Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 24, 2014 | Jun. 30, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'EXLS | ' | ' |
Entity Registrant Name | 'ExlService Holdings, Inc. | ' | ' |
Entity Central Index Key | '0001297989 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 32,518,425 | ' |
Entity Public Float | ' | ' | $926,644,427 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $148,065 | $103,037 |
Short-term investments | 5,987 | 6,137 |
Restricted cash | 423 | 573 |
Accounts receivable, net | 76,121 | 72,443 |
Prepaid expenses | 5,168 | 5,072 |
Deferred tax assets, net | 6,958 | 7,460 |
Advance income tax, net | 2,024 | 4,317 |
Other current assets | 7,881 | 7,065 |
Total current assets | 252,627 | 206,104 |
Fixed assets, net | 34,564 | 39,356 |
Restricted cash | 3,568 | 3,752 |
Deferred tax assets, net | 12,254 | 14,123 |
Intangible assets, net | 34,115 | 40,711 |
Goodwill | 107,407 | 110,948 |
Other assets | 18,897 | 20,860 |
Total assets | 463,432 | 435,854 |
Current liabilities: | ' | ' |
Accounts payable | 4,714 | 3,604 |
Deferred revenue | 8,618 | 7,922 |
Accrued employee cost | 29,405 | 29,393 |
Accrued expenses and other current liabilities | 32,219 | 31,737 |
Current portion of capital lease obligations | 1,119 | 1,685 |
Total current liabilities | 76,075 | 74,341 |
Capital lease obligations, less current portion | 1,371 | 2,679 |
Non-current liabilities | 19,812 | 14,317 |
Total liabilities | 97,258 | 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, 33,342,312 shares issued and 32,172,183 shares outstanding as of December 31, 2013 and 32,540,082 shares issued and 32,203,820 shares outstanding as of December 31, 2012 | 33 | 33 |
Additional paid-in-capital | 214,522 | 195,248 |
Retained earnings | 236,979 | 188,882 |
Accumulated other comprehensive loss | -60,718 | -36,647 |
Total stockholders' equity including shares held in treasury | 390,816 | 347,516 |
Less: 1,170,129 shares as of December 31, 2013 and 336,262 shares as of December 31, 2012, held in treasury, at cost | -24,642 | -3,024 |
ExlService Holdings, Inc. stockholders' equity | 366,174 | 344,492 |
Non-controlling interest | ' | 25 |
Total stockholders' equity | 366,174 | 344,517 |
Total liabilities and stockholders' equity | $463,432 | $435,854 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 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 | 33,342,312 | 32,540,082 |
Common stock, shares outstanding | 32,172,183 | 32,203,820 |
Treasury stock, shares | 1,170,129 | 336,262 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Revenues | $478,452 | $442,930 | $360,541 |
Cost of revenues (exclusive of depreciation and amortization) | 290,942 | 271,876 | 219,987 |
Gross profit | 187,510 | 171,054 | 140,554 |
Operating expenses: | ' | ' | ' |
General and administrative expenses | 58,797 | 57,192 | 50,660 |
Selling and marketing expenses | 36,376 | 31,007 | 25,582 |
Depreciation and amortization | 24,917 | 25,623 | 22,994 |
Total operating expenses | 120,090 | 113,822 | 99,236 |
Income from operations | 67,420 | 57,232 | 41,318 |
Other income/(expense) : | ' | ' | ' |
Foreign exchange (loss)/gain | -4,990 | -2,509 | 3,373 |
Interest and other income, net | 2,547 | 1,997 | 1,957 |
Income before income taxes | 64,977 | 56,720 | 46,648 |
Income tax provision | 16,880 | 14,884 | 11,868 |
Net income | $48,097 | $41,836 | $34,780 |
Earnings per share: | ' | ' | ' |
Basic | $1.47 | $1.31 | $1.15 |
Diluted | $1.42 | $1.26 | $1.10 |
Weighted-average number of shares used in computing earnings per share: | ' | ' | ' |
Basic | 32,750,178 | 31,968,386 | 30,264,805 |
Diluted | 33,842,938 | 33,171,105 | 31,546,144 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income/(Loss) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | |||
Net income | $48,097 | $41,836 | $34,780 | |||
Other comprehensive income/(loss): | ' | ' | ' | |||
Unrealized (loss)/gain on effective cash flow hedges, net of taxes ($1,840), $192, and ($5,509), respectively | -7,759 | 516 | -14,820 | |||
Foreign currency translation adjustment | -19,605 | -4,149 | -24,844 | |||
Retirement benefits, net of taxes ($91), ($65) and ($66), respectively | -331 | -193 | -285 | |||
Reclassification adjustments | ' | ' | ' | |||
Realized loss/(gain) on cash flow hedges, net of taxes $1,625, $2,106 and ($484), respectively | 3,516 | [1] | 6,938 | [1] | -1,116 | [1] |
Retirement benefits, net of taxes $31, $26 and $22 | 108 | [2] | 99 | [2] | 81 | [2] |
Total other comprehensive (loss)/income | -24,071 | 3,211 | -40,984 | |||
Total comprehensive income/(loss) | $24,026 | $45,047 | ($6,204) | |||
[1] | These are reclassified to net income and are included in the foreign exchange loss in the consolidated statements of income. See Note 7 to the consolidated financial statements. | |||||
[2] | These are reclassified to net income and are included in the computation of net periodic pension costs in the consolidated statements of income. See Note 10 to the consolidated financial statements. |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income/(Loss) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Taxes on unrealized (loss)/gain on cash flow hedges | ($1,840) | $192 | ($5,509) |
Retirement benefits, taxes | -91 | -65 | -66 |
Taxes on realized loss on cash flow hedges | 1,625 | 2,106 | -484 |
Retirement benefits, taxes | $31 | $26 | $22 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] | Treasury Stock [Member] | Non - Controlling Interest [Member] |
In Thousands, except Share data | |||||||
Beginning balance at Dec. 31, 2010 | $248,546 | $30 | $136,173 | $112,266 | $1,126 | ($1,069) | $20 |
Beginning balance, Shares at Dec. 31, 2010 | ' | 29,690,463 | ' | ' | ' | -252,502 | ' |
Stock issued on exercise/vesting of equity awards | 5,535 | ' | 5,535 | ' | ' | ' | ' |
Stock issued on exercise/vesting of equity awards, Shares | ' | 805,998 | ' | ' | ' | ' | ' |
Stock issued in primary offering | 21,526 | 1 | 21,525 | ' | ' | ' | ' |
Stock issued in primary offering, Shares | ' | 1,000,000 | ' | ' | ' | ' | ' |
Non-employee stock options | 21 | ' | 21 | ' | ' | ' | ' |
Stock based compensation | 9,462 | ' | 9,462 | ' | ' | ' | ' |
Excess tax benefit from stock based compensation | 1,210 | ' | 1,210 | ' | ' | ' | ' |
Acquisition of treasury stock | -1,624 | ' | ' | ' | ' | -1,624 | ' |
Acquisition of treasury stock, Shares | ' | ' | ' | ' | ' | -70,895 | ' |
Non controlling interest | 3 | ' | ' | ' | ' | ' | 3 |
Other comprehensive income/(loss) | -40,984 | ' | ' | ' | -40,984 | ' | ' |
Net income | 34,780 | ' | ' | 34,780 | ' | ' | ' |
Ending balance at Dec. 31, 2011 | 278,475 | 31 | 173,926 | 147,046 | -39,858 | -2,693 | 23 |
Ending balance, Shares at Dec. 31, 2011 | ' | 31,496,461 | ' | ' | ' | -323,397 | ' |
Stock issued on exercise/vesting of equity awards | 9,603 | 2 | 9,601 | ' | ' | ' | ' |
Stock issued on exercise/vesting of equity awards, Shares | ' | 1,043,621 | ' | ' | ' | ' | ' |
Non-employee stock options | 32 | ' | 32 | ' | ' | ' | ' |
Stock based compensation | 9,416 | ' | 9,416 | ' | ' | ' | ' |
Excess tax benefit from stock based compensation | 2,273 | ' | 2,273 | ' | ' | ' | ' |
Acquisition of treasury stock | -331 | ' | ' | ' | ' | -331 | ' |
Acquisition of treasury stock, Shares | ' | ' | ' | ' | ' | -12,865 | ' |
Non controlling interest | 2 | ' | ' | ' | ' | ' | 2 |
Other comprehensive income/(loss) | 3,211 | ' | ' | ' | 3,211 | ' | ' |
Net income | 41,836 | ' | ' | 41,836 | ' | ' | ' |
Ending balance at Dec. 31, 2012 | 344,517 | 33 | 195,248 | 188,882 | -36,647 | -3,024 | 25 |
Ending balance, Shares at Dec. 31, 2012 | 32,203,820 | 32,540,082 | ' | ' | ' | -336,262 | ' |
Stock issued on exercise/vesting of equity awards | 5,489 | ' | 5,489 | ' | ' | ' | ' |
Stock issued on exercise/vesting of equity awards, Shares | ' | 802,230 | ' | ' | ' | ' | ' |
Stock based compensation | 11,832 | ' | 11,832 | ' | ' | ' | ' |
Excess tax benefit from stock based compensation | 1,953 | ' | 1,953 | ' | ' | ' | ' |
Acquisition of treasury stock | -21,618 | ' | ' | ' | ' | -21,618 | ' |
Acquisition of treasury stock, Shares | ' | ' | ' | ' | ' | 833,867 | ' |
Non controlling interest | -25 | ' | ' | ' | ' | ' | -25 |
Other comprehensive income/(loss) | -24,071 | ' | ' | ' | -24,071 | ' | ' |
Net income | 48,097 | ' | ' | 48,097 | ' | ' | ' |
Ending balance at Dec. 31, 2013 | $366,174 | $33 | $214,522 | $236,979 | ($60,718) | ($24,642) | ' |
Ending balance, Shares at Dec. 31, 2013 | 32,172,183 | 33,342,312 | ' | ' | ' | -1,170,129 | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flow (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $48,097 | $41,836 | $34,780 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 24,917 | 25,623 | 22,994 |
Loss on sale of business unit | 190 | ' | ' |
Write-off of accounts receivable | 2,029 | ' | ' |
Stock-based compensation expense | 11,832 | 9,416 | 9,462 |
Amortization of deferred financing cost | 151 | 151 | 90 |
Non-employee stock options | ' | 32 | 21 |
Unrealized foreign exchange gain | -7,782 | -943 | -6,596 |
Gain on bargain purchase | ' | ' | -405 |
Deferred income taxes | 2,484 | 4,727 | -1,705 |
Excess tax benefit from stock-based compensation | -1,953 | -2,273 | -1,210 |
Non-controlling interest | 2 | 2 | 3 |
Change in operating assets and liabilities (net of effect of acquisitions): | ' | ' | ' |
Restricted cash | -62 | -32 | -498 |
Accounts receivable | -5,678 | -8,086 | -5,109 |
Prepaid expenses and other current assets | -3,418 | -1,793 | -4,660 |
Accounts payable | -375 | 3,019 | -840 |
Deferred revenue | 696 | -3,721 | -319 |
Accrued expenses and other liabilities | 8,871 | -715 | 8,520 |
Advance income tax, net | 2,106 | -1,313 | 1,408 |
Other assets | 685 | -148 | 299 |
Net cash provided by operating activities | 82,792 | 65,782 | 56,235 |
Cash flows from investing activities: | ' | ' | ' |
Purchase of fixed assets | -15,916 | -18,804 | -19,468 |
Business acquisition (net of cash acquired) | -1,183 | -37,500 | -80,983 |
Purchase of short-term investments | -1,927 | -7,351 | -8,818 |
Proceeds from redemption of short-term investments | 1,491 | 8,821 | 3,517 |
Net cash used for investing activities | -17,535 | -54,834 | -105,752 |
Cash flows from financing activities: | ' | ' | ' |
Principal payments on capital lease obligations | -1,511 | -1,640 | -1,286 |
Proceeds from sale of common stock, net of issuance costs | ' | ' | 21,526 |
Proceeds from short-term borrowings | ' | ' | 30,000 |
Repayments of short-term borrowings | ' | ' | -30,049 |
Payment for purchase of non-controlling interest | -27 | ' | ' |
Payment of debt issuance costs | ' | ' | -446 |
Acquisition of treasury stock | -21,618 | -331 | -1,624 |
Proceeds from exercise of stock options | 5,489 | 9,603 | 5,535 |
Excess tax benefit from stock-based compensation | 1,953 | 2,273 | 1,210 |
Net cash (used for)/provided by financing activities | -15,714 | 9,905 | 24,866 |
Effect of exchange rate changes on cash and cash equivalents | -4,515 | -209 | -4,138 |
Net increase/(decrease) in cash and cash equivalents | 45,028 | 20,644 | -28,789 |
Cash and cash equivalents, beginning of period | 103,037 | 82,393 | 111,182 |
Cash and cash equivalents, end of period | 148,065 | 103,037 | 82,393 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Cash paid for interest | 592 | 826 | 803 |
Cash paid for taxes, net of refund | 8,585 | 13,779 | 14,542 |
Assets acquired under capital lease | $288 | $243 | $353 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 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 business process solutions, utilizing operations management, analytics and technology. The Company’s clients are located principally in the U.S. and the U.K. | |
Basis of Presentation | |
Certain amounts in the prior year’s financial statements and related notes have been reclassified to conform to the 2013 presentation. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||
2. Summary of Significant Accounting Policies | |||||||||||||
(a) Basis of Preparation and Principles of Consolidation | |||||||||||||
The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“US GAAP”). The accompanying financial statements have been prepared on a consolidated basis and reflect 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 at December 31, 2012 represented the minority partner’s interest in the operations 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 sheets and consolidated statements of income, respectively. During the year ended December 31, 2013, the Company purchased the entire non-controlling interest from the minority partner for an insignificant amount. The minority partner’s interest in the operations for the years ended December 31, 2013, 2012 and 2011 was insignificant and is included under general and administrative expenses in the consolidated statements of income. | |||||||||||||
(b) Use of Estimates | |||||||||||||
The preparation of the 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 consolidated financial statements and the consolidated statements of income during the reporting period. Although these estimates are based on management’s best assessment of the current business environment, actual results may be different 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 the fixed price contracts. | |||||||||||||
(c) Foreign Currency Translation | |||||||||||||
The functional currency of each entity in the Company is its respective local country currency which is also the currency of the primary economic environment in which it operates except for the entities in Mauritius which use the U.S. dollar as it’s functional currency. Monetary assets and liabilities in foreign currencies are re-measured into functional currency at the rates of exchange prevailing at the balance sheet dates. Transactions in foreign currencies are re-measured into functional currency at the rates of exchange prevailing on the date of the transaction. All transaction foreign exchange gains and losses are recorded in the accompanying consolidated statements of income. | |||||||||||||
The assets and liabilities of the subsidiaries for which the functional currency is other than the U.S. dollar are translated into U.S. dollars, the reporting currency, at the rate of exchange prevailing on the balance sheet dates. Revenues and expenses are translated into U.S. dollars at the exchange rates prevailing on the last business day of each month, which approximates the average monthly exchange rate. Resulting translation adjustments are included in accumulated other comprehensive loss in the audited consolidated balance sheets. | |||||||||||||
(d) Revenue Recognition | |||||||||||||
The Company derives its revenues from outsourcing and transformation services. Revenues from outsourcing services are recognized primarily on a time-and-material, cost-plus or unit-priced basis; revenues from transformation services are recognized primarily on a time-and-material and fixed price basis. The services provided within our outsourcing and transformation contracts generally contain one unit of accounting except the information technology contracts involving complex implementation services and post contract maintenance services. Revenues are recognized under our contracts generally when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, services have been performed and collection of amounts billed is reasonably assured. | |||||||||||||
Revenues under time-and-material contracts are recognized as the services are performed. Revenues are recognized on cost-plus contracts on the basis of contractually agreed direct and indirect costs incurred on a client contract plus an agreed upon profit mark-up. Such revenues are recognized as the related services are provided in accordance with the client contract. When the terms of the client contract specify service level parameters that must be met (such as turnaround time or accuracy), we monitor such service level parameters to determine if any service credits or penalties have been incurred. Revenues are recognized net of any service credits that are due to a client. We have experienced minimal service credits and penalties to date. Revenue on contingent fee based contracts is recognized when the related contingency has been met to the client’s satisfaction. | |||||||||||||
Revenues for Company’s fixed-price transformation services contracts are recognized using the proportional performance method when the pattern of performance under the contracts can be reasonably determined. We estimate the proportional performance of a contract by comparing the actual number of hours or days worked to the estimated total number of hours or days required to complete each engagement. The use of the proportional performance method requires significant judgment relative to estimating the number of hours or days required to complete the contracted scope of work, including assumptions and estimates relative to the length of time to complete the project and the nature and complexity of the work to be performed. We regularly monitor our estimates for completion of a project and record changes in the period in which a change in an estimate is determined. If a change in an estimate results in a projected loss on a project, such loss is recognized in the period in which it is first identified. | |||||||||||||
Revenues from software licensing arrangements, which does not involve significant production, modification, or customization of software, are recognized at the later of time of delivery or expiration of significant termination rights as long as other revenue recognition criteria (mentioned above) are met. When there are significant production, modifications or customization, installation, systems integration or related services, the professional services and license revenues are combined as a single unit of account and maintenance services, if any, as a separate unit of account and the total contract fees are allocated among the two based on residual value method. Revenues related to license fee and the complex information technology application development services are recognized as the service is performed using the percentage of completion method of accounting, under which the total value of revenue is recognized on the basis of the percentage that each contract’s total labor hours to date bears to the total expected labor hours (input method). Revenues related to the maintenance services contract, whether entered into solely for providing such services or is segregated from a multiple element contract, is recognized on a straight-line basis over the contract term unless revenues are earned and obligations are fulfilled in a different pattern. | |||||||||||||
The Company accrues for revenue and receivables for services rendered between the last billing date and the balance sheet date. Accordingly, our accounts receivable include amounts for services that we have performed and for which an invoice has not yet been issued to the client. | |||||||||||||
Reimbursements of out-of-pocket expenses received from clients have been included as part of revenues on a gross basis. Revenues for the following periods include reimbursements of out-of-pocket expenses: | |||||||||||||
Year ended December 31, 2013 | $ | 18,621 | |||||||||||
Year ended December 31, 2012 | $ | 18,862 | |||||||||||
Year ended December 31, 2011 | $ | 16,073 | |||||||||||
(e) Cash and Cash Equivalents and Restricted Cash | |||||||||||||
The Company considers all highly liquid investments purchased with an original maturity of ninety days or less to be cash equivalents. Pursuant to the Company’s investment policy, its surplus funds are kept as cash or cash equivalents and are invested in highly-rated mutual funds, money market accounts and time deposits to reduce its exposure to market risk with regard to these funds. | |||||||||||||
Current restricted cash represents amounts on deposit with banks against bank guarantees issued through banks for equipment imports that will mature on various dates before December 31, 2014, as well as client funds held in dedicated bank accounts. | |||||||||||||
Non-current restricted cash represents amounts on deposit with banks against bank guarantees issued through banks for equipment imports and for demands against pending income tax assessments (see Note 15 for details), that will mature on various dates after December 31, 2014. | |||||||||||||
(f) Investments | |||||||||||||
The Company’s investments consist of time deposits with financial institutions which are valued at cost and approximate fair value. Interest earned on such investments is included in interest income. Investments with original maturities greater than ninety days but less than twelve months are classified as short-term investments. Investments with maturities greater than twelve months from the balance sheet date are classified as long-term investments. | |||||||||||||
(g) Accounts Receivable | |||||||||||||
Accounts receivable are recorded net of allowances for doubtful accounts. Allowances for doubtful accounts are established through the evaluation of the accounts receivable aging and prior collection experience to estimate the ultimate collectability of these receivables. As of December 31, 2013 and 2012, the Company had $91 and $207 of allowance for doubtful accounts, respectively. | |||||||||||||
Accounts receivable include unbilled accounts receivable which represents revenues for services performed but yet to be billed to the client. As of December 31, 2013 and 2012, the Company had $16,400 and $15,601 of unbilled accounts receivable, respectively. | |||||||||||||
(h) Fixed Assets | |||||||||||||
Fixed assets are stated at cost less accumulated depreciation. Equipment held under capital leases are stated at the lower of present value of minimum lease payments at the inception of the leases or its fair value. Advances paid towards acquisition of fixed assets and the cost of fixed assets not yet placed in service before the end of the period are classified as construction in progress. | |||||||||||||
Fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable through an assessment of the estimated future undiscounted cash flows related to such assets. In the event that assets are found to be carried at amounts that are in excess of estimated undiscounted future cash flows, the carrying value of the related asset or group of assets is reduced to a level commensurate with fair value based on a discounted cash flow analysis. | |||||||||||||
Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Depreciation and amortization on equipment held under capital leases and leasehold improvements are computed using the straight-line method over the shorter of the assets’ estimated useful lives or the lease term. | |||||||||||||
The estimated lives used in determining depreciation are as follows: | |||||||||||||
Estimated | |||||||||||||
Useful Life | |||||||||||||
(Years) | |||||||||||||
Network equipment, computers and software | 5-Mar | ||||||||||||
Buildings | 30 | ||||||||||||
Leasehold improvements | 8-Mar | ||||||||||||
Office furniture and equipment | 7-Mar | ||||||||||||
Motor vehicles | 5-Feb | ||||||||||||
(i) Business Combinations, Goodwill and Other Intangible Assets | |||||||||||||
ASC topic 805, “Business Combinations” (ASC No. 805), requires that the purchase method of accounting be used for all business combinations. The guidance specifies criteria as to intangible assets acquired in a business combination that must be recognized and reported separately from goodwill. Under ASC topic 350, “Intangibles—Goodwill and Other” (ASC No. 350), all assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. | |||||||||||||
Goodwill represents the cost of the acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis, relying on a number of factors including operating results, business plans and estimated future cash flows of the reporting units to which it is assigned. Recoverability of goodwill is evaluated using a two-step process. The first step involves a comparison of the fair value of a reporting unit with its carrying value. The fair value of the reporting unit is measured by discounting estimated future cash flows. If the carrying amount of the reporting unit exceeds its fair value, the second step of the process involves a comparison of the fair value and carrying value of the goodwill of that reporting unit. If the carrying value of the goodwill of a reporting unit exceeds the fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess. Goodwill of a reporting unit is tested for impairment annually or if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. | |||||||||||||
Intangible assets acquired in a business combination are initially valued and recognized at fair market value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over the estimated useful lives and are reviewed for impairment, if indicators of impairment arise. The evaluation of impairment is based upon a comparison of the carrying amount of the intangible asset to its fair value, which is calculated using the estimated future undiscounted net cash flows expected to be generated by the asset. If the fair value of the intangible assets is less than the carrying amount of the asset, the asset is considered impaired and an impairment expense is recognized equal to any shortfall in the current period. | |||||||||||||
The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method: | |||||||||||||
Customer relationships | 3-15 years | ||||||||||||
Leasehold benefits | 3-8 years | ||||||||||||
Developed technology | 5-10 years | ||||||||||||
Non-compete agreements | 1-2 years | ||||||||||||
Trade names and trademarks | 3-5 years | ||||||||||||
(j) Derivative Financial Instruments. | |||||||||||||
In the normal course of business, the Company uses derivative instruments for the purpose of mitigating the exposure from 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, and not for speculative trading purposes. These derivative contracts are purchased within the Company’s policy and are with counterparties that are highly rated financial institutions. | |||||||||||||
The Company hedges anticipated transactions that are subject to foreign exchange exposure with foreign currency exchange contracts that qualify as cash flow hedges. Changes in the fair value of these cash flow hedges which are deemed effective, are recorded in accumulated other comprehensive income/(loss) (AOCI) until the hedged transactions occur and at that time are recognized in the consolidated statements of income. Changes in the fair value of cash flow hedges deemed ineffective are recognized in the consolidated statement of income and are included in foreign exchange (loss)/gain. The Company also uses derivatives instruments consisting of foreign currency exchange contracts to hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the functional currency. Changes in the fair value of these derivatives are recognized in the consolidated statements of income and are included in foreign exchange (loss)/gain. | |||||||||||||
The Company evaluates 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 consolidated statements of income and is included in foreign exchange (loss)/gain. For hedge relationships 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. | |||||||||||||
(k) Retirement Benefits | |||||||||||||
Contributions to defined contribution plans are charged to the consolidated statements of income in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. | |||||||||||||
(l) Share-Based Compensation | |||||||||||||
The Company recognizes stock-based compensation expense in the consolidated financial statements for awards of equity instruments to employees and non-employee directors based on the grant-date fair value of those awards. The Company recognizes these compensation costs, net of an estimated forfeiture rate, over the requisite service period of the award. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeiture differ from those estimates. | |||||||||||||
(m) Income Taxes | |||||||||||||
The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates. The deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases and all operating losses carried forward, if any. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which the applicable temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax status is recognized in the statement of income in the period in which the change is identified. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |||||||||||||
The Company establishes provisions for uncertain tax provisions and related interest and penalties when the Company believes those tax positions are not more likely than not of being sustained, if challenged. | |||||||||||||
(n) Financial Instruments and Concentration of Credit Risk | |||||||||||||
Financial Instruments. For certain financial instruments including cash and cash equivalents, short-term investments, accounts receivable, accounts payable, accrued expenses, and other current liabilities, recorded amounts approximate fair value due to the relatively short maturity periods of such instruments. | |||||||||||||
Concentration of Credit Risk . Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, time deposits, accounts receivable and derivative financial instruments. By their nature, all such financial instruments involve risks including the credit risks of non-performance by counterparties. Pursuant to the Company’s investment policy, its surplus funds are maintained as cash or cash equivalents and are invested in highly-rated mutual funds, money market accounts and time deposits, placed with highly rated financial institutions to reduce its exposure to market risk with regard to these funds. Credit losses on accounts receivable have not been material because of a large concentration of revenues with a small number of large, established companies. The Company evaluates the creditworthiness of its clients in conjunction with its revenue recognition processes as well as through its ongoing collectability assessment processes for accounts receivable. | |||||||||||||
(o) 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: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerators: | |||||||||||||
Net income | $ | 48,097 | $ | 41,836 | $ | 34,780 | |||||||
Denominators: | |||||||||||||
Basic weighted average common shares outstanding | 32,750,178 | 31,968,386 | 30,264,805 | ||||||||||
Dilutive effect of share based awards | 1,092,760 | 1,202,719 | 1,281,339 | ||||||||||
Diluted weighted average common shares outstanding | 33,842,938 | 33,171,105 | 31,546,144 | ||||||||||
Earnings per share: | |||||||||||||
Basic | $ | 1.47 | $ | 1.31 | $ | 1.15 | |||||||
Diluted | $ | 1.42 | $ | 1.26 | $ | 1.1 | |||||||
Weighted average common shares considered anti-dilutive in computing diluted earnings per share | 268,219 | 413,493 | 424,081 | ||||||||||
(p) Accumulated Other Comprehensive Loss | |||||||||||||
For the Company, comprehensive loss consists of net earnings/(loss), amortization of actuarial gain/(loss) on retirement benefits and changes in the cumulative foreign currency translation adjustments. In addition, the Company enters into foreign currency exchange contracts, which are designated as cash flow hedges in accordance with ASC No. 815. Changes in the fair values of contracts that are deemed effective are recorded as a component of accumulated other comprehensive loss until the settlement of that contract. The balances as of December 31, 2013 and 2012 are as follows: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Cumulative currency translation adjustments | $ | (50,091 | ) | $ | (30,486 | ) | |||||||
Unrealized loss on cash flow hedges, net of taxes of ($2,736) and ($2,521) | (9,699 | ) | (5,456 | ) | |||||||||
Retirement benefits, net of taxes of ($263) and ($203) | (928 | ) | (705 | ) | |||||||||
Accumulated other comprehensive loss | $ | (60,718 | ) | $ | (36,647 | ) | |||||||
(q) Accrued expenses and other current liabilities | |||||||||||||
Accrued expenses and other current liabilities consist of the following: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Accrued expenses | $ | 20,607 | $ | 20,134 | |||||||||
Derivative instruments | 7,689 | 6,403 | |||||||||||
Other current liabilities | 3,923 | 5,200 | |||||||||||
Accrued expenses and other current liabilities | $ | 32,219 | $ | 31,737 | |||||||||
(r) Non-current liabilities | |||||||||||||
Non-current liabilities consist of the following: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Derivative instruments | $ | 5,606 | $ | 3,458 | |||||||||
Unrecognized tax benefits | 4,776 | 2,680 | |||||||||||
Deferred rent | 4,973 | 4,631 | |||||||||||
Retirement benefits | 3,543 | 2,380 | |||||||||||
Other non-current liabilities | 914 | 1,168 | |||||||||||
Non-current liabilities | $ | 19,812 | $ | 14,317 | |||||||||
(s) Recent Accounting Pronouncements | |||||||||||||
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 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 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 consolidated financial statements. |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||
Quarterly Financial Data | ' | ||||||||||||||||||||
3. Quarterly Financial Data (Unaudited) | |||||||||||||||||||||
Summarized quarterly results for the years ended December 31, 2013 and 2012 are as follows: | |||||||||||||||||||||
Three months ended | |||||||||||||||||||||
2013 | March 31 | June 30 | September 30 | December 31 | Full Year | ||||||||||||||||
Revenues | $ | 116,006 | $ | 116,008 | $ | 122,315 | $ | 124,123 | $ | 478,452 | |||||||||||
Gross profit | 43,093 | 42,078 | 50,266 | 52,073 | 187,510 | ||||||||||||||||
Net income | $ | 9,762 | $ | 9,236 | $ | 13,240 | $ | 15,859 | $ | 48,097 | |||||||||||
Earnings Per Share: | |||||||||||||||||||||
Basic | $ | 0.3 | $ | 0.28 | $ | 0.4 | $ | 0.48 | $ | 1.47 | |||||||||||
Diluted | $ | 0.29 | $ | 0.27 | $ | 0.39 | $ | 0.47 | $ | 1.42 | |||||||||||
Weighted-average number of shares used in computing earnings per share: | |||||||||||||||||||||
Basic | 32,521,481 | 32,778,800 | 32,907,281 | 32,788,489 | 32,750,178 | ||||||||||||||||
Diluted | 33,719,794 | 33,899,097 | 33,955,445 | 33,792,757 | 33,842,938 | ||||||||||||||||
Note: | |||||||||||||||||||||
Stock compensation expense | $ | 3,645 | $ | 2,860 | $ | 2,967 | $ | 2,360 | $ | 11,832 | |||||||||||
Amortization of intangibles | $ | 1,634 | $ | 1,596 | $ | 1,534 | $ | 1,536 | $ | 6,300 | |||||||||||
Three months ended | |||||||||||||||||||||
2012 | 31-Mar | 30-Jun | 30-Sep | 31-Dec | Full Year | ||||||||||||||||
Revenues | $ | 104,608 | $ | 108,030 | $ | 112,639 | $ | 117,653 | $ | 442,930 | |||||||||||
Gross profit | 37,936 | 41,985 | 43,989 | 47,144 | 171,054 | ||||||||||||||||
Net income | $ | 8,916 | $ | 9,054 | $ | 11,703 | $ | 12,163 | $ | 41,836 | |||||||||||
Earnings Per Share: | |||||||||||||||||||||
Basic | $ | 0.28 | $ | 0.28 | $ | 0.36 | $ | 0.38 | $ | 1.31 | |||||||||||
Diluted | $ | 0.27 | $ | 0.27 | $ | 0.35 | $ | 0.36 | $ | 1.26 | |||||||||||
Weighted-average number of shares used in computing earnings per share: | |||||||||||||||||||||
Basic | 31,445,592 | 31,970,881 | 32,154,001 | 32,297,414 | 31,968,386 | ||||||||||||||||
Diluted | 32,783,855 | 33,096,607 | 33,283,854 | 33,514,446 | 33,171,105 | ||||||||||||||||
Note: | |||||||||||||||||||||
Stock compensation expense | $ | 2,743 | $ | 2,715 | $ | 1,871 | $ | 2,087 | $ | 9,416 | |||||||||||
Amortization of intangibles | $ | 1,394 | $ | 1,365 | $ | 1,324 | $ | 1,555 | $ | 5,638 | |||||||||||
Note: Figures for the quarters may not be comparable due to the Landacorp acquisition in 2012. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||||
4. Segment Information | |||||||||||||||||||||||||
The Company provides various types of business process solutions utilizing operations management, analytics and technology. These services are provided in an integrated manner to clients in various industries. The chief operating decision maker (“CODM”) generally reviews financial information at the consolidated statement of income level disaggregated by our two segments: Outsourcing Services and Transformation Services, but does not review any information except for revenues and cost of revenues of these 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 years ended December 31, 2013, 2012 and 2011, for outsourcing services and transformation services segments, respectively, are as follows: | |||||||||||||||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | ||||||||||||||||||||||||
Outsourcing | Transformation | Total | Outsourcing | Transformation | Total | ||||||||||||||||||||
Services | Services | Services | Services | ||||||||||||||||||||||
Revenues | $ | 394,987 | $ | 83,465 | $ | 478,452 | $ | 366,767 | $ | 76,163 | $ | 442,930 | |||||||||||||
Cost of revenues (exclusive of depreciation and amortization) | 232,286 | 58,656 | 290,942 | 222,860 | 49,016 | 271,876 | |||||||||||||||||||
Gross profit | $ | 162,701 | $ | 24,809 | $ | 187,510 | $ | 143,907 | $ | 27,147 | $ | 171,054 | |||||||||||||
Operating expenses | 120,090 | 113,822 | |||||||||||||||||||||||
Other income/(expense) | (2,443 | ) | (512 | ) | |||||||||||||||||||||
Income tax provision | 16,880 | 14,884 | |||||||||||||||||||||||
Net income | $ | 48,097 | $ | 41,836 | |||||||||||||||||||||
Year ended December 31, 2011 | |||||||||||||||||||||||||
Outsourcing | Transformation | ||||||||||||||||||||||||
Services | Services | Total | |||||||||||||||||||||||
Revenues | $ | 294,361 | $ | 66,180 | $ | 360,541 | |||||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization) | 178,301 | 41,686 | 219,987 | ||||||||||||||||||||||
Gross profit | $ | 116,060 | $ | 24,494 | $ | 140,554 | |||||||||||||||||||
Operating expenses | 99,236 | ||||||||||||||||||||||||
Other income/(expense) | 5,330 | ||||||||||||||||||||||||
Income tax provision | 11,868 | ||||||||||||||||||||||||
Net income | $ | 34,780 | |||||||||||||||||||||||
Business_Combinations_Goodwill
Business Combinations, Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||
Dec. 31, 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 Inc., 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 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 December 31, 2013: | |||||||||||||
Outsourcing | Transformation | ||||||||||||
Services | Services | Total | |||||||||||
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 | (3,291 | ) | — | (3,291 | ) | ||||||||
Allocation on sale of a business unit (2) | (250 | ) | — | (250 | ) | ||||||||
Balance at December 31, 2013 | $ | 90,622 | $ | 16,785 | $ | 107,407 | |||||||
-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 year ended December 31, 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 year ended December 31, 2013. | ||||||||||||
The entire amount of goodwill recognized from the Landacorp Acquisition in 2012 is not deductible for tax purposes. | |||||||||||||
Based on the results of the impairment testing performed during the year ended December 31, 2013, the Company’s goodwill was not impaired. The Company makes every reasonable effort to ensure that it accurately estimates the fair value of the reporting units. However, future changes in the assumptions used to make these estimates could result in the recording of an impairment loss. | |||||||||||||
Intangible Assets | |||||||||||||
Information regarding the Company’s intangible assets is set forth below: | |||||||||||||
As of December 31, 2013 | |||||||||||||
Gross | Accumulated | Net Carrying | |||||||||||
Carrying Amount | Amortization | Amount | |||||||||||
Customer relationships | $ | 38,614 | $ | (12,201 | ) | $ | 26,413 | ||||||
Leasehold benefits | 2,986 | (1,455 | ) | 1,531 | |||||||||
Developed technology | 6,013 | (1,458 | ) | 4,555 | |||||||||
Non-compete agreements | 1,316 | (1,316 | ) | — | |||||||||
Trade names and trademarks | 3,322 | (1,706 | ) | 1,616 | |||||||||
$ | 52,251 | $ | (18,136 | ) | $ | 34,115 | |||||||
As of December 31, 2012 | |||||||||||||
Gross | Accumulated | Net Carrying | |||||||||||
Carrying Amount | Amortization | 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 years ended December 31, 2013, 2012 and 2011 was $6,300, $5,638 and $4,329, 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 lived trade names and trademarks as of December 31, 2013 and December 31, 2012. | |||||||||||||
Estimated amortization of intangible assets during the year ending December 31, | |||||||||||||
2014 | $ | 5,793 | |||||||||||
2015 | $ | 5,543 | |||||||||||
2016 | $ | 5,541 | |||||||||||
2017 | $ | 5,509 | |||||||||||
2018 | $ | 5,414 | |||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
6. Fair Value Measurements | |||||||||||||||||
ASC 820, “Fair Value Measurements and Disclosures” (ASC 820) defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk, including the Company’s own credit risk. | |||||||||||||||||
ASC 820 establishes a three-level hierarchy of fair value measurements based on whether the inputs to those measurements are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The fair-value hierarchy requires the use of observable market data when available and consists of the following levels: | |||||||||||||||||
• | Level 1—Quoted prices for identical instruments in active markets; | ||||||||||||||||
• | Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets; and | ||||||||||||||||
• | Level 3—Valuations derived from valuation techniques in which one or more significant inputs are unobservable. | ||||||||||||||||
The following table sets forth the Company’s assets and liabilities that were accounted for at fair value as of December 31, 2013 and 2012. The table excludes short-term investments, accounts receivable, accounts payable and accrued expenses for which fair values approximate their carrying amounts. | |||||||||||||||||
Assets and Liabilities Measured at Fair Value | |||||||||||||||||
The assets and liabilities measured at fair value on recurring basis are summarized below: | |||||||||||||||||
As of December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | |||||||||||||||||
Money market and mutual funds | $ | 116,662 | $ | — | $ | — | $ | 116,662 | |||||||||
Derivative financial instruments | — | 957 | — | 957 | |||||||||||||
Total | $ | 116,662 | $ | 957 | $ | — | $ | 117,619 | |||||||||
Liabilities | |||||||||||||||||
Derivative financial instruments | $ | — | $ | 13,295 | $ | — | $ | 13,295 | |||||||||
Total | $ | — | $ | 13,295 | $ | — | $ | 13,295 | |||||||||
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 | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 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 exchanges 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 815, “Derivatives and hedging” (ASC 815). The Company also uses derivatives consisting of foreign currency exchange contracts not designated as hedging instruments under ASC 815 to hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the Company’s functional currency (“fair value hedges”). The Company’s primary exchange rate exposure is with the Indian rupee, the Philippine peso and the U.K. pound sterling. The Company also has exposure in Czech koruna and other local currencies in which it operates. | |||||||||||||||||||||||||||||
The Company had outstanding foreign exchange contracts totaling $262,085 and GBP 10,973 as of December 31, 2013 and totaling $221,255 and GBP 11,544 as of December 31, 2012. The Company estimates that approximately $7,252 of net derivative losses included in accumulated other comprehensive loss (“AOCI”) could be reclassified into earnings within the next 12 months based on exchange rates prevailing as of December 31, 2013. At December 31, 2013, the maximum outstanding term of the cash flow hedges was forty-five months. | |||||||||||||||||||||||||||||
The Company evaluates 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 consolidated statements of income and is included in foreign exchange (loss)/gain. 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 such significant amounts of gains or losses were reclassified from AOCI into earnings during the year ended December 31, 2013 and 2012. | |||||||||||||||||||||||||||||
The following tables set forth the fair value of the foreign currency exchange contracts and their location on the consolidated financial statements: | |||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Other current assets: | |||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | 437 | $ | 980 | |||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | 423 | $ | 750 | |||||||||||||||||||||||||
Accrued expenses and other current liabilities: | |||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | 7,689 | $ | 6,249 | |||||||||||||||||||||||||
Other non current liabilities: | |||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | 5,606 | $ | 3,458 | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Other current assets: | |||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | 97 | $ | — | |||||||||||||||||||||||||
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 consolidated statements of income for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging | Amount of | Location of | Amount of | Location of | Amount of | ||||||||||||||||||||||||
Relationships | (Loss)/Gain | Loss | Loss Reclassified | Gain/(Loss) | Gain/(Loss) | ||||||||||||||||||||||||
Recognized | Reclassified from | from AOCI into | Recognized in | Recognized in | |||||||||||||||||||||||||
in AOCI on | AOCI into Income | Income (Effective | Income on | Income on | |||||||||||||||||||||||||
Derivative | (Effective Portion) | Portion) | Derivative | Derivative | |||||||||||||||||||||||||
(Effective Portion) | (Ineffective Portion | (Ineffective | |||||||||||||||||||||||||||
and Amount | Portion and | ||||||||||||||||||||||||||||
Excluded from | Amount | ||||||||||||||||||||||||||||
Effectiveness | Excluded | ||||||||||||||||||||||||||||
Testing) | from | ||||||||||||||||||||||||||||
Effectiveness | |||||||||||||||||||||||||||||
Testing) | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Foreign exchange contracts | $ | (9,599 | ) | $ | 708 | Foreign exchange | $ | (5,141 | ) | $ | (9,044 | ) | Foreign exchange | $ | — | $ | — | ||||||||||||
(loss)/gain | (loss)/gain | ||||||||||||||||||||||||||||
Amount of (Loss)/Gain | |||||||||||||||||||||||||||||
Recognized in Income on | |||||||||||||||||||||||||||||
Derivatives not designated | Derivatives | ||||||||||||||||||||||||||||
as Hedging Instruments | Location of Gain or (Loss) Recognized in | 2013 | 2012 | ||||||||||||||||||||||||||
Income on Derivatives | |||||||||||||||||||||||||||||
Foreign exchange contracts | Foreign exchange (loss)/gain | $ | (3,149 | ) | $ | 2,076 |
Fixed_Assets
Fixed Assets | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Fixed Assets | ' | ||||||||
8. Fixed Assets | |||||||||
Fixed assets consist of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
(Recasted) | |||||||||
Owned Assets: | |||||||||
Network equipment, computers and software | $ | 63,428 | $ | 62,580 | |||||
Buildings | 1,287 | 1,447 | |||||||
Land | 842 | 946 | |||||||
Leasehold improvements | 24,382 | 23,919 | |||||||
Office furniture and equipment | 11,111 | 10,695 | |||||||
Motor vehicles | 507 | 638 | |||||||
Capital work in progress | 715 | 1,707 | |||||||
102,272 | 101,932 | ||||||||
Less: Accumulated depreciation and amortization | (69,242 | ) | (65,581 | ) | |||||
$ | 33,030 | $ | 36,351 | ||||||
Assets under capital leases: | |||||||||
Network equipment, computers and software | $ | 184 | $ | 361 | |||||
Leasehold improvements | 1,955 | 2,454 | |||||||
Office furniture and equipment | 1,079 | 1,432 | |||||||
Motor vehicles | 934 | 954 | |||||||
4,152 | 5,201 | ||||||||
Less: Accumulated depreciation and amortization | (2,618 | ) | (2,196 | ) | |||||
$ | 1,534 | $ | 3,005 | ||||||
Fixed assets, net | $ | 34,564 | $ | 39,356 | |||||
Depreciation and amortization expense excluding amortization of acquisition related intangibles for the year ended December 31, 2013, 2012 and 2011 was $18,617, $19,985 and $18,665, respectively. | |||||||||
Capital work in progress represents advances paid towards acquisition of fixed assets and the cost of fixed assets not yet ready to be placed in service. |
Capital_Structure
Capital Structure | 12 Months Ended |
Dec. 31, 2013 | |
Text Block [Abstract] | ' |
Capital Structure | ' |
9. Capital Structure | |
Common Stock | |
The Company has one class of common stock outstanding. | |
During the year ended December 31, 2013 and 2012, the Company acquired 13,018 and 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 $389 and $331, respectively. The weighted average purchase price of $29.89 and $25.78, respectively was the average of the high and low price of the Company’s share of common stock on the Nasdaq Global Select Market on the trading day prior to the vesting date of the shares of restricted stock. The shares acquired are held as treasury stock. | |
During the year ended December 31, 2013, the Company purchased 820,849 shares of its common stock for an aggregate purchase price of approximately $21,229 including commissions, representing an average purchase price per share of $25.86 as part of the share repurchase program that authorized the purchase of up to an aggregate principal amount of $25,000 of the Company’s outstanding common stock. | |
Repurchased shares have been recorded as treasury shares and will be held until the Company’s board of directors designates that these shares be retired or used for other purposes. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||
Employee Benefit Plans | ' | ||||||||||||
10. Employee Benefit Plans | |||||||||||||
The Company’s Gratuity Plans in India and the Philippines provides 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 Plan 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. | |||||||||||||
The benefit obligation has been measured as of December 31, 2013. The following table sets forth the activity and the funded status of the Gratuity Plan and the amounts recognized in the Company’s consolidated financial statements at the end of the relevant periods: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Change in projected benefit obligation: | |||||||||||||
Benefit obligation at the beginning of the year | $ | 5,491 | $ | 4,429 | |||||||||
Service cost | 1,341 | 1,027 | |||||||||||
Interest cost | 444 | 414 | |||||||||||
Benefits paid | (466 | ) | (595 | ) | |||||||||
Actuarial loss | 554 | 361 | |||||||||||
Divestiture | (134 | ) | — | ||||||||||
Effect of exchange rate changes | (663 | ) | (145 | ) | |||||||||
Projected benefit obligation at the end of the year | $ | 6,567 | $ | 5,491 | |||||||||
Unfunded amount–non-current | $ | 3,543 | $ | 2,380 | |||||||||
Unfunded amount–current | 868 | 910 | |||||||||||
Total accrued liability | $ | 4,411 | $ | 3,290 | |||||||||
Accumulated benefit obligation | $ | 4,628 | $ | 4,141 | |||||||||
Net gratuity cost includes the following components: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Service cost | $ | 1,341 | $ | 1,027 | $ | 792 | |||||||
Interest cost | 444 | 414 | 302 | ||||||||||
Expected return on plan assets | (164 | ) | (72 | ) | (24 | ) | |||||||
Actuarial loss | 139 | 125 | 103 | ||||||||||
Net gratuity cost | $ | 1,760 | $ | 1,494 | $ | 1,173 | |||||||
The amount in accumulated other comprehensive loss that is expected to be recognized as a component of net periodic benefit cost over the next fiscal year is $148. The components of accumulated other comprehensive loss that have not been recognized as components of net gratuity cost in the statement of income as of December 31, 2013 and 2012 is as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Net actuarial loss | $ | 917 | $ | 694 | |||||||||
Net prior service cost | 11 | 11 | |||||||||||
Accumulated other comprehensive loss, net of tax | $ | 928 | $ | 705 | |||||||||
The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost are: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Discount rate | 8.3 | % | 8.5 | % | 9.1 | % | |||||||
Rate of increase in compensation levels | 8.2 | % | 8.2 | % | 8.4 | % | |||||||
The Company evaluates these assumptions annually based on its long-term plans of growth and industry standards. The discount rates are based on current market yields on government securities adjusted for a suitable risk premium. | |||||||||||||
Expected benefit payments during the year ending December 31, | |||||||||||||
2014 | $ | 1,803 | |||||||||||
2015 | $ | 1,662 | |||||||||||
2016 | $ | 1,517 | |||||||||||
2017 | $ | 1,359 | |||||||||||
2018 | $ | 1,178 | |||||||||||
2019 to 2023 | $ | 3,035 | |||||||||||
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 on the Gratuity Plans of approximately 9.5% per annum for the year ended March 31, 2013. | |||||||||||||
Change in Plan Assets | |||||||||||||
Plan assets at January 1, 2012 | $ | 1,015 | |||||||||||
Employer contribution | 1,089 | ||||||||||||
Actual return | 72 | ||||||||||||
Actuarial gain | 92 | ||||||||||||
Effect of exchange rate changes | (67 | ) | |||||||||||
Plan assets at January 1, 2013 | $ | 2,201 | |||||||||||
Actual return | 206 | ||||||||||||
Effect of exchange rate changes | (251 | ) | |||||||||||
Plan assets at December 31, 2013 | $ | 2,156 | |||||||||||
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 $1,147, $942 and $662 during the years ended December 31, 2013, 2012 and 2011, respectively. The increase in contributions in 2013 and 2012 compared to 2011 is primarily due to the Company’s acquisitions of OPI and Trumbull in 2011, Landacorp in 2012 and increased participation by employees. | |||||||||||||
During the years ended December 31, 2013, 2012 and 2011, 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: | |||||||||||||
Year ended December 31, 2013 | $ | 5,448 | |||||||||||
Year ended December 31, 2012 | $ | 5,626 | |||||||||||
Year ended December 31, 2011 | $ | 5,011 |
Leases
Leases | 12 Months Ended | ||||
Dec. 31, 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 December 31, 2013 are as follows: | |||||
Year ending December 31, | |||||
2014 | $ | 1,305 | |||
2015 | 1,031 | ||||
2016 | 410 | ||||
2017 | 33 | ||||
Total minimum lease payments | 2,779 | ||||
Less: amount representing interest | 289 | ||||
Present value of minimum lease payments | 2,490 | ||||
Less: current portion | 1,119 | ||||
Long term capital lease obligation | $ | 1,371 | |||
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 agreements expiring after December 31, 2013 are set forth below: | |||||
Year ending December 31, | |||||
2014 | $ | 8,389 | |||
2015 | 7,074 | ||||
2016 | 3,288 | ||||
2017 | 894 | ||||
2018 | 693 | ||||
2019 and thereafter | 485 | ||||
$ | 20,823 | ||||
The operating leases are subject to renewal periodically and have scheduled rent increases. The Company accounts for scheduled rent on such leases on a straight line basis over the non-cancelable lease period determined under ASC 840. Rent expense under both cancelable and non-cancelable operating leases was $17,384, $17,860 and $14,599 for the years ended December 31, 2013, 2012 and 2011, respectively. Deferred rent as of December 31, 2013 and 2012 was $5,394 and $4,893, respectively, and is included in “Accrued expenses and other current liabilities” and “Non-current liabilities” in the consolidated balance sheets. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
12. Income Taxes | |||||||||||||
The components of income before income taxes consist of the following: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic | $ | 24,056 | $ | 22,046 | $ | 6,012 | |||||||
Foreign | 40,921 | 34,674 | 40,636 | ||||||||||
$ | 64,977 | $ | 56,720 | $ | 46,648 | ||||||||
The income tax provision consists of the following: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current provision: | |||||||||||||
Domestic | $ | 3,466 | $ | 4,519 | $ | 1,433 | |||||||
Foreign | 10,930 | 5,638 | 12,140 | ||||||||||
$ | 14,396 | $ | 10,157 | $ | 13,573 | ||||||||
Deferred provision/(benefit): | |||||||||||||
Domestic | $ | 4,183 | $ | 4,371 | $ | 1,999 | |||||||
Foreign | (1,699 | ) | 356 | (3,704 | ) | ||||||||
$ | 2,484 | $ | 4,727 | $ | (1,705 | ) | |||||||
Income tax provision | $ | 16,880 | $ | 14,884 | $ | 11,868 | |||||||
The effective income tax rate differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes approximately as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Expected tax provision | $ | 22,742 | $ | 19,852 | $ | 16,327 | |||||||
Change in valuation allowance | — | (254 | ) | (1,702 | ) | ||||||||
Impact of tax holiday | (5,531 | ) | (3,219 | ) | (3,234 | ) | |||||||
Foreign tax rate differential | (1,412 | ) | (1,071 | ) | (1,033 | ) | |||||||
Deferred tax (benefit)/provision | (433 | ) | 356 | (694 | ) | ||||||||
Unrecognized tax benefits and interest | 2,399 | (2,083 | ) | 877 | |||||||||
State taxes, net of Federal taxes | 601 | 620 | 841 | ||||||||||
Non-deductible expenses | 310 | 591 | 427 | ||||||||||
Prior year tax benefit | (875 | ) | — | — | |||||||||
Other | (921 | ) | 92 | 59 | |||||||||
Tax provision | $ | 16,880 | $ | 14,884 | $ | 11,868 | |||||||
The fiscal year under the Indian Income Tax Act ends on March 31. Certain of the Company’s operations centers in India qualified for an exemption from corporate tax under the Indian Income Tax Act which expired on April 1, 2011. Therefore, profits generated from the services provided from such operations centers have become fully taxable and consequently, the Company’s tax expense increased from 2011 and may continue to be higher going forward. | |||||||||||||
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. | |||||||||||||
The diluted earnings per share effect of the tax holiday is $0.16, $0.10 and $0.10 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
The components of the deferred tax balances as of December 31, 2013 and 2012 are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Tax credit carry forward | $ | 3,332 | $ | 2,932 | |||||||||
Depreciation and amortization | 5,745 | 5,955 | |||||||||||
Share-based compensation | 5,881 | 5,361 | |||||||||||
Accrued employee costs and other expenses | 3,252 | 2,863 | |||||||||||
Net operating loss carry forwards | 10,474 | 13,553 | |||||||||||
Unrealized exchange loss | 3,336 | 3,204 | |||||||||||
Deferred rent | 984 | 851 | |||||||||||
Allowance for doubtful accounts | 15 | 59 | |||||||||||
Others | 28 | 957 | |||||||||||
$ | 33,047 | $ | 35,735 | ||||||||||
Valuation allowance | (665 | ) | (665 | ) | |||||||||
Deferred tax assets | $ | 32,382 | $ | 35,070 | |||||||||
Deferred tax liabilities: | |||||||||||||
Unrealized exchange gain | $ | — | $ | 70 | |||||||||
Intangible assets | 13,170 | 13,417 | |||||||||||
Deferred tax liabilities: | $ | 13,170 | $ | 13,487 | |||||||||
Net deferred tax assets | $ | 19,212 | $ | 21,583 | |||||||||
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 December 31, 2013 and 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 certain net operating loss carry forwards. Accordingly, the Company had recorded a valuation allowance of $665 each as of December 31, 2013 and 2012. | |||||||||||||
As a result of the OPI Acquisition and the Landacorp Acquisition, the Company acquired federal and state net operating losses in the United States. Thus, as of December 31, 2013, the Company has federal net operating loss carry forwards of approximately $26,934, which expire through various years till 2032. The Company’s federal net operating loss carry forwards are subject to certain annual utilization limitations under Section 382 of the United States Internal Revenue Code. The Company also has state and local net operating loss carry forwards of varying amounts, which are subject to limitations under the applicable rules and regulations of those taxing jurisdictions. The Company estimates that it will be able to utilize all of the losses before their expiration. | |||||||||||||
The Company’s Indian subsidiaries are liable to pay Minimum Alternative Tax (MAT) under India’s domestic tax laws. As of December 31, 2013 and 2012 deferred income taxes related to the MAT were $3,332 and $2,932, respectively expiring through various years until 2024. | |||||||||||||
At December 31, 2013 and 2012, no deferred income taxes have been provided for the Company’s share of undistributed net earnings of foreign operations due to management’s intent to reinvest such amounts indefinitely. The determination of the amount of such unrecognized deferred taxes is not practicable. Those earnings totaled approximately $185,596 and $153,906 as of December 31, 2013 and 2012, respectively. | |||||||||||||
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 December 31, 2013: | |||||||||||||
Balance as of January 1, 2013 | $ | 3,019 | |||||||||||
Increases related to prior year tax positions | 1,759 | ||||||||||||
Decreases related to prior year tax positions | — | ||||||||||||
Increases related to current year tax positions | 357 | ||||||||||||
Decreases related to current year tax positions | — | ||||||||||||
Effect of exchange rate changes | (222 | ) | |||||||||||
Balance as of December 31, 2013 | $ | 4,913 | |||||||||||
The unrecognized tax benefits as of December 31, 2013 of $4,913, if recognized, would impact the effective tax rate. | |||||||||||||
The Company has recognized interest and penalties of $283 during the year ended December 31, 2013, which is included in the income tax provision in the consolidated statements of income. The unrecognized tax benefits may increase or decrease in the next twelve months depending on the Company’s tax positions. |
Stock_Based_Compensation
Stock Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Stock Based Compensation | ' | ||||||||||||||||
13. Stock Based Compensation | |||||||||||||||||
In 2006, the Company instituted the ExlService Holdings, Inc. 2006 Omnibus Award Plan (the 2006 Plan) which replaced the 2003 Plan. The 2006 Plan covers all of the employees of the Company. Under the 2006 Plan, the Compensation Committee (“the Committee”) may grant awards of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, stock bonus awards, performance based compensation awards (including cash bonus awards) or any combination of the foregoing. | |||||||||||||||||
The Committee determines which employees are eligible to receive the equity awards, the number of equity awards to be granted, the exercise price, the vesting period and the exercise period. The vesting period for the equity award issued is determined on the date of the grant and is non-transferable during the life of the equity award. The majority of options expire ten years from the date of grant and generally vest incrementally over a period of four years from the date of grant with 10% vesting at the end of year one, 20% vesting at the end of year two, 30% vesting at the end of year three and 40% vesting at the end of year four. Pursuant to the 2006 Plan, the Company reserved 3,399,384 shares of common stock (in addition to the available pool of 329,854 shares from the 2003 plan) for the granting of equity awards. If an employee resigns or is terminated, the employee must exercise any vested options within 90 days after termination or the vested options are forfeited. At a special meeting of the Company’s stockholders held on January 29, 2009, the Company’s stockholders approved, among other things, an amendment to the 2006 Plan to increase the number of shares of its common stock issuable there under by 4,000,000 shares, which brought the total number of shares reserved under the plan to 7,729,238. | |||||||||||||||||
The Company applies the provisions of ASC No. 718, “compensation-stock compensation” to account for it’s stock based compensation, using the modified prospective method of transition. Under the provisions of this guidance, the estimated fair value of share-based awards granted under stock incentive plans is recognized as compensation expense over the vesting period. | |||||||||||||||||
The following costs related to the Company’s stock-based compensation plan are included in the consolidated statements of income: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cost of revenue | $ | 2,413 | $ | 1,893 | $ | 1,635 | |||||||||||
General and administrative expenses | 5,077 | 4,551 | 4,589 | ||||||||||||||
Selling and marketing expenses | 4,342 | 2,972 | 3,238 | ||||||||||||||
Total (1) | $ | 11,832 | $ | 9,416 | $ | 9,462 | |||||||||||
-1 | The Company, during the year ended December 31, 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: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
Expected life (years) | 5.5 | 5.38 | 5.58 | ||||||||||||||
Risk free interest rate | 0.87 | % | 0.97 | % | 2.16 | % | |||||||||||
Volatility | 40 | % | 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 stocks 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- | Aggregate | Weighted- | ||||||||||||||
Options | Average | Intrinsic | Average | ||||||||||||||
Exercise | Value | Remaining | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life (Years) | |||||||||||||||||
Outstanding at December 31, 2010 | 3,075,617 | $ | 12.17 | ||||||||||||||
Granted | 360,867 | 20.41 | |||||||||||||||
Exercised | (342,166 | ) | 11.97 | ||||||||||||||
Forfeited | (64,190 | ) | 10.06 | ||||||||||||||
Outstanding at December 31, 2011 | 3,030,128 | $ | 13.22 | ||||||||||||||
Granted | 416,129 | 25.36 | |||||||||||||||
Exercised | (793,053 | ) | 12.11 | ||||||||||||||
Forfeited | (198,570 | ) | 17.35 | ||||||||||||||
Outstanding at December 31, 2012 | 2,454,634 | $ | 15.3 | ||||||||||||||
Granted | 14,301 | 26.76 | |||||||||||||||
Exercised | (485,141 | ) | 11.32 | ||||||||||||||
Forfeited | (27,279 | ) | 24.13 | ||||||||||||||
Outstanding at December 31, 2013 | 1,956,515 | $ | 16.25 | $ | 22,255 | 5.55 | |||||||||||
Vested and exercisable at December 31, 2013 | 1,410,736 | $ | 13.9 | $ | 19,359 | 4.89 | |||||||||||
Available for grant at December 31, 2013 | 1,824,149 | ||||||||||||||||
The unrecognized compensation cost for unvested options as of December 31, 2013 is $2,786, which is expected to be expensed over a weighted average period of 1.75 years. The weighted-average fair value of options granted during the years ended December 31, 2013, 2012 and 2011 was $10.07, $9.43 and $8.16, respectively. The total grant date fair value of options vested during the years ended December 31, 2013, 2012 and 2011 was $3,061, $3,000 and $3,099, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011 was $8,960, $12,020 and $4,180, respectively. | |||||||||||||||||
The following table summarizes the status of the Company’s stock options outstanding and stock options vested and exercisable at December 31, 2013: | |||||||||||||||||
Options Outstanding | Options Vested and Exercisable | ||||||||||||||||
Range of Exercise Prices | Shares | Weighted- | Shares | Weighted- | |||||||||||||
Average | Average | ||||||||||||||||
Exercise Price | Exercise Price | ||||||||||||||||
$8.00 to $15.00 | 854,069 | $ | 10 | 854,069 | $ | 10 | |||||||||||
$15.01 to $24.00 | 752,246 | 19.15 | 496,238 | 19.22 | |||||||||||||
$24.01 to $36.15 | 350,200 | 25.23 | 60,429 | 25.28 | |||||||||||||
Total | 1,956,515 | $ | 16.25 | 1,410,736 | $ | 13.9 | |||||||||||
Subsequent to December 31, 2013, the Company granted approximately 500,000 restricted stock units and 9,800 stock options to its employees and directors. | |||||||||||||||||
Restricted Stock and Restricted Stock Units | |||||||||||||||||
An award of restricted stock is a grant of shares subject to conditions and restrictions set by the Committee. The grant or the vesting of an award of restricted stock may be conditioned upon service to the Company or its affiliates or upon the attainment of performance goals or other factors, as determined in the discretion of the Committee. The Committee may also, in its discretion, provide for the lapse of restrictions imposed upon an award of restricted stock. Holders of an award of restricted stock may have, with respect to the restricted stock granted, all of the rights of a stockholder, including the right to vote and to receive dividends. | |||||||||||||||||
The Committee is authorized to award restricted stock units to participants. The Committee establishes the terms, conditions and restrictions applicable to each award of restricted stock units, including the time or times at which restricted stock units will be granted or vested and the number of units to be covered by each award. The terms and conditions of each restricted stock award will be reflected in a restricted stock unit agreement. | |||||||||||||||||
Any cash or in-kind dividends paid with respect to unvested shares of restricted stock and restricted stock units are withheld by the Company and paid to the holder of such shares of restricted stock, without interest, only if and when such shares of restricted stock and restricted stock units vest. Any unvested shares of restricted stock and restricted stock units are immediately forfeited without consideration upon the termination of holder’s employment with the Company or its affiliates. Accordingly, the Company’s unvested restricted stock and restricted stock units do not include non-forfeitable rights to dividends or dividend equivalents and are therefore not considered as participating securities for purposes of earnings per share calculations pursuant to the two-class method. | |||||||||||||||||
Restricted stock and restricted stock unit activity under the Company’s stock plans is shown below: | |||||||||||||||||
Restricted Stock | Restricted Stock Units | ||||||||||||||||
Number | Weighted- | Number | Weighted- | ||||||||||||||
Average | Average | ||||||||||||||||
Intrinsic Value | Intrinsic Value | ||||||||||||||||
Outstanding at December 31, 2010 | 235,885 | $ | 23.47 | 624,815 | $ | 18.13 | |||||||||||
Granted | — | — | 460,972 | 20.84 | |||||||||||||
Vested | (152,962 | ) | 19.02 | (108,670 | ) | 18.39 | |||||||||||
Forfeited | (19,089 | ) | 19.7 | (37,458 | ) | 18.89 | |||||||||||
Outstanding at December 31, 2011* | 63,834 | $ | 18.41 | 939,659 | $ | 19.4 | |||||||||||
Granted | — | — | 389,050 | 25.07 | |||||||||||||
Vested | (55,726 | ) | 18.26 | (198,842 | ) | 19.27 | |||||||||||
Forfeited | (2,901 | ) | 23.82 | (103,956 | ) | 21.41 | |||||||||||
Outstanding at December 31, 2012* | 5,207 | $ | 17.58 | 1,025,911 | $ | 21.36 | |||||||||||
Granted | — | — | 522,130 | 29.37 | |||||||||||||
Vested | (4,807 | ) | 17.56 | (300,316 | ) | 20.35 | |||||||||||
Forfeited | (400 | ) | 17.72 | (103,283 | ) | 25.04 | |||||||||||
Outstanding at December 31, 2013* | — | $ | — | 1,144,442 | $ | 24.95 | |||||||||||
* | Excludes $20,000, $24,000 and $24,000 restricted stock units vested during the years ended December 31, 2013, 2012 and 2011, respectively (112,000, 124,000 and 120,000 as of December 31, 2013, 2012 and 2011, respectively) for which the underlying common stock is yet to be issued. | ||||||||||||||||
The fair value of restricted stock and restricted stock units is generally the market price of the Company’s shares on the date of grant. As of December 31, 2013, unrecognized compensation cost of $19,670 is expected to be expensed over a weighted average period of 2.42 years. The weighted-average fair value of restricted stock units under the 2006 Plan granted during the years ended December 31, 2013, 2012 and 2011 was $29.37, $25.07 and $20.84, respectively. The total grant date fair value of restricted stock and restricted stock units vested during the years ended December 31, 2013, 2012 and 2011 was $9,126, $7,010 and $5,456, respectively. |
Geographical_Information
Geographical Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Text Block [Abstract] | ' | ||||||||||||
Geographical Information | ' | ||||||||||||
14. Geographical Information | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenues | |||||||||||||
United States | $ | 353,274 | $ | 320,246 | $ | 258,807 | |||||||
United Kingdom | 92,601 | 89,483 | 79,419 | ||||||||||
Rest of World | 32,577 | 33,201 | 22,315 | ||||||||||
$ | 478,452 | $ | 442,930 | $ | 360,541 | ||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Fixed assets, net | |||||||||||||
India | $ | 21,433 | $ | 29,539 | |||||||||
United States | 3,981 | 4,418 | |||||||||||
Philippines | 8,409 | 4,363 | |||||||||||
Rest of World | 741 | 1,036 | |||||||||||
$ | 34,564 | $ | 39,356 | ||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
15. Commitments and Contingencies | |
Fixed Asset Commitments | |
At December 31, 2013, the Company has committed to spend approximately $12,239 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 Income 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 December 31, 2013 and 2012 is $14,742 and $18,624, respectively of which the Company has already made payment or provided bank guarantee to the extent $13,797 and $14,715, respectively. Amounts paid as deposits in respect of such assessments aggregating to $11,653 and $12,307 as of December 31, 2013 and 2012, respectively, are included in “Other assets” and amounts deposited for bank guarantees aggregating to $2,144 and $2,408 as of December 31, 2013 and 2012, respectively, are included in “Restricted cash” in the non-current assets section of the Company’s consolidated balance sheets as of December 31, 2013 and 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 of crystallization of these liabilities 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 for subsequent years. Even if these disputes are resolved, the Indian tax authorities may still serve additional orders. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Basis of Preparation and Principles of Consolidation | ' | ||||||||||||
(a) Basis of Preparation and Principles of Consolidation | |||||||||||||
The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“US GAAP”). The accompanying financial statements have been prepared on a consolidated basis and reflect 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 at December 31, 2012 represented the minority partner’s interest in the operations 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 sheets and consolidated statements of income, respectively. During the year ended December 31, 2013, the Company purchased the entire non-controlling interest from the minority partner for an insignificant amount. The minority partner’s interest in the operations for the years ended December 31, 2013, 2012 and 2011 was insignificant and is included under general and administrative expenses in the consolidated statements of income. | |||||||||||||
Use of Estimates | ' | ||||||||||||
(b) Use of Estimates | |||||||||||||
The preparation of the 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 consolidated financial statements and the consolidated statements of income during the reporting period. Although these estimates are based on management’s best assessment of the current business environment,actual results may be different 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 the fixed price contracts. | |||||||||||||
Foreign Currency Translation | ' | ||||||||||||
(c) Foreign Currency Translation | |||||||||||||
The functional currency of each entity in the Company is its respective local country currency which is also the currency of the primary economic environment in which it operates except for the entities in Mauritius which use the U.S. dollar as it’s functional currency. Monetary assets and liabilities in foreign currencies are re-measured into functional currency at the rates of exchange prevailing at the balance sheet dates. Transactions in foreign currencies are re-measured into functional currency at the rates of exchange prevailing on the date of the transaction. All transaction foreign exchange gains and losses are recorded in the accompanying consolidated statements of income. | |||||||||||||
The assets and liabilities of the subsidiaries for which the functional currency is other than the U.S. dollar are translated into U.S. dollars, the reporting currency, at the rate of exchange prevailing on the balance sheet dates. Revenues and expenses are translated into U.S. dollars at the exchange rates prevailing on the last business day of each month, which approximates the average monthly exchange rate. Resulting translation adjustments are included in accumulated other comprehensive loss in the audited consolidated balance sheets. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
(d) Revenue Recognition | |||||||||||||
The Company derives its revenues from outsourcing and transformation services. Revenues from outsourcing services are recognized primarily on a time-and-material, cost-plus or unit-priced basis; revenues from transformation services are recognized primarily on a time-and-material and fixed price basis. The services provided within our outsourcing and transformation contracts generally contain one unit of accounting except the information technology contracts involving complex implementation services and post contract maintenance services. Revenues are recognized under our contracts generally when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, services have been performed and collection of amounts billed is reasonably assured. | |||||||||||||
Revenues under time-and-material contracts are recognized as the services are performed. Revenues are recognized on cost-plus contracts on the basis of contractually agreed direct and indirect costs incurred on a client contract plus an agreed upon profit mark-up. Such revenues are recognized as the related services are provided in accordance with the client contract. When the terms of the client contract specify service level parameters that must be met (such as turnaround time or accuracy), we monitor such service level parameters to determine if any service credits or penalties have been incurred. Revenues are recognized net of any service credits that are due to a client. We have experienced minimal service credits and penalties to date. Revenue on contingent fee based contracts is recognized when the related contingency has been met to the client’s satisfaction. | |||||||||||||
Revenues for Company’s fixed-price transformation services contracts are recognized using the proportional performance method when the pattern of performance under the contracts can be reasonably determined. We estimate the proportional performance of a contract by comparing the actual number of hours or days worked to the estimated total number of hours or days required to complete each engagement. The use of the proportional performance method requires significant judgment relative to estimating the number of hours or days required to complete the contracted scope of work, including assumptions and estimates relative to the length of time to complete the project and the nature and complexity of the work to be performed. We regularly monitor our estimates for completion of a project and record changes in the period in which a change in an estimate is determined. If a change in an estimate results in a projected loss on a project, such loss is recognized in the period in which it is first identified. | |||||||||||||
Revenues from software licensing arrangements, which does not involve significant production, modification, or customization of software, are recognized at the later of time of delivery or expiration of significant termination rights as long as other revenue recognition criteria (mentioned above) are met. When there are significant production, modifications or customization, installation, systems integration or related services, the professional services and license revenues are combined as a single unit of account and maintenance services, if any, as a separate unit of account and the total contract fees are allocated among the two based on residual value method. Revenues related to license fee and the complex information technology application development services are recognized as the service is performed using the percentage of completion method of accounting, under which the total value of revenue is recognized on the basis of the percentage that each contract’s total labor hours to date bears to the total expected labor hours (input method). Revenues related to the maintenance services contract, whether entered into solely for providing such services or is segregated from a multiple element contract, is recognized on a straight-line basis over the contract term unless revenues are earned and obligations are fulfilled in a different pattern. | |||||||||||||
The Company accrues for revenue and receivables for services rendered between the last billing date and the balance sheet date. Accordingly, our accounts receivable include amounts for services that we have performed and for which an invoice has not yet been issued to the client. | |||||||||||||
Reimbursements of out-of-pocket expenses received from clients have been included as part of revenues on a gross basis. Revenues for the following periods include reimbursements of out-of-pocket expenses: | |||||||||||||
Year ended December 31, 2013 | $ | 18,621 | |||||||||||
Year ended December 31, 2012 | $ | 18,862 | |||||||||||
Year ended December 31, 2011 | $ | 16,073 | |||||||||||
Cash and Cash Equivalents and Restricted Cash | ' | ||||||||||||
(e) Cash and Cash Equivalents and Restricted Cash | |||||||||||||
The Company considers all highly liquid investments purchased with an original maturity of ninety days or less to be cash equivalents. Pursuant to the Company’s investment policy, its surplus funds are kept as cash or cash equivalents and are invested in highly-rated mutual funds, money market accounts and time deposits to reduce its exposure to market risk with regard to these funds. | |||||||||||||
Current restricted cash represents amounts on deposit with banks against bank guarantees issued through banks for equipment imports that will mature on various dates before December 31, 2014, as well as client funds held in dedicated bank accounts. | |||||||||||||
Non-current restricted cash represents amounts on deposit with banks against bank guarantees issued through banks for equipment imports and for demands against pending income tax assessments (see Note 15 for details), that will mature on various dates after December 31, 2014. | |||||||||||||
Investments | ' | ||||||||||||
(f) Investments | |||||||||||||
The Company’s investments consist of time deposits with financial institutions which are valued at cost and approximate fair value. Interest earned on such investments is included in interest income. Investments with original maturities greater than ninety days but less than twelve months are classified as short-term investments. Investments with maturities greater than twelve months from the balance sheet date are classified as long-term investments. | |||||||||||||
Accounts Receivable | ' | ||||||||||||
(g) Accounts Receivable | |||||||||||||
Accounts receivable are recorded net of allowances for doubtful accounts. Allowances for doubtful accounts are established through the evaluation of the accounts receivable aging and prior collection experience to estimate the ultimate collectability of these receivables. As of December 31, 2013 and 2012, the Company had $91 and $207 of allowance for doubtful accounts, respectively. | |||||||||||||
Accounts receivable include unbilled accounts receivable which represents revenues for services performed but yet to be billed to the client. As of December 31, 2013 and 2012, the Company had $16,400 and $15,601 of unbilled accounts receivable, respectively. | |||||||||||||
Fixed Assets | ' | ||||||||||||
(h) Fixed Assets | |||||||||||||
Fixed assets are stated at cost less accumulated depreciation. Equipment held under capital leases are stated at the lower of present value of minimum lease payments at the inception of the leases or its fair value. Advances paid towards acquisition of fixed assets and the cost of fixed assets not yet placed in service before the end of the period are classified as construction in progress. | |||||||||||||
Fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable through an assessment of the estimated future undiscounted cash flows related to such assets. In the event that assets are found to be carried at amounts that are in excess of estimated undiscounted future cash flows, the carrying value of the related asset or group of assets is reduced to a level commensurate with fair value based on a discounted cash flow analysis. | |||||||||||||
Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Depreciation and amortization on equipment held under capital leases and leasehold improvements are computed using the straight-line method over the shorter of the assets’ estimated useful lives or the lease term. | |||||||||||||
The estimated lives used in determining depreciation are as follows: | |||||||||||||
Estimated | |||||||||||||
Useful Life | |||||||||||||
(Years) | |||||||||||||
Network equipment, computers and software | 5-Mar | ||||||||||||
Buildings | 30 | ||||||||||||
Leasehold improvements | 8-Mar | ||||||||||||
Office furniture and equipment | 7-Mar | ||||||||||||
Motor vehicles | 5-Feb | ||||||||||||
Business Combinations, Goodwill and Other Intangible Assets | ' | ||||||||||||
(i) Business Combinations, Goodwill and Other Intangible Assets | |||||||||||||
ASC topic 805, “Business Combinations” (ASC No. 805), requires that the purchase method of accounting be used for all business combinations. The guidance specifies criteria as to intangible assets acquired in a business combination that must be recognized and reported separately from goodwill. Under ASC topic 350, “Intangibles—Goodwill and Other” (ASC No. 350), all assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. | |||||||||||||
Goodwill represents the cost of the acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis, relying on a number of factors including operating results, business plans and estimated future cash flows of the reporting units to which it is assigned. Recoverability of goodwill is evaluated using a two-step process. The first step involves a comparison of the fair value of a reporting unit with its carrying value. The fair value of the reporting unit is measured by discounting estimated future cash flows. If the carrying amount of the reporting unit exceeds its fair value, the second step of the process involves a comparison of the fair value and carrying value of the goodwill of that reporting unit. If the carrying value of the goodwill of a reporting unit exceeds the fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess. Goodwill of a reporting unit is tested for impairment annually or if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. | |||||||||||||
Intangible assets acquired in a business combination are initially valued and recognized at fair market value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over the estimated useful lives and are reviewed for impairment, if indicators of impairment arise. The evaluation of impairment is based upon a comparison of the carrying amount of the intangible asset to its fair value, which is calculated using the estimated future undiscounted net cash flows expected to be generated by the asset. If the fair value of the intangible assets is less than the carrying amount of the asset, the asset is considered impaired and an impairment expense is recognized equal to any shortfall in the current period. | |||||||||||||
The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method: | |||||||||||||
Customer relationships | 3-15 years | ||||||||||||
Leasehold benefits | 3-8 years | ||||||||||||
Developed technology | 5-10 years | ||||||||||||
Non-compete agreements | 1-2 years | ||||||||||||
Trade names and trademarks | 3-5 years | ||||||||||||
Derivative Financial Instruments | ' | ||||||||||||
(j) Derivative Financial Instruments. | |||||||||||||
In the normal course of business, the Company uses derivative instruments for the purpose of mitigating the exposure from 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, and not for speculative trading purposes. These derivative contracts are purchased within the Company’s policy and are with counterparties that are highly rated financial institutions. | |||||||||||||
The Company hedges anticipated transactions that are subject to foreign exchange exposure with foreign currency exchange contracts that qualify as cash flow hedges. Changes in the fair value of these cash flow hedges which are deemed effective, are recorded in accumulated other comprehensive income/(loss) (AOCI) until the hedged transactions occur and at that time are recognized in the consolidated statements of income. Changes in the fair value of cash flow hedges deemed ineffective are recognized in the consolidated statement of income and are included in foreign exchange (loss)/gain. The Company also uses derivatives instruments consisting of foreign currency exchange contracts to hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the functional currency. Changes in the fair value of these derivatives are recognized in the consolidated statements of income and are included in foreign exchange (loss)/gain. | |||||||||||||
The Company evaluates 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 consolidated statements of income and is included in foreign exchange (loss)/gain. For hedge relationships 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. | |||||||||||||
Retirement Benefits | ' | ||||||||||||
(k) Retirement Benefits | |||||||||||||
Contributions to defined contribution plans are charged to the consolidated statements of income in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. | |||||||||||||
Share-Based Compensation | ' | ||||||||||||
(l) Share-Based Compensation | |||||||||||||
The Company recognizes stock-based compensation expense in the consolidated financial statements for awards of equity instruments to employees and non-employee directors based on the grant-date fair value of those awards. The Company recognizes these compensation costs, net of an estimated forfeiture rate, over the requisite service period of the award. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeiture differ from those estimates. | |||||||||||||
Income Taxes | ' | ||||||||||||
(m) Income Taxes | |||||||||||||
The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates. The deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases and all operating losses carried forward, if any. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which the applicable temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax status is recognized in the statement of income in the period in which the change is identified. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |||||||||||||
The Company establishes provisions for uncertain tax provisions and related interest and penalties when the Company believes those tax positions are not more likely than not of being sustained, if challenged. | |||||||||||||
Financial Instruments and Concentration of Credit Risk | ' | ||||||||||||
(n) Financial Instruments and Concentration of Credit Risk | |||||||||||||
Financial Instruments. For certain financial instruments including cash and cash equivalents, short-term investments, accounts receivable, accounts payable, accrued expenses, and other current liabilities, recorded amounts approximate fair value due to the relatively short maturity periods of such instruments. | |||||||||||||
Concentration of Credit Risk . Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, time deposits, accounts receivable and derivative financial instruments. By their nature, all such financial instruments involve risks including the credit risks of non-performance by counterparties. Pursuant to the Company’s investment policy, its surplus funds are maintained as cash or cash equivalents and are invested in highly-rated mutual funds, money market accounts and time deposits, placed with highly rated financial institutions to reduce its exposure to market risk with regard to these funds. Credit losses on accounts receivable have not been material because of a large concentration of revenues with a small number of large, established companies. The Company evaluates the creditworthiness of its clients in conjunction with its revenue recognition processes as well as through its ongoing collectability assessment processes for accounts receivable. | |||||||||||||
Earnings Per Share | ' | ||||||||||||
(o) 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: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerators: | |||||||||||||
Net income | $ | 48,097 | $ | 41,836 | $ | 34,780 | |||||||
Denominators: | |||||||||||||
Basic weighted average common shares outstanding | 32,750,178 | 31,968,386 | 30,264,805 | ||||||||||
Dilutive effect of share based awards | 1,092,760 | 1,202,719 | 1,281,339 | ||||||||||
Diluted weighted average common shares outstanding | 33,842,938 | 33,171,105 | 31,546,144 | ||||||||||
Earnings per share: | |||||||||||||
Basic | $ | 1.47 | $ | 1.31 | $ | 1.15 | |||||||
Diluted | $ | 1.42 | $ | 1.26 | $ | 1.1 | |||||||
Weighted average common shares considered anti-dilutive in computing diluted earnings per share | 268,219 | 413,493 | 424,081 | ||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||
(p) Accumulated Other Comprehensive Loss | |||||||||||||
For the Company, comprehensive loss consists of net earnings/(loss), amortization of actuarial gain/(loss) on retirement benefits and changes in the cumulative foreign currency translation adjustments. In addition, the Company enters into foreign currency exchange contracts, which are designated as cash flow hedges in accordance with ASC No. 815. Changes in the fair values of contracts that are deemed effective are recorded as a component of accumulated other comprehensive loss until the settlement of that contract. The balances as of December 31, 2013 and 2012 are as follows: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Cumulative currency translation adjustments | $ | (50,091 | ) | $ | (30,486 | ) | |||||||
Unrealized loss on cash flow hedges, net of taxes of ($2,736) and ($2,521) | (9,699 | ) | (5,456 | ) | |||||||||
Retirement benefits, net of taxes of ($263) and ($203) | (928 | ) | (705 | ) | |||||||||
Accumulated other comprehensive loss | $ | (60,718 | ) | $ | (36,647 | ) | |||||||
Accrued Expenses and Other Current Liabilities | ' | ||||||||||||
(q) Accrued expenses and other current liabilities | |||||||||||||
Accrued expenses and other current liabilities consist of the following: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Accrued expenses | $ | 20,607 | $ | 20,134 | |||||||||
Derivative instruments | 7,689 | 6,403 | |||||||||||
Other current liabilities | 3,923 | 5,200 | |||||||||||
Accrued expenses and other current liabilities | $ | 32,219 | $ | 31,737 | |||||||||
Non-Current Liabilities | ' | ||||||||||||
(r) Non-current liabilities | |||||||||||||
Non-current liabilities consist of the following: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Derivative instruments | $ | 5,606 | $ | 3,458 | |||||||||
Unrecognized tax benefits | 4,776 | 2,680 | |||||||||||
Deferred rent | 4,973 | 4,631 | |||||||||||
Retirement benefits | 3,543 | 2,380 | |||||||||||
Other non-current liabilities | 914 | 1,168 | |||||||||||
Non-current liabilities | $ | 19,812 | $ | 14,317 | |||||||||
Recent Accounting Pronouncements | ' | ||||||||||||
(s) Recent Accounting Pronouncements | |||||||||||||
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 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 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 consolidated financial statements. | |||||||||||||
Goodwill And Intangible Assets [Member] | ' | ||||||||||||
Business Combinations, Goodwill and Other Intangible Assets | ' | ||||||||||||
Goodwill | |||||||||||||
The following table sets forth details of the Company’s goodwill balance as of December 31, 2013: | |||||||||||||
Outsourcing | Transformation | ||||||||||||
Services | Services | Total | |||||||||||
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 | (3,291 | ) | — | (3,291 | ) | ||||||||
Allocation on sale of a business unit (2) | (250 | ) | — | (250 | ) | ||||||||
Balance at December 31, 2013 | $ | 90,622 | $ | 16,785 | $ | 107,407 | |||||||
-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 year ended December 31, 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 year ended December 31, 2013. | ||||||||||||
The entire amount of goodwill recognized from the Landacorp Acquisition in 2012 is not deductible for tax purposes. | |||||||||||||
Based on the results of the impairment testing performed during the year ended December 31, 2013, the Company’s goodwill was not impaired. The Company makes every reasonable effort to ensure that it accurately estimates the fair value of the reporting units. However, future changes in the assumptions used to make these estimates could result in the recording of an impairment loss. | |||||||||||||
Intangible Assets | |||||||||||||
Information regarding the Company’s intangible assets is set forth below: | |||||||||||||
As of December 31, 2013 | |||||||||||||
Gross | Accumulated | Net Carrying | |||||||||||
Carrying Amount | Amortization | Amount | |||||||||||
Customer relationships | $ | 38,614 | $ | (12,201 | ) | $ | 26,413 | ||||||
Leasehold benefits | 2,986 | (1,455 | ) | 1,531 | |||||||||
Developed technology | 6,013 | (1,458 | ) | 4,555 | |||||||||
Non-compete agreements | 1,316 | (1,316 | ) | — | |||||||||
Trade names and trademarks | 3,322 | (1,706 | ) | 1,616 | |||||||||
$ | 52,251 | $ | (18,136 | ) | $ | 34,115 | |||||||
As of December 31, 2012 | |||||||||||||
Gross | Accumulated | Net Carrying | |||||||||||
Carrying Amount | Amortization | 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 years ended December 31, 2013, 2012 and 2011 was $6,300, $5,638 and $4,329, 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 lived trade names and trademarks as of December 31, 2013 and December 31, 2012. | |||||||||||||
Estimated amortization of intangible assets during the year ending December 31, | |||||||||||||
2014 | $ | 5,793 | |||||||||||
2015 | $ | 5,543 | |||||||||||
2016 | $ | 5,541 | |||||||||||
2017 | $ | 5,509 | |||||||||||
2018 | $ | 5,414 | |||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Summary of Revenues and Reimbursements Out-of-Pocket Expenses | ' | ||||||||||||
Revenues for the following periods include reimbursements of out-of-pocket expenses: | |||||||||||||
Year ended December 31, 2013 | $ | 18,621 | |||||||||||
Year ended December 31, 2012 | $ | 18,862 | |||||||||||
Year ended December 31, 2011 | $ | 16,073 | |||||||||||
Summary of Estimated Lives Used in Determining Depreciation | ' | ||||||||||||
The estimated lives used in determining depreciation are as follows: | |||||||||||||
Estimated | |||||||||||||
Useful Life | |||||||||||||
(Years) | |||||||||||||
Network equipment, computers and software | 5-Mar | ||||||||||||
Buildings | 30 | ||||||||||||
Leasehold improvements | 8-Mar | ||||||||||||
Office furniture and equipment | 7-Mar | ||||||||||||
Motor vehicles | 5-Feb | ||||||||||||
Summary of Lived Intangible Assets Amortized over their Estimated Useful Lives | ' | ||||||||||||
The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method: | |||||||||||||
Customer relationships | 3-15 years | ||||||||||||
Leasehold benefits | 3-8 years | ||||||||||||
Developed technology | 5-10 years | ||||||||||||
Non-compete agreements | 1-2 years | ||||||||||||
Trade names and trademarks | 3-5 years | ||||||||||||
Summary of Computation of Basic and Diluted Earning Per Share | ' | ||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerators: | |||||||||||||
Net income | $ | 48,097 | $ | 41,836 | $ | 34,780 | |||||||
Denominators: | |||||||||||||
Basic weighted average common shares outstanding | 32,750,178 | 31,968,386 | 30,264,805 | ||||||||||
Dilutive effect of share based awards | 1,092,760 | 1,202,719 | 1,281,339 | ||||||||||
Diluted weighted average common shares outstanding | 33,842,938 | 33,171,105 | 31,546,144 | ||||||||||
Earnings per share: | |||||||||||||
Basic | $ | 1.47 | $ | 1.31 | $ | 1.15 | |||||||
Diluted | $ | 1.42 | $ | 1.26 | $ | 1.1 | |||||||
Weighted average common shares considered anti-dilutive in computing diluted earnings per share | 268,219 | 413,493 | 424,081 | ||||||||||
Summary of Accumulated Other Comprehensive Loss | ' | ||||||||||||
The balances as of December 31, 2013 and 2012 are as follows: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Cumulative currency translation adjustments | $ | (50,091 | ) | $ | (30,486 | ) | |||||||
Unrealized loss on cash flow hedges, net of taxes of ($2,736) and ($2,521) | (9,699 | ) | (5,456 | ) | |||||||||
Retirement benefits, net of taxes of ($263) and ($203) | (928 | ) | (705 | ) | |||||||||
Accumulated other comprehensive loss | $ | (60,718 | ) | $ | (36,647 | ) | |||||||
Summary of Accrued Expenses and Other Current Liabilities | ' | ||||||||||||
Accrued expenses and other current liabilities consist of the following: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Accrued expenses | $ | 20,607 | $ | 20,134 | |||||||||
Derivative instruments | 7,689 | 6,403 | |||||||||||
Other current liabilities | 3,923 | 5,200 | |||||||||||
Accrued expenses and other current liabilities | $ | 32,219 | $ | 31,737 | |||||||||
Summary of Non-current Liabilities | ' | ||||||||||||
Non-current liabilities consist of the following: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Derivative instruments | $ | 5,606 | $ | 3,458 | |||||||||
Unrecognized tax benefits | 4,776 | 2,680 | |||||||||||
Deferred rent | 4,973 | 4,631 | |||||||||||
Retirement benefits | 3,543 | 2,380 | |||||||||||
Other non-current liabilities | 914 | 1,168 | |||||||||||
Non-current liabilities | $ | 19,812 | $ | 14,317 | |||||||||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||
Summary of Quarterly Results | ' | ||||||||||||||||||||
Summarized quarterly results for the years ended December 31, 2013 and 2012 are as follows: | |||||||||||||||||||||
Three months ended | |||||||||||||||||||||
2013 | March 31 | June 30 | September 30 | December 31 | Full Year | ||||||||||||||||
Revenues | $ | 116,006 | $ | 116,008 | $ | 122,315 | $ | 124,123 | $ | 478,452 | |||||||||||
Gross profit | 43,093 | 42,078 | 50,266 | 52,073 | 187,510 | ||||||||||||||||
Net income | $ | 9,762 | $ | 9,236 | $ | 13,240 | $ | 15,859 | $ | 48,097 | |||||||||||
Earnings Per Share: | |||||||||||||||||||||
Basic | $ | 0.3 | $ | 0.28 | $ | 0.4 | $ | 0.48 | $ | 1.47 | |||||||||||
Diluted | $ | 0.29 | $ | 0.27 | $ | 0.39 | $ | 0.47 | $ | 1.42 | |||||||||||
Weighted-average number of shares used in computing earnings per share: | |||||||||||||||||||||
Basic | 32,521,481 | 32,778,800 | 32,907,281 | 32,788,489 | 32,750,178 | ||||||||||||||||
Diluted | 33,719,794 | 33,899,097 | 33,955,445 | 33,792,757 | 33,842,938 | ||||||||||||||||
Note: | |||||||||||||||||||||
Stock compensation expense | $ | 3,645 | $ | 2,860 | $ | 2,967 | $ | 2,360 | $ | 11,832 | |||||||||||
Amortization of intangibles | $ | 1,634 | $ | 1,596 | $ | 1,534 | $ | 1,536 | $ | 6,300 | |||||||||||
Three months ended | |||||||||||||||||||||
2012 | 31-Mar | 30-Jun | 30-Sep | 31-Dec | Full Year | ||||||||||||||||
Revenues | $ | 104,608 | $ | 108,030 | $ | 112,639 | $ | 117,653 | $ | 442,930 | |||||||||||
Gross profit | 37,936 | 41,985 | 43,989 | 47,144 | 171,054 | ||||||||||||||||
Net income | $ | 8,916 | $ | 9,054 | $ | 11,703 | $ | 12,163 | $ | 41,836 | |||||||||||
Earnings Per Share: | |||||||||||||||||||||
Basic | $ | 0.28 | $ | 0.28 | $ | 0.36 | $ | 0.38 | $ | 1.31 | |||||||||||
Diluted | $ | 0.27 | $ | 0.27 | $ | 0.35 | $ | 0.36 | $ | 1.26 | |||||||||||
Weighted-average number of shares used in computing earnings per share: | |||||||||||||||||||||
Basic | 31,445,592 | 31,970,881 | 32,154,001 | 32,297,414 | 31,968,386 | ||||||||||||||||
Diluted | 32,783,855 | 33,096,607 | 33,283,854 | 33,514,446 | 33,171,105 | ||||||||||||||||
Note: | |||||||||||||||||||||
Stock compensation expense | $ | 2,743 | $ | 2,715 | $ | 1,871 | $ | 2,087 | $ | 9,416 | |||||||||||
Amortization of intangibles | $ | 1,394 | $ | 1,365 | $ | 1,324 | $ | 1,555 | $ | 5,638 | |||||||||||
Note: Figures for the quarters may not be comparable due to the Landacorp acquisition in 2012. |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 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 years ended December 31, 2013, 2012 and 2011, for outsourcing services and transformation services segments, respectively, are as follows: | |||||||||||||||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | ||||||||||||||||||||||||
Outsourcing | Transformation | Total | Outsourcing | Transformation | Total | ||||||||||||||||||||
Services | Services | Services | Services | ||||||||||||||||||||||
Revenues | $ | 394,987 | $ | 83,465 | $ | 478,452 | $ | 366,767 | $ | 76,163 | $ | 442,930 | |||||||||||||
Cost of revenues (exclusive of depreciation and amortization) | 232,286 | 58,656 | 290,942 | 222,860 | 49,016 | 271,876 | |||||||||||||||||||
Gross profit | $ | 162,701 | $ | 24,809 | $ | 187,510 | $ | 143,907 | $ | 27,147 | $ | 171,054 | |||||||||||||
Operating expenses | 120,090 | 113,822 | |||||||||||||||||||||||
Other income/(expense) | (2,443 | ) | (512 | ) | |||||||||||||||||||||
Income tax provision | 16,880 | 14,884 | |||||||||||||||||||||||
Net income | $ | 48,097 | $ | 41,836 | |||||||||||||||||||||
Year ended December 31, 2011 | |||||||||||||||||||||||||
Outsourcing | Transformation | ||||||||||||||||||||||||
Services | Services | Total | |||||||||||||||||||||||
Revenues | $ | 294,361 | $ | 66,180 | $ | 360,541 | |||||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization) | 178,301 | 41,686 | 219,987 | ||||||||||||||||||||||
Gross profit | $ | 116,060 | $ | 24,494 | $ | 140,554 | |||||||||||||||||||
Operating expenses | 99,236 | ||||||||||||||||||||||||
Other income/(expense) | 5,330 | ||||||||||||||||||||||||
Income tax provision | 11,868 | ||||||||||||||||||||||||
Net income | $ | 34,780 | |||||||||||||||||||||||
Business_Combinations_Goodwill1
Business Combinations, Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Summary of Total Purchase Price of Acquisition | ' | ||||||||||||
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 December 31, 2013: | |||||||||||||
Outsourcing | Transformation | ||||||||||||
Services | Services | Total | |||||||||||
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 | (3,291 | ) | — | (3,291 | ) | ||||||||
Allocation on sale of a business unit (2) | (250 | ) | — | (250 | ) | ||||||||
Balance at December 31, 2013 | $ | 90,622 | $ | 16,785 | $ | 107,407 | |||||||
-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 year ended December 31, 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 year ended December 31, 2013. | ||||||||||||
Summary of Company's Intangible Assets | ' | ||||||||||||
Information regarding the Company’s intangible assets is set forth below: | |||||||||||||
As of December 31, 2013 | |||||||||||||
Gross | Accumulated | Net Carrying | |||||||||||
Carrying Amount | Amortization | Amount | |||||||||||
Customer relationships | $ | 38,614 | $ | (12,201 | ) | $ | 26,413 | ||||||
Leasehold benefits | 2,986 | (1,455 | ) | 1,531 | |||||||||
Developed technology | 6,013 | (1,458 | ) | 4,555 | |||||||||
Non-compete agreements | 1,316 | (1,316 | ) | — | |||||||||
Trade names and trademarks | 3,322 | (1,706 | ) | 1,616 | |||||||||
$ | 52,251 | $ | (18,136 | ) | $ | 34,115 | |||||||
As of December 31, 2012 | |||||||||||||
Gross | Accumulated | Net Carrying | |||||||||||
Carrying Amount | Amortization | 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 December 31, | |||||||||||||
2014 | $ | 5,793 | |||||||||||
2015 | $ | 5,543 | |||||||||||
2016 | $ | 5,541 | |||||||||||
2017 | $ | 5,509 | |||||||||||
2018 | $ | 5,414 | |||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Assets and Liabilities Measured at Fair Value | ' | ||||||||||||||||
The assets and liabilities measured at fair value on recurring basis are summarized below: | |||||||||||||||||
As of December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | |||||||||||||||||
Money market and mutual funds | $ | 116,662 | $ | — | $ | — | $ | 116,662 | |||||||||
Derivative financial instruments | — | 957 | — | 957 | |||||||||||||
Total | $ | 116,662 | $ | 957 | $ | — | $ | 117,619 | |||||||||
Liabilities | |||||||||||||||||
Derivative financial instruments | $ | — | $ | 13,295 | $ | — | $ | 13,295 | |||||||||
Total | $ | — | $ | 13,295 | $ | — | $ | 13,295 | |||||||||
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) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 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 consolidated financial statements: | |||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Other current assets: | |||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | 437 | $ | 980 | |||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | 423 | $ | 750 | |||||||||||||||||||||||||
Accrued expenses and other current liabilities: | |||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | 7,689 | $ | 6,249 | |||||||||||||||||||||||||
Other non current liabilities: | |||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | 5,606 | $ | 3,458 | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Other current assets: | |||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | 97 | $ | — | |||||||||||||||||||||||||
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 consolidated statements of income for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging | Amount of | Location of | Amount of | Location of | Amount of | ||||||||||||||||||||||||
Relationships | (Loss)/Gain | Loss | Loss Reclassified | Gain/(Loss) | Gain/(Loss) | ||||||||||||||||||||||||
Recognized | Reclassified from | from AOCI into | Recognized in | Recognized in | |||||||||||||||||||||||||
in AOCI on | AOCI into Income | Income (Effective | Income on | Income on | |||||||||||||||||||||||||
Derivative | (Effective Portion) | Portion) | Derivative | Derivative | |||||||||||||||||||||||||
(Effective Portion) | (Ineffective Portion | (Ineffective | |||||||||||||||||||||||||||
and Amount | Portion and | ||||||||||||||||||||||||||||
Excluded from | Amount | ||||||||||||||||||||||||||||
Effectiveness | Excluded | ||||||||||||||||||||||||||||
Testing) | from | ||||||||||||||||||||||||||||
Effectiveness | |||||||||||||||||||||||||||||
Testing) | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Foreign exchange contracts | $ | (9,599 | ) | $ | 708 | Foreign exchange | $ | (5,141 | ) | $ | (9,044 | ) | Foreign exchange | $ | — | $ | — | ||||||||||||
(loss)/gain | (loss)/gain | ||||||||||||||||||||||||||||
Amount of (Loss)/Gain | |||||||||||||||||||||||||||||
Recognized in Income on | |||||||||||||||||||||||||||||
Derivatives not designated | Derivatives | ||||||||||||||||||||||||||||
as Hedging Instruments | Location of Gain or (Loss) Recognized in | 2013 | 2012 | ||||||||||||||||||||||||||
Income on Derivatives | |||||||||||||||||||||||||||||
Foreign exchange contracts | Foreign exchange (loss)/gain | $ | (3,149 | ) | $ | 2,076 |
Fixed_Assets_Tables
Fixed Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Components of Fixed Assets, Net of Accumulated Depreciation | ' | ||||||||
Fixed assets consist of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
(Recasted) | |||||||||
Owned Assets: | |||||||||
Network equipment, computers and software | $ | 63,428 | $ | 62,580 | |||||
Buildings | 1,287 | 1,447 | |||||||
Land | 842 | 946 | |||||||
Leasehold improvements | 24,382 | 23,919 | |||||||
Office furniture and equipment | 11,111 | 10,695 | |||||||
Motor vehicles | 507 | 638 | |||||||
Capital work in progress | 715 | 1,707 | |||||||
102,272 | 101,932 | ||||||||
Less: Accumulated depreciation and amortization | (69,242 | ) | (65,581 | ) | |||||
$ | 33,030 | $ | 36,351 | ||||||
Assets under capital leases: | |||||||||
Network equipment, computers and software | $ | 184 | $ | 361 | |||||
Leasehold improvements | 1,955 | 2,454 | |||||||
Office furniture and equipment | 1,079 | 1,432 | |||||||
Motor vehicles | 934 | 954 | |||||||
4,152 | 5,201 | ||||||||
Less: Accumulated depreciation and amortization | (2,618 | ) | (2,196 | ) | |||||
$ | 1,534 | $ | 3,005 | ||||||
Fixed assets, net | $ | 34,564 | $ | 39,356 | |||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||
Summary of Change in Projected Benefit Obligation | ' | ||||||||||||
The following table sets forth the activity and the funded status of the Gratuity Plan and the amounts recognized in the Company’s consolidated financial statements at the end of the relevant periods: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Change in projected benefit obligation: | |||||||||||||
Benefit obligation at the beginning of the year | $ | 5,491 | $ | 4,429 | |||||||||
Service cost | 1,341 | 1,027 | |||||||||||
Interest cost | 444 | 414 | |||||||||||
Benefits paid | (466 | ) | (595 | ) | |||||||||
Actuarial loss | 554 | 361 | |||||||||||
Divestiture | (134 | ) | — | ||||||||||
Effect of exchange rate changes | (663 | ) | (145 | ) | |||||||||
Projected benefit obligation at the end of the year | $ | 6,567 | $ | 5,491 | |||||||||
Unfunded amount–non-current | $ | 3,543 | $ | 2,380 | |||||||||
Unfunded amount–current | 868 | 910 | |||||||||||
Total accrued liability | $ | 4,411 | $ | 3,290 | |||||||||
Accumulated benefit obligation | $ | 4,628 | $ | 4,141 | |||||||||
Net Gratuity Cost | ' | ||||||||||||
Net gratuity cost includes the following components: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Service cost | $ | 1,341 | $ | 1,027 | $ | 792 | |||||||
Interest cost | 444 | 414 | 302 | ||||||||||
Expected return on plan assets | (164 | ) | (72 | ) | (24 | ) | |||||||
Actuarial loss | 139 | 125 | 103 | ||||||||||
Net gratuity cost | $ | 1,760 | $ | 1,494 | $ | 1,173 | |||||||
Summary of Components Accumulated Other Comprehensive Loss | ' | ||||||||||||
The components of accumulated other comprehensive loss that have not been recognized as components of net gratuity cost in the statement of income as of December 31, 2013 and 2012 is as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Net actuarial loss | $ | 917 | $ | 694 | |||||||||
Net prior service cost | 11 | 11 | |||||||||||
Accumulated other comprehensive loss, net of tax | $ | 928 | $ | 705 | |||||||||
Summary of Weighted Average Assumptions | ' | ||||||||||||
The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost are: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Discount rate | 8.3 | % | 8.5 | % | 9.1 | % | |||||||
Rate of increase in compensation levels | 8.2 | % | 8.2 | % | 8.4 | % | |||||||
Summary of Expected Benefit Payments | ' | ||||||||||||
Expected benefit payments during the year ending December 31, | |||||||||||||
2014 | $ | 1,803 | |||||||||||
2015 | $ | 1,662 | |||||||||||
2016 | $ | 1,517 | |||||||||||
2017 | $ | 1,359 | |||||||||||
2018 | $ | 1,178 | |||||||||||
2019 to 2023 | $ | 3,035 | |||||||||||
Change in Plan Assets | ' | ||||||||||||
Change in Plan Assets | |||||||||||||
Plan assets at January 1, 2012 | $ | 1,015 | |||||||||||
Employer contribution | 1,089 | ||||||||||||
Actual return | 72 | ||||||||||||
Actuarial gain | 92 | ||||||||||||
Effect of exchange rate changes | (67 | ) | |||||||||||
Plan assets at January 1, 2013 | $ | 2,201 | |||||||||||
Actual return | 206 | ||||||||||||
Effect of exchange rate changes | (251 | ) | |||||||||||
Plan assets at December 31, 2013 | $ | 2,156 | |||||||||||
Contribution to Various Defined Contribution Plans | ' | ||||||||||||
During the years ended December 31, 2013, 2012 and 2011, 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: | |||||||||||||
Year ended December 31, 2013 | $ | 5,448 | |||||||||||
Year ended December 31, 2012 | $ | 5,626 | |||||||||||
Year ended December 31, 2011 | $ | 5,011 |
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
Future Minimum Lease Payments under Capital Leases | ' | ||||
Future minimum lease payments under these capital leases as of December 31, 2013 are as follows: | |||||
Year ending December 31, | |||||
2014 | $ | 1,305 | |||
2015 | 1,031 | ||||
2016 | 410 | ||||
2017 | 33 | ||||
Total minimum lease payments | 2,779 | ||||
Less: amount representing interest | 289 | ||||
Present value of minimum lease payments | 2,490 | ||||
Less: current portion | 1,119 | ||||
Long term capital lease obligation | $ | 1,371 | |||
Future Minimum Lease Payments under Non-Cancelable Operating Lease Agreements Expiring after December 31, 2013 | ' | ||||
Future minimum lease payments under non-cancelable agreements expiring after December 31, 2013 are set forth below: | |||||
Year ending December 31, | |||||
2014 | $ | 8,389 | |||
2015 | 7,074 | ||||
2016 | 3,288 | ||||
2017 | 894 | ||||
2018 | 693 | ||||
2019 and thereafter | 485 | ||||
$ | 20,823 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Summary of Components of Income Before Income Taxes | ' | ||||||||||||
The components of income before income taxes consist of the following: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic | $ | 24,056 | $ | 22,046 | $ | 6,012 | |||||||
Foreign | 40,921 | 34,674 | 40,636 | ||||||||||
$ | 64,977 | $ | 56,720 | $ | 46,648 | ||||||||
Summary of Income Tax Provision/(Benefit) Relating to Continuing Operations | ' | ||||||||||||
The income tax provision consists of the following: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current provision: | |||||||||||||
Domestic | $ | 3,466 | $ | 4,519 | $ | 1,433 | |||||||
Foreign | 10,930 | 5,638 | 12,140 | ||||||||||
$ | 14,396 | $ | 10,157 | $ | 13,573 | ||||||||
Deferred provision/(benefit): | |||||||||||||
Domestic | $ | 4,183 | $ | 4,371 | $ | 1,999 | |||||||
Foreign | (1,699 | ) | 356 | (3,704 | ) | ||||||||
$ | 2,484 | $ | 4,727 | $ | (1,705 | ) | |||||||
Income tax provision | $ | 16,880 | $ | 14,884 | $ | 11,868 | |||||||
Summary of Effective Income Tax Rate Differs from Amount Computed by Applying U.S. Federal Statutory Income Tax Rate to Income Before Income Taxes | ' | ||||||||||||
The effective income tax rate differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes approximately as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Expected tax provision | $ | 22,742 | $ | 19,852 | $ | 16,327 | |||||||
Change in valuation allowance | — | (254 | ) | (1,702 | ) | ||||||||
Impact of tax holiday | (5,531 | ) | (3,219 | ) | (3,234 | ) | |||||||
Foreign tax rate differential | (1,412 | ) | (1,071 | ) | (1,033 | ) | |||||||
Deferred tax (benefit)/provision | (433 | ) | 356 | (694 | ) | ||||||||
Unrecognized tax benefits and interest | 2,399 | (2,083 | ) | 877 | |||||||||
State taxes, net of Federal taxes | 601 | 620 | 841 | ||||||||||
Non-deductible expenses | 310 | 591 | 427 | ||||||||||
Prior year tax benefit | (875 | ) | — | — | |||||||||
Other | (921 | ) | 92 | 59 | |||||||||
Tax provision | $ | 16,880 | $ | 14,884 | $ | 11,868 | |||||||
Summary of Components of Deferred Tax Balances | ' | ||||||||||||
The components of the deferred tax balances as of December 31, 2013 and 2012 are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Tax credit carry forward | $ | 3,332 | $ | 2,932 | |||||||||
Depreciation and amortization | 5,745 | 5,955 | |||||||||||
Share-based compensation | 5,881 | 5,361 | |||||||||||
Accrued employee costs and other expenses | 3,252 | 2,863 | |||||||||||
Net operating loss carry forwards | 10,474 | 13,553 | |||||||||||
Unrealized exchange loss | 3,336 | 3,204 | |||||||||||
Deferred rent | 984 | 851 | |||||||||||
Allowance for doubtful accounts | 15 | 59 | |||||||||||
Others | 28 | 957 | |||||||||||
$ | 33,047 | $ | 35,735 | ||||||||||
Valuation allowance | (665 | ) | (665 | ) | |||||||||
Deferred tax assets | $ | 32,382 | $ | 35,070 | |||||||||
Deferred tax liabilities: | |||||||||||||
Unrealized exchange gain | $ | — | $ | 70 | |||||||||
Intangible assets | 13,170 | 13,417 | |||||||||||
Deferred tax liabilities: | $ | 13,170 | $ | 13,487 | |||||||||
Net deferred tax assets | $ | 19,212 | $ | 21,583 | |||||||||
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 December 31, 2013: | |||||||||||||
Balance as of January 1, 2013 | $ | 3,019 | |||||||||||
Increases related to prior year tax positions | 1,759 | ||||||||||||
Decreases related to prior year tax positions | — | ||||||||||||
Increases related to current year tax positions | 357 | ||||||||||||
Decreases related to current year tax positions | — | ||||||||||||
Effect of exchange rate changes | (222 | ) | |||||||||||
Balance as of December 31, 2013 | $ | 4,913 | |||||||||||
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 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 consolidated statements of income: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cost of revenue | $ | 2,413 | $ | 1,893 | $ | 1,635 | |||||||||||
General and administrative expenses | 5,077 | 4,551 | 4,589 | ||||||||||||||
Selling and marketing expenses | 4,342 | 2,972 | 3,238 | ||||||||||||||
Total (1) | $ | 11,832 | $ | 9,416 | $ | 9,462 | |||||||||||
-1 | The Company, during the year ended December 31, 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: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
Expected life (years) | 5.5 | 5.38 | 5.58 | ||||||||||||||
Risk free interest rate | 0.87 | % | 0.97 | % | 2.16 | % | |||||||||||
Volatility | 40 | % | 40 | % | 40 | % | |||||||||||
Share Based Compensation Stock Options Activity | ' | ||||||||||||||||
Stock option activity under the Company’s stock plans is shown below: | |||||||||||||||||
Number of | Weighted- | Aggregate | Weighted- | ||||||||||||||
Options | Average | Intrinsic | Average | ||||||||||||||
Exercise | Value | Remaining | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life (Years) | |||||||||||||||||
Outstanding at December 31, 2010 | 3,075,617 | $ | 12.17 | ||||||||||||||
Granted | 360,867 | 20.41 | |||||||||||||||
Exercised | (342,166 | ) | 11.97 | ||||||||||||||
Forfeited | (64,190 | ) | 10.06 | ||||||||||||||
Outstanding at December 31, 2011 | 3,030,128 | $ | 13.22 | ||||||||||||||
Granted | 416,129 | 25.36 | |||||||||||||||
Exercised | (793,053 | ) | 12.11 | ||||||||||||||
Forfeited | (198,570 | ) | 17.35 | ||||||||||||||
Outstanding at December 31, 2012 | 2,454,634 | $ | 15.3 | ||||||||||||||
Granted | 14,301 | 26.76 | |||||||||||||||
Exercised | (485,141 | ) | 11.32 | ||||||||||||||
Forfeited | (27,279 | ) | 24.13 | ||||||||||||||
Outstanding at December 31, 2013 | 1,956,515 | $ | 16.25 | $ | 22,255 | 5.55 | |||||||||||
Vested and exercisable at December 31, 2013 | 1,410,736 | $ | 13.9 | $ | 19,359 | 4.89 | |||||||||||
Available for grant at December 31, 2013 | 1,824,149 | ||||||||||||||||
Company's Stock Options Outstanding and Stock Options Vested and Exercisable | ' | ||||||||||||||||
The following table summarizes the status of the Company’s stock options outstanding and stock options vested and exercisable at December 31, 2013: | |||||||||||||||||
Options Outstanding | Options Vested and Exercisable | ||||||||||||||||
Range of Exercise Prices | Shares | Weighted- | Shares | Weighted- | |||||||||||||
Average | Average | ||||||||||||||||
Exercise Price | Exercise Price | ||||||||||||||||
$8.00 to $15.00 | 854,069 | $ | 10 | 854,069 | $ | 10 | |||||||||||
$15.01 to $24.00 | 752,246 | 19.15 | 496,238 | 19.22 | |||||||||||||
$24.01 to $36.15 | 350,200 | 25.23 | 60,429 | 25.28 | |||||||||||||
Total | 1,956,515 | $ | 16.25 | 1,410,736 | $ | 13.9 | |||||||||||
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- | Number | Weighted- | ||||||||||||||
Average | Average | ||||||||||||||||
Intrinsic Value | Intrinsic Value | ||||||||||||||||
Outstanding at December 31, 2010 | 235,885 | $ | 23.47 | 624,815 | $ | 18.13 | |||||||||||
Granted | — | — | 460,972 | 20.84 | |||||||||||||
Vested | (152,962 | ) | 19.02 | (108,670 | ) | 18.39 | |||||||||||
Forfeited | (19,089 | ) | 19.7 | (37,458 | ) | 18.89 | |||||||||||
Outstanding at December 31, 2011* | 63,834 | $ | 18.41 | 939,659 | $ | 19.4 | |||||||||||
Granted | — | — | 389,050 | 25.07 | |||||||||||||
Vested | (55,726 | ) | 18.26 | (198,842 | ) | 19.27 | |||||||||||
Forfeited | (2,901 | ) | 23.82 | (103,956 | ) | 21.41 | |||||||||||
Outstanding at December 31, 2012* | 5,207 | $ | 17.58 | 1,025,911 | $ | 21.36 | |||||||||||
Granted | — | — | 522,130 | 29.37 | |||||||||||||
Vested | (4,807 | ) | 17.56 | (300,316 | ) | 20.35 | |||||||||||
Forfeited | (400 | ) | 17.72 | (103,283 | ) | 25.04 | |||||||||||
Outstanding at December 31, 2013* | — | $ | — | 1,144,442 | $ | 24.95 | |||||||||||
* | Excludes $20,000, $24,000 and $24,000 restricted stock units vested during the years ended December 31, 2013, 2012 and 2011, respectively (112,000, 124,000 and 120,000 as of December 31, 2013, 2012 and 2011, respectively) for which the underlying common stock is yet to be issued. |
Geographical_Information_Table
Geographical Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Text Block [Abstract] | ' | ||||||||||||
Revenues Based on Geographical Information | ' | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenues | |||||||||||||
United States | $ | 353,274 | $ | 320,246 | $ | 258,807 | |||||||
United Kingdom | 92,601 | 89,483 | 79,419 | ||||||||||
Rest of World | 32,577 | 33,201 | 22,315 | ||||||||||
$ | 478,452 | $ | 442,930 | $ | 360,541 | ||||||||
Fixed Assets, Net Based on Geographical Information | ' | ||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Fixed assets, net | |||||||||||||
India | $ | 21,433 | $ | 29,539 | |||||||||
United States | 3,981 | 4,418 | |||||||||||
Philippines | 8,409 | 4,363 | |||||||||||
Rest of World | 741 | 1,036 | |||||||||||
$ | 34,564 | $ | 39,356 | ||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Summary of Revenues and Reimbursements Out-of-Pocket Expenses (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule Of Reimbursement Revenue [Abstract] | ' | ' | ' |
Revenues and reimbursements | $18,621 | $18,862 | $16,073 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | ' | ' |
Cash equivalents maturity period | 'Ninety days or less | ' |
Investments maturity period | 'Investments with original maturities greater than ninety days but less than twelve months are classified as short-term investments. Investments with maturities greater than twelve months from the balance sheet date are classified as long-term investments. | ' |
Allowance for doubtful accounts | $91 | $207 |
Unbilled accounts receivable | $16,400 | $15,601 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Summary of Estimated Lives Used In Determining Depreciation (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Network equipment, computers and software [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '3 years |
Network equipment, computers and software [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '5 years |
Buildings [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '30 years |
Leasehold improvements [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '3 years |
Leasehold improvements [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '8 years |
Office furniture and equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '3 years |
Office furniture and equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '7 years |
Motor vehicles [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '2 years |
Motor vehicles [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '5 years |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Summary of Lived Intangible Assets Amortized over their Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Customer Relationships [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted average life of intangible assets | '8 years 9 months 18 days |
Customer Relationships [Member] | Minimum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted average life of intangible assets | '3 years |
Customer Relationships [Member] | Maximum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted average life of intangible assets | '15 years |
Leasehold Benefits [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted average life of intangible assets | '6 years 9 months 18 days |
Leasehold Benefits [Member] | Minimum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted average life of intangible assets | '3 years |
Leasehold Benefits [Member] | Maximum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted average life of intangible assets | '8 years |
Developed Technology [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted average life of intangible assets | '8 years |
Developed Technology [Member] | Minimum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted average life of intangible assets | '5 years |
Developed Technology [Member] | Maximum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted average life of intangible assets | '10 years |
Non-compete Agreements [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted average life of intangible assets | '1 year 6 months |
Non-compete Agreements [Member] | Minimum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted average life of intangible assets | '1 year |
Non-compete Agreements [Member] | Maximum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted average life of intangible assets | '2 years |
Trade names and trademarks [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted average life of intangible assets | '3 years 6 months |
Trade names and trademarks [Member] | Minimum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted average life of intangible assets | '3 years |
Trade names and trademarks [Member] | Maximum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted average life of intangible assets | '5 years |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Summary of Computation of Basic and Diluted Earning Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Numerators: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $15,859 | $13,240 | $9,236 | $9,762 | $12,163 | $11,703 | $9,054 | $8,916 | $48,097 | $41,836 | $34,780 |
Denominators: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic weighted average common shares outstanding | 32,788,489 | 32,907,281 | 32,778,800 | 32,521,481 | 32,297,414 | 32,154,001 | 31,970,881 | 31,445,592 | 32,750,178 | 31,968,386 | 30,264,805 |
Dilutive effect of share based awards | ' | ' | ' | ' | ' | ' | ' | ' | 1,092,760 | 1,202,719 | 1,281,339 |
Diluted weighted average common shares outstanding | 33,792,757 | 33,955,445 | 33,899,097 | 33,719,794 | 33,514,446 | 33,283,854 | 33,096,607 | 32,783,855 | 33,842,938 | 33,171,105 | 31,546,144 |
Earnings Per Share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | $0.48 | $0.40 | $0.28 | $0.30 | $0.38 | $0.36 | $0.28 | $0.28 | $1.47 | $1.31 | $1.15 |
Diluted | $0.47 | $0.39 | $0.27 | $0.29 | $0.36 | $0.35 | $0.27 | $0.27 | $1.42 | $1.26 | $1.10 |
Weighted average common shares considered anti-dilutive in computing diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 268,219 | 413,493 | 424,081 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies - Summary of Accumulated Other Comprehensive Loss (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ' | ' |
Cumulative currency translation adjustments | ($50,091) | ($30,486) |
Unrealized loss on cash flow hedges, net of taxes of ($2,736) and ($2,521) | -9,699 | -5,456 |
Retirement benefits, net of taxes of ($263) and ($203) | -928 | -705 |
Accumulated other comprehensive loss | ($60,718) | ($36,647) |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies - Summary of Accumulated Other Comprehensive Loss (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ' | ' |
Unrealized loss on cash flow hedges, taxes | ($2,736) | ($2,521) |
Retirement benefits, taxes | ($263) | ($203) |
Recovered_Sheet1
Summary of Significant Accounting Policies - Summary of Accrued Expenses and Other Current Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Accrued expenses | $20,607 | $20,134 |
Derivative instruments | 7,689 | 6,403 |
Other current liabilities | 3,923 | 5,200 |
Accrued expenses and other current liabilities | $32,219 | $31,737 |
Recovered_Sheet2
Summary of Significant Accounting Policies - Summary of Non-current Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of non-current liabilities | ' | ' |
Derivative instruments | $5,606 | $3,458 |
Unrecognized tax benefits | 4,776 | 2,680 |
Deferred rent | 4,973 | 4,631 |
Retirement benefits | 3,543 | 2,380 |
Other non-current liabilities | 914 | 1,168 |
Non-current liabilities | $19,812 | $14,317 |
Quarterly_Financial_Data_Summa
Quarterly Financial Data - Summary of Quarterly Results (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Data [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $124,123 | $122,315 | $116,008 | $116,006 | $117,653 | $112,639 | $108,030 | $104,608 | $478,452 | $442,930 | $360,541 |
Gross profit | 52,073 | 50,266 | 42,078 | 43,093 | 47,144 | 43,989 | 41,985 | 37,936 | 187,510 | 171,054 | 140,554 |
Net income | 15,859 | 13,240 | 9,236 | 9,762 | 12,163 | 11,703 | 9,054 | 8,916 | 48,097 | 41,836 | 34,780 |
Earnings Per Share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | $0.48 | $0.40 | $0.28 | $0.30 | $0.38 | $0.36 | $0.28 | $0.28 | $1.47 | $1.31 | $1.15 |
Diluted | $0.47 | $0.39 | $0.27 | $0.29 | $0.36 | $0.35 | $0.27 | $0.27 | $1.42 | $1.26 | $1.10 |
Weighted-average number of shares used in computing earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | 32,788,489 | 32,907,281 | 32,778,800 | 32,521,481 | 32,297,414 | 32,154,001 | 31,970,881 | 31,445,592 | 32,750,178 | 31,968,386 | 30,264,805 |
Diluted | 33,792,757 | 33,955,445 | 33,899,097 | 33,719,794 | 33,514,446 | 33,283,854 | 33,096,607 | 32,783,855 | 33,842,938 | 33,171,105 | 31,546,144 |
Note: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock compensation expense | 2,360 | 2,967 | 2,860 | 3,645 | 2,087 | 1,871 | 2,715 | 2,743 | 11,832 | 9,416 | 9,462 |
Amortization of intangibles | $1,536 | $1,534 | $1,596 | $1,634 | $1,555 | $1,324 | $1,365 | $1,394 | $6,300 | $5,638 | $4,329 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of reportable segments | 2 |
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 | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues and cost of revenues for Company's outsourcing services and transformation services segments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $124,123 | $122,315 | $116,008 | $116,006 | $117,653 | $112,639 | $108,030 | $104,608 | $478,452 | $442,930 | $360,541 |
Cost of revenues (exclusive of depreciation and amortization) | ' | ' | ' | ' | ' | ' | ' | ' | 290,942 | 271,876 | 219,987 |
Gross profit | 52,073 | 50,266 | 42,078 | 43,093 | 47,144 | 43,989 | 41,985 | 37,936 | 187,510 | 171,054 | 140,554 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 120,090 | 113,822 | 99,236 |
Other income/(expense) | ' | ' | ' | ' | ' | ' | ' | ' | -2,443 | -512 | 5,330 |
Income tax provision | ' | ' | ' | ' | ' | ' | ' | ' | 16,880 | 14,884 | 11,868 |
Net income | 15,859 | 13,240 | 9,236 | 9,762 | 12,163 | 11,703 | 9,054 | 8,916 | 48,097 | 41,836 | 34,780 |
Outsourcing Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues and cost of revenues for Company's outsourcing services and transformation services segments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 394,987 | 366,767 | 294,361 |
Cost of revenues (exclusive of depreciation and amortization) | ' | ' | ' | ' | ' | ' | ' | ' | 232,286 | 222,860 | 178,301 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 162,701 | 143,907 | 116,060 |
Transformation Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues and cost of revenues for Company's outsourcing services and transformation services segments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 83,465 | 76,163 | 66,180 |
Cost of revenues (exclusive of depreciation and amortization) | ' | ' | ' | ' | ' | ' | ' | ' | 58,656 | 49,016 | 41,686 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | $24,809 | $27,147 | $24,494 |
Business_Combinations_Goodwill2
Business Combinations, Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 12, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Landacorp Inc. [Member] | Landacorp Inc. [Member] | Customer Relationships [Member] | Leasehold Benefits [Member] | Developed Technology [Member] | Non-compete Agreements [Member] | Trade names and trademarks [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 | $1,536 | $1,534 | $1,596 | $1,634 | $1,555 | $1,324 | $1,365 | $1,394 | $6,300 | $5,638 | $4,329 | ' | ' | ' | ' | ' | ' | ' |
Weighted average life of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '8 years 9 months 18 days | '6 years 9 months 18 days | '8 years | '1 year 6 months | '3 years 6 months |
Indefinite life trade names and trademarks | $900 | ' | ' | ' | $900 | ' | ' | ' | $900 | $900 | ' | ' | ' | ' | ' | ' | ' | ' |
Business_Combinations_Goodwill3
Business Combinations, Goodwill and Intangible Assets - Summary of Total Purchase Price of Acquisitions (Detail) (USD $) | Dec. 31, 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 $) | Dec. 31, 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 $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 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 | -3,291 | -1,037 |
Allocation on sale of a business unit | -250 | ' |
Ending Balance | 107,407 | 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 | -3,291 | -1,037 |
Allocation on sale of a business unit | -250 | ' |
Ending Balance | 90,622 | 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 $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' |
Net loss recognized from the sale of business unit | $190 |
Business_Combinations_Goodwill7
Business Combinations, Goodwill and Intangible Assets - Summary of Company's Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $52,251 | $52,734 |
Accumulated Amortization | -18,136 | -12,023 |
Net Carrying Amount | 34,115 | 40,711 |
Customer Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 38,614 | 38,728 |
Accumulated Amortization | -12,201 | -7,832 |
Net Carrying Amount | 26,413 | 30,896 |
Leasehold Benefits [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 2,986 | 3,355 |
Accumulated Amortization | -1,455 | -1,213 |
Net Carrying Amount | 1,531 | 2,142 |
Developed Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 6,013 | 6,013 |
Accumulated Amortization | -1,458 | -683 |
Net Carrying Amount | 4,555 | 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 |
Net Carrying Amount | ' | ' |
Trade Names and Trademarks [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 3,322 | 3,322 |
Accumulated Amortization | -1,706 | -979 |
Net Carrying Amount | $1,616 | $2,343 |
Business_Combinations_Goodwill8
Business Combinations, Goodwill and Intangible Assets - Estimated Amortization of Intangible Assets (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' |
2014 | $5,793 |
2015 | 5,543 |
2016 | 5,541 |
2017 | 5,509 |
2018 | $5,414 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Detail) (Fair Value, Measurements, Recurring [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Money market and mutual funds | $116,662 | $64,766 |
Derivative financial instruments | 957 | 1,730 |
Total | 117,619 | 66,496 |
Liabilities | ' | ' |
Derivative financial instruments | 13,295 | 9,861 |
Total | 13,295 | 9,861 |
Level 1 [Member] | ' | ' |
Assets | ' | ' |
Money market and mutual funds | 116,662 | 64,766 |
Derivative financial instruments | ' | ' |
Total | 116,662 | 64,766 |
Liabilities | ' | ' |
Derivative financial instruments | ' | ' |
Total | ' | ' |
Level 2 [Member] | ' | ' |
Assets | ' | ' |
Money market and mutual funds | ' | ' |
Derivative financial instruments | 957 | 1,730 |
Total | 957 | 1,730 |
Liabilities | ' | ' |
Derivative financial instruments | 13,295 | 9,861 |
Total | $13,295 | $9,861 |
Derivatives_and_Hedge_Accounti2
Derivatives and Hedge Accounting - Additional Information (Detail) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
USD ($) | 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 | ' | ' | $262,085 | £ 10,973 | $221,255 | £ 11,544 |
Net derivative losses which could be reclassified into earnings within the next 12 months | 7,252 | ' | ' | ' | ' | ' |
Period of accumulated other comprehensive loss reclassified into earnings | '12 months | ' | ' | ' | ' | ' |
Maximum outstanding term of cash flow hedges | '45 months | ' | ' | ' | ' | ' |
Gain/(Losses) that reclassified from AOCI into earning for discontinued hedging transactions | $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 $) | Dec. 31, 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 | $437 | $980 |
Derivatives Designated as Hedging Instruments [Member] | Other Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Foreign currency exchange contracts, Asset | 423 | 750 |
Derivatives Designated as Hedging Instruments [Member] | Accrued Expenses and Other Current Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Foreign currency exchange contracts, Liability | 7,689 | 6,249 |
Derivatives Designated as Hedging Instruments [Member] | Other Non Current Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Foreign currency exchange contracts, Liability | 5,606 | 3,458 |
Derivatives not Designated as Hedging Instruments [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Foreign currency exchange contracts, Asset | 97 | ' |
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 $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivatives Designated as Hedging Instruments [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of (Loss)/Gain Recognized in AOCI on Derivative (Effective Portion) | ($9,599) | $708 |
Foreign Exchange Loss [Member] | Derivatives not Designated as Hedging Instruments [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of (Loss)/Gain Recognized in Income on Derivatives | -3,149 | 2,076 |
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) | ($5,141) | ($9,044) |
Fixed_Assets_Components_of_Fix
Fixed Assets - Components of Fixed Assets, Net of Accumulated Depreciation (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Owned Assets: | ' | ' |
Assets, Gross | $102,272 | ' |
Less: Accumulated depreciation and amortization | -69,242 | ' |
Owned Assets, net | 33,030 | ' |
Assets under capital leases: | ' | ' |
Capital Leased Assets, Gross | 4,152 | ' |
Less: Accumulated depreciation and amortization | -2,618 | ' |
Assets under capital leases, net | 1,534 | ' |
Fixed assets, net | 34,564 | 39,356 |
Recasted [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | ' | 101,932 |
Less: Accumulated depreciation and amortization | ' | -65,581 |
Owned Assets, net | ' | 36,351 |
Assets under capital leases: | ' | ' |
Capital Leased Assets, Gross | ' | 5,201 |
Less: Accumulated depreciation and amortization | ' | -2,196 |
Assets under capital leases, net | ' | 3,005 |
Fixed assets, net | ' | 39,356 |
Network equipment, computers and software [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | 63,428 | ' |
Assets under capital leases: | ' | ' |
Capital Leased Assets, Gross | 184 | ' |
Network equipment, computers and software [Member] | Recasted [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | ' | 62,580 |
Assets under capital leases: | ' | ' |
Capital Leased Assets, Gross | ' | 361 |
Buildings [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | 1,287 | ' |
Buildings [Member] | Recasted [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | ' | 1,447 |
Land [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | 842 | ' |
Land [Member] | Recasted [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | ' | 946 |
Leasehold improvements [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | 24,382 | ' |
Assets under capital leases: | ' | ' |
Capital Leased Assets, Gross | 1,955 | ' |
Leasehold improvements [Member] | Recasted [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | ' | 23,919 |
Assets under capital leases: | ' | ' |
Capital Leased Assets, Gross | ' | 2,454 |
Office furniture and equipment [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | 11,111 | ' |
Assets under capital leases: | ' | ' |
Capital Leased Assets, Gross | 1,079 | ' |
Office furniture and equipment [Member] | Recasted [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | ' | 10,695 |
Assets under capital leases: | ' | ' |
Capital Leased Assets, Gross | ' | 1,432 |
Motor vehicles [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | 507 | ' |
Assets under capital leases: | ' | ' |
Capital Leased Assets, Gross | 934 | ' |
Motor vehicles [Member] | Recasted [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | ' | 638 |
Assets under capital leases: | ' | ' |
Capital Leased Assets, Gross | ' | 954 |
Capital work in progress [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | 715 | ' |
Capital work in progress [Member] | Recasted [Member] | ' | ' |
Owned Assets: | ' | ' |
Assets, Gross | ' | $1,707 |
Fixed_Assets_Additional_Inform
Fixed Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property Plant And Equipment [Abstract] | ' | ' | ' |
Depreciation and amortization expense | $18,617 | $19,985 | $18,665 |
Capital_Structure_Additional_I
Capital Structure - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 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 |
Weighted average purchase price per share prior to the vesting date | $29.89 | $25.78 |
Common stock shares purchased | 820,849 | ' |
Common stock aggregate purchase price including commissions | 21,229 | ' |
Common stock average purchase price per share | $25.86 | ' |
Aggregate principal amount of Outstanding common stock | $25,000 | ' |
Employee_Benefit_Plans_Summary
Employee Benefit Plans - Summary of Change in Projected Benefit Obligation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary of change in projected benefit obligation | ' | ' | ' |
Benefit obligation at the beginning of the year | $5,491 | $4,429 | ' |
Service cost | 1,341 | 1,027 | 792 |
Interest cost | 444 | 414 | 302 |
Benefits paid | -466 | -595 | ' |
Actuarial loss | 554 | 361 | ' |
Divestiture | -134 | ' | ' |
Effect of exchange rate changes | -663 | -145 | ' |
Projected benefit obligation at the end of the year | 6,567 | 5,491 | 4,429 |
Unfunded amount-non-current | 3,543 | 2,380 | ' |
Unfunded amount-current | 868 | 910 | ' |
Total accrued liability | 4,411 | 3,290 | ' |
Accumulated benefit obligation | $4,628 | $4,141 | ' |
Employee_Benefit_Plans_Net_Gra
Employee Benefit Plans - Net Gratuity Cost (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation And Retirement Disclosure [Abstract] | ' | ' | ' |
Service cost | $1,341 | $1,027 | $792 |
Interest cost | 444 | 414 | 302 |
Expected return on plan assets | -164 | -72 | -24 |
Actuarial loss | 139 | 125 | 103 |
Net gratuity cost | $1,760 | $1,494 | $1,173 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation And Retirement Disclosure [Abstract] | ' | ' | ' | ' |
Accumulated other comprehensive loss, expected to be recognized over the next fiscal year | $148 | ' | ' | ' |
Percentage of expected return on the Gratuity Plans | ' | 9.50% | ' | ' |
Percentage of discretionary contributions, Maximum | 3.00% | ' | 3.00% | 3.00% |
Company's contribution to the 401(k) Plan | $1,147 | ' | $942 | $662 |
Employee_Benefit_Plans_Summary1
Employee Benefit Plans - Summary of Components Accumulated Other Comprehensive Loss (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plan Accumulated Other Comprehensive Income Loss After Tax [Abstract] | ' | ' |
Net actuarial loss | $917 | $694 |
Net prior service cost | 11 | 11 |
Accumulated other comprehensive loss, net of tax | $928 | $705 |
Employee_Benefit_Plans_Summary2
Employee Benefit Plans - Summary of Weighted Average Assumptions (Detail) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Weighted Average Assumptions Used In Calculating Benefit Obligation [Abstract] | ' | ' | ' |
Discount rate | 8.30% | 8.50% | 9.10% |
Rate of increase in compensation levels | 8.20% | 8.20% | 8.40% |
Employee_Benefit_Plans_Summary3
Employee Benefit Plans - Summary of Expected Benefit Payments (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Defined Benefit Plan Estimated Future Benefit Payments [Abstract] | ' |
2014 | $1,803 |
2015 | 1,662 |
2016 | 1,517 |
2017 | 1,359 |
2018 | 1,178 |
2019 to 2023 | $3,035 |
Employee_Benefit_Plans_Change_
Employee Benefit Plans - Change in Plan Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation And Retirement Disclosure [Abstract] | ' | ' |
Plan assets | $2,201 | $1,015 |
Employer contribution | ' | 1,089 |
Actual return | 206 | 72 |
Actuarial gain | ' | 92 |
Effect of exchange rate changes | -251 | -67 |
Plan assets | $2,156 | $2,201 |
Employee_Benefit_Plans_Contrib
Employee Benefit Plans - Contribution to Various Defined Contribution Plans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation And Retirement Disclosure [Abstract] | ' | ' | ' |
Contribution to various defined contribution plans | $5,448 | $5,626 | $5,011 |
Leases_Future_Minimum_Lease_Pa
Leases - Future Minimum Lease Payments under Capital Leases (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Leases [Abstract] | ' | ' |
2014 | $1,305 | ' |
2015 | 1,031 | ' |
2016 | 410 | ' |
2017 | 33 | ' |
Total minimum lease payments | 2,779 | ' |
Less: amount representing interest | 289 | ' |
Present value of minimum lease payments | 2,490 | ' |
Less: current portion | 1,119 | 1,685 |
Long term capital lease obligation | $1,371 | $2,679 |
Leases_Future_Minimum_Lease_Pa1
Leases - Future Minimum Lease Payments under Non-Cancelable Operating Lease Agreements Expiring after December 31, 2013 (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | ' |
2014 | $8,389 |
2015 | 7,074 |
2016 | 3,288 |
2017 | 894 |
2018 | 693 |
2019 and thereafter | 485 |
Total operating lease payments | $20,823 |
Leases_Additional_Information_
Leases - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Leases [Abstract] | ' | ' | ' |
Rent expense under both cancelable and non-cancelable operating leases | $17,384 | $17,860 | $14,599 |
Deferred rent | $5,394 | $4,893 | ' |
Income_Taxes_Summary_of_Compon
Income Taxes - Summary of Components of Income Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Domestic | $24,056 | $22,046 | $6,012 |
Foreign | 40,921 | 34,674 | 40,636 |
Income before income taxes | $64,977 | $56,720 | $46,648 |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income Tax Provision/(Benefit) Relating to Continuing Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current provision: | ' | ' | ' |
Domestic | $3,466 | $4,519 | $1,433 |
Foreign | 10,930 | 5,638 | 12,140 |
Total | 14,396 | 10,157 | 13,573 |
Deferred provision/(benefit): | ' | ' | ' |
Domestic | 4,183 | 4,371 | 1,999 |
Foreign | -1,699 | 356 | -3,704 |
Total | 2,484 | 4,727 | -1,705 |
Income tax provision | $16,880 | $14,884 | $11,868 |
Income_Taxes_Summary_of_Effect
Income Taxes - Summary of Effective Income Tax Rate Differs from Amount Computed by Applying U.S. Federal Statutory Income Tax Rate to Income Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Expected tax provision | $22,742 | $19,852 | $16,327 |
Change in valuation allowance | ' | -254 | -1,702 |
Impact of tax holiday | -5,531 | -3,219 | -3,234 |
Foreign tax rate differential | -1,412 | -1,071 | -1,033 |
Deferred tax (benefit)/provision | -433 | 356 | -694 |
Unrecognized tax benefits and interest | 2,399 | -2,083 | 877 |
State taxes, net of Federal taxes | 601 | 620 | 841 |
Non-deductible expenses | 310 | 591 | 427 |
Prior year tax benefit | -875 | ' | ' |
Other | -921 | 92 | 59 |
Income tax provision | $16,880 | $14,884 | $11,868 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Corporate tax exemption expiration date | ' | 1-Apr-11 | ' | ' |
Income tax holiday on the Philippines 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 | ' | ' |
Tax exemption on export profits, expiration year | ' | '2017 | ' | ' |
Effect of diluted earnings per share, tax holiday | ' | $0.16 | $0.10 | $0.10 |
Valuation allowance | ' | $665 | $665 | ' |
Federal and state net operating losses | ' | 26,934 | ' | ' |
Operating loss carry forwards expiration year | ' | '2032 | ' | ' |
Deferred income taxes related to the MAT | ' | 3,332 | 2,932 | ' |
Deferred income taxes related to the MAT expiration year | ' | '2024 | ' | ' |
Deferred income taxes provided for Company's share of undistributed net earnings of foreign operations | ' | 0 | 0 | ' |
Undistributed net earnings of foreign operations | ' | 185,596 | 153,906 | ' |
Unrecognized tax benefits | ' | 4,913 | 3,019 | ' |
Recognized interest and penalties | ' | $283 | ' | ' |
Income_Taxes_Summary_of_Compon1
Income Taxes - Summary of Components of Deferred Tax Balances (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Tax credit carry forward | $3,332 | $2,932 |
Depreciation and amortization | 5,745 | 5,955 |
Share-based compensation | 5,881 | 5,361 |
Accrued employee costs and other expenses | 3,252 | 2,863 |
Net operating loss carry forwards | 10,474 | 13,553 |
Unrealized exchange loss | 3,336 | 3,204 |
Deferred rent | 984 | 851 |
Allowance for doubtful accounts | 15 | 59 |
Others | 28 | 957 |
Deferred tax assets, gross | 33,047 | 35,735 |
Valuation allowance | -665 | -665 |
Deferred tax assets | 32,382 | 35,070 |
Deferred tax liabilities: | ' | ' |
Unrealized exchange gain | ' | 70 |
Intangible assets | 13,170 | 13,417 |
Deferred tax liabilities: | 13,170 | 13,487 |
Net deferred tax assets | $19,212 | $21,583 |
Income_Taxes_Summary_of_Activi
Income Taxes - Summary of Activity Related to Gross Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ' |
Balance as of January 1, 2013 | $3,019 |
Increases related to prior year tax positions | 1,759 |
Decreases related to prior year tax positions | ' |
Increases related to current year tax positions | 357 |
Decreases related to current year tax positions | ' |
Effect of exchange rate changes | -222 |
Balance as of December 31, 2013 | $4,913 |
Stock_Based_Compensation_Addit
Stock Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expiring period of equity options to employees | '10 years | ' | ' |
Rate of incremental vesting, first year | 10.00% | ' | ' |
Rate of incremental vesting, second year | 20.00% | ' | ' |
Rate of incremental vesting in third year | 30.00% | ' | ' |
Rate of incremental vesting in fourth year | 40.00% | ' | ' |
Exercise of vested options | '90 days | ' | ' |
Expected dividend yield | $0 | ' | ' |
Unrecognized compensation cost for unvested options | 2,786 | ' | ' |
Expected weighted average period | '1 year 9 months | ' | ' |
Weighted average fair value of options granted | $10.07 | $9.43 | $8.16 |
Total fair value of options vested in period | 3,061 | 3,000 | 3,099 |
Aggregate intrinsic value of options exercised | 8,960 | 12,020 | 4,180 |
Unrecognized compensation cost for unvested Restricted Stock Units | 19,670 | ' | ' |
Expected expensed over a weighted average period | '2 years 5 months 1 day | ' | ' |
Weighted-average fair value of restricted stock units | $29.37 | $25.07 | $20.84 |
Total grant date fair value of restricted stock and restricted stock units vested | $9,126 | $7,010 | $5,456 |
Stock Options [Member] | Employees and Directors [Member] | Subsequent Event [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock options granted to employees and directors subsequent to December 31, 2013 | 9,800 | ' | ' |
Restricted Stock Units [Member] | Employees and Directors [Member] | Subsequent Event [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock options granted to employees and directors subsequent to December 31, 2013 | 500,000 | ' | ' |
2006 Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Reserve of common stock for equity awards | 3,399,384 | ' | ' |
Increase in number of shares of common stock issuable | 4,000,000 | ' | ' |
Total number of shares reserved | 7,729,238 | ' | ' |
2003 Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Reserve of common stock for equity awards | 329,854 | ' | ' |
Stock_Based_Compensation_Costs
Stock Based Compensation - Costs Related to Company Stock-Based Compensation Plan (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | $2,360 | $2,967 | $2,860 | $3,645 | $2,087 | $1,871 | $2,715 | $2,743 | $11,832 | $9,416 | $9,462 |
Cost of Revenue [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | ' | ' | ' | 2,413 | 1,893 | 1,635 |
General and Administrative Expenses [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | ' | ' | ' | 5,077 | 4,551 | 4,589 |
Selling and Marketing Expenses [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | ' | ' | ' | $4,342 | $2,972 | $3,238 |
Stock_Based_Compensation_Costs1
Stock Based Compensation - Costs Related to Company Stock-Based Compensation Plan (Parenthetical) (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Additional compensation expense | $854 |
Stock_Based_Compensation_Fair_
Stock Based Compensation - Fair Value of Each Stock Option Granted to Employees (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected life (years) | '5 years 6 months | '5 years 4 months 17 days | '5 years 6 months 29 days |
Risk free interest rate | 0.87% | 0.97% | 2.16% |
Volatility | 40.00% | 40.00% | 40.00% |
Stock_Based_Compensation_Share
Stock Based Compensation - Share Based Compensation Stock Options Activity (Detail) (Stock Options [Member], USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Options, Outstanding, Beginning Balance | 2,454,634 | 3,030,128 | 3,075,617 |
Number of Options, Granted | 14,301 | 416,129 | 360,867 |
Number of Options, Exercised | -485,141 | -793,053 | -342,166 |
Number of Options, Forfeited | -27,279 | -198,570 | -64,190 |
Number of Options, Outstanding, Ending Balance | 1,956,515 | 2,454,634 | 3,030,128 |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $15.30 | $13.22 | $12.17 |
Number of Options, Vested and exercisable at December 31, 2013 | 1,410,736 | ' | ' |
Weighted-Average Exercise Price, Granted | $26.76 | $25.36 | $20.41 |
Available for grant at December 31, 2013 | 1,824,149 | ' | ' |
Weighted-Average Exercise Price, Exercised | $11.32 | $12.11 | $11.97 |
Weighted-Average Exercise Price, Forfeited | $24.13 | $17.35 | $10.06 |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $16.25 | $15.30 | $13.22 |
Options vested and exercisable, Weighted Average Exercise Price | $13.90 | ' | ' |
Aggregate Intrinsic Value Outstanding, Ending Balance | $22,255 | ' | ' |
Aggregate Intrinsic Value, Vested and exercisable at December 31, 2012 | $19,359 | ' | ' |
Weighted-Average Remaining Contractual Life (Years), Outstanding | '5 years 6 months 18 days | ' | ' |
Weighted-Average Remaining Contractual Life (Years), Vested and exercisable at December 31, 2013 | '4 years 10 months 21 days | ' | ' |
Stock_Based_Compensation_Compa
Stock Based Compensation - Company's Stock Options Outstanding and Stock Options Vested and Exercisable (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Options Outstanding, Shares | 1,956,515 |
Options Outstanding, Weighted-Average Exercise Price | $16.25 |
Options Vested and Exercisable, Shares | 1,410,736 |
Options Vested and Exercisable, Weighted-Average Exercise Price | $13.90 |
Range one [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, lower range limit | $8 |
Range of Exercise Prices, upper range limit | $15 |
Options Outstanding, Shares | 854,069 |
Options Outstanding, Weighted-Average Exercise Price | $10 |
Options Vested and Exercisable, Shares | 854,069 |
Options Vested and Exercisable, Weighted-Average Exercise Price | $10 |
Range two [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, lower range limit | $15.01 |
Range of Exercise Prices, upper range limit | $24 |
Options Outstanding, Shares | 752,246 |
Options Outstanding, Weighted-Average Exercise Price | $19.15 |
Options Vested and Exercisable, Shares | 496,238 |
Options Vested and Exercisable, Weighted-Average Exercise Price | $19.22 |
Range three [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, lower range limit | $24.01 |
Range of Exercise Prices, upper range limit | $36.15 |
Options Outstanding, Shares | 350,200 |
Options Outstanding, Weighted-Average Exercise Price | $25.23 |
Options Vested and Exercisable, Shares | 60,429 |
Options Vested and Exercisable, Weighted-Average Exercise Price | $25.28 |
Stock_Based_Compensation_Restr
Stock Based Compensation - Restricted Stock and Restricted Stock Unit Activity (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number, Outstanding, Beginning Balance | 5,207 | 63,834 | 235,885 |
Number, Vested | -4,807 | -55,726 | -152,962 |
Number, Forfeited | -400 | -2,901 | -19,089 |
Number, Outstanding, Ending Balance | ' | 5,207 | 63,834 |
Weighted-Average Intrinsic Value, Outstanding, Beginning Balance | $17.58 | $18.41 | $23.47 |
Weighted-Average Intrinsic Value, Vested | $17.56 | $18.26 | $19.02 |
Weighted-Average Intrinsic Value, Forfeited | $17.72 | $23.82 | $19.70 |
Weighted-Average Intrinsic Value, Outstanding, Ending Balance | ' | $17.58 | $18.41 |
Restricted Stock Units [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number, Outstanding, Beginning Balance | 1,025,911 | 939,659 | 624,815 |
Number, Granted | 522,130 | 389,050 | 460,972 |
Number, Vested | -300,316 | -198,842 | -108,670 |
Number, Forfeited | -103,283 | -103,956 | -37,458 |
Number, Outstanding, Ending Balance | 1,144,442 | 1,025,911 | 939,659 |
Weighted-Average Intrinsic Value, Outstanding, Beginning Balance | $21.36 | $19.40 | $18.13 |
Weighted-Average Intrinsic Value, Granted | $29.37 | $25.07 | $20.84 |
Weighted-Average Intrinsic Value, Vested | $20.35 | $19.27 | $18.39 |
Weighted-Average Intrinsic Value, Forfeited | $25.04 | $21.41 | $18.89 |
Weighted-Average Intrinsic Value, Outstanding, Ending Balance | $24.95 | $21.36 | $19.40 |
Stock_Based_Compensation_Restr1
Stock Based Compensation - Restricted Stock and Restricted Stock Unit Activity (Parenthetical) (Detail) (Restricted Stock Units [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
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 | 20,000 | 24,000 | 24,000 |
Restricted stock units vested | 112,000 | 124,000 | 120,000 |
Geographical_Information_Reven
Geographical Information - Revenues Based on Geographical Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $124,123 | $122,315 | $116,008 | $116,006 | $117,653 | $112,639 | $108,030 | $104,608 | $478,452 | $442,930 | $360,541 |
United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 353,274 | 320,246 | 258,807 |
United Kingdom [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 92,601 | 89,483 | 79,419 |
Rest of World [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $32,577 | $33,201 | $22,315 |
Geographical_Information_Fixed
Geographical Information - Fixed Assets, Net Based on Geographical Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fixed assets, net | ' | ' |
Total Fixed assets | $34,564 | $39,356 |
India [Member] | ' | ' |
Fixed assets, net | ' | ' |
Total Fixed assets | 21,433 | 29,539 |
United States [Member] | ' | ' |
Fixed assets, net | ' | ' |
Total Fixed assets | 3,981 | 4,418 |
Philippines [Member] | ' | ' |
Fixed assets, net | ' | ' |
Total Fixed assets | 8,409 | 4,363 |
Rest of World [Member] | ' | ' |
Fixed assets, net | ' | ' |
Total Fixed assets | $741 | $1,036 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments And Contingencies Disclosure [Abstract] | ' | ' |
Purchase commitments, net of advances | $12,239 | ' |
Export-Oriented units established percentage | 100.00% | ' |
Transfer pricing issues starting period | '2003 | ' |
Transfer pricing issues ending period | '2009 | ' |
Permanent establishment issues starting period | '2003 | ' |
Permanent establishment issues ending period | '2007 | ' |
Aggregate disputed amount | 14,742 | 18,624 |
Deposited or Bank guarantees provided | 13,797 | 14,715 |
Amounts paid as deposits in respect of contingencies | 11,653 | 12,307 |
Bank guarantees issued | $2,144 | $2,408 |