Virtusa (VRTU) 10-Q 30 Jul 15 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2015	Jul. 27, 2015
Document and Entity Information
Entity Registrant Name	VIRTUSA CORP
Entity Central Index Key	1,207,074
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		29,681,175
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Mar. 31, 2015
Current assets:
Cash and cash equivalents	$ 103,848	$ 124,802
Short-term investments	76,747	90,414
Accounts receivable, net of allowance of $1,054 and $881 at June 30, 2015 and March 31, 2015, respectively	91,994	75,431
Unbilled accounts receivable	23,812	27,914
Prepaid expenses	9,697	7,428
Deferred income taxes	7,793	7,639
Restricted cash	2,905	45
Other current assets	15,461	13,565
Total current assets	332,257	347,238
Property and equipment, net of accumulated depreciation of $37,671 and $36,203 at June 30, 2014 and March 31, 2015, respectively	39,075	37,988
Long-term investments	20,100	20,732
Deferred income taxes	4,698	4,764
Goodwill	70,718	50,360
Intangible assets, net	34,445	21,909
Other long-term assets	5,747	6,746
Total assets	507,040	489,737
Current liabilities:
Accounts payable	10,210	8,693
Accrued employee compensation and benefits	25,075	26,915
Accrued expenses and other current liabilities	33,206	23,762
Income taxes payable	2,289	1,834
Total current liabilities	70,780	61,204
Deferred income taxes	1,807	1,996
Long-term liabilities	3,434	2,762
Total liabilities	$ 76,021	$ 65,962
Commitments and guarantees
Stockholders' equity:
Undesignated preferred stock, $0.01 par value: Authorized 5,000,000 shares at June 30, 2015 and March 31, 2015; zero shares issued and outstanding at June 30, 2015 and March 31, 2015.
Common stock, $0.01 par value: Authorized 120,000,000 shares at June 30, 2015 and March 31, 2015; issued 31,046,485 and 30,854,979 shares at June 30, 2015 and March 31, 2015, respectively; outstanding 29,189,782 and 28,998,276 shares at June 30, 2015 and March 31, 2015, respectively	$ 310	$ 309
Treasury stock, 1,856,703 common shares, at cost, at June 30, 2015 and March 31, 2015, respectively	(9,652)	(9,652)
Additional paid-in capital	285,278	283,178
Retained earnings	194,181	184,068
Accumulated other comprehensive loss	(39,098)	(34,128)
Total stockholders' equity	431,019	423,775
Total liabilities, undesignated preferred stock and stockholders' equity	$ 507,040	$ 489,737

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Mar. 31, 2015
Consolidated Balance Sheets
Accounts receivable, allowance (in dollars)	$ 1,054	$ 881
Property and equipment, accumulated depreciation (in dollars)	$ 37,671	$ 36,203
Undesignated preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Undesignated preferred stock, Authorized shares	5,000,000	5,000,000
Undesignated preferred stock, shares issued	0	0
Undesignated preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, Authorized shares	120,000,000	120,000,000
Common stock, Issued shares	31,046,485	30,854,979
Common stock, Outstanding shares	29,189,782	28,998,276
Treasury stock, common shares	1,856,703	1,856,703

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Consolidated Statements of Income
Revenue	$ 134,844	$ 112,274
Costs of revenue	87,362	72,588
Gross profit	47,482	39,686
Operating expenses:
Selling, general and administrative expenses	35,072	28,456
Income from operations	12,410	11,230
Other income (expense):
Interest income	1,425	1,159
Foreign currency transaction losses	(25)	(155)
Other, net	(10)	(10)
Total other income	1,390	994
Income before income tax expense	13,800	12,224
Income tax expense	3,687	3,221
Net income	$ 10,113	$ 9,003
Net income per share of common stock:
Basic earnings per share	$ 0.35	$ 0.32
Diluted earnings per share	$ 0.34	$ 0.31

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Consolidated Statements of Comprehensive Income
Net income	$ 10,113	$ 9,003
Other comprehensive income (loss):
Foreign currency translation adjustments	(1,614)	(201)
Pension plan adjustment	56	(13)
Unrealized (loss) gain on available-for-sale securities, net of tax	(15)	50
Unrealized (loss) gain on effective cash flow hedges, net of tax	(3,397)	661
Other comprehensive (loss) income	(4,970)	497
Comprehensive income	$ 5,143	$ 9,500

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income	$ 10,113	$ 9,003
Adjustments to reconcile net income to net cash used in provided by operating activities:
Depreciation and amortization	3,640	3,641
Share-based compensation expense	3,529	2,471
Reversal of contingent consideration		(1,833)
Provision for doubtful accounts	137	34
Loss on sale of property and equipment	2
Deferred income taxes		350
Foreign currency losses, net	25	155
Amortization of discounts and premiums on investments	193	316
Excess tax benefits from stock option exercises	(1,673)	(1,461)
Net changes in operating assets and liabilities:
Accounts receivable and unbilled receivable	(7,820)	(8,012)
Prepaid expenses and other current assets	(5,969)	(919)
Other long-term assets	(55)	(453)
Accounts payable	(180)	189
Accrued employee compensation and benefits	(5,382)	(10,032)
Accrued expenses and other current liabilities	2,675	2,774
Income taxes payable	2,107	874
Other long-term liabilities	103	403
Net cash provided (used) by operating activities	1,445	(2,500)
Cash flows from investing activities:
Proceeds from sale of property and equipment	2
Purchase of short-term investments	(2,761)
Proceeds from sale or maturity of short-term investments	15,954	4,298
Purchase of long-term investments	(3,419)	(5,579)
Proceeds from sale or maturity of long-term investments	3,100	1,000
Increase in restricted cash	(2,860)	(63)
Business acquisition, net of cash acquired	(30,877)
Purchase of property and equipment	(2,138)	(4,448)
Net cash used in investing activities	(22,999)	(4,792)
Cash flows from financing activities:
Proceeds from exercise of common stock options	414	441
Payment of contingent consideration related to acquisitions		(441)
Principal payments on capital lease obligation	(29)	(3)
Excess tax benefits from stock option exercises	1,673	1,461
Net cash provided by financing activities	2,058	1,458
Effect of exchange rate changes on cash and cash equivalents	(1,458)	(1)
Net decrease in cash and cash equivalents	(20,954)	(5,835)
Cash and cash equivalents, beginning of period	124,802	82,761
Cash and cash equivalents, end of period	$ 103,848	$ 76,926

Nature of the Business

Nature of the Business	3 Months Ended
	Jun. 30, 2015
Nature of the Business
Nature of the Business	(1) Nature of Business Virtusa Corporation (the “Company” or “Virtusa”) is a global information technology services company. The Company uses an enhanced global delivery model to provide end to end information technology (“IT”) services to Global 2000 companies. These services include IT and business consulting, user experience (“UX”) design, development of IT applications, maintenance and support services, systems integration, infrastructure and managed services. Using its enhanced global delivery model, innovative platforming approach and industry expertise, the Company provides cost effective services that enable its clients to accelerate time to market, improve service and enhance productivity. Headquartered in Massachusetts, Virtusa has offices in the United States, the United Kingdom, Sweden, Germany, Netherlands and Austria and global delivery centers in India, Sri Lanka, Hungary, Singapore and Malaysia, as well as a near shore center in the United States.

Unaudited Interim Financial Inf

Unaudited Interim Financial Information	3 Months Ended
	Jun. 30, 2015
Unaudited Interim Financial Information
Unaudited Interim Financial Information	(2) Unaudited Interim Financial Information Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by the Company in accordance with U.S. generally accepted accounting principles and Article 10 of Regulation S-X under the Securities and Exchange Act of 1934, as amended, and should be read in conjunction with the Company’s audited consolidated financial statements (and notes thereto) for the fiscal year ended March 31, 2015 included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission, or SEC, on May 20, 2015. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted pursuant to such SEC rules and regulations. In the opinion of the Company’s management, all adjustments considered necessary for a fair presentation of the accompanying unaudited consolidated financial statements have been included, and all material adjustments are of a normal and recurring nature. Operating results for the interim periods are not necessarily indicative of results that may be expected to occur for the entire fiscal year. Principles of Consolidation The consolidated financial statements reflect the accounts of the Company and its direct and indirect subsidiaries, Virtusa Consulting Services Private Limited, Virtusa Software Services Private Limited and Virtusa Technologies (India) Private Limited, each organized and located in India, Virtusa (Private) Limited, organized and located in Sri Lanka, Virtusa UK Limited, organized and located in the United Kingdom, Virtusa Securities Corporation, a Massachusetts securities corporation, Apparatus Inc. incorporated and located in Indiana, Virtusa International, B.V., organized and located in the Netherlands, Virtusa Hungary Kft., incorporated and located in Hungary, Virtusa Germany GmbH, organized and located in Germany, Virtusa Switzerland GmbH, organized and located in Switzerland, Virtusa Singapore Private Limited, organized and located in Singapore, Virtusa Malaysia Private Limited Company located in Malayisa, Virtusa Austria GmbH, organized and located in Austria, Virtusa Philippines Inc. located in the Philippines, TradeTech Consulting Scandinavia AB organized and located in Sweden and Virtusa Canada, Inc., a corporation organized under the laws of British Columbia, Canada. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including the recoverability of tangible assets, disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. Management reevaluates these estimates on an ongoing basis. The most significant estimates relate to the recognition of revenue and profits based on the percentage of completion method of accounting for fixed price contracts, share based compensation, income taxes, including reserves for uncertain tax positions, deferred taxes and liabilities, intangible assets, contingent consideration and valuation of financial instruments including derivative contracts and investments. Management bases its estimates on historical experience and on various other factors and assumptions that are believed to be reasonable under the circumstances. The actual amounts may vary from the estimates used in the preparation of the accompanying consolidated financial statements. Fair Value of Financial Instruments At June 30, 2015 and March 31, 2015, the carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, unbilled accounts receivable, restricted cash, accounts payable, accrued employee compensation and benefits and other accrued expenses, approximate their fair values due to the nature of the items. See Note 5 for a discussion of the fair value of the Company’s other financial instruments. Recent accounting pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on April 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In June 2014, the FASB issued ASU No. 2014 12—“Stock Compensation—Accounting for Share Based Payments. In some cases, the terms of an award may provide that a performance target that affects vesting could be achieved after an employee completes the requisite service period. That is, the employee would be eligible to vest in the award regardless of whether the employee is rendering service on the date the performance target is achieved. A performance target that affects vesting and that could be achieved after an employee’s requisite service period shall be accounted for as a performance condition. As such, the performance target shall not be reflected in estimating the fair value of the award at the grant date. Compensation cost shall be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service already has been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost for which requisite service has not yet been rendered shall be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period shall reflect the number of awards that are expected to vest and shall be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. As indicated in the definition of vest, the stated vesting period (which includes the period in which the performance target could be achieved) may differ from the requisite service period. The ASU is effective for annual and interim periods for fiscal years beginning on or after December 15, 2015. Entities can apply the amendment either a) prospectively to all awards granted or modified after the effective date or b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The ASU does not have an impact on the consolidated financial statements.

Earnings per Share

Earnings per Share	3 Months Ended
	Jun. 30, 2015
Earnings per Share
Earnings per Share	(3) Earnings per Share Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding for the period, and diluted earnings per share is computed by including the dilutive impact of common stock equivalents outstanding for the period in the denominator. Common stock equivalents include shares issuable upon the exercise of outstanding stock options, stock appreciation rights, unvested restricted stock awards and unvested restricted stock units, net of shares assumed to have been purchased with the proceeds, using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share for the periods set forth below: Three Months Ended June 30, 2015 2014 Numerators: Net income $ $ Denominators: Weighted average common shares outstanding Dilutive effect of employee stock options and unvested restricted stock Dilutive effect of stock appreciation rights Weighted average shares-diluted Basic earnings per share $ $ Diluted earnings per share $ $ During the three months ended June 30, 2015 and 2014, options to purchase 5,538 and 25,378 shares of common stock, respectively, were excluded from the calculations of diluted earnings per share as their effect would have been anti-dilutive.

Investment Securities

Investment Securities	3 Months Ended
	Jun. 30, 2015
Investment Securities
Investment Securities	(4) Investment Securities At June 30, 2015 and March 31, 2015, all of the Company’s investment securities were classified as available-for-sale and were carried on its balance sheet at their fair market value. A fair market value hierarchy based on three levels of inputs was used to measure each security (see Note 5). The following is a summary of investment securities at June 30, 2015: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities: Corporate bonds: Current $ $ $ ) $ Non-current ) Agency and short-term notes: Current — Non-current — Municipal bonds: Current — — Time deposits: Current — — Total available-for-sale securities $ $ $ ) $ The following is a summary of investment securities at March 31, 2015: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities: Corporate bonds: Current $ $ $ ) $ Non-current — ) Agency and short-term notes: Current — Non-current ) Municipal bonds: Current — — Time deposits: Current — — Total available-for-sale securities $ $ $ ) $ The Company evaluates investments with unrealized losses to determine if the losses are other than temporary. The Company has determined that the gross unrealized losses at June 30, 2015 and March 31, 2015 are temporary. In making this determination, the Company considered the financial condition, credit ratings and near-term prospects of the issuers, the underlying collateral of the investments, and the magnitude of the losses as compared to the cost and the length of time the investments have been in an unrealized loss position. Additionally, while the Company classifies the securities as available for sale, the Company does not currently intend to sell such investments and it is more likely than not the Company will not be required to sell such investments prior to the recovery of their carrying value, except as disclosed in Note 5. Proceeds from sales of available-for-sale investment securities and the gross gains and losses that have been included in earnings as a result of those sales were as follows: Three months ended June 30, 2015 2014 Proceeds from sales of available-for-sale investment securities $ $ Gross gains $ $ — Gross losses — — Net realized gains on sales of available-for-sale investment securities $ $ —

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Jun. 30, 2015
Fair Value of Financial Instruments
Fair Value of Financial Instruments	(5) Fair Value of Financial Instruments The Company uses a framework for measuring fair value under U.S. generally accepted accounting principles and enhanced disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company’s financial assets and liabilities reflected in the consolidated financial statements at carrying value include marketable securities and other financial instruments which approximate fair value. Fair value for marketable securities is determined using a market approach based on quoted market prices at period end in active markets. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: · Level 1—Quoted prices in active markets for identical assets or liabilities. · Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at June 30, 2015: Level 1 Level 2 Level 3 Total Assets: Investments: Available-for-sales securities—current $ — $ $ — $ Available-for-sales securities—non-current — — Foreign currency derivative contracts — — Total assets $ — $ $ — $ Liabilities: Foreign currency derivative contracts $ — $ $ — $ Contingent consideration — — Total liabilities $ — $ $ $ The Company determines the fair value of the contingent consideration related to acquisitions based on the probability of attaining certain revenue and profit margin targets using an appropriate discount rate to present value the liability. See Note 7 of the notes to our financial statements included herein for a description of the Company’s acquisitions and related contingent consideration targets. The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities at June 30, 2015. Level 3 Liabilities Balance at April 1, 2015 $ Contingent consideration related to acquisition purchase price allocation Contingent consideration recognized in earnings Foreign currency translation adjustments Balance at June 30, 2015 $

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Jun. 30, 2015
Derivative Financial Instruments
Derivative Financial Instruments	(6) Derivative Financial Instruments The Company evaluates its foreign exchange policy on an ongoing basis to assess its ability to address foreign exchange exposures on its consolidated balance sheets, statements of income and consolidated statement of cash flows from all foreign currencies, including most significantly the U.K. pound sterling, the euro, the Swedish krona, Indian rupee and Sri Lankan rupee. The Company enters into hedging programs with highly rated financial institutions in accordance with its foreign exchange policy (as approved by the Company’s audit committee and board of directors) which permits hedging of material, known foreign currency exposures. Currently, the Company maintains three hedging programs, each with varying contract types, duration and purposes. The Company’s “Cash Flow Program” is designed to mitigate the impact of volatility in the U.S. dollar and U.K. pound sterling equivalents of the Company’s Indian rupee denominated expenses over a rolling 36 month period. The Cash Flow Program transactions currently meet the criteria for hedge accounting as cash flow hedges. The Company’s “Balance Sheet Program” involves the use of 30 day derivative instruments designed to mitigate the monthly impact of foreign exchange gains/losses on certain intercompany balances and payments. The Company’s “Economic Hedge Program” involves the purchase of derivative instruments with maturities of up to 92 days, and is designed to mitigate the impact of foreign exchange on U.K. pound sterling, the euro and Swedish krona denominated revenue and costs with respect to the quarter for which such instruments are purchased. The Balance Sheet Program and the Economic Hedge Program are treated as economic hedges as these programs do not meet the criteria for hedge accounting and all gains and losses are recognized in consolidated statement of income under the same line item as the underlying exposure being hedged. The Company evaluates all of its derivatives based on market observable inputs, including both forward and spot prices for currencies. Any significant change in the forward or spot prices for hedged currencies would have a significant impact on the value of the Company’s derivatives. Changes in fair value of the designated cash flow hedges for the Company’s Cash Flow Program are recorded as a component of accumulated other comprehensive income (loss) (“AOCI”), net of tax, until the forecasted hedged transactions occur and are then recognized in the consolidated statement of income in the same line item as the item being hedged . The Company evaluates hedge effectiveness at the time a contract is entered into, as well as on an ongoing basis. If, and when, all or part of a hedge relationship is discontinued because the forecasted transaction is deemed probable of not occurring by the end of the originally specified period or within an additional two-month period of time thereafter, the contract, or the relative amount of the contract, is deemed “ineffective” and any related derivative amounts recorded in equity are reclassified to earnings. There were no gains (losses) that were reclassified from AOCI into earnings as a result of forecasted transactions that were considered probable of not occurring for the three months ended June 30, 2015 and 2014. Changes in the fair value of the derivatives purchased under the Balance Sheet Program are reflected in the Company’s consolidated statement of income and are included in foreign currency transaction gains (losses) for each period. Changes in the fair value of the derivatives purchased under the Economic Hedge Program are also reflected in the Company’s consolidated statement of income and are included in the same line item as the underlying exposure being hedged for each period. The U.S. dollar notional equivalent market value, which consists of the notional value and net unrealized gain or loss, of all outstanding foreign currency derivative contracts, was $125,612 and $ 121,380, at June 30, 2015 and March 31, 2015, respectively. Unrealized net losses related to these contracts which are expected to be reclassified from AOCI to earnings during the next 12 months were $773 at June 30, 2015. At June 30, 2015, the maximum outstanding term of any derivative instrument was 33 months. The following table sets forth the fair value of derivative instruments included in the consolidated balance sheets at June 30, 2015 and March 31, 2015: Derivatives designated as hedging instruments June 30, 2015 March 31, 2015 Foreign currency exchange contracts: Other current assets $ $ Other long-term assets $ $ Accrued expenses and other current liabilities $ $ Long-term liabilities $ $ The following tables set forth the effect of the Company’s foreign currency exchange contracts on the consolidated financial statements of the Company for the three months ended June 30, 2015 and 2014: Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) Derivatives Designated as Cash Flow Three months June 30, Hedging Relationships 2015 2014 Foreign currency exchange contracts $ ) $ Location of Gain (Loss) Reclassified Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) from AOCI into Income (Effective Three months ended June 30, Portion) 2015 2014 Costs of revenue $ $ ) Operating expenses $ $ ) Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not Designated Location of Gain or (Loss) Three months ended June 30, as Hedging Instrument Recognized in Income on Derivatives 2015 2014 Foreign currency exchange contracts Foreign currency transaction gains (losses) $ ) $ ) Revenue $ ) $ ) Costs of revenue $ $ Selling, general and administrative expenses $ $

Acquisitions

Acquisitions	3 Months Ended
	Jun. 30, 2015
Acquisitions
Acquisitions	(7) Acquisitions On April 1, 2015, the Company entered into a Stock Purchase Agreement (the “Stock Purchase Agreement”) by and among the Company, Apparatus, Inc. an Indiana corporation (“Apparatus”), the majority stockholder of Apparatus (“Major Stockholder”) and the other stockholders (collectively with the Major Stockholder, the “Sellers”), to acquire all of the issued and outstanding stock of Apparatus (the “Acquisition”). The Company completed the Acquisition on April 1, 2015, at which time Apparatus became a wholly owned subsidiary of the Company. The acquisition strengthens the Company’s growing Infrastructure Management Services (IMS) practice and offers the combined Company’s clients a stronger set of offerings that are focused on simplifying their IT infrastructure and driving high levels of efficiency in IT operations. Under the terms of the Stock Purchase Agreement, the purchase price for the Acquisition was approximately $34,200 in cash, subject to post closing working capital adjustments. The purchase price is also subject to adjustment after the closing by up to an additional $1,700 in earn out consideration to the Sellers in the event of Apparatus’ achievement at 100% of certain revenue and profit milestones for the fiscal year ending March 31, 2016. The Sellers can earn up to 110% of the earn-out if the performance targets are exceeded by 110%. The Company deposited 8.5% of the purchase price into escrow for a period of 12 months as security for the Sellers’ indemnification obligations under the Stock Purchase Agreement. The Company, Sellers and Apparatus made customary representations, warranties and covenants in the Stock Purchase Agreement. In connection with the Acquisition, the Company offered employment to all of Apparatus’ employees. The Company has agreed to offer up to $1,500 in the form of variable cash compensation to certain Apparatus employees in the event of Apparatus’ achievement at 100% of certain revenue and profit milestones for the fiscal year ending March 31, 2016. These Apparatus employees can earn up to 110% if the performance targets are exceeded by 110%. The Company has also agreed to issue an aggregate of up to $3,500 in shares of restricted stock from the Company’s stock option and incentive plan, not to exceed 93,333 shares, to certain Apparatus employees. The shares will vest annually over a four year period and will be recorded as post-acquisition compensation expense. A summary of the preliminary purchase price allocation for Apparatus is as follows: Amount Useful Life Consideration Transferred: Cash paid at closing $ Holdback of 8.5% Fair value of contingent consideration Fair value of consideration transferred Less: Cash acquired ) Total purchase price, net of cash acquired $ Acquisition-related costs $ Purchase Price Allocation: Cash and cash equivalents $ Accounts receivable and unbilled receivable Prepaid expense Property and equipment Goodwill Customer relationships 10 years Technology 5 years Trademark 3 years Other current liabilities ) Total purchase price Less: Cash acquired ) Total purchase price, net of cash acquired $ The purchase price allocation is based upon preliminary estimates and assumptions that may be subject to change during the measurement period. On June 1, 2015, Virtusa AB, a wholly owned subsidiary of the Company organized and formed in Sweden, acquired the assets of a consulting company located in Sweden. The purchase price was approximately $360 in cash subject to adjustment after closing for up to an additional $540 in earn-out consideration. The purchase price allocation was as follows: goodwill of $505, customer relationships of $446 and other current liabilities of $51. The following unaudited, pro forma information assumes the Apparatus acquisition occurred on April 1, 2014. The unaudited pro forma consolidated results of operations are provided for informational purposes only and do not purport to represent the Company’s actual consolidated results of operations had each acquisition occurred on the dates assumed, nor are these necessarily indicative of the Company’s future consolidated results of operations. Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Revenue $ $ Net income $ $ Revenue and net loss relating to Apparatus since the acquisition date, amounting to $7,084 and $(612), respectively, have been included in the consolidated statement of income for the three months ended June 30, 2015. The unaudited pro forma consolidated results of operations for the three months ended June 30, 2015 and 2014 included amortization of intangible assets, share-based compensation expense, acquisition related costs, earn-out bonuses and changes in the fair value of contingent consideration.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets
Goodwill and Intangible Assets	(8) Goodwill and Intangible Assets Goodwill: The Company has one reportable segment. The following are details of the changes in goodwill balance at June 30, 2015: Amount Balance at April 1, 2015 $ Goodwill arising from acquisitions Foreign currency translation adjustments Balance at June 30, 2015 $ The acquisition costs and goodwill balance deductible for the Company’s business acquisitions for tax purposes are $60,318. The acquisition costs and goodwill balance not deductible for tax purposes are $9,895 and relate to the Company’s TradeTech Consulting AB acquisition, which closed on January 2, 2014. The Company performed the annual assessment of its goodwill during the fourth quarter of the fiscal year ended March 31, 2015 and determined that the estimated fair value of the Company’s reporting unit exceeded its carrying value and therefore goodwill was not impaired. The Company will continue to complete goodwill impairment assessments at least annually during the fourth quarter of each ensuing fiscal year. The Company will continue to evaluate whether events or circumstances have occurred that indicate that the estimated remaining useful life of its long-lived assets, including intangible assets, may warrant revision or that the carrying value of these assets may be impaired. Any write -downs are treated as permanent reductions in the carrying amount of the assets. Intangible Assets: The following are details of the Company’s intangible asset carrying amounts acquired and amortization at June 30, 2015. Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Customer relationships $ $ $ Partner relationships Trademark Backlog — Technology $ $ $ The intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized.

Income Taxes

Income Taxes	3 Months Ended
	Jun. 30, 2015
Income Taxes
Income Taxes	(9) Income Taxes The Company applies an estimated annual effective tax rate to its year-to-date operating results to determine the interim provision for income tax expense. The Company’s effective tax rate was 26.7% for the three months ended June 30, 2015, as compared to an effective tax rate of 26.4% for the three months ended June 30, 2014. The Company’s reported effective tax rate is impacted by jurisdictional mix of profits in which the Company operates, statutory tax rates in effect, unusual or infrequent discrete items requiring a provision during the period and certain exemptions or tax holidays the Company has in place. The Company created two export oriented units in India, one in Bangalore during the fiscal year ended March 31, 2011 and a second unit in Hyderabad during the fiscal year ended March 31, 2010 for which no income tax exemptions were availed. The Indian subsidiaries also operate two development centers in areas designated as a SEZ, under the SEZ Act of 2005. In particular, the Company was approved as a SEZ Co-developer and has built a campus on a 6.3 acre parcel of land in Hyderabad, India that has been designated as an SEZ. As a SEZ Co-developer, the Company is entitled to certain tax benefits for any consecutive period of 10 years during the 15 year period starting in fiscal year 2008. The Company has elected to claim SEZ Co-developer income tax benefits starting in fiscal year ended March 31, 2013. In addition, the Company has leased facilities in SEZ designated locations in Hyderabad and Chennai, India. The Company’s profits from the Hyderabad and Chennai SEZ operations are eligible for certain income tax exemptions for a period of up to 15 years beginning in fiscal March 31, 2009. The Company’s India profits ineligible for SEZ benefits are subject to corporate income tax at the current rate of 34.6%. In the fiscal year ended March 31, 2014, the Company leased a facility in a SEZ designated location in Bangalore and Pune, India each of which is eligible for tax holidays for up to 15 years beginning in the fiscal year ended March 31, 2014. Based on the latest changes in tax laws, book profits of SEZ units are subject to Indian Minimum Alternative Tax (“MAT”), commencing April 1, 2011, which will continue to negatively impact the Company’s cash flows. In addition, the Company’s Sri Lankan subsidiary, Virtusa (Private) Limited, is operating under a 12 year income tax holiday arrangement that is set to expire on March 31, 2019 and required Virtusa (Private) Limited to meet certain job creation and investment criteria by March 31, 2015. During the fiscal year ended March 31, 2015, the Company believed it had fulfilled its hiring and investment commitments and is eligible for tax holiday through March 2019. The current agreement provides income tax exemption for all export business income. The Company has submitted the required support to the Sri Lanka Board of Investment and is awaiting confirmation. At June 30, 2015, the Company believes it is eligible for the entire 12 year tax holiday. The Company’s effective income tax rate is based on the composition of estimated income in different jurisdictions, including those where the Company is enjoying tax holidays, for the applicable fiscal year and adjustments, if any, in the applicable quarterly periods, for unrecognized tax benefits for uncertain income tax positions or other discrete items required to be reported during interim periods. The Company’s aggregate income tax rate in foreign jurisdictions is lower than its income tax rate in the United States due primarily to lower rates generally in jurisdictions in which the Company operates and applicable tax holiday benefits of the Company, obtained primarily in India and Sri Lanka. Unrecognized tax benefits represent uncertain tax positions for which the Company has established reserves. At June 30, 2015 and March 31, 2015, the total liability for unrecognized tax benefits was $556 and $546, respectively, if realized. Each fiscal year, unrecognized tax benefits may be adjusted upon the closing of the statute of limitations for income tax returns filed in various jurisdictions. During the three months ended June 30, 2015 and June 30, 2014, the unrecognized tax benefits increased by $10 and decreased by $33, respectively. The increase in unrecognized tax benefits in the three months period ending June 30, 2015 was predominantly due to increases for incremental interest accrued on existing uncertain tax positions. Undistributed Earnings of Foreign Subsidiaries A substantial amount of the Company’s income before provision for income tax is from operations earned in its Indian and Sri Lankan subsidiaries and is subject to tax holiday. The Company intends to use accumulated and future earnings of foreign subsidiaries to expand operations outside the United States and, accordingly, undistributed income is considered to be indefinitely reinvested. The Company does not provide for U.S. income taxes on foreign earnings. At June 30, 2015, the Company had $202,390 of unremitted earnings from foreign subsidiaries and approximately $96,044 of cash and short-term investments that would otherwise be available for potential distribution, if not indefinitely reinvested. If required, such cash and investments could be repatriated to the United States. However, under current law, any repatriation would be subject to United States federal income tax less applicable foreign tax credits. Due to the various methods by which such earnings could be repatriated in the future, the amount of taxes attributable to the undistributed earnings is not practicably determinable.

Concentration of Revenue and As

Concentration of Revenue and Assets	3 Months Ended
	Jun. 30, 2015
Concentration of Revenue and Assets
Concentration of Revenue and Assets	(10) Concentration of Revenue and Assets Total revenue is attributed to geographic areas based on the location of the client. Long-lived assets represent property, plant and equipment, intangible assets and goodwill, net of accumulated depreciation and amortization, and are attributed to geographic area based on their location. Geographic information is summarized as follows: Three Months Ended June 30, 2015 2014 Client revenue: North America $ $ Europe Rest of world Consolidated revenue $ $ June 30, 2015 March 31, 2015 Long-lived assets, net of accumulated depreciation and amortization: North America $ $ Asia Europe Consolidated long-lived assets, net $ $ Revenue from significant clients as a percentage of the Company’s consolidated revenue was as follows: Three Months Ended June 30, 2015 2014 Customer 1 % % Customer 2 % %

Debt

Debt	3 Months Ended
	Jun. 30, 2015
Debt
Debt	(11) Debt On December 31, 2013, the Company entered into an amended and restated credit agreement with JPMorgan Chase Bank, N.A. (“JPM”). The credit agreement amended and restated the Company’s $3,000 secured revolving credit agreement with JPM and provides for a $25,000 secured revolving credit facility, which shall be available to fund working capital and other corporate purposes, as well as to serve as security in support of the Company’s foreign currency hedging programs. The credit agreement contains financial covenants that require the Company to maintain a Funded Debt to Adjusted EBITDA Ratio of not more than 2.00 to 1.00 and a Fixed Charge Coverage Ratio of less than 2.50 to 1.00, each as determined for the trailing twelve month period ending on each fiscal quarter. The Company is currently in compliance with all covenants contained in the credit agreement and believes that the credit agreement provides sufficient flexibility to enable continued compliance with its terms. Interest under this credit facility accrues at a rate between LIBOR plus 1.5% and LIBOR plus 1.75% based on the Company’s ratio of indebtedness to Adjusted EBITDA. The term of the credit facility is five years, ending December 31, 2018. This facility replaced the Company’s prior $3,000 line of credit with JPM. At June 30, 2015, there were no borrowings outstanding under the credit facility. Beginning in fiscal 2009, the Company’s U.K. subsidiary entered into an agreement with a financial institution to sell, without recourse, certain of its Europe-based accounts receivable balances to the financial institution. During the three months ended June 30, 2015, $3,867 of receivables was sold under the terms of the financing agreement. Fees paid pursuant to this agreement were immaterial during the three months ended June 30, 2015. The Company had no letters of credit outstanding at June 30, 2015.

Pension and Post-retirement Ben

Pension and Post-retirement Benefits	3 Months Ended
	Jun. 30, 2015
Pension and Post-retirement Benefits
Pension and Post-retirement Benefits	(12) Pensions and post-retirement benefits The Company has noncontributory defined benefit plans covering its employees in India and Sri Lanka as mandated by the Indian and Sri Lankan governments. The following tables provide information regarding pension expense recognized: Three Months Ended June 30, 2015 2014 Components of net periodic pension cost Service cost $ $ Interest cost Expected return on plan assets ) ) Amortization past service cost Amortization of actuarial loss Net periodic pension cost $ $ The Company expects to contribute approximately $1,000 in cash to the pension plans during the fiscal year ending March 31, 2016. The Company made cash contributions of $729 to the plans during the three months ended June 30, 2015.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Jun. 30, 2015
Accumulated Other Comprehensive Loss:
Accumulated Other Comprehensive Loss	(13) Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive income (loss) by component were as follows for the three months ended June 30, 2015 and 2014: Accumulated Other Comprehensive Income (Loss) Three Months Ended June 30, (In thousands, except per share amounts) 2015 2014 Investment securities Beginning balance $ ) $ ) Other comprehensive income (loss) (OCI) before reclassifications net of tax of $0 for all periods ) Reclassifications from OCI to other income — net of tax of $0 for all periods ) — Comprehensive income (loss) on investment securities, net of tax of $0 for all periods ) Closing Balance $ ) $ ) Currency Translation Adjustments Beginning balance $ ) $ ) OCI before reclassifications ) ) Closing Balance $ ) $ ) Cash Flow Hedges Beginning balance $ $ ) OCI before reclassifications net of tax of $(828), and $357 ) Reclassifications from OCI to - Costs of revenue, net of tax of $(53) and $38 ) - Selling, general and administrative expenses, net of tax of $(29) and $24 ) Comprehensive income (loss) on cash flow hedges, net of tax of $(910) and $419 ) Closing Balance $ ) $ ) Benefit plans Beginning balance $ ) $ ) OCI before reclassifications net of tax of $0 for all periods — — Reclassifications from OCI for prior service credit (cost) to: - Costs of revenue, net of tax of $0 for all periods - Selling, general and administrative expenses, net of tax of $0 for all periods — — Reclassifications from OCI for net actuarial gain (loss) amortization to: - Costs of revenue, net of tax of $0 for all periods - Selling, general and administrative expenses, net of tax of $0 for all periods Other adjustments ) Comprehensive income (loss) on benefit plans, net of tax of $0 for all periods ) Closing Balance $ ) ) Accumulated other comprehensive loss closing balance $ ) $ )

Subsequent Events

Subsequent Events	3 Months Ended
	Jun. 30, 2015
Subsequent Events
Subsequent Events	(14) Subsequent Events On July 16, 2015, the Company purchased multiple foreign currency forward contracts designed to hedge fluctuation in the U.K. pound sterling against the U.S. dollar. The contracts have an aggregate notional amount of approximately £4,327 (approximately $6,717) and will expire on various dates through September 30, 2015. The weighted average U.K. pound sterling settlement rate associated with these contracts is approximately $1.55. On July 21, 2015, the Company purchased multiple foreign currency forward contracts designed to hedge fluctuation in the Swedish Krona (“SEK”) against the U.S. dollar and the euro (“EUR”) against the U.S. dollar (the “Euro contracts”), each of which will expire on various dates during the period ending September 30, 2015. The SEK contracts have an aggregate notional amount of approximately SEK 2,758 (approximately $324) and the EUR contracts have an aggregate notional amount of approximately EUR 92 (approximately $101). The weighted average U.S. dollar settlement rate associated with the SEK contracts is approximately $0.117, and the weighted average U.S. dollar settlement rate associated with the EUR contracts is approximately $1.092. On July 27, 2015, the Company purchased multiple foreign currency forward contracts designed to hedge fluctuation in the Indian rupee against the U.S. dollar and U.K. pound sterling. The U.S dollar contracts have an aggregate notional amount of approximately 963,543 Indian rupees (approximately $13,819) and have an average settlement rate of 69.96 Indian rupees. The U.K. pound sterling contracts have an aggregate notional amount of approximately 657,177 Indian rupees (approximately £6,058) and have an average settlement rate of 108.57 Indian rupees. These contracts will expire at various dates during the 36 month period ending on June 30, 2018. The Company will be obligated to settle these contracts based upon the Reserve Bank of India published Indian rupee exchange rates. Based on the U.S. dollar to U.K. pound sterling spot rate on July 27, 2015 of $1.55, the blended weighted average Indian rupee rate associated with both the U.S. dollar and U.K. pound sterling contracts would be approximately 69.83 Indian rupees per U.S. dollar. On July 28, 2015, the Company acquired the business of Agora Group, Inc., an IT consulting organization headquartered in Atlanta, Georgia, USA and its Indian affiliate (collectively, “Agora”), focused on implementing and integrating business process management (BPM) solutions on leading BPM suites. Agora employs approximately 60 experienced practitioners with deep knowledge in BPM-related solutions. Under the terms of the asset purchase agreement by and among the Company, Agora Group, Inc. and the sole stockholder of the Agora Group, Inc., the Company acquired Agora’s business for approximately $7,500 in cash (net of working capital adjustments). The Company has also agreed to issue an aggregate of up to $2,890 in restricted stock awards from the Company’s stock option and incentive plan, not to exceed 77,067 shares, to certain Agora employees. The restricted stock awards will vest annually over a four year period. From the purchase price, the Company deposited approximately $854 into escrow for a period of 12 months as security for the Agora Group’s and the sole stockholder’s indemnification obligations under the asset purchase agreement. The Company, the Agora Group and sole stockholder made customary representations, warranties and covenants in the asset purchase agreement. The asset purchase agreement also contains non-solicitation and non-competition provisions pursuant to which the Agora Group and the sole stockholder agreed not to solicit any employee or affiliate or client of the Company and to not engage in any competitive business or activities, in each case, for a period of three years after the date of closing of the transaction.

Unaudited Interim Financial I21

Unaudited Interim Financial Information (Policies)	3 Months Ended
	Jun. 30, 2015
Unaudited Interim Financial Information
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by the Company in accordance with U.S. generally accepted accounting principles and Article 10 of Regulation S-X under the Securities and Exchange Act of 1934, as amended, and should be read in conjunction with the Company’s audited consolidated financial statements (and notes thereto) for the fiscal year ended March 31, 2015 included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission, or SEC, on May 20, 2015. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted pursuant to such SEC rules and regulations. In the opinion of the Company’s management, all adjustments considered necessary for a fair presentation of the accompanying unaudited consolidated financial statements have been included, and all material adjustments are of a normal and recurring nature. Operating results for the interim periods are not necessarily indicative of results that may be expected to occur for the entire fiscal year.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements reflect the accounts of the Company and its direct and indirect subsidiaries, Virtusa Consulting Services Private Limited, Virtusa Software Services Private Limited and Virtusa Technologies (India) Private Limited, each organized and located in India, Virtusa (Private) Limited, organized and located in Sri Lanka, Virtusa UK Limited, organized and located in the United Kingdom, Virtusa Securities Corporation, a Massachusetts securities corporation, Apparatus Inc. incorporated and located in Indiana, Virtusa International, B.V., organized and located in the Netherlands, Virtusa Hungary Kft., incorporated and located in Hungary, Virtusa Germany GmbH, organized and located in Germany, Virtusa Switzerland GmbH, organized and located in Switzerland, Virtusa Singapore Private Limited, organized and located in Singapore, Virtusa Malaysia Private Limited Company located in Malayisa, Virtusa Austria GmbH, organized and located in Austria, Virtusa Philippines Inc. located in the Philippines, TradeTech Consulting Scandinavia AB organized and located in Sweden and Virtusa Canada, Inc., a corporation organized under the laws of British Columbia, Canada. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including the recoverability of tangible assets, disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. Management reevaluates these estimates on an ongoing basis. The most significant estimates relate to the recognition of revenue and profits based on the percentage of completion method of accounting for fixed price contracts, share based compensation, income taxes, including reserves for uncertain tax positions, deferred taxes and liabilities, intangible assets, contingent consideration and valuation of financial instruments including derivative contracts and investments. Management bases its estimates on historical experience and on various other factors and assumptions that are believed to be reasonable under the circumstances. The actual amounts may vary from the estimates used in the preparation of the accompanying consolidated financial statements.
Fair Value of Financial Instruments	Fair Value of Financial Instruments At June 30, 2015 and March 31, 2015, the carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, unbilled accounts receivable, restricted cash, accounts payable, accrued employee compensation and benefits and other accrued expenses, approximate their fair values due to the nature of the items. See Note 5 for a discussion of the fair value of the Company’s other financial instruments.
Recent Accounting Pronouncements	Recent accounting pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on April 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In June 2014, the FASB issued ASU No. 2014 12—“Stock Compensation—Accounting for Share Based Payments. In some cases, the terms of an award may provide that a performance target that affects vesting could be achieved after an employee completes the requisite service period. That is, the employee would be eligible to vest in the award regardless of whether the employee is rendering service on the date the performance target is achieved. A performance target that affects vesting and that could be achieved after an employee’s requisite service period shall be accounted for as a performance condition. As such, the performance target shall not be reflected in estimating the fair value of the award at the grant date. Compensation cost shall be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service already has been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost for which requisite service has not yet been rendered shall be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period shall reflect the number of awards that are expected to vest and shall be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. As indicated in the definition of vest, the stated vesting period (which includes the period in which the performance target could be achieved) may differ from the requisite service period. The ASU is effective for annual and interim periods for fiscal years beginning on or after December 15, 2015. Entities can apply the amendment either a) prospectively to all awards granted or modified after the effective date or b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The ASU does not have an impact on the consolidated financial statements.

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Jun. 30, 2015
Earnings per Share
Schedule of computation of basic and diluted earnings per share	Three Months Ended June 30, 2015 2014 Numerators: Net income $ $ Denominators: Weighted average common shares outstanding Dilutive effect of employee stock options and unvested restricted stock Dilutive effect of stock appreciation rights Weighted average shares-diluted Basic earnings per share $ $ Diluted earnings per share $ $

Investment Securities (Tables)

Investment Securities (Tables)	3 Months Ended
	Jun. 30, 2015
Investment Securities
Schedule of investment securities	The following is a summary of investment securities at June 30, 2015: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities: Corporate bonds: Current $ $ $ ) $ Non-current ) Agency and short-term notes: Current — Non-current — Municipal bonds: Current — — Time deposits: Current — — Total available-for-sale securities $ $ $ ) $ The following is a summary of investment securities at March 31, 2015: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities: Corporate bonds: Current $ $ $ ) $ Non-current — ) Agency and short-term notes: Current — Non-current ) Municipal bonds: Current — — Time deposits: Current — — Total available-for-sale securities $ $ $ ) $
Schedule of proceeds from sales of available for sale investment securities and the gross gains and losses that have been included in earnings	Three months ended June 30, 2015 2014 Proceeds from sales of available-for-sale investment securities $ $ Gross gains $ $ — Gross losses — — Net realized gains on sales of available-for-sale investment securities $ $ —

Fair Value of Financial Instr24

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Jun. 30, 2015
Fair Value of Financial Instruments
Schedule of financial assets and liabilities measured at fair value on a recurring basis	The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at June 30, 2015: Level 1 Level 2 Level 3 Total Assets: Investments: Available-for-sales securities—current $ — $ $ — $ Available-for-sales securities—non-current — — Foreign currency derivative contracts — — Total assets $ — $ $ — $ Liabilities: Foreign currency derivative contracts $ — $ $ — $ Contingent consideration — — Total liabilities $ — $ $ $
Schedule of changes in fair value of the Company's Level 3 financial liabilities	Level 3 Liabilities Balance at April 1, 2015 $ Contingent consideration related to acquisition purchase price allocation Contingent consideration recognized in earnings Foreign currency translation adjustments Balance at June 30, 2015 $

Derivative Financial Instrume25

Derivative Financial Instruments (Tables)	3 Months Ended
	Jun. 30, 2015
Derivative Financial Instruments
Schedule of fair value of derivative instruments included in the consolidated balance sheets	June 30, 2015 March 31, 2015 Foreign currency exchange contracts: Other current assets $ $ Other long-term assets $ $ Accrued expenses and other current liabilities $ $ Long-term liabilities $ $
Schedule of effect of the foreign currency exchange contracts on the consolidated financial statements	Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) Derivatives Designated as Cash Flow Three months June 30, Hedging Relationships 2015 2014 Foreign currency exchange contracts $ ) $ Location of Gain (Loss) Reclassified Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) from AOCI into Income (Effective Three months ended June 30, Portion) 2015 2014 Costs of revenue $ $ ) Operating expenses $ $ ) Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not Designated Location of Gain or (Loss) Three months ended June 30, as Hedging Instrument Recognized in Income on Derivatives 2015 2014 Foreign currency exchange contracts Foreign currency transaction gains (losses) $ ) $ ) Revenue $ ) $ ) Costs of revenue $ $ Selling, general and administrative expenses $ $

Acquisitions (Tables)

Acquisitions (Tables) - Apparatus	3 Months Ended
	Jun. 30, 2015
Acquisitions
Summary of the purchase price allocation	Amount Useful Life Consideration Transferred: Cash paid at closing $ Holdback of 8.5% Fair value of contingent consideration Fair value of consideration transferred Less: Cash acquired ) Total purchase price, net of cash acquired $ Acquisition-related costs $ Purchase Price Allocation: Cash and cash equivalents $ Accounts receivable and unbilled receivable Prepaid expense Property and equipment Goodwill Customer relationships 10 years Technology 5 years Trademark 3 years Other current liabilities ) Total purchase price Less: Cash acquired ) Total purchase price, net of cash acquired $
Schedule of unaudited, pro forma information	Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Revenue $ $ Net income $ $

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets
Schedule of changes in goodwill	Amount Balance at April 1, 2015 $ Goodwill arising from acquisitions Foreign currency translation adjustments Balance at June 30, 2015 $
Schedule of carrying amount and amortization of acquired intangible asset	The following are details of the Company’s intangible asset carrying amounts acquired and amortization at June 30, 2015. Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Customer relationships $ $ $ Partner relationships Trademark Backlog — Technology $ $ $

Concentration of Revenue and 28

Concentration of Revenue and Assets (Tables)	3 Months Ended
	Jun. 30, 2015
Concentration of Revenue and Assets
Schedule of revenue attributed to geographic areas based on location of the client	Three Months Ended June 30, 2015 2014 Client revenue: North America $ $ Europe Rest of world Consolidated revenue $ $
Schedule of long-lived assets, net of accumulated depreciation and amortization attributed to geographic areas based on location of assets	June 30, 2015 March 31, 2015 Long-lived assets, net of accumulated depreciation and amortization: North America $ $ Asia Europe Consolidated long-lived assets, net $ $
Schedule of revenue from significant clients as a percentage of consolidated revenue	Three Months Ended June 30, 2015 2014 Customer 1 % % Customer 2 % %

Pensions and Post-retirement be

Pensions and Post-retirement benefits (Tables)	3 Months Ended
	Jun. 30, 2015
Post-retirement benefits.
Schedule of pension expense recognized	Three Months Ended June 30, 2015 2014 Components of net periodic pension cost Service cost $ $ Interest cost Expected return on plan assets ) ) Amortization past service cost Amortization of actuarial loss Net periodic pension cost $ $

Accumulated Other Comprehensi30

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Jun. 30, 2015
Accumulated Other Comprehensive Loss:
Schedule of changes in accumulated other comprehensive income (loss) by component	Accumulated Other Comprehensive Income (Loss) Three Months Ended June 30, (In thousands, except per share amounts) 2015 2014 Investment securities Beginning balance $ ) $ ) Other comprehensive income (loss) (OCI) before reclassifications net of tax of $0 for all periods ) Reclassifications from OCI to other income — net of tax of $0 for all periods ) — Comprehensive income (loss) on investment securities, net of tax of $0 for all periods ) Closing Balance $ ) $ ) Currency Translation Adjustments Beginning balance $ ) $ ) OCI before reclassifications ) ) Closing Balance $ ) $ ) Cash Flow Hedges Beginning balance $ $ ) OCI before reclassifications net of tax of $(828), and $357 ) Reclassifications from OCI to - Costs of revenue, net of tax of $(53) and $38 ) - Selling, general and administrative expenses, net of tax of $(29) and $24 ) Comprehensive income (loss) on cash flow hedges, net of tax of $(910) and $419 ) Closing Balance $ ) $ ) Benefit plans Beginning balance $ ) $ ) OCI before reclassifications net of tax of $0 for all periods — — Reclassifications from OCI for prior service credit (cost) to: - Costs of revenue, net of tax of $0 for all periods - Selling, general and administrative expenses, net of tax of $0 for all periods — — Reclassifications from OCI for net actuarial gain (loss) amortization to: - Costs of revenue, net of tax of $0 for all periods - Selling, general and administrative expenses, net of tax of $0 for all periods Other adjustments ) Comprehensive income (loss) on benefit plans, net of tax of $0 for all periods ) Closing Balance $ ) ) Accumulated other comprehensive loss closing balance $ ) $ )

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Numerators:
Net income	$ 10,113	$ 9,003
Denominators:
Weighted average common shares outstanding	29,068,946	28,476,804
Dilutive effect of employee stock options and unvested restricted stock awards (in shares)	861,353	875,035
Dilutive effect of stock appreciation rights (in shares)	4,329	9,442
Weighted average shares-diluted	29,934,628	29,361,281
Basic earnings per share	$ 0.35	$ 0.32
Diluted earnings per share	$ 0.34	$ 0.31
Unvested restricted stock and options excluded from the calculations of diluted earnings per share (in shares)	5,538	25,378

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2015
Investment Securities
Available-for-sale Securities, Amortized Cost Basis	$ 96,892		$ 111,177
Gross Unrealized Gains	10		14
Gross Unrealized Losses	(55)		(45)
Fair Value	96,847		111,146
Proceeds from sales of available for sale investment securities and the gross gains and losses
Proceeds from sales of available for sale investment securities	19,054	$ 5,298
Gross gains	1
Net realized gains on sales of available-for-sale investment securities	1
Corporate bonds | Current
Investment Securities
Available-for-sale Securities, Amortized Cost Basis	36,714		41,873
Gross Unrealized Gains	2		10
Gross Unrealized Losses	(30)		(22)
Fair Value	36,686		41,861
Corporate bonds | Non-current
Investment Securities
Available-for-sale Securities, Amortized Cost Basis	13,017		10,551
Gross Unrealized Gains	6
Gross Unrealized Losses	(25)		(21)
Fair Value	12,998		10,530
Agency and short-term notes | Current
Investment Securities
Available-for-sale Securities, Amortized Cost Basis	4,026		6,737
Gross Unrealized Gains	1		3
Fair Value	4,027		6,740
Agency and short-term notes | Non-current
Investment Securities
Available-for-sale Securities, Amortized Cost Basis	7,101		10,203
Gross Unrealized Gains	1		1
Gross Unrealized Losses			(2)
Fair Value	7,102		10,202
Municipal bonds | Current
Investment Securities
Available-for-sale Securities, Amortized Cost Basis	200		200
Fair Value	200		200
Time deposits | Current
Investment Securities
Available-for-sale Securities, Amortized Cost Basis	35,834		41,613
Fair Value	$ 35,834		$ 41,613

Fair Value of Financial Instr33

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Mar. 31, 2015
Level 3
Liabilities:
Total liabilities	$ 3,947	$ 2,432
Recurring | Level 2
Investments:
Available-for-sale securities - current	76,747
Available-for-sale securities - non-current	20,100
Foreign currency derivative contracts	1,733
Total assets	98,580
Liabilities:
Foreign currency derivative contracts	3,197
Total liabilities	3,197
Recurring | Level 3
Liabilities:
Contingent consideration	3,947
Total liabilities	3,947
Recurring | Total
Investments:
Available-for-sale securities - current	76,747
Available-for-sale securities - non-current	20,100
Foreign currency derivative contracts	1,733
Total assets	98,580
Liabilities:
Foreign currency derivative contracts	3,197
Contingent consideration	3,947
Total liabilities	$ 7,144

Fair Value of Financial Instr34

Fair Value of Financial Instruments (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Changes in fair value of the Company's Level 3 financial liabilities
Contingent consideration recognized in earnings		$ (1,833)
Foreign currency translation adjustments	$ (1,614)	$ (201)
Level 3
Changes in fair value of the Company's Level 3 financial liabilities
Balance at start of period	2,432
Contingent consideration related to acquisition purchase price allocation	1,370
Contingent consideration recognized in earnings	144
Foreign currency translation adjustments	1
Balance at end of period	$ 3,947

Derivative Financial Instrume35

Derivative Financial Instruments (Details) - Foreign currency exchange contracts $ in Thousands	3 Months Ended
	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Mar. 31, 2015USD ($)
Derivative Financial Instruments and Trading Activities
Number of hedging programs maintained | item	3
Maximum outstanding term of derivative instruments	33 months
U.S. dollar notional equivalent market value	$ 125,612		$ 121,380
Derivatives designated as hedging instruments
Derivative Financial Instruments and Trading Activities
Period hedged by Cash Flow Program	36 months
Additional period after which the contract is deemed ineffective	2 months
Unrealized net gains related to derivative instruments expected to be reclassified from AOCI into earnings during the next 12 months	$ 773
Other current assets	1,235		3,285
Other long-term assets	498		1,359
Accrued expenses and other current liabilities	2,008		1,183
Long-term liabilities	1,189		$ 619
Derivatives designated as hedging instruments | Cash Flow Hedges | Reclassification out of accumulated other comprehensive income
Derivative Financial Instruments and Trading Activities
Amount reclassified to earnings as a result of hedge ineffectiveness	$ 0	$ 0
Derivatives not Designated as Hedging Instrument
Derivative Financial Instruments and Trading Activities
Maturity period of Balance Sheet Program derivatives	30 months
Maximum outstanding term of derivative instruments	92 days

Derivative Financial Instrume36

Derivative Financial Instruments (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Costs of revenue
Derivative Financial Instruments
Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)	$ 280	$ (394)
Operating expenses
Derivative Financial Instruments
Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)	151	(243)
Derivatives designated as hedging instruments | Foreign currency exchange contracts
Derivative Financial Instruments
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)	(3,876)	443
Derivatives not Designated as Hedging Instrument | Foreign currency exchange contracts | Foreign currency transaction gains (losses)
Derivative Financial Instruments
Amount of Gain (Loss) Recognized in Income on Derivatives	(898)	(249)
Derivatives not Designated as Hedging Instrument | Foreign currency exchange contracts | Revenue
Derivative Financial Instruments
Amount of Gain (Loss) Recognized in Income on Derivatives	(286)	(148)
Derivatives not Designated as Hedging Instrument | Foreign currency exchange contracts | Costs of revenue
Derivative Financial Instruments
Amount of Gain (Loss) Recognized in Income on Derivatives	106	49
Derivatives not Designated as Hedging Instrument | Foreign currency exchange contracts | Selling, general and administrative expenses
Derivative Financial Instruments
Amount of Gain (Loss) Recognized in Income on Derivatives	$ 5	$ 9

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Thousands	Apr. 01, 2015	Jun. 30, 2015
Acquisitions
Total purchase price, net of cash acquired		$ 30,877
Apparatus
Acquisitions
Total purchase price, net of cash acquired	$ 34,250
Hold back percentage	8.50%
Hold back period	12 months
Vesting period	4 years
Apparatus | Deferred restricted stock awards | Maximum
Acquisitions
Authorized value of awards	$ 3,500
Number of authorized shares	93,333
Milestone achievement | Apparatus
Acquisitions
Additional consideration	$ 1,700
Percentage of revenue recognition milestone	100.00%
Maximum earnings, if performance target exceeds 110 percent	110.00%
Threshold limit of performance target to earn maximum earning	110.00%
Bonus Pool | Milestone achievement | Apparatus
Acquisitions
Additional consideration	$ 1,500

Acquisitions (Details 2)

Acquisitions (Details 2) - USD ($) $ in Thousands	Jun. 01, 2015	Apr. 01, 2015	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2015
Consideration Transferred:
Total purchase price, net of cash acquired			$ 30,877
Purchase Price Allocation
Goodwill			$ 70,718		$ 50,360
Weighted Average Useful Life			9 years 2 months 12 days
Unaudited, pro forma information
Revenue			$ 134,844	$ 119,084
Net income			$ 10,448	$ 8,252
Customer relationships
Purchase Price Allocation
Weighted Average Useful Life		10 years	9 years 6 months
Technology
Purchase Price Allocation
Weighted Average Useful Life		5 years	5 years
Trademark
Purchase Price Allocation
Weighted Average Useful Life		3 years	2 years 8 months 12 days
Apparatus
Consideration Transferred:
Cash paid at closing		$ 31,248
Holdback of 8.5%		2,903
Fair value of contingent consideration		830
Fair value of consideration transferred		34,981
Less : Cash acquired		(731)
Total purchase price, net of cash acquired		34,250
Acquisition-related costs		631
Purchase Price Allocation
Cash and cash equivalents		731
Accounts receivable		2,916
Prepaid expense		79
Property and equipment		1,115
Goodwill		19,526
Other current liabilities		2,486
Total purchase price		34,981
Less : Cash acquired		(731)
Total purchase price, net of cash acquired		34,250
Unaudited, pro forma information
Revenue			$ 7,084
Net income			$ (612)
Apparatus | Customer relationships
Purchase Price Allocation
Intangibles assets		12,200
Apparatus | Technology
Purchase Price Allocation
Intangibles assets		500
Apparatus | Trademark
Purchase Price Allocation
Intangibles assets		$ 400
Consulting company | Virtusa AB
Consideration Transferred:
Fair value of consideration transferred	$ 360
Purchase Price Allocation
Additional consideration	540
Goodwill	505
Intangibles assets	446
Other current liabilities	$ 51

Goodwill and Intangible Asset39

Goodwill and Intangible Assets (Details) - Jun. 30, 2015 $ in Thousands	USD ($)item
Goodwill:
Number of reportable segments | item	1
Changes in goodwill
Balance at the beginning of the period	$ 50,360
Goodwill arising from acquisitions	20,031
Foreign currency translation adjustments	327
Balance at the end of the period	70,718
Acquisition costs and goodwill deductible for tax purposes	60,318
Trade Tech
Changes in goodwill
Acquisition costs and goodwill not deductible for tax purposes	$ 9,895

Goodwill and Intangible Asset40

Goodwill and Intangible Assets (Details 2) - USD ($) $ in Thousands	Apr. 01, 2015	Jun. 30, 2015	Mar. 31, 2015
Intangible Assets
Weighted Average Useful Life		9 years 2 months 12 days
Gross Carrying Amount		$ 49,803
Accumulated Amortization		15,358
Net Carrying Amount		$ 34,445	$ 21,909
Customer relationships
Intangible Assets
Weighted Average Useful Life	10 years	9 years 6 months
Gross Carrying Amount		$ 46,963
Accumulated Amortization		13,447
Net Carrying Amount		$ 33,516
Partner relationships
Intangible Assets
Weighted Average Useful Life		6 years
Gross Carrying Amount		$ 700
Accumulated Amortization		630
Net Carrying Amount		$ 70
Trademark
Intangible Assets
Weighted Average Useful Life	3 years	2 years 8 months 12 days
Gross Carrying Amount		$ 458
Accumulated Amortization		83
Net Carrying Amount		$ 375
Backlog
Intangible Assets
Weighted Average Useful Life		1 year
Gross Carrying Amount		$ 1,182
Accumulated Amortization		$ 1,182
Technology
Intangible Assets
Weighted Average Useful Life	5 years	5 years
Gross Carrying Amount		$ 500
Accumulated Amortization		16
Net Carrying Amount		$ 484

Income Taxes (Details)

Income Taxes (Details) $ in Thousands	3 Months Ended		12 Months Ended	24 Months Ended
	Jun. 30, 2015USD ($)aitem	Jun. 30, 2014USD ($)	Mar. 31, 2011subsidiary	Mar. 31, 2011subsidiary	Mar. 31, 2015USD ($)
Income Taxes
Effective tax rate (as a percent)	26.70%	26.40%
Total liability for unrecognized tax benefits which would impact the annual effective rate, if realized	$ 556				$ 546
Change in unrecognized tax benefits	10	$ (33)
Unremitted earnings from foreign subsidiaries	202,390
Cash and short-term investments available for distribution if not indefinitely reinvested	$ 96,044
Bangalore
Income Taxes
Number of export oriented units created | subsidiary			1
India
Income Taxes
Number of export oriented units created | subsidiary				2
India | Indian operations in areas designated as a SEZ
Income Taxes
Number of development centers operated | item	2
India | Indian operations in areas designated as a SEZ | Hyderabad
Income Taxes
Parcel of land (in acres) | a	6.3
Consecutive period of income tax exemption	10 years
Income tax benefits total eligibility period	15 years
India | Virtusa India
Income Taxes
Current corporate income tax rate	34.60%
Sri Lanka | Virtusa (Private) Limited
Income Taxes
Income tax exemption period	12 years
Maximum | India | Indian operations in areas designated as a SEZ | Pune
Income Taxes
Income tax exemption period	15 years
Maximum | India | Indian operations in areas designated as a SEZ | Hyderabad and Chennai
Income Taxes
Income tax exemption period	15 years
Maximum | Indian Operations Software Technology Parks | India | Bangalore
Income Taxes
Income tax exemption period	15 years

Concentration of Revenue and 42

Concentration of Revenue and Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2015
Concentration of Revenue and Assets
Consolidated revenue	$ 134,844	$ 112,274
Consolidated long-lived assets, net	144,238		$ 110,257
North America
Concentration of Revenue and Assets
Consolidated revenue	96,702	73,464
Consolidated long-lived assets, net	91,582		59,316
Asia
Concentration of Revenue and Assets
Consolidated long-lived assets, net	33,336		32,896
Europe
Concentration of Revenue and Assets
Consolidated revenue	30,346	31,897
Consolidated long-lived assets, net	19,320		$ 18,045
Rest of world
Concentration of Revenue and Assets
Consolidated revenue	$ 7,796	$ 6,913

Concentration of Revenue and 43

Concentration of Revenue and Assets (Details 2) - Sales revenue	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Customer 1
Concentration of Revenue and Assets
Revenue from significant clients as a percentage of consolidated revenue	13.40%	8.90%
Customer 2
Concentration of Revenue and Assets
Revenue from significant clients as a percentage of consolidated revenue	9.80%	13.10%

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Dec. 31, 2013	Jun. 30, 2015
Debt
Receivables sold under the terms of the financing agreement		$ 3,867
Amount outstanding under letters of credit		0
Prior secured revolving credit agreement
Debt
Maximum borrowing capacity under the credit agreement	$ 3,000
Prior secured revolving credit agreement | Maximum
Debt
Debt to Adjusted EBITDA Ratio	2
Fixed Charge Coverage Ratio	2.50
Line of credit agreement
Debt
Maximum borrowing capacity under the credit agreement	$ 25,000
Term of credit facility	5 years
Amount outstanding under the credit facility		$ 0
Line of credit agreement | LIBOR
Debt
Variable rate basis	LIBOR
Line of credit agreement | LIBOR | Minimum
Debt
Interest rate added to the base rate (as a percent)	1.50%
Line of credit agreement | LIBOR | Maximum
Debt
Interest rate added to the base rate (as a percent)	1.75%
Prior amended and restated line of credit agreement
Debt
Maximum borrowing capacity under the credit agreement	$ 3,000

Pensions and Post-retirement 45

Pensions and Post-retirement Benefits (Details) - Pension benefits - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Pensions and post-retirement benefits
Service cost	$ 186	$ 136
Interest cost	69	59
Expected return on plan assets	(82)	(54)
Amortization past service cost	39	24
Amortization of actuarial loss	2	3
Net periodic pension cost	214	$ 168
Expected cash contributions to the plans in current fiscal period	1,000
Cash contributions to the plan for the current fiscal year	$ 729

Accumulated Other Comprehensi46

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Changes in accumulated other comprehensive income (loss)
Balance	$ 423,775
Reclassifications from OCI to:
Cost of Revenue	87,362	$ 72,588
Balance	431,019
Accumulated Other Comprehensive Loss
Reclassifications from OCI to:
Balance	(39,098)	(27,217)
Investment securities.
Changes in accumulated other comprehensive income (loss)
Balance	(18)	(54)
OCI before reclassifications net of tax	(14)	50
Reclassifications from OCI to:
Comprehensive income (loss), net of tax	(15)	50
Balance	(33)	(4)
Other Comprehensive Income (Loss), Tax
Other Comprehensive Income (Loss) before Reclassifications, Tax	0	0
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax	0	0
Investment securities. | Reclassification out of accumulated other comprehensive income
Reclassifications from OCI to:
Other Income	(1)
Other Comprehensive Income (Loss), Tax
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax	0	0
Currency Translation Adjustments
Changes in accumulated other comprehensive income (loss)
Balance	(35,565)	(23,253)
OCI before reclassifications net of tax	(1,614)	(201)
Reclassifications from OCI to:
Balance	(37,179)	(23,454)
Cash Flow Hedges
Changes in accumulated other comprehensive income (loss)
Balance	2,387	(3,829)
OCI before reclassifications net of tax	(3,048)	86
Reclassifications from OCI to:
Comprehensive income (loss), net of tax	(3,397)	661
Balance	(1,010)	(3,168)
Other Comprehensive Income (Loss), Tax
Other Comprehensive Income (Loss) before Reclassifications, Tax	(828)	357
Comprehensive income (loss), Tax	(910)	419
Cash Flow Hedges | Reclassification out of accumulated other comprehensive income
Reclassifications from OCI to:
Cost of Revenue	(227)	356
Selling, General and Administrative Expense	(122)	219
Cash Flow Hedges | Reclassification out of accumulated other comprehensive income | Costs of revenue
Other Comprehensive Income (Loss), Tax
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax	(53)	38
Cash Flow Hedges | Reclassification out of accumulated other comprehensive income | Selling, general and administrative expenses
Other Comprehensive Income (Loss), Tax
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax	(29)	24
Benefit plans
Changes in accumulated other comprehensive income (loss)
Balance	(932)	(578)
Reclassifications from OCI to:
Other adjustments	15	(40)
Comprehensive income (loss), net of tax	56	(13)
Balance	(876)	(591)
Other Comprehensive Income (Loss), Tax
Other Comprehensive Income (Loss) before Reclassifications, Tax	0	0
Comprehensive income (loss), Tax	0	0
Benefit plans, prior service credit (cost) | Reclassification out of accumulated other comprehensive income
Reclassifications from OCI to:
Cost of Revenue	2	2
Benefit plans, prior service credit (cost) | Reclassification out of accumulated other comprehensive income | Costs of revenue
Other Comprehensive Income (Loss), Tax
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), Tax	0	0
Benefit plans, prior service credit (cost) | Reclassification out of accumulated other comprehensive income | Selling, general and administrative expenses
Other Comprehensive Income (Loss), Tax
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), Tax	0	0
Benefit plans, net actuarial gain (loss) | Reclassification out of accumulated other comprehensive income
Reclassifications from OCI to:
Cost of Revenue	24	15
Selling, General and Administrative Expense	15	10
Benefit plans, net actuarial gain (loss) | Reclassification out of accumulated other comprehensive income | Costs of revenue
Other Comprehensive Income (Loss), Tax
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), Tax	0	0
Benefit plans, net actuarial gain (loss) | Reclassification out of accumulated other comprehensive income | Selling, general and administrative expenses
Other Comprehensive Income (Loss), Tax
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), Tax	$ 0	$ 0

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent event € in Thousands, ₨ in Thousands, SEK in Thousands, $ in Thousands	Jul. 28, 2015USD ($)itemshares	Jul. 27, 2015INR (₨)₨ / £₨ / $$ / £	Jul. 27, 2015GBP (£)₨ / £₨ / $$ / £	Jul. 27, 2015USD ($)₨ / £₨ / $$ / £	Jul. 21, 2015SEK$ / SEK$ / €	Jul. 21, 2015EUR (€)$ / SEK$ / €	Jul. 21, 2015USD ($)$ / SEK$ / €	Jul. 16, 2015GBP (£)$ / £	Jul. 16, 2015USD ($)$ / £
Agora Group Inc
Subsequent Events
Number of experienced practitioners | item	60
Purchase price in cash	$ 7,500
Escrow Deposit	$ 854
Hold back period	12 months
Term of non solicitation agreement	3 years
Agora Group Inc | Deferred restricted stock awards
Subsequent Events
Authorized value of awards	$ 2,890
Vesting period	4 years
Agora Group Inc | Deferred restricted stock awards | Maximum
Subsequent Events
Number of authorized shares | shares	77,067
Derivatives designated as hedging instruments | Foreign currency forward contracts | U.S. Dollar and U.K. Pound Sterling Forward Contract
Subsequent Events
Aggregate notional amount of foreign currency forward contracts		₨ 657,177	£ 6,058,000					£ 4,327,000	$ 6,717
Weighted average settlement rate		108.57	108.57	108.57				1.55	1.55
Spot rate | $ / £		1.55	1.55	1.55
Derivatives designated as hedging instruments | Foreign currency forward contracts | U.S. dollar and Swedish Krona ("SEK") Forward Contract
Subsequent Events
Aggregate notional amount of foreign currency forward contracts					SEK 2,758		$ 324
Weighted average settlement rate | $ / SEK					0.117	0.117	0.117
Derivatives designated as hedging instruments | Foreign currency forward contracts | U.S. Dollar and Euro Forward Contract
Subsequent Events
Aggregate notional amount of foreign currency forward contracts						€ 92	$ 101
Weighted average settlement rate | $ / €					1.092	1.092	1.092
Derivatives designated as hedging instruments | Foreign currency forward contracts | U S Dollar And Indian Rupee Forward Contract
Subsequent Events
Aggregate notional amount of foreign currency forward contracts		₨ 963,543		$ 13,819
Weighted average settlement rate | ₨ / $		69.96	69.96	69.96
Foreign currency forward contracts expiration period		36 months
Blended weighted average rate | ₨ / $		69.83	69.83	69.83