Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 09, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
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 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Trading Symbol | EXLS | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 33,796,135 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,693,584,602 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 213,155 | $ 205,323 |
Short-term investments | 13,491 | 13,676 |
Restricted cash | 3,846 | 1,872 |
Accounts receivable, net | 113,067 | 92,650 |
Prepaid expenses | 7,855 | 8,027 |
Advance income tax, net | 6,242 | 2,432 |
Other current assets | 21,168 | 15,219 |
Total current assets | 378,824 | 339,199 |
Property, plant and equipment, net | 49,029 | 47,991 |
Restricted cash | 3,393 | 3,319 |
Deferred income tax assets, net | 14,799 | 13,749 |
Intangible assets, net | 53,770 | 52,733 |
Goodwill | 186,770 | 171,535 |
Other assets | 19,943 | 22,257 |
Total assets | 706,528 | 650,783 |
Current liabilities: | ||
Accounts payable | 3,288 | 6,401 |
Short-term borrowings | 10,000 | 10,000 |
Deferred revenue | 16,615 | 11,518 |
Accrued employee cost | 50,832 | 44,526 |
Accrued expenses and other current liabilities | 43,264 | 34,250 |
Current portion of capital lease obligations | 232 | 384 |
Total current liabilities | 124,231 | 107,079 |
Long term borrowings | 35,000 | 60,000 |
Capital lease obligations, less current portion | 300 | 278 |
Non-current liabilities | 14,819 | 17,655 |
Total liabilities | 174,350 | 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, 35,699,819 shares issued and 33,628,109 shares outstanding as of December 31, 2016 and 34,781,201 shares issued and 33,091,223 shares outstanding as of December 31, 2015 | 36 | 35 |
Additional paid-in-capital | 284,646 | 254,052 |
Retained earnings | 382,722 | 320,989 |
Accumulated other comprehensive loss | (75,057) | (67,325) |
Total including shares held in treasury | 592,347 | 507,751 |
Less: 2,071,710 shares as of December 31, 2016 and 1,689,978 shares as of December 31, 2015, held in treasury, at cost | (60,362) | (42,159) |
ExlService Holdings, Inc. stockholders' equity | 531,985 | 465,592 |
Non-controlling interest | 193 | 179 |
Total equity | 532,178 | 465,771 |
Total liabilities and equity | $ 706,528 | $ 650,783 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 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) | 35,699,819 | 34,781,201 |
Common stock shares outstanding (in shares) | 33,628,109 | 33,091,223 |
Less shares held in treasury at cost (in shares) | 2,071,710 | 1,689,978 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Revenues, net | $ 685,988 | $ 628,492 | $ 499,278 |
Cost of revenues (exclusive of depreciation and amortization) | 447,956 | 402,917 | 332,535 |
Gross profit | 238,032 | 225,575 | 166,743 |
Operating expenses: | |||
General and administrative expenses | 88,648 | 77,293 | 65,381 |
Selling and marketing expenses | 50,582 | 49,474 | 39,294 |
Depreciation and amortization | 34,580 | 31,465 | 28,028 |
Total operating expenses | 173,810 | 158,232 | 132,703 |
Income from operations | 64,222 | 67,343 | 34,040 |
Other income/(expense) : | |||
Foreign exchange gain/(loss), net | 5,597 | 2,744 | (5) |
Interest expense | (1,343) | (1,338) | (369) |
Other income, net | 15,408 | 7,027 | 3,972 |
Income before income tax expense | 83,884 | 75,776 | 37,638 |
Income tax expense | 22,151 | 24,211 | 5,193 |
Net income | $ 61,733 | $ 51,565 | $ 32,445 |
Earnings per share: | |||
Basic (in dollars per share) | $ 1.84 | $ 1.55 | $ 0.99 |
Diluted (in dollars per share) | $ 1.79 | $ 1.51 | $ 0.96 |
Weighted-average number of shares used in computing earnings per share: | |||
Basic (in shares) | 33,566,367 | 33,298,104 | 32,804,606 |
Diluted (in shares) | 34,563,319 | 34,178,340 | 33,636,593 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 61,733 | $ 51,565 | $ 32,445 | |
Other comprehensive income/(loss): | ||||
Unrealized gain/(loss) on effective cash flow hedges, net of taxes $1,184, ($402) and $1,768, respectively | 2,711 | (709) | 5,002 | |
Foreign currency translation adjustment | (9,236) | (12,510) | (5,462) | |
Retirement benefits, net of taxes ($204), $22 and ($28), respectively | (439) | 584 | (34) | |
Reclassification adjustments | ||||
Realized (gain)/loss on cash flow hedges, net of taxes ($639), $456 and $1,571, respectively(1) | [1] | (795) | 661 | 5,569 |
Retirement benefits, net of taxes $63, $53 and $15, respectively(2) | [2] | 27 | 158 | 134 |
Total other comprehensive (loss)/income | (7,732) | (11,816) | 5,209 | |
Total comprehensive income | $ 54,001 | $ 39,749 | $ 37,654 | |
[1] | These are reclassified to net income and are included in the foreign exchange gain/(loss) in the consolidated statements of income. See Note 12 to the consolidated financial statements. | |||
[2] | These are reclassified to net income and are included in the computation of net periodic pension costs in the consolidated statements of income. See Note 15 to the consolidated financial statements. |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gain/(loss) on effective cash flow hedges, tax | $ 1,184 | $ (402) | $ 1,768 |
Retirement benefits, tax | (204) | 22 | (28) |
Realized (gain)/loss on cash flow hedges, tax | (639) | 456 | 1,571 |
Retirement benefits, tax | $ 63 | $ 53 | $ 15 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Treasury Stock | Non - Controlling Interest |
Beginning balance at Dec. 31, 2013 | $ 366,174 | $ 33 | $ 214,522 | $ 236,979 | $ (60,718) | $ (24,642) | $ 0 |
Beginning balance (in shares) at Dec. 31, 2013 | 33,342,312 | (1,170,129) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued on exercise/vesting of equity awards | 6,460 | $ 1 | 6,459 | ||||
Stock issued on exercise/vesting of equity awards (in shares) | 861,040 | ||||||
Stock based compensation | 11,011 | 11,011 | |||||
Excess tax benefit from stock based compensation | 1,181 | 1,181 | |||||
Acquisition of treasury stock | (3,322) | $ (3,322) | |||||
Acquisition of treasury stock (in shares) | (127,756) | ||||||
Non-controlling interest | 0 | 0 | |||||
Other comprehensive income | 5,209 | 5,209 | |||||
Net income | 32,445 | 32,445 | |||||
Ending balance at Dec. 31, 2014 | 419,158 | $ 34 | 233,173 | 269,424 | (55,509) | $ (27,964) | 0 |
Ending balance (shares) at Dec. 31, 2014 | 34,203,352 | (1,297,885) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued on exercise/vesting of equity awards | 3,375 | $ 1 | 3,374 | ||||
Stock issued on exercise/vesting of equity awards (in shares) | 577,849 | ||||||
Stock based compensation | 16,047 | 16,047 | |||||
Excess tax benefit from stock based compensation | 1,458 | 1,458 | |||||
Acquisition of treasury stock | (14,195) | $ (14,195) | |||||
Acquisition of treasury stock (in shares) | (392,093) | ||||||
Non-controlling interest | 179 | 179 | |||||
Other comprehensive income | (11,816) | (11,816) | |||||
Net income | 51,565 | 51,565 | |||||
Ending balance at Dec. 31, 2015 | $ 465,771 | $ 35 | 254,052 | 320,989 | (67,325) | $ (42,159) | 179 |
Ending balance (shares) at Dec. 31, 2015 | 33,091,223 | 34,781,201 | (1,689,978) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued on exercise/vesting of equity awards | $ 6,499 | $ 1 | 6,498 | ||||
Stock issued on exercise/vesting of equity awards (in shares) | 918,618 | ||||||
Stock based compensation | 19,770 | 19,770 | |||||
Excess tax benefit from stock based compensation | 4,326 | 4,326 | |||||
Acquisition of treasury stock | (18,203) | $ (18,203) | |||||
Acquisition of treasury stock (in shares) | (381,732) | ||||||
Non-controlling interest | 14 | 14 | |||||
Other comprehensive income | (7,732) | (7,732) | |||||
Net income | 61,733 | 61,733 | |||||
Ending balance at Dec. 31, 2016 | $ 532,178 | $ 36 | $ 284,646 | $ 382,722 | $ (75,057) | $ (60,362) | $ 193 |
Ending balance (shares) at Dec. 31, 2016 | 33,628,109 | 35,699,819 | (2,071,710) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 61,733 | $ 51,565 | $ 32,445 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 34,580 | 31,465 | 28,028 |
Stock-based compensation expense | 19,770 | 16,047 | 11,011 |
Unrealized foreign exchange gain | (1,001) | (3,798) | (424) |
Deferred income taxes | (3,384) | 2,238 | 76 |
Excess tax benefit from stock-based compensation | (4,326) | (1,458) | (1,181) |
Change in fair value of earn-out consideration | (4,060) | 0 | 0 |
Others, net | (107) | (278) | 295 |
Change in operating assets and liabilities (net of effect of acquisitions): | |||
Restricted cash | (2,137) | (787) | (747) |
Accounts receivable | (18,062) | (9,087) | 3,261 |
Prepaid expenses and other current assets | (5,421) | (3,112) | (3,930) |
Accounts payable | (2,628) | 44 | (146) |
Deferred revenue | 5,726 | 2,566 | (947) |
Accrued employee costs | 5,304 | 8,528 | 179 |
Accrued expenses and other liabilities | 9,080 | (4,699) | 8,426 |
Advance income tax, net | 437 | 8,865 | (7,841) |
Other assets | 4,754 | (1,408) | (1,846) |
Net cash provided by operating activities | 100,258 | 96,691 | 66,659 |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | (25,850) | (25,585) | (27,678) |
Business acquisition (net of cash acquired) | (28,666) | (44,270) | (58,185) |
Purchase of short-term investments | (182,471) | (129,050) | (9,134) |
Proceeds from redemption of short-term investments | 182,320 | 125,365 | 6,735 |
Net cash used for investing activities | (54,667) | (73,540) | (88,262) |
Cash flows from financing activities: | |||
Principal payments on capital lease obligations | (348) | (720) | (967) |
Proceeds from borrowings | 0 | 30,000 | 50,000 |
Repayments of borrowings | (25,000) | (10,000) | 0 |
Proceeds from non-controlling interest | 0 | 176 | 0 |
Payment of debt issuance costs | 0 | (74) | (405) |
Acquisition of treasury stock | (18,203) | (14,195) | (3,322) |
Proceeds from exercise of stock options | 6,499 | 3,375 | 6,459 |
Excess tax benefit from stock-based compensation | 4,326 | 1,458 | 1,181 |
Net cash (used for)/provided by financing activities | (32,726) | 10,020 | 52,946 |
Effect of exchange rate changes on cash and cash equivalents | (5,033) | (4,347) | (2,909) |
Net increase in cash and cash equivalents | 7,832 | 28,824 | 28,434 |
Cash and cash equivalents, beginning of year | 205,323 | 176,499 | 148,065 |
Cash and cash equivalents, end of year | 213,155 | 205,323 | 176,499 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 1,178 | 1,188 | 355 |
Cash paid for taxes, net of refund | 15,667 | 11,505 | 11,204 |
Assets acquired under capital lease | $ 334 | $ 215 | $ 366 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 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”), operates in Business Process Management ("BPM") industry providing operations management services and analytics services 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Basis of Preparation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“US GAAP”). The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of ExlService Holdings and all of its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Non-controlling interest is the equity in a subsidiary not attributable, directly or indirectly, to the parent. Non-controlling interest in the net assets of consolidated subsidiaries is disclosed separately from the Company's equity. Non-controlling interest consists of the amount of such interest at the date of obtaining control over the subsidiary, and the non-controlling interest's share of changes in equity since that date. The non-controlling interest in the operations for the years ended December 31, 2016 and 2015 was insignificant and is included under general and administrative expenses in the consolidated statements of income. (b) Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements 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, recoverability of 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, assumptions used to calculate stock-based compensation expense, depreciation and amortization periods, purchase price allocation, recoverability of long-term assets including goodwill and intangibles, and estimates to complete fixed price contracts. In accordance with its policy, the Company reviews the estimated useful lives of its property, plant and equipment on an ongoing basis. (c) Foreign Currency Translation The functional currency of each entity in the Company is its respective local country currency which is also the currency of the primary economic environment in which it operates except for the entities in Mauritius which use the U.S. dollar as its functional currency. Transactions in foreign currencies are initially recorded into functional currency at the rates of exchange prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into functional currency at the rates of exchange prevailing at the balance sheet date. All transaction foreign exchange gains and losses are recorded in the accompanying consolidated statements of income. The assets and liabilities of the subsidiaries for which the functional currency is other than the U.S. dollar are translated into U.S. dollars, the reporting currency, at the rate of exchange prevailing on the balance sheet date. Revenues and expenses are translated into U.S. dollars at the exchange rates prevailing on the last business day of each month, which approximates the average monthly exchange rate. Resulting translation adjustments are included in accumulated other comprehensive loss in the consolidated balance sheet. (d) Revenue Recognition The Company derives its revenues from operations management and analytics services. Revenues from operations management services are recognized primarily on a time-and-material based, transaction-based, outcome-based, cost-plus and fixed-price basis; revenues from analytics services are recognized primarily on a time-and-material and fixed price basis. The services provided by the Company under its contracts with the customer generally contain one unit of accounting except the software and related services contracts involving implementation services and post contract maintenance services. In such multiple element arrangements, revenue is allocated to maintenance based on the price charged when that element is sold separately (vendor specific objective evidence or “VSOE”). Revenues are recognized when the four basic criteria are met; persuasive evidence of an arrangement exists, the sales price is fixed or determinable, services have been performed and collection of amounts billed is reasonably assured. Revenues under time-and-material, transaction and outcome-based contracts are recognized as the services are performed. When the terms of the client contract specify service level parameters that must be met (such as turnaround time or accuracy), the Company monitors such service level parameters to determine if any service credits or penalties have been incurred. Revenues are recognized net of any penalties or service credits that are due to a client. Revenue from Analytics services including modeling, targeting and designing of campaigns and mail marketing including email marketing and other digital solutions is typically recognized on delivery of such campaigns. In respect of arrangements involving subcontracting, in part or whole, of the assigned work, the Company evaluates revenues to be recognized under Accounting Standard Codification ("ASC") topic 605-45, “Revenue recognition - Principal agent considerations”. Revenues for Company’s fixed-price contracts are recognized using the proportional performance method when the pattern of performance under the contracts can be reasonably determined. The Company estimates the proportional performance of a contract by comparing the actual number of hours or days worked to the estimated total number of hours or days required to complete each engagement. The use of the proportional performance method requires significant judgment relative to estimating the number of hours or days required to complete the contracted scope of work, including assumptions and estimates relative to the length of time to complete the project and the nature and complexity of the work to be performed. The Company regularly monitors its estimates for completion of a project and record changes in the period in which a change in an estimate is determined. If a change in an estimate results in a projected loss on a project, such loss is recognized in the period in which it is first identified. Revenues from the Company's software and related services contracts, which are not significant, are primarily related to maintenance renewals or incremental license fees for additional users. Maintenance revenues are generally recognized on a straight-line basis over the annual contract term. Fees for incremental license fees without any associated services are recognized upon delivery of the related incremental license. To a lesser extent, software and related services contracts may contain software license, related services and maintenance elements as a multiple element arrangement. In such cases, revenue is allocated to maintenance based on the price charged when that element is sold separately (vendor specific objective evidence or “VSOE”). Services related to software licenses are evaluated to determine whether those services are significant or essential to the functionality of the software. When services are significant or considered essential, revenues related to license fee and services are recognized as the services are performed using the percentage of completion method of accounting, under which the total value of revenue is recognized on the basis of the percentage that each contract’s total labor hours to date bears to the total expected labor hours (input method). The Company accrues revenues for services rendered between the last billing date and the balance sheet date. Accordingly, its accounts receivable include amounts for services, as unbilled accounts receivables, that the Company has performed and for which an invoice has not yet been issued to the client. The Company defers the revenues and related cost of revenue while a process is under migration and recognize such revenues and costs ratably over the period during which the related services are expected to be performed. The deferred costs are limited to the amounts of the deferred revenues. Deferred revenue also includes the amount for which the services have been rendered but the other conditions of revenue recognition are not met, for example where the Company does not have the persuasive evidence of the arrangements. Reimbursements of out-of-pocket expenses received from clients are included as part of revenues. Reimbursements of out-of-pocket expenses included in revenues were $21,812 , $18,848 and $19,606 for the years ended December 31, 2016, 2015 and 2014, respectively. (e) Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with an original maturity of ninety days or less to be cash equivalents. Pursuant to the Company’s investment policy, surplus funds are invested in highly-rated mutual funds, money market accounts and time deposits to reduce its exposure to market risk with regard to these funds. Restricted cash represents amounts on deposit with banks against bank guarantees issued through banks for equipment imports and for demands against pending income tax assessments (see Note 19 for details). These deposits with banks have maturity dates before and after December 31, 2017. Restricted cash also includes client funds held in dedicated bank accounts. (f) Investments The Company’s investments consist of time deposits with financial institutions which are valued at cost and approximate fair value. Interest earned on such investments is included in interest income. Investments with original maturities greater than ninety days but less than twelve months are classified as short-term investments. Investments with maturities greater than twelve months from the balance sheet date are classified as long-term investments. The Company's mutual fund investments are in debt and money market funds which invest in instruments of various maturities in India. These investments are accounted for in accordance with the fair value option under ASC topic 825-10 and change in fair value is included in interest and other income. The fair value is represented by original cost on the acquisition date and the net asset value (“NAV”) as quoted, at each reporting period. Gain or loss on the disposal of these investments is calculated using the weighted average cost of the investments sold or disposed and is included in interest and other income. (g) Accounts Receivable Accounts receivable are recorded net of allowances for doubtful accounts. Allowances for doubtful accounts are established through the evaluation of the accounts receivable aging and prior collection experience to ascertain the ultimate collectability of these receivables. As of December 31, 2016 and 2015 , the Company had $241 and $154 of allowance for doubtful accounts, respectively. Accounts receivable include unbilled accounts receivable which represent revenues on contracts to be billed, in subsequent periods, as per the terms of the related contracts. As of December 31, 2016 and 2015 , the Company had $34,785 and $29,589 of unbilled accounts receivable, respectively. (h) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment. Equipment held under capital leases are capitalized at the commencement of the lease at the lower of present value of minimum lease payments at the inception of the leases or its fair value. Advances paid towards acquisition of property, plant and equipment and the cost of property, plant and equipment not yet placed in service before the end of the reporting period are classified as capital work in progress. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Depreciation and amortization on equipment held under capital leases and leasehold improvements are computed using the straight-line method over the shorter of the assets’ estimated useful lives or the lease term. (i) Software Development Costs Costs incurred for developing software or enhancements to the existing software products to be sold and/or used for internal use are capitalized once preliminary project stage is complete and technological feasibility has been established, i.e., it is probable that the software will be used as intended. Costs that qualify as software development costs include (i) external direct costs of materials and services utilized in developing or obtaining computer software, (ii) compensation and related benefits for employees who are directly associated with the software project, and (iii) interest costs (if any) incurred while developing the computer software. The capitalized costs are amortized on a straight-line basis over the estimated useful life. Costs associated with preliminary project stage activities, training, maintenance and all post-implementation stage activities are expensed as incurred. (j) Business Combinations, Goodwill and Other Intangible Assets ASC topic 805, “Business Combinations”, requires that the purchase method of accounting be used for all business combinations. The guidance specifies criteria as to intangible assets acquired in a business combination that must be recognized and reported separately from goodwill. Contingent consideration is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is re-measured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. These fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in the market. Under ASC topic 350, “Intangibles-Goodwill and Other”, all assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition related costs are expensed as incurred under general and administrative expenses. Goodwill represents the cost of the acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis, relying on a number of factors including operating results, business plans and estimated future cash flows of the reporting units to which it is assigned. Recoverability of goodwill is evaluated using a two-step process. The first step involves a comparison of the fair value of a reporting unit with its carrying value. The fair value of the reporting unit is measured by discounting estimated future cash flows. If the carrying amount of the reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the process involves a comparison of the implied fair value and carrying value of the goodwill of that reporting unit. If the carrying value of the reporting unit exceeds the implied fair value of the goodwill, an impairment loss is recognized in an amount equal to the excess. Goodwill of a reporting unit is tested for impairment annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Intangible assets acquired in a business combination are initially valued and recognized at fair market value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over the estimated useful lives and are reviewed for impairment, if indicators of impairment arise. The evaluation of impairment is based upon a comparison of the carrying amount of the intangible asset to its fair value, which is calculated using the estimated future undiscounted net cash flows expected to be generated by the asset. If the fair value of the intangible assets is less than the carrying amount of the asset, the asset is considered impaired and an impairment expense is recognized equal to any shortfall in the current period. The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method: Customer relationships 3-15 years Leasehold benefits 3-8 years Developed technology 5-10 years Non-compete agreements 1-5 years Trade names and trademarks 3-10 years (k) Impairment of long-lived assets Long-lived assets, including intangible assets, to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such assets are required to be tested for impairment if the carrying amount of the assets is higher than the future undiscounted net cash flows expected to be generated from the assets. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. The Company determines fair value by using a discounted cash flow approach. (l) Derivative Financial Instruments In the normal course of business, the Company uses derivative instruments for the purpose of mitigating the exposure from foreign currency fluctuation risks associated with forecasted transactions denominated in certain foreign currencies and to minimize earnings and cash flow volatility associated with changes in foreign currency exchange rates, and not for speculative trading purposes. These derivative contracts are purchased within the Company’s policy and are with counterparties that are highly rated financial institutions. The Company hedges anticipated transactions that are subject to foreign exchange exposure with foreign currency exchange contracts that qualify as cash flow hedges. Changes in the fair value of these cash flow hedges which are deemed effective, are recorded in accumulated other comprehensive income/(loss) (AOCI) until the hedged transactions occur and at that time are recognized in the foreign exchange gain/(loss) in the consolidated statement of income. Changes in the fair value of cash flow hedges deemed ineffective are recognized in the consolidated statements of income and are included in foreign exchange gain/(loss). The Company also uses derivatives instruments consisting of foreign currency exchange contracts to economically hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the functional currency. Changes in the fair value of these derivatives are recognized in the consolidated statements of income and are included in foreign exchange gain/(loss). The Company evaluates hedge effectiveness of cash flow hedges 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 statement of income and is included in foreign exchange gain/(loss). For hedge relationships that are discontinued because the forecasted transaction is not expected to occur by the end of the originally specified period, any related derivative amounts recorded in equity are reclassified to earnings. (m) Employee Benefits Contributions to defined contribution plans are charged to the consolidated statements of income in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. (n) Share-Based Compensation The Company recognizes stock-based compensation expense in the consolidated financial statements for awards of equity instruments to employees and non-employee directors based on the grant-date fair value of those awards. The Company recognizes these compensation costs, net of an estimated forfeiture rate, over the requisite service period of the award. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeiture differs from those estimates. Under the Company’s 2015 Amendment and Restatement of the 2006 Omnibus Award Plan (the “2015 Plan”), the Company grants performance-based restricted stock units (“PRSUs”) to executive officers and other specified employees. 50% of the PRSUs cliff vest based on a revenue target ("PU") at the end of a three -year period. The remaining 50% vest based on a market condition (“MUs”) that is contingent on meeting or exceeding the total shareholder return relative to a group of peer companies specified under the program, measured over a three -year performance period. The award recipient may earn up to two hundred percent ( 200% ) of the PRSUs granted based on the actual achievement of both targets. The fair value of each PU was determined based on the market price of one common share of the Company on the date of grant, and the associated compensation expense was calculated on the basis that performance targets to receive 100% of the PUs is probable of being achieved. The compensation expense for the PUs is recognized on a straight-line basis over the service period, which is through the end of the third year. Over this period, the number of shares that will be issued will be adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized as an expense will be based on a comparison of the final performance metrics to the specified targets. The expense related to the unvested PUs as of December 31, 2016 was based on the Company's assessment that the performance criteria for these grants would be met at the 100% performance target level during the respective years of vesting. The grant date fair value for the MUs was determined using a Monte Carlo simulation model and the related compensation expense is expensed on a straight-line basis over the vesting period. All compensation expense related to the MUs will be recognized if the requisite performance period is fulfilled, even if the market condition is not achieved. (o) Income Taxes The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates. The deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases and all operating losses carried forward, if any. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which the applicable temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax status is recognized in the statement of income in the period in which the change is identified. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company establishes provisions for uncertain tax provisions and related interest and penalties when the Company believes those tax positions are not more likely than not of being sustained, if challenged. (p) Financial Instruments and Concentration of Credit Risk Financial Instruments. For certain financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, accounts payable, accrued expenses, and other current liabilities, recorded amounts approximate fair value due to the relatively short maturity periods of such instruments. Concentration of Credit Risk . Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, time deposits, mutual fund investments, accounts receivable and derivative financial instruments. By their nature, all such financial instruments involve risks including the credit risks of non-performance by counterparties. Pursuant to the Company’s investment policy, its surplus funds are maintained as cash or cash equivalents and are invested in highly-rated mutual funds, money market accounts and time deposits, placed with highly rated financial institutions to reduce its exposure to market risk with regard to these funds. The Company’s exposure to credit risk on account receivable is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customer s. To mitigate this risk the Company evaluates the creditworthiness of its clients in conjunction with its revenue recognition processes as well as through its ongoing collectability assessment processes for accounts receivable. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. (q) Lease Obligations Leases under which the Company assumes substantially all risks and rewards of the ownership are classified as capital lease. When acquired, such assets are capitalized at fair value or present value of minimum committed lease payments at the inception of the lease, whichever is lower. The Company leases its office facilities under non-cancellable operating lease agreements. Office facilities subject to an operating lease and the related lease payments are not recorded on the Company’s balance sheet. Lease payments under operating lease are recognized as an expense on a straight line basis in the consolidated statement of income over the lease term. (r) Government Grants Government grants related to income are recognized as a reduction of expenses in the consolidated statement of income when there is a reasonable assurance that the entity will comply with the conditions attached to the grant and that the grants will be received. (s) Accumulated Other Comprehensive Loss 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 No. 815. Changes in the fair values of contracts that are deemed effective are recognized in other comprehensive income on the Company's consolidated balance sheet until the settlement of those contracts. The balances as of December 31, 2016 and 2015 are as follows: December 31, 2016 December 31, 2015 Cumulative currency translation adjustments $ (77,299 ) $ (68,063 ) Unrealized gain on cash flow hedges, net of taxes of $1,207 and $662 2,740 824 Retirement benefits, net of taxes of ($342) and ($201) (498 ) (86 ) Accumulated other comprehensive loss $ (75,057 ) $ (67,325 ) (t) 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 in process of evaluating the impact of the standard update. The ultimate impact on revenue resulting from the application of the new standard will be subject to assessments that are dependent on many variables, including, but not limited to, the terms of our contractual arrangements and our mix of business. Upon adoption, we expect there to be a change in the manner that variable consideration in our revenue arrangements is recognized from the current practice of recognizing such revenue as the services are performed and the variable consideration is earned to estimating the achievability of the variable conditions when we begin delivering services and recognizing that amount over the contractual period. The Company also expects a change in the manner that we recognize certain incremental and fulfillment costs from expensing them as incurred to deferring and recognizing them over the contractual period. The Company continues to evaluate the available transition methods and our contractual arrangements. Our considerations include, but are not limited to, the comparability of our financial statements and the comparability within our industry from application of the new standard to our contractual arrangements. We plan to select a transition method by the second half of 2017. We have established an implementation team to implement the standard update related to the recognition of revenue from contracts with customers. The Company continues to evaluate the changes to accounting system and processes, and additional disclosure requirements that may be necessary. 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 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, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718). ASU No. 2016-09 identifies areas for simpl |
Segment & Geographical Informat
Segment & Geographical Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segment & Geographical Information The Company operates in the BPM industry and is a provider of operations management and analytics services. The Company has eight operating segments which are strategic business units that align its products and services with how it manages its business, approaches its key markets and interacts with its clients. Six of those operating segments provide BPM or “operations management” services, which it organizes into industry-focused operating segments (Insurance, Healthcare, Travel, Transportation and Logistics, Banking and Financial Services, and Utilities) and one “capability” operating segment (Finance and Accounting) that provides services to clients in our industry-focused segments as well as clients across other industries. In each of these six operating segments, the Company provides operations management services, which typically involve transfer to the Company of select business operations of a client, after which it administers and manages those operations for its client on an ongoing basis. The remaining two operating segments are Consulting, which provides industry-specific transformational services related to operations management services, and the Analytics operating segment, which provides services that focus on driving improved business outcomes for clients by generating data-driven insights across all parts of their business. In prior years the Company presented two reportable segments: Operations Management (which included its insurance, healthcare, travel, transportation and logistics, finance and accounting, banking and financial services, utilities and consulting operating segments) and Analytics. Effective for the quarter and year ended December 31, 2016, the Company presents information for the following reportable segments: • Insurance • Healthcare • Travel, Transportation and Logistics (“TT&L”) • Finance and Accounting (“F&A”), and • Analytics The remaining operating segments which includes banking and financial services, utilities and consulting operating segments have been included in a category called “All Other”. Segment information for all prior years presented herein has been changed to conform to the current presentation. This change in segment presentation does not affect its consolidated statements of income and comprehensive income, balance sheets or statements of cash flows. The chief operating decision maker (“CODM”) generally reviews financial information such as revenues, cost of revenues and gross profit, disaggregated by the operating segments to allocate an overall budget among the operating segments. The Company does not allocate and therefore the CODM does not evaluate other operating expenses, interest expense or income taxes by segment. Many of the Company’s assets are shared by multiple operating segments. The Company manages these assets on a total Company basis, not by operating segment, and therefore asset information and capital expenditures by operating segment are not presented. The July 2016 acquisition of Liss Systems Limited (“Liss”) is included in the Insurance reportable segment. Similarly, the September 2016 acquisition of IQR Consulting Inc. (“IQR”) along with the October 2016 acquisition of Datasource Consulting, LLC (“Datasource”) are included in the Analytics reportable segment. Revenues and cost of revenues for each of the years ended December 31, 2016, 2015 and 2014, for each of the reportable segments, are as follows: Year ended December 31, 2016 Insurance Healthcare TT&L F&A Analytics All Other Total Revenues, net $ 206,327 $ 68,656 $ 69,366 $ 79,416 $ 165,734 $ 96,489 $ 685,988 Cost of revenues (exclusive of depreciation and amortization) 146,203 44,098 41,962 48,302 106,341 61,050 447,956 Gross profit $ 60,124 $ 24,558 $ 27,404 $ 31,114 $ 59,393 $ 35,439 $ 238,032 Operating expenses 173,810 Foreign exchange gain, interest expense and other income, net 19,662 Income tax expense 22,151 Net income $ 61,733 Year ended December 31, 2015 Insurance Healthcare TT&L F&A Analytics All Other Total Revenues, net $ 199,878 $ 55,209 $ 62,264 $ 78,504 $ 122,151 $ 110,486 $ 628,492 Cost of revenues (exclusive of depreciation and amortization) 134,196 37,224 37,506 46,846 78,838 68,307 402,917 Gross profit $ 65,682 $ 17,985 $ 24,758 $ 31,658 $ 43,313 $ 42,179 $ 225,575 Operating expenses 158,232 Foreign exchange gain, interest expense and other income, net 8,433 Income tax expense 24,211 Net income $ 51,565 Year ended December 31, 2014 Insurance Healthcare TT&L F&A Analytics All Other Total Revenues, net $ 151,308 $ 42,848 $ 47,492 $ 92,013 $ 65,615 $ 100,002 $ 499,278 Cost of revenues (exclusive of depreciation and amortization) 107,026 29,598 29,945 56,770 46,042 63,154 332,535 Gross profit $ 44,282 $ 13,250 $ 17,547 $ 35,243 $ 19,573 $ 36,848 $ 166,743 Operating expenses 132,703 Foreign exchange gain, interest expense and other income, net 3,598 Income tax expense 5,193 Net income $ 32,445 Net revenues of the Company by service type, were as follows: Year ended December 31, 2016 2015 2014 BPM and related services (1) $ 520,254 $ 506,341 $ 433,663 Analytics services 165,734 122,151 65,615 Total $ 685,988 $ 628,492 $ 499,278 (1) BPM and related services include revenues of all the operating segments other than Analytics. See reportable segment disclosure above. The Company attributes the revenues to regions based upon the location of its customers. Year ended December 31, 2016 2015 2014 Revenues, net United States $ 554,945 $ 496,418 $ 368,870 Non-United States United Kingdom 109,905 108,868 101,789 Rest of World 21,138 23,206 28,619 Total Non-United States 131,043 132,074 130,408 $ 685,988 $ 628,492 $ 499,278 Property, plant and equipment by geographic area, were as follows: December 31, 2016 December 31, 2015 Property, plant and equipment, net India $ 23,362 $ 23,415 United States 10,809 10,680 Philippines 11,900 11,285 Rest of World 2,958 2,611 $ 49,029 $ 47,991 For a discussion of risks attendant to foreign operations, see “Item 1A. Risk Factors - Risks Related to the International Nature of Our Business”. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Quarterly Financial Data (Unaudited) Summarized quarterly results for the years ended December 31, 2016 and 2015 are as follows: Three months ended 2016 Year ended March 31 June 30 September 30 December 31 December 31, 2016 Revenues, net $ 167,036 $ 170,478 $ 171,200 $ 177,274 $ 685,988 Gross profit $ 58,657 $ 58,452 $ 59,433 $ 61,490 $ 238,032 Net income $ 13,820 $ 16,375 $ 16,050 $ 15,488 $ 61,733 Earnings Per Share: Basic* $ 0.41 $ 0.49 $ 0.48 $ 0.46 $ 1.84 Diluted* $ 0.40 $ 0.47 $ 0.46 $ 0.45 $ 1.79 Weighted-average number of shares used in computing earnings per share: Basic* 33,380,028 33,621,444 33,624,401 33,638,170 33,566,367 Diluted* 34,351,657 34,510,400 34,675,485 34,714,308 34,563,319 Stock compensation expense $ 5,809 $ 4,450 $ 4,484 $ 5,027 $ 19,770 Amortization of intangibles $ 2,715 $ 2,718 $ 2,848 $ 3,592 $ 11,873 Three months ended 2015 Year ended March 31 June 30 September 30 December 31 December 31, 2015 Revenues, net $ 143,510 $ 155,621 $ 163,503 $ 165,858 $ 628,492 Gross profit $ 50,385 $ 55,143 $ 60,305 $ 59,742 $ 225,575 Net income $ 9,567 $ 12,074 $ 15,162 $ 14,762 $ 51,565 Earnings Per Share: Basic * $ 0.29 $ 0.36 $ 0.46 $ 0.44 $ 1.55 Diluted * $ 0.28 $ 0.35 $ 0.44 $ 0.43 $ 1.51 Weighted-average number of shares used in computing earnings per share: Basic* 33,236,259 33,417,079 33,307,312 33,231,716 33,298,104 Diluted* 34,051,971 34,207,973 34,180,635 34,272,731 34,178,340 Stock compensation expense $ 4,255 $ 3,553 $ 4,471 $ 3,768 $ 16,047 Amortization of intangibles $ 2,059 $ 2,808 $ 2,642 $ 2,717 $ 10,226 * Total of quarterly basic and diluted earnings per share and weighted average number of shares used in computing earnings per share will not be equal to year end basic and diluted earnings per share and weighted average number of shares used in computing earnings per share, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 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: Year ended December 31, 2016 2015 2014 Numerators: Net income $ 61,733 $ 51,565 $ 32,445 Denominators: Basic weighted average common shares outstanding 33,566,367 33,298,104 32,804,606 Dilutive effect of share based awards 996,952 880,236 831,987 Diluted weighted average common shares outstanding 34,563,319 34,178,340 33,636,593 Earnings per share: Basic $ 1.84 $ 1.55 $ 0.99 Diluted $ 1.79 $ 1.51 $ 0.96 Weighted average common shares considered anti-dilutive in computing diluted earnings per share 92,538 73,896 114,395 |
Other Income, net
Other Income, net | 12 Months Ended |
Dec. 31, 2016 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income, net | Other Income, net Other Income, net consists of the following: Year ended December 31, 2016 2015 2014 Interest and dividend income $ 1,673 $ 2,904 $ 3,709 Gain on sale of mutual fund investments 8,087 3,902 — Change in fair value of earn-out consideration 4,060 — — Other, net 1,588 221 263 Other income, net $ 15,408 $ 7,027 $ 3,972 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consist of the following: Estimated useful lives (Years) December 31, 2016 December 31, 2015 Owned Assets: Network equipment, computers and software 3-5 $ 109,998 $ 95,245 Leasehold improvements 3-8 31,192 28,603 Office furniture and equipment 3-8 15,426 14,000 Motor vehicles 2-5 580 540 Buildings 30 1,171 1,202 Land - 766 787 Capital work in progress - 4,964 3,140 164,097 143,517 Less: Accumulated depreciation and amortization (115,568 ) (96,079 ) $ 48,529 $ 47,438 Assets under capital leases: Leasehold improvements $ 854 $ 877 Office furniture and equipment 133 136 Motor vehicles 810 806 1,797 1,819 Less: Accumulated depreciation and amortization (1,297 ) (1,266 ) $ 500 $ 553 Property, Plant and Equipment, net $ 49,029 $ 47,991 Total depreciation and amortization expense excluding amortization of intangibles for the year ended December 31, 2016 , 2015 and 2014 was $22,707 , $21,239 and $21,405 , respectively. The Company capitalized software development costs, during the year ended December 31, 2016 and December 31, 2015 amounting to $2,242 and nil , respectively, which is included under Network equipment, computers and software. Amortization expense for the capitalized software development costs for the year ended December 31, 2016 and December 31, 2015 was $336 and nil , respectively. Capital work in progress represents advances paid towards acquisition of property, plant and equipment and cost of property, plant and equipment and internally generated software costs not yet ready to be placed in service. During the year ended December 31, 2016, the review indicated that there were no changes in estimated useful lives of property, plant and equipment. |
Business Combinations, Goodwill
Business Combinations, Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations, Goodwill and Intangible Assets | Business Combinations, Goodwill and Intangible Assets a) Liss Systems Limited On July 1, 2016, the Company entered into a share purchase agreement (the “Liss Agreement”) for the purchase of Liss. Pursuant to the Liss Agreement, the Company purchased all of the issued and outstanding shares of Liss from the Liss shareholders for a cash consideration of $5,111 . A portion of the purchase consideration otherwise payable was placed into escrow as security for the post-closing working capital adjustments and the indemnification obligations under the Liss Agreement. The Company also issued 33,459 shares of restricted common stock with an aggregate fair value of $1,754 to certain key employees of Liss, each of whom accepted employment positions with the Company upon consummation of the combination. The restricted common stock vest proportionally over four years and the fair value of these grants will be recognized as compensation expense on a straight-line basis over the vesting term. Liss is a provider of policy administration solutions for the life insurance and pensions industry. Liss’s flagship "LISSIA" platform includes multi-channel interfaces, underwriting, workflow engines, and document production modules to automate new policy issuance and simplify policy administration. Liss’s technology platform combined with EXL platforms’ such as LifePRO ® will automate key customer processes from new business to policy administration with very little human interactions. Accordingly, the Company paid a premium for the acquisition which is being reflected in the goodwill recognized from the purchase price allocation. During the three months ended December 31, 2016, the Company finalized its purchase price allocation for the acquisition based on their fair values as set forth below: Amount Tangible assets $ 517 Tangible liabilities (993 ) Deferred tax liability (643 ) Identifiable intangible assets: Customer relationships 1,918 Developed technology 1,571 Trade names and trademarks 231 Goodwill 2,510 Total purchase price $ 5,111 The amount of goodwill recognized from the Liss acquisition is not deductible for tax purposes. The intangibles such as customer relationships, developed technology and trade names and trademarks from the Liss acquisition are being amortized over a useful life of five , ten and three years, respectively. b) IQR Consulting Inc. On September 1, 2016, the Company entered into a share purchase agreement (the “IQR Agreement”) for the purchase of IQR. Pursuant to the IQR Agreement, the Company purchased all of the issued and outstanding shares of IQR from the IQR shareholders for an aggregate consideration of $5,092 . A portion of the purchase consideration otherwise payable was placed into escrow as security for post-closing working capital adjustments and the indemnification obligations under the IQR Agreement. The Company also issued 21,987 restricted stock units with an aggregate fair value of $1,125 to certain key employees of IQR, each of whom accepted employment positions with the Company upon consummation of the combination. The restricted stock units vest proportionally over four years and the fair value of these grants will be recognized as compensation expense on a straight line basis over the vesting term. IQR is a provider of marketing and risk analytics services to super-regional banks and credit unions. IQR specializes in data analytics and related consulting services. IQR’s industry focus aligns well with the Company's Analytics strengths and the Company anticipates the acquisition will allow the Company to penetrate into super-regional banks, as well as the underserved credit union market. Accordingly, the Company paid a premium for the acquisition, which is reflected in the goodwill recognized from the purchase price allocation. During the three months ended December 31, 2016, the Company finalized its purchase price allocation for the acquisition based on their fair values as set forth below: Amount Tangible assets $ 1,449 Tangible liabilities (420 ) Deferred tax liability (836 ) Identifiable intangible assets: Customer relationships 2,300 Goodwill 2,599 Total purchase price $ 5,092 The amount of goodwill recognized from the IQR acquisition is not deductible for tax purposes. The customer relationships from the IQR acquisition are being amortized over the average useful life of eight years. c) Datasource Consulting, LLC. On October 22, 2016, the Company entered into a membership interests purchase agreement (the “Datasource Agreement”) for the purchase of Datasource. Pursuant to the Datasource Agreement, the Company purchased all of the membership interest of Datasource from its members for an aggregate consideration of $20,318 . A portion of the purchase consideration otherwise payable was placed into escrow as security for the post-closing working capital adjustments and the indemnification obligations under the Datasource Agreement. The Company also issued 93,604 shares of restricted common stock with an aggregate fair value of $4,483 to certain key employees of Datasource, each of whom accepted employment positions with the Company upon consummation of the combination. The restricted common stock vest proportionally over four years and the fair value of these grants will be recognized as compensation expense on a straight line basis over the vesting term. Datasource is specialized in Enterprise Data Management and Business Intelligence. Datasource helps clients design data management strategies, implement data infrastructure and manage data assets. This acquisition expands the Company's addressable market within analytics and allows it to compete in the large and growing enterprise data management and business intelligence markets. Accordingly, the Company paid a premium for the acquisition, which is reflected in the goodwill recognized from the purchase price allocation. The Company has preliminarily allocated the purchase price to the net tangible and intangible assets based on their fair values as set forth below: Amount Tangible assets $ 3,582 Tangible liabilities (1,503 ) Identifiable intangible assets: Customer relationships 6,340 Developed technology 520 Trade names and trademarks 380 Goodwill 10,999 Total purchase price $ 20,318 The amount of goodwill recognized from the Datasource acquisition is deductible for tax purposes. The customer relationships from the Datasource acquisition are being amortized over the weighted average useful life of 6 years, and developed technology and trademarks are being amortized over the useful life of 5 years and 3 years, respectively. Under ASC topic 805, “Business Combinations,” the preliminary allocation of the purchase price to the tangible and intangible assets and liabilities acquired may change for a period of up to one year from the date of the acquisition. The Company’s purchase accounting for Datasource as of December 31, 2016 was incomplete and the Company expects to complete the working capital adjustment and valuation of the tangible assets, intangible assets and liabilities assumed as of the acquisition date during the first quarter of 2017. Accordingly, the Company may adjust the amounts recorded as of December 31, 2016 to reflect the final valuations of the assets acquired or liabilities assumed. During the year ended December 31, 2016, the Company recognized $633 as acquisition related costs for its Liss, IQR and Datasource acquisitions. Such amounts are included in general and administrative expenses in the consolidated statements of income. The Company’s results of operations for the year ended December 31, 2016 includes revenues of $6,855 from its Liss, IQR and Datasource acquisitions from the date on which these acquisitions were consummated through December 31, 2016. It is not practicable to disclose the net earnings since management does not allocate or evaluate operating expenses and income taxes at that level. Goodwill The following table sets forth details of the Company’s goodwill balance as of December 31, 2016 : Insurance Healthcare TT&L F&A Analytics All Other Total Balance as at January 1, 2015 $ 35,824 $ 19,276 $ 13,833 $ 48,555 $ 16,785 $ 5,326 $ 139,599 Acquisitions — — — — 33,155 — 33,155 Currency translation adjustments — — (555 ) (664 ) — — (1,219 ) Balance as at December 31, 2015 $ 35,824 $ 19,276 $ 13,278 $ 47,891 $ 49,940 $ 5,326 $ 171,535 Acquisitions 2,510 — — — 13,598 — 16,108 Currency translation adjustments (224 ) — (295 ) (354 ) — — (873 ) Balance as at December 31, 2016 $ 38,110 $ 19,276 $ 12,983 $ 47,537 $ 63,538 $ 5,326 $ 186,770 Based on the results of the impairment testing performed during the year ended December 31, 2016 , the Company’s goodwill was not impaired. The Company makes every reasonable effort to ensure that it accurately estimates the fair value of the reporting units. However, future changes in the assumptions used to make these estimates could result in an impairment loss. Intangible Assets Information regarding the Company’s intangible assets is set forth below: As of December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Customer relationships $ 75,181 $ (32,968 ) $ 42,213 Leasehold benefits 2,715 (2,247 ) 468 Developed technology 14,186 (6,468 ) 7,718 Non-compete agreements 2,045 (1,612 ) 433 Trade names and trademarks 5,360 (3,322 ) 2,038 $ 99,487 $ (46,617 ) $ 52,870 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 100,387 $ (46,617 ) $ 53,770 As of December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Customer relationships $ 64,816 $ (24,215 ) $ 40,601 Leasehold benefits 2,789 (2,109 ) 680 Developed technology 12,234 (4,363 ) 7,871 Non-compete agreements 2,045 (1,451 ) 594 Trade names and trademarks 4,770 (2,683 ) 2,087 $ 86,654 $ (34,821 ) $ 51,833 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 87,554 $ (34,821 ) $ 52,733 Amortization expense for the years ended December 31, 2016 , 2015 and 2014 was $11,873 , $10,226 and $6,623 , respectively. The remaining weighted average life of intangible assets was 5.8 years for customer relationships, 2.4 years for leasehold benefits, 4.9 years for developed technology, 2.5 years for non-compete agreements and 5.3 years for trade names and trademarks. Estimated amortization of intangible assets during the year ending December 31: 2017 $ 13,910 2018 12,156 2019 11,257 2020 4,111 2021 and thereafter 11,436 Total $ 52,870 |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current | Accrued expenses and other current liabilities Accrued expenses and other current liabilities consists of the following: December 31, 2016 December 31, 2015 Accrued expenses $ 30,690 $ 26,238 Derivative instruments 1,430 1,226 Client liability account 4,005 2,217 Other current liabilities 7,139 4,569 Accrued expenses and other current liabilities $ 43,264 $ 34,250 |
Non-current liabilities
Non-current liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Liabilities, Noncurrent [Abstract] | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Noncurrent | Non-current liabilities Non-current liabilities consists of the following: December 31, 2016 December 31, 2015 Derivative instruments $ 828 $ 1,132 Unrecognized tax benefits 3,640 3,066 Deferred rent 7,237 6,515 Retirement benefits 1,977 1,441 Other non-current liabilities 1,137 5,501 Non-current liabilities $ 14,819 $ 17,655 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC topic 820, “Fair Value Measurements and Disclosures ” ("ASC No. 820") defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk, including the Company’s own credit risk. ASC No. 820 establishes a three-level hierarchy of fair value measurements based on whether the inputs to those measurements are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The fair-value hierarchy requires the use of observable market data when available and consists of the following levels: • Level 1—Quoted prices for identical instruments in active markets; • Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets; and • Level 3—Valuations derived from valuation techniques in which one or more significant inputs are unobservable. The following table sets forth the Company’s assets and liabilities that were accounted for at fair value as of December 31, 2016 and 2015 . The table excludes short-term investments, accounts receivable, accounts payable and accrued expenses for which fair values approximate their carrying amounts. Assets and Liabilities Measured at Fair Value The assets and liabilities measured at fair value on recurring basis are summarized below: As of December 31, 2016 Level 1 Level 2 Level 3 Total Assets Money market and mutual funds* $ 118,185 $ — $ — $ 118,185 Derivative financial instruments — 6,319 — 6,319 Total $ 118,185 $ 6,319 $ — $ 124,504 Liabilities Derivative financial instruments $ — $ 2,258 $ — $ 2,258 Total $ — $ 2,258 $ — $ 2,258 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 * Included as a part of cash and cash equivalents. 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 12 for further details. 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 acquisition of RPM Direct LLC and RPM Data Solutions LLC (collectively, "RPM") in 2015. The measurement was 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. The Company estimated the fair value of the earn out consideration to be $4,060 utilizing a Monte Carlo simulation as at December 31, 2015. 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. The performance goals of RPM were not achieved during calendar year 2016 and accordingly the Company reduced the liability to nil as of December 31, 2016. |
Derivatives and Hedge Accountin
Derivatives and Hedge Accounting | 12 Months Ended |
Dec. 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 exchanges rates. The Company’s derivative financial instruments are largely forward foreign exchange contracts that are designated effective and that qualify as cash flow hedges under ASC No. 815. The Company had outstanding cash flow hedges totaling $218,545 as of December 31, 2016 and $230,894 as of December 31, 2015 . The changes in the fair value of these cash flow hedges is recognized in the other comprehensive income on the Company's 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 $71,318 and GBP 11,153 as of December 31, 2016 and amounted to $61,641 and GBP 13,256 as of December 31, 2015 . The Company estimates that approximately $1,781 of net derivative losses included in accumulated other comprehensive loss (“AOCI”) could be reclassified into earnings within the next twelve months based on exchange rates prevailing as of December 31, 2016 . At December 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 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 years ended December 31, 2016 and 2015 . The following tables set forth the fair value of the foreign currency exchange contracts and their location on the consolidated financial statements: Derivatives designated as hedging instruments: December 31, 2016 December 31, 2015 Other current assets: Foreign currency exchange contracts $ 3,211 $ 2,664 Other assets: Foreign currency exchange contracts $ 2,994 $ 1,175 Accrued expenses and other current liabilities: Foreign currency exchange contracts $ 1,430 $ 1,226 Other non-current liabilities: Foreign currency exchange contracts $ 828 $ 1,132 Derivatives not designated as hedging instruments: December 31, 2016 December 31, 2015 Other current assets: Foreign currency exchange contracts $ 113 $ 345 The following tables set forth the effect of foreign currency exchange contracts on the consolidated statements of income for the years ended December 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 $ 3,895 $ (1,111 ) Foreign exchange gain/(loss) $ 1,434 $ (1,117 ) 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 $ 4,790 $ 862 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 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 , which it exercised on February 23, 2015 through an amendment to 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 Agreement bear interest at a rate equal to the specified prime rate (alternate base rate) or adjusted LIBO rate, plus, an applicable margin. The applicable margin is tied to the Company’s leverage ratio and ranges from 0.25% to 0.75% per annum with respect to loans pegged to the specified prime rate, and 1.25% to 1.75% per annum on loans pegged to the adjusted LIBO rate. The revolving credit commitments under the Credit Agreement are subject to a commitment fee. The commitment fee is also tied to the Company’s leverage ratio, and ranges from 0.20% to 0.30% per annum on the average daily amount by which the aggregate revolving commitments exceed the sum of outstanding revolving loans and letter of credit obligations. The Credit Facility carried an effective interest rate of 2.21% per annum during the year ended December 31, 2016. Borrowings under the Credit Facility may be used for working capital, general corporate purposes and for acquisitions. The amount outstanding as of December 31, 2016 is $45,000 , of which $10,000 is expected to be repaid within next twelve months and is included under “short-term borrowings” in the consolidated balance sheet. In connection with the financing, the Company incurred 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 December 31, 2016 and December 31, 2015 was $272 and $368 , respectively and is included under "other current assets" and “other assets” in the consolidated balance sheets. The Credit Facility is guaranteed by the Company's domestic subsidiaries and material foreign subsidiaries and is 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 our indebtedness, and a covenant to not permit the interest coverage ratio (the ratio of EBIT to cash interest expense) or the leverage ratio (total funded indebtedness to EBITDA), for the four consecutive quarter period ending on the last day of each fiscal quarter, to be less than 3.5 to 1.0 or 2.5 to 1.0, respectively. At December 31, 2016, we were in compliance with the financial covenants listed above. |
Capital Structure
Capital Structure | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Capital Structure | Capital Structure Common Stock The Company has one class of common stock outstanding. During the years ended December 31, 2016 and 2015 , the Company acquired 17,676 and 15,078 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 $807 and $484 , respectively. The weighted average purchase price per share of $45.65 and $32.10 , respectively, was the average of the high and low price of the Company’s share of common stock on the Nasdaq Global Select Market on the trading day prior to the vesting date of the shares of restricted stock. 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 year ended December 31, 2016 , the Company purchased 364,056 shares of its common stock for an aggregate purchase price of approximately $17,396 , including commissions, representing an average purchase price per share of $47.78 under the 2014 Repurchase program. During the year ended December 31, 2015 , the Company purchased 377,015 shares of its common stock for an aggregate purchase price of approximately $13,711 , including commissions, representing an average purchase price per share of $36.37 under the 2014 Repurchase program. 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. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company’s Gratuity Plans in India ("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. In addition, the Company’s subsidiary operating in the Philippines conforms to the minimum regulatory benefit which provide for lump sum payment to vested employees on retirement from employment in an amount based on the respective employee’s salary and years of employment with the Company (the "Philippines Plan"). The benefit costs of the Philippines Plan for the year are calculated on an actuarial basis. The benefit obligation has been measured as of December 31, 2016 . The following table sets forth the activity and the funded status of the Gratuity Plans and the amounts recognized in the Company’s consolidated financial statements at the end of the relevant periods: December 31, 2016 2015 Change in projected benefit obligation: Projected benefit obligation at the beginning of the year $ 7,909 $ 7,563 Service cost 1,601 1,638 Interest cost 599 550 Benefits paid (837 ) (851 ) Actuarial (gain)/loss 677 (609 ) Acquisition 47 — Effect of exchange rate changes (285 ) (382 ) Projected benefit obligation at the end of the year $ 9,711 $ 7,909 Unfunded amount–non-current $ 1,977 $ 1,441 Unfunded amount–current 2,094 1,545 Total accrued liability $ 4,071 $ 2,986 Accumulated benefit obligation $ 6,533 $ 5,537 Net gratuity cost includes the following components: Year ended December 31, 2016 2015 2014 Service cost $ 1,601 $ 1,638 $ 1,523 Interest cost 599 550 559 Expected return on plan assets (416 ) (385 ) (172 ) Actuarial loss 90 211 149 Net gratuity cost $ 1,874 $ 2,014 $ 2,059 The amount in accumulated other comprehensive loss that is expected to be recognized as a component of net periodic benefit cost over the next fiscal year is $268 . The components of accumulated other comprehensive loss that have not been recognized as components of net gratuity cost in the statement of income as of December 31, 2016 and 2015 is as follows: December 31, 2016 2015 Net actuarial loss $ 489 $ 77 Net prior service cost 9 9 Accumulated other comprehensive loss, net of tax $ 498 $ 86 The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost are: December 31, 2016 2015 2014 Discount rate 6.8 % 7.8 % 8.0 % Rate of increase in compensation levels 9.2 % 8.4 % 8.2 % Expected long term rate of return on plan assets per annum 9.0 % 9.0 % 9.0 % The Company evaluates these assumptions annually based on its long-term plans of growth and industry standards. The discount rates are based on current market yields on government securities adjusted for a suitable risk premium. Expected benefit payments during the year ending December 31, 2017 $ 2,782 2018 $ 2,407 2019 $ 2,146 2020 $ 1,960 2021 $ 1,785 2022 to 2026 $ 5,238 The Company's gratuity plan in India is partially funded and the Philippines Plan is unfunded. 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. Change in Plan Assets Plan assets at January 1, 2015 $ 4,752 Actual return 355 Employer contribution 903 Benefits paid* (851 ) Effect of exchange rate changes (236 ) Plan assets December 31, 2015 $ 4,923 Actual return 450 Employer contribution 1,242 Benefits paid* (837 ) Effect of exchange rate changes (138 ) Plan assets December 31, 2016 $ 5,640 * All Benefits payments were made through the plan assets during the year ended December 31, 2016 and December 31, 2015. 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 in the Code is a defined contribution plan. The Company may make discretionary contributions of up to a maximum of 3% of employee compensation within certain limits. Contributions to the 401(k) Plan amounted to $2,383 , $1,907 and $1,503 during the years ended December 31, 2016 , 2015 and 2014 , respectively. During the years ended December 31, 2016 , 2015 and 2014 , the Company contributed $6,306 , $5,753 and $5,802 for the years ended December 31, 2016, 2015 and 2014, respectively, for various defined contribution plans on behalf of its employees in India, the Philippines, Bulgaria, Romania, the Czech Republic, South Africa, Colombia, and Singapore. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Leases | Leases The Company finances its use of certain motor vehicles under various lease arrangements provided by financial institutions. Future minimum lease payments under these capital leases as of December 31, 2016 are as follows: Year ending December 31: 2017 $ 289 2018 186 2019 117 2020 47 Total minimum lease payments 639 Less: amount representing interest 107 Present value of minimum lease payments 532 Less: current portion 232 Long term capital lease obligation $ 300 The Company conducts its operations using facilities leased under non-cancelable operating lease agreements that expire at various dates. Future minimum lease payments under non-cancelable agreements expiring after December 31, 2016 are set forth below: Year ending December 31: 2017 $ 9,586 2018 8,119 2019 5,895 2020 4,085 2021 1,950 2022 and thereafter 1,398 Future minimum lease payment $ 31,033 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 $21,382 , $19,943 and $18,884 for the years ended December 31, 2016 , 2015 and 2014 , respectively. Deferred rent as of December 31, 2016 and 2015 was $7,915 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 | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income before income taxes consist of the following: Year ended December 31, 2016 2015 2014 Domestic $ 12,652 $ 25,045 $ (4,785 ) Foreign 71,232 50,731 42,423 $ 83,884 $ 75,776 $ 37,638 The income tax expense consists of the following: Year ended December 31, 2016 2015 2014 Current provision/(benefit): Domestic $ 7,107 $ 9,951 $ (1,069 ) Foreign 18,428 12,022 6,186 $ 25,535 $ 21,973 $ 5,117 Deferred provision/(benefit): Domestic $ (2,506 ) $ 3,041 $ 535 Foreign (878 ) (803 ) (459 ) $ (3,384 ) $ 2,238 $ 76 Income tax expense $ 22,151 $ 24,211 $ 5,193 The effective income tax rate differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes approximately as follows: December 31, 2016 2015 2014 Expected tax expense $ 29,361 $ 26,521 $ 12,797 Change in valuation allowance 22 19 64 Impact of tax holiday (4,027 ) (2,991 ) (3,208 ) Foreign tax rate differential (2,716 ) (2,797 ) (3,327 ) Deferred tax (benefit)/provision (878 ) (803 ) (459 ) Unrecognized tax benefits and interest 495 324 (1,846 ) State taxes, net of Federal taxes 202 1,327 593 Non-deductible expenses 144 26 15 Prior year tax expense/(benefit) — 2,450 — Other (452 ) 135 564 Tax expense $ 22,151 $ 24,211 $ 5,193 The effective tax rate decreased from 32.0% for the year ended December 31, 2015 to 26.4% for the year ended December 31, 2016. The decrease was the result of (i) higher income tax expense during the year ended December 31, 2015 due to certain adjustments; (ii) lower domestic profits in 2016; and (iii) higher earnings and incentives in lower tax jurisdictions. We also derive benefit from a corporate tax holiday in the Philippines for our operations centers established there over the last several years. The tax holiday expired for two of our centers in 2014 and in 2016 and will expire over the next six years for other centers, which may lead to an increase in our overall tax rate. Following the expiry of the tax exemption, income generated from centers in the Philippines will be taxed at the prevailing annual tax rate, which is currently 5% on gross income. Certain operations centers in India, which were established in Special Economic Zones (“SEZs”), are eligible for tax incentives until 2025. These operations centers are eligible for a 100% income tax exemption for first five years of operations and 50% exemption for a period of five years thereafter. The diluted earnings per share effect of the tax holiday is $0.12 , $0.09 and $0.10 for the years ended December 31, 2016 , 2015 and 2014 , respectively. The components of the deferred tax balances as of December 31, 2016 and 2015 are as follows: December 31, 2016 2015 Deferred tax assets: Tax credit carry forward $ 4,806 $ 5,164 Depreciation and amortization 3,765 3,777 Share-based compensation 10,385 8,099 Accrued employee costs and other expenses 5,130 3,079 Net operating loss carry forwards 1,856 3,746 Unrealized exchange loss 2,099 1,136 Deferred rent 1,307 1,292 Others 484 62 $ 29,832 $ 26,355 Valuation allowance (454 ) (595 ) Deferred tax assets $ 29,378 $ 25,760 Deferred tax liabilities: Unrealized exchange gain $ 1,414 $ 848 Intangible assets 13,165 11,163 Deferred tax liabilities: $ 14,579 $ 12,011 Net deferred tax assets $ 14,799 $ 13,749 Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of assets and liabilities and their respective tax bases and operating loss carry forwards. At December 31, 2016 and 2015 , the Company performed an analysis of the deferred tax asset valuation allowance for net operating loss carry forward for its domestic entities. Based on this analysis, the Company continues to carry a valuation allowance on the deferred tax assets on certain net operating loss carry forwards. Accordingly, the Company had recorded a valuation allowance of $351 and $512 as of December 31, 2016 and 2015 , respectively. The Company also recorded a valuation allowance of $103 and $83 related to tax credit carry forward as of December 31, 2016 and 2015, respectively. As a result of the multiple acquisitions over the last few years, the Company acquired federal and state net operating losses in the United States. As of December 31, 2016 and 2015 , the Company has federal net operating loss carry forwards of approximately $4,052 and $9,063 , respectively, which expire through various years until 2032 . The Company’s federal net operating loss carry forwards are subject to certain annual utilization limitations under Section 382 of the United States Internal Revenue Code. The Company also has state and local net operating loss carry forwards of varying amounts, which are subject to limitations under the applicable rules and regulations of those taxing jurisdictions. The Company estimates that it will be able to utilize all of the losses before their expiration. At December 31, 2016 and 2015 , no deferred income taxes have been provided for the Company’s share of undistributed net earnings of foreign operations due to management’s intent to reinvest such amounts indefinitely. Such earnings totaled approximately $315,486 and $261,804 as of December 31, 2016 and 2015, respectively. The determination of the amount of such unrecognized deferred taxes is not practicable. The Company’s income tax expense also includes the impact of provisions established for uncertain income tax positions determined in accordance with ASC topic 740, “ Income Taxes ” , as well as the related net interest. Tax exposures can involve complex issues and may require an extended resolution period. Although the Company believes that it has adequately reserved for its uncertain tax positions, no assurance can be given that the final tax outcome of these matters will not be different. The Company adjusts these reserves in light of changing facts and circumstances, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters differs from the amounts recorded, such differences will impact the income tax expense in the period in which such determination is made. The following table summarizes the activity related to the gross unrecognized tax benefits from January 1, 2016 through December 31, 2016 Balance as of January 1, 2016 $ 2,797 Increases related to prior year tax positions 156 Decreases related to prior year tax positions — Increases related to current year tax positions 178 Decreases related to current year tax positions — Effect of exchange rate changes (44 ) Balance as of December 31, 2016 $ 3,087 The unrecognized tax benefits as of December 31, 2016 of $3,087 , if recognized, would impact the effective tax rate. The Company has recognized interest of $315 and $205 during the years ended December 31, 2016 and 2015 , respectively, which is included in the income tax expense in the consolidated statements of income. As of December 31, 2016 and 2015 , the Company has accrued interest and penalties of $1,553 and $1,269 relating to unrecognized tax benefits. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation On June 19, 2015, at the Company’s 2015 Annual Meeting of Stockholders, the Company's stockholders approved the 2015 Plan, which amended and restated the 2006 Omnibus Award Plan to, among other things, increased the total number of shares reserved for grants of awards under the 2015 Plan by 1,700,000 shares. As of December 31, 2016, the Company had 1,894,867 shares available for grant under the 2015 Plan. Under the 2015 Plan, the Compensation Committee (the “Committee”) may grant awards of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, stock bonus awards, performance based compensation awards (including cash bonus awards and market condition based awards) or any combination of the foregoing. The Committee determines which employees are eligible to receive the equity awards, the number of equity awards to be granted, the exercise price, the vesting period and the exercise period. The vesting period for the equity award issued is determined on the date of the grant and is non-transferable during the life of the equity award. The majority of options expire ten years from the date of grant. The equity awards generally vest proportionally over a period of four years from the date of grant, unless specified otherwise. The Company applies the provisions of ASC 718, to account for its stock based compensation, using the modified prospective method of transition. Under the provisions of this guidance, the estimated fair value of share-based awards granted under stock incentive plans is recognized as compensation expense over the vesting period. The following costs related to the Company’s stock-based compensation plan are included in the consolidated statements of income: Year ended December 31, 2016 2015 2014 Cost of revenue $ 3,664 $ 2,895 $ 2,290 General and administrative expenses 8,372 6,077 4,350 Selling and marketing expenses 7,734 7,075 4,371 Total $ 19,770 $ 16,047 $ 11,011 Stock Options The fair value of each stock option granted to employees is estimated on the date of grant using the Black-Scholes option-pricing model. The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option valuation model. The Company is required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option forfeitures and records stock-based compensation expense only for those awards that are expected to vest. All stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods. Stock option activity under the Company’s stock plans is shown below: Number of Weighted- Aggregate Weighted- Outstanding at December 31, 2015 1,210,141 $ 16.31 $ 34,638 3.50 Granted — — Exercised (398,239 ) 16.32 Forfeited — — Outstanding at December 31, 2016 811,902 $ 16.31 $ 27,718 2.96 Vested and exercisable at December 31, 2016 811,902 $ 16.31 $ 27,718 2.96 The unrecognized compensation cost for unvested options as of December 31, 2016 is nil . The Company did not grant any options during the years ended December 31, 2016 and 2015. The weighted-average fair value of options granted during the year ended December 31, 2014 was $9.77 . The total grant date fair value of options vested during the years ended December 31, 2016 , 2015 and 2014 was $706 , $1,228 and $2,112 , respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2016 , 2015 and 2014 was $12,911 , $4,413 and $5,757 , respectively. The following table summarizes the status of the Company’s stock options outstanding, vested and exercisable at December 31, 2016 : Options Outstanding Options Vested and Exercisable Range of Exercise Prices Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price $8.00 to $15.00 362,134 $ 9.31 362,134 $ 9.31 $15.01 to $21.00 194,515 18.84 194,515 18.84 $21.01 to $28.00 255,253 24.30 255,253 24.30 Total 811,902 $ 16.31 811,902 $ 16.31 Restricted Stock and Restricted Stock Units An award of restricted stock is a grant of shares subject to conditions and restrictions set by the Committee. The grant or the vesting of an award of restricted stock may be conditioned upon service to the Company or its affiliates or upon the attainment of performance goals or other factors, as determined in the discretion of the Committee. The Committee may also, in its discretion, provide for the lapse of restrictions imposed upon an award of restricted stock. Holders of an award of restricted stock may have, with respect to the restricted stock granted, all of the rights of a stockholder, including the right to vote and to receive dividends. The Committee is authorized to award restricted stock units to participants. The Committee establishes the terms, conditions and restrictions applicable to each award of restricted stock units, including the time or times at which restricted stock units will be granted or vested and the number of units to be covered by each award. The terms and conditions of each restricted stock award will be reflected in a restricted stock unit agreement. Any cash or in-kind dividends paid with respect to unvested shares of restricted stock and restricted stock units are withheld by the Company and paid to the holder of such shares of restricted stock, without interest, only if and when such shares of restricted stock and restricted stock units vest. Any unvested shares of restricted stock and restricted stock units are immediately forfeited without consideration upon the termination of holder’s employment with the Company or its affiliates. Accordingly, the Company’s unvested restricted stock and restricted stock units do not include non-forfeitable rights to dividends or dividend equivalents and are therefore not considered as participating securities for purposes of earnings per share calculations pursuant to the two-class method. Restricted stock and restricted stock unit activity under the Company’s stock plans is shown below: Restricted Stock Restricted Stock Units Number Weighted- Average Intrinsic Value Number Weighted- Average Intrinsic Value Outstanding at December 31, 2015 (1) (2) 134,934 $ 35.28 1,228,287 $ 30.06 Granted 127,063 49.08 468,370 48.94 Vested (15,057 ) 34.61 (358,712 ) 28.55 Forfeited — — (81,657 ) 32.38 Outstanding at December 31, 2016 (1) 246,940 $ 42.42 1,256,288 $ 37.38 (1) Excludes 19,874 and 21,364 restricted stock units vested during the years ended December 31, 2016 and 2015 , respectively. As of December 31, 2016 and 2015 restricted stock units vested for which the underlying common stock is yet to be issued are 135,054 and 149,364 , respectively. (2) Includes adjustment of 5,296 forfeited shares in 2015. The fair value of restricted stock and restricted stock units is generally the market price of the Company’s shares on the date of grant. As of December 31, 2016 , unrecognized compensation cost of $43,016 is expected to be expensed over a weighted average period of 2.70 years . The weighted-average fair value of restricted stock and restricted stock units granted during the years ended December 31, 2016 , 2015 and 2014 was $48.97 , $35.18 and $26.47 , respectively. The total grant date fair value of restricted stock and restricted stock units vested during the years ended December 31, 2016 , 2015 and 2014 was $10,761 , $12,620 and $11,393 , respectively. During the year ended December 31, 2016 , the Company granted 33,459 and 93,604 restricted stock in connection with its Liss and Datasource acquisitions, respectively, and 21,987 restricted stock units in connection with its IQR acquisition. During the year ended December 31, 2015, the Company granted 122,131 restricted stock in connection with its RPM acquisition. The fair value of these grants will be recognized as compensation expense on a straight-line basis over the vesting term. Performance Based Stock Awards Under the 2015 Plan, the Company grants performance-based restricted stock units (“PRSUs”) to executive officers and other specified employees. 50% of the PRSUs cliff vest at the end of a three -year period based on a revenue target for the third year (“PUs”). However, for PUs granted in 2014 and 2015, up to one-third of the PUs may be earned based on the Company’s revenue performance in each of the first two years against annual revenue targets in those years. The total amount of PUs that the recipient earns based on these performance criteria will be the greater of (i) the PUs earned in the year of vesting and (ii) the sum of the earned PUs during the first two years. The remaining 50% is based on a market condition (“MUs”) that is contingent on the Company meeting or exceeding the total shareholder return relative to a group of peer companies specified under the program measured over a three -year performance period. The award recipient may earn up to two hundred percent ( 200% ) of the PRSUs granted based on the actual achievement of targets. The fair value of each PU was determined based on the market price of one common share on the date of grant, and the associated compensation expense was calculated on the basis that performance targets at 100% of the PUs is probable of being achieved. The compensation expense for the PUs is recognized on a straight-line basis over the service period, which is through the end of the third year. Over this period, the number of shares that will be issued will be adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized as an expense will be based on a comparison of the final performance metrics to the specified targets. The grant date fair value for the MUs was determined using a Monte Carlo simulation model and the related compensation expense will be expensed on a straight-line basis over the vesting period. All compensation expense related to the MUs will be recognized if the requisite performance period is fulfilled, even if the market condition is not achieved. The Monte-Carlo simulation model simulates a range of possible future stock prices and estimates the probabilities of the potential payouts. This model also incorporates the following ranges of assumptions: • The historical volatilities are used over the most recent three-year period for the components of the peer group. • The risk-free interest rate is based on the U.S. Treasury rate assumption commensurate with the three-year performance period • Since the plan stipulates that the awards are based upon the TSR of the Company and the components of the peer group, it is assumed that the dividends get reinvested in the issuing entity on a continuous basis. • The correlation coefficients are used to model the way in which each entity tends to move in relation to each other are based upon the price data used to calculate the historical volatilities. The fair value of each MU granted to employees is estimated on the date of grant using the following weighted average assumptions: Year ended December 31, 2016 2015 2014 Dividend yield — — — Expected life (years) 2.85 2.84 2.88 Risk free interest rate 0.88 % 0.98 % 0.65 % Volatility 28.0 % 30.3 % 30.4 % Performance restricted stock unit 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 Addition due to achievement of higher-than-target performance* 307 25.63 44,100 33.60 Vested (44,407 ) 25.63 (88,200 ) 33.60 Forfeited (7,800 ) 36.51 (7,800 ) 54.16 Outstanding at December 31, 2016 115,174 $ 41.70 215,171 $ 47.42 * Represents additional shares issued in respect of MUs granted in February 2014 due to the achievement of higher-than-target performance. As of December 31, 2016 , unrecognized compensation cost of $8,603 is expected to be expensed over a weighted average period of 1.59 years . Subsequent to December 31, 2016, the Company granted approximately 495,000 PRSUs and restricted stock units to its employees. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Capital Commitments At December 31, 2016 , the Company has committed to spend approximately $15,400 under agreements to purchase property, plant and equipment. This amount is net of capital advances paid in respect of these purchases. Other Commitments Certain units of the Company’s Indian subsidiaries were established as 100% Export-Oriented units or under the Software Technology Parks of India (“STPI”) scheme promulgated by the Government of India. These units are exempt from customs, central excise duties, and levies on imported and indigenous capital goods, stores, and spares. The Company has undertaken to pay custom duties, service taxes, levies, and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores and spares consumed duty free, in the event that certain terms and conditions are not fulfilled. The Company’s management believes, however, that these units have in the past satisfied and will continue to satisfy the required conditions. The Company’s operations centers in the Philippines are registered with the Philippine Economic Zone Authority (“PEZA”). The registration provides the Company with certain fiscal incentives on the import of capital goods and requires Exl Philippines to meet certain performance and investment criteria. The Company’s management believes that these centers have in the past satisfied and will continue to satisfy the required criteria. Contingencies U.S. and Indian transfer pricing regulations require that any international transaction involving associated enterprises be at an arm’s-length price. Accordingly, the Company determines the appropriate pricing for the international transactions among its associated enterprises on the basis of a detailed functional and economic analysis involving benchmarking against transactions among entities that are not under common control. The tax authorities have jurisdiction to review this arrangement and in the event that they determine that the transfer price applied was not appropriate, the Company may incur increased tax liability, including accrued interest and penalties. The Company is currently involved in disputes with the Indian tax authorities over the application of certain 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 Income tax authorities from the Company related to its transfer pricing issues for tax years 2003 to 2014 and its permanent establishment issues for tax years 2003 to 2007 as of December 31, 2016 and 2015 is $17,963 and $21,360 , respectively, of which the Company has made payments or provided bank guarantee to the extent $8,640 and $14,668 , respectively. Amounts paid as deposits in respect of such assessments aggregating to $6,690 and $12,665 as of December 31, 2016 and 2015 , respectively, are included in “Other assets” and amounts deposited for bank guarantees aggregating to $1,950 and $2,003 as of December 31, 2016 and 2015 , respectively, are included in “Restricted cash” in the non-current assets section of the Company’s consolidated balance sheets. 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 Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Preparation and Principles of Consolidation | Basis of Preparation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“US GAAP”). The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of ExlService Holdings and all of its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Non-controlling interest is the equity in a subsidiary not attributable, directly or indirectly, to the parent. Non-controlling interest in the net assets of consolidated subsidiaries is disclosed separately from the Company's equity. Non-controlling interest consists of the amount of such interest at the date of obtaining control over the subsidiary, and the non-controlling interest's share of changes in equity since that date. The non-controlling interest in the operations for the years ended December 31, 2016 and 2015 was insignificant and is included under general and administrative expenses in the consolidated statements of income. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements 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, recoverability of 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, assumptions used to calculate stock-based compensation expense, depreciation and amortization periods, purchase price allocation, recoverability of long-term assets including goodwill and intangibles, and estimates to complete fixed price contracts. In accordance with its policy, the Company reviews the estimated useful lives of its property, plant and equipment on an ongoing basis. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of each entity in the Company is its respective local country currency which is also the currency of the primary economic environment in which it operates except for the entities in Mauritius which use the U.S. dollar as its functional currency. Transactions in foreign currencies are initially recorded into functional currency at the rates of exchange prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into functional currency at the rates of exchange prevailing at the balance sheet date. All transaction foreign exchange gains and losses are recorded in the accompanying consolidated statements of income. The assets and liabilities of the subsidiaries for which the functional currency is other than the U.S. dollar are translated into U.S. dollars, the reporting currency, at the rate of exchange prevailing on the balance sheet date. Revenues and expenses are translated into U.S. dollars at the exchange rates prevailing on the last business day of each month, which approximates the average monthly exchange rate. Resulting translation adjustments are included in accumulated other comprehensive loss in the consolidated balance sheet. |
Revenue Recognition | Revenue Recognition The Company derives its revenues from operations management and analytics services. Revenues from operations management services are recognized primarily on a time-and-material based, transaction-based, outcome-based, cost-plus and fixed-price basis; revenues from analytics services are recognized primarily on a time-and-material and fixed price basis. The services provided by the Company under its contracts with the customer generally contain one unit of accounting except the software and related services contracts involving implementation services and post contract maintenance services. In such multiple element arrangements, revenue is allocated to maintenance based on the price charged when that element is sold separately (vendor specific objective evidence or “VSOE”). Revenues are recognized when the four basic criteria are met; persuasive evidence of an arrangement exists, the sales price is fixed or determinable, services have been performed and collection of amounts billed is reasonably assured. Revenues under time-and-material, transaction and outcome-based contracts are recognized as the services are performed. When the terms of the client contract specify service level parameters that must be met (such as turnaround time or accuracy), the Company monitors such service level parameters to determine if any service credits or penalties have been incurred. Revenues are recognized net of any penalties or service credits that are due to a client. Revenue from Analytics services including modeling, targeting and designing of campaigns and mail marketing including email marketing and other digital solutions is typically recognized on delivery of such campaigns. In respect of arrangements involving subcontracting, in part or whole, of the assigned work, the Company evaluates revenues to be recognized under Accounting Standard Codification ("ASC") topic 605-45, “Revenue recognition - Principal agent considerations”. Revenues for Company’s fixed-price contracts are recognized using the proportional performance method when the pattern of performance under the contracts can be reasonably determined. The Company estimates the proportional performance of a contract by comparing the actual number of hours or days worked to the estimated total number of hours or days required to complete each engagement. The use of the proportional performance method requires significant judgment relative to estimating the number of hours or days required to complete the contracted scope of work, including assumptions and estimates relative to the length of time to complete the project and the nature and complexity of the work to be performed. The Company regularly monitors its estimates for completion of a project and record changes in the period in which a change in an estimate is determined. If a change in an estimate results in a projected loss on a project, such loss is recognized in the period in which it is first identified. Revenues from the Company's software and related services contracts, which are not significant, are primarily related to maintenance renewals or incremental license fees for additional users. Maintenance revenues are generally recognized on a straight-line basis over the annual contract term. Fees for incremental license fees without any associated services are recognized upon delivery of the related incremental license. To a lesser extent, software and related services contracts may contain software license, related services and maintenance elements as a multiple element arrangement. In such cases, revenue is allocated to maintenance based on the price charged when that element is sold separately (vendor specific objective evidence or “VSOE”). Services related to software licenses are evaluated to determine whether those services are significant or essential to the functionality of the software. When services are significant or considered essential, revenues related to license fee and services are recognized as the services are performed using the percentage of completion method of accounting, under which the total value of revenue is recognized on the basis of the percentage that each contract’s total labor hours to date bears to the total expected labor hours (input method). The Company accrues revenues for services rendered between the last billing date and the balance sheet date. Accordingly, its accounts receivable include amounts for services, as unbilled accounts receivables, that the Company has performed and for which an invoice has not yet been issued to the client. The Company defers the revenues and related cost of revenue while a process is under migration and recognize such revenues and costs ratably over the period during which the related services are expected to be performed. The deferred costs are limited to the amounts of the deferred revenues. Deferred revenue also includes the amount for which the services have been rendered but the other conditions of revenue recognition are not met, for example where the Company does not have the persuasive evidence of the arrangements. Reimbursements of out-of-pocket expenses received from clients are included as part of revenues. Reimbursements of out-of-pocket expenses included in revenues were $21,812 , $18,848 and $19,606 for the years ended December 31, 2016, 2015 and 2014, respectively. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with an original maturity of ninety days or less to be cash equivalents. Pursuant to the Company’s investment policy, surplus funds are invested in highly-rated mutual funds, money market accounts and time deposits to reduce its exposure to market risk with regard to these funds. Restricted cash represents amounts on deposit with banks against bank guarantees issued through banks for equipment imports and for demands against pending income tax assessments (see Note 19 for details). These deposits with banks have maturity dates before and after December 31, 2017. Restricted cash also includes client funds held in dedicated bank accounts. |
Investments | Investments The Company’s investments consist of time deposits with financial institutions which are valued at cost and approximate fair value. Interest earned on such investments is included in interest income. Investments with original maturities greater than ninety days but less than twelve months are classified as short-term investments. Investments with maturities greater than twelve months from the balance sheet date are classified as long-term investments. The Company's mutual fund investments are in debt and money market funds which invest in instruments of various maturities in India. These investments are accounted for in accordance with the fair value option under ASC topic 825-10 and change in fair value is included in interest and other income. The fair value is represented by original cost on the acquisition date and the net asset value (“NAV”) as quoted, at each reporting period. Gain or loss on the disposal of these investments is calculated using the weighted average cost of the investments sold or disposed and is included in interest and other income. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded net of allowances for doubtful accounts. Allowances for doubtful accounts are established through the evaluation of the accounts receivable aging and prior collection experience to ascertain the ultimate collectability of these receivables. As of December 31, 2016 and 2015 , the Company had $241 and $154 of allowance for doubtful accounts, respectively. Accounts receivable include unbilled accounts receivable which represent revenues on contracts to be billed, in subsequent periods, as per the terms of the related contracts. As of December 31, 2016 and 2015 , the Company had $34,785 and $29,589 of unbilled accounts receivable, respectively. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment. Equipment held under capital leases are capitalized at the commencement of the lease at the lower of present value of minimum lease payments at the inception of the leases or its fair value. Advances paid towards acquisition of property, plant and equipment and the cost of property, plant and equipment not yet placed in service before the end of the reporting period are classified as capital work in progress. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Depreciation and amortization on equipment held under capital leases and leasehold improvements are computed using the straight-line method over the shorter of the assets’ estimated useful lives or the lease term. |
Software Development Costs | Software Development Costs Costs incurred for developing software or enhancements to the existing software products to be sold and/or used for internal use are capitalized once preliminary project stage is complete and technological feasibility has been established, i.e., it is probable that the software will be used as intended. Costs that qualify as software development costs include (i) external direct costs of materials and services utilized in developing or obtaining computer software, (ii) compensation and related benefits for employees who are directly associated with the software project, and (iii) interest costs (if any) incurred while developing the computer software. The capitalized costs are amortized on a straight-line basis over the estimated useful life. Costs associated with preliminary project stage activities, training, maintenance and all post-implementation stage activities are expensed as incurred. |
Business Combinations, Goodwill and Other Intangible Assets | Business Combinations, Goodwill and Other Intangible Assets ASC topic 805, “Business Combinations”, requires that the purchase method of accounting be used for all business combinations. The guidance specifies criteria as to intangible assets acquired in a business combination that must be recognized and reported separately from goodwill. Contingent consideration is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is re-measured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. These fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in the market. Under ASC topic 350, “Intangibles-Goodwill and Other”, all assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition related costs are expensed as incurred under general and administrative expenses. Goodwill represents the cost of the acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis, relying on a number of factors including operating results, business plans and estimated future cash flows of the reporting units to which it is assigned. Recoverability of goodwill is evaluated using a two-step process. The first step involves a comparison of the fair value of a reporting unit with its carrying value. The fair value of the reporting unit is measured by discounting estimated future cash flows. If the carrying amount of the reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the process involves a comparison of the implied fair value and carrying value of the goodwill of that reporting unit. If the carrying value of the reporting unit exceeds the implied fair value of the goodwill, an impairment loss is recognized in an amount equal to the excess. Goodwill of a reporting unit is tested for impairment annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Intangible assets acquired in a business combination are initially valued and recognized at fair market value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over the estimated useful lives and are reviewed for impairment, if indicators of impairment arise. The evaluation of impairment is based upon a comparison of the carrying amount of the intangible asset to its fair value, which is calculated using the estimated future undiscounted net cash flows expected to be generated by the asset. If the fair value of the intangible assets is less than the carrying amount of the asset, the asset is considered impaired and an impairment expense is recognized equal to any shortfall in the current period. The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method: Customer relationships 3-15 years Leasehold benefits 3-8 years Developed technology 5-10 years Non-compete agreements 1-5 years Trade names and trademarks 3-10 years |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets, including intangible assets, to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such assets are required to be tested for impairment if the carrying amount of the assets is higher than the future undiscounted net cash flows expected to be generated from the assets. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. The Company determines fair value by using a discounted cash flow approach. |
Derivative Financial Instruments | Derivative Financial Instruments In the normal course of business, the Company uses derivative instruments for the purpose of mitigating the exposure from foreign currency fluctuation risks associated with forecasted transactions denominated in certain foreign currencies and to minimize earnings and cash flow volatility associated with changes in foreign currency exchange rates, and not for speculative trading purposes. These derivative contracts are purchased within the Company’s policy and are with counterparties that are highly rated financial institutions. The Company hedges anticipated transactions that are subject to foreign exchange exposure with foreign currency exchange contracts that qualify as cash flow hedges. Changes in the fair value of these cash flow hedges which are deemed effective, are recorded in accumulated other comprehensive income/(loss) (AOCI) until the hedged transactions occur and at that time are recognized in the foreign exchange gain/(loss) in the consolidated statement of income. Changes in the fair value of cash flow hedges deemed ineffective are recognized in the consolidated statements of income and are included in foreign exchange gain/(loss). The Company also uses derivatives instruments consisting of foreign currency exchange contracts to economically hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the functional currency. Changes in the fair value of these derivatives are recognized in the consolidated statements of income and are included in foreign exchange gain/(loss). The Company evaluates hedge effectiveness of cash flow hedges 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 statement of income and is included in foreign exchange gain/(loss). For hedge relationships that are discontinued because the forecasted transaction is not expected to occur by the end of the originally specified period, any related derivative amounts recorded in equity are reclassified to earnings. |
Employee Benefits | Employee Benefits Contributions to defined contribution plans are charged to the consolidated statements of income in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. |
Share-Based Compensation | Share-Based Compensation The Company recognizes stock-based compensation expense in the consolidated financial statements for awards of equity instruments to employees and non-employee directors based on the grant-date fair value of those awards. The Company recognizes these compensation costs, net of an estimated forfeiture rate, over the requisite service period of the award. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeiture differs from those estimates. Under the Company’s 2015 Amendment and Restatement of the 2006 Omnibus Award Plan (the “2015 Plan”), the Company grants performance-based restricted stock units (“PRSUs”) to executive officers and other specified employees. 50% of the PRSUs cliff vest based on a revenue target ("PU") at the end of a three -year period. The remaining 50% vest based on a market condition (“MUs”) that is contingent on meeting or exceeding the total shareholder return relative to a group of peer companies specified under the program, measured over a three -year performance period. The award recipient may earn up to two hundred percent ( 200% ) of the PRSUs granted based on the actual achievement of both targets. The fair value of each PU was determined based on the market price of one common share of the Company on the date of grant, and the associated compensation expense was calculated on the basis that performance targets to receive 100% of the PUs is probable of being achieved. The compensation expense for the PUs is recognized on a straight-line basis over the service period, which is through the end of the third year. Over this period, the number of shares that will be issued will be adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized as an expense will be based on a comparison of the final performance metrics to the specified targets. The expense related to the unvested PUs as of December 31, 2016 was based on the Company's assessment that the performance criteria for these grants would be met at the 100% performance target level during the respective years of vesting. The grant date fair value for the MUs was determined using a Monte Carlo simulation model and the related compensation expense is expensed on a straight-line basis over the vesting period. All compensation expense related to the MUs will be recognized if the requisite performance period is fulfilled, even if the market condition is not achieved. |
Income Taxes | Income Taxes The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates. The deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases and all operating losses carried forward, if any. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which the applicable temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax status is recognized in the statement of income in the period in which the change is identified. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company establishes provisions for uncertain tax provisions and related interest and penalties when the Company believes those tax positions are not more likely than not of being sustained, if challenged. |
Financial Instruments and Concentration of Credit Risk | Financial Instruments and Concentration of Credit Risk Financial Instruments. For certain financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, accounts payable, accrued expenses, and other current liabilities, recorded amounts approximate fair value due to the relatively short maturity periods of such instruments. Concentration of Credit Risk . Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, time deposits, mutual fund investments, accounts receivable and derivative financial instruments. By their nature, all such financial instruments involve risks including the credit risks of non-performance by counterparties. Pursuant to the Company’s investment policy, its surplus funds are maintained as cash or cash equivalents and are invested in highly-rated mutual funds, money market accounts and time deposits, placed with highly rated financial institutions to reduce its exposure to market risk with regard to these funds. The Company’s exposure to credit risk on account receivable is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customer s. To mitigate this risk the Company evaluates the creditworthiness of its clients in conjunction with its revenue recognition processes as well as through its ongoing collectability assessment processes for accounts receivable. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. |
Lease Obligations | Lease Obligations Leases under which the Company assumes substantially all risks and rewards of the ownership are classified as capital lease. When acquired, such assets are capitalized at fair value or present value of minimum committed lease payments at the inception of the lease, whichever is lower. The Company leases its office facilities under non-cancellable operating lease agreements. Office facilities subject to an operating lease and the related lease payments are not recorded on the Company’s balance sheet. Lease payments under operating lease are recognized as an expense on a straight line basis in the consolidated statement of income over the lease term. |
Government Grants | Government Grants Government grants related to income are recognized as a reduction of expenses in the consolidated statement of income when there is a reasonable assurance that the entity will comply with the conditions attached to the grant and that the grants will be received. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss 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 No. 815. Changes in the fair values of contracts that are deemed effective are recognized in other comprehensive income on the Company's consolidated balance sheet until the settlement of those contracts. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, “Revenue from Contracts with Customers”. 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 in process of evaluating the impact of the standard update. The ultimate impact on revenue resulting from the application of the new standard will be subject to assessments that are dependent on many variables, including, but not limited to, the terms of our contractual arrangements and our mix of business. Upon adoption, we expect there to be a change in the manner that variable consideration in our revenue arrangements is recognized from the current practice of recognizing such revenue as the services are performed and the variable consideration is earned to estimating the achievability of the variable conditions when we begin delivering services and recognizing that amount over the contractual period. The Company also expects a change in the manner that we recognize certain incremental and fulfillment costs from expensing them as incurred to deferring and recognizing them over the contractual period. The Company continues to evaluate the available transition methods and our contractual arrangements. Our considerations include, but are not limited to, the comparability of our financial statements and the comparability within our industry from application of the new standard to our contractual arrangements. We plan to select a transition method by the second half of 2017. We have established an implementation team to implement the standard update related to the recognition of revenue from contracts with customers. The Company continues to evaluate the changes to accounting system and processes, and additional disclosure requirements that may be necessary. 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 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, 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. The Company is continuing to evaluate the impact of this update on its consolidated financial statements, however it expects to apply a modified retrospective approach to recognize expense based on actual forfeiture, recognize excess tax benefits and deficiencies on stock awards in the income tax provision and present the excess tax benefits and deficiencies in operating activities in the statement of cash flows as the primary effects of this update on its consolidated financial statements. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses, which require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is to be deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The amendment should be applied through a modified retrospective approach. Early adoption as of the fiscal years beginning after December 15, 2018 is permitted. The adoption of ASU No. 2016-13 is not expected to have a material effect on its consolidated financial statements. In August 2016, FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. The amendments apply to all entities that are required to present a statement of cash flows under Topic 230. The amendments are an improvement to GAAP because they provide guidance for each of the eight issues, thereby reducing the current and potential future diversity in practice. The amendments are effective for fiscal years beginning after December 31, 2017 and interim periods within those annual periods and should be applied using a retrospective transition method to each period presented. The Company does not expect the adoption of this ASU to have a material effect on its financial position or results of operations. In November 2016, FASB issued ASU No. 2016-18, Statement of cash flows - Restricted cash. The amendments apply to all entities that have restricted cash or restricted cash equivalents and are required to present a statement of cash flows under Topic 230. The amendments in this update require that a statement of cash flows should explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The amendments are effective for fiscal years beginning after December 31, 2017 and interim periods within those annual periods. Early adoption is permitted with an adjustment reflected as of the beginning of the fiscal year in which the amendment is adoption. The Company does not expect the adoption of this ASU to have a material effect on its financial position or results of operations. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Lived Intangible Assets Amortized over their Estimated Useful Lives | The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method: Customer relationships 3-15 years Leasehold benefits 3-8 years Developed technology 5-10 years Non-compete agreements 1-5 years Trade names and trademarks 3-10 years |
Summary of Accumulated Other Comprehensive Loss | The balances as of December 31, 2016 and 2015 are as follows: December 31, 2016 December 31, 2015 Cumulative currency translation adjustments $ (77,299 ) $ (68,063 ) Unrealized gain on cash flow hedges, net of taxes of $1,207 and $662 2,740 824 Retirement benefits, net of taxes of ($342) and ($201) (498 ) (86 ) Accumulated other comprehensive loss $ (75,057 ) $ (67,325 ) |
Segment & Geographical Inform30
Segment & Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Revenues and Cost of Revenues for Company's Reportable Segments | Revenues and cost of revenues for each of the years ended December 31, 2016, 2015 and 2014, for each of the reportable segments, are as follows: Year ended December 31, 2016 Insurance Healthcare TT&L F&A Analytics All Other Total Revenues, net $ 206,327 $ 68,656 $ 69,366 $ 79,416 $ 165,734 $ 96,489 $ 685,988 Cost of revenues (exclusive of depreciation and amortization) 146,203 44,098 41,962 48,302 106,341 61,050 447,956 Gross profit $ 60,124 $ 24,558 $ 27,404 $ 31,114 $ 59,393 $ 35,439 $ 238,032 Operating expenses 173,810 Foreign exchange gain, interest expense and other income, net 19,662 Income tax expense 22,151 Net income $ 61,733 Year ended December 31, 2015 Insurance Healthcare TT&L F&A Analytics All Other Total Revenues, net $ 199,878 $ 55,209 $ 62,264 $ 78,504 $ 122,151 $ 110,486 $ 628,492 Cost of revenues (exclusive of depreciation and amortization) 134,196 37,224 37,506 46,846 78,838 68,307 402,917 Gross profit $ 65,682 $ 17,985 $ 24,758 $ 31,658 $ 43,313 $ 42,179 $ 225,575 Operating expenses 158,232 Foreign exchange gain, interest expense and other income, net 8,433 Income tax expense 24,211 Net income $ 51,565 Year ended December 31, 2014 Insurance Healthcare TT&L F&A Analytics All Other Total Revenues, net $ 151,308 $ 42,848 $ 47,492 $ 92,013 $ 65,615 $ 100,002 $ 499,278 Cost of revenues (exclusive of depreciation and amortization) 107,026 29,598 29,945 56,770 46,042 63,154 332,535 Gross profit $ 44,282 $ 13,250 $ 17,547 $ 35,243 $ 19,573 $ 36,848 $ 166,743 Operating expenses 132,703 Foreign exchange gain, interest expense and other income, net 3,598 Income tax expense 5,193 Net income $ 32,445 Net revenues of the Company by service type, were as follows: Year ended December 31, 2016 2015 2014 BPM and related services (1) $ 520,254 $ 506,341 $ 433,663 Analytics services 165,734 122,151 65,615 Total $ 685,988 $ 628,492 $ 499,278 (1) BPM and related services include revenues of all the operating segments other than Analytics. See reportable segment disclosure above. |
Revenues Based on Geographical Information | The Company attributes the revenues to regions based upon the location of its customers. Year ended December 31, 2016 2015 2014 Revenues, net United States $ 554,945 $ 496,418 $ 368,870 Non-United States United Kingdom 109,905 108,868 101,789 Rest of World 21,138 23,206 28,619 Total Non-United States 131,043 132,074 130,408 $ 685,988 $ 628,492 $ 499,278 |
Property, Plant & Equipment, Net Based on Geographical Information | Property, plant and equipment by geographic area, were as follows: December 31, 2016 December 31, 2015 Property, plant and equipment, net India $ 23,362 $ 23,415 United States 10,809 10,680 Philippines 11,900 11,285 Rest of World 2,958 2,611 $ 49,029 $ 47,991 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results | Summarized quarterly results for the years ended December 31, 2016 and 2015 are as follows: Three months ended 2016 Year ended March 31 June 30 September 30 December 31 December 31, 2016 Revenues, net $ 167,036 $ 170,478 $ 171,200 $ 177,274 $ 685,988 Gross profit $ 58,657 $ 58,452 $ 59,433 $ 61,490 $ 238,032 Net income $ 13,820 $ 16,375 $ 16,050 $ 15,488 $ 61,733 Earnings Per Share: Basic* $ 0.41 $ 0.49 $ 0.48 $ 0.46 $ 1.84 Diluted* $ 0.40 $ 0.47 $ 0.46 $ 0.45 $ 1.79 Weighted-average number of shares used in computing earnings per share: Basic* 33,380,028 33,621,444 33,624,401 33,638,170 33,566,367 Diluted* 34,351,657 34,510,400 34,675,485 34,714,308 34,563,319 Stock compensation expense $ 5,809 $ 4,450 $ 4,484 $ 5,027 $ 19,770 Amortization of intangibles $ 2,715 $ 2,718 $ 2,848 $ 3,592 $ 11,873 Three months ended 2015 Year ended March 31 June 30 September 30 December 31 December 31, 2015 Revenues, net $ 143,510 $ 155,621 $ 163,503 $ 165,858 $ 628,492 Gross profit $ 50,385 $ 55,143 $ 60,305 $ 59,742 $ 225,575 Net income $ 9,567 $ 12,074 $ 15,162 $ 14,762 $ 51,565 Earnings Per Share: Basic * $ 0.29 $ 0.36 $ 0.46 $ 0.44 $ 1.55 Diluted * $ 0.28 $ 0.35 $ 0.44 $ 0.43 $ 1.51 Weighted-average number of shares used in computing earnings per share: Basic* 33,236,259 33,417,079 33,307,312 33,231,716 33,298,104 Diluted* 34,051,971 34,207,973 34,180,635 34,272,731 34,178,340 Stock compensation expense $ 4,255 $ 3,553 $ 4,471 $ 3,768 $ 16,047 Amortization of intangibles $ 2,059 $ 2,808 $ 2,642 $ 2,717 $ 10,226 * Total of quarterly basic and diluted earnings per share and weighted average number of shares used in computing earnings per share will not be equal to year end basic and diluted earnings per share and weighted average number of shares used in computing earnings per share, respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 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: Year ended December 31, 2016 2015 2014 Numerators: Net income $ 61,733 $ 51,565 $ 32,445 Denominators: Basic weighted average common shares outstanding 33,566,367 33,298,104 32,804,606 Dilutive effect of share based awards 996,952 880,236 831,987 Diluted weighted average common shares outstanding 34,563,319 34,178,340 33,636,593 Earnings per share: Basic $ 1.84 $ 1.55 $ 0.99 Diluted $ 1.79 $ 1.51 $ 0.96 Weighted average common shares considered anti-dilutive in computing diluted earnings per share 92,538 73,896 114,395 |
Other Income, net Other Income,
Other Income, net Other Income, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income, net | Other Income, net consists of the following: Year ended December 31, 2016 2015 2014 Interest and dividend income $ 1,673 $ 2,904 $ 3,709 Gain on sale of mutual fund investments 8,087 3,902 — Change in fair value of earn-out consideration 4,060 — — Other, net 1,588 221 263 Other income, net $ 15,408 $ 7,027 $ 3,972 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consist of the following: Estimated useful lives (Years) December 31, 2016 December 31, 2015 Owned Assets: Network equipment, computers and software 3-5 $ 109,998 $ 95,245 Leasehold improvements 3-8 31,192 28,603 Office furniture and equipment 3-8 15,426 14,000 Motor vehicles 2-5 580 540 Buildings 30 1,171 1,202 Land - 766 787 Capital work in progress - 4,964 3,140 164,097 143,517 Less: Accumulated depreciation and amortization (115,568 ) (96,079 ) $ 48,529 $ 47,438 Assets under capital leases: Leasehold improvements $ 854 $ 877 Office furniture and equipment 133 136 Motor vehicles 810 806 1,797 1,819 Less: Accumulated depreciation and amortization (1,297 ) (1,266 ) $ 500 $ 553 Property, Plant and Equipment, net $ 49,029 $ 47,991 |
Business Combinations, Goodwi35
Business Combinations, Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Summary of Purchase Price Allocation for Acquisitions | The Company has preliminarily allocated the purchase price to the net tangible and intangible assets based on their fair values as set forth below: Amount Tangible assets $ 3,582 Tangible liabilities (1,503 ) Identifiable intangible assets: Customer relationships 6,340 Developed technology 520 Trade names and trademarks 380 Goodwill 10,999 Total purchase price $ 20,318 During the three months ended December 31, 2016, the Company finalized its purchase price allocation for the acquisition based on their fair values as set forth below: Amount Tangible assets $ 1,449 Tangible liabilities (420 ) Deferred tax liability (836 ) Identifiable intangible assets: Customer relationships 2,300 Goodwill 2,599 Total purchase price $ 5,092 During the three months ended December 31, 2016, the Company finalized its purchase price allocation for the acquisition based on their fair values as set forth below: Amount Tangible assets $ 517 Tangible liabilities (993 ) Deferred tax liability (643 ) Identifiable intangible assets: Customer relationships 1,918 Developed technology 1,571 Trade names and trademarks 231 Goodwill 2,510 Total purchase price $ 5,111 |
Summary of Company's Goodwill | The following table sets forth details of the Company’s goodwill balance as of December 31, 2016 : Insurance Healthcare TT&L F&A Analytics All Other Total Balance as at January 1, 2015 $ 35,824 $ 19,276 $ 13,833 $ 48,555 $ 16,785 $ 5,326 $ 139,599 Acquisitions — — — — 33,155 — 33,155 Currency translation adjustments — — (555 ) (664 ) — — (1,219 ) Balance as at December 31, 2015 $ 35,824 $ 19,276 $ 13,278 $ 47,891 $ 49,940 $ 5,326 $ 171,535 Acquisitions 2,510 — — — 13,598 — 16,108 Currency translation adjustments (224 ) — (295 ) (354 ) — — (873 ) Balance as at December 31, 2016 $ 38,110 $ 19,276 $ 12,983 $ 47,537 $ 63,538 $ 5,326 $ 186,770 |
Schedule of Finite-Lived Intangible Assets | Information regarding the Company’s intangible assets is set forth below: As of December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Customer relationships $ 75,181 $ (32,968 ) $ 42,213 Leasehold benefits 2,715 (2,247 ) 468 Developed technology 14,186 (6,468 ) 7,718 Non-compete agreements 2,045 (1,612 ) 433 Trade names and trademarks 5,360 (3,322 ) 2,038 $ 99,487 $ (46,617 ) $ 52,870 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 100,387 $ (46,617 ) $ 53,770 As of December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Customer relationships $ 64,816 $ (24,215 ) $ 40,601 Leasehold benefits 2,789 (2,109 ) 680 Developed technology 12,234 (4,363 ) 7,871 Non-compete agreements 2,045 (1,451 ) 594 Trade names and trademarks 4,770 (2,683 ) 2,087 $ 86,654 $ (34,821 ) $ 51,833 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 87,554 $ (34,821 ) $ 52,733 |
Schedule of Indefinite-Lived Intangible Assets | Information regarding the Company’s intangible assets is set forth below: As of December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Customer relationships $ 75,181 $ (32,968 ) $ 42,213 Leasehold benefits 2,715 (2,247 ) 468 Developed technology 14,186 (6,468 ) 7,718 Non-compete agreements 2,045 (1,612 ) 433 Trade names and trademarks 5,360 (3,322 ) 2,038 $ 99,487 $ (46,617 ) $ 52,870 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 100,387 $ (46,617 ) $ 53,770 As of December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Customer relationships $ 64,816 $ (24,215 ) $ 40,601 Leasehold benefits 2,789 (2,109 ) 680 Developed technology 12,234 (4,363 ) 7,871 Non-compete agreements 2,045 (1,451 ) 594 Trade names and trademarks 4,770 (2,683 ) 2,087 $ 86,654 $ (34,821 ) $ 51,833 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 87,554 $ (34,821 ) $ 52,733 |
Estimated Amortization of Intangible Assets | Estimated amortization of intangible assets during the year ending December 31: 2017 $ 13,910 2018 12,156 2019 11,257 2020 4,111 2021 and thereafter 11,436 Total $ 52,870 |
Accrued expenses and other cu36
Accrued expenses and other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses and other current liabilities consists of the following: December 31, 2016 December 31, 2015 Accrued expenses $ 30,690 $ 26,238 Derivative instruments 1,430 1,226 Client liability account 4,005 2,217 Other current liabilities 7,139 4,569 Accrued expenses and other current liabilities $ 43,264 $ 34,250 |
Non-current liabilities (Tables
Non-current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Liabilities, Noncurrent [Abstract] | |
Other Noncurrent Liabilities | Non-current liabilities consists of the following: December 31, 2016 December 31, 2015 Derivative instruments $ 828 $ 1,132 Unrecognized tax benefits 3,640 3,066 Deferred rent 7,237 6,515 Retirement benefits 1,977 1,441 Other non-current liabilities 1,137 5,501 Non-current liabilities $ 14,819 $ 17,655 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value | The assets and liabilities measured at fair value on recurring basis are summarized below: As of December 31, 2016 Level 1 Level 2 Level 3 Total Assets Money market and mutual funds* $ 118,185 $ — $ — $ 118,185 Derivative financial instruments — 6,319 — 6,319 Total $ 118,185 $ 6,319 $ — $ 124,504 Liabilities Derivative financial instruments $ — $ 2,258 $ — $ 2,258 Total $ — $ 2,258 $ — $ 2,258 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 * Included as a part of cash and cash equivalents. |
Derivatives and Hedge Account39
Derivatives and Hedge Accounting (Tables) | 12 Months Ended |
Dec. 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 consolidated financial statements: Derivatives designated as hedging instruments: December 31, 2016 December 31, 2015 Other current assets: Foreign currency exchange contracts $ 3,211 $ 2,664 Other assets: Foreign currency exchange contracts $ 2,994 $ 1,175 Accrued expenses and other current liabilities: Foreign currency exchange contracts $ 1,430 $ 1,226 Other non-current liabilities: Foreign currency exchange contracts $ 828 $ 1,132 Derivatives not designated as hedging instruments: December 31, 2016 December 31, 2015 Other current assets: Foreign currency exchange contracts $ 113 $ 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 consolidated statements of income for the years ended December 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 $ 3,895 $ (1,111 ) Foreign exchange gain/(loss) $ 1,434 $ (1,117 ) 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 $ 4,790 $ 862 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Change in Projected Benefit Obligation | The following table sets forth the activity and the funded status of the Gratuity Plans and the amounts recognized in the Company’s consolidated financial statements at the end of the relevant periods: December 31, 2016 2015 Change in projected benefit obligation: Projected benefit obligation at the beginning of the year $ 7,909 $ 7,563 Service cost 1,601 1,638 Interest cost 599 550 Benefits paid (837 ) (851 ) Actuarial (gain)/loss 677 (609 ) Acquisition 47 — Effect of exchange rate changes (285 ) (382 ) Projected benefit obligation at the end of the year $ 9,711 $ 7,909 Unfunded amount–non-current $ 1,977 $ 1,441 Unfunded amount–current 2,094 1,545 Total accrued liability $ 4,071 $ 2,986 Accumulated benefit obligation $ 6,533 $ 5,537 |
Net Gratuity Cost | Net gratuity cost includes the following components: Year ended December 31, 2016 2015 2014 Service cost $ 1,601 $ 1,638 $ 1,523 Interest cost 599 550 559 Expected return on plan assets (416 ) (385 ) (172 ) Actuarial loss 90 211 149 Net gratuity cost $ 1,874 $ 2,014 $ 2,059 |
Summary of Components Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss that have not been recognized as components of net gratuity cost in the statement of income as of December 31, 2016 and 2015 is as follows: December 31, 2016 2015 Net actuarial loss $ 489 $ 77 Net prior service cost 9 9 Accumulated other comprehensive loss, net of tax $ 498 $ 86 |
Summary of Weighted Average Actuarial Assumptions | The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost are: December 31, 2016 2015 2014 Discount rate 6.8 % 7.8 % 8.0 % Rate of increase in compensation levels 9.2 % 8.4 % 8.2 % Expected long term rate of return on plan assets per annum 9.0 % 9.0 % 9.0 % |
Summary of Expected Benefit Payments | Expected benefit payments during the year ending December 31, 2017 $ 2,782 2018 $ 2,407 2019 $ 2,146 2020 $ 1,960 2021 $ 1,785 2022 to 2026 $ 5,238 |
Change in Plan Assets | Change in Plan Assets Plan assets at January 1, 2015 $ 4,752 Actual return 355 Employer contribution 903 Benefits paid* (851 ) Effect of exchange rate changes (236 ) Plan assets December 31, 2015 $ 4,923 Actual return 450 Employer contribution 1,242 Benefits paid* (837 ) Effect of exchange rate changes (138 ) Plan assets December 31, 2016 $ 5,640 * All Benefits payments were made through the plan assets during the year ended December 31, 2016 and December 31, 2015. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Future Minimum Lease Payments under Capital Leases | The Company finances its use of certain motor vehicles under various lease arrangements provided by financial institutions. Future minimum lease payments under these capital leases as of December 31, 2016 are as follows: Year ending December 31: 2017 $ 289 2018 186 2019 117 2020 47 Total minimum lease payments 639 Less: amount representing interest 107 Present value of minimum lease payments 532 Less: current portion 232 Long term capital lease obligation $ 300 |
Future Minimum Lease Payments under Non-Cancelable Operating Lease Agreements Expiring After December 31, 2016 | The Company conducts its operations using facilities leased under non-cancelable operating lease agreements that expire at various dates. Future minimum lease payments under non-cancelable agreements expiring after December 31, 2016 are set forth below: Year ending December 31: 2017 $ 9,586 2018 8,119 2019 5,895 2020 4,085 2021 1,950 2022 and thereafter 1,398 Future minimum lease payment $ 31,033 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Income Before Income Taxes | The components of income before income taxes consist of the following: Year ended December 31, 2016 2015 2014 Domestic $ 12,652 $ 25,045 $ (4,785 ) Foreign 71,232 50,731 42,423 $ 83,884 $ 75,776 $ 37,638 |
Summary of Income Tax Provision/(Benefit) Relating to Continuing Operations | The income tax expense consists of the following: Year ended December 31, 2016 2015 2014 Current provision/(benefit): Domestic $ 7,107 $ 9,951 $ (1,069 ) Foreign 18,428 12,022 6,186 $ 25,535 $ 21,973 $ 5,117 Deferred provision/(benefit): Domestic $ (2,506 ) $ 3,041 $ 535 Foreign (878 ) (803 ) (459 ) $ (3,384 ) $ 2,238 $ 76 Income tax expense $ 22,151 $ 24,211 $ 5,193 |
Summary of Effective Income Tax Rate Differs from Amount Computed by Applying U.S. Federal Statutory Income Tax Rate to Income Before Income Taxes | The effective income tax rate differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes approximately as follows: December 31, 2016 2015 2014 Expected tax expense $ 29,361 $ 26,521 $ 12,797 Change in valuation allowance 22 19 64 Impact of tax holiday (4,027 ) (2,991 ) (3,208 ) Foreign tax rate differential (2,716 ) (2,797 ) (3,327 ) Deferred tax (benefit)/provision (878 ) (803 ) (459 ) Unrecognized tax benefits and interest 495 324 (1,846 ) State taxes, net of Federal taxes 202 1,327 593 Non-deductible expenses 144 26 15 Prior year tax expense/(benefit) — 2,450 — Other (452 ) 135 564 Tax expense $ 22,151 $ 24,211 $ 5,193 |
Summary of Components of Deferred Tax Balances | The components of the deferred tax balances as of December 31, 2016 and 2015 are as follows: December 31, 2016 2015 Deferred tax assets: Tax credit carry forward $ 4,806 $ 5,164 Depreciation and amortization 3,765 3,777 Share-based compensation 10,385 8,099 Accrued employee costs and other expenses 5,130 3,079 Net operating loss carry forwards 1,856 3,746 Unrealized exchange loss 2,099 1,136 Deferred rent 1,307 1,292 Others 484 62 $ 29,832 $ 26,355 Valuation allowance (454 ) (595 ) Deferred tax assets $ 29,378 $ 25,760 Deferred tax liabilities: Unrealized exchange gain $ 1,414 $ 848 Intangible assets 13,165 11,163 Deferred tax liabilities: $ 14,579 $ 12,011 Net deferred tax assets $ 14,799 $ 13,749 |
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 December 31, 2016 Balance as of January 1, 2016 $ 2,797 Increases related to prior year tax positions 156 Decreases related to prior year tax positions — Increases related to current year tax positions 178 Decreases related to current year tax positions — Effect of exchange rate changes (44 ) Balance as of December 31, 2016 $ 3,087 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 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 consolidated statements of income: Year ended December 31, 2016 2015 2014 Cost of revenue $ 3,664 $ 2,895 $ 2,290 General and administrative expenses 8,372 6,077 4,350 Selling and marketing expenses 7,734 7,075 4,371 Total $ 19,770 $ 16,047 $ 11,011 |
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 (398,239 ) 16.32 Forfeited — — Outstanding at December 31, 2016 811,902 $ 16.31 $ 27,718 2.96 Vested and exercisable at December 31, 2016 811,902 $ 16.31 $ 27,718 2.96 |
Company's Stock Options Outstanding and Stock Options Vested and Exercisable | The following table summarizes the status of the Company’s stock options outstanding, vested and exercisable at December 31, 2016 : Options Outstanding Options Vested and Exercisable Range of Exercise Prices Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price $8.00 to $15.00 362,134 $ 9.31 362,134 $ 9.31 $15.01 to $21.00 194,515 18.84 194,515 18.84 $21.01 to $28.00 255,253 24.30 255,253 24.30 Total 811,902 $ 16.31 811,902 $ 16.31 |
Weighted Average Valuation Assumptions for Market Condition Performance Restricted Stock Units | The fair value of each MU granted to employees is estimated on the date of grant using the following weighted average assumptions: Year ended December 31, 2016 2015 2014 Dividend yield — — — Expected life (years) 2.85 2.84 2.88 Risk free interest rate 0.88 % 0.98 % 0.65 % Volatility 28.0 % 30.3 % 30.4 % |
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 (1) (2) 134,934 $ 35.28 1,228,287 $ 30.06 Granted 127,063 49.08 468,370 48.94 Vested (15,057 ) 34.61 (358,712 ) 28.55 Forfeited — — (81,657 ) 32.38 Outstanding at December 31, 2016 (1) 246,940 $ 42.42 1,256,288 $ 37.38 (1) Excludes 19,874 and 21,364 restricted stock units vested during the years ended December 31, 2016 and 2015 , respectively. As of December 31, 2016 and 2015 restricted stock units vested for which the underlying common stock is yet to be issued are 135,054 and 149,364 , respectively. (2) Includes adjustment of 5,296 forfeited shares in 2015. |
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 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 Addition due to achievement of higher-than-target performance* 307 25.63 44,100 33.60 Vested (44,407 ) 25.63 (88,200 ) 33.60 Forfeited (7,800 ) 36.51 (7,800 ) 54.16 Outstanding at December 31, 2016 115,174 $ 41.70 215,171 $ 47.42 * Represents additional shares issued in respect of MUs granted in February 2014 due to the achievement of higher-than-target performance. |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Summary of Revenues and Reimbursements Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Revenues and reimbursements | $ 21,812 | $ 18,848 | $ 19,606 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Investments Additional Information (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Investments maturity period | Investments with original maturities greater than ninety days but less than twelve months are classified as short-term investments. Investments with maturities greater than twelve months from the balance sheet date are classified as long-term investments. |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Accounts Receivable Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 241 | $ 154 |
Unbilled accounts receivable | $ 34,785 | $ 29,589 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Summary of Lived Intangible Assets Amortized over their Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Customer relationships | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets (in years) | 3 years |
Customer relationships | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets (in years) | 15 years |
Leasehold benefits | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets (in years) | 3 years |
Leasehold benefits | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets (in years) | 8 years |
Developed technology | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets (in years) | 5 years |
Developed technology | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets (in years) | 10 years |
Non-compete agreements | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets (in years) | 1 year |
Non-compete agreements | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets (in years) | 5 years |
Trade names and trademarks | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets (in years) | 3 years |
Trade names and trademarks | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets (in years) | 10 years |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Share-Based Compensation Additional Information (Details) | Jun. 19, 2015 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 4 years | |
Revenue Based PRSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target shares an employee can earn (as a percent) | 200.00% | |
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based percentage (as a percent) | 100.00% | |
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Revenue Based PRSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based percentage (as a percent) | 50.00% | |
Vesting period (in years) | 3 years | |
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Market Condition Based PRSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based percentage (as a percent) | 50.00% | |
Vesting period (in years) | 3 years | |
Maximum | Revenue Based PRSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target shares an employee can earn (as a percent) | 200.00% | |
Maximum | Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Market Condition Based PRSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target shares an employee can earn (as a percent) | 200.00% |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Summary of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Cumulative currency translation adjustments | $ (77,299) | $ (68,063) |
Unrealized gain on cash flow hedges, net of taxes of $1,207 and $662 | 2,740 | 824 |
Retirement benefits, net of taxes of ($342) and ($201) | (498) | (86) |
Accumulated other comprehensive loss | (75,057) | (67,325) |
Taxes on unrealized gain on cash flow hedges | 1,207 | 662 |
Taxes on retirement benefits | $ (342) | $ (201) |
Segment & Geographical Inform50
Segment & Geographical Information - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2016operating_segment | Dec. 31, 2015Segment | |
Segment Reporting [Abstract] | ||
Number of operating segments | 8 | |
Number of operating segments, operations management | 6 | |
Number of operating segments, finance and accounting | 1 | |
Number of operating segments, company provides operations management services | 6 | |
Number of non-operations management services | 2 | |
Number of reportable segments | Segment | 2 |
Segment & Geographical Inform51
Segment & Geographical Information - Revenues and Cost of Revenues for Company's Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||
Revenues, net | $ 177,274 | $ 171,200 | $ 170,478 | $ 167,036 | $ 165,858 | $ 163,503 | $ 155,621 | $ 143,510 | $ 685,988 | $ 628,492 | $ 499,278 |
Cost of revenues (exclusive of depreciation and amortization) | 447,956 | 402,917 | 332,535 | ||||||||
Gross profit | 61,490 | 59,433 | 58,452 | 58,657 | 59,742 | 60,305 | 55,143 | 50,385 | 238,032 | 225,575 | 166,743 |
Operating expenses | 173,810 | 158,232 | 132,703 | ||||||||
Foreign exchange gain, interest expense and other income, net | 19,662 | 8,433 | 3,598 | ||||||||
Income tax expense | 22,151 | 24,211 | 5,193 | ||||||||
Net income | $ 15,488 | $ 16,050 | $ 16,375 | $ 13,820 | $ 14,762 | $ 15,162 | $ 12,074 | $ 9,567 | 61,733 | 51,565 | 32,445 |
Insurance [Member] | |||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||
Revenues, net | 206,327 | 199,878 | 151,308 | ||||||||
Cost of revenues (exclusive of depreciation and amortization) | 146,203 | 134,196 | 107,026 | ||||||||
Gross profit | 60,124 | 65,682 | 44,282 | ||||||||
Healthcare [Member] | |||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||
Revenues, net | 68,656 | 55,209 | 42,848 | ||||||||
Cost of revenues (exclusive of depreciation and amortization) | 44,098 | 37,224 | 29,598 | ||||||||
Gross profit | 24,558 | 17,985 | 13,250 | ||||||||
Travel, Transportation and Logistics [Member] | |||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||
Revenues, net | 69,366 | 62,264 | 47,492 | ||||||||
Cost of revenues (exclusive of depreciation and amortization) | 41,962 | 37,506 | 29,945 | ||||||||
Gross profit | 27,404 | 24,758 | 17,547 | ||||||||
Finance and Accounting [Member] | |||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||
Revenues, net | 79,416 | 78,504 | 92,013 | ||||||||
Cost of revenues (exclusive of depreciation and amortization) | 48,302 | 46,846 | 56,770 | ||||||||
Gross profit | 31,114 | 31,658 | 35,243 | ||||||||
Other Operations Management [Member] | |||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||
Revenues, net | 96,489 | 110,486 | 100,002 | ||||||||
Cost of revenues (exclusive of depreciation and amortization) | 61,050 | 68,307 | 63,154 | ||||||||
Gross profit | 35,439 | 42,179 | 36,848 | ||||||||
Analytics | |||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||
Revenues, net | 165,734 | 122,151 | 65,615 | ||||||||
Cost of revenues (exclusive of depreciation and amortization) | 106,341 | 78,838 | 46,042 | ||||||||
Gross profit | 59,393 | 43,313 | 19,573 | ||||||||
BPM Services [Member] | |||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||
Revenues, net | 520,254 | 506,341 | 433,663 | ||||||||
Analytics Services [Member] | |||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||
Revenues, net | $ 165,734 | $ 122,151 | $ 65,615 |
Segment & Geographical Inform52
Segment & Geographical Information Segment & Geographical Information - Revenues Based on Geographical Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues, net | |||||||||||
Revenues, net | $ 177,274 | $ 171,200 | $ 170,478 | $ 167,036 | $ 165,858 | $ 163,503 | $ 155,621 | $ 143,510 | $ 685,988 | $ 628,492 | $ 499,278 |
Property, Plant and Equipment, net | |||||||||||
Property, plant and equipment, net | 49,029 | 47,991 | 49,029 | 47,991 | |||||||
United States | |||||||||||
Revenues, net | |||||||||||
Revenues, net | 554,945 | 496,418 | 368,870 | ||||||||
Property, Plant and Equipment, net | |||||||||||
Property, plant and equipment, net | 10,809 | 10,680 | 10,809 | 10,680 | |||||||
United Kingdom | |||||||||||
Revenues, net | |||||||||||
Revenues, net | 109,905 | 108,868 | 101,789 | ||||||||
Rest of World | |||||||||||
Revenues, net | |||||||||||
Revenues, net | 21,138 | 23,206 | 28,619 | ||||||||
Property, Plant and Equipment, net | |||||||||||
Property, plant and equipment, net | 2,958 | 2,611 | 2,958 | 2,611 | |||||||
Non-US | |||||||||||
Revenues, net | |||||||||||
Revenues, net | 131,043 | 132,074 | $ 130,408 | ||||||||
India | |||||||||||
Property, Plant and Equipment, net | |||||||||||
Property, plant and equipment, net | 23,362 | 23,415 | 23,362 | 23,415 | |||||||
Philippines | |||||||||||
Property, Plant and Equipment, net | |||||||||||
Property, plant and equipment, net | $ 11,900 | $ 11,285 | $ 11,900 | $ 11,285 |
Quarterly Financial Data - Summ
Quarterly Financial Data - Summary of Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues, net | $ 177,274 | $ 171,200 | $ 170,478 | $ 167,036 | $ 165,858 | $ 163,503 | $ 155,621 | $ 143,510 | $ 685,988 | $ 628,492 | $ 499,278 |
Gross profit | 61,490 | 59,433 | 58,452 | 58,657 | 59,742 | 60,305 | 55,143 | 50,385 | 238,032 | 225,575 | 166,743 |
Net income | $ 15,488 | $ 16,050 | $ 16,375 | $ 13,820 | $ 14,762 | $ 15,162 | $ 12,074 | $ 9,567 | $ 61,733 | $ 51,565 | $ 32,445 |
Earnings Per Share: | |||||||||||
Basic (in dollars per share) | $ 0.46 | $ 0.48 | $ 0.49 | $ 0.41 | $ 0.44 | $ 0.46 | $ 0.36 | $ 0.29 | $ 1.84 | $ 1.55 | $ 0.99 |
Diluted (in dollars per share) | $ 0.45 | $ 0.46 | $ 0.47 | $ 0.40 | $ 0.43 | $ 0.44 | $ 0.35 | $ 0.28 | $ 1.79 | $ 1.51 | $ 0.96 |
Weighted-average number of shares used in computing earnings per share: | |||||||||||
Basic (in shares) | 33,638,170 | 33,624,401 | 33,621,444 | 33,380,028 | 33,231,716 | 33,307,312 | 33,417,079 | 33,236,259 | 33,566,367 | 33,298,104 | 32,804,606 |
Diluted (in shares) | 34,714,308 | 34,675,485 | 34,510,400 | 34,351,657 | 34,272,731 | 34,180,635 | 34,207,973 | 34,051,971 | 34,563,319 | 34,178,340 | 33,636,593 |
Stock compensation expense | $ 5,027 | $ 4,484 | $ 4,450 | $ 5,809 | $ 3,768 | $ 4,471 | $ 3,553 | $ 4,255 | $ 19,770 | $ 16,047 | $ 11,011 |
Amortization of intangibles | $ 3,592 | $ 2,848 | $ 2,718 | $ 2,715 | $ 2,717 | $ 2,642 | $ 2,808 | $ 2,059 | $ 11,873 | $ 10,226 | $ 6,623 |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share - Computation of Basic and Diluated Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerators: | |||||||||||
Net income | $ 15,488 | $ 16,050 | $ 16,375 | $ 13,820 | $ 14,762 | $ 15,162 | $ 12,074 | $ 9,567 | $ 61,733 | $ 51,565 | $ 32,445 |
Denominators: | |||||||||||
Basic weighted average common shares outstanding (in shares) | 33,638,170 | 33,624,401 | 33,621,444 | 33,380,028 | 33,231,716 | 33,307,312 | 33,417,079 | 33,236,259 | 33,566,367 | 33,298,104 | 32,804,606 |
Dilutive effect of share based awards (in shares) | 996,952 | 880,236 | 831,987 | ||||||||
Diluted weighted average common shares outstanding (in shares) | 34,714,308 | 34,675,485 | 34,510,400 | 34,351,657 | 34,272,731 | 34,180,635 | 34,207,973 | 34,051,971 | 34,563,319 | 34,178,340 | 33,636,593 |
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 0.46 | $ 0.48 | $ 0.49 | $ 0.41 | $ 0.44 | $ 0.46 | $ 0.36 | $ 0.29 | $ 1.84 | $ 1.55 | $ 0.99 |
Diluted (in dollars per share) | $ 0.45 | $ 0.46 | $ 0.47 | $ 0.40 | $ 0.43 | $ 0.44 | $ 0.35 | $ 0.28 | $ 1.79 | $ 1.51 | $ 0.96 |
Weighted average common shares considered anti-dilutive in computing diluted earnings per share (in shares) | 92,538 | 73,896 | 114,395 |
Other Income, net Other Incom55
Other Income, net Other Income, net - Summary of Other Income, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Nonoperating Income (Expense) [Abstract] | |||
Interest and dividend income | $ 1,673 | $ 2,904 | $ 3,709 |
Gain on sale of mutual fund investments | 8,087 | 3,902 | 0 |
Change in fair value of earn-out consideration | 4,060 | 0 | 0 |
Other, net | 1,588 | 221 | 263 |
Other income, net | $ 15,408 | $ 7,027 | $ 3,972 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Owned Assets: | ||
Owned assets, gross | $ 164,097 | $ 143,517 |
Less: Accumulated depreciation and amortization | (115,568) | (96,079) |
Owned Assets, net | 48,529 | 47,438 |
Assets under capital leases: | ||
Capital leased assets, gross | 1,797 | 1,819 |
Less: Accumulated depreciation and amortization | (1,297) | (1,266) |
Assets under capital leases, net | 500 | 553 |
Property, Plant and Equipment, net | 49,029 | 47,991 |
Network equipment, computers and software | ||
Owned Assets: | ||
Owned assets, gross | $ 109,998 | 95,245 |
Network equipment, computers and software | Minimum | ||
Owned Assets: | ||
Estimated useful life (in years) | 3 years | |
Network equipment, computers and software | Maximum | ||
Owned Assets: | ||
Estimated useful life (in years) | 5 years | |
Leasehold improvements | ||
Owned Assets: | ||
Owned assets, gross | $ 31,192 | 28,603 |
Assets under capital leases: | ||
Capital leased assets, gross | $ 854 | 877 |
Leasehold improvements | Minimum | ||
Owned Assets: | ||
Estimated useful life (in years) | 3 years | |
Leasehold improvements | Maximum | ||
Owned Assets: | ||
Estimated useful life (in years) | 8 years | |
Office furniture and equipment | ||
Owned Assets: | ||
Owned assets, gross | $ 15,426 | 14,000 |
Assets under capital leases: | ||
Capital leased assets, gross | $ 133 | 136 |
Office furniture and equipment | Minimum | ||
Owned Assets: | ||
Estimated useful life (in years) | 3 years | |
Office furniture and equipment | Maximum | ||
Owned Assets: | ||
Estimated useful life (in years) | 8 years | |
Motor vehicles | ||
Owned Assets: | ||
Owned assets, gross | $ 580 | 540 |
Assets under capital leases: | ||
Capital leased assets, gross | $ 810 | 806 |
Motor vehicles | Minimum | ||
Owned Assets: | ||
Estimated useful life (in years) | 2 years | |
Motor vehicles | Maximum | ||
Owned Assets: | ||
Estimated useful life (in years) | 5 years | |
Buildings | ||
Owned Assets: | ||
Owned assets, gross | $ 1,171 | 1,202 |
Estimated useful life (in years) | 30 years | |
Land | ||
Owned Assets: | ||
Owned assets, gross | $ 766 | 787 |
Capital work in progress | ||
Owned Assets: | ||
Owned assets, gross | $ 4,964 | $ 3,140 |
Property, Plant and Equipment57
Property, Plant and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 22,707,000 | $ 21,239,000 | $ 21,405,000 |
Capitalized computer software development costs | 2,242,000 | 0 | |
Capitalized software development amortization expense | $ 336,000 | $ 0 |
Business Combinations, Goodwi58
Business Combinations, Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 22, 2016 | Sep. 01, 2016 | Jul. 01, 2016 | Jun. 19, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||||
Vesting period (in years) | 4 years | ||||||||||||||
Acquisition related costs | $ 633 | $ 633 | |||||||||||||
Revenue of acquirees since acquisition | 6,855 | ||||||||||||||
Amortization expense | $ 3,592 | $ 2,848 | $ 2,718 | $ 2,715 | $ 2,717 | $ 2,642 | $ 2,808 | $ 2,059 | $ 11,873 | $ 10,226 | $ 6,623 | ||||
Customer relationships | |||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||||
Remaining amortization period (in years) | 5 years 9 months 18 days | ||||||||||||||
Developed technology | |||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||||
Remaining amortization period (in years) | 4 years 10 months 24 days | ||||||||||||||
Non-compete agreements | |||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||||
Remaining amortization period (in years) | 2 years 6 months | ||||||||||||||
Leasehold benefits | |||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||||
Remaining amortization period (in years) | 2 years 4 months 24 days | ||||||||||||||
Trade names and trademarks | |||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||||
Remaining amortization period (in years) | 5 years 3 months 18 days | ||||||||||||||
Liss Systems Limited | |||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||||
Cash consideration transferred | $ 5,111 | ||||||||||||||
Liss Systems Limited | Customer relationships | |||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||||
Useful life (in years) | 5 years | ||||||||||||||
Liss Systems Limited | Developed technology | |||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||||
Useful life (in years) | 10 years | ||||||||||||||
Liss Systems Limited | Trade names and trademarks | |||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||||
Useful life (in years) | 3 years | ||||||||||||||
IQR Consulting Inc. | |||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||||
Cash consideration transferred | $ 5,092 | ||||||||||||||
IQR Consulting Inc. | Customer relationships | |||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||||
Useful life (in years) | 8 years | ||||||||||||||
Datasource Consulting, LLC | |||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||||
Cash consideration transferred | $ 20,318 | ||||||||||||||
Datasource Consulting, LLC | Customer relationships | |||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||||
Useful life (in years) | 6 years | ||||||||||||||
Datasource Consulting, LLC | Developed technology | |||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||||
Useful life (in years) | 5 years | ||||||||||||||
Datasource Consulting, LLC | Trade names and trademarks | |||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||||
Useful life (in years) | 3 years | ||||||||||||||
Restricted Stock | Liss Systems Limited | |||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||||
Restricted common stock issued (in shares) | 33,459 | ||||||||||||||
Fair value of restricted common stock issued | $ 1,754 | ||||||||||||||
Vesting period (in years) | 4 years | ||||||||||||||
Restricted Stock | IQR Consulting Inc. | |||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||||
Restricted common stock issued (in shares) | 21,987 | ||||||||||||||
Fair value of restricted common stock issued | $ 1,125 | ||||||||||||||
Vesting period (in years) | 4 years | ||||||||||||||
Restricted Stock | Datasource Consulting, LLC | |||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||||
Restricted common stock issued (in shares) | 93,604 | ||||||||||||||
Fair value of restricted common stock issued | $ 4,483 | ||||||||||||||
Vesting period (in years) | 4 years |
Business Combinations, Goodwi59
Business Combinations, Goodwill and Intangible Assets - Summary of Purchase Price Allocation for Acquisitions (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Oct. 22, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 186,770 | $ 171,535 | $ 139,599 | |
Liss Systems Limited | ||||
Business Acquisition [Line Items] | ||||
Tangible assets | 517 | |||
Tangible liabilities | (993) | |||
Deferred tax liability | (643) | |||
Goodwill | 2,510 | |||
Total purchase price | 5,111 | |||
Liss Systems Limited | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 1,918 | |||
Liss Systems Limited | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 1,571 | |||
Liss Systems Limited | Trade names and trademarks | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 231 | |||
IQR Consulting Inc. | ||||
Business Acquisition [Line Items] | ||||
Tangible assets | 1,449 | |||
Tangible liabilities | (420) | |||
Deferred tax liability | (836) | |||
Goodwill | 2,599 | |||
Total purchase price | 5,092 | |||
IQR Consulting Inc. | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 2,300 | |||
Datasource Consulting, LLC | ||||
Business Acquisition [Line Items] | ||||
Tangible assets | $ 3,582 | |||
Tangible liabilities | (1,503) | |||
Goodwill | 10,999 | |||
Total purchase price | 20,318 | |||
Datasource Consulting, LLC | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 6,340 | |||
Datasource Consulting, LLC | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 520 | |||
Datasource Consulting, LLC | Trade names and trademarks | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 380 |
Business Combinations, Goodwi60
Business Combinations, Goodwill and Intangible Assets - Summary of Company's Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 171,535 | $ 139,599 |
Acquisitions | 16,108 | 33,155 |
Currency translation adjustments | (873) | (1,219) |
Ending Balance | 186,770 | 171,535 |
Insurance [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 35,824 | 35,824 |
Acquisitions | 2,510 | 0 |
Currency translation adjustments | (224) | 0 |
Ending Balance | 38,110 | 35,824 |
Healthcare [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 19,276 | 19,276 |
Acquisitions | 0 | 0 |
Currency translation adjustments | 0 | 0 |
Ending Balance | 19,276 | 19,276 |
Travel, Transportation and Logistics [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 13,278 | 13,833 |
Acquisitions | 0 | 0 |
Currency translation adjustments | (295) | (555) |
Ending Balance | 12,983 | 13,278 |
Finance and Accounting [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 47,891 | 48,555 |
Acquisitions | 0 | 0 |
Currency translation adjustments | (354) | (664) |
Ending Balance | 47,537 | 47,891 |
Other Operations Management [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 5,326 | 5,326 |
Acquisitions | 0 | 0 |
Currency translation adjustments | 0 | 0 |
Ending Balance | 5,326 | 5,326 |
Analytics | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 49,940 | 16,785 |
Acquisitions | 13,598 | 33,155 |
Currency translation adjustments | 0 | 0 |
Ending Balance | $ 63,538 | $ 49,940 |
Business Combinations, Goodwi61
Business Combinations, Goodwill and Intangible Assets - Summary of Company's Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 99,487 | $ 86,654 |
Accumulated Amortization | (46,617) | (34,821) |
Finite-lived intangible assets, net | 52,870 | 51,833 |
Intangible assets, gross | 100,387 | 87,554 |
Intangible assets, net | 53,770 | 52,733 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 75,181 | 64,816 |
Accumulated Amortization | (32,968) | (24,215) |
Finite-lived intangible assets, net | 42,213 | 40,601 |
Leasehold benefits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 2,715 | 2,789 |
Accumulated Amortization | (2,247) | (2,109) |
Finite-lived intangible assets, net | 468 | 680 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 14,186 | 12,234 |
Accumulated Amortization | (6,468) | (4,363) |
Finite-lived intangible assets, net | 7,718 | 7,871 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 2,045 | 2,045 |
Accumulated Amortization | (1,612) | (1,451) |
Finite-lived intangible assets, net | 433 | 594 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 5,360 | 4,770 |
Accumulated Amortization | (3,322) | (2,683) |
Finite-lived intangible assets, net | 2,038 | 2,087 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, trade names and trademarks | $ 900 | $ 900 |
Business Combinations, Goodwi62
Business Combinations, Goodwill and Intangible Assets - Estimated Amortization of Intangible Assets (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Business Combinations [Abstract] | |
2,017 | $ 13,910 |
2,018 | 12,156 |
2,019 | 11,257 |
2,020 | 4,111 |
2021 and thereafter | 11,436 |
Amortization expense, estimated for five years | $ 52,870 |
Accrued expenses and other cu63
Accrued expenses and other current liabilities Accrued expenses and other current liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accrued expenses | $ 30,690 | $ 26,238 |
Derivative instruments | 1,430 | 1,226 |
Client liability account | 4,005 | 2,217 |
Other current liabilities | 7,139 | 4,569 |
Accrued expenses and other current liabilities | $ 43,264 | $ 34,250 |
Non-current liabilities Non-cur
Non-current liabilities Non-current liabilities - Summary of Non-Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Liabilities, Noncurrent [Abstract] | ||
Derivative instruments | $ 828 | $ 1,132 |
Unrecognized tax benefits | 3,640 | 3,066 |
Deferred rent | 7,237 | 6,515 |
Retirement benefits | 1,977 | 1,441 |
Other non-current liabilities | 1,137 | 5,501 |
Non-current liabilities | $ 14,819 | $ 17,655 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Liabilities | |||
Fair value of earn-out consideration | $ 0 | ||
Recurring | |||
Assets | |||
Money market and mutual funds | $ 118,185 | $ 118,478 | |
Derivative financial instruments | 6,319 | 4,184 | |
Total | 124,504 | 122,662 | |
Liabilities | |||
Derivative financial instruments | 2,258 | 2,358 | |
Fair value of earn-out consideration | 4,060 | ||
Total | 2,258 | 6,418 | |
Recurring | Level 1 | |||
Assets | |||
Money market and mutual funds | 118,185 | 118,478 | |
Total | 118,185 | 118,478 | |
Liabilities | |||
Fair value of earn-out consideration | 0 | ||
Recurring | Level 2 | |||
Assets | |||
Money market and mutual funds | 0 | ||
Derivative financial instruments | 6,319 | 4,184 | |
Total | 6,319 | 4,184 | |
Liabilities | |||
Derivative financial instruments | 2,258 | 2,358 | |
Fair value of earn-out consideration | 0 | ||
Total | 2,258 | 2,358 | |
Recurring | Level 3 | |||
Assets | |||
Money market and mutual funds | 0 | ||
Liabilities | |||
Derivative financial instruments | $ 0 | 0 | |
Fair value of earn-out consideration | 4,060 | ||
Total | 4,060 | ||
RPM Direct LLC and RPM Data Solutions LLC | Recurring | |||
Liabilities | |||
Fair value of earn-out consideration | $ 4,060 |
Derivatives and Hedge Account66
Derivatives and Hedge Accounting - Additional Information (Detail) ÂŁ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2016GBP (ÂŁ) | Dec. 31, 2015GBP (ÂŁ) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net derivative losses which could be reclassified into earnings within the next 12 months | $ 1,781 | |||
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 | 218,545 | 230,894 | ||
Derivatives not Designated as Hedging Instruments | Foreign Currency Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange contracts outstanding | $ 71,318 | $ 61,641 | ÂŁ 11,153 | ÂŁ 13,256 |
Derivatives and Hedge Account67
Derivatives and Hedge Accounting - Summary of Fair Value of Foreign Currency Exchange Contracts (Detail) - Foreign Currency Exchange Contracts - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives Designated as Hedging Instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | $ 3,211 | $ 2,664 |
Derivatives Designated as Hedging Instruments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | 2,994 | 1,175 |
Derivatives Designated as Hedging Instruments | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | 1,430 | 1,226 |
Derivatives Designated as Hedging Instruments | Other non current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | 828 | 1,132 |
Derivatives not Designated as Hedging Instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | $ 113 | $ 345 |
Derivatives and Hedge Account68
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 | 12 Months Ended | |
Dec. 31, 2016 | Dec. 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) | $ 3,895 | $ (1,111) |
Foreign exchange gain | 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) | 1,434 | (1,117) |
Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 |
Foreign exchange gain | Derivatives not Designated as Hedging Instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in Income on Derivatives | $ 4,790 | $ 862 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) | Oct. 24, 2014USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
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 | $ 45,000,000 | |
Debt instrument, term (in years) | 5 years | ||
Option to increase additional credit facility | $ 50,000,000 | ||
Credit facility expiration date | Oct. 24, 2019 | ||
Line of credit interest rate during period (as a percent) | 2.21% | ||
Other short-term borrowings | $ 10,000,000 | ||
Unamortized debt issuance costs | $ 272,000 | $ 368,000 | |
Interest coverage ratio, minimum | 3.5 | ||
Leverage ratio, minimum | 2.5 | ||
Revolving Credit Facility | Minimum | |||
Credit Facilities [Line Items] | |||
Commitment fee percentage range on unused credit facility (as a percent) | 0.20% | ||
Revolving Credit Facility | Maximum | |||
Credit Facilities [Line Items] | |||
Commitment fee percentage range on unused credit facility (as a percent) | 0.30% | ||
Revolving Credit Facility | Prime Rate | Minimum | |||
Credit Facilities [Line Items] | |||
Basis spread on variable rate (as a percent) | 0.25% | ||
Revolving Credit Facility | Prime Rate | Maximum | |||
Credit Facilities [Line Items] | |||
Basis spread on variable rate (as a percent) | 0.75% | ||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | |||
Credit Facilities [Line Items] | |||
Basis spread on variable rate (as a percent) | 1.25% | ||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | |||
Credit Facilities [Line Items] | |||
Basis spread on variable rate (as a percent) | 1.75% |
Capital Structure - Additional
Capital Structure - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016USD ($)ClassOfCommonStock$ / sharesshares | Dec. 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 | 17,676 | 15,078 | |
Withholding tax payments related to the vesting of restricted stock for total consideration | $ 807,000 | $ 484,000 | |
Weighted average purchase price per share prior to the vesting date (in dollars per share) | $ / shares | $ 45.65 | $ 32.10 | |
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 | 364,056 | 377,015 | |
Common stock aggregate purchase price including commissions | $ 17,396,000 | $ 13,711,000 | |
Common stock average purchase price per share (in dollars per share) | $ / shares | $ 47.78 | $ 36.37 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Change in Projected Benefit Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in projected benefit obligation: | |||
Benefit obligation at the beginning of the year | $ 7,909 | $ 7,563 | |
Service cost | 1,601 | 1,638 | $ 1,523 |
Interest cost | 599 | 550 | 559 |
Benefits paid | (837) | (851) | |
Actuarial (gain)/loss | 677 | (609) | |
Acquisition | 47 | 0 | |
Effect of exchange rate changes | (285) | (382) | |
Projected benefit obligation at the end of the year | 9,711 | 7,909 | $ 7,563 |
Unfunded amount–non-current | 1,977 | 1,441 | |
Unfunded amount–current | 2,094 | 1,545 | |
Total accrued liability | 4,071 | 2,986 | |
Accumulated benefit obligation | $ 6,533 | $ 5,537 |
Employee Benefit Plans - Net Gr
Employee Benefit Plans - Net Gratuity Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Service cost | $ 1,601 | $ 1,638 | $ 1,523 |
Interest cost | 599 | 550 | 559 |
Expected return on plan assets | (416) | (385) | (172) |
Actuarial loss | 90 | 211 | 149 |
Net gratuity cost | $ 1,874 | $ 2,014 | $ 2,059 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Accumulated other comprehensive loss, expected to be recognized over the next fiscal year | $ 268 | ||
Percentage of discretionary contributions towards 401(k) Plan, Maximum (as a percent) | 3.00% | 3.00% | 3.00% |
Company's contribution to the 401(k) Plan | $ 2,383 | $ 1,907 | $ 1,503 |
Contribution to various defined contribution plans | $ 6,306 | $ 5,753 | $ 5,802 |
Employee Benefit Plans - Summ74
Employee Benefit Plans - Summary of Components Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax [Abstract] | ||
Net actuarial loss | $ 489 | $ 77 |
Net prior service cost | 9 | 9 |
Accumulated other comprehensive loss, net of tax | $ 498 | $ 86 |
Employee Benefit Plans - Summ75
Employee Benefit Plans - Summary of Weighted Average Actuarial Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate (as a percent) | 6.80% | 7.80% | 8.00% |
Rate of increase in compensation levels (as a percent) | 9.20% | 8.40% | 8.20% |
Expected long term rate of return on plan assets per annum (as a percent) | 9.00% | 9.00% | 9.00% |
Employee Benefit Plans - Summ76
Employee Benefit Plans - Summary of Expected Benefit Payments (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2,017 | $ 2,782 |
2,018 | 2,407 |
2,020 | 2,146 |
2,021 | 1,960 |
2,021 | 1,785 |
2022 to 2026 | $ 5,238 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at the beginning of the year | $ 4,923 | $ 4,752 |
Actual return | 450 | 355 |
Employer contribution | 1,242 | 903 |
Benefits paid | (837) | (851) |
Effect of exchange rate changes | (138) | (236) |
Plan assets at the ending of the year | $ 5,640 | $ 4,923 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments under Capital Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Leases [Abstract] | ||
2,017 | $ 289 | |
2,018 | 186 | |
2,019 | 117 | |
2,020 | 47 | |
Total minimum lease payments | 639 | |
Less: amount representing interest | 107 | |
Present value of minimum lease payments | 532 | |
Less: current portion | 232 | $ 384 |
Long term capital lease obligation | $ 300 | $ 278 |
Leases - Future Minimum Lease79
Leases - Future Minimum Lease Payments under Non-Cancelable Operating Lease Agreements Expiring After December 31, 2016 (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Leases [Abstract] | |
2,017 | $ 9,586 |
2,018 | 8,119 |
2,019 | 5,895 |
2,020 | 4,085 |
2,021 | 1,950 |
2022 and thereafter | 1,398 |
Total operating lease payments | $ 31,033 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Leases [Abstract] | |||
Rent expense under both cancelable and non-cancelable operating leases | $ 21,382 | $ 19,943 | $ 18,884 |
Deferred rent | $ 7,915 | $ 7,066 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 12,652 | $ 25,045 | $ (4,785) |
Foreign | 71,232 | 50,731 | 42,423 |
Income before income tax expense | $ 83,884 | $ 75,776 | $ 37,638 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Provision/(Benefit) Relating to Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current provision/(benefit): | |||
Domestic | $ 7,107 | $ 9,951 | $ (1,069) |
Foreign | 18,428 | 12,022 | 6,186 |
Total | 25,535 | 21,973 | 5,117 |
Deferred provision/(benefit): | |||
Domestic | (2,506) | 3,041 | 535 |
Foreign | (878) | (803) | (459) |
Total | (3,384) | 2,238 | 76 |
Income tax expense | $ 22,151 | $ 24,211 | $ 5,193 |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Income Tax Rate Differs from Amount Computed by Applying U.S. Federal Statutory Income Tax Rate to Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Expected tax expense | $ 29,361 | $ 26,521 | $ 12,797 |
Change in valuation allowance | 22 | 19 | 64 |
Impact of tax holiday | (4,027) | (2,991) | (3,208) |
Foreign tax rate differential | (2,716) | (2,797) | (3,327) |
Deferred tax (benefit)/provision | (878) | (803) | (459) |
Unrecognized tax benefits and interest | 495 | 324 | (1,846) |
State taxes, net of Federal taxes | 202 | 1,327 | 593 |
Non-deductible expenses | 144 | 26 | 15 |
Prior year tax expense/(benefit) | 2,450 | ||
Other | (452) | 135 | 564 |
Income tax expense | $ 22,151 | $ 24,211 | $ 5,193 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||
Effective tax rates (as a percent) | 26.40% | 32.00% | |
Expiration period of tax holiday | 6 years | ||
Effective tax rate in Philippines post tax exemption (as a percent) | 5.00% | ||
Effect of diluted earnings per share, tax holiday (in dollars per share) | $ 0.12 | $ 0.09 | $ 0.10 |
Operating loss carryforward valuation allowance | $ 351,000 | $ 512,000 | |
Valuation allowance related to tax credit carry forward | 103,000 | 83,000 | |
Deferred income taxes provided for Company's share of undistributed net earnings of foreign operations | 0 | 0 | |
Undistributed net earnings of foreign operations | 315,486,000 | 261,804,000 | |
Unrecognized tax benefits | 3,087,000 | 2,797,000 | |
Recognized interest and penalties | 315,000 | 205,000 | |
Accrued interest on unrecognized tax benefits | $ 1,553,000 | 1,269,000 | |
First Five Years | |||
Income Taxes [Line Items] | |||
Tax exemption on profit (as a percent) | 100.00% | ||
Five to Ten Years | |||
Income Taxes [Line Items] | |||
Tax exemption on profit (as a percent) | 50.00% | ||
Expiration 2,032 | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | $ 4,052,000 | $ 9,063,000 | |
Operating loss carry forwards expiration date (year) | 2,032 |
Income Taxes - Summary of Com85
Income Taxes - Summary of Components of Deferred Tax Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Tax credit carry forward | $ 4,806 | $ 5,164 |
Depreciation and amortization | 3,765 | 3,777 |
Share-based compensation | 10,385 | 8,099 |
Accrued employee costs and other expenses | 5,130 | 3,079 |
Net operating loss carry forwards | 1,856 | 3,746 |
Unrealized exchange loss | 2,099 | 1,136 |
Deferred rent | 1,307 | 1,292 |
Others | 484 | 62 |
Deferred tax assets | 29,832 | 26,355 |
Valuation allowance | (454) | (595) |
Deferred tax assets | 29,378 | 25,760 |
Deferred tax liabilities: | ||
Unrealized exchange gain | 1,414 | 848 |
Intangible assets | 13,165 | 11,163 |
Deferred tax liabilities: | 14,579 | 12,011 |
Net deferred tax assets | $ 14,799 | $ 13,749 |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Gross Unrecognized Tax Benefits (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
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 | 156 |
Decreases related to prior year tax positions | 0 |
Increases related to current year tax positions | 178 |
Decreases related to current year tax positions | 0 |
Effect of exchange rate changes | (44) |
Balance as of December 31, 2016 | $ 3,087 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - shares | Jun. 19, 2015 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiring period of equity options to employees (in years) | 10 years | |
Vesting period (in years) | 4 years | |
2015 Stock Options Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Increase in number of shares available for grant (in shares) | 1,700,000 | |
Number of shares available for grant (in shares) | 1,894,867 |
Stock Based Compensation - Cost
Stock Based Compensation - Costs Related to Company's Stock-Based Compensation Plan (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Stock-based compensation expenses | $ 5,027 | $ 4,484 | $ 4,450 | $ 5,809 | $ 3,768 | $ 4,471 | $ 3,553 | $ 4,255 | $ 19,770 | $ 16,047 | $ 11,011 |
Cost of revenue | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Stock-based compensation expenses | 3,664 | 2,895 | 2,290 | ||||||||
General and administrative expenses | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Stock-based compensation expenses | 8,372 | 6,077 | 4,350 | ||||||||
Selling and marketing expenses | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Stock-based compensation expenses | $ 7,734 | $ 7,075 | $ 4,371 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Based Compensation Stock Option Activity (Detail) - Employee Stock Option - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of options, outstanding, beginning balance (in shares) | 1,210,141 | |
Number of options, granted (in shares) | 0 | |
Number of options, exercised (in shares) | (398,239) | |
Number of options, forfeited (in shares) | 0 | |
Number of options, outstanding, ending balance (in shares) | 811,902 | 1,210,141 |
Number of options, vested and exercisable at December 31, 2016 (in shares) | 811,902 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted-average exercise price, outstanding, beginning balance (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) | 16.32 | |
Weighted-average exercise price, forfeited (in dollars per share) | 0 | |
Weighted-average exercise price, outstanding, ending balance (in dollars per share) | 16.31 | $ 16.31 |
Weighted average exercise price, vested and exercisable at December 31, 2016 (in dollars per share) | $ 16.31 | |
Aggregate intrinsic value, outstanding, ending balance | $ 27,718 | $ 34,638 |
Weighted-average remaining contractual life, outstanding, ending balance (in years) | 2 years 11 months 16 days | 3 years 6 months |
Aggregate intrinsic value, vested and exercisable at December 31, 2016 | $ 27,718 | |
Weighted-average remaining contractual life, vested and exercisable at December 31, 2016 (in years) | 2 years 11 months 16 days |
Stock Based Compensation - St90
Stock Based Compensation - Stock Options Additional Information (Details) - Employee Stock Option - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | ||
Unrecognized compensation cost for unvested stock options | $ 0 | ||
Weighted-average fair value of options granted (in dollars per share) | $ 9.77 | ||
Total grant date fair value of option vested in period | 706,000 | $ 1,228,000 | $ 2,112,000 |
Intrinsic value of options exercised | $ 12,911,000 | $ 4,413,000 | $ 5,757,000 |
Stock Based Compensation - Comp
Stock Based Compensation - Company's Stock Options Outstanding and Stock Options Vested and Exercisable (Detail) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding (in shares) | shares | 811,902 |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 16.31 |
Options Vested and Exercisable (in shares) | shares | 811,902 |
Options Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 16.31 |
$8.00 to $15.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | 8 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 15 |
Options Outstanding (in shares) | shares | 362,134 |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 9.31 |
Options Vested and Exercisable (in shares) | shares | 362,134 |
Options Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 9.31 |
$15.01 to $21.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | 15.01 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 21 |
Options Outstanding (in shares) | shares | 194,515 |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 18.84 |
Options Vested and Exercisable (in shares) | shares | 194,515 |
Options Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 18.84 |
$21.01 to $28.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | 21.01 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 28 |
Options Outstanding (in shares) | shares | 255,253 |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 24.30 |
Options Vested and Exercisable (in shares) | shares | 255,253 |
Options Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 24.30 |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Stock Activity Under Company's Stock Plans (Detail) - $ / shares | 12 Months Ended | |
Dec. 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, beginning balance (in shares) | 134,934 | |
Number, granted (in shares) | 127,063 | |
Number, vested (in shares) | (15,057) | |
Number, forfeited (in shares) | 0 | |
Number, outstanding, ending balance (in shares) | 246,940 | 134,934 |
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, beginning balance (in dollars per share) | $ 35.28 | |
Weighted-average fair value, granted (in dollars per share) | 49.08 | |
Weighted-average fair value, vested (in dollars per share) | 34.61 | |
Weighted-average fair value, forfeited (in dollars per share) | 0 | |
Weighted-average fair value, outstanding, ending balance (in dollars per share) | $ 42.42 | $ 35.28 |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Number, outstanding, beginning balance (in shares) | 1,228,287 | |
Number, granted (in shares) | 468,370 | |
Number, vested (in shares) | (358,712) | |
Number, forfeited (in shares) | (81,657) | |
Number, outstanding, ending balance (in shares) | 1,256,288 | 1,228,287 |
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, beginning balance (in dollars per share) | $ 30.06 | |
Weighted-average fair value, granted (in dollars per share) | 48.94 | |
Weighted-average fair value, vested (in dollars per share) | 28.55 | |
Weighted-average fair value, forfeited (in dollars per share) | 32.38 | |
Weighted-average fair value, outstanding, ending balance (in dollars per share) | $ 37.38 | $ 30.06 |
Restricted stock units vested for which underlying common stock to be issued (in shares) | 19,874 | 21,364 |
Restricted stock units vested (in shares) | 135,054 | 149,364 |
Restricted stock units forfeited (in shares) | 5,296 |
Stock Based Compensation - Re93
Stock Based Compensation - Restricted Stock and RSU Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 43,016 | ||
Cost not yet recognized, period for recognition (in years) | 2 years 8 months 12 days | ||
Weighted-average fair value of restricted stock and RSUs granted (in dollars per share) | $ 48.97 | $ 35.18 | $ 26.47 |
Number of restricted stock units, vested | $ 10,761 | $ 12,620 | $ 11,393 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value of restricted stock and RSUs granted (in dollars per share) | $ 49.08 | ||
Number of restricted stock units, granted (in shares) | 127,063 | ||
Liss Systems Limited | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock units, granted (in shares) | 33,459 | ||
Datasource Consulting, LLC | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock units, granted (in shares) | 93,604 | ||
IQR Consulting Inc. | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock units, granted (in shares) | 21,987 | ||
RPM Direct LLC and RPM Data Solutions LLC | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock units, granted (in shares) | 122,131 |
Stock Based Compensation - Perf
Stock Based Compensation - Performance Based Stock Awards Additional Information (Details) - USD ($) $ in Thousands | Jun. 19, 2015 | Feb. 28, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 4 years | ||||
Revenue Based PRSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of target shares an employee can earn (as a percent) | 200.00% | ||||
Number, granted (in shares) | 59,861 | ||||
Revenue Based PRSUs | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of target shares an employee can earn (as a percent) | 200.00% | ||||
Market Condition Based PRSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number, granted (in shares) | 59,859 | ||||
Performance Based Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 8,603 | ||||
Cost not yet recognized, period for recognition (in years) | 1 year 7 months 2 days | ||||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number, granted (in shares) | 468,370 | ||||
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance based percentage (as a percent) | 100.00% | ||||
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Revenue Based PRSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance based percentage (as a percent) | 50.00% | ||||
Vesting period (in years) | 3 years | ||||
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Revenue Based PRSUs | Year One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights (as a percent) | 33.33% | ||||
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Revenue Based PRSUs | Year Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights (as a percent) | 33.33% | ||||
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Market Condition Based PRSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance based percentage (as a percent) | 50.00% | ||||
Vesting period (in years) | 3 years | ||||
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Market Condition Based PRSUs | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of target shares an employee can earn (as a percent) | 200.00% | ||||
Subsequent Event | Performance Based Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number, granted (in shares) | 495,000 |
Stock Based Compensation - Pe95
Stock Based Compensation - Performance Restricted Stock Activity (Details) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Revenue Based PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Number, outstanding, beginning balance (in shares) | shares | 107,213 |
Number, granted (in shares) | shares | 59,861 |
Number, additionally issued due to achievement of higher-than-target performance (in shares) | shares | 307 |
Number, vested (in shares) | shares | (44,407) |
Number, forfeited (in shares) | shares | (7,800) |
Number, outstanding, ending balance (in shares) | shares | 115,174 |
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, beginning balance (in dollars per share) | $ / shares | $ 30.88 |
Weighted-average fair value, granted (in dollars per share) | $ / shares | 48.57 |
Weighted-average fair value, additionally issued due to achievement of higher-than-target performance (in shares) | $ / shares | 25.63 |
Weighted-average fair value, vested (in dollars per share) | $ / shares | 25.63 |
Weighted-average fair value, forfeited (in dollars per share) | $ / shares | 36.51 |
Weighted-average fair value, outstanding, ending balance (in dollars per share) | $ / shares | $ 41.70 |
Market Condition Based PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Number, outstanding, beginning balance (in shares) | shares | 207,212 |
Number, granted (in shares) | shares | 59,859 |
Number, additionally issued due to achievement of higher-than-target performance (in shares) | shares | 44,100 |
Number, vested (in shares) | shares | (88,200) |
Number, forfeited (in shares) | shares | (7,800) |
Number, outstanding, ending balance (in shares) | shares | 215,171 |
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, beginning balance (in dollars per share) | $ / shares | $ 38.80 |
Weighted-average fair value, granted (in dollars per share) | $ / shares | 67.94 |
Weighted-average fair value, additionally issued due to achievement of higher-than-target performance (in shares) | $ / shares | 33.60 |
Weighted-average fair value, vested (in dollars per share) | $ / shares | 33.60 |
Weighted-average fair value, forfeited (in dollars per share) | $ / shares | 54.16 |
Weighted-average fair value, outstanding, ending balance (in dollars per share) | $ / shares | $ 47.42 |
Stock Based Compensation Share-
Stock Based Compensation Share-based Compensation - Summary of Weighted Average Valuation Assumptions for Market Condition Performance Restricted Stock Units (Details) - Market Condition Based PRSUs | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected life (in years) | 2 years 10 months 6 days | 2 years 10 months 2 days | 2 years 10 months 17 days |
Risk free interest rate (as a percent) | 0.88% | 0.98% | 0.65% |
Volatility (as a percent) | 28.00% | 30.30% | 30.40% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase commitments, net of advances | $ 15,400 | |
Export-oriented units established (as a percent) | 100.00% | |
Transfer pricing issues starting period (year) | 2,003 | |
Transfer pricing issues ending period (year) | 2,014 | |
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 | $ 17,963 | $ 21,360 |
Total bank guarantees and deposits in respect of contingencies | 8,640 | 14,668 |
Amounts paid as deposits in respect of contingencies | 6,690 | 12,665 |
Bank guarantee issued | $ 1,950 | $ 2,003 |