Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 25, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-33089 | ||
Entity Registrant Name | EXLSERVICE HOLDINGS, INC. | ||
Entity Central Index Key | 0001297989 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 82-0572194 | ||
Entity Address, Address Line One | 320 Park Avenue, | ||
Entity Address, Address Line Two | 29th Floor, | ||
Entity Address, City or Town | New York, | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10022 | ||
City Area Code | 212 | ||
Local Phone Number | 277-7100 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | EXLS | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,189,025,465 | ||
Entity Common Stock, Shares Outstanding | 34,364,691 | ||
Documents Incorporated by Reference | Part III incorporates information from certain portions of the registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the fiscal year end of December 31, 2019 . |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 119,165 | $ 95,881 |
Short-term investments | 202,238 | 184,489 |
Restricted cash | 5,453 | 5,608 |
Accounts receivable, net | 171,864 | 164,752 |
Prepaid expenses | 13,246 | 11,326 |
Advance income tax, net | 4,698 | 9,639 |
Other current assets | 24,594 | 28,240 |
Total current assets | 541,258 | 499,935 |
Property and equipment, net | 79,142 | 73,510 |
Operating lease right-of-use assets | 86,396 | |
Restricted cash | 2,426 | 2,642 |
Deferred tax assets, net | 11,855 | 6,602 |
Intangible assets, net | 73,982 | 95,495 |
Goodwill | 349,529 | 349,984 |
Other assets | 36,016 | 31,015 |
Investment in equity affiliate | 2,484 | 2,753 |
Total assets | 1,183,088 | 1,061,936 |
Current liabilities: | ||
Accounts payable | 6,564 | 5,653 |
Current portion of long-term borrowings | 40,867 | 21,423 |
Deferred revenue | 13,436 | 7,722 |
Accrued employee costs | 71,626 | 54,893 |
Accrued expenses and other current liabilities | 71,023 | 64,169 |
Current portion of operating lease liabilities | 24,148 | |
Income taxes payable, net | 1,432 | 1,012 |
Current portion of finance lease liabilities | 253 | 223 |
Total current liabilities | 229,349 | 155,095 |
Long-term borrowings, less current portion | 194,131 | 263,241 |
Operating lease liabilities, less current portion | 74,709 | 0 |
Income taxes payable | 1,790 | 0 |
Deferred tax liabilities, net | 966 | 8,445 |
Finance lease liabilities, less current portion | 430 | |
Finance lease liabilities, less current portion | 315 | |
Other non-current liabilities | 11,712 | 16,521 |
Total liabilities | 513,087 | 443,617 |
Commitments and contingencies (Refer Note 26) | ||
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, 38,480,654 shares issued and 34,185,241 shares outstanding as of December 31, 2019 and 37,850,544 shares issued and 34,222,476 shares outstanding as of December 31, 2018 | 39 | 38 |
Additional paid-in capital | 391,240 | 364,179 |
Retained earnings | 551,903 | 484,244 |
Accumulated other comprehensive loss | (84,892) | (83,467) |
Total including shares held in treasury | 858,290 | 764,994 |
Less: 4,295,413 shares as of December 31, 2019 and 3,628,068 shares as of December 31, 2018, held in treasury, at cost | (188,289) | (146,925) |
Stockholders' equity | 670,001 | 618,069 |
Non-controlling interest | 0 | 250 |
Total equity | 670,001 | 618,319 |
Total liabilities and stockholders’ equity | $ 1,183,088 | $ 1,061,936 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock shares issued (in shares) | 38,480,626 | 37,850,544 |
Common stock shares outstanding (in shares) | 34,185,213 | 34,222,476 |
Held in treasury at cost (in shares) | 4,295,413 | 3,628,068 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Statement [Abstract] | ||||
Revenues, net | $ 991,346 | $ 883,112 | $ 762,310 | |
Cost of revenues | [1] | 655,490 | 584,855 | 495,142 |
Gross profit | [1] | 335,856 | 298,257 | 267,168 |
Operating expenses: | ||||
General and administrative expenses | 126,909 | 116,202 | 102,515 | |
Selling and marketing expenses | 71,842 | 63,612 | 53,379 | |
Depreciation and amortization expense | 51,981 | 48,566 | 38,549 | |
Impairment and restructuring charges | 8,671 | 20,056 | 0 | |
Total operating expenses | 259,403 | 248,436 | 194,443 | |
Income from operations | 76,453 | 49,821 | 72,725 | |
Foreign exchange gain, net | 3,752 | 4,787 | 2,839 | |
Interest expense | (13,612) | (7,227) | (1,889) | |
Other income, net | 16,507 | 12,989 | 11,359 | |
Income before income tax expense and earnings from equity affiliates | 83,100 | 60,370 | 85,034 | |
Income tax expense | 15,172 | 3,397 | 36,146 | |
Income before earnings from equity affiliates | 67,928 | 56,973 | 48,888 | |
Loss from equity-method investment | 269 | 247 | 0 | |
Net income attributable to ExlService Holdings, Inc. stockholders | $ 67,659 | $ 56,726 | $ 48,888 | |
Earnings per share attributable to ExlService Holdings, Inc. stockholders: | ||||
Basic (in dollars per share) | $ 1.97 | $ 1.65 | $ 1.44 | |
Diluted (in dollars per share) | $ 1.95 | $ 1.62 | $ 1.39 | |
Weighted-average number of shares used in computing earnings per share: | ||||
Basic (in shares) | 34,350,150 | 34,451,008 | 33,897,916 | |
Diluted (in shares) | 34,732,683 | 35,030,984 | 35,110,210 | |
[1] | Exclusive of depreciation and amortization expense. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 67,659 | $ 56,726 | $ 48,888 | |
Other comprehensive income/(loss): | ||||
Unrealized gain/(loss) on cash flow hedges | 8,773 | (13,919) | 19,802 | |
Foreign currency translation (loss)/gain | (3,486) | (25,700) | 18,894 | |
Retirement benefits | (2,539) | 382 | 1,273 | |
Reclassification adjustments | ||||
Gain on cash flow hedges | [1] | (3,951) | ||
Gain on cash flow hedges | [1] | (3,149) | (6,899) | |
Retirement benefits | [2] | (159) | (153) | 256 |
Income tax (expense)/benefit relating to above | [3] | (63) | 4,782 | (3,979) |
Total other comprehensive (loss)/income | (1,425) | (37,757) | 29,347 | |
Total comprehensive income | $ 66,234 | $ 18,969 | $ 78,235 | |
[1] | These are reclassified to net income and are included either in cost of revenues or operating expenses, as applicable in the consolidated statements of income. Refer to Note 17 to the consolidated financial statements. | |||
[2] | These are reclassified to net income and are included in other income, net in the consolidated statements of income. Refer to Note 20 to the consolidated financial statements. | |||
[3] | These are income tax (expense)/benefit recognized on cash flow hedges and retirement benefits. Refer to Note 22 to the consolidated financial statements. |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income | Treasury Stock | Non - Controlling Interest |
Beginning balance (in shares) at Dec. 31, 2016 | 35,699,819 | 2,071,710 | |||||
Beginning balance at Dec. 31, 2016 | $ 532,178 | $ 36 | $ 284,646 | $ 382,722 | $ (75,057) | $ (60,362) | $ 193 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued against stock-based compensation plans (in shares) | 1,090,932 | ||||||
Stock issued against stock-based compensation plans | 8,561 | $ 1 | 8,560 | ||||
Stock issued, business acquisition | 0 | ||||||
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 (loss) | 29,347 | 29,347 | |||||
Net income | 48,888 | 48,888 | |||||
Ending balance (in shares) at Dec. 31, 2017 | 36,790,751 | 2,902,018 | |||||
Ending balance at Dec. 31, 2017 | 600,045 | $ 37 | 322,246 | 427,064 | (45,710) | $ (103,816) | 224 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued against stock-based compensation plans (in shares) | 990,334 | ||||||
Stock issued against stock-based compensation plans | 1,398 | $ 1 | 1,397 | ||||
Stock issued business acquisition (in shares) | 69,459 | ||||||
Stock issued, business acquisition | 4,080 | 4,080 | |||||
Stock-based compensation | 23,901 | 23,901 | |||||
Acquisition of treasury stock (in shares) | (726,050) | ||||||
Acquisition of treasury stock | (43,109) | $ (43,109) | |||||
Allocation of equity component related to the convertible senior notes, net of tax and issuance costs | 12,555 | 12,555 | |||||
Non-controlling interest | 26 | 26 | |||||
Other comprehensive income (loss) | (37,757) | (37,757) | |||||
Net income | $ 56,726 | 56,726 | |||||
Ending balance (in shares) at Dec. 31, 2018 | 34,222,476 | 37,850,544 | 3,628,068 | ||||
Ending balance at Dec. 31, 2018 | $ 618,319 | $ 38 | 364,179 | 484,244 | (83,467) | $ (146,925) | 250 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued against stock-based compensation plans (in shares) | 630,110 | ||||||
Stock issued against stock-based compensation plans | 987 | $ 1 | 986 | ||||
Stock issued, business acquisition | 0 | ||||||
Stock-based compensation | 26,070 | 26,070 | |||||
Acquisition of treasury stock (in shares) | (667,345) | ||||||
Acquisition of treasury stock | (41,364) | $ (41,364) | |||||
Allocation of equity component related to the convertible senior notes, net of tax and issuance costs | (13) | (13) | |||||
Purchase of non-controlling interest | (232) | 18 | (250) | ||||
Other comprehensive income (loss) | (1,425) | (1,425) | |||||
Net income | $ 67,659 | 67,659 | |||||
Ending balance (in shares) at Dec. 31, 2019 | 34,185,213 | 38,480,654 | 4,295,413 | ||||
Ending balance at Dec. 31, 2019 | $ 670,001 | $ 39 | $ 391,240 | $ 551,903 | $ (84,892) | $ (188,289) | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 67,659 | $ 56,726 | $ 48,888 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 52,193 | 48,719 | 38,984 |
Stock-based compensation expense | 26,070 | 23,901 | 23,041 |
Amortization of operating lease right-of-use assets | 27,335 | 0 | 0 |
Unrealized gain on short term investments | (10,116) | (7,696) | 0 |
Unrealized foreign exchange (gain)/loss, net | (321) | (8,620) | 1,523 |
Deferred income tax (benefit)/expense | (12,345) | (625) | 731 |
Allowance for doubtful accounts receivable | 614 | (573) | 2,816 |
Loss from equity-method investment | 269 | 247 | 0 |
Amortization of non-cash interest expense related to convertible senior notes | 2,472 | 0 | 0 |
Impairment charges | 3,627 | 20,056 | 0 |
Others, net | (1,205) | 903 | 252 |
Change in operating assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | (7,093) | (10,046) | (20,482) |
Prepaid expenses and other current assets | 1,215 | (4,509) | 218 |
Advance income tax, net | 7,194 | (14,147) | 11,037 |
Other assets | (2,204) | (6,800) | (2,224) |
Accounts payable | 134 | (360) | 1,706 |
Deferred revenue | 6,679 | (4,929) | (6,625) |
Accrued employee costs | 16,915 | 1,272 | 6,391 |
Accrued expenses and other liabilities | 14,141 | (1,084) | 6,903 |
Operating lease liabilities | (24,813) | 0 | 0 |
Net cash provided by operating activities | 168,420 | 92,435 | 113,159 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (40,138) | (40,437) | (35,154) |
Investment in equity affiliate | 0 | 0 | (3,000) |
Purchase of non-controlling interest | (241) | 0 | 0 |
Business acquisition (net of cash acquired) | 0 | (231,829) | (23,300) |
Purchase of investments | (187,974) | (133,434) | (402,721) |
Proceeds from redemption of investments | 176,968 | 128,208 | 241,439 |
Net cash used for investing activities | (51,385) | (277,492) | (222,736) |
Cash flows from financing activities: | |||
Principal payments of finance lease liabilities | (336) | (152) | (174) |
Proceeds from borrowings | 46,000 | 246,614 | 60,574 |
Repayments of borrowings | (98,247) | (155,209) | (45,192) |
Proceeds from convertible notes | 0 | 149,000 | 0 |
Payment of debt issuance costs | (117) | (762) | (790) |
Acquisition of treasury stock | (41,364) | (43,109) | (43,454) |
Proceeds from exercise of stock options | 987 | 1,397 | 8,561 |
Net cash (used for)/provided by financing activities | (93,077) | 197,779 | (20,475) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,045) | (2,868) | 3,935 |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 22,913 | 9,854 | (126,117) |
Cash, cash equivalents and restricted cash at the beginning of the period | 104,131 | 94,277 | 220,394 |
Cash, cash equivalents and restricted cash at the end of the period | 127,044 | 104,131 | 94,277 |
Supplemental disclosure of cash flow information: | |||
Restricted common stock issued for business acquisition | 0 | 4,080 | 0 |
Cash paid for interest | 10,649 | 4,725 | 1,122 |
Cash paid for taxes, net of refund | 19,087 | 18,508 | 19,128 |
Assets acquired under finance lease | $ 506 | $ 277 | $ 301 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization ExlService Holdings, Inc. (“ExlService Holdings”) is organized as a corporation under the laws of the state of Delaware. ExlService Holdings, together with its subsidiaries and affiliates (collectively, the “Company”), operates in the Business Process Management (“BPM”) industry providing operations management services and analytics services that helps its clients build and grow sustainable businesses. By orchestrating its domain expertise, data, analytics and digital technology, the company looks deeper to design and manage agile, customer-centric operating models to improve global operations, drive profitability, enhance customer satisfaction, increase data-driven insights, and manage risk and compliance. The Company’s clients are located principally in the United States of America (“U.S.”) and the United Kingdom (“U.K.”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Basis of Preparation and Principles of Consolidation The consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“U.S. 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. The standalone financial statements of subsidiaries are fully consolidated on a line-by-line basis. Intra-group balances and transactions, and income and expenses arising from intra-group transactions, are eliminated while preparing those financial statements. 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 U.S. GAAP. The Company’s investments in equity affiliates 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. (b) Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. 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 consolidated statements of income during the reporting period. Although these estimates are based on management’s best assessment of the current business environment, actual results may be different from those estimates. The significant estimates and assumptions that affect the consolidated financial statements include, but are not limited to, allowance for doubtful receivables, expected recoverability from customers with contingent fee arrangements, recoverability of dues from statutory authorities, 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, assumptions used to determine the incremental borrowing rate to calculate lease liabilities and right-of-use (“ROU”) assets, lease term to calculate lease cost, depreciation and amortization periods, purchase price allocation, recoverability of long-lived assets including goodwill and intangibles, and estimated costs to complete fixed price contracts. (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 exchange rates that prevailed on the date of inception of the transaction. All foreign exchange gains and losses arising on re-measurement 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 sheets. (d) Revenue Recognition Revenue is recognized when services are provided to the Company's customers, in an amount that reflects the consideration which the Company expect to be entitled to in exchange for the services provided. Revenue is measured based on consideration specified in a contract with a customer and excludes discounts and amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by providing services to a customer. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Adoption of Financial Accounting Standards Board Accounting Standards Update (“ASU”) No. 2014-09 Topic 606, Revenue from Contracts with Customers (“Topic 606”) On January 1, 2018, the date of initial application, the Company adopted Topic 606 using the modified retrospective method by recognizing the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of retained earnings, resulting in an increase of $454 , primarily due to new contract acquisition costs. The initial application scopes in those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning January 1, 2018 are presented under Topic 606. The prior period consolidated financial statements have not been retrospectively adjusted and continue to be reported under the accounting standards in effect for those periods. The key area impacted upon adoption of Topic 606 relates to the accounting for sales commissions costs. Specifically, under Topic 606 a portion of sales commission costs have been recorded as an asset and recognized as an operating expense on a straight-line basis over the expected period of benefit. Prior to adoption, the Company was expensing sales commission costs as incurred. Nature of Services The Company derives its revenues from operations management and analytics services. The Company operates in the business process management (“BPM”) industry providing operations management and analytics services helping businesses enhance revenue growth and improve profitability. The Company provides BPM or “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 Company also provides industry-specific digital transformational services related to operations management services, and analytics services that focus on driving improved business outcomes for clients by generating data-driven insights across all parts of their business. The Company also provides care optimization and reimbursement optimization services, for its clients through its healthcare analytics solutions and services. The Company offers integrated solutions to help its clients with cost containment by leveraging technology platforms, customizable and configurable analytics and expertise in healthcare reimbursements to help clients enhance their claims payment accuracy. Type of Contracts i. a) 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. b) Revenues from arrangements involving subcontracting, either in part or whole of the assigned work, are recognized after Company’s assessment of “Principal versus agent considerations”. The Company evaluates whether it is in control of the services before the same are transferred to the customer to assess whether it is principal or agent in the arrangement. Revenues are recognized on a gross basis if the Company is in the capacity of principal and on a net basis if it falls in the capacity of an agent. ii. Revenues for the Company’s fixed-price contracts are recognized using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the client. The use of this method requires significant judgment to estimate the cost 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 and resources engaged. The Company regularly monitors these estimates throughout the execution of the project and records 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. iii. Revenue from the Company’s software and related services contracts, which are not significant, are primarily related to annual 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 without any associated services are recognized upon delivery of the related incremental license. To a lesser extent, certain contracts may include offerings such as sale of licenses, which may be perpetual or subscription-based. The Company recognizes revenue from distinct perpetual licenses upfront at a point in time when the software is made available to the client, whereas for a combined software license and services performance obligation, revenue is recognized over the period that the services are performed. Revenue from distinct subscription based licenses is recognized over the period of service performed. Revenue from any associated maintenance or ongoing support services is recognized over the term of the contract. iv. Revenues from reimbursement optimization services having contingent fee arrangements are recognized by the Company at the point in time when a performance obligation is satisfied, which is when it identifies an overpayment claim. In such contracts, the Company’s consideration is contingent upon the actual collections made by its customers and net of any subsequent retraction claims. Based on guidance on “variable consideration” in Topic 606, the Company uses its historical experience and projections to determine the expected recoveries from its customers and recognizes revenue based upon such expected recoveries. Any adjustment required due to change in estimates are recorded in the period in which such change is identified. Modification to Contracts The Company’s contracts may be modified to add, remove or change existing performance obligations. The accounting for modifications to contracts involves assessing whether the services added to an existing contract are distinct and whether the pricing is at a standalone selling price. Services added that are distinct and at standalone selling price are accounted on a prospective basis either as a separate contract, or as a termination of existing contract and creation of a new contract. Arrangements with Multiple Performance Obligations The Company’s contracts with customers do not generally bundle different services together except for software and related services contracts, which are not significant, involving implementation services and post contract maintenance services. In such software and related services contracts, revenue is allocated to each performance obligation based on the relative standalone selling price. Variable Consideration Variability in the transaction price arises primarily due to service level agreements, pre-payment and volume discounts. The Company considers its experience with similar transactions and expectations regarding the contract in estimating the amount of variable consideration that should be recognized during a period. The Company believes that the expected value method is most appropriate for determining the variable consideration since the Company has large number of contracts with similar nature of transactions/services. Allocation of Transaction Price to Performance Obligations The transaction price is allocated to performance obligations on a relative standalone selling price basis. Standalone selling prices are estimated by reference to the total transaction price less the sum of the observable standalone selling prices of other goods or services promised in the contract. In assessing whether to allocate variable consideration to a specific part of the contract, the Company considers the nature of the variable payment and whether it relates specifically to its efforts to satisfy a specific part of the contract. Unbilled Receivables Unbilled receivables represents revenues recognized for services rendered between the last billing date and the balance sheet date. Unbilled receivables also include revenues recognized from reimbursement optimization services where the Company identify an overpayment claim. In such contracts, Company’s consideration is contingent upon and collectable only when the actual collections are made by its customers. Based on guidance on “variable consideration” in Topic 606, Company use its historical experience and projections to determine the expected recoveries from its customers and recognize revenue and receivables based upon such expected recoveries. Accordingly, the amounts for which services have been performed and for which invoices have not been issued to customers on the balance sheet date, (i.e. unbilled receivables) are presented under accounts receivable. Deferred Revenue and Contract Fulfillment Costs The Company has contract liabilities (deferred revenue) consisting of advance billings and billing in excess of revenues recognized. Deferred revenue also includes the amount for which services have been rendered but other conditions of revenue recognition are not met, for example where the Company does not have an enforceable contract. Further, the Company also defer revenues attributable to certain process transition activities, with respect to its customers where such activities do not represent separate performance obligations. Revenues related to such transition activities are classified under “Deferred Revenue” and “other non-current liabilities” in the Company’s consolidated balance sheets and are recognized ratably over the period during which the related services are performed. Costs related to such transition activities are contract fulfillment costs, and thereby classified under “Other Current Assets” and “Other Assets” in the consolidated balance sheets, and are recognized over the estimated expected period of benefit, under Cost of Revenues in the consolidated statements of income. Contract Acquisition Costs Direct and incremental costs incurred for acquiring contracts, such as sales commissions are contract acquisition costs and thereby classified under “Other Current Assets” and “Other Assets” in the consolidated balance sheets. Such costs are amortized over the expected period of benefit and recorded under Selling and marketing expenses in the consolidated statements of income. Upfront Payment Made to Customer Upfront payments, in nature of deal signing discount or deal signing bonuses made to customers are contract assets and classified under “Other Current Assets and Other Assets” in the consolidated balance sheets. Such costs are amortized over the expected period of benefit and are recorded as an adjustment to transaction price and reduced from revenues. Out of Pocket Expenses Reimbursements of out-of-pocket expenses received from clients are included as part of revenues. Payment terms All contracts entered into by the Company specify the payment terms and are defined for each contract separately. Usual payment terms range between 30 - 60 days. The Company does not have any extended payment terms clauses in existing contracts. Remaining Performance Obligations The Company does not disclose the value of remaining performance obligations by applying the practical expedient provided in Topic 606, for contracts that meet any of the following criteria: i. Contracts with an original expected length of one year or less as determined under ASC 606, ii. Contracts for which Company recognize revenue based on the right to invoice for service performed. (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 in favor of relevant statutory authorities for equipment imports, deposits for obtaining indirect tax registrations and for demands against pending income tax assessments (refer to Note 8 to the consolidated financial statements for details). These deposits with banks have maturity dates after December 31, 2019 . Restricted cash presented under current assets represents funds held on behalf of clients in dedicated bank accounts. For purposes of the statements of cash flows, the Company includes in its cash and cash-equivalent balances those amounts that have been classified as restricted cash and restricted cash equivalents. (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 Financial Accounting Standard Board Accounting Standards Codification (“ASC”) Topic 825, Financial Instruments , (“Topic 825”) and any changes in fair value are 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 and Allowance for Doubtful 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, client’s financial condition and the amounts of receivables in dispute to ascertain the ultimate collectability of these receivables. As of December 31, 2019 and 2018 , the Company had $1,163 and $956 , respectively, of allowance for doubtful accounts. 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, 2019 and 2018 , the Company had $73,920 and $63,952 , respectively, of unbilled accounts receivable. (h) Property and equipment Property and equipment are stated at cost less accumulated depreciation and impairment. Equipment held under finance 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 on equipment held under finance leases and leasehold improvements are computed using the straight-line method over the shorter of the asset's estimated useful lives or the lease term. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Useful Lives Assets: Network equipment and computers 3-5 Software 3-5 Leasehold improvements 3-8 Office furniture and equipment 3-8 Motor vehicles 2-5 Buildings 30 (i) Software Development Costs The Company capitalizes certain costs related to the development or enhancements to existing software products to be sold, leased or otherwise marketed and / or used for internal use. The Company begins to capitalize costs to develop or enhance software when planning stage efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed and the software will be used as intended. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed as incurred and recorded within “general and administrative expenses” in the Company’s consolidated statements of income. The Company exercises judgment in determining the point at which various projects may be capitalized, in assessing the ongoing value of the capitalized costs, and in determining the estimated useful lives over which the costs are amortized. Annual amortization of internally developed software products meant for sale, lease or otherwise marketing is the greater of the amount computed using the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product or the straight-line method over the remaining estimated economic life of the software product, generally estimated to be up to 5 years from the date the product became available for use. Annual amortization of internally developed software products meant for internal use is based on the straight-line method over the estimated useful lives of the internally developed software products. (j) Business Combinations, Goodwill and Other Intangible Assets ASC Topic 805, Business Combinations, requires that the acquisition 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 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 in a business combination. 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. The Company undertakes studies to determine the fair values of assets and liabilities acquired and allocate purchase consideration to assets and liabilities, including property and equipment, goodwill and other identifiable intangibles. The Company examines the carrying value of the goodwill annually in the fourth quarter, or more frequently, as circumstances warrant, to determine whether there are any impairment losses. The Company tests for goodwill impairment at the reporting unit level, as that term is defined in U.S. GAAP. Refer to Note 10 for discussion of the Company's goodwill impairment testing. The Company adopted ASU No. 2017-04, Simplifying the Test for Goodwill Impairment, effective January 1, 2018 in conjunction with our goodwill impairment assessment. The quantitative goodwill impairment test involves a comparison of the fair value of a reporting unit with its carrying amount. The Company estimates the fair value of reporting unit using a combination of the income approach, using discounted cash flow analysis (“DCF model”), and also the market approach, using market multiples for reporting units whereby the fair value is not substantially in excess of carrying value. Under the income approach, fair value is determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. The Company uses its internal forecasts to estimate future cash flows and include an estimate of long-term future growth rates based on its most recent views of the long-term outlook for each business. Actual results may differ from those assumed in our forecasts. Discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting units. The discount rate is mainly based on judgment of the specific risk inherent within each reporting unit. The variables within the discount rate, many of which are outside of the Company’s control, provide the Company’s best estimate of all assumptions applied within the DCF model. The Company uses the “Market approach” to corroborate the results of the income approach. Under the market approach, the Company estimates fair value based on market multiples of revenues and earnings derived from comparable publicly-traded companies with characteristics similar to the reporting unit and comparable market transactions. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results, market conditions and other factors. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. Determining fair value requires the use of estimates and exercise of significant judgment, including assumptions about appropriate discount rates, perpetual growth rates, amount and timing of expected future cash flows, market multiples of revenues and earnings and comparable market transactions. These estimates and judgements may not be within the control of the Company and accordingly it is reasonably possible that the estimates and judgments described above could change in future periods. There can be no assurance that operations will achieve the future cash flows reflected in the projections. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss shall be recognized, in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. 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 for an investee is increased or decreased for cash contribution and distributions to or from, respectively. (l) Impairment of Long-lived Assets Long-lived 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. Determining whether an impairment has occurred typically requires various estimates and assumptions, including determining which undiscounted cash flows are directly related to the potentially impaired asset, the useful life over which cash flows will occur, their amount, and the asset’s residual value, if any. In turn, measurement of an impairment loss requires a determination of fair value, which is based on the best information available. The Company derives the required undiscounted cash flow estimates from its historical experience and its internal business plans. To determine fair value, the Company follows the discounted cash flow approach and uses its internal cash flow estimates discounted at an appropriate discount rate and independent appraisals, as appropriate. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. (m) Derivative Financial Instruments In the normal course of business, the Company uses derivative instruments for the purpose of mitigating the exposure from risk of foreign currency fluctuation 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 adhering to 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) ("AOCI"), net of tax, until the hedged transactions occurs. 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 line as either part of “Cost of revenues”, “General and administrative expenses”, “Selling and marketing expenses”, “Depreciation and amortization expense”, as applicable. 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. The Company 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, against the ris |
Segment and Geographical Inform
Segment and Geographical Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segment and Geographical Information The Company operates in the BPM industry and is a provider of operations management and analytics services. Effective January 1, 2020, the Company realigned its operating and reportable segments, but the presentation in this Annual Report, including the discussion in next paragraphs, refers to the structure in place prior to such realignment. 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. Five of those operating segments provide BPM or “operations management” services, which is organized into industry-focused operating segments (Insurance, Healthcare, Travel, Transportation and Logistics, Banking and Financial Services, and Utilities) and one of the operating segment is a “capability” segment (Finance and Accounting) that provides services to clients in the Company's 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 the 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 Analytics, 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 are the Banking and Financial Services, Utilities and Consulting operating segments). The chief operating decision maker (“CODM”) generally reviews financial information such as revenues, cost of revenues and gross profit, disaggregated by the operating segments to allocate an overall budget among the operating segments. The Company does not allocate and therefore the CODM does not evaluate other operating expenses, interest expense or income taxes by segment. Many of the Company’s assets are shared by multiple operating segments. The Company manages these assets on a total Company basis, not by operating segment, and therefore asset information and capital expenditures by operating segment are not presented. Revenues and cost of revenues for each of the years ended December 31, 2019 , 2018 and 2017 , for each of the reportable segments, are as follows: Year ended December 31, 2019 Insurance Healthcare TT&L F&A All Other Analytics Total Revenues, net $ 294,159 $ 90,589 $ 68,010 $ 106,580 $ 74,679 $ 357,329 $ 991,346 Cost of revenues (1) 199,678 73,650 38,736 63,317 48,864 231,245 655,490 Gross profit (1) $ 94,481 $ 16,939 $ 29,274 $ 43,263 $ 25,815 $ 126,084 $ 335,856 Operating expenses 259,403 Foreign exchange gain, interest expense and other income, net 6,647 Income tax expense 15,172 Loss from equity-method investment 269 Net income $ 67,659 Year ended December 31, 2018 Insurance Healthcare TT&L F&A All Other Analytics Total Revenues, net $ 258,144 $ 84,391 $ 70,237 $ 97,941 $ 87,109 $ 285,290 $ 883,112 Cost of revenues (1) 174,921 66,768 41,066 59,155 58,341 184,604 584,855 Gross profit (1) $ 83,223 $ 17,623 $ 29,171 $ 38,786 $ 28,768 $ 100,686 $ 298,257 Operating expenses 248,436 Foreign exchange gain, interest expense and other income, net 10,549 Income tax expense 3,397 Loss from equity-method investment 247 Net income $ 56,726 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 (1) 159,433 49,412 41,337 51,362 56,638 136,960 495,142 Gross profit (1) $ 75,361 $ 27,601 $ 29,614 $ 35,165 $ 26,444 $ 72,983 $ 267,168 Operating expenses 194,443 Foreign exchange gain, interest expense and other income, net 12,309 Income tax expense 36,146 Net income $ 48,888 (1) Exclusive of depreciation and amortization expense. Revenues, net by service type, were as follows: Year ended December 31, 2019 2018 2017 BPM and related services (1) $ 634,017 $ 597,822 $ 552,367 Analytics services 357,329 285,290 209,943 Revenues, net $ 991,346 $ 883,112 $ 762,310 (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. Refer to reportable segment disclosure above. The Company attributes the revenues to regions based upon the location of its customers. Year ended December 31, 2019 2018 2017 Revenues, net United States $ 817,878 $ 732,589 $ 626,336 Non-United States United Kingdom 113,036 114,515 108,640 Rest of World 60,432 36,008 27,334 Total Non-United States 173,468 150,523 135,974 Revenues, net $ 991,346 $ 883,112 $ 762,310 Long-lived assets by geographic area, which consist of property and equipment, net and operating lease right-of-use assets, net were as follows: As of December 31, 2019 December 31, 2018 Long-lived assets India $ 78,244 $ 36,152 United States 52,375 28,254 Philippines 26,006 5,985 Rest of World 8,913 3,119 Long-lived assets $ 165,538 $ 73,510 |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Quarterly Financial Data Summarized quarterly results for the years ended December 31, 2019 and 2018 are as follows: Three months ended 2019 (Unaudited) Year ended (Audited) March 31 June 30 September 30 December 31 December 31, 2019 Revenues, net $ 239,573 $ 243,509 $ 251,392 $ 256,872 $ 991,346 Gross profit (1) $ 82,333 $ 81,063 $ 83,850 $ 88,610 $ 335,856 Net income $ 14,695 $ 12,564 $ 19,044 $ 21,356 $ 67,659 Earnings per share: Basic (2) $ 0.43 $ 0.36 $ 0.55 $ 0.62 $ 1.97 Diluted (2) $ 0.42 $ 0.36 $ 0.55 $ 0.62 $ 1.95 Weighted-average number of shares used in computing earnings per share: Basic (2) 34,374,815 34,451,671 34,322,449 34,253,308 34,350,150 Diluted (2) 34,833,435 34,702,547 34,699,497 34,696,896 34,732,683 Stock compensation expense $ 6,956 $ 7,155 $ 7,427 $ 4,532 $ 26,070 Amortization of intangibles $ 5,528 $ 5,554 $ 5,502 $ 4,974 $ 21,558 Three months ended 2018 (Unaudited) Year ended (Audited) March 31 June 30 September 30 December 31 December 31, 2018 Revenues, net $ 206,973 $ 210,112 $ 231,124 $ 234,903 $ 883,112 Gross profit (1) $ 68,872 $ 70,463 $ 78,967 $ 79,955 $ 298,257 Net income $ 23,158 $ 14,462 $ 15,249 $ 3,857 $ 56,726 Earnings per share: Basic (2) $ 0.67 $ 0.42 $ 0.44 $ 0.11 $ 1.65 Diluted (2) $ 0.66 $ 0.41 $ 0.43 $ 0.11 $ 1.62 Weighted-average number of shares used in computing earnings per share: Basic (2) 34,446,265 34,511,777 34,458,520 34,388,025 34,451,008 Diluted (2) 35,302,926 35,142,388 35,207,991 34,921,388 35,030,984 Stock compensation expense $ 5,074 $ 6,893 $ 5,344 $ 6,590 $ 23,901 Amortization of intangibles $ 3,947 $ 3,761 $ 6,718 $ 5,951 $ 20,377 (1) Exclusive of depreciation and amortization expense. (2) 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. |
Revenues, net
Revenues, net | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues, net | Revenues, net Refer to Note 3 to the consolidated financial statements for revenues disaggregated by reportable segments and geography. Contract balances The following table provides information about accounts receivable, contract assets and contract liabilities from contracts with customers: As of December 31, 2019 December 31, 2018 Accounts receivable, net $ 171,864 $ 164,752 Contract assets $ 5,391 $ 5,445 Contract liabilities: Deferred revenue (consideration received in advance) $ 11,259 $ 6,345 Consideration received for process transition activities $ 3,036 $ 1,669 Accounts receivable includes $73,920 and $63,952 as of December 31, 2019 and 2018, respectively, representing unbilled receivables. The Company has accrued the unbilled receivables for work performed in accordance with the terms of contracts with customers and considers no significant performance risk associated with its unbilled receivables. Contract assets represents upfront payments in nature of deal signing discount or deal signing bonuses made to customers. These costs are amortized over the expected period of benefit and are recorded as an adjustment to transaction price and reduced from revenues. Contract liabilities represents that portion of deferred revenue for which payments have been received in advance from customers. This may also include revenues deferred for certain contracts where services have been rendered but other conditions for revenue recognition have not been met for e.g. legally enforceable contract is not executed. The Company also defers revenues attributable to certain process transition activities for which costs have been capitalized by the Company as contract fulfillment costs. The contract liabilities are included within “Deferred revenues” and “other non-current liabilities” in the consolidated balance sheets. The revenues are recognized as (or when) the performance obligation is fulfilled under the contract with customer. Revenue recognized during the year ended December 31, 2019 that was included in the contract liabilities balance at the beginning of the period was $6,077 and revenue recognized during the year ended December 31, 2018 that was included in the contract liabilities balance at the beginning of the period was $9,147 . Contract acquisition and fulfillment costs The following table provides details of the Company’s contract acquisition and fulfillment costs: 2019 2018 Contract acquisition cost Contract fulfillment cost Contract acquisition cost Contract fulfillment cost Balance as of January 1 $ 713 $ 4,051 $ 454 $ 2,769 Addition 1,222 4,652 567 2,216 Amortization (628 ) (1,448 ) (308 ) (934 ) Balance as of December 31 $ 1,307 $ 7,255 $ 713 $ 4,051 There was no impairment loss in relation to costs capitalized. The capitalized costs are amortized on a straight line basis over the life of the contract. Consideration received from customers, if any, relating to such transition activities are classified under Contract Liabilities and are recognized over the period in which the related performance obligations are fulfilled. |
Other Income, net
Other Income, net | 12 Months Ended |
Dec. 31, 2019 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income, net | Other Income, net Other income, net consists of the following: Year ended December 31, 2019 2018 2017 Gain on sale and mark-to-market of mutual funds $ 12,965 $ 9,970 $ 8,766 Interest and dividend income 2,399 1,873 1,625 Others, net 1,143 1,146 968 Other income, net $ 16,507 $ 12,989 $ 11,359 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding, adjusted for outstanding shares that are subject to repurchase 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 (outstanding stock options, restricted stock and restricted stock units) issued and outstanding at the reporting date, using the treasury stock method. Common stock equivalents that are anti-dilutive are excluded from the computation of weighted average shares outstanding. The Company includes performance stock unit awards in dilutive potential common shares when they become contingently issuable and have a dilutive impact per authoritative guidance and excludes such awards when they are not contingently issuable. The following table sets forth the computation of basic and diluted earnings per share: Year ended December 31, 2019 2018 2017 Numerators: Net income $ 67,659 $ 56,726 $ 48,888 Denominators: Basic weighted average common shares outstanding 34,350,150 34,451,008 33,897,916 Dilutive effect of share based awards 382,533 579,976 1,212,294 Diluted weighted average common shares outstanding 34,732,683 35,030,984 35,110,210 Earnings per share attributable to ExlService Holdings Inc. stockholders: Basic $ 1.97 $ 1.65 $ 1.44 Diluted $ 1.95 $ 1.62 $ 1.39 Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share 106,375 121,344 151,961 |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash For the purpose of statements of cash flows, cash, cash equivalents and restricted cash comprise of the following: As of December 31, 2019 December 31, 2018 December 31, 2017 Cash and cash equivalents $ 119,165 $ 95,881 $ 86,795 Restricted cash (current) 5,453 5,608 3,674 Restricted cash (non-current) 2,426 2,642 3,808 Cash, cash equivalents and restricted cash $ 127,044 $ 104,131 $ 94,277 Effective January 1, 2018, the Company adopted ASU 2016-18, Statements of Cash Flows (Topic 230), Restricted Cash . Accordingly, restricted cash and restricted cash equivalents is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the consolidated statements of cash flows. Refer to Note 27 to the consolidated financial statements. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net consists of the following: As of Estimated useful lives (Years) December 31, 2019 December 31, 2018 Owned assets: Network equipment and computers 3-5 $ 98,309 $ 85,921 Software 3-5 79,746 69,752 Leasehold improvements 3-8 44,982 39,533 Office furniture and equipment 3-8 22,046 20,097 Motor vehicles 2-5 601 635 Buildings 30 1,114 1,140 Land — 729 746 Capital work in progress — 10,309 11,026 257,836 228,850 Less: Accumulated depreciation and amortization (179,331 ) (155,798 ) $ 78,505 $ 73,052 Right-of-use assets under finance leases: Leasehold improvements $ 738 $ 778 Office furniture and equipment 308 53 Motor vehicles 711 628 1,757 1,459 Less: Accumulated depreciation and amortization (1,120 ) (1,001 ) $ 637 $ 458 Property and equipment, net $ 79,142 $ 73,510 Capital work in progress represents advances paid towards acquisition of property and equipment and costs incurred on internally developed software, 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, 2019 2018 2017 Depreciation and amortization expense $ 30,423 $ 28,189 $ 24,574 The depreciation and amortization set forth above includes the effect of foreign exchange gain upon settlement of cash flow hedges, amounting to $212 , $153 and $435 for the year ended December 31, 2019 , 2018 and 2017 , respectively (Refer to Note 17 to the consolidated financial statements for further details). Internally developed software costs, included under Software, was as follows: As of December 31, 2019 December 31, 2018 Cost $ 15,784 $ 8,783 Less : Accumulated amortization (4,989 ) (2,393 ) Internally developed software, net $ 10,795 $ 6,390 During the year ended December 31, 2019, there were no significant changes in estimated useful lives of property and equipment. The amortization expense on internally developed software recognized in the consolidated statements of income was as follows: Year ended December 31, 2019 2018 2017 Amortization expense $ 2,745 $ 1,417 $ 640 During the year ended December 31, 2019 , the Company performed an impairment test of its long-lived assets related to its Health Integrated business. Based on the results, the long-lived assets carrying value exceeded its fair value. The primary factor contributing to a reduction in the fair value is the wind down of the Health Integrated business, due to an anticipated reduction to the Company's estimated future cash flows. As a result of this analysis, the Company recognized impairment charges of $2,178 during the year ended December 31, 2019 , to write down the carrying value of property and equipment to its fair value. This impairment charge was recorded in the consolidated statements of income under "Impairment and restructuring charges". Refer to Note 24 to the consolidated financial statements for further details. |
Business Combinations, Goodwill
Business Combinations, Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations, Goodwill and Intangible Assets Disclosure [Abstract] | |
Business Combinations, Goodwill and Intangible Assets | Business Combinations, Goodwill and Intangible Assets SCIOinspire Holdings Inc. On July 1, 2018, the Company, through its wholly owned subsidiary ExlService.com, LLC (“Buyer”) and Buyer’s wholly owned subsidiary, ExlService Cayman Merger Sub, completed the acquisition of SCIO pursuant to an Agreement of Merger dated April 28, 2018 (the "Merger Agreement"). ExlService Cayman Merger Sub, merged with and into SCIO, with SCIO surviving the merger as a wholly-owned subsidiary of the Buyer. SCIO is a health analytics solution and services company serving healthcare organizations including providers, health plans, pharmacy benefit managers, employers, health services and global life sciences companies. The acquisition is expected to significantly strengthen the Company’s capability in the high growth cost optimization and care optimization markets. The acquisition of SCIO is included in the Analytics reportable segment. The aggregate purchase consideration was $245,044 , including cash and cash equivalents acquired and post-closing adjustments. The aggregate base purchase consideration payable at closing of the merger was $236,500 based on completion of diligence, which was adjusted based on, among other things, SCIO’s cash, debt, working capital position and other adjustments as of the Closing as set forth in the Merger Agreement. To finance the acquisition at Closing, the Company utilized its revolving Credit Facility in the amount of $233,000 , issued 69,459 shares of restricted common stock of the Company in the amount of $4,080 and paid the balance with available cash on hand. Pursuant to the Company’s business combinations accounting policy, the total purchase consideration for SCIO was allocated to identifiable net tangible and intangible assets based upon their fair values. The excess of the purchase consideration over fair value of identifiable net tangible and intangible assets was recorded as goodwill. In order to allocate the consideration transferred for SCIO, the fair values of all identifiable assets and liabilities were established. For accounting and financial reporting purposes, fair value is defined under ASC No. 820, Fair Value Measurement and Disclosure , as the price that would be received upon sale of an asset or the amount paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are assumed to be buyers and sellers in the principal (most advantageous) market for the asset or liability. Additionally, fair value measurements for an asset assume the highest and best use of that asset by market participants. Use of different estimates and judgments could yield different results. The Company’s purchase price allocation to net tangible and intangible assets of SCIO is as follows: Assets: Cash and cash equivalents $ 9,842 Restricted cash 2,790 Accounts receivable 19,924 Other current assets 2,076 Property and equipment 1,824 Other assets 1,751 Intangible assets Customer relationships 47,800 Developed technology 21,400 Trade names and trademarks 3,700 111,107 Liabilities: Current liabilities (12,482 ) Deferred tax liabilities, net (17,132 ) Other non-current liabilities (200 ) (29,814 ) Net assets acquired $ 81,293 Goodwill 163,751 Total purchase consideration $ 245,044 The fair values of the trade names and trademarks intangible assets were determined by using an “income approach”, specifically the relief-from-royalty approach. The basic principle of the relief-from-royalty method is that without ownership of the subject intangible asset, the user of that intangible asset would have to make a stream of payments to the owner of the asset in return for the rights to use that asset. By acquiring the intangible asset, the user avoids these payments. Therefore, a portion of SCIO’s earnings, equal to the after-tax royalty that would have been paid for the use of the asset, can be attributed to the firm’s ownership. The trade names and trademarks are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of 3 years . The fair values of the developed technology intangible assets were also determined by the relief-from-royalty approach. Similarly, this approach is based on the assumption that in lieu of ownership, a firm would be willing to pay a royalty in order to exploit the related benefits of the technology. Therefore, a portion of SCIO’s earnings, equal to the after-tax royalty that would have been paid for the use of the technology, can be attributed to the firm’s ownership of the technology. The technology assets are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of 5 years . The fair values of the customer relationships were determined by using an “income approach”, specifically the Multi-Period Excess Earnings Method ("MPEEM"). The MPEEM is a specific application of the discounted cash flow method. The principle behind the MPEEM is that the value of an intangible asset is equal to the present value of the incremental after-tax cash flows attributable only to the subject intangible asset after deducting Contributory Asset Charges ("CAC"). The principle behind a CAC is that an intangible asset ‘rents’ or ‘leases’ from a hypothetical third party all the assets it requires to produce the cash flows resulting from its development, that each project rents only those assets it needs (including elements of goodwill) and not the ones that it does not need, and that each project pays the owner of the assets a fair return on (and of, when appropriate) the value of the rented assets. The customer relationship assets are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of 10 years . The goodwill recognized is attributable primarily to expected synergies from continuing operations of SCIO and the Company. The amount of goodwill recognized from SCIO's acquisition is not deductible for tax purposes. The goodwill has been assigned to our Analytics reportable segment based upon the Company’s assessment of nature of services rendered by SCIO. Goodwill The following table sets forth details of changes in goodwill by reportable segment of the Company: Insurance Healthcare TT&L F&A All Other Analytics Total Balance at January 1, 2018 $ 38,333 $ 35,233 $ 13,679 $ 48,372 $ 5,326 $ 63,538 $ 204,481 Acquisitions — — — — — 163,751 163,751 Measurement period adjustments — (1,728 ) — — — — (1,728 ) Currency translation adjustments (130 ) — (982 ) (1,179 ) — — (2,291 ) Impairment charges — (14,229 ) — — — — (14,229 ) Balance at December 31, 2018 $ 38,203 $ 19,276 $ 12,697 $ 47,193 $ 5,326 $ 227,289 $ 349,984 Currency translation adjustments 73 — (240 ) (288 ) — — (455 ) Balance at December 31, 2019 $ 38,276 $ 19,276 $ 12,457 $ 46,905 $ 5,326 $ 227,289 $ 349,529 During the fourth quarter of 2019 , the Company performed its annual impairment test of goodwill for those reporting units that had goodwill recorded. Key assumptions used in determining the fair value of the Company’s reporting units was a long-term revenue growth rate in the terminal year of 3.0% and discount rates ranging from 9.0% to 11.0% . Based on the results, the fair value of each of the Company’s reporting units exceeded their carrying value and the Company’s goodwill was not impaired. However, for the SCIO reporting unit within the Analytics reportable segment, the fair value was not substantially in excess of its carrying value. The SCIO reporting unit was formed as a result of the SCIO acquisition in July 2018 and its fair value was set at the time of acquisition. As of December 31, 2019, the goodwill associated with the SCIO reporting unit was $163,751 , representing approximately 47.0% of the Company’s total goodwill, and the percentage by which the fair value of the SCIO reporting unit exceeded the carrying value as of the date of the most recent annual impairment test was approximately 10.0% . While the goodwill of this reporting unit is not currently impaired, there could be an impairment in the future as a result of changes in certain assumptions. For example, the fair value could be adversely affected and may result in an impairment of goodwill if this reporting unit is not able to expand its existing customer relationships, win new clients, improve profitability, the estimated cash flows are discounted at a higher risk-adjusted rate, or the market multiples decreases. The Company also believes that it is possible that its actual revenue growth rates could be higher than the long-term revenue growth rates used in the impairment test due to a number of factors, including (i) continued demand for the Company’s reimbursement and care optimization services to help clients identify overpayments and enhance their claims payment accuracy, and (ii) the Company’s ability to offer integrated solutions by leveraging technology platforms, digital, customizable and configurable analytics to deliver better business outcomes for its clients. The Company believes that its discount rate utilized is appropriate to use for its future cash flow assumptions considering current market conditions. However, keeping all other variables constant, a further 50 basis points increase in discount rate will decrease the percentage by which the fair value exceeds the carrying value of the SCIO reporting unit to 6.0% . The Company continues to monitor the cash flows of the SCIO reporting unit for changes in the business environment that could impact recoverability. The recoverability of goodwill is dependent upon the continued growth of cash flows from our business activities. There can be no assurances that goodwill will not be impaired in future periods. Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. These estimates and judgements may not be within the control of the Company and accordingly it is reasonably possible that the judgments and estimates described above could change in future periods. During the fourth quarter of 2018, the Company performed its annual impairment test of goodwill for all its reporting units. Based on the results, the fair values of each of the Company’s reporting units exceeded their carrying values except for the Health Integrated reporting unit, within the Healthcare operating segment. The primary factors contributing to a reduction in the fair value of the Health Integrated reporting unit were: (i) revenues and profitability in 2018 were significantly lower than the Company’s budget; and (ii) significant changes to the Company's estimated future cash flows and long-term growth assumptions for the Health Integrated reporting unit driven by loss of customer contracts, cost pressures and the Company’s most recent views of the long-term outlook for the Health Integrated business. As a result of this analysis, the Company recognized a goodwill impairment charge of $14,229 during the fourth quarter to write down the carrying value of Health Integrated’s goodwill to its fair value of $ nil as of December 31, 2018. This impairment charge was recorded in the consolidated statements of income under "Impairment and restructuring charges" Intangible Assets Information regarding the Company’s intangible assets is set forth below: As of December 31, 2019 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Carrying Amount Finite-lived intangible assets: Customer relationships $ 97,602 $ (43,330 ) $ — $ 54,272 Developed technology 26,976 (10,687 ) — 16,289 Trade names and trademarks 5,100 (2,579 ) — 2,521 $ 129,678 $ (56,596 ) $ — $ 73,082 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ — $ 900 Total intangible assets $ 130,578 $ (56,596 ) $ — $ 73,982 As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Carrying Amount Finite-lived intangible assets: Customer relationships $ 129,790 $ (56,367 ) $ (5,549 ) $ 67,874 Leasehold benefits 2,644 (2,567 ) — 77 Developed technology 37,154 (14,653 ) — 22,501 Non-compete agreements 2,045 (1,937 ) — 108 Trade names and trademarks 9,639 (5,326 ) (278 ) 4,035 $ 181,272 $ (80,850 ) $ (5,827 ) $ 94,595 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ — $ 900 Total intangible assets $ 182,172 $ (80,850 ) $ (5,827 ) $ 95,495 The amortization expense for the year is as follows: Year ended December 31, 2019 2018 2017 Amortization expense $ 21,558 $ 20,377 $ 13,975 During the fourth quarter of 2018, the Company recognized impairment charges of $5,549 and $278 related to its customer relationships and trademarks intangible assets, respectively, in the Health Integrated reporting unit, within the Healthcare operating segment. The Company tested these intangible assets for recoverability due to indicators warranting the impairment test such as: (i) revenues and profitability in 2018 were significantly lower than the Company’s budget, and (ii) significant changes to the Company's estimated future cash flows and long-term growth assumptions for the Health Integrated reporting unit driven by loss of customer contracts, cost pressures and the Company’s most recent views of the long-term outlook for the Health Integrated business. Based on the results of its testing, the Company determined that the carrying value of the intangible assets was not recoverable, and an impairment charge was recorded to the extent that carrying value exceeded estimated fair value. This impairment charge was recorded in the consolidated statements of income under "Impairment and restructuring charges". Subsequent to the impairment test, Health Integrated reporting unit’s customer relationships and trademarks intangibles assets were reduced to $ nil as of December 31, 2018. The remaining weighted average life of intangible assets is as follows: (in years) Customer relationships 7.66 Developed technology 3.64 Trade names and trademarks (Finite lived) 2.38 Estimated future amortization expense related to intangible assets as of December 31, 2019 is as follows: 2020 $ 14,458 2021 12,753 2022 11,335 2023 9,046 2024 6,704 2025 and thereafter 18,786 Total $ 73,082 |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Other Current Assets Other current assets consist of the following: As of December 31, 2019 December 31, 2018 Derivative instruments $ 4,076 $ 4,059 Advances to suppliers 1,581 2,910 Receivables from statutory authorities 12,608 14,145 Contract assets 1,414 1,201 Deferred contract fulfillment costs 1,673 1,236 Others 3,242 4,689 Other current assets $ 24,594 $ 28,240 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consist of the following: As of December 31, 2019 December 31, 2018 Lease deposits $ 9,983 $ 8,891 Derivative instruments 3,433 1,971 Deposits with statutory authorities 6,252 6,273 Term deposits 1,983 315 Contract assets 3,977 4,244 Deferred contract fulfillment costs 5,582 2,815 Others 4,806 6,506 Other assets $ 36,016 $ 31,015 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
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 consist of the following: As of December 31, 2019 December 31, 2018 Accrued expenses $ 53,139 $ 44,711 Derivative instruments 1,783 3,204 Client liabilities 6,378 6,933 Other current liabilities 9,723 9,321 Accrued expenses and other current liabilities $ 71,023 $ 64,169 |
Other Non-Current Liabilities
Other Non-Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Liabilities, Noncurrent [Abstract] | |
Other Non-Current liabilities | Other Non-Current Liabilities Other non-current liabilities consist of the following: As of December 31, 2019 December 31, 2018 Derivative instruments $ 1,250 $ 3,075 Unrecognized tax benefits 1,047 804 Deferred rent — 7,834 Retirement benefits 6,517 3,616 Deferred transition revenue 1,911 945 Others 987 247 Other non-current liabilities $ 11,712 $ 16,521 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss (“AOCI”) consists 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 815. Changes in the fair values of these foreign currency exchange contracts are recognized in AOCI on the Company's consolidated balance sheets until the settlement of those contracts. The balances as of December 31, 2019 and 2018 are as follows: As of December 31, 2019 December 31, 2018 Cumulative foreign currency translation loss $ (87,591 ) $ (84,105 ) Unrealized gain/(loss) on cash flow hedges 4,604 (218 ) Retirement benefits (1,780 ) 918 Income tax expense relating to above (1) (125 ) (62 ) Accumulated other comprehensive loss $ (84,892 ) $ (83,467 ) (1) These are income tax expense recognized on cash flow hedges and retirement benefits. Refer to Note 22 to the consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC Topic 820, “Fair Value Measurements and Disclosures ” ("ASC 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 as against 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 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, 2019 and 2018 . As of December 31, 2019 Level 1 Level 2 Level 3 Total Assets Mutual funds* $ 166,330 $ — $ — $ 166,330 Derivative financial instruments — 7,509 — 7,509 Total $ 166,330 $ 7,509 $ — $ 173,839 Liabilities Derivative financial instruments $ — $ 3,033 $ — $ 3,033 Total $ — $ 3,033 $ — $ 3,033 As of December 31, 2018 Level 1 Level 2 Level 3 Total Assets Mutual funds* $ 142,408 $ — $ — $ 142,408 Derivative financial instruments — 6,030 — 6,030 Total $ 142,408 $ 6,030 $ — $ 148,438 Liabilities Derivative financial instruments $ — $ 6,279 $ — $ 6,279 Total $ — $ 6,279 $ — $ 6,279 * Represents those short-term investments which are carried at the fair value option under ASC 825 "Financial Instruments" as of December 31, 2019 and 2018 . 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. Refer to Note 17 to the consolidated financial statements for further details. Financial instruments not carried at fair value : The Company’s other financial instruments not carried at fair value consist primarily of cash and cash equivalents, short-term investments (except investment in mutual funds, as disclosed above), restricted cash, accounts receivable, accounts payable, and accrued expenses for which fair values approximate their carrying amounts due to their short-term nature. The carrying value of the Company’s outstanding revolver credit approximates its fair value because the Company’s interest rate yield is near current market rates for comparable debt instruments. Lease obligations are recognized based on the present value of lease payments over the lease term which approximates fair value Convertible Senior Notes: The total estimated fair value of the convertible senior notes as of December 31, 2019 and 2018 was $149,934 and $130,510 , respectively. The fair value was determined based on the market yields for similar Notes as of December 31, 2019 and 2018, respectively. The Company considers the fair value of the Notes to be a Level 2 measurement due to the limited inputs available for its fair valuation. Non-recurring fair value measurements of assets: Non-recurring fair value measurements include impairment tests conducted by the Company during the year ended December 31, 2019 of its long-lived assets and ROU assets related to its Health Integrated business. The fair value determination for ROU assets was based on third party quotes, which are Level 2 inputs, and for other long-lived assets, it was based on Company’s internal assessment, which are Level 3 inputs. During the year ended December 31, 2019 , the Company recognized impairment charges on and long-lived assets and ROU assets to write down the carrying value to their fair values. Refer to Notes 9 and 21 to the consolidated financial statements for further details. |
Derivatives and Hedge Accountin
Derivatives and Hedge Accounting | 12 Months Ended |
Dec. 31, 2019 | |
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 so as to minimize earnings and cash flow volatility associated with changes in foreign currency exchange rates. The Company’s derivative financial instruments are largely forward foreign exchange contracts that are designated as effective hedges and that qualify as cash flow hedges under ASC 815. The Company had outstanding cash flow hedges totaling $410,390 (including $4,300 of range forward contracts) as of December 31, 2019 and $362,435 (including $6,900 of range forward contracts) as of December 31, 2018 . 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 resultant foreign exchange gain/(loss) upon settlement of derivative financial instruments are recorded along with the underlying hedged item in the same line of consolidated statements of income as either a part of “Cost of revenues”, “General and administrative expenses”, “Selling and marketing expenses”, “Depreciation and amortization expense”, as applicable. 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 Company estimates that approximately $2,421 of net derivative gains, excluding tax effects, included in AOCI, representing changes in the value of cash flow hedges, could be reclassified into earnings within the next twelve months based on exchange rates prevailing as of December 31, 2019 . At December 31, 2019 , the maximum outstanding term of the cash flow hedges was 45 months . The Company enters into foreign currency forward contracts to economically hedge its intercompany balances and other monetary assets and liabilities denominated in currencies other than functional currencies, against the risk of foreign currency fluctuations associated with remeasurement of such assets and liabilities to functional currency. These derivatives do not qualify as fair value hedges under ASC 815. Changes in the fair value of these derivatives are recognized in the consolidated statements of income and are included in foreign exchange gain/(loss). The Company’s primary exchange rate exposure is with the Indian Rupee, the U.K. pound sterling and the Philippine peso. The Company also has exposure to Colombian pesos, Czech Koruna, the Euro, South African ZAR and other local currencies in which it operates. Outstanding foreign currency forward contracts amounted to $124,045 , GBP 10,843 and EUR 1,289 as of December 31, 2019 and amounted to $125,503 , GBP 15,616 and EUR 512 as of December 31, 2018 . The Company also uses forward contracts designated as net investment hedges to hedge foreign currency risks related to the Company's investment in foreign subsidiaries. Gains and losses on these forward contracts are recognized in AOCI as part of the foreign currency translation adjustment. 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, 2019 December 31, 2018 Other current assets $ 3,945 $ 4,022 Other assets $ 3,433 $ 1,971 Accrued expenses and other current liabilities $ 1,524 $ 3,137 Other non-current liabilities $ 1,250 $ 3,075 Derivatives not designated as hedging instruments : As of Foreign currency exchange contracts December 31, 2019 December 31, 2018 Other current assets $ 131 $ 37 Accrued expenses and other current liabilities $ 259 $ 67 The following tables set forth the effect of foreign currency exchange contracts on the consolidated statements of income and accumulated other comprehensive loss for the years ended December 31, 2019 , 2018 and 2017 : Year ended December 31, Forward Exchange Contracts: 2019 2018 2017 Unrealized gain/(loss) recognized in AOCI Derivatives in cash flow hedging relationships $ 8,773 $ (13,919 ) $ 19,802 Gain/(loss) recognized in consolidated statements of income Derivatives not designated as hedging instruments $ 3,306 $ (3,224 ) $ 5,056 Location and amount of gain/(loss) recognized in consolidated statements of income for cash flow hedging relationships and derivatives not designated as hedging instruments: Year ended December 31, 2019 2018 2017 As per consolidated statements of income Gain on foreign currency exchange contracts As per consolidated statements of income Gain/(loss) on foreign currency exchange contracts As per consolidated statements of income Gain on foreign currency exchange contracts Cash flow hedging relationships Location in consolidated statements of income where gain was reclassed from AOCI Cost of revenues $ 655,490 $ 3,269 $ 584,855 $ 2,481 $ 495,142 $ 5,465 General and administrative expenses $ 126,909 $ 424 $ 116,202 $ 443 $ 102,515 $ 960 Selling and marketing expenses $ 71,842 $ 46 $ 63,612 $ 44 $ 53,379 $ 103 Depreciation and amortization expense $ 51,981 $ 212 $ 48,566 $ 181 $ 38,549 $ 371 $ 3,951 $ 3,149 $ 6,899 Derivatives not designated as hedging instruments Location in consolidated statements of income where gain/(loss) was recognized Foreign exchange gain/(loss), net $ 3,752 $ 3,306 $ 4,787 $ (3,224 ) $ 2,839 $ 5,056 $ 3,752 $ 3,306 $ 4,787 $ (3,224 ) $ 2,839 $ 5,056 Effect of net investment hedges on accumulated other comprehensive loss: Year ended December 31, Amount of (loss) recognized in AOCI Net investment hedging relationships 2019 2018 2017 Foreign exchange contracts $ (580 ) $ — $ — $ (580 ) $ — $ — |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Revolver Credit Agreement 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 “Credit Agreement”). The Credit Agreement provides for a $200,000 revolving credit facility (the “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 Credit Agreement. The Credit Agreement also includes a letter of credit sub facility. The 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 Credit Agreement may be used for working capital and general corporate purposes, including permitted acquisitions. On July 2, 2018 , the Company exercised its option under the Credit Agreement to increase the commitments by $100,000 thereby utilizing the entire revolver under the Credit Facility of $300,000 , to fund the SCIO acquisition. The incremental commitments were made pursuant to (and constitute part of) the existing commitments and are subject to the terms and conditions applicable to the existing commitments as set forth in the Credit Agreement. Depending on the type of borrowing, loans under the Credit Agreement bear interest at a rate equal to the specified prime rate (alternate base rate) or adjusted LIBOR 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% 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 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 Credit Facility carried an effective interest rate of 4.0% per annum and 3.4% per annum, respectively, during the years ended December 31, 2019 and 2018 . Obligations under the 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 Credit Agreement contains customary 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 Credit Agreement contains a covenant to not permit the interest coverage ratio (the ratio of EBITDA to cash interest expense) or the total net leverage ratio (total funded indebtedness, less unrestricted domestic cash and cash equivalents not to exceed $50,000 to EBITDA) for the four consecutive quarter period ending on the last day of each fiscal quarter, to be less than 3.5 to 1.0 or more than 3.0 to 1.0, respectively. As of December 31, 2019 , the Company was in compliance with all financial and non-financial covenants listed under the Credit Agreement. The Company entered into a second amendment (the “Amendment”) to its Credit Agreement, as amended, among the Company, as borrower, with certain lenders, and Citibank, N.A. as Administrative Agent to, among other things, permit the issuance by the Company of the convertible notes, and settlement upon maturity or conversion thereof, in accordance with the Investment Agreement, the indenture dated as of October 4, 2018 and the other documents entered into in connection therewith. As of December 31, 2019, the Company had outstanding indebtedness under the credit facility of $99,000 of which $40,000 is expected to be repaid within the next twelve months and is included under “current portion of long-term borrowings” and of which $59,000 is included under “long-term borrowings, less current portion” in the consolidated balance sheets. As of December 31, 2018 , the Company had an outstanding indebtedness under the credit facility of $150,000 , of which $20,000 was included under “current portion of long-term borrowings,” and the balance of $130,000 was included under “long-term borrowings, less current portion” in the consolidated balance sheets. The Company incurred certain debt issuance costs, which are deferred and amortized as an adjustment to interest expense over the term of the credit facility. The unamortized debt issuance costs as of December 31, 2019 and 2018 was $748 and $1,006 , respectively and is included under “other current assets” and “other assets” in the consolidated balance sheets. Convertible Senior Notes On October 1, 2018 , the Company entered into an investment agreement (the “Investment Agreement”) with Orogen Echo LLC (the “Purchaser”), an affiliate of The Orogen Group LLC, relating to the issuance to the Purchaser of $150,000 in an aggregate principal amount of 3.50% per annum Convertible Senior Notes due October 1, 2024 (the “Notes”). The transactions contemplated by the Investment Agreement, including the issuance of the Notes, closed on October 4, 2018 . The Notes bear interest at a rate of 3.50% per annum, payable semi-annually in arrears in cash on April 1 and October 1 of each year. During the year ended December 31, 2019 and 2018 , the Company recognized interest expense of $5,206 and $1,313 , respectively, on the Notes. The Notes are convertible at an initial conversion rate of 13.3333 shares of the common stock per one thousand dollar principal amount of the Notes (which represents an initial conversion price of approximately $75 per share). With certain exceptions, upon a fundamental change, as defined in the Indenture, the holders of the Notes may require that the Company to repurchase all or part of the principal amount of the Notes at a purchase price equal to the principal amount plus accrued and unpaid interest. The Company may redeem the principal amount of the Notes, at its option, in whole but not in part, at a purchase price equal to the principal amount plus accrued and unpaid interest on or after October 1, 2021 , if the closing sale price of the common stock exceeds 150% of the then-current conversion price for 20 or more trading days in the 30 consecutive trading day period preceding the Company’s exercise of this redemption right (including the trading day immediately prior to the date of the notice of redemption).The Company may elect to settle conversions of the Notes by paying or delivering, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock. The Company used the proceeds from the issuance of the Notes to repay $150,000 of its outstanding borrowings under the Credit Facility. The net proceeds from the issuance of the Notes were approximately $149,000 , after deducting debt issuance costs of $1,000 and offering expenses of approximately $442 paid by the Company. These transaction and debt issuance costs were allocated between the liability and equity components based on their relative values. The transaction costs and debt issuance costs allocated to the liability and equity components were $1,279 and $163 , respectively. The debt issuance costs allocated to the liability component are deferred and amortized as an adjustment to interest expense over the term of the Notes. The unamortized debt issuance costs is presented as a direct reduction from the Notes in the consolidated balance sheets. The unamortized debt issuance costs as of December 31, 2019 and 2018 was $1,018 and $1,127 , respectively. The Company accounted for the liability and equity components of the Notes separately to reflect its non-convertible debt borrowing rate. The estimated fair value of the liability component at issuance of $133,077 was determined using a discounted cash flow technique, which considered debt issuances with similar features of the Company’s debt, excluding the conversion feature. The resulting effective interest rate for the Notes was 5.75% per annum. The excess of the gross proceeds received over the estimated fair value of the liability component totaling $16,923 was allocated to the conversion feature (equity component, recorded as additional paid-in capital) with a corresponding offset recognized as a discount to reduce the net carrying value of the Notes. The discount is being amortized to interest expense over a six -year period ending October 1, 2024 (the expected life of the liability component) using the effective interest method. During the year ended December 31, 2019 and 2018 , the Company amortized $2,472 and $600 respectively of the discount to interest expense, on the Notes. The unamortized debt discount on the Notes as of December 31, 2019 and 2018 was $13,851 and $16,323 , respectively. Borrowings also includes structured payables which are in the nature of debt, amounting to $867 and $2,114 as of December 31, 2019 and 2018 , respectively, of which $867 and $1,423 is included under “current portion of long-term borrowings”, $ nil and $691 , respectively, included under “long-term borrowings, less current portion ” in the consolidated balance sheets. Future principal payments/maturities for all of the Company's borrowings as of December 31, 2019 were as follows: Notes Revolver Credit Structured Payables Total 2020 $ — $ 40,000 $ 867 $ 40,867 2021 — 40,000 — 40,000 2022 — 19,000 — 19,000 2023 — — — — 2024 150,000 — — 150,000 Total $ 150,000 $ 99,000 $ 867 $ 249,867 Letters of Credit In the ordinary course of business, the Company provides standby letters of credit to third parties primarily for facility leases. As of December 31, 2019 and 2018 , the Company had outstanding letters of credit of $ 461 and $ nil , respectively, that were not recognized in the consolidated balance sheets. |
Capital Structure
Capital Structure | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Capital Structure | Capital Structure Common Stock The Company has one class of common stock outstanding. During the year ended December 31, 2019 and 2018 , the Company purchased 23,859 and 51,446 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 $1,490 and $3,122 , respectively. The weighted average purchase price per share of $62.47 and $60.68 , respectively, was the closing 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 2017 through 2019 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 increased the 2017 authorization from $20,000 to $40,000 and authorizes stock repurchases of up to $40,000 in each of 2018 and 2019. On December 16, 2019 , the Company’s Board of Directors authorized a $200,000 common stock repurchase program beginning January 1, 2020 through December 31, 2022. The shares may be purchased by the Company from time to time from the open market and through private transactions, or otherwise, as determined by the Company’s management as market conditions warrant. During the year ended December 31, 2019 , the Company purchased 643,486 shares of its common stock for an aggregate purchase price of approximately $39,874 , including commissions, representing an average purchase price per share of $61.96 under the 2017 Repurchase Program. During the year ended December 31, 2018 , the Company purchased 674,604 shares of its common stock for an aggregate purchase price of approximately $39,987 , including commissions, representing an average purchase price per share of $59.27 under 2017 Repurchase Program. Repurchased shares have been recorded as treasury shares and will be held until the Board of Directors designates that these shares be retired or used for other purposes. Dividends The Company has not paid or declared any cash dividends on its common stock during the years ended December 31, 2019 , 2018 and 2017 . The Company’s line of credit with a bank could restrict, or its terms of the Notes could impair, the Company’s ability to declare or make any dividends or similar distributions. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [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, 2019 . 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: 2019 2018 Change in projected benefit obligation: Projected benefit obligation as of January 1 $ 11,044 $ 10,305 Business acquisition — 326 Service cost 1,953 1,735 Interest cost 875 714 Benefits paid (960 ) (1,066 ) Actuarial loss/(gain) 2,577 (134 ) Effect of exchange rate changes (178 ) (836 ) Projected benefit obligation as of December 31 $ 15,311 $ 11,044 Unfunded amount-non-current $ 6,517 $ 3,616 Unfunded amount-current 10 8 Total accrued liability $ 6,527 $ 3,624 Accumulated benefit obligation $ 10,743 $ 7,239 Components of net periodic benefit costs: Year ended December 31, 2019 2018 2017 Service cost $ 1,953 $ 1,735 $ 1,933 Interest cost 875 714 645 Expected return on plan assets (568 ) (514 ) (401 ) Amortization of actuarial (gain)/loss (159 ) (153 ) 256 Net periodic benefit cost $ 2,101 $ 1,782 $ 2,433 The components of accumulated other comprehensive (loss)/gain, excluding tax effects, as of December 31, 2019 , 2018 and 2017 are as follows: December 31, 2019 2018 2017 Net actuarial (loss)/gain $ (1,762 ) $ 940 $ 697 Net prior service cost (18 ) (22 ) (8 ) Accumulated other comprehensive (loss)/gain, excluding tax effects $ (1,780 ) $ 918 $ 689 The amount in accumulated other comprehensive loss that is expected to be recognized as a component of net periodic benefit cost over the next fiscal year is $558 . The weighted average actuarial assumptions used to determine benefit obligations and net gratuity cost are: December 31, 2019 2018 2017 Discount rate 6.5 % 7.5 % 7.0 % Rate of increase in compensation levels 6.0 % 8.2 % 9.1 % Expected long term rate of return on plan assets per annum 7.5 % 7.3 % 8.3 % 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, 2020 $ 2,408 2021 $ 2,234 2022 $ 1,969 2023 $ 1,812 2024 $ 1,563 2025 to 2029 $ 5,712 The Gratuity Plan in India is partially funded and the Philippines plan is unfunded. The Company makes annual contributions to the employee's 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 7.5% per annum on these Gratuity Plans for the year ended December 31, 2019 . Change in Plan Assets Plan assets at January 1, 2018 $ 6,915 Business acquisition 231 Actual return 779 Employer contribution 1,175 Benefits paid* (1,059 ) Effect of exchange rate changes (621 ) Plan assets at December 31, 2018 $ 7,420 Actual return 606 Employer contribution 1,905 Benefits paid* (957 ) Effect of exchange rate changes (190 ) Plan assets at December 31, 2019 $ 8,784 * Benefits payments were substantially made through the plan assets during the year ended December 31, 2019 and 2018. The Company maintains several 401(k) plans (the “401(k) Plans”) under Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”), covering all eligible employees, as defined in the Code as a defined contribution plan. The Company may make discretionary contributions of up to a maximum of 4% of employee compensation within certain limits. The Company accrued for contributions to the 401(k) Plans of $3,617 , $3,423 and $2,709 during the years ended December 31, 2019 , 2018 and 2017 , respectively. During the years ended December 31, 2019 , 2018 and 2017 , the Company contributed $10,395 , $7,614 and $7,116 respectively, for various defined contribution plans on behalf of its employees in India, the Philippines, Romania, the Czech Republic, South Africa, Colombia, and Singapore. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company conducts its operations using facilities leased under operating lease agreements that expire at various dates. The Company finances its use of certain motor vehicles and other equipment under various lease arrangements provided by financial institutions. The Company has performed an evaluation of its contracts with suppliers in accordance with Topic 842 and has determined that, except for leases for office facilities, motor vehicles and other equipment as described above, none of the Company’s contracts contain a lease. In assessment of the lease term, the Company considers the extension option as part of its lease term for those lease arrangements where the Company is reasonably certain of availing the extension option. The lease agreements do not contain any covenant to impose any restrictions except for market-standard practice for similar lease arrangements. Supplemental balance sheet information As of December 31, 2019 Operating Lease Operating lease right-of-use assets $ 86,396 Operating lease liabilities - Current $ 24,148 Operating lease liabilities - Non-current 74,709 Total operating lease liabilities $ 98,857 Finance Lease Property and equipment, gross $ 1,757 Accumulated depreciation (1,120 ) Property and equipment, net $ 637 Finance lease liabilities - Current $ 253 Finance lease liabilities - Non-current 430 Total finance lease liabilities $ 683 During the year ended December 31, 2019 , the Company performed an impairment test of its long-lived assets related to its Health Integrated business. Based on the results, the operating lease right-of-use assets carrying value exceeded its fair value. The primary factor contributing to a reduction in the fair value is the wind down of the Health Integrated business, due to an anticipated reduction to the Company's estimated future cash flows. As a result of this analysis, the Company recognized an impairment charge of $1,449 during year ended December 31, 2019, to write down the carrying value of operating lease right-of-use assets to its fair value. This impairment charge was recorded in the consolidated statements of income under "Impairment and restructuring charges". Refer to Note 24 to the consolidated financial statements for further details. The components of lease cost, which are included in the Company's consolidated statements of income, are as follows: Lease cost Year ended December 31, 2019 Finance lease: Amortization of right-of-use assets $ 255 Interest on lease liabilities 93 Operating lease (a) 27,335 Sublease income (146 ) Total lease cost $ 27,537 Operating lease cost for leases classified as such under Topic 840 for the years ended December 31, 2018 , and 2017 was $25,573 and $24,015 , respectively. (a) Includes short-term leases, which are immaterial. Supplemental cash flow and other information related to leases are as follows: Year ended December 31, 2019 Cash payments for amounts included in the measurement of lease liabilities : Operating cash outflows for operating leases $ 24,813 Operating cash outflows for finance leases $ 93 Financing cash outflows for finance leases $ 336 Right-of-use assets obtained in exchange for new operating lease liabilities $ 36,473 Right-of-use assets obtained in exchange for new finance lease liabilities $ 506 Weighted-average remaining lease term Finance lease 2.3 years Operating lease 6.0 years Weighted-average discount rate Finance lease 9.9 % Operating lease 7.6 % The Company determines the incremental borrowing rate by adjusting the benchmark reference rates, applicable to the respective geographies where the leases were entered, with appropriate financing spreads and lease specific adjustments for the effects of collateral. As of December 31, 2019 , the Company has entered into an operating lease for a facility that has not yet commenced with lease liability of approximately $11,900 . This operating lease will commence in January 2020 and has a lease term of 15 years . Maturities of lease liabilities as of December 31, 2019 are as follows: Operating Leases Finance Leases 2020 $ 26,932 $ 325 2021 23,783 251 2022 21,526 157 2023 19,381 86 2024 14,865 22 2025 and thereafter 23,983 — Total lease payments $ 130,470 $ 841 Less: Imputed interest 31,613 158 Present value of lease liabilities $ 98,857 $ 683 Maturities of minimum lease payments as of December 31, 2018 are as follows: During the next twelve months ending December 31, Operating Leases Capital Leases 2019 $ 23,431 $ 283 2020 20,039 163 2021 16,924 120 2022 14,804 58 2023 12,859 49 2024 11,114 — 2025 and thereafter 15,000 — Total minimum lease payment $ 114,171 $ 673 Less: imputed interest NA 135 Present value of minimum lease payments NA 538 Less: current portion NA 223 Long term capital lease obligation NA $ 315 |
Leases | Leases The Company conducts its operations using facilities leased under operating lease agreements that expire at various dates. The Company finances its use of certain motor vehicles and other equipment under various lease arrangements provided by financial institutions. The Company has performed an evaluation of its contracts with suppliers in accordance with Topic 842 and has determined that, except for leases for office facilities, motor vehicles and other equipment as described above, none of the Company’s contracts contain a lease. In assessment of the lease term, the Company considers the extension option as part of its lease term for those lease arrangements where the Company is reasonably certain of availing the extension option. The lease agreements do not contain any covenant to impose any restrictions except for market-standard practice for similar lease arrangements. Supplemental balance sheet information As of December 31, 2019 Operating Lease Operating lease right-of-use assets $ 86,396 Operating lease liabilities - Current $ 24,148 Operating lease liabilities - Non-current 74,709 Total operating lease liabilities $ 98,857 Finance Lease Property and equipment, gross $ 1,757 Accumulated depreciation (1,120 ) Property and equipment, net $ 637 Finance lease liabilities - Current $ 253 Finance lease liabilities - Non-current 430 Total finance lease liabilities $ 683 During the year ended December 31, 2019 , the Company performed an impairment test of its long-lived assets related to its Health Integrated business. Based on the results, the operating lease right-of-use assets carrying value exceeded its fair value. The primary factor contributing to a reduction in the fair value is the wind down of the Health Integrated business, due to an anticipated reduction to the Company's estimated future cash flows. As a result of this analysis, the Company recognized an impairment charge of $1,449 during year ended December 31, 2019, to write down the carrying value of operating lease right-of-use assets to its fair value. This impairment charge was recorded in the consolidated statements of income under "Impairment and restructuring charges". Refer to Note 24 to the consolidated financial statements for further details. The components of lease cost, which are included in the Company's consolidated statements of income, are as follows: Lease cost Year ended December 31, 2019 Finance lease: Amortization of right-of-use assets $ 255 Interest on lease liabilities 93 Operating lease (a) 27,335 Sublease income (146 ) Total lease cost $ 27,537 Operating lease cost for leases classified as such under Topic 840 for the years ended December 31, 2018 , and 2017 was $25,573 and $24,015 , respectively. (a) Includes short-term leases, which are immaterial. Supplemental cash flow and other information related to leases are as follows: Year ended December 31, 2019 Cash payments for amounts included in the measurement of lease liabilities : Operating cash outflows for operating leases $ 24,813 Operating cash outflows for finance leases $ 93 Financing cash outflows for finance leases $ 336 Right-of-use assets obtained in exchange for new operating lease liabilities $ 36,473 Right-of-use assets obtained in exchange for new finance lease liabilities $ 506 Weighted-average remaining lease term Finance lease 2.3 years Operating lease 6.0 years Weighted-average discount rate Finance lease 9.9 % Operating lease 7.6 % The Company determines the incremental borrowing rate by adjusting the benchmark reference rates, applicable to the respective geographies where the leases were entered, with appropriate financing spreads and lease specific adjustments for the effects of collateral. As of December 31, 2019 , the Company has entered into an operating lease for a facility that has not yet commenced with lease liability of approximately $11,900 . This operating lease will commence in January 2020 and has a lease term of 15 years . Maturities of lease liabilities as of December 31, 2019 are as follows: Operating Leases Finance Leases 2020 $ 26,932 $ 325 2021 23,783 251 2022 21,526 157 2023 19,381 86 2024 14,865 22 2025 and thereafter 23,983 — Total lease payments $ 130,470 $ 841 Less: Imputed interest 31,613 158 Present value of lease liabilities $ 98,857 $ 683 Maturities of minimum lease payments as of December 31, 2018 are as follows: During the next twelve months ending December 31, Operating Leases Capital Leases 2019 $ 23,431 $ 283 2020 20,039 163 2021 16,924 120 2022 14,804 58 2023 12,859 49 2024 11,114 — 2025 and thereafter 15,000 — Total minimum lease payment $ 114,171 $ 673 Less: imputed interest NA 135 Present value of minimum lease payments NA 538 Less: current portion NA 223 Long term capital lease obligation NA $ 315 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income before income taxes consist of the following: Year ended December 31, 2019 2018 2017 Domestic $ (16,685 ) $ (24,442 ) $ 4,626 Foreign 99,785 84,812 80,408 $ 83,100 $ 60,370 $ 85,034 The income tax expense consists of the following: Year ended December 31, 2019 2018 2017 Current provision/(benefit): Domestic $ 10,823 $ (13,249 ) $ 17,407 Foreign 16,694 17,271 18,008 $ 27,517 $ 4,022 $ 35,415 Deferred provision/(benefit): Domestic $ (13,912 ) $ (1,999 ) $ 2,618 Foreign 1,567 1,374 (1,887 ) $ (12,345 ) $ (625 ) $ 731 Income tax expense $ 15,172 $ 3,397 $ 36,146 Income taxes recognized in other comprehensive income are as follows: Year ended December 31, 2019 2018 2017 Deferred taxes (expense)/benefit : Unrealized gain/(loss) on cash flow hedges $ (391 ) $ 4,803 $ (3,711 ) Retirement benefits 328 (21 ) (268 ) Total Income tax (expense)/benefit recognized in other comprehensive income $ (63 ) $ 4,782 $ (3,979 ) 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, 2019 2018 2017 Expected tax expense $ 17,451 $ 12,678 $ 29,762 Change in valuation allowance — — (21 ) Impact of tax holiday (5,920 ) (5,448 ) (4,396 ) Foreign tax rate differential 1,660 5,014 (2,616 ) Deferred tax provision/(benefit) 3,026 (3,915 ) (1,887 ) Unrecognized tax benefits and interest 174 (88 ) (3,905 ) State taxes, net of Federal taxes 2,137 2,201 339 Non-deductible expenses 1,329 3,066 825 US Tax Reform Act impact — 176 29,185 Excess tax benefit on stock-based compensation (2,306 ) (7,227 ) (9,797 ) Research & Development credit (1,650 ) (1,500 ) (844 ) Prior period items (143 ) (1,466 ) — Others (586 ) (94 ) (499 ) Tax expense $ 15,172 $ 3,397 $ 36,146 The Company recorded income tax expense of $15,172 and $3,397 for the year ended December 31, 2019 and 2018 , respectively. The effective tax rate increased from 5.6% during the year ended December 31, 2018 to 18.3% during the year ended December 31, 2019 primarily as a result of: (i) recording of a one-time tax benefit of $6,274 with respect to unused 2018 foreign branch income tax credits under the Internal Revenue Code of 1986, as amended, during the year ended December 31, 2018 , (ii) recording of higher excess tax benefits related to stock awards of $7,227 pursuant to ASU No. 2016-09 during the year ended December 31, 2018 compared to $2,306 during the year ended December 31, 2019, (iii) lower tax expense of $3,072 on account of impairment and restructuring charges recorded during the year ended December 31, 2018 compared to $888 during the year ended December 31, 2019, partially offset by (iv) higher tax exemptions/incentives and a lower tax rate for qualifying Indian subsidiaries due to a change in legislation during the year ended December 31, 2019. During the year 2018, the Company made an election to change the tax status of most of its controlled foreign corporations (“CFC”) to disregarded entities for U.S. income tax purposes. As a result, the Company no longer has undistributed earnings in connection with these CFCs. The Transition Tax resulted in previously taxed income (“PTI”) which may be subject to withholding taxes and currency gains or losses upon repatriation. The Company presently does not intend to distribute its PTI and has not recorded any deferred taxes related to its investment in foreign subsidiaries. If, in the future, the Company changes its present intention regarding the distribution of PTI, additional taxes may be required and would be recorded in the period the intention changes. The Company has adopted an accounting policy to treat Global Intangible Low-Taxed Income (“GILTI”) as a period cost. 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 5 years of operations and 50% exemption for a period of 5 years thereafter. In 2019, the Government of India introduced a new tax regime for certain Indian companies by enacting the Taxation Laws (Amendment) Act, 2019. The new tax regime is optional and provides for a lower tax rate for Indian companies, subject to certain conditions which among other things includes not availing of specified exemptions or incentives. Some of the Indian subsidiaries have opted for the new tax regime to obtain the benefit of a lower tax rate. The Company has also benefitted from a corporate tax holiday in the Philippines for our operations centers established there over the last several years. The tax holiday expired for few of our centers in 2014, 2016, 2018 and in 2019 and will expire for other centers by year 2022, 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. The diluted earnings per share effect of the tax holiday is $0.17 , $0.16 and $0.13 for the years ended December 31, 2019 , 2018 and 2017 , respectively. The components of the deferred tax balances as of December 31, 2019 and 2018 are as follows: As of December 31, 2019 December 31, 2018 Deferred tax assets: Depreciation and amortization expense $ 12,319 $ 3,731 Stock-based compensation 9,313 8,614 Accrued employee costs and other expenses 9,805 3,596 Net operating loss carry forward 2,896 1,113 Unrealized exchange loss 1,136 6,671 Deferred rent 4,503 2,255 Others 745 1,380 $ 40,717 $ 27,360 Valuation allowance (202 ) (99 ) Deferred tax assets $ 40,515 $ 27,261 Deferred tax liabilities: Unrealized exchange gain $ 505 $ 115 Intangible assets 20,696 19,289 Unamortized discount on convertible senior notes 3,395 4,105 Others 5,030 5,595 Deferred tax liabilities $ 29,626 $ 29,104 Net deferred tax assets/(liabilities) $ 10,889 $ (1,843 ) 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, 2019 and 2018 , the Company performed an analysis of the deferred tax asset valuation allowance for net operating loss carry forward for its domestic and foreign 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 $202 and $20 as of December 31, 2019 and 2018 , respectively. The Company also recorded a valuation allowance of $ nil and $79 related to the tax credit carry forward as of December 31, 2019 and 2018 , respectively. The Company in connection with its recent acquisitions has acquired federal and state net operating losses in the United States. As of December 31, 2019 and 2018 , the Company has federal net operating loss carry forward of $ nil and $444 , respectively, which expire through various years until 2032 . The Company’s federal net operating losses carry forward are subject to certain annual utilization limitations under Section 382 of the Code. The Company also has state and local net operating losses 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 substantially all of the losses before their expiration. The Company’s income tax expense also includes the impact of provisions established for uncertain income tax positions determined in accordance with ASC 740. 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 unrecognized tax benefits for the years ended December 31, 2019 , 2018 and 2017 . 2019 2018 2017 Balance as of January 1 $ 804 $ 824 $ 3,087 Increases related to prior year tax positions 69 — — Decreases related to prior year tax positions (156 ) (320 ) (2,520 ) Increases related to current year tax positions 330 300 169 Effect of exchange rate changes — — 88 Balance as of December 31 $ 1,047 $ 804 $ 824 The unrecognized tax benefits as of December 31, 2019 of $1,047 , if recognized, would impact the effective tax rate. The Company has no t recognized any interest in each of the years ended December 31, 2019 , 2018 and 2017 . As of December 31, 2019 and 2018 , the Company has not accrued interest and penalties relating to unrecognized tax benefits. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation On June 15, 2018, at the Company’s 2018 Annual Meeting of Stockholders, the Company's stockholders approved the 2018 Plan, which replaced and superseded the 2015 Plan, which was an amendment and restatement of the Company’s 2006 Omnibus Award Plan to, among other things, reserves 3,175,000 shares of the Company’s common stock for grants of awards under the 2018 Plan. As of December 31, 2019 , the Company had 2,785,763 shares available for grant under the 2018 Plan (includes 99,378 shares against vested performance-based restricted stock units for which the underlying common stock was issued subsequent to December 31, 2019 ). Under the 2018 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 of the type restricted stock units 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, Compensation - Stock Compensation , 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 based on straight-line method 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, 2019 2018 2017 Cost of revenues $ 5,895 $ 4,924 $ 4,600 General and administrative expenses 10,012 10,371 10,363 Selling and marketing expenses 10,163 8,606 8,078 Total $ 26,070 $ 23,901 $ 23,041 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 period of the awards, which is generally the vesting period. The Company accounts for the forfeitures as and when the actual forfeitures occur. Stock option activity under the Company’s stock-based compensation plans is shown below: Number of Options Weighted- Average Exercise Price Aggregate Intrinsic Value Weighted- Average Remaining Contractual Life (Years) Outstanding at December 31, 2018 162,475 $ 20.21 $ 5,267 2.24 Granted — — — — Exercised (64,314 ) 15.33 3,187 — Forfeited — — — — Outstanding at December 31, 2019 98,161 $ 23.39 $ 4,522 1.86 Vested and exercisable at December 31, 2019 98,161 $ 23.39 $ 4,522 1.86 The unrecognized compensation cost for unvested options as of December 31, 2019 is $ nil . The Company did not grant any options during the years ended December 31, 2019 , 2018 and 2017 . The aggregate intrinsic value of options exercised during the years ended December 31, 2019 , 2018 and 2017 was $3,187 , $4,446 and $23,027 , respectively. The following table summarizes the status of the Company’s stock options outstanding, vested and exercisable at December 31, 2019 : Options Outstanding, Vested and Exercisable Range of Exercise Prices Shares Weighted- Average Exercise Price $15.00 to $21.00 14,893 $ 18.89 $21.01 to $28.00 83,268 $ 24.20 Total 98,161 $ 23.39 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-based compensation plans is shown below: Restricted Stock Restricted Stock Units Number Weighted- Average Fair Value Number Weighted- Average Fair Value Outstanding at December 31, 2018 ** 103,623 $ 42.68 953,578 $ 51.81 Granted — — 512,598 64.29 Vested * (76,239 ) 40.51 (400,497 ) 47.43 Forfeited — — (151,386 ) 58.52 Outstanding at December 31, 2019 ** 27,384 $ 48.72 914,293 $ 59.62 * Includes 10,318 and 9,641 restricted stock units vested during the years ended December 31, 2019 and 2018 , respectively, for which the underlying common stock is yet to be issued. ** As of December 31, 2019 and 2018 restricted stock units vested for which the underlying common stock is yet to be issued are 166,071 and 155,753 , 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, 2019 , unrecognized compensation cost of $39,886 is expected to be expensed over a weighted average period of 2.56 years . The weighted-average fair value of restricted stock and restricted stock units granted during the years ended December 31, 2019 , 2018 and 2017 was $64.29 , $60.64 and $48.02 , respectively. The total grant date fair value of restricted stock and restricted stock units vested during the years ended December 31, 2019 , 2018 and 2017 was $22,084 , $19,865 and $19,430 , respectively. Performance Based Stock Awards Under the 2018 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 an aggregated revenue target for a three year period (“PUs”). The remaining 50% is based on a market condition (“MUs”) that is contingent on the Company's meeting the total shareholder return (“TSR”) 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 is determined based on the market price of one common share on a day prior to the date of grant, and the associated stock compensation expense is calculated on the basis that performance targets at 100% are probable of being achieved. The stock 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 are adjusted upward or downward based upon the probability of achievement of the performance targets. The final number of shares issued and the related compensation cost recognized as an expense is based on a comparison of the final performance metrics to the specified targets. The grant date fair value for the MUs is determined using a Monte Carlo simulation model and the related stock compensation expense is expensed on a straight-line basis over the vesting period. The stock compensation expense related to the MUs is recognized once the requisite performance period is fulfilled regardless of the extent of the market condition 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, 2019 2018 2017 Dividend yield — — — Expected life (years) 2.86 2.86 2.86 Risk free interest rate 2.46 % 2.38 % 1.40 % Volatility 20.52 % 21.79 % 23.78 % 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, 2018 100,353 $ 54.07 100,336 $ 62.43 Granted 54,062 64.33 54,053 92.13 Adjustment upon final determination of level of performance goal achievement* 11,285 47.73 1,759 54.10 Vested (54,456 ) 47.73 (44,922 ) 54.10 Forfeited (23,559 ) 57.69 (23,556 ) 72.65 Outstanding at December 31, 2019 87,685 $ 62.54 87,670 $ 82.10 * Represents adjustment of shares vested in respect of PUs and MUs granted in February 2017 upon achievement of the performance targets for such awards for which the underlying common stock was issued subsequent to December 31, 2019 . As of December 31, 2019 , unrecognized compensation cost of $7,751 is expected to be expensed over a weighted average period of 1.71 years . |
Impairment and Restructuring Ch
Impairment and Restructuring Charges | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Impairment and Restructuring Charges | Impairment and Restructuring Charges On December 31, 2019 , the Company completed substantially the previously announced wind down of the operations of the Health Integrated business, which is reported within the Healthcare reportable segment. The operating results of this business were significantly below the Company's estimates and actual cash flows were impacted due to loss of customer contracts and cost pressures, and the Company incurred losses from this business. The commencement of the process of winding down the Health Integrated business was previously disclosed by the Company in the Current Report on Form 8-K filed with the Securities and Exchange Commission (“SEC”) on April 4, 2019 as amended by a Current Report on Form 8-K/A filed with the SEC on July 16, 2019. In connection with the wind down process, the Company recorded pre-tax costs in the consolidated statements of income under “Impairment and restructuring charges”. The following table summarizes the activity related to the restructuring costs incurred and paid for the wind down during the year ended December 31, 2019 : Contract Termination Costs Employee-Related Costs Other Associated Costs Total Balance as of January 1, 2019 $ — $ — $ — $ — Costs incurred during the year 2,597 1,375 1,072 5,044 Payments during the year (1,000 ) (269 ) (701 ) (1,970 ) Balance as of December 31, 2019 $ 1,597 $ 1,106 $ 371 $ 3,074 Additionally, the Company recognized impairment of ROU assets and long-lived assets of $3,627 during the year ended December 31, 2019 in the consolidated statements of income under "Impairment and restructuring charges". |
Related Party Disclosures
Related Party Disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Disclosures | Related Party Disclosures On October 1, 2018, the Company entered into the Investment Agreement with the Purchaser relating to the issuance to the Purchaser of $150,000 aggregate principal amount of the Notes. In connection with the investment, Vikram S. Pandit, Chairman and CEO of The Orogen Group LLC (an affiliate of the Purchaser), was appointed to Company’s Board of Directors. The Company had outstanding Notes with a principal amount of $150,000 as of December 31, 2019 and 2018 , and interest accrued of $1,313 each as of December 31, 2019 and 2018 , related to the Investment Agreement. Refer to Note 18 to the consolidated financial statements for details. 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 $ nil , $225 and $1,748 for the years ended December 31, 2019 , 2018 and 2017 , respectively, for services provided. As of December 31, 2019 and 2018 , the Company had accounts receivable of $ nil and $5 , respectively, related to these services. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Capital Commitments At December 31, 2019 and 2018, the Company has committed to spend approximately $6,500 and $6,300 , respectively under agreements to purchase property and equipment. This amount is net of capital advances paid which are recognized in consolidated balance sheets as property and equipment. 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”) or Special Economic Zone (“SEZ”) 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 local purchase of services and materials and requires ExlService Philippines, Inc. to meet certain performance and investment criteria. The Company’s management believes that these centers have in the past satisfied and will continue to satisfy the required criteria. In March 2017, the Company was named as a defendant in a putative class action lawsuit filed in California, which challenged the classification of independent contractors. The parties participated in a mediation in early 2018. As the result of the mediation, a settlement was reached pursuant to which the Company agreed, without admission of wrongdoing, to pay a total of $2,400 , of which $1,200 was paid in 2018 and the remainder was paid in 2019. Contingencies U.S. and Indian transfer pricing regulations require that any international transaction involving associated enterprises be at an arm’s-length price. Accordingly, the Company determines the appropriate pricing for the international transactions among its associated enterprises on the basis of a detailed functional and economic analysis involving benchmarking against transactions among entities that are not under common control. The tax authorities have jurisdiction to review this arrangement and in the event that they determine that the transfer price applied was not appropriate, the Company may incur increased tax liability, including accrued interest and penalties. The Company is currently involved in disputes with the Indian tax authorities over the application of some of its transfer pricing policies for some of its subsidiaries. Further, the Company and a U.S. subsidiary are engaged in tax litigation with the income-tax authorities in India on the issue of permanent establishment. The Company is subject to taxation in the United States and various states and foreign jurisdictions. For the U.S., the Philippines and India, tax year 2016 and subsequent tax years remain open for examination by the tax authorities as of December 31, 2019. 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 2015 and its permanent establishment issues for tax years 2003 to 2007 as of December 31, 2019 and 2018 is $16,220 and $18,177 , respectively, of which the Company has made payments and/or provided bank guarantees to the extent $8,108 and $8,171 , respectively. Amounts paid as deposits in respect of such assessments aggregating to $6,252 and $6,273 as of December 31, 2019 and 2018 , respectively, are included in “Other assets” and amounts deposited for bank guarantees aggregating to $1,856 and $1,899 as of December 31, 2019 and 2018 , respectively, are included in “Restricted cash” in the non-current assets section of the Company’s consolidated balance sheets. Based on the facts underlying the Company’s position and its experience with these types of assessments, the Company believes that its position will more likely than not be sustained upon final examination by the tax authorities based on its technical merits as of the reporting date 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. During the quarter ended March 31, 2019, there was a judicial pronouncement in India with respect to defined contribution benefits payments interpreting certain statutory defined contribution obligations of employees and employers. Currently some of the Company's subsidiaries in India are undergoing assessment with the statutory authorities. As of the reporting date, it is unclear whether the interpretation set out in the pronouncement has retrospective application. If applied retrospectively, the interpretation may result in a significant increase in contributions payable by the Company for past periods for certain of its India-based employees. There are numerous interpretative challenges concerning the retrospective application of the judgment. Due to such challenges and a lack of interpretive guidance, and based on legal advice, the Company believes it is currently impracticable to reliably estimate the timing and amount of any payments the Company may be required to make. Accordingly, the Company will re-evaluate the amount of a potential provision, if any, upon further developments. From time to time, the Company and/or its present officers or directors, on individual basis, may be or have been, named as a defendant in litigation matters, including employment-related claims. The plaintiffs in those cases seek damages, including, where applicable, compensatory damages, punitive damages and attorney’s fees. With respect to pending litigation matters as of the reporting date, the Company believes that the damages amounts claimed in such cases are not meaningful indicators of the potential liabilities of the Company, that these matters are without merit, and that the Company intends to vigorously defend each of them. The outcomes of legal actions are unpredictable and subject to significant uncertainties, and thus it is inherently difficult to determine the likelihood of the Company incurring a material loss or quantification of any such loss. With respect to pending litigation matters as of the reporting date, based on information currently available, including the Company’s assessment of the facts underlying each matter and advice of counsel, the amount or range of reasonably possible losses, if any, cannot be reasonably estimated. Based on the Company’s assessment, including the availability of insurance recoveries, the Company’s management does not believe that currently pending litigation, individually or in aggregate, will have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows. |
Impact of adoption of accountin
Impact of adoption of accounting guidance on prior year’s presentation and disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Impact of adoption of accounting guidance on prior years’ presentation and disclosures | Impact of adoption of accounting guidance on prior year’s presentation and disclosures Effective January 1, 2018, the Company adopted ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post Retirement Benefit Cost . Accordingly, the Company retrospectively included only the service cost component of the net periodic benefit cost in the same line item or items on the consolidated statements of income as other compensation costs arising from services rendered by the respective employees during the period. The other components of net periodic benefit cost, which included interest cost, expected return on plan assets and amortization of actuarial gains/loss, were reclassified from “Cost of revenues”, “General and administrative expenses” and “Selling and marketing expenses” to “Other income, net”. The effect of the adoption of ASU No. 2017-07 (Topic 715) on 2017 financial information is summarized as follows: Year ended December 31, 2017 Previously reported As revised Effect of change increase/(decrease) Location in consolidated statements of income Cost of revenues $ 495,586 $ 495,142 $ (444 ) General and administrative expenses $ 102,567 $ 102,515 $ (52 ) Selling and marketing expenses $ 53,383 $ 53,379 $ (4 ) Other income, net $ 11,859 $ 11,359 $ (500 ) Year ended December 31, 2017 Cost of revenues previously reported Cost of revenues as revised Effect of change increase/(decrease) Segment information (refer Note 3) Insurance $ 159,529 $ 159,433 $ (96 ) Healthcare $ 49,483 $ 49,412 $ (71 ) TT&L $ 41,409 $ 41,337 $ (72 ) F&A $ 51,445 $ 51,362 $ (83 ) All Other $ 56,697 $ 56,638 $ (59 ) Analytics $ 137,023 $ 136,960 $ (63 ) Operating Expenses $ 194,499 $ 194,443 $ (56 ) Foreign exchange gain, interest expense and other income, net $ 12,809 $ 12,309 $ (500 ) Effective January 1, 2018, the Company adopted ASU 2016-18, Statements of Cash Flows (Topic 230), Restricted Cash. Accordingly, for 2017, restricted cash and restricted cash equivalents is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the consolidated statements of cash flows. The effect of the adoption of ASU No. 2016-18 (Topic 230) on 2017 financial information is summarized as follows: Year ended December 31, 2017 Previously reported As revised Effect of change increase/(decrease) Consolidated statements of cash flows Net cash provided by operating activities $ 113,140 $ 113,159 $ 19 Effect of exchange rate changes on cash, cash equivalents and restricted cash $ 3,711 $ 3,935 $ 224 Net increase/(decrease) in cash, cash equivalents and restricted cash $ (126,360 ) $ (126,117 ) $ 243 Cash, cash equivalents and restricted cash - beginning of year $ 213,155 $ 220,394 $ 7,239 Cash, cash equivalents and restricted cash - end of year $ 86,795 $ 94,277 $ 7,482 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Preparation | The consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“U.S. 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. The standalone financial statements of subsidiaries are fully consolidated on a line-by-line basis. Intra-group balances and transactions, and income and expenses arising from intra-group transactions, are eliminated while preparing those financial statements. 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 U.S. GAAP. The Company’s investments in equity affiliates 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. |
Use of Estimates | The preparation of the consolidated financial statements in conformity with U.S. 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 consolidated statements of income during the reporting period. Although these estimates are based on management’s best assessment of the current business environment, actual results may be different from those estimates. The significant estimates and assumptions that affect the consolidated financial statements include, but are not limited to, allowance for doubtful receivables, expected recoverability from customers with contingent fee arrangements, recoverability of dues from statutory authorities, 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, assumptions used to determine the incremental borrowing rate to calculate lease liabilities and right-of-use (“ROU”) assets, lease term to calculate lease cost, depreciation and amortization periods, purchase price allocation, recoverability of long-lived assets including goodwill and intangibles, and estimated costs to complete fixed price contracts. |
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 exchange rates that prevailed on the date of inception of the transaction. All foreign exchange gains and losses arising on re-measurement 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 sheets. |
Revenue Recognition | Revenue is recognized when services are provided to the Company's customers, in an amount that reflects the consideration which the Company expect to be entitled to in exchange for the services provided. Revenue is measured based on consideration specified in a contract with a customer and excludes discounts and amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by providing services to a customer. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Adoption of Financial Accounting Standards Board Accounting Standards Update (“ASU”) No. 2014-09 Topic 606, Revenue from Contracts with Customers (“Topic 606”) On January 1, 2018, the date of initial application, the Company adopted Topic 606 using the modified retrospective method by recognizing the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of retained earnings, resulting in an increase of $454 , primarily due to new contract acquisition costs. The initial application scopes in those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning January 1, 2018 are presented under Topic 606. The prior period consolidated financial statements have not been retrospectively adjusted and continue to be reported under the accounting standards in effect for those periods. The key area impacted upon adoption of Topic 606 relates to the accounting for sales commissions costs. Specifically, under Topic 606 a portion of sales commission costs have been recorded as an asset and recognized as an operating expense on a straight-line basis over the expected period of benefit. Prior to adoption, the Company was expensing sales commission costs as incurred. Nature of Services The Company derives its revenues from operations management and analytics services. The Company operates in the business process management (“BPM”) industry providing operations management and analytics services helping businesses enhance revenue growth and improve profitability. The Company provides BPM or “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 Company also provides industry-specific digital transformational services related to operations management services, and analytics services that focus on driving improved business outcomes for clients by generating data-driven insights across all parts of their business. The Company also provides care optimization and reimbursement optimization services, for its clients through its healthcare analytics solutions and services. The Company offers integrated solutions to help its clients with cost containment by leveraging technology platforms, customizable and configurable analytics and expertise in healthcare reimbursements to help clients enhance their claims payment accuracy. Type of Contracts i. a) 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. b) Revenues from arrangements involving subcontracting, either in part or whole of the assigned work, are recognized after Company’s assessment of “Principal versus agent considerations”. The Company evaluates whether it is in control of the services before the same are transferred to the customer to assess whether it is principal or agent in the arrangement. Revenues are recognized on a gross basis if the Company is in the capacity of principal and on a net basis if it falls in the capacity of an agent. ii. Revenues for the Company’s fixed-price contracts are recognized using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the client. The use of this method requires significant judgment to estimate the cost 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 and resources engaged. The Company regularly monitors these estimates throughout the execution of the project and records 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. iii. Revenue from the Company’s software and related services contracts, which are not significant, are primarily related to annual 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 without any associated services are recognized upon delivery of the related incremental license. To a lesser extent, certain contracts may include offerings such as sale of licenses, which may be perpetual or subscription-based. The Company recognizes revenue from distinct perpetual licenses upfront at a point in time when the software is made available to the client, whereas for a combined software license and services performance obligation, revenue is recognized over the period that the services are performed. Revenue from distinct subscription based licenses is recognized over the period of service performed. Revenue from any associated maintenance or ongoing support services is recognized over the term of the contract. iv. Revenues from reimbursement optimization services having contingent fee arrangements are recognized by the Company at the point in time when a performance obligation is satisfied, which is when it identifies an overpayment claim. In such contracts, the Company’s consideration is contingent upon the actual collections made by its customers and net of any subsequent retraction claims. Based on guidance on “variable consideration” in Topic 606, the Company uses its historical experience and projections to determine the expected recoveries from its customers and recognizes revenue based upon such expected recoveries. Any adjustment required due to change in estimates are recorded in the period in which such change is identified. Modification to Contracts The Company’s contracts may be modified to add, remove or change existing performance obligations. The accounting for modifications to contracts involves assessing whether the services added to an existing contract are distinct and whether the pricing is at a standalone selling price. Services added that are distinct and at standalone selling price are accounted on a prospective basis either as a separate contract, or as a termination of existing contract and creation of a new contract. Arrangements with Multiple Performance Obligations The Company’s contracts with customers do not generally bundle different services together except for software and related services contracts, which are not significant, involving implementation services and post contract maintenance services. In such software and related services contracts, revenue is allocated to each performance obligation based on the relative standalone selling price. Variable Consideration Variability in the transaction price arises primarily due to service level agreements, pre-payment and volume discounts. The Company considers its experience with similar transactions and expectations regarding the contract in estimating the amount of variable consideration that should be recognized during a period. The Company believes that the expected value method is most appropriate for determining the variable consideration since the Company has large number of contracts with similar nature of transactions/services. Allocation of Transaction Price to Performance Obligations The transaction price is allocated to performance obligations on a relative standalone selling price basis. Standalone selling prices are estimated by reference to the total transaction price less the sum of the observable standalone selling prices of other goods or services promised in the contract. In assessing whether to allocate variable consideration to a specific part of the contract, the Company considers the nature of the variable payment and whether it relates specifically to its efforts to satisfy a specific part of the contract. Unbilled Receivables Unbilled receivables represents revenues recognized for services rendered between the last billing date and the balance sheet date. Unbilled receivables also include revenues recognized from reimbursement optimization services where the Company identify an overpayment claim. In such contracts, Company’s consideration is contingent upon and collectable only when the actual collections are made by its customers. Based on guidance on “variable consideration” in Topic 606, Company use its historical experience and projections to determine the expected recoveries from its customers and recognize revenue and receivables based upon such expected recoveries. Accordingly, the amounts for which services have been performed and for which invoices have not been issued to customers on the balance sheet date, (i.e. unbilled receivables) are presented under accounts receivable. Deferred Revenue and Contract Fulfillment Costs The Company has contract liabilities (deferred revenue) consisting of advance billings and billing in excess of revenues recognized. Deferred revenue also includes the amount for which services have been rendered but other conditions of revenue recognition are not met, for example where the Company does not have an enforceable contract. Further, the Company also defer revenues attributable to certain process transition activities, with respect to its customers where such activities do not represent separate performance obligations. Revenues related to such transition activities are classified under “Deferred Revenue” and “other non-current liabilities” in the Company’s consolidated balance sheets and are recognized ratably over the period during which the related services are performed. Costs related to such transition activities are contract fulfillment costs, and thereby classified under “Other Current Assets” and “Other Assets” in the consolidated balance sheets, and are recognized over the estimated expected period of benefit, under Cost of Revenues in the consolidated statements of income. Contract Acquisition Costs Direct and incremental costs incurred for acquiring contracts, such as sales commissions are contract acquisition costs and thereby classified under “Other Current Assets” and “Other Assets” in the consolidated balance sheets. Such costs are amortized over the expected period of benefit and recorded under Selling and marketing expenses in the consolidated statements of income. Upfront Payment Made to Customer Upfront payments, in nature of deal signing discount or deal signing bonuses made to customers are contract assets and classified under “Other Current Assets and Other Assets” in the consolidated balance sheets. Such costs are amortized over the expected period of benefit and are recorded as an adjustment to transaction price and reduced from revenues. Out of Pocket Expenses Reimbursements of out-of-pocket expenses received from clients are included as part of revenues. Payment terms All contracts entered into by the Company specify the payment terms and are defined for each contract separately. Usual payment terms range between 30 - 60 days. The Company does not have any extended payment terms clauses in existing contracts. Remaining Performance Obligations The Company does not disclose the value of remaining performance obligations by applying the practical expedient provided in Topic 606, for contracts that meet any of the following criteria: i. Contracts with an original expected length of one year or less as determined under ASC 606, ii. |
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 in favor of relevant statutory authorities for equipment imports, deposits for obtaining indirect tax registrations and for demands against pending income tax assessments (refer to Note 8 to the consolidated financial statements for details). These deposits with banks have maturity dates after December 31, 2019 . Restricted cash presented under current assets represents funds held on behalf of clients 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 Financial Accounting Standard Board Accounting Standards Codification (“ASC”) Topic 825, Financial Instruments |
Accounts Receivable and Allowance for Doubtful Receivable | 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 finance 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 on equipment held under finance leases and leasehold improvements are computed using the straight-line method over the shorter of the asset's estimated useful lives or the lease term. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Useful Lives Assets: Network equipment and computers 3-5 Software 3-5 Leasehold improvements 3-8 Office furniture and equipment 3-8 Motor vehicles 2-5 Buildings 30 |
Software Development Costs | The Company capitalizes certain costs related to the development or enhancements to existing software products to be sold, leased or otherwise marketed and / or used for internal use. The Company begins to capitalize costs to develop or enhance software when planning stage efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed and the software will be used as intended. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed as incurred and recorded within “general and administrative expenses” in the Company’s consolidated statements of income. The Company exercises judgment in determining the point at which various projects may be capitalized, in assessing the ongoing value of the capitalized costs, and in determining the estimated useful lives over which the costs are amortized. Annual amortization of internally developed software products meant for sale, lease or otherwise marketing is the greater of the amount computed using the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product or the straight-line method over the remaining estimated economic life of the software product, generally estimated to be up to 5 years |
Business Combinations, Goodwill and Other Intangible Assets | ASC Topic 805, Business Combinations, requires that the acquisition 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 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 in a business combination. 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. The Company undertakes studies to determine the fair values of assets and liabilities acquired and allocate purchase consideration to assets and liabilities, including property and equipment, goodwill and other identifiable intangibles. The Company examines the carrying value of the goodwill annually in the fourth quarter, or more frequently, as circumstances warrant, to determine whether there are any impairment losses. The Company tests for goodwill impairment at the reporting unit level, as that term is defined in U.S. GAAP. Refer to Note 10 for discussion of the Company's goodwill impairment testing. The Company adopted ASU No. 2017-04, Simplifying the Test for Goodwill Impairment, effective January 1, 2018 in conjunction with our goodwill impairment assessment. The quantitative goodwill impairment test involves a comparison of the fair value of a reporting unit with its carrying amount. The Company estimates the fair value of reporting unit using a combination of the income approach, using discounted cash flow analysis (“DCF model”), and also the market approach, using market multiples for reporting units whereby the fair value is not substantially in excess of carrying value. Under the income approach, fair value is determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. The Company uses its internal forecasts to estimate future cash flows and include an estimate of long-term future growth rates based on its most recent views of the long-term outlook for each business. Actual results may differ from those assumed in our forecasts. Discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting units. The discount rate is mainly based on judgment of the specific risk inherent within each reporting unit. The variables within the discount rate, many of which are outside of the Company’s control, provide the Company’s best estimate of all assumptions applied within the DCF model. The Company uses the “Market approach” to corroborate the results of the income approach. Under the market approach, the Company estimates fair value based on market multiples of revenues and earnings derived from comparable publicly-traded companies with characteristics similar to the reporting unit and comparable market transactions. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results, market conditions and other factors. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. Determining fair value requires the use of estimates and exercise of significant judgment, including assumptions about appropriate discount rates, perpetual growth rates, amount and timing of expected future cash flows, market multiples of revenues and earnings and comparable market transactions. These estimates and judgements may not be within the control of the Company and accordingly it is reasonably possible that the estimates and judgments described above could change in future periods. There can be no assurance that operations will achieve the future cash flows reflected in the projections. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss shall be recognized, in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. 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 for an investee is increased or decreased for cash contribution and distributions to or from, respectively |
Impairment of Long-lived Assets | Long-lived 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. Determining whether an impairment has occurred typically requires various estimates and assumptions, including determining which undiscounted cash flows are directly related to the potentially impaired asset, the useful life over which cash flows will occur, their amount, and the asset’s residual value, if any. In turn, measurement of an impairment loss requires a determination of fair value, which is based on the best information available. The Company derives the required undiscounted cash flow estimates from its historical experience and its internal business plans. To determine fair value, the Company follows the discounted cash flow approach and uses its internal cash flow estimates discounted at an appropriate discount rate and independent appraisals, as appropriate. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value |
Derivative Financial Instruments | In the normal course of business, the Company uses derivative instruments for the purpose of mitigating the exposure from risk of foreign currency fluctuation 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 adhering to 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) ("AOCI"), net of tax, until the hedged transactions occurs. 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 line as either part of “Cost of revenues”, “General and administrative expenses”, “Selling and marketing expenses”, “Depreciation and amortization expense”, as applicable. 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. The Company 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, against the risk of foreign currency fluctuations associated with remeasurement of such assets and liabilities to 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). |
Borrowings | The Company accounts for convertible notes in accordance with the guidelines established by the ASC 470-20, Debt with Conversion and Other Options. The Company separates the convertible notes into liability and equity components. The Beneficial Conversion Feature ("BCF") of a convertible note, which is the equity component and recorded as additional paid-in capital, is normally characterized as the convertible portion or feature of certain notes payable that provide a rate of conversion that is below market value or in-the-money when issued. The Company records a BCF related to the issuance of a convertible note when issued. If a convertible note is within the scope of the Cash Conversion Subsections and contains embedded features other than the embedded conversion option, the guidance in ASC 815-15, Derivatives and Hedging - Embedded Derivatives (ASC 815-15), is applied to determine if any of those features must be separately accounted for as a derivative instrument. |
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 includes the service cost component of the net periodic benefit cost in the same line item or items as other compensation costs arising from services rendered by the respective employees during the period. The interest cost, expected return on plan assets and amortization of actuarial gains/loss, are classified in - “Other income, net”. Refer to Note 20 and Note 27 to the consolidated financial statements for details. |
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 2018 Omnibus Incentive Plan (the “2018 Plan”), which was adopted by the Company's stockholders on June 15, 2018, which replaces and supersedes the 2015 Amendment and Restatement of the Company’s 2006 Omnibus Award Plan (the “ Prior Plan”) and is effective upon the date approved by the Company’s stockholders, the Company grants performance-based restricted stock units (“PRSUs”) to executive officers and other specified employees. 50% of the PRSUs cliff vest based on an aggregated revenue target (“PU”) for a three -year period. The remaining 50% vest based on a market condition (“MUs”) that is contingent on meeting or exceeding the Company's 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 is determined based on the market price of one common share of the Company on the day prior to the date of grant, and the associated compensation expense is calculated on the basis that performance targets to receive 100% of the PUs are 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 final 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, 2019 was based on the Company's assessment of performance criteria for these grants that would most likely be met during the respective years of vesting against the targeted performance level. |
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 statements 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. |
Financial Instruments and Concentration of Credit Risk | Financial Instruments. For certain financial instruments, including cash and cash equivalents, short-term investments (except investment in mutual funds, as disclosed in Note 16), restricted cash, accounts receivable, accounts payable, accrued expenses, other current liabilities and outstanding revolver credit, recorded amounts approximate fair value due to the relatively short maturity periods and/or timing of repayments 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, surplus funds are maintained as 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. |
Leases | The Company determines if an arrangement is a lease at inception of the contract. Operating leases are recorded in "operating lease right-of-use ("ROU") assets", "current portion of operating lease liabilities" and "operating lease liabilities, less current portion" in the Company's consolidated balance sheets. Finance leases are recorded in "property and equipment", "current portion of finance lease liabilities" and "finance lease liabilities, less current portion" in the Company's consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. For leases in which the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date for determining the present value of lease payments. Lease term includes the effects of options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating lease arrangements is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for separately. The Company accounts for modification as a separate contract when it grants an additional right of use not included in the original lease and the increase is commensurate with the standalone price for the additional right of use, adjusted for the circumstances of the particular contract. Modifications which are not accounted for as a separate contract are reassessed as of the effective date of the modification based on its modified terms and conditions and the facts and circumstances as of that date. On January 1, 2019, the date of initial application, the Company adopted, Leases (Topic 842), using the modified retrospective method. The modified retrospective method provides a method of recognizing those leases which had not expired as of the date of adoption of January 1, 2019. The prior period consolidated financial statements have not been retrospectively adjusted and continues to be reported under Topic 840. The Company elected the practical expedient permitted under the transition guidance under Topic 842, which amongst other matters, allowed the Company (i) not to apply the recognition requirements to short-term leases (leases with a lease term of 12 months or less), (ii) not to reassess whether any expired or existing contracts are or contain leases, (iii) not to reassess the lease classification for any expired or existing leases, and (iv) not to reassess initial direct costs for any existing leases. The adoption resulted in the recognition of ROU assets of $80,328 (net of deferred rent of $8,626 ) and lease liabilities of $88,954 for operating leases as of January 1, 2019. The Company's accounting for finance leases remained substantially unchanged. The adoption had no impact on opening balance of retained earnings. Refer to Note 21 to the consolidated financial statements for details. |
Government Grants | Government grants related to income are recognized as a reduction of expenses in the consolidated statements 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, adjusted for outstanding shares that are subject to repurchase 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 June 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-13, Financial Instruments - Credit Losses , which requires 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 based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The new guidance replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. These changes will result in earlier recognition of credit losses. The allowance for credit losses is a valuation account that is to be deducted from the amortized cost of the financial asset(s) so as 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. Early adoption as of the fiscal years beginning after December 15, 2018 was permitted. The amendment should be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align credit loss methodology with the new standard. Adoption of the ASU will result in immaterial impact to equity as of January 1, 2020 with a corresponding offset to accounts receivable. The impact of adoption of this guidance did not have a material effect on the Company's accounting policies, processes, and systems. In August 2018, FASB issued ASU No. 2018-13, Fair Value Measurement ("Topic 820"): Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this ASU changes the disclosure requirements on fair value measurements in Topic 820 by prescribing new, elimination and modification of disclosure requirements, based on the concepts in the Concepts Statement, including the consideration of costs and benefits. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. An entity was permitted to early adopt either the entire standard or only the provisions that eliminate or modify requirements. The adoption of this ASU effective January 1, 2020 is not expected to have any material effect on the Company’s consolidated financial statements. In August 2018, FASB issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General ("Subtopic 715-20"): Changes to the Disclosure Requirements for Defined Benefit Plans. The amendments in this ASU remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The amendments in this ASU are effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. The adoption of this ASU is not expected to have any material effect on the Company’s consolidated financial statements. In August 2018, FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40"): This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Accordingly, the ASU requires an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in FASB Accounting Standard Codification Subtopic 350-40 on internal-use software to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The ASU 2018-15 also provides guidance on amortization and impairment of any costs capitalized, along with new presentation and disclosure requirements. The new guidance is effective for fiscal years beginning after December 15, 2019. Early adoption was permitted and both prospective and retrospective transition methods are allowed. The adoption of this ASU did not have any material effect on the Company’s consolidated financial statements. In April 2019, FASB issued ASU No. 2019-04, Codification Improvements to Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Financial Instruments: Targeted Transition Relief (Topic 825). The amendments clarify the scope of the credit losses standard and address issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayments, among other things. With respect to hedge accounting, the amendments address partial-term fair value hedges, fair value hedge basis adjustments, and certain transition requirements, among other things. With respect to recognizing and measuring financial instruments, the amendment in ASU address the scope of the guidance, the requirement for remeasurement under ASC 820 when using the measurement alternative, certain disclosure requirements and which equity securities have to be remeasured at historical exchange rates. This ASU is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. Early adoption is permitted. The adoption of this ASU is not expected to have any material effect on the Company’s consolidated financial statements. In May 2019, FASB issued ASU No. 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief. This ASU provide entities with the option to irrevocably elect the fair value option, on an instrument-by-instrument basis in accordance with Subtopic 825-10, for certain financial instruments that are within the scope of Subtopic 326-20, upon adopting Topic 326. The fair value option election does not apply to held-to-maturity debt securities. The amendments in this Update provide entities with targeted transition relief that is intended to increase comparability of financial statement information for some entities that otherwise would have measured similar financial instruments using different measurement methodologies. This ASU is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. Early adoption is permitted. The adoption of this ASU is not expected to have any material effect on the Company's consolidated financial statements. (x) Recently Adopted Accounting Pronouncements In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842), which requires the identification of arrangements that should be accounted for as leases. Lease arrangements exceeding a twelve months term should be recognized as assets with corresponding liabilities on the balance sheet of the lessee. This ASU requires recognition of an ROU asset and lease obligation for those leases classified as operating leases under Topic 840, while the income statement will reflect lease expense for operating leases. The balance sheet amounts recorded for existing operating leases at the date of adoption of this ASU must be calculated using the applicable incremental borrowing rate. The Company adopted Topic 842 as of January 1, 2019 using the modified retrospective method provided by ASU 2018-11. The adoption had a material impact on the Company's consolidated balance sheets, but did not have a material impact on the Company's consolidated income statements and consolidated statements of cash flows. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases, while the Company's accounting for finance leases remained substantially unchanged. Refer to Note 21 to the consolidated financial statements for details. In July 2018, FASB issued ASU No. 2018-11, Leases (Topic 842), which provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP (Topic 840, Leases). The Company adopted Topic 842 as of January 1, 2019 using this ASU. Refer to Note 21 to the consolidated financial statements for details. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment, Estimated Useful Lives | Useful Lives Assets: Network equipment and computers 3-5 Software 3-5 Leasehold improvements 3-8 Office furniture and equipment 3-8 Motor vehicles 2-5 Buildings 30 The amortization expense on internally developed software recognized in the consolidated statements of income was as follows: Year ended December 31, 2019 2018 2017 Amortization expense $ 2,745 $ 1,417 $ 640 Property and equipment, net consists of the following: As of Estimated useful lives (Years) December 31, 2019 December 31, 2018 Owned assets: Network equipment and computers 3-5 $ 98,309 $ 85,921 Software 3-5 79,746 69,752 Leasehold improvements 3-8 44,982 39,533 Office furniture and equipment 3-8 22,046 20,097 Motor vehicles 2-5 601 635 Buildings 30 1,114 1,140 Land — 729 746 Capital work in progress — 10,309 11,026 257,836 228,850 Less: Accumulated depreciation and amortization (179,331 ) (155,798 ) $ 78,505 $ 73,052 Right-of-use assets under finance leases: Leasehold improvements $ 738 $ 778 Office furniture and equipment 308 53 Motor vehicles 711 628 1,757 1,459 Less: Accumulated depreciation and amortization (1,120 ) (1,001 ) $ 637 $ 458 Property and equipment, net $ 79,142 $ 73,510 Internally developed software costs, included under Software, was as follows: As of December 31, 2019 December 31, 2018 Cost $ 15,784 $ 8,783 Less : Accumulated amortization (4,989 ) (2,393 ) Internally developed software, net $ 10,795 $ 6,390 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, 2019 2018 2017 Depreciation and amortization expense $ 30,423 $ 28,189 $ 24,574 |
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 and Geographical Info_2
Segment and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , 2018 and 2017 , for each of the reportable segments, are as follows: Year ended December 31, 2019 Insurance Healthcare TT&L F&A All Other Analytics Total Revenues, net $ 294,159 $ 90,589 $ 68,010 $ 106,580 $ 74,679 $ 357,329 $ 991,346 Cost of revenues (1) 199,678 73,650 38,736 63,317 48,864 231,245 655,490 Gross profit (1) $ 94,481 $ 16,939 $ 29,274 $ 43,263 $ 25,815 $ 126,084 $ 335,856 Operating expenses 259,403 Foreign exchange gain, interest expense and other income, net 6,647 Income tax expense 15,172 Loss from equity-method investment 269 Net income $ 67,659 Year ended December 31, 2018 Insurance Healthcare TT&L F&A All Other Analytics Total Revenues, net $ 258,144 $ 84,391 $ 70,237 $ 97,941 $ 87,109 $ 285,290 $ 883,112 Cost of revenues (1) 174,921 66,768 41,066 59,155 58,341 184,604 584,855 Gross profit (1) $ 83,223 $ 17,623 $ 29,171 $ 38,786 $ 28,768 $ 100,686 $ 298,257 Operating expenses 248,436 Foreign exchange gain, interest expense and other income, net 10,549 Income tax expense 3,397 Loss from equity-method investment 247 Net income $ 56,726 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 (1) 159,433 49,412 41,337 51,362 56,638 136,960 495,142 Gross profit (1) $ 75,361 $ 27,601 $ 29,614 $ 35,165 $ 26,444 $ 72,983 $ 267,168 Operating expenses 194,443 Foreign exchange gain, interest expense and other income, net 12,309 Income tax expense 36,146 Net income $ 48,888 (1) Exclusive of depreciation and amortization expense. Revenues, net by service type, were as follows: Year ended December 31, 2019 2018 2017 BPM and related services (1) $ 634,017 $ 597,822 $ 552,367 Analytics services 357,329 285,290 209,943 Revenues, net $ 991,346 $ 883,112 $ 762,310 (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. Refer to reportable segment disclosure above. |
Revenues Based on Geographical Information | The Company attributes the revenues to regions based upon the location of its customers. Year ended December 31, 2019 2018 2017 Revenues, net United States $ 817,878 $ 732,589 $ 626,336 Non-United States United Kingdom 113,036 114,515 108,640 Rest of World 60,432 36,008 27,334 Total Non-United States 173,468 150,523 135,974 Revenues, net $ 991,346 $ 883,112 $ 762,310 |
Property and Equipment, Net Based on Geographical Information | Long-lived assets by geographic area, which consist of property and equipment, net and operating lease right-of-use assets, net were as follows: As of December 31, 2019 December 31, 2018 Long-lived assets India $ 78,244 $ 36,152 United States 52,375 28,254 Philippines 26,006 5,985 Rest of World 8,913 3,119 Long-lived assets $ 165,538 $ 73,510 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results | Summarized quarterly results for the years ended December 31, 2019 and 2018 are as follows: Three months ended 2019 (Unaudited) Year ended (Audited) March 31 June 30 September 30 December 31 December 31, 2019 Revenues, net $ 239,573 $ 243,509 $ 251,392 $ 256,872 $ 991,346 Gross profit (1) $ 82,333 $ 81,063 $ 83,850 $ 88,610 $ 335,856 Net income $ 14,695 $ 12,564 $ 19,044 $ 21,356 $ 67,659 Earnings per share: Basic (2) $ 0.43 $ 0.36 $ 0.55 $ 0.62 $ 1.97 Diluted (2) $ 0.42 $ 0.36 $ 0.55 $ 0.62 $ 1.95 Weighted-average number of shares used in computing earnings per share: Basic (2) 34,374,815 34,451,671 34,322,449 34,253,308 34,350,150 Diluted (2) 34,833,435 34,702,547 34,699,497 34,696,896 34,732,683 Stock compensation expense $ 6,956 $ 7,155 $ 7,427 $ 4,532 $ 26,070 Amortization of intangibles $ 5,528 $ 5,554 $ 5,502 $ 4,974 $ 21,558 Three months ended 2018 (Unaudited) Year ended (Audited) March 31 June 30 September 30 December 31 December 31, 2018 Revenues, net $ 206,973 $ 210,112 $ 231,124 $ 234,903 $ 883,112 Gross profit (1) $ 68,872 $ 70,463 $ 78,967 $ 79,955 $ 298,257 Net income $ 23,158 $ 14,462 $ 15,249 $ 3,857 $ 56,726 Earnings per share: Basic (2) $ 0.67 $ 0.42 $ 0.44 $ 0.11 $ 1.65 Diluted (2) $ 0.66 $ 0.41 $ 0.43 $ 0.11 $ 1.62 Weighted-average number of shares used in computing earnings per share: Basic (2) 34,446,265 34,511,777 34,458,520 34,388,025 34,451,008 Diluted (2) 35,302,926 35,142,388 35,207,991 34,921,388 35,030,984 Stock compensation expense $ 5,074 $ 6,893 $ 5,344 $ 6,590 $ 23,901 Amortization of intangibles $ 3,947 $ 3,761 $ 6,718 $ 5,951 $ 20,377 (1) Exclusive of depreciation and amortization expense. (2) 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. |
Revenues, net (Tables)
Revenues, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Receivables and Liabilities | The following table provides information about accounts receivable, contract assets and contract liabilities from contracts with customers: As of December 31, 2019 December 31, 2018 Accounts receivable, net $ 171,864 $ 164,752 Contract assets $ 5,391 $ 5,445 Contract liabilities: Deferred revenue (consideration received in advance) $ 11,259 $ 6,345 Consideration received for process transition activities $ 3,036 $ 1,669 |
Contract Acquisition and Contract Fulfillment Costs | The following table provides details of the Company’s contract acquisition and fulfillment costs: 2019 2018 Contract acquisition cost Contract fulfillment cost Contract acquisition cost Contract fulfillment cost Balance as of January 1 $ 713 $ 4,051 $ 454 $ 2,769 Addition 1,222 4,652 567 2,216 Amortization (628 ) (1,448 ) (308 ) (934 ) Balance as of December 31 $ 1,307 $ 7,255 $ 713 $ 4,051 |
Other Income, net (Tables)
Other Income, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income, net | Other income, net consists of the following: Year ended December 31, 2019 2018 2017 Gain on sale and mark-to-market of mutual funds $ 12,965 $ 9,970 $ 8,766 Interest and dividend income 2,399 1,873 1,625 Others, net 1,143 1,146 968 Other income, net $ 16,507 $ 12,989 $ 11,359 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 Numerators: Net income $ 67,659 $ 56,726 $ 48,888 Denominators: Basic weighted average common shares outstanding 34,350,150 34,451,008 33,897,916 Dilutive effect of share based awards 382,533 579,976 1,212,294 Diluted weighted average common shares outstanding 34,732,683 35,030,984 35,110,210 Earnings per share attributable to ExlService Holdings Inc. stockholders: Basic $ 1.97 $ 1.65 $ 1.44 Diluted $ 1.95 $ 1.62 $ 1.39 Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share 106,375 121,344 151,961 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | For the purpose of statements of cash flows, cash, cash equivalents and restricted cash comprise of the following: As of December 31, 2019 December 31, 2018 December 31, 2017 Cash and cash equivalents $ 119,165 $ 95,881 $ 86,795 Restricted cash (current) 5,453 5,608 3,674 Restricted cash (non-current) 2,426 2,642 3,808 Cash, cash equivalents and restricted cash $ 127,044 $ 104,131 $ 94,277 |
Restrictions on Cash and Cash Equivalents | For the purpose of statements of cash flows, cash, cash equivalents and restricted cash comprise of the following: As of December 31, 2019 December 31, 2018 December 31, 2017 Cash and cash equivalents $ 119,165 $ 95,881 $ 86,795 Restricted cash (current) 5,453 5,608 3,674 Restricted cash (non-current) 2,426 2,642 3,808 Cash, cash equivalents and restricted cash $ 127,044 $ 104,131 $ 94,277 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Useful Lives Assets: Network equipment and computers 3-5 Software 3-5 Leasehold improvements 3-8 Office furniture and equipment 3-8 Motor vehicles 2-5 Buildings 30 The amortization expense on internally developed software recognized in the consolidated statements of income was as follows: Year ended December 31, 2019 2018 2017 Amortization expense $ 2,745 $ 1,417 $ 640 Property and equipment, net consists of the following: As of Estimated useful lives (Years) December 31, 2019 December 31, 2018 Owned assets: Network equipment and computers 3-5 $ 98,309 $ 85,921 Software 3-5 79,746 69,752 Leasehold improvements 3-8 44,982 39,533 Office furniture and equipment 3-8 22,046 20,097 Motor vehicles 2-5 601 635 Buildings 30 1,114 1,140 Land — 729 746 Capital work in progress — 10,309 11,026 257,836 228,850 Less: Accumulated depreciation and amortization (179,331 ) (155,798 ) $ 78,505 $ 73,052 Right-of-use assets under finance leases: Leasehold improvements $ 738 $ 778 Office furniture and equipment 308 53 Motor vehicles 711 628 1,757 1,459 Less: Accumulated depreciation and amortization (1,120 ) (1,001 ) $ 637 $ 458 Property and equipment, net $ 79,142 $ 73,510 Internally developed software costs, included under Software, was as follows: As of December 31, 2019 December 31, 2018 Cost $ 15,784 $ 8,783 Less : Accumulated amortization (4,989 ) (2,393 ) Internally developed software, net $ 10,795 $ 6,390 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, 2019 2018 2017 Depreciation and amortization expense $ 30,423 $ 28,189 $ 24,574 |
Business Combinations, Goodwi_2
Business Combinations, Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations, Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of allocation of purchase price to assets acquired and liabilities assumed | The Company’s purchase price allocation to net tangible and intangible assets of SCIO is as follows: Assets: Cash and cash equivalents $ 9,842 Restricted cash 2,790 Accounts receivable 19,924 Other current assets 2,076 Property and equipment 1,824 Other assets 1,751 Intangible assets Customer relationships 47,800 Developed technology 21,400 Trade names and trademarks 3,700 111,107 Liabilities: Current liabilities (12,482 ) Deferred tax liabilities, net (17,132 ) Other non-current liabilities (200 ) (29,814 ) Net assets acquired $ 81,293 Goodwill 163,751 Total purchase consideration $ 245,044 |
Schedule of Goodwill | The following table sets forth details of changes in goodwill by reportable segment of the Company: Insurance Healthcare TT&L F&A All Other Analytics Total Balance at January 1, 2018 $ 38,333 $ 35,233 $ 13,679 $ 48,372 $ 5,326 $ 63,538 $ 204,481 Acquisitions — — — — — 163,751 163,751 Measurement period adjustments — (1,728 ) — — — — (1,728 ) Currency translation adjustments (130 ) — (982 ) (1,179 ) — — (2,291 ) Impairment charges — (14,229 ) — — — — (14,229 ) Balance at December 31, 2018 $ 38,203 $ 19,276 $ 12,697 $ 47,193 $ 5,326 $ 227,289 $ 349,984 Currency translation adjustments 73 — (240 ) (288 ) — — (455 ) Balance at December 31, 2019 $ 38,276 $ 19,276 $ 12,457 $ 46,905 $ 5,326 $ 227,289 $ 349,529 |
Schedule of indefinite lived Intangible Assets | Information regarding the Company’s intangible assets is set forth below: As of December 31, 2019 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Carrying Amount Finite-lived intangible assets: Customer relationships $ 97,602 $ (43,330 ) $ — $ 54,272 Developed technology 26,976 (10,687 ) — 16,289 Trade names and trademarks 5,100 (2,579 ) — 2,521 $ 129,678 $ (56,596 ) $ — $ 73,082 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ — $ 900 Total intangible assets $ 130,578 $ (56,596 ) $ — $ 73,982 As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Carrying Amount Finite-lived intangible assets: Customer relationships $ 129,790 $ (56,367 ) $ (5,549 ) $ 67,874 Leasehold benefits 2,644 (2,567 ) — 77 Developed technology 37,154 (14,653 ) — 22,501 Non-compete agreements 2,045 (1,937 ) — 108 Trade names and trademarks 9,639 (5,326 ) (278 ) 4,035 $ 181,272 $ (80,850 ) $ (5,827 ) $ 94,595 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ — $ 900 Total intangible assets $ 182,172 $ (80,850 ) $ (5,827 ) $ 95,495 |
Schedule of amortization of Intangible Assets | The amortization expense for the year is as follows: Year ended December 31, 2019 2018 2017 Amortization expense $ 21,558 $ 20,377 $ 13,975 |
Schedule of finite lived Intangible Assets useful lives | The remaining weighted average life of intangible assets is as follows: (in years) Customer relationships 7.66 Developed technology 3.64 Trade names and trademarks (Finite lived) 2.38 |
Schedule of estimated future amortization of Intangible Assets | Estimated future amortization expense related to intangible assets as of December 31, 2019 is as follows: 2020 $ 14,458 2021 12,753 2022 11,335 2023 9,046 2024 6,704 2025 and thereafter 18,786 Total $ 73,082 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other current assets consist of the following: As of December 31, 2019 December 31, 2018 Derivative instruments $ 4,076 $ 4,059 Advances to suppliers 1,581 2,910 Receivables from statutory authorities 12,608 14,145 Contract assets 1,414 1,201 Deferred contract fulfillment costs 1,673 1,236 Others 3,242 4,689 Other current assets $ 24,594 $ 28,240 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following: As of December 31, 2019 December 31, 2018 Lease deposits $ 9,983 $ 8,891 Derivative instruments 3,433 1,971 Deposits with statutory authorities 6,252 6,273 Term deposits 1,983 315 Contract assets 3,977 4,244 Deferred contract fulfillment costs 5,582 2,815 Others 4,806 6,506 Other assets $ 36,016 $ 31,015 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: As of December 31, 2019 December 31, 2018 Accrued expenses $ 53,139 $ 44,711 Derivative instruments 1,783 3,204 Client liabilities 6,378 6,933 Other current liabilities 9,723 9,321 Accrued expenses and other current liabilities $ 71,023 $ 64,169 |
Other Non-Current liabilities (
Other Non-Current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Liabilities, Noncurrent [Abstract] | |
Summary of Non-Current Liabilities | Other non-current liabilities consist of the following: As of December 31, 2019 December 31, 2018 Derivative instruments $ 1,250 $ 3,075 Unrecognized tax benefits 1,047 804 Deferred rent — 7,834 Retirement benefits 6,517 3,616 Deferred transition revenue 1,911 945 Others 987 247 Other non-current liabilities $ 11,712 $ 16,521 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The balances as of December 31, 2019 and 2018 are as follows: As of December 31, 2019 December 31, 2018 Cumulative foreign currency translation loss $ (87,591 ) $ (84,105 ) Unrealized gain/(loss) on cash flow hedges 4,604 (218 ) Retirement benefits (1,780 ) 918 Income tax expense relating to above (1) (125 ) (62 ) Accumulated other comprehensive loss $ (84,892 ) $ (83,467 ) (1) These are income tax expense recognized on cash flow hedges and retirement benefits. Refer to Note 22 to the consolidated financial statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 . As of December 31, 2019 Level 1 Level 2 Level 3 Total Assets Mutual funds* $ 166,330 $ — $ — $ 166,330 Derivative financial instruments — 7,509 — 7,509 Total $ 166,330 $ 7,509 $ — $ 173,839 Liabilities Derivative financial instruments $ — $ 3,033 $ — $ 3,033 Total $ — $ 3,033 $ — $ 3,033 As of December 31, 2018 Level 1 Level 2 Level 3 Total Assets Mutual funds* $ 142,408 $ — $ — $ 142,408 Derivative financial instruments — 6,030 — 6,030 Total $ 142,408 $ 6,030 $ — $ 148,438 Liabilities Derivative financial instruments $ — $ 6,279 $ — $ 6,279 Total $ — $ 6,279 $ — $ 6,279 * Represents those short-term investments which are carried at the fair value option under ASC 825 "Financial Instruments" as of December 31, 2019 and 2018 . |
Derivatives and Hedge Account_2
Derivatives and Hedge Accounting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 December 31, 2018 Other current assets $ 3,945 $ 4,022 Other assets $ 3,433 $ 1,971 Accrued expenses and other current liabilities $ 1,524 $ 3,137 Other non-current liabilities $ 1,250 $ 3,075 Derivatives not designated as hedging instruments : As of Foreign currency exchange contracts December 31, 2019 December 31, 2018 Other current assets $ 131 $ 37 Accrued expenses and other current liabilities $ 259 $ 67 |
Summary of Effect of Foreign Currency Exchange Contracts on Consolidated Statements of Income | The following tables set forth the effect of foreign currency exchange contracts on the consolidated statements of income and accumulated other comprehensive loss for the years ended December 31, 2019 , 2018 and 2017 : Year ended December 31, Forward Exchange Contracts: 2019 2018 2017 Unrealized gain/(loss) recognized in AOCI Derivatives in cash flow hedging relationships $ 8,773 $ (13,919 ) $ 19,802 Gain/(loss) recognized in consolidated statements of income Derivatives not designated as hedging instruments $ 3,306 $ (3,224 ) $ 5,056 Location and amount of gain/(loss) recognized in consolidated statements of income for cash flow hedging relationships and derivatives not designated as hedging instruments: Year ended December 31, 2019 2018 2017 As per consolidated statements of income Gain on foreign currency exchange contracts As per consolidated statements of income Gain/(loss) on foreign currency exchange contracts As per consolidated statements of income Gain on foreign currency exchange contracts Cash flow hedging relationships Location in consolidated statements of income where gain was reclassed from AOCI Cost of revenues $ 655,490 $ 3,269 $ 584,855 $ 2,481 $ 495,142 $ 5,465 General and administrative expenses $ 126,909 $ 424 $ 116,202 $ 443 $ 102,515 $ 960 Selling and marketing expenses $ 71,842 $ 46 $ 63,612 $ 44 $ 53,379 $ 103 Depreciation and amortization expense $ 51,981 $ 212 $ 48,566 $ 181 $ 38,549 $ 371 $ 3,951 $ 3,149 $ 6,899 Derivatives not designated as hedging instruments Location in consolidated statements of income where gain/(loss) was recognized Foreign exchange gain/(loss), net $ 3,752 $ 3,306 $ 4,787 $ (3,224 ) $ 2,839 $ 5,056 $ 3,752 $ 3,306 $ 4,787 $ (3,224 ) $ 2,839 $ 5,056 Effect of net investment hedges on accumulated other comprehensive loss: Year ended December 31, Amount of (loss) recognized in AOCI Net investment hedging relationships 2019 2018 2017 Foreign exchange contracts $ (580 ) $ — $ — $ (580 ) $ — $ — |
Borrowings Borrowings (Tables)
Borrowings Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of principal maturities of borrowings | Future principal payments/maturities for all of the Company's borrowings as of December 31, 2019 were as follows: Notes Revolver Credit Structured Payables Total 2020 $ — $ 40,000 $ 867 $ 40,867 2021 — 40,000 — 40,000 2022 — 19,000 — 19,000 2023 — — — — 2024 150,000 — — 150,000 Total $ 150,000 $ 99,000 $ 867 $ 249,867 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [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: 2019 2018 Change in projected benefit obligation: Projected benefit obligation as of January 1 $ 11,044 $ 10,305 Business acquisition — 326 Service cost 1,953 1,735 Interest cost 875 714 Benefits paid (960 ) (1,066 ) Actuarial loss/(gain) 2,577 (134 ) Effect of exchange rate changes (178 ) (836 ) Projected benefit obligation as of December 31 $ 15,311 $ 11,044 Unfunded amount-non-current $ 6,517 $ 3,616 Unfunded amount-current 10 8 Total accrued liability $ 6,527 $ 3,624 Accumulated benefit obligation $ 10,743 $ 7,239 |
Components of Net Periodic Benefit Cost | Components of net periodic benefit costs: Year ended December 31, 2019 2018 2017 Service cost $ 1,953 $ 1,735 $ 1,933 Interest cost 875 714 645 Expected return on plan assets (568 ) (514 ) (401 ) Amortization of actuarial (gain)/loss (159 ) (153 ) 256 Net periodic benefit cost $ 2,101 $ 1,782 $ 2,433 |
Summary of Components Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive (loss)/gain, excluding tax effects, as of December 31, 2019 , 2018 and 2017 are as follows: December 31, 2019 2018 2017 Net actuarial (loss)/gain $ (1,762 ) $ 940 $ 697 Net prior service cost (18 ) (22 ) (8 ) Accumulated other comprehensive (loss)/gain, excluding tax effects $ (1,780 ) $ 918 $ 689 |
Summary of Weighted Average Actuarial Assumptions | The weighted average actuarial assumptions used to determine benefit obligations and net gratuity cost are: December 31, 2019 2018 2017 Discount rate 6.5 % 7.5 % 7.0 % Rate of increase in compensation levels 6.0 % 8.2 % 9.1 % Expected long term rate of return on plan assets per annum 7.5 % 7.3 % 8.3 % |
Summary of Expected Benefit Payments | Expected benefit payments during the year ending December 31, 2020 $ 2,408 2021 $ 2,234 2022 $ 1,969 2023 $ 1,812 2024 $ 1,563 2025 to 2029 $ 5,712 |
Change in Plan Assets | Change in Plan Assets Plan assets at January 1, 2018 $ 6,915 Business acquisition 231 Actual return 779 Employer contribution 1,175 Benefits paid* (1,059 ) Effect of exchange rate changes (621 ) Plan assets at December 31, 2018 $ 7,420 Actual return 606 Employer contribution 1,905 Benefits paid* (957 ) Effect of exchange rate changes (190 ) Plan assets at December 31, 2019 $ 8,784 * Benefits payments were substantially made through the plan assets during the year ended December 31, 2019 and 2018. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of supplemental balance sheet information | Supplemental balance sheet information As of December 31, 2019 Operating Lease Operating lease right-of-use assets $ 86,396 Operating lease liabilities - Current $ 24,148 Operating lease liabilities - Non-current 74,709 Total operating lease liabilities $ 98,857 Finance Lease Property and equipment, gross $ 1,757 Accumulated depreciation (1,120 ) Property and equipment, net $ 637 Finance lease liabilities - Current $ 253 Finance lease liabilities - Non-current 430 Total finance lease liabilities $ 683 |
Schedule of components of lease cost | The components of lease cost, which are included in the Company's consolidated statements of income, are as follows: Lease cost Year ended December 31, 2019 Finance lease: Amortization of right-of-use assets $ 255 Interest on lease liabilities 93 Operating lease (a) 27,335 Sublease income (146 ) Total lease cost $ 27,537 |
Schedule of supplemental cash flow informaton related to leases | Supplemental cash flow and other information related to leases are as follows: Year ended December 31, 2019 Cash payments for amounts included in the measurement of lease liabilities : Operating cash outflows for operating leases $ 24,813 Operating cash outflows for finance leases $ 93 Financing cash outflows for finance leases $ 336 Right-of-use assets obtained in exchange for new operating lease liabilities $ 36,473 Right-of-use assets obtained in exchange for new finance lease liabilities $ 506 Weighted-average remaining lease term Finance lease 2.3 years Operating lease 6.0 years Weighted-average discount rate Finance lease 9.9 % Operating lease 7.6 % |
Schedule of maturities of lease liabilities | Maturities of lease liabilities as of December 31, 2019 are as follows: Operating Leases Finance Leases 2020 $ 26,932 $ 325 2021 23,783 251 2022 21,526 157 2023 19,381 86 2024 14,865 22 2025 and thereafter 23,983 — Total lease payments $ 130,470 $ 841 Less: Imputed interest 31,613 158 Present value of lease liabilities $ 98,857 $ 683 |
Schedule of maturities of lease liabilities | Maturities of lease liabilities as of December 31, 2019 are as follows: Operating Leases Finance Leases 2020 $ 26,932 $ 325 2021 23,783 251 2022 21,526 157 2023 19,381 86 2024 14,865 22 2025 and thereafter 23,983 — Total lease payments $ 130,470 $ 841 Less: Imputed interest 31,613 158 Present value of lease liabilities $ 98,857 $ 683 |
Schedule of future minimum lease payments for capital leases | Operating Leases Finance Leases 2020 $ 26,932 $ 325 2021 23,783 251 2022 21,526 157 2023 19,381 86 2024 14,865 22 2025 and thereafter 23,983 — Total lease payments $ 130,470 $ 841 Less: Imputed interest 31,613 158 Present value of lease liabilities $ 98,857 $ 683 Maturities of minimum lease payments as of December 31, 2018 are as follows: |
Schedule of future minimum rental payments for operating leases | Operating Leases Finance Leases 2020 $ 26,932 $ 325 2021 23,783 251 2022 21,526 157 2023 19,381 86 2024 14,865 22 2025 and thereafter 23,983 — Total lease payments $ 130,470 $ 841 Less: Imputed interest 31,613 158 Present value of lease liabilities $ 98,857 $ 683 Maturities of minimum lease payments as of December 31, 2018 are as follows: |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 Domestic $ (16,685 ) $ (24,442 ) $ 4,626 Foreign 99,785 84,812 80,408 $ 83,100 $ 60,370 $ 85,034 |
Summary of Income Tax Expense | The income tax expense consists of the following: Year ended December 31, 2019 2018 2017 Current provision/(benefit): Domestic $ 10,823 $ (13,249 ) $ 17,407 Foreign 16,694 17,271 18,008 $ 27,517 $ 4,022 $ 35,415 Deferred provision/(benefit): Domestic $ (13,912 ) $ (1,999 ) $ 2,618 Foreign 1,567 1,374 (1,887 ) $ (12,345 ) $ (625 ) $ 731 Income tax expense $ 15,172 $ 3,397 $ 36,146 |
Schedule of Income Tax (Benefit) Recognized in Other Comprehensive Income | Income taxes recognized in other comprehensive income are as follows: Year ended December 31, 2019 2018 2017 Deferred taxes (expense)/benefit : Unrealized gain/(loss) on cash flow hedges $ (391 ) $ 4,803 $ (3,711 ) Retirement benefits 328 (21 ) (268 ) Total Income tax (expense)/benefit recognized in other comprehensive income $ (63 ) $ 4,782 $ (3,979 ) |
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, 2019 2018 2017 Expected tax expense $ 17,451 $ 12,678 $ 29,762 Change in valuation allowance — — (21 ) Impact of tax holiday (5,920 ) (5,448 ) (4,396 ) Foreign tax rate differential 1,660 5,014 (2,616 ) Deferred tax provision/(benefit) 3,026 (3,915 ) (1,887 ) Unrecognized tax benefits and interest 174 (88 ) (3,905 ) State taxes, net of Federal taxes 2,137 2,201 339 Non-deductible expenses 1,329 3,066 825 US Tax Reform Act impact — 176 29,185 Excess tax benefit on stock-based compensation (2,306 ) (7,227 ) (9,797 ) Research & Development credit (1,650 ) (1,500 ) (844 ) Prior period items (143 ) (1,466 ) — Others (586 ) (94 ) (499 ) Tax expense $ 15,172 $ 3,397 $ 36,146 |
Summary of Components of Deferred Tax Balances | The components of the deferred tax balances as of December 31, 2019 and 2018 are as follows: As of December 31, 2019 December 31, 2018 Deferred tax assets: Depreciation and amortization expense $ 12,319 $ 3,731 Stock-based compensation 9,313 8,614 Accrued employee costs and other expenses 9,805 3,596 Net operating loss carry forward 2,896 1,113 Unrealized exchange loss 1,136 6,671 Deferred rent 4,503 2,255 Others 745 1,380 $ 40,717 $ 27,360 Valuation allowance (202 ) (99 ) Deferred tax assets $ 40,515 $ 27,261 Deferred tax liabilities: Unrealized exchange gain $ 505 $ 115 Intangible assets 20,696 19,289 Unamortized discount on convertible senior notes 3,395 4,105 Others 5,030 5,595 Deferred tax liabilities $ 29,626 $ 29,104 Net deferred tax assets/(liabilities) $ 10,889 $ (1,843 ) |
Summary of Activity Related to Gross Unrecognized Tax Benefits | The following table summarizes the activity related to the unrecognized tax benefits for the years ended December 31, 2019 , 2018 and 2017 . 2019 2018 2017 Balance as of January 1 $ 804 $ 824 $ 3,087 Increases related to prior year tax positions 69 — — Decreases related to prior year tax positions (156 ) (320 ) (2,520 ) Increases related to current year tax positions 330 300 169 Effect of exchange rate changes — — 88 Balance as of December 31 $ 1,047 $ 804 $ 824 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
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, 2019 2018 2017 Cost of revenues $ 5,895 $ 4,924 $ 4,600 General and administrative expenses 10,012 10,371 10,363 Selling and marketing expenses 10,163 8,606 8,078 Total $ 26,070 $ 23,901 $ 23,041 |
Stock Based Compensation Stock Option Activity | Stock option activity under the Company’s stock-based compensation plans is shown below: Number of Options Weighted- Average Exercise Price Aggregate Intrinsic Value Weighted- Average Remaining Contractual Life (Years) Outstanding at December 31, 2018 162,475 $ 20.21 $ 5,267 2.24 Granted — — — — Exercised (64,314 ) 15.33 3,187 — Forfeited — — — — Outstanding at December 31, 2019 98,161 $ 23.39 $ 4,522 1.86 Vested and exercisable at December 31, 2019 98,161 $ 23.39 $ 4,522 1.86 |
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, 2019 : Options Outstanding, Vested and Exercisable Range of Exercise Prices Shares Weighted- Average Exercise Price $15.00 to $21.00 14,893 $ 18.89 $21.01 to $28.00 83,268 $ 24.20 Total 98,161 $ 23.39 |
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, 2018 100,353 $ 54.07 100,336 $ 62.43 Granted 54,062 64.33 54,053 92.13 Adjustment upon final determination of level of performance goal achievement* 11,285 47.73 1,759 54.10 Vested (54,456 ) 47.73 (44,922 ) 54.10 Forfeited (23,559 ) 57.69 (23,556 ) 72.65 Outstanding at December 31, 2019 87,685 $ 62.54 87,670 $ 82.10 * Represents adjustment of shares vested in respect of PUs and MUs granted in February 2017 upon achievement of the performance targets for such awards for which the underlying common stock was issued subsequent to December 31, 2019 . Restricted stock and restricted stock unit activity under the Company’s stock-based compensation plans is shown below: Restricted Stock Restricted Stock Units Number Weighted- Average Fair Value Number Weighted- Average Fair Value Outstanding at December 31, 2018 ** 103,623 $ 42.68 953,578 $ 51.81 Granted — — 512,598 64.29 Vested * (76,239 ) 40.51 (400,497 ) 47.43 Forfeited — — (151,386 ) 58.52 Outstanding at December 31, 2019 ** 27,384 $ 48.72 914,293 $ 59.62 * Includes 10,318 and 9,641 restricted stock units vested during the years ended December 31, 2019 and 2018 , respectively, for which the underlying common stock is yet to be issued. ** As of December 31, 2019 and 2018 restricted stock units vested for which the underlying common stock is yet to be issued are 166,071 and 155,753 , respectively. |
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, 2019 2018 2017 Dividend yield — — — Expected life (years) 2.86 2.86 2.86 Risk free interest rate 2.46 % 2.38 % 1.40 % Volatility 20.52 % 21.79 % 23.78 % |
Impairment and Restructuring _2
Impairment and Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Expected Exit Costs | The following table summarizes the activity related to the restructuring costs incurred and paid for the wind down during the year ended December 31, 2019 : Contract Termination Costs Employee-Related Costs Other Associated Costs Total Balance as of January 1, 2019 $ — $ — $ — $ — Costs incurred during the year 2,597 1,375 1,072 5,044 Payments during the year (1,000 ) (269 ) (701 ) (1,970 ) Balance as of December 31, 2019 $ 1,597 $ 1,106 $ 371 $ 3,074 |
Impact of adoption of account_2
Impact of adoption of accounting guidance on prior year’s presentation and disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Summary of affects of new accounting pronouncements | The effect of the adoption of ASU No. 2016-18 (Topic 230) on 2017 financial information is summarized as follows: Year ended December 31, 2017 Previously reported As revised Effect of change increase/(decrease) Consolidated statements of cash flows Net cash provided by operating activities $ 113,140 $ 113,159 $ 19 Effect of exchange rate changes on cash, cash equivalents and restricted cash $ 3,711 $ 3,935 $ 224 Net increase/(decrease) in cash, cash equivalents and restricted cash $ (126,360 ) $ (126,117 ) $ 243 Cash, cash equivalents and restricted cash - beginning of year $ 213,155 $ 220,394 $ 7,239 Cash, cash equivalents and restricted cash - end of year $ 86,795 $ 94,277 $ 7,482 The effect of the adoption of ASU No. 2017-07 (Topic 715) on 2017 financial information is summarized as follows: Year ended December 31, 2017 Previously reported As revised Effect of change increase/(decrease) Location in consolidated statements of income Cost of revenues $ 495,586 $ 495,142 $ (444 ) General and administrative expenses $ 102,567 $ 102,515 $ (52 ) Selling and marketing expenses $ 53,383 $ 53,379 $ (4 ) Other income, net $ 11,859 $ 11,359 $ (500 ) Year ended December 31, 2017 Cost of revenues previously reported Cost of revenues as revised Effect of change increase/(decrease) Segment information (refer Note 3) Insurance $ 159,529 $ 159,433 $ (96 ) Healthcare $ 49,483 $ 49,412 $ (71 ) TT&L $ 41,409 $ 41,337 $ (72 ) F&A $ 51,445 $ 51,362 $ (83 ) All Other $ 56,697 $ 56,638 $ (59 ) Analytics $ 137,023 $ 136,960 $ (63 ) Operating Expenses $ 194,499 $ 194,443 $ (56 ) Foreign exchange gain, interest expense and other income, net $ 12,809 $ 12,309 $ (500 ) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Revenues and Reimbursements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2018 | Jan. 01, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Impact on adoption of accounting standard update | $ 454 | $ 1,453 | |
Retained Earnings | |||
Disaggregation of Revenue [Line Items] | |||
Impact on adoption of accounting standard update | $ 454 | $ (4,546) | |
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Payment terms | 30 days | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Payment terms | 60 days |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 1,163 | $ 956 |
Unbilled accounts receivable | $ 73,920 | $ 63,952 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Property and Equipment, Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2019 | |
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 Accoun_7
Summary of Significant Accounting Policies - Summary of Lived Intangible Assets Amortized over their Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
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 Accoun_8
Summary of Significant Accounting Policies - Share-Based Compensation (Details) | Jun. 19, 2015 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
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% |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Lease Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Operating lease right-of-use assets | $ 86,396 | |
Present value of lease liabilities | $ 98,857 | |
Accounting Standards Update 2016-02 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Operating lease right-of-use assets | $ 80,328 | |
Deferred rent | 8,626 | |
Present value of lease liabilities | $ 88,954 |
Segment and Geographical Info_3
Segment and Geographical Information - Narrative (Detail) | 12 Months Ended |
Dec. 31, 2019operating_segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 8 |
Number of operating segments, operations management | 5 |
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 operating segments, industry focused | 5 |
Segment and Geographical Info_4
Segment and Geographical Information - Revenues and Cost of Revenues for Company's Reportable Segments (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)operating_segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||||||
Revenues, net | $ 256,872 | $ 251,392 | $ 243,509 | $ 239,573 | $ 234,903 | $ 231,124 | $ 210,112 | $ 206,973 | $ 991,346 | $ 883,112 | $ 762,310 | ||||
Cost of revenues | [1] | 655,490 | 584,855 | 495,142 | |||||||||||
Gross profit | 88,610 | 83,850 | 81,063 | 82,333 | 79,955 | 78,967 | 70,463 | 68,872 | 335,856 | [1] | 298,257 | [1] | 267,168 | [1] | |
Operating expenses | 259,403 | 248,436 | 194,443 | ||||||||||||
Foreign exchange gain, interest expense and other income, net | 6,647 | 10,549 | 12,309 | ||||||||||||
Income tax expense | 15,172 | 3,397 | 36,146 | ||||||||||||
Loss from equity-method investment | 269 | 247 | 0 | ||||||||||||
Net income attributable to ExlService Holdings, Inc. stockholders | $ 21,356 | $ 19,044 | $ 12,564 | $ 14,695 | $ 3,857 | $ 15,249 | $ 14,462 | $ 23,158 | $ 67,659 | 56,726 | 48,888 | ||||
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 | $ 634,017 | 597,822 | 552,367 | ||||||||||||
Analytics services | |||||||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||||||
Revenues, net | 357,329 | 285,290 | 209,943 | ||||||||||||
Insurance | |||||||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||||||
Revenues, net | 294,159 | 258,144 | 234,794 | ||||||||||||
Cost of revenues | 199,678 | 174,921 | 159,433 | ||||||||||||
Gross profit | 94,481 | 83,223 | 75,361 | ||||||||||||
Healthcare | |||||||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||||||
Revenues, net | 90,589 | 84,391 | 77,013 | ||||||||||||
Cost of revenues | 73,650 | 66,768 | 49,412 | ||||||||||||
Gross profit | 16,939 | 17,623 | 27,601 | ||||||||||||
TT&L | |||||||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||||||
Revenues, net | 68,010 | 70,237 | 70,951 | ||||||||||||
Cost of revenues | 38,736 | 41,066 | 41,337 | ||||||||||||
Gross profit | 29,274 | 29,171 | 29,614 | ||||||||||||
F&A | |||||||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||||||
Revenues, net | 106,580 | 97,941 | 86,527 | ||||||||||||
Cost of revenues | 63,317 | 59,155 | 51,362 | ||||||||||||
Gross profit | 43,263 | 38,786 | 35,165 | ||||||||||||
All Other | |||||||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||||||
Revenues, net | 74,679 | 87,109 | 83,082 | ||||||||||||
Cost of revenues | 48,864 | 58,341 | 56,638 | ||||||||||||
Gross profit | 25,815 | 28,768 | 26,444 | ||||||||||||
Analytics | |||||||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||||||
Revenues, net | 357,329 | 285,290 | 209,943 | ||||||||||||
Cost of revenues | 231,245 | 184,604 | 136,960 | ||||||||||||
Gross profit | $ 126,084 | $ 100,686 | $ 72,983 | ||||||||||||
[1] | Exclusive of depreciation and amortization expense. |
Segment and Geographical Info_5
Segment and Geographical Information - Revenues and Property and Equipment, Net Based on Geographical Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues, net | |||||||||||
Revenues, net | $ 256,872 | $ 251,392 | $ 243,509 | $ 239,573 | $ 234,903 | $ 231,124 | $ 210,112 | $ 206,973 | $ 991,346 | $ 883,112 | $ 762,310 |
Long-lived assets | |||||||||||
Long-lived assets | 165,538 | 165,538 | |||||||||
Long-lived assets | 79,142 | 73,510 | 79,142 | 73,510 | |||||||
India | |||||||||||
Long-lived assets | |||||||||||
Long-lived assets | 78,244 | 78,244 | |||||||||
Long-lived assets | 36,152 | 36,152 | |||||||||
United States | |||||||||||
Revenues, net | |||||||||||
Revenues, net | 817,878 | 732,589 | 626,336 | ||||||||
Long-lived assets | |||||||||||
Long-lived assets | 52,375 | 52,375 | |||||||||
Long-lived assets | 28,254 | 28,254 | |||||||||
Philippines | |||||||||||
Long-lived assets | |||||||||||
Long-lived assets | 26,006 | 26,006 | |||||||||
Long-lived assets | 5,985 | 5,985 | |||||||||
United Kingdom | |||||||||||
Revenues, net | |||||||||||
Revenues, net | 113,036 | 114,515 | 108,640 | ||||||||
Rest of World | |||||||||||
Revenues, net | |||||||||||
Revenues, net | 60,432 | 36,008 | 27,334 | ||||||||
Long-lived assets | |||||||||||
Long-lived assets | $ 8,913 | 8,913 | |||||||||
Long-lived assets | $ 3,119 | 3,119 | |||||||||
Total Non-United States | |||||||||||
Revenues, net | |||||||||||
Revenues, net | $ 173,468 | $ 150,523 | $ 135,974 |
Quarterly Financial Data - Summ
Quarterly Financial Data - Summary of Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Revenues, net | $ 256,872 | $ 251,392 | $ 243,509 | $ 239,573 | $ 234,903 | $ 231,124 | $ 210,112 | $ 206,973 | $ 991,346 | $ 883,112 | $ 762,310 | |||
Gross profit | 88,610 | 83,850 | 81,063 | 82,333 | 79,955 | 78,967 | 70,463 | 68,872 | 335,856 | [1] | 298,257 | [1] | 267,168 | [1] |
Net income | $ 21,356 | $ 19,044 | $ 12,564 | $ 14,695 | $ 3,857 | $ 15,249 | $ 14,462 | $ 23,158 | $ 67,659 | $ 56,726 | $ 48,888 | |||
Earnings per share: | ||||||||||||||
Basic (in dollars per share) | $ 0.62 | $ 0.55 | $ 0.36 | $ 0.43 | $ 0.11 | $ 0.44 | $ 0.42 | $ 0.67 | $ 1.97 | $ 1.65 | $ 1.44 | |||
Diluted (in dollars per share) | $ 0.62 | $ 0.55 | $ 0.36 | $ 0.42 | $ 0.11 | $ 0.43 | $ 0.41 | $ 0.66 | $ 1.95 | $ 1.62 | $ 1.39 | |||
Weighted-average number of shares used in computing earnings per share: | ||||||||||||||
Basic (in shares) | 34,253,308 | 34,322,449 | 34,451,671 | 34,374,815 | 34,388,025 | 34,458,520 | 34,511,777 | 34,446,265 | 34,350,150 | 34,451,008 | 33,897,916 | |||
Diluted (in shares) | 34,696,896 | 34,699,497 | 34,702,547 | 34,833,435 | 34,921,388 | 35,207,991 | 35,142,388 | 35,302,926 | 34,732,683 | 35,030,984 | 35,110,210 | |||
Stock compensation expense | $ 4,532 | $ 7,427 | $ 7,155 | $ 6,956 | $ 6,590 | $ 5,344 | $ 6,893 | $ 5,074 | $ 26,070 | $ 23,901 | $ 23,041 | |||
Amortization of intangibles | $ 4,974 | $ 5,502 | $ 5,554 | $ 5,528 | $ 5,951 | $ 6,718 | $ 3,761 | $ 3,947 | $ 21,558 | $ 20,377 | $ 13,975 | |||
[1] | Exclusive of depreciation and amortization expense. |
Revenues, net - Contracts with
Revenues, net - Contracts with Customer, Receivables and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 171,864 | $ 164,752 |
Contract assets | 5,391 | 5,445 |
Contract liabilities | ||
Deferred revenue (consideration received in advance) | 11,259 | 6,345 |
Consideration received for process transition activities | $ 3,036 | $ 1,669 |
Revenues, net - Narrative (Deta
Revenues, net - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable not billed | $ 73,920 | $ 63,952 |
Contract liability, revenue recognized | $ 6,077 | $ 9,147 |
Revenues, net - Contract Costs
Revenues, net - Contract Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Contract Acquisition Costs | ||
Increase (Decrease) In Capitalized Contract Costs [Roll Forward] | ||
Balance as of January 1 | $ 713 | $ 454 |
Addition | 1,222 | 567 |
Amortization | (628) | (308) |
Balance as of December 31 | 1,307 | 713 |
Contract Fulfillment Costs | ||
Increase (Decrease) In Capitalized Contract Costs [Roll Forward] | ||
Balance as of January 1 | 4,051 | 2,769 |
Addition | 4,652 | 2,216 |
Amortization | (1,448) | (934) |
Balance as of December 31 | $ 7,255 | $ 4,051 |
Other Income, net - Summary of
Other Income, net - Summary of Other Income, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Nonoperating Income (Expense) [Abstract] | |||
Gain on sale and mark-to-market of mutual funds | $ 12,965 | $ 9,970 | $ 8,766 |
Interest and dividend income | 2,399 | 1,873 | 1,625 |
Others, net | 1,143 | 1,146 | 968 |
Other income, net | $ 16,507 | $ 12,989 | $ 11,359 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerators: | |||||||||||
Net income | $ 21,356 | $ 19,044 | $ 12,564 | $ 14,695 | $ 3,857 | $ 15,249 | $ 14,462 | $ 23,158 | $ 67,659 | $ 56,726 | $ 48,888 |
Denominators: | |||||||||||
Basic weighted average common shares outstanding (in shares) | 34,253,308 | 34,322,449 | 34,451,671 | 34,374,815 | 34,388,025 | 34,458,520 | 34,511,777 | 34,446,265 | 34,350,150 | 34,451,008 | 33,897,916 |
Dilutive effect of share based awards (in shares) | 382,533 | 579,976 | 1,212,294 | ||||||||
Diluted weighted average common shares outstanding (in shares) | 34,696,896 | 34,699,497 | 34,702,547 | 34,833,435 | 34,921,388 | 35,207,991 | 35,142,388 | 35,302,926 | 34,732,683 | 35,030,984 | 35,110,210 |
Earnings per share attributable to ExlService Holdings Inc. stockholders: | |||||||||||
Basic (in dollars per share) | $ 0.62 | $ 0.55 | $ 0.36 | $ 0.43 | $ 0.11 | $ 0.44 | $ 0.42 | $ 0.67 | $ 1.97 | $ 1.65 | $ 1.44 |
Diluted (in dollars per share) | $ 0.62 | $ 0.55 | $ 0.36 | $ 0.42 | $ 0.11 | $ 0.43 | $ 0.41 | $ 0.66 | $ 1.95 | $ 1.62 | $ 1.39 |
Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share (in shares) | 106,375 | 121,344 | 151,961 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 119,165 | $ 95,881 | $ 86,795 | |
Restricted cash (current) | 5,453 | 5,608 | 3,674 | |
Restricted cash (non-current) | 2,426 | 2,642 | 3,808 | |
Cash, cash equivalents and restricted cash | $ 127,044 | $ 104,131 | $ 94,277 | $ 220,394 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Owned assets: | ||
Owned assets, gross | $ 257,836 | $ 228,850 |
Less: Accumulated depreciation and amortization | (179,331) | (155,798) |
Owned assets, net | 78,505 | 73,052 |
Right-of-use assets under finance leases: | ||
Assets under capital leases, gross | 1,757 | 1,459 |
Less: Accumulated depreciation and amortization | (1,120) | (1,001) |
Assets under capital leases, net | 637 | 458 |
Property and equipment, net | 79,142 | 73,510 |
Network equipment and computers | ||
Owned assets: | ||
Owned assets, gross | $ 98,309 | 85,921 |
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 | $ 79,746 | 69,752 |
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 | $ 44,982 | 39,533 |
Right-of-use assets under finance leases: | ||
Assets under capital leases, gross | $ 738 | 778 |
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 | $ 22,046 | 20,097 |
Right-of-use assets under finance leases: | ||
Assets under capital leases, gross | $ 308 | 53 |
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 | $ 601 | 635 |
Right-of-use assets under finance leases: | ||
Assets under capital leases, gross | $ 711 | 628 |
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 | $ 1,114 | 1,140 |
Land | ||
Owned assets: | ||
Owned assets, gross | 729 | 746 |
Capital work in progress | ||
Owned assets: | ||
Owned assets, gross | $ 10,309 | $ 11,026 |
Property and Equipment, net - D
Property and Equipment, net - Depreciation and Amortization Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 30,423 | $ 28,189 | $ 24,574 |
Depreciation & amortization | |||
Property, Plant and Equipment [Line Items] | |||
Effect of the foreign exchange gains upon settlement of cash flow hedges | $ 212 | $ 153 | $ 435 |
Property and Equipment, net - I
Property and Equipment, net - Internally Developed Software Costs, Included under Software (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Cost | $ 15,784 | $ 8,783 | |
Less : Accumulated amortization | (4,989) | (2,393) | |
Net | 10,795 | 6,390 | |
Amortization expense | 2,745 | $ 1,417 | $ 640 |
Impairment charges | $ 2,178 |
Business Combinations, Goodwi_3
Business Combinations, Goodwill and Intangible Assets - Narrative (Details) | Jul. 01, 2018USD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||||
Restricted common stock issued for business acquisition | $ 0 | $ 4,080,000 | $ 0 | |||
Goodwill | $ 349,529,000 | $ 349,984,000 | 349,529,000 | 349,984,000 | 204,481,000 | |
Goodwill impairment | 14,229,000 | |||||
Intangible assets, net | 73,082,000 | 94,595,000 | 73,082,000 | 94,595,000 | ||
Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Impairment charges | 5,549,000 | |||||
Intangible assets, net | 54,272,000 | 67,874,000 | 54,272,000 | 67,874,000 | ||
Developed technology | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, net | 16,289,000 | 22,501,000 | 16,289,000 | 22,501,000 | ||
Trade names and trademarks | ||||||
Business Acquisition [Line Items] | ||||||
Impairment charges | 278,000 | |||||
Intangible assets, net | 2,521,000 | 4,035,000 | 2,521,000 | 4,035,000 | ||
SCIO | ||||||
Business Acquisition [Line Items] | ||||||
Total purchase consideration | $ 245,044,000 | |||||
Goodwill | $ 163,751,000 | |||||
SCIO | Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average useful life | 10 years | |||||
SCIO | Developed technology | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average useful life | 5 years | |||||
SCIO | Trade names and trademarks | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average useful life | 3 years | |||||
Health Integrated, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 0 | 0 | ||||
Intangible assets, net | 0 | 0 | ||||
Restricted Stock | SCIO | ||||||
Business Acquisition [Line Items] | ||||||
Stock issued during period (in shares) | shares | 69,459 | |||||
Restricted common stock issued for business acquisition | $ 4,080,000 | |||||
Minimum | SCIO | ||||||
Business Acquisition [Line Items] | ||||||
Initial purchase consideration | 236,500,000 | |||||
Revolver Credit | SCIO | ||||||
Business Acquisition [Line Items] | ||||||
Utilized revolver credit facility to finance acquisition | $ 233,000,000 | |||||
Healthcare | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 19,276,000 | 19,276,000 | 19,276,000 | 19,276,000 | $ 35,233,000 | |
Goodwill impairment | $ (14,229,000) | $ 14,229,000 | ||||
Long-term revenue growth rate | ||||||
Business Acquisition [Line Items] | ||||||
Reporting unit, measurement input | 0.030 | |||||
Discount rate | ||||||
Business Acquisition [Line Items] | ||||||
Reporting unit, increase in measurement input | 0.0050 | |||||
Discount rate | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Reporting unit, measurement input | 0.090 | |||||
Discount rate | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Reporting unit, measurement input | 0.110 | |||||
SCIO | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 163,751,000 | $ 163,751,000 | ||||
Percentage of total goodwill | 47.00% | 47.00% | ||||
Percentage of fair value in excess of carrying amount | 10.00% | 10.00% | ||||
Fair value exceeding percentage | 6.00% | 6.00% |
Business Combinations, Goodwi_4
Business Combinations, Goodwill and Intangible Assets - Purchase Price Allocation - SCIO (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 01, 2018 | Dec. 31, 2017 |
Liabilities: | ||||
Goodwill | $ 349,529 | $ 349,984 | $ 204,481 | |
SCIO | ||||
Assets: | ||||
Cash and cash equivalents | $ 9,842 | |||
Restricted cash | 2,790 | |||
Accounts receivable | 19,924 | |||
Other current assets | 2,076 | |||
Property and equipment | 1,824 | |||
Other assets | 1,751 | |||
Assets acquired, excluding goodwill | 111,107 | |||
Liabilities: | ||||
Current liabilities | (12,482) | |||
Deferred tax liabilities, net | (17,132) | |||
Other non-current liabilities | (200) | |||
Liabilities | (29,814) | |||
Net assets acquired | 81,293 | |||
Goodwill | 163,751 | |||
Total purchase consideration | 245,044 | |||
Customer relationships | SCIO | ||||
Assets: | ||||
Intangible assets | 47,800 | |||
Developed technology | SCIO | ||||
Assets: | ||||
Intangible assets | 21,400 | |||
Trade names and trademarks | SCIO | ||||
Assets: | ||||
Intangible assets | $ 3,700 |
Business Combinations, Goodwi_5
Business Combinations, Goodwill and Intangible Assets - Summary of Company's Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | |||
Beginning Balance | $ 349,984 | $ 204,481 | |
Acquisitions | 163,751 | ||
Measurement period adjustments | (1,728) | ||
Currency translation adjustments | (455) | (2,291) | |
Impairment charges | (14,229) | ||
Ending Balance | $ 349,984 | 349,529 | 349,984 |
Insurance | |||
Goodwill [Roll Forward] | |||
Beginning Balance | 38,203 | 38,333 | |
Acquisitions | 0 | ||
Measurement period adjustments | 0 | ||
Currency translation adjustments | 73 | (130) | |
Impairment charges | 0 | ||
Ending Balance | 38,203 | 38,276 | 38,203 |
Healthcare | |||
Goodwill [Roll Forward] | |||
Beginning Balance | 19,276 | 35,233 | |
Acquisitions | 0 | ||
Measurement period adjustments | (1,728) | ||
Currency translation adjustments | 0 | 0 | |
Impairment charges | 14,229 | (14,229) | |
Ending Balance | 19,276 | 19,276 | 19,276 |
TT&L | |||
Goodwill [Roll Forward] | |||
Beginning Balance | 12,697 | 13,679 | |
Acquisitions | 0 | ||
Measurement period adjustments | 0 | ||
Currency translation adjustments | (240) | (982) | |
Impairment charges | 0 | ||
Ending Balance | 12,697 | 12,457 | 12,697 |
F&A | |||
Goodwill [Roll Forward] | |||
Beginning Balance | 47,193 | 48,372 | |
Acquisitions | 0 | ||
Measurement period adjustments | 0 | ||
Currency translation adjustments | (288) | (1,179) | |
Impairment charges | 0 | ||
Ending Balance | 47,193 | 46,905 | 47,193 |
All Other | |||
Goodwill [Roll Forward] | |||
Beginning Balance | 5,326 | 5,326 | |
Acquisitions | 0 | ||
Measurement period adjustments | 0 | ||
Currency translation adjustments | 0 | 0 | |
Impairment charges | 0 | ||
Ending Balance | 5,326 | 5,326 | 5,326 |
Analytics | |||
Goodwill [Roll Forward] | |||
Beginning Balance | 227,289 | 63,538 | |
Acquisitions | 163,751 | ||
Measurement period adjustments | 0 | ||
Currency translation adjustments | 0 | 0 | |
Impairment charges | 0 | ||
Ending Balance | 227,289 | 227,289 | 227,289 |
Health Integrated, Inc. | |||
Goodwill [Roll Forward] | |||
Beginning Balance | $ 0 | ||
Ending Balance | $ 0 | $ 0 |
Business Combinations, Goodwi_6
Business Combinations, Goodwill and Intangible Assets - Summary of Company's Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 129,678 | $ 181,272 |
Accumulated Amortization | (56,596) | (80,850) |
Accumulated Impairment | 0 | (5,827) |
Total | 73,082 | 94,595 |
Intangible assets, gross | 130,578 | 182,172 |
Intangible assets, net | 73,982 | 95,495 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 97,602 | 129,790 |
Accumulated Amortization | (43,330) | (56,367) |
Accumulated Impairment | 0 | (5,549) |
Total | 54,272 | 67,874 |
Leasehold benefits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 2,644 | |
Accumulated Amortization | (2,567) | |
Accumulated Impairment | 0 | |
Total | 77 | |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 26,976 | 37,154 |
Accumulated Amortization | (10,687) | (14,653) |
Accumulated Impairment | 0 | 0 |
Total | 16,289 | 22,501 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 2,045 | |
Accumulated Amortization | (1,937) | |
Accumulated Impairment | 0 | |
Total | 108 | |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 5,100 | 9,639 |
Accumulated Amortization | (2,579) | (5,326) |
Accumulated Impairment | 0 | (278) |
Total | 2,521 | 4,035 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, trade names and trademarks | $ 900 | $ 900 |
Business Combinations, Goodwi_7
Business Combinations, Goodwill and Intangible Assets - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combinations, Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||
Amortization expense | $ 4,974 | $ 5,502 | $ 5,554 | $ 5,528 | $ 5,951 | $ 6,718 | $ 3,761 | $ 3,947 | $ 21,558 | $ 20,377 | $ 13,975 |
Business Combinations, Goodwi_8
Business Combinations, Goodwill and Intangible Assets - Weighted Average Life of Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 7 years 7 months 28 days |
Developed technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 3 years 7 months 20 days |
Trade names and trademarks | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 2 years 4 months 17 days |
Business Combinations, Goodwi_9
Business Combinations, Goodwill and Intangible Assets - Estimated Future Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Business Combinations, Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 14,458 | |
2021 | 12,753 | |
2022 | 11,335 | |
2023 | 9,046 | |
2024 | 6,704 | |
2025 and thereafter | 18,786 | |
Total | $ 73,082 | $ 94,595 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Derivative instruments | $ 4,076 | $ 4,059 |
Advances to suppliers | 1,581 | 2,910 |
Receivables from statutory authorities | 12,608 | 14,145 |
Contract assets | 1,414 | 1,201 |
Deferred contract fulfillment costs | 1,673 | 1,236 |
Others | 3,242 | 4,689 |
Other current assets | $ 24,594 | $ 28,240 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Lease deposits | $ 9,983 | $ 8,891 |
Derivative instruments | 3,433 | 1,971 |
Deposits with statutory authorities | 6,252 | 6,273 |
Term deposits | 1,983 | 315 |
Contract assets | 3,977 | 4,244 |
Deferred contract fulfillment costs | 5,582 | 2,815 |
Others | 4,806 | 6,506 |
Other assets | $ 36,016 | $ 31,015 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accrued expenses | $ 53,139 | $ 44,711 |
Derivative instruments | 1,783 | 3,204 |
Client liabilities | 6,378 | 6,933 |
Other current liabilities | 9,723 | 9,321 |
Accrued expenses and other current liabilities | $ 71,023 | $ 64,169 |
Other Non-Current liabilities -
Other Non-Current liabilities - Summary of Non-Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Liabilities, Noncurrent [Abstract] | ||
Derivative instruments | $ 1,250 | $ 3,075 |
Unrecognized tax benefits | 1,047 | 804 |
Deferred rent | 0 | 7,834 |
Retirement benefits | 6,517 | 3,616 |
Deferred transition revenue | 1,911 | 945 |
Others | 987 | 247 |
Other non-current liabilities | $ 11,712 | $ 16,521 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Income tax expense relating to above | $ (125) | $ (62) |
Accumulated other comprehensive loss | (84,892) | (83,467) |
Cumulative foreign currency translation loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI before tax | (87,591) | (84,105) |
Unrealized gain/(loss) on cash flow hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI before tax | 4,604 | (218) |
Retirement benefits | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
AOCI before tax | $ (1,780) | $ 918 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Mutual funds | $ 166,330 | $ 142,408 |
Derivative financial instruments | 7,509 | 6,030 |
Total | 173,839 | 148,438 |
Liabilities | ||
Derivative financial instruments | 3,033 | 6,279 |
Total | 3,033 | 6,279 |
Level 1 | ||
Assets | ||
Mutual funds | 166,330 | 142,408 |
Derivative financial instruments | 0 | 0 |
Total | 166,330 | 142,408 |
Liabilities | ||
Derivative financial instruments | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
Assets | ||
Mutual funds | 0 | 0 |
Derivative financial instruments | 7,509 | 6,030 |
Total | 7,509 | 6,030 |
Liabilities | ||
Derivative financial instruments | 3,033 | 6,279 |
Total | 3,033 | 6,279 |
Fair value of convertible notes | 149,934 | 130,510 |
Level 3 | ||
Assets | ||
Mutual funds | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Total | 0 | 0 |
Liabilities | ||
Derivative financial instruments | 0 | 0 |
Total | $ 0 | $ 0 |
Derivatives and Hedge Account_3
Derivatives and Hedge Accounting - Narrative (Detail) € in Thousands, £ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018GBP (£) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net derivative losses which could be reclassified into earnings within the next 12 months | $ 2,421,000 | |||||
Maximum outstanding term of cash flow hedges | 45 months | |||||
Derivatives Designated as Hedging Instruments | Derivatives in cash flow hedging relationships | Foreign currency exchange contracts | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Foreign exchange contracts outstanding | $ 410,390,000 | $ 362,435,000 | ||||
Derivative not designated as hedging instruments | Foreign currency exchange contracts | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Foreign exchange contracts outstanding | 124,045,000 | € 1,289 | £ 10,843 | 125,503,000 | € 512 | £ 15,616 |
Forward contracts | Derivatives Designated as Hedging Instruments | Derivatives in cash flow hedging relationships | Foreign currency exchange contracts | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Foreign exchange contracts outstanding | $ 4,300,000 | $ 6,900 |
Derivatives and Hedge Account_4
Derivatives and Hedge Accounting - Summary of Fair Value of Foreign Currency Exchange Contracts (Detail) - Foreign currency exchange contracts - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | $ 3,945 | $ 4,022 |
Derivative designated as hedging instruments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | 3,433 | 1,971 |
Derivative designated as hedging instruments | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | 1,524 | 3,137 |
Derivative designated as hedging instruments | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | 1,250 | 3,075 |
Derivative not designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | 131 | 37 |
Derivative not designated as hedging instruments | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | $ 259 | $ 67 |
Derivatives and Hedge Account_5
Derivatives and Hedge Accounting - Summary of Effect of Foreign Currency Exchange Contracts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized in consolidated statements of income | $ (3,752) | $ (4,787) | $ (2,839) |
Derivatives in cash flow hedging relationships | Derivative designated as hedging instruments | Foreign currency exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized gain/(loss) recognized in AOCI | 8,773 | (13,919) | 19,802 |
Reclassification out of Accumulated Other Comprehensive Income | Fair value hedge | Derivative designated as hedging instruments | Foreign currency exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized in consolidated statements of income | $ 3,306 | $ (3,224) | $ 5,056 |
Derivatives and Hedge Account_6
Derivatives and Hedge Accounting - Location of Gain or Loss Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Cost of revenues | [1] | $ 655,490 | $ 584,855 | $ 495,142 | ||||||||
General and administrative expenses | 126,909 | 116,202 | 102,515 | |||||||||
Selling and marketing expenses | 71,842 | 63,612 | 53,379 | |||||||||
Depreciation and amortization expense | 51,981 | 48,566 | 38,549 | |||||||||
Net income attributable to ExlService Holdings, Inc. stockholders | $ 21,356 | $ 19,044 | $ 12,564 | $ 14,695 | $ 3,857 | $ 15,249 | $ 14,462 | $ 23,158 | 67,659 | 56,726 | 48,888 | |
Foreign exchange gain/(loss), net | 3,752 | 4,787 | 2,839 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Derivatives Designated as Hedging Instruments | Derivatives in cash flow hedging relationships | Foreign currency exchange contracts | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Cost of revenues | 3,269 | 2,481 | 5,465 | |||||||||
General and administrative expenses | 424 | 443 | 960 | |||||||||
Selling and marketing expenses | 46 | 44 | 103 | |||||||||
Depreciation and amortization expense | 212 | 181 | 371 | |||||||||
Net income attributable to ExlService Holdings, Inc. stockholders | 3,951 | 3,149 | 6,899 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Derivatives Designated as Hedging Instruments | Fair value hedge | Foreign currency exchange contracts | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Foreign exchange gain/(loss), net | (3,306) | 3,224 | (5,056) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative not designated as hedging instruments | Fair value hedge | Foreign currency exchange contracts | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Foreign exchange gain/(loss), net | $ 3,306 | $ (3,224) | $ 5,056 | |||||||||
[1] | Exclusive of depreciation and amortization expense. |
Derivatives and Hedge Account_7
Derivatives and Hedge Accounting Derivatives and Hedge Accounting - Effect of Net Investment Hedges on AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Effect of net investment hedges on accumulated other comprehensive loss | $ (580) | $ 0 | $ 0 |
Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Effect of net investment hedges on accumulated other comprehensive loss | $ (580) | $ 0 |
Borrowings (Detail)
Borrowings (Detail) | Oct. 01, 2018USD ($)$ / shares | Nov. 21, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jul. 02, 2018USD ($) |
Credit Facilities [Line Items] | ||||||
Current portion of long-term borrowings | $ 40,867,000 | $ 21,423,000 | ||||
Long-term borrowings, less current portion | 194,131,000 | 263,241,000 | ||||
Debt offering expense | 117,000 | 762,000 | $ 790,000 | |||
Allocation of equity component related to the convertible senior notes, net of tax and issuance costs | (13,000) | 12,555,000 | ||||
Amortization of non-cash interest expense related to convertible senior notes | 2,472,000 | 0 | $ 0 | |||
Structured payable | 249,867,000 | |||||
Outstanding letters of credit | 461,000 | 0 | ||||
Structured Payables | ||||||
Credit Facilities [Line Items] | ||||||
Current portion of long-term borrowings | 867,000 | 1,423,000 | ||||
Long-term borrowings, less current portion | 0 | 691,000 | ||||
Structured payable | 867,000 | 2,114,000 | ||||
3.50% Convertible Senior Notes due October 1, 2024 | Notes | ||||||
Credit Facilities [Line Items] | ||||||
Debt instrument face amount | $ 150,000,000 | |||||
Interest rate | 3.50% | |||||
Interest expense | 5,206,000 | 1,313,000 | ||||
Conversion rate | 0.0133333 | |||||
Conversion price (in dollars per share) | $ / shares | $ 75 | |||||
Threshold percentage of stock price trigger | 150.00% | |||||
Net proceeds from convertible notes | $ 149,000,000 | |||||
Debt issuance costs | 1,000,000 | |||||
Debt offering expense | 442,000 | |||||
Liability component of debt issuance costs | 1,279,000 | |||||
Equity component of debt issuance costs | 163,000 | |||||
Unamortized debit issuance costs | $ 1,018,000 | 1,127,000 | ||||
Convertible notes, liability component | 133,077,000 | |||||
Convertible senior notes, interest rate | 5.75% | |||||
Allocation of equity component related to the convertible senior notes, net of tax and issuance costs | $ 16,923,000 | |||||
Debt instrument, convertible, remaining discount amortization period | 6 years | |||||
Amortization of non-cash interest expense related to convertible senior notes | $ 2,472,000 | 600,000 | ||||
Unamortized debt discount | 13,851,000 | 16,323,000 | ||||
Structured payable | 150,000,000 | 150,000 | ||||
Revolver Credit | ||||||
Credit Facilities [Line Items] | ||||||
Revolving credit facility | 99,000,000 | 150,000,000 | ||||
Current portion of long-term borrowings | 40,000,000 | 20,000,000 | ||||
Long-term borrowings, less current portion | 59,000,000 | 130,000,000 | ||||
Unamortized debt issuance costs | 748,000 | $ 1,006,000 | ||||
Repayments of credit facility | $ 150,000,000 | |||||
Structured payable | $ 99,000,000 | |||||
Revolver Credit | Credit Agreement | ||||||
Credit Facilities [Line Items] | ||||||
Revolving credit facility | $ 200,000,000 | |||||
Option to increase additional credit facility | $ 100,000 | $ 100,000,000 | ||||
Line of credit , maximum borrowing capacity | $ 300,000,000 | |||||
Line of credit interest rate during period | 4.00% | 3.40% | ||||
Unrestricted domestic cash and cash equivalents | $ 50,000,000 | |||||
Interest coverage ratio, minimum | 3.5 | |||||
Interest coverage ratio, maximum | 3 | |||||
Revolver Credit | Credit Agreement | Minimum | ||||||
Credit Facilities [Line Items] | ||||||
Commitment fee percentage range on unused credit facility | 0.15% | |||||
Revolver Credit | Credit Agreement | Maximum | ||||||
Credit Facilities [Line Items] | ||||||
Commitment fee percentage range on unused credit facility | 0.30% | |||||
Revolver Credit | Credit Agreement | Prime Rate | Minimum | ||||||
Credit Facilities [Line Items] | ||||||
Basis spread on variable rate | 0.00% | |||||
Revolver Credit | Credit Agreement | Prime Rate | Maximum | ||||||
Credit Facilities [Line Items] | ||||||
Basis spread on variable rate | 0.75% | |||||
Revolver Credit | Credit Agreement | London Interbank Offered Rate (LIBOR) | Minimum | ||||||
Credit Facilities [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
Revolver Credit | Credit Agreement | London Interbank Offered Rate (LIBOR) | Maximum | ||||||
Credit Facilities [Line Items] | ||||||
Basis spread on variable rate | 1.75% |
Borrowings Principle - Maturiti
Borrowings Principle - Maturities of Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Credit Facilities [Line Items] | ||
2020 | $ 40,867 | |
2021 | 40,000 | |
2022 | 19,000 | |
2023 | 0 | |
2024 | 150,000 | |
Total | 249,867 | |
Revolver Credit | ||
Credit Facilities [Line Items] | ||
2020 | 40,000 | |
2021 | 40,000 | |
2022 | 19,000 | |
2023 | 0 | |
2024 | 0 | |
Total | 99,000 | |
Notes | 3.50% Convertible Senior Notes due October 1, 2024 | ||
Credit Facilities [Line Items] | ||
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 150,000 | |
Total | 150,000 | $ 150 |
Structured Payables | ||
Credit Facilities [Line Items] | ||
2020 | 867 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Total | $ 867 | $ 2,114 |
Capital Structure (Detail)
Capital Structure (Detail) | 12 Months Ended | ||||
Dec. 31, 2019USD ($)ClassOfCommonStock$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 16, 2019USD ($) | Feb. 28, 2017USD ($) | Dec. 30, 2014USD ($) | |
Equity, Class of Treasury Stock [Line Items] | |||||
Number of classes of common stock outstanding | ClassOfCommonStock | 1 | ||||
Acquisition of restricted stock from employees in connection with withholding tax payments (in shares) | shares | 23,859 | 51,446 | |||
Withholding tax payments related to the vesting of restricted stock for total consideration | $ 1,490,000 | $ 3,122,000 | |||
Weighted average purchase price per share prior to the vesting date (in dollars per share) | $ / shares | $ 62.47 | $ 60.68 | |||
2014 Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Repurchase of common stock authorized by board of directors up to | $ 20,000,000 | ||||
Common stock shares purchased under the repurchase program (in shares) | shares | 674,604 | ||||
Common stock aggregate purchase price including commissions | $ 39,987,000 | ||||
Common stock average purchase price per share (in dollars per share) | $ / shares | $ 59.27 | ||||
2014 Repurchase Program | Minimum | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Repurchase of common stock authorized by board of directors up to | $ 20,000,000 | ||||
2017 Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
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 | Maximum | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized increase in repurchase amount | $ 40,000,000 | ||||
2019 Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Repurchase of common stock authorized by board of directors up to | $ 200,000,000 | ||||
2014 and 2017 Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Common stock shares purchased under the repurchase program (in shares) | shares | 643,486 | ||||
Common stock aggregate purchase price including commissions | $ 39,874,000 | ||||
Common stock average purchase price per share (in dollars per share) | $ / shares | $ 61.96 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Change in Projected Benefit Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in projected benefit obligation: | |||
Projected benefit obligation at the beginning of the year | $ 11,044 | $ 10,305 | |
Business acquisition | 0 | 326 | |
Service cost | 1,953 | 1,735 | $ 1,933 |
Interest cost | 875 | 714 | 645 |
Benefits paid | (960) | (1,066) | |
Actuarial loss/(gain) | 2,577 | (134) | |
Effect of exchange rate changes | (178) | (836) | |
Projected benefit obligation at the end of the year | 15,311 | 11,044 | $ 10,305 |
Unfunded amount–non-current | 6,517 | 3,616 | |
Unfunded amount–current | 10 | 8 | |
Total accrued liability | 6,527 | 3,624 | |
Accumulated benefit obligation | $ 10,743 | $ 7,239 |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Period Benefit Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 1,953 | $ 1,735 | $ 1,933 |
Interest cost | 875 | 714 | 645 |
Expected return on plan assets | (568) | (514) | (401) |
Amortization of actuarial (gain)/loss | (159) | (153) | 256 |
Net periodic benefit cost | $ 2,101 | $ 1,782 | $ 2,433 |
Employee Benefit Plans - Summ_2
Employee Benefit Plans - Summary of Components Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax [Abstract] | |||
Net actuarial (loss)/gain | $ (1,762) | $ 940 | $ 697 |
Net prior service cost | (18) | (22) | (8) |
Accumulated other comprehensive (loss)/gain, excluding tax effects | $ (1,780) | $ 918 | $ 689 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Accumulated other comprehensive loss, expected to be recognized over the next fiscal year | $ (558) | ||
Percentage of expected return on plan assets | 7.50% | ||
Percentage of discretionary contributions towards 401(k) Plan, maximum | 4.00% | ||
Company's contribution to the 401(k) Plan | $ 3,617 | $ 3,423 | $ 2,709 |
Contribution to various defined contribution plans | $ 10,395 | $ 7,614 | $ 7,116 |
Employee Benefit Plans - Summ_3
Employee Benefit Plans - Summary of Weighted Average Actuarial Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 6.50% | 7.50% | 7.00% |
Rate of increase in compensation levels | 6.00% | 8.20% | 9.10% |
Expected long term rate of return on plan assets per annum | 7.50% | 7.30% | 8.30% |
Employee Benefit Plans - Summ_4
Employee Benefit Plans - Summary of Expected Benefit Payments (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2020 | $ 2,408 |
2021 | 2,234 |
2022 | 1,969 |
2023 | 1,812 |
2024 | 1,563 |
2025 to 2029 | $ 5,712 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at the beginning of the year | $ 7,420 | $ 6,915 |
Business acquisition | 231 | |
Actual return | 606 | 779 |
Employer contribution | 1,905 | 1,175 |
Benefits paid | (957) | (1,059) |
Effect of exchange rate changes | (190) | (621) |
Plan assets at the ending of the year | $ 8,784 | $ 7,420 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Lease | ||
Operating lease right-of-use assets | $ 86,396 | |
Operating lease liabilities - Current | 24,148 | |
Operating lease liabilities - Non-current | 74,709 | $ 0 |
Total operating lease liabilities | 98,857 | |
Finance Lease | ||
Property and equipment, gross | 1,757 | |
Accumulated depreciation | (1,120) | |
Property and equipment, net | 637 | |
Finance lease liabilities - Current | 253 | |
Finance lease liabilities - Non-current | 430 | |
Total finance lease liabilities | 683 | |
Operating lease, impairment charge | $ 1,449 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finance lease: | |||
Amortization of right-of-use assets | $ 255 | ||
Interest on lease liabilities | 93 | ||
Operating lease | 27,335 | ||
Sublease income | (146) | ||
Total lease cost | $ 27,537 | ||
Operating lease costs for leases classified as such under Topic 840 | $ 25,573 | $ 24,015 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Cash Flow Informaton Related to Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash payments for amounts included in the measurement of lease liabilities : | |
Operating cash outflows for operating leases | $ 24,813 |
Operating cash outflows for finance leases | 93 |
Financing cash outflows for finance leases | 336 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 36,473 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 506 |
Weighted-average remaining lease term | |
Finance lease | 2 years 3 months 18 days |
Operating lease | 6 years |
Weighted-average discount rate | |
Finance lease | 9.90% |
Operating lease | 7.60% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Operating lease liability | $ 11,900 |
Operating lease term | 15 years |
Operating Leases | |
2020 | $ 26,932 |
2021 | 23,783 |
2022 | 21,526 |
2023 | 19,381 |
2024 | 14,865 |
2025 and thereafter | 23,983 |
Total lease payments | 130,470 |
Less: Imputed interest | 31,613 |
Present value of lease liabilities | 98,857 |
Finance Leases | |
2020 | 325 |
2021 | 251 |
2022 | 157 |
2023 | 86 |
2024 | 22 |
2025 and thereafter | 0 |
Total lease payments | 841 |
Less: Imputed interest | 158 |
Present value of lease liabilities | $ 683 |
Leases - Future Lease Payments
Leases - Future Lease Payments under Topic 840 (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leases | ||
2019 | $ 23,431 | |
2020 | 20,039 | |
2021 | 16,924 | |
2022 | 14,804 | |
2023 | 12,859 | |
2024 | 11,114 | |
2025 and thereafter | 15,000 | |
Total minimum lease payment | 114,171 | |
Capital Leases | ||
2019 | 283 | |
2020 | 163 | |
2021 | 120 | |
2022 | 58 | |
2023 | 49 | |
2024 | 0 | |
2025 and thereafter | 0 | |
Total minimum lease payment | 673 | |
Less: imputed interest | 135 | |
Present value of minimum lease payments | 538 | |
Less: current portion | $ 253 | 223 |
Long term capital lease obligation | $ 315 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (16,685) | $ (24,442) | $ 4,626 |
Foreign | 99,785 | 84,812 | 80,408 |
Income before income tax expense and earnings from equity affiliates | $ 83,100 | $ 60,370 | $ 85,034 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current provision/(benefit): | |||
Domestic | $ 10,823 | $ (13,249) | $ 17,407 |
Foreign | 16,694 | 17,271 | 18,008 |
Total | 27,517 | 4,022 | 35,415 |
Deferred provision/(benefit): | |||
Domestic | (13,912) | (1,999) | 2,618 |
Foreign | 1,567 | 1,374 | (1,887) |
Total | (12,345) | (625) | 731 |
Income tax expense | $ 15,172 | $ 3,397 | $ 36,146 |
Income Taxes Income Tax - Summa
Income Taxes Income Tax - Summary of Income Taxes Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred taxes (expense)/benefit : | |||
Unrealized gain/(loss) on cash flow hedges | $ (391) | $ 4,803 | $ (3,711) |
Retirement benefits | 328 | (21) | (268) |
Total Income tax (expense)/benefit recognized in other comprehensive income | $ (63) | $ 4,782 | $ (3,979) |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Expected tax expense | $ 17,451 | $ 12,678 | $ 29,762 |
Change in valuation allowance | 0 | (21) | |
Impact of tax holiday | (5,920) | (5,448) | (4,396) |
Foreign tax rate differential | 1,660 | 5,014 | (2,616) |
Deferred tax provision/(benefit) | 3,026 | (3,915) | (1,887) |
Unrecognized tax benefits and interest | 174 | (88) | (3,905) |
State taxes, net of Federal taxes | 2,137 | 2,201 | 339 |
Non-deductible expenses | 1,329 | 3,066 | 825 |
US Tax Reform Act impact | 0 | 176 | 29,185 |
Excess tax benefit on stock-based compensation | (2,306) | (7,227) | (9,797) |
Research & Development credit | (1,650) | (1,500) | (844) |
Prior period items | (143) | (1,466) | 0 |
Other | (586) | (94) | (499) |
Income tax expense | $ 15,172 | $ 3,397 | $ 36,146 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | ||||
Income tax expense | $ 15,172,000 | $ 3,397,000 | $ 36,146,000 | |
Effective tax rate increased | 18.30% | 5.60% | ||
Measurement period increase to transition tax obligation | $ 6,274,000 | |||
Excess tax benefit on stock-based compensation | $ 2,306,000 | 7,227,000 | 9,797,000 | |
Impairment and restructuring charges | 888,000 | 3,072,000 | ||
Tax benefits related to stock awards | $ 1,047,000 | $ 804,000 | $ 824,000 | $ 3,087,000 |
Effective tax rate in Philippines post tax exemption | 5.00% | |||
Effect of diluted earnings per share, tax holiday (in dollars per share) | $ 0.17 | $ 0.16 | $ 0.13 | |
Operating loss carryforward valuation allowance | $ 202,000 | $ 20,000 | ||
Valuation allowance related to tax credit carry forward | 0 | 79,000 | ||
Unrecognized tax benefits that would impact tax rate if recognized | 1,047,000 | |||
Unrecognized tax benefits, interest on income taxes expense | $ 0 | 0 | $ 0 | |
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 2032 | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | $ 0 | $ 444,000 |
Income Taxes - Summary of Com_2
Income Taxes - Summary of Components of Deferred Tax Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Depreciation and amortization expense | $ 12,319 | $ 3,731 |
Stock-based compensation | 9,313 | 8,614 |
Accrued employee costs and other expenses | 9,805 | 3,596 |
Net operating loss carry forward | 2,896 | 1,113 |
Unrealized exchange loss | 1,136 | 6,671 |
Deferred rent | 4,503 | 2,255 |
Others | 745 | 1,380 |
Deferred tax assets | 40,717 | 27,360 |
Valuation allowance | (202) | (99) |
Deferred tax assets | 40,515 | 27,261 |
Deferred tax liabilities: | ||
Unrealized exchange gain | 505 | 115 |
Intangible assets | 20,696 | 19,289 |
Unamortized discount on convertible senior notes | 3,395 | 4,105 |
Others | 5,030 | 5,595 |
Deferred tax liabilities | 29,626 | 29,104 |
Net deferred tax assets/(liabilities) | $ 10,889 | |
Net deferred tax assets/(liabilities) | $ (1,843) |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance as of January 1 | $ 804 | $ 824 | $ 3,087 |
Increases related to prior year tax positions | 69 | 0 | 0 |
Decreases related to prior year tax positions | (156) | (320) | (2,520) |
Increases related to current year tax positions | 330 | 300 | 169 |
Effect of exchange rate changes, increase | 0 | 0 | 88 |
Balance as of December 31 | $ 1,047 | $ 804 | $ 824 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Detail) - shares | Jun. 19, 2015 | Feb. 27, 2020 | Dec. 31, 2019 | Jun. 15, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiring period of equity options to employees | 10 years | |||
Vesting period | 4 years | |||
2018 Stock Options Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Increase in number of shares available for grant (in shares) | 3,175,000 | |||
Number of shares available for grant (in shares) | 2,785,763 | |||
Subsequent Event | 2018 Stock Options Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock issued, stock-based compensation plans (in shares) | 99,378 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||||
Stock-based compensation expenses | $ 4,532 | $ 7,427 | $ 7,155 | $ 6,956 | $ 6,590 | $ 5,344 | $ 6,893 | $ 5,074 | $ 26,070 | $ 23,901 | $ 23,041 |
Cost of revenues | |||||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||||
Stock-based compensation expenses | 5,895 | 4,924 | 4,600 | ||||||||
General and administrative expenses | |||||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||||
Stock-based compensation expenses | 10,012 | 10,371 | 10,363 | ||||||||
Selling and marketing expenses | |||||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||||
Stock-based compensation expenses | $ 10,163 | $ 8,606 | $ 8,078 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Options Narrative (Details) - Employee Stock Option - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | ||
Unrecognized compensation cost for unvested stock options | $ 0 | ||
Intrinsic value of options exercised | $ 3,187 | $ 4,446 | $ 23,027 |
Stock Based Compensation - St_2
Stock Based Compensation - Stock Based Compensation Stock Option Activity (Detail) - Employee Stock Option - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of options, outstanding, beginning balance (in shares) | 162,475 | ||
Number of options, granted (in shares) | 0 | ||
Number of options, exercised (in shares) | (64,314) | ||
Number of options, forfeited (in shares) | 0 | ||
Number of options, outstanding, ending balance (in shares) | 98,161 | 162,475 | |
Vested and exercisable at December 31, 2019 | 98,161 | ||
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) | $ 20.21 | ||
Weighted-average exercise price, granted (in dollars per share) | 0 | ||
Weighted-average exercise price, exercised (in dollars per share) | 15.33 | ||
Weighted-average exercise price, forfeited (in dollars per share) | 0 | ||
Weighted-average exercise price, outstanding, ending balance (in dollars per share) | 23.39 | $ 20.21 | |
Weighted average exercise price, vested and exercisable at December 31, 2019 (in dollars per share) | $ 23.39 | ||
Aggregate intrinsic value, outstanding | $ 4,522 | $ 5,267 | |
Aggregate intrinsic value, exercised | 3,187 | $ 4,446 | $ 23,027 |
Vested and exercisable at December 31, 2019 | $ 4,522 | ||
Weighted-average remaining contractual life, outstanding, ending balance | 1 year 10 months 9 days | 2 years 2 months 26 days | |
Vested and exercisable at December 31, 2019 | 1 year 10 months 9 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, 2019$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding (in shares) | shares | 98,161 |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 23.39 |
$15.00 to $21.00 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | 15 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 21 |
Options Outstanding (in shares) | shares | 14,893 |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 18.89 |
$21.01 to $28.00 | |
Share-based Payment Arrangement, Option, 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 | 83,268 |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 24.20 |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Stock Activity Under Company's Stock Plans (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Number, outstanding, beginning balance (in shares) | 103,623 | |
Number, granted (in shares) | 0 | |
Number, vested (in shares) | (76,239) | |
Number, forfeited (in shares) | 0 | |
Number, outstanding, ending balance (in shares) | 27,384 | 103,623 |
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) | $ 42.68 | |
Weighted-average fair value, granted (in dollars per share) | 0 | |
Weighted-average fair value, vested (in dollars per share) | 40.51 | |
Weighted-average fair value, forfeited (in dollars per share) | 0 | |
Weighted-average fair value, outstanding, ending balance (in dollars per share) | $ 48.72 | $ 42.68 |
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) | 953,578 | |
Number, granted (in shares) | 512,598 | |
Number, vested (in shares) | (400,497) | |
Number, forfeited (in shares) | (151,386) | |
Number, outstanding, ending balance (in shares) | 914,293 | 953,578 |
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) | $ 51.81 | |
Weighted-average fair value, granted (in dollars per share) | 64.29 | |
Weighted-average fair value, vested (in dollars per share) | 47.43 | |
Weighted-average fair value, forfeited (in dollars per share) | 58.52 | |
Weighted-average fair value, outstanding, ending balance (in dollars per share) | $ 59.62 | $ 51.81 |
Restricted stock units vested for which underlying common stock to be issued (in shares) | 10,318 | 9,641 |
Restricted stock units vested (in shares) | 166,071 | 155,753 |
Stock Based Compensation - Re_2
Stock Based Compensation - Restricted Stock and RSU Narrative (Details) - Restricted Stock and Restricted Stock Units - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 39,886 | ||
Cost not yet recognized, period for recognition | 2 years 6 months 21 days | ||
Weighted-average fair value of restricted stock and RSUs granted (in dollars per share) | $ 64.29 | $ 60.64 | $ 48.02 |
Number of restricted stock units, vested | $ 22,084 | $ 19,865 | $ 19,430 |
Stock Based Compensation - Perf
Stock Based Compensation - Performance Based Stock Awards Narrative (Details) - USD ($) $ in Thousands | Jun. 19, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
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 | 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 | 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 | $ 7,751 | |||
Cost not yet recognized, period for recognition | 1 year 8 months 15 days |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 9 days | 2 years 10 months 9 days | 2 years 10 months 9 days |
Risk free interest rate | 2.46% | 2.38% | 1.40% |
Volatility | 20.52% | 21.79% | 23.78% |
Stock Based Compensation - Pe_2
Stock Based Compensation - Performance Restricted Stock Activity (Details) | 12 Months Ended |
Dec. 31, 2019$ / 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 | 100,353 |
Number, granted (in shares) | shares | 54,062 |
Adjustment upon final determination of level of performance goal achievement (in shares) | shares | 11,285 |
Number, vested (in shares) | shares | (54,456) |
Number, forfeited (in shares) | shares | (23,559) |
Number, outstanding, ending balance (in shares) | shares | 87,685 |
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 | $ 54.07 |
Weighted-average fair value, granted (in dollars per share) | $ / shares | 64.33 |
Weighted-average fair value, adjustment upon final determination of level of performance goal achievement (in dollars per share) | $ / shares | 47.73 |
Weighted-average fair value, vested (in dollars per share) | $ / shares | 47.73 |
Weighted-average fair value, forfeited (in dollars per share) | $ / shares | 57.69 |
Weighted-average fair value, outstanding, ending balance (in dollars per share) | $ / shares | $ 62.54 |
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 | 100,336 |
Number, granted (in shares) | shares | 54,053 |
Number, additionally issued due to achievement of higher-than-target performance (in shares) | shares | 1,759 |
Number, vested (in shares) | shares | (44,922) |
Number, forfeited (in shares) | shares | (23,556) |
Number, outstanding, ending balance (in shares) | shares | 87,670 |
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 | $ 62.43 |
Weighted-average fair value, granted (in dollars per share) | $ / shares | 92.13 |
Weighted-average fair value, adjustment upon final determination of level of performance goal achievement (in dollars per share) | $ / shares | 54.10 |
Weighted-average fair value, vested (in dollars per share) | $ / shares | 54.10 |
Weighted-average fair value, forfeited (in dollars per share) | $ / shares | 72.65 |
Weighted-average fair value, outstanding, ending balance (in dollars per share) | $ / shares | $ 82.10 |
Impairment and Restructuring _3
Impairment and Restructuring Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Balance as of January 1, 2019 | $ 0 | ||
Costs incurred during the year | 5,044 | ||
Payments during the year | (1,970) | ||
Balance as of December 31, 2019 | 3,074 | $ 0 | |
Asset impairment charges | 3,627 | 20,056 | $ 0 |
Contract Termination Costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of January 1, 2019 | 0 | ||
Costs incurred during the year | 2,597 | ||
Payments during the year | (1,000) | ||
Balance as of December 31, 2019 | 1,597 | 0 | |
Employee-Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of January 1, 2019 | 0 | ||
Costs incurred during the year | 1,375 | ||
Payments during the year | (269) | ||
Balance as of December 31, 2019 | 1,106 | 0 | |
Other Associated Costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of January 1, 2019 | 0 | ||
Costs incurred during the year | 1,072 | ||
Payments during the year | (701) | ||
Balance as of December 31, 2019 | $ 371 | $ 0 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 01, 2018 | |
Debt Instrument [Line Items] | ||||||||||||
Debt outstanding | $ 249,867,000 | $ 249,867,000 | ||||||||||
Revenues from related party | 256,872,000 | $ 251,392,000 | $ 243,509,000 | $ 239,573,000 | $ 234,903,000 | $ 231,124,000 | $ 210,112,000 | $ 206,973,000 | 991,346,000 | $ 883,112,000 | $ 762,310,000 | |
Accounts receivable from related party | 0 | 5,000 | 0 | 5,000 | ||||||||
Consulting Services | Affiliated Entity | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Revenues from related party | 0 | 225,000 | $ 1,748,000 | |||||||||
Convertible Notes Payable | 3.50% Convertible Senior Notes due October 1, 2024 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument face amount | $ 150,000,000 | |||||||||||
Debt outstanding | 150,000,000 | 150,000 | 150,000,000 | 150,000 | ||||||||
Interest accrued | $ 1,313,000 | $ 1,313,000 | $ 1,313,000 | $ 1,313,000 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase commitments, net of advances | $ 6,500 | $ 6,300 |
Percentage of export-oriented units established | 100.00% | |
Litigation, settlement amount | 2,400 | |
Settlement payments made during the period | 1,200 | |
Aggregate disputed amount amount related to transfer pricing and permanent establishment | $ 16,220 | 18,177 |
Total bank guarantees and deposits in respect of contingencies | 8,108 | 8,171 |
Amounts paid as deposits in respect of contingencies | 6,252 | 6,273 |
Bank guarantee issued | $ 1,856 | $ 1,899 |
Impact of adoption of account_3
Impact of adoption of accounting guidance on prior year’s presentation and disclosures - Effect of the Adoption of the ASU No. 2017-07 and 2016-18 (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | [1] | $ 655,490 | $ 584,855 | $ 495,142 |
General and administrative expenses | 126,909 | 116,202 | 102,515 | |
Selling and marketing expenses | 71,842 | 63,612 | 53,379 | |
Other income, net | 16,507 | 12,989 | 11,359 | |
Operating expenses | 259,403 | 248,436 | 194,443 | |
Foreign exchange gain, interest expense and other income, net | 6,647 | 10,549 | 12,309 | |
Net cash provided by operating activities | 168,420 | 92,435 | 113,159 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,045) | (2,868) | 3,935 | |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 22,913 | 9,854 | (126,117) | |
Cash, cash equivalents and restricted cash at the beginning of the period | 104,131 | 94,277 | 220,394 | |
Cash, cash equivalents and restricted cash at the end of the period | 127,044 | 104,131 | 94,277 | |
Previously reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | 495,586 | |||
General and administrative expenses | 102,567 | |||
Selling and marketing expenses | 53,383 | |||
Other income, net | 11,859 | |||
ASU No. 2017-07 | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Operating expenses | 194,443 | |||
Foreign exchange gain, interest expense and other income, net | 12,309 | |||
ASU No. 2017-07 | Previously reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Operating expenses | 194,499 | |||
Foreign exchange gain, interest expense and other income, net | 12,809 | |||
ASU No. 2017-07 | Effect of change increase/(decrease) | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | (444) | |||
General and administrative expenses | (52) | |||
Selling and marketing expenses | (4) | |||
Other income, net | (500) | |||
Operating expenses | (56) | |||
Foreign exchange gain, interest expense and other income, net | (500) | |||
ASU No. 2016-18 | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net cash provided by operating activities | 113,159 | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 3,935 | |||
Net increase/(decrease) in cash, cash equivalents and restricted cash | (126,117) | |||
Cash, cash equivalents and restricted cash at the beginning of the period | 94,277 | 220,394 | ||
Cash, cash equivalents and restricted cash at the end of the period | 94,277 | |||
ASU No. 2016-18 | Previously reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net cash provided by operating activities | 113,140 | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 3,711 | |||
Net increase/(decrease) in cash, cash equivalents and restricted cash | (126,360) | |||
Cash, cash equivalents and restricted cash at the beginning of the period | 86,795 | 213,155 | ||
Cash, cash equivalents and restricted cash at the end of the period | 86,795 | |||
ASU No. 2016-18 | Effect of change increase/(decrease) | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net cash provided by operating activities | 19 | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 224 | |||
Net increase/(decrease) in cash, cash equivalents and restricted cash | 243 | |||
Cash, cash equivalents and restricted cash at the beginning of the period | 7,482 | 7,239 | ||
Cash, cash equivalents and restricted cash at the end of the period | 7,482 | |||
Insurance | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | 199,678 | 174,921 | 159,433 | |
Insurance | ASU No. 2017-07 | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | 159,433 | |||
Insurance | ASU No. 2017-07 | Previously reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | 159,529 | |||
Insurance | ASU No. 2017-07 | Effect of change increase/(decrease) | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | (96) | |||
Healthcare | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | 73,650 | 66,768 | 49,412 | |
Healthcare | ASU No. 2017-07 | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | 49,412 | |||
Healthcare | ASU No. 2017-07 | Previously reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | 49,483 | |||
Healthcare | ASU No. 2017-07 | Effect of change increase/(decrease) | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | (71) | |||
TT&L | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | 38,736 | 41,066 | 41,337 | |
TT&L | ASU No. 2017-07 | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | 41,337 | |||
TT&L | ASU No. 2017-07 | Previously reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | 41,409 | |||
TT&L | ASU No. 2017-07 | Effect of change increase/(decrease) | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | (72) | |||
F&A | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | 63,317 | 59,155 | 51,362 | |
F&A | ASU No. 2017-07 | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | 51,362 | |||
F&A | ASU No. 2017-07 | Previously reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | 51,445 | |||
F&A | ASU No. 2017-07 | Effect of change increase/(decrease) | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | (83) | |||
All Other | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | 48,864 | 58,341 | 56,638 | |
All Other | ASU No. 2017-07 | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | 56,638 | |||
All Other | ASU No. 2017-07 | Previously reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | 56,697 | |||
All Other | ASU No. 2017-07 | Effect of change increase/(decrease) | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | (59) | |||
Analytics | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | $ 231,245 | $ 184,604 | 136,960 | |
Analytics | ASU No. 2017-07 | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | 136,960 | |||
Analytics | ASU No. 2017-07 | Previously reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | 137,023 | |||
Analytics | ASU No. 2017-07 | Effect of change increase/(decrease) | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of revenues | $ (63) | |||
[1] | Exclusive of depreciation and amortization expense. |
Uncategorized Items - exls-1231
Label | Element | Value |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 600,499,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 533,631,000 |
Retained Earnings [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 378,176,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 427,518,000 |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (75,057,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ (45,710,000) |
Treasury Stock [Member] | ||
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 2,071,710 |
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 2,902,018 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ (103,816,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ (60,362,000) |
Common Stock [Member] | ||
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 35,699,819 |
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 36,790,751 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 37,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 36,000 |
Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 5,999,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 322,246,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 290,645,000 |
Noncontrolling Interest [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 193,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 224,000 |