Virtusa (VRTU) 10-Q8 Nov 192020 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Sep. 30, 2019	Nov. 05, 2019
Document and Entity Information
Entity Registrant Name	VIRTUSA CORP
Document Quarterly Report	true
Document Transition Report	false
Entity Central Index Key	0001207074
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Trading Symbol	VRTU
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	04-3512883
Current Fiscal Year End Date	--03-31
Entity Address, Address Line One	132 Turnpike Rd
Entity Address, City or Town	Southborough
Entity Address, Postal Zip Code	01772
Entity Address, State or Province	MA
City Area Code	508
Local Phone Number	389-7300
Entity File Number	001-33625
Title of 12(b) Security	Common Stock
Entity Current Reporting Status	Yes
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		29,843,672
Entity Shell Company	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Mar. 31, 2019
Current assets:
Cash and cash equivalents	$ 183,372	$ 189,676
Short-term investments	14,908	33,138
Accounts receivable, net of allowance of $1,281 and $2,253 at September 30, 2019 and March 31, 2019, respectively	155,510	162,396
Unbilled accounts receivable	113,683	113,431
Prepaid expenses	52,736	42,314
Restricted cash	233	351
Asset held for sale	8,844	8,978
Other current assets	32,862	29,967
Total current assets	562,148	580,251
Property and equipment, net	111,412	119,865
Operating lease right-of-use assets	50,933
Investments accounted for using equity method	1,474	1,446
Long-term investments	198	322
Deferred income taxes	29,735	28,770
Goodwill	277,061	279,543
Intangible assets, net	101,330	92,440
Other long-term assets	39,895	29,836
Total assets	1,174,186	1,132,473
Current liabilities:
Accounts payable	35,032	46,471
Accrued employee compensation and benefits	72,506	74,801
Deferred revenue	6,887	6,421
Accrued expenses and other	66,910	70,050
Current portion of long-term debt	14,532	11,407
Operating lease liabilities	10,882
Income taxes payable	5,184	4,844
Total current liabilities	211,933	213,994
Deferred income taxes	15,271	15,824
Operating lease liabilities, noncurrent	44,535
Long-term debt, less current portion	369,992	351,320
Long-term liabilities	27,815	29,824
Total liabilities	669,546	610,962
Commitments and contingencies
Series A Convertible Preferred Stock: par value $0.01 per share, 108,000 shares authorized, 108,000 shares issued and outstanding at September 30, 2019 and March 31, 2019; redemption amount and liquidation preference of $108,000 at September 30, 2019 and March 31, 2019	107,243	107,161
Redeemable noncontrolling interest		23,576
Stockholders' equity:
Undesignated preferred stock, $0.01 par value; Authorized 5,000,000 shares at September 30, 2019 and March 31, 2019; zero shares issued and outstanding at September 30, 2019 and March 31, 2019, respectively
Common stock, $0.01 par value; Authorized 120,000,000 shares at September 30, 2019 and March 31, 2019; issued 33,224,132 and 33,012,775 shares at September 30, 2019 and March 31, 2019, respectively; outstanding 29,838,568 and 30,132,776 shares at September 30, 2019 and March 31, 2019, respectively	332	330
Treasury stock, 3,385,564 and 2,879,999 common shares, at cost, at September 30, 2019 and March 31, 2019, respectively	(58,332)	(39,652)
Additional paid-in capital	248,284	239,204
Retained earnings	261,040	250,279
Accumulated other comprehensive loss	(69,055)	(59,387)
Total Virtusa stockholders' equity	382,269	390,774
Noncontrolling interest in subsidiaries	15,128
Total Stockholders' equity	397,397	390,774
Total liabilities, Series A convertible preferred stock, redeemable noncontrolling interest and stockholders' equity	$ 1,174,186	$ 1,132,473

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Mar. 31, 2019
Consolidated Balance Sheets
Accounts receivable, allowance (in dollars)	$ 1,281	$ 2,253
Series A convertible preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Series A convertible preferred stock, shares authorized	108,000	108,000
Series A convertible preferred stock, shares issued	108,000	108,000
Series A convertible preferred stock, shares outstanding	108,000	108,000
Series A convertible preferred stock, redemption amount	$ 108,000	$ 108,000
Series A convertible preferred stock, liquidation preference	$ 108,000	$ 108,000
Undesignated preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Undesignated preferred stock, shares authorized	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, shares authorized	120,000,000	120,000,000
Common stock, shares issued	33,224,132	33,012,775
Common stock, shares outstanding	29,838,568	30,132,776
Treasury stock, common shares	3,385,564	2,879,999

Consolidated Statements of Inco

Consolidated Statements of Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements of Income (Loss)
Revenue	$ 328,501	$ 305,520	$ 647,525	$ 605,551
Costs of revenue	238,584	216,346	473,319	432,827
Gross profit	89,917	89,174	174,206	172,724
Operating expenses:
Selling, general and administrative expenses	70,682	75,155	141,543	144,781
Income from operations	19,235	14,019	32,663	27,943
Other income (expense):
Interest income	551	589	1,224	1,353
Interest expense	(4,835)	(4,514)	(9,743)	(8,768)
Foreign currency transaction losses, net	(3,437)	(9,355)	(2,235)	(20,113)
Other, net	564	819	928	1,443
Total other expense	(7,157)	(12,461)	(9,826)	(26,085)
Income before income tax expense (benefit)	12,078	1,558	22,837	1,858
Income tax expense (benefit)	4,830	(402)	9,569	5,463
Net income (loss)	7,248	1,960	13,268	(3,605)
Less: net income attributable to noncontrolling interests, net of tax	146	455	332	1,186
Net income (loss) available to Virtusa stockholders	7,102	1,505	12,936	(4,791)
Less: Series A Convertible Preferred Stock dividends and accretion	1,088	1,088	2,175	2,175
Net income (loss) available to Virtusa common stockholders	$ 6,014	$ 417	$ 10,761	$ (6,966)
Basic earnings (loss) per share available to Virtusa common stockholders (in dollars per share)	$ 0.20	$ 0.01	$ 0.36	$ (0.23)
Diluted earnings (loss) per share available to Virtusa common stockholders (in dollars per share)	$ 0.20	$ 0.01	$ 0.35	$ (0.23)

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements of Comprehensive Income (Loss)
Net income (loss)	$ 7,248	$ 1,960	$ 13,268	$ (3,605)
Other comprehensive income (loss):
Foreign currency translation adjustment	(6,355)	(7,071)	(6,736)	(17,724)
Pension plan adjustment	(848)	113	(686)	(96)
Unrealized loss on available-for-sale debt securities, net of tax effect	(3)	(452)		(315)
Unrealized loss on effective cash flow hedges, net of tax effect	(1,379)	(3,337)	(2,213)	(7,138)
Other comprehensive loss	(8,585)	(10,747)	(9,635)	(25,273)
Comprehensive income (loss)	(1,337)	(8,787)	3,633	(28,878)
Less: comprehensive income (loss) attributable to noncontrolling interest, net of tax	35	200	365	(535)
Comprehensive income (loss) available to Virtusa stockholders	$ (1,372)	$ (8,987)	$ 3,268	$ (28,343)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total Virtusa Stockholders' Equity	Common Stock	Treasury Stock	Additional Paid In Capital	Retained Earnings	Accumulated Other Comprehensive Income	Non-controlling interest	Redeemable Noncontrolling Interest	Total
Balance at Mar. 31, 2018	$ 418,623	$ 325	$ (39,652)	$ 260,612	$ 238,019	$ (40,681)	$ 17,460		$ 436,083
Balance (in shares) at Mar. 31, 2018		32,469,092	(2,879,999)
Increase (Decrease) in Stockholders' Equity
Proceeds from the exercise of stock options	294			294					294
Proceeds from the exercise of stock options (in shares)		33,173
Proceeds from the exercise of subsidiary stock options	196			196					196
Restricted stock awards vested		$ 1		(1)
Restricted stock awards vested (in shares)		95,432
Restricted stock awards withheld for tax	(2,450)			(2,450)					(2,450)
Share-based compensation	7,908			7,908					7,908
Subsidiary share-based compensation	30			30					30
Cumulative effect of adopting ASC Topic 606, net of tax	464				464				464
Series A Convertible Preferred Stock dividends and accretion	(1,087)				(1,087)				(1,087)
Other comprehensive income (loss)	(13,060)
Other comprehensive income (loss)						(13,060)	(1,466)		(14,526)
Net income (loss)	(6,296)				(6,296)
Net income							731
Net income (loss)									(5,565)
Balance at Jun. 30, 2018	404,622	$ 326	$ (39,652)	266,589	231,100	(53,741)	16,725		421,347
Balance (in shares) at Jun. 30, 2018		32,597,697	(2,879,999)
Balance at Mar. 31, 2018	418,623	$ 325	$ (39,652)	260,612	238,019	(40,681)	17,460		436,083
Balance (in shares) at Mar. 31, 2018		32,469,092	(2,879,999)
Increase (Decrease) in Stockholders' Equity
Purchase of redeemable noncontrolling interest related to Polaris									28,396
Net income (loss)									(4,791)
Net income									(1,186)
Balance at Sep. 30, 2018	359,156	$ 328	$ (39,652)	231,196	231,517	(64,233)	275	$ 24,614	359,431
Balance (in shares) at Sep. 30, 2018		32,769,705	(2,879,999)
Balance at Jun. 30, 2018	404,622	$ 326	$ (39,652)	266,589	231,100	(53,741)	16,725		421,347
Balance (in shares) at Jun. 30, 2018		32,597,697	(2,879,999)
Increase (Decrease) in Stockholders' Equity
Proceeds from the exercise of stock options	134			134					134
Proceeds from the exercise of stock options (in shares)		9,918
Proceeds from the exercise of subsidiary stock options	64			64					64
Restricted stock awards vested		$ 2		(2)				3
Restricted stock awards vested (in shares)		162,090
Restricted stock awards withheld for tax	(5,152)			(5,152)					(5,152)
Share-based compensation	8,022			8,022					8,022
Reclassification of previously recognized stock compensation related to liabilities classified awards for Polaris to liabilities	(617)			(617)					(617)
Adjustments of redeemable noncontrolling interest to redemption value	(37,842)			(37,842)			(16,450)	54,850	(54,292)
Purchase of redeemable noncontrolling interest related to Polaris								(28,395)
Foreign currency translation on redeemable noncontrolling interest								(2,045)
Series A Convertible Preferred Stock dividends and accretion	(1,088)				(1,088)				(1,088)
Other comprehensive income (loss)	(10,492)					(10,492)			(10,492)
Other comprehensive income (loss)								(255)
Net income (loss)	1,505				1,505				1,505
Net income								456	(455)
Balance at Sep. 30, 2018	359,156	$ 328	$ (39,652)	231,196	231,517	(64,233)	275	24,614	359,431
Balance (in shares) at Sep. 30, 2018		32,769,705	(2,879,999)
Balance at Mar. 31, 2019	390,774	$ 330	$ (39,652)	239,204	250,279	(59,387)		23,576	$ 390,774
Balance (in shares) at Mar. 31, 2019		33,012,775	(2,879,999)						30,132,776
Increase (Decrease) in Stockholders' Equity
Proceeds from the exercise of stock options	194			194				8	$ 194
Proceeds from the exercise of stock options (in shares)		13,416
Restricted stock awards vested		$ 1		(1)
Restricted stock awards vested (in shares)		96,763
Restricted stock awards withheld for tax	(2,011)			(2,011)					(2,011)
Share-based compensation	6,674			6,674					6,674
Adjustments of redeemable noncontrolling interest to redemption value	18			18				170	18
Purchase of redeemable noncontrolling interest related to Polaris								(5,549)
Foreign currency translation on redeemable noncontrolling interest								116
Series A Convertible Preferred Stock dividends and accretion	(1,087)				(1,087)				(1,087)
Other comprehensive income (loss)	(1,194)					(1,194)
Other comprehensive income (loss)								144	(1,194)
Net income (loss)	5,834				5,834				5,834
Net income								186
Balance at Jun. 30, 2019	399,202	$ 331	$ (39,652)	244,078	255,026	(60,581)		18,651	399,202
Balance (in shares) at Jun. 30, 2019		33,122,954	(2,879,999)
Balance at Mar. 31, 2019	390,774	$ 330	$ (39,652)	239,204	250,279	(59,387)		23,576	$ 390,774
Balance (in shares) at Mar. 31, 2019		33,012,775	(2,879,999)						30,132,776
Increase (Decrease) in Stockholders' Equity
Repurchase of common stock (in shares)									(505,565)
Purchase of redeemable noncontrolling interest related to Polaris									$ 8,675
Net income (loss)									12,936
Net income									(332)
Balance at Sep. 30, 2019	382,269	$ 332	$ (58,332)	248,284	261,040	(69,055)	15,128		$ 397,397
Balance (in shares) at Sep. 30, 2019		33,224,132	(3,385,564)						29,838,568
Balance at Jun. 30, 2019	399,202	$ 331	$ (39,652)	244,078	255,026	(60,581)		18,651	$ 399,202
Balance (in shares) at Jun. 30, 2019		33,122,954	(2,879,999)
Increase (Decrease) in Stockholders' Equity
Restricted stock awards vested		$ 1		(1)
Restricted stock awards vested (in shares)		101,178
Restricted stock awards withheld for tax	(1,647)			(1,647)					(1,647)
Share-based compensation	5,829			5,829					5,829
Repurchase of common stock	(18,680)		$ (18,680)						(18,680)
Repurchase of common stock (in shares)			(505,565)
Adjustments of redeemable noncontrolling interest to redemption value	25			25				101	25
Purchase of redeemable noncontrolling interest related to Polaris								(3,126)
Foreign currency translation on redeemable noncontrolling interest								(533)
Reclassification of noncontrolling interest from temporary equity to permanent equity							15,093	$ (15,093)	15,093
Series A Convertible Preferred Stock dividends and accretion	(1,088)				(1,088)				(1,088)
Other comprehensive income (loss)	(8,474)					(8,474)
Other comprehensive income (loss)							(111)		(8,585)
Net income (loss)	7,102				7,102		146		7,102
Net income									(146)
Net income (loss)									7,248
Balance at Sep. 30, 2019	$ 382,269	$ 332	$ (58,332)	$ 248,284	$ 261,040	$ (69,055)	$ 15,128		$ 397,397
Balance (in shares) at Sep. 30, 2019		33,224,132	(3,385,564)						29,838,568

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income (loss)	$ 13,268	$ (3,605)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation and amortization	15,711	14,593
Share-based compensation expense	12,510	17,062
Provision (recovery) for doubtful accounts	(313)	(236)
Gain on disposal of property and equipment	(351)	(159)
Foreign currency transaction losses, net	2,235	20,113
Amortization of discounts and premiums on investments	(6)	76
Amortization of debt issuance cost	546	546
Deferred income taxes, net	62	(6,522)
Net changes in operating assets and liabilities
Accounts receivable and unbilled receivable	4,221	(1,975)
Prepaid expenses and other current assets	(7,735)	(11,238)
Other long-term assets	(12,673)	(4,009)
Accounts payable	(8,298)	232
Accrued employee compensation and benefits	(4,744)	(5,834)
Accrued expenses and other current liabilities	11,382	11,179
Operating lease liabilities	141
Income taxes payable	(2,748)	3,133
Other long-term liabilities	596	(73)
Net cash provided by operating activities	23,804	33,283
Cash flows from investing activities:
Proceeds from sale of property and equipment	651	451
Purchase of short-term investments	(20,279)	(68,803)
Proceeds from sale or maturity of short-term investments	38,240	60,571
Payments for asset acquisitions	(7,251)
Payment of deferred consideration related to business acquisition	(17,500)
Business acquisition, net of cash acquired		(34)
Purchase of property and equipment	(8,479)	(18,875)
Net cash used in investing activities	(14,618)	(26,690)
Cash flows from financing activities:
Proceeds from debt	27,500
Proceeds from revolving credit facility		32,000
Payment of debt	(6,250)	(6,250)
Repurchase of common stock	(18,680)
Payments of withholding taxes related to net share settlements of restricted stock	(3,658)	(7,602)
Purchase of redeemable noncontrolling interest related to Polaris	(8,675)	(28,396)
Principal payments on capital lease obligation	(32)	(43)
Payment of contingent consideration related to acquisitions		(100)
Payment of dividend on Series A Convertible Preferred Stock	(2,092)	(2,092)
Net cash used in financing activities	(11,600)	(11,729)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(4,012)	(11,694)
Net decrease in cash and cash equivalents and restricted cash	(6,426)	(16,830)
Cash, cash equivalents and restricted cash, beginning of year	190,113	195,236
Cash, cash equivalents and restricted cash, end of period	183,687	178,406
Parent
Cash flows from financing activities:
Proceeds from exercise of common stock options	194	428
Subsidiaries
Cash flows from financing activities:
Proceeds from exercise of common stock options	$ 93	$ 326

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Mar. 31, 2019
Balance sheet classification
Cash and cash equivalents	$ 183,372	$ 189,676
Restricted cash in current assets	233	351
Restricted cash in other long-term assets	82	86
Total restricted cash	315	437
Total cash, cash equivalents and restricted cash	$ 183,687	$ 190,113

Nature of the Business

Nature of the Business	6 Months Ended
Nature of the Business	Sep. 30, 2019
Nature of the Business
Nature of the Business	(1) Nature of the Business Virtusa Corporation (the “Company”, “Virtusa”, “we”, “us” or “our”) is a global provider of digital engineering and information technology (“IT”) outsourcing services that accelerate business outcomes for our clients. We support Forbes Global 2000 clients across large, consumer facing industries like banking, financial services, insurance, healthcare, communications, and media and entertainment, as these clients seek to improve their business performance through accelerating revenue growth, delivering compelling consumer experiences, improving operational efficiencies, and lowering overall IT costs. We provide services across the entire spectrum of the IT services lifecycle, from strategy and consulting to technology and user experience (“UX”) design, development of IT applications, systems integration, testing and business assurance, and maintenance and support services, including infrastructure and managed services. We help our clients solve critical business problems by leveraging a combination of our distinctive consulting approach, unique platforming methodology, and deep domain and technology expertise. Our services enable our clients to accelerate business outcomes by consolidating, rationalizing and modernizing their core customer-facing processes into one or more core systems. We deliver cost-effective solutions through a global delivery model, applying advanced delivery methods such as Agile, an industry standard technique designed to accelerate application development. We also use our consulting methodology, which we refer to as Accelerated Solution Design (“ASD”), which is a collaborative decision-making and design process performed with the client to ensure our solutions meet the client’s specifications and requirements. Our industry leading business transformational solutions combine deep domain expertise with our strengths in software engineering and business consulting to support our clients’ business-imperative initiatives across business growth and IT operations. Headquartered in Massachusetts, we have offices in the United States, Canada, the United Kingdom, the Netherlands, Germany, Switzerland, Sweden, Austria, the United Arab Emirates, Hong Kong, Japan, Qatar, Mexico,

Unaudited Interim Financial Inf

Unaudited Interim Financial Information	6 Months Ended
Unaudited Interim Financial Information	Sep. 30, 2019
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, 2019 included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission, or SEC, on May 24, 2019. 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 accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of Virtusa Corporation and all of its subsidiaries that are directly or indirectly more than 50% owned or controlled. When the Company does not have a controlling interest in an entity, but exerts a significant influence on the entity, the Company applies the equity method of accounting. For those majority-owned subsidiaries that are not 100% owned by the Company, the interests of the minority owners are accounted for as noncontrolling interests. 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 re-evaluates 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, income taxes, including reserves for uncertain tax positions, deferred taxes and liabilities, intangible assets, 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 September 30, 2019 and March 31, 2019, 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, other accrued expenses and long-term debt, 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 Recently Adopted Accounting Pronouncements Unless otherwise discussed below, the adoption of new accounting standards did not have an impact on the consolidated financial statements. In February 2016, the FASB issued an update (ASU 2016-02) to the standard on leases to increase transparency and comparability among organizations. The FASB subsequently issued ASU 2018-10 and ASU 2018-11 in July 2018, ASU 2018-20 in December 2018 and ASU 2019-01 in March 2019, which provide clarifications and improvements to this new standard. ASU 2018-11 also provides the optional transition method which allows companies to apply the new lease standard at the adoption date instead of at the earliest comparative period presented. The new standard replaces the existing guidance on leases and requires the lessee to recognize a right-of-use (“ROU”) asset and a lease liability for all leases with lease terms equal to or greater than twelve months. For finance leases, the lessee would recognize interest expense and amortization of the ROU asset, and for operating leases, the lessee would recognize total lease expense on a straight-line basis. For public business entities this standard is effective for the annual periods beginning after December 15, 2018, and interim periods within those annual periods. The standard permits the use of either retrospective to each prior reporting period presented with the cumulative effect of adoption recognized at the beginning of the earliest period presented or retrospective to the beginning of the period of adoption through a cumulative-effect adjustment (the “Modified Retrospective Effective Date Method”). The Company adopted this standard, (“ASC Topic 842”) effective April 1, 2019, using a Modified Retrospective Effective Date Method. The Company has elected the package of practical expedients which permits the Company to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. The Company did not elect the use of hindsight practical expedient to reevaluate the lease term of existing contracts. Prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting policies. The impact of adoption primarily relates to the recognition of ROU operating lease assets and operating lease liabilities on the Company’s unaudited consolidated balance sheets for all operating leases with a term greater than twelve months. The adoption of this standard on April 1, 2019 resulted in the recognition of ROU assets for operating leases of $54,762 and operating lease liabilities of $59,157. The Company’s accounting for finance leases (formerly capital leases) remains substantially unchanged. The adoption of this standard did not have an impact on the consolidated statement of income (loss) and comprehensive income (loss), consolidated statement of changes in stockholders’ equity or the consolidated statement of cash flows. See Note 7 “Leases” for additional information regarding leases. In August 2018, the FASB issued ASU No. 2018-15, Intangibles (Topic 350): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This standard also requires customers to amortize the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The standard also requires the entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. The entity is also required to present the capitalized implementation costs in the statement of financial position in the same line item that a prepayment for the fees of the associated hosting arrangement. For public companies, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company early adopted this standard, as of July 1, 2019, on a prospective basis for applicable implementation costs. The adoption of this standard did not have a material impact on the consolidated balance sheet, consolidated statements of income (loss), consolidated statement of changes in stockholders’ equity or the consolidated statement of cash flows. New Accounting Pronouncements Unless otherwise discussed below, the Company believes the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Measurement of Credit Losses on Financial Instruments, which modifies the measurement of expected credit losses of certain financial instruments. The FASB subsequently issued ASU 2019-04 in April 2019 and ASU 2019-05 in May 2019, which provide clarifications and improvements to this new standard. This standard update requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect of this new standard will have on its consolidated financial statements and related disclosures.

Earnings (Loss) per Share

Earnings (Loss) per Share	6 Months Ended
Earnings (Loss) per Share	Sep. 30, 2019
Earnings (Loss) per Share
Earnings (Loss) per Share	(3) Earnings (Loss) per Share Basic earnings (loss) per share available to Virtusa common stockholders (“EPS”) is computed by dividing net income (loss), less any dividends and accretion of issuance cost on the Series A Convertible Preferred Stock by the weighted average number of shares of common stock outstanding for the period. In computing diluted EPS, the Company adjusts the numerator used in the basic EPS computation, subject to anti-dilution requirements, to add back the dividends (declared or cumulative undeclared) applicable to the Series A Convertible Preferred Stock. Such add-back would also include any adjustments to equity in the period to accrete the Series A Convertible Preferred Stock to its redemption price. The Company adjusts the denominator used in the basic EPS computation, subject to anti-dilution requirements, to include the dilution from potential shares resulting from the issuance of restricted stock units, unvested restricted stock and stock options along with the conversion of the Series A Convertible Preferred Stock to common stock. The following table sets forth the computation of basic and diluted EPS for the periods set forth below: The components of basic earnings (loss) per share are as follows: Three Months Ended Six Months Ended September 30, September 30, 2019 2018 2019 2018 Numerators: Net income (loss) available to Virtusa stockholders $ 7,102 $ 1,505 $ 12,936 $ (4,791) Less: Series A Convertible Preferred Stock dividends and accretion 1,088 1,088 2,175 2,175 Net income (loss) available to Virtusa common stockholders $ 6,014 $ 417 $ 10,761 $ (6,966) Denominators: Basic weighted average common shares outstanding 30,107,942 29,767,276 30,137,926 29,700,151 Basic earnings (loss) per share available to Virtusa common stockholders $ 0.20 $ 0.01 $ 0.36 $ (0.23) The components of diluted earnings (loss) per share are as follows: Three Months Ended Six Months Ended September 30, September 30, 2019 2018 2019 2018 Numerators: Net income (loss) available to Virtusa common stockholders $ 6,014 $ 417 $ 10,761 $ (6,966) Add : Series A Convertible Preferred Stock dividends and accretion — — — — Net income (loss) available to Virtusa common stockholders and assumed conversion $ 6,014 $ 417 $ 10,761 $ (6,966) Denominators: Basic weighted average common shares outstanding 30,107,942 29,767,276 30,137,926 29,700,151 Dilutive effect of Series A Convertible Preferred Stock if converted — — — — Dilutive effect of employee stock options and unvested restricted stock awards and restricted stock units 600,220 859,768 683,361 — Weighted average shares—diluted 30,708,162 30,627,044 30,821,287 29,700,151 Diluted earnings (loss) per share available to Virtusa common stockholders $ 0.20 $ 0.01 $ 0.35 $ (0.23) During the three months ended September 30, 2019 and 2018, unvested restricted stock awards and unvested restricted stock units issuable for, and options to purchase 277,265 and 20,617 shares of common stock, respectively, were excluded from the calculations of diluted earnings (loss) per share as their effect would have been anti-dilutive. For the three months ended September 30, 2019 and 2018, all of the 3,000,000 shares of Series A Convertible Preferred Stock were excluded from the diluted earnings (loss) per share as their effect would have been anti-dilutive using the if-converted method. During the six months ended September 30, 2019 and 2018, unvested restricted stock awards and unvested restricted stock units issuable for, and options to purchase 138,633 and 1,710,551 shares of common stock, respectively, were excluded from the calculations of diluted earnings (loss) per share as their effect would have been anti-dilutive. For the six months ended September 30, 2019 and 2018, all of the 3,000,000 shares of Series A Convertible Preferred Stock were excluded from the diluted earnings (loss) per share as their effect would have been anti-dilutive using the if-converted method.

Investment Securities

Investment Securities	6 Months Ended
Investment Securities	Sep. 30, 2019
Investment Securities.
Investment Securities	(4) Investment Securities At September 30, 2019 and March 31, 2019, all of the Company’s investment securities were classified as available-for-sale debt securities and equity securities. These 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 for a discussion of the fair value of the Company’s other financial instruments). The following is a summary of investment securities at September 30, 2019: Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-sale debt securities: Corporate bonds: Current $ — $ — $ — $ — Preference shares: Non-current 185 — — 185 Agency and short-term notes: Current — — — — Time Deposits: Current 7,079 — — 7,079 Equity securities: Mutual funds: Current 7,737 92 — 7,829 Equity Shares/ Options: Non-current 1 12 — 13 Total available-for-sale debt securities and equity securities $ 15,002 $ 104 $ — $ 15,106 The following is a summary of investment securities at March 31, 2019: Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-sale debt securities: Corporate bonds: Current $ 2,779 $ 1 $ (2) $ 2,778 Non-current — — — — Preference shares: 188 — — 188 Agency and short-term notes: Current 1,492 1 — 1,493 Time deposits: Current 15,861 — — 15,861 Equity Shares: Mutual funds: Current 12,912 94 — 13,006 Equity Shares/ Options: Non-current 8 126 — 134 Total available-for-sale debt and equity securities $ 33,240 $ 222 $ (2) $ 33,460 The Company evaluates investments with unrealized losses to determine if the losses are other than 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 that the Company will not be required to sell such investments prior to the recovery of their carrying value. Proceeds from sales of available-for-sale debt and equity 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 Six Months Ended September 30, September 30, 2019 2018 2019 2018 Proceeds from sales or maturities of available-for-sale $ 18,423 $ 31,279 $ 38,240 $ 60,571 Gross gains $ 212 $ 261 $ 440 $ 386 Gross losses — (14) — (32) Net realized gains on sales of available-for-sale investment $ 212 $ 247 $ 440 $ 354

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
Fair Value of Financial Instruments	Sep. 30, 2019
Fair Value of Financial Instruments
Fair Value of Financial Instruments	(5) Fair Value of Financial Instruments The Company carries certain assets and liabilities at fair value on a recurring basis on its consolidated balance sheets. The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2019: Level 1 Level 2 Level 3 Total Assets: Investments: Available-for-sale debt securities—current $ — $ 7,079 $ — $ 7,079 Equity securities—current — 7,829 — 7,829 Available-for-sale debt securities—non-current — 185 — 185 Equity securities—non-current — 13 — 13 Derivative financial instruments: Foreign currency derivative contracts — 4,240 — 4,240 Interest rate swap contracts — 439 — 439 Total assets $ — $ 19,785 $ — $ 19,785 Liabilities: Foreign currency derivative contracts — 31 — 31 Interest rate swap contracts — 6,867 — 6,867 Total liabilities $ — $ 6,898 $ — $ 6,898 The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2019: Level 1 Level 2 Level 3 Total Assets: Investments: Available-for-sale debt securities—current $ — $ 20,132 — $ 20,132 Equity securities—current — 13,006 — 13,006 Available-for-sale debt securities—non-current — 188 — 188 Equity securities—non-current — 134 — 134 Derivative financial instruments: Foreign currency derivative contracts — 3,411 — 3,411 Interest rate swap contracts — 1,349 — 1,349 Total assets $ — $ 38,220 $ — $ 38,220 Liabilities: Foreign currency derivative contracts $ — 321 $ — 321 Interest rate swap contracts — 3,633 — 3,633 Total liabilities $ — $ 3,954 $ — $ 3,954

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
Derivative Financial Instruments	Sep. 30, 2019
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 (loss) and consolidated statement of cash flows from all foreign currencies, including most significantly the U.K. pound sterling and Indian 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. There is no margin required, no cash collateral posted or received by us related to our foreign exchange forward contracts. The U.S. dollar notional value of all outstanding foreign currency derivative contracts was $158,208 and $118,557 at September 30, 2019 and March 31, 2019, respectively. Unrealized net gains related to these contracts which are expected to be reclassified from accumulated other comprehensive income (loss) (“AOCI”) to earnings during the next 12 months are $4,024 at September 30, 2019. At September 30, 2019, the maximum outstanding term of any derivative instrument was 18 months. The Company also uses interest rate swaps to mitigate the Company’s interest rate risk on the Company’s variable rate debt. The Company’s objective is to limit the variability of cash flows associated with changes in LIBOR interest rate payments due on the Credit Agreement (See Note 13), by using pay-fixed, receive-variable interest rate swaps to offset the future variable rate interest payments. The Company will recognize these transactions in accordance with ASC 815 "Derivatives and Hedging," and have designated the swaps as cash flow hedges. The Company purchased interest rate swaps in July 2016 with an effective date of July 2017 and in November 2018. The July 2016 interest rate swaps are at a blended weighted average of 1.025% and the Company will receive 1-month LIBOR on the same notional amounts. The November 2018 interest rate swaps were entered into to mitigate the interest rate risk associated with the Credit Agreement executed in February 2018 and subsequent additional borrowings. The November 2018 interest rate swaps are at a fixed rate of 2.85% and are designed to maintain a 50% coverage of our LIBOR debt, therefore the notional amount changes over the life of the swap to retain the 50% coverage target. At September 30, 2019, the total notional amounts of the interest rate swaps were $180,400 with remaining maturity of approximately 4 years. The unrealized losses associated with the swap agreements was $6,428 and $2,284 at September 30, 2019 and March 31, 2019, respectively, which represents the estimated amount that the Company would pay to the counterparties in the event of an early termination. The following table sets forth the fair value of derivative instruments included in the consolidated balance sheets at September 30, 2019 and March 31, 2019: Derivatives designated as hedging instruments September 30, 2019 March 31, 2019 Foreign currency exchange contracts: Other current assets $ 4,024 $ 3,264 Other long-term assets $ 216 $ 147 Accrued expenses and other $ — $ 318 Long-term liabilities $ 31 $ 3 September 30, 2019 March 31, 2019 Interest rate swap contracts Other long-term assets $ 439 $ 1,349 Long-term liabilities $ 6,867 $ 3,633 The following tables set forth the effect of the Company’s foreign currency exchange contracts and interest rate swap contracts on the consolidated financial statements of the Company for the three and six months ended September 30, 2019 and 2018: Amount of Gain or (Loss) Recognized in AOCI on Derivatives Derivatives Designated as Three Months Ended September 30, Six Months Ended September 30, Cash Flow Hedging Relationships 2019 2018 2019 2018 Foreign currency exchange contracts $ 673 $ (6,309) $ 3,306 $ (11,601) Interest rate swaps $ (791) $ 193 $ (3,836) $ 466 Location of Gain or (Loss) Reclassified Amount of Gain or (Loss) Reclassified from AOCI into Income from AOCI into Income (loss) (Effective Three Months Ended September 30, Six Months Ended September 30, Portion) 2019 2018 2019 2018 Revenue $ — $ (807) $ (18) $ (1,163) Costs of revenue $ 1,119 $ (659) $ 1,524 $ (341) Operating expenses $ 482 $ (343) $ 682 $ (173) Interest Expenses $ 101 $ 236 $ 309 $ 443 Amount of Gain or (Loss) Recognized in Income (loss) on Derivatives Three Months Ended Six Months Ended Derivatives not Designated Location of Gain Or (Loss) September 30, September 30, as Hedging Instruments Recognized in Income (loss) on Derivatives 2019 2018 2019 2018 Foreign currency exchange contracts Revenue $ 889 $ 287 $ 1,244 $ 1,106 Costs of revenue $ (499) $ (220) $ (725) $ (753) Selling, general and administrative expenses $ (66) $ (19) $ (86) $ (19)

Leases

Leases	6 Months Ended
Leases	Sep. 30, 2019
Leases
Leases	(7) Leases The Company’s leased assets primarily consist of operating leases for office space, equipment and vehicles. At the inception of a contract, the Company determines whether a contract contains a lease, and if a lease is identified, whether it is an operating or finance lease. In determining whether a contract contains a lease, the Company considers whether (1) it has the right to obtain substantially all of the economic benefits from the use of the asset throughout the term of the contract, (2) it has the right to direct how and for what purpose the asset is used throughout the term of the contract and (3) it has the right to operate the asset throughout the term of the contract without the lessor having the right to change the terms of the contract. The Company leases vehicles in certain locations primarily as an employee benefit and these leases are classified as either operating or finance leases. The Company does not have finance leases that are material to the Company’s consolidated financial statements. Some of the Company’s lease agreements contain both lease and non-lease components. The Company separates lease components from non-lease components for all the Company’s lease assets. The consideration in the lease contract is allocated to the lease and non-lease components based on the estimated standalone prices. A portion of the leases for office space contain certain charges for additional rent expenses that are variable. Due to this variability, the cash flows associated with these charges are not included in the minimum lease payments used in determining the ROU lease assets and associated lease liabilities. The Company’s ROU lease assets represent the Company’s right to use an underlying asset for the lease term and may include any advance lease payments made and any initial direct costs and exclude lease incentives. The Company’s lease liabilities represent the Company’s obligation to make lease payments arising from the contractual terms of the lease. ROU lease assets and lease liabilities are recognized at the commencement of the lease and are calculated using the present value of lease payments over the lease term. The Company’s operating lease agreements do not provide enough information to arrive at an implicit interest rate. Therefore, the Company uses its estimated incremental borrowing rate based on information available at the commencement date of the lease to calculate the present value of the lease payments. The Company determines the incremental borrowing rate on a lease-by-lease basis by developing an estimated borrowing rate of the Company for a fully collateralized obligation with a term similar to the lease term, and adjusts the rate to reflect the incremental risk associated with the currency in which the lease is denominated. The following table provides information on the components of the Company’s operating leases included in its unaudited consolidated balance sheets: Leases Location on Consolidated Balance Sheets September 30, 2019 Assets Operating lease assets Operating lease right-of-use of assets $ 50,933 Liabilities Current Operating lease liabilities Operating lease liabilities $ 10,882 Noncurrent Operating lease liabilities Operating lease liabilities, noncurrent $ 44,535 Total $ 55,417 The Company’s leases have remaining lease terms ranging from 1 year to 9 years. Certain lease agreements, mainly for office space, include options to extend or terminate the lease before the expiration date. The Company includes such options when determining the lease term when it is reasonably certain that the Company will exercise that option. The following table provides the components of lease expense related to our operating leases: Three Months Ended Six Months Ended Location on Consolidated Statements of Income (Loss) September 30, 2019 September 30, 2019 Operating lease cost: Operating lease cost Selling, general and administrative expenses $ 3,866 $ 7,614 Variable lease cost Selling, general and administrative expenses $ 38 $ 44 Short-term lease cost Selling, general and administrative expenses $ 180 $ 269 Less: Sublease income Selling, general and administrative expenses $ (353) $ (517) Total operating lease cost $ 3,731 $ 7,410 The following table provides supplemental cash flow information related to our operating leases: Six Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 7,468 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 3,038 The following table provides information on the weighted average remaining lease term and weighted average discount rate related to our operating leases: September 30, 2019 Weighted average remaining lease term, in years: Operating leases 5.75 Weighted average discount rate: Operating leases 7.46% There were no lease agreements that contained restrictive covenants or material residual value guarantees as of September 30, 2019. The following table provides the schedule of maturities of the Company’s operating lease liabilities, under ASC Topic 842, as of September 30, 2019: Operating leases September 30, 2019 2020- remainder of year $ 7,348 2021 14,247 2022 13,012 2023 10,250 2024 6,229 2025 and thereafter 16,722 Total lease payments $ 67,808 Interest (12,391) Total lease liabilities $ 55,417 The following table provides the schedule of the Company’s future minimum payments on its operating leases at March 31, 2019, which were accounted for in accordance with its historic accounting policies under ASC Topic 840. Operating leases March 31, 2019 2020 $ 14,685 2021 13,895 2022 12,663 2023 9,879 2024 5,686 2025 and thereafter 16,761 Total lease payments $ 73,569 As of September 30, 2019, the Company had committed to payments of $186 related to an operating lease that had yet to commence and therefore is not included in consolidated balance sheets. This lease commenced in October 2019 and has a three year lease term.

Revenues

Revenues	6 Months Ended
Revenues	Sep. 30, 2019
Revenues
Revenues	(8) Revenues Disaggregation of Revenue The table below presents disaggregated revenues from the Company’s contracts with customers by geography, industry groups, service offerings and contract-type. The Company believes this disaggregation best depicts how the nature, amount, timing and uncertainty of its revenues and cash flows are affected by industry, market and other economic factors. Three Months Ended Six Months Ended September 30, September 30, Revenue by geography: 2019 2018 2019 2018 North America $ 242,296 $ 218,303 $ 472,776 $ 427,932 Europe 57,024 60,393 120,104 127,129 Rest of World 29,181 26,824 54,645 50,490 Consolidated revenue $ 328,501 $ 305,520 $ 647,525 $ 605,551 Three Months Ended Six Months Ended September 30, September 30, Revenue by customer’s industry groups 2019 2018 2019 2018 Banking financial services insurance $ 193,336 $ 192,071 $ 383,308 $ 380,809 Communications and Technology 108,406 85,341 212,907 168,368 Media & Information and Other 26,759 28,108 51,310 56,374 Consolidated revenue $ 328,501 $ 305,520 $ 647,525 $ 605,551 Three Months Ended Six Months Ended September 30, September 30, Revenue by service offerings 2019 2018 2019 2018 Application outsourcing $ 181,576 $ 161,890 $ 363,539 $ 322,599 Consulting 146,925 143,630 283,986 282,952 Consolidated revenue $ 328,501 $ 305,520 $ 647,525 $ 605,551 Three Months Ended Six Months Ended September 30, September 30, Revenue by contract type 2019 2018 2019 2018 Time-and-materials $ 199,365 $ 184,170 $ 389,280 $ 363,396 Fixed-price* 129,136 121,350 258,245 242,155 Consolidated revenue $ 328,501 $ 305,520 $ 647,525 $ 605,551 *Fixed-price includes both retainer-billing basis and fixed-price progress towards completion Receivables and Contract Balances The Company classifies its right to consideration in exchange for deliverables as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional (i.e. only the passage of time is required before payment is due). The Company presents such receivables in accounts receivable or unbilled accounts receivable, in its consolidated statements of financial position at their net estimated realizable value. Contract assets included in unbilled accounts receivable are recorded when services have been provided but the Company does not have an unconditional right to receive consideration. Contract assets are primarily related to unbilled amounts on fixed-price contracts utilizing the input method of revenue recognition. The timing between services rendered and timing of payment is less than one year. The Company recognizes an impairment loss when the contract carrying amount is greater than the remaining consideration receivable, less directly related costs to be incurred. The table below shows significant movements during the six months ended September 30, 2019 and 2018 in contract assets: September 30, 2019 September 30, 2018 Beginning balance $ 18,538 $ 15,998 Revenues recognized during the period but not yet billed 44,957 63,983 Amounts billed (41,152) (64,231) Other (400) (278) Ending balance $ 21,943 $ 15,472 Contract liabilities comprise of amounts billed to customers for revenues not yet earned. Such amounts are anticipated to be recorded as revenues when services are performed in subsequent periods. The table below shows significant movements in the deferred revenue balances during the six months ended September 30, 2019 and 2018: September 30, 2019 September 30, 2018 Beginning balance $ 6,421 $ 7,908 Amounts billed but not yet recognized as revenues 4,867 4,918 Revenues recognized related to the opening balance of deferred revenue (4,291) (6,354) Other (110) (297) Ending balance $ 6,887 $ 6,175 Remaining performance obligation ASC Topic 606- Revenue from Contracts with Customers requires that the Company discloses the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of September 30, 2019. This disclosure is not required for: (1) contracts with an original duration of one year or less, including contracts that can be terminated for convenience without a substantive penalty, (2) contracts for which the Company recognizes revenues based on the right to invoice for services performed, (3) variable consideration allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation in accordance with ASC 606-10-25-14(b), for which the criteria in ASC 606-10-32-40 have been met, or (4) variable consideration in the form of a sales-based or usage-based royalty promised in exchange for a license of intellectual property. Many of the Company’s performance obligations meet one or more of these exemptions. As of September 30, 2019, the aggregate amount of transaction price allocated to remaining performance obligations, other than those meeting the exclusion criteria above, was $43,537 and will be recognized as revenue within 5 years. From time to time, the Company enters into arrangements to deliver IT services that include upfront payments to its clients. As of September 30, 2019, the total unamortized upfront payments related to these services were $36,856 and are recorded in prepaid expenses and other long-term assets in the consolidated balance sheet. These upfront payments are expected to be amortized as a reduction to revenue over a benefit period of 5 years.

Series A Convertible Preferred

Series A Convertible Preferred Stock	6 Months Ended
Series A Convertible Preferred Stock	Sep. 30, 2019
Series A Convertible Preferred Stock.
Series A Convertible Preferred Stock	(9) Series A Convertible Preferred Stock On May 3, 2017, the Company entered into an investment agreement with The Orogen Group (‘‘Orogen’’) pursuant to which Orogen purchased 108,000 shares of the Company’s newly issued Series A Convertible Preferred Stock, initially convertible into 3,000,000 shares of common stock, for an aggregate purchase price of $108,000 with an initial conversion price of $36.00 (the ‘‘Orogen Preferred Stock Financing’’). Under the terms of the investment, the Series A Convertible Preferred Stock has a 3.875% dividend per annum, payable quarterly in additional shares of common stock and/or cash at the Company’s option. If any shares of Series A Convertible Preferred Stock have not been converted into common stock prior to May 3, 2024, the Company will be required to repurchase such shares at a repurchase price equal to the liquidation preference of the repurchased shares plus the amount of accumulated and unpaid dividends thereon. If the Company fails to effect such repurchase, the dividend rate on the Series A Convertible Preferred Stock will increase by 1% per annum and an additional 1% per annum on each anniversary of May 3, 2024 during the period in which such failure to effect the repurchase is continuing, except that the dividend rate will not increase to more than 6.875% per annum. In connection with the issuance of the Series A Convertible Preferred Stock, the Company incurred direct and incremental expenses of $1,154, including financial advisory fees, closing costs, legal expenses and other offering-related expenses. These issuance costs are recorded as a reduction to the proceeds received from issuance of Series A Convertible Preferred Stock. These direct and incremental expenses reduced the Series A Convertible Preferred Stock, and will be accreted through retained earnings as a deemed dividend from the date of issuance through the first possible known redemption date, May 3, 2024. During the three and six months ended September 30, 2019 and 2018, the Company recorded accretions to the Series A Convertible Preferred Stock related to its issuance cost. Holders of Series A Convertible Preferred Stock are entitled to a cumulative dividend at the rate of 3.875% per annum, payable quarterly in arrears. During the six months ended September 30, 2019 and 2018, the Company has paid $2,092 as cash dividend on Series A Convertible Preferred Stock. As of September 30, 2019 and 2018, the Company had declared and accrued dividends of $686 associated with the Series A Convertible Preferred Stock.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
Goodwill and Intangible Assets	Sep. 30, 2019
Goodwill and Intangible Assets
Goodwill and Intangible Assets	(10) Goodwill and Intangible Assets Goodwill: The Company has one operating segment. The following are details of the changes in goodwill balance at September 30, 2019: September 30, 2019 Balance at April 1, 2019 $ 279,543 Foreign currency translation adjustments (2,482) Balance at September 30, 2019 $ 277,061 The acquisition costs and goodwill balance deductible for our business acquisitions for tax purposes are $145,636. The acquisition costs and goodwill balance not deductible for tax purposes are $144,328. Intangible Assets: The following are details of the Company’s intangible asset carrying amounts acquired and amortization at September 30, 2019: September 30, 2019 Weighted Gross Net Average Carrying Accumulated Carrying Useful Life Amount Amortization Amount Amortizable intangible assets: Customer relationships 12.4 $ 139,684 $ 39,603 $ 100,081 Trademark 2.0 900 679 221 Technology 5.0 500 435 65 Other 5.0 1,037 74 963 12.2 $ 142,121 $ 40,791 $ 101,330 During the three months ended June 30, 2019, the Company acquired certain assets of a small consulting company located in the United States. The purchase price was approximately $4,251 in cash paid at closing and an additional earn-out consideration of up to $4,453, payable within one year based on achievement of certain revenue targets. The probable and estimable value of the contingent consideration as of September 30, 2019 is $4,058. During the three months ended September 30, 2019, the Company’s U.S. subsidiary, eTouch Systems Corp. acquired certain assets of a small consulting company located in the United States. The purchase price was approximately $4,000 in cash and an additional earn-out consideration of up to $4,000 payable within one year based on achievement of certain revenue targets. The probable and estimable value of the contingent consideration as of September 30, 2019 is $3,745. The following are the details of the Company’s intangible asset carrying amounts acquired, and amortization at March 31, 2019: March 31, 2019 Weighted Gross Net Average Carrying Accumulated Carrying Useful Life Amount Amortization Amount Amortizable intangible assets: Customer relationships 13.0 $ 125,520 $ 33,679 $ 91,841 Trademark 2.0 900 431 469 Technology 5.0 500 370 130 12.9 $ 126,920 $ 34,480 $ 92,440 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	6 Months Ended
Income Taxes	Sep. 30, 2019
Income Taxes
Income Taxes	(11) Income Taxes The Company applies an estimated annual effective tax rate to its year-to-date operating results to determine the interim provision (benefit) for income tax expense. The Company’s effective tax rate was 40.0% and 41.9% for the three and six months ended September 30, 2019, as compared to an effective tax (benefit) and expense rate of (25.8%) and 294.0% for the three and six months ended September 30, 2018. The Company’s effective tax rate for the three and six months ended September 30, 2019 was impacted by executive stock compensation limitations and Base Erosion Alternative Tax “BEAT” enacted in the Tax Cuts and Jobs Act (the “Tax Act”), enacted on December 22, 2017 by the U.S. government. The Company’s reported effective tax rate is also impacted by jurisdictional mix of profits and losses in which the Company operates, foreign statutory tax rates in effect, unusual or infrequent discrete items requiring a provision during the period and certain exemptions or tax holidays applicable to the Company. During the fiscal year ended March 31, 2019, the Company elected to treat several foreign entities as disregarded entities. The earnings of these subsidiaries will be subject to U.S. taxation as well as local taxation with a corresponding foreign tax credit, at the election of the Company. During the three and six months ended September 30, 2019, the Company has elected to deduct the foreign taxes in computing the income tax expense. The Company’s income tax provision for the three and six months ended September 30, 2019 includes the impact of Global Intangible Low-taxed Income (“GILTI”) and other provisions of the Tax Act. The Company’s aggregate income tax rate in foreign jurisdictions is comparable to its income tax rate in the United States as a result of the Tax Act, other than in jurisdictions in which the Company has tax holiday benefits. A valuation allowance is required if, based on available evidence, it is more likely than not that all or some portion of the asset will not be realized due to the inability of the Company to generate sufficient taxable income in a specific jurisdiction. The Company has $25,308 and $1,151 of net deferred tax assets in the United States and the United Kingdom, respectively, at September 30, 2019. The Company has not recorded a valuation allowance as management has concluded it is more likely than not that the deferred tax assets will be utilized before expiration. The Company expects sufficient taxable income in future periods related to the impact of the GILTI and the election to treat several foreign entities as disregarded entities. The Company’s Indian subsidiaries operate several development centers in areas designated as a special economic zone, or SEZ, under the SEZ Act of 2005. In particular, the Company was approved as an 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 an 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 other units at various stages of tax holiday benefit. On September 20, 2019, the Indian government issued Ordinance 2019 making certain amendments in the Income-tax Act 1961, which substantially reduces tax rates. The effective rate of tax on India-based companies was reduced from 34.9% to 25.17%, effective for fiscal years beginning April 1, 2019. The new rates require the surrendering of any tax holidays and other attributes of which the Company may be currently taking advantage and is able to be elected once the tax holidays have concluded. The Company continues to apply the old tax rates and applicable holidays. The Company will continue to analyze and elect this Ordinance 2019 when it is most beneficial to the Company. In addition, the Company’s Sri Lankan subsidiary, Virtusa (Private) Limited, was operating under a 12-year income tax holiday arrangement until March 31, 2019 and required Virtusa (Private) Limited to retain certain job creation and investment criteria through the expiration of the holiday period. During the fiscal year ended March 31, 2019, the Company believes it has fulfilled its hiring and investment commitments and is eligible for tax holiday through March 2019. The 12-year income tax holiday arrangement expired as of March 31, 2019 and therefore during the six months ended September 30, 2019, the Company recorded tax expense on all the earnings in its Sri Lankan subsidiary at the statutory rate. The Company has been under income tax examination in India, the U.K, Singapore and the United States. The Indian taxing authorities issued an assessment order with respect to their examination of the various tax returns for the fiscal years ended March 31, 2005 to March 31, 2017 of the Company’s Indian subsidiary, Virtusa (India) Private Ltd, now merged with and into Virtusa Consulting Services Private Limited (collectively referred to as “Virtusa India”). At issue were several matters, the most significant of which was the redetermination of the arm’s-length profit which should be recorded by Virtusa India on the intercompany transactions with its affiliates. These matters are currently at different level of appeals. During the fiscal year ended March 31, 2011, the Company entered into a competent authority settlement and settled the uncertain tax position for the fiscal years ended March 31, 2004 and 2005. However, the redetermination of arm’s-length profit on transactions with respect to the Company’s subsidiaries and Virtusa UK Limited has not been resolved and remains under appeal for the fiscal year ended March 31, 2005. In the United Kingdom, the Company is currently under examination for transfer pricing and research benefits for the years ended March 31, 2014 to March 31, 2017. In Singapore, the Inland Revenue Authority is confirming the appropriateness of the Company’s deductions for the year ended March 31, 2017. In the United States, the Internal Revenue Service has concluded an examination of fiscal years ended March 31, 2015 and March 31, 2017 with a non-material impact on cash and earnings. Unrecognized tax benefits represent uncertain tax positions for which the Company has established reserves. At September 30, 2019 and March 31, 2019, the total liability for unrecognized tax benefits was $7,106 and $6,744, respectively. Unrecognized tax benefits may be adjusted upon the closing of the statute of limitations for income tax returns filed in various jurisdictions. During the six months ended September 30, 2019 and 2018, the unrecognized tax benefits increased by $362 and decreased by $842, respectively. The increase in unrecognized tax benefits in the six months ended September 30, 2019 was predominantly due to increase in liability related to the UK audit, foreign currency movements and 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 currently or has been historically 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 indefinitely reinvested. The Company does not provide for U.S. income taxes on foreign currency translation or applicable withholding tax until a distribution is declared. At September 30, 2019, the Company had approximately $172,349 of cash, cash equivalents, short-term and long-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. 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	6 Months Ended
Concentration of Revenue and Assets	Sep. 30, 2019
Concentration of Revenue and Assets
Concentration of Revenue and Assets	(12) 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 Six Months Ended September 30, September 30, 2019 2018 2019 2018 Customer revenue: United States of America $ 229,178 $ 208,543 $ 447,270 $ 409,683 United Kingdom 45,014 48,810 94,893 102,566 Rest of World 54,309 48,167 105,362 93,302 Consolidated revenue $ 328,501 $ 305,520 $ 647,525 $ 605,551 September 30, March 31, 2019 2019 Long-lived assets, net of accumulated depreciation and amortization: United States of America $ 225,816 $ 216,279 India 244,847 251,722 Rest of World 19,140 23,847 Consolidated long-lived assets, net $ 489,803 $ 491,848 Revenue from significant clients as a percentage of the Company’s consolidated revenue was as follows: Three Months Ended Six Months Ended September 30, September 30, 2019 2018 2019 2018 Customer A 15.7 % 18.0 % 15.6 % 17.6 %

Debt

Debt	6 Months Ended
Debt	Sep. 30, 2019
Debt
Debt	(13) Debt On February 6, 2018, the Company entered into a credit agreement (the “Credit Agreement”) dated as of February 6, 2018, by and among the Company, its guarantor subsidiaries party thereto, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as joint book runners and lead arrangers. The Credit Agreement replaced the prior $300,000 credit agreement with J.P. Morgan Securities and Merrill Lynch, Pierce, Fenner & Smith Incorporated and provides for a $200,000 revolving credit facility and a $180,000 term loan and a $70,000 opportunistic, strategic, investment opportunities At September 30, 2019, the Company was in compliance with its debt covenants and has provided a quarterly certification to its lenders to that effect. The Company believes that it currently meets all conditions set forth in the Credit Agreement to borrow thereunder and it is not aware of any conditions that would prevent it from borrowing part or all of the remaining available capacity under the existing revolving credit facility at September 30, 2019 and through the date of this filing. Current portion of long-term debt The following summarizes our short-term debt balances as of: September 30, 2019 March 31, 2019 Notes outstanding under the revolving credit facility $ — $ — Term loan- current maturities 15,625 12,500 Less: deferred financing costs, current (1,093) (1,093) Total $ 14,532 $ 11,407 Long-term debt, less current portion The following summarizes our long-term debt balance as of: September 30, 2019 March 31, 2019 Term loan $ 258,750 $ 237,500 Borrowings under revolving credit facility 129,500 129,500 Less: Current maturities (15,625) (12,500) Deferred financing costs, long-term (2,633) (3,180) Total $ 369,992 $ 351,320 In July 2016 and November 2018, the Company entered into interest rate swap transactions to mitigate Company’s interest rate risk on Company’s variable rate debt (See Note 6). On October 15, 2019, the Company entered into Amendment No. 2 to Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A. (the “Administrative Agent”) and the lenders party thereto (the “Credit Agreement Amendment”), which amends the Company’s Amended and Restated Credit Agreement, dated as of February 6, 2018, with such parties (the “Credit Agreement”) to, among other things, increase the revolving commitments available to the Company under the Credit Agreement from $200,000 to $275,000 , reduce the interest rate margins applicable to term loans and revolving loans outstanding under the Credit Agreement from time to time and reduce the commitment fee payable by the Company to the lenders in respect of unused revolving commitments under the Credit Agreement. The Company executed the Credit Agreement Amendment to provide additional lending capacity which the Company could use to fund the completion of the Polaris delisting transaction, as well as to provide excess lending capacity in the event of future opportunistic, strategic, investment opportunities. The Credit Agreement Amendment contains customary terms for amendments of this type, including representations, warranties and covenants. Beginning in fiscal 2009, the Company’s U.K. subsidiary entered into an agreement with an unrelated financial institution to sell, without recourse or continuing involvement, certain of its European-based accounts receivable balances from one client to such third party financial institution. During the six months ended September 30, 2019, $16,198 of receivables were sold under the terms of the financing agreement. Fees paid pursuant to this agreement were immaterial during the six months ended September 30, 2019. No amounts were due as of September 30, 2019, but the Company may elect to use this program again in future periods. However, the Company cannot provide any assurances that this or any other financing facilities will be available or utilized in the future.

Noncontrolling interest

Noncontrolling interest	6 Months Ended
Noncontrolling interest	Sep. 30, 2019
Noncontrolling interest
Noncontrolling interest	(14) Noncontrolling interest On March 3, 2016, the Company’s Indian subsidiary, Virtusa Consulting Services Private Limited (“Virtusa India”), acquired approximately 51.7% of the fully diluted shares of Polaris Consulting & Services Limited (“Polaris”) for approximately $168,257 in cash (the “Polaris Transaction”) pursuant to a share purchase agreement dated as of November 5, 2015, by and among Virtusa India, Polaris and the promoter sellers named therein. Through a series of transactions and in compliance with the applicable Indian rules on takeovers and SEBI Delisting Regulations, Virtusa increased its ownership interest in Polaris from 51.7% to 93.0% by February 12, 2018, when Virtusa consummated its Polaris delisting offer with respect to the public shareholders of Polaris. The delisting offer resulted in an accepted exit price of INR 480 per share (“Exit Price”), for an aggregate consideration of approximately $145,000, exclusive of transaction and closing costs. On July 11, 2018, the stock exchanges on which Polaris common shares are listed notified Polaris that trading in equity shares of Polaris would be discontinued and delisted effective on August 1, 2018. For a period of one year following the date of delisting, Virtusa India will, in compliance with SEBI Delisting Regulations, permit the public shareholders of Polaris to tender their shares for sale to Virtusa India at the Exit Price. In connection with the Polaris delisting offer, during the six months ended September 30, 2019, Virtusa India purchased 1,263,117 shares, or approximately 1.2% of Polaris common stock from shareholders for an aggregate purchase price of approximately $8,675. As of September 30, 2019, the number of shares of Polaris common stock held by noncontrolling interest shareholders was 2,009,365 or approximately 1.95% of Polaris’ basic shares of common stock outstanding. Subsequent to the expiry of the delisting offer period on July 31, 2019, the Company has no obligation to redeem the shares and accordingly the remaining redeemable noncontrolling interest amounting to $15,093 has been reclassified to permanent equity. As of September 30, 2019, the Company recorded noncontrolling interest amounting to $15,128 (including $146 of net income and $111 of accumulated other comprehensive loss attributable to noncontrolling interest for the reporting period).

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
Accumulated Other Comprehensive Loss	Sep. 30, 2019
Accumulated Other Comprehensive Loss.
Accumulated Other Comprehensive Loss	(15) Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive income (loss) by component were as follows for the three and six months ended September 30, 2019 and 2018: Three Months Ended Six Months Ended September 30, September 30, 2019 2018 2019 2018 Investment securities Beginning balance $ 15 $ 199 $ 12 $ 69 Other comprehensive income (loss) (OCI) before reclassifications, net of tax of $0, $(2), $0 and $19 (3) (271) (2) (141) Reclassifications from OCI to other income, net of tax of $0, $(1), $0 and $21 — (181) 2 (174) Less: Noncontrolling interests, net of tax of $0, $15, $0 and $11 — 28 — 21 Comprehensive income (loss) on investment securities, net of tax of $0, $12, $0 and $51 (3) (424) — (294) Closing balance $ 12 $ (225) $ 12 $ (225) Currency translation adjustments Beginning balance $ (57,872) $ (50,477) $ (57,354) $ (41,207) OCI before reclassifications (6,355) (7,071) (6,736) (17,724) Less: Noncontrolling interests 111 230 (26) 1,613 Comprehensive income (loss) on currency translation adjustments (6,244) (6,841) (6,762) (16,111) Closing balance $ (64,116) $ (57,318) $ (64,116) $ (57,318) Cash flow hedges Beginning balance $ (796) $ (1,831) $ 39 $ 1,881 OCI before reclassifications net of tax of $(73), $(1,677), $(283) and $(3,189) (46) (4,440) (247) (7,946) Reclassifications from OCI to —Revenue, net of tax of $0, $282, $7 and $406 — 525 11 757 —Costs of revenue, net of tax of $(240), $163, $(316) and $89 (879) 496 (1,208) 252 —Selling, general and administrative expenses, net of tax of $(104), $85, $(141) and $45 (379) 258 (541) 128 —Interest expenses, net of tax of $(26), $(61), $(81) and $(114) (75) (176) (228) (329) Less: Noncontrolling interests, net of tax of $0 , — (11) (1) 78 Comprehensive income (loss) on cash flow hedges, net of tax of $(443), $(1,214), $(814) and $(2,721) (1,379) (3,348) (2,214) (7,060) Closing balance $ (2,175) $ (5,179) $ (2,175) $ (5,179) Benefit plans Beginning balance $ (1,928) $ (1,632) $ (2,084) $ (1,424) OCI before reclassifications net of tax of $0, $29, $0 and $348 (1,034) (32) (911) (352) Reclassifications from OCI for prior service credit (cost) to: Other income (expense), net of tax of $0 for all periods 7 14 13 28 Reclassifications from net actuarial gain (loss) amortization to: Other income (expense), net of tax of $0 for all periods. 104 38 140 77 Other adjustments 75 93 72 151 (Less): Noncontrolling interests, net of tax $0 for all periods — 8 (6) 9 Comprehensive income (loss) on benefit plans, net of tax of $0, $29, $0 and $348 (848) 121 (692) (87) Closing balance (2,776) $ (1,511) (2,776) $ (1,511) Accumulated other comprehensive loss $ (69,055) $ (64,233) $ (69,055) $ (64,233)

Treasury Stock

Treasury Stock	6 Months Ended
Treasury Stock	Sep. 30, 2019
Treasury Stock.
Treasury Stock	(16) Treasury Stock On August 5, 2019, the Company's board of directors authorized a share repurchase program of up to $30,000 of the Company's common stock over 12 months from the approval date, subject to certain price and other trading restrictions as established by the Company. During the three months ended September 30, 2019, the Company repurchased 505,565 shares of the Company’s common stock at a weighted average price of $36.93 per share for an aggregate purchase price of $18,680 .

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Sep. 30, 2019
Commitments and Contingencies.
Commitments and Contingencies	(17) Commitments and Contingencies From time to time the Company is involved in legal proceedings, claims and litigation related to employee claims, contractual disputes and taxes in the ordinary course of business. The Company accrues a liability when a loss is considered probable and the amount can be reasonably estimated. When a material loss contingency is reasonably possible but not probable, the Company does not record a liability, but instead discloses the nature and the amount of the claim, and an estimate of the loss or range of loss, if such an estimate can be made. Legal fees are expensed as incurred. Although the Company cannot predict the outcome of such matters, the Company has no reason to believe the disposition of any current matter, other than the specific matters described below, could reasonably be expected to have a material adverse impact on the Company’s balance sheets, income of operations and cash flows or the ability to carry on any of its business activities. This assessment is based on our current understanding of relevant facts and circumstances. As such, our view of these matters is subject to inherent uncertainties and may change in the future. Recently, one of the Company’ larger clients made a demand for damages related to a project in which the Company was performing services. The client alleges breaches of certain representations and warranties regarding the Company performance and is seeking indemnification for damages from those alleged breaches. No litigation has been filed. The Company believes that it has defenses against the claims described in the demand, and intends to zealously defend against those claims. Even so, the Company cannot provide any assurance that the Company will prevail in the dispute or even partially prevail. In the event the Company does not fully prevail, the Company may have to pay damages in amounts for which it may not have reserved or which may or may not be covered by the Company’s insurance policies; further, even if the damages are covered, depending on the outcome, the Company insurance may not cover or be adequate to pay the entire claim. In addition, the Company cannot guarantee that the Company will not lose future business with such client as a result of such dispute. On February 28, 2019, the Supreme Court of India issued a ruling interpreting certain statutory defined contribution obligations of employees and employers, which altered historical understandings of such obligations, extending them to cover additional portions of employee income. As a result, contributions by our employees and the Company will increase in future periods. There is uncertainty as to whether the Indian government will apply the Supreme Court's ruling on a retroactive basis and if so, how this liability should be calculated as it is impacted by multiple variables, including the period of assessment, the application with respect to certain current and former employees and whether interest and penalties may be assessed. As such, the ultimate amount of our obligation is difficult to quantify. If the Indian government were to apply the Supreme Court ruling retroactively, without assessing interest and penalties, the impact would be a charge of approximately $7,500 to the Company’s income from operations and cash flows. The Company is currently involved in an open examination by tax authorities in the United States related to the employment tax treatment of certain payments made to employees in the ordinary course of business. The Company cannot predict the outcome of the dispute, but it is in the process of evaluating the merits of a recent notice of proposed wage adjustment and is preparing a timely and appropriate response. At this time, it is premature to predict whether resolution of the dispute could reasonably be expected to have a material adverse impact on the Company’s income from operations and cash flows.

Summary of Significant Accounti

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2019
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, 2019 included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission, or SEC, on May 24, 2019. 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 accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of Virtusa Corporation and all of its subsidiaries that are directly or indirectly more than 50% owned or controlled. When the Company does not have a controlling interest in an entity, but exerts a significant influence on the entity, the Company applies the equity method of accounting. For those majority-owned subsidiaries that are not 100% owned by the Company, the interests of the minority owners are accounted for as noncontrolling interests.
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 re-evaluates 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, income taxes, including reserves for uncertain tax positions, deferred taxes and liabilities, intangible assets, 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 September 30, 2019 and March 31, 2019, 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, other accrued expenses and long-term debt, 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 Recently Adopted Accounting Pronouncements Unless otherwise discussed below, the adoption of new accounting standards did not have an impact on the consolidated financial statements. In February 2016, the FASB issued an update (ASU 2016-02) to the standard on leases to increase transparency and comparability among organizations. The FASB subsequently issued ASU 2018-10 and ASU 2018-11 in July 2018, ASU 2018-20 in December 2018 and ASU 2019-01 in March 2019, which provide clarifications and improvements to this new standard. ASU 2018-11 also provides the optional transition method which allows companies to apply the new lease standard at the adoption date instead of at the earliest comparative period presented. The new standard replaces the existing guidance on leases and requires the lessee to recognize a right-of-use (“ROU”) asset and a lease liability for all leases with lease terms equal to or greater than twelve months. For finance leases, the lessee would recognize interest expense and amortization of the ROU asset, and for operating leases, the lessee would recognize total lease expense on a straight-line basis. For public business entities this standard is effective for the annual periods beginning after December 15, 2018, and interim periods within those annual periods. The standard permits the use of either retrospective to each prior reporting period presented with the cumulative effect of adoption recognized at the beginning of the earliest period presented or retrospective to the beginning of the period of adoption through a cumulative-effect adjustment (the “Modified Retrospective Effective Date Method”). The Company adopted this standard, (“ASC Topic 842”) effective April 1, 2019, using a Modified Retrospective Effective Date Method. The Company has elected the package of practical expedients which permits the Company to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. The Company did not elect the use of hindsight practical expedient to reevaluate the lease term of existing contracts. Prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting policies. The impact of adoption primarily relates to the recognition of ROU operating lease assets and operating lease liabilities on the Company’s unaudited consolidated balance sheets for all operating leases with a term greater than twelve months. The adoption of this standard on April 1, 2019 resulted in the recognition of ROU assets for operating leases of $54,762 and operating lease liabilities of $59,157. The Company’s accounting for finance leases (formerly capital leases) remains substantially unchanged. The adoption of this standard did not have an impact on the consolidated statement of income (loss) and comprehensive income (loss), consolidated statement of changes in stockholders’ equity or the consolidated statement of cash flows. See Note 7 “Leases” for additional information regarding leases. In August 2018, the FASB issued ASU No. 2018-15, Intangibles (Topic 350): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This standard also requires customers to amortize the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The standard also requires the entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. The entity is also required to present the capitalized implementation costs in the statement of financial position in the same line item that a prepayment for the fees of the associated hosting arrangement. For public companies, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company early adopted this standard, as of July 1, 2019, on a prospective basis for applicable implementation costs. The adoption of this standard did not have a material impact on the consolidated balance sheet, consolidated statements of income (loss), consolidated statement of changes in stockholders’ equity or the consolidated statement of cash flows. New Accounting Pronouncements Unless otherwise discussed below, the Company believes the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Measurement of Credit Losses on Financial Instruments, which modifies the measurement of expected credit losses of certain financial instruments. The FASB subsequently issued ASU 2019-04 in April 2019 and ASU 2019-05 in May 2019, which provide clarifications and improvements to this new standard. This standard update requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect of this new standard will have on its consolidated financial statements and related disclosures.

Earnings (Loss) per Share (Tabl

Earnings (Loss) per Share (Tables)	6 Months Ended
Earnings (Loss) per Share (Tables)	Sep. 30, 2019
Earnings (Loss) per Share
Schedule of components of basic earnings (loss) per share	Three Months Ended Six Months Ended September 30, September 30, 2019 2018 2019 2018 Numerators: Net income (loss) available to Virtusa stockholders $ 7,102 $ 1,505 $ 12,936 $ (4,791) Less: Series A Convertible Preferred Stock dividends and accretion 1,088 1,088 2,175 2,175 Net income (loss) available to Virtusa common stockholders $ 6,014 $ 417 $ 10,761 $ (6,966) Denominators: Basic weighted average common shares outstanding 30,107,942 29,767,276 30,137,926 29,700,151 Basic earnings (loss) per share available to Virtusa common stockholders $ 0.20 $ 0.01 $ 0.36 $ (0.23)
Schedule of components of diluted earnings (loss) per share	Three Months Ended Six Months Ended September 30, September 30, 2019 2018 2019 2018 Numerators: Net income (loss) available to Virtusa common stockholders $ 6,014 $ 417 $ 10,761 $ (6,966) Add : Series A Convertible Preferred Stock dividends and accretion — — — — Net income (loss) available to Virtusa common stockholders and assumed conversion $ 6,014 $ 417 $ 10,761 $ (6,966) Denominators: Basic weighted average common shares outstanding 30,107,942 29,767,276 30,137,926 29,700,151 Dilutive effect of Series A Convertible Preferred Stock if converted — — — — Dilutive effect of employee stock options and unvested restricted stock awards and restricted stock units 600,220 859,768 683,361 — Weighted average shares—diluted 30,708,162 30,627,044 30,821,287 29,700,151 Diluted earnings (loss) per share available to Virtusa common stockholders $ 0.20 $ 0.01 $ 0.35 $ (0.23)

Investment Securities (Tables)

Investment Securities (Tables)	6 Months Ended
Investment Securities (Tables)	Sep. 30, 2019
Investment Securities.
Summary of investment securities	The following is a summary of investment securities at September 30, 2019: Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-sale debt securities: Corporate bonds: Current $ — $ — $ — $ — Preference shares: Non-current 185 — — 185 Agency and short-term notes: Current — — — — Time Deposits: Current 7,079 — — 7,079 Equity securities: Mutual funds: Current 7,737 92 — 7,829 Equity Shares/ Options: Non-current 1 12 — 13 Total available-for-sale debt securities and equity securities $ 15,002 $ 104 $ — $ 15,106 The following is a summary of investment securities at March 31, 2019: Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-sale debt securities: Corporate bonds: Current $ 2,779 $ 1 $ (2) $ 2,778 Non-current — — — — Preference shares: 188 — — 188 Agency and short-term notes: Current 1,492 1 — 1,493 Time deposits: Current 15,861 — — 15,861 Equity Shares: Mutual funds: Current 12,912 94 — 13,006 Equity Shares/ Options: Non-current 8 126 — 134 Total available-for-sale debt and equity securities $ 33,240 $ 222 $ (2) $ 33,460
Schedule of proceeds from sales of available-for-sale debt and equity securities and the gross gains and losses included in earnings as a result	Three Months Ended Six Months Ended September 30, September 30, 2019 2018 2019 2018 Proceeds from sales or maturities of available-for-sale $ 18,423 $ 31,279 $ 38,240 $ 60,571 Gross gains $ 212 $ 261 $ 440 $ 386 Gross losses — (14) — (32) Net realized gains on sales of available-for-sale investment $ 212 $ 247 $ 440 $ 354

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	6 Months Ended
Fair Value of Financial Instruments (Tables)	Sep. 30, 2019
Fair Value of Financial Instruments
Schedule of financial assets and liabilities measured at fair value on a recurring basis	Level 1 Level 2 Level 3 Total Assets: Investments: Available-for-sale debt securities—current $ — $ 7,079 $ — $ 7,079 Equity securities—current — 7,829 — 7,829 Available-for-sale debt securities—non-current — 185 — 185 Equity securities—non-current — 13 — 13 Derivative financial instruments: Foreign currency derivative contracts — 4,240 — 4,240 Interest rate swap contracts — 439 — 439 Total assets $ — $ 19,785 $ — $ 19,785 Liabilities: Foreign currency derivative contracts — 31 — 31 Interest rate swap contracts — 6,867 — 6,867 Total liabilities $ — $ 6,898 $ — $ 6,898 The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2019: Level 1 Level 2 Level 3 Total Assets: Investments: Available-for-sale debt securities—current $ — $ 20,132 — $ 20,132 Equity securities—current — 13,006 — 13,006 Available-for-sale debt securities—non-current — 188 — 188 Equity securities—non-current — 134 — 134 Derivative financial instruments: Foreign currency derivative contracts — 3,411 — 3,411 Interest rate swap contracts — 1,349 — 1,349 Total assets $ — $ 38,220 $ — $ 38,220 Liabilities: Foreign currency derivative contracts $ — 321 $ — 321 Interest rate swap contracts — 3,633 — 3,633 Total liabilities $ — $ 3,954 $ — $ 3,954

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	6 Months Ended
Derivative Financial Instruments (Tables)	Sep. 30, 2019
Derivative Financial Instruments
Schedule of fair value of derivative instruments included in the consolidated balance sheets	Derivatives designated as hedging instruments September 30, 2019 March 31, 2019 Foreign currency exchange contracts: Other current assets $ 4,024 $ 3,264 Other long-term assets $ 216 $ 147 Accrued expenses and other $ — $ 318 Long-term liabilities $ 31 $ 3 September 30, 2019 March 31, 2019 Interest rate swap contracts Other long-term assets $ 439 $ 1,349 Long-term liabilities $ 6,867 $ 3,633
Schedule of effect of the Company's foreign currency exchange and interest rate swap contracts on the consolidated financial statements	Amount of Gain or (Loss) Recognized in AOCI on Derivatives Derivatives Designated as Three Months Ended September 30, Six Months Ended September 30, Cash Flow Hedging Relationships 2019 2018 2019 2018 Foreign currency exchange contracts $ 673 $ (6,309) $ 3,306 $ (11,601) Interest rate swaps $ (791) $ 193 $ (3,836) $ 466 Location of Gain or (Loss) Reclassified Amount of Gain or (Loss) Reclassified from AOCI into Income from AOCI into Income (loss) (Effective Three Months Ended September 30, Six Months Ended September 30, Portion) 2019 2018 2019 2018 Revenue $ — $ (807) $ (18) $ (1,163) Costs of revenue $ 1,119 $ (659) $ 1,524 $ (341) Operating expenses $ 482 $ (343) $ 682 $ (173) Interest Expenses $ 101 $ 236 $ 309 $ 443 Amount of Gain or (Loss) Recognized in Income (loss) on Derivatives Three Months Ended Six Months Ended Derivatives not Designated Location of Gain Or (Loss) September 30, September 30, as Hedging Instruments Recognized in Income (loss) on Derivatives 2019 2018 2019 2018 Foreign currency exchange contracts Revenue $ 889 $ 287 $ 1,244 $ 1,106 Costs of revenue $ (499) $ (220) $ (725) $ (753) Selling, general and administrative expenses $ (66) $ (19) $ (86) $ (19)

Leases (Tables)

Leases (Tables)	6 Months Ended
Leases (Tables)	Sep. 30, 2019
Leases
Summary of operating leases	Leases Location on Consolidated Balance Sheets September 30, 2019 Assets Operating lease assets Operating lease right-of-use of assets $ 50,933 Liabilities Current Operating lease liabilities Operating lease liabilities $ 10,882 Noncurrent Operating lease liabilities Operating lease liabilities, noncurrent $ 44,535 Total $ 55,417
Summary of components of lease expense	Three Months Ended Six Months Ended Location on Consolidated Statements of Income (Loss) September 30, 2019 September 30, 2019 Operating lease cost: Operating lease cost Selling, general and administrative expenses $ 3,866 $ 7,614 Variable lease cost Selling, general and administrative expenses $ 38 $ 44 Short-term lease cost Selling, general and administrative expenses $ 180 $ 269 Less: Sublease income Selling, general and administrative expenses $ (353) $ (517) Total operating lease cost $ 3,731 $ 7,410
Summary of supplemental cash flow information	Six Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 7,468 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 3,038
Summary of weighted average remaining lease term and weighted average discount rate	September 30, 2019 Weighted average remaining lease term, in years: Operating leases 5.75 Weighted average discount rate: Operating leases 7.46%
Schedule of maturities of the Company's operating lease liabilities, under ASC Topic 842, as of September 30, 2019:	The following table provides the schedule of maturities of the Company’s operating lease liabilities, under ASC Topic 842, as of September 30, 2019: Operating leases September 30, 2019 2020- remainder of year $ 7,348 2021 14,247 2022 13,012 2023 10,250 2024 6,229 2025 and thereafter 16,722 Total lease payments $ 67,808 Interest (12,391) Total lease liabilities $ 55,417
Schedule of the Company's future minimum payments on its operating leases at March 31, 2019, which were accounted for in accordance with its historic accounting policies under ASC Topic 840	Operating leases March 31, 2019 2020 $ 14,685 2021 13,895 2022 12,663 2023 9,879 2024 5,686 2025 and thereafter 16,761 Total lease payments $ 73,569

Revenues (Tables)

Revenues (Tables)	6 Months Ended
Revenues (Tables)	Sep. 30, 2019
Revenues
Schedule of disaggregation of revenue	Three Months Ended Six Months Ended September 30, September 30, Revenue by geography: 2019 2018 2019 2018 North America $ 242,296 $ 218,303 $ 472,776 $ 427,932 Europe 57,024 60,393 120,104 127,129 Rest of World 29,181 26,824 54,645 50,490 Consolidated revenue $ 328,501 $ 305,520 $ 647,525 $ 605,551 Three Months Ended Six Months Ended September 30, September 30, Revenue by customer’s industry groups 2019 2018 2019 2018 Banking financial services insurance $ 193,336 $ 192,071 $ 383,308 $ 380,809 Communications and Technology 108,406 85,341 212,907 168,368 Media & Information and Other 26,759 28,108 51,310 56,374 Consolidated revenue $ 328,501 $ 305,520 $ 647,525 $ 605,551 Three Months Ended Six Months Ended September 30, September 30, Revenue by service offerings 2019 2018 2019 2018 Application outsourcing $ 181,576 $ 161,890 $ 363,539 $ 322,599 Consulting 146,925 143,630 283,986 282,952 Consolidated revenue $ 328,501 $ 305,520 $ 647,525 $ 605,551 Three Months Ended Six Months Ended September 30, September 30, Revenue by contract type 2019 2018 2019 2018 Time-and-materials $ 199,365 $ 184,170 $ 389,280 $ 363,396 Fixed-price* 129,136 121,350 258,245 242,155 Consolidated revenue $ 328,501 $ 305,520 $ 647,525 $ 605,551 *Fixed-price includes both retainer-billing basis and fixed-price progress towards completion
Schedule of significant movements in contract assets and deferred revenue balances	The table below shows significant movements during the six months ended September 30, 2019 and 2018 in contract assets: September 30, 2019 September 30, 2018 Beginning balance $ 18,538 $ 15,998 Revenues recognized during the period but not yet billed 44,957 63,983 Amounts billed (41,152) (64,231) Other (400) (278) Ending balance $ 21,943 $ 15,472 Contract liabilities comprise of amounts billed to customers for revenues not yet earned. Such amounts are anticipated to be recorded as revenues when services are performed in subsequent periods. The table below shows significant movements in the deferred revenue balances during the six months ended September 30, 2019 and 2018: September 30, 2019 September 30, 2018 Beginning balance $ 6,421 $ 7,908 Amounts billed but not yet recognized as revenues 4,867 4,918 Revenues recognized related to the opening balance of deferred revenue (4,291) (6,354) Other (110) (297) Ending balance $ 6,887 $ 6,175

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
Goodwill and Intangible Assets (Tables)	Sep. 30, 2019
Goodwill and Intangible Assets
Schedule of changes in goodwill	September 30, 2019 Balance at April 1, 2019 $ 279,543 Foreign currency translation adjustments (2,482) Balance at September 30, 2019 $ 277,061
Schedule of intangible asset carrying amounts acquired and amortization	The following are details of the Company’s intangible asset carrying amounts acquired and amortization at September 30, 2019: September 30, 2019 Weighted Gross Net Average Carrying Accumulated Carrying Useful Life Amount Amortization Amount Amortizable intangible assets: Customer relationships 12.4 $ 139,684 $ 39,603 $ 100,081 Trademark 2.0 900 679 221 Technology 5.0 500 435 65 Other 5.0 1,037 74 963 12.2 $ 142,121 $ 40,791 $ 101,330 During the three months ended June 30, 2019, the Company acquired certain assets of a small consulting company located in the United States. The purchase price was approximately $4,251 in cash paid at closing and an additional earn-out consideration of up to $4,453, payable within one year based on achievement of certain revenue targets. The probable and estimable value of the contingent consideration as of September 30, 2019 is $4,058. During the three months ended September 30, 2019, the Company’s U.S. subsidiary, eTouch Systems Corp. acquired certain assets of a small consulting company located in the United States. The purchase price was approximately $4,000 in cash and an additional earn-out consideration of up to $4,000 payable within one year based on achievement of certain revenue targets. The probable and estimable value of the contingent consideration as of September 30, 2019 is $3,745. The following are the details of the Company’s intangible asset carrying amounts acquired, and amortization at March 31, 2019: March 31, 2019 Weighted Gross Net Average Carrying Accumulated Carrying Useful Life Amount Amortization Amount Amortizable intangible assets: Customer relationships 13.0 $ 125,520 $ 33,679 $ 91,841 Trademark 2.0 900 431 469 Technology 5.0 500 370 130 12.9 $ 126,920 $ 34,480 $ 92,440

Concentration of Revenue and _2

Concentration of Revenue and Assets (Tables)	6 Months Ended
Concentration of Revenue and Assets (Tables)	Sep. 30, 2019
Concentration of Revenue and Assets
Schedule of revenue attributed to geographic areas based on location of the client	Three Months Ended Six Months Ended September 30, September 30, 2019 2018 2019 2018 Customer revenue: United States of America $ 229,178 $ 208,543 $ 447,270 $ 409,683 United Kingdom 45,014 48,810 94,893 102,566 Rest of World 54,309 48,167 105,362 93,302 Consolidated revenue $ 328,501 $ 305,520 $ 647,525 $ 605,551
Schedule of long-lived assets, net of accumulated depreciation and amortization, attributed to geographic areas based on location of assets	September 30, March 31, 2019 2019 Long-lived assets, net of accumulated depreciation and amortization: United States of America $ 225,816 $ 216,279 India 244,847 251,722 Rest of World 19,140 23,847 Consolidated long-lived assets, net $ 489,803 $ 491,848
Schedule of revenue from significant clients as a percentage of Company's consolidated revenue	Three Months Ended Six Months Ended September 30, September 30, 2019 2018 2019 2018 Customer A 15.7 % 18.0 % 15.6 % 17.6 %

Debt (Tables)

Debt (Tables)	6 Months Ended
Debt (Tables)	Sep. 30, 2019
Debt
Summary of short-term debt balances	September 30, 2019 March 31, 2019 Notes outstanding under the revolving credit facility $ — $ — Term loan- current maturities 15,625 12,500 Less: deferred financing costs, current (1,093) (1,093) Total $ 14,532 $ 11,407
Summary of long-term debt balances	September 30, 2019 March 31, 2019 Term loan $ 258,750 $ 237,500 Borrowings under revolving credit facility 129,500 129,500 Less: Current maturities (15,625) (12,500) Deferred financing costs, long-term (2,633) (3,180) Total $ 369,992 $ 351,320

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
Accumulated Other Comprehensive Loss (Tables)	Sep. 30, 2019
Accumulated Other Comprehensive Loss.
Schedule of changes in accumulated other comprehensive loss by component	Three Months Ended Six Months Ended September 30, September 30, 2019 2018 2019 2018 Investment securities Beginning balance $ 15 $ 199 $ 12 $ 69 Other comprehensive income (loss) (OCI) before reclassifications, net of tax of $0, $(2), $0 and $19 (3) (271) (2) (141) Reclassifications from OCI to other income, net of tax of $0, $(1), $0 and $21 — (181) 2 (174) Less: Noncontrolling interests, net of tax of $0, $15, $0 and $11 — 28 — 21 Comprehensive income (loss) on investment securities, net of tax of $0, $12, $0 and $51 (3) (424) — (294) Closing balance $ 12 $ (225) $ 12 $ (225) Currency translation adjustments Beginning balance $ (57,872) $ (50,477) $ (57,354) $ (41,207) OCI before reclassifications (6,355) (7,071) (6,736) (17,724) Less: Noncontrolling interests 111 230 (26) 1,613 Comprehensive income (loss) on currency translation adjustments (6,244) (6,841) (6,762) (16,111) Closing balance $ (64,116) $ (57,318) $ (64,116) $ (57,318) Cash flow hedges Beginning balance $ (796) $ (1,831) $ 39 $ 1,881 OCI before reclassifications net of tax of $(73), $(1,677), $(283) and $(3,189) (46) (4,440) (247) (7,946) Reclassifications from OCI to —Revenue, net of tax of $0, $282, $7 and $406 — 525 11 757 —Costs of revenue, net of tax of $(240), $163, $(316) and $89 (879) 496 (1,208) 252 —Selling, general and administrative expenses, net of tax of $(104), $85, $(141) and $45 (379) 258 (541) 128 —Interest expenses, net of tax of $(26), $(61), $(81) and $(114) (75) (176) (228) (329) Less: Noncontrolling interests, net of tax of $0 , — (11) (1) 78 Comprehensive income (loss) on cash flow hedges, net of tax of $(443), $(1,214), $(814) and $(2,721) (1,379) (3,348) (2,214) (7,060) Closing balance $ (2,175) $ (5,179) $ (2,175) $ (5,179) Benefit plans Beginning balance $ (1,928) $ (1,632) $ (2,084) $ (1,424) OCI before reclassifications net of tax of $0, $29, $0 and $348 (1,034) (32) (911) (352) Reclassifications from OCI for prior service credit (cost) to: Other income (expense), net of tax of $0 for all periods 7 14 13 28 Reclassifications from net actuarial gain (loss) amortization to: Other income (expense), net of tax of $0 for all periods. 104 38 140 77 Other adjustments 75 93 72 151 (Less): Noncontrolling interests, net of tax $0 for all periods — 8 (6) 9 Comprehensive income (loss) on benefit plans, net of tax of $0, $29, $0 and $348 (848) 121 (692) (87) Closing balance (2,776) $ (1,511) (2,776) $ (1,511) Accumulated other comprehensive loss $ (69,055) $ (64,233) $ (69,055) $ (64,233)

Unaudited Interim Financial I_2

Unaudited Interim Financial Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2019	Apr. 01, 2019
Unaudited Interim Financial Information
Lease, Practical Expedients, Package [true false]	true
Lease, Practical Expedient, Use of Hindsight [true false]	false
Right-of-use-assets	$ 50,933
Lease liabilities	$ 55,417
Effect \| ASU 2016-02
Unaudited Interim Financial Information
Right-of-use-assets		$ 54,762
Lease liabilities		$ 59,157

Earnings (Loss) per Share - Bas

Earnings (Loss) per Share - Basic earnings (loss) per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator:
Net income (loss) available to Virtusa stockholders	$ 7,102	$ 5,834	$ 1,505	$ 12,936	$ (4,791)
Less: Series A Convertible Preferred Stock dividends and accretion	(1,088)		(1,088)	(2,175)	(2,175)
Net income (loss) available to Virtusa common stockholders	$ 6,014		$ 417	$ 10,761	$ (6,966)
Denominator:
Basic weighted average common shares outstanding (in shares)	30,107,942		29,767,276	30,137,926	29,700,151
Basic earnings (loss) per share available to Virtusa common stockholders (in dollars per share)	$ 0.20		$ 0.01	$ 0.36	$ (0.23)

Earnings (Loss) per Share - Dil

Earnings (Loss) per Share - Diluted earnings (loss) per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator:
Net income (loss) available to Virtusa common stockholders	$ 6,014	$ 417	$ 10,761	$ (6,966)
Net income (loss) available to Virtusa common stockholders and assumed conversion	$ 6,014	$ 417	$ 10,761	$ (6,966)
Denominator:
Basic weighted average common shares outstanding (in shares)	30,107,942	29,767,276	30,137,926	29,700,151
Dilutive effect of employee stock options and unvested restricted stock awards and restricted stock units (in shares)	600,220	859,768	683,361
Weighted average shares-diluted (in shares)	30,708,162	30,627,044	30,821,287	29,700,151
Diluted earnings (loss) per share available to Virtusa common stockholders (in dollars per share)	$ 0.20	$ 0.01	$ 0.35	$ (0.23)

Earnings (Loss) per Share - Ant

Earnings (Loss) per Share - Anti-dilutive securities (Details) - shares	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Employee stock options and unvested restricted stock awards and restricted stock units
Anti-dilutive securities
Shares excluded from computation of earnings (loss) per share	277,265	20,617	138,633	1,710,551
Series A Convertible Preferred Stock
Anti-dilutive securities
Shares excluded from computation of earnings (loss) per share	3,000,000	3,000,000	3,000,000	3,000,000

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Investment Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Mar. 31, 2019
Total available-for-sale debt securities and equity securities
Amortized Cost	$ 15,002		$ 15,002		$ 33,240
Gross Unrealized Gains	104		104		222
Gross Unrealized Losses					(2)
Fair Value	15,106		15,106		33,460
Proceeds from sales or maturities of available-for-sale investment and equity securities
Proceeds from sales or maturities of available-for-sale investment securities and equity securities	18,423	$ 31,279	38,240	$ 60,571
Gross gains	212	261	440	386
Gross losses		(14)		(32)
Net realized gains on sales of available-for-sale investment securities and equity securities	212	$ 247	440	$ 354
Corporate Debt Securities \| Current
Available-for-sale debt securities
Amortized Cost					2,779
Gross Unrealized Gains					1
Gross Unrealized Losses					(2)
Fair Value					2,778
Preference shares \| Noncurrent
Available-for-sale debt securities
Amortized Cost	185		185		188
Fair Value	185		185		188
Agency And Short Term Notes \| Current
Available-for-sale debt securities
Amortized Cost					1,492
Gross Unrealized Gains					1
Fair Value					1,493
Time Deposits \| Current
Available-for-sale debt securities
Amortized Cost	7,079		7,079		15,861
Fair Value	7,079		7,079		15,861
Mutual funds \| Current
Equity securities
Amortized Cost	7,737		7,737		12,912
Gross Unrealized Gains	92		92		94
Fair Value	7,829		7,829		13,006
Equity Shares/ Options \| Noncurrent
Equity securities
Amortized Cost	1		1		8
Gross Unrealized Gains	12		12		126
Fair Value	$ 13		$ 13		$ 134

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Financial assets and liabilities measured at fair value on a recurring basis (Details) - Fair Value Measurements Recurring - USD ($) $ in Thousands	Sep. 30, 2019	Mar. 31, 2019
Investments:
Available-for-sales debt securities - current	$ 7,079	$ 20,132
Equity securities - current	7,829	13,006
Available-for-sales debt securities - non-current	185	188
Equity securities - non-current	13	134
Derivative financial instruments:
Foreign currency derivative contracts	4,240	3,411
Interest rate swap contracts	439	1,349
Total assets	19,785	38,220
Liabilities:
Foreign currency derivative contracts	31	321
Interest rate swap contracts	6,867	3,633
Total liabilities	6,898	3,954
Fair Value Inputs Level2
Investments:
Available-for-sales debt securities - current	7,079	20,132
Equity securities - current	7,829	13,006
Available-for-sales debt securities - non-current	185	188
Equity securities - non-current	13	134
Derivative financial instruments:
Foreign currency derivative contracts	4,240	3,411
Interest rate swap contracts	439	1,349
Total assets	19,785	38,220
Liabilities:
Foreign currency derivative contracts	31	321
Interest rate swap contracts	6,867	3,633
Total liabilities	$ 6,898	$ 3,954

Derivative Financial Instrume_3

Derivative Financial Instruments - Interest rate swaps (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Sep. 30, 2019	Mar. 31, 2019
Foreign Exchange Contract
Derivative Financial Instruments
Notional value of outstanding contracts	$ 158,208	$ 118,557
Unrealized net gains related to derivative instruments expected to be reclassified from AOCI into earnings during the next 12 months	$ 4,024
Foreign Exchange Contract \| Maximum
Derivative Financial Instruments
Outstanding term of derivative instruments	18 months
Interest rate swaps
Derivative Financial Instruments
Notional value of outstanding contracts	$ 180,400
Outstanding term of derivative instruments	4 years
Interest rate swap 2018
Derivative Financial Instruments
Fixed interest rate	2.85%
Percentage of coverage target retain	50.00%
Interest rate swap 2018 \| London Interbank Offered Rate L I B O R
Derivative Financial Instruments
Percentage of coverage on debt	50.00%
2016 interest rate swaps
Derivative Financial Instruments
Unrealized loss on derivative	$ 6,428	$ 2,284
2016 interest rate swaps \| 1-month LIBOR
Derivative Financial Instruments
Blended weighted average rate	1.025%

Derivative Financial Instrume_4

Derivative Financial Instruments - Derivatives designated as hedging instruments (Details) - Designated As Hedging Instrument - USD ($) $ in Thousands	Sep. 30, 2019	Mar. 31, 2019
Foreign Exchange Contract
Foreign currency exchange and interest rate swap contracts
Other current assets	$ 4,024	$ 3,264
Other long-term assets	216	147
Accrued expenses and other		318
Long-term liabilities	31	3
Interest rate swaps
Foreign currency exchange and interest rate swap contracts
Other long-term assets	439	1,349
Long-term liabilities	$ 6,867	$ 3,633

Derivative Financial Instrume_5

Derivative Financial Instruments - Effect of foreign currency exchange and interest rate swap contracts (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Designated As Hedging Instrument \| Cash flow hedges. \| Revenue
Derivative Financial Instruments
Amount of Gain or (Loss) Reclassified from AOCI into Income (loss)		$ (807)	$ (18)	$ (1,163)
Designated As Hedging Instrument \| Cash flow hedges. \| Costs of revenue
Derivative Financial Instruments
Amount of Gain or (Loss) Reclassified from AOCI into Income (loss)	$ 1,119	(659)	1,524	(341)
Designated As Hedging Instrument \| Cash flow hedges. \| Operating Expense
Derivative Financial Instruments
Amount of Gain or (Loss) Reclassified from AOCI into Income (loss)	482	(343)	682	(173)
Designated As Hedging Instrument \| Cash flow hedges. \| Interest expenses
Derivative Financial Instruments
Amount of Gain or (Loss) Reclassified from AOCI into Income (loss)	101	236	309	443
Designated As Hedging Instrument \| Cash flow hedges. \| Foreign Exchange Contract
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in AOCI on Derivatives	673	(6,309)	3,306	(11,601)
Designated As Hedging Instrument \| Cash flow hedges. \| Interest rate swaps
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in AOCI on Derivatives	(791)	193	(3,836)	466
Nondesignated \| Foreign Exchange Contract \| Revenue
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in Income (loss) on Derivatives	889	287	1,244	1,106
Nondesignated \| Foreign Exchange Contract \| Costs of revenue
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in Income (loss) on Derivatives	(499)	(220)	(725)	(753)
Nondesignated \| Foreign Exchange Contract \| Selling General And Administrative Expenses
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in Income (loss) on Derivatives	$ (66)	$ (19)	$ (86)	$ (19)

Leases - Supplemental balance s

Leases - Supplemental balance sheet information (Details) $ in Thousands	Sep. 30, 2019USD ($)
Leases
Operating lease right-of-use assets	$ 50,933
Operating lease asset location on balance sheet	us-gaap:OperatingLeaseRightOfUseAsset
Operating lease liabilities, current	$ 10,882
Operating lease liabilities current location on balance sheet	us-gaap:OperatingLeaseLiabilityCurrent
Operating lease liabilities, noncurrent	$ 44,535
Operating lease liabilities non current location on balance sheet	us-gaap:OperatingLeaseLiabilityNoncurrent
Total lease liabilities	$ 55,417
Minimum
Leases
Remaining lease terms, operating lease	1 year
Maximum
Leases
Remaining lease terms, operating lease	9 years

Leases - Components of lease ex

Leases - Components of lease expense (Details) - Selling General And Administrative Expenses - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Operating lease cost:
Operating lease cost	$ 3,866	$ 7,614
Variable lease cost	38	44
Short-term lease cost	180	269
Less: Sublease income	(353)	(517)
Total operating lease cost	$ 3,731	$ 7,410

Leases - Supplemental cash flow

Leases - Supplemental cash flow information (Details) $ in Thousands	6 Months Ended
	Sep. 30, 2019USD ($)
Leases
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases	$ 7,468
Right-of-use assets obtained in exchange for lease obligations - Operating leases	$ 3,038

Leases - Lease terms and discou

Leases - Lease terms and discount rates (Details)	Sep. 30, 2019
Leases
Weighted average remaining lease term (Years) - Operating leases	5 years 9 months
Weighted average discount rate - Operating) - Operating leases	7.46%

Leases - Lease maturities (Deta

Leases - Lease maturities (Details) $ in Thousands	Sep. 30, 2019USD ($)
Leases
Amount of operating lease that has yet to commence	$ 186
Term of lease	3 years
Operating Leases maturities:
2020- remainder of year	$ 7,348
2021	14,247
2022	13,012
2023	10,250
2024	6,229
2025 and thereafter	16,722
Total lease payments	67,808
Interest	(12,391)
Total lease liabilities	$ 55,417

Leases - Future minimum lease p

Leases - Future minimum lease payments (Details) $ in Thousands	Mar. 31, 2019USD ($)
Accounted for in accordance with its historic accounting policies under ASC Topic 840
2020	$ 14,685
2021	13,895
2022	12,663
2023	9,879
2024	5,686
2025 and thereafter	16,761
Total lease payments	$ 73,569

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue
Revenue	$ 328,501	$ 305,520	$ 647,525	$ 605,551
Time-and-materials
Disaggregation of Revenue
Revenue	199,365	184,170	389,280	363,396
Fixed-price
Disaggregation of Revenue
Revenue	129,136	121,350	258,245	242,155
Application outsourcing
Disaggregation of Revenue
Revenue	181,576	161,890	363,539	322,599
Consulting
Disaggregation of Revenue
Revenue	146,925	143,630	283,986	282,952
Banking financial services insurance
Disaggregation of Revenue
Revenue	193,336	192,071	383,308	380,809
Communications and Technology
Disaggregation of Revenue
Revenue	108,406	85,341	212,907	168,368
Media & Information and Other
Disaggregation of Revenue
Revenue	26,759	28,108	51,310	56,374
North America
Disaggregation of Revenue
Revenue	242,296	218,303	472,776	427,932
Europe
Disaggregation of Revenue
Revenue	57,024	60,393	120,104	127,129
Rest Of World
Disaggregation of Revenue
Revenue	$ 29,181	$ 26,824	$ 54,645	$ 50,490

Revenues - Receivable and Contr

Revenues - Receivable and Contract Balances (Details) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Significant movements in contract assets
Beginning balance	$ 18,538	$ 15,998
Revenues recognized during the period but not yet billed	44,957	63,983
Amounts billed	(41,152)	(64,231)
Other	(400)	(278)
Ending balance	21,943	15,472
Significant movements in deferred revenue balances
Beginning balance	6,421	7,908
Amounts billed but not yet recognized as revenues	4,867	4,918
Revenues recognized related to the opening balance of deferred revenue	(4,291)	(6,354)
Other	(110)	(297)
Ending balance	6,887	$ 6,175
Unamortized upfront payments for services	$ 36,856
Amortization period for upfront payments for services	5 years

Revenues - Remaining performanc

Revenues - Remaining performance obligation (Details) $ in Thousands	Sep. 30, 2019USD ($)
Remaining performance obligation
Aggregate amount of transaction price allocated to remaining performance obligations	$ 43,537
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-09-30
Remaining performance obligation
Remaining performance obligation, expected period of recognition	5 years

Series A Convertible Preferre_2

Series A Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	May 03, 2017	Sep. 30, 2019	Sep. 30, 2018
Series A Convertible Preferred Stock
Cash dividends paid		$ 2,092	$ 2,092
Series A Convertible Preferred Stock
Series A Convertible Preferred Stock
Direct and incremental expenses incurred	$ 1,154
Declared and accrued dividends		686	686
Cash dividends paid		$ 2,092	$ 2,092
Series A Convertible Preferred Stock \| After May 3, 2024
Series A Convertible Preferred Stock
Increase in preference dividend rate, per annum upon failure to repurchase (as a percent)		1.00%
Additional increase in preference dividend rate, per annum on each anniversary of the date that the Company is required to effect such repurchase (as a percent)		1.00%
Series A Convertible Preferred Stock \| After May 3, 2024 \| Maximum
Series A Convertible Preferred Stock
Dividend rate (as a percent)		6.875%
Series A Convertible Preferred Stock \| Orogen
Series A Convertible Preferred Stock
Sale of convertible preferred stock (in shares)	108,000
Shares issuable upon conversion (in shares)	3,000,000
Aggregate purchase price	$ 108,000
Conversion price (in dollars per share)	$ 36
Dividend rate (as a percent)	3.875%

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands	6 Months Ended
	Sep. 30, 2019USD ($)segment	Jun. 30, 2019USD ($)
Goodwill:
Number of operating segments \| segment	1
Changes in goodwill
Beginning balance	$ 279,543
Foreign currency translation adjustments	(2,482)
Ending balance	277,061
Acquisition costs and goodwill deductible for tax purposes	145,636
Acquisition costs and goodwill not deductible for tax purposes	144,328
Acquired certain assets of a small consulting company purchase price
Cash paid at closing		$ 4,251
Additional earn-out consideration		$ 4,453
Probable and estimable value of the contingent consideration	4,058
eTouch Systems Corp.
Acquired certain assets of a small consulting company purchase price
Cash paid at closing	4,000
Additional earn-out consideration	4,000
Probable and estimable value of the contingent consideration	$ 3,745

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible assets (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Sep. 30, 2019	Mar. 31, 2019
Intangible Assets
Weighted Average Useful Life	12 years 2 months 12 days	12 years 10 months 24 days
Gross Carrying Amount	$ 142,121	$ 126,920
Accumulated Amortization	40,791	34,480
Net Carrying Amount	$ 101,330	$ 92,440
Customer Relationships
Intangible Assets
Weighted Average Useful Life	12 years 4 months 24 days	13 years
Gross Carrying Amount	$ 139,684	$ 125,520
Accumulated Amortization	39,603	33,679
Net Carrying Amount	$ 100,081	$ 91,841
Trademarks
Intangible Assets
Weighted Average Useful Life	2 years	2 years
Gross Carrying Amount	$ 900	$ 900
Accumulated Amortization	679	431
Net Carrying Amount	$ 221	$ 469
Technology
Intangible Assets
Weighted Average Useful Life	5 years	5 years
Gross Carrying Amount	$ 500	$ 500
Accumulated Amortization	435	370
Net Carrying Amount	$ 65	$ 130
Other
Intangible Assets
Weighted Average Useful Life	5 years
Gross Carrying Amount	$ 1,037
Accumulated Amortization	74
Net Carrying Amount	$ 963

Income Taxes - Tax Act (Details

Income Taxes - Tax Act (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes - Tax Act (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Taxes
Effective tax (benefit) rate (as a percent)	40.00%	(25.80%)	41.90%	294.00%
United States of America
Income Taxes
Deferred tax asset	$ 25,308		$ 25,308
United Kingdom
Income Taxes
Deferred tax asset	$ 1,151		$ 1,151

Income Taxes - Income tax holid

Income Taxes - Income tax holiday (Details) - a	Sep. 20, 2019	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Taxes
Effective tax (benefit) rate (as a percent)		40.00%		(25.80%)	41.90%	294.00%
India
Income Taxes
Effective tax (benefit) rate (as a percent)	25.17%		34.90%
Hyderabad, India \| Indian Operations In Special Economic Zone
Income Taxes
Parcel of land (in acres)		6.3			6.3
Consecutive period of income tax exemption					10 years
Income tax benefits total eligibility period					15 years
L [K] \| Virtusa Private Limited
Income Taxes
Income tax exemption period					12 years

Income Taxes - Unrecognized tax

Income Taxes - Unrecognized tax benefits and other (Details) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Mar. 31, 2019
Income Taxes
Total liability for unrecognized tax benefits	$ 7,106		$ 6,744
Increase (decrease) in unrecognized tax benefits	362	$ (842)
Cash, cash equivalents, short-term investments and long-term investments available for distribution if not indefinitely reinvested	$ 172,349

Concentration of Revenue and _3

Concentration of Revenue and Assets - Geographic concentration (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Mar. 31, 2019
Concentration of Revenue and Assets
Revenue	$ 328,501	$ 305,520	$ 647,525	$ 605,551
Long-lived assets, net	489,803		489,803		$ 491,848
United States of America
Concentration of Revenue and Assets
Revenue	229,178	208,543	447,270	409,683
Long-lived assets, net	225,816		225,816		216,279
United Kingdom
Concentration of Revenue and Assets
Revenue	45,014	48,810	94,893	102,566
India
Concentration of Revenue and Assets
Long-lived assets, net	244,847		244,847		251,722
Rest Of World
Concentration of Revenue and Assets
Revenue	54,309	$ 48,167	105,362	$ 93,302
Long-lived assets, net	$ 19,140		$ 19,140		$ 23,847

Concentration of Revenue and _4

Concentration of Revenue and Assets - Revenue percentage (Details)	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Customer Concentration Risk \| Sales Revenue Net \| Customer One
Concentration of Revenue and Assets
Revenue from significant clients as a percentage of consolidated revenue	15.70%	18.00%	15.60%	17.60%

Debt - Credit Agreement (Detail

Debt - Credit Agreement (Details) - USD ($) $ in Thousands	Feb. 06, 2018	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018	Mar. 12, 2018	Feb. 05, 2018
Debt
Amount drawn down on credit facility				$ 32,000
Proceeds from Issuance of Debt			$ 27,500
eTouch
Debt
Anniversary payment term		18 months
etouch anniversay payment		$ 17,500
Credit Agreement \| JPM
Debt
Term of credit facility	5 years
Credit Agreement \| JPM \| London Interbank Offered Rate L I B O R
Debt
Interest rate (as a percent)					3.00%
Credit Agreement \| JPM \| Revolving credit facility
Debt
Maximum borrowing capacity under the credit agreement	$ 200,000
Amount drawn down on credit facility	55,000
Credit Agreement \| JPM \| Delayed-draw term loan
Debt
Amount under term loan	70,000
Required principal payments per quarter			$ 3,125
Frequency of required principal payments			quarterly
Interest rate (as a percent)		4.53%	4.53%
Credit Agreement \| JPM \| Delayed-draw term loan \| Polaris
Debt
Amount under term loan	180,000
Credit Agreement \| JPM \| Delayed-draw term loan \| eTouch
Debt
Amount under term loan					$ 70,000
Credit Agreement \| JPM \| Term loan facility
Debt
Amount under term loan	$ 180,000
Amount drawn down on credit facility		$ 27,500
Prior Credit Agreement \| JPM
Debt
Maximum borrowing capacity under the credit agreement						$ 300,000

Debt - Current portion of long-

Debt - Current portion of long-term debt (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Mar. 31, 2019
Current portion of long-term debt
Total	$ 14,532	$ 11,407
JPM
Current portion of long-term debt
Term loan - current maturities	15,625	12,500
Less: deferred financing costs, current	(1,093)	(1,093)
Total	$ 14,532	$ 11,407

Debt - Long-term debt, less cur

Debt - Long-term debt, less current portion (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Mar. 31, 2019
Less:
Total	$ 369,992	$ 351,320
JPM
Less:
Current maturities	(15,625)	(12,500)
Deferred financing costs, long-term	(2,633)	(3,180)
Total	369,992	351,320
Delayed-draw term loan \| JPM
Long-term debt, less current portion
Term loan and borrowings under revolving credit facility	258,750	237,500
Revolving credit facility \| JPM
Long-term debt, less current portion
Term loan and borrowings under revolving credit facility	$ 129,500	$ 129,500

Debt - Sale of accounts receiva

Debt - Sale of accounts receivable (Details) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2019	Oct. 15, 2019	Oct. 14, 2019
Subsequent Event \| Credit Agreement Amendment \| JPM \| Revolving credit facility
Debt
Maximum borrowing capacity under the credit agreement		$ 275,000	$ 200,000
U.K. Subsidiary
Debt
Receivables sold under the terms of the financing agreement	$ 16,198
Amounts due related to a financing agreement to sell certain accounts receivable balances	$ 0

Noncontrolling interest - (Deta

Noncontrolling interest - (Details) - Virtusa India Private Limited - Polaris $ in Thousands	Aug. 01, 2018	Feb. 12, 2018₨ / shares	Feb. 12, 2018USD ($)	Mar. 03, 2016USD ($)
Acquisitions
Shares acquired (as a percent)				51.70%
Cash paid at closing				$ 168,257
Ownership interest of diluted shares (as a percent)		93.00%	93.00%
Exit price (in INR per share) \| ₨ / shares		₨ 480
Expected amount of payment to settle the delisting offer			$ 145,000
Maximum period for public shareholders to tender shares after delisting	1 year

Noncontrolling interest - Polar

Noncontrolling interest - Polaris and Virtusa India (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Redeemable noncontrolling interest
Aggregate purchase price of shares of delisted entity			$ 8,675	$ 28,396
Reclassification of noncontrolling interest from temporary equity to permanent equity	$ 15,093
Noncontrolling interest	15,128		15,128
Net income attributable to noncontrolling interest	$ 146	$ 455	$ 332	$ 1,186
Virtusa India Private Limited \| Polaris
Redeemable noncontrolling interest
Shares held by noncontrolling interest shareholders of delisted entity (as a percent)	1.95%		1.95%
Virtusa India Private Limited \| Polaris
Redeemable noncontrolling interest
Number of shares purchased from stockholders of delisted subsidiary			1,263,117
Shares purchased from stockholders of delisted subsidiary (as a percent)			1.20%
Aggregate purchase price of shares of delisted entity			$ 8,675
Number of shares held by noncontrolling interest shareholders of delisted entity	2,009,365		2,009,365
Reclassification of noncontrolling interest from temporary equity to permanent equity			$ 15,093
Noncontrolling interest	$ 15,128		$ 15,128
Net income attributable to noncontrolling interest	146
Accumulated other comprehensive loss attributable to noncontrolling interest	$ 111

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($)	3 Months Ended				6 Months Ended
Accumulated Other Comprehensive Loss (Details) - USD ($)	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Changes in the components of accumulated other comprehensive income (loss)
Balance	$ 399,202,000	$ 390,774,000	$ 421,347,000	$ 436,083,000	$ 390,774,000	$ 436,083,000
Reclassifications from OCI to:
Other income	(564,000)		(819,000)		(928,000)	(1,443,000)
Revenue	(328,501,000)		(305,520,000)		(647,525,000)	(605,551,000)
Costs of revenue	238,584,000		216,346,000		473,319,000	432,827,000
Selling, general and administrative expenses	70,682,000		75,155,000		141,543,000	144,781,000
Interest expense	4,835,000		4,514,000		9,743,000	8,768,000
Less: comprehensive income (loss) attributable to noncontrolling interest, net of tax	35,000		200,000		365,000	(535,000)
Other comprehensive income (loss)	(8,585,000)	(1,194,000)		(14,526,000)
Other income (expense), net of tax	7,157,000		12,461,000		9,826,000	26,085,000
Comprehensive income (loss)			(10,492,000)
Balance	397,397,000	399,202,000	359,431,000	421,347,000	397,397,000	359,431,000
Investment securities, including noncontrolling interests
Changes in the components of accumulated other comprehensive income (loss)
OCI before reclassifications net of tax	(3,000)		(271,000)		(2,000)	(141,000)
Other Comprehensive Income (Loss), Tax
OCI before reclassifications, Tax	0		(2,000)		0	19,000
Investment securities, including noncontrolling interests \| Other income (expense)
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	0		(1,000)		0	21,000
Investment securities, including noncontrolling interests \| Reclassification Out Of Accumulated Other Comprehensive Income
Reclassifications from OCI to:
Other income			(181,000)		2,000	(174,000)
Investment securities, noncontrolling interests
Reclassifications from OCI to:
Less : Noncontrolling interests, net of tax			28,000			21,000
Other Comprehensive Income (Loss), Tax
Noncontrolling interests, Tax	0		15,000		0	11
Accumulated Net Unrealized Investment Gain Loss
Changes in the components of accumulated other comprehensive income (loss)
Balance	15,000	12,000	199,000	69,000	12,000	69,000
Reclassifications from OCI to:
Comprehensive income (loss)	(3,000)		(424,000)			(294,000)
Balance	12,000	15,000	(225,000)	199,000	12,000	(225,000)
Other Comprehensive Income (Loss), Tax
Comprehensive income (loss), Tax	0		12,000		0	51,000
Currency Translation Adjustments, including noncontrolling interests
Changes in the components of accumulated other comprehensive income (loss)
OCI before reclassifications net of tax	(6,355,000)		(7,071,000)		(6,736,000)	(17,724,000)
Reclassifications from OCI to:
Less : Noncontrolling interests, net of tax	111,000		230,000		(26,000)	1,613,000
Accumulated Translation Adjustment [Member]
Changes in the components of accumulated other comprehensive income (loss)
Balance	(57,872,000)	(57,354,000)	(50,477,000)	(41,207,000)	(57,354,000)	(41,207,000)
Reclassifications from OCI to:
Comprehensive income (loss)	(6,244,000)		(6,841,000)		(6,762,000)	(16,111,000)
Balance	(64,116,000)	(57,872,000)	(57,318,000)	(50,477,000)	(64,116,000)	(57,318,000)
Cash Flow Hedges, including noncontrolling interests
Changes in the components of accumulated other comprehensive income (loss)
OCI before reclassifications net of tax	(46,000)		(4,440,000)		(247,000)	(7,946,000)
Other Comprehensive Income (Loss), Tax
OCI before reclassifications, Tax	(73,000)		(1,677,000)		(283,000)	(3,189,000)
Cash Flow Hedges, including noncontrolling interests \| Revenue
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	0		282,000		7,000	406,000
Cash Flow Hedges, including noncontrolling interests \| Costs of revenue
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	(240,000)		163,000		(316,000)	89,000
Cash Flow Hedges, including noncontrolling interests \| Selling General And Administrative Expenses
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	(104,000)		85,000		(141,000)	45,000
Cash Flow Hedges, including noncontrolling interests \| Interest expenses
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	(26,000)		(61,000)		(81,000)	(114,000)
Cash Flow Hedges, including noncontrolling interests \| Reclassification Out Of Accumulated Other Comprehensive Income
Reclassifications from OCI to:
Revenue			525,000		11,000	757,000
Costs of revenue	(879,000)		496,000		(1,208,000)	252,000
Selling, general and administrative expenses	(379,000)		258,000		(541,000)	128,000
Interest expense	(75,000)		(176,000)		(228,000)	(329,000)
Cash Flow Hedges, noncontrolling interests
Reclassifications from OCI to:
Less : Noncontrolling interests, net of tax			(11,000)		(1,000)	78,000
Other Comprehensive Income (Loss), Tax
Noncontrolling interests, Tax	0		(6,000)		0	42,000
Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges
Changes in the components of accumulated other comprehensive income (loss)
Balance	(796,000)	39,000	(1,831,000)	1,881,000	39,000	1,881,000
Reclassifications from OCI to:
Comprehensive income (loss)	(1,379,000)		(3,348,000)		(2,214,000)	(7,060,000)
Balance	(2,175,000)	(796,000)	(5,179,000)	(1,831,000)	(2,175,000)	(5,179,000)
Other Comprehensive Income (Loss), Tax
Comprehensive income (loss), Tax	(443,000)		(1,214,000)		(814,000)	(2,721,000)
Benefit plans, including noncontrolling interests
Changes in the components of accumulated other comprehensive income (loss)
OCI before reclassifications net of tax	(1,034,000)		(32,000)		(911,000)	(352,000)
Reclassifications from OCI to:
Other adjustments	75,000		93,000		72,000	151,000
Other Comprehensive Income (Loss), Tax
OCI before reclassifications, Tax	0		29,000		0	348,000
Benefit plans, prior service credit (cost), including noncontrolling interests \| Other income (expense)
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	0		0		0	0
Benefit plans, prior service credit (cost), including noncontrolling interests \| Reclassification Out Of Accumulated Other Comprehensive Income
Reclassifications from OCI to:
Other income (expense), net of tax	7,000		14,000		13,000	28,000
Benefit plans, net actuarial gain (loss), including noncontrolling interest \| Reclassification Out Of Accumulated Other Comprehensive Income
Reclassifications from OCI to:
Other income (expense), net of tax	104,000		38,000		140,000	77,000
Benefit plans, noncontrolling interests
Reclassifications from OCI to:
Less : Noncontrolling interests, net of tax			8,000		(6,000)	9,000
Other Comprehensive Income (Loss), Tax
Noncontrolling interests, Tax	0		0		0	0
Accumulated Defined Benefit Plans Adjustment
Changes in the components of accumulated other comprehensive income (loss)
Balance	(1,928,000)	(2,084,000)	(1,632,000)	(1,424,000)	(2,084,000)	(1,424,000)
Reclassifications from OCI to:
Comprehensive income (loss)	(848,000)		121,000		(692,000)	(87,000)
Balance	(2,776,000)	(1,928,000)	(1,511,000)	(1,632,000)	(2,776,000)	(1,511,000)
Other Comprehensive Income (Loss), Tax
Comprehensive income (loss), Tax	0		29,000		0	348,000
Benefit plans, net actuarial gain (loss) \| Other income (expense)
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	0		0		0	0
Accumulated Other Comprehensive Income
Changes in the components of accumulated other comprehensive income (loss)
Balance	(60,581,000)	(59,387,000)	(53,741,000)	(40,681,000)	(59,387,000)	(40,681,000)
Reclassifications from OCI to:
Other comprehensive income (loss)				(13,060,000)
Comprehensive income (loss)	(8,474,000)	(1,194,000)	(10,492,000)
Balance	$ (69,055,000)	$ (60,581,000)	$ (64,233,000)	$ (53,741,000)	$ (69,055,000)	$ (64,233,000)

Treasury Stock (Details)

Treasury Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	Aug. 05, 2019	Sep. 30, 2019
Treasury Stock
Common stock repurchased (in shares)		505,565
Common stock at a weighted average price (in dollars per share)		$ 36.93
Aggregate purchase price		$ 18,680
Share repurchase program, August 5, 2019
Treasury Stock
Amount authorized	$ 30,000
Number of months from the approval date	12 months

Commitments and Contingencies a

Commitments and Contingencies and Guarantees (Details) $ in Thousands	Sep. 30, 2019USD ($)
Commitments and Contingencies.
Estimated amount of liability	$ 7,500