Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 21, 2018 | Jun. 30, 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-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Trading Symbol | EXLS | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 34,198,252 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,816,029,590 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 86,795 | $ 213,155 |
Short-term investments | 178,479 | 13,491 |
Restricted cash | 3,674 | 3,846 |
Accounts receivable, net | 135,705 | 113,067 |
Prepaid expenses | 9,781 | 7,855 |
Advance income tax, net | 8,801 | 6,242 |
Other current assets | 29,582 | 21,168 |
Total current assets | 452,817 | 378,824 |
Property and equipment, net | 66,757 | 49,029 |
Restricted cash | 3,808 | 3,393 |
Deferred taxes, net | 8,585 | 14,799 |
Intangible assets, net | 48,958 | 53,770 |
Goodwill | 204,481 | 186,770 |
Other assets | 36,369 | 19,943 |
Investment in equity affiliate | 3,000 | 0 |
Total assets | 824,775 | 706,528 |
Current liabilities: | ||
Accounts payable | 5,918 | 3,288 |
Current portion of long-term borrowings | 10,318 | 10,000 |
Deferred revenue | 10,716 | 16,615 |
Accrued employee cost | 55,664 | 50,832 |
Accrued expenses and other current liabilities | 61,366 | 43,264 |
Current portion of capital lease obligations | 267 | 232 |
Total current liabilities | 144,249 | 124,231 |
Long term borrowings | 50,391 | 35,000 |
Capital lease obligations, less current portion | 331 | 300 |
Income taxes payable | 13,557 | 0 |
Non-current liabilities | 16,202 | 14,819 |
Total liabilities | 224,730 | 174,350 |
Commitments and contingencies (Note 23) | ||
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, 36,790,751 shares issued and 33,888,733 shares outstanding as of December 31, 2017 and 35,699,819 shares issued and 33,628,109 shares outstanding as of December 31, 2016 | 37 | 36 |
Additional paid-in-capital | 322,246 | 284,646 |
Retained earnings | 427,064 | 382,722 |
Accumulated other comprehensive loss | (45,710) | (75,057) |
Total including shares held in treasury | 703,637 | 592,347 |
Less: 2,902,018 shares as of December 31, 2017 and 2,071,710 shares as of December 31, 2016, held in treasury, at cost | (103,816) | (60,362) |
Stockholders' equity | 599,821 | 531,985 |
Non-controlling interest | 224 | 193 |
Total equity | 600,045 | 532,178 |
Total liabilities and equity | $ 824,775 | $ 706,528 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 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 | 15,000,000 | 15,000,000 |
Preferred stock shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 36,790,751 | 35,699,819 |
Common stock shares outstanding | 33,888,733 | 33,628,109 |
Less shares held in treasury at cost | 2,902,018 | 2,071,710 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Revenues, net | $ 762,310 | $ 685,988 | $ 628,492 |
Cost of revenues (exclusive of depreciation and amortization) | 495,586 | 447,956 | 402,917 |
Gross profit | 266,724 | 238,032 | 225,575 |
Operating expenses: | |||
General and administrative expenses | 102,567 | 88,648 | 77,293 |
Selling and marketing expenses | 53,383 | 50,582 | 49,474 |
Depreciation and amortization | 38,549 | 34,580 | 31,465 |
Total operating expenses | 194,499 | 173,810 | 158,232 |
Income from operations | 72,225 | 64,222 | 67,343 |
Foreign exchange gain, net | 2,839 | 5,597 | 2,744 |
Interest expense | (1,889) | (1,343) | (1,338) |
Other income, net | 11,859 | 15,408 | 7,027 |
Income before income tax expense | 85,034 | 83,884 | 75,776 |
Income tax expense | 36,146 | 22,151 | 24,211 |
Net income | $ 48,888 | $ 61,733 | $ 51,565 |
Earnings per share: | |||
Basic (in dollars per share) | $ 1.44 | $ 1.84 | $ 1.55 |
Diluted (in dollars per share) | $ 1.39 | $ 1.79 | $ 1.51 |
Weighted-average number of shares used in computing earnings per share: | |||
Basic (in shares) | 33,897,916 | 33,566,367 | 33,298,104 |
Diluted (in shares) | 35,110,210 | 34,563,319 | 34,178,340 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 48,888 | $ 61,733 | $ 51,565 | |
Other comprehensive income: | ||||
Unrealized gain/(loss) on effective cash flow hedges, net of taxes $5,821, $1,734 and $109, respectively | 13,981 | 3,395 | 23 | |
Foreign currency translation adjustment | 18,894 | (9,236) | (12,510) | |
Retirement benefits, net of taxes $164, ($204) and $22, respectively | 1,109 | (439) | 584 | |
Reclassification adjustments | ||||
Realized loss/(gain) on cash flow hedges, net of taxes ($2,110), ($1,190) and ($49), respectively(1) | [1] | (4,789) | (1,479) | (71) |
Retirement benefits, net of taxes $104, $63 and $53, respectively(2) | [2] | 152 | 27 | 158 |
Total other comprehensive income/(loss) | 29,347 | (7,732) | (11,816) | |
Total comprehensive income | $ 78,235 | $ 54,001 | $ 39,749 | |
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjE4MjMzOGNjMDZhZDQ5MmM5MmQ3ZGZjZmU4MmZlYTBifFRleHRTZWxlY3Rpb246RERBNzRDRkREREJENThDMTgxNzI3OThBMDFGRDRDNTgM} | |||
[2] | These are reclassified to net income and are included in the computation of net periodic pension costs in the consolidated statements of income. See Note 18 to the consolidated financial statements. |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gain/(loss) on effective cash flow hedges, tax | $ 5,821 | $ 1,734 | $ 109 |
Retirement benefits, tax | 164 | (204) | 22 |
Realized (gain)/loss on cash flow hedges, tax | (2,110) | (1,190) | (49) |
Retirement benefits, tax | $ 104 | $ 63 | $ 53 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Treasury Stock | Non - Controlling Interest | |
Beginning balance (in shares) at Dec. 31, 2014 | 34,203,352 | (1,297,885) | ||||||
Beginning balance at Dec. 31, 2014 | $ 419,158 | $ 34 | $ 233,173 | $ 269,424 | $ (55,509) | $ (27,964) | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock issued on exercise/vesting of equity awards (in shares) | 577,849 | |||||||
Stock issued on exercise/vesting of equity awards | 3,375 | $ 1 | 3,374 | |||||
Stock based compensation | 16,047 | 16,047 | ||||||
Excess tax benefit from stock based compensation | 1,458 | 1,458 | ||||||
Acquisition of treasury stock (in shares) | (392,093) | |||||||
Acquisition of treasury stock | (14,195) | $ (14,195) | ||||||
Non-controlling interest | 179 | 179 | ||||||
Other comprehensive income | (11,816) | (11,816) | ||||||
Net income | 51,565 | 51,565 | ||||||
Ending balance (in shares) at Dec. 31, 2015 | 34,781,201 | (1,689,978) | ||||||
Ending balance at Dec. 31, 2015 | 465,771 | $ 35 | 254,052 | 320,989 | (67,325) | $ (42,159) | 179 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock issued on exercise/vesting of equity awards (in shares) | 918,618 | |||||||
Stock issued on exercise/vesting of equity awards | 6,499 | $ 1 | 6,498 | |||||
Stock based compensation | 19,770 | 19,770 | ||||||
Excess tax benefit from stock based compensation | 4,326 | 4,326 | ||||||
Acquisition of treasury stock (in shares) | (381,732) | |||||||
Acquisition of treasury stock | (18,203) | $ (18,203) | ||||||
Non-controlling interest | 14 | 14 | ||||||
Other comprehensive income | (7,732) | (7,732) | ||||||
Net income | $ 61,733 | 61,733 | ||||||
Ending balance (in shares) at Dec. 31, 2016 | 33,628,109 | 35,699,819 | (2,071,710) | |||||
Ending balance at Dec. 31, 2016 | $ 532,178 | $ 36 | 284,646 | 382,722 | (75,057) | $ (60,362) | 193 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Impact on adoption of ASU 2016-09 | [1] | 1,453 | 5,999 | (4,546) | ||||
Adjusted equity balance | 533,631 | $ 36 | 290,645 | 378,176 | (75,057) | $ (60,362) | 193 | |
Stock issued on exercise/vesting of equity awards (in shares) | 1,090,932 | |||||||
Stock issued on exercise/vesting of equity awards | 8,561 | $ 1 | 8,560 | |||||
Stock based compensation | 23,041 | 23,041 | ||||||
Acquisition of treasury stock (in shares) | (830,308) | |||||||
Acquisition of treasury stock | (43,454) | $ (43,454) | ||||||
Non-controlling interest | 31 | 31 | ||||||
Other comprehensive income | 29,347 | 29,347 | ||||||
Net income | $ 48,888 | 48,888 | ||||||
Ending balance (in shares) at Dec. 31, 2017 | 33,888,733 | 36,790,751 | (2,902,018) | |||||
Ending balance at Dec. 31, 2017 | $ 600,045 | $ 37 | $ 322,246 | $ 427,064 | $ (45,710) | $ (103,816) | $ 224 | |
[1] | Refer note 2(o) to consolidated financial statements for details. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 48,888 | $ 61,733 | $ 51,565 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 38,984 | 34,580 | 31,465 |
Stock-based compensation expense | 23,041 | 19,770 | 16,047 |
Unrealized foreign exchange (gain)/loss | 1,523 | (1,001) | (3,798) |
Deferred income tax (benefit)/expense | 731 | (3,384) | 2,238 |
Excess tax benefit from stock-based compensation | 0 | (4,326) | (1,458) |
Change in fair value of earn-out consideration | 0 | (4,060) | 0 |
Allowance for doubtful accounts receivable | 2,816 | 0 | 0 |
Others, net | 252 | (107) | (278) |
Change in operating assets and liabilities (net of effect of acquisitions): | |||
Restricted cash | (19) | (2,137) | (787) |
Accounts receivable | (20,482) | (18,062) | (9,087) |
Prepaid expenses and other current assets | 218 | (5,421) | (3,112) |
Accounts payable | 1,706 | (2,628) | 44 |
Deferred revenue | (6,625) | 5,726 | 2,566 |
Accrued employee costs | 6,391 | 5,304 | 8,528 |
Accrued expenses and other liabilities | 6,903 | 9,080 | (4,699) |
Advance income tax, net | 11,037 | 437 | 8,865 |
Other assets | (2,224) | 4,754 | (1,408) |
Net cash provided by operating activities | 113,140 | 100,258 | 96,691 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (35,154) | (25,850) | (25,585) |
Investment in equity affiliate | (3,000) | 0 | 0 |
Business acquisitions (net of cash acquired) | (23,300) | (28,666) | (44,270) |
Purchase of investments | (402,721) | (182,471) | (129,050) |
Proceeds from redemption of investments | 241,439 | 182,320 | 125,365 |
Net cash used for investing activities | (222,736) | (54,667) | (73,540) |
Cash flows from financing activities: | |||
Principal payments on capital lease obligations | (174) | (348) | (720) |
Proceeds from borrowings | 60,574 | 0 | 30,000 |
Repayments of borrowings | (45,192) | (25,000) | (10,000) |
Proceeds from non-controlling interest | 0 | 0 | 176 |
Payment of debt issuance costs | (790) | 0 | (74) |
Acquisition of treasury stock | (43,454) | (18,203) | (14,195) |
Proceeds from exercise of stock options | 8,561 | 6,499 | 3,375 |
Excess tax benefit from stock-based compensation | 0 | 4,326 | 1,458 |
Net cash (used for)/provided by financing activities | (20,475) | (32,726) | 10,020 |
Effect of exchange rate changes on cash and cash equivalents | 3,711 | (5,033) | (4,347) |
Net increase/(decrease) in cash and cash equivalents | (126,360) | 7,832 | 28,824 |
Cash and cash equivalents, beginning of year | 213,155 | 205,323 | 176,499 |
Cash and cash equivalents, end of year | 86,795 | 213,155 | 205,323 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 1,122 | 1,178 | 1,188 |
Cash paid for taxes, net of refund | 19,128 | 15,667 | 11,505 |
Assets acquired under capital lease | $ 301 | $ 334 | $ 215 |
Nature of operation and organiz
Nature of operation and organization | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of operation and organization | Nature of operation and organization ExlService Holdings, Inc. (“ExlService Holdings”) is organized as a corporation under the laws of the state of Delaware. ExlService Holdings, together with its subsidiaries (collectively, the “Company”), operates in Business Process Management ("BPM") industry providing operations management services and analytics services that helps businesses enhance revenue growth and improve profitability. Using its proprietary platforms, methodologies and tools, the Company looks deeper to help companies improve global operations, enhance data-driven insights, increase customer satisfaction, and manage risk and compliance. The Company’s clients are located principally in the U.S. and the U.K. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Basis of Preparation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“US GAAP”). The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of ExlService Holdings and all of its subsidiaries and includes the Company's share in the results of its associates. Accounting policies of the respective individual subsidiary and associate are aligned wherever necessary, so as to ensure consistency with the accounting policies that are adopted by the Company under US GAAP. The standalone financial statements of subsidiaries are fully consolidated on a line-by-line basis. Intragroup balances and transactions, and income and expenses arising from intra-group transactions, are eliminated while preparing the said financial statements. The un-realized gains resulting from intra-group transactions are also eliminated. Similarly, the un-realized losses are eliminated, unless the transaction provides evidence as to impairment of the asset transferred. The Company’s investments in equity affiliate are initially recorded at cost and any excess cost over proportionate share of the fair value of the net assets of the investee at the acquisition date is recognized as goodwill. The proportionate share of net income or loss of the investee is recognized in the consolidated statements of income. 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 operation 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 the years ended December 31, 2017, 2016 and 2015 was insignificant and are included under general and administrative expenses in the consolidated statements of income. (b) Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the related amount of revenue and expenses 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 account receivables, recoverability of service tax receivables, assets and obligations related to employee benefit plans, deferred tax valuation allowances, income-tax uncertainties and other contingencies, valuation of derivative financial instruments, assumptions used to calculate stock-based compensation expense, depreciation and amortization periods, purchase price allocation, recoverability of long-term assets including goodwill and intangibles, and estimates to complete fixed price contracts. In accordance with its policy, the Company reviews the estimated useful lives of its property and equipment on an ongoing basis. (c) Foreign Currency Translation The functional currency of each entity in the Company is its respective local country currency which is also the currency of the primary economic environment in which it operates except for the entities in Mauritius which use the U.S. dollar as its functional currency. Transactions in foreign currencies are initially recorded into functional currency at the rates of exchange prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are remeasured into functional currency at the rates of exchange prevailing at the balance sheet date. Non-monetary assets and liabilities are remeasured to the functional currency of the subsidiary at historical exchange rates. All transaction foreign exchange gains and losses are recorded in the accompanying consolidated statements of income. The assets and liabilities of the subsidiaries for which the functional currency is other than the U.S. dollar are translated into U.S. dollars, the reporting currency, at the rate of exchange prevailing on the balance sheet date. Revenues and expenses are translated into U.S. dollars at the exchange rates prevailing on the last business day of each month, which approximates the average monthly exchange rate. Resulting translation adjustments are included in accumulated other comprehensive loss in the consolidated balance sheet. (d) Revenue Recognition The Company derives its revenues from operations management and analytics services. Revenues from operations management services are recognized primarily on a time-and-material based, transaction-based, outcome-based, cost-plus and fixed-price basis; revenues from analytics services are recognized primarily on a time-and-material and fixed price basis. The services provided by the Company under its contracts with the customer generally contain one unit of accounting except for the software and related services contracts involving implementation services and post contract maintenance services. In such multiple element arrangements, revenue is allocated to maintenance based on the price charged when that element is sold separately (vendor specific objective evidence or “VSOE”). Revenues are recognized when the four basic criteria are met; persuasive evidence of an arrangement exists, the sales price is fixed or determinable, services have been performed and collection of amounts billed is reasonably assured. Revenues under time-and-material, transaction and outcome-based contracts are recognized as the services are performed. When the terms of the client contract specify service level parameters that must be met (such as turnaround time or accuracy), the Company monitors such service level parameters to determine if any service credits or penalties have been incurred. Revenues are recognized net of any penalties or service credits that are due to a client. Revenue from Analytics services including modeling, targeting and designing of campaigns and mail marketing including email marketing and other digital solutions is typically recognized on delivery of such campaigns. In respect of arrangements involving subcontracting, in part or whole, of the assigned work, the Company evaluates revenues to be recognized under Accounting Standard Codification ("ASC") topic 605-45, “Revenue recognition - Principal agent considerations”. Revenues for Company’s fixed-price contracts are recognized using the proportional performance method when the pattern of performance under the contracts can be reasonably determined. The Company estimates the proportional performance of a contract by comparing the actual number of hours or days worked to the estimated total number of hours or days required to complete each engagement. The use of the proportional performance method requires significant judgment relative to estimating the number of hours or days required to complete the contracted scope of work, including assumptions and estimates relative to the length of time to complete the project and the nature and complexity of the work to be performed. The Company regularly monitors its estimates for completion of a project and record changes in the period in which a change in an estimate is determined. If a change in an estimate results in a projected loss on a project, such loss is recognized in the period in which it is first identified. Revenues from the Company's software and related services contracts, which are not significant, are primarily related to maintenance renewals or incremental license fees for additional users. Maintenance revenues are generally recognized on a straight-line basis over the annual contract term. Fees for incremental license fees without any associated services are recognized upon delivery of the related incremental license. To a lesser extent, software and related services contracts may contain software license, related services and maintenance elements as a multiple element arrangement. In such cases, revenue is allocated to maintenance based on the price charged when that element is sold separately (vendor specific objective evidence or “VSOE”). Services related to software licenses are evaluated to determine whether those services are significant or essential to the functionality of the software. When services are significant or considered essential, revenues related to license fee and services are recognized as the services are performed using the percentage of completion method of accounting, under which the total value of revenue is recognized on the basis of the percentage that each contract’s total labor hours to date bears to the total expected labor hours (input method). The Company accrues revenues for services rendered between the last billing date and the balance sheet date. Accordingly, its accounts receivable include amounts for services, as unbilled accounts receivables, that the Company has performed and for which an invoice has not yet been issued to the client. The Company defers the revenues and related cost of revenue while a process is under migration and recognizes such revenues and costs ratably over the period during which the related services are expected to be performed. The deferred costs are limited to the amounts of the deferred revenues. Deferred revenue also includes the amount for which the services have been rendered but the other conditions of revenue recognition are not met, for example where the Company does not have the persuasive evidence of the arrangements. Reimbursements of out-of-pocket expenses received from clients are included as part of revenues. Reimbursements of out-of-pocket expenses included in revenues were $17,982 , $21,812 and $18,848 for the years ended December 31, 2017, 2016 and 2015, respectively. (e) Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with an original maturity of ninety days or less to be cash equivalents. Pursuant to the Company’s investment policy, surplus funds are invested in highly-rated debt mutual funds, money market accounts and time deposits to reduce its exposure to market risk with regard to these funds. Restricted cash represents amounts on deposit with banks against bank guarantees issued through banks for equipment imports and for demands against pending income tax assessments (see Note 23 for details). These deposits with banks have maturity dates before and after December 31, 2018. Restricted cash also includes client funds held in dedicated bank accounts. (f) Investments The Company’s investments consist of time deposits with financial institutions which are valued at cost and approximate fair value. Interest earned on such investments is included in interest income. Investments with original maturities greater than ninety days but less than twelve months are classified as short-term investments. Investments with maturities greater than twelve months from the balance sheet date are classified as long-term investments. The Company's mutual fund investments are in debt and money market funds which invest in instruments of various maturities in India. These investments are accounted for in accordance with the fair value option under ASC topic 825-10 and change in fair value is included in interest and other income. The fair value is represented by original cost on the acquisition date and the net asset value (“NAV”) as quoted, at each reporting period. Gain or loss on the disposal of these investments is calculated using the weighted average cost of the investments sold or disposed and is included in interest and other income. (g) Accounts Receivable Accounts receivable are recorded net of allowances for doubtful accounts. Allowances for doubtful accounts are established through the evaluation of the accounts receivable aging and prior collection experience, current market conditions, clients’ financial condition and the amount of receivables in dispute to ascertain the ultimate collectability of these receivables. As of December 31, 2017 and 2016 , the Company had $2,923 and $241 of allowance for doubtful accounts, respectively. Accounts receivable include unbilled accounts receivable which represent revenues on contracts to be billed, in subsequent periods, as per the terms of the related contracts. As of December 31, 2017 and 2016 , the Company had $49,125 and $34,785 of unbilled accounts receivable, respectively. (h) Property and equipment Property and equipment are stated at cost less accumulated depreciation and impairment. Equipment held under capital leases are capitalized at the commencement of the lease at the lower of present value of minimum lease payments at the inception of the leases or its fair value. Advances paid towards acquisition of property and equipment and the cost of property and equipment not yet placed in service before the end of the reporting period are classified as capital work in progress. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Depreciation and amortization on equipment held under capital leases and leasehold improvements are computed using the straight-line method over the shorter of the assets’ estimated useful lives or the lease term. (in years) Assets: Network equipment and computers 3-5 years Software 3-5 years Leasehold improvements 3-8 years Office furniture and equipment 3-8 years Motor vehicles 2-5 years Buildings 30 years (i) Software Development Costs Costs incurred for developing software or enhancements to the existing software products to be sold and/or used for internal use are capitalized once preliminary project stage is complete and technological feasibility, as defined in ASC 985 and ASC 350, has been established, i.e., it is probable that the software will be used as intended. Technological feasibility is established upon completion of a detailed design program or, in its absence, completion of a working model. Costs that qualify as software development costs include (i) external direct costs of materials and services utilized in developing or obtaining computer software, (ii) compensation and related benefits for employees who are directly associated with the software project, and (iii) interest costs (if any) incurred while developing the computer software. The capitalized costs are amortized on a straight-line basis over the estimated useful life. Costs associated with preliminary project stage activities, training, maintenance and all post-implementation stage activities are expensed as incurred. (j) Business Combinations, Goodwill and Other Intangible Assets ASC topic 805, “Business Combinations”, requires that the purchase method of accounting be used for all business combinations. The guidance specifies criteria as to intangible assets acquired in a business combination that must be recognized and reported separately from goodwill. Contingent consideration is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is re-measured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. These fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in the market. Under ASC topic 350, “Intangibles-Goodwill and Other”, all assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition related costs are expensed as incurred under general and administrative expenses. Goodwill represents the cost of the acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis, relying on a number of factors including operating results, business plans and estimated future cash flows of the reporting units to which it is assigned. Recoverability of goodwill is evaluated using a two-step process. The first step involves a comparison of the fair value of a reporting unit with its carrying value. The fair value of the reporting unit is measured by discounting estimated future cash flows. If the carrying amount of the reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the process involves a comparison of the implied fair value and carrying value of the goodwill of that reporting unit. If the carrying value of the goodwill exceeds the implied fair value of the goodwill, an impairment loss is recognized in an amount equal to the excess. Goodwill of a reporting unit is tested for impairment annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Intangible assets acquired in a business combination are initially valued and recognized at fair market value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over the estimated useful lives and are reviewed for impairment, if indicators of impairment arise. The evaluation of impairment is based upon a comparison of the carrying amount of the intangible asset to its fair value, which is calculated using the estimated future undiscounted net cash flows expected to be generated by the asset. If the fair value of the intangible assets is less than the carrying amount of the asset, the asset is considered impaired and an impairment expense is recognized equal to any shortfall in the current period. The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method: Customer relationships 3-15 years Leasehold benefits 3-8 years Developed technology 5-10 years Non-compete agreements 1-5 years Trade names and trademarks 3-10 years (k) Investment in equity affiliate Investments in equity affiliate are initially recorded at cost and any excess cost over proportionate share of the fair value of the net assets of the investee at the acquisition date is recognized as goodwill. The proportionate share of net income or loss of the investee is recognized in the consolidated statements of income. The Company periodically reviews the carrying value of its investment to determine if there has been any other than temporary decline in carrying value. The investment balance is increased or decreased for cash contribution and distributions to or from, respectively, these investee. (l) Impairment of long-lived assets Long-lived assets, including intangible assets, to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such assets are required to be tested for impairment if the carrying amount of the assets is higher than the future undiscounted net cash flows expected to be generated from the assets. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. The Company determines fair value by using a discounted cash flow approach. (m) Derivative Financial Instruments In the normal course of business, the Company uses derivative instruments for the purpose of mitigating the exposure from foreign currency fluctuation risks associated with forecasted transactions denominated in certain foreign currencies and to minimize earnings and cash flow volatility associated with changes in foreign currency exchange rates, and not for speculative trading purposes. These derivative contracts are purchased within the Company’s policy and are with counterparties that are highly rated financial institutions. The Company hedges forecasted transactions that are subject to foreign exchange exposure with foreign currency exchange contracts that qualify as cash flow hedges. Changes in the fair value of these cash flow hedges are recorded as a component of accumulated other comprehensive income/(loss), net of tax, until the hedged transactions occurs. The Company early adopted ASU 2017-12, Derivative and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. Pursuant to this adoption, effective January 1, 2017, the resultant foreign exchange gain/(loss) upon settlement of cash flow hedges are recorded in the consolidated statements of income along with the underlying hedged item in the same income statement line as either part of “Cost of revenue”, “General and administrative expenses”, “Selling and marketing expenses”, “Depreciation and amortization”, as applicable. Prior to January 1, 2017, the resultant foreign exchange gain/(loss) on settlement of cash flow hedges and changes in the fair value of cash flow hedges deemed ineffective have been recorded in “Foreign exchange gain, net” in the consolidated statements of income. The Company also uses derivatives instruments consisting of foreign currency exchange contracts to economically hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the functional currency. Changes in the fair value of these derivatives are recognized in the consolidated statements of income and are included in foreign exchange gain/(loss). The Company evaluates hedge effectiveness of cash flow hedges at the time a contract is entered into as well as on an ongoing basis. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur by the end of the originally specified period, any related derivative amounts recorded in equity are reclassified to earnings. (n) Employee Benefits Contributions to defined contribution plans are charged to the consolidated statements of income in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. (o) Stock-Based Compensation The Company recognizes stock-based compensation expense in the consolidated financial statements for awards of equity instruments to employees and non-employee directors based on the grant-date fair value of those awards. The Company recognizes these compensation costs over the requisite service period of the award. Forfeitures are accounted when the actual forfeitures occur. Under the Company’s 2015 Amendment and Restatement of the 2006 Omnibus Award Plan (the “2015 Plan”), the Company grants performance-based restricted stock units (“PRSUs”) to executive officers and other specified employees. 50% of the PRSUs cliff vest based on a revenue target ("PU") at the end of a three -year period. The remaining 50% vest based on a market condition (“MUs”) that is contingent on meeting or exceeding the total shareholder return relative to a group of peer companies specified under the program, measured over a three -year performance period. The award recipient may earn up to two hundred percent ( 200% ) of the PRSUs granted based on the actual achievement of both targets. The fair value of each PU was determined based on the market price of one common share of the Company on the date of grant, and the associated compensation expense was calculated on the basis that performance targets to receive 100% of the PUs is probable of being achieved. The compensation expense for the PUs is recognized on a straight-line basis over the service period, which is through the end of the third year. Over this period, the number of shares that will be issued will be adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized as an expense will be based on a comparison of the final performance metrics to the specified targets. The expense related to the unvested PUs as of December 31, 2017 was based on the Company's assessment that the performance criteria for these grants would be met at the 100% performance target level during the respective years of vesting. The grant date fair value for the MUs was determined using a Monte Carlo simulation model and the related compensation expense is expensed on a straight-line basis over the vesting period. All compensation expense related to the MUs will be recognized if the requisite performance period is fulfilled, even if the market condition is not achieved. 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 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 year ended December 31, 2017 in the amount of $9,797 related to excess tax benefits. No adjustment is recorded for any windfall benefits previously recorded in Additional Paid-In Capital. Forfeitures - Prior to adoption, stock-based compensation expense was recognized on a straight line basis, net of estimated forfeitures, such that expense was recognized only for stock-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. (p) Income Taxes The Company accounts for income taxes using the asset and liability method of accounting for income taxes. The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates. The deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases and all operating losses carried forward, if any. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which the applicable temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax status is recognized in the statement of income in the period in which the change is identified. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company establishes provisions for uncertain tax provisions and related interest and penalties when the Company believes those tax positions are not more likely than not of being sustained, if challenged. (q) Financial Instruments and Concentration of Credit Risk Financial Instruments. For certain financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, accounts payable, accrued expenses, and other current liabilities, recorded amounts approximate fair value due to the relatively short maturity periods of such instruments. Concentration of Credit Risk . Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, time deposits, mutual fund investments, accounts receivable and derivative financial instruments. By their nature, all such financial instruments involve risks including the credit risks of non-performance by counterparties. Pursuant to the Company’s investment policy, its surplus funds are maintained as cash or cash equivalents and are invested in highly-rated mutual funds, money market accounts and time deposits, placed with highly rated financial institutions to reduce its exposure to market risk with regard to these funds. The Company’s exposure to credit risk on account receivable is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customer s. To mitigate this risk the Company evaluates the creditworthiness of its clients in conjunction with its revenue recognition processes as well as through its ongoing collectability assessment processes for accounts receivable. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. (r) Lease Obligations Leases under which the Company assumes substantially all risks and rewards of the ownership are classified as capital lease. When acquired, such assets are capitalized at fair value or present value of minimum committed lease payments at the inception of the lease, whichever is lower. The Company leases its office facilities under non-cancellable operating lease agreements. Office facilities subject to an operating lease and the related lease payments are not recorded on the Company’s balance sheet. Lease payments under operating lease are recognized as an expense on a straight line basis in the consolidated statement of income over the lease term. (s) Government Grants Government grants related to income are recognized as a reduction of expenses in the consolidated statement of income when there is a reasonable assurance that the entity will comply with the conditions attached to the grant and that the grants will be received. (t) Earnings per share Basic earnings per share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. For the purposes of calculating diluted ea |
Segment & Geographical Informat
Segment & Geographical Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment & Geographical Information | Segment & Geographical Information The Company operates in the BPM industry and is a provider of operations management and analytics services. The Company has eight operating segments which are strategic business units that align its products and services with how it manages its business, approaches its key markets and interacts with its clients. Six of those operating segments provide BPM or “operations management” services, which 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 our industry-focused segments as well as clients across other industries. In each of these six operating segments, the Company provides operations management services, which typically involve transfer to the Company of 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. The Company presents information for the following reportable segments: • Insurance • Healthcare • Travel, Transportation and Logistics (“TT&L”) • Finance and Accounting (“F&A”), • Analytics, and • All Other (consisting of the Company's remaining operating segments which includes the Banking and Financial services, Utilities and Consulting operating segments). For the year ended December 31, 2015, the Company previously reported and presented two reportable segments: Operations Management (which included Insurance, Healthcare, Travel, Transportation and Logistics, Finance and Accounting, Banking and Financial services, Utilities and Consulting operating segments) and Analytics. Segment information for all prior period presented herein has been changed to conform to the current presentation. This change in segment presentation does not affect the Company's consolidated statements of income and comprehensive income, balance sheets or statements of cash flows. The chief operating decision maker (“CODM”) generally reviews financial information such as revenues, cost of revenues and gross profit, disaggregated by the operating segments to allocate an overall budget among the operating segments. The Company does not allocate and therefore the CODM does not evaluate other operating expenses, interest expense or income taxes by segment. Many of the Company’s assets are shared by multiple operating segments. The Company manages these assets on a total Company basis, not by operating segment, and therefore asset information and capital expenditures by operating segment are not presented. The Company early adopted ASU 2017-12, Derivative and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. Pursuant to this adoption, effective January 1, 2017, the resultant foreign exchange gain/(loss) upon settlement of cash flow hedges are recorded along with the underlying hedged item in the same income statement line as either part of “Cost of revenue”, “General and administrative expenses”, “Selling and marketing expenses”, "Depreciation and Amortization”, as applicable. Revenues and cost of revenues for each of the years ended December 31, 2017, 2016 and 2015, for each of the reportable segments, are as follows: Year ended December 31, 2017 Insurance Healthcare TT&L F&A All Other Analytics Total Revenues, net $ 234,794 $ 77,013 $ 70,951 $ 86,527 $ 83,082 $ 209,943 $ 762,310 Cost of revenues (exclusive of depreciation and amortization) 159,529 49,483 41,409 51,445 56,697 137,023 495,586 Gross profit $ 75,265 $ 27,530 $ 29,542 $ 35,082 $ 26,385 $ 72,920 $ 266,724 Operating expenses 194,499 Foreign exchange gain, interest expense and other income, net 12,809 Income tax expense 36,146 Net income $ 48,888 Year ended December 31, 2016 Insurance Healthcare TT&L F&A All Other Analytics Total Revenues, net $ 206,327 $ 68,656 $ 69,366 $ 79,416 $ 96,489 $ 165,734 $ 685,988 Cost of revenues (exclusive of depreciation and amortization) 146,203 44,098 41,962 48,302 61,050 106,341 447,956 Gross profit $ 60,124 $ 24,558 $ 27,404 $ 31,114 $ 35,439 $ 59,393 $ 238,032 Operating expenses 173,810 Foreign exchange gain, interest expense and other income, net 19,662 Income tax expense 22,151 Net income $ 61,733 Year ended December 31, 2015 Insurance Healthcare TT&L F&A All Other Analytics Total Revenues, net $ 199,878 $ 55,209 $ 62,264 $ 78,504 $ 110,486 $ 122,151 $ 628,492 Cost of revenues (exclusive of depreciation and amortization) 134,196 37,224 37,506 46,846 68,307 78,838 402,917 Gross profit $ 65,682 $ 17,985 $ 24,758 $ 31,658 $ 42,179 $ 43,313 $ 225,575 Operating expenses 158,232 Foreign exchange gain, interest expense and other income, net 8,433 Income tax expense 24,211 Net income $ 51,565 Net revenues of the Company by service type, were as follows: Year ended December 31, 2017 2016 2015 BPM and related services (1) $ 552,367 $ 520,254 $ 506,341 Analytics services 209,943 165,734 122,151 Total $ 762,310 $ 685,988 $ 628,492 (1) BPM and related services include revenues of the Company's five industry-focused operating segments, one capability operating segment and the consulting operating segment, which provides services related to operations management services. The Company attributes the revenues to regions based upon the location of its customers. Year ended December 31, 2017 2016 2015 Revenues, net United States $ 626,336 $ 554,945 $ 496,418 Non-United States United Kingdom 108,640 109,905 108,868 Rest of World 27,334 21,138 23,206 Total Non-United States 135,974 131,043 132,074 $ 762,310 $ 685,988 $ 628,492 Property and equipment, net by geographic area, are as follows: As of December 31, 2017 December 31, 2016 Property and equipment, net India $ 39,143 $ 23,362 United States 16,371 10,809 Philippines 8,217 11,900 Rest of World 3,026 2,958 $ 66,757 $ 49,029 For a discussion of risks attendant to foreign operations, see “Item 1A. Risk Factors - Risks Related to the International Nature of Our Business”. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Summarized quarterly results for the years ended December 31, 2017 and 2016 are as follows: Three months ended 2017 Year ended March 31 June 30 September 30 December 31 December 31, 2017 Revenues, net $ 183,033 $ 189,057 $ 192,345 $ 197,875 $ 762,310 Gross profit** $ 63,851 $ 65,211 $ 69,156 $ 68,506 $ 266,724 Net income/(loss) $ 16,788 $ 20,378 $ 21,077 $ (9,355 ) $ 48,888 Earnings/(loss) per share: Basic* $ 0.50 $ 0.60 $ 0.62 $ (0.27 ) $ 1.44 Diluted* $ 0.48 $ 0.58 $ 0.60 $ (0.27 ) $ 1.39 Weighted-average number of shares used in computing earnings per share: Basic* 33,845,560 33,819,320 33,838,374 34,086,711 33,897,916 Diluted* 35,108,882 34,993,226 35,043,987 34,086,711 35,110,210 Stock compensation expense $ 5,956 $ 5,107 $ 5,708 $ 6,270 $ 23,041 Amortization of intangibles $ 3,498 $ 3,507 $ 3,487 $ 3,483 $ 13,975 Three months ended 2016 Year ended March 31 June 30 September 30 December 31 December 31, 2016 Revenues, net $ 167,036 $ 170,478 $ 171,200 $ 177,274 $ 685,988 Gross profit** $ 58,657 $ 58,452 $ 59,433 $ 61,490 $ 238,032 Net income $ 13,820 $ 16,375 $ 16,050 $ 15,488 $ 61,733 Earnings per share: Basic* $ 0.41 $ 0.49 $ 0.48 $ 0.46 $ 1.84 Diluted* $ 0.40 $ 0.47 $ 0.46 $ 0.45 $ 1.79 Weighted-average number of shares used in computing earnings per share: Basic* 33,380,028 33,621,444 33,624,401 33,638,170 33,566,367 Diluted* 34,351,657 34,510,400 34,675,485 34,714,308 34,563,319 Stock compensation expense $ 5,809 $ 4,450 $ 4,484 $ 5,027 $ 19,770 Amortization of intangibles $ 2,715 $ 2,718 $ 2,848 $ 3,592 $ 11,873 * Total of quarterly basic and diluted earnings per share and weighted average number of shares used in computing earnings per share will not be equal to year end basic and diluted earnings per share and weighted average number of shares used in computing earnings per share, respectively. For the quarter ended December 31, 2017, 1,206,335 weighted average common shares were considered anti-dilutive and not included in computing diluted earnings per share. **During the quarter ended December 31, 2017, the Company early adopted ASU 2017-12, Derivative and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. Pursuant to this adoption effective January 1, 2017, the Company recorded settlement gain/(loss) on cash flow hedges in cost of revenues and operating expenses, as applicable, in the consolidated statements of income for each of the quarters of 2017. See Note 15 for further details. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 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: Year ended December 31, 2017 2016 2015 Numerators: Net income $ 48,888 $ 61,733 $ 51,565 Denominators: Basic weighted average common shares outstanding 33,897,916 33,566,367 33,298,104 Dilutive effect of stock based awards 1,212,294 996,952 880,236 Diluted weighted average common shares outstanding 35,110,210 34,563,319 34,178,340 Earnings per share: Basic $ 1.44 $ 1.84 $ 1.55 Diluted $ 1.39 $ 1.79 $ 1.51 Weighted average common shares considered anti-dilutive and not included in computing diluted earnings per share 151,961 92,538 73,896 |
Other Income, net
Other Income, net | 12 Months Ended |
Dec. 31, 2017 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income, net | Other Income, net Other Income, net consists of the following: Year ended December 31, 2017 2016 2015 Interest and dividend income $ 1,625 $ 1,673 $ 2,904 Gain on mutual fund investments 8,766 8,087 3,902 Change in fair value of earn-out consideration — 4,060 — Other, net 1,468 1,588 221 Other income, net $ 11,859 $ 15,408 $ 7,027 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consist of the following: As of Estimated useful lives (Years) December 31, 2017 December 31, 2016 Owned Assets: Network equipment and computers 3-5 $ 77,587 $ 65,381 Software 3-5 59,325 44,617 Leasehold improvements 3-8 38,857 31,192 Office furniture and equipment 3-8 19,667 15,426 Motor vehicles 2-5 638 580 Buildings 30 1,245 1,171 Land - 815 766 Capital work in progress - 9,184 4,964 207,318 164,097 Less: Accumulated depreciation and amortization (141,059 ) (115,568 ) $ 66,259 $ 48,529 Assets under capital leases: Leasehold improvements $ 941 $ 854 Office furniture and equipment 167 133 Motor vehicles 710 810 1,818 1,797 Less: Accumulated depreciation (1,320 ) (1,297 ) $ 498 $ 500 Property and Equipment, net $ 66,757 $ 49,029 Capital work in progress represents advances paid towards acquisition of property and equipment and cost of property and equipment and internally generated software costs not yet ready to be placed in service. The depreciation and amortization expense excluding amortization of acquisition-related intangibles recognized in the consolidated statements of income was as follows: Year ended December 31, 2017 2016 2015 Depreciation and amortization expense $ 24,574 $ 22,707 $ 21,239 Effective January 1, 2017, the depreciation and amortization expenses set forth above includes the effect of the foreign exchange gain/(loss) upon settlement of cash flow hedges, amounting to $435 for the year ended December 31, 2017 (see Note 15 to the consolidated financial statements for further details). Internally developed software costs, included under Software, was as follows: As of December 31, 2017 December 31, 2016 Cost $ 2,571 $ 2,242 Less : Accumulated amortization 976 336 $ 1,595 $ 1,906 During the year ended December 31, 2017, there were no changes in estimated useful lives of property and equipment. |
Business Combinations, Goodwill
Business Combinations, Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations, Goodwill And Intangible Assets Disclosure [Abstract] | |
Business Combinations, Goodwill and Intangible Assets | Business Combinations, Goodwill and Intangible Assets Health Integrated, Inc. On December 22, 2017 , a wholly owned subsidiary of the Company entered into an Asset Purchase Agreement to acquire substantially all the assets and assumed certain liabilities of Health Integrated, Inc. (“Health Integrated”), a company based in Tampa, Florida. The initial purchase consideration consisted of $22,577 in cash including working capital adjustment. The purchase agreement allows sellers the ability to earn up to $5,000 as earn-out, based on the achievement of certain performance goals by Health Integrated during the 2018 calendar year. The earn-out has an estimated fair value of $920 . 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 Asset Purchase Agreement. Health Integrated is a Florida-based care management company that provides end-to-end analytics- and behavioral IP-enabled care management services including case management, utilization management, disease management, special needs programs, and multichronic care management on behalf of health plans. Health Integrated serves millions of lives in the Medicaid, Medicare, and dual eligible populations. It is known for its strong capabilities in improving member health status through behavioral change. Accordingly, the Company paid a premium for the acquisition, which is reflected in the goodwill recognized from the purchase price allocation. The acquisition of Health Integrated is included in the Healthcare reportable segment. The Company has preliminary allocated the purchase price to the net tangible and intangible assets based on their fair values as set forth below: Amount (In thousands) Tangible Assets $ 5,945 Liabilities (7,193 ) Identifiable Intangible Assets: Customer relationships 6,760 Developed technology 1,510 Trade names and trademarks 570 Goodwill 15,957 Total purchase price $ 23,549 The amount of goodwill recognized from the Health Integrated acquisition is deductible for tax purposes. The customer relationships from the Health Integrated acquisition are being amortized over the weighted average useful life of 7.0 years and developed technology and trademarks are being amortized over the useful life of 1.0 year and 2.0 years , respectively. Under ASC topic 805, "Business Combination", the preliminary allocation of the purchase price to the tangible and intangible assets and liabilities acquired may change for a period of up to one year from the date of the acquisition. The Company's purchase accounting for Health Integrated as of December 31, 2017 was incomplete and the Company expects to complete the working capital adjustment and valuation of the tangible assets, intangible assets and liabilities assumed as of the acquisition date during the first quarter of 2018. Accordingly, the Company may adjust the amounts recorded as of December 31, 2017 to reflect the final valuations of assets acquired or liabilities assumed. During the year ended December 31, 2017 , the Company recognized $795 as acquisition related costs. Such amounts are included in general and administrative expenses in the consolidated statements of income. The Company’s results of operations for the year ended December 31, 2017 includes insignificant amount of revenues and net income from its Health Integrated acquisition from December 22, 2017 through December 31, 2017 . Subsequent to December 31, 2017 , the Company also issued 4,444 shares of restricted stock units with an aggregate fair value of $275 to certain key employees of Health Integrated, each of whom accepted employment positions with the Company upon consummation of the combination. The restricted stock units vest proportionally over four years and the fair value of these grants will be recognized as compensation expense on a straight-line basis over the vesting term. Unaudited Pro Forma Financial Information The following unaudited pro forma results of operations have been prepared using the acquisition method of accounting to give effect to the Health Integrated acquisition as though it occurred on January 1, 2016. The Company completed its acquisition of Health Integrated on December 22, 2017 and accordingly Health Integrated’s operations for the period from December 22, 2017 to December 31, 2017 are included in the Company’s consolidated statement of income. The pro forma amounts reflect certain adjustments, such as depreciation and amortization on assets acquired, interest expense related to liabilities not assumed by the Company and facility costs for certain facilities not acquired. The unaudited pro forma financial information is presented for illustrative purposes only, is based on a preliminary purchase price allocation, and is not necessarily indicative of the results of operations that would have actually been reported had the acquisitions occurred on January 1, 2016, nor is it necessarily indicative of the future results of operations of the combined company. Year ended December 31, 2017 2016 Revenues $ 801,101 $ 729,938 Net income $ 46,998 $ 58,232 Earnings per share: Basic $ 1.39 $ 1.73 Diluted $ 1.34 $ 1.68 Goodwill The following table sets forth details of the Company’s goodwill balance as of December 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 — 15,957 — — — — 15,957 Currency translation adjustments 223 — 696 835 — — 1,754 Balance as at December 31, 2017 $ 38,333 $ 35,233 $ 13,679 $ 48,372 $ 5,326 $ 63,538 $ 204,481 Based on the results of the impairment testing performed during the year ended December 31, 2017 , the Company’s goodwill was not impaired. The Company makes every reasonable effort to ensure that it accurately estimates the fair value of the reporting units. However, future changes in the assumptions used to make these estimates could result in an impairment loss. Intangible Assets Information regarding the Company’s intangible assets is set forth below: As of December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Customer relationships $ 82,165 $ (43,667 ) $ 38,498 Leasehold benefits 2,888 (2,596 ) 292 Developed technology 15,835 (8,749 ) 7,086 Non-compete agreements 2,045 (1,780 ) 265 Trade names and trademarks 5,951 (4,034 ) 1,917 $ 108,884 $ (60,826 ) $ 48,058 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 109,784 $ (60,826 ) $ 48,958 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 The amortization expenses is as follows: Year ended December 31, 2017 2016 2015 Amortization expense $ 13,975 $ 11,873 $ 10,226 The remaining weighted average life of intangible assets is as follows: (in years) Customer relationships 5.36 Leasehold benefits 1.41 Developed technologies 3.07 Non-compete agreements 1.69 Trade names and trademarks (Finite lived) 4.29 Estimated amortization of intangible assets during the year ending December 31: 2018 $ 15,249 2019 12,508 2020 5,086 2021 4,021 2022 3,213 2023 and thereafter 7,981 Total $ 48,058 |
Investment in equity affiliate
Investment in equity affiliate | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in equity affiliate | Investment in equity affiliate On December 12, 2017 , the Company acquired preferred stock in Corridor Platform Inc. (“Corridor”), a big data credit risk management platform f or $3,000 . The Company has determined that based on its ownership interest and other rights, Corridor is an equity affiliate. The Company has the right and option to acquire additional preferred stock from Corridor as per the terms of the agreement. The Company's proportionate share of net loss of Corridor for the period December 12, 2017 to December 31, 2017 was insignificant. |
Other current assets
Other current assets | 12 Months Ended |
Dec. 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 December 31, 2017 December 31, 2016 Derivative instruments $ 10,938 $ 3,324 Advances to suppliers 2,451 1,091 Receivables from statutory authorities 7,598 11,870 Others 8,595 4,883 Other current assets $ 29,582 $ 21,168 |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Accounts Payable and Accrued Liabilities, Current [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 December 31, 2017 December 31, 2016 Accrued expenses $ 43,235 $ 30,690 Derivative instruments 555 1,430 Client liability account 8,982 4,005 Others 8,594 7,139 Accrued expenses and other current liabilities $ 61,366 $ 43,264 |
Non-current liabilities
Non-current liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Liabilities, Noncurrent [Abstract] | |
Non-current liabilities | Non-current liabilities Non-current liabilities consists of the following: As of December 31, 2017 December 31, 2016 Derivative instruments $ 322 $ 828 Unrecognized tax benefits 892 3,640 Deferred rent 8,176 7,237 Retirement benefits 3,377 1,977 Others 3,435 1,137 Non-current liabilities $ 16,202 $ 14,819 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2017 | |
Equity [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 No. 815. Changes in the fair values of contracts are recognized in other comprehensive income on the Company's consolidated balance sheet until the settlement of those contracts. The balances as of December 31, 2017 and 2016 are as follows: As of December 31, 2017 December 31, 2016 Cumulative currency translation adjustments $ (58,405 ) $ (77,299 ) Unrealized gain on cash flow hedges, net of taxes of $4,918 and $1,207 11,932 2,740 Retirement benefits, net of taxes of ($74) and ($342) 763 (498 ) Accumulated other comprehensive loss $ (45,710 ) $ (75,057 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC topic 820, “Fair Value Measurements and Disclosures ” ("ASC No. 820") defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk, including the Company’s own credit risk. ASC No. 820 establishes a three-level hierarchy of fair value measurements based on whether the inputs to those measurements are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The fair-value hierarchy requires the use of observable market data when available and consists of the following levels: • Level 1—Quoted prices for identical instruments in active markets; • Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets; and • Level 3—Valuations derived from valuation techniques in which one or more significant inputs are unobservable. 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 December 31, 2017 and 2016 . The table excludes accounts receivable, accounts payable and accrued expenses for which fair values approximate their carrying amounts. As of December 31, 2017 Level 1 Level 2 Level 3 Total Assets Money market and mutual funds* $ 162,906 $ — $ — $ 162,906 Derivative financial instruments — 18,298 — 18,298 Total $ 162,906 $ 18,298 $ — $ 181,204 Liabilities Derivative financial instruments $ — $ 877 $ — $ 877 Fair value of earn-out consideration — — 920 920 Total $ — $ 877 $ 920 $ 1,797 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 December 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 15 for further details. Fair value of earn-out consideration: The fair value measurement of earn-out consideration is determined using Level 3 inputs. The Company’s earn-out consideration represents a component of the total purchase consideration for its acquisition of Health Integrated. The measurement is calculated using unobservable inputs based on the Company’s own assessment of achievement of certain performance goals by Health Integrated during the 2018 calendar year. The Company estimated the fair value of the earn-out consideration to be $920 , based on expected probability method. |
Derivatives and Hedge Accountin
Derivatives and Hedge Accounting | 12 Months Ended |
Dec. 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 exchanges rates. The Company’s derivative financial instruments are largely forward foreign exchange contracts that are designated as effective hedges and that qualify as cash flow hedges under ASC No. 815. The Company had outstanding cash flow hedges totaling $300,757 as of December 31, 2017 and $218,545 as of December 31, 2016 . Changes in the fair value of these cash flow hedges are recorded as a component of accumulated other comprehensive income / (loss), net of tax, until the hedged transactions occurs. The Company early adopted ASU 2017-12, Derivative and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. Pursuant to this adoption, effective January 1, 2017, the resultant foreign exchange gain/(loss) are recorded along with the underlying hedged item in the same line of consolidated statements of income as either part of “Cost of revenue”, “General and administrative expenses”, “Selling and marketing expenses”, Depreciation and amortization”, as applicable. Prior to January 1, 2017, the resultant foreign exchange gain/(loss) on settlement of cash flow hedges and changes in the fair value of cash flow hedges deemed ineffective were recorded in “Foreign exchange gain, net” in the consolidated statements of income. 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 currency. These derivatives do not qualify as fair value hedges under ASC No. 815. Changes in the fair value of these derivatives are recognized in the consolidated statement 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, the Euro, South African ZAR and other local currencies in which it operates. Outstanding foreign currency forward contracts amounted to $98,967 and GBP 17,947 as of December 31, 2017 and amounted to $63,980 and GBP 17,974 as of December 31, 2016 . The Company estimates that approximately $10,411 of net derivative gains included in accumulated other comprehensive loss (“AOCI”) could be reclassified into earnings within the next twelve months based on exchange rates prevailing as of December 31, 2017 . At December 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. For hedging positions that are discontinued because the forecasted transaction is not expected to occur by the end of the originally specified period, any related amounts recorded in equity are reclassified to earnings. The following tables set forth the fair value of the foreign currency exchange contracts and their location on the consolidated financial statements: Derivatives designated as hedging instruments : As of Foreign currency exchange contracts December 31, 2017 December 31, 2016 Other current assets $ 10,892 $ 3,211 Other assets $ 7,360 $ 2,994 Accrued expense and other current liabilities $ 481 $ 1,430 Other non-current liabilities $ 322 $ 828 Derivatives not designated as hedging instruments : As of Foreign currency exchange contracts December 31, 2017 December 31, 2016 Other current assets $ 46 $ 113 Accrued expense and other current liabilities $ 74 $ — The following table set forth the effect of foreign currency exchange contracts in the consolidated statements of income and accumulated other comprehensive loss for the years ended December 31, 2017 and 2016 : Derivatives in hedging relationships Year ended December 31, Forward Exchange Contracts : 2017 2016 (Gain)/loss recognized in AOCI Derivatives in cash flow hedging relationships $ (19,802 ) $ (5,129 ) (Gain)/loss recognized in consolidated statements of income Derivatives in fair value hedging relationships $ (5,056 ) $ (4,790 ) Location and amount of (gain)/loss recognized in consolidated statements of income for cash flow and fair value hedging relationships Year ended December 31, 2017* 2016* Type of hedging relationships As per consolidated statements of income (Gain)/loss on foreign currency exchange contracts As per consolidated statements of income (Gain)/loss on foreign currency exchange contracts Cash flow hedging relationships Location in consolidated statements of income where (gain)/loss was reclassed from AOCI Cost of revenue $ 495,586 $ (5,465 ) $ — $ — General & administrative expenses $ 102,567 (960 ) $ — — Selling & marketing expenses $ 53,383 (103 ) $ — — Depreciation & amortization $ 38,549 (371 ) $ — — Foreign exchange gain, net $ (2,839 ) — $ (5,597 ) (2,669 ) $ (6,899 ) $ (2,669 ) Fair value hedging relationships Location in consolidated statements of income where (gain)/loss was recognized Foreign exchange gain, net $ (2,839 ) $ (5,056 ) $ (5,597 ) $ (4,790 ) $ (2,839 ) $ (5,056 ) $ (5,597 ) $ (4,790 ) * The Company early adopted ASU 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. Pursuant to this adoption, effective January 1, 2017, the Company recorded settlement gain/(loss) on cash flow hedges in cost of revenues and operating expenses, as applicable, in the consolidated statements of income. In prior periods, such gain/loss were included under "Foreign exchange gain, net" line in the consolidated statements of income. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings On October 24, 2014, the Company entered into a credit agreement that provided for a $50,000 revolving credit facility (the “Credit Facility”). On February 23, 2015, the Company increased the commitments under the Credit Facility by up to an additional $50,000 . The Credit Facility had a maturity date of October 24, 2019 and was voluntarily pre-payable from time to time without premium or penalty. On November 21, 2017, the Company prepaid all outstanding amounts, including accrued interest and fees, and terminated all commitments, under the Credit Agreement. The Credit Facility carried an effective interest rate of 2.99% per annum during the year ended December 31, 2017. On November 21, 2017, the Company and each of the Company’s wholly owned material domestic subsidiaries entered into a Credit Agreement with certain lenders, and Citibank, N.A. as Administrative Agent (the “New Credit Agreement”). The New Credit Agreement provides for a $200,000 revolving credit facility (the “New Credit Facility”) with an option to increase the commitments by up to $100,000 , subject to certain approvals and conditions as set forth in the New Credit Agreement. The New Credit Agreement also includes a letter of credit sub facility. The New Credit Facility has a maturity date of November 21, 2022 and is voluntarily pre-payable from time to time without premium or penalty. Borrowings under the New Credit Agreement were used to repay amounts outstanding under the Credit Facility and may otherwise be used for working capital and general corporate purposes, including permitted acquisitions. Depending on the type of borrowing, loans under the New Credit Agreement bear interest at a rate equal to the specified prime rate (alternate base rate) or adjusted LIBO rate, plus, in each case, an applicable margin. The applicable margin is tied to the Company’s total net leverage ratio and ranges from 0.00% to 0.75% per annum with respect to loans pegged to the specified prime rate, and 1.00% to 1.75% per annum on loans pegged to the adjusted LIBO rate. The revolving credit commitments under the New Credit Agreement are subject to a commitment fee which is also tied to the Company’s total net leverage ratio, and ranges from 0.15% to 0.30% per annum on the average daily amount by which the aggregate revolving commitments exceed the sum of outstanding revolving loans and letter of credit obligations. The New Credit Facility carried an effective interest rate of 3.5% per annum during the year ended December 31, 2017. Obligations under the New Credit Agreement are guaranteed by the Company’s material domestic subsidiaries and are secured by all or substantially all of the assets of the Company and our material domestic subsidiaries. The New Credit Agreement contains affirmative and negative covenants, including, but not limited to, restrictions on the ability to incur indebtedness, create liens, make certain investments, make certain dividends and related distributions, enter into, or undertake, certain liquidations, mergers, consolidations or acquisitions and dispose of assets or subsidiaries. In addition, the New Credit Agreement contains a covenant to not permit the interest coverage ratio or the total net leverage ratio, both as defined 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 more than 3.0 to 1.0, respectively. At December 31, 2017, the Company was in compliance with all financial and non - financial covenants listed under the New Credit Agreement. As of December 31, 2017, we had an outstanding debt of $60,000 of which $10,000 is expected to be repaid within the next twelve months and is included under "current portion of long-term borrowings" and the balance of $50,000 is included under "long-term borrowings" in the consolidated balance sheets. In connection with the New Credit Agreement, the Company incurred issuance cost of $790 which are deferred and amortized as an adjustment to interest expense over the term of the New Credit Facility. The unamortized debt issuance costs as of December 31, 2017 and December 31, 2016 was $773 and $272 , respectively and is included under "other current assets" and “other assets” in the consolidated balance sheets. Borrowings also includes structured payables which are in the nature of debt, amounting to $709 , of which $318 and $391 is included under "current portion of long-term borrowings" and "long-term borrowings", respectively in the consolidated balance sheet as of December 31, 2017. |
Capital Structure
Capital Structure | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Capital Structure | Capital Structure Common Stock The Company has one class of common stock outstanding. During the years ended December 31, 2017 and 2016 , the Company acquired 69,154 and 17,676 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 $3,267 and $807 , respectively. The weighted average purchase price per share of $47.24 and $45.65 , 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 additional 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 year ended December 31, 2017 , the Company purchased 761,154 shares of its common stock for an aggregate purchase price of approximately $40,187 , including commissions, representing an average purchase price per share of $52.80 under the 2014 and 2017 Repurchase program. During the year ended December 31, 2016 , the Company purchased 364,056 shares of its common stock for an aggregate purchase price of approximately $17,396 , including commissions, representing an average purchase price per share of $47.78 under the 2014 Repurchase program. Repurchased shares have been recorded as treasury shares and will be held until the Board of Directors designates that these shares be retired or used for other purposes. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 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. The benefit obligation has been measured as of December 31, 2017 . The following table sets forth the activity and the funded status of the Gratuity Plans and the amounts recognized in the Company’s consolidated financial statements at the end of the relevant periods: As of December 31, 2017 December 31, 2016 Change in projected benefit obligation: Projected benefit obligation at the beginning of the year $ 9,711 $ 7,909 Service cost 1,933 1,601 Interest cost 645 599 Benefits paid (1,001 ) (837 ) Actuarial (gain)/loss (1,471 ) 677 Acquisition — 47 Effect of exchange rate changes 488 (285 ) Projected benefit obligation at the end of the year $ 10,305 $ 9,711 Unfunded amount–non-current $ 3,377 $ 1,977 Unfunded amount–current 13 2,094 Total accrued liability $ 3,390 $ 4,071 Accumulated benefit obligation $ 7,022 $ 6,533 Net gratuity cost includes the following components: Year ended December 31, 2017 2016 2015 Service cost $ 1,933 $ 1,601 $ 1,638 Interest cost 645 599 550 Expected return on plan assets (401 ) (416 ) (385 ) Amortization of Actuarial loss 256 90 211 Net gratuity cost $ 2,433 $ 1,874 $ 2,014 The components of accumulated other comprehensive gain/(loss) (net of tax) that have not been recognized as components of net gratuity cost in the statement of income as of December 31, 2017 and 2016 are as follows: December 31, 2017 2016 Net actuarial gain/(loss) $ 697 $ (831 ) Net prior service cost (8 ) (9 ) Deferred taxes 74 342 Accumulated other comprehensive gain/(loss), net of tax $ 763 $ (498 ) The amount in accumulated other comprehensive gain that is expected to be recognized as a component of net periodic benefit cost over the next fiscal year is $161 . The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost are: December 31, 2017 2016 2015 Discount rate 7.0 % 6.8 % 7.8 % Rate of increase in compensation levels 9.1 % 9.2 % 8.4 % Expected long term rate of return on plan assets per annum 8.3 % 9.0 % 9.0 % The Company evaluates these assumptions annually based on its long-term plans of growth and industry standards. The discount rates are based on current market yields on government securities adjusted for a suitable risk premium. Expected benefit payments during the year ending December 31, 2018 $ 2,011 2019 $ 1,772 2020 $ 1,531 2021 $ 1,302 2022 $ 1,029 2023 to 2027 $ 3,206 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 7.9% on these Gratuity Plans for the period ended December 31, 2017. Change in Plan Assets Plan assets at January 1, 2016 $ 4,923 Actual return 450 Employer contribution 1,242 Benefits paid* (837 ) Effect of exchange rate changes (138 ) Plan Assets at December 31, 2016 $ 5,640 Actual return 202 Employer contribution 1,700 Benefits paid* (1,001 ) Effect of exchange rate changes 374 Plan assets at December 31, 2017 $ 6,915 * All benefits payments were made through the plan assets during the year ended December 31, 2017 and December 31, 2016. The Company maintains several 401(k) Plans (the “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 amounted to $2,709 , $2,383 and $1,907 during the years ended December 31, 2017 , 2016 and 2015 , respectively. During the years ended December 31, 2017 , 2016 and 2015 , the Company contributed $7,115 , $6,306 and $5,753 respectively, for various defined contribution plans on behalf of its employees in India, the Philippines, Bulgaria, Romania, the Czech Republic, South Africa, Colombia, and Singapore. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Leases | Leases The Company finances its use of certain motor vehicles and other equipment under various lease arrangements provided by financial institutions. Future minimum lease payments under these capital leases as of December 31, 2017 are as follows: During the next twelve months ending December 31, 2018 $ 330 2019 201 2020 127 2021 64 Total minimum lease payments 722 Less: amount representing interest 124 Present value of minimum lease payments 598 Less: current portion 267 Long term capital lease obligation $ 331 The Company conducts its operations using facilities leased under operating lease agreements that expire at various dates. Future minimum lease payments under such agreements expiring after December 31, 2017 are set forth below: During the next twelve months ending December 31, 2018 $ 20,850 2019 17,802 2020 14,840 2021 12,888 2022 10,234 2023 and thereafter 28,273 Future minimum lease payment $ 104,887 Rent expense 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 cancelable and non-cancelable lease period determined under ASC topic 840, "Leases": Year ended December 31, 2017 2016 2015 Rent expense $ 24,015 $ 21,382 $ 19,943 Deferred rent As of December 31, 2017 December 31, 2016 Cancelable and non-cancelable operating leases $ 8,959 $ 7,915 Deferred rent is included under "Accrued expenses and other current liabilities" and "Non-current liabilities" in the consolidated balance sheets. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income before income taxes consist of the following: Year ended December 31, 2017 2016 2015 Domestic $ 4,626 $ 12,652 $ 25,045 Foreign 80,408 71,232 50,731 $ 85,034 $ 83,884 $ 75,776 The income tax expense consists of the following: Year ended December 31, 2017 2016 2015 Current provision: Domestic $ 17,407 $ 7,107 $ 9,951 Foreign 18,008 18,428 12,022 $ 35,415 $ 25,535 $ 21,973 Deferred provision/(benefit): Domestic $ 2,618 $ (2,506 ) $ 3,041 Foreign (1,887 ) (878 ) (803 ) $ 731 $ (3,384 ) $ 2,238 Income tax expense $ 36,146 $ 22,151 $ 24,211 The effective income tax rate differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes approximately as follows: Year ended December 31, 2017 2016 2015 Expected tax expense $ 29,762 $ 29,361 $ 26,521 Change in valuation allowance (21 ) 22 19 Impact of tax holiday (4,396 ) (4,027 ) (2,991 ) Foreign tax rate differential (2,616 ) (2,716 ) (2,797 ) Deferred tax (benefit)/provision (1,887 ) (878 ) (803 ) Unrecognized tax benefits and interest (3,905 ) 495 324 State taxes, net of Federal taxes 339 202 1,327 Non-deductible expenses 825 144 26 Prior year tax expense/(benefit) — — 2,450 US Tax Reform Act impact 29,185 — — Excess tax benefit for stock-based compensation (9,797 ) — — Other (1,343 ) (452 ) 135 Tax expense $ 36,146 $ 22,151 $ 24,211 The effective income tax rate was 42.5% and 26.4% during the year ended December 31, 2017 and 2016 , respectively. The effective tax rate for the year ended December 31, 2017 was significantly impacted by recording the impact of the Tax Cuts and Jobs Act (the “Tax Reform Act”), enacted on December 22, 2017 by the U.S. government. The Tax Reform Act makes broad and complex changes to the U.S. tax code that has affected our fiscal year ended December 31, 2017 , including, but not limited to (1) reducing the U.S. federal corporate tax rate from 35.0% to 21.0% effective January 1, 2018 and (2) implementing a modified territorial tax system that includes a one-time transition tax on the mandatory deemed repatriation of accumulated earnings and profits (“E&P”) of foreign subsidiaries that is payable over eight years. The Company has re-measured its net deferred tax assets and liabilities using the enacted Federal Tax Rate that will apply when these amounts are expected to reverse. The effect of the re-measurement of $1,949 is reflected entirely in the current period that includes the enactment date and is allocated directly to income tax expense from continuing operations. The Deemed Repatriation Transition Tax (the “Transition Tax”) is a tax on previously untaxed accumulated E&P of certain of our foreign subsidiaries. To determine the amount of the Transition Tax, the Company must determine, in addition to other factors, the amount of post-1986 E&P of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. The Company was able to make a reasonable estimate and recorded a provisional Transition Tax obligation of $27,236 . On December 22, 2017, the SEC issued Staff Accounting Bulletin (“SAB 118”), which provides guidance on accounting for tax effects of the Tax Reform Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Reform Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Reform Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Reform Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate to be included in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provision of the tax laws that were in effect immediately before the enactment of the Tax Reform Act. While the Company was able to make reasonable estimates of the impact of the reduction in corporate rate and the deemed repatriation transition tax, the final impact of the Tax Reform Act may differ from these estimates, due to, among other things, changes in our interpretations and assumptions, additional guidance that may be issued by the I.R.S., and actions the Company may take. The Company continues to gather additional information to determine the final impact. Company also derive benefit from a corporate tax holiday in the Philippines for our operations centers established there over the last several years. The tax holiday expired for two of our centers in 2014 and in 2016 and will expire over the next few years for other centers, which may lead to an increase in our overall tax rate. Following the expiry of the tax exemption, income generated from centers in the Philippines will be taxed at the prevailing annual tax rate, which is currently 5.0% on gross income. Certain operations centers in India, which were established in Special Economic Zones (“SEZs”), are eligible for tax incentives until 2025. These operations centers are eligible for a 100% income tax exemption for first five years of operations and 50% exemption for a period of five years thereafter. The diluted earnings per share effect of the tax holiday is $0.13 , $0.12 and $0.09 for the years ended December 31, 2017 , 2016 and 2015 , respectively. The components of the deferred tax balances as of December 31, 2017 and 2016 are as follows: As of December 31, 2017 December 31, 2016 Deferred tax assets: Tax credit carry forward $ 1,474 $ 4,806 Depreciation and amortization 2,183 3,765 Stock-based compensation 7,647 10,385 Accrued employee costs and other expenses 3,673 5,130 Net operating loss carry forwards 2,068 1,856 Unrealized exchange loss 252 2,099 Deferred rent 2,064 1,307 Others 1,007 484 $ 20,368 $ 29,832 Valuation allowance (108 ) (454 ) Deferred tax assets $ 20,260 $ 29,378 Deferred tax liabilities: Unrealized exchange gain $ 5,069 $ 1,414 Intangible assets 4,648 13,165 Others 1,958 — Deferred tax liabilities: $ 11,675 $ 14,579 Net deferred tax assets $ 8,585 $ 14,799 Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of assets and liabilities and their respective tax bases and operating loss carry forwards. At December 31, 2017 and 2016 , the Company performed an analysis of the deferred tax asset valuation allowance for net operating loss carry forward for its domestic entities. Based on this analysis, the Company continues to carry a valuation allowance on the deferred tax assets on certain net operating loss carry forwards. Accordingly, the Company had recorded a valuation allowance of $20 and $351 as of December 31, 2017 and 2016 , respectively. The Company also recorded a valuation allowance of $88 and $103 related to tax credit carry forward as of December 31, 2017 and 2016 , respectively. As a result of the multiple acquisitions over the last few years, the Company acquired federal and state net operating losses in the United States. As of December 31, 2017 and 2016 , the Company has federal net operating loss carry forwards of approximately of $1,554 and $4,052 , respectively, which expire through various years until 2032 . The Company’s federal net operating loss carry forwards are subject to certain annual utilization limitations under Section 382 of the United States Internal Revenue Code. The Company also has state and local net operating loss carry forwards of varying amounts, which are subject to limitations under the applicable rules and regulations of those taxing jurisdictions. The Company estimates that it will be able to utilize all of the losses before their expiration. At December 31, 2017 , undistributed earnings of the Company’s foreign subsidiaries amounted to approximately $376,649 . Not all of the undistributed earnings may be available for repatriation due to foreign legal restrictions that require minimum reserves to be maintained in those Countries and additional taxes that could be imposed on the distribution of those earnings. U.S. federal deferred income taxes on these earnings are not required because under the Tax Reform Act such earnings have been subject to U.S. federal tax as a result of the mandatory repatriation provision. Additionally, such earnings will not be subject to U.S. federal tax when actually distributed as provided in the Tax Reform Act, except that certain foreign jurisdictions may impose a tax on such distributions. The Company’s income tax expense also includes the impact of provisions established for uncertain income tax positions determined in accordance with ASC topic 740, “ Income Taxes ” , as well as the related net interest. Tax exposures can involve complex issues and may require an extended resolution period. Although the Company believes that it has adequately reserved for its uncertain tax positions, no assurance can be given that the final tax outcome of these matters will not be different. The Company adjusts these reserves in light of changing facts and circumstances, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters differs from the amounts recorded, such differences will impact the income tax expense in the period in which such determination is made. The following table summarizes the activity related to the gross unrecognized tax benefits from January 1, 2017 through December 31, 2017 Balance as of January 1, 2017 $ 3,087 Increases related to prior year tax positions — Decreases related to prior year tax positions (2,520 ) Increases related to current year tax positions 169 Decreases related to current year tax positions — Effect of exchange rate changes 88 Balance as of December 31, 2017 $ 824 The unrecognized tax benefits as of December 31, 2017 of $824 , if recognized, would impact the effective tax rate. The Company has recognized interest of nil and $315 during the years ended December 31, 2017 and 2016 , respectively, which is included in the income tax expense in the consolidated statements of income. As of December 31, 2017 and 2016 , the Company has accrued interest and penalties of $68 and $1,553 relating to unrecognized tax benefits. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation On June 19, 2015, at the Company’s 2015 Annual Meeting of Stockholders, the Company's stockholders approved the 2015 Plan, which amended and restated the 2006 Omnibus Award Plan to, among other things, increased the total number of shares reserved for grants of awards under the 2015 Plan by 1,700,000 shares. As of December 31, 2017, the Company had 1,509,976 shares available for grant under the 2015 Plan (includes 145,193 shares against vested performance-based restricted stock units for which the underlying common stock was issued subsequent to December 31, 2017). Under the 2015 Plan, the Compensation Committee (the “Committee”) may grant awards of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, stock bonus awards, performance based compensation awards (including cash bonus awards and market condition based awards) or any combination of the foregoing. The Committee determines which employees are eligible to receive the equity awards, the number of equity awards to be granted, the exercise price, the vesting period and the exercise period. The vesting period for the equity award issued is determined on the date of the grant and is non-transferable during the life of the equity award. The majority of options expire ten years from the date of grant. The equity awards generally vest proportionally over a period of four years from the date of grant, unless specified otherwise. The Company applies the provisions of ASC 718, to account for its stock based compensation, using the modified prospective method of transition. Under the provisions of this guidance, the estimated fair value of stock-based awards granted under stock incentive plans is recognized as compensation expense over the vesting period. The following costs related to the Company’s stock-based compensation plan are included in the consolidated statements of income: Year ended December 31, 2017 2016 2015 Cost of revenue $ 4,600 $ 3,664 $ 2,895 General and administrative expenses 10,363 8,372 6,077 Selling and marketing expenses 8,078 7,734 7,075 Total $ 23,041 $ 19,770 $ 16,047 Stock Options The fair value of each stock option granted to employees is estimated on the date of grant using the Black-Scholes option-pricing model. The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option valuation model. All stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods. The Company accounts for the forfeitures as and when the actual forfeitures occur. 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 (552,339 ) 15.50 Forfeited — — Outstanding at December 31, 2017 259,563 $ 18.03 $ 10,985 2.76 Vested and exercisable at December 31, 2017 259,563 $ 18.03 $ 10,985 2.76 The unrecognized compensation cost for unvested options as of December 31, 2017 is nil . The Company did not grant any options during the years ended December 31, 2017, 2016 and 2015. The total grant date fair value of options vested during the years ended December 31, 2017 , 2016 and 2015 was nil , $706 and $1,228 , respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2017 , 2016 and 2015 was $23,027 , $12,911 and $4,413 , respectively. The following table summarizes the status of the Company’s stock options outstanding, vested and exercisable at December 31, 2017 : Options Outstanding, Vested and Exercisable Range of Exercise Prices Shares Weighted- Average Exercise Price $8.00 to $15.00 98,784 $ 9.64 $15.01 to $21.00 36,516 19.05 $21.01 to $28.00 124,263 24.40 Total 259,563 $ 18.03 Restricted Stock and Restricted Stock Units An award of restricted stock is a grant of shares subject to conditions and restrictions set by the Committee. The grant or the vesting of an award of restricted stock may be conditioned upon service to the Company or its affiliates or upon the attainment of performance goals or other factors, as determined in the discretion of the Committee. The Committee may also, in its discretion, provide for the lapse of restrictions imposed upon an award of restricted stock. Holders of an award of restricted stock may have, with respect to the restricted stock granted, all of the rights of a stockholder, including the right to vote and to receive dividends. The Committee is authorized to award restricted stock units to participants. The Committee establishes the terms, conditions and restrictions applicable to each award of restricted stock units, including the time or times at which restricted stock units will be granted or vested and the number of units to be covered by each award. The terms and conditions of each restricted stock award will be reflected in a restricted stock unit agreement. Any cash or in-kind dividends paid with respect to unvested shares of restricted stock and restricted stock units are withheld by the Company and paid to the holder of such shares of restricted stock, without interest, only if and when such shares of restricted stock and restricted stock units vest. Any unvested shares of restricted stock and restricted stock units are immediately forfeited without consideration upon the termination of holder’s employment with the Company or its affiliates. Accordingly, the Company’s unvested restricted stock and restricted stock units do not include non-forfeitable rights to dividends or dividend equivalents and are therefore not considered as participating securities for purposes of earnings per share calculations pursuant to the two-class method. Restricted stock and restricted stock unit activity under the Company’s stock plans is shown below: Restricted Stock Restricted Stock Units Number Weighted- Average Fair Value Number Weighted- Average Fair Value December 31, 2016 (1) 246,940 $ 42.42 1,256,288 $ 37.38 Granted — — 391,927 48.02 Vested (60,168 ) 42.30 (489,176 ) 34.52 Forfeited (4,505 ) 35.11 (112,040 ) 41.50 December 31, 2017 (1) 182,267 $ 42.64 1,046,999 $ 42.26 (1) Excludes 11,058 and 19,874 restricted stock units vested during the years ended December 31, 2017 and 2016 , respectively. As of December 31, 2017 and 2016 restricted stock units vested for which the underlying common stock is yet to be issued are 146,112 and 135,054 , respectively. The fair value of restricted stock and restricted stock units is generally the market price of the Company’s shares on the date of grant. As of December 31, 2017 , unrecognized compensation cost of $34,463 is expected to be expensed over a weighted average period of 2.47 years . The weighted-average fair value of restricted stock and restricted stock units granted during the years ended December 31, 2017 , 2016 and 2015 was $48.02 , $48.97 and $35.18 , respectively. The total grant date fair value of restricted stock and restricted stock units vested during the years ended December 31, 2017 , 2016 and 2015 was $19,430 , $10,761 and $12,620 , respectively. Performance Based Stock Awards Under the 2015 Plan, the Company grants performance-based restricted stock units (“PRSUs”) to executive officers and other specified employees. 50% of the PRSUs cliff vest at the end of a three -year period based on a revenue target for the third year (“PUs”). However, for PUs granted in 2015, up to one-third of the PUs may be earned based on the Company’s revenue performance in each of the first two years against annual revenue targets in those years. The total amount of PUs that the recipient earns based on these performance criteria will be the greater of (i) the PUs earned in the year of vesting and (ii) the sum of the earned PUs during the first two years. The remaining 50% is based on a market condition (“MUs”) that is contingent on the Company meeting or exceeding the total shareholder return relative to a group of peer companies specified under the program measured over a three -year performance period. The award recipient may earn up to two hundred percent ( 200% ) of the PRSUs granted based on the actual achievement of targets. The fair value of each PU was determined based on the market price of one common share on the date of grant, and the associated compensation expense was calculated on the basis that performance targets at 100% of the PUs is probable of being achieved. The compensation expense for the PUs is recognized on a straight-line basis over the service period, which is through the end of the third year. Over this period, the number of shares that will be issued will be adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized as an expense will be based on a comparison of the final performance metrics to the specified targets. The grant date fair value for the MUs was determined using a Monte Carlo simulation model and the related compensation expense will be expensed on a straight-line basis over the vesting period. All compensation expense related to the MUs will be recognized if the requisite performance period is fulfilled, even if the market condition is not achieved. The Monte Carlo simulation model simulates a range of possible future stock prices and estimates the probabilities of the potential payouts. This model also incorporates the following ranges of assumptions: • The historical volatilities are used over the most recent three-year period for the components of the peer group. • The risk-free interest rate is based on the U.S. Treasury rate assumption commensurate with the three-year performance period • Since the plan stipulates that the awards are based upon the TSR of the Company and the components of the peer group, it is assumed that the dividends get reinvested in the issuing entity on a continuous basis. • The correlation coefficients are used to model the way in which each entity tends to move in relation to each other are based upon the price data used to calculate the historical volatilities. The fair value of each MU granted to employees is estimated on the date of grant using the following weighted average assumptions: Year ended December 31, 2017 2016 2015 Dividend yield — — — Expected life (years) 2.86 2.85 2.84 Risk free interest rate 1.40 % 0.88 % 0.98 % Volatility 23.8 % 28.0 % 30.3 % Performance restricted stock unit activity under the Company’s stock plans is shown below: Revenue Based PRSUs Market Condition Based PRSUs Number Weighted Avg Fair Value Number Weighted Avg Fair Value Outstanding at December 31, 2016 115,174 $ 41.70 215,171 $ 47.42 Granted 62,113 47.73 62,100 54.10 Adjustment upon final determination of level of performance goal achievement* (9,320 ) 34.75 154,513 39.60 Vested (45,192 ) 34.75 (309,026 ) 39.60 Forfeited (9,585 ) 44.35 (9,584 ) 58.85 Outstanding at December 31, 2017 113,190 $ 48.13 113,174 $ 60.80 * Represents adjustment of shares issued in respect of PUs and MUs granted in February 2015 and MUs granted in April 2015 upon certification of the level of achievement of the performance targets for such awards for which the underlying common stock was issued subsequent to December 31, 2017. As of December 31, 2017 , unrecognized compensation cost of $6,810 is expected to be expensed over a weighted average period of 1.76 years . Subsequent to December 31, 2017, the Company granted approximately 458,000 PRSUs and restricted stock units to its employees. |
Related Party Disclosures
Related Party Disclosures | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Disclosures | 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 $1,748 for the year ended December 31, 2017 for services provided. At December 31, 2017, the Company had an account receivable of $140 related to these services. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Fixed Asset Commitments At December 31, 2017 , the Company has committed to spend approximately $9,500 under agreements to purchase fixed assets. This amount is net of capital advances paid in respect of these purchases. Other Commitments Certain units of the Company’s Indian subsidiaries were established as 100% Export-Oriented units or under the Software Technology Parks of India (“STPI”) scheme promulgated by the Government of India. These units are exempt from customs, central excise duties, and levies on imported and indigenous capital goods, stores, and spares. The Company has undertaken to pay custom duties, service taxes, levies, and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores and spares consumed duty free, in the event that certain terms and conditions are not fulfilled. The Company’s management believes, however, that these units have in the past satisfied and will continue to satisfy the required conditions. The Company’s operations centers in the Philippines are registered with the Philippine Economic Zone Authority (“PEZA”). The registration provides the Company with certain fiscal incentives on the import of capital goods and requires Exl Philippines to meet certain performance and investment criteria. The Company’s management believes that these centers have in the past satisfied and will continue to satisfy the required criteria. Contingencies U.S. and Indian transfer pricing regulations require that any international transaction involving associated enterprises be at an arm’s-length price. Accordingly, the Company determines the appropriate pricing for the international transactions among its associated enterprises on the basis of a detailed functional and economic analysis involving benchmarking against transactions among entities that are not under common control. The tax authorities have jurisdiction to review this arrangement and in the event that they determine that the transfer price applied was not appropriate, the Company may incur increased tax liability, including accrued interest and penalties. The Company is currently involved in disputes with the Indian tax authorities over the application of certain of its transfer pricing policies for some of its subsidiaries. Further, the Company and a U.S. subsidiary are engaged in tax litigation with the income-tax authorities in India on the issue of permanent establishment. The aggregate amount demanded by Income tax authorities (net of advance payments, if any) from the Company related to its transfer pricing issues for tax years 2003 to 2014 and its permanent establishment issues for tax years 2003 to 2007 as of December 31, 2017 and 2016 is $18,065 and $17,963 , respectively, of which the Company has made payments or provided bank guarantee to the extent $8,573 and $8,640 , respectively. Amounts paid as deposits in respect of such assessments aggregating to $6,499 and $6,690 as of December 31, 2017 and 2016 , respectively, are included in “Other assets” and amounts deposited for bank guarantees aggregating to $2,074 and $1,950 as of December 31, 2017 and 2016 , respectively, are included in “Restricted cash” in the non-current assets section of the Company’s consolidated balance sheets. Based on advice from its Indian tax advisors, the facts underlying the Company’s position and its experience with these types of assessments, the Company believes that the probability that it will ultimately be found liable for these assessments is remote and accordingly has not accrued any amount with respect to these matters in its consolidated financial statements. The Company does not expect any impact from these assessments on its future income tax expense. It is possible that the Company might receive similar orders or assessments from tax authorities for subsequent years. Accordingly even if these disputes are resolved, the Indian tax authorities may still serve additional orders or assessments. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Preparation | The accompanying consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“US GAAP”). |
Principles of Consolidation | The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of ExlService Holdings and all of its subsidiaries and includes the Company's share in the results of its associates. Accounting policies of the respective individual subsidiary and associate are aligned wherever necessary, so as to ensure consistency with the accounting policies that are adopted by the Company under US GAAP. The standalone financial statements of subsidiaries are fully consolidated on a line-by-line basis. Intragroup balances and transactions, and income and expenses arising from intra-group transactions, are eliminated while preparing the said financial statements. The un-realized gains resulting from intra-group transactions are also eliminated. Similarly, the un-realized losses are eliminated, unless the transaction provides evidence as to impairment of the asset transferred. The Company’s investments in equity affiliate are initially recorded at cost and any excess cost over proportionate share of the fair value of the net assets of the investee at the acquisition date is recognized as goodwill. The proportionate share of net income or loss of the investee is recognized in the consolidated statements of income. 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 operation 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 the years ended December 31, 2017, 2016 and 2015 was insignificant and are included under general and administrative expenses in the consolidated statements of income. |
Use of Estimates | The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the related amount of revenue and expenses 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 account receivables, recoverability of service tax receivables, assets and obligations related to employee benefit plans, deferred tax valuation allowances, income-tax uncertainties and other contingencies, valuation of derivative financial instruments, assumptions used to calculate stock-based compensation expense, depreciation and amortization periods, purchase price allocation, recoverability of long-term assets including goodwill and intangibles, and estimates to complete fixed price contracts. In accordance with its policy, the Company reviews the estimated useful lives of its property and equipment on an ongoing basis. |
Foreign Currency Translation | The functional currency of each entity in the Company is its respective local country currency which is also the currency of the primary economic environment in which it operates except for the entities in Mauritius which use the U.S. dollar as its functional currency. Transactions in foreign currencies are initially recorded into functional currency at the rates of exchange prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are remeasured into functional currency at the rates of exchange prevailing at the balance sheet date. Non-monetary assets and liabilities are remeasured to the functional currency of the subsidiary at historical exchange rates. All transaction foreign exchange gains and losses are recorded in the accompanying consolidated statements of income. The assets and liabilities of the subsidiaries for which the functional currency is other than the U.S. dollar are translated into U.S. dollars, the reporting currency, at the rate of exchange prevailing on the balance sheet date. Revenues and expenses are translated into U.S. dollars at the exchange rates prevailing on the last business day of each month, which approximates the average monthly exchange rate. Resulting translation adjustments are included in accumulated other comprehensive loss in the consolidated balance sheet. |
Revenue Recognition | The Company derives its revenues from operations management and analytics services. Revenues from operations management services are recognized primarily on a time-and-material based, transaction-based, outcome-based, cost-plus and fixed-price basis; revenues from analytics services are recognized primarily on a time-and-material and fixed price basis. The services provided by the Company under its contracts with the customer generally contain one unit of accounting except for the software and related services contracts involving implementation services and post contract maintenance services. In such multiple element arrangements, revenue is allocated to maintenance based on the price charged when that element is sold separately (vendor specific objective evidence or “VSOE”). Revenues are recognized when the four basic criteria are met; persuasive evidence of an arrangement exists, the sales price is fixed or determinable, services have been performed and collection of amounts billed is reasonably assured. Revenues under time-and-material, transaction and outcome-based contracts are recognized as the services are performed. When the terms of the client contract specify service level parameters that must be met (such as turnaround time or accuracy), the Company monitors such service level parameters to determine if any service credits or penalties have been incurred. Revenues are recognized net of any penalties or service credits that are due to a client. Revenue from Analytics services including modeling, targeting and designing of campaigns and mail marketing including email marketing and other digital solutions is typically recognized on delivery of such campaigns. In respect of arrangements involving subcontracting, in part or whole, of the assigned work, the Company evaluates revenues to be recognized under Accounting Standard Codification ("ASC") topic 605-45, “Revenue recognition - Principal agent considerations”. Revenues for Company’s fixed-price contracts are recognized using the proportional performance method when the pattern of performance under the contracts can be reasonably determined. The Company estimates the proportional performance of a contract by comparing the actual number of hours or days worked to the estimated total number of hours or days required to complete each engagement. The use of the proportional performance method requires significant judgment relative to estimating the number of hours or days required to complete the contracted scope of work, including assumptions and estimates relative to the length of time to complete the project and the nature and complexity of the work to be performed. The Company regularly monitors its estimates for completion of a project and record changes in the period in which a change in an estimate is determined. If a change in an estimate results in a projected loss on a project, such loss is recognized in the period in which it is first identified. Revenues from the Company's software and related services contracts, which are not significant, are primarily related to maintenance renewals or incremental license fees for additional users. Maintenance revenues are generally recognized on a straight-line basis over the annual contract term. Fees for incremental license fees without any associated services are recognized upon delivery of the related incremental license. To a lesser extent, software and related services contracts may contain software license, related services and maintenance elements as a multiple element arrangement. In such cases, revenue is allocated to maintenance based on the price charged when that element is sold separately (vendor specific objective evidence or “VSOE”). Services related to software licenses are evaluated to determine whether those services are significant or essential to the functionality of the software. When services are significant or considered essential, revenues related to license fee and services are recognized as the services are performed using the percentage of completion method of accounting, under which the total value of revenue is recognized on the basis of the percentage that each contract’s total labor hours to date bears to the total expected labor hours (input method). The Company accrues revenues for services rendered between the last billing date and the balance sheet date. Accordingly, its accounts receivable include amounts for services, as unbilled accounts receivables, that the Company has performed and for which an invoice has not yet been issued to the client. The Company defers the revenues and related cost of revenue while a process is under migration and recognizes such revenues and costs ratably over the period during which the related services are expected to be performed. The deferred costs are limited to the amounts of the deferred revenues. Deferred revenue also includes the amount for which the services have been rendered but the other conditions of revenue recognition are not met, for example where the Company does not have the persuasive evidence of the arrangements. Reimbursements of out-of-pocket expenses received from clients are included as part of revenues. |
Cash and Cash Equivalents and Restricted Cash | The Company considers all highly liquid investments purchased with an original maturity of ninety days or less to be cash equivalents. Pursuant to the Company’s investment policy, surplus funds are invested in highly-rated debt mutual funds, money market accounts and time deposits to reduce its exposure to market risk with regard to these funds. Restricted cash represents amounts on deposit with banks against bank guarantees issued through banks for equipment imports and for demands against pending income tax assessments (see Note 23 for details). These deposits with banks have maturity dates before and after December 31, 2018. Restricted cash also includes client funds held in dedicated bank accounts. |
Investments | The Company’s investments consist of time deposits with financial institutions which are valued at cost and approximate fair value. Interest earned on such investments is included in interest income. Investments with original maturities greater than ninety days but less than twelve months are classified as short-term investments. Investments with maturities greater than twelve months from the balance sheet date are classified as long-term investments. The Company's mutual fund investments are in debt and money market funds which invest in instruments of various maturities in India. These investments are accounted for in accordance with the fair value option under ASC topic 825-10 and change in fair value is included in interest and other income. The fair value is represented by original cost on the acquisition date and the net asset value (“NAV”) as quoted, at each reporting period. Gain or loss on the disposal of these investments is calculated using the weighted average cost of the investments sold or disposed and is included in interest and other income. |
Accounts Receivable | Accounts receivable are recorded net of allowances for doubtful accounts. Allowances for doubtful accounts are established through the evaluation of the accounts receivable aging and prior collection experience, current market conditions, clients’ financial condition and the amount of receivables in dispute to ascertain the ultimate collectability of these receivables. Accounts receivable include unbilled accounts receivable which represent revenues on contracts to be billed, in subsequent periods, as per the terms of the related contracts. |
Property and equipment | Property and equipment are stated at cost less accumulated depreciation and impairment. Equipment held under capital leases are capitalized at the commencement of the lease at the lower of present value of minimum lease payments at the inception of the leases or its fair value. Advances paid towards acquisition of property and equipment and the cost of property and equipment not yet placed in service before the end of the reporting period are classified as capital work in progress. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Depreciation and amortization on equipment held under capital leases and leasehold improvements are computed using the straight-line method over the shorter of the assets’ estimated useful lives or the lease term. (in years) Assets: Network equipment and computers 3-5 years Software 3-5 years Leasehold improvements 3-8 years Office furniture and equipment 3-8 years Motor vehicles 2-5 years Buildings 30 years |
Software Development Costs | Costs incurred for developing software or enhancements to the existing software products to be sold and/or used for internal use are capitalized once preliminary project stage is complete and technological feasibility, as defined in ASC 985 and ASC 350, has been established, i.e., it is probable that the software will be used as intended. Technological feasibility is established upon completion of a detailed design program or, in its absence, completion of a working model. Costs that qualify as software development costs include (i) external direct costs of materials and services utilized in developing or obtaining computer software, (ii) compensation and related benefits for employees who are directly associated with the software project, and (iii) interest costs (if any) incurred while developing the computer software. The capitalized costs are amortized on a straight-line basis over the estimated useful life. Costs associated with preliminary project stage activities, training, maintenance and all post-implementation stage activities are expensed as incurred. |
Business Combinations, Goodwill and Other Intangible Assets | ASC topic 805, “Business Combinations”, requires that the purchase method of accounting be used for all business combinations. The guidance specifies criteria as to intangible assets acquired in a business combination that must be recognized and reported separately from goodwill. Contingent consideration is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is re-measured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. These fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in the market. Under ASC topic 350, “Intangibles-Goodwill and Other”, all assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition related costs are expensed as incurred under general and administrative expenses. Goodwill represents the cost of the acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis, relying on a number of factors including operating results, business plans and estimated future cash flows of the reporting units to which it is assigned. Recoverability of goodwill is evaluated using a two-step process. The first step involves a comparison of the fair value of a reporting unit with its carrying value. The fair value of the reporting unit is measured by discounting estimated future cash flows. If the carrying amount of the reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the process involves a comparison of the implied fair value and carrying value of the goodwill of that reporting unit. If the carrying value of the goodwill exceeds the implied fair value of the goodwill, an impairment loss is recognized in an amount equal to the excess. Goodwill of a reporting unit is tested for impairment annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Intangible assets acquired in a business combination are initially valued and recognized at fair market value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over the estimated useful lives and are reviewed for impairment, if indicators of impairment arise. The evaluation of impairment is based upon a comparison of the carrying amount of the intangible asset to its fair value, which is calculated using the estimated future undiscounted net cash flows expected to be generated by the asset. If the fair value of the intangible assets is less than the carrying amount of the asset, the asset is considered impaired and an impairment expense is recognized equal to any shortfall in the current period. The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method: Customer relationships 3-15 years Leasehold benefits 3-8 years Developed technology 5-10 years Non-compete agreements 1-5 years Trade names and trademarks 3-10 years |
Investment in equity affiliate | Investments in equity affiliate are initially recorded at cost and any excess cost over proportionate share of the fair value of the net assets of the investee at the acquisition date is recognized as goodwill. The proportionate share of net income or loss of the investee is recognized in the consolidated statements of income. The Company periodically reviews the carrying value of its investment to determine if there has been any other than temporary decline in carrying value. The investment balance is increased or decreased for cash contribution and distributions to or from, respectively, these investee. |
Impairment of long-lived assets | Long-lived assets, including intangible assets, to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such assets are required to be tested for impairment if the carrying amount of the assets is higher than the future undiscounted net cash flows expected to be generated from the assets. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. The Company determines fair value by using a discounted cash flow approach. |
Derivative Financial Instruments | In the normal course of business, the Company uses derivative instruments for the purpose of mitigating the exposure from foreign currency fluctuation risks associated with forecasted transactions denominated in certain foreign currencies and to minimize earnings and cash flow volatility associated with changes in foreign currency exchange rates, and not for speculative trading purposes. These derivative contracts are purchased within the Company’s policy and are with counterparties that are highly rated financial institutions. The Company hedges forecasted transactions that are subject to foreign exchange exposure with foreign currency exchange contracts that qualify as cash flow hedges. Changes in the fair value of these cash flow hedges are recorded as a component of accumulated other comprehensive income/(loss), net of tax, until the hedged transactions occurs. The Company early adopted ASU 2017-12, Derivative and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. Pursuant to this adoption, effective January 1, 2017, the resultant foreign exchange gain/(loss) upon settlement of cash flow hedges are recorded in the consolidated statements of income along with the underlying hedged item in the same income statement line as either part of “Cost of revenue”, “General and administrative expenses”, “Selling and marketing expenses”, “Depreciation and amortization”, as applicable. Prior to January 1, 2017, the resultant foreign exchange gain/(loss) on settlement of cash flow hedges and changes in the fair value of cash flow hedges deemed ineffective have been recorded in “Foreign exchange gain, net” in the consolidated statements of income. The Company also uses derivatives instruments consisting of foreign currency exchange contracts to economically hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the functional currency. Changes in the fair value of these derivatives are recognized in the consolidated statements of income and are included in foreign exchange gain/(loss). The Company evaluates hedge effectiveness of cash flow hedges at the time a contract is entered into as well as on an ongoing basis. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur by the end of the originally specified period, any related derivative amounts recorded in equity are reclassified to earnings. |
Employee Benefits | Contributions to defined contribution plans are charged to the consolidated statements of income in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. |
Stock-Based Compensation | The Company recognizes stock-based compensation expense in the consolidated financial statements for awards of equity instruments to employees and non-employee directors based on the grant-date fair value of those awards. The Company recognizes these compensation costs over the requisite service period of the award. Forfeitures are accounted when the actual forfeitures occur. Under the Company’s 2015 Amendment and Restatement of the 2006 Omnibus Award Plan (the “2015 Plan”), the Company grants performance-based restricted stock units (“PRSUs”) to executive officers and other specified employees. 50% of the PRSUs cliff vest based on a revenue target ("PU") at the end of a three -year period. The remaining 50% vest based on a market condition (“MUs”) that is contingent on meeting or exceeding the total shareholder return relative to a group of peer companies specified under the program, measured over a three -year performance period. The award recipient may earn up to two hundred percent ( 200% ) of the PRSUs granted based on the actual achievement of both targets. The fair value of each PU was determined based on the market price of one common share of the Company on the date of grant, and the associated compensation expense was calculated on the basis that performance targets to receive 100% of the PUs is probable of being achieved. The compensation expense for the PUs is recognized on a straight-line basis over the service period, which is through the end of the third year. Over this period, the number of shares that will be issued will be adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized as an expense will be based on a comparison of the final performance metrics to the specified targets. The expense related to the unvested PUs as of December 31, 2017 was based on the Company's assessment that the performance criteria for these grants would be met at the 100% performance target level during the respective years of vesting. The grant date fair value for the MUs was determined using a Monte Carlo simulation model and the related compensation expense is expensed on a straight-line basis over the vesting period. All compensation expense related to the MUs will be recognized if the requisite performance period is fulfilled, even if the market condition is not achieved. 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 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 year ended December 31, 2017 in the amount of $9,797 related to excess tax benefits. No adjustment is recorded for any windfall benefits previously recorded in Additional Paid-In Capital. Forfeitures - Prior to adoption, stock-based compensation expense was recognized on a straight line basis, net of estimated forfeitures, such that expense was recognized only for stock-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. |
Income Taxes | The Company accounts for income taxes using the asset and liability method of accounting for income taxes. The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates. The deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases and all operating losses carried forward, if any. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which the applicable temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax status is recognized in the statement of income in the period in which the change is identified. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company establishes provisions for uncertain tax provisions and related interest and penalties when the Company believes those tax positions are not more likely than not of being sustained, if challenged. |
Financial Instruments and Concentration of Credit Risk | Financial Instruments. For certain financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, accounts payable, accrued expenses, and other current liabilities, recorded amounts approximate fair value due to the relatively short maturity periods of such instruments. Concentration of Credit Risk . Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, time deposits, mutual fund investments, accounts receivable and derivative financial instruments. By their nature, all such financial instruments involve risks including the credit risks of non-performance by counterparties. Pursuant to the Company’s investment policy, its surplus funds are maintained as cash or cash equivalents and are invested in highly-rated mutual funds, money market accounts and time deposits, placed with highly rated financial institutions to reduce its exposure to market risk with regard to these funds. The Company’s exposure to credit risk on account receivable is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customer s. To mitigate this risk the Company evaluates the creditworthiness of its clients in conjunction with its revenue recognition processes as well as through its ongoing collectability assessment processes for accounts receivable. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. |
Lease Obligations | Leases under which the Company assumes substantially all risks and rewards of the ownership are classified as capital lease. When acquired, such assets are capitalized at fair value or present value of minimum committed lease payments at the inception of the lease, whichever is lower. The Company leases its office facilities under non-cancellable operating lease agreements. Office facilities subject to an operating lease and the related lease payments are not recorded on the Company’s balance sheet. Lease payments under operating lease are recognized as an expense on a straight line basis in the consolidated statement of income over the lease term. |
Government Grants | Government grants related to income are recognized as a reduction of expenses in the consolidated statement of income when there is a reasonable assurance that the entity will comply with the conditions attached to the grant and that the grants will be received. |
Earnings per share | Basic earnings per share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. For the purposes of calculating diluted earnings per share, the treasury stock method is used for stock-based awards except where the results would be anti-dilutive. |
Commitments and contingencies | Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with such liabilities are expensed as incurred. |
Recent Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, “Revenue from Contracts with Customers” (Topic 606). This standard replaces existing revenue recognition guidance with a comprehensive revenue measurement and recognition standard and expanded disclosure requirements. The ASU also includes guidance regarding the accounting for contract acquisition costs, including sales commissions. The Company will adopt the new standard as of January 1, 2018 using the modified retrospective transition method, applied to those contracts which were not completed as of that date. Upon adoption, the Company will recognize the cumulative effect of adopting this guidance as an adjustment to our opening balance of retained earnings. Prior periods will not be retrospectively adjusted. During the year the Company has worked to assess all potential impacts of the new standard and prepare for adoption. As part of this process, the Company closely monitored FASB activity and other relevant information on specific interpretative issues. During the adoption process, findings and progress of the project were regularly reported to senior management and the Audit Committee. We expect that adoption of Topic 606 will not have a material impact to our consolidated financial statements, including the presentation of revenues in our consolidated statements of income. The key area impacted upon adoption of the new standard relates to the accounting for commissions costs. Specifically, under the new standard a portion of sales commissions cost will be recorded as an asset and recognized as an operating expense over the time period that the Company expects to recover the costs. Currently, the Company expenses sales commission costs as incurred. Additionally, some contracts contain provisions with regard to “service levels” to be achieved by the Company, failing which or exceeding which the Company is liable to make payments to the customer or receive performance bonuses from the customers. Such service level payment or bonuses need to be estimated at contract inception and accounted for in revenue. Based on an evaluation of the service levels penalties for past periods, the Company believes that the impact of this clause will not be significant. We have identified changes to the Company systems processes and internal control to meet the standard reporting and disclosure requirement. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). ASU No. 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU No. 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU No. 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU No. 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and the implementation approach to be used. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses, which require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is to be deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The amendment should be applied through a modified retrospective approach. Early adoption as of the fiscal years beginning after December 15, 2018 is permitted. The adoption of ASU No. 2016-13 is not expected to have a material effect on the Company's consolidated financial statements. In August 2016, FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. The amendments apply to all entities that are required to present a statement of cash flows under Topic 230. The amendments are an improvement to GAAP because they provide guidance for each of the eight issues, thereby reducing the current and potential future diversity in practice. The amendments are effective for fiscal years beginning after December 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 No. 2016-18, Statement of cash flows - Restricted cash. The amendments apply to all entities that have restricted cash or restricted cash equivalents and are required to present a statement of cash flows under Topic 230. The amendments in this update require that a statement of cash flows should explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The amendments are effective for fiscal years beginning after December 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 the presentation of its statement of cash flows. 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 does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In May 2017, FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. Modification accounting is required only if the fair value, the vesting conditions, or the classification of the award changes as a result of the change in terms or conditions. The amendments in this ASU are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. The amendments in this ASU should be applied prospectively to an award modified on or after the adoption date. The Company will adopt this guidance for modification that occur after January 1, 2018. In August 2017, FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This ASU amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in their financial statements. This includes simplifying how hedge results are presented and disclosed both on the face of the financial statements and in the footnotes, and provides relief around the documentation and assessment requirements. The amendments are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with early adoption being permitted. The Company has early adopted the guidance beginning January 1, 2017. The amendments of this ASU have an impact on the way the Company has been presenting the impact of hedge ineffectiveness and the settlement gain or loss for cash flow hedges in the prior years. The amended presentation have been applied prospectively from the date of adoption, whereby the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in other comprehensive income. Such amount, upon settlement of cash flow hedges, are presented to earnings in the same income statement line item that is used to present the earnings effect of the hedged item when the hedged item affects earnings. See Note 15 to consolidated financial statements for details. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment, Estimated Useful Lives | (in years) Assets: Network equipment and computers 3-5 years Software 3-5 years Leasehold improvements 3-8 years Office furniture and equipment 3-8 years Motor vehicles 2-5 years Buildings 30 years The depreciation and amortization expense excluding amortization of acquisition-related intangibles recognized in the consolidated statements of income was as follows: Year ended December 31, 2017 2016 2015 Depreciation and amortization expense $ 24,574 $ 22,707 $ 21,239 Internally developed software costs, included under Software, was as follows: As of December 31, 2017 December 31, 2016 Cost $ 2,571 $ 2,242 Less : Accumulated amortization 976 336 $ 1,595 $ 1,906 Property and equipment consist of the following: As of Estimated useful lives (Years) December 31, 2017 December 31, 2016 Owned Assets: Network equipment and computers 3-5 $ 77,587 $ 65,381 Software 3-5 59,325 44,617 Leasehold improvements 3-8 38,857 31,192 Office furniture and equipment 3-8 19,667 15,426 Motor vehicles 2-5 638 580 Buildings 30 1,245 1,171 Land - 815 766 Capital work in progress - 9,184 4,964 207,318 164,097 Less: Accumulated depreciation and amortization (141,059 ) (115,568 ) $ 66,259 $ 48,529 Assets under capital leases: Leasehold improvements $ 941 $ 854 Office furniture and equipment 167 133 Motor vehicles 710 810 1,818 1,797 Less: Accumulated depreciation (1,320 ) (1,297 ) $ 498 $ 500 Property and Equipment, net $ 66,757 $ 49,029 |
Summary of Lived Intangible Assets Amortized over their Estimated Useful Lives | The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method: Customer relationships 3-15 years Leasehold benefits 3-8 years Developed technology 5-10 years Non-compete agreements 1-5 years Trade names and trademarks 3-10 years |
Segment & Geographical Inform34
Segment & Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Revenues and Cost of Revenues for Company's Reportable Segments | Revenues and cost of revenues for each of the years ended December 31, 2017, 2016 and 2015, for each of the reportable segments, are as follows: Year ended December 31, 2017 Insurance Healthcare TT&L F&A All Other Analytics Total Revenues, net $ 234,794 $ 77,013 $ 70,951 $ 86,527 $ 83,082 $ 209,943 $ 762,310 Cost of revenues (exclusive of depreciation and amortization) 159,529 49,483 41,409 51,445 56,697 137,023 495,586 Gross profit $ 75,265 $ 27,530 $ 29,542 $ 35,082 $ 26,385 $ 72,920 $ 266,724 Operating expenses 194,499 Foreign exchange gain, interest expense and other income, net 12,809 Income tax expense 36,146 Net income $ 48,888 Year ended December 31, 2016 Insurance Healthcare TT&L F&A All Other Analytics Total Revenues, net $ 206,327 $ 68,656 $ 69,366 $ 79,416 $ 96,489 $ 165,734 $ 685,988 Cost of revenues (exclusive of depreciation and amortization) 146,203 44,098 41,962 48,302 61,050 106,341 447,956 Gross profit $ 60,124 $ 24,558 $ 27,404 $ 31,114 $ 35,439 $ 59,393 $ 238,032 Operating expenses 173,810 Foreign exchange gain, interest expense and other income, net 19,662 Income tax expense 22,151 Net income $ 61,733 Year ended December 31, 2015 Insurance Healthcare TT&L F&A All Other Analytics Total Revenues, net $ 199,878 $ 55,209 $ 62,264 $ 78,504 $ 110,486 $ 122,151 $ 628,492 Cost of revenues (exclusive of depreciation and amortization) 134,196 37,224 37,506 46,846 68,307 78,838 402,917 Gross profit $ 65,682 $ 17,985 $ 24,758 $ 31,658 $ 42,179 $ 43,313 $ 225,575 Operating expenses 158,232 Foreign exchange gain, interest expense and other income, net 8,433 Income tax expense 24,211 Net income $ 51,565 Net revenues of the Company by service type, were as follows: Year ended December 31, 2017 2016 2015 BPM and related services (1) $ 552,367 $ 520,254 $ 506,341 Analytics services 209,943 165,734 122,151 Total $ 762,310 $ 685,988 $ 628,492 (1) BPM and related services include revenues of the Company's five industry-focused operating segments, one capability operating segment and the consulting operating segment, which provides services related to operations management services. |
Revenues Based on Geographical Information | The Company attributes the revenues to regions based upon the location of its customers. Year ended December 31, 2017 2016 2015 Revenues, net United States $ 626,336 $ 554,945 $ 496,418 Non-United States United Kingdom 108,640 109,905 108,868 Rest of World 27,334 21,138 23,206 Total Non-United States 135,974 131,043 132,074 $ 762,310 $ 685,988 $ 628,492 |
Property and Equipment, Net Based on Geographical Information | Property and equipment, net by geographic area, are as follows: As of December 31, 2017 December 31, 2016 Property and equipment, net India $ 39,143 $ 23,362 United States 16,371 10,809 Philippines 8,217 11,900 Rest of World 3,026 2,958 $ 66,757 $ 49,029 |
Quarterly Financial Data (Una35
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results | Summarized quarterly results for the years ended December 31, 2017 and 2016 are as follows: Three months ended 2017 Year ended March 31 June 30 September 30 December 31 December 31, 2017 Revenues, net $ 183,033 $ 189,057 $ 192,345 $ 197,875 $ 762,310 Gross profit** $ 63,851 $ 65,211 $ 69,156 $ 68,506 $ 266,724 Net income/(loss) $ 16,788 $ 20,378 $ 21,077 $ (9,355 ) $ 48,888 Earnings/(loss) per share: Basic* $ 0.50 $ 0.60 $ 0.62 $ (0.27 ) $ 1.44 Diluted* $ 0.48 $ 0.58 $ 0.60 $ (0.27 ) $ 1.39 Weighted-average number of shares used in computing earnings per share: Basic* 33,845,560 33,819,320 33,838,374 34,086,711 33,897,916 Diluted* 35,108,882 34,993,226 35,043,987 34,086,711 35,110,210 Stock compensation expense $ 5,956 $ 5,107 $ 5,708 $ 6,270 $ 23,041 Amortization of intangibles $ 3,498 $ 3,507 $ 3,487 $ 3,483 $ 13,975 Three months ended 2016 Year ended March 31 June 30 September 30 December 31 December 31, 2016 Revenues, net $ 167,036 $ 170,478 $ 171,200 $ 177,274 $ 685,988 Gross profit** $ 58,657 $ 58,452 $ 59,433 $ 61,490 $ 238,032 Net income $ 13,820 $ 16,375 $ 16,050 $ 15,488 $ 61,733 Earnings per share: Basic* $ 0.41 $ 0.49 $ 0.48 $ 0.46 $ 1.84 Diluted* $ 0.40 $ 0.47 $ 0.46 $ 0.45 $ 1.79 Weighted-average number of shares used in computing earnings per share: Basic* 33,380,028 33,621,444 33,624,401 33,638,170 33,566,367 Diluted* 34,351,657 34,510,400 34,675,485 34,714,308 34,563,319 Stock compensation expense $ 5,809 $ 4,450 $ 4,484 $ 5,027 $ 19,770 Amortization of intangibles $ 2,715 $ 2,718 $ 2,848 $ 3,592 $ 11,873 * Total of quarterly basic and diluted earnings per share and weighted average number of shares used in computing earnings per share will not be equal to year end basic and diluted earnings per share and weighted average number of shares used in computing earnings per share, respectively. For the quarter ended December 31, 2017, 1,206,335 weighted average common shares were considered anti-dilutive and not included in computing diluted earnings per share. **During the quarter ended December 31, 2017, the Company early adopted ASU 2017-12, Derivative and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. Pursuant to this adoption effective January 1, 2017, the Company recorded settlement gain/(loss) on cash flow hedges in cost of revenues and operating expenses, as applicable, in the consolidated statements of income for each of the quarters of 2017. See Note 15 for further details. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 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: Year ended December 31, 2017 2016 2015 Numerators: Net income $ 48,888 $ 61,733 $ 51,565 Denominators: Basic weighted average common shares outstanding 33,897,916 33,566,367 33,298,104 Dilutive effect of stock based awards 1,212,294 996,952 880,236 Diluted weighted average common shares outstanding 35,110,210 34,563,319 34,178,340 Earnings per share: Basic $ 1.44 $ 1.84 $ 1.55 Diluted $ 1.39 $ 1.79 $ 1.51 Weighted average common shares considered anti-dilutive and not included in computing diluted earnings per share 151,961 92,538 73,896 |
Other Income, net (Tables)
Other Income, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income, net | Other Income, net consists of the following: Year ended December 31, 2017 2016 2015 Interest and dividend income $ 1,625 $ 1,673 $ 2,904 Gain on mutual fund investments 8,766 8,087 3,902 Change in fair value of earn-out consideration — 4,060 — Other, net 1,468 1,588 221 Other income, net $ 11,859 $ 15,408 $ 7,027 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | (in years) Assets: Network equipment and computers 3-5 years Software 3-5 years Leasehold improvements 3-8 years Office furniture and equipment 3-8 years Motor vehicles 2-5 years Buildings 30 years The depreciation and amortization expense excluding amortization of acquisition-related intangibles recognized in the consolidated statements of income was as follows: Year ended December 31, 2017 2016 2015 Depreciation and amortization expense $ 24,574 $ 22,707 $ 21,239 Internally developed software costs, included under Software, was as follows: As of December 31, 2017 December 31, 2016 Cost $ 2,571 $ 2,242 Less : Accumulated amortization 976 336 $ 1,595 $ 1,906 Property and equipment consist of the following: As of Estimated useful lives (Years) December 31, 2017 December 31, 2016 Owned Assets: Network equipment and computers 3-5 $ 77,587 $ 65,381 Software 3-5 59,325 44,617 Leasehold improvements 3-8 38,857 31,192 Office furniture and equipment 3-8 19,667 15,426 Motor vehicles 2-5 638 580 Buildings 30 1,245 1,171 Land - 815 766 Capital work in progress - 9,184 4,964 207,318 164,097 Less: Accumulated depreciation and amortization (141,059 ) (115,568 ) $ 66,259 $ 48,529 Assets under capital leases: Leasehold improvements $ 941 $ 854 Office furniture and equipment 167 133 Motor vehicles 710 810 1,818 1,797 Less: Accumulated depreciation (1,320 ) (1,297 ) $ 498 $ 500 Property and Equipment, net $ 66,757 $ 49,029 |
Business Combinations, Goodwi39
Business Combinations, Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations, Goodwill And Intangible Assets Disclosure [Abstract] | |
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed | The Company has preliminary allocated the purchase price to the net tangible and intangible assets based on their fair values as set forth below: Amount (In thousands) Tangible Assets $ 5,945 Liabilities (7,193 ) Identifiable Intangible Assets: Customer relationships 6,760 Developed technology 1,510 Trade names and trademarks 570 Goodwill 15,957 Total purchase price $ 23,549 |
Unaudited Pro Forma Financial Information | Year ended December 31, 2017 2016 Revenues $ 801,101 $ 729,938 Net income $ 46,998 $ 58,232 Earnings per share: Basic $ 1.39 $ 1.73 Diluted $ 1.34 $ 1.68 |
Summary of Company's Goodwill | The following table sets forth details of the Company’s goodwill balance as of December 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 — 15,957 — — — — 15,957 Currency translation adjustments 223 — 696 835 — — 1,754 Balance as at December 31, 2017 $ 38,333 $ 35,233 $ 13,679 $ 48,372 $ 5,326 $ 63,538 $ 204,481 |
Schedule of Finite-Lived Intangible Assets | The remaining weighted average life of intangible assets is as follows: (in years) Customer relationships 5.36 Leasehold benefits 1.41 Developed technologies 3.07 Non-compete agreements 1.69 Trade names and trademarks (Finite lived) 4.29 Information regarding the Company’s intangible assets is set forth below: As of December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Customer relationships $ 82,165 $ (43,667 ) $ 38,498 Leasehold benefits 2,888 (2,596 ) 292 Developed technology 15,835 (8,749 ) 7,086 Non-compete agreements 2,045 (1,780 ) 265 Trade names and trademarks 5,951 (4,034 ) 1,917 $ 108,884 $ (60,826 ) $ 48,058 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 109,784 $ (60,826 ) $ 48,958 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 |
Schedule of Indefinite-Lived Intangible Assets | Information regarding the Company’s intangible assets is set forth below: As of December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Customer relationships $ 82,165 $ (43,667 ) $ 38,498 Leasehold benefits 2,888 (2,596 ) 292 Developed technology 15,835 (8,749 ) 7,086 Non-compete agreements 2,045 (1,780 ) 265 Trade names and trademarks 5,951 (4,034 ) 1,917 $ 108,884 $ (60,826 ) $ 48,058 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 109,784 $ (60,826 ) $ 48,958 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 of Intangible Assets | The amortization expenses is as follows: Year ended December 31, 2017 2016 2015 Amortization expense $ 13,975 $ 11,873 $ 10,226 |
Estimated Future Amortization of Intangible Assets | Estimated amortization of intangible assets during the year ending December 31: 2018 $ 15,249 2019 12,508 2020 5,086 2021 4,021 2022 3,213 2023 and thereafter 7,981 Total $ 48,058 |
Other current assets (Tables)
Other current assets (Tables) | 12 Months Ended |
Dec. 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 December 31, 2017 December 31, 2016 Derivative instruments $ 10,938 $ 3,324 Advances to suppliers 2,451 1,091 Receivables from statutory authorities 7,598 11,870 Others 8,595 4,883 Other current assets $ 29,582 $ 21,168 |
Accrued expenses and other cu41
Accrued expenses and other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities and Other Current Liabilities | Accrued expenses and other current liabilities consists of the following: As of December 31, 2017 December 31, 2016 Accrued expenses $ 43,235 $ 30,690 Derivative instruments 555 1,430 Client liability account 8,982 4,005 Others 8,594 7,139 Accrued expenses and other current liabilities $ 61,366 $ 43,264 |
Non-current liabilities (Tables
Non-current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Liabilities, Noncurrent [Abstract] | |
Summary of Non-Current Liabilities | Non-current liabilities consists of the following: As of December 31, 2017 December 31, 2016 Derivative instruments $ 322 $ 828 Unrecognized tax benefits 892 3,640 Deferred rent 8,176 7,237 Retirement benefits 3,377 1,977 Others 3,435 1,137 Non-current liabilities $ 16,202 $ 14,819 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The balances as of December 31, 2017 and 2016 are as follows: As of December 31, 2017 December 31, 2016 Cumulative currency translation adjustments $ (58,405 ) $ (77,299 ) Unrealized gain on cash flow hedges, net of taxes of $4,918 and $1,207 11,932 2,740 Retirement benefits, net of taxes of ($74) and ($342) 763 (498 ) Accumulated other comprehensive loss $ (45,710 ) $ (75,057 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 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 December 31, 2017 and 2016 . The table excludes accounts receivable, accounts payable and accrued expenses for which fair values approximate their carrying amounts. As of December 31, 2017 Level 1 Level 2 Level 3 Total Assets Money market and mutual funds* $ 162,906 $ — $ — $ 162,906 Derivative financial instruments — 18,298 — 18,298 Total $ 162,906 $ 18,298 $ — $ 181,204 Liabilities Derivative financial instruments $ — $ 877 $ — $ 877 Fair value of earn-out consideration — — 920 920 Total $ — $ 877 $ 920 $ 1,797 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 December 31, 2017 |
Derivatives and Hedge Account45
Derivatives and Hedge Accounting (Tables) | 12 Months Ended |
Dec. 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 consolidated financial statements: Derivatives designated as hedging instruments : As of Foreign currency exchange contracts December 31, 2017 December 31, 2016 Other current assets $ 10,892 $ 3,211 Other assets $ 7,360 $ 2,994 Accrued expense and other current liabilities $ 481 $ 1,430 Other non-current liabilities $ 322 $ 828 Derivatives not designated as hedging instruments : As of Foreign currency exchange contracts December 31, 2017 December 31, 2016 Other current assets $ 46 $ 113 Accrued expense and other current liabilities $ 74 $ — |
Summary of Effect of Foreign Currency Exchange Contracts on Consolidated Statements of Income | The following table set forth the effect of foreign currency exchange contracts in the consolidated statements of income and accumulated other comprehensive loss for the years ended December 31, 2017 and 2016 : Derivatives in hedging relationships Year ended December 31, Forward Exchange Contracts : 2017 2016 (Gain)/loss recognized in AOCI Derivatives in cash flow hedging relationships $ (19,802 ) $ (5,129 ) (Gain)/loss recognized in consolidated statements of income Derivatives in fair value hedging relationships $ (5,056 ) $ (4,790 ) Location and amount of (gain)/loss recognized in consolidated statements of income for cash flow and fair value hedging relationships Year ended December 31, 2017* 2016* Type of hedging relationships As per consolidated statements of income (Gain)/loss on foreign currency exchange contracts As per consolidated statements of income (Gain)/loss on foreign currency exchange contracts Cash flow hedging relationships Location in consolidated statements of income where (gain)/loss was reclassed from AOCI Cost of revenue $ 495,586 $ (5,465 ) $ — $ — General & administrative expenses $ 102,567 (960 ) $ — — Selling & marketing expenses $ 53,383 (103 ) $ — — Depreciation & amortization $ 38,549 (371 ) $ — — Foreign exchange gain, net $ (2,839 ) — $ (5,597 ) (2,669 ) $ (6,899 ) $ (2,669 ) Fair value hedging relationships Location in consolidated statements of income where (gain)/loss was recognized Foreign exchange gain, net $ (2,839 ) $ (5,056 ) $ (5,597 ) $ (4,790 ) $ (2,839 ) $ (5,056 ) $ (5,597 ) $ (4,790 ) * The Company early adopted ASU 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. Pursuant to this adoption, effective January 1, 2017, the Company recorded settlement gain/(loss) on cash flow hedges in cost of revenues and operating expenses, as applicable, in the consolidated statements of income. In prior periods, such gain/loss were included under "Foreign exchange gain, net" line in the consolidated statements of income. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Change in Projected Benefit Obligation | The following table sets forth the activity and the funded status of the Gratuity Plans and the amounts recognized in the Company’s consolidated financial statements at the end of the relevant periods: As of December 31, 2017 December 31, 2016 Change in projected benefit obligation: Projected benefit obligation at the beginning of the year $ 9,711 $ 7,909 Service cost 1,933 1,601 Interest cost 645 599 Benefits paid (1,001 ) (837 ) Actuarial (gain)/loss (1,471 ) 677 Acquisition — 47 Effect of exchange rate changes 488 (285 ) Projected benefit obligation at the end of the year $ 10,305 $ 9,711 Unfunded amount–non-current $ 3,377 $ 1,977 Unfunded amount–current 13 2,094 Total accrued liability $ 3,390 $ 4,071 Accumulated benefit obligation $ 7,022 $ 6,533 |
Net Gratuity Cost | Net gratuity cost includes the following components: Year ended December 31, 2017 2016 2015 Service cost $ 1,933 $ 1,601 $ 1,638 Interest cost 645 599 550 Expected return on plan assets (401 ) (416 ) (385 ) Amortization of Actuarial loss 256 90 211 Net gratuity cost $ 2,433 $ 1,874 $ 2,014 |
Summary of Components Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive gain/(loss) (net of tax) that have not been recognized as components of net gratuity cost in the statement of income as of December 31, 2017 and 2016 are as follows: December 31, 2017 2016 Net actuarial gain/(loss) $ 697 $ (831 ) Net prior service cost (8 ) (9 ) Deferred taxes 74 342 Accumulated other comprehensive gain/(loss), net of tax $ 763 $ (498 ) |
Summary of Weighted Average Actuarial Assumptions | The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost are: December 31, 2017 2016 2015 Discount rate 7.0 % 6.8 % 7.8 % Rate of increase in compensation levels 9.1 % 9.2 % 8.4 % Expected long term rate of return on plan assets per annum 8.3 % 9.0 % 9.0 % |
Summary of Expected Benefit Payments | Expected benefit payments during the year ending December 31, 2018 $ 2,011 2019 $ 1,772 2020 $ 1,531 2021 $ 1,302 2022 $ 1,029 2023 to 2027 $ 3,206 |
Change in Plan Assets | Change in Plan Assets Plan assets at January 1, 2016 $ 4,923 Actual return 450 Employer contribution 1,242 Benefits paid* (837 ) Effect of exchange rate changes (138 ) Plan Assets at December 31, 2016 $ 5,640 Actual return 202 Employer contribution 1,700 Benefits paid* (1,001 ) Effect of exchange rate changes 374 Plan assets at December 31, 2017 $ 6,915 * All benefits payments were made through the plan assets during the year ended December 31, 2017 and December 31, 2016. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Future Minimum Lease Payments under Capital Leases | The Company finances its use of certain motor vehicles and other equipment under various lease arrangements provided by financial institutions. Future minimum lease payments under these capital leases as of December 31, 2017 are as follows: During the next twelve months ending December 31, 2018 $ 330 2019 201 2020 127 2021 64 Total minimum lease payments 722 Less: amount representing interest 124 Present value of minimum lease payments 598 Less: current portion 267 Long term capital lease obligation $ 331 |
Future Minimum Lease Payments under Non-Cancelable Operating Lease Agreements Expiring After December 31, 2017 | The Company conducts its operations using facilities leased under operating lease agreements that expire at various dates. Future minimum lease payments under such agreements expiring after December 31, 2017 are set forth below: During the next twelve months ending December 31, 2018 $ 20,850 2019 17,802 2020 14,840 2021 12,888 2022 10,234 2023 and thereafter 28,273 Future minimum lease payment $ 104,887 |
Schedule of Rent Expense | Year ended December 31, 2017 2016 2015 Rent expense $ 24,015 $ 21,382 $ 19,943 |
Schedule of Deferred Rent | As of December 31, 2017 December 31, 2016 Cancelable and non-cancelable operating leases $ 8,959 $ 7,915 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Income Before Income Taxes | The components of income before income taxes consist of the following: Year ended December 31, 2017 2016 2015 Domestic $ 4,626 $ 12,652 $ 25,045 Foreign 80,408 71,232 50,731 $ 85,034 $ 83,884 $ 75,776 |
Summary of Income Tax Expense | The income tax expense consists of the following: Year ended December 31, 2017 2016 2015 Current provision: Domestic $ 17,407 $ 7,107 $ 9,951 Foreign 18,008 18,428 12,022 $ 35,415 $ 25,535 $ 21,973 Deferred provision/(benefit): Domestic $ 2,618 $ (2,506 ) $ 3,041 Foreign (1,887 ) (878 ) (803 ) $ 731 $ (3,384 ) $ 2,238 Income tax expense $ 36,146 $ 22,151 $ 24,211 |
Summary of Effective Income Tax Rate Differs from Amount Computed by Applying U.S. Federal Statutory Income Tax Rate to Income Before Income Taxes | The effective income tax rate differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes approximately as follows: Year ended December 31, 2017 2016 2015 Expected tax expense $ 29,762 $ 29,361 $ 26,521 Change in valuation allowance (21 ) 22 19 Impact of tax holiday (4,396 ) (4,027 ) (2,991 ) Foreign tax rate differential (2,616 ) (2,716 ) (2,797 ) Deferred tax (benefit)/provision (1,887 ) (878 ) (803 ) Unrecognized tax benefits and interest (3,905 ) 495 324 State taxes, net of Federal taxes 339 202 1,327 Non-deductible expenses 825 144 26 Prior year tax expense/(benefit) — — 2,450 US Tax Reform Act impact 29,185 — — Excess tax benefit for stock-based compensation (9,797 ) — — Other (1,343 ) (452 ) 135 Tax expense $ 36,146 $ 22,151 $ 24,211 |
Summary of Components of Deferred Tax Balances | The components of the deferred tax balances as of December 31, 2017 and 2016 are as follows: As of December 31, 2017 December 31, 2016 Deferred tax assets: Tax credit carry forward $ 1,474 $ 4,806 Depreciation and amortization 2,183 3,765 Stock-based compensation 7,647 10,385 Accrued employee costs and other expenses 3,673 5,130 Net operating loss carry forwards 2,068 1,856 Unrealized exchange loss 252 2,099 Deferred rent 2,064 1,307 Others 1,007 484 $ 20,368 $ 29,832 Valuation allowance (108 ) (454 ) Deferred tax assets $ 20,260 $ 29,378 Deferred tax liabilities: Unrealized exchange gain $ 5,069 $ 1,414 Intangible assets 4,648 13,165 Others 1,958 — Deferred tax liabilities: $ 11,675 $ 14,579 Net deferred tax assets $ 8,585 $ 14,799 |
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 December 31, 2017 Balance as of January 1, 2017 $ 3,087 Increases related to prior year tax positions — Decreases related to prior year tax positions (2,520 ) Increases related to current year tax positions 169 Decreases related to current year tax positions — Effect of exchange rate changes 88 Balance as of December 31, 2017 $ 824 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 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 consolidated statements of income: Year ended December 31, 2017 2016 2015 Cost of revenue $ 4,600 $ 3,664 $ 2,895 General and administrative expenses 10,363 8,372 6,077 Selling and marketing expenses 8,078 7,734 7,075 Total $ 23,041 $ 19,770 $ 16,047 |
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 (552,339 ) 15.50 Forfeited — — Outstanding at December 31, 2017 259,563 $ 18.03 $ 10,985 2.76 Vested and exercisable at December 31, 2017 259,563 $ 18.03 $ 10,985 2.76 |
Company's Stock Options Outstanding and Stock Options Vested and Exercisable | The following table summarizes the status of the Company’s stock options outstanding, vested and exercisable at December 31, 2017 : Options Outstanding, Vested and Exercisable Range of Exercise Prices Shares Weighted- Average Exercise Price $8.00 to $15.00 98,784 $ 9.64 $15.01 to $21.00 36,516 19.05 $21.01 to $28.00 124,263 24.40 Total 259,563 $ 18.03 |
Weighted Average Valuation Assumptions for Market Condition Performance Restricted Stock Units | The fair value of each MU granted to employees is estimated on the date of grant using the following weighted average assumptions: Year ended December 31, 2017 2016 2015 Dividend yield — — — Expected life (years) 2.86 2.85 2.84 Risk free interest rate 1.40 % 0.88 % 0.98 % Volatility 23.8 % 28.0 % 30.3 % |
Restricted Stock and 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 Fair Value Number Weighted- Average Fair Value December 31, 2016 (1) 246,940 $ 42.42 1,256,288 $ 37.38 Granted — — 391,927 48.02 Vested (60,168 ) 42.30 (489,176 ) 34.52 Forfeited (4,505 ) 35.11 (112,040 ) 41.50 December 31, 2017 (1) 182,267 $ 42.64 1,046,999 $ 42.26 (1) Excludes 11,058 and 19,874 restricted stock units vested during the years ended December 31, 2017 and 2016 , respectively. As of December 31, 2017 and 2016 restricted stock units vested for which the underlying common stock is yet to be issued are 146,112 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 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 62,113 47.73 62,100 54.10 Adjustment upon final determination of level of performance goal achievement* (9,320 ) 34.75 154,513 39.60 Vested (45,192 ) 34.75 (309,026 ) 39.60 Forfeited (9,585 ) 44.35 (9,584 ) 58.85 Outstanding at December 31, 2017 113,190 $ 48.13 113,174 $ 60.80 * Represents adjustment of shares issued in respect of PUs and MUs granted in February 2015 and MUs granted in April 2015 upon certification of the level of achievement of the performance targets for such awards for which the underlying common stock was issued subsequent to December 31, 2017. |
Summary of Significant Accoun50
Summary of Significant Accounting Policies - Summary of Revenues and Reimbursements Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Revenues and reimbursements | $ 17,982 | $ 21,812 | $ 18,848 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies - Accounts Receivable Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 2,923 | $ 241 |
Unbilled accounts receivable | $ 49,125 | $ 34,785 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Schedule of Property and Equipment, Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 30 years |
Minimum | Network equipment and computers | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Minimum | Software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Minimum | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Minimum | Office furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Minimum | Motor vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Maximum | Network equipment and computers | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Maximum | Software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Maximum | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 8 years |
Maximum | Office furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 8 years |
Maximum | Motor vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Summary of Lived Intangible Assets Amortized over their Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Customer relationships | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 3 years |
Customer relationships | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 15 years |
Leasehold benefits | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 3 years |
Leasehold benefits | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 8 years |
Developed technology | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 5 years |
Developed technology | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 10 years |
Non-compete agreements | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 1 year |
Non-compete agreements | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 5 years |
Trade names and trademarks | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 3 years |
Trade names and trademarks | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 10 years |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - Share-Based Compensation Additional Information (Details) - USD ($) $ in Thousands | Jun. 19, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Excess tax benefit | $ 9,797 | $ 0 | $ 0 | ||
Impact on adoption of ASU 2016-09 | [1] | (1,453) | |||
Accounting Standards Update 2016-09 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Deferred tax effect | 1,453 | ||||
Additional Paid-in Capital | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Impact on adoption of ASU 2016-09 | [1] | (5,999) | |||
Additional Paid-in Capital | Accounting Standards Update 2016-09 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Impact on adoption of ASU 2016-09 | 5,999 | ||||
Retained Earnings | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Impact on adoption of ASU 2016-09 | [1] | 4,546 | |||
Retained Earnings | Accounting Standards Update 2016-09 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Impact on adoption of ASU 2016-09 | $ 4,546 | ||||
Revenue Based PRSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of target shares an employee can earn | 200.00% | ||||
Revenue Based PRSUs | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of target shares an employee can earn | 200.00% | ||||
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance based percentage | 100.00% | ||||
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Revenue Based PRSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance based percentage | 50.00% | ||||
Vesting period | 3 years | ||||
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Market Condition Based PRSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance based percentage | 50.00% | ||||
Vesting period | 3 years | ||||
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Market Condition Based PRSUs | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of target shares an employee can earn | 200.00% | ||||
[1] | Refer note 2(o) to consolidated financial statements for details. |
Segment & Geographical Inform55
Segment & Geographical Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017operating_segmentSegment | |
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 operating segments, non-operations management services | 2 |
Number of reportable segments | Segment | 2 |
Segment & Geographical Inform56
Segment & Geographical Information - Revenues and Cost of Revenues for Company's Reportable Segments (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)operating_segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||
Revenues, net | $ 197,875 | $ 192,345 | $ 189,057 | $ 183,033 | $ 177,274 | $ 171,200 | $ 170,478 | $ 167,036 | $ 762,310 | $ 685,988 | $ 628,492 |
Cost of revenues (exclusive of depreciation and amortization) | 495,586 | 447,956 | 402,917 | ||||||||
Gross profit | 68,506 | 69,156 | 65,211 | 63,851 | 61,490 | 59,433 | 58,452 | 58,657 | 266,724 | 238,032 | 225,575 |
Operating expenses | 194,499 | 173,810 | 158,232 | ||||||||
Foreign exchange gain, interest expense and other income, net | 12,809 | 19,662 | 8,433 | ||||||||
Income tax expense | 36,146 | 22,151 | 24,211 | ||||||||
Net income | $ (9,355) | $ 21,077 | $ 20,378 | $ 16,788 | $ 15,488 | $ 16,050 | $ 16,375 | $ 13,820 | $ 48,888 | 61,733 | 51,565 |
Number of operating segments, industry focused | operating_segment | 5 | ||||||||||
Number of operating segments, finance and accounting | operating_segment | 1 | ||||||||||
BPM and related services | |||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||
Revenues, net | $ 552,367 | 520,254 | 506,341 | ||||||||
Analytics services | |||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||
Revenues, net | 209,943 | 165,734 | 122,151 | ||||||||
Insurance | |||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||
Revenues, net | 234,794 | 206,327 | 199,878 | ||||||||
Cost of revenues (exclusive of depreciation and amortization) | 159,529 | 146,203 | 134,196 | ||||||||
Gross profit | 75,265 | 60,124 | 65,682 | ||||||||
Healthcare | |||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||
Revenues, net | 77,013 | 68,656 | 55,209 | ||||||||
Cost of revenues (exclusive of depreciation and amortization) | 49,483 | 44,098 | 37,224 | ||||||||
Gross profit | 27,530 | 24,558 | 17,985 | ||||||||
TT&L | |||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||
Revenues, net | 70,951 | 69,366 | 62,264 | ||||||||
Cost of revenues (exclusive of depreciation and amortization) | 41,409 | 41,962 | 37,506 | ||||||||
Gross profit | 29,542 | 27,404 | 24,758 | ||||||||
F&A | |||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||
Revenues, net | 86,527 | 79,416 | 78,504 | ||||||||
Cost of revenues (exclusive of depreciation and amortization) | 51,445 | 48,302 | 46,846 | ||||||||
Gross profit | 35,082 | 31,114 | 31,658 | ||||||||
All Other | |||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||
Revenues, net | 83,082 | 96,489 | 110,486 | ||||||||
Cost of revenues (exclusive of depreciation and amortization) | 56,697 | 61,050 | 68,307 | ||||||||
Gross profit | 26,385 | 35,439 | 42,179 | ||||||||
Analytics | |||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||
Revenues, net | 209,943 | 165,734 | 122,151 | ||||||||
Cost of revenues (exclusive of depreciation and amortization) | 137,023 | 106,341 | 78,838 | ||||||||
Gross profit | $ 72,920 | $ 59,393 | $ 43,313 |
Segment & Geographical Inform57
Segment & Geographical Information - Revenues and Property and Equipment, Net Based on Geographical Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues, net | |||||||||||
Revenues, net | $ 197,875 | $ 192,345 | $ 189,057 | $ 183,033 | $ 177,274 | $ 171,200 | $ 170,478 | $ 167,036 | $ 762,310 | $ 685,988 | $ 628,492 |
Property, Plant and Equipment, net | |||||||||||
Property and equipment, net | 66,757 | 49,029 | 66,757 | 49,029 | |||||||
United States | |||||||||||
Revenues, net | |||||||||||
Revenues, net | 626,336 | 554,945 | 496,418 | ||||||||
Property, Plant and Equipment, net | |||||||||||
Property and equipment, net | 16,371 | 10,809 | 16,371 | 10,809 | |||||||
United Kingdom | |||||||||||
Revenues, net | |||||||||||
Revenues, net | 108,640 | 109,905 | 108,868 | ||||||||
Rest of World | |||||||||||
Revenues, net | |||||||||||
Revenues, net | 27,334 | 21,138 | 23,206 | ||||||||
Property, Plant and Equipment, net | |||||||||||
Property and equipment, net | 3,026 | 2,958 | 3,026 | 2,958 | |||||||
Total Non-United States | |||||||||||
Revenues, net | |||||||||||
Revenues, net | 135,974 | 131,043 | $ 132,074 | ||||||||
India | |||||||||||
Property, Plant and Equipment, net | |||||||||||
Property and equipment, net | 39,143 | 23,362 | 39,143 | 23,362 | |||||||
Philippines | |||||||||||
Property, Plant and Equipment, net | |||||||||||
Property and equipment, net | $ 8,217 | $ 11,900 | $ 8,217 | $ 11,900 |
Quarterly Financial Data (Una58
Quarterly Financial Data (Unaudited) - Summary of Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues, net | $ 197,875 | $ 192,345 | $ 189,057 | $ 183,033 | $ 177,274 | $ 171,200 | $ 170,478 | $ 167,036 | $ 762,310 | $ 685,988 | $ 628,492 |
Gross profit | 68,506 | 69,156 | 65,211 | 63,851 | 61,490 | 59,433 | 58,452 | 58,657 | 266,724 | 238,032 | 225,575 |
Net income/(loss) | $ (9,355) | $ 21,077 | $ 20,378 | $ 16,788 | $ 15,488 | $ 16,050 | $ 16,375 | $ 13,820 | $ 48,888 | $ 61,733 | $ 51,565 |
Earnings/(loss) per share: | |||||||||||
Basic (in dollars per share) | $ (0.27) | $ 0.62 | $ 0.60 | $ 0.50 | $ 0.46 | $ 0.48 | $ 0.49 | $ 0.41 | $ 1.44 | $ 1.84 | $ 1.55 |
Diluted (in dollars per share) | $ (0.27) | $ 0.60 | $ 0.58 | $ 0.48 | $ 0.45 | $ 0.46 | $ 0.47 | $ 0.40 | $ 1.39 | $ 1.79 | $ 1.51 |
Weighted-average number of shares used in computing earnings per share: | |||||||||||
Basic (in shares) | 34,086,711 | 33,838,374 | 33,819,320 | 33,845,560 | 33,638,170 | 33,624,401 | 33,621,444 | 33,380,028 | 33,897,916 | 33,566,367 | 33,298,104 |
Diluted (in shares) | 34,086,711 | 35,043,987 | 34,993,226 | 35,108,882 | 34,714,308 | 34,675,485 | 34,510,400 | 34,351,657 | 35,110,210 | 34,563,319 | 34,178,340 |
Stock compensation expense | $ 6,270 | $ 5,708 | $ 5,107 | $ 5,956 | $ 5,027 | $ 4,484 | $ 4,450 | $ 5,809 | $ 23,041 | $ 19,770 | $ 16,047 |
Amortization of intangibles | $ 3,483 | $ 3,487 | $ 3,507 | $ 3,498 | $ 3,592 | $ 2,848 | $ 2,718 | $ 2,715 | $ 13,975 | $ 11,873 | $ 10,226 |
Weighted average common shares considered anti-dilutive and not included in computing diluted earnings per share | 1,206,335 | 151,961 | 92,538 | 73,896 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerators: | |||||||||||
Net income | $ (9,355) | $ 21,077 | $ 20,378 | $ 16,788 | $ 15,488 | $ 16,050 | $ 16,375 | $ 13,820 | $ 48,888 | $ 61,733 | $ 51,565 |
Denominators: | |||||||||||
Basic weighted average common shares outstanding | 34,086,711 | 33,838,374 | 33,819,320 | 33,845,560 | 33,638,170 | 33,624,401 | 33,621,444 | 33,380,028 | 33,897,916 | 33,566,367 | 33,298,104 |
Dilutive effect of share based awards (in shares) | 1,212,294 | 996,952 | 880,236 | ||||||||
Diluted weighted average common shares outstanding | 34,086,711 | 35,043,987 | 34,993,226 | 35,108,882 | 34,714,308 | 34,675,485 | 34,510,400 | 34,351,657 | 35,110,210 | 34,563,319 | 34,178,340 |
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ (0.27) | $ 0.62 | $ 0.60 | $ 0.50 | $ 0.46 | $ 0.48 | $ 0.49 | $ 0.41 | $ 1.44 | $ 1.84 | $ 1.55 |
Diluted (in dollars per share) | $ (0.27) | $ 0.60 | $ 0.58 | $ 0.48 | $ 0.45 | $ 0.46 | $ 0.47 | $ 0.40 | $ 1.39 | $ 1.79 | $ 1.51 |
Weighted average common shares considered anti-dilutive and not included in computing diluted earnings per share | 1,206,335 | 151,961 | 92,538 | 73,896 |
Other Income, net - Summary of
Other Income, net - Summary of Other Income, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Nonoperating Income (Expense) [Abstract] | |||
Interest and dividend income | $ 1,625 | $ 1,673 | $ 2,904 |
Gain on mutual fund investments | 8,766 | 8,087 | 3,902 |
Change in fair value of earn-out consideration | 0 | 4,060 | 0 |
Other, net | 1,468 | 1,588 | 221 |
Other income, net | $ 11,859 | $ 15,408 | $ 7,027 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Owned Assets: | ||
Owned assets, gross | $ 207,318 | $ 164,097 |
Less: Accumulated depreciation and amortization | (141,059) | (115,568) |
Owned assets, net | 66,259 | 48,529 |
Assets under capital leases: | ||
Assets under capital leases, gross | 1,818 | 1,797 |
Less: Accumulated depreciation | (1,320) | (1,297) |
Assets under capital leases, net | 498 | 500 |
Property and Equipment, net | 66,757 | 49,029 |
Network equipment and computers | ||
Owned Assets: | ||
Owned assets, gross | $ 77,587 | 65,381 |
Network equipment and computers | Minimum | ||
Owned Assets: | ||
Estimated useful life | 3 years | |
Network equipment and computers | Maximum | ||
Owned Assets: | ||
Estimated useful life | 5 years | |
Software | ||
Owned Assets: | ||
Owned assets, gross | $ 59,325 | 44,617 |
Software | Minimum | ||
Owned Assets: | ||
Estimated useful life | 3 years | |
Software | Maximum | ||
Owned Assets: | ||
Estimated useful life | 5 years | |
Leasehold improvements | ||
Owned Assets: | ||
Owned assets, gross | $ 38,857 | 31,192 |
Assets under capital leases: | ||
Assets under capital leases, gross | $ 941 | 854 |
Leasehold improvements | Minimum | ||
Owned Assets: | ||
Estimated useful life | 3 years | |
Leasehold improvements | Maximum | ||
Owned Assets: | ||
Estimated useful life | 8 years | |
Office furniture and equipment | ||
Owned Assets: | ||
Owned assets, gross | $ 19,667 | 15,426 |
Assets under capital leases: | ||
Assets under capital leases, gross | $ 167 | 133 |
Office furniture and equipment | Minimum | ||
Owned Assets: | ||
Estimated useful life | 3 years | |
Office furniture and equipment | Maximum | ||
Owned Assets: | ||
Estimated useful life | 8 years | |
Motor vehicles | ||
Owned Assets: | ||
Owned assets, gross | $ 638 | 580 |
Assets under capital leases: | ||
Assets under capital leases, gross | $ 710 | 810 |
Motor vehicles | Minimum | ||
Owned Assets: | ||
Estimated useful life | 2 years | |
Motor vehicles | Maximum | ||
Owned Assets: | ||
Estimated useful life | 5 years | |
Buildings | ||
Owned Assets: | ||
Estimated useful life | 30 years | |
Owned assets, gross | $ 1,245 | 1,171 |
Land | ||
Owned Assets: | ||
Owned assets, gross | 815 | 766 |
Capital work in progress | ||
Owned Assets: | ||
Owned assets, gross | $ 9,184 | $ 4,964 |
Property and Equipment - Deprec
Property and Equipment - Depreciation and Amortization Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 24,574 | $ 22,707 | $ 21,239 |
Depreciation & amortization | |||
Property, Plant and Equipment [Line Items] | |||
Effect of the foreign exchange gains (losses) upon settlement of cash flow hedges | $ 435 |
Property and Equipment Property
Property and Equipment Property and Equipment - Internally Developed Software Costs, Included under Software (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Abstract] | ||
Cost | $ 2,571 | $ 2,242 |
Less : Accumulated amortization | 976 | 336 |
Net | $ 1,595 | $ 1,906 |
Business Combinations, Goodwi64
Business Combinations, Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | Dec. 22, 2017 | Jun. 19, 2015 | Feb. 27, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Vesting period | 4 years | |||
Health Integrated, Inc. | ||||
Business Acquisition [Line Items] | ||||
Initial purchase consideration | $ 22,577 | |||
Maximum contingent consideration | 5,000 | |||
Contingent cash consideration | $ 920 | |||
Acquisition related costs | $ 795 | |||
Health Integrated, Inc. | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Weighted average useful life | 7 years | |||
Health Integrated, Inc. | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Weighted average useful life | 1 year | |||
Health Integrated, Inc. | Trade names and trademarks | ||||
Business Acquisition [Line Items] | ||||
Weighted average useful life | 2 years | |||
Restricted Stock Units | Health Integrated, Inc. | Subsequent Event | ||||
Business Acquisition [Line Items] | ||||
Issued number of shares of restricted stock | 4,444 | |||
Issued shares of restricted stock, fair value | $ 275 | |||
Vesting period | 4 years |
Business Combinations, Goodwi65
Business Combinations, Goodwill and Intangible Assets Business Combinations, Goodwill and Intangible Assets - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 22, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 204,481 | $ 186,770 | $ 171,535 | |
Health Integrated, Inc. | ||||
Business Acquisition [Line Items] | ||||
Tangible Assets | $ 5,945 | |||
Liabilities | (7,193) | |||
Goodwill | 15,957 | |||
Total purchase price | 23,549 | |||
Health Integrated, Inc. | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Identifiable Intangible Assets | 6,760 | |||
Health Integrated, Inc. | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Identifiable Intangible Assets | 1,510 | |||
Health Integrated, Inc. | Trade names and trademarks | ||||
Business Acquisition [Line Items] | ||||
Identifiable Intangible Assets | $ 570 |
Business Combinations, Goodwi66
Business Combinations, Goodwill and Intangible Assets Business Combinations, Goodwill and Intangible Assets - Unaudited Pro Forma Financial Information (Details) - Health Integrated, Inc. - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Revenues | $ 801,101 | $ 729,938 |
Net income | $ 46,998 | $ 58,232 |
Earnings per share: | ||
Basic (in dollars per share) | $ 1.39 | $ 1.73 |
Diluted (in dollars per share) | $ 1.34 | $ 1.68 |
Business Combinations, Goodwi67
Business Combinations, Goodwill and Intangible Assets - Summary of Company's Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 186,770 | $ 171,535 |
Acquisitions | 15,957 | 16,108 |
Currency translation adjustments | 1,754 | (873) |
Ending Balance | 204,481 | 186,770 |
Insurance | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 38,110 | 35,824 |
Acquisitions | 0 | 2,510 |
Currency translation adjustments | 223 | (224) |
Ending Balance | 38,333 | 38,110 |
Healthcare | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 19,276 | 19,276 |
Acquisitions | 15,957 | 0 |
Currency translation adjustments | 0 | 0 |
Ending Balance | 35,233 | 19,276 |
TT&L | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 12,983 | 13,278 |
Acquisitions | 0 | 0 |
Currency translation adjustments | 696 | (295) |
Ending Balance | 13,679 | 12,983 |
F&A | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 47,537 | 47,891 |
Acquisitions | 0 | 0 |
Currency translation adjustments | 835 | (354) |
Ending Balance | 48,372 | 47,537 |
All Other | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 5,326 | 5,326 |
Acquisitions | 0 | 0 |
Currency translation adjustments | 0 | 0 |
Ending Balance | 5,326 | 5,326 |
Analytics | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 63,538 | 49,940 |
Acquisitions | 0 | 13,598 |
Currency translation adjustments | 0 | 0 |
Ending Balance | $ 63,538 | $ 63,538 |
Business Combinations, Goodwi68
Business Combinations, Goodwill and Intangible Assets - Summary of Company's Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 108,884 | $ 99,487 |
Accumulated Amortization | (60,826) | (46,617) |
Total | 48,058 | 52,870 |
Intangible assets, gross | 109,784 | 100,387 |
Intangible assets, net | 48,958 | 53,770 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 82,165 | 75,181 |
Accumulated Amortization | (43,667) | (32,968) |
Total | 38,498 | 42,213 |
Leasehold benefits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 2,888 | 2,715 |
Accumulated Amortization | (2,596) | (2,247) |
Total | 292 | 468 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 15,835 | 14,186 |
Accumulated Amortization | (8,749) | (6,468) |
Total | 7,086 | 7,718 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 2,045 | 2,045 |
Accumulated Amortization | (1,780) | (1,612) |
Total | 265 | 433 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 5,951 | 5,360 |
Accumulated Amortization | (4,034) | (3,322) |
Total | 1,917 | 2,038 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, trade names and trademarks | $ 900 | $ 900 |
Business Combinations, Goodwi69
Business Combinations, Goodwill and Intangible Assets - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Combinations, Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||
Amortization of Intangible Assets | $ 3,483 | $ 3,487 | $ 3,507 | $ 3,498 | $ 3,592 | $ 2,848 | $ 2,718 | $ 2,715 | $ 13,975 | $ 11,873 | $ 10,226 |
Business Combinations, Goodwi70
Business Combinations, Goodwill and Intangible Assets - Weighted Average Life of Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 5 years 4 months 10 days |
Leasehold benefits | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 1 year 4 months 28 days |
Developed technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 3 years 24 days |
Non-compete agreements | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 1 year 8 months 9 days |
Trade names and trademarks | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 4 years 3 months 15 days |
Business Combinations, Goodwi71
Business Combinations, Goodwill and Intangible Assets - Estimated Future Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Business Combinations, Goodwill And Intangible Assets Disclosure [Abstract] | ||
2,018 | $ 15,249 | |
2,019 | 12,508 | |
2,020 | 5,086 | |
2,021 | 4,021 | |
2,022 | 3,213 | |
2023 and thereafter | 7,981 | |
Total | $ 48,058 | $ 52,870 |
Investment in equity affiliate
Investment in equity affiliate (Details) $ in Thousands | Dec. 12, 2017USD ($) |
Corridor | |
Schedule of Equity Method Investments [Line Items] | |
Aggregate cost | $ 3,000 |
Other current assets (Details)
Other current assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Derivative instruments | $ 10,938 | $ 3,324 |
Advances to suppliers | 2,451 | 1,091 |
Receivables from statutory authorities | 7,598 | 11,870 |
Others | 8,595 | 4,883 |
Other current assets | $ 29,582 | $ 21,168 |
Accrued expenses and other cu74
Accrued expenses and other current liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accrued expenses | $ 43,235 | $ 30,690 |
Derivative instruments | 555 | 1,430 |
Client liability account | 8,982 | 4,005 |
Others | 8,594 | 7,139 |
Accrued expenses and other current liabilities | $ 61,366 | $ 43,264 |
Non-current liabilities - Summa
Non-current liabilities - Summary of Non-Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Liabilities, Noncurrent [Abstract] | ||
Derivative instruments | $ 322 | $ 828 |
Unrecognized tax benefits | 892 | 3,640 |
Deferred rent | 8,176 | 7,237 |
Retirement benefits | 3,377 | 1,977 |
Others | 3,435 | 1,137 |
Non-current liabilities | $ 16,202 | $ 14,819 |
Accumulated Other Comprehensi76
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Equity [Abstract] | ||
Cumulative currency translation adjustments | $ (58,405) | $ (77,299) |
Unrealized gain on cash flow hedges, net of taxes of $4,918 and $1,207 | 11,932 | 2,740 |
Retirement benefits, net of taxes of ($74) and ($342) | 763 | (498) |
Accumulated other comprehensive loss | (45,710) | (75,057) |
Unrealized gain on cash flow hedges, taxes | 4,918 | 1,207 |
Retirement benefits, taxes | $ (74) | $ (342) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Detail) - Recurring - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Money market and mutual funds | $ 162,906 | |
Derivative financial instruments | 18,298 | $ 6,318 |
Total | 181,204 | 6,318 |
Liabilities | ||
Derivative financial instruments | 877 | 2,258 |
Fair value of earn-out consideration | 920 | |
Total | 1,797 | 2,258 |
Level 1 | ||
Assets | ||
Money market and mutual funds | 162,906 | 0 |
Total | 162,906 | 0 |
Liabilities | ||
Fair value of earn-out consideration | 0 | |
Level 2 | ||
Assets | ||
Money market and mutual funds | 0 | |
Derivative financial instruments | 18,298 | 6,318 |
Total | 18,298 | 6,318 |
Liabilities | ||
Derivative financial instruments | 877 | 2,258 |
Fair value of earn-out consideration | 0 | |
Total | 877 | 2,258 |
Level 3 | ||
Assets | ||
Money market and mutual funds | 0 | |
Liabilities | ||
Derivative financial instruments | 0 | $ 0 |
Fair value of earn-out consideration | 920 | |
Total | $ 920 |
Derivatives and Hedge Account78
Derivatives and Hedge Accounting - Additional Information (Detail) ÂŁ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017GBP (ÂŁ) | Dec. 31, 2016GBP (ÂŁ) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net derivative losses which could be reclassified into earnings within the next 12 months | $ 10,411,000 | |||
Maximum outstanding term of cash flow hedges | 45 months | |||
Gain/(losses) that reclassified from AOCI into earning for discontinued hedging transactions | $ 0 | |||
Derivatives Designated as Hedging Instruments | Derivatives in cash flow hedging relationships | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange contracts outstanding | $ 300,757,000 | 218,545,000 | ||
Derivative not designated as hedging instruments | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange contracts outstanding | $ 98,967,000 | $ 63,980,000 | ÂŁ 17,947 | ÂŁ 17,974 |
Derivatives and Hedge Account79
Derivatives and Hedge Accounting - Summary of Fair Value of Foreign Currency Exchange Contracts (Detail) - Foreign exchange contracts - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | $ 10,892 | $ 3,211 |
Derivative designated as hedging instruments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | 7,360 | 2,994 |
Derivative designated as hedging instruments | Accrued expense and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | 481 | 1,430 |
Derivative designated as hedging instruments | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | 322 | 828 |
Derivative not designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | 46 | 113 |
Derivative not designated as hedging instruments | Accrued expense and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | $ 74 | $ 0 |
Derivatives and Hedge Account80
Derivatives and Hedge Accounting - Summary of Effect of Foreign Currency Exchange Contracts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Gain)/loss recognized in consolidated statements of income | $ (2,839) | $ (5,597) | $ (2,744) |
Derivatives in cash flow hedging relationships | Derivative designated as hedging instruments | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Gain)/loss recognized in AOCI | $ (19,802) | $ (5,129) |
Derivatives and Hedge Account81
Derivatives and Hedge Accounting Derivatives and Hedge Accounting - Location of Gain or Loss Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cost of revenue | $ 495,586 | $ 447,956 | $ 402,917 |
General & administrative expenses | 102,567 | 88,648 | 77,293 |
Selling & marketing expenses | 53,383 | 50,582 | 49,474 |
Depreciation & amortization | 38,549 | 34,580 | 31,465 |
Foreign exchange gain, net | (2,839) | (5,597) | $ (2,744) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives Designated as Hedging Instruments | Derivatives in cash flow hedging relationships | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cost of revenue | (5,465) | ||
General & administrative expenses | (960) | ||
Selling & marketing expenses | (103) | ||
Depreciation & amortization | (371) | ||
Foreign exchange gain, net | 0 | (2,669) | |
Reclassification from AOCI, before tax | (6,899) | (2,669) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives Designated as Hedging Instruments | Derivatives in fair value hedging relationships | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign exchange gain, net | $ (5,056) | $ (4,790) |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) | Nov. 21, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Feb. 23, 2015USD ($) | Oct. 24, 2014USD ($) |
Credit Facilities [Line Items] | |||||
Current portion of long-term borrowings | $ 10,318,000 | $ 10,000,000 | |||
Long term borrowings | 50,391,000 | 35,000,000 | |||
Structured payable | 709,000 | ||||
Notes Payable, Other Payables | |||||
Credit Facilities [Line Items] | |||||
Current portion of long-term borrowings | 318,000 | ||||
Long term borrowings | 391,000 | ||||
Revolving Credit Facility | |||||
Credit Facilities [Line Items] | |||||
Revolving credit facility | 60,000,000 | ||||
Current portion of long-term borrowings | 10,000,000 | ||||
Long term borrowings | 50,000,000 | ||||
Unamortized debt issuance costs | $ 773,000 | $ 272,000 | |||
Revolving Credit Facility | Credit Facility | |||||
Credit Facilities [Line Items] | |||||
Revolving credit facility | $ 50,000,000 | ||||
Option to increase additional credit facility | $ 50,000,000 | ||||
Line of credit interest rate during period | 2.99% | ||||
Revolving Credit Facility | New Credit Agreement | |||||
Credit Facilities [Line Items] | |||||
Revolving credit facility | $ 200,000,000 | ||||
Option to increase additional credit facility | $ 100,000,000 | ||||
Line of credit interest rate during period | 3.50% | ||||
Interest coverage ratio, minimum | 3.5 | ||||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 3 | ||||
Issuance costs | $ 790,000 | ||||
Revolving Credit Facility | New Credit Agreement | Minimum | |||||
Credit Facilities [Line Items] | |||||
Commitment fee percentage range on unused credit facility | 0.15% | ||||
Revolving Credit Facility | New Credit Agreement | Maximum | |||||
Credit Facilities [Line Items] | |||||
Commitment fee percentage range on unused credit facility | 0.30% | ||||
Revolving Credit Facility | New Credit Agreement | Prime Rate | Minimum | |||||
Credit Facilities [Line Items] | |||||
Basis spread on variable rate | 0.00% | ||||
Revolving Credit Facility | New Credit Agreement | Prime Rate | Maximum | |||||
Credit Facilities [Line Items] | |||||
Basis spread on variable rate | 0.75% | ||||
Revolving Credit Facility | New Credit Agreement | London Interbank Offered Rate (LIBOR) | Minimum | |||||
Credit Facilities [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Revolving Credit Facility | New Credit Agreement | London Interbank Offered Rate (LIBOR) | Maximum | |||||
Credit Facilities [Line Items] | |||||
Basis spread on variable rate | 1.75% |
Capital Structure - Additional
Capital Structure - Additional Information (Detail) | Feb. 28, 2017USD ($) | Dec. 30, 2014USD ($) | Dec. 31, 2017USD ($)ClassOfCommonStock$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares |
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 | 69,154 | 17,676 | ||
Withholding tax payments related to the vesting of restricted stock for total consideration | $ 3,267,000 | $ 807,000 | ||
Weighted average purchase price per share prior to the vesting date (in dollars per share) | $ / shares | $ 47.24 | $ 45.65 | ||
2014 Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, period start (year) | 2,015 | |||
Stock repurchase program, period end (year) | 2,017 | |||
Repurchase of common stock authorized by board of directors up to | $ 20,000,000 | |||
Common stock shares purchased under the repurchase program | shares | 364,056 | |||
Common stock aggregate purchase price including commissions | $ 17,396,000 | |||
Common stock average purchase price per share (in dollars per share) | $ / shares | $ 47.78 | |||
2017 Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, period start (year) | 2,017 | |||
Stock repurchase program, period end (year) | 2,019 | |||
Additional authorized amount | $ 100,000,000 | |||
Authorized increase in repurchase amount, 2018 | 40,000,000 | |||
Authorized increase in repurchase amount, 2019 | 40,000,000 | |||
2017 Repurchase Program | Minimum | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Authorized increase in repurchase amount | 20,000,000 | |||
2017 Repurchase Program | Maximum | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Authorized increase in repurchase amount | $ 40,000,000 | |||
2014 and 2017 Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock shares purchased under the repurchase program | shares | 761,154 | |||
Common stock aggregate purchase price including commissions | $ 40,187,000 | |||
Common stock average purchase price per share (in dollars per share) | $ / shares | $ 52.80 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Change in Projected Benefit Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in projected benefit obligation: | |||
Projected benefit obligation at the beginning of the year | $ 9,711 | $ 7,909 | |
Service cost | 1,933 | 1,601 | $ 1,638 |
Interest cost | 645 | 599 | 550 |
Benefits paid | (1,001) | (837) | |
Actuarial (gain)/loss | (1,471) | 677 | |
Acquisition | 0 | 47 | |
Effect of exchange rate changes | 488 | (285) | |
Projected benefit obligation at the end of the year | 10,305 | 9,711 | $ 7,909 |
Unfunded amount–non-current | 3,377 | 1,977 | |
Unfunded amount–current | 13 | 2,094 | |
Total accrued liability | 3,390 | 4,071 | |
Accumulated benefit obligation | $ 7,022 | $ 6,533 |
Employee Benefit Plans - Net Gr
Employee Benefit Plans - Net Gratuity Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |||
Service cost | $ 1,933 | $ 1,601 | $ 1,638 |
Interest cost | 645 | 599 | 550 |
Expected return on plan assets | (401) | (416) | (385) |
Amortization of Actuarial loss | 256 | 90 | 211 |
Net gratuity cost | $ 2,433 | $ 1,874 | $ 2,014 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |||
Accumulated other comprehensive loss, expected to be recognized over the next fiscal year | $ 161 | ||
Percentage of expected return on plan assets | 7.90% | ||
Percentage of discretionary contributions towards 401(k) Plan, maximum | 4.00% | ||
Company's contribution to the 401(k) Plan | $ 2,709 | $ 2,383 | $ 1,907 |
Contribution to various defined contribution plans | $ 7,115 | $ 6,306 | $ 5,753 |
Employee Benefit Plans - Summ87
Employee Benefit Plans - Summary of Components Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax [Abstract] | ||
Net actuarial gain/(loss) | $ 697 | $ (831) |
Net prior service cost | (8) | (9) |
Deferred taxes | 74 | 342 |
Accumulated other comprehensive gain/(loss), net of tax | $ (763) | $ 498 |
Employee Benefit Plans - Summ88
Employee Benefit Plans - Summary of Weighted Average Actuarial Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 7.00% | 6.80% | 7.80% |
Rate of increase in compensation levels | 9.10% | 9.20% | 8.40% |
Expected long term rate of return on plan assets per annum | 8.30% | 9.00% | 9.00% |
Employee Benefit Plans - Summ89
Employee Benefit Plans - Summary of Expected Benefit Payments (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2,018 | $ 2,011 |
2,019 | 1,772 |
2,020 | 1,531 |
2,021 | 1,302 |
2,022 | 1,029 |
2023 to 2027 | $ 3,206 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at the beginning of the year | $ 5,640 | $ 4,923 |
Actual return | 202 | 450 |
Employer contribution | 1,700 | 1,242 |
Benefits paid | (1,001) | (837) |
Effect of exchange rate changes | 374 | (138) |
Plan assets at the ending of the year | $ 6,915 | $ 5,640 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments under Capital Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Leases [Abstract] | ||
2,018 | $ 330 | |
2,019 | 201 | |
2,020 | 127 | |
2,021 | 64 | |
Total minimum lease payments | 722 | |
Less: amount representing interest | 124 | |
Present value of minimum lease payments | 598 | |
Less: current portion | 267 | $ 232 |
Long term capital lease obligation | $ 331 | $ 300 |
Leases - Future Minimum Lease92
Leases - Future Minimum Lease Payments under Non-Cancelable Operating Lease Agreements Expiring After December 31, 2016 (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Leases [Abstract] | |
2,018 | $ 20,850 |
2,019 | 17,802 |
2,020 | 14,840 |
2,021 | 12,888 |
2,022 | 10,234 |
2023 and thereafter | 28,273 |
Total operating lease payments | $ 104,887 |
Leases - Rent Expense and Defer
Leases - Rent Expense and Deferred Rent (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Leases [Abstract] | |||
Rent expense | $ 24,015 | $ 21,382 | $ 19,943 |
Cancelable and non-cancelable operating leases | $ 8,959 | $ 7,915 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 4,626 | $ 12,652 | $ 25,045 |
Foreign | 80,408 | 71,232 | 50,731 |
Income before income tax expense | $ 85,034 | $ 83,884 | $ 75,776 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current provision: | |||
Domestic | $ 17,407 | $ 7,107 | $ 9,951 |
Foreign | 18,008 | 18,428 | 12,022 |
Total | 35,415 | 25,535 | 21,973 |
Deferred provision/(benefit): | |||
Domestic | 2,618 | (2,506) | 3,041 |
Foreign | (1,887) | (878) | (803) |
Total | 731 | (3,384) | 2,238 |
Income tax expense | $ 36,146 | $ 22,151 | $ 24,211 |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Income Tax Rate Differs from Amount Computed by Applying U.S. Federal Statutory Income Tax Rate to Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Expected tax expense | $ 29,762 | $ 29,361 | $ 26,521 |
Change in valuation allowance | (21) | 22 | 19 |
Impact of tax holiday | (4,396) | (4,027) | (2,991) |
Foreign tax rate differential | (2,616) | (2,716) | (2,797) |
Deferred tax (benefit)/provision | (1,887) | (878) | (803) |
Unrecognized tax benefits and interest | (3,905) | 495 | 324 |
State taxes, net of Federal taxes | 339 | 202 | 1,327 |
Non-deductible expenses | 825 | 144 | 26 |
Prior year tax expense/(benefit) | 0 | 2,450 | |
US Tax Reform Act impact | 29,185 | 0 | 0 |
Excess tax benefit for stock-based compensation | (9,797) | 0 | 0 |
Other | (1,343) | (452) | 135 |
Income tax expense | $ 36,146 | $ 22,151 | $ 24,211 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014operation_center | |
Income Taxes [Line Items] | ||||
Effective tax rates | 42.50% | 26.40% | ||
Re-measured net deferred tax assets and liabilities, income tax expense | $ 1,949,000 | |||
Provisional transition tax obligation | 27,236,000 | |||
Excess tax benefit | $ 9,797,000 | $ 0 | $ 0 | |
Number of operation centers, income tax holiday expired | operation_center | 2 | |||
Effective tax rate in Philippines post tax exemption | 5.00% | |||
Effect of diluted earnings per share, tax holiday (in dollars per share) | $ / shares | $ 0.13 | $ 0.12 | $ 0.09 | |
Operating loss carryforward valuation allowance | $ 20,000 | $ 351,000 | ||
Valuation allowance related to tax credit carry forward | 88,000 | 103,000 | ||
Deferred income taxes provided for Company's share of undistributed net earnings of foreign operations | 0 | |||
Undistributed net earnings of foreign operations | 376,649,000 | |||
Unrecognized tax benefits | 824,000 | 3,087,000 | ||
Recognized interest and penalties | 0 | 315,000 | ||
Accrued interest on unrecognized tax benefits | $ 68,000 | 1,553,000 | ||
First Five Years | ||||
Income Taxes [Line Items] | ||||
Percentage of tax exemption on profit | 100.00% | |||
Five to Ten Years | ||||
Income Taxes [Line Items] | ||||
Percentage of tax exemption on profit | 50.00% | |||
Expiration 2,032 | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | $ 1,554,000 | $ 4,052,000 | ||
Operating loss carry forwards expiration date | 2,032 |
Income Taxes - Summary of Com98
Income Taxes - Summary of Components of Deferred Tax Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Tax credit carry forward | $ 1,474 | $ 4,806 |
Depreciation and amortization | 2,183 | 3,765 |
Stock-based compensation | 7,647 | 10,385 |
Accrued employee costs and other expenses | 3,673 | 5,130 |
Net operating loss carry forwards | 2,068 | 1,856 |
Unrealized exchange loss | 252 | 2,099 |
Deferred rent | 2,064 | 1,307 |
Others | 1,007 | 484 |
Deferred tax assets | 20,368 | 29,832 |
Valuation allowance | (108) | (454) |
Deferred tax assets | 20,260 | 29,378 |
Deferred tax liabilities: | ||
Unrealized exchange gain | 5,069 | 1,414 |
Intangible assets | 4,648 | 13,165 |
Others | 1,958 | 0 |
Deferred tax liabilities: | 11,675 | 14,579 |
Net deferred tax assets | $ 8,585 | $ 14,799 |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Gross Unrecognized Tax Benefits (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Balance as of January 1, 2016 | $ 3,087 |
Increases related to prior year tax positions | 0 |
Decreases related to prior year tax positions | (2,520) |
Increases related to current year tax positions | 169 |
Decreases related to current year tax positions | 0 |
Effect of exchange rate changes | 88 |
Balance as of December 31, 2016 | $ 824 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - shares | Jun. 19, 2015 | Feb. 27, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiring period of equity options to employees | 10 years | ||
Vesting period | 4 years | ||
2015 Stock Options Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Increase in number of shares available for grant | 1,700,000 | ||
Number of shares available for grant | 1,509,976 | ||
2015 Stock Options Plan | Subsequent Event | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock issued on exercise/vesting of equity awards (in shares) | 145,193 |
Stock Based Compensation - Cost
Stock Based Compensation - Costs Related to Company's Stock-Based Compensation Plan (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Stock-based compensation expenses | $ 6,270 | $ 5,708 | $ 5,107 | $ 5,956 | $ 5,027 | $ 4,484 | $ 4,450 | $ 5,809 | $ 23,041 | $ 19,770 | $ 16,047 |
Cost of revenue | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Stock-based compensation expenses | 4,600 | 3,664 | 2,895 | ||||||||
General and administrative expenses | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Stock-based compensation expenses | 10,363 | 8,372 | 6,077 | ||||||||
Selling and marketing expenses | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Stock-based compensation expenses | $ 8,078 | $ 7,734 | $ 7,075 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Options Additional Information (Details) - Employee Stock Option - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | ||
Unrecognized compensation cost for unvested stock options | $ 0 | ||
Total grant date fair value of option vested in period | 0 | $ 706,000 | $ 1,228,000 |
Intrinsic value of options exercised | $ 23,027,000 | $ 12,911,000 | $ 4,413,000 |
Stock Based Compensation - S103
Stock Based Compensation - Stock Based Compensation Stock Option Activity (Detail) - Employee Stock Option - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of options, outstanding, beginning balance (in shares) | 811,902 | |
Number of options, granted (in shares) | 0 | |
Number of options, exercised (in shares) | (552,339) | |
Number of options, forfeited (in shares) | 0 | |
Number of options, outstanding, ending balance (in shares) | 259,563 | 811,902 |
Number of options, vested and exercisable at December 31, 2017 (in shares) | 259,563 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted-average exercise price, outstanding, beginning balance (in dollars per share) | $ 16.31 | |
Weighted-average exercise price, granted (in dollars per share) | 0 | |
Weighted-average exercise price, exercised (in dollars per share) | 15.50 | |
Weighted-average exercise price, forfeited (in dollars per share) | 0 | |
Weighted-average exercise price, outstanding, ending balance (in dollars per share) | 18.03 | $ 16.31 |
Weighted average exercise price, vested and exercisable at December 31, 2017 (in dollars per share) | $ 18.03 | |
Aggregate intrinsic value, outstanding, beginning balance | $ 27,718 | |
Aggregate intrinsic value, outstanding, ending balance | $ 10,985 | $ 27,718 |
Weighted-average remaining contractual life, outstanding, ending balance | 2 years 9 months 5 days | 2 years 11 months 16 days |
Aggregate intrinsic value, vested and exercisable at December 31, 2017 | $ 10,985 | |
Weighted-average remaining contractual life, vested and exercisable at December 31, 2017 | 2 years 9 months 5 days |
Stock Based Compensation - Comp
Stock Based Compensation - Company's Stock Options Outstanding and Stock Options Vested and Exercisable (Detail) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding (in shares) | shares | 259,563 |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 18.03 |
$8.00 to $15.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | 8 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 15 |
Options Outstanding (in shares) | shares | 98,784 |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 9.64 |
$15.01 to $21.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | 15.01 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 21 |
Options Outstanding (in shares) | shares | 36,516 |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 19.05 |
$21.01 to $28.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | 21.01 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 28 |
Options Outstanding (in shares) | shares | 124,263 |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 24.40 |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Stock Activity Under Company's Stock Plans (Detail) - $ / shares | 12 Months Ended | |
Dec. 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, beginning balance (in shares) | 246,940 | |
Number, granted (in shares) | 0 | |
Number, vested (in shares) | (60,168) | |
Number, forfeited (in shares) | (4,505) | |
Number, outstanding, ending balance (in shares) | 182,267 | 246,940 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted-average fair value, outstanding, beginning balance (in dollars per share) | $ 42.42 | |
Weighted-average fair value, granted (in dollars per share) | 0 | |
Weighted-average fair value, vested (in dollars per share) | 42.30 | |
Weighted-average fair value, forfeited (in dollars per share) | 35.11 | |
Weighted-average fair value, outstanding, ending balance (in dollars per share) | $ 42.64 | $ 42.42 |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Number, outstanding, beginning balance (in shares) | 1,256,288 | |
Number, granted (in shares) | 391,927 | |
Number, vested (in shares) | (489,176) | |
Number, forfeited (in shares) | (112,040) | |
Number, outstanding, ending balance (in shares) | 1,046,999 | 1,256,288 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted-average fair value, outstanding, beginning balance (in dollars per share) | $ 37.38 | |
Weighted-average fair value, granted (in dollars per share) | 48.02 | |
Weighted-average fair value, vested (in dollars per share) | 34.52 | |
Weighted-average fair value, forfeited (in dollars per share) | 41.50 | |
Weighted-average fair value, outstanding, ending balance (in dollars per share) | $ 42.26 | $ 37.38 |
Restricted stock units vested for which underlying common stock to be issued (in shares) | 11,058 | 19,874 |
Restricted stock units vested (in shares) | 146,112 | 135,054 |
Stock Based Compensation - R106
Stock Based Compensation - Restricted Stock and RSU Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Stock and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 34,463 | ||
Cost not yet recognized, period for recognition | 2 years 5 months 20 days | ||
Weighted-average fair value of restricted stock and RSUs granted (in dollars per share) | $ 48.02 | $ 48.97 | $ 35.18 |
Number of restricted stock units, vested | $ 19,430 | $ 10,761 | $ 12,620 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value of restricted stock and RSUs granted (in dollars per share) | $ 48.02 |
Stock Based Compensation - Perf
Stock Based Compensation - Performance Based Stock Awards Additional Information (Details) - USD ($) $ in Thousands | Jun. 19, 2015 | Feb. 27, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance based percentage | 100.00% | ||||
Revenue Based PRSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of target shares an employee can earn | 200.00% | ||||
Number, granted (in shares) | 62,113 | ||||
Revenue Based PRSUs | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of target shares an employee can earn | 200.00% | ||||
Revenue Based PRSUs | Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance based percentage | 50.00% | ||||
Vesting period | 3 years | ||||
Revenue Based PRSUs | Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Year One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of award vesting rights | 33.33% | ||||
Revenue Based PRSUs | Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Year Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of award vesting rights | 33.33% | ||||
Market Condition Based PRSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number, granted (in shares) | 62,100 | ||||
Market Condition Based PRSUs | Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance based percentage | 50.00% | ||||
Vesting period | 3 years | ||||
Market Condition Based PRSUs | Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of target shares an employee can earn | 200.00% | ||||
Performance Based Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 6,810 | ||||
Cost not yet recognized, period for recognition | 1 year 9 months 5 days | ||||
Performance Based Stock Awards | Subsequent Event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number, granted (in shares) | 458,000 |
Stock Based Compensation Share-
Stock Based Compensation Share-based Compensation - Summary of Weighted Average Valuation Assumptions for Market Condition Performance Restricted Stock Units (Details) - Market Condition Based PRSUs | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected life (years) | 2 years 10 months 10 days | 2 years 10 months 5 days | 2 years 10 months 1 day |
Risk free interest rate | 1.40% | 0.88% | 0.98% |
Volatility | 23.80% | 28.00% | 30.30% |
Stock Based Compensation - P109
Stock Based Compensation - Performance Restricted Stock Activity (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Revenue Based PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Number, outstanding, beginning balance (in shares) | shares | 115,174 |
Number, granted (in shares) | shares | 62,113 |
Number, adjustment upon final determination of level of performance goal achievement (in shares) | shares | (9,320) |
Number, vested (in shares) | shares | (45,192) |
Number, forfeited (in shares) | shares | (9,585) |
Number, outstanding, ending balance (in shares) | shares | 113,190 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average fair value, outstanding, beginning balance (in dollars per share) | $ / shares | $ 41.70 |
Weighted-average fair value, granted (in dollars per share) | $ / shares | 47.73 |
Weighted-average fair value, adjustment upon final determination of level of performance goal achievement (in shares) | $ / shares | 34.75 |
Weighted-average fair value, vested (in dollars per share) | $ / shares | 34.75 |
Weighted-average fair value, forfeited (in dollars per share) | $ / shares | 44.35 |
Weighted-average fair value, outstanding, ending balance (in dollars per share) | $ / shares | $ 48.13 |
Market Condition Based PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Number, outstanding, beginning balance (in shares) | shares | 215,171 |
Number, granted (in shares) | shares | 62,100 |
Number, additionally issued due to achievement of higher-than-target performance (in shares) | shares | 154,513 |
Number, vested (in shares) | shares | (309,026) |
Number, forfeited (in shares) | shares | (9,584) |
Number, outstanding, ending balance (in shares) | shares | 113,174 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average fair value, outstanding, beginning balance (in dollars per share) | $ / shares | $ 47.42 |
Weighted-average fair value, granted (in dollars per share) | $ / shares | 54.10 |
Weighted-average fair value, adjustment upon final determination of level of performance goal achievement (in shares) | $ / shares | 39.60 |
Weighted-average fair value, vested (in dollars per share) | $ / shares | 39.60 |
Weighted-average fair value, forfeited (in dollars per share) | $ / shares | 58.85 |
Weighted-average fair value, outstanding, ending balance (in dollars per share) | $ / shares | $ 60.80 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Related Party Transactions [Abstract] | |
Revenue from related party | $ 1,748 |
Accounts receivable from related party | $ 140 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase commitments, net of advances | $ 9,500 | |
Percentage of export-oriented units established | 100.00% | |
Aggregate disputed amount amount related to transfer pricing and permanent establishment | $ 18,065 | $ 17,963 |
Total bank guarantees and deposits in respect of contingencies | 8,573 | 8,640 |
Amounts paid as deposits in respect of contingencies | 6,499 | 6,690 |
Bank guarantee issued | $ 2,074 | $ 1,950 |