Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 25, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
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 | 33,472,670 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 95,774 | $ 205,323 |
Short-term investments | 97,079 | 13,676 |
Restricted cash | 2,722 | 1,872 |
Accounts receivable, net | 107,601 | 92,650 |
Prepaid expenses | 8,426 | 8,027 |
Advance income tax, net | 6,406 | 2,432 |
Other current assets | 19,746 | 15,219 |
Total current assets | 337,754 | 339,199 |
Fixed assets, net | 47,540 | 47,991 |
Restricted cash | 3,380 | 3,319 |
Deferred tax assets, net | 9,711 | 13,749 |
Intangible assets, net | 50,013 | 52,733 |
Goodwill | 171,498 | 171,535 |
Other assets | 22,384 | 22,257 |
Total assets | 642,280 | 650,783 |
Current liabilities: | ||
Accounts payable | 3,146 | 6,401 |
Short-term borrowings | 10,000 | 10,000 |
Deferred revenue | 13,667 | 11,518 |
Accrued employee cost | 24,644 | 44,526 |
Accrued expenses and other current liabilities | 37,901 | 34,250 |
Current portion of capital lease obligations | 286 | 384 |
Total current liabilities | 89,644 | 107,079 |
Long term borrowings | 55,000 | 60,000 |
Capital lease obligations, less current portion | 278 | 278 |
Non-current liabilities | 13,565 | 17,655 |
Total liabilities | 158,487 | $ 185,012 |
Commitments and contingencies | ||
Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued | 0 | $ 0 |
ExlService Holdings, Inc. stockholders’ equity: | ||
Common stock, $0.001 par value; 100,000,000 shares authorized, 35,252,413 shares issued and 33,409,249 shares outstanding as of March 31, 2016 and 34,781,201 shares issued and 33,091,223 shares outstanding as of December 31, 2015 | 35 | 35 |
Additional paid-in-capital | 261,871 | 254,052 |
Retained earnings | 334,809 | 320,989 |
Accumulated other comprehensive loss | (64,087) | (67,325) |
Total including shares held in treasury | 532,628 | 507,751 |
Less: 1,843,164 shares as of March 31, 2016 and 1,689,978 shares as of December 31, 2015, held in treasury, at cost | (49,014) | (42,159) |
ExlService Holdings, Inc. stockholders' equity | 483,614 | 465,592 |
Non-controlling interest | 179 | 179 |
Total equity | 483,793 | 465,771 |
Total liabilities and equity | $ 642,280 | $ 650,783 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 35,252,413 | 34,781,201 |
Common stock, shares outstanding (in shares) | 33,409,249 | 33,091,223 |
Treasury stock (in shares) | 1,843,164 | 1,689,978 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Revenues, net | $ 167,036 | $ 143,510 |
Cost of revenues (exclusive of depreciation and amortization) | 108,379 | 93,125 |
Gross profit | 58,657 | 50,385 |
Operating expenses: | ||
General and administrative expenses | 20,618 | 18,621 |
Selling and marketing expenses | 13,454 | 11,243 |
Depreciation and amortization | 8,133 | 7,053 |
Total operating expenses | 42,205 | 36,917 |
Income from operations | 16,452 | 13,468 |
Other income/(expense) : | ||
Foreign exchange gain | 469 | 1,134 |
Other income, net | 2,794 | 1,178 |
Income before income taxes | 19,715 | 15,780 |
Income tax expense | 5,895 | 6,213 |
Net income | $ 13,820 | $ 9,567 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.41 | $ 0.29 |
Diluted (in dollars per share) | $ 0.40 | $ 0.28 |
Weighted-average number of shares used in computing earnings per share: | ||
Basic weighted average common shares outstanding (in shares) | 33,380,028 | 33,236,259 |
Diluted weighted average common shares outstanding (in shares) | 34,351,657 | 34,051,971 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income/(Loss) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 13,820 | $ 9,567 | |
Other comprehensive income/(loss): | |||
Unrealized gain on effective cash flow hedges, net of taxes $403 and $453, respectively | 2,034 | 1,806 | |
Foreign currency translation adjustment | 1,033 | 302 | |
Retirement benefits, net of taxes $5 and $6, respectively | 182 | 151 | |
Reclassification adjustments | |||
Realized (gain)/loss on cash flow hedges, net of taxes ($25) and $126, respectively | [1] | (32) | 183 |
Retirement benefits, net of taxes $1 and $3, respectively | [2] | 21 | 52 |
Total other comprehensive income | 3,238 | 2,494 | |
Total comprehensive income | $ 17,058 | $ 12,061 | |
[1] | These are reclassified to net income and are included in the foreign exchange gain/(loss) in the unaudited consolidated statements of income. See Note 7 to the consolidated financial statements. | ||
[2] | These are reclassified to net income and are included in the computation of net periodic pension costs in the unaudited consolidated statements of income. See Note 11 to the consolidated financial statements. |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income/(Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized gain/(loss) on effective cash flow hedges, taxes | $ 403 | $ 453 |
Retirement benefits, taxes | 5 | 6 |
Realized loss on cash flow hedges, taxes | (25) | 126 |
Retirement benefits, taxes | $ 1 | $ 3 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 13,820 | $ 9,567 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 8,133 | 7,053 |
Stock-based compensation expense | 5,809 | 4,255 |
Unrealized gain on short term investments | (1,525) | (42) |
Change in fair value of earn-out consideration | (250) | 0 |
Unrealized foreign exchange (gain)/loss | (1,061) | 284 |
Deferred income taxes | 3,646 | 2,804 |
Others, net | (12) | 29 |
Change in operating assets and liabilities (net of effect of acquisitions): | ||
Restricted cash | (919) | (1,477) |
Accounts receivable | (14,490) | (5,779) |
Prepaid expenses and other current assets | (3,641) | (2,799) |
Accounts payable | (2,584) | (984) |
Deferred revenue | 2,334 | 3,834 |
Accrued employee costs | (19,567) | (16,398) |
Accrued expenses and other liabilities | 4,147 | (497) |
Advance income tax, net | (4,429) | 544 |
Other assets | 148 | (257) |
Net cash (used for) / provided by operating activities | (10,441) | 137 |
Cash flows from investing activities: | ||
Purchase of fixed assets | (8,457) | (8,845) |
Business acquisition (net of cash acquired) | 0 | (44,419) |
Purchase of short-term investments | (101,327) | (5,995) |
Proceeds from redemption of short-term investments | 20,004 | 3,079 |
Net cash used for investing activities | (89,780) | (56,180) |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | (123) | (223) |
Proceeds from borrowings | 0 | 30,000 |
Repayments of borrowings | (5,000) | 0 |
Payment of debt issuance costs | 0 | (50) |
Acquisition of treasury stock | (6,855) | (397) |
Proceeds from exercise of stock options | 2,010 | 1,883 |
Net cash (used for)/provided by financing activities | (9,968) | 31,213 |
Effect of exchange rate changes on cash and cash equivalents | 640 | (350) |
Net decrease in cash and cash equivalents | (109,549) | (25,180) |
Cash and cash equivalents, beginning of year | 205,323 | 176,499 |
Cash and cash equivalents, end of year | $ 95,774 | $ 151,319 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | 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 Operations Management and Analytics company that helps businesses enhance growth and profitability. Using its proprietary platforms, methodologies and tools the Company looks deeper to help companies improve global operations, enhance data-driven insights, increase customer satisfaction, and manage risk and compliance. 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, 2015. 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. Effective for the quarter and year ended December 31, 2015, the Company merged two of its operating segments (Operations Consulting and Finance Transformation, previously part of the Analytics and Business Transformation reportable segment) into the Consulting operating segment to reflect recent organizational changes. The Company has also revised its reportable segments to reflect management’s focus on the Analytics operating segment. All other operating segments have been aggregated into the Operations Management reportable segment. The Company’s reportable segments are as follows: • Operations Management, and • Analytics. The segment information for all prior periods presented herein has been restated to conform to the current presentation. This change in segment presentation does not affect the Company’s consolidated statements of income, balance sheets or statements of cash flows. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Principles of Consolidation The accompanying unaudited consolidated financial statements include the financial statements of ExlService Holdings and all of its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The non-controlling interest at March 31, 2016 represents the minority partner’s interest in the operations of ExlService Colombia S.A.S. ("Exl Colombia") and the profits associated with the minority partner’s interest in those operations, in the consolidated balance sheets and consolidated statements of income, respectively. The non-controlling interest in such operations for the three months ended March 31, 2016 was insignificant and is included under general and administrative expenses in the unaudited consolidated statements of income. (b) 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. (c) Other current assets Other current assets consists of the following: March 31, 2016 December 31, 2015 Derivative instruments $ 3,831 $ 3,009 Advances to suppliers 1,534 1,545 Receivables from statutory authorities 9,372 8,676 Others 5,009 1,989 Other current assets $ 19,746 $ 15,219 (d) Accrued expenses and other current liabilities Accrued expenses and other current liabilities consists of the following: March 31, 2016 December 31, 2015 Accrued expenses $ 25,264 $ 26,238 Derivative instruments 413 1,226 Client liability account 2,972 2,217 Other current liabilities 9,252 4,569 Accrued expenses and other current liabilities $ 37,901 $ 34,250 (e) Non-current liabilities Non-current liabilities consists of the following: March 31, 2016 December 31, 2015 Derivative instruments $ 568 $ 1,132 Unrecognized tax benefits 3,112 3,066 Deferred rent 6,864 6,515 Retirement benefits 1,472 1,441 Other non-current liabilities 1,549 5,501 Non-current liabilities $ 13,565 $ 17,655 (f) Accumulated Other Comprehensive Loss For the Company, accumulated other comprehensive loss consists of amortization of actuarial gain/(loss) on retirement benefits and changes in the cumulative foreign currency translation adjustments. In addition, the Company enters into foreign currency exchange contracts, which are designated as cash flow hedges in accordance with ASC topic 815, "Derivatives and Hedging" ("ASC 815"). Changes in the fair values of contracts that are deemed effective are recorded as a component of accumulated other comprehensive loss until the settlement of those contracts. The balances as of March 31, 2016 and December 31, 2015 are as follows: December 31, 2015 December 31, 2015 Cumulative currency translation adjustments $ (67,030 ) $ (68,063 ) Unrealized gain on cash flow hedges, net of taxes of $1,035 and $657 2,826 824 Retirement benefits, net of taxes of ($194) and ($201) 117 (86 ) Accumulated other comprehensive loss $ (64,087 ) $ (67,325 ) (g) Other Income, net Other income, net consists of the following: Three months ended March 31, 2016 2015 Interest and dividend income* $ 2,222 $ 1,402 Interest expense (385 ) (283 ) Change in fair value of earn-out consideration** 250 — Other, net 707 59 Other income, net $ 2,794 $ 1,178 * Includes unrealized gain of $1,525 and $42 on investments carried under ASC topic 825, "Financial Instruments" ("ASC 825"), fair value option for the three months ended March 31, 2016 and 2015 respectively. ** Reduction in the Company's liability of earn-out consideration related to its acquisition of RPM Direct, LLC and RPM Data Solutions, LLC (the "RPM Acquisition") from $4,060 as of December 31, 2015 to $3,810 as of March 31, 2016 recognized as other income. 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”. 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 No. 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 No. 2014-09; or (ii) retrospectively with the cumulative effect of initially applying ASU No. 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU No. 2014-09. The Company is currently evaluating the impact of adoption and the implementation approach to be used. In January 2016, FASB issued ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities". This guidance makes targeted improvements to existing US GAAP for financial instruments, including requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; requiring entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset and requiring entities to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017. Early adoption of the own credit provision is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). ASU No. 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU No. 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU No. 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU No. 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and the implementation approach to be used. In March 2016, FASB issued ASU No. 2016-05, Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The new guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. An entity has the option to apply ASU No. 2016-05 on either a prospective basis or a modified retrospective basis. Early adoption is permitted. The adoption of ASU No. 2016-05 is not expected to have a material effect on the Company's consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, “Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” Among other things, the amendments in ASU No. 2016-07 eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). ASU No. 2016-08 clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718). ASU No. 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted but all of the guidance must be adopted in the same period. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 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 March 31, 2016 2015 Numerators: Net income $ 13,820 $ 9,567 Denominators: Basic weighted average common shares outstanding 33,380,028 33,236,259 Dilutive effect of share based awards 971,629 815,712 Diluted weighted average common shares outstanding 34,351,657 34,051,971 Earnings per share: Basic $ 0.41 $ 0.29 Diluted $ 0.40 $ 0.28 Weighted average common shares considered anti-dilutive in computing diluted earnings per share 200,752 188,044 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's operating segments are significant strategic business units that align its products and services with how it manages its business, approach the key markets and interacts with its clients. Effective for the quarter and year ended December 31, 2015, the Company merged two of its operating segments (Operations Consulting and Finance Transformation, previously part of the Analytics and Business Transformation reportable segment) into the Consulting operating segment to reflect recent organizational changes. The Company has also revised its reportable segments to reflect management’s focus on the Analytics operating segment. All the other operating segments have been aggregated into the Operations Management reportable segment. The new reportable segments are as follows: • Operations Management • Analytics The Company has restated the segment information for the all prior periods presented herein to conform to the current presentation. This change in segment presentation does not affect the Company's consolidated statements of income, balance sheets or statements of cash flows. The chief operating decision maker (“CODM”) generally reviews operating segment revenues and cost of revenues. The Company does not allocate and therefore the CODM does not evaluate operating expenses, interest expense and income taxes by segment. The Company’s operating assets are shared by multiple segments. The Company manages assets on a total company basis, not by operating segment, and therefore asset information and capital expenditures by operating segment are not presented. Revenues and cost of revenues for the three months ended March 31, 2016 and 2015 for Operations Management and Analytics segments, respectively, are as follows: Three Months Ended Three Months Ended Operations Management Analytics Total Operations Management Analytics Total Revenues, net $ 128,070 $ 38,966 $ 167,036 $ 123,853 $ 19,657 $ 143,510 Cost of revenues (exclusive of depreciation and amortization) 83,608 24,771 108,379 79,729 13,396 93,125 Gross profit $ 44,462 $ 14,195 $ 58,657 $ 44,124 $ 6,261 $ 50,385 Operating expenses 42,205 36,917 Foreign exchange gain and other income, net 3,263 2,312 Income tax expense 5,895 6,213 Net income $ 13,820 $ 9,567 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table sets forth details of the Company’s goodwill balance as of March 31, 2016 : Operations Management Analytics Total Balance at January 1, 2015 $ 122,814 $ 16,785 $ 139,599 Goodwill arising from RPM acquisition — 33,155 33,155 Currency translation adjustments (1,219 ) — (1,219 ) Balance at December 31, 2015 $ 121,595 $ 49,940 $ 171,535 Currency translation adjustments (37 ) — (37 ) Balance at March 31, 2016 $ 121,558 $ 49,940 $ 171,498 Intangible Assets Information regarding the Company’s intangible assets is set forth below: As of March 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 64,815 $ (26,193 ) $ 38,622 Developed technology 12,234 (4,866 ) 7,368 Trade names and trademarks 5,670 (2,828 ) 2,842 Leasehold benefits 2,785 (2,157 ) 628 Non-compete agreements 2,045 (1,492 ) 553 $ 87,549 $ (37,536 ) $ 50,013 As of December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 64,816 $ (24,215 ) $ 40,601 Developed technology 12,234 (4,363 ) 7,871 Trade names and trademarks 5,670 (2,683 ) 2,987 Leasehold benefits 2,789 (2,109 ) 680 Non-compete agreements 2,045 (1,451 ) 594 $ 87,554 $ (34,821 ) $ 52,733 Amortization expense for the three months ended March 31, 2016 and 2015 was $2,715 and $2,059 , respectively. The remaining weighted average life of intangible assets was 6.2 years for customer relationships, 3.2 years for leasehold benefits, 4.5 years for developed technology, 3.3 years for non-compete agreements and 6.0 years for trade names and trademarks excluding indefinite life trade names and trademarks. The Company has $900 of indefinite lived trade names and trademarks as of March 31, 2016 and December 31, 2015 . Estimated amortization of intangible assets during the year ending March 31, 2017 $ 10,866 2018 $ 10,731 2019 $ 10,416 2020 $ 8,354 2021 $ 8,746 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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 as of March 31, 2016 and December 31, 2015 . The table excludes accounts receivable, accounts payable and accrued expenses for which fair values approximate their carrying amounts. As of March 31, 2016 Level 1 Level 2 Level 3 Total Assets Money market and mutual funds* $ 102,686 $ — $ — $ 102,686 Derivative financial instruments — 5,003 — 5,003 Total $ 102,686 $ 5,003 $ — $ 107,689 Liabilities Derivative financial instruments $ — $ 981 $ — $ 981 Fair value of earn-out consideration — — 3,810 3,810 Total $ — $ 981 $ 3,810 $ 4,791 As of December 31, 2015 Level 1 Level 2 Level 3 Total Assets Money market and mutual funds $ 118,478 $ — $ — $ 118,478 Derivative financial instruments — 4,184 — 4,184 Total $ 118,478 $ 4,184 $ — $ 122,662 Liabilities Derivative financial instruments $ — $ 2,358 $ — $ 2,358 Fair value of earn-out consideration — — 4,060 4,060 Total $ — $ 2,358 $ 4,060 $ 6,418 * Includes short-term investments carried on fair value option under ASC 825 of $82,536 as of March 31, 2016. Derivative Financial Instruments: The Company’s derivative financial instruments consist of foreign currency forward exchange contracts. Fair values for derivative financial instruments are based on independent sources including highly rated financial institutions and are classified as Level 2. See Note 7 to our unaudited consolidated financial statements contained herein for further details on Derivatives and Hedge Accounting. Fair value of earn-out consideration: The fair value measurement of earn-out consideration is determined using Level 3 inputs. The Company’s earn-out consideration represents a component of the total purchase consideration for its March 2015 acquisition of RPM Direct, LLC and RPM Data Solutions, LLC (together "RPM"). The measurement is calculated using unobservable inputs based on the Company’s own assessment of achievement of certain performance goals by RPM during the 2015 and 2016 calendar years. As of March 31, 2016 and December 31, 2015, the Company estimated the fair value of the earn out consideration to be $3,810 and $4,060 , respectively, utilizing a Monte Carlo simulation. The Monte-Carlo simulation model simulates a range of possible performance levels and estimates the probabilities of the potential payouts. This model also incorporates a range of assumptions like discount rate, risk-free rate, assumed cost of debt, etc. |
Derivatives and Hedge Accountin
Derivatives and Hedge Accounting | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedge Accounting | 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 815. The Company had outstanding cash flow hedges totaling $218,365 as of March 31, 2016 and $230,894 as of December 31, 2015. The fair value of these cash flow hedges is included in the other comprehensive loss on the Company's unaudited consolidated balance sheet. The Company also enters into foreign currency forward contracts to economically hedge its intercompany balances and other monetary assets and liabilities denominated in currencies other than functional currencies. These derivatives do not qualify as fair value hedges under ASC No. 815. Changes in the fair value of these derivatives are recognized in the consolidated statements of income and are included in foreign exchange gain/loss. The Company’s primary exchange rate exposure is with the Indian Rupee, the U.K. pound sterling and the Philippine peso. The Company also has exposure to Colombian pesos, Czech Koruna, Euro, South African ZAR and other local currencies in which it operates. Outstanding foreign currency forward contracts amounted to $59,290 and GBP 14,147 as of March 31, 2016 and amounted to $61,641 and GBP 13,256 as of December 31, 2015. The Company estimates that approximately $3,257 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 March 31, 2016 . At March 31, 2016 , the maximum outstanding term of the cash flow hedges was forty-five months . The Company evaluates hedge effectiveness at the time a contract is entered into as well as on an ongoing basis. If during this time, a contract is deemed ineffective, the change in the fair value is recorded in the consolidated statements of income and is included in foreign exchange gain/(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. There were no such significant amounts of gains or losses that were reclassified from AOCI into earnings during the three months ended March 31, 2016 and 2015 . 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: March 31, 2016 December 31, 2015 Other current assets: Foreign currency exchange contracts $ 3,670 $ 2,664 Other assets: Foreign currency exchange contracts $ 1,172 $ 1,175 Accrued expenses and other current liabilities: Foreign currency exchange contracts $ 413 $ 1,226 Other non current liabilities: Foreign currency exchange contracts $ 568 $ 1,132 Derivatives not designated as hedging instruments: March 31, 2016 December 31, 2015 Other current assets: Foreign currency exchange contracts $ 161 $ 345 The following tables set forth the effect of foreign currency exchange contracts on the unaudited consolidated statements of income for the three months ended March 31, 2016 and 2015 : Derivatives in Cash Flow Hedging Relationships Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion) Amount of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion) Location of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) 2016 2015 2016 2015 2016 2015 Foreign exchange contracts $ 2,437 $ 2,259 Foreign exchange gain/(loss) $ 57 $ (309 ) Foreign exchange gain/(loss) $ — $ — Derivatives not designated as Hedging Instruments Amount of Gain/(Loss) Recognized in Income on Derivatives Location of Gain or (Loss) Recognized in Income on Derivatives 2016 2015 Foreign exchange contracts Foreign exchange gain/(loss) $ 1,729 $ 2,096 |
Fixed Assets
Fixed Assets | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Fixed Assets Fixed assets consist of the following: March 31, 2016 December 31, 2015 Owned Assets: Network equipment, computers and software $ 98,600 $ 95,245 Leasehold improvements 29,037 28,603 Office furniture and equipment 14,283 14,000 Capital work in progress 4,166 3,140 Buildings 1,200 1,202 Land 786 787 Motor vehicles 567 540 148,639 143,517 Less: Accumulated depreciation and amortization (101,583 ) (96,079 ) $ 47,056 $ 47,438 Assets under capital leases: Leasehold improvements $ 874 $ 877 Office furniture and equipment 134 136 Motor vehicles 813 806 1,821 1,819 Less: Accumulated depreciation and amortization (1,337 ) (1,266 ) $ 484 $ 553 Fixed assets, net $ 47,540 $ 47,991 Depreciation and amortization expense excluding amortization of acquisition-related intangibles for the three months ended March 31, 2016 and 2015 was $5,418 , and $4,994 , respectively. Capital work in progress represents advances paid towards acquisition of fixed assets and cost of fixed assets and internally generated software costs not yet ready to be placed in service. |
Capital Structure
Capital Structure | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Capital Structure | Capital Structure Common Stock The Company has one class of common stock outstanding. During the three months ended March 31, 2016 and 2015 , the Company acquired 14,548 and 12,866 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 $652 and $397 , respectively. The weighted average purchase price of $44.83 and $30.83 , respectively, was the average of the high and low price of a share of the Company’s 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 up to an annual $20,000 common stock repurchase program (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 ended March 31, 2016 , the Company purchased 138,638 shares of its common stock for an aggregate purchase price of approximately $6,202 including commissions, representing an average purchase price per share of $44.74 under the 2014 Repurchase program. There were no such shares of common stock purchased during the three months ended March 31, 2015. Repurchased shares have been recorded as treasury shares and will be held until the Board of Directors designates that these shares be retired or used for other purposes. |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Borrowings | 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 provided 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 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 $65,000 and $70,000 as of March 31, 2016 and December 31, 2015, respectively, of which $10,000 is expected to be repaid within next twelve months and is included under “short-term borrowings” in the unaudited consolidated balance sheets. The Credit Facility carried an effective interest rate of 1.90% per annum and 1.56% per annum, respectively during the three months ended March 31, 2016 and 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 as of March 31, 2016 and December 31, 2015 was $344 and $368 , respectively and is included under "other current assets" and "other assets" in the unaudited consolidated balance sheets. 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. As of March 31, 2016, the Company was in compliance with all covenants. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company’s Gratuity Plans in India and the Philippines ("Gratuity Plan") provide for lump sum payment to vested employees on 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 Plan are accrued in the year to which they relate. Actuarial gains or losses or prior service costs, if any, resulting from amendments to the plans are recognized and amortized over the remaining period of service of the employees. Net gratuity cost includes the following components: Three months ended March 31, 2016 2015 Service cost $ 400 $ 423 Interest cost 149 142 Expected return on plan assets (104 ) (100 ) Actuarial loss 22 55 Net gratuity cost $ 467 $ 520 The Gratuity Plan in India is partially funded. The Company makes annual contributions to the employees' gratuity fund established with 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, 2016. Change in Plan Assets Plan assets at January 1, 2016 $ 4,923 Actual return 109 Benefits paid (253 ) Effect of exchange rate changes (10 ) Plan assets at March 31, 2016 $ 4,769 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 $932 and $768 during the three months ended March 31, 2016 and 2015, respectively. During the three months ended March 31, 2016 and 2015 , the Company contributed $1,466 and $1,465 , respectively for various defined contribution plans on behalf of its employees in India, the Philippines, Romania, Bulgaria, Colombia and the Czech Republic. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2016 | |
Leases [Abstract] | |
Leases | 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 March 31, 2016 are as follows: Year ending March 31, 2017 $ 358 2018 168 2019 83 2020 41 Total minimum lease payments 650 Less: amount representing interest 86 Present value of minimum lease payments 564 Less: current portion 286 Long term capital lease obligation $ 278 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 March 31, 2016 are set forth below: Year ending March 31, 2017 $ 7,729 2018 5,642 2019 4,506 2020 3,303 2021 1,986 2022 and thereafter 1,101 $ 24,267 The operating leases are subject to renewal periodically and have scheduled rent increases. The Company recognizes rent on such leases on a straight line basis over the non-cancelable lease period determined under ASC topic 840, “Leases”. Rent expense under both cancelable and non-cancelable operating leases was $5,148 and $4,985 for the three months ended March 31, 2016 and 2015 , respectively. Deferred rent as of March 31, 2016 and December 31, 2015 was $7,419 and $7,066 , respectively, and is included under “Accrued expenses and other current liabilities” and “Non-current liabilities” in the consolidated balance sheets. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 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 $5,895 and $6,213 for the three months ended March 31, 2016 and 2015, respectively. The effective tax rate decreased from 39.4% during the three months ended March 31, 2015 to 29.9% during the three months ended March 31, 2016. The decrease was the result of a higher income tax expense during the three months ended March 31, 2015, primarily due to income tax expense of $1,818 related to immaterial errors for prior years. This decrease is partially offset by lower tax holiday benefits and an increase in the corporate tax rate applicable to certain foreign subsidiaries of the Company during the three months ended March 31, 2016 compared to the three months ended March 31, 2015. The following table summarizes the activity related to the gross unrecognized tax benefits from January 1, 2016 through March 31, 2016 : Balance as of January 1, 2016 $ 2,797 Increases related to prior year tax positions — Decreases related to prior year tax positions — Increases related to current year tax positions — Decreases related to current year tax positions — Effect of exchange rate changes (4 ) Balance as of March 31, 2016 $ 2,793 The unrecognized tax benefits as of March 31, 2016 of $2,793 , if recognized, would impact the effective tax rate. During the three months ended March 31, 2016 and 2015, the Company has recognized interest of $50 and $99 , respectively, which are included in the income tax expense in the unaudited consolidated statements of income. As of March 31, 2016 and December 31, 2015, the Company has accrued approximately $1,319 and $1,269 , respectively in interest relating to unrecognized tax benefits. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | 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 March 31, 2016 2015 Cost of revenue $ 1,265 $ 1,103 General and administrative expenses 2,372 1,483 Selling and marketing expenses 2,172 1,669 Total $ 5,809 $ 4,255 As of March 31, 2016 , the Company had 1,968,977 shares available for grant under the 2015 Amendment and Restatement of the 2006 Omnibus Award Plan. Stock Options Stock option activity under the Company’s stock plans is shown below: Number of Weighted- Aggregate Weighted- Outstanding at December 31, 2015 1,210,141 $ 16.31 34,638 3.50 Granted — — Exercised (163,788 ) 12.27 Forfeited — — Outstanding at March 31, 2016 1,046,353 $ 16.94 36,477 3.68 Vested and exercisable at March 31, 2016 1,046,353 $ 16.94 36,477 3.68 The unrecognized compensation cost for unvested options as of March 31, 2016 is nil . The Company did not grant any options during the three months ended March 31, 2016 and 2015. The total grant date fair value of options vested during the three months ended March 31, 2016 and 2015 was $706 and $1,126 , 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, 2015* 129,638 $ 35.53 1,228,287 $ 30.06 Granted — — 377,294 48.54 Vested (12,212 ) 35.91 (300,821 ) 28.31 Forfeited — — (28,344 ) 27.61 Outstanding at March 31, 2016* 117,426 $ 35.49 1,276,416 $ 35.98 * As of March 31, 2016 and December 31, 2015 restricted stock units vested for which the underlying common stock is yet to be issued are 154,973 and 149,364 , respectively. As of March 31, 2016 , unrecognized compensation cost of $43,496 is expected to be expensed over a weighted average period of 3.01 years. Performance Based Stock Awards Performance restricted stock unit (the "PRSU's") activity under the Company’s stock plans is shown below: Revenue Based PRSUs Market Condition Based PRSUs Number Weighted Avg Fair Value Number Weighted Avg Fair Value Outstanding at December 31, 2015 107,213 $ 30.88 207,212 $ 38.80 Granted 59,861 48.57 59,859 67.94 Vested — — — — Forfeited (3,750 ) 34.75 (3,750 ) 54.63 Outstanding at March 31, 2016 163,324 $ 37.28 263,321 $ 45.20 As of March 31, 2016 , unrecognized compensation cost of $13,326 is expected to be expensed over a weighted average period of 2.18 years. |
Geographical Information
Geographical Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Geographical Information | Geographical Information The Company attributes the revenues to regions based upon location of its customers. Three months ended March 31, 2016 2015 Revenues, net United States $ 134,074 $ 111,865 United Kingdom 27,428 25,835 Rest of World 5,534 5,810 $ 167,036 $ 143,510 March 31, 2016 December 31, 2015 Fixed assets, net India $ 23,511 $ 23,415 United States 9,806 10,680 Philippines 11,461 11,285 Rest of World 2,762 2,611 $ 47,540 $ 47,991 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Fixed Asset Commitments At March 31, 2016 , the Company has committed to spend approximately $6,510 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 ExlService Philippines, Inc. 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 a U.S. subsidiary 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 years ranging from tax years 2003 to 2013 and its permanent establishment issues ranging from tax years 2003 to 2007 as of March 31, 2016 and December 31, 2015 is $20,835 and $21,360 , respectively, of which the Company has made payments or provided bank guarantee to the extent $14,342 and $14,668 , respectively. Amounts paid as deposits in respect of such assessments aggregating to $12,342 and $12,665 as of March 31, 2016 and December 31, 2015 , respectively, are included in “Other assets” and amounts deposited for bank guarantees aggregating to $2,000 and $2,003 as of March 31, 2016 and December 31, 2015 , respectively, are included in “Restricted cash” in the non-current assets section of the Company’s consolidated balance sheets as of March 31, 2016 and December 31, 2015 . 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. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Preparation | 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, 2015. 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 | 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. |
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”. 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 No. 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 No. 2014-09; or (ii) retrospectively with the cumulative effect of initially applying ASU No. 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU No. 2014-09. The Company is currently evaluating the impact of adoption and the implementation approach to be used. In January 2016, FASB issued ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities". This guidance makes targeted improvements to existing US GAAP for financial instruments, including requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; requiring entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset and requiring entities to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017. Early adoption of the own credit provision is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). ASU No. 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU No. 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU No. 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU No. 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and the implementation approach to be used. In March 2016, FASB issued ASU No. 2016-05, Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The new guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. An entity has the option to apply ASU No. 2016-05 on either a prospective basis or a modified retrospective basis. Early adoption is permitted. The adoption of ASU No. 2016-05 is not expected to have a material effect on the Company's consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, “Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” Among other things, the amendments in ASU No. 2016-07 eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). ASU No. 2016-08 clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718). ASU No. 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted but all of the guidance must be adopted in the same period. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Other Current Assets | Other current assets consists of the following: March 31, 2016 December 31, 2015 Derivative instruments $ 3,831 $ 3,009 Advances to suppliers 1,534 1,545 Receivables from statutory authorities 9,372 8,676 Others 5,009 1,989 Other current assets $ 19,746 $ 15,219 |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consists of the following: March 31, 2016 December 31, 2015 Accrued expenses $ 25,264 $ 26,238 Derivative instruments 413 1,226 Client liability account 2,972 2,217 Other current liabilities 9,252 4,569 Accrued expenses and other current liabilities $ 37,901 $ 34,250 |
Summary of Non-current Liabilities | Non-current liabilities consists of the following: March 31, 2016 December 31, 2015 Derivative instruments $ 568 $ 1,132 Unrecognized tax benefits 3,112 3,066 Deferred rent 6,864 6,515 Retirement benefits 1,472 1,441 Other non-current liabilities 1,549 5,501 Non-current liabilities $ 13,565 $ 17,655 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The balances as of March 31, 2016 and December 31, 2015 are as follows: December 31, 2015 December 31, 2015 Cumulative currency translation adjustments $ (67,030 ) $ (68,063 ) Unrealized gain on cash flow hedges, net of taxes of $1,035 and $657 2,826 824 Retirement benefits, net of taxes of ($194) and ($201) 117 (86 ) Accumulated other comprehensive loss $ (64,087 ) $ (67,325 ) |
Summary of Other Income, net | Other income, net consists of the following: Three months ended March 31, 2016 2015 Interest and dividend income* $ 2,222 $ 1,402 Interest expense (385 ) (283 ) Change in fair value of earn-out consideration** 250 — Other, net 707 59 Other income, net $ 2,794 $ 1,178 * Includes unrealized gain of $1,525 and $42 on investments carried under ASC topic 825, "Financial Instruments" ("ASC 825"), fair value option for the three months ended March 31, 2016 and 2015 respectively. ** Reduction in the Company's liability of earn-out consideration related to its acquisition of RPM Direct, LLC and RPM Data Solutions, LLC (the "RPM Acquisition") from $4,060 as of December 31, 2015 to $3,810 as of March 31, 2016 recognized as other income. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share: Three months ended March 31, 2016 2015 Numerators: Net income $ 13,820 $ 9,567 Denominators: Basic weighted average common shares outstanding 33,380,028 33,236,259 Dilutive effect of share based awards 971,629 815,712 Diluted weighted average common shares outstanding 34,351,657 34,051,971 Earnings per share: Basic $ 0.41 $ 0.29 Diluted $ 0.40 $ 0.28 Weighted average common shares considered anti-dilutive in computing diluted earnings per share 200,752 188,044 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 the three months ended March 31, 2016 and 2015 for Operations Management and Analytics segments, respectively, are as follows: Three Months Ended Three Months Ended Operations Management Analytics Total Operations Management Analytics Total Revenues, net $ 128,070 $ 38,966 $ 167,036 $ 123,853 $ 19,657 $ 143,510 Cost of revenues (exclusive of depreciation and amortization) 83,608 24,771 108,379 79,729 13,396 93,125 Gross profit $ 44,462 $ 14,195 $ 58,657 $ 44,124 $ 6,261 $ 50,385 Operating expenses 42,205 36,917 Foreign exchange gain and other income, net 3,263 2,312 Income tax expense 5,895 6,213 Net income $ 13,820 $ 9,567 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Summary of Company's Goodwill | The following table sets forth details of the Company’s goodwill balance as of March 31, 2016 : Operations Management Analytics Total Balance at January 1, 2015 $ 122,814 $ 16,785 $ 139,599 Goodwill arising from RPM acquisition — 33,155 33,155 Currency translation adjustments (1,219 ) — (1,219 ) Balance at December 31, 2015 $ 121,595 $ 49,940 $ 171,535 Currency translation adjustments (37 ) — (37 ) Balance at March 31, 2016 $ 121,558 $ 49,940 $ 171,498 |
Summary of Company's Intangible Assets | Information regarding the Company’s intangible assets is set forth below: As of March 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 64,815 $ (26,193 ) $ 38,622 Developed technology 12,234 (4,866 ) 7,368 Trade names and trademarks 5,670 (2,828 ) 2,842 Leasehold benefits 2,785 (2,157 ) 628 Non-compete agreements 2,045 (1,492 ) 553 $ 87,549 $ (37,536 ) $ 50,013 As of December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 64,816 $ (24,215 ) $ 40,601 Developed technology 12,234 (4,363 ) 7,871 Trade names and trademarks 5,670 (2,683 ) 2,987 Leasehold benefits 2,789 (2,109 ) 680 Non-compete agreements 2,045 (1,451 ) 594 $ 87,554 $ (34,821 ) $ 52,733 |
Estimated Amortization of Intangible Assets | The Company has $900 of indefinite lived trade names and trademarks as of March 31, 2016 and December 31, 2015 . Estimated amortization of intangible assets during the year ending March 31, 2017 $ 10,866 2018 $ 10,731 2019 $ 10,416 2020 $ 8,354 2021 $ 8,746 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 as of March 31, 2016 and December 31, 2015 . The table excludes accounts receivable, accounts payable and accrued expenses for which fair values approximate their carrying amounts. As of March 31, 2016 Level 1 Level 2 Level 3 Total Assets Money market and mutual funds* $ 102,686 $ — $ — $ 102,686 Derivative financial instruments — 5,003 — 5,003 Total $ 102,686 $ 5,003 $ — $ 107,689 Liabilities Derivative financial instruments $ — $ 981 $ — $ 981 Fair value of earn-out consideration — — 3,810 3,810 Total $ — $ 981 $ 3,810 $ 4,791 As of December 31, 2015 Level 1 Level 2 Level 3 Total Assets Money market and mutual funds $ 118,478 $ — $ — $ 118,478 Derivative financial instruments — 4,184 — 4,184 Total $ 118,478 $ 4,184 $ — $ 122,662 Liabilities Derivative financial instruments $ — $ 2,358 $ — $ 2,358 Fair value of earn-out consideration — — 4,060 4,060 Total $ — $ 2,358 $ 4,060 $ 6,418 * Includes short-term investments carried on fair value option under ASC 825 of $82,536 as of March 31, 2016. |
Derivatives and Hedge Account30
Derivatives and Hedge Accounting (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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: March 31, 2016 December 31, 2015 Other current assets: Foreign currency exchange contracts $ 3,670 $ 2,664 Other assets: Foreign currency exchange contracts $ 1,172 $ 1,175 Accrued expenses and other current liabilities: Foreign currency exchange contracts $ 413 $ 1,226 Other non current liabilities: Foreign currency exchange contracts $ 568 $ 1,132 Derivatives not designated as hedging instruments: March 31, 2016 December 31, 2015 Other current assets: Foreign currency exchange contracts $ 161 $ 345 |
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 March 31, 2016 and 2015 : Derivatives in Cash Flow Hedging Relationships Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion) Amount of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion) Location of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) 2016 2015 2016 2015 2016 2015 Foreign exchange contracts $ 2,437 $ 2,259 Foreign exchange gain/(loss) $ 57 $ (309 ) Foreign exchange gain/(loss) $ — $ — Derivatives not designated as Hedging Instruments Amount of Gain/(Loss) Recognized in Income on Derivatives Location of Gain or (Loss) Recognized in Income on Derivatives 2016 2015 Foreign exchange contracts Foreign exchange gain/(loss) $ 1,729 $ 2,096 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | Fixed assets consist of the following: March 31, 2016 December 31, 2015 Owned Assets: Network equipment, computers and software $ 98,600 $ 95,245 Leasehold improvements 29,037 28,603 Office furniture and equipment 14,283 14,000 Capital work in progress 4,166 3,140 Buildings 1,200 1,202 Land 786 787 Motor vehicles 567 540 148,639 143,517 Less: Accumulated depreciation and amortization (101,583 ) (96,079 ) $ 47,056 $ 47,438 Assets under capital leases: Leasehold improvements $ 874 $ 877 Office furniture and equipment 134 136 Motor vehicles 813 806 1,821 1,819 Less: Accumulated depreciation and amortization (1,337 ) (1,266 ) $ 484 $ 553 Fixed assets, net $ 47,540 $ 47,991 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Net Gratuity Cost | Net gratuity cost includes the following components: Three months ended March 31, 2016 2015 Service cost $ 400 $ 423 Interest cost 149 142 Expected return on plan assets (104 ) (100 ) Actuarial loss 22 55 Net gratuity cost $ 467 $ 520 |
Change in Plan Assets | Change in Plan Assets Plan assets at January 1, 2016 $ 4,923 Actual return 109 Benefits paid (253 ) Effect of exchange rate changes (10 ) Plan assets at March 31, 2016 $ 4,769 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Leases [Abstract] | |
Future Minimum Lease Payments under Capital Leases | Future minimum lease payments under these capital leases as of March 31, 2016 are as follows: Year ending March 31, 2017 $ 358 2018 168 2019 83 2020 41 Total minimum lease payments 650 Less: amount representing interest 86 Present value of minimum lease payments 564 Less: current portion 286 Long term capital lease obligation $ 278 |
Future Minimum Lease Payments under Non-Cancelable Operating Lease Agreements | Future minimum lease payments under non-cancelable agreements expiring after March 31, 2016 are set forth below: Year ending March 31, 2017 $ 7,729 2018 5,642 2019 4,506 2020 3,303 2021 1,986 2022 and thereafter 1,101 $ 24,267 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 through March 31, 2016 : Balance as of January 1, 2016 $ 2,797 Increases related to prior year tax positions — Decreases related to prior year tax positions — Increases related to current year tax positions — Decreases related to current year tax positions — Effect of exchange rate changes (4 ) Balance as of March 31, 2016 $ 2,793 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
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 March 31, 2016 2015 Cost of revenue $ 1,265 $ 1,103 General and administrative expenses 2,372 1,483 Selling and marketing expenses 2,172 1,669 Total $ 5,809 $ 4,255 |
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, 2015 1,210,141 $ 16.31 34,638 3.50 Granted — — Exercised (163,788 ) 12.27 Forfeited — — Outstanding at March 31, 2016 1,046,353 $ 16.94 36,477 3.68 Vested and exercisable at March 31, 2016 1,046,353 $ 16.94 36,477 3.68 |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
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, 2015* 129,638 $ 35.53 1,228,287 $ 30.06 Granted — — 377,294 48.54 Vested (12,212 ) 35.91 (300,821 ) 28.31 Forfeited — — (28,344 ) 27.61 Outstanding at March 31, 2016* 117,426 $ 35.49 1,276,416 $ 35.98 * As of March 31, 2016 and December 31, 2015 restricted stock units vested for which the underlying common stock is yet to be issued are 154,973 and 149,364 , respectively. |
Performance Based Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
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 PRSUs Market Condition Based PRSUs Number Weighted Avg Fair Value Number Weighted Avg Fair Value Outstanding at December 31, 2015 107,213 $ 30.88 207,212 $ 38.80 Granted 59,861 48.57 59,859 67.94 Vested — — — — Forfeited (3,750 ) 34.75 (3,750 ) 54.63 Outstanding at March 31, 2016 163,324 $ 37.28 263,321 $ 45.20 |
Geographical Information (Table
Geographical Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Revenues Based on Geographical Information | The Company attributes the revenues to regions based upon location of its customers. Three months ended March 31, 2016 2015 Revenues, net United States $ 134,074 $ 111,865 United Kingdom 27,428 25,835 Rest of World 5,534 5,810 $ 167,036 $ 143,510 |
Fixed Assets, Net Based on Geographical Information | March 31, 2016 December 31, 2015 Fixed assets, net India $ 23,511 $ 23,415 United States 9,806 10,680 Philippines 11,461 11,285 Rest of World 2,762 2,611 $ 47,540 $ 47,991 |
Organization and Basis of Pre37
Organization and Basis of Presentation Organization and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2015operating_segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments merged | 2 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Derivative instruments | $ 3,831 | $ 3,009 |
Advances to suppliers | 1,534 | 1,545 |
Receivables from statutory authorities | 9,372 | 8,676 |
Others | 5,009 | 1,989 |
Other Assets, Current | $ 19,746 | $ 15,219 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Summary of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 25,264 | $ 26,238 |
Derivative instruments | 413 | 1,226 |
Client liability account | 2,972 | 2,217 |
Other current liabilities | 9,252 | 4,569 |
Accrued expenses and other current liabilities | $ 37,901 | $ 34,250 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Summary of Non-current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Derivative instruments | $ 568 | $ 1,132 |
Unrecognized tax benefits | 3,112 | 3,066 |
Deferred rent | 6,864 | 6,515 |
Retirement benefits | 1,472 | 1,441 |
Other non-current liabilities | 1,549 | 5,501 |
Non-current liabilities | $ 13,565 | $ 17,655 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Summary of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Cumulative currency translation adjustments | $ (67,030) | $ (68,063) |
Unrealized gain on cash flow hedges, net of taxes of $1,035 and $657 | 2,826 | 824 |
Retirement benefits, net of taxes of ($194) and ($201) | 117 | (86) |
Accumulated other comprehensive loss | (64,087) | (67,325) |
Unrealized gain / (loss) on cash flow hedges, taxes | 1,035 | 657 |
Retirement benefits, taxes | $ (194) | $ (201) |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Summary of Other Income, net (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Other Nonoperating Income (Expense) [Abstract] | |||
Interest and dividend income | $ 2,222 | $ 1,402 | |
Interest expense | (385) | (283) | |
Change in fair value of earn-out consideration | 250 | 0 | |
Other, net | 707 | 59 | |
Other income, net | 2,794 | 1,178 | |
Unrealized gain on investments | 1,525 | $ 42 | |
Fair value of earn-out consideration | $ 3,810 | $ 4,060 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Numerators: | ||
Net income | $ 13,820 | $ 9,567 |
Denominators: | ||
Basic weighted average common shares outstanding (in shares) | 33,380,028 | 33,236,259 |
Dilutive effect of share based awards (in shares) | 971,629 | 815,712 |
Diluted weighted average common shares outstanding (in shares) | 34,351,657 | 34,051,971 |
Earnings Per Share: | ||
Basic (in dollars per share) | $ 0.41 | $ 0.29 |
Diluted (in dollars per share) | $ 0.40 | $ 0.28 |
Weighted average common shares considered anti-dilutive in computing diluted earnings per share (in shares) | 200,752 | 188,044 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015operating_segment | |
Segment Reporting [Abstract] | |
Number of operating segments merged | 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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues and cost of revenues for Company's outsourcing services and transformation services segments [Line Items] | ||
Revenues, net | $ 167,036 | $ 143,510 |
Cost of revenues (exclusive of depreciation and amortization) | 108,379 | 93,125 |
Gross profit | 58,657 | 50,385 |
Operating expenses | 42,205 | 36,917 |
Foreign exchange gain and other income, net | 3,263 | 2,312 |
Income tax expense | 5,895 | 6,213 |
Net income | 13,820 | 9,567 |
Operations Management | ||
Revenues and cost of revenues for Company's outsourcing services and transformation services segments [Line Items] | ||
Revenues, net | 128,070 | 123,853 |
Cost of revenues (exclusive of depreciation and amortization) | 83,608 | 79,729 |
Gross profit | 44,462 | 44,124 |
Analytics | ||
Revenues and cost of revenues for Company's outsourcing services and transformation services segments [Line Items] | ||
Revenues, net | 38,966 | 19,657 |
Cost of revenues (exclusive of depreciation and amortization) | 24,771 | 13,396 |
Gross profit | $ 14,195 | $ 6,261 |
Goodwill and Intangible Asset46
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 2,715 | $ 2,059 | |
Indefinite lived trade names and trademarks | $ 900 | $ 900 | |
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Remaining amortization period (in years) | 6 years 2 months 2 days | ||
Leasehold benefits | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Remaining amortization period (in years) | 3 years 2 months 24 days | ||
Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Remaining amortization period (in years) | 4 years 6 months | ||
Non-compete agreements | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Remaining amortization period (in years) | 3 years 3 months | ||
Trade names and trademarks | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Remaining amortization period (in years) | 6 years |
Goodwill and Intangible Asset47
Goodwill and Intangible Assets - Summary of Company's Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 171,535 | $ 139,599 |
Currency translation adjustments | (37) | (1,219) |
Ending Balance | 171,498 | 171,535 |
RPM Direct LLC and RPM Data Solutions LLC | ||
Goodwill [Roll Forward] | ||
Goodwill arising from acquisition | 33,155 | |
Operations Management | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 121,595 | 122,814 |
Currency translation adjustments | (37) | (1,219) |
Ending Balance | 121,558 | 121,595 |
Operations Management | RPM Direct LLC and RPM Data Solutions LLC | ||
Goodwill [Roll Forward] | ||
Goodwill arising from acquisition | 0 | |
Analytics | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 49,940 | 16,785 |
Ending Balance | $ 49,940 | 49,940 |
Analytics | RPM Direct LLC and RPM Data Solutions LLC | ||
Goodwill [Roll Forward] | ||
Goodwill arising from acquisition | $ 33,155 |
Goodwill and Intangible Asset48
Goodwill and Intangible Assets - Summary of Company's Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 87,549 | $ 87,554 |
Accumulated Amortization | (37,536) | (34,821) |
Net Carrying Amount | 50,013 | 52,733 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 64,815 | 64,816 |
Accumulated Amortization | (26,193) | (24,215) |
Net Carrying Amount | 38,622 | 40,601 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 12,234 | 12,234 |
Accumulated Amortization | (4,866) | (4,363) |
Net Carrying Amount | 7,368 | 7,871 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,670 | 5,670 |
Accumulated Amortization | (2,828) | (2,683) |
Net Carrying Amount | 2,842 | 2,987 |
Leasehold benefits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,785 | 2,789 |
Accumulated Amortization | (2,157) | (2,109) |
Net Carrying Amount | 628 | 680 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,045 | 2,045 |
Accumulated Amortization | (1,492) | (1,451) |
Net Carrying Amount | $ 553 | $ 594 |
Goodwill and Intangible Asset49
Goodwill and Intangible Assets - Estimated Amortization of Intangible Assets (Detail) $ in Thousands | Mar. 31, 2016USD ($) |
Business Combinations [Abstract] | |
2,017 | $ 10,866 |
2,018 | 10,731 |
2,019 | 10,416 |
2,020 | 8,354 |
2,021 | $ 8,746 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Liabilities | ||
Fair value of earn-out consideration | $ 3,810 | $ 4,060 |
Investments carried at fair value | 82,536 | |
Recurring | ||
Assets | ||
Money market and mutual funds | 102,686 | 118,478 |
Derivative financial instruments | 5,003 | 4,184 |
Total | 107,689 | 122,662 |
Liabilities | ||
Derivative financial instruments | 981 | 2,358 |
Fair value of earn-out consideration | 3,810 | 4,060 |
Total | 4,791 | 6,418 |
Recurring | Level 1 | ||
Assets | ||
Money market and mutual funds | 102,686 | 118,478 |
Total | 102,686 | 118,478 |
Recurring | Level 2 | ||
Assets | ||
Money market and mutual funds | 0 | |
Derivative financial instruments | 5,003 | 4,184 |
Total | 5,003 | 4,184 |
Liabilities | ||
Derivative financial instruments | 981 | 2,358 |
Total | 981 | 2,358 |
Recurring | Level 3 | ||
Assets | ||
Money market and mutual funds | 0 | |
Liabilities | ||
Derivative financial instruments | 0 | 0 |
Fair value of earn-out consideration | 3,810 | 4,060 |
Total | $ 3,810 | $ 4,060 |
Derivatives and Hedge Account51
Derivatives and Hedge Accounting - Additional Information (Detail) ÂŁ in Thousands, $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2016GBP (ÂŁ) | Dec. 31, 2015USD ($) | Dec. 31, 2015GBP (ÂŁ) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net derivative losses which could be reclassified into earnings within the next 12 months | $ 3,257 | ||||
Maximum outstanding term of cash flow hedges (in months) | 45 months | ||||
Gain/(losses) that reclassified from AOCI into earning for discontinued hedging transactions | $ 0 | $ 0 | |||
Derivatives Designated as Hedging Instruments | Derivatives in Cash Flow Hedging Relationships | Foreign Currency Exchange Contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Foreign exchange contracts outstanding | 218,365 | $ 230,894 | |||
Derivatives not Designated as Hedging Instruments | Foreign Currency Exchange Contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Foreign exchange contracts outstanding | $ 59,290 | ÂŁ 14,147 | $ 61,641 | ÂŁ 13,256 |
Derivatives and Hedge Account52
Derivatives and Hedge Accounting - Summary of Fair Value of Foreign Currency Exchange Contracts (Detail) - Foreign Currency Exchange Contracts - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivatives Designated as Hedging Instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | $ 3,670 | $ 2,664 |
Derivatives Designated as Hedging Instruments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | 1,172 | 1,175 |
Derivatives Designated as Hedging Instruments | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | 413 | 1,226 |
Derivatives Designated as Hedging Instruments | Other non current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | 568 | 1,132 |
Derivatives not Designated as Hedging Instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | $ 161 | $ 345 |
Derivatives and Hedge Account53
Derivatives and Hedge Accounting - Summary of Effect of Foreign Currency Exchange Contracts on Consolidated Statements of Income (Detail) - Foreign Currency Exchange Contracts - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivatives Designated as Hedging Instruments | Derivatives in Cash Flow Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion) | $ 2,437 | $ 2,259 |
Foreign exchange gain/(loss) | Derivatives Designated as Hedging Instruments | Derivatives in Cash Flow Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion) | 57 | (309) |
Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 |
Foreign exchange gain/(loss) | Derivatives not Designated as Hedging Instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in Income on Derivatives | $ 1,729 | $ 2,096 |
Fixed Assets - Schedule of Fixe
Fixed Assets - Schedule of Fixed Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Owned Assets: | ||
Owned Assets, Gross | $ 148,639 | $ 143,517 |
Less: Accumulated depreciation and amortization | (101,583) | (96,079) |
Owned Assets, net | 47,056 | 47,438 |
Assets under capital leases: | ||
Capital leased assets, gross | 1,821 | 1,819 |
Less: Accumulated depreciation and amortization | (1,337) | (1,266) |
Assets under capital leases, net | 484 | 553 |
Fixed assets, net | 47,540 | 47,991 |
Network equipment, computers and software | ||
Owned Assets: | ||
Owned Assets, Gross | 98,600 | 95,245 |
Leasehold improvements | ||
Owned Assets: | ||
Owned Assets, Gross | 29,037 | 28,603 |
Assets under capital leases: | ||
Capital leased assets, gross | 874 | 877 |
Office furniture and equipment | ||
Owned Assets: | ||
Owned Assets, Gross | 14,283 | 14,000 |
Assets under capital leases: | ||
Capital leased assets, gross | 134 | 136 |
Capital work in progress | ||
Owned Assets: | ||
Owned Assets, Gross | 4,166 | 3,140 |
Buildings | ||
Owned Assets: | ||
Owned Assets, Gross | 1,200 | 1,202 |
Land | ||
Owned Assets: | ||
Owned Assets, Gross | 786 | 787 |
Motor vehicles | ||
Owned Assets: | ||
Owned Assets, Gross | 567 | 540 |
Assets under capital leases: | ||
Capital leased assets, gross | $ 813 | $ 806 |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 5,418 | $ 4,994 |
Capital Structure - Additional
Capital Structure - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2016USD ($)ClassOfCommonStock$ / sharesshares | Mar. 31, 2015USD ($)$ / sharesshares | Dec. 30, 2014USD ($) | |
Equity, Class of Treasury Stock [Line Items] | |||
Number of classes of common stock outstanding | ClassOfCommonStock | 1 | ||
Acquisition of restricted stock from employees in connection with withholding tax payments (in shares) | shares | 14,548 | 12,866 | |
Withholding tax payments related to the vesting of restricted stock for total consideration | $ 652,000 | $ 397,000 | |
Weighted average purchase price per share prior to the vesting date (in dollars per share) | $ / shares | $ 44.83 | $ 30.83 | |
2014 Repurchase Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Repurchase of common stock authorized by board of directors up to | $ 20,000,000 | ||
Stock repurchase program, period start (year) | 2,015 | ||
Stock repurchase program, period end (year) | 2,017 | ||
Common stock shares purchased under the repurchase program (in shares) | shares | 138,638 | 0 | |
Common stock aggregate purchase price including commissions | $ 6,202,000 | ||
Common stock average purchase price per share (in dollars per share) | $ / shares | $ 44.74 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | Oct. 24, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Feb. 23, 2015 |
Credit Facilities [Line Items] | |||||
Other short-term borrowings | $ 10,000,000 | $ 10,000,000 | |||
Revolving Credit Facility | |||||
Credit Facilities [Line Items] | |||||
Revolving credit facility | $ 50,000,000 | $ 65,000,000 | 70,000,000 | ||
Debt instrument, term (in years) | 5 years | ||||
Option to increase additional credit facility | $ 50,000,000 | $ 50,000,000 | |||
Credit facility expiration date | Oct. 24, 2019 | ||||
Other short-term borrowings | $ 10,000,000 | ||||
Line of credit interest rate during period (as a percent) | 1.90% | 1.56% | |||
Unamortized debt issuance costs | $ 344,000 | $ 368,000 |
Employee Benefit Plans - Net Gr
Employee Benefit Plans - Net Gratuity Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||
Service cost | $ 400 | $ 423 |
Interest cost | 149 | 142 |
Expected return on plan assets | (104) | (100) |
Actuarial loss | 22 | 55 |
Net gratuity cost | $ 467 | $ 520 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Plan Assets (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |
Plan assets at January 1, 2016 | $ 4,923 |
Actual return | 109 |
Benefits paid | (253) |
Effect of exchange rate changes | (10) |
Plan assets at March 31, 2016 | $ 4,769 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||
Expected return on plan assets (as a percent) | 9.00% | |
Percentage of discretionary contributions towards 401(k) Plan, Maximum (as a percent) | 3.00% | 3.00% |
Company's contribution to the 401(k) Plan | $ 932 | $ 768 |
Contribution to various defined contribution plans | $ 1,466 | $ 1,465 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments under Capital Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Leases [Abstract] | ||
2,017 | $ 358 | |
2,018 | 168 | |
2,019 | 83 | |
2,020 | 41 | |
Total minimum lease payments | 650 | |
Less: amount representing interest | 86 | |
Present value of minimum lease payments | 564 | |
Less: current portion | 286 | $ 384 |
Long term capital lease obligation | $ 278 | $ 278 |
Leases - Future Minimum Lease62
Leases - Future Minimum Lease Payments under Non-Cancelable Operating Lease Agreements Expiring After December 31, 2014 (Detail) $ in Thousands | Mar. 31, 2016USD ($) |
Leases [Abstract] | |
2,017 | $ 7,729 |
2,018 | 5,642 |
2,019 | 4,506 |
2,020 | 3,303 |
2,021 | 1,986 |
2022 and thereafter | 1,101 |
Total operating lease payments | $ 24,267 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Leases [Abstract] | |||
Rent expense under both cancelable and non-cancelable operating leases | $ 5,148 | $ 4,985 | |
Deferred rent | $ 7,419 | $ 7,066 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 5,895 | $ 6,213 | |
Effective tax rates (as a percent) | 29.90% | 39.40% | |
Reversal of unrecognized tax benefit | $ 0 | $ 1,818 | |
Unrecognized tax benefits | 2,793 | $ 2,797 | |
Recognized interest and penalties | 0 | $ 99 | |
Accrued interest on unrecognized tax benefits | $ 1,319 | $ 1,269 |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance as of January 1, 2016 | $ 2,797 | |
Increases related to prior year tax positions | 0 | |
Decreases related to prior year tax positions | 0 | $ (1,818) |
Increases related to current year tax positions | 0 | |
Decreases related to current year tax positions | 0 | |
Effect of exchange rate changes | (4) | |
Balance as of March 31, 2016 | $ 2,793 |
Stock Based Compensation - Cost
Stock Based Compensation - Costs Related to Company's Stock-Based Compensation Plan (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expenses | $ 5,809 | $ 4,255 |
Cost of revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expenses | 1,265 | 1,103 |
General and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expenses | 2,372 | 1,483 |
Selling and marketing expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expenses | $ 2,172 | $ 1,669 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) | Mar. 31, 2016shares |
2015 Stock Options Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares available for grant (in shares) | 1,968,977 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Based Compensation Stock Option Activity (Detail) - Employee Stock Option - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of Options, Outstanding, at December 31, 2015 (in shares) | 1,210,141 | |
Number of Options, Granted (in shares) | 0 | |
Number of Options, Exercised (in shares) | (163,788) | |
Number of Options, Forfeited (in shares) | 0 | |
Number of Options, Outstanding, at March 31, 2016 (in shares) | 1,046,353 | 1,210,141 |
Number of Options, Vested and exercisable at March 31, 2016 (in shares) | 1,046,353 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted-Average Exercise Price, Outstanding, at December 31, 2015 (in dollars per share) | $ 16.31 | |
Weighted-Average Exercise Price, Granted (in dollars per share) | 0 | |
Weighted-Average Exercise Price, Exercised (in dollars per share) | 12.27 | |
Weighted-Average Exercise Price, Forfeited (in dollars per share) | 0 | |
Weighted-Average Exercise Price, Outstanding, at March 31, 2016 (in dollars per share) | 16.94 | $ 16.31 |
Weighted Average Exercise Price, Vested and exercisable at March 31, 2016 (in dollars per share) | $ 16.94 | |
Aggregate Intrinsic Value, Outstanding | $ 36,477 | $ 34,638 |
Weighted-Average Remaining Contractual Life (in years) | 3 years 8 months 5 days | 3 years 6 months |
Aggregate Intrinsic Value, Vested and exercisable at March 31, 2016 | $ 36,477 | |
Weighted-Average Remaining Contractual Life, Vested and exercisable at March 31, 2016 (in years) | 3 years 8 months 5 days |
Stock Based Compensation - St69
Stock Based Compensation - Stock Options Additional Information (Details) - Employee Stock Option - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee service share-based compensation, nonvested awards, compensation not yet recognized, stock options | $ 0 | |
Total grant date fair value of option vested in period | $ 706 | $ 1,126 |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Stock Activity Under Company's Stock Plans (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Number, Outstanding, at December 31, 2015 (in shares) | 129,638 | |
Number, Granted (in shares) | 0 | |
Number, Vested (in shares) | (12,212) | |
Number, Forfeited (in shares) | 0 | |
Number, Outstanding, at March 31, 2016 (in shares) | 117,426 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted-Average Fair Value, Outstanding, at December 31, 2015 (in dollars per share) | $ 35.53 | |
Weighted-Average Fair Value, Granted (in dollars per share) | 0 | |
Weighted-Average Fair Value, Vested (in dollars per share) | 35.91 | |
Weighted-Average Fair Value, Forfeited (in dollars per share) | 0 | |
Weighted-Average Fair Value, Outstanding, at March 31, 2016 (in dollars per share) | $ 35.49 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Number, Outstanding, at December 31, 2015 (in shares) | 1,228,287 | |
Number, Granted (in shares) | 377,294 | |
Number, Vested (in shares) | (300,821) | |
Number, Forfeited (in shares) | (28,344) | |
Number, Outstanding, at March 31, 2016 (in shares) | 1,276,416 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted-Average Fair Value, Outstanding, at December 31, 2015 (in dollars per share) | $ 30.06 | |
Weighted-Average Fair Value, Granted (in dollars per share) | 48.54 | |
Weighted-Average Fair Value, Vested (in dollars per share) | 28.31 | |
Weighted-Average Fair Value, Forfeited (in dollars per share) | 27.61 | |
Weighted-Average Fair Value, Outstanding, at March 31, 2016 (in dollars per share) | $ 35.98 | |
Restricted stock units vested (in shares) | 154,973 | 149,364 |
Stock Based Compensation - Re71
Stock Based Compensation - Restricted Stock and RSU Additional Information (Details) - Restricted Stock and Restricted Stock Units $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 43,496 |
Cost not yet recognized, period for recognition (in years) | 3 years 4 days |
Stock Based Compensation - Perf
Stock Based Compensation - Performance Restricted Stock Activity (Details) | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Revenue Based PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Number, Outstanding, at December 31, 2015 (in shares) | shares | 107,213 |
Number, Granted (in shares) | shares | 59,861 |
Number, Vested (in shares) | shares | 0 |
Number, Forfeited (in shares) | shares | (3,750) |
Number, Outstanding, at March 31, 2016 (in shares) | shares | 163,324 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-Average Fair Value, Outstanding, at December 31, 2015 (in dollars per share) | $ / shares | $ 30.88 |
Weighted-Average Fair Value, Granted (in dollars per share) | $ / shares | 48.57 |
Weighted-Average Fair Value, Vested (in dollars per share) | $ / shares | 0 |
Weighted-Average Fair Value, Forfeited (in dollars per share) | $ / shares | 34.75 |
Weighted-Average Fair Value, Outstanding, at March 31, 2016 (in dollars per share) | $ / shares | $ 37.28 |
Market Condition Based PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Number, Outstanding, at December 31, 2015 (in shares) | shares | 207,212 |
Number, Granted (in shares) | shares | 59,859 |
Number, Vested (in shares) | shares | 0 |
Number, Forfeited (in shares) | shares | (3,750) |
Number, Outstanding, at March 31, 2016 (in shares) | shares | 263,321 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-Average Fair Value, Outstanding, at December 31, 2015 (in dollars per share) | $ / shares | $ 38.80 |
Weighted-Average Fair Value, Granted (in dollars per share) | $ / shares | 67.94 |
Weighted-Average Fair Value, Vested (in dollars per share) | $ / shares | 0 |
Weighted-Average Fair Value, Forfeited (in dollars per share) | $ / shares | 54.63 |
Weighted-Average Fair Value, Outstanding, at March 31, 2016 (in dollars per share) | $ / shares | $ 45.20 |
Stock Based Compensation - Pe73
Stock Based Compensation - Performance Based Stock Awards Additional Information (Details) - Performance Based Stock Awards $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 13,326 |
Cost not yet recognized, period for recognition (in years) | 2 years 2 months 5 days |
Geographical Information - Reve
Geographical Information - Revenues Based on Geographical Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues, net | ||
Revenues, net | $ 167,036 | $ 143,510 |
United States | ||
Revenues, net | ||
Revenues, net | 134,074 | 111,865 |
United Kingdom | ||
Revenues, net | ||
Revenues, net | 27,428 | 25,835 |
Rest of World | ||
Revenues, net | ||
Revenues, net | $ 5,534 | $ 5,810 |
Geographical Information - Fixe
Geographical Information - Fixed Assets, Net Based on Geographical Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fixed assets, net | ||
Fixed assets, net | $ 47,540 | $ 47,991 |
India | ||
Fixed assets, net | ||
Fixed assets, net | 23,511 | 23,415 |
United States | ||
Fixed assets, net | ||
Fixed assets, net | 9,806 | 10,680 |
Philippines | ||
Fixed assets, net | ||
Fixed assets, net | 11,461 | 11,285 |
Rest of World | ||
Fixed assets, net | ||
Fixed assets, net | $ 2,762 | $ 2,611 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase commitments, net of advances | $ 6,510 | |
Export-oriented units established (as a percent) | 100.00% | |
Transfer pricing issues starting period (year) | 2,003 | |
Transfer pricing issues ending period (year) | 2,013 | |
Permanent establishment issues starting period (year) | 2,003 | |
Permanent establishment issues ending period (year) | 2,007 | |
Aggregate disputed amount amount related to transfer pricing and permanent establishment | $ 20,835 | $ 21,360 |
Total bank guarantees and deposits in respect of contingencies | 14,342 | 14,668 |
Amounts paid as deposits in respect of contingencies | 12,342 | 12,665 |
Bank guarantee issued | $ 2,000 | $ 2,003 |