Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 28, 2017 | |
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-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Trading Symbol | EXLS | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 33,675,134 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 91,700 | $ 213,155 |
Short-term investments | 126,472 | 13,491 |
Restricted cash | 2,691 | 3,846 |
Accounts receivable, net | 119,811 | 113,067 |
Prepaid expenses | 9,596 | 7,855 |
Advance income tax, net | 7,687 | 6,242 |
Other current assets | 25,541 | 21,168 |
Total current assets | 383,498 | 378,824 |
Property, plant and equipment, net | 59,220 | 49,029 |
Restricted cash | 3,657 | 3,393 |
Deferred taxes, net | 16,392 | 14,799 |
Intangible assets, net | 50,356 | 53,770 |
Goodwill | 187,952 | 186,770 |
Other assets | 25,618 | 19,943 |
Total assets | 726,693 | 706,528 |
Current liabilities: | ||
Accounts payable | 5,286 | 3,288 |
Short-term borrowings | 10,000 | 10,000 |
Deferred revenue | 17,968 | 16,615 |
Accrued employee cost | 29,830 | 50,832 |
Accrued expenses and other current liabilities | 47,670 | 43,264 |
Current portion of capital lease obligations | 216 | 232 |
Total current liabilities | 110,970 | 124,231 |
Long term borrowings | 35,000 | 35,000 |
Capital lease obligations, less current portion | 285 | 300 |
Non-current liabilities | 17,729 | 14,819 |
Total liabilities | 163,984 | 174,350 |
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, 36,100,622 shares issued and 33,772,166 shares outstanding as of March 31, 2017 and 35,699,819 shares issued and 33,628,109 shares outstanding as of December 31, 2016 | 36 | 36 |
Additional paid-in capital | 296,792 | 284,646 |
Retained earnings | 394,964 | 382,722 |
Accumulated other comprehensive loss | (57,013) | (75,057) |
Total including shares held in treasury | 634,779 | 592,347 |
Less: 2,328,456 shares as of March 31, 2017 and 2,071,710 shares as of December 31, 2016, held in treasury, at cost | (72,275) | (60,362) |
ExlService Holdings, Inc. stockholders' equity | 562,504 | 531,985 |
Non-controlling interest | 205 | 193 |
Total equity | 562,709 | 532,178 |
Total liabilities and equity | $ 726,693 | $ 706,528 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
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) | 36,100,622 | 35,699,819 |
Common stock, shares outstanding (in shares) | 33,772,166 | 33,628,109 |
Treasury stock (in shares) | 2,328,456 | 2,071,710 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Revenues, net | $ 183,033 | $ 167,036 |
Cost of revenues (exclusive of depreciation and amortization) | 120,119 | 108,379 |
Gross profit | 62,914 | 58,657 |
Operating expenses: | ||
General and administrative expenses | 24,224 | 20,618 |
Selling and marketing expenses | 13,362 | 13,454 |
Depreciation and amortization | 9,426 | 8,133 |
Total operating expenses | 47,012 | 42,205 |
Income from operations | 15,902 | 16,452 |
Foreign exchange gain, net | 1,568 | 469 |
Interest expense | (432) | (385) |
Other income, net | 3,310 | 3,179 |
Income before income tax expense | 20,348 | 19,715 |
Income tax expense | 3,560 | 5,895 |
Net income | $ 16,788 | $ 13,820 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.50 | $ 0.41 |
Diluted (in dollars per share) | $ 0.48 | $ 0.40 |
Weighted-average number of shares used in computing earnings per share: | ||
Basic weighted average common shares outstanding (in shares) | 33,845,560 | 33,380,028 |
Diluted weighted average common shares outstanding (in shares) | 35,108,882 | 34,351,657 |
Unaudited Consolidated Stateme5
Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 16,788 | $ 13,820 | |
Other comprehensive income: | |||
Unrealized gain on effective cash flow hedges, net of taxes $1,951 and $403, respectively | 6,772 | 2,034 | |
Foreign currency translation adjustment | 11,643 | 1,033 | |
Retirement benefits, net of taxes nil and $5, respectively | 0 | 182 | |
Reclassification adjustments | |||
Realized (gain) on cash flow hedges, net of taxes ($191) and ($25), respectively(1) | [1] | (433) | (32) |
Retirement benefits, net of taxes $7 and $1, respectively(2) | [2] | 62 | 21 |
Total other comprehensive income | 18,044 | 3,238 | |
Total comprehensive income | $ 34,832 | $ 17,058 | |
[1] | These are reclassified to net income and are included in the foreign exchange gain in the unaudited consolidated statements of income. See Note 13 to the unaudited consolidated financial statements. | ||
[2] | These are reclassified to net income and are included in the computation of net periodic pension costs in the unaudited consolidated statements of income. See Note 16 to the unaudited consolidated financial statements |
Unaudited Consolidated Stateme6
Unaudited Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized (loss)/gain on effective cash flow hedges, taxes | $ 1,951 | $ 403 |
Retirement benefits, taxes | 0 | 5 |
Realized loss/(gain) on cash flow hedges, taxes | (191) | (25) |
Retirement benefits, taxes | $ 7 | $ 1 |
Unaudited Consolidated Stateme7
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 16,788 | $ 13,820 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,426 | 8,133 |
Stock-based compensation expense | 5,956 | 5,809 |
Unrealized gain on short term investments | 0 | (1,525) |
Change in fair value of earn-out consideration | 0 | (250) |
Unrealized foreign exchange loss/(gain) | 2,225 | (1,061) |
Deferred income taxes | (4,256) | 3,646 |
Others, net | (7) | (12) |
Change in operating assets and liabilities: | ||
Restricted cash | 1,050 | (919) |
Accounts receivable | (6,340) | (14,490) |
Prepaid expenses and other current assets | (1,285) | (3,641) |
Accounts payable | 2,185 | (2,584) |
Deferred revenue | 1,480 | 2,334 |
Accrued employee costs | (21,053) | (19,567) |
Accrued expenses and other liabilities | 806 | 4,147 |
Advance income tax, net | (1,471) | (4,429) |
Other assets | 1,569 | 148 |
Net cash provided by/(used for) operating activities | 7,073 | (10,441) |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (10,114) | (8,457) |
Purchase of short-term investments | (129,837) | (101,327) |
Proceeds from redemption of short-term investments | 22,879 | 20,004 |
Net cash used for investing activities | (117,072) | (89,780) |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | (43) | (123) |
Repayments of borrowings | 0 | (5,000) |
Acquisition of treasury stock | (11,913) | (6,855) |
Proceeds from exercise of stock options | 191 | 2,010 |
Net cash used for financing activities | (11,765) | (9,968) |
Effect of exchange rate changes on cash and cash equivalents | 309 | 640 |
Net decrease in cash and cash equivalents | (121,455) | (109,549) |
Cash and cash equivalents, beginning of period | 213,155 | 205,323 |
Cash and cash equivalents, end of period | $ 91,700 | $ 95,774 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2017 | |
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 the Business Process Management ("BPM") industry providing operations management services and analytics services that help businesses enhance growth and profitability. Using its proprietary platforms, methodologies and tools, the Company looks deeper to help its clients 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 | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Basis of Preparation and Principles of Consolidation The unaudited interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for annual financial statements and therefore should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016. The unaudited interim consolidated financial statements reflect all adjustments (of a normal and recurring nature) that management considers necessary for a fair presentation of such statements for the interim periods presented. The unaudited consolidated statements of income for the interim periods presented are not necessarily indicative of the results for the full year or for any subsequent period. The accompanying unaudited consolidated financial statements include the financial statements of ExlService Holdings and all of its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Non-controlling interest is the equity in a subsidiary not attributable, directly or indirectly, to the parent and it represents the minority partner’s interest in the operations of ExlService Colombia S.A.S. 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 all the periods presented were insignificant and are included under general and administrative expenses in the unaudited consolidated statements of income. (b) Use of Estimates The preparation of the unaudited consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the unaudited consolidated statements of income during the reporting period. Although these estimates are based on management’s best assessment of the current business environment, actual results may be different from those estimates. The significant estimates and assumptions that affect the financial statements include, but are not limited to, allowance for doubtful receivables, 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. (c) Share-Based Compensation 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 adopted this ASU effective January 1, 2017. The following summarizes the effects of the adoption on the Company's unaudited consolidated financial statements: Income taxes - Upon adoption of this standard, all excess tax benefits and tax deficiencies are recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. The Company also recognizes excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. As a result, the Company recognized discrete adjustments to income tax expense for the three months ended March 31, 2017, in the amount of $2,057 , related to excess tax benefits. No adjustment is recorded for any windfall benefits previously recorded in APIC. Forfeitures - Prior to adoption, share-based compensation expense was recognized on a straight line basis, net of estimated forfeitures, such that expense was recognized only for share-based awards that are expected to vest. A forfeiture rate was estimated annually and revised, if necessary, in subsequent periods if actual forfeitures differed from initial estimates. Upon adoption, the Company will no longer apply a forfeiture rate and instead will account for forfeitures as they occur. The Company has applied the modified retrospective adoption approach as of January 1, 2017 and has recognized a cumulative-effect adjustment to reduce additional paid-in-capital of $5,999 and retained earnings of $4,546 (net of deferred tax effect of $1,453 ). Statements of Cash Flows - The Company historically accounted for excess tax benefits on the Statement of Cash Flows as a financing activity. Upon adoption of this standard, excess tax benefits are classified along with other income tax cash flows as an operating activity. The Company has elected to adopt this portion of the standard on a prospective basis beginning in 2017 and accordingly prior periods have not been adjusted. Earnings Per Share - The Company uses the treasury stock method to compute diluted earnings per share, unless the effect would be anti-dilutive. The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of diluted earnings per share. Upon adoption, no other aspects of ASU 2016-09 had an effect on the Company's unaudited consolidated financial statements or related footnote disclosures. (d) Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 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 2014-09 is effective for the Company in the first quarter of fiscal 2018 using either one of two methods: (i) retrospectively to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. The Company is 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 the contractual arrangements and the mix of business. Upon adoption, we expect there to be a change in the manner that variable consideration in certain 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 it recognizes 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 its contractual arrangements. The Company's considerations include, but are not limited to, the comparability of its financial statements and the comparability within its industry from application of the new standard to its contractual arrangements. The Company plans 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 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). ASU 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 2016-02, Leases (Topic 842). ASU 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 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 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU 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 June 2016, FASB issued ASU 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 2016-13 is not expected to have a material effect on its consolidated financial statements. In August 2016, FASB issued ASU 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 15, 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 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 15, 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. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (Topic 350), which eliminates Step 2 from the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for annual and interim periods in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed after January 1, 2017 and should be applied prospectively. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements. In March, 2017, FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost. The ASU amends ASC 715, Compensation — Retirement Benefits, to require employers that present a measure of operating income in their statement of income to include only the service cost component of net periodic pension cost and net periodic post-retirement benefit cost in operating expenses (together with other employee compensation costs). The other components of net benefit cost, including amortization of prior service cost/credit, and settlement and curtailment effects, are to be included in non-operating expenses. The update also stipulates that only the service cost component of net benefit cost is eligible for capitalization. The amendments are effective for fiscal years beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted as of the beginning of an annual period. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. |
Segment and Geographical Inform
Segment and Geographical Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segment and 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 the Company 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 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 periods 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 our banking and financial services, utilities and consulting operating segments have been included in a category called “All Other”. Segment information for all prior periods presented herein has been changed to conform to the current presentation. This change in segment presentation does not affect the Company's unaudited 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. Revenues and cost of revenues for the three months ended March 31, 2017 and 2016, respectively, for each of the reportable segments, are as follows: Three months ended March 31, 2017 Insurance Healthcare TT&L F&A All Other Analytics Total Revenues, net $ 55,921 $ 18,932 $ 17,043 $ 21,014 $ 21,116 $ 49,007 $ 183,033 Cost of revenues (exclusive of depreciation and amortization) 38,329 12,186 10,224 12,898 14,444 32,038 120,119 Gross profit $ 17,592 $ 6,746 $ 6,819 $ 8,116 $ 6,672 $ 16,969 $ 62,914 Operating expenses 47,012 Foreign exchange gain, interest expense and other income, net 4,446 Income tax expense 3,560 Net income $ 16,788 Three months ended March 31, 2016 Insurance Healthcare TT&L F&A All Other Analytics Total Revenues, net $ 48,299 $ 16,388 $ 17,559 $ 19,818 $ 26,006 $ 38,966 $ 167,036 Cost of revenues (exclusive of depreciation and amortization) 34,269 10,545 10,463 11,444 16,887 24,771 108,379 Gross profit $ 14,030 $ 5,843 $ 7,096 $ 8,374 $ 9,119 $ 14,195 $ 58,657 Operating expenses 42,205 Foreign exchange gain, interest expense and other income, net 3,263 Income tax expense 5,895 Net income $ 13,820 Net revenues of the Company by service type, were as follows: Three months ended March 31, 2017 2016 BPM and related services (1) $ 134,026 $ 128,070 Analytics services 49,007 38,966 Total $ 183,033 $ 167,036 (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. Three months ended March 31, 2017 2016 Revenues, net United States $ 150,281 $ 134,074 Non-United States United Kingdom 26,082 27,428 Rest of World 6,670 5,534 Total Non-United States 32,752 32,962 $ 183,033 $ 167,036 Property, plant and equipment by geographic area, were as follows: As of March 31, 2017 December 31, 2016 Property, plant and equipment, net India $ 33,909 $ 23,362 United States 11,919 10,809 Philippines 10,521 11,900 Rest of World 2,871 2,958 $ 59,220 $ 49,029 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share is computed using the weighted average number of common shares plus the potentially dilutive effect of common stock equivalents issued and outstanding at the reporting date, using the treasury stock method. Stock options, restricted stock and restricted stock units that are anti-dilutive are excluded from the computation of weighted average shares outstanding. The following table sets forth the computation of basic and diluted earnings per share: Three months ended March 31, 2017 2016 Numerators: Net income $ 16,788 $ 13,820 Denominators: Basic weighted average common shares outstanding 33,845,560 33,380,028 Dilutive effect of share based awards 1,263,322 971,629 Diluted weighted average common shares outstanding 35,108,882 34,351,657 Earnings per share: Basic $ 0.50 $ 0.41 Diluted $ 0.48 $ 0.40 Weighted average common shares considered anti-dilutive in computing diluted earnings per share 452,988 200,752 |
Other Income, net
Other Income, net | 3 Months Ended |
Mar. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Income, net | Other Income, net Other income, net consists of the following: Three months ended March 31, 2017 2016 Interest and dividend income $ 672 $ 479 Gain on mutual fund investments 1,783 1,743 Change in fair value of earn-out consideration — 250 Other, net 855 707 Other income, net $ 3,310 $ 3,179 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, Plant and Equipment consist of the following: Estimated useful lives As of (Years) March 31, 2017 December 31, 2016 Owned Assets: Network equipment, computers and software 3-5 $ 124,938 $ 109,998 Leasehold improvements 3-8 33,038 31,192 Office furniture and equipment 3-8 16,162 15,426 Motor vehicles 2-5 602 580 Buildings 30 1,226 1,171 Land — 802 766 Capital work in progress — 7,474 4,964 184,242 164,097 Less: Accumulated depreciation and amortization (125,488 ) (115,568 ) $ 58,754 $ 48,529 Assets under capital leases: Leasehold improvements 940 854 Office furniture and equipment 193 133 Motor vehicles 797 810 1,930 1,797 Less: Accumulated depreciation and amortization (1,464 ) (1,297 ) $ 466 $ 500 Property, Plant and Equipment, net $ 59,220 $ 49,029 Depreciation and amortization expense excluding amortization of acquisition-related intangibles for the three months ended March 31, 2017 and 2016 was $5,928 , and $5,418 , respectively. T he software development costs, both as of March 31, 2017 and December 31, 2016, were $2,242 and is included under Network equipment, computers and software. Accumulated amortization expense for these capitalized software development costs as of March 31, 2017 and December 31, 2016 were $485 and $336 , 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. |
Business Combinations, Goodwill
Business Combinations, Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combination, Goodwill and Intangible Assets | Goodwill and Intangible Assets Business Combination Datasource Consulting, LLC. On October 22, 2016, the Company entered into a membership interests purchase agreement (the “Datasource Agreement”) for the purchase of Datasource Consulting, LLC (“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. During the three months ended March 31, 2017, the Company finalized its purchase price allocation for the acquisition 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. Goodwill The following table sets forth details of the Company’s goodwill balance as of March 31, 2017 : Insurance Healthcare TT&L F&A All Other Analytics Total Balance as at January 1, 2016 $ 35,824 $ 19,276 $ 13,278 $ 47,891 $ 5,326 $ 49,940 $ 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 $ 5,326 $ 63,538 $ 186,770 Acquisitions — — — — — — — Currency translation adjustments 37 — 520 625 — — 1,182 Balance as at March 31, 2017 $ 38,147 $ 19,276 $ 13,503 $ 48,162 $ 5,326 $ 63,538 $ 187,952 Intangible Assets Information regarding the Company’s intangible assets is set forth below: As of March 31, 2017 Gross Accumulated Net Carrying Finite-lived intangible assets: Customer relationships $ 75,249 $ (35,647 ) $ 39,602 Leasehold benefits 2,845 (2,405 ) 440 Developed technology 14,209 (7,034 ) 7,175 Non-compete agreements 2,045 (1,653 ) 392 Trade names and trademarks 5,363 (3,516 ) 1,847 $ 99,711 $ (50,255 ) $ 49,456 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 100,611 $ (50,255 ) $ 50,356 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 Amortization expense for the three months ended March 31, 2017 and 2016 was $3,498 and $2,715 , respectively. The remaining weighted average life of intangible assets was 5.7 years for customer relationships, 2.2 years for leasehold benefits, 4.7 years for developed technology, 2.3 years for non-compete agreements and 5.3 years for trade names and trademarks excluding indefinite life trade names and trademarks. Estimated amortization of intangible assets during the year ending March 31, 2018 $ 13,576 2019 12,046 2020 9,870 2021 3,328 2022 and thereafter 10,636 Total $ 49,456 |
Other current assets
Other current assets | 3 Months Ended |
Mar. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Other current assets Other current assets consists of the following: As of March 31, 2017 December 31, 2016 Derivative instruments $ 7,363 $ 3,324 Advances to suppliers 2,516 1,091 Receivables from statutory authorities 13,927 11,870 Others 1,735 4,883 Other current assets $ 25,541 $ 21,168 |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities Accrued expenses and other current liabilities consists of the following: As of March 31, 2017 December 31, 2016 Accrued expenses $ 33,810 $ 30,690 Derivative instruments 1,368 1,430 Client liability account 2,783 4,005 Other current liabilities 9,709 7,139 Accrued expenses and other current liabilities $ 47,670 $ 43,264 |
Non-current liabilities
Non-current liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Liabilities, Noncurrent [Abstract] | |
Non-current liabilities | Non-current liabilities Non-current liabilities consists of the following: As of March 31, 2017 December 31, 2016 Derivative instruments $ 696 $ 828 Unrecognized tax benefits 3,832 3,640 Deferred rent 7,591 7,237 Retirement benefits 2,141 1,977 Other non-current liabilities 3,469 1,137 Non-current liabilities $ 17,729 $ 14,819 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
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 topic 815 “Derivatives and Hedging” (“ASC No. 815”) . Changes in the fair values of contracts that are deemed effective are recorded as a component of accumulated other comprehensive loss until the settlement of those contracts. The balances as of March 31, 2017 and December 31, 2016 are as follows: As of March 31, 2017 December 31, 2016 Cumulative currency translation adjustments $ (65,656 ) $ (77,299 ) Unrealized gain on cash flow hedges, net of taxes of $2,967 and $1,207 9,079 2,740 Retirement benefits, net of taxes of ($335) and ($342) (436 ) (498 ) Accumulated other comprehensive loss $ (57,013 ) $ (75,057 ) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value The following table sets forth the Company’s assets and liabilities that were accounted for at fair value as of March 31, 2017 and December 31, 2016 . The table excludes accounts receivable, accounts payable and accrued expenses for which fair values approximate their carrying amounts. As of March 31, 2017 Level 1 Level 2 Level 3 Total Assets Money market and mutual funds* $ 117,084 $ — $ — $ 117,084 Derivative financial instruments — 14,167 — 14,167 Total $ 117,084 $ 14,167 $ — $ 131,251 Liabilities Derivative financial instruments $ — $ 2,064 $ — $ 2,064 Total $ — $ 2,064 $ — $ 2,064 As of December 31, 2016 Level 1 Level 2 Level 3 Total Assets Money market and mutual funds $ — $ — $ — $ — Derivative financial instruments — 6,318 — 6,318 Total $ — $ 6,318 $ — $ 6,318 Liabilities Derivative financial instruments $ — $ 2,258 $ — $ 2,258 Total $ — $ 2,258 $ — $ 2,258 * Represents short-term investments carried on fair value option under ASC 825 "Financial Instruments" as of March 31, 2017. 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 13 to our unaudited consolidated financial statements contained herein for further details on Derivatives and Hedge Accounting. |
Derivatives and Hedge Accountin
Derivatives and Hedge Accounting | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedge Accounting | Derivatives and Hedge Accounting The Company uses derivative instruments and hedging transactions to mitigate exposure to foreign currency fluctuation risks associated with forecasted transactions denominated in certain foreign currencies and to minimize earnings and cash flow volatility associated with changes in foreign currency exchange rates. The Company’s derivative financial instruments are largely foreign exchange forward contracts that are designated effective and that qualify as cash flow hedges under ASC 815. The Company had outstanding cash flow hedges totaling $240,655 as of March 31, 2017 and $218,545 as of December 31, 2016. The fair value of these cash flow hedges is included in the other comprehensive loss on the Company's unaudited consolidated balance sheet. The Company also enters into foreign currency forward contracts to economically hedge its intercompany balances and other monetary assets and liabilities denominated in currencies other than functional currencies. These derivatives do not qualify as fair value hedges under ASC 815. Changes in the fair value of these derivatives are recognized in the unaudited 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 $91,067 and GBP 8,264 as of March 31, 2017 and amounted to $71,318 and GBP 11,153 as of December 31, 2016. The Company estimates that approximately $5,938 of net derivative gains included in accumulated other comprehensive loss (“AOCL”) could be reclassified into earnings within the next twelve months based on exchange rates prevailing as of March 31, 2017 . At March 31, 2017 , the maximum outstanding term of the cash flow hedges was 45 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 unaudited consolidated statements of income and is included in foreign exchange gain/(loss). For hedging positions that are discontinued because the forecasted transaction is not expected to occur by the end of the originally specified period, any related derivative amounts recorded in equity are reclassified to earnings. There were no such significant amounts of gains or losses that were reclassified from AOCL into earnings during the three months ended March 31, 2017 and 2016 . The following tables set forth the fair value of the foreign currency exchange contracts and their location on the unaudited consolidated financial statements: Derivatives designated as hedging instruments: As of March 31, 2017 December 31, 2016 Other current assets: Foreign currency exchange contracts $ 7,306 $ 3,211 Other assets: Foreign currency exchange contracts $ 6,804 $ 2,994 Accrued expenses and other current liabilities: Foreign currency exchange contracts $ 1,368 $ 1,430 Non-current liabilities: Foreign currency exchange contracts $ 696 $ 828 Derivatives not designated as hedging instruments: As of March 31, 2017 December 31, 2016 Other current assets: Foreign currency exchange contracts $ 57 $ 113 The following tables set forth the effect of foreign currency exchange contracts on the unaudited consolidated statements of income for the three months ended March 31, 2017 and 2016 : Three months ended March 31, 2017 2016 Derivatives in Cash flow hedging relationship Gain/(loss) recognized in AOCL on derivative - Effective portion $ 8,723 $ 2,437 Gain/(loss) reclassified from AOCL to foreign exchange gain/(loss) - Effective portion $ 624 $ 57 Gain/(loss) recognized in foreign exchange gain/(loss) - Ineffective portion $ — $ — Derivatives not designated as hedging instruments Gain/(loss) recognized in foreign exchange gain/(loss) $ 2,622 $ 1,729 |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The Company has a revolving credit facility (the “Credit Facility”), including a letter of credit sub-facility, in the amount of $100,000 . The Credit Facility has a maturity date of October 24, 2019 and is voluntarily pre-payable from time to time without premium or penalty. Borrowings under the Credit Facility may be used for working capital, general corporate purposes and for acquisitions. The amount outstanding as of March 31, 2017 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 unaudited consolidated balance sheets. The Credit Facility carried an effective interest rate of 2.50% per annum and 1.90% per annum, during the three months ended March 31, 2017 and 2016, respectively. In connection with the financing, the Company incurred certain debt issuance costs, which are deferred and amortized as an adjustment to interest expense over the term of the Credit Facility. The unamortized debt issuance costs as of March 31, 2017 and December 31, 2016 was $248 and $272 , respectively, and is included under "other current assets" and "other assets" in the unaudited 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. As of March 31, 2017, the Company was in compliance with the financial covenants listed above. |
Capital Structure
Capital Structure | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Capital Structure | Capital Structure Common Stock The Company has one class of common stock outstanding. During the three months ended March 31, 2017 and 2016 , the Company acquired 62,784 and 14,548 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 $2,913 and $652 , respectively. The weighted average purchase price per share of $46.39 and $44.83 , 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 a common stock repurchase program (the “2014 Repurchase Program”), under which shares were authorized to be purchased by the Company from time to time from the open market and through private transactions during each of the fiscal years 2015 through 2017 up to an annual amount of $20,000 . On February 28, 2017, the Company’s Board of Directors authorized an additional common stock repurchase program (the “2017 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 2017 through 2019 up to an aggregate amount of $100,000 . The approval increases the 2017 authorization from $20,000 to $40,000 and authorizes stock repurchases of up to $40,000 in each of 2018 and 2019. During the three months ended March 31, 2017 and 2016, the Company purchased 193,962 and 138,638 shares of its common stock, respectively, for an aggregate purchase price of approximately $9,000 and $6,202 , respectively, including commissions, representing an average purchase price per share of $46.40 and $44.74 , respectively, under the 2014 and 2017 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 | 3 Months Ended |
Mar. 31, 2017 | |
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. Net gratuity cost includes the following components: Three months ended March 31, 2017 2016 Service cost $ 484 $ 400 Interest cost 162 149 Expected return on plan assets (107 ) (104 ) Amortization of Actuarial loss 69 22 Net gratuity cost $ 608 $ 467 The 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. The Company earned a return of approximately 8.0% on these Gratuity Plans for the period ended March 31, 2017. Change in Plan Assets Plan assets at January 1, 2017 $ 5,640 Actual return 88 Benefits paid (194 ) Effect of exchange rate changes 266 Plan assets at March 31, 2017 $ 5,800 The Company maintains several 401(k) Plans 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 4% of employee compensation within certain limits. Contributions to the 401(k) Plans amounting to $1,068 and $932 were made during the three months ended March 31, 2017 and 2016, respectively. During the three months ended March 31, 2017 and 2016 , the Company contributed $1,713 and $1,466 , 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 | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 are as follows: Year ending March 31, 2018 $ 269 2019 174 2020 114 2021 43 Total minimum lease payments 600 Less: amount representing interest 99 Present value of minimum lease payments 501 Less: current portion 216 Long term capital lease obligation $ 285 The Company conducts its operations using facilities leased under non-cancelable operating lease agreements that expire at various dates. Future minimum lease payments under non-cancelable agreements expiring after March 31, 2017 are set forth below: Year ending March 31, 2018 $ 10,218 2019 8,853 2020 5,628 2021 3,743 2022 1,540 2023 and thereafter 915 $ 30,897 The operating leases are subject to renewal periodically and have scheduled rent increases. The Company recognizes rent on such leases on a straight-line basis over the non-cancelable lease period determined under ASC topic 840, “Leases”. Rent expense under both cancelable and non-cancelable operating leases was $5,667 and $5,148 for the three months ended March 31, 2017 and 2016 , respectively. Deferred rent as of March 31, 2017 and December 31, 2016 was $8,441 and $7,915 , respectively, and is included under “Accrued expenses and other current liabilities” and “Non-current liabilities” in the unaudited consolidated balance sheets. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company determines the tax provision for interim periods using an estimate of its annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates its estimate of annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment. The Company recorded income tax expense of $3,560 and $5,895 for the three months ended March 31, 2017 and 2016, respectively. The effective tax rate decreased from 29.9% during the three months ended March 31, 2016 to 17.5% (including the impact of a discrete item of $2,057 recognized on adoption of ASU No. 2016-09) during the three months ended March 31, 2017. Other than the impact of the adoption of the accounting standard mentioned above, the decrease is primarily due to higher earnings from our foreign subsidiaries and lower domestic profit in the U.S. The following table summarizes the activity related to the gross unrecognized tax benefits from January 1, 2017 through March 31, 2017 : Balance as of January 1, 2017 $ 3,087 Increases related to prior year tax positions — Decreases related to prior year tax positions — Increases related to current year tax positions — Decreases related to current year tax positions — Effect of exchange rate changes 78 Balance as of March 31, 2017 $ 3,165 The unrecognized tax benefits as of March 31, 2017 of $3,165 , if recognized, would impact the effective tax rate. During the three months ended March 31, 2017 and 2016, the Company has recognized interest of $51 and $50 , respectively, which are included in the income tax expense in the unaudited consolidated statements of income. As of March 31, 2017 and December 31, 2016, the Company has accrued interest and penalties of $1,667 and $1,553 , relating to unrecognized tax benefits. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock-Based Compensation The following costs related to the Company’s stock-based compensation plan are included in the unaudited consolidated statements of income: Three months ended March 31, 2017 2016 Cost of revenue $ 1,210 $ 1,265 General and administrative expenses 2,596 2,372 Selling and marketing expenses 2,150 2,172 Total $ 5,956 $ 5,809 As of March 31, 2017 , the Company had 1,414,544 shares available for grant under the 2015 Amendment and Restatement of the 2006 Omnibus Award Plan. Stock Options Stock option activity under the Company’s stock plans is shown below: Number of Weighted- Aggregate Weighted- Outstanding at December 31, 2016 811,902 $ 16.31 $ 27,718 2.96 Granted — — Exercised (7,970 ) 23.99 Forfeited — — Outstanding at March 31, 2017 803,932 $ 16.23 $ 25,031 2.70 Vested and exercisable at March 31, 2017 803,932 $ 16.23 $ 25,031 2.70 The unrecognized compensation cost for outstanding options as of March 31, 2017 is nil . The Company did no t grant any options during the three months ended March 31, 2017 and 2016. The total grant date fair value of options vested during the three months ended March 31, 2017 and 2016 was nil and $706 , respectively. Restricted Stock and Restricted Stock Units Restricted stock and restricted stock unit activity under the Company’s stock plans is shown below: Restricted Stock Restricted Stock Units Number Weighted- Average Intrinsic Value Number Weighted- Average Intrinsic Value Outstanding at December 31, 2016* 246,940 $ 42.42 1,256,288 $ 37.38 Granted — — 372,019 47.71 Vested (24,426 ) 35.91 (371,374 ) 34.56 Forfeited — — (13,890 ) 41.66 Outstanding at March 31, 2017* 222,514 $ 43.13 1,243,043 $ 41.27 * As of March 31, 2017 and December 31, 2016 restricted stock units vested for which the underlying common stock is yet to be issued are 138,328 and 135,054 , respectively. As of March 31, 2017 , unrecognized compensation cost of $50,650 is expected to be expensed over a weighted average period of 3.07 years. Performance Based Stock Awards Performance restricted stock unit (the "PRSUs") 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, 2016 115,174 $ 41.70 215,171 $ 47.42 Granted 61,123 47.73 61,111 54.10 Vested — — — — Forfeited — — — — Outstanding at March 31, 2017 176,297 $ 43.79 276,282 $ 48.90 As of March 31, 2017 , unrecognized compensation cost of $12,365 is expected to be expensed over a weighted average period of 2.13 years. |
Related Party Disclosures
Related Party Disclosures | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Disclosures The Company provides consulting services to PharmaCord, LLC. One of the Company’s directors, Nitin Sahney, is the member-manager and chief executive officer of PharmaCord, LLC. The Company recognized revenue of approximately $477 and nil in the three months ended March 31, 2017 and March 31, 2016, respectively, for fees and expense reimbursements from PharmaCord, LLC. At March 31, 2017 and December 31, 2016, the Company had an account receivable of $295 and nil , respectively, related to these services. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Fixed Asset Commitments At March 31, 2017 , the Company has committed to spend approximately $13,534 under agreements to purchase fixed assets. This amount is net of capital advances paid in respect of these purchases. Other Commitments Certain units of the Company’s Indian subsidiaries were established as 100% Export-Oriented units or under the Software Technology Parks of India (“STPI”) scheme promulgated by the Government of India. These units are exempt from customs, central excise duties, and levies on imported and indigenous capital goods, stores, and spares. The Company has undertaken to pay custom duties, service taxes, levies, and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores and spares consumed duty free, in the event that certain terms and conditions are not fulfilled. The Company’s management believes, however, that these units have in the past satisfied and will continue to satisfy the required conditions. The Company’s operations centers in the Philippines are registered with the Philippine Economic Zone Authority (“PEZA”). The registration provides the Company with certain fiscal incentives on the import of capital goods and requires ExlService Philippines, Inc. to meet certain performance and investment criteria. The Company’s management believes that these centers have in the past satisfied and will continue to satisfy the required criteria. Contingencies U.S. and Indian transfer pricing regulations require that any international transaction involving associated enterprises be at an arm’s-length price. Accordingly, the Company determines the appropriate pricing for the international transactions among its associated enterprises on the basis of a detailed functional and economic analysis involving benchmarking against transactions among entities that are not under common control. The tax authorities have jurisdiction to review this arrangement and in the event that they determine that the transfer price applied was not appropriate, the Company may incur increased tax liability, including accrued interest and penalties. The Company is currently involved in disputes with the Indian tax authorities over the application of some of its transfer pricing policies for some of its subsidiaries. Further, the Company and a U.S. subsidiary are engaged in tax litigation with the income-tax authorities in India on the issue of permanent establishment. The aggregate disputed amount demanded by Indian tax authorities from the Company related to its transfer pricing issues for years ranging from tax years 2003 to 2014 and its permanent establishment issues ranging from tax years 2003 to 2007 as of March 31, 2017 and December 31, 2016 is $17,906 and $17,963 , respectively, of which the Company has made payments or provided bank guarantee to the extent $8,512 and $8,640 , respectively. Amounts paid as deposits in respect of such assessments aggregating to $6,469 and $6,690 as of March 31, 2017 and December 31, 2016 , respectively, are included in “Other assets” and amounts deposited for bank guarantees aggregating to $2,043 and $1,950 as of March 31, 2017 and December 31, 2016 , respectively, are included in “Restricted cash” in the non-current assets section of the Company’s consolidated balance sheets as of March 31, 2017 and December 31, 2016 . 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 Accoun29
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Preparation | Basis of Preparation and Principles of Consolidation The unaudited interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for annual financial statements and therefore should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016. The unaudited interim consolidated financial statements reflect all adjustments (of a normal and recurring nature) that management considers necessary for a fair presentation of such statements for the interim periods presented. The unaudited consolidated statements of income for the interim periods presented are not necessarily indicative of the results for the full year or for any subsequent period. The accompanying unaudited consolidated financial statements include the financial statements of ExlService Holdings and all of its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Non-controlling interest is the equity in a subsidiary not attributable, directly or indirectly, to the parent and it represents the minority partner’s interest in the operations of ExlService Colombia S.A.S. 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 all the periods presented were insignificant and are included under general and administrative expenses in the unaudited consolidated statements of income. |
Principles of Consolidation | Basis of Preparation and Principles of Consolidation The unaudited interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for annual financial statements and therefore should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016. The unaudited interim consolidated financial statements reflect all adjustments (of a normal and recurring nature) that management considers necessary for a fair presentation of such statements for the interim periods presented. The unaudited consolidated statements of income for the interim periods presented are not necessarily indicative of the results for the full year or for any subsequent period. The accompanying unaudited consolidated financial statements include the financial statements of ExlService Holdings and all of its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Non-controlling interest is the equity in a subsidiary not attributable, directly or indirectly, to the parent and it represents the minority partner’s interest in the operations of ExlService Colombia S.A.S. 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 all the periods presented were insignificant and are included under general and administrative expenses in the unaudited consolidated statements of income. |
Use of Estimates | Use of Estimates The preparation of the unaudited consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the unaudited consolidated statements of income during the reporting period. 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. |
Recent Accounting Pronouncements | Share-Based Compensation 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 adopted this ASU effective January 1, 2017. The following summarizes the effects of the adoption on the Company's unaudited consolidated financial statements: Income taxes - Upon adoption of this standard, all excess tax benefits and tax deficiencies are recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. The Company also recognizes excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. As a result, the Company recognized discrete adjustments to income tax expense for the three months ended March 31, 2017, in the amount of $2,057 , related to excess tax benefits. No adjustment is recorded for any windfall benefits previously recorded in APIC. Forfeitures - Prior to adoption, share-based compensation expense was recognized on a straight line basis, net of estimated forfeitures, such that expense was recognized only for share-based awards that are expected to vest. A forfeiture rate was estimated annually and revised, if necessary, in subsequent periods if actual forfeitures differed from initial estimates. Upon adoption, the Company will no longer apply a forfeiture rate and instead will account for forfeitures as they occur. The Company has applied the modified retrospective adoption approach as of January 1, 2017 and has recognized a cumulative-effect adjustment to reduce additional paid-in-capital of $5,999 and retained earnings of $4,546 (net of deferred tax effect of $1,453 ). Statements of Cash Flows - The Company historically accounted for excess tax benefits on the Statement of Cash Flows as a financing activity. Upon adoption of this standard, excess tax benefits are classified along with other income tax cash flows as an operating activity. The Company has elected to adopt this portion of the standard on a prospective basis beginning in 2017 and accordingly prior periods have not been adjusted. Earnings Per Share - The Company uses the treasury stock method to compute diluted earnings per share, unless the effect would be anti-dilutive. The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of diluted earnings per share. Upon adoption, no other aspects of ASU 2016-09 had an effect on the Company's unaudited consolidated financial statements or related footnote disclosures. (d) Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 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 2014-09 is effective for the Company in the first quarter of fiscal 2018 using either one of two methods: (i) retrospectively to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. The Company is 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 the contractual arrangements and the mix of business. Upon adoption, we expect there to be a change in the manner that variable consideration in certain 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 it recognizes 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 its contractual arrangements. The Company's considerations include, but are not limited to, the comparability of its financial statements and the comparability within its industry from application of the new standard to its contractual arrangements. The Company plans 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 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). ASU 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 2016-02, Leases (Topic 842). ASU 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 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 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU 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 June 2016, FASB issued ASU 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 2016-13 is not expected to have a material effect on its consolidated financial statements. In August 2016, FASB issued ASU 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 15, 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 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 15, 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. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (Topic 350), which eliminates Step 2 from the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for annual and interim periods in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed after January 1, 2017 and should be applied prospectively. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements. In March, 2017, FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost. The ASU amends ASC 715, Compensation — Retirement Benefits, to require employers that present a measure of operating income in their statement of income to include only the service cost component of net periodic pension cost and net periodic post-retirement benefit cost in operating expenses (together with other employee compensation costs). The other components of net benefit cost, including amortization of prior service cost/credit, and settlement and curtailment effects, are to be included in non-operating expenses. The update also stipulates that only the service cost component of net benefit cost is eligible for capitalization. The amendments are effective for fiscal years beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted as of the beginning of an annual period. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. |
Segment and Geographical Info30
Segment and Geographical Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Revenues and Cost of Revenues for Company's Reportable Segments | Revenues and cost of revenues for the three months ended March 31, 2017 and 2016, respectively, for each of the reportable segments, are as follows: Three months ended March 31, 2017 Insurance Healthcare TT&L F&A All Other Analytics Total Revenues, net $ 55,921 $ 18,932 $ 17,043 $ 21,014 $ 21,116 $ 49,007 $ 183,033 Cost of revenues (exclusive of depreciation and amortization) 38,329 12,186 10,224 12,898 14,444 32,038 120,119 Gross profit $ 17,592 $ 6,746 $ 6,819 $ 8,116 $ 6,672 $ 16,969 $ 62,914 Operating expenses 47,012 Foreign exchange gain, interest expense and other income, net 4,446 Income tax expense 3,560 Net income $ 16,788 Three months ended March 31, 2016 Insurance Healthcare TT&L F&A All Other Analytics Total Revenues, net $ 48,299 $ 16,388 $ 17,559 $ 19,818 $ 26,006 $ 38,966 $ 167,036 Cost of revenues (exclusive of depreciation and amortization) 34,269 10,545 10,463 11,444 16,887 24,771 108,379 Gross profit $ 14,030 $ 5,843 $ 7,096 $ 8,374 $ 9,119 $ 14,195 $ 58,657 Operating expenses 42,205 Foreign exchange gain, interest expense and other income, net 3,263 Income tax expense 5,895 Net income $ 13,820 Net revenues of the Company by service type, were as follows: Three months ended March 31, 2017 2016 BPM and related services (1) $ 134,026 $ 128,070 Analytics services 49,007 38,966 Total $ 183,033 $ 167,036 (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. Three months ended March 31, 2017 2016 Revenues, net United States $ 150,281 $ 134,074 Non-United States United Kingdom 26,082 27,428 Rest of World 6,670 5,534 Total Non-United States 32,752 32,962 $ 183,033 $ 167,036 |
Property, Plant and Equipment based on Geographical Information | Property, plant and equipment by geographic area, were as follows: As of March 31, 2017 December 31, 2016 Property, plant and equipment, net India $ 33,909 $ 23,362 United States 11,919 10,809 Philippines 10,521 11,900 Rest of World 2,871 2,958 $ 59,220 $ 49,029 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share: Three months ended March 31, 2017 2016 Numerators: Net income $ 16,788 $ 13,820 Denominators: Basic weighted average common shares outstanding 33,845,560 33,380,028 Dilutive effect of share based awards 1,263,322 971,629 Diluted weighted average common shares outstanding 35,108,882 34,351,657 Earnings per share: Basic $ 0.50 $ 0.41 Diluted $ 0.48 $ 0.40 Weighted average common shares considered anti-dilutive in computing diluted earnings per share 452,988 200,752 |
Other Income, net (Tables)
Other Income, net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Summary of Other Income, net | Other income, net consists of the following: Three months ended March 31, 2017 2016 Interest and dividend income $ 672 $ 479 Gain on mutual fund investments 1,783 1,743 Change in fair value of earn-out consideration — 250 Other, net 855 707 Other income, net $ 3,310 $ 3,179 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, Plant and Equipment consist of the following: Estimated useful lives As of (Years) March 31, 2017 December 31, 2016 Owned Assets: Network equipment, computers and software 3-5 $ 124,938 $ 109,998 Leasehold improvements 3-8 33,038 31,192 Office furniture and equipment 3-8 16,162 15,426 Motor vehicles 2-5 602 580 Buildings 30 1,226 1,171 Land — 802 766 Capital work in progress — 7,474 4,964 184,242 164,097 Less: Accumulated depreciation and amortization (125,488 ) (115,568 ) $ 58,754 $ 48,529 Assets under capital leases: Leasehold improvements 940 854 Office furniture and equipment 193 133 Motor vehicles 797 810 1,930 1,797 Less: Accumulated depreciation and amortization (1,464 ) (1,297 ) $ 466 $ 500 Property, Plant and Equipment, net $ 59,220 $ 49,029 |
Business Combinations, Goodwi34
Business Combinations, Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Summary of Purchase Price Allocation for Acquisition | During the three months ended March 31, 2017, the Company finalized its purchase price allocation for the acquisition 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 |
Summary of Company's Goodwill | The following table sets forth details of the Company’s goodwill balance as of March 31, 2017 : Insurance Healthcare TT&L F&A All Other Analytics Total Balance as at January 1, 2016 $ 35,824 $ 19,276 $ 13,278 $ 47,891 $ 5,326 $ 49,940 $ 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 $ 5,326 $ 63,538 $ 186,770 Acquisitions — — — — — — — Currency translation adjustments 37 — 520 625 — — 1,182 Balance as at March 31, 2017 $ 38,147 $ 19,276 $ 13,503 $ 48,162 $ 5,326 $ 63,538 $ 187,952 |
Summary of Company's Intangible Assets | Information regarding the Company’s intangible assets is set forth below: As of March 31, 2017 Gross Accumulated Net Carrying Finite-lived intangible assets: Customer relationships $ 75,249 $ (35,647 ) $ 39,602 Leasehold benefits 2,845 (2,405 ) 440 Developed technology 14,209 (7,034 ) 7,175 Non-compete agreements 2,045 (1,653 ) 392 Trade names and trademarks 5,363 (3,516 ) 1,847 $ 99,711 $ (50,255 ) $ 49,456 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 100,611 $ (50,255 ) $ 50,356 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 |
Estimated Amortization of Intangible Assets | Estimated amortization of intangible assets during the year ending March 31, 2018 $ 13,576 2019 12,046 2020 9,870 2021 3,328 2022 and thereafter 10,636 Total $ 49,456 |
Other current assets (Tables)
Other current assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other current assets consists of the following: As of March 31, 2017 December 31, 2016 Derivative instruments $ 7,363 $ 3,324 Advances to suppliers 2,516 1,091 Receivables from statutory authorities 13,927 11,870 Others 1,735 4,883 Other current assets $ 25,541 $ 21,168 |
Accrued expenses and other cu36
Accrued expenses and other current liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consists of the following: As of March 31, 2017 December 31, 2016 Accrued expenses $ 33,810 $ 30,690 Derivative instruments 1,368 1,430 Client liability account 2,783 4,005 Other current liabilities 9,709 7,139 Accrued expenses and other current liabilities $ 47,670 $ 43,264 |
Non-current liabilities (Tables
Non-current liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Liabilities, Noncurrent [Abstract] | |
Summary of Non-Current Liabilities | Non-current liabilities consists of the following: As of March 31, 2017 December 31, 2016 Derivative instruments $ 696 $ 828 Unrecognized tax benefits 3,832 3,640 Deferred rent 7,591 7,237 Retirement benefits 2,141 1,977 Other non-current liabilities 3,469 1,137 Non-current liabilities $ 17,729 $ 14,819 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The balances as of March 31, 2017 and December 31, 2016 are as follows: As of March 31, 2017 December 31, 2016 Cumulative currency translation adjustments $ (65,656 ) $ (77,299 ) Unrealized gain on cash flow hedges, net of taxes of $2,967 and $1,207 9,079 2,740 Retirement benefits, net of taxes of ($335) and ($342) (436 ) (498 ) Accumulated other comprehensive loss $ (57,013 ) $ (75,057 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value | The following table sets forth the Company’s assets and liabilities that were accounted for at fair value as of March 31, 2017 and December 31, 2016 . The table excludes accounts receivable, accounts payable and accrued expenses for which fair values approximate their carrying amounts. As of March 31, 2017 Level 1 Level 2 Level 3 Total Assets Money market and mutual funds* $ 117,084 $ — $ — $ 117,084 Derivative financial instruments — 14,167 — 14,167 Total $ 117,084 $ 14,167 $ — $ 131,251 Liabilities Derivative financial instruments $ — $ 2,064 $ — $ 2,064 Total $ — $ 2,064 $ — $ 2,064 As of December 31, 2016 Level 1 Level 2 Level 3 Total Assets Money market and mutual funds $ — $ — $ — $ — Derivative financial instruments — 6,318 — 6,318 Total $ — $ 6,318 $ — $ 6,318 Liabilities Derivative financial instruments $ — $ 2,258 $ — $ 2,258 Total $ — $ 2,258 $ — $ 2,258 * Represents short-term investments carried on fair value option under ASC 825 "Financial Instruments" as of March 31, 2017. |
Derivatives and Hedge Account40
Derivatives and Hedge Accounting (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Foreign Currency Exchange Contracts | The following tables set forth the fair value of the foreign currency exchange contracts and their location on the unaudited consolidated financial statements: Derivatives designated as hedging instruments: As of March 31, 2017 December 31, 2016 Other current assets: Foreign currency exchange contracts $ 7,306 $ 3,211 Other assets: Foreign currency exchange contracts $ 6,804 $ 2,994 Accrued expenses and other current liabilities: Foreign currency exchange contracts $ 1,368 $ 1,430 Non-current liabilities: Foreign currency exchange contracts $ 696 $ 828 Derivatives not designated as hedging instruments: As of March 31, 2017 December 31, 2016 Other current assets: Foreign currency exchange contracts $ 57 $ 113 |
Summary of Effect of Foreign Currency Exchange Contracts on Consolidated Statements of Income | The following tables set forth the effect of foreign currency exchange contracts on the unaudited consolidated statements of income for the three months ended March 31, 2017 and 2016 : Three months ended March 31, 2017 2016 Derivatives in Cash flow hedging relationship Gain/(loss) recognized in AOCL on derivative - Effective portion $ 8,723 $ 2,437 Gain/(loss) reclassified from AOCL to foreign exchange gain/(loss) - Effective portion $ 624 $ 57 Gain/(loss) recognized in foreign exchange gain/(loss) - Ineffective portion $ — $ — Derivatives not designated as hedging instruments Gain/(loss) recognized in foreign exchange gain/(loss) $ 2,622 $ 1,729 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Net Gratuity Cost | Net gratuity cost includes the following components: Three months ended March 31, 2017 2016 Service cost $ 484 $ 400 Interest cost 162 149 Expected return on plan assets (107 ) (104 ) Amortization of Actuarial loss 69 22 Net gratuity cost $ 608 $ 467 |
Change in Plan Assets | Change in Plan Assets Plan assets at January 1, 2017 $ 5,640 Actual return 88 Benefits paid (194 ) Effect of exchange rate changes 266 Plan assets at March 31, 2017 $ 5,800 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Leases [Abstract] | |
Future Minimum Lease Payments under Capital Leases | Future minimum lease payments under these capital leases as of March 31, 2017 are as follows: Year ending March 31, 2018 $ 269 2019 174 2020 114 2021 43 Total minimum lease payments 600 Less: amount representing interest 99 Present value of minimum lease payments 501 Less: current portion 216 Long term capital lease obligation $ 285 |
Future Minimum Lease Payments under Non-Cancelable Operating Lease Agreements | Future minimum lease payments under non-cancelable agreements expiring after March 31, 2017 are set forth below: Year ending March 31, 2018 $ 10,218 2019 8,853 2020 5,628 2021 3,743 2022 1,540 2023 and thereafter 915 $ 30,897 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Activity Related to Gross Unrecognized Tax Benefits | The following table summarizes the activity related to the gross unrecognized tax benefits from January 1, 2017 through March 31, 2017 : Balance as of January 1, 2017 $ 3,087 Increases related to prior year tax positions — Decreases related to prior year tax positions — Increases related to current year tax positions — Decreases related to current year tax positions — Effect of exchange rate changes 78 Balance as of March 31, 2017 $ 3,165 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Costs Related to Company's Stock-Based Compensation Plan | The following costs related to the Company’s stock-based compensation plan are included in the unaudited consolidated statements of income: Three months ended March 31, 2017 2016 Cost of revenue $ 1,210 $ 1,265 General and administrative expenses 2,596 2,372 Selling and marketing expenses 2,150 2,172 Total $ 5,956 $ 5,809 |
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, 2016 811,902 $ 16.31 $ 27,718 2.96 Granted — — Exercised (7,970 ) 23.99 Forfeited — — Outstanding at March 31, 2017 803,932 $ 16.23 $ 25,031 2.70 Vested and exercisable at March 31, 2017 803,932 $ 16.23 $ 25,031 2.70 |
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, 2016* 246,940 $ 42.42 1,256,288 $ 37.38 Granted — — 372,019 47.71 Vested (24,426 ) 35.91 (371,374 ) 34.56 Forfeited — — (13,890 ) 41.66 Outstanding at March 31, 2017* 222,514 $ 43.13 1,243,043 $ 41.27 * As of March 31, 2017 and December 31, 2016 restricted stock units vested for which the underlying common stock is yet to be issued are 138,328 and 135,054 , respectively. |
Performance Based Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Stock Activity Under Company's Stock Plans | Performance restricted stock unit (the "PRSUs") 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, 2016 115,174 $ 41.70 215,171 $ 47.42 Granted 61,123 47.73 61,111 54.10 Vested — — — — Forfeited — — — — Outstanding at March 31, 2017 176,297 $ 43.79 276,282 $ 48.90 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Employee service share-based compensation, tax benefit realized from exercise of stock options | $ 2,057 | |
Accounting Standards Update 2016-09 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred tax effect | $ 1,453 | |
Accounting Standards Update 2016-09 | Additional Paid-in Capital | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect adjustment | 5,999 | |
Accounting Standards Update 2016-09 | Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect adjustment | $ 4,546 |
Segment and Geographical Info46
Segment and Geographical Information - Additional Information (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017operating_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 and Geographical Info47
Segment and Geographical Information - Revenues and Cost of Revenues for Company's Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||
Revenues, net | $ 183,033 | $ 167,036 |
Cost of revenues (exclusive of depreciation and amortization) | 120,119 | 108,379 |
Gross profit | 62,914 | 58,657 |
Operating expenses | 47,012 | 42,205 |
Foreign exchange gain, interest expense and other income, net | 4,446 | 3,263 |
Income tax expense | 3,560 | 5,895 |
Net income | 16,788 | 13,820 |
Insurance | ||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||
Revenues, net | 55,921 | 48,299 |
Cost of revenues (exclusive of depreciation and amortization) | 38,329 | 34,269 |
Gross profit | 17,592 | 14,030 |
Healthcare | ||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||
Revenues, net | 18,932 | 16,388 |
Cost of revenues (exclusive of depreciation and amortization) | 12,186 | 10,545 |
Gross profit | 6,746 | 5,843 |
Travel, Transportation and Logistics | ||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||
Revenues, net | 17,043 | 17,559 |
Cost of revenues (exclusive of depreciation and amortization) | 10,224 | 10,463 |
Gross profit | 6,819 | 7,096 |
Finance and Accounting | ||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||
Revenues, net | 21,014 | 19,818 |
Cost of revenues (exclusive of depreciation and amortization) | 12,898 | 11,444 |
Gross profit | 8,116 | 8,374 |
All Other | ||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||
Revenues, net | 21,116 | 26,006 |
Cost of revenues (exclusive of depreciation and amortization) | 14,444 | 16,887 |
Gross profit | 6,672 | 9,119 |
Analytics | ||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||
Revenues, net | 49,007 | 38,966 |
Cost of revenues (exclusive of depreciation and amortization) | 32,038 | 24,771 |
Gross profit | 16,969 | 14,195 |
BPM and Related Services | ||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||
Revenues, net | 134,026 | 128,070 |
Analytics Services | ||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||
Revenues, net | $ 49,007 | $ 38,966 |
Segment and Geographical Info48
Segment and Geographical Information - Revenues based on Geographical Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues, net | $ 183,033 | $ 167,036 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues, net | 150,281 | 134,074 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues, net | 26,082 | 27,428 |
Rest of World | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues, net | 6,670 | 5,534 |
Non-US | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues, net | $ 32,752 | $ 32,962 |
Segment and Geographical Info49
Segment and Geographical Information - Property, Plant and Equipment, Net Based On Geographical Information (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 59,220 | $ 49,029 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 33,909 | 23,362 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 11,919 | 10,809 |
Philippines | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 10,521 | 11,900 |
Rest of World | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 2,871 | $ 2,958 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Numerators: | ||
Net income | $ 16,788 | $ 13,820 |
Denominators: | ||
Basic weighted average common shares outstanding (in shares) | 33,845,560 | 33,380,028 |
Dilutive effect of share based awards (in shares) | 1,263,322 | 971,629 |
Diluted weighted average common shares outstanding (in shares) | 35,108,882 | 34,351,657 |
Earnings Per Share: | ||
Basic (in dollars per share) | $ 0.50 | $ 0.41 |
Diluted (in dollars per share) | $ 0.48 | $ 0.40 |
Weighted average common shares considered anti-dilutive in computing diluted earnings per share (in shares) | 452,988 | 200,752 |
Other Income, net - Summary of
Other Income, net - Summary of Other Income, net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | ||
Interest and dividend income | $ 672 | $ 479 |
Gain on mutual fund investments | 1,783 | 1,743 |
Change in fair value of earn-out consideration | 0 | 250 |
Other, net | 855 | 707 |
Other income, net | $ 3,310 | $ 3,179 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Owned Assets: | ||
Owned assets, gross | $ 184,242 | $ 164,097 |
Less: Accumulated depreciation and amortization | (125,488) | (115,568) |
Owned Assets, net | 58,754 | 48,529 |
Assets under capital leases: | ||
Capital leased assets, gross | 1,930 | 1,797 |
Less: Accumulated depreciation and amortization | (1,464) | (1,297) |
Assets under capital leases, net | 466 | 500 |
Property, Plant and Equipment, net | 59,220 | 49,029 |
Network equipment, computers and software | ||
Owned Assets: | ||
Owned assets, gross | 124,938 | 109,998 |
Leasehold improvements | ||
Owned Assets: | ||
Owned assets, gross | 33,038 | 31,192 |
Assets under capital leases: | ||
Capital leased assets, gross | 940 | 854 |
Office furniture and equipment | ||
Owned Assets: | ||
Owned assets, gross | 16,162 | 15,426 |
Assets under capital leases: | ||
Capital leased assets, gross | 193 | 133 |
Motor vehicles | ||
Owned Assets: | ||
Owned assets, gross | 602 | 580 |
Assets under capital leases: | ||
Capital leased assets, gross | 797 | 810 |
Buildings | ||
Owned Assets: | ||
Owned assets, gross | $ 1,226 | 1,171 |
Equipment useful life (in years) | 30 years | |
Land | ||
Owned Assets: | ||
Owned assets, gross | $ 802 | 766 |
Capital work in progress | ||
Owned Assets: | ||
Owned assets, gross | $ 7,474 | $ 4,964 |
Minimum | Network equipment, computers and software | ||
Owned Assets: | ||
Equipment useful life (in years) | 3 years | |
Minimum | Leasehold improvements | ||
Owned Assets: | ||
Equipment useful life (in years) | 3 years | |
Minimum | Office furniture and equipment | ||
Owned Assets: | ||
Equipment useful life (in years) | 3 years | |
Minimum | Motor vehicles | ||
Owned Assets: | ||
Equipment useful life (in years) | 2 years | |
Maximum | Network equipment, computers and software | ||
Owned Assets: | ||
Equipment useful life (in years) | 5 years | |
Maximum | Leasehold improvements | ||
Owned Assets: | ||
Equipment useful life (in years) | 8 years | |
Maximum | Office furniture and equipment | ||
Owned Assets: | ||
Equipment useful life (in years) | 8 years | |
Maximum | Motor vehicles | ||
Owned Assets: | ||
Equipment useful life (in years) | 5 years |
Property, Plant and Equipment53
Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 5,928 | $ 5,418 | |
Software development costs | 2,242 | $ 2,242 | |
Capitalized software development costs, accumulated amortization | $ 485 | $ 336 |
Business Combinations, Goodwi54
Business Combinations, Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | Oct. 22, 2016 | Mar. 31, 2017 | Mar. 31, 2016 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 3,498 | $ 2,715 | |
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Remaining amortization period (in years) | 5 years 8 months 12 days | ||
Leasehold benefits | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Remaining amortization period (in years) | 2 years 2 months 12 days | ||
Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Remaining amortization period (in years) | 4 years 8 months 12 days | ||
Non-compete agreements | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Remaining amortization period (in years) | 2 years 3 months 18 days | ||
Trade names and trademarks | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Remaining amortization period (in years) | 5 years 3 months 18 days | ||
Datasource Consulting, LLC | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Consideration transferred | $ 20,318 | ||
Datasource Consulting, LLC | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 6 years | ||
Datasource Consulting, LLC | Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 5 years | ||
Datasource Consulting, LLC | Trade names and trademarks | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 3 years | ||
Restricted Stock | Datasource Consulting, LLC | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Restricted common stock issued (in shares) | 93,604 | ||
Restricted common stock issued, fair value | $ 4,483 | ||
Vesting period (in years) | 4 years |
Business Combinations, Goodwi55
Business Combinations, Goodwill and Intangible Assets - Summary of Purchase Price Allocation for Acquisition (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 187,952 | $ 186,770 | $ 171,535 |
Datasource Consulting, LLC | |||
Business Acquisition [Line Items] | |||
Tangible assets | 3,582 | ||
Tangible liabilities | (1,503) | ||
Goodwill | 10,999 | ||
Total purchase price | 20,318 | ||
Customer relationships | Datasource Consulting, LLC | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | 6,340 | ||
Developed technology | Datasource Consulting, LLC | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | 520 | ||
Trade names and trademarks | Datasource Consulting, LLC | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | $ 380 |
Business Combinations, Goodwi56
Business Combinations, Goodwill and Intangible Assets - Summary of Company's Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 186,770 | $ 171,535 |
Goodwill arising from acquisition | 0 | 16,108 |
Currency translation adjustments | 1,182 | (873) |
Ending Balance | 187,952 | 186,770 |
Insurance | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 38,110 | 35,824 |
Goodwill arising from acquisition | 0 | 2,510 |
Currency translation adjustments | 37 | (224) |
Ending Balance | 38,147 | 38,110 |
Healthcare | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 19,276 | 19,276 |
Goodwill arising from acquisition | 0 | 0 |
Currency translation adjustments | 0 | 0 |
Ending Balance | 19,276 | 19,276 |
Travel, Transportation and Logistics | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 12,983 | 13,278 |
Goodwill arising from acquisition | 0 | 0 |
Currency translation adjustments | 520 | (295) |
Ending Balance | 13,503 | 12,983 |
Finance and Accounting | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 47,537 | 47,891 |
Goodwill arising from acquisition | 0 | 0 |
Currency translation adjustments | 625 | (354) |
Ending Balance | 48,162 | 47,537 |
All Other | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 5,326 | 5,326 |
Goodwill arising from acquisition | 0 | 0 |
Currency translation adjustments | 0 | 0 |
Ending Balance | 5,326 | 5,326 |
Analytics | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 63,538 | 49,940 |
Goodwill arising from acquisition | 0 | 13,598 |
Currency translation adjustments | 0 | 0 |
Ending Balance | $ 63,538 | $ 63,538 |
Business Combinations, Goodwi57
Business Combinations, Goodwill and Intangible Assets - Summary of Company's Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 99,711 | $ 99,487 |
Accumulated amortization | (50,255) | (46,617) |
Total | 49,456 | 52,870 |
Intangible assets, gross | 100,611 | 100,387 |
Intangible assets, net | 50,356 | 53,770 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 75,249 | 75,181 |
Accumulated amortization | (35,647) | (32,968) |
Total | 39,602 | 42,213 |
Leasehold benefits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 2,845 | 2,715 |
Accumulated amortization | (2,405) | (2,247) |
Total | 440 | 468 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 14,209 | 14,186 |
Accumulated amortization | (7,034) | (6,468) |
Total | 7,175 | 7,718 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 2,045 | 2,045 |
Accumulated amortization | (1,653) | (1,612) |
Total | 392 | 433 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 5,363 | 5,360 |
Accumulated amortization | (3,516) | (3,322) |
Total | 1,847 | 2,038 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, trade names and trademarks | $ 900 | $ 900 |
Business Combinations, Goodwi58
Business Combinations, Goodwill and Intangible Assets - Estimated Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Business Combinations [Abstract] | ||
2,018 | $ 13,576 | |
2,019 | 12,046 | |
2,020 | 9,870 | |
2,021 | 3,328 | |
2022 and thereafter | 10,636 | |
Total | $ 49,456 | $ 52,870 |
Other current assets - Schedule
Other current assets - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Derivative instruments | $ 7,363 | $ 3,324 |
Advances to suppliers | 2,516 | 1,091 |
Receivables from statutory authorities | 13,927 | 11,870 |
Others | 1,735 | 4,883 |
Other current assets | $ 25,541 | $ 21,168 |
Accrued expenses and other cu60
Accrued expenses and other current liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 33,810 | $ 30,690 |
Derivative instruments | 1,368 | 1,430 |
Client liability account | 2,783 | 4,005 |
Other current liabilities | 9,709 | 7,139 |
Accrued expenses and other current liabilities | $ 47,670 | $ 43,264 |
Non-current liabilities - Summa
Non-current liabilities - Summary of Non-Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Liabilities, Noncurrent [Abstract] | ||
Derivative instruments | $ 696 | $ 828 |
Unrecognized tax benefits | 3,832 | 3,640 |
Deferred rent | 7,591 | 7,237 |
Retirement benefits | 2,141 | 1,977 |
Other non-current liabilities | 3,469 | 1,137 |
Non-current liabilities | $ 17,729 | $ 14,819 |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive Loss - Summary of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Cumulative currency translation adjustments | $ (65,656) | $ (77,299) |
Unrealized gain on cash flow hedges, net of taxes of $2,967 and $1,207 | 9,079 | 2,740 |
Retirement benefits, net of taxes of ($335) and ($342) | (436) | (498) |
Accumulated other comprehensive loss | (57,013) | (75,057) |
Unrealized gain / (loss) on cash flow hedges, taxes | 2,967 | 1,207 |
Retirement benefits, taxes | $ (335) | $ (342) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Detail) - Recurring - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Money market and mutual funds | $ 117,084 | |
Derivative financial instruments | 14,167 | $ 6,318 |
Total | 131,251 | 6,318 |
Liabilities | ||
Derivative financial instruments | 2,064 | 2,258 |
Total | 2,064 | 2,258 |
Level 1 | ||
Assets | ||
Money market and mutual funds | 117,084 | 0 |
Total | 117,084 | 0 |
Level 2 | ||
Assets | ||
Money market and mutual funds | 0 | |
Derivative financial instruments | 14,167 | 6,318 |
Total | 14,167 | 6,318 |
Liabilities | ||
Derivative financial instruments | 2,064 | 2,258 |
Total | 2,064 | 2,258 |
Level 3 | ||
Assets | ||
Money market and mutual funds | 0 | |
Liabilities | ||
Derivative financial instruments | $ 0 | $ 0 |
Derivatives and Hedge Account64
Derivatives and Hedge Accounting - Additional Information (Detail) ÂŁ in Thousands | 3 Months Ended | ||||
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2017GBP (ÂŁ) | Dec. 31, 2016USD ($) | Dec. 31, 2016GBP (ÂŁ) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net derivative losses which could be reclassified into earnings within the next 12 months | $ 5,938,000 | ||||
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 | 240,655,000 | $ 218,545,000 | |||
Derivatives not Designated as Hedging Instruments | Foreign Currency Exchange Contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Foreign exchange contracts outstanding | $ 91,067,000 | ÂŁ 8,264 | $ 71,318,000 | ÂŁ 11,153 |
Derivatives and Hedge Account65
Derivatives and Hedge Accounting - Summary of Fair Value of Foreign Currency Exchange Contracts (Detail) - Foreign Currency Exchange Contracts - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivatives Designated as Hedging Instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | $ 7,306 | $ 3,211 |
Derivatives Designated as Hedging Instruments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | 6,804 | 2,994 |
Derivatives Designated as Hedging Instruments | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | 1,368 | 1,430 |
Derivatives Designated as Hedging Instruments | Non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | 696 | 828 |
Derivatives not Designated as Hedging Instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | $ 57 | $ 113 |
Derivatives and Hedge Account66
Derivatives and Hedge Accounting - Summary of Effect of Foreign Currency Exchange Contracts on Consolidated Statements of Income (Detail) - Foreign Currency Exchange Contracts - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivatives Designated as Hedging Instruments | Derivatives in Cash Flow Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(loss) recognized in AOCL on derivative - Effective portion | $ 8,723 | $ 2,437 |
Foreign exchange gain/(loss) | Derivatives Designated as Hedging Instruments | Derivatives in Cash Flow Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(loss) reclassified from AOCL to foreign exchange gain/(loss) - Effective portion | 624 | 57 |
Gain/(loss) recognized in foreign exchange gain/(loss) - Ineffective portion | 0 | 0 |
Foreign exchange gain/(loss) | Derivatives not Designated as Hedging Instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(loss) recognized in foreign exchange gain/(loss) | $ 2,622 | $ 1,729 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017USD ($) | Mar. 31, 2016 | Dec. 31, 2016USD ($) | |
Credit Facilities [Line Items] | |||
Other short-term borrowings | $ 10,000 | $ 10,000 | |
Revolving Credit Facility | |||
Credit Facilities [Line Items] | |||
Credit facility capacity | 100,000 | ||
Revolving credit facility | $ 45,000 | ||
Credit facility expiration date | Oct. 24, 2019 | ||
Other short-term borrowings | $ 10,000 | ||
Line of credit interest rate during period (as a percent) | 2.50% | 1.90% | |
Unamortized debt issuance costs | $ 248 | $ 272 | |
Interest coverage ratio, minimum | 3.5 | ||
Leverage ratio, minimum | 2.5 |
Capital Structure - Additional
Capital Structure - Additional Information (Detail) | Feb. 28, 2017USD ($) | Mar. 31, 2017USD ($)ClassOfCommonStock$ / sharesshares | Mar. 31, 2016USD ($)$ / 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 | 62,784 | 14,548 | ||
Withholding tax payments related to the vesting of restricted stock for total consideration | $ 2,913,000 | $ 652,000 | ||
Weighted average purchase price per share prior to the vesting date (in dollars per share) | $ / shares | $ 46.39 | $ 44.83 | ||
2014 Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Repurchase of common stock authorized by board of directors up to | $ 20,000,000 | |||
Stock repurchase program, period start (year) | 2,015 | |||
Stock repurchase program, period end (year) | 2,017 | |||
Common stock shares purchased under the repurchase program (in shares) | shares | 193,962 | 138,638 | ||
Common stock aggregate purchase price including commissions | $ 9,000,000 | $ 6,202,000 | ||
Common stock average purchase price per share (in dollars per share) | $ / shares | $ 46.40 | $ 44.74 | ||
2017 Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Repurchase of common stock authorized by board of directors up to | $ 100,000,000 | |||
Stock repurchase program, period start (year) | 2,017 | |||
Stock repurchase program, period end (year) | 2,019 | |||
Authorized increase in repurchase amount, 2018 | $ 40,000,000 | |||
Authorized increase in repurchase amount, 2019 | 40,000,000 | |||
Minimum | 2017 Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Authorized increase in repurchase amount | 20,000,000 | |||
Maximum | 2017 Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Authorized increase in repurchase amount | $ 40,000,000 |
Employee Benefit Plans - Net Gr
Employee Benefit Plans - Net Gratuity Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | ||
Service cost | $ 484 | $ 400 |
Interest cost | 162 | 149 |
Expected return on plan assets | (107) | (104) |
Amortization of Actuarial loss | 69 | 22 |
Net gratuity cost | $ 608 | $ 467 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Plan Assets (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |
Plan assets at January 1, 2017 | $ 5,640 |
Actual return | 88 |
Benefits paid | (194) |
Effect of exchange rate changes | 266 |
Plan assets at March 31, 2017 | $ 5,800 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | ||
Expected return on plan assets (as a percent) | 8.00% | |
Discretionary contributions towards 401(k) Plan, Maximum (as a percent) | 4.00% | 3.00% |
Discretionary contributions to various defined contribution plans | $ 1,068 | $ 932 |
Contributions to various defined contribution plans | $ 1,713 | $ 1,466 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments under Capital Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Leases [Abstract] | ||
2,018 | $ 269 | |
2,019 | 174 | |
2,020 | 114 | |
2,021 | 43 | |
Total minimum lease payments | 600 | |
Less: amount representing interest | 99 | |
Present value of minimum lease payments | 501 | |
Less: current portion | 216 | $ 232 |
Long term capital lease obligation | $ 285 | $ 300 |
Leases - Future Minimum Lease73
Leases - Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Leases [Abstract] | |
2,018 | $ 10,218 |
2,019 | 8,853 |
2,020 | 5,628 |
2,021 | 3,743 |
2,022 | 1,540 |
2023 and thereafter | 915 |
Total operating lease payments | $ 30,897 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Leases [Abstract] | |||
Rent expense under both cancelable and non-cancelable operating leases | $ 5,667 | $ 5,148 | |
Deferred rent | $ 8,441 | $ 7,915 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 3,560 | $ 5,895 | |
Effective tax rates (as a percent) | 17.50% | 29.90% | |
Employee service share-based compensation, tax benefit realized from exercise of stock options | $ 2,057 | ||
Unrecognized tax benefits | 3,165 | $ 3,087 | |
Recognized interest and penalties | 51 | $ 50 | |
Accrued interest on unrecognized tax benefits | $ 1,667 | $ 1,553 |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Gross Unrecognized Tax Benefits (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Balance as of January 1, 2017 | $ 3,087 |
Increases related to prior year tax positions | 0 |
Decreases related to prior year tax positions | 0 |
Increases related to current year tax positions | 0 |
Decreases related to current year tax positions | 0 |
Effect of exchange rate changes | 78 |
Balance as of March 31, 2017 | $ 3,165 |
Stock Based Compensation - Cost
Stock Based Compensation - Costs Related to Company's Stock-Based Compensation Plan (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expenses | $ 5,956 | $ 5,809 |
Cost of revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expenses | 1,210 | 1,265 |
General and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expenses | 2,596 | 2,372 |
Selling and marketing expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expenses | $ 2,150 | $ 2,172 |
Stock Based Compensation - Co78
Stock Based Compensation - Costs Related to Company's Stock-Based Compensation Plan Additional Information (Detail) | Mar. 31, 2017shares |
2015 Stock Options Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares available for grant (in shares) | 1,414,544 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Based Compensation Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of Options, Granted (in shares) | 0 | 0 | |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of Options, Outstanding, at December 31, 2016 (in shares) | 811,902 | ||
Number of Options, Granted (in shares) | 0 | ||
Number of Options, Exercised (in shares) | (7,970) | ||
Number of Options, Forfeited (in shares) | 0 | ||
Number of Options, Outstanding, at March 31, 2017 (in shares) | 803,932 | 811,902 | |
Number of Options, Vested and exercisable at March 31, 2017 (in shares) | 803,932 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted-Average Exercise Price, Outstanding, at December 31, 2016 (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) | 23.99 | ||
Weighted-Average Exercise Price, Forfeited (in dollars per share) | 0 | ||
Weighted-Average Exercise Price, Outstanding, at March 31, 2017 (in dollars per share) | 16.23 | $ 16.31 | |
Weighted Average Exercise Price, Vested and exercisable at March 31, 2017 (in dollars per share) | $ 16.23 | ||
Aggregate Intrinsic Value, Outstanding | $ 25,031 | $ 27,718 | |
Weighted-Average Remaining Contractual Life (in years) | 2 years 8 months 12 days | 2 years 11 months 15 days | |
Aggregate Intrinsic Value, Vested and exercisable at March 31, 2017 | $ 25,031 | ||
Weighted-Average Remaining Contractual Life, Vested and exercisable at March 31, 2017 (in years) | 2 years 8 months 12 days |
Stock Based Compensation - St80
Stock Based Compensation - Stock Options Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options, granted (in shares) | 0 | 0 |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost, unvested options | $ 0 | |
Number of options, granted (in shares) | 0 | |
Total grant date fair value of option vested in period | $ 0 | $ 706 |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Stock Activity Under Company's Stock Plans (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Number, Outstanding, at December 31, 2016 (in shares) | 246,940 | |
Number, Granted (in shares) | 0 | |
Number, Vested (in shares) | (24,426) | |
Number, Forfeited (in shares) | 0 | |
Number, Outstanding, at March 31, 2017 (in shares) | 222,514 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted-Average Fair Value, Outstanding, at December 31, 2016 (in dollars per share) | $ 42.42 | |
Weighted-Average Fair Value, Granted (in dollars per share) | 0 | |
Weighted-Average Fair Value, Vested (in dollars per share) | 35.91 | |
Weighted-Average Fair Value, Forfeited (in dollars per share) | 0 | |
Weighted-Average Fair Value, Outstanding, at March 31, 2017 (in dollars per share) | $ 43.13 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Number, Outstanding, at December 31, 2016 (in shares) | 1,256,288 | |
Number, Granted (in shares) | 372,019 | |
Number, Vested (in shares) | (371,374) | |
Number, Forfeited (in shares) | (13,890) | |
Number, Outstanding, at March 31, 2017 (in shares) | 1,243,043 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted-Average Fair Value, Outstanding, at December 31, 2016 (in dollars per share) | $ 37.38 | |
Weighted-Average Fair Value, Granted (in dollars per share) | 47.71 | |
Weighted-Average Fair Value, Vested (in dollars per share) | 34.56 | |
Weighted-Average Fair Value, Forfeited (in dollars per share) | 41.66 | |
Weighted-Average Fair Value, Outstanding, at March 31, 2017 (in dollars per share) | $ 41.27 | |
Restricted stock units vested (in shares) | 138,328 | 135,054 |
Stock Based Compensation - Re82
Stock Based Compensation - Restricted Stock Additional Information (Details) - Restricted Stock and Restricted Stock Units $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 50,650 |
Cost not yet recognized, period for recognition (in years) | 3 years 26 days |
Stock Based Compensation - Perf
Stock Based Compensation - Performance Restricted Stock Activity (Details) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Revenue Based PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Number, Outstanding, at December 31, 2016 (in shares) | shares | 115,174 |
Number, Granted (in shares) | shares | 61,123 |
Number, Vested (in shares) | shares | 0 |
Number, Forfeited (in shares) | shares | 0 |
Number, Outstanding, at March 31, 2017 (in shares) | shares | 176,297 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-Average Fair Value, Outstanding, at December 31, 2016 (in dollars per share) | $ / shares | $ 41.70 |
Weighted-Average Fair Value, Granted (in dollars per share) | $ / shares | 47.73 |
Weighted-Average Fair Value, Vested (in dollars per share) | $ / shares | 0 |
Weighted-Average Fair Value, Forfeited (in dollars per share) | $ / shares | 0 |
Weighted-Average Fair Value, Outstanding, at March 31, 2017 (in dollars per share) | $ / shares | $ 43.79 |
Market Condition Based PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Number, Outstanding, at December 31, 2016 (in shares) | shares | 215,171 |
Number, Granted (in shares) | shares | 61,111 |
Number, Vested (in shares) | shares | 0 |
Number, Forfeited (in shares) | shares | 0 |
Number, Outstanding, at March 31, 2017 (in shares) | shares | 276,282 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-Average Fair Value, Outstanding, at December 31, 2016 (in dollars per share) | $ / shares | $ 47.42 |
Weighted-Average Fair Value, Granted (in dollars per share) | $ / shares | 54.10 |
Weighted-Average Fair Value, Vested (in dollars per share) | $ / shares | 0 |
Weighted-Average Fair Value, Forfeited (in dollars per share) | $ / shares | 0 |
Weighted-Average Fair Value, Outstanding, at March 31, 2017 (in dollars per share) | $ / shares | $ 48.90 |
Stock Based Compensation - Pe84
Stock Based Compensation - Performance Based Stock Awards Additional Information (Details) - Performance Based Stock Awards $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 12,365 |
Cost not yet recognized, period for recognition (in years) | 2 years 1 month 18 days |
Related Party Disclosures - (De
Related Party Disclosures - (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |||
Revenue from related party | $ 477 | $ 0 | |
Accounts receivable from related party | $ 295 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase commitments, net of advances | $ 13,534 | |
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 | $ 17,906 | $ 17,963 |
Total bank guarantees and deposits in respect of contingencies | 8,512 | 8,640 |
Amounts paid as deposits in respect of contingencies | 6,469 | 6,690 |
Bank guarantee issued | $ 2,043 | $ 1,950 |