Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 05, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'EXLS | ' |
Entity Registrant Name | 'ExlService Holdings, Inc. | ' |
Entity Central Index Key | '0001297989 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 32,934,882 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $132,393 | $103,037 |
Short-term investments | 6,154 | 6,137 |
Restricted cash | 527 | 573 |
Accounts receivable, net | 74,054 | 72,443 |
Prepaid expenses | 3,303 | 5,072 |
Deferred tax assets, net | 6,353 | 7,460 |
Advance income tax, net | 2,717 | 4,317 |
Other current assets | 12,146 | 7,065 |
Total current assets | 237,647 | 206,104 |
Fixed assets, net | 31,690 | 39,356 |
Restricted cash | 3,426 | 3,752 |
Deferred tax assets, net | 13,978 | 14,123 |
Intangible assets, net | 35,621 | 40,711 |
Goodwill | 107,058 | 110,948 |
Other assets | 17,348 | 20,860 |
Total assets | 446,768 | 435,854 |
Current liabilities: | ' | ' |
Accounts payable | 2,197 | 3,604 |
Deferred revenue | 5,395 | 7,922 |
Accrued employee cost | 25,894 | 29,393 |
Accrued expenses and other current liabilities | 32,484 | 31,737 |
Current portion of capital lease obligations | 1,129 | 1,685 |
Total current liabilities | 67,099 | 74,341 |
Capital lease obligations, less current portion | 1,533 | 2,679 |
Non-current liabilities | 18,330 | 14,317 |
Total liabilities | 86,962 | 91,337 |
Commitments and contingencies (See Note 15) | ' | ' |
Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, $0.001 par value; 100,000,000 shares authorized, 33,249,047 shares issued and 32,899,767 shares outstanding as of September 30, 2013 and 32,540,082 shares issued and 32,203,820 shares outstanding as of December 31, 2012 | 33 | 33 |
Additional paid-in-capital | 209,344 | 195,248 |
Retained earnings | 221,120 | 188,882 |
Accumulated other comprehensive loss | -67,278 | -36,647 |
Total stockholders' equity including shares held in treasury | 363,219 | 347,516 |
Less: 349,280 shares as of September 30, 2013 and 336,262 shares as of December 31, 2012, held in treasury, at cost | -3,413 | -3,024 |
ExlService Holdings, Inc. stockholders' equity | 359,806 | 344,492 |
Non-controlling interest | ' | 25 |
Total stockholders' equity | 359,806 | 344,517 |
Total liabilities and stockholders' equity | $446,768 | $435,854 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Statement Of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 15,000,000 | 15,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 33,249,047 | 32,540,082 |
Common stock, shares outstanding | 32,899,767 | 32,203,820 |
Treasury stock, shares | 349,280 | 336,262 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenues | $122,315 | $112,639 | $354,329 | $325,277 |
Cost of revenues (exclusive of depreciation and amortization) | 72,049 | 68,650 | 218,892 | 201,367 |
Gross profit | 50,266 | 43,989 | 135,437 | 123,910 |
Operating expenses: | ' | ' | ' | ' |
General and administrative expenses | 15,791 | 13,777 | 44,265 | 40,982 |
Selling and marketing expenses | 8,993 | 7,009 | 27,884 | 22,502 |
Depreciation and amortization | 5,969 | 6,333 | 18,843 | 18,732 |
Total operating expenses | 30,753 | 27,119 | 90,992 | 82,216 |
Income from operations | 19,513 | 16,870 | 44,445 | 41,694 |
Other income/(expense): | ' | ' | ' | ' |
Foreign exchange loss | -2,508 | -1,345 | -3,126 | -2,367 |
Interest and other income, net | 465 | 507 | 1,761 | 1,321 |
Income before income taxes | 17,470 | 16,032 | 43,080 | 40,648 |
Income tax provision | 4,230 | 4,329 | 10,842 | 10,975 |
Net income | $13,240 | $11,703 | $32,238 | $29,673 |
Earnings per share: | ' | ' | ' | ' |
Basic | $0.40 | $0.36 | $0.98 | $0.93 |
Diluted | $0.39 | $0.35 | $0.95 | $0.90 |
Weighted-average number of shares used in computing earnings per share: | ' | ' | ' | ' |
Basic | 32,907,281 | 32,154,001 | 32,737,267 | 31,857,909 |
Diluted | 33,955,445 | 33,283,854 | 33,859,525 | 33,055,857 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' | ||||
Net income | $13,240 | $11,703 | $32,238 | $29,673 | ||||
Other comprehensive (loss)/gain: | ' | ' | ' | ' | ||||
Unrealized (loss)/gain on effective cash flow hedges, net of taxes of ($1,359), $2,468, ($3,048) and $978, respectively | -4,851 | 7,512 | -12,138 | 3,881 | ||||
Foreign currency translation adjustment | -7,588 | 8,035 | -21,194 | 1,580 | ||||
Reclassification adjustments | ' | ' | ' | ' | ||||
Realized loss on cash flow hedges, net of taxes of $422, $460, $1,211 and $1,892, respectively | 910 | [1] | 1,558 | [1] | 2,619 | [1] | 5,389 | [1] |
Retirement benefits, net of taxes of $7, $6, $24 and $20, respectively | 25 | [2] | 24 | [2] | 82 | [2] | 74 | [2] |
Total other comprehensive (loss)/gain | -11,504 | 17,129 | -30,631 | 10,924 | ||||
Total comprehensive income | $1,736 | $28,832 | $1,607 | $40,597 | ||||
[1] | These are reclassified to net income and are included in the foreign exchange loss in the unaudited consolidated statements of income. See Note 7 to the unaudited consolidated financial statements. | |||||||
[2] | These are reclassified to net income and are included in the computation of net periodic pension costs in the unaudited consolidated statements of income. See Note 10 to the unaudited consolidated financial statements. |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' | ||||
Taxes on unrealized (loss)/gain on cash flow hedges | ($1,359) | $2,468 | ($3,048) | $978 | ||||
Taxes on realized loss on cash flow hedges | 422 | [1] | 460 | [1] | 1,211 | [1] | 1,892 | [1] |
Retirement benefits, taxes | $7 | [2] | $6 | [2] | $24 | [2] | $20 | [2] |
[1] | These are reclassified to net income and are included in the foreign exchange loss in the unaudited consolidated statements of income. See Note 7 to the unaudited consolidated financial statements. | |||||||
[2] | These are reclassified to net income and are included in the computation of net periodic pension costs in the unaudited consolidated statements of income. See Note 10 to the unaudited consolidated financial statements. |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOW (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $32,238 | $29,673 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 18,843 | 18,732 |
Stock-based compensation expense | 9,472 | 7,329 |
Amortization of debt issuance cost | 114 | 114 |
Non-employee stock options | ' | 32 |
Unrealized foreign exchange (gain)/loss | -7,792 | 555 |
Loss on sale of a business unit | 190 | ' |
Deferred income taxes | 1,829 | 2,058 |
Non-controlling interest | 2 | 1 |
Change in operating assets and liabilities: | ' | ' |
Restricted cash | -68 | -122 |
Accounts receivable | -1,459 | -9,709 |
Prepaid expenses and other current assets | -3,962 | -4,717 |
Accounts payable | -1,163 | -210 |
Deferred revenue | -2,521 | -3,117 |
Accrued employee cost | -3,343 | -1,448 |
Accrued expenses and other liabilities | -1,853 | -447 |
Advance income tax, net | 2,474 | 2,775 |
Other assets | 1,229 | 1,857 |
Net cash provided by operating activities | 44,230 | 43,356 |
Cash flows from investing activities: | ' | ' |
Purchase of fixed assets | -11,735 | -17,008 |
Business acquisition | -1,183 | ' |
Purchase of short-term investments | -1,692 | -9,678 |
Proceeds from redemption of short-term investments | 1,016 | 10,690 |
Net cash used for investing activities | -13,594 | -15,996 |
Cash flows from financing activities: | ' | ' |
Principal payments on capital lease obligations | -1,230 | -1,260 |
Payment for purchase of non-controlling interest | -27 | ' |
Acquisition of treasury stock | -389 | -331 |
Proceeds from exercise of stock options | 4,624 | 8,869 |
Net cash provided by financing activities | 2,978 | 7,278 |
Effect of exchange rate changes on cash and cash equivalents | -4,258 | 1,548 |
Net increase in cash and cash equivalents | 29,356 | 36,186 |
Cash and cash equivalents, beginning of period | 103,037 | 82,393 |
Cash and cash equivalents, end of period | $132,393 | $118,579 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Organization and Basis of Presentation | ' |
1. Organization and Basis of Presentation | |
Organization | |
ExlService Holdings, Inc. (“ExlService Holdings”) is organized as a corporation under the laws of the State of Delaware. ExlService Holdings, together with its subsidiaries (collectively, the “Company”), is a leading provider of outsourcing and transformation services. The Company’s clients are located principally in the U.S. and the U.K. | |
Basis of Presentation | |
The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for annual financial statements and therefore should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012. | |
The unaudited interim consolidated financial statements reflect all adjustments (of a normal and recurring nature) that management considers necessary for a fair presentation of such statements for the interim periods presented. The unaudited consolidated statements of income for the interim periods presented are not necessarily indicative of the results for the full year or for any subsequent period. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Summary of Significant Accounting Policies | ' | ||||||||
2. Summary of Significant Accounting Policies | |||||||||
Principles of Consolidation | |||||||||
The accompanying unaudited consolidated financial statements include the financial statements of ExlService Holdings and all of its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | |||||||||
The non-controlling interest as on December 31, 2012 represented the minority partner’s interest in the operation of exl Service.com (India) Private Limited (“Exl India”) and the profits associated with the minority partner’s interest in those operations in the consolidated balance sheet and the consolidated statements of income. During the three months ended September 30, 2013, the Company purchased the entire non-controlling interest from the minority partner for an insignificant amount. The non-controlling interest expenses in these operations for the three and nine months ended September 30, 2013 and 2012 were insignificant and are included under general and administrative expenses in the unaudited consolidated statements of income. | |||||||||
Use of Estimates | |||||||||
The preparation of the unaudited consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the unaudited consolidated statements of income during the reporting period. Estimates are based upon management’s best assessment of the current business environment. Actual results could differ from those estimates. The significant estimates and assumptions that affect the financial statements include, but are not limited to, allowance for doubtful receivables, service tax receivables, assets and obligations related to employee benefit plans, deferred tax valuation allowances, income-tax uncertainties and other contingencies, valuation of derivative financial instruments, stock-based compensation expense, depreciation and amortization periods, purchase price allocation, recoverability of long-term assets including goodwill and intangibles, and estimates to complete fixed price contracts. | |||||||||
Recent Accounting Pronouncements | |||||||||
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (ASU) No. 2011-11, “Disclosures about Offsetting Assets and Liabilities,” (ASU No. 2011-11) which is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. This authoritative guidance was issued to enhance disclosure requirements on offsetting financial assets and liabilities. The new rules require companies to disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position, as well as instruments and transactions subject to a netting arrangement. In January 2013, the FASB further issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” to address implementation issues surrounding the scope of ASU No. 2011-11 and to clarify the scope of the offsetting disclosures and address any unintended consequences. The adoption of this guidance from January 2013 did not have a material impact on the Company’s unaudited consolidated financial statements. | |||||||||
In July 2012, the FASB issued ASU No. 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment,” (ASU No. 2012-02) which simplifies the guidance for testing the impairment of indefinite-lived intangible assets other than goodwill. Examples of intangible assets subject to the guidance include indefinite-lived trademarks, licenses and distribution rights. The amendment provides the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. Under the option, an entity is no longer required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. This amendment is effective for fiscal years beginning after September 15, 2012, with early adoption permitted. The adoption of this standard did not have a material impact on the Company’s unaudited consolidated financial statements. | |||||||||
In October 2012, the FASB issued ASU No. 2012-04, “Technical Corrections and Improvements,” (ASU No. 2012-04) which makes technical corrections and improvements to a variety of topics in the FASB Accounting Standards Codification (the “Codification”). The changes include source literature amendments, guidance clarification, reference corrections and relocated guidance. The ASU also includes conforming amendments to the Codification to reflect ASC 820’s fair value measurement and disclosure requirements. The adoption of this standard effective January 1, 2013 did not have a material impact on the Company’s unaudited consolidated financial statements. | |||||||||
In February 2013, the FASB issued ASU No. 2013-02, “Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income” (ASU No. 2013-02). Under ASU No. 2013-02, an entity is required to provide information about the amounts reclassified out of accumulated other comprehensive income (“AOCI”) by component. In addition, an entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income, but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. ASU No. 2013-02 does not change the current requirements for reporting net income or other comprehensive income in the financial statements. ASU No. 2013-02 became effective from January 1, 2013 and the new guidance did not have any material impact on the Company’s unaudited consolidated financial statements. | |||||||||
In March 2013, the FASB issued ASU No. 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity” (ASU 2013-05). It applies to the release of the currency translation adjustment into net income when a parent either sells a part of all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. For public entities, the amendments are effective for fiscal years and interim reporting periods beginning after December 15, 2013. The Company is currently assessing the impact, if any, on its unaudited consolidated financial statements. | |||||||||
In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (ASU No. 2013-11). The provisions of the rule require an unrecognized tax benefit to be presented as a reduction to a deferred tax asset in the financial statements for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward except in circumstances when the carryforward or tax loss is not available at the reporting date under the tax laws of the applicable jurisdiction to settle any additional income taxes or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purposes. When those circumstances exist, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The new financial statement presentation provisions relating to this update are prospective and effective for interim and annual periods beginning after December 15, 2013, with early adoption permitted. The Company is currently assessing the impact, if any, on its unaudited consolidated financial statements. | |||||||||
Accrued expenses and other current liabilities | |||||||||
Accrued expenses and other current liabilities consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Accrued expenses | $ | 16,501 | $ | 20,134 | |||||
Derivative instruments | 11,680 | 6,403 | |||||||
Other current liabilities | 4,303 | 5,200 | |||||||
Accrued expenses and other current liabilities | $ | 32,484 | $ | 31,737 | |||||
Non-current liabilities | |||||||||
Non-current liabilities consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Derivative instruments | $ | 8,084 | $ | 3,458 | |||||
Unrecognized tax benefits | 2,513 | 2,680 | |||||||
Deferred rent | 4,986 | 4,631 | |||||||
Retirement benefits | 2,594 | 2,380 | |||||||
Other non-current liabilities | 153 | 1,168 | |||||||
Non-current liabilities | $ | 18,330 | $ | 14,317 | |||||
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
3. Earnings Per Share | |||||||||||||||||
Basic earnings per share is computed by dividing net income to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share is computed using the weighted average number of common shares plus the potentially dilutive effect of common stock equivalents issued and outstanding at the reporting date, using the treasury stock method. Stock options, restricted stock and restricted stock units that are anti-dilutive are excluded from the computation of weighted average shares outstanding. | |||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerators: | |||||||||||||||||
Net income | $ | 13,240 | $ | 11,703 | $ | 32,238 | $ | 29,673 | |||||||||
Denominators: | |||||||||||||||||
Basic weighted average common shares outstanding | 32,907,281 | 32,154,001 | 32,737,267 | 31,857,909 | |||||||||||||
Dilutive effect of share based awards | 1,048,164 | 1,129,853 | 1,122,258 | 1,197,948 | |||||||||||||
Diluted weighted average common shares outstanding | 33,955,445 | 33,283,854 | 33,859,525 | 33,055,857 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.4 | $ | 0.36 | $ | 0.98 | $ | 0.93 | |||||||||
Diluted | $ | 0.39 | $ | 0.35 | $ | 0.95 | $ | 0.9 | |||||||||
Weighted average common shares considered anti- dilutive in computing diluted earnings per share | 219,189 | 412,873 | 242,269 | 430,309 |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||||
4. Segment Information | |||||||||||||||||||||||||
The Company is organized around its outsourcing services and transformation services segments. The Company’s October 2012 acquisition of Landacorp, Inc. (“Landacorp”) is classified within the outsourcing services segment. See note 5 for further details regarding the acquisition of Landacorp (the “Landacorp Acquisition”). | |||||||||||||||||||||||||
The chief operating decision maker generally reviews financial information at the consolidated statement of income level but does not review any information except for revenues and cost of revenues of the individual segments. Therefore, the Company does not allocate or evaluate operating expenses, interest expense or income, capital expenditures, and income taxes to its operating segments. Consequently, it is not practical to show assets, capital expenditures, depreciation or amortization by segment. | |||||||||||||||||||||||||
Revenues and cost of revenues for each of the three months ended September 30, 2013 and 2012 for the Company’s outsourcing services and transformation services segments, respectively, are as follows: | |||||||||||||||||||||||||
Three months ended September 30, 2013 | Three months ended September 30, 2012 | ||||||||||||||||||||||||
Outsourcing | Transformation | Total | Outsourcing | Transformation | Total | ||||||||||||||||||||
Services | Services | Services | Services | ||||||||||||||||||||||
Revenues | $ | 99,672 | $ | 22,643 | $ | 122,315 | $ | 91,984 | $ | 20,655 | $ | 112,639 | |||||||||||||
Cost of revenues (exclusive of depreciation and amortization) | 56,531 | 15,518 | 72,049 | 55,658 | 12,992 | 68,650 | |||||||||||||||||||
Gross profit | $ | 43,141 | $ | 7,125 | $ | 50,266 | $ | 36,326 | $ | 7,663 | $ | 43,989 | |||||||||||||
Operating expenses | 30,753 | 27,119 | |||||||||||||||||||||||
Other income/(expense) | (2,043 | ) | (838 | ) | |||||||||||||||||||||
Income tax provision | 4,230 | 4,329 | |||||||||||||||||||||||
Net income | $ | 13,240 | $ | 11,703 | |||||||||||||||||||||
Revenues and cost of revenues for each of the nine months ended September 30, 2013 and 2012 for the Company’s outsourcing services and transformation services segments, respectively, are as follows: | |||||||||||||||||||||||||
Nine months ended September 30, 2013 | Nine months ended September 30, 2012 | ||||||||||||||||||||||||
Outsourcing | Transformation | Total | Outsourcing | Transformation | Total | ||||||||||||||||||||
Services | Services | Services | Services | ||||||||||||||||||||||
Revenues | $ | 294,573 | $ | 59,756 | $ | 354,329 | $ | 270,640 | $ | 54,637 | $ | 325,277 | |||||||||||||
Cost of revenues (exclusive of depreciation and amortization) | 175,490 | 43,402 | 218,892 | 166,637 | 34,730 | 201,367 | |||||||||||||||||||
Gross profit | $ | 119,083 | $ | 16,354 | $ | 135,437 | $ | 104,003 | $ | 19,907 | $ | 123,910 | |||||||||||||
Operating expenses | 90,992 | 82,216 | |||||||||||||||||||||||
Other income/(expense) | (1,365 | ) | (1,046 | ) | |||||||||||||||||||||
Income tax provision | 10,842 | 10,975 | |||||||||||||||||||||||
Net income | $ | 32,238 | $ | 29,673 | |||||||||||||||||||||
Business_Combinations_Goodwill
Business Combinations, Goodwill and Intangible Assets | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Business Combinations, Goodwill and Intangible Assets | ' | ||||||||||||
5. Business Combinations, Goodwill and Intangible Assets | |||||||||||||
On October 12, 2012, the Company acquired Landacorp, a leading provider of healthcare solutions and technology. Landacorp has more than 50 million lives under management on its software platforms and has developed services and technology solutions that share vital clinical data with payers, providers, plan participants and accountable care organizations. The Landacorp Acquisition furthers the Company’s strategic intent to continue investing in the healthcare domain and strengthen its capabilities to serve the U.S. healthcare industry and continue to invest in building processes, analytics and platform capabilities in its focused verticals. Accordingly, the Company paid a premium for the acquisition which is being reflected in the goodwill recognized from the purchase price allocation of the total purchase consideration paid by the Company. | |||||||||||||
The total purchase price of the acquisition is as follows: | |||||||||||||
Enterprise Value | $ | 37,500 | |||||||||||
Add: Working capital adjustments* | 1,183 | ||||||||||||
Total purchase price | $ | 38,683 | |||||||||||
* | Paid in January 2013. | ||||||||||||
After the December 31, 2012 consolidated financial statements were issued, the Company received further information including a revised valuation report from a third party valuation firm with respect to the Landacorp Acquisition. After considering the results of the additional information, the Company revised its estimates related to certain of its acquired intangibles and other assets as of the date of acquisition as follows: | |||||||||||||
Revised | Initial | ||||||||||||
Allocation | Allocation | ||||||||||||
Assets | |||||||||||||
Identifiable intangible assets: | |||||||||||||
Customer relationships | $ | 5,664 | $ | 7,095 | |||||||||
Developed technology | 3,881 | 5,313 | |||||||||||
Trade names | 601 | 549 | |||||||||||
Net tangible assets | 9,261 | 10,727 | |||||||||||
Goodwill | 19,276 | 14,999 | |||||||||||
Total purchase price | $ | 38,683 | $ | 38,683 | |||||||||
This revision did not have a material impact on the Company’s consolidated earnings for the year ended December 31, 2012. As required by the accounting guidance for business combinations, this adjustment was recorded by the Company retrospectively as of the acquisition date resulting in changes to the preliminary amounts as set forth in the Company’s December 31, 2012 consolidated balance sheet included in its Annual Report on Form 10-K for the year ended December 31, 2012. | |||||||||||||
Goodwill | |||||||||||||
The following table sets forth details of the Company’s goodwill balance as of September 30, 2013: | |||||||||||||
Outsourcing | Transformation | Total | |||||||||||
Services | Services | ||||||||||||
Balance at January 1, 2012 | $ | 75,502 | $ | 16,785 | $ | 92,287 | |||||||
Goodwill arising from Landacorp acquisition | 19,276 | — | 19,276 | ||||||||||
Purchase accounting adjustments(1) | 422 | — | 422 | ||||||||||
Currency translation adjustments | (1,037 | ) | — | (1,037 | ) | ||||||||
Balance at December 31, 2012 | $ | 94,163 | $ | 16,785 | $ | 110,948 | |||||||
Currency translation adjustments | (3,640 | ) | — | (3,640 | ) | ||||||||
Allocation on sale of a business unit(2) | (250 | ) | — | (250 | ) | ||||||||
Balance at September 30, 2013 | $ | 90,273 | $ | 16,785 | $ | 107,058 | |||||||
-1 | Relates to the acquisition of Business Process Outsourcing Inc. (“OPI”) on May 31, 2011 (the “OPI Acquisition”) pertaining to service tax receivables included under “other current assets” in the consolidated balance sheet as of December 31, 2011. | ||||||||||||
-2 | Relates to the sale of a business unit (acquired with the OPI acquisition) during the three months ended September 30, 2013. The net loss recognized from the sale of this business unit is $190 and is included under “other income/ (expense)” in the consolidated statements of income for the three months and nine months ended September 30, 2013. | ||||||||||||
Intangible Assets | |||||||||||||
Information regarding the Company’s intangible assets is as follows: | |||||||||||||
As of September 30, 2013 | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | Carrying | |||||||||||
Amount | Amount | ||||||||||||
Customer relationships | $ | 38,602 | $ | (11,107 | ) | $ | 27,495 | ||||||
Leasehold benefits | 2,947 | (1,366 | ) | 1,581 | |||||||||
Developed technology | 6,014 | (1,266 | ) | 4,748 | |||||||||
Non-compete agreements | 1,316 | (1,316 | ) | — | |||||||||
Trade names and trademarks | 3,322 | (1,525 | ) | 1,797 | |||||||||
$ | 52,201 | $ | (16,580 | ) | $ | 35,621 | |||||||
As of December 31, 2012 | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | Carrying | |||||||||||
Amount | Amount | ||||||||||||
Customer relationships | $ | 38,728 | $ | (7,832 | ) | $ | 30,896 | ||||||
Leasehold benefits | 3,355 | (1,213 | ) | 2,142 | |||||||||
Developed technology | 6,013 | (683 | ) | 5,330 | |||||||||
Non-compete agreements | 1,316 | (1,316 | ) | — | |||||||||
Trade names and trademarks | 3,322 | (979 | ) | 2,343 | |||||||||
$ | 52,734 | $ | (12,023 | ) | $ | 40,711 | |||||||
Amortization expense for the three months ended September 30, 2013 and 2012 was $1,534 and $1,324, respectively. Amortization expense for the nine months ended September 30, 2013 and 2012 was $4,764 and $4,083, respectively. The weighted average life of intangible assets was 8.8 years for customer relationships, 6.8 years for leasehold benefits, 8.0 years for developed technology, 1.5 years for non-compete agreements and 3.5 years for trade names and trademarks excluding indefinite life trade names and trademarks. The Company had $900 of indefinite life trade names and trademarks as of September 30, 2013 and December 31, 2012. | |||||||||||||
Estimated amortization of intangible assets during the year ending September 30, | |||||||||||||
2014 | $ | 5,938 | |||||||||||
2015 | $ | 5,538 | |||||||||||
2016 | $ | 5,538 | |||||||||||
2017 | $ | 5,530 | |||||||||||
2018 | $ | 5,413 | |||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
6. Fair Value Measurements | |||||||||||||||||
Assets and Liabilities Measured at Fair Value | |||||||||||||||||
The following table sets forth the Company’s assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2013 and December 31, 2012. The table excludes short-term investments, accounts receivable, accounts payable and accrued expenses for which fair values approximate their carrying amounts. | |||||||||||||||||
As of September 30, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | |||||||||||||||||
Money market and mutual funds | $ | 96,781 | $ | — | $ | — | $ | 96,781 | |||||||||
Derivative financial instruments | — | 603 | — | 603 | |||||||||||||
Total | $ | 96,781 | $ | 603 | $ | — | $ | 97,384 | |||||||||
Liabilities | |||||||||||||||||
Derivative financial instruments | $ | — | $ | 19,764 | $ | — | $ | 19,764 | |||||||||
Total | $ | — | $ | 19,764 | $ | — | $ | 19,764 | |||||||||
As of December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | |||||||||||||||||
Money market and mutual funds | $ | 64,766 | $ | — | $ | — | $ | 64,766 | |||||||||
Derivative financial instruments | — | 1,730 | — | 1,730 | |||||||||||||
Total | $ | 64,766 | $ | 1,730 | $ | — | $ | 66,496 | |||||||||
Liabilities | |||||||||||||||||
Derivative financial instruments | — | 9,861 | — | $ | 9,861 | ||||||||||||
Total | $ | — | $ | 9,861 | $ | — | $ | 9,861 | |||||||||
Derivative Financial Instruments | |||||||||||||||||
The Company’s derivative financial instruments consist of foreign currency forward exchange contracts. Fair values for derivative financial instruments are based on independent sources including highly rated financial institutions and are classified as Level 2. See Note 7 for further details on Derivatives and Hedge Accounting. |
Derivatives_and_Hedge_Accounti
Derivatives and Hedge Accounting | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Derivatives and Hedge Accounting | ' | ||||||||||||||||||||||||||||||||
7. Derivatives and Hedge Accounting | |||||||||||||||||||||||||||||||||
The Company uses derivative instruments and hedging transactions to mitigate exposure to foreign currency fluctuation risks associated with forecasted transactions denominated in certain foreign currencies and to minimize earnings and cash flow volatility associated with changes in foreign currency exchange rates. The Company’s derivative financial instruments are largely forward foreign exchange contracts that are designated effective and that qualify as cash flow hedges under ASC topic 815, “Derivatives and hedging” (ASC No. 815). The Company also uses derivatives consisting of foreign currency exchange contracts not designated as hedging instruments under ASC No. 815 to hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the Company’s functional currency. The Company’s primary exchange rate exposure is with the Indian Rupee, U.K. pound sterling and the Philippine peso. The Company also has exposure in Czech koruna and other local currencies in which it operates. | |||||||||||||||||||||||||||||||||
The Company had outstanding foreign exchange contracts totaling $262,454 and GBP 11,800 as of September 30, 2013 and totaling $221,255 and GBP 11,544 as of December 31, 2012. The Company estimates that approximately $11,430 of net derivative losses included in AOCI could be reclassified into earnings within the next twelve months based on exchange rates prevailing as of September 30, 2013. As of September 30, 2013, the maximum outstanding term of derivative instruments that hedge forecasted transactions was forty-five months. | |||||||||||||||||||||||||||||||||
The Company evaluates the hedge effectiveness at the time a contract is entered into as well as on an ongoing basis. If during this time a contract is deemed ineffective, the change in the fair value is recorded in the unaudited consolidated statements of income and is included in foreign exchange loss. For hedging positions that are discontinued because the forecasted transaction is not expected to occur by the end of the originally specified period, any related derivative amounts recorded in equity are reclassified to earnings. No significant amounts of gains or losses were reclassified from AOCI into earnings as a result of forecasted transactions that failed to occur during the three and nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||||||||||||||
The following tables set forth the fair value of the foreign currency exchange contracts and their location on the unaudited consolidated financial statements: | |||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Other current assets: | |||||||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | 250 | $ | 980 | |||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | 181 | $ | 750 | |||||||||||||||||||||||||||||
Accrued expenses and other current liabilities: | |||||||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | 11,680 | $ | 6,249 | |||||||||||||||||||||||||||||
Other non current liabilities: | |||||||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | 8,084 | $ | 3,458 | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Other current assets: | |||||||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | 172 | $ | — | |||||||||||||||||||||||||||||
Accrued expenses and other current liabilities: | |||||||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 154 | |||||||||||||||||||||||||||||
The following tables set forth the effect of foreign currency exchange contracts on the unaudited consolidated statements of income for the three months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||||||||||
Derivatives in Cash Flow | Amount of Gain/ | Location of Gain/ | Amount of Gain/ | Location of Gain/ | Amount of Gain/ | ||||||||||||||||||||||||||||
Hedging Relationships | (Loss) Recognized in | (Loss) Reclassified from | (Loss) Reclassified from | (Loss) Recognized in | (Loss) Recognized in | ||||||||||||||||||||||||||||
AOCI on Derivative | AOCI into Income | AOCI into Income | Income on Derivative | Income on Derivative | |||||||||||||||||||||||||||||
(Effective Portion) | (Effective Portion) | (Effective Portion) | (Ineffective Portion and | (Ineffective Portion and | |||||||||||||||||||||||||||||
Amount Excluded from | Amount Excluded from | ||||||||||||||||||||||||||||||||
Effectiveness Testing) | Effectiveness Testing) | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Foreign exchange contracts | $ | (6,210 | ) | $ | 9,980 | Foreign exchange loss | $ | (1,332 | ) | $ | (2,018 | ) | Foreign exchange loss | $ | — | $ | — | ||||||||||||||||
Derivatives not designated | Location of Gain/ | Amount of Gain/ | |||||||||||||||||||||||||||||||
as Hedging Instruments | (Loss) Recognized in | (Loss) Recognized in | |||||||||||||||||||||||||||||||
Income on Derivatives | Income on Derivatives | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | Foreign exchange loss | $ | (2,169 | ) | $ | 2,623 | |||||||||||||||||||||||||||
The following tables set forth the effect of foreign currency exchange contracts on the unaudited consolidated statements of income for the nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||||||||||
Derivatives in Cash Flow | Amount of Gain/ | Location of Gain/ | Amount of Gain/ | Location of Gain/ | Amount of Gain/ | ||||||||||||||||||||||||||||
Hedging Relationships | (Loss) Recognized in | (Loss) Reclassified from | (Loss) Reclassified from | (Loss) Recognized in | (Loss) Recognized in | ||||||||||||||||||||||||||||
AOCI on Derivative | AOCI into Income | AOCI into Income | Income on Derivative | Income on Derivative | |||||||||||||||||||||||||||||
(Effective Portion) | (Effective Portion) | (Effective Portion) | (Ineffective Portion and | (Ineffective Portion and | |||||||||||||||||||||||||||||
Amount Excluded from | Amount Excluded from | ||||||||||||||||||||||||||||||||
Effectiveness Testing) | Effectiveness Testing) | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Foreign exchange contracts | $ | (15,186 | ) | $ | 4,859 | Foreign exchange loss | $ | (3,830 | ) | $ | (7,281 | ) | Foreign exchange loss | $ | — | $ | — | ||||||||||||||||
Derivatives not designated | Location of Gain/ | Amount of Gain/ | |||||||||||||||||||||||||||||||
as Hedging Instruments | (Loss) Recognized in | (Loss) Recognized in | |||||||||||||||||||||||||||||||
Income on Derivatives | Income on Derivatives | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | Foreign exchange loss | $ | (4,708 | ) | $ | 2,925 | |||||||||||||||||||||||||||
Fixed_Assets
Fixed Assets | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Fixed Assets | ' | ||||||||
8. Fixed Assets | |||||||||
The components of fixed assets, net of accumulated depreciation, consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(Recasted) | |||||||||
Owned Assets: | |||||||||
Network equipment, computers and software | $ | 61,872 | $ | 62,580 | |||||
Buildings | 1,271 | 1,447 | |||||||
Land | 831 | 946 | |||||||
Leasehold improvements | 22,370 | 23,919 | |||||||
Office furniture and equipment | 10,247 | 10,695 | |||||||
Motor vehicles | 591 | 638 | |||||||
Capital work in progress | 1,200 | 1,707 | |||||||
98,382 | 101,932 | ||||||||
Less: Accumulated depreciation and amortization | (68,290 | ) | (65,581 | ) | |||||
$ | 30,092 | $ | 36,351 | ||||||
Assets under capital leases: | |||||||||
Network equipment, computers and software | $ | 107 | $ | 361 | |||||
Leasehold improvements | 1,929 | 2,454 | |||||||
Office furniture and equipment | 1,026 | 1,432 | |||||||
Motor vehicles | 864 | 954 | |||||||
3,926 | 5,201 | ||||||||
Less: Accumulated depreciation and amortization | (2,328 | ) | (2,196 | ) | |||||
$ | 1,598 | $ | 3,005 | ||||||
Fixed assets, net | $ | 31,690 | $ | 39,356 | |||||
Depreciation and amortization expense excluding amortization of acquisition-related intangibles for the three months ended September 30, 2013 and 2012 was $4,435 and $5,009, respectively, and $14,079 and $14,649 for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||
Capital work in progress represents advances paid toward acquisitions of fixed assets and the cost of fixed assets not yet ready to be placed in service. |
Capital_Structure
Capital Structure | 9 Months Ended |
Sep. 30, 2013 | |
Text Block [Abstract] | ' |
Capital Structure | ' |
9. Capital Structure | |
The Company has one class of common stock outstanding. | |
During the three months ended September 30, 2013, the Company did not acquire any shares of common stock from employees in connection with withholding tax payments related to the vesting of restricted stock. During the nine months ended September 30, 2013, the Company acquired 13,018 shares of common stock from employees in connection with withholding tax payments related to the vesting of restricted stock for a total consideration of $389. The purchase price of $29.89 per share was the average of the high and low price of the Company’s shares of common stock on the Nasdaq Global Select Market on the trading day prior to the vesting date of the shares of restricted stock. | |
During the three months ended September 30, 2012, the Company did not acquire any shares of common stock from employees in connection with withholding tax payments related to the vesting of restricted stock. During the nine months ended September 30, 2012, the Company acquired 12,865 shares of common stock, respectively from employees in connection with withholding tax payments related to the vesting of restricted stock for a total consideration of $331. | |
The shares acquired are held as treasury stock. |
Employee_Benefit_Plans
Employee Benefit Plans | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||
10. Employee Benefit Plans | |||||||||||||||||
The Company’s Gratuity Plans in India and the Philippines provide a lump-sum payment to vested employees on retirement or on termination of employment in an amount based on the respective employee’s salary and years of employment with the Company. Liabilities with regard to the Gratuity Plans are determined by actuarial valuation using the projected unit credit method. Current service costs for the Gratuity Plans are accrued in the year to which they relate. Actuarial gains or losses or prior service costs, if any, resulting from amendments to the plans are recognized and amortized over the remaining period of service of the employees. | |||||||||||||||||
Net gratuity cost includes the following components: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Service cost | $ | 266 | $ | 230 | $ | 867 | $ | 793 | |||||||||
Interest cost | 103 | 101 | 339 | 312 | |||||||||||||
Expected return on plan assets | (38 | ) | (43 | ) | (125 | ) | (104 | ) | |||||||||
Actuarial loss | 32 | 30 | 106 | 94 | |||||||||||||
Net gratuity cost | $ | 363 | $ | 318 | $ | 1,187 | $ | 1,095 | |||||||||
The Gratuity Plans in India are partially funded and are managed and administered by Life Insurance Corporation of India and HDFC Standard Life Insurance Company. They calculate the annual contribution required to be made by the Company and manage the Gratuity Plans, including any required payouts. Fund managers manage these funds on a cash accumulation basis and declare interest retrospectively on March 31 of each year. The Company earned a return of approximately 9.5% on these Gratuity Plans for the year ended March 31, 2013. | |||||||||||||||||
Change in Plan Assets | |||||||||||||||||
Plan assets at January 1, 2013 | $ | 2,201 | |||||||||||||||
Actual return | 165 | ||||||||||||||||
Effect of exchange rate changes | (280 | ) | |||||||||||||||
Plan assets at September 30, 2013 | $ | 2,086 | |||||||||||||||
The Company maintains the ExlService.com LLC. 401(k) Plan under Section 401(k) of the Internal Revenue Code of 1986, covering all eligible employees, as defined. The Company may make discretionary contributions of up to a maximum of 3% of employee compensation within certain limits. The Company has made provisions for contributions to the 401(k) Plan amounting to $370 and $245 during the three month periods ended September 30, 2013 and September 30, 2012, respectively, and $1,343 and $925 during the nine month periods ended September 30, 2013 and September 30, 2012, respectively, under the plans as applicable for these years. | |||||||||||||||||
During the three and nine month periods ended September 30, 2013 and 2012, the Company contributed the following amounts to various defined contribution plans on behalf of its employees in India, the Philippines, Romania, Bulgaria, Malaysia and the Czech Republic: | |||||||||||||||||
Three months ended September 30, 2013 | $ | 1,289 | |||||||||||||||
Three months ended September 30, 2012 | $ | 1,384 | |||||||||||||||
Nine months ended September 30, 2013 | $ | 4,149 | |||||||||||||||
Nine months ended September 30, 2012 | $ | 4,227 |
Leases
Leases | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Leases [Abstract] | ' | ||||
Leases | ' | ||||
11. Leases | |||||
The Company finances its use of certain computer hardware, leasehold improvements, furniture, fixtures, office equipment and motor vehicles under various lease arrangements provided by financial institutions. Future minimum lease payments under these capital leases as of September 30, 2013 are as follows: | |||||
Year ending September 30, | |||||
2014 | $ | 1,335 | |||
2015 | 1,041 | ||||
2016 | 574 | ||||
2017 | 49 | ||||
Total minimum lease payments | 2,999 | ||||
Less: amount representing interest | 337 | ||||
Present value of minimum lease payments | 2,662 | ||||
Less: current portion | 1,129 | ||||
Long term capital lease obligation | $ | 1,533 | |||
The Company conducts its operations using facilities leased under non-cancelable operating lease agreements that expire at various dates. Future minimum lease payments under non-cancelable operating lease agreements expiring after more than twelve months are as follows: | |||||
Year ending September 30, | |||||
2014 | $ | 8,419 | |||
2015 | 7,459 | ||||
2016 | 4,608 | ||||
2017 | 973 | ||||
2018 | 728 | ||||
2019 and thereafter | 643 | ||||
$ | 22,830 | ||||
The operating leases are subject to renewal periodically and have scheduled rent increases. The Company accounts for scheduled rent on a straight-line basis over the lease period. Rent expense under both cancelable and non-cancelable operating leases was $4,264 and $4,341 for the three months ended September 30, 2013 and 2012, respectively, and $13,049 and $13,325 for the nine months ended September 30, 2013 and 2012, respectively. Deferred rent as of September 30, 2013 and December 31, 2012 was $5,242 and $4,893, respectively, and is included under “Accrued expenses and other current liabilities” and “Non-current liabilities” in the consolidated balance sheets. |
Income_Taxes
Income Taxes | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Income Tax Disclosure [Abstract] | ' | ||||
Income Taxes | ' | ||||
12. Income Taxes | |||||
The Company recorded income tax expense of $4,230 and $4,329 for the three months ended September 30, 2013 and 2012, respectively, and $10,842 and $10,975 for the nine months ended September 30, 2013 and 2012, respectively. The effective rate of taxes decreased from 27.0% during the three months ended September 30, 2012 to 24.2% during the three months ended September 30, 2013. The effective rate of taxes decreased from 27.0% during the nine months ended September 30, 2012 to 25.2% during the nine months ended September 30, 2013. The decrease in effective tax rate is primarily due to the extension of a one-year tax holiday period for one of the operating centers in the Philippines retroactively from May 2012, research and development expenses credit and certain other deductions, partially offset by the expiration of a portion of the tax holiday in our Bengaluru center in India as mentioned below. | |||||
The Company benefited from a four-year income tax holiday for one of its operations centers in the Philippines that expired in May 2012. The tax benefit was extendable by two successive one-year periods on fulfillment of certain performance and investment criteria. The Company fulfilled such obligations and extensions were granted by the Philippines Economic Zone Authority (“PEZA”) in February 2013 retroactively from May 2012 and in May 2013 for an additional one year which will expire in May 2014. Other operations centers in the Philippines, which began operations in January 2012 and in May 2013, respectively, benefit from a separate four-year income tax holiday from the date of their starting operations that can be extended at PEZA’s discretion for two successive one-year periods. While the Company is reasonably certain that these benefits will continue to be available for the expected period, it is possible that such tax holidays or extensions may be conditioned or removed entirely due to changes in applicable legislation by the government of the Philippines. Should any of these events occur, the Company’s tax liability in the Philippines would likely increase. | |||||
The Company’s operations centers in Jaipur and Noida, India, which were established in Special Economic Zones (“SEZs”) in 2010, are eligible for tax incentives until 2020. As part of the OPI Acquisition, the Company also acquired operations centers in Bengaluru and Kochi, India that are also established in SEZs. The operations center in Bengaluru completed its first five years of operations on March 31, 2012 during which such operations were entitled to a 100% tax exemption on export profits. Under Indian tax regulations, the Bengaluru operations center is entitled to a 50% tax exemption on export profits for five years from April 1, 2012. The Company’s tax expense for the Bengaluru center increased after April 1, 2012 and will further increase after the expiration of the current five-year term in 2017. The Company also established a new operations center in Pune, India in June 2012 and in Kochi, India in May 2013, both of which are located in SEZs. The Company anticipates establishing additional operations centers in SEZs or other tax advantaged locations in the future. | |||||
Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of assets and liabilities and their respective tax bases and operating loss carry forwards. At September 30, 2013 and December 31, 2012, the Company performed an analysis of the deferred tax asset valuation allowance for net operating loss carry forward for its domestic entities. Based on this analysis, the Company continues to carry a valuation allowance on the deferred tax assets on net operating loss carry forwards. Accordingly, the Company had recorded a valuation allowance of $665 each as of September 30, 2013 and December 31, 2012, respectively. | |||||
The Company’s Indian subsidiaries are liable to pay the Minimum Alternative Tax (“MAT”) under India’s domestic tax laws. As of September 30, 2013 and December 31, 2012, deferred income taxes related to the MAT were approximately $2,989 and $2,932, respectively, expiring through various years until 2024. | |||||
The Company’s provision for income taxes also includes the impact of provisions established for uncertain income tax positions determined in accordance with ASC No. 740, “Income Taxes,” as well as the related net interest. Tax exposures can involve complex issues and may require an extended resolution period. Although the Company believes that it has adequately reserved for its uncertain tax positions, no assurance can be given that the final tax outcome of these matters will not be different. The Company adjusts these reserves in light of changing facts and circumstances, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters differs from the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. | |||||
The following table summarizes the activity related to the gross unrecognized tax benefits from January 1, 2013 through September 30, 2013: | |||||
Balance as of January 1, 2013 | $ | 3,019 | |||
Increases related to prior year tax positions | — | ||||
Decreases related to prior year tax positions | — | ||||
Increases related to current year tax positions | — | ||||
Decreases related to current year tax positions | — | ||||
Effect of exchange rate changes | (245 | ) | |||
Balance as of September 30, 2013 | $ | 2,774 | |||
The unrecognized tax benefits as of September 30, 2013 of $2,774, if recognized, would impact the effective tax rate. The unrecognized tax benefits may increase or decrease in the next twelve months depending on the Company’s tax positions. | |||||
The Company has recognized interest and penalties of $52 and $169 during the three and nine months ended September 30, 2013, respectively, which are included in the income tax provision in the consolidated statements of income. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
13. Stock-Based Compensation | |||||||||||||||||
The following costs related to the Company’s stock-based compensation plan are included in the unaudited consolidated statements of income: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Cost of revenue | $ | 660 | $ | 330 | $ | 2,058 | $ | 1,571 | |||||||||
General and administrative expenses | 1,142 | 867 | 3,958 | 3,472 | |||||||||||||
Selling and marketing expenses | 1,165 | 674 | 3,456 | 2,286 | |||||||||||||
Total(1) | $ | 2,967 | $ | 1,871 | $ | 9,472 | $ | 7,329 | |||||||||
-1 | The Company, during the three and nine months period ended September 30, 2013, recognized an additional stock compensation expense of $854 as a result of modified vesting conditions on certain restricted stock units. | ||||||||||||||||
The fair value of each stock option granted to employees is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Dividend yield | — | — | 0 | % | 0 | % | |||||||||||
Expected life (years) | — | — | 5.5 | 5.38 | |||||||||||||
Risk free interest rate | — | — | 0.87 | % | 0.97 | % | |||||||||||
Volatility | — | — | 40 | % | 40 | % | |||||||||||
The estimated expected term of options granted has been based on historical experience, which is representative of the expected term of the options. Volatility has been calculated based on the volatility of the Company’s common stock and the volatility of stock of comparative companies. The risk-free interest rate that the Company uses in the option valuation model is based on U.S. treasury zero-coupon bonds with a remaining term similar to the expected term of the options. | |||||||||||||||||
The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option valuation model. The Company is required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option forfeitures and records stock-based compensation expense only for those awards that are expected to vest. All stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods. | |||||||||||||||||
Stock option activity under the Company’s stock plans is shown below: | |||||||||||||||||
Number of | Weighted-Average | Aggregate | Weighted-Average | ||||||||||||||
Options | Exercise Price | Intrinsic Value | Remaining | ||||||||||||||
Contractual Life | |||||||||||||||||
(Years) | |||||||||||||||||
Outstanding at December 31, 2012 | 2,454,634 | $ | 15.3 | $ | 27,554 | 6.38 | |||||||||||
Granted | 14,301 | 26.76 | |||||||||||||||
Exercised | (412,726 | ) | 11.2 | ||||||||||||||
Forfeited | (27,279 | ) | 24.13 | ||||||||||||||
Outstanding at September 30, 2013 | 2,028,930 | $ | 16.09 | $ | 25,133 | 5.78 | |||||||||||
Vested and exercisable at September 30, 2013 | 1,461,044 | $ | 13.66 | $ | 21,649 | 5.12 | |||||||||||
Available for grant at September 30, 2013 | 1,813,144 | ||||||||||||||||
The unrecognized compensation cost for unvested options as of September 30, 2013 was $3,252, which is expected to be expensed over a weighted average period of 1.93 years. The Company did not grant any options during the three months ended September 30, 2013 and 2012. The weighted-average fair value of options granted during the nine months ended September 30, 2013 and 2012 was $10.07 and $9.43, respectively. The total fair value of shares vested during the three months ended September 30, 2013 and 2012 was $541 and $409, respectively. The total fair value of shares vested during the nine months ended September 30, 2013 and 2012 was $2,865 and $2,757, respectively. | |||||||||||||||||
Restricted Stock and Restricted Stock Units | |||||||||||||||||
Restricted stock and restricted stock unit activity under the Company’s stock plans is shown below: | |||||||||||||||||
Restricted Stock | Restricted Stock Units | ||||||||||||||||
Number | Weighted-Average | Number | Weighted-Average | ||||||||||||||
Intrinsic Value | Intrinsic Value | ||||||||||||||||
Outstanding at December 31, 2012* | 5,207 | $ | 17.58 | 1,025,911 | $ | 21.36 | |||||||||||
Granted | — | — | 508,630 | 29.48 | |||||||||||||
Vested | (373 | ) | 15.72 | (287,866 | ) | 20.1 | |||||||||||
Forfeited | (400 | ) | 17.72 | (78,778 | ) | 24.76 | |||||||||||
Outstanding at September 30, 2013* | 4,434 | $ | 17.72 | 1,167,897 | $ | 24.97 | |||||||||||
* | Excludes 116,000 and 124,000 vested restricted stock units as of September 30, 2013 and December 31, 2012, respectively, for which the underlying common stock is yet to be issued. | ||||||||||||||||
As of September 30, 2013, unrecognized compensation cost of $21,735 is expected to be expensed over a weighted average period of 2.61 years. |
Geographical_Information
Geographical Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Geographical Information | ' | ||||||||||||||||
14. Geographical Information | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenues | |||||||||||||||||
United States | $ | 91,995 | $ | 80,949 | $ | 259,769 | $ | 234,514 | |||||||||
United Kingdom | 23,000 | 23,061 | 70,186 | 66,046 | |||||||||||||
Rest of World | 7,320 | 8,629 | 24,374 | 24,717 | |||||||||||||
$ | 122,315 | $ | 112,639 | $ | 354,329 | $ | 325,277 | ||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Fixed assets, net | |||||||||||||||||
India | $ | 20,274 | $ | 29,539 | |||||||||||||
United States | 4,119 | 4,418 | |||||||||||||||
Philippines | 6,589 | 4,363 | |||||||||||||||
Rest of World | 708 | 1,036 | |||||||||||||||
$ | 31,690 | $ | 39,356 | ||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
15. Commitments and Contingencies | |
Fixed Asset Commitments | |
As of September 30, 2013, the Company had committed to spend approximately $3,095 under agreements to purchase fixed assets. This amount is net of capital advances paid in respect of these purchases. | |
Other Commitments | |
Certain units of the Company’s Indian subsidiaries were established as 100% Export-Oriented units under the Software Technology Parks of India (“STPI”) scheme promulgated by the Government of India, which provided the Company with certain incentives on imported and indigenous capital goods on fulfillment of certain conditions. Although the corporate tax incentives under the STPI scheme are no longer available to the Company, the units are required to fulfill such conditions for a limited time. In the event that these units are unable to meet the prescribed conditions over the specified period, the Company may be required to refund those incentives along with penalties and fines. The Company’s management believes, however, that these units have in the past satisfied and will continue to satisfy the required conditions. | |
The Company’s operations centers in the Philippines are registered with PEZA. The registration provides the Company with certain fiscal incentives on the import of capital goods and requires Exl Philippines to meet certain performance and investment criteria. The Company’s management believes that these centers have in the past satisfied and will continue to satisfy the required criteria. | |
Contingencies | |
U.S. and Indian transfer pricing regulations require that any international transaction involving associated enterprises be at an arm’s-length price. Accordingly, the Company determines the appropriate pricing for the international transactions among its associated enterprises on the basis of a detailed functional and economic analysis involving benchmarking against transactions among entities that are not under common control. The tax authorities have jurisdiction to review this arrangement and in the event that they determine that the transfer price applied was not appropriate, the Company may incur increased tax liability, including accrued interest and penalties. The Company is currently involved in disputes with the Indian tax authorities over the application of some of its transfer pricing policies for some of its subsidiaries. Further, the Company and its U.S. subsidiary ExlService.com, LLC. are engaged in tax litigation with the income-tax authorities in India on the issue of permanent establishment. | |
The aggregate disputed amount demanded by Indian tax authorities from the Company related to its transfer pricing issues for various years ranging from tax years 2003 to 2009 and its permanent establishment issues ranging from tax years 2003 to 2007 as of September 30, 2013 and December 31, 2012 is $14,815 and $18,624, respectively, of which the Company has already made payments or provided bank guarantees to the extent of $12,927 and $14,715, respectively. Amounts paid as deposits in respect of such assessments aggregating to $10,811 and $12,307 as of September 30, 2013 and December 31, 2012, respectively, are included in “Other assets” and amounts deposited for bank guarantees aggregating to $2,116 and $2,408 as of September 30, 2013 and December 31, 2012, respectively, are included in “Restricted cash” in the non-current assets section of the Company’s consolidated balance sheets as of September 30, 2013 and December 31, 2012. | |
Based on advice from its Indian tax advisors, the facts underlying its position and its experience with these types of assessments, the Company believes that the probability that the Company will ultimately be found liable for these assessments is remote and accordingly has not accrued any amount with respect to these matters in its consolidated financial statements. The Company does not expect any impact from these assessments on its future income tax expense. It is possible that the Company might receive similar orders or assessments from tax authorities for subsequent years. Even if these disputes are resolved, the Indian tax authorities may still serve additional orders or assessments. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Policies) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Basis of Presentation | ' | ||||||||||||
Basis of Presentation | |||||||||||||
The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for annual financial statements and therefore should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012. | |||||||||||||
The unaudited interim consolidated financial statements reflect all adjustments (of a normal and recurring nature) that management considers necessary for a fair presentation of such statements for the interim periods presented. The unaudited consolidated statements of income for the interim periods presented are not necessarily indicative of the results for the full year or for any subsequent period. | |||||||||||||
Principles of Consolidation | ' | ||||||||||||
Principles of Consolidation | |||||||||||||
The accompanying unaudited consolidated financial statements include the financial statements of ExlService Holdings and all of its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||
The non-controlling interest as on December 31, 2012 represented the minority partner’s interest in the operation of exl Service.com (India) Private Limited (“Exl India”) and the profits associated with the minority partner’s interest in those operations in the consolidated balance sheet and the consolidated statements of income. During the three months ended September 30, 2013, the Company purchased the entire non-controlling interest from the minority partner for an insignificant amount. The non-controlling interest expenses in these operations for the three and nine months ended September 30, 2013 and 2012 were insignificant and are included under general and administrative expenses in the unaudited consolidated statements of income. | |||||||||||||
Use of Estimates | ' | ||||||||||||
Use of Estimates | |||||||||||||
The preparation of the unaudited consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the unaudited consolidated statements of income during the reporting period. Estimates are based upon management’s best assessment of the current business environment. Actual results could differ from those estimates. The significant estimates and assumptions that affect the financial statements include, but are not limited to, allowance for doubtful receivables, service tax receivables, assets and obligations related to employee benefit plans, deferred tax valuation allowances, income-tax uncertainties and other contingencies, valuation of derivative financial instruments, stock-based compensation expense, depreciation and amortization periods, purchase price allocation, recoverability of long-term assets including goodwill and intangibles, and estimates to complete fixed price contracts. | |||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||
Recent Accounting Pronouncements | |||||||||||||
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (ASU) No. 2011-11, “Disclosures about Offsetting Assets and Liabilities,” (ASU No. 2011-11) which is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. This authoritative guidance was issued to enhance disclosure requirements on offsetting financial assets and liabilities. The new rules require companies to disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position, as well as instruments and transactions subject to a netting arrangement. In January 2013, the FASB further issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” to address implementation issues surrounding the scope of ASU No. 2011-11 and to clarify the scope of the offsetting disclosures and address any unintended consequences. The adoption of this guidance from January 2013 did not have a material impact on the Company’s unaudited consolidated financial statements. | |||||||||||||
In July 2012, the FASB issued ASU No. 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment,” (ASU No. 2012-02) which simplifies the guidance for testing the impairment of indefinite-lived intangible assets other than goodwill. Examples of intangible assets subject to the guidance include indefinite-lived trademarks, licenses and distribution rights. The amendment provides the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. Under the option, an entity is no longer required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. This amendment is effective for fiscal years beginning after September 15, 2012, with early adoption permitted. The adoption of this standard did not have a material impact on the Company’s unaudited consolidated financial statements. | |||||||||||||
In October 2012, the FASB issued ASU No. 2012-04, “Technical Corrections and Improvements,” (ASU No. 2012-04) which makes technical corrections and improvements to a variety of topics in the FASB Accounting Standards Codification (the “Codification”). The changes include source literature amendments, guidance clarification, reference corrections and relocated guidance. The ASU also includes conforming amendments to the Codification to reflect ASC 820’s fair value measurement and disclosure requirements. The adoption of this standard effective January 1, 2013 did not have a material impact on the Company’s unaudited consolidated financial statements. | |||||||||||||
In February 2013, the FASB issued ASU No. 2013-02, “Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income” (ASU No. 2013-02). Under ASU No. 2013-02, an entity is required to provide information about the amounts reclassified out of accumulated other comprehensive income (“AOCI”) by component. In addition, an entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income, but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. ASU No. 2013-02 does not change the current requirements for reporting net income or other comprehensive income in the financial statements. ASU No. 2013-02 became effective from January 1, 2013 and the new guidance did not have any material impact on the Company’s unaudited consolidated financial statements. | |||||||||||||
In March 2013, the FASB issued ASU No. 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity” (ASU 2013-05). It applies to the release of the currency translation adjustment into net income when a parent either sells a part of all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. For public entities, the amendments are effective for fiscal years and interim reporting periods beginning after December 15, 2013. The Company is currently assessing the impact, if any, on its unaudited consolidated financial statements. | |||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (ASU No. 2013-11). The provisions of the rule require an unrecognized tax benefit to be presented as a reduction to a deferred tax asset in the financial statements for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward except in circumstances when the carryforward or tax loss is not available at the reporting date under the tax laws of the applicable jurisdiction to settle any additional income taxes or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purposes. When those circumstances exist, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The new financial statement presentation provisions relating to this update are prospective and effective for interim and annual periods beginning after December 15, 2013, with early adoption permitted. The Company is currently assessing the impact, if any, on its unaudited consolidated financial statements. | |||||||||||||
Business Combinations | ' | ||||||||||||
Goodwill | |||||||||||||
The following table sets forth details of the Company’s goodwill balance as of September 30, 2013: | |||||||||||||
Outsourcing | Transformation | Total | |||||||||||
Services | Services | ||||||||||||
Balance at January 1, 2012 | $ | 75,502 | $ | 16,785 | $ | 92,287 | |||||||
Goodwill arising from Landacorp acquisition | 19,276 | — | 19,276 | ||||||||||
Purchase accounting adjustments(1) | 422 | — | 422 | ||||||||||
Currency translation adjustments | (1,037 | ) | — | (1,037 | ) | ||||||||
Balance at December 31, 2012 | $ | 94,163 | $ | 16,785 | $ | 110,948 | |||||||
Currency translation adjustments | (3,640 | ) | — | (3,640 | ) | ||||||||
Allocation on sale of a business unit(2) | (250 | ) | — | (250 | ) | ||||||||
Balance at September 30, 2013 | $ | 90,273 | $ | 16,785 | $ | 107,058 | |||||||
-1 | Relates to the acquisition of Business Process Outsourcing Inc. (“OPI”) on May 31, 2011 (the “OPI Acquisition”) pertaining to service tax receivables included under “other current assets” in the consolidated balance sheet as of December 31, 2011. | ||||||||||||
-2 | Relates to the sale of a business unit (acquired with the OPI acquisition) during the three months ended September 30, 2013. The net loss recognized from the sale of this business unit is $190 and is included under “other income/ (expense)” in the consolidated statements of income for the three months and nine months ended September 30, 2013. | ||||||||||||
Intangible Assets | |||||||||||||
Information regarding the Company’s intangible assets is as follows: | |||||||||||||
As of September 30, 2013 | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | Carrying | |||||||||||
Amount | Amount | ||||||||||||
Customer relationships | $ | 38,602 | $ | (11,107 | ) | $ | 27,495 | ||||||
Leasehold benefits | 2,947 | (1,366 | ) | 1,581 | |||||||||
Developed technology | 6,014 | (1,266 | ) | 4,748 | |||||||||
Non-compete agreements | 1,316 | (1,316 | ) | — | |||||||||
Trade names and trademarks | 3,322 | (1,525 | ) | 1,797 | |||||||||
$ | 52,201 | $ | (16,580 | ) | $ | 35,621 | |||||||
As of December 31, 2012 | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | Carrying | |||||||||||
Amount | Amount | ||||||||||||
Customer relationships | $ | 38,728 | $ | (7,832 | ) | $ | 30,896 | ||||||
Leasehold benefits | 3,355 | (1,213 | ) | 2,142 | |||||||||
Developed technology | 6,013 | (683 | ) | 5,330 | |||||||||
Non-compete agreements | 1,316 | (1,316 | ) | — | |||||||||
Trade names and trademarks | 3,322 | (979 | ) | 2,343 | |||||||||
$ | 52,734 | $ | (12,023 | ) | $ | 40,711 | |||||||
Amortization expense for the three months ended September 30, 2013 and 2012 was $1,534 and $1,324, respectively. Amortization expense for the nine months ended September 30, 2013 and 2012 was $4,764 and $4,083, respectively. The weighted average life of intangible assets was 8.8 years for customer relationships, 6.8 years for leasehold benefits, 8.0 years for developed technology, 1.5 years for non-compete agreements and 3.5 years for trade names and trademarks excluding indefinite life trade names and trademarks. The Company had $900 of indefinite life trade names and trademarks as of September 30, 2013 and December 31, 2012. | |||||||||||||
Estimated amortization of intangible assets during the year ending September 30, | |||||||||||||
2014 | $ | 5,938 | |||||||||||
2015 | $ | 5,538 | |||||||||||
2016 | $ | 5,538 | |||||||||||
2017 | $ | 5,530 | |||||||||||
2018 | $ | 5,413 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Summary of Accrued Expenses and Other Current Liabilities | ' | ||||||||
Accrued expenses and other current liabilities consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Accrued expenses | $ | 16,501 | $ | 20,134 | |||||
Derivative instruments | 11,680 | 6,403 | |||||||
Other current liabilities | 4,303 | 5,200 | |||||||
Accrued expenses and other current liabilities | $ | 32,484 | $ | 31,737 | |||||
Summary of Non-current Liabilities | ' | ||||||||
Non-current liabilities consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Derivative instruments | $ | 8,084 | $ | 3,458 | |||||
Unrecognized tax benefits | 2,513 | 2,680 | |||||||
Deferred rent | 4,986 | 4,631 | |||||||
Retirement benefits | 2,594 | 2,380 | |||||||
Other non-current liabilities | 153 | 1,168 | |||||||
Non-current liabilities | $ | 18,330 | $ | 14,317 | |||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Computation of Basic and Diluted Earnings per Share | ' | ||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerators: | |||||||||||||||||
Net income | $ | 13,240 | $ | 11,703 | $ | 32,238 | $ | 29,673 | |||||||||
Denominators: | |||||||||||||||||
Basic weighted average common shares outstanding | 32,907,281 | 32,154,001 | 32,737,267 | 31,857,909 | |||||||||||||
Dilutive effect of share based awards | 1,048,164 | 1,129,853 | 1,122,258 | 1,197,948 | |||||||||||||
Diluted weighted average common shares outstanding | 33,955,445 | 33,283,854 | 33,859,525 | 33,055,857 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.4 | $ | 0.36 | $ | 0.98 | $ | 0.93 | |||||||||
Diluted | $ | 0.39 | $ | 0.35 | $ | 0.95 | $ | 0.9 | |||||||||
Weighted average common shares considered anti- dilutive in computing diluted earnings per share | 219,189 | 412,873 | 242,269 | 430,309 |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Revenues and Cost of Revenues for Company's Outsourcing Services and Transformation Services Segments | ' | ||||||||||||||||||||||||
Revenues and cost of revenues for each of the three months ended September 30, 2013 and 2012 for the Company’s outsourcing services and transformation services segments, respectively, are as follows: | |||||||||||||||||||||||||
Three months ended September 30, 2013 | Three months ended September 30, 2012 | ||||||||||||||||||||||||
Outsourcing | Transformation | Total | Outsourcing | Transformation | Total | ||||||||||||||||||||
Services | Services | Services | Services | ||||||||||||||||||||||
Revenues | $ | 99,672 | $ | 22,643 | $ | 122,315 | $ | 91,984 | $ | 20,655 | $ | 112,639 | |||||||||||||
Cost of revenues (exclusive of depreciation and amortization) | 56,531 | 15,518 | 72,049 | 55,658 | 12,992 | 68,650 | |||||||||||||||||||
Gross profit | $ | 43,141 | $ | 7,125 | $ | 50,266 | $ | 36,326 | $ | 7,663 | $ | 43,989 | |||||||||||||
Operating expenses | 30,753 | 27,119 | |||||||||||||||||||||||
Other income/(expense) | (2,043 | ) | (838 | ) | |||||||||||||||||||||
Income tax provision | 4,230 | 4,329 | |||||||||||||||||||||||
Net income | $ | 13,240 | $ | 11,703 | |||||||||||||||||||||
Revenues and cost of revenues for each of the nine months ended September 30, 2013 and 2012 for the Company’s outsourcing services and transformation services segments, respectively, are as follows: | |||||||||||||||||||||||||
Nine months ended September 30, 2013 | Nine months ended September 30, 2012 | ||||||||||||||||||||||||
Outsourcing | Transformation | Total | Outsourcing | Transformation | Total | ||||||||||||||||||||
Services | Services | Services | Services | ||||||||||||||||||||||
Revenues | $ | 294,573 | $ | 59,756 | $ | 354,329 | $ | 270,640 | $ | 54,637 | $ | 325,277 | |||||||||||||
Cost of revenues (exclusive of depreciation and amortization) | 175,490 | 43,402 | 218,892 | 166,637 | 34,730 | 201,367 | |||||||||||||||||||
Gross profit | $ | 119,083 | $ | 16,354 | $ | 135,437 | $ | 104,003 | $ | 19,907 | $ | 123,910 | |||||||||||||
Operating expenses | 90,992 | 82,216 | |||||||||||||||||||||||
Other income/(expense) | (1,365 | ) | (1,046 | ) | |||||||||||||||||||||
Income tax provision | 10,842 | 10,975 | |||||||||||||||||||||||
Net income | $ | 32,238 | $ | 29,673 | |||||||||||||||||||||
Business_Combinations_Goodwill1
Business Combinations, Goodwill and Intangible Assets (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Summary of Total Purchase Price of Acquisitions | ' | ||||||||||||
The total purchase price of the acquisition is as follows: | |||||||||||||
Enterprise Value | $ | 37,500 | |||||||||||
Add: Working capital adjustments* | 1,183 | ||||||||||||
Total purchase price | $ | 38,683 | |||||||||||
* | Paid in January 2013. | ||||||||||||
Summary of Purchase Price Allocation for Acquisitions | ' | ||||||||||||
After the December 31, 2012 consolidated financial statements were issued, the Company received further information including a revised valuation report from a third party valuation firm with respect to the Landacorp Acquisition. After considering the results of the additional information, the Company revised its estimates related to certain of its acquired intangibles and other assets as of the date of acquisition as follows: | |||||||||||||
Revised | Initial | ||||||||||||
Allocation | Allocation | ||||||||||||
Assets | |||||||||||||
Identifiable intangible assets: | |||||||||||||
Customer relationships | $ | 5,664 | $ | 7,095 | |||||||||
Developed technology | 3,881 | 5,313 | |||||||||||
Trade names | 601 | 549 | |||||||||||
Net tangible assets | 9,261 | 10,727 | |||||||||||
Goodwill | 19,276 | 14,999 | |||||||||||
Total purchase price | $ | 38,683 | $ | 38,683 | |||||||||
Summary of Company's Goodwill | ' | ||||||||||||
The following table sets forth details of the Company’s goodwill balance as of September 30, 2013: | |||||||||||||
Outsourcing | Transformation | Total | |||||||||||
Services | Services | ||||||||||||
Balance at January 1, 2012 | $ | 75,502 | $ | 16,785 | $ | 92,287 | |||||||
Goodwill arising from Landacorp acquisition | 19,276 | — | 19,276 | ||||||||||
Purchase accounting adjustments(1) | 422 | — | 422 | ||||||||||
Currency translation adjustments | (1,037 | ) | — | (1,037 | ) | ||||||||
Balance at December 31, 2012 | $ | 94,163 | $ | 16,785 | $ | 110,948 | |||||||
Currency translation adjustments | (3,640 | ) | — | (3,640 | ) | ||||||||
Allocation on sale of a business unit(2) | (250 | ) | — | (250 | ) | ||||||||
Balance at September 30, 2013 | $ | 90,273 | $ | 16,785 | $ | 107,058 | |||||||
-1 | Relates to the acquisition of Business Process Outsourcing Inc. (“OPI”) on May 31, 2011 (the “OPI Acquisition”) pertaining to service tax receivables included under “other current assets” in the consolidated balance sheet as of December 31, 2011. | ||||||||||||
-2 | Relates to the sale of a business unit (acquired with the OPI acquisition) during the three months ended September 30, 2013. The net loss recognized from the sale of this business unit is $190 and is included under “other income/ (expense)” in the consolidated statements of income for the three months and nine months ended September 30, 2013. | ||||||||||||
Summary of Company's Intangible Assets | ' | ||||||||||||
Information regarding the Company’s intangible assets is as follows: | |||||||||||||
As of September 30, 2013 | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | Carrying | |||||||||||
Amount | Amount | ||||||||||||
Customer relationships | $ | 38,602 | $ | (11,107 | ) | $ | 27,495 | ||||||
Leasehold benefits | 2,947 | (1,366 | ) | 1,581 | |||||||||
Developed technology | 6,014 | (1,266 | ) | 4,748 | |||||||||
Non-compete agreements | 1,316 | (1,316 | ) | — | |||||||||
Trade names and trademarks | 3,322 | (1,525 | ) | 1,797 | |||||||||
$ | 52,201 | $ | (16,580 | ) | $ | 35,621 | |||||||
As of December 31, 2012 | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | Carrying | |||||||||||
Amount | Amount | ||||||||||||
Customer relationships | $ | 38,728 | $ | (7,832 | ) | $ | 30,896 | ||||||
Leasehold benefits | 3,355 | (1,213 | ) | 2,142 | |||||||||
Developed technology | 6,013 | (683 | ) | 5,330 | |||||||||
Non-compete agreements | 1,316 | (1,316 | ) | — | |||||||||
Trade names and trademarks | 3,322 | (979 | ) | 2,343 | |||||||||
$ | 52,734 | $ | (12,023 | ) | $ | 40,711 | |||||||
Estimated Amortization of Intangible Assets | ' | ||||||||||||
Estimated amortization of intangible assets during the year ending September 30, | |||||||||||||
2014 | $ | 5,938 | |||||||||||
2015 | $ | 5,538 | |||||||||||
2016 | $ | 5,538 | |||||||||||
2017 | $ | 5,530 | |||||||||||
2018 | $ | 5,413 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Assets and Liabilities Measured at Fair Value | ' | ||||||||||||||||
The following table sets forth the Company’s assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2013 and December 31, 2012. The table excludes short-term investments, accounts receivable, accounts payable and accrued expenses for which fair values approximate their carrying amounts. | |||||||||||||||||
As of September 30, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | |||||||||||||||||
Money market and mutual funds | $ | 96,781 | $ | — | $ | — | $ | 96,781 | |||||||||
Derivative financial instruments | — | 603 | — | 603 | |||||||||||||
Total | $ | 96,781 | $ | 603 | $ | — | $ | 97,384 | |||||||||
Liabilities | |||||||||||||||||
Derivative financial instruments | $ | — | $ | 19,764 | $ | — | $ | 19,764 | |||||||||
Total | $ | — | $ | 19,764 | $ | — | $ | 19,764 | |||||||||
As of December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | |||||||||||||||||
Money market and mutual funds | $ | 64,766 | $ | — | $ | — | $ | 64,766 | |||||||||
Derivative financial instruments | — | 1,730 | — | 1,730 | |||||||||||||
Total | $ | 64,766 | $ | 1,730 | $ | — | $ | 66,496 | |||||||||
Liabilities | |||||||||||||||||
Derivative financial instruments | — | 9,861 | — | $ | 9,861 | ||||||||||||
Total | $ | — | $ | 9,861 | $ | — | $ | 9,861 | |||||||||
Derivatives_and_Hedge_Accounti1
Derivatives and Hedge Accounting (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Summary of Fair Value of Foreign Currency Exchange Contracts | ' | ||||||||||||||||||||||||||||||||
The following tables set forth the fair value of the foreign currency exchange contracts and their location on the unaudited consolidated financial statements: | |||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Other current assets: | |||||||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | 250 | $ | 980 | |||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | 181 | $ | 750 | |||||||||||||||||||||||||||||
Accrued expenses and other current liabilities: | |||||||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | 11,680 | $ | 6,249 | |||||||||||||||||||||||||||||
Other non current liabilities: | |||||||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | 8,084 | $ | 3,458 | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Other current assets: | |||||||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | 172 | $ | — | |||||||||||||||||||||||||||||
Accrued expenses and other current liabilities: | |||||||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 154 | |||||||||||||||||||||||||||||
Summary of Effect of Foreign Currency Exchange Contracts on Consolidated Statements of Income | ' | ||||||||||||||||||||||||||||||||
The following tables set forth the effect of foreign currency exchange contracts on the unaudited consolidated statements of income for the three months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||||||||||
Derivatives in Cash Flow | Amount of Gain/ | Location of Gain/ | Amount of Gain/ | Location of Gain/ | Amount of Gain/ | ||||||||||||||||||||||||||||
Hedging Relationships | (Loss) Recognized in | (Loss) Reclassified from | (Loss) Reclassified from | (Loss) Recognized in | (Loss) Recognized in | ||||||||||||||||||||||||||||
AOCI on Derivative | AOCI into Income | AOCI into Income | Income on Derivative | Income on Derivative | |||||||||||||||||||||||||||||
(Effective Portion) | (Effective Portion) | (Effective Portion) | (Ineffective Portion and | (Ineffective Portion and | |||||||||||||||||||||||||||||
Amount Excluded from | Amount Excluded from | ||||||||||||||||||||||||||||||||
Effectiveness Testing) | Effectiveness Testing) | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Foreign exchange contracts | $ | (6,210 | ) | $ | 9,980 | Foreign exchange loss | $ | (1,332 | ) | $ | (2,018 | ) | Foreign exchange loss | $ | — | $ | — | ||||||||||||||||
Derivatives not designated | Location of Gain/ | Amount of Gain/ | |||||||||||||||||||||||||||||||
as Hedging Instruments | (Loss) Recognized in | (Loss) Recognized in | |||||||||||||||||||||||||||||||
Income on Derivatives | Income on Derivatives | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | Foreign exchange loss | $ | (2,169 | ) | $ | 2,623 | |||||||||||||||||||||||||||
The following tables set forth the effect of foreign currency exchange contracts on the unaudited consolidated statements of income for the nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||||||||||
Derivatives in Cash Flow | Amount of Gain/ | Location of Gain/ | Amount of Gain/ | Location of Gain/ | Amount of Gain/ | ||||||||||||||||||||||||||||
Hedging Relationships | (Loss) Recognized in | (Loss) Reclassified from | (Loss) Reclassified from | (Loss) Recognized in | (Loss) Recognized in | ||||||||||||||||||||||||||||
AOCI on Derivative | AOCI into Income | AOCI into Income | Income on Derivative | Income on Derivative | |||||||||||||||||||||||||||||
(Effective Portion) | (Effective Portion) | (Effective Portion) | (Ineffective Portion and | (Ineffective Portion and | |||||||||||||||||||||||||||||
Amount Excluded from | Amount Excluded from | ||||||||||||||||||||||||||||||||
Effectiveness Testing) | Effectiveness Testing) | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Foreign exchange contracts | $ | (15,186 | ) | $ | 4,859 | Foreign exchange loss | $ | (3,830 | ) | $ | (7,281 | ) | Foreign exchange loss | $ | — | $ | — | ||||||||||||||||
Derivatives not designated | Location of Gain/ | Amount of Gain/ | |||||||||||||||||||||||||||||||
as Hedging Instruments | (Loss) Recognized in | (Loss) Recognized in | |||||||||||||||||||||||||||||||
Income on Derivatives | Income on Derivatives | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | Foreign exchange loss | $ | (4,708 | ) | $ | 2,925 | |||||||||||||||||||||||||||
Fixed_Assets_Tables
Fixed Assets (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Components of Fixed Assets, Net of Accumulated Depreciation | ' | ||||||||
The components of fixed assets, net of accumulated depreciation, consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(Recasted) | |||||||||
Owned Assets: | |||||||||
Network equipment, computers and software | $ | 61,872 | $ | 62,580 | |||||
Buildings | 1,271 | 1,447 | |||||||
Land | 831 | 946 | |||||||
Leasehold improvements | 22,370 | 23,919 | |||||||
Office furniture and equipment | 10,247 | 10,695 | |||||||
Motor vehicles | 591 | 638 | |||||||
Capital work in progress | 1,200 | 1,707 | |||||||
98,382 | 101,932 | ||||||||
Less: Accumulated depreciation and amortization | (68,290 | ) | (65,581 | ) | |||||
$ | 30,092 | $ | 36,351 | ||||||
Assets under capital leases: | |||||||||
Network equipment, computers and software | $ | 107 | $ | 361 | |||||
Leasehold improvements | 1,929 | 2,454 | |||||||
Office furniture and equipment | 1,026 | 1,432 | |||||||
Motor vehicles | 864 | 954 | |||||||
3,926 | 5,201 | ||||||||
Less: Accumulated depreciation and amortization | (2,328 | ) | (2,196 | ) | |||||
$ | 1,598 | $ | 3,005 | ||||||
Fixed assets, net | $ | 31,690 | $ | 39,356 | |||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Net Gratuity Cost | ' | ||||||||||||||||
Net gratuity cost includes the following components: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Service cost | $ | 266 | $ | 230 | $ | 867 | $ | 793 | |||||||||
Interest cost | 103 | 101 | 339 | 312 | |||||||||||||
Expected return on plan assets | (38 | ) | (43 | ) | (125 | ) | (104 | ) | |||||||||
Actuarial loss | 32 | 30 | 106 | 94 | |||||||||||||
Net gratuity cost | $ | 363 | $ | 318 | $ | 1,187 | $ | 1,095 | |||||||||
Change in Plan Assets | ' | ||||||||||||||||
Change in Plan Assets | |||||||||||||||||
Plan assets at January 1, 2013 | $ | 2,201 | |||||||||||||||
Actual return | 165 | ||||||||||||||||
Effect of exchange rate changes | (280 | ) | |||||||||||||||
Plan assets at September 30, 2013 | $ | 2,086 | |||||||||||||||
Contribution to Various Defined Contribution Plans | ' | ||||||||||||||||
During the three and nine month periods ended September 30, 2013 and 2012, the Company contributed the following amounts to various defined contribution plans on behalf of its employees in India, the Philippines, Romania, Bulgaria, Malaysia and the Czech Republic: | |||||||||||||||||
Three months ended September 30, 2013 | $ | 1,289 | |||||||||||||||
Three months ended September 30, 2012 | $ | 1,384 | |||||||||||||||
Nine months ended September 30, 2013 | $ | 4,149 | |||||||||||||||
Nine months ended September 30, 2012 | $ | 4,227 |
Leases_Tables
Leases (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Leases [Abstract] | ' | ||||
Future Minimum Lease Payments under Capital Leases | ' | ||||
Future minimum lease payments under these capital leases as of September 30, 2013 are as follows: | |||||
Year ending September 30, | |||||
2014 | $ | 1,335 | |||
2015 | 1,041 | ||||
2016 | 574 | ||||
2017 | 49 | ||||
Total minimum lease payments | 2,999 | ||||
Less: amount representing interest | 337 | ||||
Present value of minimum lease payments | 2,662 | ||||
Less: current portion | 1,129 | ||||
Long term capital lease obligation | $ | 1,533 | |||
Future Minimum Lease Payments under Non-Cancelable Operating Lease Agreements Expiring after More Than Twelve Months | ' | ||||
Future minimum lease payments under non-cancelable operating lease agreements expiring after more than twelve months are as follows: | |||||
Year ending September 30, | |||||
2014 | $ | 8,419 | |||
2015 | 7,459 | ||||
2016 | 4,608 | ||||
2017 | 973 | ||||
2018 | 728 | ||||
2019 and thereafter | 643 | ||||
$ | 22,830 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Income Tax Disclosure [Abstract] | ' | ||||
Summary of Activity Related to Gross Unrecognized Tax Benefits | ' | ||||
The following table summarizes the activity related to the gross unrecognized tax benefits from January 1, 2013 through September 30, 2013: | |||||
Balance as of January 1, 2013 | $ | 3,019 | |||
Increases related to prior year tax positions | — | ||||
Decreases related to prior year tax positions | — | ||||
Increases related to current year tax positions | — | ||||
Decreases related to current year tax positions | — | ||||
Effect of exchange rate changes | (245 | ) | |||
Balance as of September 30, 2013 | $ | 2,774 | |||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Costs Related to Company Stock-Based Compensation Plan | ' | ||||||||||||||||
The following costs related to the Company’s stock-based compensation plan are included in the unaudited consolidated statements of income: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Cost of revenue | $ | 660 | $ | 330 | $ | 2,058 | $ | 1,571 | |||||||||
General and administrative expenses | 1,142 | 867 | 3,958 | 3,472 | |||||||||||||
Selling and marketing expenses | 1,165 | 674 | 3,456 | 2,286 | |||||||||||||
Total(1) | $ | 2,967 | $ | 1,871 | $ | 9,472 | $ | 7,329 | |||||||||
-1 | The Company, during the three and nine months period ended September 30, 2013, recognized an additional stock compensation expense of $854 as a result of modified vesting conditions on certain restricted stock units. | ||||||||||||||||
Fair Value of Each Stock Option Granted to Employees | ' | ||||||||||||||||
The fair value of each stock option granted to employees is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Dividend yield | — | — | 0 | % | 0 | % | |||||||||||
Expected life (years) | — | — | 5.5 | 5.38 | |||||||||||||
Risk free interest rate | — | — | 0.87 | % | 0.97 | % | |||||||||||
Volatility | — | — | 40 | % | 40 | % | |||||||||||
Share Based Compensation Stock Options Activity | ' | ||||||||||||||||
Stock option activity under the Company’s stock plans is shown below: | |||||||||||||||||
Number of | Weighted-Average | Aggregate | Weighted-Average | ||||||||||||||
Options | Exercise Price | Intrinsic Value | Remaining | ||||||||||||||
Contractual Life | |||||||||||||||||
(Years) | |||||||||||||||||
Outstanding at December 31, 2012 | 2,454,634 | $ | 15.3 | $ | 27,554 | 6.38 | |||||||||||
Granted | 14,301 | 26.76 | |||||||||||||||
Exercised | (412,726 | ) | 11.2 | ||||||||||||||
Forfeited | (27,279 | ) | 24.13 | ||||||||||||||
Outstanding at September 30, 2013 | 2,028,930 | $ | 16.09 | $ | 25,133 | 5.78 | |||||||||||
Vested and exercisable at September 30, 2013 | 1,461,044 | $ | 13.66 | $ | 21,649 | 5.12 | |||||||||||
Available for grant at September 30, 2013 | 1,813,144 | ||||||||||||||||
Restricted Stock and Restricted Stock Unit Activity | ' | ||||||||||||||||
Restricted stock and restricted stock unit activity under the Company’s stock plans is shown below: | |||||||||||||||||
Restricted Stock | Restricted Stock Units | ||||||||||||||||
Number | Weighted-Average | Number | Weighted-Average | ||||||||||||||
Intrinsic Value | Intrinsic Value | ||||||||||||||||
Outstanding at December 31, 2012* | 5,207 | $ | 17.58 | 1,025,911 | $ | 21.36 | |||||||||||
Granted | — | — | 508,630 | 29.48 | |||||||||||||
Vested | (373 | ) | 15.72 | (287,866 | ) | 20.1 | |||||||||||
Forfeited | (400 | ) | 17.72 | (78,778 | ) | 24.76 | |||||||||||
Outstanding at September 30, 2013* | 4,434 | $ | 17.72 | 1,167,897 | $ | 24.97 | |||||||||||
* | Excludes 116,000 and 124,000 vested restricted stock units as of September 30, 2013 and December 31, 2012, respectively, for which the underlying common stock is yet to be issued. |
Geographical_Information_Table
Geographical Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Revenues Based on Geographical Information | ' | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenues | |||||||||||||||||
United States | $ | 91,995 | $ | 80,949 | $ | 259,769 | $ | 234,514 | |||||||||
United Kingdom | 23,000 | 23,061 | 70,186 | 66,046 | |||||||||||||
Rest of World | 7,320 | 8,629 | 24,374 | 24,717 | |||||||||||||
$ | 122,315 | $ | 112,639 | $ | 354,329 | $ | 325,277 | ||||||||||
Fixed Assets, Net Based on Geographical Information | ' | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Fixed assets, net | |||||||||||||||||
India | $ | 20,274 | $ | 29,539 | |||||||||||||
United States | 4,119 | 4,418 | |||||||||||||||
Philippines | 6,589 | 4,363 | |||||||||||||||
Rest of World | 708 | 1,036 | |||||||||||||||
$ | 31,690 | $ | 39,356 | ||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Summary of Accrued Expenses and Other Current Liabilities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Accrued expenses | $16,501 | $20,134 |
Derivative instruments | 11,680 | 6,403 |
Other current liabilities | 4,303 | 5,200 |
Accrued expenses and other current liabilities | $32,484 | $31,737 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Summary of Non-current Liabilities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of non-current liabilities | ' | ' |
Derivative instruments | $8,084 | $3,458 |
Unrecognized tax benefits | 2,513 | 2,680 |
Deferred rent | 4,986 | 4,631 |
Retirement benefits | 2,594 | 2,380 |
Other non-current liabilities | 153 | 1,168 |
Non-current liabilities | $18,330 | $14,317 |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Numerators: | ' | ' | ' | ' |
Net income | $13,240 | $11,703 | $32,238 | $29,673 |
Denominators: | ' | ' | ' | ' |
Basic weighted average common shares outstanding | 32,907,281 | 32,154,001 | 32,737,267 | 31,857,909 |
Dilutive effect of share based awards | 1,048,164 | 1,129,853 | 1,122,258 | 1,197,948 |
Diluted weighted average common shares outstanding | 33,955,445 | 33,283,854 | 33,859,525 | 33,055,857 |
Earnings per share: | ' | ' | ' | ' |
Basic | $0.40 | $0.36 | $0.98 | $0.93 |
Diluted | $0.39 | $0.35 | $0.95 | $0.90 |
Weighted average common shares considered anti-dilutive in computing diluted earnings per share | 219,189 | 412,873 | 242,269 | 430,309 |
Segment_Information_Revenues_a
Segment Information - Revenues and Cost of Revenues for Company's Outsourcing Services and Transformation Services Segments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues and cost of revenues for Company's outsourcing services and transformation services segments [Line Items] | ' | ' | ' | ' |
Revenues | $122,315 | $112,639 | $354,329 | $325,277 |
Cost of revenues (exclusive of depreciation and amortization) | 72,049 | 68,650 | 218,892 | 201,367 |
Gross profit | 50,266 | 43,989 | 135,437 | 123,910 |
Operating expenses | 30,753 | 27,119 | 90,992 | 82,216 |
Other income/(expense) | -2,043 | -838 | -1,365 | -1,046 |
Income tax provision | 4,230 | 4,329 | 10,842 | 10,975 |
Net income | 13,240 | 11,703 | 32,238 | 29,673 |
Operating Segments [Member] | Outsourcing Services [Member] | ' | ' | ' | ' |
Revenues and cost of revenues for Company's outsourcing services and transformation services segments [Line Items] | ' | ' | ' | ' |
Revenues | 99,672 | 91,984 | 294,573 | 270,640 |
Cost of revenues (exclusive of depreciation and amortization) | 56,531 | 55,658 | 175,490 | 166,637 |
Gross profit | 43,141 | 36,326 | 119,083 | 104,003 |
Operating Segments [Member] | Transformation Services [Member] | ' | ' | ' | ' |
Revenues and cost of revenues for Company's outsourcing services and transformation services segments [Line Items] | ' | ' | ' | ' |
Revenues | 22,643 | 20,655 | 59,756 | 54,637 |
Cost of revenues (exclusive of depreciation and amortization) | 15,518 | 12,992 | 43,402 | 34,730 |
Gross profit | $7,125 | $7,663 | $16,354 | $19,907 |
Business_Combinations_Goodwill2
Business Combinations, Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 1 Months Ended | 9 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 12, 2012 | Sep. 30, 2013 |
Customer Relationships [Member] | Leasehold Benefits [Member] | Developed Technology [Member] | Non-compete agreements [Member] | Trade Names and Trademarks [Member] | Landacorp Inc [Member] | Landacorp Inc [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of members in a company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'more than 50 million | ' |
Acquisition of Landacorp, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12-Oct-12 |
Amortization expense | $1,534 | $1,324 | $4,764 | $4,083 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average life of intangible assets | ' | ' | ' | ' | ' | '8 years 9 months 18 days | '6 years 9 months 18 days | '8 years | '1 year 6 months 0 days | '3 years 6 months 0 days | ' | ' |
Indefinite life trade names and trademarks | $900 | ' | $900 | ' | $900 | ' | ' | ' | ' | ' | ' | ' |
Business_Combinations_Goodwill3
Business Combinations, Goodwill and Intangible Assets - Summary of Total Purchase Price of Acquisitions (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Business Combinations [Abstract] | ' |
Enterprise Value | $37,500 |
Add: Working capital adjustments | 1,183 |
Total purchase price | $38,683 |
Business_Combinations_Goodwill4
Business Combinations, Goodwill and Intangible Assets - Summary of Purchase Price Allocation for Acquisitions (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Assets | ' |
Net tangible assets, Revised Allocation | $9,261 |
Goodwill, Revised Allocation | 19,276 |
Total purchase price | 38,683 |
Net tangible assets, Initial Allocation | 10,727 |
Goodwill, Initial Allocation | 14,999 |
Total purchase price | 38,683 |
Customer Relationships [Member] | ' |
Assets | ' |
Identifiable intangible assets, Revised Allocation | 5,664 |
Identifiable intangible assets, Initial Allocation | 7,095 |
Developed Technology [Member] | ' |
Assets | ' |
Identifiable intangible assets, Revised Allocation | 3,881 |
Identifiable intangible assets, Initial Allocation | 5,313 |
Trade Names and Trademarks [Member] | ' |
Assets | ' |
Identifiable intangible assets, Revised Allocation | 601 |
Identifiable intangible assets, Initial Allocation | $549 |
Business_Combinations_Goodwill5
Business Combinations, Goodwill and Intangible Assets - Summary of Company's Goodwill (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | ' | ' |
Beginning Balance | $110,948 | $92,287 |
Goodwill arising from Landacorp acquisition | ' | 19,276 |
Purchase accounting adjustments | ' | 422 |
Currency translation adjustments | -3,640 | -1,037 |
Allocation on sale of a business unit | -250 | ' |
Ending Balance | 107,058 | 110,948 |
Outsourcing Services [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning Balance | 94,163 | 75,502 |
Goodwill arising from Landacorp acquisition | ' | 19,276 |
Purchase accounting adjustments | ' | 422 |
Currency translation adjustments | -3,640 | -1,037 |
Allocation on sale of a business unit | -250 | ' |
Ending Balance | 90,273 | 94,163 |
Transformation Services [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning Balance | 16,785 | 16,785 |
Goodwill arising from Landacorp acquisition | ' | ' |
Purchase accounting adjustments | ' | ' |
Currency translation adjustments | ' | ' |
Allocation on sale of a business unit | ' | ' |
Ending Balance | $16,785 | $16,785 |
Business_Combinations_Goodwill6
Business Combinations, Goodwill and Intangible Assets - Summary of Company's Goodwill (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' |
Net loss recognized from the sale of business unit | $190 | $190 |
Business_Combinations_Goodwill7
Business Combinations, Goodwill and Intangible Assets - Summary of Company's Intangible Assets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $52,201 | $52,734 |
Accumulated Amortization | -16,580 | -12,023 |
Net Carrying Amount | 35,621 | 40,711 |
Customer Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 38,602 | 38,728 |
Accumulated Amortization | -11,107 | -7,832 |
Net Carrying Amount | 27,495 | 30,896 |
Leasehold Benefits [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 2,947 | 3,355 |
Accumulated Amortization | -1,366 | -1,213 |
Net Carrying Amount | 1,581 | 2,142 |
Developed Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 6,014 | 6,013 |
Accumulated Amortization | -1,266 | -683 |
Net Carrying Amount | 4,748 | 5,330 |
Non-compete agreements [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 1,316 | 1,316 |
Accumulated Amortization | -1,316 | -1,316 |
Trade Names and Trademarks [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 3,322 | 3,322 |
Accumulated Amortization | -1,525 | -979 |
Net Carrying Amount | $1,797 | $2,343 |
Business_Combinations_Goodwill8
Business Combinations, Goodwill and Intangible Assets - Estimated Amortization of Intangible Assets (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' |
2014 | $5,938 |
2015 | 5,538 |
2016 | 5,538 |
2017 | 5,530 |
2018 | $5,413 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Detail) (Fair Value, Measurements, Recurring [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Money market and mutual funds | $96,781 | $64,766 |
Derivative financial instruments | 603 | 1,730 |
Total | 97,384 | 66,496 |
Liabilities | ' | ' |
Derivative financial instruments | 19,764 | 9,861 |
Total | 19,764 | 9,861 |
Level 1 [Member] | ' | ' |
Assets | ' | ' |
Money market and mutual funds | 96,781 | 64,766 |
Derivative financial instruments | ' | ' |
Total | 96,781 | 64,766 |
Liabilities | ' | ' |
Derivative financial instruments | ' | ' |
Total | ' | ' |
Level 2 [Member] | ' | ' |
Assets | ' | ' |
Money market and mutual funds | ' | ' |
Derivative financial instruments | 603 | 1,730 |
Total | 603 | 1,730 |
Liabilities | ' | ' |
Derivative financial instruments | 19,764 | 9,861 |
Total | 19,764 | 9,861 |
Level 3 [Member] | ' | ' |
Assets | ' | ' |
Money market and mutual funds | ' | ' |
Derivative financial instruments | ' | ' |
Total | ' | ' |
Liabilities | ' | ' |
Derivative financial instruments | ' | ' |
Total | ' | ' |
Derivatives_and_Hedge_Accounti2
Derivatives and Hedge Accounting - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
USD ($) | USD ($) | USD ($) | USD ($) | Foreign Currency Exchange Contracts [Member] | Foreign Currency Exchange Contracts [Member] | Foreign Currency Exchange Contracts [Member] | Foreign Currency Exchange Contracts [Member] | |
USD ($) | GBP (£) | USD ($) | GBP (£) | |||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign exchange contracts outstanding | ' | ' | ' | ' | $262,454 | £ 11,800 | $221,255 | £ 11,544 |
Net derivative losses which could be reclassified into earnings within the next 12 months | ' | ' | 11,430 | ' | ' | ' | ' | ' |
Period of accumulated other comprehensive loss reclassified into earnings | ' | ' | '12 months | ' | ' | ' | ' | ' |
Maximum outstanding term of derivative instruments | '45 months | ' | '45 months | ' | ' | ' | ' | ' |
Gain/(Losses) that reclassified from AOCI into earning as a result of forecasted transaction | $0 | $0 | $0 | $0 | ' | ' | ' | ' |
Derivatives_and_Hedge_Accounti3
Derivatives and Hedge Accounting - Summary of Fair Value of Foreign Currency Exchange Contracts (Detail) (Foreign Currency Exchange Contracts [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivatives Designated as Hedging Instruments [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Foreign currency exchange contracts, Asset | $250 | $980 |
Derivatives Designated as Hedging Instruments [Member] | Other Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Foreign currency exchange contracts, Asset | 181 | 750 |
Derivatives Designated as Hedging Instruments [Member] | Accrued Expenses and Other Current Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Foreign currency exchange contracts, Liability | 11,680 | 6,249 |
Derivatives Designated as Hedging Instruments [Member] | Other Non Current Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Foreign currency exchange contracts, Liability | 8,084 | 3,458 |
Derivatives not Designated as Hedging Instruments [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Foreign currency exchange contracts, Asset | 172 | ' |
Derivatives not Designated as Hedging Instruments [Member] | Accrued Expenses and Other Current Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Foreign currency exchange contracts, Liability | ' | $154 |
Derivatives_and_Hedge_Accounti4
Derivatives and Hedge Accounting - Summary of Effect of Foreign Currency Exchange Contracts on Consolidated Statements of Income (Detail) (Foreign Currency Exchange Contracts [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivatives Designated as Hedging Instruments [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion) | ($6,210) | $9,980 | ($15,186) | $4,859 |
Foreign Exchange Loss [Member] | Derivatives not Designated as Hedging Instruments [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Recognized in Income on Derivatives | -2,169 | 2,623 | -4,708 | 2,925 |
Foreign Exchange Loss [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ' | ' | ' | ' |
Foreign Exchange Loss [Member] | Derivatives Designated as Hedging Instruments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion) | ($1,332) | ($2,018) | ($3,830) | ($7,281) |
Fixed_Assets_Components_of_Fix
Fixed Assets - Components of Fixed Assets, Net of Accumulated Depreciation (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Owned Assets: | ' | ' |
Assets, Gross | $98,382 | $101,932 |
Less: Accumulated depreciation and amortization | -68,290 | -65,581 |
Owned Assets, net | 30,092 | 36,351 |
Assets under capital leases: | ' | ' |
Capital Leased Assets, Gross | 3,926 | 5,201 |
Less: Accumulated depreciation and amortization | -2,328 | -2,196 |
Assets under capital leases, net | 1,598 | 3,005 |
Fixed assets, net | 31,690 | 39,356 |
Network Equipment, Computers and Software [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | 61,872 | 62,580 |
Assets under capital leases: | ' | ' |
Capital Leased Assets, Gross | 107 | 361 |
Buildings [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | 1,271 | 1,447 |
Land [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | 831 | 946 |
Leasehold Improvements [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | 22,370 | 23,919 |
Assets under capital leases: | ' | ' |
Capital Leased Assets, Gross | 1,929 | 2,454 |
Office Furniture and Equipment [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | 10,247 | 10,695 |
Assets under capital leases: | ' | ' |
Capital Leased Assets, Gross | 1,026 | 1,432 |
Motor Vehicles [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | 591 | 638 |
Assets under capital leases: | ' | ' |
Capital Leased Assets, Gross | 864 | 954 |
Capital Work in Progress [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | $1,200 | $1,707 |
Fixed_Assets_Additional_Inform
Fixed Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Property Plant And Equipment [Abstract] | ' | ' | ' | ' |
Depreciation and amortization expense | $4,435 | $5,009 | $14,079 | $14,649 |
Capital_Structure_Additional_I
Capital Structure - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Acquisition of restricted stock from employees in connection with withholding tax payments | 13,018 | 12,865 |
Withholding tax payments related to the vesting of restricted stock for total consideration | $389 | $331 |
Common stock price per share | $29.89 | ' |
Employee_Benefit_Plans_Net_Gra
Employee Benefit Plans - Net Gratuity Cost (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Compensation And Retirement Disclosure [Abstract] | ' | ' | ' | ' |
Service cost | $266 | $230 | $867 | $793 |
Interest cost | 103 | 101 | 339 | 312 |
Expected return on plan assets | -38 | -43 | -125 | -104 |
Actuarial loss | 32 | 30 | 106 | 94 |
Net gratuity cost | $363 | $318 | $1,187 | $1,095 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 |
Compensation And Retirement Disclosure [Abstract] | ' | ' | ' | ' | ' |
Percentage of expected return on the Gratuity Plans | ' | ' | ' | ' | 9.50% |
Percentage of discretionary contributions, Maximum | 3.00% | 3.00% | 3.00% | 3.00% | ' |
Company's contribution to the 401(k) Plans | $370 | $245 | $1,343 | $925 | ' |
Employee_Benefit_Plans_Change_
Employee Benefit Plans - Change in Plan Assets (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Change in Plan Assets | ' |
Plan assets at January 1, 2013 | $2,201 |
Actual return | 165 |
Effect of exchange rate changes | -280 |
Plan assets at September 30, 2013 | $2,086 |
Employee_Benefit_Plans_Contrib
Employee Benefit Plans - Contribution to Various Defined Contribution Plans (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Compensation And Retirement Disclosure [Abstract] | ' | ' | ' | ' |
Contribution to various defined contribution plans | $1,289 | $1,384 | $4,149 | $4,227 |
Leases_Future_Minimum_Lease_Pa
Leases - Future Minimum Lease Payments under Capital Leases (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Leases [Abstract] | ' | ' |
2014 | $1,335 | ' |
2015 | 1,041 | ' |
2016 | 574 | ' |
2017 | 49 | ' |
Total minimum lease payments | 2,999 | ' |
Less: amount representing interest | 337 | ' |
Present value of minimum lease payments | 2,662 | ' |
Less: current portion | 1,129 | 1,685 |
Long term capital lease obligation | $1,533 | $2,679 |
Leases_Future_Minimum_Lease_Pa1
Leases - Future Minimum Lease Payments under Non-Cancelable Operating Lease Agreements Expiring after More Than Twelve Months (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | ' |
2014 | $8,419 |
2015 | 7,459 |
2016 | 4,608 |
2017 | 973 |
2018 | 728 |
2019 and thereafter | 643 |
Total operating lease payments | $22,830 |
Leases_Additional_Information_
Leases - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Leases [Abstract] | ' | ' | ' | ' | ' |
Rent expense under both cancellable and non-cancellable operating leases | $4,264 | $4,341 | $13,049 | $13,325 | ' |
Deferred rent | $5,242 | ' | $5,242 | ' | $4,893 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' |
Income tax expense | $4,230 | $4,329 | ' | $10,842 | $10,975 | ' |
Effective tax rates | 24.20% | 27.00% | ' | 25.20% | 27.00% | ' |
Income tax holiday on the Phillipines operations | ' | ' | ' | 'May 2012 | ' | ' |
Company's current benefits from income tax holiday | ' | ' | ' | '4 years | ' | ' |
Extendable income tax holiday | ' | ' | ' | '4 years | ' | ' |
Number of year of expected extendable period | ' | ' | ' | '1 year | ' | ' |
Number of year of extended retroactive | ' | ' | ' | '1 year | ' | ' |
Tax benefit expiration date | ' | ' | ' | 'May 2014 | ' | ' |
Tax exemption on profit of the Company's Bengaluru operations | ' | ' | 100.00% | 50.00% | ' | ' |
Period completed by Bengaluru operation | ' | ' | ' | '5 years | ' | ' |
Valuation allowance | 665 | ' | ' | 665 | ' | 665 |
Deferred income taxes related to the MAT | 2,989 | ' | ' | 2,989 | ' | 2,932 |
Deferred income taxes related to the MAT expiration year | ' | ' | ' | '2024 | ' | ' |
Recognized interest and penalties | 52 | ' | ' | 169 | ' | ' |
Unrecognized tax benefits | $2,774 | ' | ' | $2,774 | ' | $3,019 |
Income_Taxes_Summary_of_Activi
Income Taxes - Summary of Activity Related to Gross Unrecognized Tax Benefits (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' |
Balance as of January 1, 2013 | $3,019 |
Increases related to prior year tax positions | ' |
Decreases related to prior year tax positions | ' |
Increases related to current year tax positions | ' |
Decreases related to current year tax positions | ' |
Effect of exchange rate changes | -245 |
Balance as of September 30, 2013 | $2,774 |
StockBased_Compensation_Costs_
Stock-Based Compensation - Costs Related to Company Stock-Based Compensation Plan (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total | $2,967 | $1,871 | $9,472 | $7,329 |
Cost of Revenue [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total | 660 | 330 | 2,058 | 1,571 |
General and Administrative Expenses [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total | 1,142 | 867 | 3,958 | 3,472 |
Selling and Marketing Expenses [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total | $1,165 | $674 | $3,456 | $2,286 |
StockBased_Compensation_Costs_1
Stock-Based Compensation - Costs Related to Company Stock-Based Compensation Plan (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Additional compensation expense | $854 | $854 |
StockBased_Compensation_Fair_V
Stock-Based Compensation - Fair Value of Each Stock Option Granted to Employees (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' | ' |
Dividend yield | ' | ' | 0.00% | 0.00% |
Expected life (years) | ' | ' | '5 years 6 months | '5 years 4 months 17 days |
Risk free interest rate | ' | ' | 0.87% | 0.97% |
Volatility | ' | ' | 40.00% | 40.00% |
StockBased_Compensation_Share_
Stock-Based Compensation - Share Based Compensation Stock Options Activity (Detail) (Stock Options [Member], USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Stock Options [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number of Options, Outstanding, Beginning Balance | 2,454,634 | ' |
Number of Options, Granted | 14,301 | ' |
Number of Options, Exercised | -412,726 | ' |
Number of Options, Forfeited | -27,279 | ' |
Number of Options, Outstanding, Ending Balance | 2,028,930 | 2,454,634 |
Number of Options, Vested and exercisable at September 30, 2013 | 1,461,044 | ' |
Available for grant at September 30, 2013 | 1,813,144 | ' |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $15.30 | ' |
Weighted-Average Exercise Price, Granted | $26.76 | ' |
Weighted Average Exercise Price, Exercised | $11.20 | ' |
Weighted Average Exercise Price, Forfeited | $24.13 | ' |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $16.09 | $15.30 |
Options vested and exercisable, Weighted Average Exercise Price | $13.66 | ' |
Aggregate Intrinsic Value Outstanding, Beginning Balance | $27,554 | ' |
Aggregate Intrinsic Value Outstanding, Ending Balance | 25,133 | 27,554 |
Aggregate Intrinsic Value, Vested and exercisable at September 30, 2013 | $21,649 | ' |
Weighted Average Remaining Contractual Life (Years) Outstanding | '5 years 9 months 11 days | '6 years 4 months 17 days |
Weighted Average Remaining Contractual Life (Years) Vested and Exercisable at September 30, 2013 | '5 years 1 month 13 days | ' |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected weighted average period | ' | ' | '1 year 11 months 5 days | ' |
Weighted average fair value of options granted | ' | ' | $10.07 | $9.43 |
Total fair value of options vested in period | $541 | $409 | $2,865 | $2,757 |
2003 Plan [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Unrecognized compensation cost for unvested options | $3,252 | ' | $3,252 | ' |
StockBased_Compensation_Restri
Stock-Based Compensation - Restricted Stock and Restricted Stock Unit Activity (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number, Outstanding, Beginning Balance | 5,207 |
Number, Granted | ' |
Number, Vested | -373 |
Number, Forfeited | -400 |
Number, Outstanding, Ending Balance | 4,434 |
Weighted-Average Intrinsic Value, Outstanding, Beginning Balance | $17.58 |
Weighted-Average Intrinsic Value, Granted | ' |
Weighted-Average Intrinsic Value, Vested | $15.72 |
Weighted-Average Intrinsic Value, Forfeited | $17.72 |
Weighted-Average Intrinsic Value, Outstanding, Ending Balance | $17.72 |
Restricted Stock Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number, Outstanding, Beginning Balance | 1,025,911 |
Number, Granted | 508,630 |
Number, Vested | -287,866 |
Number, Forfeited | -78,778 |
Number, Outstanding, Ending Balance | 1,167,897 |
Weighted-Average Intrinsic Value, Outstanding, Beginning Balance | $21.36 |
Weighted-Average Intrinsic Value, Granted | $29.48 |
Weighted-Average Intrinsic Value, Vested | $20.10 |
Weighted-Average Intrinsic Value, Forfeited | $24.76 |
Weighted-Average Intrinsic Value, Outstanding, Ending Balance | $24.97 |
StockBased_Compensation_Restri1
Stock-Based Compensation - Restricted Stock and Restricted Stock Unit Activity (Parenthetical) (Detail) (Restricted Stock Units [Member], USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Restricted Stock Units [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Restricted stock units vested during the year for which underlying common stock to be issued | 116,000 | 124,000 |
Unrecognized compensation cost | $21,735 | ' |
Expected expensed over a weighted average period | '2 years 7 months 10 days | ' |
Geographical_Information_Reven
Geographical Information - Revenues Based on Geographical Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues | ' | ' | ' | ' |
Revenues | $122,315 | $112,639 | $354,329 | $325,277 |
Reportable Geographical Components [Member] | United States [Member] | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Revenues | 91,995 | 80,949 | 259,769 | 234,514 |
Reportable Geographical Components [Member] | United Kingdom [Member] | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Revenues | 23,000 | 23,061 | 70,186 | 66,046 |
Reportable Geographical Components [Member] | Rest of World [Member] | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Revenues | $7,320 | $8,629 | $24,374 | $24,717 |
Geographical_Information_Fixed
Geographical Information - Fixed Assets, Net Based on Geographical Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fixed assets, net | ' | ' |
Total Fixed assets | $31,690 | $39,356 |
Reportable Geographical Components [Member] | India [Member] | ' | ' |
Fixed assets, net | ' | ' |
Total Fixed assets | 20,274 | 29,539 |
Reportable Geographical Components [Member] | United States [Member] | ' | ' |
Fixed assets, net | ' | ' |
Total Fixed assets | 4,119 | 4,418 |
Reportable Geographical Components [Member] | Philippines [Member] | ' | ' |
Fixed assets, net | ' | ' |
Total Fixed assets | 6,589 | 4,363 |
Reportable Geographical Components [Member] | Rest of World [Member] | ' | ' |
Fixed assets, net | ' | ' |
Total Fixed assets | $708 | $1,036 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Commitments And Contingencies Disclosure [Abstract] | ' | ' |
Purchase commitments, net of advances | $3,095 | ' |
Export-Oriented units established percentage | 100.00% | ' |
Transfer pricing issues starting period | '2003 | ' |
Transfer pricing issues ending period | '2009 | ' |
Transfer pricing establishment issues starting period | '2003 | ' |
Transfer pricing establishment issues ending period | '2007 | ' |
Aggregate disputed amount | 14,815 | 18,624 |
Bank guarantees provided | 12,927 | 14,715 |
Amounts paid as deposits in respect of contingencies | 10,811 | 12,307 |
Bank guarantees issued | $2,116 | $2,408 |