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Employee Benefits
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Employee Benefits Employee Benefits
Defined Contribution Plans

Defined contribution or profit sharing style plans ("the Plans") are offered in a number of countries. In some cases, these plans are required by local laws or regulations. Certain employees are eligible to participate in the Plans and participants in the Plans may elect to defer a portion of their pre-tax earnings into a pension plan, which is run by an independent party. The Company matches participant's contributions up to certain levels of the participant's annual compensation.

The Company's United States operations maintain retirement plans (the "U.S. Plans") that qualify as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Participants in the U.S. Plans may elect to defer a portion of their earnings, up to the Internal Revenue Service annual contribution limit. The Company matches participant's contributions at varying amounts, subject to a maximum of 4.5% of the participant's annual compensation. Contributions to this U.S. Plan are recorded, in the year contributed, as an expense in the Consolidated Statement of Operations. Contributions for the years ended December 31, 2023, December 31, 2022 and December 31, 2021 were $40.4 million, $45.8 million and $23.7 million respectively.

Pension and Postretirement Benefit Plans

The Company maintains various retirement plans across the Group, many of which are required by local employment laws. The balances recorded to the balance sheet are as follows:

December 31, 2023December 31, 2022
(in thousands)   
Other receivables$6,321 $6,492 
Non-current other liabilities (note 16)(14,738)(13,033)

In addition to the specific defined benefit schemes shown separately below, the Company maintains several other retirement plans which have a cumulative total net obligation of $12.3 million and $11.6 million recorded to non-current other liabilities as of December 31, 2023 and December 31, 2022, respectively.

ICON Development Solutions Limited pension plan

ICON Development Solutions Limited, a subsidiary of ICON Plc, operates a defined benefit pension plan in the United Kingdom for its employees. The plan is managed externally and the related pension costs and liabilities are assessed in accordance with the advice of a professionally qualified actuary. Plan assets at December 31, 2023 and December 31, 2022 consist of units held in independently administered funds. Pension plan disclosures are presented in the following tables in accordance with the requirements of ASC 715-20, Defined Benefit Plans - General. The plan has been closed to new entrants with effect from July 1, 2003.
Funded surplus
 
December 31, 2023December 31, 2022
 (in thousands)
Projected benefit obligation$(20,999)$(19,558)
Fair value of plan assets27,320 26,050 
 Funded surplus$6,321 $6,492 

The funded status as at December 31, 2023 and December 31, 2022 is included in other long-term receivables on the Consolidated Balance Sheet.
Change in benefit obligation
 		December 31, 2023December 31, 2022
 (in thousands)
Benefit obligation at beginning of year$19,558 $41,813 
Service cost42 117 
Interest cost975 672 
Plan participants' contributions19 19 
Benefits paid(318)(514)
Actuarial gain(335)(18,636)
Foreign currency exchange rate changes1,058 (3,913)
Benefit obligation at end of year$20,999 $19,558 

Change in plan assets
 
December 31, 2023December 31, 2022
 (in thousands)
Fair value of plan assets at beginning of year$26,050 $36,198 
Expected return on plan assets1,015 1,258 
Actuarial loss(910)(7,305)
Employer contributions70 70 
Plan participants' contributions19 19 
Benefits paid(318)(514)
Foreign currency exchange rate changes1,394 (3,676)
Fair value of plan assets at end of year$27,320 $26,050 

The fair values of the assets above do not include any of the Company's own financial instruments, property occupied by, or other assets used by, the Company.

The following amounts were recorded in the Consolidated Statement of Operations as components of the net periodic benefit (credit)/cost:
December 31, 2023December 31, 2022December 31, 2021
 (in thousands)
Service cost$42 $117 $134 
Interest cost975 672 665 
Expected return on plan assets(1,015)(1,258)(1,171)
Amortization of net (gain)/loss(274)228 625 
Net periodic benefit (credit)/cost$(272)$(241)$253 
    
The following assumptions were used at the commencement of the year in determining the net periodic pension benefit (credit)/cost for the years ended December 31, 2023, December 31, 2022 and December 31, 2021:

December 31, 2023December 31, 2022December 31, 2021
Discount rate4.9 %1.8 %1.5 %
Rate of compensation increase3.6 %3.7 %3.4 %
Expected rate of return on plan assets3.8 %3.8 %3.4 %
Other comprehensive income/(loss)
 
December 31, 2023December 31, 2022December 31, 2021
 (in thousands)
Actuarial gain - benefit obligation$(335)$(18,636)$(2,097)
Actuarial loss/(gain) - plan assets910 7,305 (1,176)
Amortization of net gain/(loss) recognized in net periodic benefit (credit)/cost274 (228)(625)
 Total$849 $(11,559)$(3,898)

The estimated net loss and prior service cost for the defined benefit pension plan that will be amortized from accumulated other comprehensive income/(loss) into net periodic benefit cost over the next year are $0.2 million and $nil respectively.

Benefit Obligation

The following assumptions were used in determining the benefit obligation at December 31, 2023 and December 31, 2022:
December 31, 2023December 31, 2022
Discount rate4.8 %4.9 %
Rate of compensation increase3.0 %3.6 %

A single discount rate is used which, when used to discount the projected benefit cash flows underlying a pension scheme with a 19 year duration, gives the same result as a full AA corporate bond yield curve.

Actuarial gains on the benefit obligation during 2023 resulted from changes in the assumptions compared to those adopted at December 2022. Changes in the assumptions reflect the changes in market conditions from December 2022 to December 2023.

Plan Assets

The Company's pension plan asset allocation is as follows:
Asset Category
 
December 31, 2023December 31, 2022
Government Bonds78 %88 %
Diversified Bonds22 %12 %
 100 %100 %

During 2022, the scheme's asset strategy changed to align the plan assets more closely with government and diversified bonds. There is no self-investment in employer related assets. The Company’s assumption for the expected return on plan assets was determined by the weighted average of the long-term expected rate of return on each of the asset classes invested as of the balance sheet date. The expected long-term rate of return on assets is 3.8% at December 31, 2023 and December 31, 2022, respectively.


Plan Asset Fair Value Measurements
 December 31, 2023December 31, 2022
(in thousands)
Government Bonds$21,312 $22,887 
Diversified Bonds$6,008 $3,163 
 $27,320 $26,050 

The value of assets held by the plan are represented by quoted prices in active markets for identical assets and are therefore classified as level 1 investments.
Cash Flows
    
The Company expects to contribute $0.1 million to the pension fund in the year ending December 31, 2024. The following annual benefit payments, which reflect expected future service as appropriate, are expected to be paid.
(in thousands)
2024$379 
2025420 
2026679 
2027662 
2028612 
Years 2029 - 20334,028 

The expected cash flows are estimated figures based on the members expected to retire over the next 10 years assuming no early retirements, withdrawals or commutation of pension for cash. At the present time it is not clear whether annuities will be purchased when members reach retirement or whether pensions will be paid each month out of scheme assets. The cash flows above have been estimated on the assumption that pensions will be paid monthly out of scheme assets. If annuities are purchased, then the expected benefit payments will be significantly different from those shown above.
Aptiv Solutions pension plan

On May 7, 2014 the Company acquired 100% of the common stock of Aptiv Solutions ("Aptiv"). The Company has a defined benefit plan covering its employees in Switzerland as mandated by the Swiss government. Benefits are based on the employee's years of service and compensation. The plan is managed externally and the related pension costs and liabilities are assessed in accordance with the advice of a professionally qualified actuary. Plan assets at December 31, 2023 and December 31, 2022 consist of units held in independently administered funds. Pension plan disclosures are presented in the following tables in accordance with the requirements of ASC 715-20, Defined Benefit Plans - General.

Funded deficit
 
December 31, 2023December 31, 2022
 (in thousands)
Projected benefit obligation$(6,441)$(5,806)
Fair value of plan assets6,261 5,681 
 Funded deficit$(180)$(125)

The funded deficit at December 31, 2023 and December 31, 2022 are included in non-current other liabilities on the Consolidated Balance Sheet.

The change in benefit obligation is presented in the following table. The discount rates used in calculating the benefit obligation in years ended December 31, 2023 and December 31, 2022 were 1.5% and 2.3%, respectively.

Change in benefit obligation
 		December 31, 2023December 31, 2022
 (in thousands)
Benefit obligation at beginning of year$5,806 $7,643 
Service cost109 146 
Interest cost136 30 
Plan participants' contributions93 82 
Settlement(645)(218)
Prior service cost(13)(23)
Benefits paid and transferred balances(134)(182)
Actuarial loss/(gain)511 (1,527)
Foreign currency exchange rate changes578 (145)
Benefit obligation at end of year$6,441 $5,806 

Change in plan assetsDecember 31, 2023December 31, 2022
(in thousands)
Fair value of plan assets at beginning of year$5,681 $6,964 
Expected return on plan assets133 29 
Actuarial gain/(loss)356 (987)
Scheme contributions215 114 
Plan participants' contributions93 82 
Benefits paid and transferred balances(134)(182)
Settlement(645)(218)
Foreign currency exchange rate changes562 (121)
Fair value of plan assets at end of year$6,261 $5,681 

The fair values of the assets above do not include any of the Company's own financial instruments, property occupied by, or other assets used by, the Company.
PRA Switzerland AG pension plan

On July 1, 2021, the Company completed the Acquisition of PRA. PRA Switzerland AG, a subsidiary of the Company has a defined benefit plan covering its employees in Switzerland as mandated by the Swiss government. Benefits are based on the employee's years of service and compensation. The plan is managed externally and the related pension costs and liabilities are assessed in accordance with the advice of a professionally qualified actuary. Plan assets at December 31, 2023 consist of units held in independently administered funds. Pension plan disclosures are presented in the following tables in accordance with the requirements of ASC 715-20, Defined Benefit Plans - General.

Funded deficit
 
December 31, 2023December 31, 2022
 (in thousands)
Projected benefit obligation$(7,747)$(5,345)
Fair value of plan assets5,529 4,059 
Funded deficit$(2,218)$(1,286)

The funded deficit at December 31, 2023 and December 31, 2022 are included in non-current other liabilities on the Consolidated Balance Sheet.

The change in benefit obligation is presented in the following table. The discount rate used in calculating the benefit obligation in years ended December 31, 2023 and December 31, 2022 was 1.5% and 2.3%, respectively.

Change in benefit obligation
 		December 31, 2023December 31, 2022
 (in thousands)
Benefit obligation at beginning of period$5,345 $4,990 
Service cost417 404 
Interest cost132 20 
Plan participants’ contributions456 325 
Settlement(753)(844)
Benefits paid and transferred balances795 1,125 
Actuarial loss/(gain)711 (627)
Foreign currency exchange rate changes644 (48)
Benefit obligation at end of year$7,747 $5,345 

Change in plan assets
 
December 31, 2023December 31, 2022
(in thousands)
Fair value of plan assets at beginning of period$4,059 $3,017 
Expected return on plan assets101 29 
Actuarial (loss)/gain(52)87 
Scheme contributions456 325 
Plan participants’ contributions456 325 
Benefits paid and transferred balances795 1,125 
Settlement(753)(844)
Foreign currency exchange rate changes467 (5)
Fair value of plan assets at end of year$5,529 $4,059 

The fair values of the assets above do not include any of the Company's own financial instruments, property occupied by, or other assets used by, the Company.