | ) | 885 |  | (2,737 | )
Decrease in accounts payable | (3,241 | ) | — |  | (3,241 | )
Net cash provided by operating activities | 79,671 |  | — |  | 79,671 |
Cash flows from investing activities: |  |  |  |  |  |
Purchase of property, plant and equipment | (17,219 | ) | — |  | (17,219 | )
Purchase of subsidiary undertakings | (1,645 | ) | — |  | (1,645 | )
Purchase of short term investments | (55,608 | ) | — |  | (55,608 | )
Sale of short term investments | 49,708 |  | — |  | 49,708 |
Net cash used in investing activities | (24,764 | ) | — |  | (24,764 | )
Cash flows from financing activities: |  |  |  |  |  |
Financing costs | (823 | ) | — |  | (823 | )
Proceeds from exercise of equity compensation | 10,334 |  | — |  | 10,334 |
Share issue costs | (9 | ) | — |  | (9 | )
Repurchase of ordinary shares | (54,172 | ) | — |  | (54,172 | )
Share repurchase costs | (44 | ) | — |  | (44 | )
Net cash used in financing activities | (44,714 | ) | — |  | (44,714 | )
Effect of exchange rate movements on cash | (3,833 | ) |  |  | (3,833 | )
Net increase in cash and cash equivalents | 6,360 |  | — |  | 6,360 |
Cash and cash equivalents at beginning of period | 282,859 |  |  |  | 282,859 |
Cash and cash equivalents at end of period | $ | 289,219 |  | $ | — |  | $ | 289,219 |
ICON plc CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME (UNAUDITED)
| Shares |  |  | Amount |  |  | Additional Paid-in Capital |  | Other Undenominated Capital |  | Accumulated Other Comprehensive Income |  | Retained Earnings |  | Total |
| (dollars in thousands, except share data)
Balance at December 31, 2017 | 54,081,601 |  |  | $ | 4,664 |  |  | $ | 481,337 |  | $ | 912 |  | $ | (38,713 | ) | $ | 742,800 |  | $ | 1,191,000 |
Comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (as reported) | — |  |  | — |  |  | — |  | — |  | — |  | 149,966 |  | 149,966 |
Impact of change in accounting policy | — |  |  | — |  |  | — |  | — |  | — |  | 2,334 |  | 2,334 |
Currency translation adjustment | — |  |  | — |  |  | — |  | — |  | (20,813 | ) |  |  | (20,813 | )
Currency impact of long term funding | — |  |  | — |  |  | — |  | — |  | (3,055 | ) | — |  | (3,055 | )
Tax on currency impact of long term funding | — |  |  | — |  |  | — |  | — |  | — |  | — |  | — |
Unrealized capital gain – investments | — |  |  | — |  |  | — |  | — |  | (423 | ) | — |  | (423 | )
Amortization of interest rate hedge | — |  |  | — |  |  | — |  | — |  | (463 | ) | — |  | (463 | )
Fair value of cash flow hedge | — |  |  | — |  |  | — |  | — |  | (2,055 | ) | — |  | (2,055 | )
Total comprehensive income | — |  |  | — |  |  | — |  | — |  | (26,809 | ) | 152,300 |  | 125,491 |
Exercise of share options | 226,888 |  |  | 17 |  |  | 10,284 |  | — |  | — |  | — |  | 10,301 |
Issue of restricted share units | 483,435 |  |  | 36 |  |  | — |  | — |  | — |  | — |  | 36 |
Non-cash stock compensation expense | — |  |  | — |  |  | 16,583 |  | — |  | — |  | — |  | 16,583 |
Share issuance costs | — |  |  | — |  |  | (9 | ) | — |  | — |  | — |  | (9 | )
Share repurchase program | (464,055 | ) |  | (33 | ) |  | — |  | 33 |  | — |  | (54,172 | ) | (54,172 | )
Share repurchase costs | — |  |  | — |  |  | — |  | — |  | — |  | (44 | ) | (44 | )
Balance at June 30, 2018 (without the adoption of ASC 606) | 54,327,869 |  |  | $ | 4,684 |  |  | $ | 508,195 |  | $ | 945 |  | $ | (65,522 | ) | $ | 840,884 |  | $ | 1,289,186 |

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