ICON plc(ICLR) - 2024 Q4 - Annual Report

Revenue and Income - Revenue for the year ended December 31, 2024 increased by $161.5 million, or 2.0%, to$ 8,281.7 million compared to $8,120.2 million for the year ended December 31, 2023[421]. - Revenue in Ireland increased by$ 415.9 million, or 17.5%, to $2,793.0 million for the year ended December 31, 2024[423]. - Revenue in the U.S. decreased by$ 298.5 million, or 9.1%, to $2,985.3 million for the year ended December 31, 2024[425]. - Net income for the year ended December 31, 2024, was$ 699,018, significantly up from $356,467 in 2023, indicating an increase of approximately 96%[477]. - Income from operations increased by$ 141.7 million, or 14.8%, to $1,097.8 million for the year ended December 31, 2024, with an operating margin of 13.3% compared to 11.8% in 2023[435]. Expenses and Costs - Direct costs increased by$ 125.4 million, or 2.2%, to $5,845.3 million, representing 70.6% of revenue for the year ended December 31, 2024[427]. - Selling, general and administrative expenses decreased by$ 40.2 million, or 5.2%, to $728.3 million, representing 8.8% of revenue for the year ended December 31, 2024[428]. - Depreciation expense increased by$ 12.1 million, or 9.6%, to $138.2 million, representing 1.7% of revenue for the year ended December 31, 2024[429]. - Amortization expense decreased by$ 109.6 million, or 23.8%, to $350.3 million, representing 4.2% of revenue for the year ended December 31, 2024[431]. - Restructuring expenses increased by$ 46.7 million to $92.1 million, representing 1.1% of revenue for the year ended December 31, 2024[432]. - Total costs and expenses for the year ended December 31, 2024, were$ 6,647,712, a decrease from $6,683,520 in 2023, representing a reduction of about 0.5%[477]. Cash Flow and Assets - Cash and cash equivalents increased to$ 538.8 million as of December 31, 2024, up from $378.1 million at the end of 2023[446]. - Net cash provided by operating activities increased by$ 125.7 million to $1,286.7 million for the year ended December 31, 2024, compared to$ 1,161.0 million in 2023[449]. - Net cash used in investing activities was $266.8 million in 2024, primarily for capital expenditures of$ 168.1 million and acquisitions totaling $84.2 million[452]. - Current assets increased to$ 3,207,524 as of December 31, 2024, from $2,941,492 in 2023, showing an increase of approximately 9%[479]. - Total assets rose to$ 67,513,307 as of December 31, 2024, compared to $65,341,392 in 2023, marking an increase of about 3.3%[479]. - Current liabilities slightly increased to$ 2,561,140 in 2024 from $2,514,633 in 2023, reflecting a growth of approximately 1.8%[479]. Debt and Interest - As of December 31, 2024, 73% of the Company's outstanding debt was at a fixed interest rate, a significant increase from 13% on December 31, 2023[679]. - The Company closed the 2022 Caps and 2022 Swap agreements due to a significant reduction in exposure to interest rate fluctuations from voluntary and mandatory repayments of the senior secured term loan facility[678]. - Interest income rose to$ 8.6 million, a 71.7% increase from $5.0 million in 2023, while interest expense decreased by 29.5% to$ 237.2 million from $336.7 million[441]. - Interest income for the year ended December 31, 2024, was$ 8,609,000, with a potential change of $13,639,000 for a 1% increase in market interest rates and$ 3,579,000 for a 1% decrease[681]. - Interest expense for the year ended December 31, 2024, was $(237,237,000), with a potential change of$ (254,987,000) for a 1% increase in market interest rates and $(219,487,000) for a 1% decrease[681]. - The Company does not hedge its variable rate debt, which may lead to higher interest costs on unhedged debt[677]. Other Financial Information - The company had unsatisfied performance obligations of$ 15.9 billion as of December 31, 2024[414]. - The number of days' revenue outstanding remained stable at 47 days as of December 31, 2024, consistent with the previous year[450]. - The Company expects to incur additional expenses related to the Merger, with amounts dependent on integration activities[434]. - The company completed its annual goodwill impairment testing as of September 30, 2024, and determined there was no impairment of goodwill for the years ended December 31, 2024, and 2023[467]. - The company assesses long-lived assets for impairment whenever events indicate that the carrying amount might not be recoverable, evaluating future undiscounted cash flows[468]. - The company had no open foreign currency contracts at December 31, 2024, indicating a proactive approach to managing foreign currency exposure[674]. - The company applies the asset and liability method of accounting for income taxes, recognizing deferred tax assets and liabilities based on enacted tax rates expected to apply in future periods[470]. - The treasury function actively manages available cash resources and invests surplus cash balances to ensure optimum returns for the Company[676]. - The Company regularly evaluates its debt arrangements and market conditions to explore opportunities for modifying existing arrangements or pursuing additional financing[679]. - The Company may be subject to interest rate risk due to fluctuations in interest rates affecting cash and cash equivalents and available for sale investments[676]. - $23.5 million in financing fees have been allocated to interest costs, which are not impacted by changes in interest rates[681].