Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 26, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | EXLS | |
Entity Registrant Name | ExlService Holdings, Inc. | |
Entity Central Index Key | 1,297,989 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 33,083,617 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 90,656 | $ 176,499 |
Short-term investments | 93,184 | 11,577 |
Restricted cash | 2,547 | 1,395 |
Accounts receivable, net | 98,272 | 80,244 |
Prepaid expenses | 5,501 | 5,783 |
Deferred tax assets, net | 4,738 | 4,455 |
Advance income tax, net | 4,169 | 9,905 |
Other current assets | 13,217 | 12,533 |
Total current assets | 312,284 | 302,391 |
Fixed assets, net | 47,071 | 45,369 |
Restricted cash | 3,289 | 3,258 |
Deferred tax assets, net | 7,996 | 11,985 |
Intangible assets, net | 55,462 | 46,979 |
Goodwill | 171,753 | 139,599 |
Other assets | 22,083 | 23,975 |
Total assets | 619,938 | 573,556 |
Current liabilities: | ||
Accounts payable | 3,637 | 4,663 |
Short-term borrowings | 10,000 | |
Deferred revenue | 8,110 | 7,690 |
Accrued employee cost | 36,788 | 37,606 |
Accrued expenses and other current liabilities | 34,239 | 40,206 |
Current portion of capital lease obligations | 481 | 803 |
Total current liabilities | 93,255 | 90,968 |
Long term borrowings | 60,000 | 50,000 |
Capital lease obligations, less current portion | 304 | 560 |
Non-current liabilities | 18,971 | 12,870 |
Total liabilities | $ 172,530 | $ 154,398 |
Commitments and contingencies (See Note 16) | ||
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, 34,749,446 shares issued and 33,083,540 shares outstanding as of September 30, 2015 and 34,203,352 shares issued and 32,905,467 shares outstanding as of December 31, 2014 | $ 35 | $ 34 |
Additional paid-in-capital | 248,614 | 233,173 |
Retained earnings | 306,227 | 269,424 |
Accumulated other comprehensive loss | (66,250) | (55,509) |
Total stockholders' equity including shares held in treasury | 488,626 | 447,122 |
Less: 1,665,906 shares as of September 30, 2015 and 1,297,885 shares as of December 31, 2014, held in treasury, at cost | (41,218) | (27,964) |
Total stockholders' equity | 447,408 | 419,158 |
Total liabilities and stockholders' equity | $ 619,938 | $ 573,556 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 15,000,000 | 15,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 34,749,446 | 34,203,352 |
Common stock, shares outstanding | 33,083,540 | 32,905,467 |
Treasury stock, shares | 1,665,906 | 1,297,885 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenues, net | $ 163,503 | $ 122,457 | $ 462,634 | $ 363,992 |
Cost of revenues (exclusive of depreciation and amortization) | 103,198 | 84,983 | 296,801 | 241,164 |
Gross profit | 60,305 | 37,474 | 165,833 | 122,828 |
Operating expenses: | ||||
General and administrative expenses | 18,817 | 15,952 | 57,428 | 46,992 |
Selling and marketing expenses | 12,682 | 9,117 | 35,769 | 28,812 |
Depreciation and amortization | 8,057 | 7,014 | 23,171 | 20,049 |
Total operating expenses | 39,556 | 32,083 | 116,368 | 95,853 |
Income from operations | 20,749 | 5,391 | 49,465 | 26,975 |
Other income/(expense): | ||||
Foreign exchange gain / (loss) | 191 | 642 | 2,347 | (328) |
Interest and other income, net | 1,787 | 1,044 | 4,300 | 2,861 |
Income before income taxes | 22,727 | 7,077 | 56,112 | 29,508 |
Income tax expense | 7,565 | 1,002 | 19,309 | 4,523 |
Net income | $ 15,162 | $ 6,075 | $ 36,803 | $ 24,985 |
Earnings per share: | ||||
Basic | $ 0.46 | $ 0.18 | $ 1.10 | $ 0.76 |
Diluted | $ 0.44 | $ 0.18 | $ 1.08 | $ 0.74 |
Weighted-average number of shares used in computing earnings per share: | ||||
Basic | 33,307,312 | 32,890,475 | 33,320,477 | 32,743,384 |
Diluted | 34,180,635 | 33,676,665 | 34,147,120 | 33,594,304 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income/(Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 15,162 | $ 6,075 | $ 36,803 | $ 24,985 | |
Other comprehensive income/(loss): | |||||
Unrealized gain/(loss) on effective cash flow hedges, net of taxes ($822), ($758), ($727) and $1,428, respectively | (2,704) | (2,844) | (2,014) | 4,522 | |
Foreign currency translation adjustment | (7,092) | (5,830) | (9,926) | (1,347) | |
Retirement benefits, net of taxes $71, $7, $81 and $7 respectively | 172 | (376) | 501 | (47) | |
Reclassification adjustments | |||||
Realized loss on cash flow hedges, net of taxes $175, $312, $393 and $1,293 | [1] | 255 | 1,106 | 570 | 4,584 |
Retirement benefits, net of taxes $15, $6, $31 and $21, respectively | [2] | 36 | 23 | 128 | 78 |
Total other comprehensive (loss) / income | (9,333) | (7,921) | (10,741) | 7,790 | |
Total comprehensive income / (loss) | $ 5,829 | $ (1,846) | $ 26,062 | $ 32,775 | |
[1] | These are reclassified to net income and are included in the foreign exchange income/(loss) in the unaudited consolidated statements of income. See Note 7 to our unaudited consolidated financial statements contained herein. | ||||
[2] | These are reclassified to net income and are included in the computation of net periodic pension costs in the unaudited consolidated statements of income. See Note 11 to our unaudited consolidated financial statements contained herein. |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income/(Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Taxes on unrealized gain/(loss) on effective cash flow hedges | $ (822) | $ (758) | $ (727) | $ 1,428 |
Taxes on retirement benefits | 71 | 7 | 81 | 7 |
Taxes on reclassification adjustments of realized loss on cash flow hedges | 175 | 312 | 393 | 1,293 |
Taxes on reclassification adjustments of retirement benefits | $ 15 | $ 6 | $ 31 | $ 21 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 36,803 | $ 24,985 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 23,171 | 20,049 |
Stock-based compensation expense | 12,280 | 8,518 |
Unrealized foreign exchange loss/(gain) | (2,850) | 917 |
Unrealized gain on short term investments | (2,179) | |
Deferred income taxes | 3,596 | 388 |
Others, net | (249) | (35) |
Change in operating assets and liabilities: | ||
Restricted cash | (1,313) | (368) |
Accounts receivable | (14,647) | 839 |
Prepaid expenses and other current assets | 977 | (1,891) |
Accounts payable | (1,602) | (790) |
Deferred revenue | (915) | (599) |
Accrued employee cost | 460 | (2,598) |
Accrued expenses and other liabilities | (3,973) | 2,849 |
Advance income tax, net | 5,751 | (5,504) |
Other assets | (760) | (2,455) |
Net cash provided by operating activities | 54,550 | 44,305 |
Cash flows from investing activities: | ||
Purchase of fixed assets | (21,127) | (23,762) |
Business acquisition (net of cash acquired) | (44,270) | (6,244) |
Purchase of short-term investments | (109,162) | (7,601) |
Proceeds from redemption of short-term investments | 28,640 | 6,986 |
Net cash used for investing activities | (145,919) | (30,621) |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | (559) | (807) |
Proceeds from borrowings | 30,000 | |
Repayments of borrowings | (10,000) | |
Payment of debt issuance costs | (74) | |
Acquisition of treasury stock | (13,015) | (3,322) |
Proceeds from exercise of stock options | 3,162 | 4,970 |
Net cash provided by financing activities | 9,514 | 841 |
Effect of exchange rate changes on cash and cash equivalents | (3,988) | (1,162) |
Net (decrease)/increase in cash and cash equivalents | (85,843) | 13,363 |
Cash and cash equivalents, beginning of period | 176,499 | 148,065 |
Cash and cash equivalents, end of period | $ 90,656 | $ 161,428 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [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 that integrate operations management with analytics and business transformation to deliver actionable business insights and long-term business impact. The Company’s clients are located principally in the U.S. and the U.K. Basis of Presentation The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for annual financial statements and therefore should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. The unaudited interim consolidated financial statements reflect all adjustments (of a normal and recurring nature) that management considers necessary for a fair presentation of such statements for the interim periods presented. The unaudited consolidated statements of income for the interim periods presented are not necessarily indicative of the results for the full year or for any subsequent period. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The accompanying unaudited consolidated financial statements include the financial statements of ExlService Holdings and all of its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the unaudited consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the unaudited consolidated statements of income during the reporting period. 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. In accordance with its policy, the Company reviews the estimated useful lives of its fixed assets on an ongoing basis. During the three months ended March 31, 2015, the review indicated that the actual lives of certain fixed assets were longer than the estimated useful lives used for depreciation purposes in the Company’s financial statements. As a result, effective January 1, 2015, the Company changed its estimates of the useful lives of its certain fixed assets to better reflect the estimated periods during which these assets will remain in service. The effect of change in estimated useful life of assets reduced depreciation expense by $468 and $1,403, increased net income by $281 and $842 and increased basic and diluted earnings per share by $0.01 and $0.02, respectively during the three months and nine months ended September 30, 2015. Revenue Recognition As part of reimbursing the Travelers Indemnity Company (“Travelers”) for certain of their transition related expenses (the “disentanglement costs”), the Company recognized $9,626 and $17,815 of such reimbursements as a reduction of our revenues during the three months and nine months ended September 30, 2014 respectively, in accordance with Accounting Standards Codification (“ASC”) topic 605-50-45, “Revenue Recognition (“ASC 605-50-45”).” The Company did not incur any reimbursements of disentanglement costs during the three months and nine months ended September 30, 2015 and also does not anticipate incurring any additional reimbursements of disentanglement costs related to Travelers going forward. Revenue from analytical services including modeling, targeting and designing of campaigns and mail marketing including email marketing and other digital solutions is typically recognized on delivery of such campaigns. In respect of arrangements involving sub-contracting of part or whole of the assigned work, the Company evaluates revenue to be recognized under ASC 605-45 “Revenue recognition – Principal agent considerations”. Investments The Company’s investments consist primarily of time deposits and mutual funds and are in accordance with the Company’s risk management policies. Time deposits with financial institutions are valued at cost and approximate fair value. Interest earned on such investments is included in interest and other 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. The mutual fund investments are in debt and money market funds which invest in instruments of various maturities in India. The Company accounts for these investments in accordance with the fair value option under ASC topic 825-10 (“ASC 825-10”) and change in fair value is included in interest and other income. The fair value represents original cost (on the acquisition date) and the net asset value (“NAV”) as quoted, at each reporting period. Gain or loss on the disposal of these investments is calculated using the weighted average cost of the investments sold or disposed and is included in interest and other income. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following: September 30, December 31, Accrued expenses $ 25,232 $ 24,451 Derivative instruments 1,745 2,385 Client liability account 2,546 9,241 Other current liabilities 4,716 4,129 Accrued expenses and other current liabilities $ 34,239 $ 40,206 Non-current liabilities Non-current liabilities consist of the following: September 30, December 31, Derivative instruments $ 1,893 $ 576 Unrecognized tax benefits 4,811 2,878 Deferred rent 6,277 5,977 Retirement benefits 1,477 1,544 Other non-current liabilities 4,513 1,895 Non-current liabilities $ 18,971 $ 12,870 Interest and other income Interest and other income (expense), net consists of the following: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Interest and dividend income* $ 2,085 $ 920 $ 4,997 $ 2,709 Interest expense (340 ) (52 ) (983 ) (240 ) Others, net 42 176 286 392 Other income, net $ 1,787 $ 1,044 $ 4,300 $ 2,861 * Includes unrealized gain of $1,419 and $2,179 and realized gain of $320 and $335, respectively for the three months and nine months ending September 30, 2015 on investments carried at fair value. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). Earlier the new standard was effective for reporting periods beginning after December 15, 2016. However, in April 2015, FASB deferred the effective date of the new standard. With this deferral, the new standard is effective for reporting periods beginning after December 15, 2017 and early adoption is not permitted. The comprehensive new standard will supersede existing revenue recognition guidance and require revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions of the Company. ASU 2014-09 is effective for the Company in the first quarter of fiscal 2018 using either one of two methods: (i) retrospectively to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. The Company is currently evaluating the impact of adoption and the implementation approach to be used. In April 2015, FASB issued ASU No. 2015-05, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”). The amendments add guidance to Subtopic 350-40, Intangibles – Goodwill and Other – Internal-Use Software, which will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The amendments will be effective for fiscal years beginning after December 15, 2015. The Company is currently evaluating the method of adoption and impact this standard will have on its consolidated financial statements and related disclosures. In April 2015, FASB issued ASU No. 2015-03, “Interest—Imputation of Interest” (“ASU 2015-03”), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance of debt issuance costs are not affected by the amendments in that update. The standard will be effective for the Company beginning in the first quarter of fiscal year 2016 and requires the Company to apply the new guidance on a retrospective basis on adoption. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In May 2015, FASB issued ASU No. 2015-08, “Business Combinations (Topic 805): Pushdown Accounting—Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115” (“ASU 2015-08”). The amendments in ASU 2015-08 amend various SEC paragraphs included in FASB’s Accounting Standards Codification to reflect the issuance of Staff Accounting Bulletin No. 115 (“SAB 115”). SAB 115 rescinds portions of the interpretive guidance included in the SEC’s Staff Accounting Bulletins series and brings existing guidance into conformity with ASU No. 2014-17, “Business Combinations (Topic 805): Pushdown Accounting,” which provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The adoption of this guidance does not have a material impact on the Company’s consolidated financial statements. In August 2015, FASB issued ASU No. 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements” (“ASU 2015-15”). This ASU indicates that the guidance in ASU 2015-03 did not address presentation or subsequent measurement of debt issuance costs related to line of credit arrangements. Given the absence of authoritative guidance within ASU 2015-03, the SEC staff has indicated that they would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the costs ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. The Company does not expect the adoption of ASU 2015-15 to have any effect on the Company’s financial position or results of operations. In September 2015, FASB issued ASU No. 2015-16, “Simplifying the Accounting for Measurement Period Adjustments” (“ASU 2015-16”). ASU 2015-16 require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in ASU 2015-16 require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in ASU 2015-16 require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments in ASU 2015-16 are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in ASU 2015-16 should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update with earlier application permitted for financial statements that have not been issued. The Company is currently evaluating the impact of adoption of ASU 2015-16 on its consolidated financial position or results of operations. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share Basic earnings per share is computed by dividing net income to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share is computed using the weighted average number of common shares plus the potentially dilutive effect of common stock equivalents issued and outstanding at the reporting date, using the treasury stock method. Stock options, restricted stock and restricted stock units that are anti-dilutive are excluded from the computation of weighted average shares outstanding. The following table sets forth the computation of basic and diluted earnings per share: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Numerators: Net income $ 15,162 $ 6,075 $ 36,803 $ 24,985 Denominators: Basic weighted average common shares outstanding 33,307,312 32,890,475 33,320,477 32,743,384 Dilutive effect of share based awards 873,323 786,190 826,643 850,920 Diluted weighted average common shares outstanding 34,180,635 33,676,665 34,147,120 33,594,304 Earnings per share: Basic $ 0.46 $ 0.18 $ 1.10 $ 0.76 Diluted $ 0.44 $ 0.18 $ 1.08 $ 0.74 Weighted average common shares considered anti-dilutive in computing diluted earnings per share 61,738 43,950 98,527 143,096 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | 4. Segment Information The Company’s business is divided into two reporting segments: Operations Management (previously called Outsourcing Services) and Analytics and Business Transformation (previously called Transformation Services). The Company changed its reporting segment nomenclature in 2014 in order to reflect the changing nature of its engagements with the clients more accurately. For comparability with the prior periods, the business composition of each segment remains unchanged. 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, 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 reporting segments. Consequently, it is not practical to show assets, capital expenditures, depreciation or amortization by segment. The recent acquisition of RPM Direct, LLC and RPM Data Solutions, LLC (collectively, “RPM”) by the Company’s subsidiary ExlService.com, LLC (“ExlService.com”) is classified within the Analytics and Business Transformation segment. Revenues and cost of revenues for each of the three months ended September 30, 2015 and 2014 for the Company’s Operations Management and Analytics and Business Transformation segments, respectively, are as follows: Three months ended September 30, 2015 Three months ended September 30, 2014 Operations Analytics and Total Operations Analytics and Total Revenues, net $ 113,977 $ 49,526 $ 163,503 $ 91,155 $ 31,302 $ 122,457 Cost of revenues (exclusive of depreciation and amortization) 72,032 31,166 103,198 62,870 22,113 84,983 Gross profit $ 41,945 $ 18,360 $ 60,305 $ 28,285 $ 9,189 $ 37,474 Operating expenses 39,556 32,083 Other income/(expense) 1,978 1,686 Income tax expense 7,565 1,002 Net income $ 15,162 $ 6,075 Revenues and cost of revenues for each of the nine months ended September 30, 2015 and 2014 for the Company’s Operations Management and Analytics and Business Transformation segments, respectively, are as follows: Nine months ended September 30, 2015 Nine months ended September 30, 2014 Operations Analytics and Total Operations Analytics and Total Revenues, net $ 337,244 $ 125,390 $ 462,634 $ 285,560 $ 78,432 $ 363,992 Cost of revenues (exclusive of depreciation and amortization) 214,032 82,769 296,801 184,263 56,901 241,164 Gross profit $ 123,212 $ 42,621 $ 165,833 $ 101,297 $ 21,531 $ 122,828 Operating expenses 116,368 95,853 Other income/(expense) 6,647 2,533 Income tax expense 19,309 4,523 Net income $ 36,803 $ 24,985 |
Business Combinations, Goodwill
Business Combinations, Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combinations, Goodwill and Intangible Assets | 5. Business Combinations, Goodwill and Intangible Assets RPM Direct LLC and RPM Data Solutions, LLC. On March 20, 2015 ExlService.com completed its acquisition of RPM Direct LLC and RPM Data Solutions, LLC (each a “Target Company” and together the “Target Companies” or “RPM”), pursuant to a Securities Purchase Agreement dated February 23, 2015 (the “Purchase Agreement”). Under the terms of the Purchase Agreement ExlService.com acquired all of the issued and outstanding limited liability company membership interests of the Target Companies (the “Securities”) from the security holders of each of the Target Companies. The initial purchase consideration consisted of $46,925 in cash including working capital adjustments of $75, contingent cash consideration of up to $23,000, as described below, and 122,131 restricted shares of common stock of the Company and certain adjustments related to the financial performance of the Target Companies for 2014. There are no adjustments to the purchase price related to the financial performance of 2014. The purchase agreement allows sellers the ability to earn up to an additional $23,000 (the “earn-out”) based on the achievement of certain performance goals by the Target Companies during the 2015 and 2016 calendar years. The earn-out has an estimated fair value of $4,060. As noted above, the Company issued 122,131 restricted shares of common stock with an aggregate fair value of $4,150 to certain key members of the Target Companies, each of whom have accepted employment positions with the Company upon consummation of the combination. The Company also granted 113,302 restricted stock units with an aggregate fair value of $3,850 to certain employees of Target Companies, who have also accepted employment with the Company. The fair value of these grants will be recognized as compensation expense over the vesting period. RPM, now as a subsidiary of the Company, specializes in analyzing large consumer data sets to segment populations, predict response rates, forecast customer lifetime value and design targeted, multi-channel marketing campaigns. RPM has focused on the insurance industry, including P&C, life and health, since its inception in 2001. RPM maintains its own database and supports data on over 250 million consumers and 120 million U.S. households. The quantity and combination of data attributes managed by RPM drives optimal, data-driven decision-making and enables it to build models that analyze prospects individually. RPM employs proprietary predictive analytics and domain-specific pattern recognition algorithms to deliver results through a flexible, on-demand service model. 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 Company made a preliminary allocation of the purchase price to the net tangible and intangible assets based on their fair values as mentioned below: Amount (In thousands) Net tangible assets $ 1,790 Identifiable intangible assets: Customer Relationship 13,260 Trade Names 680 Developed Technology 1,420 Non-Compete Agreements 680 Goodwill 33,155 Total purchase price* $ 50,985 * Includes amount of $4,125 deposited in escrow accounts in connection with the acquisition. The customer relationships from the RPM acquisition are being amortized over the weighted average useful life of 5.7 years. Similarly, trade-names are being amortized over a useful life of 3 years, developed technology are being amortized over a useful life of 5 years and non-compete agreements are being amortized over a useful life of 4.6 years. Under ASC topic 805, “Business Combinations,” the preliminary allocation of the purchase price to the tangible and intangible assets and liabilities acquired may change up to a period of one year from the date of the acquisition. The Company’s purchase accounting as of September 30, 2015 was incomplete and the Company expects to complete its valuation of the tangible assets, intangible assets and liabilities assumed as of the acquisition date during the fourth quarter of 2015. Accordingly, the Company may adjust the amounts recorded as of September 30, 2015 to reflect the final valuations of the assets acquired or liabilities assumed. During the nine months ended September 30, 2015 the Company recognized $303 of acquisition related costs. Such amounts are included in general and administrative expenses in the consolidated statements of income. The Company’s results of operations for the three and nine months ended September 30, 2015 includes revenues of $11,557 and $23,068, respectively for RPM since March 20, 2015, the date on which the acquisition was consummated. It is not practicable to disclose the net earnings since management does not allocate or evaluate operating expenses and income taxes to its domestic entities. The amount of goodwill recognized from the RPM acquisition is deductible for tax purposes. Goodwill The following table sets forth details of the Company’s goodwill balance as of September 30, 2015: Operations Analytics and Total Balance at January 1, 2014 $ 90,622 $ 16,785 $ 107,407 Goodwill arising from Blue Slate acquisition — 4,554 4,554 Goodwill arising from Overland acquisition 28,667 — 28,667 Currency translation adjustments (529 ) — (529 ) Allocation on sale of a business unit (1) (500 ) — (500 ) Balance at December 31, 2014 $ 118,260 $ 21,339 $ 139,599 Goodwill arising from RPM acquisition — 33,155 33,155 Currency translation adjustments (1,001 ) — (1,001 ) Balance at September 30, 2015 $ 117,259 $ 54,494 $ 171,753 (1) Relates to the sale of a business unit (acquired with the Business Process Outsourcing, Inc. acquisition) during the year ended December 31, 2014. The net loss recognized from the sale of this business unit was $149 and was included under “other income/ (expense)” in the consolidated statements of income included in the Company’s annual report on Form 10-K for the year ended December 31, 2014. Intangible Assets Information regarding the Company’s intangible assets is as follows: As of September 30, 2015 Gross Accumulated Net Carrying Customer relationships $ 64,823 $ (22,240 ) $ 42,583 Leasehold benefits 2,814 (2,077 ) 737 Developed technology 12,234 (3,859 ) 8,375 Non-compete agreements 2,045 (1,411 ) 634 Trade names and trademarks 5,670 (2,537 ) 3,133 $ 87,586 $ (32,124 ) $ 55,462 As of December 31, 2014 Gross Accumulated Net Carrying Customer relationships $ 51,598 $ (16,836 ) $ 34,762 Leasehold benefits 2,927 (2,004 ) 923 Developed technology 10,814 (2,402 ) 8,412 Non-compete agreements 1,365 (1,323 ) 42 Trade names and trademarks 4,990 (2,150 ) 2,840 $ 71,694 $ (24,715 ) $ 46,979 Amortization expense for the three months ended September 30, 2015 and 2014 was $2,642 and $1,441, respectively. Amortization expense for the nine months ended September 30, 2015 and 2014 was $7,509 and $4,467, respectively. The weighted average life of intangible assets was 8.8 years for customer relationships, 8.0 years for leasehold benefits, 6.5 years for developed technology, 4.5 years for non-compete agreements and 6.7 years for trade names and trademarks excluding indefinite life trade names and trademarks. The Company had $900 of indefinite life trade names and trademarks as of September 30, 2015 and December 31, 2014. Estimated amortization of intangible assets during the year ending September 30, 2016 $ 10,874 2017 $ 10,843 2018 $ 10,536 2019 $ 10,308 2020 $ 4,236 2021 and thereafter $ 7,765 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. Fair Value Measurements Assets and Liabilities Measured at Fair Value The following table sets forth the Company’s assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2015 and December 31, 2014. The table excludes accounts receivable, accounts payable and accrued expenses for which fair values approximate their carrying amounts. As of September 30, 2015 Level 1 Level 2 Level 3 Total Assets Money market and mutual funds* $ 113,138 $ — $ — $ 113,138 Derivative financial instruments — 3,600 — 3,600 Total $ 113,138 $ 3,600 $ — $ 116,738 Liabilities Derivative financial instruments $ — $ 3,638 $ — $ 3,638 Fair value of earn-out consideration — — 4,060 4,060 Total $ — $ 3,638 $ 4,060 $ 7,698 As of December 31, 2014 Level 1 Level 2 Level 3 Total Assets Money market and mutual funds* $ 127,347 $ — $ — $ 127,347 Derivative financial instruments — 4,579 — 4,579 Total $ 127,347 $ 4,579 $ — $ 131,926 Liabilities Derivative financial instruments $ — $ 2,961 $ — $ 2,961 Total $ — $ 2,961 $ — $ 2,961 * Included in cash and cash equivalents and short-term investments in the Consolidated Balance Sheet. As of September 30, 2015 mutual funds includes investments carried at fair value of $79,174. Derivative Financial Instruments: |
Derivatives and Hedge Accountin
Derivatives and Hedge Accounting | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedge Accounting | 7. Derivatives and Hedge Accounting The Company uses derivative instruments and hedging transactions to mitigate exposure to foreign currency fluctuation risks associated with forecasted transactions denominated in certain foreign currencies and to minimize earnings and cash flow volatility associated with changes in foreign currency exchange rates. The Company’s derivative financial instruments are largely forward foreign exchange contracts that are designated effective and that qualify as cash flow hedges under ASC topic 815, “ Derivatives and hedging The Company had outstanding foreign exchange contracts totaling $295,777 and GBP 13,936 as of September 30, 2015 and totaling $276,018 and GBP 10,889 as of December 31, 2014. The Company estimates that approximately $242 of net derivative gains included in accumulated other comprehensive loss (“AOCI”) could be reclassified into earnings within the next twelve months based on exchange rates prevailing as of September 30, 2015. As of September 30, 2015, the maximum outstanding term of derivative instruments that hedge forecasted transactions was forty-five months. The Company evaluates the hedge effectiveness at the time a contract is entered into as well as on an ongoing basis. If during this time a contract is deemed ineffective, the change in the fair value is recorded in the unaudited consolidated statements of income and is included in foreign exchange loss. For hedging positions that are discontinued because the forecasted transaction is not expected to occur by the end of the originally specified period, any related derivative amounts recorded in equity are reclassified to earnings. No significant amounts of gains or losses were reclassified from AOCI into earnings during the three and nine months ended September 30, 2015 and 2014. The following tables set forth the fair value of the foreign currency exchange contracts and their location on the unaudited consolidated financial statements: Derivatives designated as hedging instruments September 30, December 31, Other current assets: Foreign currency exchange contracts $ 1,987 $ 1,243 Other assets: Foreign currency exchange contracts $ 1,348 $ 3,193 Accrued expenses and other current liabilities: Foreign currency exchange contracts $ 1,745 $ 2,385 Other non current liabilities: Foreign currency exchange contracts $ 1,893 $ 576 Derivatives not designated as hedging instruments: September 30, December 31, Other current assets: Foreign currency exchange contracts $ 265 $ 143 The following tables set forth the effect of foreign currency exchange contracts on the unaudited consolidated statements of income for the three months ended September 30, 2015 and 2014: Derivatives in Cash Flow Amount of Gain/ Location of Gain/ Amount of Gain/ Location of Gain/(Loss) Amount of Gain/ 2015 2014 2015 2014 2015 2014 Foreign exchange $ (3,526 ) $ (3,602 ) Foreign exchange $ (430 ) $ (1,418 ) Foreign exchange $ — $ — Amount of Gain/(Loss) Recognized in Income on Derivatives not designated Location of Gain/(Loss) Derivatives as Hedging Instruments Recognized in Income 2015 2014 Foreign exchange contracts Foreign exchange income $ 705 $ (9 ) The following tables set forth the effect of foreign currency exchange contracts on the unaudited consolidated statements of income for the nine months ended September 30, 2015 and 2014: Derivatives in Cash Flow Amount of Gain/ Location of Gain/ Amount of Gain/ Location of Gain/ Amount of Gain/ 2015 2014 2015 2014 2015 2014 Foreign exchange contracts $ (2,741 ) $ 5,950 Foreign exchange loss $ (963 ) $ (5,877 ) Foreign exchange loss $ — $ — Amount of Gain/(Loss) Derivatives not Recognized in Income on designated Location of Gain or (Loss) Derivatives as Hedging Instruments Recognized in Income on 2015 2014 Foreign exchange contracts Foreign exchange income $ 94 $ 3,442 |
Fixed Assets
Fixed Assets | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | 8. Fixed Assets Fixed assets consist of the following: September 30, December 31, Owned Assets: Network equipment, computers and software $ 91,091 $ 83,140 Buildings 1,213 1,262 Land 794 826 Leasehold improvements 27,390 26,416 Office furniture and equipment 13,397 12,218 Motor vehicles 531 542 Capital work in progress 4,050 3,029 138,466 127,433 Less: Accumulated depreciation and amortization (91,985 ) (82,947 ) $ 46,481 $ 44,486 Assets under capital leases: Leasehold improvements $ 893 $ 961 Office furniture and equipment 148 219 Motor vehicles 761 848 1,802 2,028 Less: Accumulated depreciation and amortization (1,212 ) (1,145 ) $ 590 $ 883 Fixed assets, net $ 47,071 $ 45,369 Depreciation and amortization expense excluding amortization of acquisition-related intangibles for the three months ended September 30, 2015 and 2014 was $5,415 and $5,573, respectively, and $15,662 and $15,582 for the nine months ended September 30, 2015 and 2014, respectively. Capital work in progress represents advances paid towards acquisition of fixed assets, the cost of fixed assets and internally generated software costs not yet ready to be placed in service. |
Capital Structure
Capital Structure | 9 Months Ended |
Sep. 30, 2015 | |
Text Block [Abstract] | |
Capital Structure | 9. Capital Structure The Company has one class of common stock outstanding. During the three months ended September 30, 2015 and 2014, the Company did not acquire any shares of common stock from employees in connection with withholding tax payments related to the vesting of restricted stock. During the nine months ended September 30, 2015 and 2014, the Company acquired 13,573 and 18,256 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 $421 and $459. The weighted average purchase price of $30.99 and $25.14, respectively, was the average of the high and low price of the Company’s shares of common stock on the Nasdaq Global Select Market on the trading day prior to the vesting date of the shares of restricted stock. On December 30, 2014, the Company’s Board of Directors authorized a common stock repurchase program of up to $20,000 annually (the “2014 Repurchase Program”), under which shares may be purchased by the Company from time to time from the open market and through private transactions during each of the fiscal years 2015 to 2017. During the three months and nine months ended September 30, 2015, the Company purchased 220,579 and 354,448 shares of its common stock for an aggregate purchase price of approximately $8,149 and $12,834 including commissions, representing an average purchase price per share of $36.94 and $36.21, respectively under the 2014 Repurchase Program. 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. |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Borrowings | 10. Borrowings On October 24, 2014, the Company entered into a credit agreement (as amended, the “Credit Agreement”) with certain lenders and JPMorgan Chase Bank, N.A., as Administrative Agent. The Credit Agreement provides for a $50,000 revolving credit facility (the “Credit Facility”), including a letter of credit sub-facility, for a period of five years. The Company had an option to increase the commitments under the Credit Facility by up to an additional $50,000, subject to certain approvals and conditions as set forth in the Credit Agreement. On February 23, 2015, via an amendment to the Credit Agreement the Company exercised its option to increase credit commitments by another $50,000 upon the same terms and conditions which were available in the Credit Agreement. The Credit Facility has a maturity date of October 24, 2019 and is voluntarily pre-payable from time to time without premium or penalty. The Credit Facility carried an effective interest rate of 1.56% per annum during the three and nine months ended September 30, 2015. The Company entered into a second amendment to the Credit Agreement effective as of September 28, 2015 to address a minor clarification to the definition of change of control. Borrowings under the Credit Facility may be used for working capital, general corporate purposes and for acquisitions. The Company has an outstanding debt of $70,000 ($10,000, expected to be repaid within next twelve months included under “short-term borrowings” in the consolidated balance sheet) and $50,000 under the Credit Facility as of September 30, 2015 and December 31, 2014, respectively. The Company borrowed an additional $30,000 and repaid $10,000 during the nine months ended September 30, 2015. In connection with the financing, the Company incurred certain debt issuance costs, which are deferred and amortized as an adjustment to interest expense over the term of the Credit Facility. The unamortized debt issuance costs of $392 and $460 as of September 30, 2015 and December 31, 2014, respectively are included in the “other assets” in the consolidated balance sheet. The obligations under the Credit Agreement are secured by all or substantially all of the assets of the Company and its material domestic subsidiaries. The Credit Agreement contains certain covenants including a restriction on indebtedness of the Company. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 11. Employee Benefit Plans The Company’s Gratuity Plans in India and the Philippines provide a lump-sum payment to its vested employees upon retirement or upon termination of employment in an amount based on the respective employee’s salary and years of employment with the Company. Liabilities with regard to the Gratuity Plans are determined by actuarial valuation using the projected unit credit method. Current service costs for the Gratuity Plans are accrued in the year to which they relate. Actuarial gains or losses or prior service costs, if any, resulting from amendments to the plans are recognized and amortized over the remaining period of service of the employees. Net gratuity cost includes the following components: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Service cost $ 403 $ 355 $ 1,241 $ 1,083 Interest cost 135 125 417 385 Expected return on plan assets (94 ) (43 ) (291 ) (130 ) Actuarial loss 51 29 159 99 Net gratuity cost $ 495 $ 466 $ 1,526 $ 1,437 The Gratuity Plans in India are partially funded and are managed and administered by Life Insurance Corporation of India and HDFC Standard Life Insurance Company. They calculate the annual contribution required to be made by the Company and manage the Gratuity Plans, including any required payouts. Fund managers manage these funds on a cash accumulation basis and declare interest retrospectively on March 31 of each year. The Company earned a return of approximately 9.0% on these Gratuity Plans for the year ended March 31, 2015. Change in Plan Assets Plan assets at January 1, 2015 $ 4,752 Actual return 317 Benefits Paid (624 ) Effect of exchange rate changes (175 ) Plan assets at September 30, 2015 $ 4,270 The Company maintains the Exl Service 401(k) Plan (the “401(k) Plan”) under Section 401(k) of the Internal Revenue Code of 1986 (the “Code”), 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 $400 and $192 during the three month periods ended September 30, 2015 and 2014, respectively, and $1,551 and $1,037 during the nine month periods ended September 30, 2015 and 2014, respectively. During the three and nine month periods ended September 30, 2015 and 2014, the Company contributed the following amounts to various defined contribution plans on behalf of its employees in India, the Philippines, Romania, Bulgaria and the Czech Republic: Three months ended September 30, 2015 $ 1,463 Three months ended September 30, 2014 $ 1,418 Nine months ended September 30, 2015 $ 4,393 Nine months ended September 30, 2014 $ 4,279 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2015 | |
Leases [Abstract] | |
Leases | 12. Leases The Company finances its use of certain leasehold improvements, furniture, fixtures, office equipment and motor vehicles under various lease arrangements provided by financial institutions. Future minimum lease payments under these capital leases as of September 30, 2015 are as follows: Year ending September 30, 2016 $ 541 2017 236 2018 90 2019 10 Total minimum lease payments 877 Less: amount representing interest 92 Present value of minimum lease payments 785 Less: current portion 481 Long term capital lease obligation $ 304 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 September 30, 2015 are set forth below: Year ending September 30, 2016 $ 8,684 2017 4,987 2018 3,311 2019 2,239 2020 1,273 2021 and thereafter 1,106 $ 21,600 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 Topic 840 Lease Accounting (“ASC 840”). Rent expense under both cancelable and non-cancelable operating leases was $4,994 and $4,897 for the three months ended September 30, 2015 and 2014, respectively, and $15,089 and $14,153 for the nine months ended September 30, 2015 and 2014, respectively. Deferred rent as of September 30, 2015 and December 31, 2014 was $6,789 and $6,544, respectively, and is included under “Accrued expenses and other current liabilities” and “Non-current liabilities” in the consolidated balance sheets. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes The Company determines the tax provision for interim periods using an estimate of its annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates its estimate of annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment. The Company recorded income tax expense of $7,565 and $1,002 for the three months ended September 30, 2015 and 2014, respectively. Income tax expense for the nine months ended September 30, 2015 and 2014 was $19,309 and $4,523, respectively. The effective tax rate increased from 14.2% during the three months ended September 30, 2014 to 33.3% during the three months ended September 30, 2015. The increase in effective tax rate is primarily due to higher income in the U.S. due to reimbursement of disentanglement costs to Travelers during the three months ended September 30, 2014 and due to expiration of a tax holiday in some of our operating centers in India. Further, the effective tax rate increased due to a tax expense related to the taxability of certain foreign income in prior years during the three months ended September 30, 2015. The effective rate of taxes increased from 15.3% during the nine months ended September 30, 2014 to 34.4% during the nine months ended September 30, 2015. The increase in effective tax rate was primarily due to immaterial errors related to prior years (individually as well as when aggregated) which were recorded during the nine months ended September 30, 2015, and resulted in an increase in income tax expense of approximately $2,400 (including approximately $1,900 related to the taxability of certain foreign income in prior years for which the Company recorded a reserve for an unrecognized tax benefit). The effective tax rate further increased during the nine months ended September 30, 2015 due to reversal of an unrecognized tax benefit of $2,173 and higher income in the U.S. due to reimbursement of disentanglement costs to Travelers during the nine months ended September 30, 2014 and the expiration of a tax holiday in some of the Company’s operating centers in the Philippines and India. In accordance with ASC Topic 250, Accounting Changes and Error Corrections, the Company evaluated the effects of the errors on its financial statements for those prior years and the expected full year financial results for the year ending December 31, 2015 and concluded that the results of operations for these periods are not materially misstated. In reaching its conclusion, the Company considered qualitative and quantitative factors. The following table summarizes the activity related to the gross unrecognized tax benefits from January 1, 2015 through September 30, 2015: Balance as of January 1, 2015 $ 2,761 Increases related to prior year tax positions 1,818 Decreases related to prior year tax positions — Increases related to current year tax positions — Decreases related to current year tax positions — Effect of exchange rate changes (68 ) Balance as of September 30, 2015 $ 4,511 The unrecognized tax benefits as of September 30, 2015 of $4,511, if recognized, would impact the effective tax rate. During the three months ended September 30, 2015 and 2014, the Company has recognized interest of $74 and $54 respectively, which are included in the income tax expense in the unaudited consolidated statements of income. As of September 30, 2015 and December 31, 2014, the Company has accrued approximately $1,300 and $1,117, respectively in interest relating to unrecognized tax benefits. The unrecognized tax benefits may increase or decrease in the next twelve months depending on the Company’s tax position. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 14. Stock-Based Compensation The following costs related to the Company’s stock-based compensation plan are included in the unaudited consolidated statements of income: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Cost of revenue $ 740 $ 410 $ 2,394 $ 1,873 General and administrative expenses 1,613 985 4,482 3,285 Selling and marketing expenses 2,118 981 5,404 3,360 Total $ 4,471 $ 2,376 $ 12,280 $ 8,518 On June 19, 2015, at the Company’s 2015 Annual Meeting of Stockholders (the “Annual Meeting”), the stockholders of ExlService Holdings, Inc. (the “Company”) approved the 2015 Amendment and Restatement of the 2006 Omnibus Award Plan (the “2015 Plan”), which amended and restated the 2006 Omnibus Award Plan to, among other things, increase the total number of shares reserved for grants of awards under the 2015 Plan by 1,700,000 shares. As of September 30, 2015, the Company had 2,418,055 shares available for grant under the 2015 Plan. Stock Options Stock option activity under the Company’s stock plans is shown below: Number of Weighted- Aggregate Weighted- Outstanding at December 31, 2014 1,433,179 $ 16.23 $ 17,889 4.47 Granted — — Exercised (207,122 ) 15.26 Forfeited/Expired (6,058 ) 24.77 Outstanding at September 30, 2015 1,219,999 $ 16.35 $ 25,108 3.77 Vested and exercisable at September 30, 2015 1,138,136 $ 15.74 $ 24,113 3.58 The unrecognized compensation cost for unvested options as of September 30, 2015 is $292 which is expected to be expensed over a weighted average period of 0.34 years. The weighted-average fair value of options granted during the nine months ended September 30, 2015 and 2014 was $0 and $9.77 respectively. The total grant date fair value of options vested during the three months ended September 30, 2015 and 2014 was $0 and $693 respectively. The total grant date fair value of options vested during the nine months ended September 30, 2015 and 2014 was $1,170 and $1,917 respectively. Restricted Stock and Restricted Stock Units Restricted stock and restricted stock unit activity under the Company’s stock plans is shown below: Restricted Stock Restricted Stock Units Number Weighted-Average Intrinsic Value Number Weighted-Average Intrinsic Value Outstanding at December 31, 2014* 46,950 $ 29.29 1,189,691 $ 26.54 Granted 122,131 35.91 471,160 34.99 Vested (34,147 ) 29.29 (320,049 ) 25.15 Forfeited (5,296 ) 29.29 (72,386 ) 27.32 Outstanding at September 30, 2015* 129,638 $ 35.53 1,268,416 $ 29.98 * Excludes 143,224 and 128,000 vested restricted stock units as of September 30, 2015 and December 31, 2014, respectively for which the underlying common stock is yet to be issued. As of September 30, 2015, unrecognized compensation cost of $33,834 is expected to be expensed over a weighted average period of 2.74 years. Performance Based Stock Awards Performance restricted stock unit (the “PRSU’s”) activity under the Company’s stock plans is shown below: Revenue Based PRSU’s Market Condition Based PRSU’s Number Weighted Avg Number Weighted Avg Outstanding at Dec 31, 2014 47,725 $ 25.63 47,725 $ 33.60 Granted 62,788 34.75 162,787 40.36 Vested — — — — Forfeited (3,300 ) 28.53 (3,300 ) 40.29 Outstanding at September 30, 2015 107,213 $ 30.88 207,212 $ 38.80 As of September 30, 2015, unrecognized compensation cost of $8,570 is expected to be expensed over a weighted average period of 2.09 years. |
Geographical Information
Geographical Information | 9 Months Ended |
Sep. 30, 2015 | |
Text Block [Abstract] | |
Geographical Information | 15. Geographical Information Three months ended Nine months ended 2015 2014 2015 2014 Revenues, net United States $ 129,886 $ 89,337 $ 364,591 $ 267,638 United Kingdom 28,262 26,060 81,550 74,215 Rest of World 5,355 7,060 16,493 22,139 $ 163,503 $ 122,457 $ 462,634 $ 363,992 September 30, December 31, 2015 2014 Fixed assets, net India $ 24,383 $ 24,186 United States 8,930 8,293 Philippines 12,338 12,391 Rest of World 1,420 499 $ 47,071 $ 45,369 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies Fixed Asset Commitments As of September 30, 2015, the Company had committed to spend approximately $3,404 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 or under the Software Technology Parks of India (“STPI”) scheme promulgated by the Government of India. These units are exempt from customs, central excise duties, and levies on imported and indigenous capital goods, stores, and spares. The Company has undertaken to pay custom duties, service taxes, levies, and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores and spares consumed duty free, in the event that certain terms and conditions are not fulfilled. 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 the Philippine Economic Zone Authority (“PEZA”). The registration provides the Company with certain fiscal incentives on the import of capital goods and requires Exl Philippines to meet certain performance and investment criteria. The Company’s management believes that these centers have in the past satisfied and will continue to satisfy the required criteria. Contingencies U.S. and Indian transfer pricing regulations require that any international transaction involving associated enterprises be at an arm’s length price. Accordingly, the Company determines the appropriate pricing for the international transactions among its associated enterprises on the basis of a detailed functional and economic analysis involving benchmarking against transactions among entities that are not under common control. The tax authorities have jurisdiction to review this arrangement and in the event that they determine that the transfer price applied was not appropriate, the Company may incur increased tax liability, including accrued interest and penalties. The Company is currently involved in disputes with the Indian tax authorities over the application of some of its transfer pricing policies for some of its subsidiaries. Further, the Company and its U.S. subsidiary, ExlService.com LLC are engaged in tax litigation with the income-tax authorities in India on the issue of permanent establishment. The aggregate disputed amount demanded by Indian tax authorities from the Company related to its transfer pricing issues for various years ranging from tax years 2003 to 2011 and its permanent establishment issues ranging from tax years 2003 to 2011 as of September 30, 2015 and December 31, 2014 is $19,265 and $22,866, respectively, of which the Company has already made payments or provided bank guarantees to the extent of $14,703 and $14,666, respectively. Amounts paid as deposits in respect of such assessments aggregating to $12,683 and $12,564 as of September 30, 2015 and December 31, 2014, respectively, are included in “Other assets” and amounts deposited for bank guarantees aggregating to $2,020 and $2,102 as of September 30, 2015 and December 31, 2014, respectively, are included in “Restricted cash” in the non-current assets section of the Company’s unaudited consolidated balance sheet as of September 30, 2015 and consolidated balance sheet as of December 31, 2014. Based on advice from its Indian tax advisors, the facts underlying the Company’s position and its experience with these types of assessments, the Company believes that the probability that it will ultimately be found liable for these assessments is remote and accordingly has not accrued any amount with respect to these matters in its consolidated financial statements. The Company does not expect any impact from these assessments on its future income tax expense. It is possible that the Company might receive similar orders or assessments from tax authorities for subsequent years. Accordingly even if these disputes are resolved, the Indian tax authorities may still serve additional orders or assessments. |
Organization and Basis of Pre24
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for annual financial statements and therefore should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. The unaudited interim consolidated financial statements reflect all adjustments (of a normal and recurring nature) that management considers necessary for a fair presentation of such statements for the interim periods presented. The unaudited consolidated statements of income for the interim periods presented are not necessarily indicative of the results for the full year or for any subsequent period. |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited consolidated financial statements include the financial statements of ExlService Holdings and all of its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the unaudited consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the unaudited consolidated statements of income during the reporting period. 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. In accordance with its policy, the Company reviews the estimated useful lives of its fixed assets on an ongoing basis. During the three months ended March 31, 2015, the review indicated that the actual lives of certain fixed assets were longer than the estimated useful lives used for depreciation purposes in the Company’s financial statements. As a result, effective January 1, 2015, the Company changed its estimates of the useful lives of its certain fixed assets to better reflect the estimated periods during which these assets will remain in service. The effect of change in estimated useful life of assets reduced depreciation expense by $468 and $1,403, increased net income by $281 and $842 and increased basic and diluted earnings per share by $0.01 and $0.02, respectively during the three months and nine months ended September 30, 2015. |
Revenue Recognition | Revenue Recognition As part of reimbursing the Travelers Indemnity Company (“Travelers”) for certain of their transition related expenses (the “disentanglement costs”), the Company recognized $9,626 and $17,815 of such reimbursements as a reduction of our revenues during the three months and nine months ended September 30, 2014 respectively, in accordance with Accounting Standards Codification (“ASC”) topic 605-50-45, “Revenue Recognition (“ASC 605-50-45”).” The Company did not incur any reimbursements of disentanglement costs during the three months and nine months ended September 30, 2015 and also does not anticipate incurring any additional reimbursements of disentanglement costs related to Travelers going forward. Revenue from analytical services including modeling, targeting and designing of campaigns and mail marketing including email marketing and other digital solutions is typically recognized on delivery of such campaigns. In respect of arrangements involving sub-contracting of part or whole of the assigned work, the Company evaluates revenue to be recognized under ASC 605-45 “Revenue recognition – Principal agent considerations”. |
Investments | Investments The Company’s investments consist primarily of time deposits and mutual funds and are in accordance with the Company’s risk management policies. Time deposits with financial institutions are valued at cost and approximate fair value. Interest earned on such investments is included in interest and other 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. The mutual fund investments are in debt and money market funds which invest in instruments of various maturities in India. The Company accounts for these investments in accordance with the fair value option under ASC topic 825-10 (“ASC 825-10”) and change in fair value is included in interest and other income. The fair value represents original cost (on the acquisition date) and the net asset value (“NAV”) as quoted, at each reporting period. Gain or loss on the disposal of these investments is calculated using the weighted average cost of the investments sold or disposed and is included in interest and other income. |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following: September 30, December 31, Accrued expenses $ 25,232 $ 24,451 Derivative instruments 1,745 2,385 Client liability account 2,546 9,241 Other current liabilities 4,716 4,129 Accrued expenses and other current liabilities $ 34,239 $ 40,206 |
Non-current liabilities | Non-current liabilities Non-current liabilities consist of the following: September 30, December 31, Derivative instruments $ 1,893 $ 576 Unrecognized tax benefits 4,811 2,878 Deferred rent 6,277 5,977 Retirement benefits 1,477 1,544 Other non-current liabilities 4,513 1,895 Non-current liabilities $ 18,971 $ 12,870 |
Interest and other income | Interest and other income Interest and other income (expense), net consists of the following: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Interest and dividend income* $ 2,085 $ 920 $ 4,997 $ 2,709 Interest expense (340 ) (52 ) (983 ) (240 ) Others, net 42 176 286 392 Other income, net $ 1,787 $ 1,044 $ 4,300 $ 2,861 * Includes unrealized gain of $1,419 and $2,179 and realized gain of $320 and $335, respectively for the three months and nine months ending September 30, 2015 on investments carried at fair value. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). Earlier the new standard was effective for reporting periods beginning after December 15, 2016. However, in April 2015, FASB deferred the effective date of the new standard. With this deferral, the new standard is effective for reporting periods beginning after December 15, 2017 and early adoption is not permitted. The comprehensive new standard will supersede existing revenue recognition guidance and require revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions of the Company. ASU 2014-09 is effective for the Company in the first quarter of fiscal 2018 using either one of two methods: (i) retrospectively to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. The Company is currently evaluating the impact of adoption and the implementation approach to be used. In April 2015, FASB issued ASU No. 2015-05, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”). The amendments add guidance to Subtopic 350-40, Intangibles – Goodwill and Other – Internal-Use Software, which will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The amendments will be effective for fiscal years beginning after December 15, 2015. The Company is currently evaluating the method of adoption and impact this standard will have on its consolidated financial statements and related disclosures. In April 2015, FASB issued ASU No. 2015-03, “Interest—Imputation of Interest” (“ASU 2015-03”), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance of debt issuance costs are not affected by the amendments in that update. The standard will be effective for the Company beginning in the first quarter of fiscal year 2016 and requires the Company to apply the new guidance on a retrospective basis on adoption. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In May 2015, FASB issued ASU No. 2015-08, “Business Combinations (Topic 805): Pushdown Accounting—Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115” (“ASU 2015-08”). The amendments in ASU 2015-08 amend various SEC paragraphs included in FASB’s Accounting Standards Codification to reflect the issuance of Staff Accounting Bulletin No. 115 (“SAB 115”). SAB 115 rescinds portions of the interpretive guidance included in the SEC’s Staff Accounting Bulletins series and brings existing guidance into conformity with ASU No. 2014-17, “Business Combinations (Topic 805): Pushdown Accounting,” which provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The adoption of this guidance does not have a material impact on the Company’s consolidated financial statements. In August 2015, FASB issued ASU No. 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements” (“ASU 2015-15”). This ASU indicates that the guidance in ASU 2015-03 did not address presentation or subsequent measurement of debt issuance costs related to line of credit arrangements. Given the absence of authoritative guidance within ASU 2015-03, the SEC staff has indicated that they would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the costs ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. The Company does not expect the adoption of ASU 2015-15 to have any effect on the Company’s financial position or results of operations. In September 2015, FASB issued ASU No. 2015-16, “Simplifying the Accounting for Measurement Period Adjustments” (“ASU 2015-16”). ASU 2015-16 require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in ASU 2015-16 require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in ASU 2015-16 require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments in ASU 2015-16 are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in ASU 2015-16 should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update with earlier application permitted for financial statements that have not been issued. The Company is currently evaluating the impact of adoption of ASU 2015-16 on its consolidated financial position or results of operations. |
Business Combinations, Goodwill and Intangible Assets | RPM Direct LLC and RPM Data Solutions, LLC. On March 20, 2015 ExlService.com completed its acquisition of RPM Direct LLC and RPM Data Solutions, LLC (each a “Target Company” and together the “Target Companies” or “RPM”), pursuant to a Securities Purchase Agreement dated February 23, 2015 (the “Purchase Agreement”). Under the terms of the Purchase Agreement ExlService.com acquired all of the issued and outstanding limited liability company membership interests of the Target Companies (the “Securities”) from the security holders of each of the Target Companies. The initial purchase consideration consisted of $46,925 in cash including working capital adjustments of $75, contingent cash consideration of up to $23,000, as described below, and 122,131 restricted shares of common stock of the Company and certain adjustments related to the financial performance of the Target Companies for 2014. There are no adjustments to the purchase price related to the financial performance of 2014. The purchase agreement allows sellers the ability to earn up to an additional $23,000 (the “earn-out”) based on the achievement of certain performance goals by the Target Companies during the 2015 and 2016 calendar years. The earn-out has an estimated fair value of $4,060. As noted above, the Company issued 122,131 restricted shares of common stock with an aggregate fair value of $4,150 to certain key members of the Target Companies, each of whom have accepted employment positions with the Company upon consummation of the combination. The Company also granted 113,302 restricted stock units with an aggregate fair value of $3,850 to certain employees of Target Companies, who have also accepted employment with the Company. The fair value of these grants will be recognized as compensation expense over the vesting period. RPM, now as a subsidiary of the Company, specializes in analyzing large consumer data sets to segment populations, predict response rates, forecast customer lifetime value and design targeted, multi-channel marketing campaigns. RPM has focused on the insurance industry, including P&C, life and health, since its inception in 2001. RPM maintains its own database and supports data on over 250 million consumers and 120 million U.S. households. The quantity and combination of data attributes managed by RPM drives optimal, data-driven decision-making and enables it to build models that analyze prospects individually. RPM employs proprietary predictive analytics and domain-specific pattern recognition algorithms to deliver results through a flexible, on-demand service model. 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 Company made a preliminary allocation of the purchase price to the net tangible and intangible assets based on their fair values as mentioned below: Amount (In thousands) Net tangible assets $ 1,790 Identifiable intangible assets: Customer Relationship 13,260 Trade Names 680 Developed Technology 1,420 Non-Compete Agreements 680 Goodwill 33,155 Total purchase price* $ 50,985 * Includes amount of $4,125 deposited in escrow accounts in connection with the acquisition. The customer relationships from the RPM acquisition are being amortized over the weighted average useful life of 5.7 years. Similarly, trade-names are being amortized over a useful life of 3 years, developed technology are being amortized over a useful life of 5 years and non-compete agreements are being amortized over a useful life of 4.6 years. Under ASC topic 805, “Business Combinations,” the preliminary allocation of the purchase price to the tangible and intangible assets and liabilities acquired may change up to a period of one year from the date of the acquisition. The Company’s purchase accounting as of September 30, 2015 was incomplete and the Company expects to complete its valuation of the tangible assets, intangible assets and liabilities assumed as of the acquisition date during the fourth quarter of 2015. Accordingly, the Company may adjust the amounts recorded as of September 30, 2015 to reflect the final valuations of the assets acquired or liabilities assumed. During the nine months ended September 30, 2015 the Company recognized $303 of acquisition related costs. Such amounts are included in general and administrative expenses in the consolidated statements of income. The Company’s results of operations for the three and nine months ended September 30, 2015 includes revenues of $11,557 and $23,068, respectively for RPM since March 20, 2015, the date on which the acquisition was consummated. It is not practicable to disclose the net earnings since management does not allocate or evaluate operating expenses and income taxes to its domestic entities. The amount of goodwill recognized from the RPM acquisition is deductible for tax purposes. Goodwill The following table sets forth details of the Company’s goodwill balance as of September 30, 2015: Operations Analytics and Total Balance at January 1, 2014 $ 90,622 $ 16,785 $ 107,407 Goodwill arising from Blue Slate acquisition — 4,554 4,554 Goodwill arising from Overland acquisition 28,667 — 28,667 Currency translation adjustments (529 ) — (529 ) Allocation on sale of a business unit (1) (500 ) — (500 ) Balance at December 31, 2014 $ 118,260 $ 21,339 $ 139,599 Goodwill arising from RPM acquisition — 33,155 33,155 Currency translation adjustments (1,001 ) — (1,001 ) Balance at September 30, 2015 $ 117,259 $ 54,494 $ 171,753 (1) Relates to the sale of a business unit (acquired with the Business Process Outsourcing, Inc. acquisition) during the year ended December 31, 2014. The net loss recognized from the sale of this business unit was $149 and was included under “other income/ (expense)” in the consolidated statements of income included in the Company’s annual report on Form 10-K for the year ended December 31, 2014. Intangible Assets Information regarding the Company’s intangible assets is as follows: As of September 30, 2015 Gross Accumulated Net Carrying Customer relationships $ 64,823 $ (22,240 ) $ 42,583 Leasehold benefits 2,814 (2,077 ) 737 Developed technology 12,234 (3,859 ) 8,375 Non-compete agreements 2,045 (1,411 ) 634 Trade names and trademarks 5,670 (2,537 ) 3,133 $ 87,586 $ (32,124 ) $ 55,462 As of December 31, 2014 Gross Accumulated Net Carrying Customer relationships $ 51,598 $ (16,836 ) $ 34,762 Leasehold benefits 2,927 (2,004 ) 923 Developed technology 10,814 (2,402 ) 8,412 Non-compete agreements 1,365 (1,323 ) 42 Trade names and trademarks 4,990 (2,150 ) 2,840 $ 71,694 $ (24,715 ) $ 46,979 Amortization expense for the three months ended September 30, 2015 and 2014 was $2,642 and $1,441, respectively. Amortization expense for the nine months ended September 30, 2015 and 2014 was $7,509 and $4,467, respectively. The weighted average life of intangible assets was 8.8 years for customer relationships, 8.0 years for leasehold benefits, 6.5 years for developed technology, 4.5 years for non-compete agreements and 6.7 years for trade names and trademarks excluding indefinite life trade names and trademarks. The Company had $900 of indefinite life trade names and trademarks as of September 30, 2015 and December 31, 2014. Estimated amortization of intangible assets during the year ending September 30, 2016 $ 10,874 2017 $ 10,843 2018 $ 10,536 2019 $ 10,308 2020 $ 4,236 2021 and thereafter $ 7,765 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: September 30, December 31, Accrued expenses $ 25,232 $ 24,451 Derivative instruments 1,745 2,385 Client liability account 2,546 9,241 Other current liabilities 4,716 4,129 Accrued expenses and other current liabilities $ 34,239 $ 40,206 |
Summary of Non-current Liabilities | Non-current liabilities consist of the following: September 30, December 31, Derivative instruments $ 1,893 $ 576 Unrecognized tax benefits 4,811 2,878 Deferred rent 6,277 5,977 Retirement benefits 1,477 1,544 Other non-current liabilities 4,513 1,895 Non-current liabilities $ 18,971 $ 12,870 |
Summary of Interest and Other Income (Expense), Net | Interest and other income (expense), net consists of the following: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Interest and dividend income* $ 2,085 $ 920 $ 4,997 $ 2,709 Interest expense (340 ) (52 ) (983 ) (240 ) Others, net 42 176 286 392 Other income, net $ 1,787 $ 1,044 $ 4,300 $ 2,861 * Includes unrealized gain of $1,419 and $2,179 and realized gain of $320 and $335, respectively for the three months and nine months ending September 30, 2015 on investments carried at fair value. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Numerators: Net income $ 15,162 $ 6,075 $ 36,803 $ 24,985 Denominators: Basic weighted average common shares outstanding 33,307,312 32,890,475 33,320,477 32,743,384 Dilutive effect of share based awards 873,323 786,190 826,643 850,920 Diluted weighted average common shares outstanding 34,180,635 33,676,665 34,147,120 33,594,304 Earnings per share: Basic $ 0.46 $ 0.18 $ 1.10 $ 0.76 Diluted $ 0.44 $ 0.18 $ 1.08 $ 0.74 Weighted average common shares considered anti-dilutive in computing diluted earnings per share 61,738 43,950 98,527 143,096 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Revenues and Cost of Revenues for Company's Operations Management and Analytics and Business Transformation Segments | Revenues and cost of revenues for each of the three months ended September 30, 2015 and 2014 for the Company’s Operations Management and Analytics and Business Transformation segments, respectively, are as follows: Three months ended September 30, 2015 Three months ended September 30, 2014 Operations Analytics and Total Operations Analytics and Total Revenues, net $ 113,977 $ 49,526 $ 163,503 $ 91,155 $ 31,302 $ 122,457 Cost of revenues (exclusive of depreciation and amortization) 72,032 31,166 103,198 62,870 22,113 84,983 Gross profit $ 41,945 $ 18,360 $ 60,305 $ 28,285 $ 9,189 $ 37,474 Operating expenses 39,556 32,083 Other income/(expense) 1,978 1,686 Income tax expense 7,565 1,002 Net income $ 15,162 $ 6,075 Revenues and cost of revenues for each of the nine months ended September 30, 2015 and 2014 for the Company’s Operations Management and Analytics and Business Transformation segments, respectively, are as follows: Nine months ended September 30, 2015 Nine months ended September 30, 2014 Operations Analytics and Total Operations Analytics and Total Revenues, net $ 337,244 $ 125,390 $ 462,634 $ 285,560 $ 78,432 $ 363,992 Cost of revenues (exclusive of depreciation and amortization) 214,032 82,769 296,801 184,263 56,901 241,164 Gross profit $ 123,212 $ 42,621 $ 165,833 $ 101,297 $ 21,531 $ 122,828 Operating expenses 116,368 95,853 Other income/(expense) 6,647 2,533 Income tax expense 19,309 4,523 Net income $ 36,803 $ 24,985 |
Business Combinations, Goodwi28
Business Combinations, Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Company's Goodwill | The following table sets forth details of the Company’s goodwill balance as of September 30, 2015: Operations Analytics and Total Balance at January 1, 2014 $ 90,622 $ 16,785 $ 107,407 Goodwill arising from Blue Slate acquisition — 4,554 4,554 Goodwill arising from Overland acquisition 28,667 — 28,667 Currency translation adjustments (529 ) — (529 ) Allocation on sale of a business unit (1) (500 ) — (500 ) Balance at December 31, 2014 $ 118,260 $ 21,339 $ 139,599 Goodwill arising from RPM acquisition — 33,155 33,155 Currency translation adjustments (1,001 ) — (1,001 ) Balance at September 30, 2015 $ 117,259 $ 54,494 $ 171,753 (1) Relates to the sale of a business unit (acquired with the Business Process Outsourcing, Inc. acquisition) during the year ended December 31, 2014. The net loss recognized from the sale of this business unit was $149 and was included under “other income/ (expense)” in the consolidated statements of income included in the Company’s annual report on Form 10-K for the year ended December 31, 2014. |
Summary of Company's Intangible Assets | Information regarding the Company’s intangible assets is as follows: As of September 30, 2015 Gross Accumulated Net Carrying Customer relationships $ 64,823 $ (22,240 ) $ 42,583 Leasehold benefits 2,814 (2,077 ) 737 Developed technology 12,234 (3,859 ) 8,375 Non-compete agreements 2,045 (1,411 ) 634 Trade names and trademarks 5,670 (2,537 ) 3,133 $ 87,586 $ (32,124 ) $ 55,462 As of December 31, 2014 Gross Accumulated Net Carrying Customer relationships $ 51,598 $ (16,836 ) $ 34,762 Leasehold benefits 2,927 (2,004 ) 923 Developed technology 10,814 (2,402 ) 8,412 Non-compete agreements 1,365 (1,323 ) 42 Trade names and trademarks 4,990 (2,150 ) 2,840 $ 71,694 $ (24,715 ) $ 46,979 |
Estimated Amortization of Intangible Assets | Estimated amortization of intangible assets during the year ending September 30, 2016 $ 10,874 2017 $ 10,843 2018 $ 10,536 2019 $ 10,308 2020 $ 4,236 2021 and thereafter $ 7,765 |
RPM Direct LLC and RPM Data Solutions LLC [Member] | |
Summary of Preliminary Allocation of Purchase Price to Net Tangible and Intangible Assets | The Company made a preliminary allocation of the purchase price to the net tangible and intangible assets based on their fair values as mentioned below: Amount (In thousands) Net tangible assets $ 1,790 Identifiable intangible assets: Customer Relationship 13,260 Trade Names 680 Developed Technology 1,420 Non-Compete Agreements 680 Goodwill 33,155 Total purchase price* $ 50,985 * Includes amount of $4,125 deposited in escrow accounts in connection with the acquisition. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value | The following table sets forth the Company’s assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2015 and December 31, 2014. The table excludes accounts receivable, accounts payable and accrued expenses for which fair values approximate their carrying amounts. As of September 30, 2015 Level 1 Level 2 Level 3 Total Assets Money market and mutual funds* $ 113,138 $ — $ — $ 113,138 Derivative financial instruments — 3,600 — 3,600 Total $ 113,138 $ 3,600 $ — $ 116,738 Liabilities Derivative financial instruments $ — $ 3,638 $ — $ 3,638 Fair value of earn-out consideration — — 4,060 4,060 Total $ — $ 3,638 $ 4,060 $ 7,698 As of December 31, 2014 Level 1 Level 2 Level 3 Total Assets Money market and mutual funds* $ 127,347 $ — $ — $ 127,347 Derivative financial instruments — 4,579 — 4,579 Total $ 127,347 $ 4,579 $ — $ 131,926 Liabilities Derivative financial instruments $ — $ 2,961 $ — $ 2,961 Total $ — $ 2,961 $ — $ 2,961 * Included in cash and cash equivalents and short-term investments in the Consolidated Balance Sheet. As of September 30, 2015 mutual funds includes investments carried at fair value of $79,174. |
Derivatives and Hedge Account30
Derivatives and Hedge Accounting (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Foreign Currency Exchange Contracts | The following tables set forth the fair value of the foreign currency exchange contracts and their location on the unaudited consolidated financial statements: Derivatives designated as hedging instruments September 30, December 31, Other current assets: Foreign currency exchange contracts $ 1,987 $ 1,243 Other assets: Foreign currency exchange contracts $ 1,348 $ 3,193 Accrued expenses and other current liabilities: Foreign currency exchange contracts $ 1,745 $ 2,385 Other non current liabilities: Foreign currency exchange contracts $ 1,893 $ 576 Derivatives not designated as hedging instruments: September 30, December 31, Other current assets: Foreign currency exchange contracts $ 265 $ 143 |
Summary of Effect of Foreign Currency Exchange Contracts on Consolidated Statements of Income | The following tables set forth the effect of foreign currency exchange contracts on the unaudited consolidated statements of income for the three months ended September 30, 2015 and 2014: Derivatives in Cash Flow Amount of Gain/ Location of Gain/ Amount of Gain/ Location of Gain/(Loss) Amount of Gain/ 2015 2014 2015 2014 2015 2014 Foreign exchange $ (3,526 ) $ (3,602 ) Foreign exchange $ (430 ) $ (1,418 ) Foreign exchange $ — $ — Amount of Gain/(Loss) Recognized in Income on Derivatives not designated Location of Gain/(Loss) Derivatives as Hedging Instruments Recognized in Income 2015 2014 Foreign exchange contracts Foreign exchange income $ 705 $ (9 ) The following tables set forth the effect of foreign currency exchange contracts on the unaudited consolidated statements of income for the nine months ended September 30, 2015 and 2014: Derivatives in Cash Flow Amount of Gain/ Location of Gain/ Amount of Gain/ Location of Gain/ Amount of Gain/ 2015 2014 2015 2014 2015 2014 Foreign exchange contracts $ (2,741 ) $ 5,950 Foreign exchange loss $ (963 ) $ (5,877 ) Foreign exchange loss $ — $ — Amount of Gain/(Loss) Derivatives not Recognized in Income on designated Location of Gain or (Loss) Derivatives as Hedging Instruments Recognized in Income on 2015 2014 Foreign exchange contracts Foreign exchange income $ 94 $ 3,442 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | Fixed assets consist of the following: September 30, December 31, Owned Assets: Network equipment, computers and software $ 91,091 $ 83,140 Buildings 1,213 1,262 Land 794 826 Leasehold improvements 27,390 26,416 Office furniture and equipment 13,397 12,218 Motor vehicles 531 542 Capital work in progress 4,050 3,029 138,466 127,433 Less: Accumulated depreciation and amortization (91,985 ) (82,947 ) $ 46,481 $ 44,486 Assets under capital leases: Leasehold improvements $ 893 $ 961 Office furniture and equipment 148 219 Motor vehicles 761 848 1,802 2,028 Less: Accumulated depreciation and amortization (1,212 ) (1,145 ) $ 590 $ 883 Fixed assets, net $ 47,071 $ 45,369 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Net Gratuity Cost | Net gratuity cost includes the following components: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Service cost $ 403 $ 355 $ 1,241 $ 1,083 Interest cost 135 125 417 385 Expected return on plan assets (94 ) (43 ) (291 ) (130 ) Actuarial loss 51 29 159 99 Net gratuity cost $ 495 $ 466 $ 1,526 $ 1,437 |
Change in Plan Assets | Change in Plan Assets Plan assets at January 1, 2015 $ 4,752 Actual return 317 Benefits Paid (624 ) Effect of exchange rate changes (175 ) Plan assets at September 30, 2015 $ 4,270 |
Contribution to Various Defined Contribution Plans | During the three and nine month periods ended September 30, 2015 and 2014, the Company contributed the following amounts to various defined contribution plans on behalf of its employees in India, the Philippines, Romania, Bulgaria and the Czech Republic: Three months ended September 30, 2015 $ 1,463 Three months ended September 30, 2014 $ 1,418 Nine months ended September 30, 2015 $ 4,393 Nine months ended September 30, 2014 $ 4,279 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Leases [Abstract] | |
Future Minimum Lease Payments under Capital Leases | Future minimum lease payments under these capital leases as of September 30, 2015 are as follows: Year ending September 30, 2016 $ 541 2017 236 2018 90 2019 10 Total minimum lease payments 877 Less: amount representing interest 92 Present value of minimum lease payments 785 Less: current portion 481 Long term capital lease obligation $ 304 |
Future Minimum Lease Payments under Non-Cancelable Operating Lease Agreements Expiring after September 30, 2015 | Future minimum lease payments under non-cancelable agreements expiring after September 30, 2015 are set forth below: Year ending September 30, 2016 $ 8,684 2017 4,987 2018 3,311 2019 2,239 2020 1,273 2021 and thereafter 1,106 $ 21,600 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of Activity Related to Gross Unrecognized Tax Benefits | The following table summarizes the activity related to the gross unrecognized tax benefits from January 1, 2015 through September 30, 2015: Balance as of January 1, 2015 $ 2,761 Increases related to prior year tax positions 1,818 Decreases related to prior year tax positions — Increases related to current year tax positions — Decreases related to current year tax positions — Effect of exchange rate changes (68 ) Balance as of September 30, 2015 $ 4,511 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Costs Related to Company's Stock-Based Compensation Plan | The following costs related to the Company’s stock-based compensation plan are included in the unaudited consolidated statements of income: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Cost of revenue $ 740 $ 410 $ 2,394 $ 1,873 General and administrative expenses 1,613 985 4,482 3,285 Selling and marketing expenses 2,118 981 5,404 3,360 Total $ 4,471 $ 2,376 $ 12,280 $ 8,518 |
Stock Based Compensation Stock Option Activity | Stock option activity under the Company’s stock plans is shown below: Number of Weighted- Aggregate Weighted- Outstanding at December 31, 2014 1,433,179 $ 16.23 $ 17,889 4.47 Granted — — Exercised (207,122 ) 15.26 Forfeited/Expired (6,058 ) 24.77 Outstanding at September 30, 2015 1,219,999 $ 16.35 $ 25,108 3.77 Vested and exercisable at September 30, 2015 1,138,136 $ 15.74 $ 24,113 3.58 |
Restricted Stock Units [Member] | |
Restricted Stock Activity Under Company's Stock Plans | Restricted stock and restricted stock unit activity under the Company’s stock plans is shown below: Restricted Stock Restricted Stock Units Number Weighted-Average Intrinsic Value Number Weighted-Average Intrinsic Value Outstanding at December 31, 2014* 46,950 $ 29.29 1,189,691 $ 26.54 Granted 122,131 35.91 471,160 34.99 Vested (34,147 ) 29.29 (320,049 ) 25.15 Forfeited (5,296 ) 29.29 (72,386 ) 27.32 Outstanding at September 30, 2015* 129,638 $ 35.53 1,268,416 $ 29.98 * Excludes 143,224 and 128,000 vested restricted stock units as of September 30, 2015 and December 31, 2014, respectively for which the underlying common stock is yet to be issued. |
Performance Based Stock Awards [Member] | |
Restricted Stock Activity Under Company's Stock Plans | Performance restricted stock unit (the “PRSU’s”) activity under the Company’s stock plans is shown below: Revenue Based PRSU’s Market Condition Based PRSU’s Number Weighted Avg Number Weighted Avg Outstanding at Dec 31, 2014 47,725 $ 25.63 47,725 $ 33.60 Granted 62,788 34.75 162,787 40.36 Vested — — — — Forfeited (3,300 ) 28.53 (3,300 ) 40.29 Outstanding at September 30, 2015 107,213 $ 30.88 207,212 $ 38.80 |
Geographical Information (Table
Geographical Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Text Block [Abstract] | |
Revenues Based on Geographical Information | Three months ended Nine months ended 2015 2014 2015 2014 Revenues, net United States $ 129,886 $ 89,337 $ 364,591 $ 267,638 United Kingdom 28,262 26,060 81,550 74,215 Rest of World 5,355 7,060 16,493 22,139 $ 163,503 $ 122,457 $ 462,634 $ 363,992 |
Fixed Assets, Net Based on Geographical Information | September 30, December 31, 2015 2014 Fixed assets, net India $ 24,383 $ 24,186 United States 8,930 8,293 Philippines 12,338 12,391 Rest of World 1,420 499 $ 47,071 $ 45,369 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accounting Policies [Line Items] | ||||
Reduction in revenues related to reimbursement of transition related costs | $ 0 | $ 9,626 | $ 0 | $ 17,815 |
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. | |||
Service Life [Member] | ||||
Accounting Policies [Line Items] | ||||
Reduction in depreciation expense due to effect of change in estimated useful life of assets | 468 | $ 1,403 | ||
Increase in net income due to effect of change in estimated useful life of assets | $ 281 | $ 842 | ||
Increase in basic and diluted earnings per share due to effect of change in estimated useful life of assets | $ 0.01 | $ 0.02 | ||
Effect of change in accounting estimate description | The effect of change in estimated useful life of assets reduced depreciation expense by $468 and $1,403, increased net income by $281 and $842 and increased basic and diluted earnings per share by $0.01 and $0.02, respectively during the three months and nine months ended September 30, 2015. |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Summary of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 25,232 | $ 24,451 |
Derivative instruments | 1,745 | 2,385 |
Client liability account | 2,546 | 9,241 |
Other current liabilities | 4,716 | 4,129 |
Accrued expenses and other current liabilities | $ 34,239 | $ 40,206 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Summary of Non-current Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Summary of non-current liabilities | ||
Derivative instruments | $ 1,893 | $ 576 |
Unrecognized tax benefits | 4,811 | 2,878 |
Deferred rent | 6,277 | 5,977 |
Retirement benefits | 1,477 | 1,544 |
Other non-current liabilities | 4,513 | 1,895 |
Non-current liabilities | $ 18,971 | $ 12,870 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Summary of Interest and Other Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Nonoperating Income (Expense) [Abstract] | ||||
Interest and dividend income | $ 2,085 | $ 920 | $ 4,997 | $ 2,709 |
Interest expense | (340) | (52) | (983) | (240) |
Others, net | 42 | 176 | 286 | 392 |
Other income, net | $ 1,787 | $ 1,044 | $ 4,300 | $ 2,861 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Summary of Interest and Other Income (Expense), Net (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Other Nonoperating Income (Expense) [Abstract] | ||
Unrealized gain on investments carried at fair value | $ 1,419 | $ 2,179 |
Realized gain on investments carried at fair value | $ 320 | $ 335 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerators: | ||||
Net income | $ 15,162 | $ 6,075 | $ 36,803 | $ 24,985 |
Denominators: | ||||
Basic weighted average common shares outstanding | 33,307,312 | 32,890,475 | 33,320,477 | 32,743,384 |
Dilutive effect of share based awards | 873,323 | 786,190 | 826,643 | 850,920 |
Diluted weighted average common shares outstanding | 34,180,635 | 33,676,665 | 34,147,120 | 33,594,304 |
Earnings per share: | ||||
Basic | $ 0.46 | $ 0.18 | $ 1.10 | $ 0.76 |
Diluted | $ 0.44 | $ 0.18 | $ 1.08 | $ 0.74 |
Weighted average common shares considered anti-dilutive in computing diluted earnings per share | 61,738 | 43,950 | 98,527 | 143,096 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2015Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Revenues
Segment Information - Revenues and Cost of Revenues for Company's Operations Management and Analytics and Business Transformation Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues and cost of revenues for Company's operations management and analytics and business transformation segments [Line Items] | ||||
Revenues, net | $ 163,503 | $ 122,457 | $ 462,634 | $ 363,992 |
Cost of revenues (exclusive of depreciation and amortization) | 103,198 | 84,983 | 296,801 | 241,164 |
Gross profit | 60,305 | 37,474 | 165,833 | 122,828 |
Operating expenses | 39,556 | 32,083 | 116,368 | 95,853 |
Other income/(expense) | 1,978 | 1,686 | 6,647 | 2,533 |
Income tax expense | 7,565 | 1,002 | 19,309 | 4,523 |
Net income | 15,162 | 6,075 | 36,803 | 24,985 |
Operations Management [Member] | ||||
Revenues and cost of revenues for Company's operations management and analytics and business transformation segments [Line Items] | ||||
Revenues, net | 113,977 | 91,155 | 337,244 | 285,560 |
Cost of revenues (exclusive of depreciation and amortization) | 72,032 | 62,870 | 214,032 | 184,263 |
Gross profit | 41,945 | 28,285 | 123,212 | 101,297 |
Analytics and Business Transformation [Member] | ||||
Revenues and cost of revenues for Company's operations management and analytics and business transformation segments [Line Items] | ||||
Revenues, net | 49,526 | 31,302 | 125,390 | 78,432 |
Cost of revenues (exclusive of depreciation and amortization) | 31,166 | 22,113 | 82,769 | 56,901 |
Gross profit | $ 18,360 | $ 9,189 | $ 42,621 | $ 21,531 |
Business Combinations, Goodwi45
Business Combinations, Goodwill and Intangible Assets - Additional Information (Detail) $ in Thousands | Mar. 20, 2015USD ($)Customershares | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) |
Business Acquisition [Line Items] | ||||||
Revenues | $ 163,503 | $ 122,457 | $ 462,634 | $ 363,992 | ||
Amortization expense | 2,642 | 1,441 | 7,509 | 4,467 | ||
Indefinite lived trade names and trademarks | 900 | 900 | $ 900 | |||
United States [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Revenues | 129,886 | $ 89,337 | $ 364,591 | $ 267,638 | ||
RPM Direct LLC and RPM Data Solutions LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, Agreement date | Mar. 20, 2015 | |||||
Business acquisition, cash consideration | $ 46,925 | |||||
Working capital adjustments included in business acquisitions cash consideration | 75 | |||||
Adjustments to purchase price related to financial performance of the Target Companies for 2014 | 0 | |||||
Fair value of earn-out payment | $ 4,060 | |||||
Business acquisition, Number of restricted shares of common stock issued | shares | 122,131 | |||||
Business acquisition, aggregate fair value amount of restricted shares of common stock | $ 4,150 | |||||
Aggregate fair value of restricted stock units granted | $ 3,850 | |||||
Restricted stock units granted | shares | 113,302 | |||||
Number of consumers | Customer | 250,000,000 | |||||
Acquisition related costs | $ 303 | |||||
Revenues | $ 11,557 | $ 23,068 | ||||
RPM Direct LLC and RPM Data Solutions LLC [Member] | United States [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number of consumers | Customer | 120,000,000 | |||||
RPM Direct LLC and RPM Data Solutions LLC [Member] | Maximum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Earn out consideration payable | $ 23,000 | |||||
Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average life of intangible assets | 8 years 9 months 18 days | |||||
Customer Relationships [Member] | RPM Direct LLC and RPM Data Solutions LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Useful life | 5 years 8 months 12 days | |||||
Trade Names [Member] | RPM Direct LLC and RPM Data Solutions LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Useful life | 3 years | |||||
Developed Technology [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average life of intangible assets | 6 years 6 months | |||||
Developed Technology [Member] | RPM Direct LLC and RPM Data Solutions LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Useful life | 5 years | |||||
Non-compete Agreements [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average life of intangible assets | 4 years 6 months | |||||
Non-compete Agreements [Member] | RPM Direct LLC and RPM Data Solutions LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Useful life | 4 years 7 months 6 days | |||||
Leasehold Benefits [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average life of intangible assets | 8 years | |||||
Trade Names and Trademarks [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average life of intangible assets | 6 years 8 months 12 days |
Business Combinations, Goodwi46
Business Combinations, Goodwill and Intangible Assets - Summary of Preliminary Allocation of Purchase Price to Net Tangible and Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Mar. 20, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 171,753 | $ 139,599 | $ 107,407 | |
RPM Direct LLC and RPM Data Solutions LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Net tangible assets | $ 1,790 | |||
Goodwill | 33,155 | |||
Total purchase price | 50,985 | |||
RPM Direct LLC and RPM Data Solutions LLC [Member] | Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 13,260 | |||
RPM Direct LLC and RPM Data Solutions LLC [Member] | Trade Names [Member] | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 680 | |||
RPM Direct LLC and RPM Data Solutions LLC [Member] | Developed Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 1,420 | |||
RPM Direct LLC and RPM Data Solutions LLC [Member] | Non-compete Agreements [Member] | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 680 |
Business Combinations, Goodwi47
Business Combinations, Goodwill and Intangible Assets - Summary of Preliminary Allocation of Purchase Price to Net Tangible and Intangible Assets (Parenthetical) (Detail) $ in Thousands | Mar. 20, 2015USD ($) |
RPM Direct LLC and RPM Data Solutions LLC [Member] | |
Business Acquisition [Line Items] | |
Deposit in escrow accounts in connection with acquisition | $ 4,125 |
Business Combinations, Goodwi48
Business Combinations, Goodwill and Intangible Assets - Summary of Company's Goodwill (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | ||
Beginning Balance | $ 139,599 | $ 107,407 |
Currency translation adjustments | (1,001) | (529) |
Allocation on sale of a business unit | (500) | |
Ending Balance | 171,753 | 139,599 |
Blue Slate Solutions [Member] | ||
Goodwill [Line Items] | ||
Goodwill arising from acquisition | 4,554 | |
Overland Solutions Inc [Member] | ||
Goodwill [Line Items] | ||
Goodwill arising from acquisition | 28,667 | |
RPM Direct LLC and RPM Data Solutions LLC [Member] | ||
Goodwill [Line Items] | ||
Goodwill arising from acquisition | 33,155 | |
Operations Management [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 118,260 | 90,622 |
Currency translation adjustments | (1,001) | (529) |
Allocation on sale of a business unit | (500) | |
Ending Balance | 117,259 | 118,260 |
Operations Management [Member] | Overland Solutions Inc [Member] | ||
Goodwill [Line Items] | ||
Goodwill arising from acquisition | 28,667 | |
Analytics and Business Transformation [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 21,339 | 16,785 |
Ending Balance | 54,494 | 21,339 |
Analytics and Business Transformation [Member] | Blue Slate Solutions [Member] | ||
Goodwill [Line Items] | ||
Goodwill arising from acquisition | $ 4,554 | |
Analytics and Business Transformation [Member] | RPM Direct LLC and RPM Data Solutions LLC [Member] | ||
Goodwill [Line Items] | ||
Goodwill arising from acquisition | $ 33,155 |
Business Combinations, Goodwi49
Business Combinations, Goodwill and Intangible Assets - Summary of Company's Goodwill (Parenthetical) (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Net loss recognized from the sale of business unit | $ 149 |
Business Combinations, Goodwi50
Business Combinations, Goodwill and Intangible Assets - Summary of Company's Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 87,586 | $ 71,694 |
Accumulated Amortization | (32,124) | (24,715) |
Net Carrying Amount | 55,462 | 46,979 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 64,823 | 51,598 |
Accumulated Amortization | (22,240) | (16,836) |
Net Carrying Amount | 42,583 | 34,762 |
Leasehold Benefits [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,814 | 2,927 |
Accumulated Amortization | (2,077) | (2,004) |
Net Carrying Amount | 737 | 923 |
Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 12,234 | 10,814 |
Accumulated Amortization | (3,859) | (2,402) |
Net Carrying Amount | 8,375 | 8,412 |
Non-compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,045 | 1,365 |
Accumulated Amortization | (1,411) | (1,323) |
Net Carrying Amount | 634 | 42 |
Trade Names and Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,670 | 4,990 |
Accumulated Amortization | (2,537) | (2,150) |
Net Carrying Amount | $ 3,133 | $ 2,840 |
Business Combinations, Goodwi51
Business Combinations, Goodwill and Intangible Assets - Estimated Amortization of Intangible Assets (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,016 | $ 10,874 |
2,017 | 10,843 |
2,018 | 10,536 |
2,019 | 10,308 |
2,020 | 4,236 |
2021 and thereafter | $ 7,765 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Money market and mutual funds | $ 113,138 | $ 127,347 |
Derivative financial instruments | 3,600 | 4,579 |
Total | 116,738 | 131,926 |
Liabilities | ||
Derivative financial instruments | 3,638 | 2,961 |
Fair value of earn-out consideration | 4,060 | |
Total | 7,698 | 2,961 |
Level 1 [Member] | ||
Assets | ||
Money market and mutual funds | 113,138 | 127,347 |
Total | 113,138 | 127,347 |
Level 2 [Member] | ||
Assets | ||
Derivative financial instruments | 3,600 | 4,579 |
Total | 3,600 | 4,579 |
Liabilities | ||
Derivative financial instruments | 3,638 | 2,961 |
Total | 3,638 | $ 2,961 |
Level 3 [Member] | ||
Liabilities | ||
Fair value of earn-out consideration | 4,060 | |
Total | $ 4,060 |
Fair Value Measurements - Ass53
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Parenthetical) (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Fair Value, Measurements, Recurring [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Investments carried at fair value | $ 79,174 |
Derivatives and Hedge Account54
Derivatives and Hedge Accounting - Additional Information (Detail) £ in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015GBP (£) | Dec. 31, 2014USD ($) | Dec. 31, 2014GBP (£) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Net derivative gains which could be reclassified into earnings within the next 12 months | $ 242 | ||||||
Maximum outstanding term of cash flow hedges | 45 months | ||||||
Gain/(Losses) that reclassified from AOCI into earning for discontinued hedging transactions | $ 0 | $ 0 | $ 0 | $ 0 | |||
Foreign Currency Exchange Contracts [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Foreign exchange contracts outstanding | $ 295,777 | $ 295,777 | £ 13,936 | $ 276,018 | £ 10,889 |
Derivatives and Hedge Account55
Derivatives and Hedge Accounting - Summary of Fair Value of Foreign Currency Exchange Contracts (Detail) - Foreign Currency Exchange Contracts [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives Designated as Hedging Instruments [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, Asset | $ 1,987 | $ 1,243 |
Derivatives Designated as Hedging Instruments [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, Asset | 1,348 | 3,193 |
Derivatives Designated as Hedging Instruments [Member] | Accrued Expenses and Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, Liability | 1,745 | 2,385 |
Derivatives Designated as Hedging Instruments [Member] | Other Non Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, Liability | 1,893 | 576 |
Derivatives not Designated as Hedging Instruments [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, Asset | $ 265 | $ 143 |
Derivatives and Hedge Account56
Derivatives and Hedge Accounting - Summary of Effect of Foreign Currency Exchange Contracts on Consolidated Statements of Income (Detail) - Foreign Currency Exchange Contracts [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivatives Designated as Hedging Instruments [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion) | $ (3,526) | $ (3,602) | $ (2,741) | $ 5,950 |
Foreign Exchange Gain/(Loss) [Member] | Derivatives not Designated as Hedging Instruments [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in Income on Derivatives | 705 | (9) | 94 | 3,442 |
Foreign Exchange Gain/(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) Reclassified from AOCI into Income (Effective Portion) | (430) | (1,418) | (963) | (5,877) |
Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ 0 | $ 0 | $ 0 | $ 0 |
Fixed Assets - Schedule of Fixe
Fixed Assets - Schedule of Fixed Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Owned Assets: | ||
Owned Assets, Gross | $ 138,466 | $ 127,433 |
Less: Accumulated depreciation and amortization | (91,985) | (82,947) |
Owned Assets, net | 46,481 | 44,486 |
Assets under capital leases: | ||
Assets under capital leases, Gross | 1,802 | 2,028 |
Less: Accumulated depreciation and amortization | (1,212) | (1,145) |
Assets under capital leases, net | 590 | 883 |
Fixed assets, net | 47,071 | 45,369 |
Network Equipment, Computers and Software [Member] | ||
Owned Assets: | ||
Owned Assets, Gross | 91,091 | 83,140 |
Buildings [Member] | ||
Owned Assets: | ||
Owned Assets, Gross | 1,213 | 1,262 |
Land [Member] | ||
Owned Assets: | ||
Owned Assets, Gross | 794 | 826 |
Leasehold Improvements [Member] | ||
Owned Assets: | ||
Owned Assets, Gross | 27,390 | 26,416 |
Assets under capital leases: | ||
Assets under capital leases, Gross | 893 | 961 |
Office Furniture and Equipment [Member] | ||
Owned Assets: | ||
Owned Assets, Gross | 13,397 | 12,218 |
Assets under capital leases: | ||
Assets under capital leases, Gross | 148 | 219 |
Motor Vehicles [Member] | ||
Owned Assets: | ||
Owned Assets, Gross | 531 | 542 |
Assets under capital leases: | ||
Assets under capital leases, Gross | 761 | 848 |
Capital Work in Progress [Member] | ||
Owned Assets: | ||
Owned Assets, Gross | $ 4,050 | $ 3,029 |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 5,415 | $ 5,573 | $ 15,662 | $ 15,582 |
Capital Structure - Additional
Capital Structure - Additional Information (Detail) $ / shares in Units, $ in Thousands | Dec. 31, 2014 | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014shares | Sep. 30, 2015USD ($)ClassOfCommonStock$ / sharesshares | Sep. 30, 2014USD ($)$ / sharesshares | Dec. 30, 2014USD ($) |
Equity, Class of Treasury Stock [Line Items] | ||||||
Class of common stock outstanding | ClassOfCommonStock | 1 | |||||
Acquisition of common stock from employees in connection with withholding tax payments | shares | 0 | 0 | 13,573 | 18,256 | ||
Withholding tax payments related to the vesting of restricted stock for total consideration | $ 421 | $ 459 | ||||
Weighted average purchase price per share prior to the vesting date | $ / shares | $ 30.99 | $ 25.14 | ||||
2014 Repurchase Program [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program, period start | 2,015 | |||||
Stock repurchase program, period end | 2,017 | |||||
Common stock shares purchased under the repurchase program | shares | 220,579 | 354,448 | ||||
Common stock aggregate purchase price including commissions | $ 8,149 | $ 12,834 | ||||
Common stock average purchase price per share | $ / shares | $ 36.94 | $ 36.21 | ||||
2014 Repurchase Program [Member] | Maximum [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Repurchase of common stock authorized by board of directors | $ 20,000 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 24, 2014 | Sep. 30, 2015 | Sep. 30, 2015 | Feb. 23, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||||
Short-term borrowings | $ 10,000 | $ 10,000 | |||
Additional borrowings during period | 30,000 | ||||
Repayments of borrowings | 10,000 | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility | $ 50,000 | $ 70,000 | $ 70,000 | $ 50,000 | |
Term of revolving credit facility | 5 years | ||||
Option to increase additional credit facility | $ 50,000 | $ 50,000 | |||
Credit facility expiration date | Oct. 24, 2019 | ||||
Interest rate during the period | 1.56% | 1.56% | |||
Unamortized deferred finance cost | $ 392 | $ 392 | $ 460 | ||
Short-term borrowings | $ 10,000 | 10,000 | |||
Additional borrowings during period | 30,000 | ||||
Repayments of borrowings | $ 10,000 |
Employee Benefit Plans - Net Gr
Employee Benefit Plans - Net Gratuity Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||||
Service cost | $ 403 | $ 355 | $ 1,241 | $ 1,083 |
Interest cost | 135 | 125 | 417 | 385 |
Expected return on plan assets | (94) | (43) | (291) | (130) |
Actuarial loss | 51 | 29 | 159 | 99 |
Net gratuity cost | $ 495 | $ 466 | $ 1,526 | $ 1,437 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |||||
Percentage of actual return on the Gratuity Plans | 9.00% | ||||
Percentage of discretionary contributions towards 401(k) Plan, Maximum | 3.00% | 3.00% | 3.00% | 3.00% | |
Company's contribution to the 401(k) Plan | $ 400 | $ 192 | $ 1,551 | $ 1,037 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Plan Assets (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Plan assets at January 1, 2015 | $ 4,752 |
Actual return | 317 |
Benefits Paid | (624) |
Effect of exchange rate changes | (175) |
Plan assets at September 30, 2015 | $ 4,270 |
Employee Benefit Plans - Contri
Employee Benefit Plans - Contribution to Various Defined Contribution Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||||
Contribution to various defined contribution plans | $ 1,463 | $ 1,418 | $ 4,393 | $ 4,279 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments under Capital Leases (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Leases [Abstract] | ||
2,016 | $ 541 | |
2,017 | 236 | |
2,018 | 90 | |
2,019 | 10 | |
Total minimum lease payments | 877 | |
Less: amount representing interest | 92 | |
Present value of minimum lease payments | 785 | |
Less: current portion | 481 | $ 803 |
Long term capital lease obligation | 304 | $ 560 |
Present value of minimum lease payments | $ 785 |
Leases - Future Minimum Lease66
Leases - Future Minimum Lease Payments under Non-Cancelable Operating Lease Agreements Expiring after September 30, 2015 (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Leases [Abstract] | |
2,016 | $ 8,684 |
2,017 | 4,987 |
2,018 | 3,311 |
2,019 | 2,239 |
2,020 | 1,273 |
2021 and thereafter | 1,106 |
Total operating lease payments | $ 21,600 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Leases [Abstract] | |||||
Rent expense under both cancelable and non-cancelable operating leases | $ 4,994 | $ 4,897 | $ 15,089 | $ 14,153 | |
Deferred rent | $ 6,789 | $ 6,789 | $ 6,544 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rates | 33.30% | 14.20% | 34.40% | 15.30% | |
Income tax expense | $ 7,565 | $ 1,002 | $ 19,309 | $ 4,523 | |
Increase in unrecognized tax benefit | 2,400 | ||||
Increases in unrecognized tax benefit related to taxability of income by certain foreign income | 1,900 | ||||
Increase in effective tax rate due to reversal of an unrecognized tax benefit | $ 2,173 | ||||
Unrecognized tax benefits | 4,511 | 4,511 | $ 2,761 | ||
Recognized interest and penalties | 74 | $ 54 | |||
Accrued interest on unrecognized tax benefits | $ 1,300 | $ 1,300 | $ 1,117 |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Gross Unrecognized Tax Benefits (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Income Tax Disclosure [Abstract] | |
Balance as of January 1, 2015 | $ 2,761 |
Increases related to prior year tax positions | 1,818 |
Decreases related to prior year tax positions | 0 |
Increases related to current year tax positions | 0 |
Decreases related to current year tax positions | 0 |
Effect of exchange rate changes | (68) |
Balance as of September 30, 2015 | $ 4,511 |
Stock-Based Compensation - Cost
Stock-Based Compensation - Costs Related to Company's Stock-Based Compensation Plan (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expenses | $ 4,471 | $ 2,376 | $ 12,280 | $ 8,518 |
Cost of Revenue [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expenses | 740 | 410 | 2,394 | 1,873 |
General and Administrative Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expenses | 1,613 | 985 | 4,482 | 3,285 |
Selling and Marketing Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expenses | $ 2,118 | $ 981 | $ 5,404 | $ 3,360 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jun. 19, 2015 | |
Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost for unvested options | $ 292 | $ 292 | |||
Expected to be expensed over weighted average period | 4 months 2 days | ||||
Weighted-average fair value of options granted | $ 0 | $ 9.77 | |||
Total grant date fair value of options vested | 0 | $ 693 | $ 1,170 | $ 1,917 | |
Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost for unvested Stock Units | 33,834 | $ 33,834 | |||
Expected to be expensed over weighted average period | 2 years 8 months 27 days | ||||
Performance Based Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost for unvested Stock Units | $ 8,570 | $ 8,570 | |||
Expected to be expensed over weighted average period | 2 years 1 month 2 days | ||||
2015 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Increase in number of shares reserved for grants | 1,700,000 | ||||
Shares available for grant | 2,418,055 | 2,418,055 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Based Compensation Stock Option Activity (Detail) - Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options, Outstanding, Beginning Balance | 1,433,179 | |
Number of Options, Granted | 0 | |
Number of Options, Exercised | (207,122) | |
Number of Options, Forfeited/Expired | (6,058) | |
Number of Options, Outstanding, Ending Balance | 1,219,999 | 1,433,179 |
Number of Options, Vested and exercisable at September 30, 2015 | 1,138,136 | |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ 16.23 | |
Weighted-Average Exercise Price, Granted | 0 | |
Weighted-Average Exercise Price, Exercised | 15.26 | |
Weighted-Average Exercise Price, Forfeited/Expired | 24.77 | |
Weighted-Average Exercise Price, Outstanding, Ending Balance | 16.35 | $ 16.23 |
Weighted Average Exercise Price, Vested and exercisable | $ 15.74 | |
Aggregate Intrinsic Value, Outstanding, Beginning Balance | $ 17,889 | |
Aggregate Intrinsic Value, Outstanding, Ending Balance | 25,108 | $ 17,889 |
Aggregate Intrinsic Value, Vested and exercisable at September 30, 2015 | $ 24,113 | |
Weighted-Average Remaining Contractual Life (Years), Outstanding | 3 years 9 months 7 days | 4 years 5 months 19 days |
Weighted-Average Remaining Contractual Life (Years), Vested and exercisable at September 30, 2015 | 3 years 6 months 29 days |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity Under Company's Stock Plans (Detail) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number, Outstanding, Beginning Balance | 1,189,691 |
Number, Granted | 471,160 |
Number, Vested | (320,049) |
Number, Forfeited | (72,386) |
Number, Outstanding, Ending Balance | 1,268,416 |
Weighted-Average Intrinsic Value, Outstanding, Beginning Balance | $ / shares | $ 26.54 |
Weighted-Average Intrinsic Value, Granted | $ / shares | 34.99 |
Weighted-Average Intrinsic Value, Vested | $ / shares | 25.15 |
Weighted-Average Intrinsic Value, Forfeited | $ / shares | 27.32 |
Weighted-Average Intrinsic Value, Outstanding, Ending Balance | $ / shares | $ 29.98 |
Revenue Based Performance Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number, Outstanding, Beginning Balance | 47,725 |
Number, Granted | 62,788 |
Number, Forfeited | (3,300) |
Number, Outstanding, Ending Balance | 107,213 |
Weighted-Average Intrinsic Value, Outstanding, Beginning Balance | $ / shares | $ 25.63 |
Weighted-Average Intrinsic Value, Granted | $ / shares | 34.75 |
Weighted-Average Intrinsic Value, Forfeited | $ / shares | 28.53 |
Weighted-Average Intrinsic Value, Outstanding, Ending Balance | $ / shares | $ 30.88 |
Market Condition Based Performance Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number, Outstanding, Beginning Balance | 47,725 |
Number, Granted | 162,787 |
Number, Forfeited | (3,300) |
Number, Outstanding, Ending Balance | 207,212 |
Weighted-Average Intrinsic Value, Outstanding, Beginning Balance | $ / shares | $ 33.60 |
Weighted-Average Intrinsic Value, Granted | $ / shares | 40.36 |
Weighted-Average Intrinsic Value, Forfeited | $ / shares | 40.29 |
Weighted-Average Intrinsic Value, Outstanding, Ending Balance | $ / shares | $ 38.80 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number, Outstanding, Beginning Balance | 46,950 |
Number, Granted | 122,131 |
Number, Vested | (34,147) |
Number, Forfeited | (5,296) |
Number, Outstanding, Ending Balance | 129,638 |
Weighted-Average Intrinsic Value, Outstanding, Beginning Balance | $ / shares | $ 29.29 |
Weighted-Average Intrinsic Value, Granted | $ / shares | 35.91 |
Weighted-Average Intrinsic Value, Vested | $ / shares | 29.29 |
Weighted-Average Intrinsic Value, Forfeited | $ / shares | 29.29 |
Weighted-Average Intrinsic Value, Outstanding, Ending Balance | $ / shares | $ 35.53 |
Stock-Based Compensation - Re74
Stock-Based Compensation - Restricted Stock Activity Under Company's Stock Plans (Parenthetical) (Detail) - shares | Sep. 30, 2015 | Dec. 31, 2014 |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units vested for which underlying common stock to be issued | 143,224 | 128,000 |
Geographical Information - Reve
Geographical Information - Revenues Based on Geographical Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues, net | ||||
Revenues, net | $ 163,503 | $ 122,457 | $ 462,634 | $ 363,992 |
United States [Member] | ||||
Revenues, net | ||||
Revenues, net | 129,886 | 89,337 | 364,591 | 267,638 |
United Kingdom [Member] | ||||
Revenues, net | ||||
Revenues, net | 28,262 | 26,060 | 81,550 | 74,215 |
Rest of World [Member] | ||||
Revenues, net | ||||
Revenues, net | $ 5,355 | $ 7,060 | $ 16,493 | $ 22,139 |
Geographical Information - Fixe
Geographical Information - Fixed Assets, Net Based on Geographical Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fixed assets, net | ||
Total Fixed assets | $ 47,071 | $ 45,369 |
India [Member] | ||
Fixed assets, net | ||
Total Fixed assets | 24,383 | 24,186 |
United States [Member] | ||
Fixed assets, net | ||
Total Fixed assets | 8,930 | 8,293 |
Philippines [Member] | ||
Fixed assets, net | ||
Total Fixed assets | 12,338 | 12,391 |
Rest of World [Member] | ||
Fixed assets, net | ||
Total Fixed assets | $ 1,420 | $ 499 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase commitments, net of advances | $ 3,404 | |
Export-oriented units established percentage | 100.00% | |
Transfer pricing issues starting period | 2,003 | |
Transfer pricing issues ending period | 2,011 | |
Permanent establishment issues starting period | 2,003 | |
Permanent establishment issues ending period | 2,011 | |
Aggregate disputed amount | $ 19,265 | $ 22,866 |
Payments or bank guarantees provided | 14,703 | 14,666 |
Amounts paid as deposits in respect of contingencies | 12,683 | 12,564 |
Deposited amounts for bank guarantees | $ 2,020 | $ 2,102 |